Farmers Weekly September 27 2021 by AgriHQ

See Page 6 Vol 19 No 37, September 27, 2021

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Focus on flexible future Hugh Stringleman

hugh.stringleman@globalhq.co.nz

ONTERRA has opened wide the door to new farmer shareholders to stem the flow of milk supply to competing processors. It says the new proposed capital structure will strengthen the co-operative and offer financial sustainability, while staying put could lead to stranded assets, lower milk prices and continued loss of market share. Chair Peter McBride says capital structure and company strategy are intertwined and the proposed changes are a critical decision not taken lightly. Fonterra intends to put the revised capital structure proposal to shareholders at the December annual meeting. McBride believes the logic of the proposal and the amendments made during 12 months of drafting and farmer consultation will deliver the needed 75% approval for the constitutional changes. A leading reason for farmers leaving the co-operative is the high level of compulsory investment. “Flexible shareholding would help level the playing field with competitors, many of whom are foreign backed and don’t require farmers to invest capital,” McBride said. The new flexible shareholding structure would set a minimum share requirement of 33% of milk supply and six years to reach that level. More types of farmers could buy in – up to 4000 sharemilkers,

PLAN: Fonterra chief executive Miles Hurrell says the past three years have been about resetting the business, which was now complete, adding it had put the co-operative in a strong financial position for the next phase of its growth. Read more Fonterra coverage on P4.

If we do nothing, we are likely to see around 12-20% decline by 2030 based on the scenarios we have modelled. Peter McBride Fonterra contract milkers and farm lessors. Existing shareholders who wish to sell would initially have up to 15 seasons to exit, reducing annually to 10 seasons, to support liquidity and give farmers greater choice to remain involved. That also applies to farms that

are switching supply to another processor. The Fonterra Shareholders’ Fund, presently 6.7% of share ownership and with $420 million market capitalisation, would be capped to protect farmer ownership and control of the cooperative. Supply shares would be bought and sold in the existing NZXoperated market between farmers only, with some funds set aside to help make market liquidity. The maximum shareholding is four times milk supply, a doubling of the current requirement. Fonterra thinks this will help strike the balance between liquidity in the market and avoiding significant concentration of ownership.

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“We see total NZ milk supply as likely to decline, and flat at best,” he said. Farmland is now leaving dairying rather than being converted into dairy. “Our share of that decline depends on the actions we take with our capital structure, performance, productivity and sustainability,” he said. “If we do nothing, we are likely to see around 12-20% decline by 2030 based on the scenarios we have modelled.” Success in the future means a sustainable milk supply in an increasingly competitive environment, environmental pressures, new regulations and changing land use. McBride argued that farmer

owners staying stronger together in the co-operative was in everybody’s interests. “From what is now a position of financial strength we can communicate our intentions and ensure that we can deliver,” he said. The modelling has led to likely consequences of failing to act, and these are not published to scare farmers into supporting the proposal. “Our farmgate milk price could be 6c to 13c lower by 2030 if we make no changes to capital structure and continue to lose market share at the rate of the past five seasons,” he said.

P4-5

NEWS

12 GDT prices confirm the upward trend

Global Dairy Trade prices rose by 1% in the latest auction, following the trend-setting 4% rise earlier in September.

REGULARS Newsmaker �� 26 New Thinking �� 27

26 Research targets new lepto vaccine Massey University PhD student Maryna Sokolova has been awarded a Fulbright scholarship that will help to continue her research into a novel strain of leptospirosis by spending six months at Yale University next year.

Editorial �� 28 Pulpit �� 29 Opinion �� 30 World �� 32 Real Estate �� 33-38 Tech & Toys �� 39-40 Employment �� 40 Classifieds �� 40-41 Livestock �� 41-43 Weather �� 45

7 Northland Angus bull fetches

$8800

A Northland yearling Angus bull sold for a top price of $8800 at the Te Atarangi annual auction at Te Kopuru, Pouto peninsula.

17 Business as usual at machinery dealerships

The end of an importation and wholesale distribution deal involving Norwood and the Case IH and New Holland brands will have no effect on NZ farmers, Norwood chief executive Tim Myers says.

Markets �� 44-48 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 – September 27, 2021

SWAG focused on the long game Annette Scott annette.scott@globalhq.co.nz THE group tasked with lifting New Zealand’s strong wool sector out of the doldrums is on track to deliver. With a 12-month contract and a $3.5 million dollar budget, the Strong Wool Action Group (SWAG) is working on leaving a legacy of a more connected and coordinated forward-looking, consumerfocused wool sector, embracing its place within the natural world. The group is scheduled to signoff at the end of this year and chair Rob Hewett is confident it is on track to deliver. “We will make the grade, it’s a long game, but we are positioning sound opportunities to realise and commercialise several projects and who we are going to do this with,” Hewett said. While it was too early at this stage to divulge the specifics, he says six to eight projects have been identified from the IDEO insights and the group is engaging with several different entities. SWAG commissioned worldleading design thinking company IDEO for research into American consumers, to understand their consumption habits and emerging trends in sustainability. This is expected to catalyse new thinking and initiatives in NZ’s strong wool industry to match growing consumer demand for high-quality, sustainable goods. “The focus is over a number of consumer-faced opportunities that we intend to release in due course,” he said. “The key insight for me is whatever we do we have got to be sure we are understanding and driving products and the supply chain for what the consumer wants, not what we think they want. “Consumers don’t have a problem with wool, they have a problem with health and safety.” So, how can SWAG offer

KEY: Strong Wool Action Group chair Rob Hewett says getting into the heads of modern consumers has been a key focus in the drive to revitalise the strong wool sector.

We have got to be sure we are understanding what the consumer wants, not what we think they want. Rob Hewett SWAG something new for a strong wool sector that has lacked investment, with the loss of core sector capabilities and coordination of investment resulting in many of the industry’s critical development capabilities declining over the past 20 years? The lack of profitability and investment has seen sheep numbers fall almost 50% since

1995, from 49 million to not much over 20m, with wool production falling 51% from 213 million kilograms to 105m kg. The decline has halted investment in the work that keeps the sector functional across research and development, training and capability, sector data collection, pan-sector accreditation and standards, and sector connection and coordination. Evolving consumer demands and the investment and transformation necessary to support the economic recovery from covid-19 is what offers the wool sector an opportunity to lift its market and export position. Hewett says markets are shifting, with consumers and large consumer brands looking for natural fibres that have a strong environmental story and supply large-scale supply chains.

NZ’s strong wool sector can meet these market needs if it can shift how it engages with global consumers and collaborate to renew investment in the sector. “What we are doing is different to identify and develop solutions to meet what the consumer wants as opposed to being throughput driven,” he said. “The challenge is it’s not all about the farmer, it’s about getting rid of the throughput mentality, understanding the consumer and what they want, then maximising the opportunities. “Branded product is powerful; It takes time and it’s expensive, but when we get that right it will deliver returns back to the processors and the farmers.” While a lot of the partnerships being formed will be with offshore entities, NZ will initially be the test bed with a number of local

N 190

companies also having offshore reach. “If farmers think strong wool prices will double overnight, then they have got us wrong – this is a long burn; the opportunities are in front of us and fundamentally if we do the groundwork to get this right, it will be fantastic,” he said. “We are driven by that and we are optimistic that we have a number of niche opportunities for strong wool that have not been thought about before. “This is not just about scoured wool anymore, it is about value in the end product, but it is all relentless around the consumer.” Hewett says he is pleased how it is all coming along. “It always was the plan to develop an enduring industry structure,” he said. “We don’t want a situation after all the time, effort and money, for it to fall over in a year’s time.

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FARMERS WEEKLY – farmersweekly.co.nz – September 27, 2021

Financial discipline delivers for Fonterra Gerald Piddock gerald.piddock@globalhq.co.nz FONTERRA has posted a strong result for the 2021 financial year, with normalised profit after tax at $588 million, up $190m from the previous year. Its final milk price for the 202021 season is $7.54/kg milksolids, with a normalised earnings per share of 34 cents and a final dividend of 15c, taking the total dividend for the year to 20c per share. For a 100% share-backed farm, this means a total payout of $7.74/ kg MS. Fonterra also announced an earnings guidance range of 25-40c per share and reaffirmed its 202122 milk price forecast of $7.25$8.75/ kg MS, with a midpoint of $8/kg MS. The results come as Fonterra moves through its business reset and into a new phase of growing the value of its business. Chief executive Miles Hurrell says the past three years have been about resetting the business, which was now complete, adding it had put the co-operative in a strong financial position for the next phase of its growth. “We’ve taken stock of the business, revaluated all assets, major investments and partnerships to ensure they meet

the needs of the co-op,” Hurrell said. “We’ve stuck to our strategy of maximising the value of our New Zealand milk, moved to a customer-led operating model and strengthened our balance sheet.” He says the results and total payout showed what can be achieved when focused on quality execution and an aligned co-op. “Although the higher milk price and tightening margins put pressure on earnings in the final quarter, this is a strong overall business performance, allowing us to deliver $11.6 billion to the New Zealand economy through the total payout to farmers,” he said. Total group normalised EBIT, which reflects underlying business performance, was up 8% to $952m, with total group normalised operating expenditure down 3% to $2.2b. Hurrell says the focus on financial discipline has paid off. Net debt is down by $872m to $3.8b, cashflow has improved and the co-operative is now within its long-term target debt ratio. Normalised profit after tax grew by $190m to $588m, driven by improved earnings and lower interest expense. “Our sales book is well-balanced across the regions and a number of our markets have performed well. In Asia-Pacific, significant

RESET: The results come as Fonterra moves through its business reset and into a new phase of growing the value of its business.

We’ve stuck to our strategy of maximising the value of our New Zealand milk, moved to a customer-led operating model and strengthened our balance sheet. Miles Hurrell Fonterra improvements in our foodservice and consumer channels have pushed normalised EBIT up 28% to $305m. We’ve expanded our foodservice footprint in the region and are seeing the benefits of that,” he said. Customers had relied on Fonterra to ship products to them and it had delivered with record volumes shipped, despite the disruption from covid-19. The pandemic had changed consumer behaviour with people choosing to cook at home, which

he says had benefited Fonterra’s consumer brands. “Greater China continues to be an important market for us, with normalised EBIT up 10% to $403m. This speaks to the strength of our foodservice channel, China’s dynamic economy and its love for dairy,” he said. “Africa, Middle East, Europe, North Asia, Americas’ (AMENA) normalised EBIT was down 28% to $336m, reflecting our strategy of redirecting product into highermargin markets. “However, we have seen improvements in our foodservice and consumer channels within the region, including a turnaround for our Chilean business.” He says the strong milk price is likely to continue, despite its potential to squeeze the cooperative’s sales margins and earnings. Chief financial officer Marc Rivers says the result built on the previous financial year’s solid performance. While the co-op was pleased to be maintaining the $8 midpoint

for the current season’s forecast, Rivers cautioned that there was still a lot of uncertainty in the market this early into the season. He says it had a low level of contracts at this point in the milking season to mitigate the effects of volatility in foreign exchange rates and lower commodity prices, both of which are being pushed around by events including covid-19. “Also, while a high milk price is good for farmers and for the New Zealand economy, it does have the potential to squeeze sale margins and impact earnings,” Rivers said. He says Fonterra’s financial discipline over the past few years helped strengthen its balance sheet significantly. This will continue and the co-operative intends to operate a strong balance sheet and will operate within its long-term leveraged targets. “That’s going to give us the ability to deal with volatility that are inherent in the business and take advantage of opportunities as they arise,” he said.

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FARMERS WEEKLY – farmersweekly.co.nz – September 27, 2021

FSF units capped, no buy-back Hugh Stringleman hugh.stringleman@globalhq.co.nz FONTERRA intends to cap its decade-old shareholders’ fund so that unitholders won’t get a big buy-back offer to wind up the fund. They will, however, join in a proposed return of capital and receive forecast higher dividends. Fonterra chair Peter McBride says farmers surveyed during the capital restructure consultation were evenly split over whether to wind up the fund or keep it going. More than half of the 107 million unit securities issued are owned by farmers and ex-farmers, who are therefore affected by the proposed capping. But independent and institutional investors, lured by the initial public offer (IPO) in 2012 to participate in the financial rewards of New Zealand’s largest

company, won’t be happy. The $5 trading price for units on the NZX has fallen below $4 since the capital restructuring was first announced, both prices below the IPO of $5.50. Nine years of dividends have amounted to $1.82, but they include a nil payment, one 5c and two 10cs. Fonterra Shareholders’ Fund (FSF) chair John Shewan has published a detailed and strongly worded update for holders of units. The capital review subcommittee of FSF is clearly disappointed by the revised capital structure proposal. “Fonterra thinks it would be better to use its capital to support liquidity in the supply share market than use it to buy back the fund,” Shewan said. “It says the fund will continue to provide a mechanism for people

not involved in dairy farming to invest in the future of the co-op.” The subcommittee argues the fund has fulfilled the role set up by Trading Among Farmers in 2012. Most farmers rank ownership and control of Fonterra as their top priority. “It seems unlikely these concerns will be resolved by capping the fund,” he said. “Retaining the fund but removing features that support growth, liquidity and relevance to investment markets could put downward pressure on unit pricing.” This period of change was an ideal break point in the life of the fund, the subcommittee said. Fonterra has responded to the subcommittee, saying that providing more clarity on strategy and forecast improved earnings should make unitholders and shareholders more aligned.

A return to sustainable 40c dividends (previously achieved twice in 2015-16 and 2016-17) would provide a good yield on unit investment. Fonterra is also holding out the carrot of return of $1 billion capital by 2024. McBride says FSF unit holders, representing 6.7% of Fonterra’s issued capital, would participate in that distribution. That $1b would be about 18% return of both supply share and investment unit capital on current trading prices. The fund sits at $420 million market capitalisation. Trading prices of the fund and supply shares have diverged recently – $4 for FSF and $3.25 for Fonterra shares. Shewan and McBride said consultation between the company and the fund would continue.

REVEALED: Fonterra chair Peter McBride says farmers surveyed during the capital restructure consultation were evenly split over whether to wind up the fund or keep it going.

Strategy aims at increased profits, dividends Hugh Stringleman hugh.stringleman@globalhq.co.nz FONTERRA has crunched out big financial targets to result from its strategy and repay farmershareholders in milk prices, dividends and returns of capital. The targets include a milk price average of $6.50-$7.50/kg for the decade to 2030, 40-50% increase in operating profit and 9-10% return on company capital. Debt gearing brought down to 33% and reduced interest payments would enable steadily increasing dividends to 40-45c a share by 2030. “Through planned divestments and improved earnings, we could target an intended return of about $1 billion to shareholders by FY24,” chief executive Miles Hurrell said. “Additional capital of $2b would be available for a mix of

investment in further growth and return to shareholders. “That would be additional to $2b invested in sustainability and moving milk into higher value products.” The new focus on value creation includes nutrition science solutions in a $500b slice of the global health and wellness category. Research and development will

be increased by 50% to around $160m a year, with about $60m targeted at growth in active living. Hurrell cited digestive and mental wellness plus immunity where Fonterra can make the most of its expertise in dairy nutrition. That expertise is already evident in probiotics for digestion, immunity and anxiety, lipids for stress management and cognition and protein for muscle tone.

It will further differentiate New Zealand milk on the world stage to get more value. Two offshore milk pools, in Chile and Australia, are now subject to reviews of Fonterra ownership. He says a process to divest the Soprole-Prolesur investment in Chile has already begun. Fonterra Australia sits within strategy and is an important export market for NZ milk, especially in foodservice products and advanced ingredients. “We are considering the most appropriate ownership structure for this business – one option is an initial public offering, but we retain a significant stake,” he said. Hurrell says NZ has a unique position as the lowest carbonproducing dairy nation from a pasture base, with high animal welfare standards and efficiency of scale.

“We can’t slow down now. Customers want to know where their food comes from and the environment impact it leaves and a farmer’s livelihood relies on a stable climate and healthy ecosystems,” he said. Fonterra will invest $1b over the next decade in reducing its carbon emissions and improving water efficiency and treatment in manufacturing. To retain the relative carbon footprint advantage against northern hemisphere farming systems, NZ must solve the enteric methane challenge. The world population will grow by 800 million in 10 years and more than five billion will be middle class and keen and able to afford dairy products. Steady demand growth of 2% annually means the fundamentals of NZ milk continue to loom strong.

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News

FARMERS WEEKLY – farmersweekly.co.nz – September 27, 2021

Yearling Angus bull fetches $8800 Hugh Stringleman hugh.stringleman@globalhq.co.nz A NORTHLAND yearling Angus bull sold for a top price of $8800 at the Te Atarangi annual auction at Te Kopuru, Pouto peninsula. Te Atarangi Woody R311 is on his way through the Auckland lockdown zone to the Waihi Beach cattle breeding business of Graeme and Rachel Brown, Maranui, who bought on bidr®. Chris and Karren Biddles, Te Atarangi, offered 114 yearling bulls at their auction, delayed by three weeks, and sold 96 at an average price of $3633. High prices included $8400 paid for Te Atarangi Wheta R226 by John Marchant of Maramarua, $8000 for Te Atarangi Flint R275 and $7700 for Wheta R211, also paid by Marchant. Te Paki Station in the Far North was a multiple purchaser of the higher-priced bulls, along with Geoff Robertson of Taranaki and Murray Jagger of Whangarei Heads. Biddles says the clearance was very pleasing given that he had increased the number of bulls offered this year and the attendance of buyers was down because of travel restrictions. “It shows that we are doing the job that our farmers want in terms of fertility, low birth weights and calving ease, followed by good growth rates,” Biddles said. Kay Jay Angus, Masterton, had a top price of $12,400 paid by Turiroa Angus and sold 20 from 23 offered to average $3830. The Blackwell family of Mangaotea stud, Tariki, sold 161 bulls in total of four breeds, Hereford, Angus, Murray Grey and Jersey, with a top price of $4000 for a two-year-old Murray Grey. All the two-year-old bulls offered were sold and only four of the yearlings were passed in. Mt Mable Angus, Woodville, sold 29 bulls out of 30 offered, averaging $4261 for the yearlings and $4466 for the two-year-olds. Top price was $7000 for a yearling bull. Hillcroft Angus and Hereford,

Huntly, sold 68 Angus yearlings with an average $2504, 47 twoyear Angus, with an average of $3355, and 35 two-year Herefords averaged $2891. Mahuta Herefords, Glen Murray, sold 45 of 57 Herefords, with an average of $3485 and a top of $5600, and three of four Angus bulls averaging $2800. Resurgam Angus, Ohope, had a full clearance of 25 bulls sold and averaged $2070. Kairaumati Herefords, Colville, Coromandel, sold 21 of 24 yearlings offered, averaging $2447, with a top price of $3100, and a full clearance of 25 20-month bulls averaging $2892. Top price was $5100. McFadzean Cattle Company, Carterton, achieved the sales season’s top price so far, with $12,200 paid by Washpool Partnership for the Meat Maker 0337 yearling bull. In all, 26 of 29 bulls offered were sold for an average of $4800. Ratanui Angus, Matawhero, sold 13 of 17 offered for an average $3533 and a top price of $7200 paid by Ruanui Station. Also on the East Coast, Turihaua Angus sold 22 of 24 yearlings offered for an average of $4047 and a full clearance of nine twoyear-olds at $5278 average. Oranga Angus, Apiti, sold 39 of 44 offered, averaged $2200 and

INSPECTION: Northland buyers look for structural soundness and excellent conformation in Te Atarangi Angus bulls before the auction.

had a top price of $3000 paid by Wai-Iti Dairy Farm. Herepuru Station Herefords had a full clearance of 37 bulls, averaging $2452 and the highest was $6000.

STARTER: Te Atarangi R307 was first up, one of the heaviest at 427kg and brought $4600, paid by repeat buyer Geoff Robertson of Taranaki.

PREAMBLE: Te Atarangi Angus stud principal Chris Biddles welcomes buyers while PGG Wrightson stud stock auctioneer Cam Heggie waits to get started. Biddles has been farming on crutches since October 2020 following a farm bike accident, which he has written about.

