Farmers Weekly NZ July 29 2019

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Vol 18 No 29, July 29, 2019

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Lewis slams farm levies $3.95

Incl GST

Small gains mount up Colin Williscroft colin.williscroft@globalhq.co.nz

T

AKING small but simple steps on farms can help cut greenhouse gas emissions without biting too deeply into the bottom line, Tirau farmer Adrian Ball says.

With Parliament’s Environment Select Committee hearing views on the viability and fairness of agricultural greenhouse gas reduction targets in the Zero Carbon Bill and debate building on how best to move towards onfarm emission charging, what’s been missed is the work already done by farmers.

However, Ball and others are making incremental changes to reduce their emissions while keeping their eye on the bottom line.

Ball and wife Pauline, who were recently named national ambassadors for sustainable farming and growing and won the Gordon Stephenson Trophy, awarded as part of the Ballance Farm Environment Awards, have their eye on a long-term sustainable future.

The couple, who run a dairy and beef operation, have a lowinput, light-footprint focus with a business tagline of creating value inside the farmgate.

“It’s a lot of little things really,” Ball said of his approach to reducing emissions, adding it’s important to know where those emissions are coming from before trying to reduce them.

Part of that is reducing, as much as possible, the amount of offfarm feed needed.

“The key is trying to produce every bit of supplementary feed ourselves. That controls the intensity of what you do but it also reduces the risk.”

A result has been a move away from palm kernel, with more reliance on fodder crops like legumes, lucerne and maize silage grown on-farm.

There has also been a big focus on de-intensifying the farming operation, with cow numbers dropping from 4.2/ha to 2.8/ha.

At the same time the farm’s greenhouse gas emissions have almost halved.

Nitrous oxide emissions can be connected to nitrogen losses so that was another area addressed.

Ball’s approach includes considering whether fertiliser can be used more efficiently. As part of that every paddock is soil tested while better use of data has helped him decide whether it is better used on small, strategic locations.

Improving the farm’s sustainability is a work in progress and every part of the operation is considered.

“We found that some of the things we were doing, there was not really much economic benefit but they had a big impact on the environment so we stopped them.”

South Taranaki farmer Damian Roper is another who has adopted the approach of taking multiple small steps to help reduce his greenhouse gas emissions.

Roper, who earlier this year picked up the John Wilson Trophy, the Fonterra Responsible Dairying Award, farms 150ha near Patea with his wife Jane.

They’ve cut cow numbers

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GREEN: Radical changes are not needed for farmers to start cutting gas emissions, Taranaki farmer Damian Roper says.

from a peak of about 510 to now milk about 425 but in that time production per cow has gone up almost 30%.

One of the keys to that is cows are being fed better and their in-calf rate has also improved, which means fewer replacements are needed. It’s also resulted in improved animal health, reducing another cost.

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One of the keys is looking at how their peers farm and making sure everything is geared to ensuring it is as efficient as possible.

“We’ve said all along it’s not making radical changes but that the small things mount up to make the big difference.

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The couple focus on breeding and keeping stock that are the most efficient feed converters.

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NEWS

WEATHER OVERVIEW New Zealand is still stuck between weather systems but this week gets a little more interesting as a low develops and likely crosses the country. The large high out to New Zealand’s east remains in place and is still encouraging a sub-tropical flow in some parts of the country for Monday. However by Tuesday winds tilt more westerly and around Wednesday and Thursday this low moves in - mainly for the North Island - with a colder southerly change behind it. This will see snow along the Southern Alps and perhaps a few isolated flurries to lower levels (300 or 400m - but won’t be much nor likely to settle). High pressure is likely arriving this weekend and lingering through much of next week.

4 There’s still fat on the lamb Farmers should enjoy strong sheep meat prices well into next season according to Rabobank.

Newsmaker ������������������������������������������������������14 New Thinking ��������������������������������������������������15

Pasture Growth Index Above normal Near normal Below normal

7-DAY TRENDS

Rain

Wind

Rain this week is a bit patchy and hit and miss but latest data supports the bulk of the rain to be on the West Coast, then potentially the eastern side of the North Island. Dry weather returns nationwide by the weekend.

Opinion ������������������������������������������������������������16

ON FARM STORY

Temperature Warmer than average for most over Monday / Tuesday but colder air comes back Wednesday, Thursday, Friday. Because it’s so much warmer than average this will reset many to normal, but some will drop below average especially at nights later this week.

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NZX PASTURE GROWTH INDEX – Next 15 days

Warm sub-tropical northerly quarter winds for Monday turn more westerly for Tuesday, then colder southerly quarter we go into Wednesday, Thursday and Friday. Winds become lighter this weekend (and likely next week too) due to high pressure moving back in.

Highlights/ Extremes This week kicks off mild. Mid to late week it gets colder due to southerly quarter winds. Some heavy snow on the Southern Alps. A low crosses the North Island mid week with some rain. High pressure returns by the weekend.

14-DAY OUTLOOK

Soil moisture levels are great across NZ right now and coupled with a dry, mild, start to the week we will likely be seeing a rare mid-winter bump in pasture growth. Basically every region is where they should be and with a lack of frosts in both islands this bodes well for some midwinter pasture growth. However, a colder snap does impact the lower South Island mid to late week. A high this weekend and next week may bring frosts back.

SOIL MOISTURE INDEX – 26/07/2019

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News

FARMERS WEEKLY – farmersweekly.co.nz – July 29, 2019

3

Levies killing farming Annette Scott annette.scott@globalhq.co.nz LEVIES are killing farming as changes to the Biosecurity Act and Nait set to be another nail in the coffin, Federated Farmers dairy chairman Chris Lewis says.

The Government is fixing the Biosecurity Act and the National Animal Identification and Tracing (Nait) Act to ensure they meet future needs, Agriculture and Biosecurity Minister Damien O’Connor said.

Implementing the programme for Mycoplasma bovis exposed the clunkiness of the outdated Biosecurity Act and lessons must be learned from the M bovis experience to formulate a law that’s more flexible and appropriate.

And Nait was brought in with good intent but failed to deliver, O’Connor said.

But continuing to lumber farmers with more levies is not the answer, Lewis says.

“Farmers already pay $100 million in levies each year and these proposed changes will mean yet another levy.

“The M bovis levy has been firmed up, roughly $240m, a climate change levy will cost farmers $50m per year and a

new biosecurity levy is being proposed. We also pay a Nait levy.”

Primary producers pay 32 different levies.

“The amount of levies we all cough up does sneak up.

“You pay them almost subconsciously without questioning the value as often as we should.

“In the last 10 years farmers have paid close to $1 billion – good value?

You pay them almost subconsciously without questioning the value as often as we should.

Chris Lewis Federated Farmers “What monumental shift in agriculture or value has this changed?” Lewis asked.

“I’m a supporter of levy bodies but that shouldn’t stop us questioning the value or direction of them.

“We need to ask the hard

TRACKER: Keeping a handle on all the levies he pays is a big job for Federated Farmers dairy chairman Chris Lewis.

questions in what value are we getting.”

The M bovis levy will cost Lewis about $12,000 a year. On top of that he paid $17,000 in DairyNZ levies and levies to Beef + Lamb, the Foundation for Arable Research and to Nait.

“And there’s more – that’s just off the top of my head.”

He calculates DairyNZ takes in $66.2m a year, B+LNZ $24.4m and FAR $4.25m.

“That’s $94.9m with just those three.

“Farmers’ money is limited and must be used wisely.”

He slammed proposed changes to Nait that will cost farmers.

“It seems farmers always get the blame here but the Government needs to take more control and lessen the influence on industry bodies.

“And when they do these things and announce changes then present the why to farmers – why should always be the convincing

factor but we just cop the cost and they always forget the why.”

Lewis doubts the powers that be actually realise how many different systems farmers have to work with.

“There’s over 30 different dairy databases in New Zealand that we could potentially register our cows on.

“At the end of the day there should be just one and farmers should own the information.

“If the Government wants this information for Nait the people in control should make it happen,” Lewis said.

“Yes, farmers take responsibility, farmers generally want to be law-abiding but we need laws and regulation and systems in place that make it reasonable and practical to achieve compliance.”

DairyNZ is broadly supportive of the renewed focus on improving biosecurity but it is concerned about proposals for

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Nait data to be owned by the Crown.

“The initial Nait review did not include the Crown taking ownership of Nait data, which is farmer data, and we feel that process would need to be carefully managed,” Lewis said.

“Ownership of farmer data is something we want to be involved in so farmers’ concerns are fully addressed,” DairyNZ chief executive Tim Mackle said.

B+LNZ supports the Biosecurity Act review though it urges care be taken over proposed changes to farmers’ data in the Nait scheme.

“Any changes to the ownership and use of farmer data in Nait will need to be very carefully worked through and we look forward to the Government working closely with farmers to ensure these issues are addressed during the select committee process,” B+LNZ policy and advocacy general manager Dave Harrison said.

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 29, 2019

There’s still fat on the lamb FARMERS should enjoy strong sheep meat prices well into next season according to Rabobank.

Its animal proteins analyst Blake Holgate said the strong market fundamentals experienced this season had resulted in healthy returns for sheep farmers over recent months and are set to persist for at least the rest of 2019.

The outlook for sheep meat pricing is very positive.

“We expect to see pricing levels out to the end of the season in October at least as high as the mid

$8 mark per kilo we saw last year.

And there could even be some upside potential on top of this.

“This positive sentiment is anticipated to continue into the new season, underpinning ongoing strong pricing, with exact pricing levels to be largely determined by global supply and the degree of local, shortterm procurement pressure driven by the flow of stock to the processors.”

Sheep meat supply from New Zealand and Australia, the

Kiwi meat exports to Europe falling THE seasonal decline in fat lamb prices in Britain is being moderated by increased exports to the European Union as rival supplies from the southern hemisphere fall away.

Exports of British sheep meat to Europe in May were up by almost a third on the five-year average, the Agriculture and Horticulture Development Board reported and trends suggest demand will continue to improve.

According to Her Majesty’s Revenue and Customs data, exports totalled 7600 tonnes during the month with the largest volume at 2700t going to France.

However, the biggest increase in trade was with Germany, which doubled shipments to 2000t, board analyst Rebecca Oborne said.

The increase in exports likely reflected a global market with low lamb availability while prices in both New Zealand and Australia continue to be high.

“NZ is historically the largest

supplier to Germany but NZ shipments have been down in volume this year,” she said.

Customs data shows NZ shipments to the EU-28 were down more than 12,000t in the first five months of 2019.

Growing global demand and falling production mean there is less meat available for the EU market, which has then influenced British exports and imports, Oborne said.

While British exports have been on the rise, imports have continued to decline, following the long-term trend.

Total imports are down 26% on the five-year average, to just 6200t.

There were some small rises in shipments from other EU nations but they were not enough to offset the lack of NZ product.

Shipments from NZ are down well over a third, reflecting the diminishing price competitiveness of NZ product in the EU and the declining availability of product.

UK Farmers Weekly

key exporters to international markets, is expected to remain tight.