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FARMERS WEEKLY – farmersweekly.co.nz – September 27, 2021

No end in sight for shipping turbulence Neal Wallace neal.wallace@globalhq.co.nz EXPORTERS look set to endure another season of disrupted shipping, with little expectation of improved global logistics for at least the next 12 to 18 months. A Ministry of Transport spokesperson says freight sector leaders have stated that reduced sea freight capacity is due to global port congestion and not shipping lines withdrawing NZ services. “Ships are taking a longer time to complete each rotation of port calls, and so are calling at each port less frequently, which reduces available capacity,” a ministry spokesperson says in a statement. Officials believe disruptions will continue for at least the next 12 to 18 months but it is unclear whether this will permanently alter freight logistics. Media company Shipping Watch reports that as at September 2, globally 376 ships were waiting to enter ports, with 176 facing bottlenecks in China, after the Meishan container terminal closed for two weeks due a worker testing positive for covid-19. In the US, 34 ships are waiting to access the ports of Los Angeles and Long Beach, including one that has been waiting 15 days. Customs, Brokers and Freight Forwarders of NZ chairman Chris Edwards says in the last year 102 fewer vessels visited Tauranga but they exchanged more containers, suggesting those that called were larger ships. He says uncertainty over shipping services and rates will make the coming months

CONGESTION: Shipping disruptions are expected to continue for at least the next 12 to 18 months but it is unclear whether this will permanently alter freight logistics.

challenging for exporters. A new shipping line, TS Lines, is due to start servicing NZ ports next month at current market shipping rates, while in the last year Zim Lines has also started a NZ service. “They are not offering discounts, presumedly because they see no need to do so,” says Edwards. The TS Lines schedule starts in China, where it calls at four ports, before stopping in Australia then NZ before returning to Asia. The new entrants will certainly benefit importers but Edwards cannot say what it will mean for NZ exporters. He believes shipping prices will be unchanged for 12 to 18 months but notes two lines, CMA CGM and Hapag Lloyd have capped rate increases until February. Edwards says consumer demand driven by countries emerging from covid-19 restrictions will influence shipping demand and services, as will companies ordering

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larger quantities of product than previously in a “just in time” supply chain model. Shipping issues have hit small and medium-sized exporters the hardest, with larger exporters having the scale to cement connections with shipping lines, he says. Council of Cargo Owners Association chairman Simon Beale says the annual lull in demand between seasons masks continued uncertainty and he cannot see prospects for the coming export season being better than last season. “There is still going to be a lot of disruption.” Some exporters are renegotiating shipping rates and while talk is of increases, also of importance is space availability and service guarantee. A statement from the Ministry of Transport says its short-term focus has been easing domestic port congestion, particularly at the Ports of Auckland (POAL). “We have been working

closely with Immigration New Zealand and MBIE to facilitate POAL’s hiring of skilled crane drivers from offshore, which will help boost productivity. “We have granted exemptions to allow international shipping lines to exercise more operational flexibility in moving cargo and re-positioning containers around NZ, while agencies have also supported industries to address specific instances of supply chain blockages on and offshore.” The Government committed $170m from May 2021 to October 2021 to support airfreight through the Maintaining International Air Connectivity (MIAC) scheme. This has enabled more than 8800 flights to carry over 166,000 tonnes of airfreight worth around $13.3 billion, with funding paid directly to airlines for services that are not commercially viable “A decision on whether the MIAC scheme will be continued beyond 31 October has not yet been made.”

Shipping logistics ‘testing’ Neal Wallace neal.wallace@globalhq.co.nz THE reliability of NZ shipping is currently lower than the global average, which could lead to another export season of capacity pinch points, vessel queues and shipping delays, logistics company Kotahi is warning. Chief executive David Ross says global shipping schedule disruption and delays continue to remove significant capacity from the market. “With NZ’s shipping schedule reliability currently lower than the global average, we are going to see some ongoing level of capacity pinch points, vessel queues and delays moving around the NZ coast.” Ross says Kotahi is working with partners to review demand and supply and, if necessary, will seek extra capacity and container supply. It is working closely with its shipping partner Maersk on required levels of service, which has already resulted in change ahead of the peak export season. “Recently an additional vessel has been added into the Southern Star service which, as a result, is already providing early signs of better schedule adherence,” he says. Fonterra Global Supply Chain director Gordon Carlyle says the company is expecting another challenging season. “We’re confident we have the systems in place and relationships to manage further supply chain disruptions.” It works closely with Kotahi. A newsletter published by Danish shipping giant Maersk quantifies the impact of port delays, noting a holdup of one to three days on a 12-port rotation can potentially turn a 10 week roundtrip into 11 or 12 weeks. Shipping is currently disrupted by a covid outbreak in Vietnam and berthing delays at almost every large European port due to labour shortages and congestion. Maersk says it has more vessels and containers deployed than prior to the pandemic, yet ships still encounter delays leading to missed sailings and missed capacity. It describes the current logistics environment as “testing.”

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News

FARMERS WEEKLY – farmersweekly.co.nz – September 27, 2021

Migrants swap NZ for certainty Neal Wallace neal.wallace@globalhq.co.nz AN AVERAGE of almost five foreign dairy farm workers are leaving New Zealand each week, the bulk heading to Australia. The Regions – Immigration Law and Recruitment managing director Ben De’Ath says what started out as a trickle, has since April 1 resulted in an estimated 100 mostly Filipino nationals on work visas leaving NZ. They are leaving through frustration at the uncertain future they face if they remain here and immigration policy that provides no certainty, or a clear path to residency, and keeps them separated from their families. De’Ath’s business has placed about half the 4500 people employed on dairy farms under work visas and says his clients alone have lost 48 staff since April, of which 43 are going to Australia to work and five to Canada. Extrapolating those figures over the wider industry, he estimates about 100 have left in the past six months, mostly from Southland and Canterbury, and mostly workers with seniority. “These are the cream of the crop of our industry,” De’Ath said.

HARD TO REPLACE: The Regions – Immigration Law and Recruitment managing director Ben De’Ath says dairy farms are losing senior workers to Australia and Canada.

“We are losing eight to 10 years’ experience and seniority with each worker who leaves, and they are taking their wives and children with them.” The Australian government has introduced an agricultural visa to help address a staffing shortage, offering a right to residency for migrants and their families after four years of farm work. “NZ has nothing it can promise,” he said. “Australia has certainly got a

defined and consistent process. We’ve got something south of a defined and consistent process.” While at least one Australian recruiter is operating in NZ, most workers are learning of Australian opportunities from friends and family. De’Ath says that from 2017 to 2019, farm workers could enter NZ under work visas but not their families, an issue the Government tried to correct in 2020. That stopped with the onset of

the covid-19 pandemic and since then the issue has been left to simmer. For De’Ath the treatment of those holding worker visas is more than just fairness, but crucial for the dairy industry where sector growth has outstripped worker supply. “Imagine the riots if these were rugby players Australia was poaching, yet here they are poaching someone capable of running a $10 million business employing six people and no one worries,” he said. Often the wives of farm workers are employed in rural communities in sectors such as aged care, which are historically hard to staff. “It’s going to have massive consequences if we don’t stop the Australian exodus and introduce a realistic and sustainable residential policy,” he said. De’Ath says he has been able to convince some migrant workers to stay in NZ, with the hope the Government will provide them with some certainty. The Government has told him they know there is a problem, understand the issue and are working on it, but De’Ath says there are serious consequences if

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Imagine the riots if these were rugby players Australia was poaching, yet here they are poaching someone capable of running a $10 million business employing six people and no one worries. Ben De’Ath The Regions they do not provide workers with a permanent future. “We can’t hire locally, there is no help through the border and we are losing knowledge, skills and competency,” he said. “It’s pretty bleak for those farmers losing them.” The issue is also affecting employers, with De’Ath knowing of six sharemilkers who have left the industry because they were losing or could not employ staff. “They sold their herds and walked from the industry because of the staffing shortage,” he said.

10 FARMERS WEEKLY – farmersweekly.co.nz – September 27, 2021

News

Pest numbers are on the rise Neal Wallace neal.wallace@globalhq.co.nz A RECENT aerial cull of 80 feral deer from an Otago farm indicates a burgeoning game animal and feral pest problem. The biggest increase appears to be in feral deer, due to a collapse of venison prices and restricted hunter access, and wallabies, where the Government last year allocated $27.4 million over four years to eradicate the pest. The New Zealand Deerstalkers Association (NZDA) and the Game Animal Council (GAC), which encourages the sustainable management of deer, tahr and chamois, say numbers are not yet out of control but are calling for landowners to improve hunting access and for changes to the management of feral deer herds. A switch is needed to the historic understanding that hunters avoid shooting hinds to make them the primary target to stem the population growth, the two bodies say. NZDA chief executive Gwyn Thurlow says the feral deer population is currently increasing by between 10-12% a year. “This is coming during an unusual scenario where lots of farms are inaccessible as farmers have locked the gate and are managing their own herds and all of a sudden they have built up,” Thurlow said. The Department of Conservation (DOC) is also restricting hunting access to some areas, which is enabling population growth. GAC manager Tim Gale agrees that land needs to be opened to hunters, adding that the council is coordinating control operations in hotspots such as the Raukumara Ranges, Lake Sumner and parts of Fiordland. Federated Farmers High Country chair Rob Stokes described deer numbers throughout much of the South Island as “erupting”, due in part to the absence of aerial pressure from feral venison recovery. “Until the freezers reopen and

they start trading game meat again, it is not viable,” Stokes said. Some farmers have used aerial culling and Stokes fears growing feral deer numbers could compromise efforts to control bovine TB. Department of Conservation (DOC) project leader for biodiversity threats Dave Carlton says monitoring shows significant increases in the number of pests and game animals across all conservation land in the past eight years. Tahr numbers have reduced in the past three years. “This is to bring numbers back in line with the statutory Himalayan Tahr Control Plan 1993 and has focused on removing these animals from National Parks and from outside their gazetted range as a priority,” Carlton said. DOC also monitors pig numbers but data shows no discernible trend. LINZ land and property manager James Holborow says visits to pastoral leases and conversations with leaseholders, reveals pest numbers have increased. “There has been an increase in feral pigs and deer, red and fallow, in Marlborough, Canterbury, Otago, and Southland,” Holborow said, “The numbers vary from property to property, however, for some properties deer numbers have been so high they have installed deer fencing to protect high-value winter feed crops. “Rabbits and hares have increased in Central Otago and the Mackenzie Basin and wallabies are also expanding into these areas,” he said. Holborow says covid-19 lockdowns interrupted pest control efforts, rabbit haemorrhagic disease is reducing in effectiveness, the price of wild venison has fallen and there is the ongoing challenge of some neighbours not undertaking pest control. Leaseholders are required to control pests as part of the lease and Holborow says many are keeping numbers down or are

NUMBERS HOPPING UP: Rabbit and hare numbers have increased in Central Otago and the Mackenzie Basin.

There has been an increase in feral pigs and deer, red and fallow, in Marlborough, Canterbury, Otago and Southland. James Holborow LINZ involved with regional pest control programmes. There is a fear the pest explosion could lead to more poaching and a police spokesperson warns landowners should contact police if they come across illegal hunters. Poaching carries a maximum sentence of two year’s imprisonment and a $100,000 fine and could result in the seizure of hunting related items including firearms, knives, dogs, GPS units and vehicles.

IMPEDED: Land Information NZ land and property manager James Holborow says covid-19 lockdowns have interrupted pest control efforts.

News

FARMERS WEEKLY – farmersweekly.co.nz – September 27, 2021

Councils consider courses of action Neal Wallace neal.wallace@globalhq.co.nz NUMBERS of pests and game animals are rapidly increasing in parts of the country, regional councils report. Successive mild seasons, reduced hunter pressure and growing resistance to rabbit haemorrhagic disease (RHD), is leading to increased numbers of deer, goats, wallabies and rabbits in many areas. The Otago Regional Council’s (ORC) environmental implementation manager Andrea Howard says rabbit density differs across the region, but remains high in parts of Central Otago. “Several factors influence rabbit populations, including lack of consistent control – and secondary control – by landowners, the naturally reducing impact of introduced viruses, climate change, land-use change, urban spread into historically rabbitprone rural land and associated reduction in available control tools,” Howard said.

The council is monitoring its northern border for any southern incursion of wallabies from South Canterbury. Environment Canterbury (ECan) principal biosecurity adviser Laurence Smith says rabbits are a localised problem in areas such as the Mackenzie district. In response to anecdotal information that feral deer numbers are rising, he says the council is planning to meet with the community and relevant agencies to discuss the problem. The National Wallaby Eradication Programme (NWEP), which is led by the Ministry for Primary Industries and implemented by ECan, has targeted over 320,000ha in its first year, using a range of control methods. “A search and destroy programme of this nature and scale is a historic first for NZ,” Smith said. Eradication will require new technology and innovation. “The complexities and

problems of effectively dealing with a largely secretive, nocturnal, highly mobile vertebrate pest with the currently available toolbox, cannot be understated,” he said. Environment Southland animal biosecurity team leader Dave Burgess says the growth of dairying in the province and the shift to long sward has made the habitat less favourable for rabbits. Deer and goat populations appear to be increasing and the council is concerned wallabies may spread south. The Waikato Regional Council reports wallabies are still in low numbers in the Waikato, but is concerned about spread from the Bay of Plenty. The Hawke’s Bay Regional Council’s manager of catchment services Campbell Leckie says numbers of rabbits, feral deer and goats have been increasing over the past five years. “Increasing pest numbers highlight a risk or challenge, which needs a reassessment of the current management and

GROWING: Several factors, including lack of consistent control, have been cited by various councils across the country as they note an uptick in pest and game animals.

community priorities for pest control,” Leckie said. Rabbit numbers are increasing due to a dry climate and increasing immunity to RHD. Bay of Plenty Regional Council biosecurity manager Greg Corbett says wallabies have expanded into the west and southwest of Rotorua. Consistent control work in the eastern Bay of Plenty has reduced feral goat numbers to a point where there could be local eradication. “Wallaby spread is largely from natural dispersal, though there is evidence of people either collecting young wallabies and taking them home as pets and/or releasing them,” Corbett said.

Horizons Regional Council natural resources and partnerships group manager Dr Jon Roygard says the council has been forced to deer-fence three sites it is restoring indigenous ecosystems, to protect them from feral deer. There are reports of rabbit numbers doubling in some places, with two counts in the Whanganui District increasing by 170% and the other by almost 400%. The Greater Wellington Regional Council reports anecdotal evidence that deer have become more populous in the past 10 years. Feral goats are also becoming a greater problem endangering selected environmental sites.

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12 FARMERS WEEKLY – farmersweekly.co.nz – September 27, 2021

MORE OF THE SAME: Spring production data won’t be available until late October, so Nathan Penny expects GDT prices to “rumble along” in the meantime.

GDT prices confirm the upward trend Hugh Stringleman hugh.stringleman@globalhq.co.nz GLOBAL Dairy Trade prices rose by 1% in the latest auction, following the trend-setting 4% rise earlier in September. NZX dairy analyst Stu Davison said the latest results solidified the market direction, while confirming that dairy products are in hot demand. South-east Asian buyers were to the fore and the changing dynamic is now easy to see, with China still participating but under pressure from elsewhere. “African buyers remain strongly in the game, which is a strong indication that the buyers that would usually be more price sensitive are willing to pay the price to secure product. “These African buyers would normally secure their needs out of Europe. “On the whole, this auction confirms that the dairy market is still out of balance, and that strong demand remains in play.”

Whole milk powder prices rose 2.2% and skim milk powder was up 0.9%. In the milkfat categories, butter was down 1.9% and anhydrous milk fat prices remained steady on the previous event.

We were premature in lowering our forecast, so we say ‘mea culpa’ and return to $8.20. Nat Keall ASB Cheddar was down 1.2% and lactose up 1.3%. ASB economist Nat Keall said the newly settled territory for GDT prices has convinced him to reverse a reduction in the farm gate milk price forecast made in July, add 30c and bring his latest estimate up to $8.20/kg milksolids.

“We were premature in lowering our forecast, spooked by a series of softer auctions in July and August. “The last couple of auctions have shown prices in more settled territory, so we say ‘mea culpa’ and return to $8.20.” New Zealand’s spring milk production is the big swing factor of the market now, Keall said. Pasture growth and milk production are looking good except maybe in Canterbury. Westpac senior agri economist, Nathan Penny has a more conservative view of the milk price forecast, staying at $7.75 with acknowledged upside risk. NZ spring production data won’t be available until late October, so Penny expects GDT prices to “rumble along” in the meantime. The latest traded price for September 2022 milk price futures is $8.25, a very acceptable level for farmers looking to fix the price of some milk production. The futures market indication for the following season, September 2023, is $7.65.

WATCHING: Both Ballance Ravensdown are waiting to see the effects of escalating natural gas prices in the Northern Hemisphere.

Fertiliser companies keep an eye on soaring gas prices Gerald Piddock gerald.piddock@globalhq.co.nz NEW Zealand’s two main fertiliser companies are monitoring skyrocketing energy prices in the Northern Hemisphere to see what impact it could have on prices. Soaring natural gas prices in Europe has led to two fertiliser plants shutting down in northern England. Fertiliser makers use natural gas to create ammonia, a key component in many fertiliser products. Ballance general manager of sales Jason Minkhorst said they were monitoring the global situation and expect European fertiliser demand to be met by China, which could impact prices locally. “We have already seen some pressure on global prices. As a co-operative we are doing as much as possible to manage this for our farmers and growers [for example] leveraging our

local manufacturing at Kapuni.” A Ravensdown spokesman said the increase in energy costs was is beginning to have an impact on overseas fertiliser manufacturers of ammoniumbased products. “For Ravensdown, there is no reason to think this will impact on surety of supply but, in general, energy costs can ultimately affect prices and the current overall trend is one of escalating N prices reflecting global supply and demand.” In late June, urea prices hit a 10-year high to reach just under $800/tonne. At the time, both companies cited rising energy prices as one of the reasons for the increase, along with high freight costs and soaring demand on the back of strong cropping prices in Brazil and India.

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FARMERS WEEKLY – farmersweekly.co.nz – September 27, 2021

Disagreement over flood fund process Annette Scott annette.scott@globalhq.co.nz DESPITE becoming a political football, the Canterbury $4 million flood recovery fund provided by the Ministry for Primary Industries (MPI) is tracking as planned. But as offers of settlement are being sent to landowners there’s a warning of caution that central government funding assistance for the May flood event should not be seen to set a precedent for future weather events. National MP for Selwyn Nicola Grigg claims government has left flood-stricken farmers in the lurch. “Almost four months on from the floods that devastated much of rural Canterbury and the Government has fallen well short of the promises it made to local farmers,” Grigg said. She says the funding eligibility criteria is far too strict. Criteria set for the fund requires 51% of income to be from primary industry, leaving lifestyle blocks on the sideline alongside farming businesses supplemented by other incomes such as tourism, nurses, teachers, builders and rental property revenue.

If we view central government as liable for those costs on farms it is possible there will be unintended consequences.

to limit what activity takes place on flood risk classified land such as constructing buildings, fences, tracks, developing irrigation. “That’s exactly why this (funding) process had to be very careful there hasn’t been a precedent set and the criteria was precise to the peculiar nature of this event.” MPI has received 168 applications, with a total monetary value more than $8m. So far 82 applications totalling $1.48m have been approved.

FALLEN SHORT: National MP Nicola Grigg claims government has left flood-stricken farmers in the lurch.

Our farms are different, which is why we use different vaccination programmes to protect our sheep.

David Clark Feds “We are now four months on from an adverse event that was out of our farmers’ control and they have had to jump through hoops for a chance at getting some financial assistance.” Grigg is calling on government loosen the eligibility criteria to help farmers most in need. But Mid Canterbury Federated Farmers president David Clark says the $4m flood fund process is going to plan. “Some claims are paid out; some are still being assessed and some fall outside the priority criteria of clearing flooded shingle and silt off productive land. “This is precisely how we planned for the process to go,” Clark said. Federated Farmers, in conjunction with other industry bodies, was asked to draw up criteria that targeted it precisely to the purpose for which it was applied. “It is following the logic of the mechanics of this flood that formed the basis of our request to central government for funding to assist impacted farmers to remove the shingle and silt from their farms,” Clark said. Provision was given to a second round of applications for remediation of other uninsurable assets such as culverts, ponds, tracks, should the $4m not be fully required for shingle removal. Funding is a partnership with MPI contributing up to 50% and the landowner meeting the remainder, with a limit of $250,000 for each application. Clark says there are some important concepts to remember to mitigate potential impact on faming businesses in the future. “There doesn’t appear to be a precedent in modern New Zealand where a national government funded the repair of private assets on private land in a weather event. “If we view central government as liable for those costs on farms it is possible there will be unintended consequences. “If they are taking liability, they may want

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16 FARMERS WEEKLY – farmersweekly.co.nz – September 27, 2021

China in CPTPP could benefit NZ Eric Frykberg THE possibility has arisen of remnant tariffs on dairy exports to China disappearing faster if Beijing is to join the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP). The sum of money coming New Zealand’s way could be more than $100 million a year. These tariffs are due to disappear by 2024 anyway, under the terms of the NZ-China free trade agreement (FTA). But a trade expert says they could go faster, depending on the attitude of the NZ government. The CPTPP was signed in 2018 by 11 nations, including NZ and powerful economies like Japan, Canada and Australia. It covers more than 13% of world economic output and 30% of NZ exports. It was originally supposed to include the United States, but this was reversed when President Trump came to power and a return to the fold is low on the Biden Administration’s agenda. Now, the Chinese government has formally applied to join the pact in a letter to Trade Minister Damien O’Connor. Like all member states, the

REQUEST: Trade Minister Damien O’Connor received China’s application to join the free trade agreement in a letter earlier this month.

NZ government would need to approve Chinese membership. This means NZ might be in a position to ask for an earlier winddown of so-called safeguard tariffs than 2024, as a condition of China joining the CPTPP. O’Connor could not be reached for comment on this. But long-standing trade expert Stephen Jacobi of the NZ International Business Forum (NZIBF) says there could be a benefit for NZ in this.

“As part of an accession deal, China would have to satisfy us on market access, as well as on their ability to meet the rules of the agreement,” Jacobi said. “And the only problem we have on market access is around safeguard tariffs for dairy products. “We tried to remove them in the course of the (FTA) upgrade but couldn’t do it, so it is not unreasonable to think that we could try again in the context of

an accession agreement.” Safeguard tariffs were part of the original FTA agreement with China. They would come into effect when NZ exports passed an agreed milestone in terms of quantity. The aim of this was to protect local industry. In fact, NZ exports soared past that threshold long ago, but the impact of the tariffs was blunted by high sales prices anyway. Jacobi says safeguard tariffs are due to end by 2024, but it would be nice for them to end earlier. In fact, NZ’s chance to win a hurry-up is moot, because it is far from certain that China’s accession will be done by 2024 at all. Australia’s Trade Minister Dan Tehan has already sounded a note of scepticism about Chinese membership. And the Japanese government has been quoted as saying an application by the United Kingdom to join CPTPP would have to be dealt with first. Then there is criticism of China on human rights grounds, along with tension spurred by the new US-UK-Australia defence pact. An extra, economic, pitfall remains: other CPTPP members are expected to demand that their companies get the same access to

As part of an accession deal, China would have to satisfy us on market access, as well as on their ability to meet the rules of the agreement. Stephen Jacobi NZIBF contracts with China’s state sector as Chinese companies do. This is thought likely to be a big problem to overcome, since Beijing has long given official protection to its own SOEs. Nevertheless, China’s application to join the CPTPP is welcomed in-principle by Jacobi. “Trade agreements like CPTPP are about the spread of effective and up-to-date trade rules in the Asia-Pacific region, as well as globally,” he said. “We welcome China’s interest to join CPTPP which is one of the world’s most advanced and highquality free trade agreements. CPTPP ... is a pathway towards a future Free Trade Area of the AsiaPacific.”