“Global supply of sheep meat is likely to remain tight in the next 12 months with limited capacity for NZ to lift domestic production given where ewe numbers are at,” he said.

“Similarly, our major export competitor Australia is unable to lift production due to drought conditions, which have driven capital stock levels of sheep to among the lowest levels seen in 100 years.”

Global lamb markets continue to perform well with demand and in-market pricing for key cuts solid.

“Over the next 12 months we expect to see global demand for sheep meat remain strong with African swine fever predicted to reduce China’s domestic protein availability during this period.

“This will support strong Chinese demand for a range of lamb products and particularly mutton,” he said.

“In addition, United States’ demand for sheep meat should remain firm off the back of a prolonged period of US economic expansion, which has led to increased rates of red meat consumption and more disposable income to spend on expensive products like red meat.”

A weaker NZ dollar is another factor that will play into the hands of sheep meat producers.

But Holgate warns of a number of downside risks could adversely affect prices should one or more eventuate.

“Increasing concerns about a slowing global economy and, in particular, the risk of significant slowdowns in either or both of the US and Chinese economies could have a significantly negative impact on pricing.

“There’s also a risk the speculated demand increase for animal protein stemming from

GOOD OUTLOOK: Tight supply and hungry markets bode well for New Zealand sheep meat returns, Rabobank animal proteins analyst Blake Holgate says.

African swine fever isn’t as high as estimated.

“Getting up-to-date, accurate data on the scale is challenging and there is a risk of overestimating the protein gap.

“Brexit is a further downside risk as it’s still unclear how this will play out and affect demand for NZ lamb over the coming 12 months,” he said.

Over the next 12 months we expect to see global demand for sheep meat remain strong.

Blake Holgate Rabobank

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News

FARMERS WEEKLY – farmersweekly.co.nz – July 29, 2019

Milk study evidence is persuasive Hugh Stringleman hugh.stringleman@globalhq.co.nz THE dairy industry should be moving towards A2 beta-casein protein cows across the national herd, former child health researcher Professor Bob Elliott says.

“Why go on making A1 milk when A2 dairy products are going to be so dominant,” he said.

“We are very well placed to convert with a well-run industry.

New Zealand should seize the opportunity.”

The combination of grassfed and A2 milk production is a potentially powerful marketing position for NZ dairying, giving added value for farmers.

He was commenting on the results from the latest

comparative trial in China into A2 versus A1 milk consumption by preschoolers.

The trial had a strong design and the results are believable and should not be ignored.

“It shows stomach upsets from A1 and a dulling of intelligence, which is very significant.

“Problems in drinking milk for Chinese people were put down to lactose intolerance but this trial suggests effects that may not be lactose intolerance.”

The potential for selling A2 milk and dairy products to China is therefore huge, as its consumers seek more and more dairy foods for both infants and elderly, Elliott suggests.

The trial results from preschoolers are similar to those obtained by Chinese researchers

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GRAB IT: New Zealand farmers have a chance to boost export income by combining their grass-fed story with A2 milk, Professor Bob Elliott says.

Why go on making A1 milk when A2 dairy products are going to be so dominant.

Professor Bob Elliott Child health expert in the past from a sample of adults.

A previous European study suggested adverse brain function in infants who consumed A1 milk

but the trial structure was not as strong.

Elliott said the funding of these population studies by the A2 Company has to be recognised but is not alarming.

“All the drugs you use today have been through trials funded by the companies that developed them,” he said.

He does not have any A2 company shares and is not paid by the company.

Elliott is a former professor of child health at Auckland University and was the first scientist to delve into A2 beta-

casein in milk and its implications for Type 1 diabetes and heart disease.

A statement from A2 Milk said it welcomes the publication in the Journal of Paediatric Gastroenterology and Nutrition of the results from the clinical study of 80 Chinese children.

“We were pleased to learn the study supports previous digestive and cognitive findings from adult clinical research.”

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Fonterra builds its A2 supply in Waikato Hugh Stringleman hugh.stringleman@globalhq.co.nz FONTERRA has recruited 60 Waikato farms that produce A2 milk for differentiated dairy ingredients at its Hautapu plant, Farm Source director Richard Allen says.

It was looking for up to 100 A2 supply herds in the first season of a contract with the A2 Company but larger properties among the

initial commitments can more readily move cows and specialise.

A2 Company is paying about 17c/kg premium, split into a retainer and utilisation components, Allen said.

A 5c/kg retainer applies to all milk production from the contracted herds, plus 80% of 15c in the first year for utilisation.

The retainer is recognition of the increased costs of production and management.

The 80% rate for the utilisation component reflects the anticipated build-up of markets for A2 ingredients, such as milk powder for infant formulas, Allen said.

Meanwhile, the domestic fresh milk market for Anchor A2 is being supplied by a Fonterraowned farm to the Fonterra Brands Palmerston North site, with a back-up for winter supply from another nearby herd.

Anchor A2 varieties are now available in about 80% of all major supermarkets throughout the country and 10% of dairies and petrol stations in cities.

By way of comment on the A2 versus A1 science, Fonterra said consumer choice is the paramount principle.

“Smart companies change to meet consumer demands – 20 years ago milk came in two varieties, full fat and low fat.

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“A2 has joined other options to meet consumers’ needs and tastes – lactose-free, organic and higher-protein.”

Allen said there is a pipeline of farmers moving towards A2 supply and he is confident Fonterra can meet the volumes required in its agreement with A2 Milk.

Other collection regions around processing plants will be opened in future.

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News

FARMERS WEEKLY – farmersweekly.co.nz – July 29, 2019

7

Carbon Bill hearings begin A METHANE reduction target of 47% is unachievable and setting farmers up to fail, DairyNZ chief executive Dr Tim Mackle says.

Appearing before the Environment Select Committee last week Mackle said the dairy sector is committed to playing its part in New Zealand’s transition to a low-emissions economy.

However, farmers deserve to be treated fairly and on-farm technology needed to meet the 47% target – the top end of methane reduction target of 24% to 47% by 2050 specified in the Zero Carbon Bill – is not yet available.

Mackle called for pragmatic and prudent policies that support farmers playing their part on climate change.

“Farmers want to do what is right.

“They are ready to go on this journey but they need a fair target that they can buy into.

“A 47% methane reduction target is simply setting farmers up to fail if the tools are not available,” Mackle said.

“DairyNZ proposes that the

2050 methane reduction target be set at up to 24% and regularly reviewed against robust criteria.”

It’s a view supported by Fonterra and its Shareholders’ Council, Miraka, Synlait and Tatua, he said.

“This will be a real challenge for our sector but we are up for it.

“While there are things we can do now on-farm, much of the reduction in emissions will be reliant on technological advances in feed, breeding or other interventions.

“A lot is being asked of our farmers across a variety of issues such as water quality and biosecurity.

“If a methane target is set based on a global reduction scenario rather than what is sensible at home then they will simply disengage.

“This isn’t an academic exercise.

“There will be real implications and real costs for real people.

“Most farmers are small business owners doing their best,” Mackle said.

DairyNZ estimates with a methane cut of up to 50%, dairy farmers’ profit could reduce by

33% to 42% across the 2030-50 period.

“This is a substantial loss of income and is more than 10 times higher than the cost of $2500 per farm estimated in the Government’s analysis.

“The impact for rural communities and the wider economy could be huge.”

Mackle said New Zealand is responsible for less than 0.2% of global emissions and dairy farmers are among the most emissions efficient producers in the world.

“While there may well be some benefits to leading the world on climate policy, this could constrain our ability to lead the world in other areas – most notably the efficient production of high-quality, low-emissions milk.

“Our biggest contribution to global agricultural emissions reductions will be to show what is possible both on-farm and with new technologies once they become available.

“This highlights the importance of continued investment in scientific research and

development that will help us reduce agricultural emissions.

“DairyNZ knows how important it is for us to move on climate change but we also know the importance of moving at a pace that doesn’t leave farmers, families and communities behind.”

Horticulture NZ chief executive Mike Chapman told the committee the Bill needs to be amended to include all the Paris Agreement, including safeguarding food production.

“The Bill just focuses on one part of the agreement, climate change,” he said.

“The full agreement makes it quite clear that countries need to find ways to adapt to climate change in a manner that does not threaten food production.

“The NZ Bill makes no mention of food production. To the horticulture industry this is a significant oversight given this legislation will be fundamental to NZ’s future.

NZ needs to be able to grow all the fresh and healthy food it needs, he said.

“This will be in a world where it

COMPROMISE: Leading the world in policy could constrain farmers’ ability to lead the world in the efficient production of high-quality, low-emissions milk, DairyNZ chief executive Dr Tim Mackle says.

is increasingly difficult to import fresh food. The impact of climate change, isolationism and trade tariffs will be the key issues.”

Others to speak to their submissions last week were Forest and Bird chief executive Kevin Hague and GNS Science.

Warning of green desert of trees Tim Fulton timfulton050@gmail.com INCENTIVES for tree-planting credit schemes could create a great, green desert of radiata pine and trample native bush, officials have heard.

The Government proposes taxing farm livestock emissions and fertiliser emissions from 2025.

A Primary Industries Ministry public consultation meeting in Christchurch debated the policy linked to the Emissions Trading Scheme (ETS), a closed, government-managed carbon credit market that’s changing agricultural land use.

Attendees discussed the best way to incentivise farmers to reduce on-farm emissions and whether the pros of pricing emissions outweigh the cons, compared with the price at a processor level.

The Action on Agricultural Emissions roadshow meetings are fronted by MPI and Ministry for the Environment officials.

The meeting considered a chart, Projected Global Temperature Rise, showing the worst-case scenario for a failure to curb greenhouse gas emissions in time. A red ribbon on the graphic billowed to an irreparable 4-6C temperature rise by the end of the 21st century.

Mid Canterbury arable farmer Andrew Luddington, a keen planter of natives at Rakaia, said pricing emissions in the ETS could have unintended consequences if unit prices rise from $25/tonne now to about $100/tonne, as some commentators predict.

“Native bush is going to be destroyed, trampled by the big money men planting radiata pine.

“The last thing we want is a bloody great, green desert of radiata pine.”

MPI regional economic development and partnership manager George Strachan said government policy has to be wellconsidered.

“You don’t have to look far to see the impact of government policy creating unintended consequences.

“The worst thing we can do is rush and get it wrong because we’ll spend the next century undoing it and we don’t have that time.”

The Government proposes two interim options to bring certainty and encourage further action to reduce emissions in the meantime, he said.

One is pricing livestock and

fertiliser emissions at processor level through the ETS. The Government will cover 95% of farmers’ ETS liability and use the money from charges to help farmers cut emissions in readiness for an emissions price at farm level.

A second option is a joint industry-Government agreement and plan to cut on-farm emissions and introduce an emissions price at farm level.

North Canterbury livestock farmer Daniel Maxwell said farmers are world-class when it comes to emissions efficiency.

Strachan said the Government is prepared to cover most of the emissions for agriculture for that very reason.

New Zealand’s livestock emissions have risen 13% since

1990 but the increase would be 40% if not for efficiency gains, he said.