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FARMERS WEEKLY – farmersweekly.co.nz – September 27, 2021

Business as usual at machinery dealerships Colin Williscroft colin.williscroft@globalhq.co.nz THE end of an importation and wholesale distribution deal involving Norwood and the Case IH and New Holland brands will have no effect on New Zealand farmers, Norwood chief executive Tim Myers says. Norwood has had a distribution agreement with CNH Industrial, which Myers says effectively dealt with the importation and distribution requirements for both the Case IH and New Holland brands of machinery. From July 1, 2022 that agreement will no longer exist, with CNH setting up its own NZ-based entity to manage those functions. He says third party import distribution agreements like the current one have been phased out around the world, with NZ one of, if not the last geographical market to have one. “CNH and Norwood have been in regular conversation about this at senior level for quite some time. “So, while it’s come as a bit of a surprise to the industry, for Norwood it’s not a surprise at all. “It’s something that we’ve been planning for, for some time. “What it means for Norwood is effectively we become CNH’s dealership partner. “Norwood dealerships around the country will still represent New Holland (and Case IH) tractors, bailers, combines, foragers etc, in exactly the same way as we have always done. “There will be absolutely no change. “From a customer perspective, from a NZ farmer perspective, they shouldn’t notice any difference at all.” Myers says the new arrangement will have a number of advantages for Norwood, the main one being working capital.

see the change as an opportunity to drive efficiencies in the supply chain and focus more on their respective roles in that process. “We appreciate Norwood’s ongoing commitment to Case IH and New Holland dealerships and their customers, which will continue until the transition process is finalised mid next year. “We will continue to look at new ways to build on the strong relationship with Norwood from a retail footprint perspective.” He said it was very much “business as usual” for Case IH and New Holland dealerships, and for their customers.

REFOCUS: Brandon Stannett says CNH Industrial and Norwood see the end of their wholesale import and distribution arrangement as an opportunity to drive efficiencies in the supply chain and focus more on their respective roles in that process.

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From a customer perspective, from a NZ farmer perspective, they shouldn’t notice any difference at all. Tim Myers Norwood From July next year instead of purchasing Case IH and New Holland products from factories around the world and having large amounts of money tied up in inventory that is not even in the country because of the lead time involved, it will be buying from a NZ-based entity. “Norwood has always had a massive working capital burden,” Myers says. “That’s become harder and harder to justify.” He says the way farmers both buy and research products they are interested in purchasing has changed. “The value of big, in-country inventories, which were the only option for NZ farmers, those days are gone. “From a strategic perspective, the supply model that Norwood has been able to very successfully manage over the decades has reached its maturity date. “That happens all the time, in every industry.” Myers says for months, if not years, work has been going on behind the scenes to reposition Norwood for this eventually and that can now be accelerated. CNH Industrial Australia managing director – agriculture Brandon Stannett says both companies

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18 FARMERS WEEKLY – farmersweekly.co.nz – September 27, 2021

Slow start to spring for farm sales BUSY on-farm activity and the covid-19 lockdown are being blamed for sluggish farm sales for the three months ending August. The latest data from the Real Estate Institute of New Zealand (REINZ) showed 51 fewer farm sales during those months compared to the three months ended August 2020. Overall, there were 306 farm sales in the three months ended August, compared to 364 farm sales for the three months ended July 2021 and 357 farm sales for the three months ended August 2020. REINZ rural spokesperson Brian Peacocke says the figures reflected both the time of the year and the effects of the covid lockdown. “Sales figures for the most recent three-month period reflect both the time of the year, when the rural sector is busy with

calving and lambing, and the impact of the covid-19 influenced lockdown, with both factors impacting on sluggish sales results,” Peacocke said. “From a national perspective for the period, arable sales were down 66% from the same time last year; finishing sales eased 13%; grazing sales dropped 20%; and horticulture sales eased 15%.” The dairy sector was the bright spot with 29 sales for the threemonth period, an increase of 262% from the eight sales recorded in the period ending August 2020. “Given the eventual freeing up of the lockdown, however, prospects for the rural sector look bright,” he said. The dairy payout is close to the peak experienced in recent years, while beef and lamb prices are both strong. He says horticulture income

SLUGGISH: A combination of the covid lockdown and farmers occupied with lambing and calving are the cause of a slow start to spring farm sales.

is healthy across the board and fine wool returns continue to dominate the strong wool sector, where a carpet induced lifeline is tantalisingly close to the latter. “The financial sector is portraying an encouraging stance despite a predicted increase in the official cash rate which, if and when it occurs, will impact on the retail market for interest rates. Regretfully, however, labour, compliance and environmental

issues continue to lurk and frustrate,” he said. In the year to August, 1680 farms were sold, 37.3% more compared to the same 12 months last year, with 153.8% more dairy farms, 1% more dairy support, 24.4% more grazing farms, 50.8% more finishing farms and 46.4% less arable farms sold over the same period. The median price a hectare for all farms sold in the three months

to August was $27,250 compared to $25,460 over the same three months in 2020. Four regions recorded an increase in the number of farm sales, with the most notable being Nelson/Marlborough with 11 sales and Southland with six sales. Manawatu-Wanganui and Wellington recorded the biggest decreases in sales with 22 and 15 fewer sales in the regions respectively.

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FARMERS WEEKLY – farmersweekly.co.nz – September 27, 2021

Growers back grocery report Gerald Piddock gerald.piddock@globalhq.co.nz INDUSTRY groups and growers have largely backed the Commerce Commission’s findings in its study of competition in the grocery sector. Federated Farmers, Horticulture New Zealand, NZ Pork and the NZ Food and Grocery Council all supported claims of power imbalances between suppliers and supermarkets and back calls for a code of conduct between the two groups in their submissions on the commission’s draft report released in July. This was also backed by submissions from anonymous individuals who identified themselves as growers. One anonymous fruit grower in their submission highlighted how grocers mark up prices by attaching an invoice in which they received 41 cents a kilogram for a crop of lemons picked in JuneJuly. Those same lemons were then sold at $3.50-$8.99/kg in the supermarkets depending on the retailer. If growers do not accept the grocer’s prices and terms, then their product is not stocked and the grocer will go to another and get a cheaper price. “We are wearing the cost of such high labour to pick the produce along with many other expenses, but we aren’t getting an increase to cover these costs at our end,” the fruit grower said. “They don’t care, they haggle for the cheapest price, but they sure put their markup on the

produce to cover their costs.” One vegetable grower’s submission spoke of retailers blacklisting them for five years and another reneging on a verbal agreement to buy cauliflower, resulting in most of the crop being destroyed. The grower supported a mandatory and independent code of conduct, saying it needed to be independent so growers will not be afraid to speak up. The grower also supported changes to the Commerce Act to allow growers to collectively bargain. “Some of the things that have happened to growers could be considered criminal. Most growers have been too ‘scared’ to put an initial submission in because they could lose most of their business,” the submission stated. They also argued that a Commerce Commission decision in the 1990s ended a cost sharing arrangement on produce containers between growers and supermarkets. This led to growers paying all costs of any container, which worked out as the monetary equivalent of a new car every year for the averagesized grower. This was echoed by Canterbury vegetable grower Waterloo Farm who said supermarkets are transferring costs and risks to suppliers and the most blatant example of this is the crate and bin hire system. “Growers who sell their produce via markets such as T&G and MG (Marketing) to the supermarkets must use a specific crate hire

SOLD: Growers and industry groups support collective bargaining and a code of conduct to be introduced in their submissions on the Commerce Commission’s report on supermarket competition.

company rather than their own packaging or a crate hire company of their choice. The supermarkets pay nothing and the grower is forced to pay the extortionate rates of a monopoly company,” they said.

In our consultation with growers this option received strong support for further consideration.

Any code of conduct should include a mandate the supermarkets pay for the crate hire. They said proposition of a code of conduct and collective bargaining for growers appears to be a good solution. HortNZ’s submission backed the call for a legally mandatory code of conduct and allowing suppliers to collectively bargain.

“We submit that it also would need to apply to all distributors and retailers, so that everyone is operating on an even playing field; be clearly drafted and be precise to avoid misinterpretation,” HortNZ said. It argued it will be a series of initiatives that will change the competitive dynamic between suppliers and supermarkets. These will need to include margin and cost of production transparency to balance the power differential between supermarkets and growers. “This is because the supermarket duopoly and market share mean growers have limited market opportunity for selling. This … results in growers being unable to maintain their margins in the face of increasing costs of production,” it said in its submission. Collective bargaining could address power imbalances between grocery retailers and suppliers. One option could be to allow industry good organisations

to administer and coordinate this bargaining. “In our consultation with growers this option received strong support for further consideration,” it said. NZ Pork’s submission supported more options and transparency around how supermarkets do business with suppliers and further investigation of measures for increasing competition in the retail grocery sector. “NZ Pork welcomes the report and its findings appear to echo what we hear anecdotally but consistently from our pig farmers, processors and consumers, and other supply chain stakeholders,” NZ Pork said in its submission. “Whilst our major supermarkets play an appreciated and critical role to distribute quality New Zealand-origin pork to consumers, we are strongly in support of the introduction of a mandatory industry code of practice as a mechanism to ensure integrity and transparency across the supply chain.”

One way or another, emissions charges will be a fact of New Zealand farming life when the exemption comes to an end in 2025. If you’re seeking ways to offset farm emissions when new rules come into play, CQuest Carbon and Forestation Fund offers an attractive investment option.

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FARMERS WEEKLY – farmersweekly.co.nz – September 27, 2021

Scheme helps to beef up dairy calves DAIRY farmers are responding to social pressures by using increasing numbers of beef sires over dairy cows to produce prime cattle instead of bobby calves, LIC beef product specialist Charlotte Gray says. “We are seeing end-to-end chain agreements and the use of sexed semen and beef semen worldwide is growing quickly,” Gray told a webinar for farmers on the Dairy-Beef Progeny Test (DBPT) scheme. The webinar attracted more than 80 farmers and rural professionals in the lead up to mating season in the dairy industry. Dairy co-operative LIC sold more than 500,000 straws of beef semen in 2020 and expects demand will increase in the upcoming AI season. The other presenters were geneticist Anna Boyd from Beef + Lamb Genetics and marketer Darren Drury, beef category director for Alliance Group. They said farmers, processors and exporters have opportunities to capitalise on the grass-fed beef story. Over five million dairy cows are

artificially inseminated or put to the bull every year, one million heifer replacements are reared, a further two million calves are reared on the home farm and two million go on the bobby calf trucks to slaughter. Gray says beef bulls in the DBPT are proven to deliver calving ease, along with curvebending growth rates and carcase conformation. Bulls accepted into the trial are mated to their share of 1500 crossbred dairy cows on the Wairakei Renown farm and the progeny grown out on the nearby Pāmu Orakanui farm. She highlighted the contrast between current high store cattle and beef schedule prices and low demand in the calf pens. “Unfortunately, we have a pinch point in calf rearing capacity,” she said. Commercial calf rearers are price-takers at both ends and many do not stick at it for several seasons. Fickle results for calf rearers have amplified the need for strong calf marking, mainly whitehead Hereford-Friesian crosses. The popular marking may not indicate a sire with genetic merit, but just the parent breed. Two-thirds of dairy farmers

are rearing more calves than are required for herd replacements. She says in this situation there is not the same need for colour marking and farmers can put more emphasis on breeding values when making their AI selections. Within the third cohort of the DBPT 2018-born calves there is a 17-day spread in time to weaning, a wide range of yearling weights and 600-day weights. “These are opportunities that make a real difference to the bottom line and the enjoyment of calf rearing,” she said. More than 70% of New Zealand’s beef production originated on a dairy farm and it makes sense to breed cattle that will grow well and achieve premium grades. “It is no longer a breed decision as the DBPT has shown that individual bulls can vary considerably,” she said. Steers and heifers from the top bull could be 20kg carcase weight, or $110, above the average of the same cohort without factoring in grading outcomes. The premiums available from top genetics really add up across large numbers of calves taken through to finished cattle. “Yet we know that all those bulls in the DBPT have acceptable

Demand sees sexed semen sales triple

impact of sire,” Boyd said. Only two carcase traits, pH and meat colour, were not affected by sire. “DBPT has shown there is a huge pool of bulls available that can be safely used over dairy cows,” she said. “Dairy farmers can buy beef bull genetics that have tight gestation lengths and birth weights and then carry average to above-average EBVs for weight through to the rearers and finishers.” Drury says dairy-beef had inbuilt advantages like lower emissions in the dam, verifiable animal health treatments and, potentially, being bobby calf-free.

NEW FROM Dr Bert Quin

Fact 1. The overuse of soluble P fertiliser is by far the largest cause of P run-off Fact 2. Once you have Olsen P levels that are more than a third of the P retenti environment. Fact 3. If you want to build up your soil P in an environmentally-protective way in a sustained fashion for plants. Fact 4. There is nothing to lose and everything to gain. RPR-based fertilisers are (sulphur 90) is far more efficient than the excess sulphate in super. Fact 5. Following 1-4 above will greatly reduce P run-off and leaching. This sho huge amounts of money! Fact 6. It is nonsensical to give in to pressure to install expensive mitigations r idea of their long-term effectiveness and maintenance costs, and before you h Fact 7. in any case simple fenced-off 3-metre wide grass riparian strips are esse bacterial and sediment losses. Neither will have any significant long-term bene strips can be harvested in summer to be fed out, to improve P and N cycling. Fact 8. In a nutshell, for maintenance of P levels any genuine RPR (not an RPR/B situations or low rainfall, use a blend of RPR and high-analysis soluble P. Fact 9. For N, rather than granular urea, use prilled urea, sprayed immediately cut in half with big savings. Fact 10. Potash is more efficient, and must less likely to cause metabolic proble annual amount you are using now. Easy to mix with your prilled urea. Leaching For more info, email Bert Quin on bert.quin@quinfert.co.nz, or phon

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DAIRY genetics companies say orders for sexed semen have tripled from last season as farmers look to further reduce their bobby calf numbers this spring. The demand has forced CRV to source additional frozen sexed semen straws to cater for demand. CRV product development manager Peter van Elzakker says an increasing number of farmers are considering sexed semen as a tool for lifting herd performance by ensuring they get replacement heifers from their best cows. “We’ve seen demand for sexed straws continue to grow year-onyear. For herds with good fertility management, using sexed semen from the very best proven bulls is the most effective way to get ahead,” Van Elzakker said. Likewise, LIC reported strong growth in its sexed semen sales when it reported its annual result in July. Its genetics range accounted for almost half of the co-op’s total artificial breeding (AB) inseminations (41.3% or 1.79 of 4.3 million semen straws), more than double three years ago. While this was predominantly from its Forward Pack and A2/A2 bull teams (1.6 million straws combined), it also included sexed semen, which experienced significant growth with triple the number of straws sold on the previous year – up from 33,804 to 110,125. LIC chair Murray King says the growth will have a significant impact

on-farm this spring and deliver a huge amount of value to farmers, with more heifer replacements and fewer bobby calves. “We’re expecting this to be even greater next year with sexed semen orders likely to almost double again,” King said. Van Elzakker says while there is a slight reduction in cow conception rates when compared to conventional semen products, sexed semen is a great option for heifer mating. “Each pregnancy from sexed semen gives farmers a 90% chance of a heifer calf. This means getting replacements from elite cows, building herd numbers, or creating value through excess heifer sales, is a real option to drive herd improvement progress and profitability,” Van Elzakker said. “Conception rates with sexed semen can be around 10% lower than non-sexed semen, but the genetic gains you get when you’re mating them with your top heifers make it a worthwhile investment.” Many farmers are also using sexed semen to strategically improve herd replacements and then mate the remainder of their herd with dairybeef genetics. Using sexed semen in combination with dairy beef can also reduce the number of bobby calves, an increasingly important factor for farmers as they consider animal welfare. He says farmers used the sexed semen on their top cows and used beef genetics on the rest of the herd.

calving ease and gestation length,” she said. Boyd says 125 beef bulls had been used in the DBPT over five years and the progeny from the first three cohorts had been finished, scanned, processed and reported on. Test reports are published every six months and are available online through B+L Genetics. LIC and CRV publish dairy-beef AI catalogues that contain some of the well-ranked DBPT sires. She says all the results so far included a mean 600-day weight range of 68kg and that 97% of all progeny graded P2. “All traits assessed in live animals have shown a significant

Dr Bert Quin

Gerald Piddock gerald.piddock@globalhq.co.nz

BEYOND: Dairy farmers can use progeny-tested beef bulls and don’t have to rely on colour markings.

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News

22 FARMERS WEEKLY – farmersweekly.co.nz – September 27, 2021

$12m grant for primary sector research Richard Rennie richard.rennie@globalhq.co.nz MASSEY University researchers have scooped the jackpot on the latest Ministry for Business, Innovation and Employment’s Endeavour Fund grants to further research in the primary sector. Over $12 million has been granted to the university’s researchers to cover areas as diverse as biodegradable packaging, to technology for mapping subsurface features. The lion’s share of the funding has gone to one major project that aims to develop compostable Smart BioPlastic food packaging for primary sector products. The project received $9.2m over five years. Headed up by Professor Nigel French of Massey’s veterinary science department and AgResearch scientist Dr Eric Altermann, the project encompasses a number of disciplines and interests, including Scion, Oregon State University and Precisions Protein Delivery Solutions of the United States. The project aims to capture the economic, environmental and health benefits that come from using a non-hydrocarbon-based packaging material from a variety of sources, including wood chips, chitosan obtained from shellfish

shells and pomace sourced from pressed fruit and produce. Altermann says the team hoped to enhance NZ’s exports by increasing the shelf life, while creating a new class of globally-relevant food packaging materials. “This will reduce waste by creating a new high-value use for low-value secondary streams from primary industry,” Altermann said. Three other projects have collectively been granted $3m, including work headed by Associate Professor Paul Dijkwel. His work has discovered a trait in the legume medicago enables the plant to disrupt a nitrogen fixation inhibition process that takes place when fertiliser usually inhibits clover’s ability to fix nitrogen, reducing its natural legume benefit. Transferring this trait to ordinary white clover would significantly reduce fertiliser use, given clover requires less fertiliser and could continue to fix nitrogen naturally while fertiliser is being applied. Funding for a groundpenetrating radar that has application in archaeology, agriculture and civil engineering aims to develop a cost-effective tool capable of mapping subsurface features. A third project aims to work

alongside iwi to map and categorise over 12 million biota specimens collected in NZ and Antarctica for the past 250 years. Of the 547 proposals received to the Endeavour Fund, only 69 received a grant.

This will reduce waste by creating a new high-value use for low-value secondary streams from primary industry. Dr Eric Altermann AgResearch Massey University Provost Professor Giselle Byrnes says the projects are testament to the excellence of Massey research teams and partnering with others was an excellent way to contribute the best of research skills. The Endeavour Fund is designed to encourage researchers to rapidly develop and test promising research ideas that can deliver a high benefit to NZ, with input across a diverse range of science disciplines. The total funds allocated for 2021 were almost $250m.

GREENER: Massey University professor Nigel French says the grant allows research that covers multiple disciplines.

THEY want to close NZ’s only oil refinery And remove OUR fuel security

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24 FARMERS WEEKLY – farmersweekly.co.nz – September 27, 2021

Drought app to improve data access Colin Williscroft colin.williscroft@globalhq.co.nz A NEW drought indicator app will not only provide farmers with information that will enable them to make better informed decisions with confidence, it also has the potential for data from other locations to be added to it, a Hawke’s Bay farmer says. Hawke’s Bay Regional Council recently launched its free drought indicator app, the first of its kind in NZ, to help the region’s rural communities. Council Integrated Catchment Management Group manager Iain Maxwell says it is a way for farmers to get a pulse check on the key climate conditions on their farm and wider area to support their planning for dry conditions and drought. “Last year’s severe drought showed us that more tools were required for our farmers to prepare and plan for drought,” Maxwell said. The tool has a ‘traffic light warning system’ for drought based on live rainfall, soil temperature, soil moisture and evapotranspiration data from the council’s 50 climate stations around the region. “It is intended to take the hassle out of accessing regional climate data for our farmers, and for them to be able to go to one place and get a live view of climate conditions,” he said. Patrick Crawshaw, who with wife Isabelle farms north-west of Napier, says he already uses data from the council’s Waihau climate station to help him make farming decisions. Crawshaw says they are fortunate that their property, which is a Beef + Lamb NZ monitor farm, is only 250-300 metres from the climate station. Already an avid user of that information, he says the app consolidates it into easy to understand and well-interpreted data sets so farmers can navigate

their way through to get pertinent information quickly, as opposed to digging through the council’s website and then building the same picture. He says there’s potential to fill in the network of council climate stations by adding others in the future, such as those operated by Niwa or individual farm businesses, to provide a more complete picture across the region.