“There is an awful lot to be said for just good farming.”

The Agricultural Greenhouse Gas Research Centre is also leading international efforts to curb farm emissions with methane inhibitors a couple of years away from market.

But a lot more work is needed for the sector to meet emissions targets, Strachan said.

“It’s a good thing that the farmlevel scale (policy) is six years away because there’s a heck of a lot to do if we’re going to deliver this well.”

Retired plant scientist Dick Lucas, a renowned clover guru, called for a renewed focus on nitrogen-fixing legumes.

“If we’re going to be serious about this it’s by not using urea, which has an enormous energy cost to make the stuff.”

Former North Canterbury Federated Farmers president Chris Sundstrum, a longtime mohair grower, wants war on waste plastic, which is ending up at sea and inhibiting a natural carbon sink.

Banks Peninsula farmer Pam Richardson said emissions policy should recognise biodiversity planting as an offset.

The Interim Climate Change Committee recently released its report on reducing agricultural emissions.

The Government aims to pass law based on the report’s recommendations and public feedback by the end of the year.

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 29, 2019

Grower dividends are safe in Zespri upgrade costs Alan Williams alan.williams@globalhq.co.nz A BIG spend on replacing outdated operating systems will not affect existing loyalty payments and dividend policy, Zespri chief executive Don Mathieson has told shareholders.

The company is still working on the cost of the project, covering the whole supply chain, and believes it can be funded over the next 10 years without going to the industry for more money.

It will replace an existing system 20 years old and no longer fit for purpose, he told the annual meeting in Tauranga.

The scale of the investment on top of general business growth will mean an increase in operating costs, especially in years when volumes are lower, but extra needs will be met out of existing funding and future efficiencies.

Grower loyalty payments will be maintained at 25c a tray as will the dividend payout ratio of between 70% and 90% of profit.

Ahead of the meeting Zespri announced two dividends to shareholders including a final dividend of 17c a share for the 201819 year, making a total for the year of 92c, boosted by strong earnings.

An interim dividend of 67c for this year will be paid on the same date, August 16, chairman Bruce Cameron said.

This payment uses most of the cash generated from the April sale of Gold3 licences and will be extra to the interim dividend, usually paid in December.

The interim payment is at the midpoint of the 70% to 90% payout policy and reflects the planned operating model spending, Cameron said.

Zespri’s goal remains to achieve $4.5 billion in sales by 2025, up from just over $3b in the latest year.

“To achieve that we will have to avoid distractions, remain focused on growing value, growing markets, building the brand and delivering the world’s best kiwifruit all 12 months of the year,” he said.

Peters wants US to start talks Nigel Stirling nigel.g.stirling@gmail.com THE dairy industry is expecting the usual backs-tothe-wall opposition from its American counterparts should New Zealand convince the United States to begin freetrade deal negotiations.

A speech from Deputy Prime Minister Winston Peters to a Washington DC think tank this month is being interpreted as the strongest appeal for trade talks with the US since President Donald Trump pulled out of the Trans Pacific Partnership two years ago.

Peters said US exporters have lost market share in Asia and the Pacific as the number of trade deals in the region multiplies and countries increase trade between themselves as a result of lower tariffs.

In the past two decades NZ has made agreements with 20 countries in Asia while the US managed just three.

Consequently, over the past nearly three decades the US’s share of imports in the region has slipped from 17.4% to just 7.4%.

“That means that the US has lost half of its market share over a 28-year period and gives you a sense of the significant scale of lost opportunities for

US exporters and workers,” Peters said.

While it supplied 18% of NZ’s imports in 1990 the US share is now just 8%.

Over the same period China increased its share from 1% to 20%.

A trade deal with NZ would reinforce ties between the two countries and send a signal to the wider region, Peters said.

“It would signal to other countries in the region that the US is open for business and looking to conclude ambitious, high-quality and comprehensive free-trade agreements.”

Asked by a think tank audience member how NZ would deal with the inevitable opposition from US agricultural groups and dairy farmers in particular, Peters said such opposition is part of every trade negotiation.

He just wants to get talks started.

“Once people start talking then you have got a chance maybe of completing the discussion and taking it to finality.”

After pulling the US out of the TPP just days into his presidency Trump said he was open to talking with the remaining 11 member countries individually.

To date none of those

DETERMINED: Deputy Prime Minister Winston Peters is urging the United States to begin trade talks with New Zealand.

countries has got back to the table.

The fear is Trump will instruct US negotiators to squeeze more out of them than they did in TPP and offer less in return.

As it was, the NZ dairy industry was disappointed with the limited quota increases and multi-decade tariff phase-outs the US conceded in the original deal.

Since then the trade war with China has heaped even more financial pressure on American dairy farmers.

US action might pip the Kiwi dollar EXPECTED lower dairy and lumber prices over the months ahead could join interest rates as a weight on the New Zealand dollar, Westpac Bank strategist Imre Speizer says.

Commodity prices still influence the NZ$-US$ cross but less than usual and weaker right now than the influence of interest rate yields.

Since late last year US yields have fallen further but that might be about to change.

He expects the US Fed guidance on interest rates this week might not match the aggressive market expectations of four cuts in total.

In contrast, the Reserve Bank should keep market pricing intact by cutting, possibly

to 1.25% on August 7, and retaining an easing bias.

In his latest outlook Speizer forecasts a push lower to US$0.65 over the next few months on the basis the US$ will rise as markets price in too much easing by the Fed. Interest rate yields have pushed the kiwi to what Westpac believes is an extremely overvalued level

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Fonterra’s director of global stakeholder affairs Simon Tucker said till now both the former National-led and the current Government had been lukewarm about trade talks with the US under Trump.

Other countries remain wary of the US and this creates an opportunity NZ can exploit though it will not be easy.

“It does not mean that we should not try. It just means that we have got to go into this with our eyes open,” Tucker said.

WATCH NOW farmersweekly.co.nz/farmers-voice

against the Aussie dollar but that could continue for a time yet with the kiwi go higher still before eventually retreating.

The dollar is also stretched against the euro but Speizer thinks the RBNZ might ease interest rates by more than the European Central Bank this year and his three-month call for the cross is €0.58.

– Alan Williams

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News

10 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 29, 2019

LIC is ahead on every measure Alan Williams alan.williams@globalhq.co.nz DAIRY genetics group LIC is well ahead on every measure in the latest year and shareholders are getting a big dividend boost.

Of the $19.5 million of after-tax cash earnings in the year ended May 31, $15.6m is being returned to the owners through a 10.98c a share dividend carrying full tax credits.

The full profit was $22.17m after allowing for non-cash gains, a $1.9m revaluation of the bull team and a $1.25m value on the money owed on shares issued to farmers at no cost as part of last year’s restructuring.

Earnings reflected a turnaround in performance and profitability, chairman Murray King said.

The dividend, up from 1.71c a year earlier, is the largest paid since 2013 after the co-operative had some difficult years leading up to the changes.

Last year’s after-tax profit was $9.26m but the bull team revaluation contributed $8.6m of it.

Earnings before interest and tax rose to $30.4m from $13.65m in 2018.

LIC improved in profitability, balance sheet strength, operating

ESSENCE: LIC is the dairy industry’s DNA, chairman Murray King says.

cashflow and revenue, King said.

The business is in great financial shape and as well as delivering a solid dividend can continue its significant investment in research and development and digital transformation and consider opportunities to deliver innovation-led growth.

Most of LIC’s earnings are made in the first half of the year, to November 30, which covers the core genetics and herd testing season. The first-half after-tax

profit was $32.8m; the secondhalf has lower revenues while still incurring the overhead and operating costs.

King described LIC as the DNA of New Zealand’s dairy industry.

“We have to make sure that in the data-driven future of global dairy LIC and our farmers are in a position to be the disruptors not the disrupted.”

Sales from core artificial breeding (AB) are strong and ahead of the previous year. AB

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sales rose to $97.8m from $93m and pretax profit to $66.7m from $62.3m before costs. Farmers had increased their uptake of A2 genetics, with the A2 bull team, brought in during 2018, providing 10% of AB sales in the debut season.

Herd testing had a slight lift in sales but a slight fall in earnings and farm software sales and earnings improved.

International sales of genetics and automation technology were higher, especially in Britain and Ireland.

King said the group’s investment in research and development was $13.6m, equalling 5.5% of revenue, which is well above the primary sector average in NZ. Funding was also received from government agencies for projects aimed at improving the health of the national dairy herd and achieving more sustainable milk production.

LIC also invested more than $800,000 on new measures to protect dairy farmers from Mycoplasma bovis, including a daily testing regime for the bull team and changes to the herdtesting operations.

It absorbed the costs of the work to avoid extra cost increases for customers in the 2018-19 year.

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It also bought a 64ha block in Waikato to increase its biosecurity quarantine facilities.

Total revenue for the year rose to $246.5m from $236.4m a year earlier and operating cashflow rose strongly to $55.16m from $37.83m.

We have to make sure that in the datadriven future of global dairy LIC and our farmers are in a position to be the disruptors not the disrupted.

Murray King LIC There were no transformation programme costs during the year, after a spend of $20.6m previously.

At balance date LIC had assets of $380.7m and an equity ratio of 77%, up from 71%. Borrowings were $4.6m, down from $19.6m.

The directors expect underlying earnings of $21m to $25m this year, assuming no significant climate event, lower milk prices or major M Bovis impacts.

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News

farmersweekly.co.nz – July 29, 2019

11

Blue Sky spend-up needed for future Alan Williams alan.williams@globalhq.co.nz ONLY a small portion of the $11 million capital spending by Blue Sky Meats over the next 18 months will add to better profitability, chairman Scott O’Donnell says.

But if the company does not invest it will not have a business that can continue to produce strong future outcomes, he said in the annual report.

The directors will look at a range of funding options for the required projects to ensure ongoing strength in the balance sheet.

Blue Sky has been sharply improving earnings over the last two years, adding efficiencies and higher-value products to the market.

It repaid its term debt, leaving only seasonal debt on the balance sheet at year-end, with increased stock volumes pushing that to 35% of total assets from 29% a year earlier.

Interest costs were strongly covered 15 times by earnings before interest and tax in the year ended March 31. The ratio of all debt to total assets rose to 54% from 52%.

The Southland sheep meat processor and exporter lifted pretax earnings by 36% to $5.11m and the after-tax figure by the same ratio to $3.66m. Of the 31.7c in earnings a share, up from 23.3c a year earlier, a 5c a share dividend will be paid on August 15 and the balance will be reinvested in the business.

Blue Sky is reducing reliance on low-value commodity items, now developing more chilled and added-value products it plans to lead over the next two to three years to its own branded products.

It had a 25% lift in animal throughput to 742,000 head of stock, increasing its market share, and record turnover of $140m in its best trading for at least eight years.

The profit increase came despite paying $26m more for stock without significant in-market price increases. The gains came from greater scale, greater efficiencies, better yields and better product mix.

Blue Sky has already started its upgrade projects but the higher stock throughput pushed Morton Main processing to its seasonal operating limits, O’Donnell said.

Major spending is required on wastewater and effluent systems, electricity supply and cold store infrastructure.

The value-add future for Blue Sky is bright as a niche operator in the red meat sector, he said.

“We are only at the beginning of a journey that will deliver a few missed turns and deadends but the sooner we start the

“It is not unmanly or uncool to think about your health and safety on farm – it could save a precious life.”

KAREN WILLIAMS Farmer and Federated Farmers Arable Industry Group Chairperson

LOOKING GOOD: The value-add future for Blue Sky Meats as a niche operator is bright, chairman Scott O’Donnell says.

IMPROVING: While challenges remain there is a growing sense of confidence in Blue Sky Meats, chief executive Todd Grave says.

sooner we get the outcomes we all require.”

As well as infrastructure, attracting skilled labour is another constraint. The firm has some of the most productive operators in the red meat industry but a general shortage of labour and industry absenteeism continues to grow and make the issue worse.

Chief executive Todd Grave, who started the strategic reset two years ago, said in his report challenges remain but there is a growing sense of confidence among farmer-suppliers, employees and customers that Blue Sky is on the right track.

Financial features of the year included: • Additional 8% reduction in unit operating costs on top of a 10% savings in 2018.

• Gross margin improving to 11% and pretax profit margin to 4%, allowing an acceptable return on equity with 17% on opening equity of $21.59m, up from 14% on the $18.8m figure a year earlier.

• The strategic plan added $1.2m to operating earnings, added to the $6.8m gain in its first year.

• Yield management added $1.1m to Ebitda, following last year’s $2.8m contribution.

• The chilled meat business delivered $600,000 to Ebitda, adding to the first year’s $400,000.

Since the decision to increase chilled lamb levels, chilled sales have risen to 8% of total sales, from just 1%.

Chilled sales for Christmas delivery rose 170% on a year earlier and annual export volumes rose 30% while chilled margins rose 50%.

“With higher prices than frozen, no storage costs and a faster customer payment cycle,

chilled is a key driver of our performance improvements,” Grave said.

Higher-value frozen cuts are also being sold.

The processing workers processed 13% more carcases than the previous three-year average, resulting in longer, more intensive working weeks and an extended season.

Blue Sky is also building its co-products business.

Rendering revenues and margins improved.

The world market for skins remains depressed but the division is profitable.

The group’s mothballed beef processing plant at Gore had been restarted to produce pet food ingredients.

Grave said the underlying fundamentals of the group’s business model have started to improve and the operational gains are becoming embedded in daily processes.

“We must continue to work relentlessly on transforming every aspect of the business to become more consumeroriented, generating more profitable and consistent performance.”

The higher stock procurement costs brought about an operating cash outflow of $1.87m for the year compared to $5.2m positive cashflow a year earlier.

Total payments to suppliers and employees rose to $140.6m from $100.5m while receipts from customers rose to $138.9m from $107.1m.

Blue Sky is changing its balance date to June 30 from this year, a peak production period. The new date is after the processing season ends and allows a better review of whole season performance, O’Donnell said.

worksafe.govt.nz

News

12 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 29, 2019

Methane: we’re facing it with you In the second article of four about climate change and agriculture in New Zealand Dr Harry Clark of the New Zealand Agricultural Greenhouse Gas Research Centre looks at the science and issues surrounding the most contentious and misunderstood greenhouse gas, methane.

FARMERS are probably well and truly fed up with opinions being expressed about their contribution and response to climate change – and understandably so.

There’s been much fingerpointing yet no sector can singlehandedly shoulder the blame for climate change just as no sector can single-handedly solve the problem.

Many commentators overlook the fact a lot of farmers are already doing great work trying to reduce their on-farm greenhouse gas emissions.

Climate change is a highly complex and emotionally charged issue and misunderstandings and misinformation have inevitably found their way into the debate

LONG-LASTING: Methane from ruminant animals might last only 12 years but its effects can last for centuries.

about how we deal with it as a nation.

In this article I’ll unpack some of the science and explore some of the issues around one of New Zealand’s most contentious climate change topics: enteric methane.

Methane matters in climate change.

It is 28-34 times more effective at trapping heat than carbon dioxide over the first 100 years after an emission occurs.

Methane emissions have increased steadily since preindustrial times.

Concentrations are now more than twice as high as they were in the late 1800s.

Altogether, methane emissions from human activities, known as

anthropogenic emissions, have caused an estimated 40% of the warming since the industrial revolution.

There are several globally significant sources of anthropogenic methane including fossil fuel extraction, landfills, rice production and ruminant livestock such as cows, sheep and goats.

Methane belched by ruminants, known as enteric methane, is

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responsible for close to a third of all global anthropogenic methane emissions.

Methane is less stable and breaks down relatively quickly compared to carbon dioxide.

More than 60% of the methane released today will have disappeared from the atmosphere after 12 years and 98% after 50 years.

By contrast, some of the carbon dioxide released today will still be in the atmosphere in 1000 years.

Despite its short life in the atmosphere, a tonne of methane emitted today will still cause more warming two centuries from now than a tonne of carbon dioxide emitted today because methane is so much more effective at absorbing heat than carbon dioxide. So, the effects on the climate of today’s methane emissions will percolate through the system for many decades after the methane itself has disappeared.

The upside of atmospheric methane’s short lifespan is that any decrease in our emissions will help reduce our overall contribution to global warming relatively quickly.

NZ differs from most other developed countries in that agricultural emissions make up almost half of our anthropogenic greenhouse gas emissions. The Organisation for Economic Co-operation and Development average is about 12%.

Furthermore, enteric methane emissions make up over 70% of our total agricultural emissions.

That has fuelled the vigorous national debate about how much emphasis should be put on reducing methane, in addition to carbon dioxide and other longlived gases like nitrous oxide, when it comes to reducing our overall emissions.

Internationally, there’s no doubt halting global warming requires a large and urgent reduction in carbon dioxide emissions.

Carbon dioxide’s long life means every new emission adds to previous emissions, compounding the warming.

The only way to prevent any further increase in warming is to reduce carbon dioxide emissions to net zero – that is, any remaining emissions have to be matched by removals.

However, that won’t reduce the warming caused by historical emissions of carbon dioxide and there are currently no practical

ways to remove remaining emissions of other gases such as nitrous oxide. Global modelling studies indicate that carbon dioxide emissions might need to fall below net zero if we’re to achieve global temperature goals.

The same studies indicate reductions in methane emissions are also required if we want to have a reasonable chance of limiting warming to the level agreed by the international community. But they don’t need to go to zero.

Methane’s relatively short lifespan means new emissions today to some extent simply replace the breakdown of previous emissions.

So, as long as we keep emissions at a constant level the concentration in the atmosphere stabilises.

However, warming doesn’t level off as soon as concentrations are stable.

That takes centuries to happen.

But it does mean if we reduce methane emissions to a point below current levels we can stop any additional warming, our emissions still have a warming effect, but it is the same in the future as in the past.

But does this mean that for NZ stopping additional warming is the national target we should aim for?

The science is complex and is being used to inform the establishment of national targets for emissions reductions.

However, science is not the only determinant.

Our response as a nation will also be influenced by socioeconomics, the availability of cost-effective technologies, equity issues and the terms of the international agreements NZ has signed.

Science institutions in NZ continue to do extensive research aimed at identifying viable emissions-reduction technologies for farmers.

They’re also working closely with farmers to identify operational steps that can be taken on-farm to reduce or mitigate emissions without compromising profitability.

Many farmers are already making a big effort and in the next issue I’ll look at some of the ideas you might like to consider on your farm.

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Newsmaker

14 FARMERS WEEKLY – farmersweekly.co.nz – July 29, 2019

Townie now award-winning farmer A self-confessed townie who married a farmer, Karen Williams never quite envisaged the path her career would take. She talked to Annette Scott about her journey to top level industry leadership.

T

STEP AWAY: Federated Farmers arable industry leader and Agri Women’s Development Trust Escalator graduate Karen Williams has stepped away from hands-on farming to make time for industry governance.

HE first woman to lead the Federated Farmers’ arable section is a self-confessed townie who married into

farming.

“When I give talks at meetings I often start with my I’m a townie confession. Rural provincial townie, not a city slicker,” arable section chairwoman Karen Williams says.

“My journey to industry leadership has been largely driven by my background in resource management.”

Williams and her husband Mick farm arable, sheep and beef in Wairarapa.

“Before I married a farmer I was writing policy, mainly for local authorities, then when children came along I got more involved with the farm.”

That involvement turned back the wheels on her resource management background when increasing environmental regulations posed new challenges for farmers.

About the same time the couple were involved in the Ballance Farm Environmental Awards, emerging the Wellington regional winners in 2013.

“That kicked off more interest in this space of profitable and sustainable farming. It was a meeting of the minds where my resource management and farming immersed.”

A friend also had a key influence on Williams’ leadership journey.

“My friend Charmaine O’Shea had just done the Agri Women’s Development Escalator

programme and she encouraged me to apply.”

Taking on the challenge Williams successfully applied and completed the programme in 2015.

Escalator is an established leadership and governance programme for women involved in primary industries and rural communities.

It equips them with the tools, confidence and support they need to successfully lead and govern in their chosen fields.

“Escalator has been a game changer for me. It has given me a huge amount of self-belief and enabled me to extend my networks.”

The journey is a personal one and Williams said the learnings and opportunities from Escalator have enabled her to step up her role in primary industries and as a board member for Federated Farmers.

“The growth in my own abilities has had a direct and positive influence in our own farm business and in board and meeting rooms to participate,

challenge and ensure positive outcomes for agriculture.

“A big part of Escalator for me was I wanted to add value to agriculture.

“I could see the challenges coming and through my resource management background I could see a role for me.”

That’s when this little thing called pea weevil took over my life.

Karen Williams Federated Farmers Before Williams structured her path the pea weevil pest raised its ugly head in her region.

A governance group was formed to deal with the disease on behalf of Wairarapa farmers.

Williams was invited to be part of that group.

“That’s when this little thing called pea weevil took over my life.

“I was the only one at the table with skin in the game. It was challenging leadership sitting on a group making very important decisions.

“I supported the move to eradicate and we will eradicate and I am very proud of that.

“It’s been a tough road and we are not there yet with issues still around the payments (to farmers) but we will get there.”

For her efforts Williams was awarded the inaugural Biosecurity Farmer of the Year award in 2017.

In June 2018 she was elected as the first woman to head the Feds arable section and was also appointed to Federated Farmers national board.

Her goal in national leadership is to raise the profile of agriculture in Wellington and raise the arable flag in the primary industries.

“It’s big picture stuff and the next step is not only that we exist but what we do and the primary agenda item for that is to develop strategy to sell that we can be a solution to agriculture’s environmental and nutritional challenges.”

That and the four key environmental challenges ahead – water, biodiversity, climate change and biosecurity – will keep Williams away from hands-on farming for a while yet.

“I have had to step out of my farming role to make this possible and I have a huge shout-out to my husband and family who support me through all this as I couldn’t do it without them.”

With three children aged form 10 to 16 years family life is just busy enough.