Last year’s severe drought showed us that more tools were required for our farmers to prepare and plan for drought. Iain Maxwell Hawke’s Bay Regional Council “It’s just about getting more of these platforms to talk (to each other), then bringing that information over and interpreted on a standardised set of parameters,” Crawshaw said. One of the keys for farmers is being able to understand the information they can access through the app and how it relates to their own properties. “It’s all relative in the grand scheme of things,” he said. “If you’re looking at your nearest one (climate station), it could be on your property or it could be further afield but as you understand the information at hand and trends over time, you can see how your property is in relation to that information. “It gives you a relative start point. You’ve obviously got to understand the information but probably more so understand how it interacts. “Then you can really get some

DEVELOPING DATA: Hawke’s Bay farmer Patrick Crawshaw says the network of climate stations the new drought indicator app is based on can be expanded in the future, which will provide an even clearer picture of climatic conditions across the region. Photo: B+LNZ

horsepower out of it in your decision-making. “It’s a reference point and a place where farm businesses can go and see where their system is at, how the season is tracking in front of them, what potential levers they’ve got up their sleeve and what type of horizons they have before having to start making those decisions.” However, he says the information will only enhance decision-making, it’s not going to

replace what farmers can touch, feel and see on-farm. “But it will support and provide confidence to those decisions,” he said. “It’s quite powerful from that point of view.” The app was designed by the regional council with support from the Ministry for Primary Industries and the Hawke’s Bay Rural Advisory Group. Crawshaw says the technology has the potential to benefit other

Keep an eye out The latest issue of Dairy Farmer will hit letterboxes on October 4. Our OnFarmStory this month features a Waikato farmer who won the top spot at the Farm Manager of the Year Awards. We also catch up with the Taranaki farmers who built a game-changing Redpath shelter for their herd, meet the person behind plastic fence posts and take a look at effluent.

farmersweekly.co.nz 0800 85 25 80

parts of the country that are also prone to drought. Hawke’s Bay Rural Advisory Group chair Lochie MacGillivray hopes the app will be well used by the rural community, to give those people a forward-looking view of dry conditions on-farm and help them to make tough decisions early.

To access the app, go to hbrc.govt.nz and search #droughtapp

OCTOBER 2021 | $8.95

Migrant takes top spot Waikato farm manager the best

PLUS:

Sheltering the herd ➜ Housing the herd indoors ➜ Recycled plastic fant astic ➜ Focus on effluent

AginED Ag ED

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

Volume 75 I September 27th, 2021 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

! y a t D e P

This graph shows the total NZ beef exports to all countries.

Feed them properly and make them grow well: • Make sure you have milk, hard feed suitable for your animal, hay and water available at all times. • Make sure they have shelter available from wind and rain. • If they refuse a feed, get electrolytes into them as soon as possible - tube if necessary. (It is important you have an experienced adult to help with this). • Covers help them keep warm which helps them grow faster. • Dock lambs early (and vaccinate and drench as needed).

Here are some fantastic tips for getting your lambs and calves ready for pet day from Clancy (10), Aurelia (9), Ran (7) and Wyatt (4).

show ready:

• Lead your lamb and calf every day if you can.

2 In what year and month have exports been at the highest level on this graph?

• Lead somewhere other than the home paddock. • Lead the calves alone if you have other calves. • Walk beside their shoulder, never in front of them.

To make them your friend: • Never ever chase them. • Get animals as soon as possible and feed them colostrum. • Spend lots of time just with them, sit with them, pat them. • Call them to every feed.

Have a go:

3 In what year and month have exports been at the lowest level?

• Calves need to be brushed every day. • A hessian cover can make the calf shiny. Keep this under a waterproof cover. • Have a practice set of halter and lead and a show day version so that you can be spick and span on the day.

• Put a halter on before you feed them so they associate the halter with good things.

• Transport the calves with hay on the floor and their covers on.

• Feed calves with individual feeders not a big feeder which lots of animals can feed off.

• Take food and water for the calves on the day.

• Arrive early with all your cleaning gear.

THICK SKIN CAN BE BENEFICIAL (AT LEAST IN LAMBS)! Neonatal lamb mortality is an important welfare and economic issue in New Zealand sheep flocks, where lambing occurs outdoors. Increased litter size (more twins and triplets) further aggravates mortality rates, but lamb survival has very low heritability, so it is hard to improve by genetic selection. Indirect selection, based on an easy-to-measure trait of higher heritability that is genetically correlated with survival, is an alternative. Studies at Massey University estimated genetic variation for ultrasound-measured skin thickness (heritability 26%) and its genetic correlation with survival of Romney lambs (27%). Also, skin thickness was found to have a significant role in thermoregulation in new-born lambs. Thin-skinned lambs were found to lose significantly more heat through skin compared to thickskinned lambs, and consequently had to produce significantly more heat to maintain body temperature. Skin thickness could potentially be considered as a supplement to direct selection for lamb survival in genetic improvement programs. Currently, skin thickness variation in other sheep breeds is being explored. 1 What is heritability and how does it influence selection for a trait of interest? 2 How would high frequency of triplets in sheep flocks contribute to increased neonatal lamb mortality rate?

How many tonnes of beef was exported in August this year?

STRETCH YOURSELF: 1

How do August 2021 exports compare to the previous season and the five-year average?

2 If export volumes through September-October follow typical trends, would we expect volumes to increase or decrease compared to August? 3 Over 52% of August beef exports have headed to North Asia which has been hit hard by African Swine Flu. What is African Swine Flu and why might this be boosting demand for NZ beef?

WeatherWatch with Phil

DOWN UNDER SHOULD BE UP TOP! As weather forecasters we sometimes look at a map of NZ and think - hmmm, why do we look northwards when the bulk of our weather comes from the south west? The energy maker for the bulk of NZ's weather comes out of the Southern Ocean - but this is partially cut off from most of our maps. Imagine if we reversed that, so Southland was at the top of the map and Northland at the bottom. Apart from looking a little confusing, this does actually make more sense when it comes to the weather.

So let's prove our theory. Using RuralWeather.co.nz take a look at the four corners of NZ (Milford Sound, Blenheim, Whangarei and Gisborne). The biggest rainfall totals should be in Milford Sound. Here's the next task - If you take a look at our rain maps https://www.weatherwatch.co.nz/maps-radars - take a look at the next 7 days of weather and see how much of it comes from the Southern Ocean compared to the area north of NZ. So when earth is a ball suspended in space - which way is technically the right way around when it comes to tracking weather!? Next time you see a weather map in the newspaper or online...maybe turn your head upside down to get the full picture for New Zealand!

WANT TO KNOW MORE ABOUT THE SCIENCE OF ANIMAL PRODUCTION? Check out the Bachelor of Animal Science www.massey.ac.nz/bansci

Got your own question about how the weather works? Ask Phil! Email phil@ruralweather.co.nz with your question and he could answer it on the Weather Together podcast!

26 FARMERS WEEKLY – farmersweekly.co.nz – September 27, 2021

Newsmaker

Research targets new lepto vaccine Massey University PhD student Maryna Sokolova has been awarded a Fulbright scholarship that will help to continue her research into a novel strain of leptospirosis by spending six months at Yale University next year. Colin Williscroft reports.

IVE years ago a Massey University study identified a strain of leptospirosis in cattle not covered by vaccines that are commercially available. If successful, Maryna Sokolova’s research has the potential to inform the development of a new vaccine and diagnostic tests for cattle that will boost their immune protection and lead to a significant reduction in the risk of infection to people in New Zealand. The 2016 Massey survey of 200 dairy herds found that around 70% of adult cows had been exposed to a non-vaccine or novel strain strain that’s similar to an existing strain. “But we don’t know how long it has been out there, so we don’t really know much about it because

it’s been hiding in plain sight,” Sokolova said. “This new strain is antigenically. We don’t know how it behaves, just that when we test serum for it, it’s identical to a known strain.” Her project aims to isolate the strain, culture it so it can be grown in lab conditions and then investigated to learn more about how it behaves. Leptospirosis was first reported in NZ in the 1950s and it’s been an ongoing problem since then. It’s traditionally a work-related disease, with livestock considered the main source, although it can also be spread through urine from mice, rats and hedgehogs. Farmers, milkers and meat workers are those most at risk. It’s notifiable, with cases required to be reported to the

Ministry of Health. She says the number of notified cases fluctuates from year to year; in one year there could be 100 cases and another year, there could be up to 200. About 60% of those people are hospitalised. “But the problem with lepto is the disease presents with symptoms that are very similar to a normal flu or cold. Some people only get a mild version, so the notifications only record the worst cases,” she said. “The actual number of cases could be up to 20 times more than the reported number.” It’s generally passed to people by contact with infected animals through mucus membranes – eyes, nose and mouth – and uncovered cuts. The disease is mainly controlled

Notice of change to TB slaughter levy rate Pursuant to Clause 10 of the Biosecurity (Bovine Tuberculosis – Cattle and Deer Levy) Order 2016 notice is hereby given that commencing 1 October 2021 the rates of slaughter levies for Dairy and Beef Cattle will change. Levy rates from 1 October 2021 are (GST exclusive): • Dairy cattle $9.00 per head (reduced from $10.00 per head) • Beef cattle $5.50 per head (reduced from $6.30 per head)

FOCUSED: Maryna Sokolova is investigating a new strain of leptospirosis and hopes her findings will lead to the development of a new vaccine for the disease. Photo:Sasha Mikhyeyeva

in NZ through animal vaccination and the use of personal protective gear. Sokolova says some countries, such as France, China and Russia, vaccinate at-risk workers against lepto, but there are side effects and those vaccines are not certified for use in other countries, which is one of the reasons why they are not used in NZ. Another drawback of vaccinating people against the disease is that they need to be revaccinated annually. Lepto also causes production and reproduction problems in cattle.

The problem with lepto is the disease presents with symptoms that are very similar to a normal flu or cold.

• Cattle and Deer exported live $11.50 per head (no change)

Background to change The National Pest Management Plan for Bovine Tuberculosis is funded by agreement between Government, DairyNZ Inc, Beef + Lamb New Zealand Limited, Deer Industry New Zealand and TBfree NZ Ltd. Funding is through a combination of fixed funding and levies charged on the slaughter of cattle and the live export of cattle and deer. The respective industry shares of this funding are subject to annual adjustment based on shifts in the relative size and value of each industry. The funding received is also affected by the actual cattle slaughter volumes for the dairy and beef sectors. Each financial year a reconciliation is made of the amount contributed by each industry and levy rates may be adjusted accordingly. Stephen Stuart, Chief Executive, TBfree New Zealand Limited.

Further information For further information on OSPRI’s TBfree programme, please visit www.ospri.co.nz

Some strains are known to cause abortions in cows and some cause a drop in production, along with animal ill-health. The lack of information about the new strain extends to its effects on cattle, so that’s also part of Sokolova’s research. Farmers have played an important part of her work so far and Sokolova is grateful for their input. She has collected samples from farms all around NZ and any time she needs more information, she’s been able to pick up the phone, send an email or talk face-to-face with people to find out more about their experiences with the disease, both personal and with their animals. “It’s very important to connect to those at risk of the disease, to get their point of view,” she said. “To know what’s practical and what’s not. To know what’s happening out there will help find solutions to control the disease.” She also paid tribute to her

supervisors, Professor Cord Heuer, Professor Jackie Benschop, Dr Julie Collins Emerson, Dr Art Subharat and Dr Shahista Nisa. Thanks to her Fulbright scholarship Sokolova will spend six months at the Yale School of Public Health, beginning in June. She says the main advantage of that will be to take part in laboratory-based leptospirosis projects at the university’s laboratory. “They have quite a few exciting projects on the go, one of them is a vaccine project that I’m really excited about,” she said. “Hopefully I’ll be able to participate in that, to learn new skills and also share the knowledge that we have in NZ with them, because NZ is pulling well above its weight in different disciplines, including disease modelling and epidemiology. “It’s really important to cooperate with overseas scientists to get mutual benefits working together.” As to a timeframe when a new vaccine or diagnostic tests might be developed, she says that’s difficult to say. “It all depends on how soon we can isolate the bacteria and it also depends on vaccine effectiveness studies,” she said. “It can be a very long road to the market. We’ve seen with the covid vaccines, even with such a push from all the countries and governments, it took almost a year and a half to get it through. “Although animal vaccines are somehow easier to validate, it still takes some time to go through all the steps.” In the meantime, her advice to those in the primary sector at risk of the disease is simple. “Cover cuts and try to avoid splashes of urine when milking,” she said. “Stick to rodent control on-farm and get help when you’re feeling unwell. “Don’t leave it too late, because the first symptoms are exactly like a common cold and it unfolds from there.”

New thinking

FARMERS WEEKLY – farmersweekly.co.nz – September 27, 2021

Tech simplifies cow milk sampling Herd testing cows for milk volume sampling can be an arduous affair. But an AgResearch proof of concept trial has shown photos and algorithms may prove almost as accurate as an alternative means to measure how individual cows stack up against their herd mates. Richard Rennie reports.

SING 3D photographic technology to estimate a cow’s milk generating capacity was one of the “left field” ideas AgResearch scientist Dr Paul Shorten tossed in the air when looking at how to make cow milk sampling simpler. He and his team wanted to develop technology that could provide the benefits of individual meters, but only require one or two sensors within the entire farm dairy to achieve that. “We considered a few options, including just using a single meter and milking times to determine individual cow milk volumes. But the challenge there was to estimate single cow milk volume accurately,” Shorten said. Coupling 3D photographic imagery with a computer algorithm, the researchers determined that by photographing a cow’s udder prior to milking when it was full, and then afterwards, volume could be calculated. The technology is similar to that increasingly used in more intensive livestock systems like piggeries and chicken rearing facilities. A camera unit installed above the livestock’s pens will photograph regularly and calculate average growth rates for individual animals.

PROJECT: AgResearch scientist Dr Paul Shorten’s research incorporating algorithms and imagery has resulted in 3D technology that simplifies cow milk sampling.

There is also increasing interest globally in using the technology for determination of teat placement in robotic milking processes. Paul Shorten AgResearch “There is also increasing interest globally in using the technology for determination of teat placement in robotic milking processes,” he said. Working with a small group of 23 cows at Tokanui over autumn, the researchers found their system could estimate milk yield, and an acceptable level of error, when

compared to the in-line milk meters they used to calibrate against. Their method had an error of .8 of a litre compared to .5 of a litre for the milk meter. “And this is based off just a camera on a smartphone in its proof-of-concept state,” he said. Refining the concept will include analysing more cows at different times of the year. “And it may be that when cows are producing more, such as in springtime, the accuracy will lift further,” he said. While the images were taken via smartphone then separately processed via laptop algorithm, a refined system would feature a camera system in-situ, with the software integrated into it. Image assessment is becoming a new frontier for managing aspects of large herd behaviour and health. Dunedin company Iris Data

Science has farmers signing up for an early lameness detection system that uses an on-farm camera to collect data points from every cow exiting the dairy. Using AI, it identifies the cow’s gait and detects any anomalies that may signal impending lameness issues. Shorten’s work has also demonstrated the potential of using the imagery to identify particular udder traits that affect a cow’s performance. Their initial work has included using the computer imagery to determine front/rear teat placement, teat length and teat orientation upon the udder, with 94% accuracy. The value of this work could feed into robotic milking software, but also highlighted the potential for using computer vision for on-farm prediction of udder traits in dairy cows when examining TOPs (traits other than

production). “And it is quite possible this could be applied to other TOPs, including rump angle, udder support and stature,” he said. In the meantime, he suspects farmers would find the technology useful for management decisions and within herd rankings of cow performance and for making seasonal decisions, such as what cows to dry off based on milk yield. Shorten’s research incorporating algorithms and imagery is the latest in a lengthy career that has spanned areas as diverse as coronary heart disease modelling, improving meat tenderness and shelf life prediction of food products. Other work he is involved in at present includes bioacoustics for determining cow behaviour and the use of drones for pasture quality and quantity assessment.

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Opinion

28 FARMERS WEEKLY – farmersweekly.co.nz – September 27, 2021

EDITORIAL

Fonterra ready to fulfil its destiny

HE reset of Fonterra is a drawn-out affair that may finally have an end in sight. Its leaders believe the return to financial success gives their proposed capital restructuring legs to stand on and will appeal to 75% of farmers who vote. The enhanced strategy now comes with some high-level financial targets for the period to 2030. An average farm gate milk price between $6.50 and $7.50 looks conservative and only enough to cover farm working expenses and loan repayments. Dividends of 40c have been made before but would nonetheless be a good yield on the now-reduced supply share value of $3.25. Not hairy, audacious goals, but rather moderate measures of success if Fonterra sticks to its strategy, avoids food safety disasters and fulfils the steadily rising global demand for dairy foods. Chair Peter McBride’s tenure will be defined by the vote on the flexible shareholding package scheduled for the December annual meeting and how the company performs in its new clothes. In the same way that the late John Wilson ushered in Trading Among Farmers over prior forms, of which his predecessor Sir Henry van der Heyden had struggled to convince farmers for five years. The structures of large producer cooperatives should evolve to suit the wishes of their members and their trading purposes and perhaps every decade is the right timescale. Chief executive Miles Hurrell has identified New Zealand grass-fed milk and its qualities, known and as-yet-unknown, as the core of the company. Energy sustainability, diversity, animal welfare, methane emissions, carbon-zero and water quality are all wrapped up in the package for consumers. Buy-in from dairy farmers is critical to Hurrell’s pathway for Fonterra’s repositioning, because it is on farms that 85% of these new social expectations will be met. The restructured co-operative must deliver on its promises to carry all its farmers, and any newcomers, in a unified way for the good of the country.

Hugh Stringleman

LETTERS

Fusing public assets a risky move I READ Alan Emerson much in the same way I eat McDonald’s – rarely and with guilt. His opinion of the Three Waters Reform rightly identifies the confiscation of ratepayer’s infrastructure into unelected agencies, but has little to do with provinces being taxed to shore up Auckland’s and Wellington’s water woes – that is just the old rural vs urban trope. Three Waters takes publiclyowned assets, consolidates them into four enterprises all with healthy income streams, strong cashflows and balance sheets stuffed with valuable assets. Add to this our dependency on this national strategic utility and hey, presto! An extremely attractive business for sale to wealthy overseas investors

at some point in the future. No surprise that Deloitte, the world’s favourite privateers, found a compelling business case for consolidating our water infrastructure providers. We only have to look at what happened to the 10 UK regional water authorities privatised by the Conservative government in 1989 – sold for £7.6 billion and now owned by banks, hedge funds, pension funds, sovereign funds and businesses from Japan, Canada, France, Malaysia, Singapore, the US, Germany, UAE, Kuwait, Australia and, of course, China. At the point of sale the Government (i.e. the taxpayer) kindly took on the collective water authorities debt of £5b to sweeten the deal. The UK National Audit Office calculated that

consumers’ water bills rose 40% above inflation since the privatisation. The results of the privatisation speak volumes – leaks reduced a mere 4% in 20 years to 25% of water currently lost to leakage. Prosecutions for pollution events peaked in 2018, profits go to pay dividends rather than infrastructure investment and so new mains sewerage pipes in London are being funded by low-interest loans from the Government. As if the pill isn’t bitter enough, our Government paid the England and Wales water regulator to measure the performance of our water utilities. This is a scheme straight out of Margaret Thatcher’s playbook. It offers a future

government access to a quick sale to pay down government debt, our most successful industry, which was $40b in 2011 and forecast to rise to $190b by 2025. The Three Waters advertisement states “…our trout will be happy…” My arse they will. David Haynes NZ Federation of Freshwater Anglers

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Opinion

FARMERS WEEKLY – farmersweekly.co.nz – September 27, 2021

We’re world-leading, so why do more? Pulpit

Jim van der Poel

ANAGING our dairy sector’s impacts inevitably attracts a range of views. Should we do more, less or stay the same? We produce the lowest emissions dairy products in the world, so why do more? When it comes to change and regulation, there’s certainly no perfect fit for all, especially with such diverse farm systems and farmers. Ultimately though, we are all challenged by new rules and what they should or shouldn’t be. Our dairy product is the most efficiently produced in the world – we have plenty to be proud of. New Zealand’s agricultural emissions have stabilised and always-improving farm practices means we are 25% more emissions efficient at producing dairy than we were in 1990. But, like all high-performers, we must continue to evolve. The bar gets ever higher due to increasing competition and evolving consumer and community demands. We are the best place in the world to be dairy farming and DairyNZ research has shown it. We want consumers to have the world’s most sustainable milk. Industry bodies pushed hard for the split gas approach (managing methane separately from other gases) under the Zero Carbon Act. This was the culmination of many, many years of advocacy. That advocacy saw the Government listen. The splitgas approach is a science-based target that recognises biogenic methane has a different warming impact to carbon dioxide – its shorter lifespan means net zero is unnecessary. Initially, we were faced with a target of net zero for all gases. That was unachievable, not science-based and would have severely impacted farming’s viability. New Zealand, and our sector, is still under considerable pressure from other countries and sectors to pursue a net zero target for all gases. This is something

between the primary sector, government and Māori will support farmers and growers to measure, manage and reduce emissions. Its design will recognise sequestration, recognise methane’s target and get funds back into the sector to support change. In the next six months we will present options to farmers on He Waka Eka Noa and seek your feedback. He Waka Eke Noa and programmes like DairyNZ’s Step Change are geared at supporting farmers.

But, like all highperformers, we must continue to evolve. The bar gets ever higher due to increasing competition and evolving consumer and community demands. Farmers are renowned for their ability to adapt – and we will again. Changes can be made over time, sensibly and with the right tools. Pushing climate progress down the track would leave us unprepared and at risk. As a sector, we have to accept our emissions, their impact, the need to reduce, and that farm practices can adapt. Strong international and domestic pressure remains. We also need to maintain our international brand’s credibility and competitive edge. While we continue to push for regular reviews, we also need the Government to deliver a credible emissions reduction plan for NZ – and solid investment in tools and solutions to back up the targets. All gases must do their part in meeting NZ’s commitments. That is crucial.