“I am not getting as much time with the kids as I’d like but I’m still co-coaching the hockey team.”

Get in now Applications for the 10th anniversary Escalator programme 2020 are now open.

Each year 14 women are selected for the programme that runs from February to November.

Application forms can be downloaded at www.awdt.org.nz They close on September 13.

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THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 29, 2019

15

One farm fix leads start-up to the stars The initial request came from a North Otago dairy farmer looking for a better way to manage his irrigation system. Small Dunedin start-up company Next Farm was charged with finding a resolution. Neal Wallace meets the two-person company aiming to improve water and effluent management.

S

TART-UP businesses are notoriously short of cash and staff but among those frustrations there are some benefits from having to be a master of everything, as Next Farm discovered last year.

Faced with those constraints Next Farm’s managing director Aaron Furrer and brand manager Sammi Stewart had to assemble 500 irrigation management control boxes that were about to go to farms for further testing.

As they methodically assembled each unit they discovered two sets of identically coloured wires, which each had a different function. Potentially, that could create confusion and reliability issues when assembled by a contractor.

Changes were made but such challenges illustrate the trials and

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START-UP: Next Farm brand manager Sammi Stewart, left, and managing director Aaron Furrer.

tribulations for a small start-up company.

Furrer says Next Farm has lofty goals.

“We are shooting for the moon so that we will land in the stars.”

Next year they intend launching their farm sensor effluent and irrigation IT control systems in NZ, Australia, South America and China.

All this stems from fixing a problem for a dairy farmer to manage and control multiple sprinkler heads in a fixed-grid irrigation system.

Fixed-grid systems are permanent, static sprinkler systems usually mounted on posts set out in a grid pattern in a paddock or orchard.

Managing the systems to suit livestock or fruit management, shifting weather patterns and irrigation schedules is difficult because each head has

to be adjusted individually.

“It meant everything has to be individually controlled on the day and time they want it to run and do it to every individual sprinkler.”

For some properties that can mean adjusting several hundred units.

“It’s just an assumption now that they hope they have turned them all off but there is no way of telling.”

Their solution is a cloud-based IT system called Remote Irrigation Mesh, known as RIM. This on-farm network is run from a smartphone that also provides certainty the adjustment has been made correctly.

With a single click irrigation can be started, paused or isolated to a section of the paddock or orchard.

Stewart says the system provides information that allows farmers to meet fertiliser company guidelines, council resource consent obligations and to also work with soil moisture probes and weather stations.

Next Farm has initially targeted fixed-grid systems but is looking at other irrigation methods, except pivots, such as micro sprinklers, drip and sub-surface systems.

“Essentially, if it’s got a valve we can control it,” Stewart says.

This year there will be 3000 units going onto farms in a final test run before a commercial launch at the end of next year.

Stewart says the potential market is significant with 2.8 million hectares of irrigated agriculture and horticulture in NZ and Australia, of which 2% is fixed grid.

Next Farm has also developed

MONITORING KIT: Next Farm units for monitoring effluent and irrigation.

a unit, Efflutrack, for effluent management.

It connects to travelling irrigators and can alert operators of any issues such as a machine not moving and can be turned off and on from a phone.

That allows an operator to make repairs without having to commute to the pump shed to turn it on then return to check it.

Similarly, it can provide proof of placement to adhere to council rules, show effluent has not been applied near waterways or as part of nutrient or fertiliser management.

Both Stewart and Furrer have farming backgrounds and say they are aware of the needs of the sector.

Furrer says farmers do not need more data but a process that manages information and allows farmers to make decisions as they

run their properties.

Importantly, that information must be discernible and understandable for those aged over 55, given the aging population of farmers.

Furrer has previously worked in Silicon Valley where he described money for start-up IT companies as unbelievable compared to the restrained capital available here.

Next Farm has 13 shareholders and has worked with Callaghan Innovation on product development and received some funding grants.

It has been generating income for the last two years and Furrer says new investors are looking at the business, which will help take it to the next stage.

That will create jobs for two or three more staff in the coming year and pay for a contractor to construct the units.

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Opinion

16 FARMERS WEEKLY – farmersweekly.co.nz – July 29, 2019

EDITORIAL Go in to bat for crickets

W

HEN I was young my family had a nickname for me – the garbage disposal. That’s because I would eat almost anything. Growing lads need their food, of course, but my family had to divvy up and hide the biscuits so I wouldn’t eat my sisters’ share. I drank two pints of milk a day. That story’s not unique.

Most teenagers will fuel up at any given opportunity.

But it’s the range of food, not the volume, that is also interesting. These days when I go out to dinner I often look for the meal I wouldn’t cook at home – the lamb’s fry, the snails or the ostrich. I like to eat as wide a variety of food as I can.

An AgResearch survey found 67.4% of respondents would be happy to eat crickets if they were processed into flour.

I’ve eaten cricket flour and it’s pretty good. It’s also high in protein, which differentiates it from more run-of-themill offerings like wheat. More than half of people said they’d eat fried crickets. I’d be up for that too. Respondents weren’t as keen on some other creepy crawlies such as porina or wax moth larvae, which, I guess, is understandable.

The take-home from this research is that palates are evolving and people are open to try new things if they think they’ll taste good and are produced sustainably.

It’s something New Zealand food producers need to be aware of. There are already farmers here branching out from traditional farming and adding crickets to their businesses. Farming insects doesn’t take up much land and we all know diversification can help insulate a farming business from price fluctuations.

Beef and lamb will continue to be a part of global diets and the mainstay of NZ farming. But good food is good food, whether it’s a slow cooked brisket or a well-marinated hunk of tempeh. The world population is growing and there’s room at the snack table for crickets as well as chicken wings. It appears consumers have the appetite for these novel foods.

Do farmers have the stomach to produce them?

Bryan Gibson

LETTERS

More letters P19

Farmers deserve a gas credit SO, NEW Zealand’s farming leaders have decided farmers should join the Emissions Trading Scheme.

Perhaps they should consider the following before they decide which side of the ledger we should be on.

When carbon dioxide is emitted it joins a pool of carbon dioxide in the earth’s atmosphere.

Because it lasts for hundreds if not thousands of years in the atmosphere any new emissions increase the size of that pool.

It is not the carbon dioxide emissions per se that affect the climate, it is the pool of carbon dioxide of ever increasing size that is the problem.

Farming activities contribute a certain amount of carbon dioxide emissions but it is methane emissions that pastoral farming, in particular,

is deemed to be responsible for.

In contrast to carbon dioxide, methane lasts only 12 years in the atmosphere.

It must, therefore, follow that the sum of methane in the atmosphere, the atmospheric pool, at any given time is the accumulated emissions of the previous 12 years.

If, in the 13th year, the emissions are greater than they were in the first year the pool size will increase and so will its warming effect.

But if the 13th year is equal to or less than the first year the warming effect of the pool will not increase and might even decrease.

We can fairly safely assume methane emissions from livestock are directly proportionate to livestock numbers so all that is required for pastoral farming to not contribute to any further warming effect is to maintain

livestock numbers at no more than any given base year.

As a matter of fact, according to Statistics NZ, livestock numbers have fallen about 8% from 1994 to 2017.

Perhaps NZ’s pastoral farmers should enter the ETS with a credit.

Bill Wrigley Dunsandel

History repeats IT LOOKS to me like history is going to repeat itself.

When will governments learn subsidising our primary industries does not work?

This Labour-led Government is trying to subsidise farmers to plant trees and we already have an oversupply of logs going into China and the price is dropping rapidly.

Sheep and beef farmers are being tempted to sell land at a higher price to take advantage

of this supposed carrot.

Already one school in Wairarapa has closed as farms are being sold to forestry corporations.

Eventually, our economy will stall as the Government’s subsidies are paid out to those who farm land for the purpose of getting a free lunch from the Government.

In the 1980s when the production of lambs exceeded the demand of consumers the market crashed.

Sir Robert Muldoon tried to give farmers a subsidy on their lambs as they were being sold at the freezing works to help struggling farmers.

That did not work because the government was not in a situation where it can continually subsidise its primary industries.

It did not work in 1985 and it won’t work now.

Continued page 19

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Opinion

FARMERS WEEKLY – farmersweekly.co.nz – July 29, 2019

17

BE POSITIVE: Rural people must gather the facts about what they do and make sure urban people hear them, Southland farmer Robin Greer says.

Rural folk, defend yourselves Robin Greer

A

S A proud Southland dairy farmer the wellbeing of our rural families concerns me greatly.

They are constantly bombarded with the hypocrisy of extreme groups and some ministers in our Government.

Many use mistruths to persuade people agriculture needs to be removed from the New Zealand landscape.

We have ministers in the Government who hate dairy farmers and their legacy is to deal with us.

Many of the statements made by some of these people would be called hate speech had it been directed at a different group of the community but farmers are fair game.

Then we have urban areas that are exempt from the rules agriculture has being happy to work within.

Invercargill City was given a new consent to dump raw sewage into streams at more than 140 sites.

In Queenstown and Wanaka it is acceptable to dump raw sewage into our pristine lakes.

Dunedin just extends its sewage outlet further into the sea, Wellington dumps raw sewage into the sea.

Palmerston North dumps sewage into the Manawatu River.

Taupo dumps raw sewage into Lake Taupo then the Waikato River.

The Waikato River is swimmable before Hamilton but a disgrace after Hamilton.

At least Auckland recycles the Waikato River water but then pollutes many Auckland beaches with its sewage.

These are just a few of the urban polluters but they think it is acceptable to take generations to fix these blatant environmental disgraces – what hypocrisy.

Then we have the groups that have no idea about environmental impacts of different forms of food production promoting diets that are more harmful to the environment. Take soy milk, for example. Per unit of nutrient the consumer gets its environmental footprint is worse than that of cows’ milk.

Then we get these vegans who don’t understand the environmental footprint of commercial vegetable growing (we used to commercially grow vegetables) is, in many cases, worse than dairy farming.

What planet are some of these people on?

We now have farmers’ children who are afraid to tell their peers they are from a farming family because of the way they will be berated at school by teachers and fellow students.

Then we have those who think the world can do without farmers.

Yes, but it would starve to death.

I guess that would take care of all the environmental problems humans are causing.

Rural families are proudly

spending millions of dollars creating a better environment for Kiwis to be proud of.

Rural families understand the need to have sustainability of our environment and economy for our survival.

Most families want to hand on to the next generation a better business and environment where our families can continue to do their bit for NZ.

Rural families are proudly spending millions of dollars creating a better environment for Kiwis to be proud of.

I was farming in the eighties and the wellbeing of farming families is now far worse than it was then.

Politicians are not going to get our message out there because we don’t have any voting power so we are going to have to do it ourselves.

Our rural co-ops and sector groups cannot do it because it is just seen a looking after their own patch but they can support us in it.

It is going to take all farming families doing their bit.

We need everybody talking positively about what we do and understanding our importance to our environment, community

and country then getting some of these scientific facts out there so our urban friends can support us.

At the moment they are just bombarded with misinformation that we need to counter with scientific facts.

There are plenty of scientific facts out there that support what farming families are doing but we need to get that into people’s minds.

I have to congratulate John Deere on a great commercial it is running. Thank you so much for your initiative.

It is time for farming families to stand up and get the message out there that we are not environmental criminals as some of these groups would have you believe.

If we are to turn the wellbeing of our communities around we need the scientific facts at our fingertips.

Our sector groups and many of our suppling companies have these facts but we need a way to get them distributed to us. Then we, as farming families, have to do our part to share that information.

We don’t need to reinvent the wheel. The facts are all out there we just need to get them distributed.

I am happy to hear from you how best to source and spread these facts but please let’s make it happen.

Yes, that might mean you need to learn how to use Facebook or whatever way you can spread the facts and stories showing your

The

Pulpit

love of your environment and the animals you farm.

Stand up and be proud. We might be small in numbers but we make a huge contribution to NZ. Supermarkets would be empty with out us.

Who am I? Robin Greer is an organic dairy farmer in Southland.

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

Opinion

18 FARMERS WEEKLY – farmersweekly.co.nz – July 29, 2019

Councils do one thing, say another Alternative View

Alan Emerson

BLESS their little cotton socks, Wellington City Council has declared a climate emergency.

What that means is a little beyond me but the list of other councils joining the club is long.

Auckland, Dunedin, Nelson and Queenstown Lakes are all in there and Canterbury Regional Council proudly claims it was the first to declare a climate emergency.

I’m pleased to say the madness hasn’t affected the Masterton District Council.

We have good councillors and a great Mayor in Lyn Patterson.

They’re committed to doing not talking so don’t expect a climate emergency here anytime soon.

Considering the Wellington declaration first, the stupidity of the announcement is deafening.

For a start we heard the Wellington mayor, another councillor, staff and Associate Transport Minister Julie-Anne Genter were going to fly to China to look at trackless trams.

That will almost double the annual carbon footprint of all participants. I’d doubt if they’d fly cattle class. It is hardly the attitude

of a city in a state of emergency.

Putting it in perspective, my dictionary describes emergency as an unforeseen or sudden occurrence, especially of danger demanding immediate action.

Swanning off to China doesn’t achieve that really.

Then we are told the Wellington City Council is going to apply to extend the airport runway next year.

We are further informed the council has identified direct, longhaul flights as one of the big ideas to help Wellington thrive.

The official line is extending the runway will mean about 65% of the world’s population will be able to fly in one stop to Wellington.

Why would you extend a runway to encourage infinitely more carbon dioxide polluting air travel when you have a state of emergency?

Flying here to Rome or the equivalent distance economy doubles your annual carbon footprint and business class is twice that.

In addition, Wellington city’s population of 212,700 is about to increase, according to Statistics New Zealand, by 46,000.

That’s around a 25% increase with a corresponding increase in carbon emissions.

Council documents are effusive about the increase but at almost 10 tonnes of carbon an individual a year that’s an annual increase in carbon emissions of 460,000 tonnes.

DOES NOT COMPUTE: Wellington City Council has declared a climate emergency but still wants to extend the airport runway to increase air travel.

So what’s all this rubbish about a climate emergency in Wellington?

The actions of the council are all about increasing the carbon footprint and, with it, accelerating global warming.

Queenstown Lakes council is in the same boat.

In 2018 Queenstown airport serviced 2.25 million passengers from Sydney, Melbourne, Brisbane and Auckland and that’s a lot of carbon.

In addition, they’re talking about building a brand new airport with the carbon that will generate.

Mind you, Nelson received a big tick from Greenpeace no less because it put $250,000 of ratepayers’ money aside for a climate taskforce and a climate champion.

What that will actually achieve is beyond me.

So it isn’t about mitigating climate change, it is just about rhetoric.

To quote the Bard, it is full of sound and fury signifying nothing.

I have the same problem with the Zero Carbon Bill, about which I’ve written. I simply can’t take it seriously because it is based on political whim and not solid science.

It also discriminates against farming.

The Paris Accord, on which the legislation is based, is specific on supporting food production and generating measures to mitigate the effects of climate change on food production.

Our legislation threatens food production with unrealistic methane targets and mentions nothing about measures to mitigate climate change to support food production.

It’s actually worse than that as the Government, in the form of Climate Change Minister James Shaw, is crying crocodile tears over global warming while preventing farmers from mitigating climate change.

The most obvious is irrigation, which the Greens are vehemently opposed to but fits in well with the Paris Accord.

If you’re not being selective that is.

In addition, our scientists have developed a gene-edited ryegrass that considerably reduces methane emissions.

The problem is that it’s geneedited and Shaw and Eugenie Sage won’t have a bar of it even though it will help mitigate the climatechanging effects of methane.

Again, the Greens are highly selective over their climate change position.

The final piece of madness came recently with Genter and her proposal to tax motor vehicles.

For a start they’re going to discount electric vehicles by $8000 for those who can afford the initial outlay.

Ford Rangers get hit with an additional $2250 and a Hilux $2000.

Correspondingly, a Prius will be $1700 cheaper, a new Corolla $800 and a used Swift $1100.

Great for farming.

I don’t think I’ve ever seen a tow bar on a Prius and I’d hate to tow a tandem trailer full of calves with a Corolla or Swift but it’s like everything else – feel good as against do good.

Your View Alan Emerson is a semi-retired Wairarapa farmer and businessman: dath-emerson@wizbiz.net.nz

Wyn-Harris sorts real news from the fake From the Ridge

FROM the Ridge (FTR): Thank you Prime Minister Johnson for the interview. How does the new title sound?

Boris Johnson (BJ): It’s my pleasure. It sounds pretty good thank you. Of course, quite unexpected and an honour thrust upon me by my colleagues.

FTR: I’m not sure it’s that

unexpected. Or that you had your arm bent. I heard an interview with your father and he said when you were five you expressed a wish to be world king and by 10 had set Steve your sights on at least being British Wyn-Harris PM. BJ: Well yes, one needs to set achievable goals. We will see how the other one pans out but I think my mate Donald might have his eye on the world title.

FTR: I’m not sure there is an actual job description called World Leader and if there was, Vladimir and Xi are probably also interested.

Speaking of Putin, I see your Electoral Commission is undertaking an inquiry into Russian influence in the Brexit vote back in 2016. It seems the Russians promoted misinformation through both fake social media accounts and state-sponsored media outlets such as RT and Sputnik. They are also looking into Aaron Banks who was the largest donor of the Brexit Campaign and though his Bare Roots Root exudates company was insolvent had a Zelp increased nutrient density by 7% and increased yield by 14% sudden cash injection of £77 Control = 8.91 tonnes/ha vs. Zelp = 10.14 tonnes/ha million after having visited Easy to apply – simply mix in with seed Russia and meeting Russian officials in London.

“I turned $200/ha worth of Zelp into BJ: All fake news as Donald an extra $529/ha revenue.” would say. Now that I’m Nigel Greenwood talking PM, I’ll be having a look about his barley crop at just what that electoral commission is up to.

T: 03 322 6115 | E: info@nzkelp.co.nz | nzkelp.co.nz FTR: Let’s talk about Brexit.

LK0098713©

Sowing crops, use Zelp

You have consistently been one of the biggest advocates and now have your chance to see it through.

Why are you so keen on doing this?

BJ: Because we want our own sovereignty, we don’t like their regulations, the euro is a disaster, it allows too many immigrants and we send too much money to Brussels. I could go on.

FTR: Some of that is arguable but let’s leave that there. So, you have stated that now you are PM, Britain will leave the EU do or die, come what may, even if that means leaving without a deal in place.

You do realise most of your fellow politicians from both sides, nearly all of the business community and all sane people believe that a nodeal exit will be a disaster for the United Kingdom.

BJ: Well, we won’t know that until we do it. Everyone said Donald would be impeached by now and they were wrong. Did you see he rates me as a great friend and wants to do a trade deal with the UK when we exit?

FTR: I did see that. You guys have patched things up pretty well. Back in 2015 you said “The only reason I wouldn’t visit some parts of New York is the real risk of meeting Donald Trump”. But I agree, if you can get some sort of free-trade deal with the United States, it will be very helpful for your economy which will need some help. I hear Winston Peters rates you as a mate as well.

BJ: Yes, Winnie and I are great

mates. I wasn’t happy to hear that nasty Judith Collins calling him all piss and wind. I’m also not overjoyed to hear Simon Bridges saying I have a buffoon-like quality. I’ve left those days behind me. How’s Cindy?

FTR: She’s good, I think. We can’t give her a jazzy acronym like yours, Bojo or like Scott Morrison’s ScoMo from across the ditch though. Winston says you are a great friend of New Zealand. He went as far to say you have a kind and affectionate stance towards NZ. A trade deal between the UK and NZ would go a long way to endearing you in the hearts of New Zealanders. As you know, we are in the early stages of negotiating a trade deal with the European Union but with the UK exiting, we’d love to do something with you.

BJ: I agree. I’ll get us out of the EU and then get Winnie over for a visit.

FTR: Well, good luck for the next few months. Its going to be a challenge to get the Brexit done, possibly without a deal and still remain PM and in government.

You are lucky Labour seem stuck with the unelectable Corbin.

BJ: I’m relentlessly optimistic and am sure things will work out pretty good.

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

Opinion

FARMERS WEEKLY – farmersweekly.co.nz – July 29, 2019

19

Forestry not all Jones hopes Meaty Matters

Allan Barber

THERE’S an irony about the combination of the Provincial Growth Fund’s Billion Trees programme, sheep and beef land being sold without needing Overseas Investment Office approval for conversion to forestry, the sharp fall in Chinese log prices and Shane Jones ranting about log traders being intoxicated by high prices.

According to Jones, these log traders should have supported the domestic timber processing industry though it’s not immediately obvious how domestic sales would have compensated for log exports to China, which exceeded $3 billion over 12 months.

The history of tree planting, well before it was seen as essential for meeting greenhouse gas reduction targets, is no different from any other commodity.

After an exciting start too much of anything inevitably provokes indigestion. Think oil, dairy, sheep meat, wool, angora, alpacas, logs – you name it, there is always a cycle. The world might even turn away from New Zealand sauvignon blanc one day.

China features strongly as a market with a habit of dominating buying patterns and driving prices up before turning the tap off,

though that was more of an issue when the state rigidly controlled all buying.

While Chinese demand for beef and sheep meat appears guaranteed because of the growth in the middle classes and a shortage of animal protein, meat exporters must be careful not to burn their bridges with the rest of the world.

At least red meat exports to China are moving away from commodity supply towards meeting increasingly sophisticated consumer demand for added-value product forms though there is still the risk Chinese importers will switch to further processing at their end of the supply chain.

Jones is just another in a long line of politicians who invest large sums of taxpayer money into trying to get us to do something noble, otherwise known as altering behaviour or distorting normal market forces.

In contrast, logs are essentially a straight commodity with added value being limited to log type and specification.

Lots of other countries have introduced tree-planting programmes so Jones’ scheme is not unique nor is it clear where the markets for further processed timber will be developed.