Who am I? Jim van der Poel is chair of DairyNZ.

TRYING TIMES: DairyNZ chair Jim van der Poel says while the 2030 target to reduce biogenic methane by 10% will be incredibly challenging, support is available.

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

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we strongly reject, especially compared to carbon emitters. Our advantage is NZ’s unbundling of short and longlived gases. This helps define their contribution to warming and the tracking of emissions against temperature over time. The objective is to limit global warming. Reducing then stabilising methane emissions contributes to that. The 2030 target to reduce biogenic methane by 10% will be incredibly challenging, but we are on the journey. The 2050 target to reduce methane 24-47% below 2017 levels is not supported by DairyNZ, Beef + Lamb NZ and Federated Farmers, as in our view they are not science-based targets. This 2050 target will also be reviewed by the Climate Change Commission during five yearly reviews. Meanwhile, we support farmers to make initial reductions toward the 2030 target and we continue to challenge the Government over the 2050 target. We are also advocating hard for regular reviews based on any science, economic or other developments. We are pushing for investment into R&D because, while farm practice changes help, we also need new technologies. For several years, we have also encouraged the Government to consider different metrics. The internationally accepted metric is Global Warming Potential (GWP100), which measures warming over a 100year span. However, momentum is growing around GWP*, which better reflects the warming impact of methane over a longer timespan. Different metrics have pros and cons. Whether we see a new metric or not, NZ’s split gas approach does already acknowledge the difference between short and long-lived gases. This really is a significant win and absolutely the right approach. On the farm, He Waka Eke Noa will help us. This partnership

Opinion

30 FARMERS WEEKLY – farmersweekly.co.nz – September 27, 2021

Nothing wrong with the sidelines Alternative View

Alan Emerson

I DO not believe some of the hysteria that we’re hearing about the Aukus agreement. For the uninitiated, it is a defense agreement between Australia, the United Kingdom and the United States that involves, amongst other things, nuclear submarines for Australia. The simple advantages of nuclear submarines over the conventional type is that they are a lot faster and can stay underwater longer. The modern nuclear submarines are also greener than the old diesel-powered models; they process their own waste. No one knows what the new submarines will cost, but they came at the expense of a $A90 billion contract with the French government to build conventional submarines. Logic would suggest the nuclear deal will be considerably more expensive than the $A90b conventional submarine deal. Putting that figure in perspective, this year New Zealand will spend $5.18b on defense. The reaction to the deal has been interesting. Simply speaking,

there is a lament that we’re no longer part of the club, that we’ve been sidelined, we’ll suffer in trade terms and we’ll become an international pariah. For the record, I’m totally relaxed with the NZ position. For a start, we can’t play the big, expensive military games that the US, UK and Australia do. I’d add that we currently have no submarines and we’re never likely to. If that means we’re sidelined, then so be it. The reason given for the defense pact was to counter China. Why would we want to dig in against our biggest trading partner? I don’t accept any of the trade arguments and would suggest that the risks to trade would have been greater had we joined the Aukus club. Finally, we come to the assertion that having an independent foreign policy means we’re likely to become an international pariah. My suggestion would be to bring it on. Looking at those issues in more detail, being part of any club and tying ourselves to the foreign policies of the US, UK and Australia would be daft in my opinion. Those countries pride themselves on being hawks. We don’t. While I accept that Donald Trump is no longer president, going along with his rhetoric would have done us no favours. President Joe Biden has continued the Trump anti-China rhetoric.

Unsurprisingly, aligning ourselves with the foreign policy of UK PM Boris Johnston doesn’t spin my wheels either and every Kiwi knows the vagaries of Australian Defense Minister Peter ‘Trash’ Dutton. The cries about traditional allies don’t impress me either. We went to Vietnam, Afghanistan and Iraq to help America and for what? We were actually promised a Free Trade Agreement with the US if we went to Vietnam but that didn’t happen. One could suggest you should be able to trust the word of your traditional allies. We’ve fought two World Wars to help Britain and, again, for what? They joined the EU and we were out in the cold. Australia I’ll leave to your imagination. As you might have guessed I’m happy being independent. I also don’t accept the argument over trade and trade access. Currently we’re negotiating with the UK and the EU. We have a trade agreement with China who now wants to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The CPTPP came out of the TPP that was then US President Barack Obama’s initiative to try and counter China. Now China wants to join the club. America isn’t part of it courtesy of Trump. Recently the UK has applied to join, as has China. I can’t see NZ having an issue with China and the CPTPP, but will

NO GO: US President Joe Biden has continued the Trump anti-China rhetoric, but that’s no reason for New Zealand to join in, Alan Emerson says.

Looking at those issues in more detail, being part of any club and tying ourselves to the foreign policies of the US, UK and Australia would be daft in my opinion. Australia? After all, having China on board would be absolutely contrary to the anti-China rhetoric Australia employed with the announcement of the Aukus deal. In addition, NZ, Australia, China and eleven other countries are already part of RCEP, the world’s largest trading bloc. As far as other trade agreements are concerned, I remain confident that we can secure a deal with the UK. I’m also confident we can secure an agreement with the EU and in those negotiations the Aukus deal will be helpful for us. The French are livid that the Australian government pulled

a $A90b deal with the French to build submarines in Adelaide. They weren’t given any warning, which fueled their anger. The French have promised to disrupt trade negotiations between the EU and Australia. NZ doesn’t have that baggage. We also have the nations of the Pacific unenthusiastic about the possibility of nuclear submarines cruising the waters. While not being anti-nuclear, I agree with those sentiments. I checked my dictionary for Aukus and found Auk, which is a “diving bird with a heavy body, short tail and narrow wings”. Appropriate. What’s more important than Aukus is that NZ is hosting a virtual APEC conference later this year. My strong belief is that we’ll get more out of that than Australia did by joining Aukus.

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

Climate conference a test of credibility From the Ridge

Steve Wyn-Harris

FROM the Ridge (FTR): Minister James Shaw, thanks for agreeing to an interview. James Shaw (JS): My pleasure. I’ve heard about your interviews. This is not actually real though, is it? FTR: Ah. What is real? Great question. Einstein said, “Reality is just an illusion, albeit a very persistent one”. I like Pablo Picasso’s thought when he said, “Everything you can imagine is real”. Yeah, this is real. Trust me. JS: OK, that might be the case but how do I know you won’t just make things up and put words in my mouth? I want the truth out there. FTR: What is truth? That’s trickier now that we live in a post truth world. Former President Trump’s attorney, Rudy Giuliani, once said “Truth isn’t truth”. Mind

you, he has a decent chance of ending up in prison. Here’s hoping. Trump went onto say black was white, up was down and all manner of clever things, so how could mere mortals like you and I James decide what is true, what is reality and who should pay for lunch? Let’s get down to the nitty gritty and talk about this environmental summit you just have to get too. JS: It’s called Cop26 and stands for ‘Conference of the parties’ and has been going since 1995 so this is the 26th time we’ve met. FTR: That’s a lot of meetings over a long period of time. Hopefully it’s making a difference. There are a lot of green groups calling for this conference to be postponed again. It seems delegates from the most vulnerable countries to climate change face exclusion. They can’t get the vaccine and need to be immunised to attend, they can’t get connecting flights, they can’t afford two weeks in pricey MIQs in Glasgow so it will just be a bunch of rich nations gasbagging away. Hardly equitable. I hear unlike everyone else on the planet in these pandemic times, you can’t meet virtually. Thus, saving massive amounts

of the very thing you are talking about reducing, carbon emissions. JS: They are not offering a virtual summit, so we must be there at the table to put our point. FTR: Why?

There is no other way of saying this, but this junket jaunt is rank hypocrisy.

JS: To put our perspective. FTR: Why don’t you send them a letter? Wouldn’t that show more credibility than winging over there with your delegation of officials? Each one of you will produce four tonnes of CO2. You could halve it by not coming back I guess. Or sail there like Greta. JS: We will be offsetting those emissions of course. FTR: Who will be paying for that? JS: The Crown. FTR: You mean the taxpayer? JS: Yes. FTR: I see one of the main topics is about banning coal. Won’t you get some stick, given that last year we imported a

million tonnes of dirty coal from Indonesia and this year we’ve been hooking into it again to keep the lights on in Auckland? It’s the worst fossil fuel available. I thought you’d called a climate emergency. JS: The coal thing is tricky. If we don’t get enough rain and the lakes don’t fill, the wind doesn’t blow the turbines enough and because we have decided to get out of gas, then we need to keep generating electricity with something. But I’ve got my people looking into it. FTR: James, there is no other way of saying this, but this junket jaunt is rank hypocrisy. You and your colleagues bang on about riding your push bikes and driving around in your EVs. My farming mates are all up in arms about the small matter of the ute tax, which is being brought in to save the world. And we offset by actually planting millions of trees collectively each year. Frankly, you are getting the grief you deserve over this. Let’s finish and talk about you and your mates getting preferential treatment to get MIQ spaces. Heaps of us have got kids and relatives overseas who have been trying for up to 18 months to

get back to New Zealand. I see you went into the draw last week for a spot in the MIQ lottery and were 15,000th in the queue having said if you couldn’t get MIQ, you wouldn’t be going. Now they’ve found a few rooms for you and your officials, and your prize will be ongoing seething resentment from anyone who knows someone who can’t get back into their own country. You would have been well advised to get our High Commissioner to travel up from London and do the table thumping on your behalf. Why you would think that your presence will make any difference to outcomes is beyond me. Don’t answer that, I’m not interested. James, I’ll leave you with a quote from William Hazlitt. He was an English essayist in the early part of the 19th century. “The only vice that cannot be forgiven is hypocrisy. The repentance of a hypocrite is itself hypocrisy.”

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

Opinion

FARMERS WEEKLY – farmersweekly.co.nz – September 27, 2021

ETS: goldmine or minefield? The Braided Trail

Keith Woodford

IN RECENT weeks I have written multiple articles on the Emissions Trading Scheme (ETS) with a particular focus on forestry. Last week I also had an extended interview with Kathryn Ryan on RNZ’s Nine to Noon. However, there is still lots more that needs to be said. The bottom line is that carbon forestry is now far more profitable than sheep and beef farming on nearly all classes of land. We are indeed on the cusp of the greatest rural land-use changes that New Zealand has seen in the last 100 years. For many sheep and beef farmers, carbon farming can now be a gold mine. The key requirement is pastoral land that will grow an exotic forest that will not be destroyed by storm, fire or disease. It will take a while for the pine trees to march further across the sheep and beef landscape, with seedlings and planting labour the immediate constraints. But let there be no doubt, right now whenever sheep and beef farms come onto the market, then both the purchaser and the underbidder are typically thinking forestry. They can easily outbid those who have a sheep and beef perspective. Sheep and beef farmers now have four options. Option one is to progressively plant at least part of the farm in trees. The major constraint is the cost of establishing the forest. Many farmers need all of their current cash flow for property maintenance and living. There is nothing left over to establish the forest that is likely to cost between $2000 and $3000 a hectare. Option two is to lease-out the land or alternatively to take on a

joint-venture partner. Anyone going down the lease path needs to be very sure they have got things worked out as to who owns both the assets and any carbon liabilities at the end of the lease. Option three is to sell to a new owner who will plant a forest. Land prices are rising and the selling option is increasingly attractive. Option four is to hang in. This is fine for those who love their sheep and cattle and are making a go of it financially. It may even be the best option, at least in the interim, if land prices are going to continue rising. But eventually, managing the process of generational succession requires moving with the times to the most profitable option. So there lie the options linked to the goldmine. In short, based on the current economics and assuming the carbon price is sustainable, then it has to be carbon farming, either as a permanent forest or in association with lumber. In coming to that conclusion, the key assumption is whether or not carbon prices will be maintained. There lies the first potential landmine. Carbon farming involves no delivery of any physical product. Instead, it is about financial transfers as dictated by regulations. Carbon trading is an artificial market based on a societal goal of climate-change benefits. From a financial perspective, it does not really matter whether the climate-change benefits are real or not. The things that matter are the rules of the game. The current rules are complex but the big-picture message is clear, at least when it comes to forests versus sheep and beef, on land that is currently used for pastoral purposes. On that class of land, the ETS is the driver and carbon is the new gold. The EmissionsTrading Scheme was first introduced back in 2008. However, until recently the ETS has largely been a background issue, with the price of carbon

GOLDMINE: Keith Woodford says based on the current economics carbon farming, either as a permanent forest or in association with lumber, is far more profitable than sheep and beef farming.

too low to dominate investment decisions. To the extent that the ETS has been relevant, the key forestry focus from a Government perspective has been in association with production forests.

But let there be no doubt, right now whenever sheep and beef farms come onto the market, then both the purchaser and the underbidder are typically thinking forestry.

It is only in the last two to three years that some people have started to realise that, with the carbon price rising rapidly, carbon farming without harvesting might actually be the option that provides the best financial return. Associated with this, no-one in Government seems to have realised the potential for sheep and beef to be blown away by the march of the pines. Increasingly, there is now recognition even among forestry professionals that carbon farming

has the potential to not only push sheep and beef farming aside, but to also profoundly affect the lumber industry, with considerable timber production also being pushed aside. The spreadsheets that I run for my own analyses confirm that non-harvested permanent forests not only look better than sheep and beef, but are also looking better than the combination of carbon plus production forests. This is certainly the case on the hard country and increasingly on the better country. A key feature of importance within the current ETS is that the carbon price required to make urban folk change their lifestyle behaviours is much more than the price that will lead to pine trees marching across the landscape. There lies the conundrum. For example, if the carbon price were to reach $100 a tonne, the petrol emission charge would only be 24 cents a litre. At the same carbon price of $100, then non-harvested forestry is not only looking more profitable than sheep and beef, but also looking the best financial option on a considerable proportion of current dairy land. When I first started writing about these incongruities in mid2019, the articles were read by some influential people on both sides of the political spectrum.

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But the dominant paradigm at that time was that we must plant more trees and that carbon trading through the ETS was the way to achieve this. So there the matter lay. The key point for the discussion here is that if the ETS is going to have a meaningful effect on emissions in the broader economy, and both sides of Parliament have already committed to that policy, then the price of carbon certainly has to be well above $50 and in all likelihood a lot higher. This means that unless the Government fundamentally changes its perspective, and hence changes the rules of the game set out in the ETS, then carbon farming looks a safe bet. It is important to note that no-one of major influence across the political spectrum has said that they want to blow away our existing land-based industries, although some have said they wish to see a decline in these industries. Of relevance here is that, according to the Ministry for Primary Industries’ recent State of Primary Industries document, 83% of New Zealand’s physical exports are from primary industries. We live in an export-led economy with primary industries doing the leading. Carbon farming, as currently set up, does not earn foreign exchange. In the long run, that could change, but that prospect is a long way off. Climate Change Minister James Shaw has been stating recently that higher prices for carbon are desirable and indeed needed to change emitter behaviour. Similarly, the Climate Change Commission has advocated with success for the upper limits on the carbon price to be raised to $110.15 by 2026. There seems to have been a failure by both the Minister and the Commission to recognise what high prices do to land-based activities. In contrast, the supposed price limit for 2021 was only $50, but

Continued page 32

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32 FARMERS WEEKLY – farmersweekly.co.nz – September 27, 2021

Gas shortage hits food production MINISTERS have been urged to treat food as a national security issue after the Government was forced into a multi-million pound bailout to secure CO2 gas production. Last week, the commercial decision by US-owned CF Industries to halt fertiliser production at its Billingham and Ince plants in light of high natural gas prices sparked warnings that a shortage of CO2 supply could threaten the manufacture and supply of fresh produce.

Government and business leaders must go further beyond shortterm sticking plaster solutions and accelerate a move towards more systematic change. Patrick Holden The Sustainable Food Trust Together, the two plants produce up to 60% of Britain’s foodgrade CO2, which is used as part of the slaughter process as well as in packaging to maximise the shelf life of products and forms a major part of the beer brewing process. The crisis piled pressure on a struggling food chain, with mass labour shortages severely affecting many meat processors’ ability to operate at capacity. Following an emergency

Continued from page 31 that number was itself blown away by the market. As I write this article, the current price is $64.50 and the futures price for 2026 is above $73. There would seem to be an inevitable conclusion that the ETS as currently structured may not be fit for purpose.

summit of representatives from the UK’s food supply chain, NFU president Minette Batters said the fact there was “little to no warning” of the plant closures was an “indication of market failure”, and called for urgent clarity on the details, timing and volumes of the government’s deal. National Pig Association chief executive Dr Zoe Davies added “the Government’s three-week stay of execution may remove the immediate cliff edge, but it does not solve the immediate issue of pigs being rolled on UK farms due to the labour crisis”. She added a rise in C02 prices could see a knock-on impact for producers. All eyes will be on the fertiliser markets in the coming weeks, with Yara chief executive Svein Tore Holsether confirming the company would bring its ammonia production to Europe from facilities in Trinidad, the USA and Australia to support fertiliser capacity. But with the UK fertiliser market dominated by a handful of players, their influence over the food supply chain has been likened to a “cartel”, with a clear need for alternatives. These alternatives could soon, however, be on the way, according to British Meat Processors Association chief executive Nick Allen. He suggested an increase in CO2 prices could encourage companies which produce the gas as a by-product, but do not yet capture or sell it, to enter the market. “A significant price rise may make this viable and

also dissipate the effect of consolidation in the industry,” he said. Defra Secretary George Eustice has already confirmed CO2 prices will rise from £200 to £1000 per tonne. Meanwhile, British Poultry

Council chief executive Richard Griffiths warned serious conversations in Government about increasing resilience in suppliers were needed as “food cannot be at the whim of international gas prices”. Echoing this, Patrick Holden,

That is a conclusion that will not sit at all well with Government. Put another way, within an ETS there is no price of carbon that will substantially change emitter behaviour without being sufficiently high to blow away sheep and beef. Changing the rules of the game will be messy. Almost certainly, there will be

lots of defensive attitudes within Government and lots of upset people outside Government. That will include many sheep and beef farmers, together with the new breed of investors, if the new goldmine is subsequently taken away by any countermanding set of regulations. The position of industry organisation Beef + Lamb NZ

seems to be that regulatory limits are needed. But one should not assume that this is what many sheep and beef farmers themselves necessarily think. They might prefer the goldmine. I said at the start of this article that there was a lot more that needs to be said. That remains the situation. I have only scratched the surface.

CLARITY NEEDED: NFU president Minette Batters said the fact there was “little to no warning” of the plant closures was an “indication of market failure”.

chief executive of The Sustainable Food Trust, said: “Government and business leaders must go further beyond short-term sticking plaster solutions and accelerate a move towards more systematic change.” UK Farmers Guardian

Your View Keith Woodford was Professor of Farm Management and Agribusiness at Lincoln University for 15 years through to 2015. He is now Principal Consultant at AgriFood Systems Ltd. He can be contacted at kbwoodford@gmail. com Previous articles can be found at https://keithwoodford.wordpress. com

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Hawera 155 Mangawhero Road

Magnificent dairy farm This outstanding 129.49ha (more or less) flat rectangle shaped dairy farm is situated on the Mangawhero road, between Auroa and Kapuni. An excellent 44 bale rotary cowshed with cup removers, as well as a built in afiMilk system to manage and monitor animal health. Centrally raced provides easy access to and from the cowshed, along with a good range of support buildings. The farms best production was done from autumn calving from 360 cows producing over 220 000 milk solids, high input feed made on farm has seen the land resown over the past two and a half years. The property comes with the added bonus of three houses. This is an excellent opportunity to buy your dream size quality dairy farm, with strong infrastructure and proven results.

Tender (will not be sold prior) Closing 1pm, Thu 30 Sep 2021 15 Courtenay Street, New Plymouth Brendan Crowley 027 241 2817 brendan.crowley@bayleys.co.nz SUCCESS REALTY TARANAKI LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

bayleys.co.nz/2600944

NEW LISTING

Hastings 96 Algernon Road, Longlands

Large family home and orchard with passive income

Located only minutes from Havelock North and Hastings, this 13 hectare apple orchard boasts a large five bedroom family home set in mature gardens with salt water swimming pool. The orchard is leased for $45,000 per annum with over $700 per week income from shed rentals generating over $80,000 in passive income. Furthermore because of the excellent soil types and 2018 intensive plantings of Sonya (2.0 hectares) and Jugala (2.2 hectares), the remaining approximately 7.1 hectares of Royal Gala, Fuji and Braeburn varieties are available to redevelop over time with the current lessee. With a fantastic climate and water consents, this orchard is a must view.

Tender (will not be sold prior) Closing 4pm, Wed 3 Nov 2021 17 Napier Road, Havelock North View 1-1.45pm Sun 3 Oct or by appointment Tony Rasmussen 027 429 2253 tony.rasmussen@bayleys.co.nz Jeff Kevern 027 482 0745 jeff.kevern@bayleys.co.nz

bayleys.co.nz/2852708

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FARMERS WEEKLY – September 27, 2021

Real Estate

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NEW LISTING

Hawke's Bay (Subdivision of) 4279 State Highway 2, Tutira

The best of Melrose Station Located only 43km north of Napier city, the front 390 hectare portion of Melrose Station provides purchasers with the opportunity to secure top end finishing land. With options to buy either the southern 273 hectare main block with improvements including a four bedroom station home and three bedroom cottage, both recently refurbished, five stand woolshed covered yards complex, large cattle yards, numerous implement sheds and hay barns; or the northern 117 hectare bare land portion with a four stand woolshed. The whole property benefits from a reticulated water system and a high percentage of easy contour tractor country which has been cropped and regrassed within the last few years. Metalled laneways and a very high standard of conventional fencing provide for excellent workability. A top finishing property which has benefitted from a high level of inputs.