Without knocking the need for

GHG reduction it’s hard not to conclude it might have been a good idea to work out where the billion trees are going to find a home, admittedly in 30-40 years time. Estimates of the time for demand from China to recover fully range from weeks to six months to 10 years so it’s clear nobody really knows.

It’s a bit rich for Jones to criticise those log traders for taking advantage of a ready market for trees that were planted a quarter of a century ago in the last great forestry boom when Japan was the major market.

As with other commodities, NZ doesn’t have a large domestic consumption base, which means we must either export in raw form or find ways to add value before exporting. There are no commodity businesses that can survive on the domestic market alone.

Jones is just another in a long line of politicians who invest large sums of taxpayer money into trying to get us to do something noble, otherwise known as altering behaviour or distorting normal market forces.

In the case of GHG reduction it is such an emotive topic politicians must be seen to take action, to appease both foreign governments and voters at home as well as those who haven’t yet reached voting age but are increasingly vocal.

As an additional factor, the composition and modus operandi of our Government make it possible for a minority party to push its own agenda, backed by taxpayer funds without proper oversight of the effectiveness of the investment.

LOOK BOTH WAYS: Forestry Minister Shane Jones should take a look backwards as he tries to shape the future.

Given a stable environment without sudden swings in incentive programmes the market usually gets things fairly right.

Land and commodity prices respond to the relative demand between sectors reflecting, in NZ’s case, the international marketplace for what we produce and to a lesser extent changes in government policy.

Since World War II several key events have had a striking impact on the level of global demand for our exports and, as a consequence, land use.

They include, among others, huge demand for wool during and after the Korean war followed by an inexorable decline in wool prices, Britain joining the European Common Market, supplementary minimum prices, removal of subsidies in 1985 causing collapse of sheep meat prices leading to growth of forestry in late 80s and dairy conversions since the early 90s.

The impact of free trade with a wealthy, modernising China and climate change are the two most important factors now. They present both opportunities and threats to which the sector must respond.

The most noteworthy change in

land use during the last 50 years has been the conversion of sheep and beef farms to dairy, forestry, deer, grape and horticultural production as well as urban sprawl.

This has been driven by the returns obtainable from the conversions, all of which have been better than farming sheep and beef.

Ironically, the effect of political pressure to encourage treeplanting and a streamlined OIO approval process to attract overseas forestry investment coincide with the highest-ever lamb prices in the international market.

While Jones doesn’t give the impression he tolerates anything contrary to his world view, it would be helpful if he considered the unintended consequences of his headlong rush into forestry as well as taking a careful look at where all these logs or addedvalue timber will be sold.

A look at past experience might be useful.

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

LETTERS Continued from page 16 Even as recently as 2005-2010 a lot of easy land that had been planted in trees was converted back into dairy farms.

I think we do need some balance when thinking about forestry.

John Chesswas Stratford

Care for calves TOO many dairy farmers don’t give newborn calves adequate gold colostrum in the first 12 hours of life then sell those calves to unsuspecting rearers at calf sale yards.

Without sufficient gold colostrum within 12 hours, death rates can exceed 30%.

Despite this stock firms refuse to reimburse rearers unless deaths occur within 24 hours of purchase and are accompanied by a vet certificate.

The continued refusal to reimburse buyers protects the

More letters P16 vendor as few die within 24 hours.

Rearers have asked the Ministry for Primary Industries to intervene, attend more calf sale yards and prosecute vendors who sell sick calves but stock firms could stop the practice overnight.

Vendors should be required to guarantee all calves they sell had the required colostrum. Until they provide this guarantee rearers should boycott sale yards.

Patricia Hosking Ngongotaha

Virile vegans IN HER letter, Are vegans too idle to breed? (FW 15.7.2019), Marie Lepper has obviously not embraced veganism and is definitely irritated by the vegans.

In early 2000 vegan was seen as a fad diet, so it is unfortunate Wwoofers who were vegans ended up on her farm.

Maybe she did not have the resources or the will to acknowledge their eating preferences.

That would have meant, most

likely, the diets she provided were not balanced to meet their needs.

That is not the fault of vegans.

It is the fault of those who are not willing to accept diversity in dietary preferences.

In my experience I have not met one vegan who is malnourished, sterile, lacking in stamina, strength or has swapped marijuana for meat.

Much of the population of India is vegan/vegetarian.

The cows I have seen are not malnourished but treated like humans. I agree the inhumane slaughtering of any animal is abhorrent where ever and New Zealand does not have such a good record when treating calves.

That, however, does not mean all farmers treat their animals in such a fashion.

I see it the rise in vegan dietary choices as being triggered by climate change.

Until we address the issues of industrial food production, where a majority of inputs are derived from fossil fuels and GE crops, all dietary options have their risks.

Regenerative, organic agriculture is where we should focus our energies.

Claire Bleakley Featherston

Under the pump?

When life gets busy remember to eat well, get quality sleep and keep active.

Sam Whitelock Farmstrong Ambassador For tips and ideas, visit farmstrong.co.nz

Opinion

20 FARMERS WEEKLY – farmersweekly.co.nz – July 29, 2019

Farm day out another success The Voice

Craig Wiggins

I LOVE it when a plan comes together.

The second year of running the Farming Family Day at the Races at the Ashburton race track was an even bigger success than last year, which was run to provide a midwinter get off the farm day to help relieve the stress of farmers facing the issues around Mycoplasma bovis and precalving/lambing preparations.

This year we had offers from sponsors and requests to do it again so we geared up a few things from last year and with the help of Bruce Taylor, a local industry sales and support representative, we got stuck in to provide a relaxed and entertaining environment for young and old, enjoyed by some 500-plus rural people.

The Rural Support Trust got involved with people power and some financial help, which was greatly received.

This led me to ask a lot of questions about the importance of the RST in rural New Zealand.

The answer is simple. The RST is one of the most important tools we have in the fight against rural mental health issues. It also facilitates many support networks for all things rural and really does fly under the radar because of some constraints that are not easy to overcome.

From snow-raking to the simple act of making a cup of tea and listening these are the people who feel a need to be involved, offering maximum support where they can with not enough support from government agencies and industry when you look at the cost of mental health issues on our rural communities.

One of the big issues they face is farmer perception that because they do receive some funding from the Ministry of Primary Industries, they work for it.

In the case of M bovis I definitely think the RST felt a lot of frustration from the directives passed down by MPI at the early stages of the incursion.

With the new report on the management of the virus and a new director general looking to engage more farmers the RST feel they have a larger role to play now.

They are a resilient bunch and

C’MON: Enjoying a day out at the races were, from left, Marlee and Tilly Campbell and Maddy Edwards.

fought hard to make politicians and government personnel listen to the needs of farmers.

Many of the RST have suffered a huge personal toll during this time.

The hands-on knowledge local RST groups have can’t be understated.

They know who to co-opt and offer support and or make things happen and while there have been some questions asked by farmers about the confidentiality of the group’s members when dealing with sensitive personal information there are some internal guidelines protecting all involved in any issue.

So, any insecurities farmers might have in talking to RST members should be forgotten and if feelings of stress are rising to the surface the RST is a very good place to start.

CYDECTIN POUR-ON WORKS HARDER

One thing I have noticed and was mentioned by a few sponsors and farmers while running the race day was that it was great to come to an event run by locals, for locals with any money raised being spent locally.

Many farmers feel the continual talk of rural depression in media is not only helping to increase the feelings of inadequacy but also adds a stigma being laid like a blanket of darkness over the whole industry.

There is a mood of discontent that mental health is becoming an industry for many people to jump at the chance of financial reward.

If a bed salesman wants to make money he tells everyone they need more sleep.

Some farmers think the highpriced public speakers and events that come into a community then drive away with a pocket full of

money are a loss of revenue for groups such as the RST and rural communities would be better off if they had more local sports and community days such as the race day.

The RST is already set up and has history in each area that will lead to more support for those feeling the pressures of life and rural isolation.

I believe they need to be engaged more by medical professionals and have the ability to help farmers find the help they need.

Community strength can be built up again by hosting as many events as possible and building up the level of interaction between as many rural people as possible.

The people who attended the race day rubbed shoulders with neighbours and industry representatives, got health checks, enjoyed the food and hospitality, their children played and got their faces painted.

There was a chance to dress up and win prizes, to lose the odd bet and yet still win a prize but mostly there was a great deal of community spirit and light relief.

I love it when a plan comes together.

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Opinion

FARMERS WEEKLY – farmersweekly.co.nz – July 29, 2019

21

NOT GOOD: Studies in China have now proved milk containing the A1 protein has adverse effects on them, Professor Keith Woodford says.

A1 milk will become a hard sell The Braided Trail

Keith Woodford

A NEW A2 milk clinical trial with children has big implications both for child nutrition and the dairy industry.

A paper on A2 milk was published this month in the Journal of Pediatric Gastroenterology and Nutrition.

It gives strong evidence from a clinical trial with pre-school children in China that A1 beta-casein relative to A2 betacasein has negative effects on both digestion and cognitive performance.

That has major implications for the mainstream dairy industry, which continues to downplay the A1 versus A2 issue.

It is particularly so for any dairy company wanting to sell dairy products to China in the years ahead.

The long-term future for A1 milk in China is now bleak.

The strength of this latest paper is not just what is new but how it builds on prior research.

Through confirmation, it provides credibility to that prior research.

The paper also gains credibility from where it is published. The journal is the official organ of the European and North American Societies of Pediatric Gastroenterology, Hepatology and Nutrition.

The authors are from Shanghai Jiao Tong and Peking Universities in China with an Australian collaborator. Peking University is ranked by Times Higher Education as the number one university in China and Jiao Tong is seventh.

The trial used 80 preschool children. It compared ordinary milk containing a mix of A1 and A2 beta casein with a milk product where all of the beta-casein was A2. Most of the children showed early signs of intolerance to conventional milk before the study.

It was a crossover trial, with all the children having five days of consuming one milk product then, after a nine-day washout, another five days of the other milk. The children, their parents and the supervising staff were all blinded as to which milk was which. Half the children had the A1 milk first and the other half had the A2 milk first.

The trial provided exceptionally strong evidence across a wide range of measures.

When the children consumed the A1 milk they had more digestive discomfort, their faeces were of a different consistency, they produced less of the desirable fatty acids in their digestive system, they had elevated betacasomorphin in their blood, they had increased inflammatory markers in their blood and their cognitive performance on a standardised, computerised test of response times was inferior.

For those who are statistically minded, many of the results were at significance levels of p<.001. This is much higher – more than 50 times – than is normally required to provide acceptance of a genuine effect.

The crossover design is the ideal method for reducing chance effects and double-blinding of both participants and scientific supervisors is also best practice.

None of the results came as a surprise.

All results were hypothesised based on prior research and with the biochemical pathways increasingly understood.

However, this trial has tested those hypotheses in a rigorous setting and with preschool children. It is the first time such a trial has been done with children of any age.

The long-term future for A1 milk in China is now bleak.

I have been waiting for the publication of this paper for two years. The trial itself was in 2016. It is the third of three major related pieces of research in China.