Tender (will not be sold prior) Closing 4pm, Thu 28 Oct 2021 17 Napier Road, Havelock North View by appointment Tony Rasmussen 027 429 2253 tony.rasmussen@bayleys.co.nz EASTERN REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

bayleys.co.nz/2852721

EXCELLENT RETURNS ON YOUR INVESTMENT

Introducing Grant Marshall GlobalHQ’s Real Estate & AgriHQ Partnership Manager After 12 months as AgriHQ partnership manager, I have seen how our reports and real estate can compliment each other. With that insight, I have taken up the portfolio to look after the advertising needs of New Zealand’s real estate companies. With an existing background in media sales, and a true passion for building close working relationships, it will be a smooth transition for our current clients. My goal is to ensure your advertising hits the mark with an engaged audience by using the platforms GlobalHQ has on offer whether that’s print, digital, or new media.

Located in the central heart of the Taranaki, this chicken broiler farm offers a solid business income and may be the perfect opportunity to make the change and embrace a unique country lifestyle. Set on 5.0425ha (approx. 12.5 acres) and enjoying stunning open rural views the property is only a short drive to good schooling and community hubs and 15km (approx.) to New Plymouth with all that has to offer. The 3-bedroom family home is very comfortable and has recently been fully refurbished. A separate double garage has an adjoining rumpus/games room for the family to spread out. All of the 8 broiler units have been well maintained, fully upgraded and automated to a high standard. An array of support buildings including implement shed, office, feed silos, generators and other assets make this a very attractive property. Recent improvements to the operation include natural energy and water harvesting facilities that have received recognition and environmental awards. Currently operated as an investment with one full-time manager plus a further fulltime labour unit, the property and business includes all necessary equipment required day to day along with training and assistance for new operators. An extremely profitable business showing exceptional returns – don’t delay, enquire now.

www.countrywidetepuke.co.nz/?/property/3448373/

I look forward to working with you and your teams to help promote not only the properties you are listing, but your business as well.

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Taumarunui 41 McLennan Road

Kai Iwi 68 Smiths Road Open Day

Deadline Sale

Stunning position

Kinross

Do you want sheds? Nice flat land? A great building site maybe? All Auction 2.00pm, Thu 21st Oct, 2021 View Sun 3 Oct 2.00 - 3.00pm wrapped up at a fantastic location! Then you need to see this Sun 10 Oct 2.00 - 3.00pm property. This super little farm is on the market for the first time in Web pb.co.nz/TUL93312 over 40 years and is a blank canvas for you to add your dream home on one of the elevated building sites overlooking the Taringamotu river and beautiful views of Mt Hikurangi. This has been used as a depo for a contracting business and the sheds are impressive. There is a good workshop and other support buildings also. The land is flat and ideal for livestock, maize growing or horses. This is a one-off opportunity to secure 18.21 ha of lovely flat land. Katie Walker M 027 757 7477

Situated in an area with a view to the sea, is a well presented property with a three bedroom home on an elevated site. The property is mainly flat to rolling contour with some steeper faces. It is currently run as a bull unit. It has been divided into approximately 30 well fenced paddocks, that are supplied with water from the Kai Iwi water scheme along with some dams. A good set of covered cattle yards, along with a six bay implement shed with three lockable bays to compliment the property. Please bring your own bike and helmet to the open day.

North Otago Rutherford Road

North Otago - Kakanui Valley Road and Whartons Road

Doug Glasgow M 027 204 8640

Deadline Sale

North Otago - Rutherford Road • Well developed 203.7389 ha property with extensive mature shelter belts and rolling to steeper contour • Majority cultivatable with Claremont silt loam and hill soils • Four units of water from the Dunrobin private scheme with spring fed ponds as backup • Infrastructure in the form of an older two stand woolshed, sheep yards, four bay haybarn six bay shed and four bay implement shed • Large new tanalised timber and Te Pari cattle yards with race, head bale and loading ramp • Subdivided into approx 24 main paddocks with a good pasture renewal programme • Currently run as a dairy runoff block for the last 7 years Property Brokers Ltd Licensed REAA 2008 | pb.co.nz

Deadline Sale closes Wednesday 27th October, 2021 at 2.00pm, (unless sold prior) View Thu 30 Sep 2.00 - 3.00pm Web pb.co.nz/MTR93434

Auction

Kakanui Valley Rd & Whartons Rd Deadline Sale closes Thursday 28th October, 2021 at 4.00pm, (unless sold prior) View By appointment Web pb.co.nz/OMR96252

Merv Dalziel M 027 439 5823

A large scale 412 ha dairy farm and a 78 ha runoff. Comprising 353 Auction 2.00pm, Thu 11th Nov, 2021 ha effective area with dairy platform of 327 ha irrigated (Oceania View By appointment Web pb.co.nz/OMR94252 Supply) with 26 ha flat to easy dryland plus a 78 ha irrigated adjoining block. 54 bail rotary, Protrack, ACR's milk meters and in shed feeding. 10 centre pivots and a large 1.3 million m3 storage dam. Production is reliable at 450,000 kgMS from 1,100 cows. This is a large scale established dairy farm with good infrastructure, plenty of accommodation consisting of four homes and a single Merv Dalziel unit, reliable low cost irrigation and good soils. M 027 439 5823 Ross Robertson M 021 023 27220

Proud to be here

Coldstream 368 Crows Road

Coldstream Crows Road Open Day

Quality dairy unit- 185 ha (approx) This quality dairy unit is located in the Coldstream district of Mid Canterbury approx. 30 minutes south of Ashburton, 15 minutes east of Hinds and approx. 30 minutes to Geraldine. This unit has totally flat contour with strong fertile soils and has pivot, Rotorainer and sprinkler long line irrigation. The irrigation water is spilt between the favoured MHV, ground water and also from drains. In the past seasons the property has been run as a larger unit milking between 789 cows for 372,230 kgMS to the 2020/21 season 749 cows for 369,828 kgMS from 183 ha. A modern 14 year old rotary dairy shed of 54 bails, Waikato Milking plant, Protrack and grain feeders.

Tender

Dairy/support - bareland Tender closes Friday 22nd October, 2021 at 3.00pm, (unless sold prior) View Tue 28 Sep 1.00 - 2.00pm Web pb.co.nz/AR88165

Chris Murdoch M 027 434 2545

Mayfield 289 Anama Settlement Road

49.58 ha of bareland located approx. 30 minutes south of Ashburton and minutes east of Hinds. Special features of this property is its quality soils and pastures. Presently running dairy cows for milking as part of larger dairy unit. This property has its own well and irrigation consent and it shares a pivot with the neighbouring farm that is also up for tender at the same time. This bareland title has a shed and a set of cattle yards and fits very well into the dairy unit that is also for sale. Pro Track record with the existing owner producing 528 kgMS/cow for the last two seasons or 1,760 kgMS/ha approx. at 3.6 cows to the ha. Excellent fertilizer history.

Silverstream Farm Limited- Mid Canterbury

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

Chris Murdoch M 027 434 2545

Seadown 139 Phar Lap Road Tender

214.5 ha located in the favoured foothills location of Anama, approx. 30 minutes west of Ashburton. A quality mixed farm that has been in the same family for the past 74 years and it is with some reluctance that the vendors have decided to sell. Surrounding farms include intensive arable, dairy support, mixed sheep, beef and dairy. Special features: • Quality homestead, large range of farm improvements • Excellent arable soils, excellent fencing and shelter • Good access Available as a total 214 ha or as three (1) 37.5 ha (2) 68.5 ha (3) 108 ha (House and Improvements).

Tender closes Friday 22nd October, 2021 at 4.00pm, (unless sold prior) View By appointment Web pb.co.nz/AR88281

Open Day

Fairview Holstein Farms Tender closes Friday 29th October, 2021 at 3.00pm, (unless sold prior) View By appointment Web pb.co.nz/AR88070

Chris Murdoch M 027 434 2545

This 415 ha self-contained dairy farm, family owned, and with a winter milking contract, has approximately a 130 ha milking platform, and is a well established operation with a 36-bail rotary dairy shed, free stall barn, plenty of sheds and four homes. The property has approximately 180 ha irrigated via guns with the balance of the Phar Lap Road block dry land and used for growing winter crops, maize and dairy. Support along with a run-off block on Hedley Road is irrigated via two pivots and a further block in Seaforth Road irrigated via a gun. All three blocks have good soils and fertility in a great location. This farm has lots of positive features and is well positioned for the future.

Tender closes Thursday 21st October, 2021 at 2.00pm, (unless sold prior) View Fri 1 Oct 12.00 - 1.30pm Web pb.co.nz/TMR92343

Michael Richardson M 027 228 7027 Tim Meehan M 027 222 9983

Proud to be here

SMARTLY PRESENTED ON VERSATILE SOILS - 113.4 HECTARES 147 Puawai Road, Glen Oroua, Manawatu After long term guardianship by the Morison Family, we present this very tidy dairy unit on quality soils that have been well farmed under a simple system. With Kairanga and Manawatu fine sandy loams predominating, along with some Kairanga heavy silt loams, you are assured of highly productive, dairying soils, that are also excellent for livestock finishing and cropping, particularly maize grain. Improvements throughout are well presented including well formed lanes, 138m deep artesian bore, 28AS dairy with 350 cow yard upgraded 8 years ago and the very tidy four bedroom home, re-painted two years ago and recently insulated top and bottom. Fertiliser history is strong with regular re-grassing. Run as a 270 cow largely pasture based system with only moderate brought-in supplement and nitrogen usage, production has been very consistent with a 7 year average of 104,000kgMS. Perfect for families, being at the end of a quiet road only 20 mins from the city with primary and Palmerston North high school buses just 1.5km and 2km away. Area subject to final survey which is almost complete.

113.4 hectares Video on website

nzr.nz/RX2917637 Auction 1pm, Thu 21 Oct 2021, Feilding Club, 25 Kimbolton Road, Feilding. Peter Barnett AREINZ 027 482 6835 | peter@nzr.nz NZR Limited | Licensed REAA 2008

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We are looking for a passionate Digital Coordinator who will love the experience of supplying unparalleled digital analytics and insights to our Partnership Managers and advertising clients; who will enjoy helping plan and book digital advertising campaigns; who can confidently upload digital content to our various platforms; and who has the passion and energy to help us build a digital future for rural New Zealand.

13.5HP. Briggs & Stratton Motor. Electric start. 1.2m cut Assembled with SKF bearings.

TOWABLE FLAIL MOWER

Assembled by Kiwis for Kiwi conditions – built to last.

GO THE MOA!

$4400 GST INCLUSIVE

To find out more visit www.moamaster.co.nz

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

The ideal candidate will love marketing, enjoy helping others and have an excellent eye for detail. Experience in the rural sector and with products such as Google Suite and Salesforce is advantageous for applicants, but not essential.

Under Woolshed/Covered Yards Cleaning Specialist www.underthewoolshed.kiwi

At least six month’s experience in a marketing or relevant role is required to apply.

We also dig out and remetal cattle yards & calf sheds

SCOTTY’S CONTRACTORS FROM THIS

This is a full time position, based at our head office in Feilding.

Stock Manager

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

LK0108383©

JOBS BOARD

DOLOMITE

VETMARKER

✁

INNOVATIVE AGRICULTURE EQUIPMENT

1962 - 2012

LK0107929©

Serving NZ farmers since 1962

www.pppindustries.co.nz sales@pppindustries.co.nz

LK0107794©

• Inspection door to check screen • Reinforced stainless steel screen • Tungsten tipped auger

We invite you to register your interest and request a job

*conditions apply

✁

LK0108743©

Applications close 5pm Friday 8 October 2021.

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

Phone Scott Newman 0800 2SCOTTY 0800 27 26 88 Mobile 027 26 26 27 2 scottnewman101@gmail.com

TO THAT

New Zealand’s Number 1 service provider since 2004

CURRENTLY WORKING IN MANAWATŪ, RANGITĪKEI & WHANGANUI AREAS – BOOK NOW. SOON MOVING INTO HAWKES BAY.

LK0108701©

at hr@globalhq.co.nz

LK0107423©

description and application form now by emailing Cushla

*FREE upload to Primary Pathways Aotearoa: www.facebook.com

Noticeboard

DEERLAND TRADING LTD

FORESTRY

MODEST ACCOMMODATION within 40 minutes of Invercargill for working rural professional. Currently required for six to 12 months. Anything considered. Phone 022 062 7624.

DEERLAND TRADING LTD buying deer velvet this season and paying above the average. Also contractor required to buy deer velvet. Payment on commission basis. Contact 021 269 7608.

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.

ANIMAL HANDLING 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 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.

DOGS FOR SALE DELIVERING / BUYING NZ wide since 2012. Trial. www.youtube.com/user/ mikehughesworkingdog/ videos – email: mikehughesworkingdogs@ farmside.co.nz 07 315 5553. TWO YOUNG HUNTAWAYS, working. Both with good barks. Phone 027 243 8541. WORD ONLY ADVERTISING. Phone Debbie on 0800 85 25 80.

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

WANTED

BOOK AN AD. For only $2.10 + gst per word you can book a word only ad in Farmers Weekly Classifieds section. Phone Marie on 0800 85 25 80 to book in or email wordads@ globalhq.co.nz

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

GOATS WANTED

FOR LEASE

BALAGE FOR SALE

EQUESTRIAN COMPLEX and 200ha grazing available in North Taranaki. Phone 06 752 9142.

BALAGE $75+gst. Unit loads available. Top quality. Phone 021 455 787. 600 BALAGE UNITS available. $85 per bale. Taihape. Phone 027 303 8956.

CONCRETE CULVERT PIPES. Farm grade pipe stocked in Taupo. 450mm & above. Call Wayne for more info. 027 405 6368.

FOR SALE

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

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.

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

LIVESTOCK FOR SALE WILTSHIRES-ARVIDSON. Self shearing sheep. No1 for Facial Eczema. David 027 2771 556. RED DEVON BULLS. Waimouri stud, Feilding. Phone 027 224 3838.

LOG BUYER HAULER CREW available for summer harvest. Wairarapa area. Phone 027 489 7036.

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

RAMS FOR SALE WILTSHIRE & SHIRE® Meat rams. Low input. www.wiltshire-rams.co.nz 03 225 5283. WORD ONLY ADVERTISING. Phone Debbie on 0800 85 25 80.

Got something to sell? Advertise in Farmers Weekly

WANTED TO BUY RIFLE WANTED. 308 Browning / Sako. Phone 027 440 3699.

Phone 0800 85 25 80 or email classifieds@globalhq.co.nz

WANTED TO LEASE EAST TARANAKI FARM LAND. Sheep and beef. Phone 020 4018 9927. NORTH WAIKATO sheep and beef farm Phone 027 492 8944.

PERSONAL

I have been buying from Kells since they have been selling. I always have confidence in any lines I buy from them. Kells is reliable with great service and staff.”

Rural Lady

At 5’4, slim build, silky blonde hair and hazel eyes. She loves working on her life style block, gardening, tramping, cooking and new adventures. Looking to meet a gentleman to enjoy her life with. To meet, Please call & Quote code 57 Age open, all areas

0800 446 332

INDEPENDENT WOOL INTERESTS BUYER/ EXPORTER

DAVE MAUNDER

WOOL Independent wool brokers

p.06 835 6174 www.kellswool.co.nz

LK0105457©

ACCOMMODATION WANTED

JW108719©

FARMERS WEEKLY – September 27, 2021

Heavy duty long lasting Ph 021 047 9299

Selling something?

Advertise in Farmers Weekly Contact Debbie: 0800 85 25 80

Livestock Noticeboard ECZEMA TOLERANT ROMNEYS RAMGUARD TESTING SINCE 1985 • • • • • •

WANTED Large Numbers Friesian 1yr bulls 200-270kg

FOR SALE

KEITH ABBOTT, RAGLAN 027 463 9859 | www.waiteikaromneys.co.nz JW108738©

13 Speckle Park 1yr Heifers 11 Speckle Park 1yr Steers

Livestock at your fingertips

Glen R Angus Annual Bull Sale

Ruapehu Speckle Park

On-farm Auction &

online

10 rising 2-year-old purebred bulls for sale

Showcase your animal health and management products and services to our dedicated farming audience.

35 Rugged 2-year-old Bulls Monday October 4th – 1.30pm

BVD tested and vaccinated. TB Status C10. Phone: Ray 027 365 4641 Email: raynjanbrown@outlook.co.nz

LK0108741©

Running monthly in Farmers Weekly - delivered to 77,000+ rural mailboxes! Contact Ella on 027 602 4925 or livestock@globalhq.co.nz today for more information.

@waiteikaromneys

Open Day to view bulls: Tuesday September 28th from 1.00pm Sandown 445 Deans Road, SH 72, Darfield Video of bulls on

Call Peter Heddell on 027 436 1388

LK0108744©

Animal Health & Management Section

5 star rating Structurally sound Robust functional sheep that survive Minimum input Selecting for parasite tolerance and less dags No ewes worm drenched, dipped or vaccinated

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

Livestock Noticeboard

FOR SALE

Are you sick of Facial Eczema?

PROGRESSIVE LIVESTOCK LTD

80 2YR JERSEY BULLS 80 MA HEREFORD COWS CAF

WANTED

STOCK REQUIRED

1YR FRSN BULLS 220-300kg

95kgs Delivery

Ross Dyer 0274 333 381

Friesian & FX Capital Lines Friesian Export Quality Lines Please Contact

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

www.progressivelivestock.co.nz

“Is that the dog we’re supposed to beware of?” he asks the owner. “That’s him,” comes the reply. “He doesn’t look dangerous to me. Why would you post that sign?” “Before I posted that sign, people kept tripping over him.” Here at Farmers Weekly we get some pretty funny contributions to our Sale Talk joke from you avid readers, and we’re keen to hear more! If you’ve got a joke you want to share with the Farming community (it must be something you’d share with your grandmother...) then email us at: saletalk@ globalhq.co.nz with Sale Talk in the subject line and we’ll print it and credit it to you. Conditions apply

LONG ESTABLISHED LIC BRED IN-MILK DAIRY HERD AUCTION A/c JW & MT Hamblyn Family Trust Thursday 7th October 2021 at 319 Waiau Road, Tikorangi, Waitara – North Taranaki Start Time: 11:30am (Undercover, BBQ lunch provided) COMPRISING: 190 PREDOM FRSN & FRSN X HERD BW72/41 PW69/14 R/A 98% HERD TEST DATA AVAILABLE DETAILS: • All in-milk. Milked in HB shed. 543ms/cow last season • 25,000 som cell avg last season. Current season 60,000 • TB C10. Lepto vaccinated. A2A2 bulk milk tested • Calved from 18th July. System 3 feeding. 10% MT rate last season AUCTIONEERS NOTE: A wonderful AB bred herd that has been well managed for decades. Our Vendors are retiring this farm into dry stock. Owned herd 30+ yrs, always LIC bred. Cows in very good condition. PLEASE NOTE:

This auction date is scheduled subject to any changes due to Covid-19 regulations. PAYMENT TERMS: Payment due 20th December 2021. All transport arranged from the next day after auction. FURTHER ENQUIRIES TO CARRFIELDS LIVESTOCK AGENT: Colin Dent 027 646 8908 or colin.dent@carrfields.co.nz

Need to mooooove stock?

TE KUITI ADULT CATTLE FAIR

LK0108615©

As the stranger enters a country store, he spots a sign: “Danger! Beware of Dog!” Inside, he sees a harmless old hound asleep in the middle of the floor.

YOUR LOCAL PL AGENT

Friday October 1st Start 12:00 noon 1035 Cattle Comprising: • 90 3yr Ang Ang/ Hfd X Steers • 280 2yr Ang Ang/ Hfd X Steers • 280 2yr Exotic & Stabiliser Steers • 115 2yr Hfd/Frsn & Ang/Frsn X Steers • 40 2yr Frsn Bulls • 60 2yr Char, Ang & Ang X Heifers • 40 2yr Hfd/Frsn & Ang/Frsn Heifers • 35 Aut Born Char Steers • 30 1yr Sim X Steers • 40 1yr Hfd/FrsnX Steers • 25 1yr Hereford Bulls PGG WRIGHTSONS Kevin Mortensen 027 473 5858 NZ FARMERS Brett Wallbank 027 488 1299 CARRFIELDS LIVESTOCK Andrew Jardine 027 397 7005

260 Rutherford Road, Albury, South Canterbury. Tuesday 5th October 2021 Commencing 11am • 100 18 Mth Simmental, Hereford & Murray Grey/Friesian x Mixed Sex Cattle • 180 Ylg Simmental/Hereford Mixed Sex Cattle • 100 Ylg Simmental/Hereford x Bulls • 220 Ylg Hereford, Simmental & Murray Grey/ Friesian x Mixed Sex Cattle •

C10 Status

Full details in this paper 27th September or go to Agonline Enquiries:

Advertise your stock in Farmers Weekly.

Vendors - David & Jayne Timperley 03 685 5785 or 0274 375 881 Sam Bell (PGGW) 0272 040 499

Contact Ella: 06 323 0761 / 027 602 4925 livestock@globalhq.co.nz farmersweekly.co.nz

Helping grow the country

UPCOMING SALES Tuesday, 28 September 2021 12.00pm Waitangi Angus Yearling Bull Sale 12.00pm Motere Angus Yearling Bull Sale 12.00pm Ardo Ezicalve Hereford Bull Sale Wednesday, 29 September 2021 1.00pm Stokman Angus Yearling Bull and Heifer Sale Thursday, 30 September 2021 12.00pm Waiau Trust Elite In-Milk Sale 12.00pm Ranui Angus Yearling Bull and Heifer Sale 1.00pm Timperlea Angus Yearling Bull Sale Friday, 1 October 2021 12.30pm Simmental Bull Sale A/C SD Chesswass Monday, 4 October 2021 12.30pm Matauri Angus Yearling Bull Sale 1.30pm Glen R Angus Annual Bull Sale

LK0108737©

LK0108749©

www.dyerlivestock.co.nz

SALE TALK

PRELIMINARY NOTICE OPAWA DOWNS ON FARM CATTLE SALE

2021 Born Weaner Heifer Calves

1YR BEEF BULLS 250-300kg 2YR FRSN & BEEF BULLS 400-500kg 2YR STEERS 400-550kg

To see these top breeders, visit www.fegold.co.nz

FARMERS WEEKLY – September 27, 2021

LK0108707©

Stay ahead of the rest Sign up to AgriHQ’s free upcoming saleyard notifications to find what’s on offer before sale day. Choose which sale yards you want to follow and find out the number and class of stock being entered at the next sale. farmersweekly.co.nz /enewsletters

For more information and saleyard auction times go to bidr.co.nz or contact the team

CLEARING SALE

VIEW OUR CATALOGUE AT

– In Milk Herd Auction

www.carrfieldslivestock.co.nz

On Account of B J & L B Bishop Farm 75yrs + under the family ownership Date and Location Tuesday 12th October 11:30am at Inglewood Saleyards Herd Details

THURSDAY 30TH SEPTEMBER, 2021 12 NOON, 662 RANGITATAU EAST ROAD, WANGANUI

A QUALITY SELECTION OF 26 IMPRESSIVE YEARLING BULLS WITH LOW BIRTH WEIGHT & EARLY GESTATION + HEIFERS WHICH ARE SOLD IN LOTS. NON-TRANSFERRABLE

DON'T MISS OUT - ENQUIRIES TO:

Livestock advertising?

Going Going Gone! Contact Ella:

0800 85 25 80

110 in-milk predominantly Jersey Cows BW 188, PW 202 EBL free, C10, BVD & Lepto vaccinated. Current SCC 80,000 and producing 420 m/s on System 2.

Auctioneers Note:

Due to a change in farming practice it’s a privilege to offer this outstanding herd of quiet, quality cows. This extremely young (nothing over 9 years to be auctioned) herd has milked through a herringbone shed twice a day producing 420 m/s per cow on a system 2. Current SCC is 80,000 for this season, cows to herd test on 23rd September. Payment and delivery terms: Payment due 20th November 2021, Delivery day of sale or contact your agent. NZFLL Vendor Agent Sheldon Keech 027 222 7920 sheldon.keech@nzfll.co.nz

livestock@globalhq.co.nz

LINDSAY JOHNSTONE (027 445 3211) MARIA JOHNSTONE (021 610 5348) OR YOUR LOCAL LIVESTOCK AGENT.

Working with Farmers for Farmers

PGG Vendor Agent Dennis Dravitzki 027 406 2372 dennis.dravitzki@pggwrightson.co.nz

JW108722©

YEARLING BULL & HEIFER SALE

• • •

Livestock Noticeboard

FARMERS WEEKLY – September 27, 2021

Check out Poll Dorset NZ on Facebook

To advertise Call Ella: 0800 85 25 80

Spring Bull Sale

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

Quality Hill Country Angus Bulls Annual Yearling Bull Sale 2021 On Farm Sale 1st October 2pm Viewing from 1pm

Speckle park Bulls available for private sale

Industry – leading maternal and fertility traits including a selection especially suitable for heifer and dairy-cow mating

On-farm, Fairlie, Friday, October 8th Online bidding opens Sunday, October 3rd at www.meadowslea.co.nz through the

platform

Call: David Giddings 027 229 9760 Email: giddingsfamily@xtra.co.nz

• • • • •

Calving ease Short gestation Temperament Low to moderate birth weights All bulls sold as Yearlings

• Yearling and 2 year old • DNA tested • Parentage verified

Contact Dave & Nicole Stuart Home: 06 329 4748 Cell: 027 422 7239 Email: komako.farm@gmail.com

• BVD tested and vaccinated • Semen tested • M. Bovis tested

A Canterbury based stud recently established from the best genetics available in NZ, Australia and Canada.

Agents: Carrfields Livestock: Cam Waugh 0274 800 898 Stephen Harris Livestock: Mark Anderson 0274 691 004

LK0108611©

LK0108539©

35 2yr Bulls 60 Yearling Bulls

LK0108222©

1912 Pohangina Valley East Road, Ashhurst, Manawatu

www.kotingotingospecklepark.co.nz PAKI-ITI ROMNEY

PAKI-ITI ROMNEY & ROMTEX

CATTLE WITH TASTE! EARLY MATURITY • HIGH YIELDING CARCASE • PROVEN IMF

P: 06 323 4484 E: murraygreys@pbbnz.com murraygreys.co.nz Find us on Facebook NZ Murray Grey Breeders

ORARI GORGE HEREFORDS

Visit

PAKI-ITI ROMTEX

paki-iti.co.nz to view our breeding programs

LK0108292©

MURRAY GREY BEEF

• 160 clients last year purchased or leased Paki-iti rams • Bred on a 870ha hard hill country property rising up to 637m asl (2090f asl) • Breeding for constitution, longevity, structural soundness and then performance • Constitution = moderate frame, deep bodied type of sheep • Performance = Growth, fertility, survival, meat yield, incorporating FE tolerance and parasite resistance • 10 years of breeding Romtex, utilizing a stabilised SIL recorded Romtex ﬂock • Paki-iti maternal Romtex offer faster growth rates and higher meat yields • Romtex rams sold as 22th rams

Stewart Morton 06 328 5772 • Andrew Morton 06 328 2856 RD 54 Kimbolton, Manawatu • pakiroms@farmside.co.nz

MERCHISTON ANGUS

EST 1955

YEARLING BULL SALE

29TH Sept on farm – Hunterville at 2pm

ANNUAL SPRING SALE OF YEARLING HEREFORD BULLS • All bulls born on the property • All bulls below breed average for birth weight and above breed average for • All bulls tested negative for BVD and EBL calving ease. and vaccinated against BVD.

39 BULLS OFFERED AT AUCTION PLUS 200 BULLS TO BE SOLD PRIVATELY VISITORS ALWAYS WELCOME • WWW.ORARIGORGE.CO.NZ Robert and Alex Peacock | Tel 03 692 2893 | Email robert@orarigorge.co.nz Graham and Rosa Peacock | Tel 03 692 2853 | Email rosa@orarigorge.co.nz ORARI GORGE STATION, 1021 TRIPP SETTLEMENT ROAD, GERALDINE, SOUTH CANTERBURY 7991.

• • • • •

Semen tested BVD and EBL tested negative and vacc. Fully EBV recorded Heifer and cow bulls See catalogue on line – Angus NZ

Contact: Richard Rowe mercang@farmside.co.nz

LK0108652©

MONDAY OCTOBER 11TH 2021 at 11am ORARI GORGE STATION, GERALDINE

MARKET SNAPSHOT

Market Snapshot brought to you by the AgriHQ analysts.

Mel Croad

Suz Bremner

Reece Brick

Nicola Dennis

Sarah Friel

Caitlin Pemberton

Deer

Sheep

Cattle BEEF

SHEEP MEAT

VENISON

Last week

Prior week

Last year

NI Steer (300kg)

6.35

5.80

NI lamb (17kg)

9.45

9.40

7.20

NI Stag (60kg)

6.55

6.60

NI Bull (300kg)

6.25

5.65

NI mutton (20kg)

6.60

4.90

SI Stag (60kg)

6.75

6.65

6.60

NI Cow (200kg)

4.70

4.25

SI lamb (17kg)

9.35

9.30

7.10

SI Steer (300kg)

6.10

5.20

SI mutton (20kg)

6.75

4.70

SI Bull (300kg)

5.90

5.15

Export markets (NZ$/kg)

SI Cow (200kg)

4.90

4.05

UK CKT lamb leg

Slaughter price (NZ$/kg)

9.01

7.85

US domestic 90CL cow

9.10

8.68

7.06

North Island steer slaughter price

6.50

South Island steer slaughter price

$/kg CW

10.0

South Island lamb slaughter price

Oct

4.50

Dec 5-yr ave

Feb

Jun

Aug 2020-21

Apr 2019-20

Jun

Oct

Dec

Feb

Apr

Jun

Aug

2019-20

2020-21

Fertiliser

Aug 2020-21

FERTILISER Last week

Prior week

Last year

2.63

2.73

1.94

37 micron ewe

2.10

30 micron lamb

Coarse xbred ind.

Dairy

7.0

5-yr ave

(NZ$/kg)

Apr

8.0

5.0

WOOL

2019-20

9.0

6.0

5.00

Feb

South Island stag slaughter price

11.0

5.50

Dec

7.0

5.0

5-yr ave

8.0

6.0

6.00

Oct

9.0

5.0

$/kg CW

8.0

$/kg CW

4.50

Last year

6.0

7.0

9.0

Last week Prior week

North Island stag slaughter price

11.0

8.0

5.00

6.50

Last week

Prior week

Last year

Urea

871

578

1.95

Super

342

294

DAP

1135

768

Grain

Data provided by

MILK PRICE FUTURES

NZ average (NZ$/t)

Top 10 by Market Cap

CANTERBURY FEED WHEAT

Company

YTD High

Fisher & Paykel Healthcare Corporation Ltd

33.28

36.55

YTD Low 27.1

5.2

9.94

4.925

8.50

430

8.00

420

Auckland International Airport Limited

7.77

7.99

6.65

410

Mainfreight Limited

95.3

99.78

64.85 4.37

7.50

$/tonne

$/kg MS

9.65

5.0

5.50

4.00

7.00 6.50 6.00

Meridian Energy Limited (NS)

400

Spark New Zealand Limited

4.75

4.97

Mercury NZ Limited (NS)

6.45

7.6

5.79

390

Ryman Healthcare Limited

15.13

15.99

12.46

Sept. 2022

DAIRY FUTURES (US$/T) Last price*

Prior week

vs 4 weeks ago

3750

3700

3540

SMP

2835

2830

2825

AMF

4140

4100

4050

Butter

3500

3460

3430

Dec-20

Feb-21

Apr-21

Jun-21

Aug-21

7.61

Ebos Group Limited

35.4

36.25

27.51

Listed Agri Shares

5pm, close of market, Thursday YTD Low

0.335

0.161

The a2 Milk Company Limited

5.82

12.5

5.39

Comvita Limited

3.61

3.75

3.06

420

Delegat Group Limited

14.74

15.5

12.9

5.15

3.61

400

Foley Wines Limited

1.5

2.07

1.45

Livestock Improvement Corporation Ltd (NS)

1.22

1.35

0.81

Marlborough Wine Estates Group Limited

0.23

0.65

0.23

New Zealand King Salmon Investments Ltd

1.4

1.72

1.39

PGG Wrightson Limited

3.64

3.99

3.11

Rua Bioscience Limited

0.39

0.61

0.37

Sanford Limited (NS)

5.15

5.51

4.3

Scales Corporation Limited

5.3

5.4

4.22

Seeka Limited

5.05

5.68

4.66

Synlait Milk Limited (NS)

3.37

5.24

2.85

T&G Global Limited

2.97

2.85

S&P/NZX Primary Sector Equity Index

13929

15491

12865

S&P/NZX 50 Index

13306

13558

12085

S&P/NZX 10 Index

12997

13978

11776

Fonterra Shareholders' Fund (NS)

3800

400

3700

350 $/tonne

5.67

YTD High

Oct-20

Dec-20

Feb-21

Apr-21

Jun-21

Aug-21

WAIKATO PALM KERNEL

3500

6.6

7.99

0.29

Aug-20

3600

11.16

7.25

360

WMP FUTURES - VS FOUR WEEKS AGO

8.38

ArborGen Holdings Limited

380

7.61

Contact Energy Limited Fletcher Building Limited

Company

440

* price as at close of business on Thursday

3400

Oct-20

CANTERBURY FEED BARLEY

WMP

Milk Price

Aug-20

$/tonne

Nearby contract

370

…

J…

…

Sept. 2021

J…

N …

…

380

5.50

US$/t

Slaughter price (NZ$/kg)

6.0

6.00

4.00

12.07

North Island lamb slaughter price

9.0 $/kg CW

9.10

Last year

10.0 12.08

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

Last week Prior week

$/kg CW

Slaughter price (NZ$/kg)

William Hickson

Ingrid Usherwood

300 250

Oct

Nov Dec Latest price

Jan

Feb 4 weeks ago

Mar

200

Aug-20

S&P/FW PRIMARY SECTOR EQUITY

Oct-20

Dec-20

Feb-21

Apr-21

Jun-21

Aug-21

13929

S&P/NZX 50 INDEX

13306

S&P/NZX 10 INDEX

12997

FARMERS WEEKLY – farmersweekly.co.nz – September 27, 2021

Analyst intel

WEATHER

Overview We’re now on the summer side of the weather, with the spring equinox passing last Thursday morning. Now the days grow longer than the nights, all the way up to December 22, and it’s not until late March 2022 that we revert back to nights becoming longer than the days. The equinox is also the true start to spring weather in the Southern Hemisphere (although NZ gets spring weather as early as August). When you look at the big picture air pressure maps, you note that from NZ westwards to Perth and out and over the Indian Ocean, there’s a really even mix of high and low pressure moving through. This brings variety to NZ’s weather and that’s exactly what we have this week (and next).

US lamb demand strong one year on

14-day outlook This week kicks off with a zone of low pressure near the eastern North Island, which is then replaced (sort of) by high pressure (more to the north of NZ). This encourages more westerlies this week, which then fade as high pressure expands over NZ. The forecast for October 1 should see a powerful high over the country bringing sub-tropical northerlies into both islands this weekend as it departs. Next week, the incoming low from the Tasman Sea is worth monitoring.

Sarah Friel sarah.friel@globalhq.co.nz

Soil Moisture

Highlights

23/09/2021

Wind

Varying wind directions on Monday/ Tuesday, but basically a sou’west flow is developing as low pressure near the eastern NI moves away, allowing high pressure from the Tasman Sea to move in mid to late week. Sub-tropical northerly quarter winds develop this weekend and early next week. Source: NIWA Data

7-day rainfall forecast

Temperature

The spring westerlies bring the traditional heavy rain events to the West Coast, but the extra lows crossing NZ are bringing rain into places that don’t often get it, like Nelson and Hawke’s Bay. Early this week, a low should bring another burst of rain to the eastern North Island (good news), then drier westerlies return. It’s a healthy forecast for most places, rainwise, over the coming week or two.

This week kicks off colder/cooler, but as the week wears on we expect warmth to return, especially by Friday and this weekend/early next week, with sub-tropical northerlies possible in both main islands.

Highlights/ Extremes

100

Rainfall accumulation over seven days, from 7am, Monday, September 27, to 7am, Monday, October 4.

200

400

Rain for Hawke’s Bay Monday/ Tuesday. High pressure dominates many places later this week/weekend. Sub-tropical (mild) northerly quarter winds from Friday/this weekend in some regions. A Tasman Sea low to monitor for early next week.

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

HE US is transitioning from an afterthought for export lamb to a target market. From March-August 2020, 9900 tonnes of New Zealand lamb was exported to the US, 23% below the five-year average volume. One year on, exports to the US increased to 15,600t, 22% above the five-year average. For the entire 2020-21 season to August, US has taken a 9.25% share of NZ lamb exports, versus a 6.55% share in the previous season. Lower than average lamb exports to the US last year was due to covid-19 disruptions. US lamb consumption was dealt its first blow when covid-19 shelterin-place orders were declared a fortnight before Passover and Easter. Paired with Level 4 capacity at NZ lamb processing plants, April 2020 export volumes fell off a cliff. At 1805t, it was the lowest April export volume to the US since 2015. Covid-19 restrictions further quelled demand for lamb by disabling restaurant and cruise ship industries, which were traditionally serviced by high-value cuts of lamb. US Frenched rack export prices began a swift decline from the end of March 2020, with prices bottoming out at US$6.00/lb in July, US$2.55/lb less than the five-year average price. The first five months of the US covid-19 outbreak were particularly challenging for NZ lamb exporters. Lamb average export values fell by $1.19/kg from March to July

2020, which is normally a period of growth for values. Had China not provided such avid demand for NZ lamb and bought 51% of exports over that period, values probably would have been weaker. August 2020 marked a turning point for US lamb demand. Export volumes exceeded the five-year average for the first time since March and bar some downside in November, have maintained this precedent ever since. From August 2020 to August 2021, lamb exports to the US have outperformed the five-year average by 5300t. A return to reliable, lucrative buying power from the US has contributed to exceptional late season lamb slaughter prices and motivated several processors to offer heady supply contracts. As a result, strong demand from big lamb traders has added intense heat to the store lamb market. Last week, 40kg male lambs were trading for 55c/kg above the five-year average price, while 35kg males in the South Island were trading for 64c/kg above the five-year average. Evidently, US demand is stronger relative to year-ago levels. This is despite covid-19’s continued impact on the foodservice industry and high levels of daily cases still being recorded in the states. More at-home, adventurous cooking has led consumers to branch out in supermarkets, making demand for lamb more resilient and less reliant on restaurants. This has also helped to dispel traditional distaste for lamb, due to prevalence in tinned wartime rations. While still dwarfed by comparison to the American favourites beef, chicken and pork, lamb’s popularity in the US is certainly on the rise.

GREATER DEMAND: From August 2020 to August this year, lamb exports to the US have outperformed the five-year average by 5300t.

SALE YARD WRAP

Early start for spring lambs The bulk of the new season lambs are still some time away, but Canterbury Park did get into the action earlier than most. Included in the Tuesday sheep sale was an annual draft consignment of July-born lambs from Ward – the first to fly solo at any yards nationwide. The lambs were offered up by PGG Wrightson agent Peter Barnes’ clients and were terminal-cross. “The vendors always offload these lambs early as they are on a vineyard and bud burst has started. They were weaned onto the truck and headed south to Canterbury Park,” Barnes said. The lambs totalled 90 head and sold in two lots of mixed-sex at $118-$120. This was a solid start to the season, though it is too early yet to gauge how the new season lamb market will shape up. Last year the first spring lambs at Canterbury Park made similar values. NORTHLAND Kaikohe cattle • Yearling bulls lifted to $2.70/kg to $2.85/kg • Good yearling heifers sold at $3.10-$3.20/kg • Better boner cows earned $2.00/kg The market continued to strengthen across the board at KAIKOHE for the 350 head offered, as buyers look to preempt the spring rush. Better 2-year beef steers lifted 15c/kg and reached $3.00/kg to $3.15/kg, and lesser types $2.70$2.80/kg. There was just a small number of 2-year heifers though these improved to $2.90-$3.00/kg. A highlight was quality yearling Charolais steers which sold very well to fetch up to $4.04/kg, with the balance of beef types around $3.00/kg to $3.60/kg.

WAIKATO Frankton cattle 21.9 • Two-year Hereford-Friesian steers, 399-486kg, improved to $3.29$3.36/kg • Autumn-born yearling Angus-Friesian and Hereford-Friesian heifers, 345-375kg, reached $3.09-$3.12/kg • Yearling Hereford-Friesian steers, 298kg, made $3.88/kg Throughput swelled to 1270 store cattle at FRANKTON for PGG Wrightson last Tuesday though good demand meant a full clearance. Two-year Hereford-dairy steers, 414466kg, held at $3.16-$3.24/kg. Hereford-Friesian heifers, 365-452kg, also held at $3.12-$3.16/kg. Ten autumnborn yearling Charolais-cross steers, 322kg, topped their section at $3.54/kg and their sisters, 337-371kg, realised $3.22-$3.34/kg. Yearling Angus-cross steers, 257-300kg, were mostly $3.23-$3.28/kg and Angus-Friesian, 221298kg, realised $3.52-$3.62/kg. A pen of 14 quality 198kg Hereford-Friesian steers managed $4.27/kg. HerefordFriesian heifers, 186-275kg, traded from $2.96/kg to $3.15/ kg. Friesian bulls, 250-337kg, earned $2.93/kg to $3.24/kg. Three good prime Angus steers, 683kg, took top honours at $3.47/kg with the balance of Angus and Angus-cross at $3.29-$3.38/kg. Hereford-Friesian heifers, 447-504kg, improved to $3.21-$3.24/kg and boner cows, 428542kg, also firmed to $2.34-$2.39/kg. Read more in your LivestockEye. Frankton cattle 22.9 • Six 2-year Hereford-Friesian steers, 341kg, topped their section at an improved $3.43/kg • Yearling Hereford-Friesian heifers, 223-303kg, held at $2.94-$3.07/ kg • Autumn-born weaner Hereford-Friesian heifers, 120-142kg, were well-contested at $500-$550 New Zealand Farmers Livestock penned a sizeable yarding of 748 cattle at FRANKTON last Wednesday. Good buyer interest meant all were easily absorbed. Good 2-year Hereford-Friesian steers, 477kg, held at $3.26/kg. Top Hereford-Friesian heifers, 358-394kg, fetched $3.02/ kg with the balance at $2.85-$2.98/kg. Yearling beef-dairy steers, 226-280kg, earned $3.19-$3.21/kg and 292-331kg, $3.01-$3.05/kg. Hereford-Friesian bulls, 241-327kg, traded for a consistent $2.74-$2.75/kg. Autumn-born weaner exotic-cross steers, 134-183kg, traded at $590-$715. Six 172kg Charolais-cross heifers topped their section at $610. Hereford-Friesian bulls, 133-136kg, fetched a solid $530-$655. Just under 190 prime cattle were penned and steers held with all 552-613kg at $3.16-$3.25/kg. HerefordFriesian heifers, 435-523kg, softened to $3.08-$3.14/kg. Boner Friesian cows, 449-576kg, pushed to $2.35-$2.41/kg while 463-503kg held at $2.09-$2.18/kg. Read more in your LivestockEye.

KING COUNTRY Te Kuiti cattle and sheep • Ewes with lambs-at-foot made $171 all-counted • A small number of store hoggets sold at $133-$141 • Better 2-tooth ewes fetched $192 and lighter types $126-$130

• Two-year Hereford-Friesian heifers, 430kg, realised $3.04/kg • Yearling Hereford bulls, 200-235kg, traded at $2.77/kg to $2.97/kg There was just a small yarding of sheep at TE KUITI last Wednesday. Heavy prime lambs made $185 and the next cut $182. Prime hoggets sold to $238 with medium types $170-$191. The best of the 2-year steers consisted of Simmental-cross, 416kg, which earned $3.11/kg and 426-433kg beef-cross $3.05-$3.09/kg. Better yearling steers traded to $3.30--$3.40/kg with the balance around $3.03$3.13/kg. The top end of yearling heifers achieved $3.05$3.09/kg.

BAY OF PLENTY Rangiuru cattle and sheep • Prime Shorthorn bulls, 650kg, achieved $3.69/kg • Prime Hereford bulls, 658-701kg, earned $3.45-$3.55/kg • Prime lambs were spread from $135 to $229, followed by low entries of ewes at $84-$197 A good yarding of prime cattle was well-received at RANGIURU last Tuesday. High-yielding 630-758kg Hereford-Friesian steers managed $3.35-$3.39/kg while most other 550-635kg beef-cross steers were $3.07/kg to $3.23/kg. The best of the 2-year cattle, 407kg HerefordFriesian steers, managed $3.24/kg and the balance of the steer and heifers, 413-462kg, traded at $3.07-$3.14/kg. Autumn-born heifers, 414-415kg, managed $3.11-$3.19/kg. Two-year Friesian bulls sold in two even sized cuts; 324kg at $2.91/kg and 235-276kg at $2.63-$2.67/kg. Yearlings were mostly dairy-beef whose top tier ranged from $3.25/ kg to $3.47/kg. Two exceptions were a line of Red Devon, 241kg, that reached $3.40/kg and a 215kg line of eleven Hereford-Friesian that pushed to $3.63/kg. Read more in your LivestockEye.

TARANAKI Taranaki cattle • Yearling Murray Grey-Friesian steers, 251kg, realised $3.78/kg • Quality yearling Hereford-Friesian heifers, 328kg, sold well at $3.08/kg, $1010 • Autumn-born weaner Hereford-Friesian steers, 200kg, fetched $720 A hint of grass growth encouraged more buyers to the rostrum at TARANAKI last Wednesday and the market was strong for the smaller cattle yarding. Two-year steers were limited to just nine head and most sold in a range of $3.12/ kg to $3.24/kg. Good heifers above 460kg realised $3.04$3.12/kg, though the balance was mostly around the $2.70$2.80/kg mark. A large line up of boner cows was hotly contested with Friesian lines realising $2.31/kg to $2.42/kg, and the lion’s share of Jersey returned $1.70/kg to $1.84/kg. Read more in your LivestockEye.

HAWKE’S BAY Stortford Lodge store cattle and sheep • Three-year traditional steers, 496-537kg, held at $3.35-$3.42/kg • Two-year traditional steers averaged 470kg and firmed to $3.32/ kg • Yearling Angus and Angus-Hereford steers, 230kg, reached $4.04/kg • Top wether lambs made $196-$201.50 • Chatham Islands mixed-sex lambs sold from $126 to $194.50 Annual draft cattle from Wairoa lifted the tally to nearly 1200 head at STORTFORD LODGE last Wednesday. Forward cattle of good weight sold well across the yarding, though mid-range types were harder work. Two-year HerefordFriesian steers, 340-380kg, returned $2.80-$2.82/kg, bettered by same breed heifers, 354-433kg, which ranged from $3.14/kg to $3.39/kg. Bull quality was mixed, and the pick was two pens at 464-500kg which made $1530-$1740, $3.30/kg to $3.48/kg. Better yearling Angus steers in the 290-338kg range made $3.74-$3.86/kg and the balance $3.65-$3.70/kg. Yearling Charolais-cross heifers, 355kg, were a standout at $1125, $3.17/kg and the top pen of

Angus, 279kg, reached $930, $3.33/kg. Lighter traditional lines at 187-215kg were more reserved at $550-$640, $2.81/ kg to $3.01/kg. A consignment of autumn-born weaner Simmental-cross bulls sold well at $625-$788. Half the lamb yarding were from the Chatham Islands and strong demand pushed prices up. Ewe lambs sold for $150-$196 while a consignment of local ewe lambs also firmed to $178-$187. Heavy male lambs reached $187-$202. Just one main pen of ewes with lambs-at-foot were offered and consisted of 67 ewes and 87 older lambs and sold for $147 all counted. Read more in your LivestockEye. Stortford Lodge prime sheep • Top mixed-age ewes returned $253-$275 • Good to very good mixed-age ewes firmed to $168-$195 • Very heavy male, cryptorchid and ram lambs realised $240-$270 Ewe throughput dropped to 474 at STORTFORD LODGE last Monday and sold to strong demand. Heavy mixed-age ewes held at $198-$216.50. Most medium to medium-good ewes held at $130-$150 and lighter types realised $125. A larger offering of 638 lambs was penned and sold at solid levels. Good males returned $165-$187. Heavy mixed-sex lambs fetched $216. Top ewe lambs rivalled the males at $244.50 and the remainder of the ewe lambs were mostly heavy types which traded at $182.50-$220. Read more in your LivestockEye.

MANAWATŪ Feilding prime cattle and sheep • Hereford and South Devon bulls, 720-770kg, made $3.00-$3.08/kg • Speckle Park-Friesian heifers, 475kg, returned $3.07/kg • Friesian cows, 630-703kg, sold from $2.30/kg to $2.54/kg • Friesian cows, 530kg, reached $2.68/kg With only one more FEILDING prime sale before the end of September a good number of lambs were sent to market last Monday. Demand and size were high enough that of the 53 main pens only three dipped below the $200 mark. Very heavy pens comprised over half of the yarding and these attained $240-$287 while the heavy pens provided the balance and managed $191-$235. Only a token number of prime ewes were on offer and they achieved results of $170$196. Read more in your LivestockEye. Feilding store cattle and sheep • Two-year Angus steers, 500-550kg, were mainly $3.20-$3.30/kg • Two-year Friesian bulls, 430-510kg, made $3.20-$3.30/kg • Big lines of 260-295kg yearling Angus steers were $3.75-$3.95/kg • Ewes with lambs-at-foot were $95-$120 all counted • Store lambs averaged $179 The market was mostly steady on the 1300 store cattle at FEILDING. Most 420-490kg steers sold for $3.20-$3.25/ kg across all breeds. All colour variations of 420-490kg Hereford-Friesian heifers were $3.00-$3.10/kg, with traditional lines at the same weights making $3.15-$3.30/ kg. Yearling Hereford-Friesian steers, 310-395kg, were $3.25-$3.35/kg, while 190-210kg Friesian bulls sold for $560-$602. A good-sized line of 230kg Hereford-Friesian heifers were $2.95/kg. The ewe with lambs-at-foot market was notably softer. Bigger lines with lambs that were docked or easily old enough to be were $111-$121 all counted, but the majority were restricted to $95-$110 all counted. The 2000 lambs enjoyed a strong sale. Smaller prime types sold for $195$220, good store lambs were $180-$195, while medium-tolighter store lambs made $160-$175. Only two pens went below $145. Read more in your LivestockEye. Rongotea cattle • Two-year Friesian bulls, 425-545kg, made $2.71/kg to $3.01/kg • Better yearling Hereford-Friesian steers sold up to $3.40/kg • Yearling Friesian bulls, 219-440kg, earned $2.42/kg to $2.80/kg • In-calf Friesian cows made $850-$1000 and heifers $1340 • Better boner cows fetched $2.21-$2.24/kg The yards were a little busier than the previous sale at RONGOTEA last Tuesday, New Zealand Farmers Livestock

FARMERS WEEKLY – farmersweekly.co.nz – September 27, 2021

OTAGO Balclutha sheep • Top store lambs eased to $110-$130 with medium at $80-$100 Prime lamb supply remained tight at BALCLUTHA last Wednesday. The top end firmed to $190-$230 with medium at $160-$180 and light $140. Heavy prime ewes held at $200-$240, medium $140-$170 and light $100-$130. Palmerston 1st spring cattle sale • Two-year dairy-beef steers, 452kg, made $3.28/kg • Two-year dairy-beef heifers, 330-420kg, sold in a range of $2.40/ kg to $2.95/kg Tight feed levels meant the buying gallery was small at the first PALMERSTON spring cattle fair last Friday though the market for the 1200 head offering was fair considering this. Straight beef yearling steers, 220-370kg, mostly sold to $3.40/kg to $3.70/kg with lighter types below 220kg $3.20/ kg to $3.40/kg. Straight beef yearling heifers, 230-300kg, fetched $3.10/kg to $3.30/kg and 180kg $2.80/kg to $3.00/ kg. Two-year beef steers, 448kg, earned $3.30/kg and 336kg heifers $3.06/kg.

SOUTHLAND FLYING SOLO: These terminal-cross spring lambs from Ward were the first to be sold without ewes at any sale yard nationwide.

agent Darryl Harwood reported. Three-year Belted Galloway steers, 498kg, made $2.91/kg and 500kg White Galloway heifers, $2.98/kg. Two-year steers lifted with the top end of beef-cross able to reach $3.19-$3.22/kg. The best of the yearling steers consisted of Hereford-Friesian and Charolais-cross which traded at $3.40-$3.49/kg and heifers $2.22/kg to $2.32/kg. Weaner Hereford-Friesian steers and bulls, 170-179kg, fetched $500-$580 and heifers $420$430. Top feeder bull calves reached $190-$305 though the balance was mostly $35-$75.

CANTERBURY Canterbury Park prime cattle and all sheep • Prime traditional and exotic steers, 530-730kg, reached $3.39$3.49/kg • Prime beef-cross steers, 510-570kg, were frequently $3.11-$3.21/ kg • New season lambs fetched $118-$120 • Corriedale ewe lambs fetched $119-$136 New season lambs made their first solo appearance at CANTERBURY PARK last Tuesday. This was a first nationwide and provided a solid foundation for the coming year. The biggest section of the day was the prime lambs where very heavy pens fetched $244-$311 and heavy and very good pens sold in the $186-$240 range. Heavy ewes sold to $200-$290 followed by good and very good pens at $134-$197. Four Simmental-cross, 495-545kg, claimed the top spot amongst the prime heifers at $3.37-$3.39/kg. Several other high-yielding pens in the 490-570kg range from a variety of breeds earned $3.24-$3.34/kg. Otherwise, most in the 400-480kg range sold to a level of $3.01/kg to $3.19/kg. Read more in your LivestockEye. Coalgate cattle and sheep • Prime Angus steers, 506-531kg, made $3.35-$3.37/kg • Prime Simmental-cross heifers, 525kg, fetched $3.36/kg • Yearling Angus steers, 302kg, traded at $3.02/kg • Halfbred store lambs earned $147-$150 while medium pens managed $112-$134 • 23 Wiltshire ewes with 33 lambs made $135 all counted A further 2800 prime lambs came off the trucks at COALGATE last Thursday. While buyers didn’t have the same urgency as seen at the previous sale, they still pushed the best pen to $350. Most of the offering sold for $180$237 but a few better pens manged $241-$324. A small remainder mostly made $158-$179. The top line of ewes made $336 while heavy and very heavy traded at $220-$320 and the balance, $165-$216. The bulk of the cattle action

was in the prime pens where high-yielding steers and heifers over 525kg typically realised prices of $3.16/kg to $3.34/kg. Read more in your LivestockEye.

SOUTH-CANTERBURY Temuka prime and boner cattle; all sheep • High yielding steers, 530kg plus, firmed to $3.20-$3.35/kg • Traditional heifers averaged 500kg and $3.15/kg, and beef-dairy 485kg and $3.12/kg • Good mixed-sex lambs firmed to $154-$171 • Medium mixed-sex lambs varied from $120 to $142 • Halfbred mixed-sex ranged from $142 to $189 and one line of ewe lambs made $155 Seasonably high volumes of prime and boner cattle continued at TEMUKA last Monday and a varied market ensued. Very few prime steers and heifers fell below $3.00/ kg though the boner cow market eased as volume increased to 240. Better types at 460kg plus reached $2.12-$2.24/kg though lesser lines mainly traded at $1.90-$2.05/kg. Store lambs made up most of the 4000 head sheep yarding, and a variety of type led to a wide range of prices. Merino proved a harder sell and mixed-sex returned $92-$141 and wethers, $100-$139. Prime lambs firmed to $160-$268 while ewes held as most traded at $140-$274. The top end reached $302-$308. Young mixed-age ewes with lambs-at-foot achieved $134 all counted and older ewes with higher lamb tallies, $110-$119. Read more in your LivestockEye. Temuka store cattle • Two-year Charolais-Hereford steers, 341kg, earned $3.29/kg • Two-year Angus-Friesian and Hereford-Friesian steers, 432502kg, managed $3.11-$3.13/kg • Two-year Devon-Hereford, Devon-Shorthorn and Red Devon bulls, 249-358kg, mostly fetched $2.69/kg to $2.99/kg There was a slightly smaller yarding of store cattle at TEMUKA last Thursday. Most of the offering were dairy-beef types although they were joined by a sizable contingent of 2-year Red Devon and Devon-cross bulls from Pitt Island. A level of $2.79/kg to $2.98/kg was most common for pens of 2-year Speckle Park and HerefordFriesian steers in the 300-400kg range. Close to half of the heifers were Charolais-Friesian, 327-377kg, that earned $2.84/kg to $2.96/kg. Some 179kg Belgian Blue-cross topped the yearling steers at $3.01/kg, a price matched by the best 229kg Angus heifers. The balance sold according to weight and quality across a wide range with the better end generally $2.76/kg to $2.88/kg and half the offering $2.40/ kg to $2.67/kg. Read more in your LivestockEye.

Lorneville cattle and sheep • Boner cows earned $1.60/kg to $1.80/kg • Two-year Hereford-cross heifers, 374kg, returned $2.93/kg • Heavy prime ewes firmed to $200-$236 with medium at $168$190 and light $136-$148 • Local trade lambs fetched $80-$108 • Top store lambs traded at $130-$140, medium $115-$125 and light $100-$105 Prime cattle sold on a sound market at LORNEVILLE last Tuesday. Prime steers above 550kg realised $3.00-$3.06/kg, and heifers above 480kg, $3.00/kg. Two-year Angus steers, 252kg, made $2.95/kg and 375-425kg Hereford-cross, $2.85-$2.90/kg. Heavy prime lambs lifted to $194-$240 with medium reached $162-$186 and light $144-$160. Good ewes with lambs-at-foot achieved $120-$128 and the next cut, $100-$110.

Feeder calves Last Monday at MANFEILD PARK Friesian bulls were out of favour as the season comes to an end and they met little buyer interest to be priced at $50. Good beefcross bulls largely made $70-$120 regardless of breed and medium lines, $50-$70. A few Simmental-cross heifers attracted the most attention and fetched $150$160. Calf throughput lowered to 475 head between the two sales at FRANKTON last week. Friesian bulls softened with good types back to $100-$130 and small to medium, $15-$90. Top Hereford-Friesian held at $210-$230 though the balance of good bulls traded at $160-$200. Small to medium managed $20-$145. A handful of Simmental-cross bulls were well-sought after at PGG Wrightson’s sale and sold for $170-$190. Angus-cross bulls improved with the top end up to $70$140 and heifers went one better at the New Zealand Farmers Livestock sale at $70-$150. Hereford-Friesian heifers held with good calves at $90-$130 and small to medium, $25-$85. Just 240 calves were penned at TIRAU last Tuesday. Good Hereford-Friesian bulls softened to $120-$180 with medium at $60-$110. Good Belgian Blue-cross bulls managed $160 while medium had to settle for $40. Good Hereford-Friesian heifers realised $80-$140 and medium, $30-$75. Red HerefordFriesian bulls and heifers earned $30-$90 and Anguscross, $40-$70. Around 250 calves passed through the REPOROA yards last Thursday. Hereford-Friesian were the main type offered and the best bulls achieved $220$237 with a few medium pens $70-$160. The top heifers reached $75-$135 and lighter pens, $40-$60.

Where livestock market insights begin LivestockEye • • • •

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Markets

48 FARMERS WEEKLY – farmersweekly.co.nz – September 27, 2021 NI PRIME

NI LAMB

SI LAMB

($/KG)

6.35

9.45

9.35

YEARLING TRADITIONAL STEERS, 290KG, AT STORTFORD LODGE

high $118-$120 small entry of new lights Aseason lambs at

($/KG)

3.74

Canterbury Park

Prices soar at Coalgate Annette Scott annette.scott@globalhq.co.nz

We had 2800 prime lambs come off the trucks; I guess as vendors were out to catch the high returns. Ed Marfell Hazlett Livestock seen before, let’s take it and enjoy it,” he said. “With prices where they are at now, we could likely be looking around $8 at the height of the season and that could be another record to look forward to in the lamb schedule.” Bigger yardings are expected to continue over the next few weeks. “The reality is people with lambs on board now need to be getting them in as once they cut, they’ve lost $100,” he said.

Friesian bulls are a hot commodity FOUR years ago, M bovis shook up our beef and dairy-beef industry. It had a significant impact on the number of dairy and dairy-beef calves reared as herds had to be killed, and other young stock also suffered the same fate. The calf rearing industry was changed forever it seems and four years on the repercussions are still being seen in the lack of two-year Friesian bulls available, though that is just the tip of the iceberg. A shortage of calves reared is really starting to hit home now and a very low supply of twoyear Friesian bulls is causing ructions in the marketplace. Couple that with drought forcing some to be killed at lower weights and we have reached a situation where Friesian bulls are a hot commodity, for which there is no shortterm fix. Currently, North and South Island schedule prices are $6.20-$6.30/kgCW and $5.85-$6.00/ kgCW respectively. The flow-on effect of those strong prices and low supply has meant that at auction Friesian bulls that fall in the popular range of 420-520kg have been trading at $3.25$3.35/kg, though some have gone higher. Any lines that tick the boxes on tally size, lack of horns and condition, for example, are subjected to bidding from several different corners. On top of those farmers buying bulls to finish, an extra layer of demand is added from dairy farmers looking for service bulls, which mainly adds more competition to the heavier-end bulls. Looking back at AgriHQ historical data for September, this year’s average two-year Friesian bull price is 76c/kg up on 10 years ago, 27c/ kg on the five-year average and 43c/kg on last year’s, which was relative to much lower schedule of $5.15/kgCW in the South Island and $5.60/kgCW in the North Island. In the short term, auction prices are expected to at least hold at the current record levels, if not continue to improve, especially as more regions hit maximum spring grass growth. And if buyers want to stay in the market, they may need to be prepared to do battle with flexible budgets to secure what they need. suz.bremner@globalhq.co.nz

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ED VITAM AS

After all your hard work, watching calves stand still while they adjust oﬀ meal must be frustrating, and it’s not good for their development either.

Meanwhile, the new season’s lambs made their first nationwide appearance at Canterbury Park last Tuesday. At 27kg and achieving $120, these provided a solid foundation for the new season. Prime lambs generally continued to have plenty of size and weight to them across the Canterbury Park and Temuka sales, with buyers remaining extremely competitive and prices firming above the recent high levels. The AgriHQ South Island Livestock Insight suggests procurement pressure will continue to push the lamb indicator higher yet, but the peak is near with pricing typically plateauing during October. While there will be the normal seasonal downslide towards the end of the year, indicators point to a schedule that will remain well above normal into the new year, given the current high prices. Farm gate prices for lamb are now over $2/kg ahead of this time last year.

Because, she’s worth it

Yearling beef-dairy steers, 250kg average, at PGG Frankton sale

ACROSS THE RAILS SUZ BREMNER

ALL GO: Excitement was more subdued at the Coalgate yards this week, but still the hammer went down on these ram lambs at $299.

I NC R E

N AIR of excitement over soaring prices this past couple of weeks has vendors flocking to the Coalgate sale yards. Prime lamb values fetching up to $362, approaching $12 a kilogram carcase weight, are indicative of the wider market prices for top prime lambs. While an exceptional line of ram lambs, it does need to be noted this was an exceptional price rather than a benchmark with the average top-end prices generally at $220-$240, up $10 on early spring sales. As lamb supply dwindles, schedule prices continue to improve, holding well above $9/kg in a demand-versus-supply situation. Schedules are hovering around $9.30$9.40/kg, with at least one processor up to $9.55 this week. Hazlett Livestock manager Ed Marfell says the offering at Coalgate was up following the previous week’s jump in prices. “We had 2800 prime lambs come off the trucks; I guess as vendors were out to catch the high returns,” Marfell said. “It is also what we call the cut, when lambs need to get to market before cutting their teeth.” He says it was a big sale, a good buying bench and everyone got their share at Thursday’s sale, with return buyers pushing the bidding. The top price, a pen of Poll Dorset ram lambs, hit $350. “It’s a bit down on the previous week but still right up there for prime lambs, though I suspect these have sold as doing a deed lambs,” he said. A line of Corriedale stud cull ram lambs sold at $299, with several mixedsex prime lamb lines selling from $210$240 and the bulk of the yarding selling in a range of $180-$237. “The average for the whole line up of prime lambs was over $200 – it’s where it’s at and we need to be a little bit excited, $9 plus schedules have not been

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