The first of these Chinese studies, which I call China1, was published in April 2016 with Jianqin Sun from Shanghai’s Fudan University as the lead author. It provided very powerful evidence, also from a crossover design, that A1 beta-casein slows down the transit of food through the digestive system, that it causes inflammation and that there are cognition effects using the computerised test of response rates and response accuracy.

Unfortunately, the China1 paper is not easy to read. Even scientists can get confused and misinterpret the strength of the results unless they spend many hours exploring the detail. And though the design

was very strong, those who did not understand the strength of the crossover design were always going to be sceptical because the trial involved only 45 people.

Hence, I always knew it would not have the public impact it deserves.

As a consequence, though I have written about China1 for scientific audiences and discussed it at seminars I have never discussed it in the mainstream media. I decided to wait for China2 and China3.

China2, also known as the Three Cities Study involved more than 600 people in Beijing, Shanghai and Guangzhou who were tested for intolerance for A1 versus A2.

China2, like China 1, provided strong evidence of intolerance but, given the number of people involved, the design was much simpler and only limited measurements were taken. It had more impact in the public arena than China1, in part because it was easy to understand and also because people were impressed by the large number of participants.

But there was less science.

Despite studying and writing about the science behind A1 and A2 milk for 15 years I still chose to say nothing in public about China2. I wanted to wait for China3 with its in-depth study of preschool children.

In the meantime, there was another published paper from the Chinese studies. Blood samples from China1 were sent to American researchers who analysed them for their betacasomorphin7 content and also their levels of antioxidant glutathione. Once again, they found important differences that gave scientific insights beyond the

immediate clinical effects.

Taking all of the Chinese studies together I now have the confidence to say publicly that this is a very impressive body of evidence from a range of scientists from top-level Chinese institutions and international collaborators.

In Western countries there will still be scepticism, with more evidence required from studies in Western countries before the sceptics are convinced.

However, while that debate will continue, there are now increasing quantities of A2 dairy products in supermarkets. That includes all across Australia, much of the US and Britain, increasingly in New Zealand and even in Moscow.

Of course, the evidence for dairy products free of A1 beta-casein goes well beyond the clinical effects investigated in the Chinese studies. It is now well over 20 years since Professor Bob Elliott from Auckland University and Professor Robert Cade from Florida started writing independently about the effects of the A1-derived betacasomorphin7 on wide-ranging medical conditions. In 2007 I wrote a book about their work and that of other scientists who followed, which I called Devil in the Milk. Since then the evidence keeps piling up.

MORE:

Links to the papers are at https:// keithwoodford.wordpress.com

Your View Keith Woodford was Professor of farm management and agribusiness at Lincoln University for 15 years to 2015. He is now principal consultant at AgriFood Systems. He can be contacted at kbwoodford@gmail.com

On Farm Story

22 FARMERS WEEKLY – farmersweekly.co.nz – July 29, 2019

Organics finds whisky farmers The Styx Valley is in a remote southern corner of the Maniototo basin in Central Otago where the seasons can be harsh. But that isn’t stopping John and Susan Elliot from running an innovative whisky distillery alongside their farm. Neal Wallace visits Lammermoor Station.

T

HE story of Andrew Elliot discovering a copper whisky still on his Central Otago station early last century is family folk lore that resonates with John and Susan Elliot.

It is a link to the latter part of the 1800s when the Otago hills, rivers and valleys were crawling with gold prospectors, swaggers and opportunists.

John never forgot his grandfather’s find on what is now Lammermoor Station.

The story says John’s father Bob later found a small stone hut close by the still, possibly the home of the miner/distiller.

To get to Lammermoor Station at the end of a gravel road in the Styx Valley, 40km south of Ranfurly, means driving past the now closed Paerau School.

It was once the smallest school still operating in New Zealand but it closed in 2012 after 97 years when there were no children left in the district.

The Styx Valley is on the historic Dunstan Trail which, during the 1860s Otago gold rush, was the main access route between the Central Otago gold fields and Dunedin.

In 1863 the Serpentine gold claim was home to 3000 Chinese miners.

Now just six farming families live in the valley.

John is proud of the district’s history and when he had a chance meeting with Bill Lark, a Tasmanian whisky distiller who is also known as the Godfather of Australian whisky, a plan began to hatch.

Their farm bounds the upper

FAMILY: Lachie, Susan and John Elliot from Lammermoor Station, Central Otago.

Lots of early starts and late finishes.

John Elliot Distiller reaches of the Taieri River and John’s wife Susan took exception to an article in an international fishing magazine complaining about the colour of the river.

She wrote to the publication pointing out it is naturally tainted by the area’s peat soils.

The magazine made it letter of the month and sent her a bottle whisky from Lark Distillery.

They later approached Lark for advice about building a distillery on the farm and in March 2017 the boutique Lammermoor Distillery opened.

It specialises in single malt whisky with the slogan Distilled illegally since 1863.

They also distill gin though the distillery is very much secondary to growing grain and running 18,000 stock units: halfbred sheep, bull beef finishing and beef breeding and finishing.

Lammermoor covers 5200ha, the amalgamation of two properties – Rawhiti, settled by his grandfather after returning from World War I in the 1920s, and Brookside, bought in 1971.

John’s parents Bob and Alma took over in the 1950s and John returned to the farm after leaving school in 1980 and has been there ever since.

In 2012 they added a 112ha irrigated finishing block on the Maniototo plains.

Lammermoor consists of 600ha of river flats, 1200ha of warm hill country and 500ha of

TAIERI WETLAND: The Taieri River emerges into the Styx Valley from the Rock and Pillar Range where it forms a wetland before flowing 288km to the coast south of Dunedin.

Photo: FMG elevated, arable flat country next to Great Moss Swamp, about 12km from the homestead. The rest is untouched tussock country. The property ranges from 600m above sea-level at the house to a height of 1100m.

It is a land of weather extremes.

Winters can be long and harsh and they plan to feed supplements to stock for at least 100 days.

John has endured frosts as low as minus 18C but most winters the mercury regularly plummets to minus 11C. Winter snowfalls are regular but in May 2002 the valley floor was blanketed with a metre of snow.

Summers tend to be hot but in recent years they have been warm and wet and winters not as harsh, which has enabled grass growth in May. “We used to go (ice) skating in May. Now the grass is still growing.”

It is clean, healthy country on which they run 7800 halfbred sheep, 1880 cattle, a mix of 300 Angus breeding cows and heifers and the balance dairy bull beef, which they grow out to two years.

The Elliots previously ran superfine Merino ewes but shifted to halfbreds to spread the risk from a reliance on wool.

Shearing is in September with hoggets producing wool of 21 microns and ewes 23 microns, clipping 4.5kg. John does his own wool classing.

They are fiercely independent and prepared to follow paths not commonly taken but for which they see benefits.

About 12 years ago they realised their farm was effectively organic, being clean, healthy country and their farm management requiring little use of chemicals.

“Organics found us rather than us finding it,” he says.

They initially saw a chance to secure premium prices for organic wool so ran their farm under two parallel production systems until this year when the whole property was certified organic.

Being independent, they market their own wool under contract to a variety of buyers around the world, mostly for knitting.

Susan says they find buyers via the internet and word of mouth and through friends and contacts.

“There is a massive market out there,” she says.

John says by doing their own marketing they can use their story, follow their wool to the end products and develop relationships with the processors and users.

Halfbred ewes lamb in October and lambs are weaned in March.

Being late maturing they sell several thousand prime lambs each year from April to June at about 18kg carcase weight. The final tally depends on retentions and opportunities from other outlets such as store stock.

Susan buys bull calves at four days old and keeps them through to two years when they are killed at 320kg to 340kg.

At one stage she was rearing up 1500 calves and leasing out 800 bulls to dairy farmers each year.

Mycoplasma bovis changed that and now she rears only 400 calves.

Meat is sold to a processor while the 180ha of barley and triticale grain is sold to organic dairy farmers and free-range chicken and egg farms.

Barley yields about 7.5 tonnes a hectare and triticale 10 tonnes a hectare.

In return they buy 3000 tonnes

On Farm Story

of chicken manure a year from a free-range egg producer. Most of it is applied to developed pasture, winter feed and arable crops.

Some is on-sold to other farmers.

Elliot says the certified organic manure is high in nitrogen, phosphorous and potassium and is their primary source of fertiliser.

Lime and other elements are added as allowed and needed.

In further evidence of their independence they do virtually all their own tractor work and harvesting and cart most of their grain.

RESURRECTING HISTORY: The Lammermoor Distillery on the Elliots’ Central Otago farm is a nod to whisky distilling that occurred on the property during the Otago gold rush in the 1860s.

Their sons work on the farm and casually in the area and branched out to sheep breeding in their early teenage years. Lachie now runs a 400-ewe Southdown stud and Duncan a 150-ewe Romney stud.

Daughter Brooke and her husband Scott Watson can also be called on to help.

The sheep and breeding cows predominantly live on the hill country but during winter the ewes are taken to the foothills where they get supplementary feed.

The flats are prone to flooding, especially in spring when rain

combined with snow melt increases flows.

In winter crops, arable stubble and pasture on the flats are grazed by the bulls, young beef cattle and finishing lambs.

The Waipiata farm has 96ha of irrigation with a centre pivot and the home farm about 220ha irrigated by K-Line and hard hose gun.

When Lark visited Lammermoor he saw huge potential from the combination of the extreme climate creating a short but intense barley growing season and crystal-clear water accessible from the mountains.

“He told us we’ve got the perfect climate to produce and distill whisky,” John says.

But there was plenty to learn so John hit the books and soaked up all the knowledge he could from Lark.

The distillery is a commercial venture as well as a hobby and required significant investment in infrastructure and equipment.

John once again demonstrated his independence, building the boutique distillery himself with timber from the farm and working off a sketch. The distillery was based on Lark’s layout.

Distilling whisky is based on the Scottish process. It takes at least three years to mature and gin two.

Susan has started distilling her own gin under the name Gin and Bare It. There are up to 15 botanicals for gin and every batch has its own characteristics.

“Every distill you do is slightly different, which is the beauty of being a boutique distiller,” she says.

While the whisky continues to mature in the oak barrel Susan is selling her first batch of gin through local hotels, a liquor outlet in Dunedin and to customers throughout the country.

Being close to the Central Otago wine industry has proved a bonus for the whisky because under Scottish guidelines it must mature in barrels made from French or American oak that have been used for pinot noir wine, sherry or port.

John says there are plenty of barrels available.

Learning how to produce the whisky was one task, learning what is required by Customs so he can meet his alcohol tax requirements is another.

The distillery is a Customs controlled area and once a barrel leaves the distillery he must pay excise tax based on the alcohol content.

FARMERS WEEKLY – farmersweekly.co.nz – July 29, 2019

NEW VENTURE: The Lammermoor Distillery where John and Susan Elliot brew whisky and gin.

There are also food safety and health and safety rules to be followed.

They have 30 228-litre whisky barrels maturing at 63.4% alcohol maturation strength and a number of 20-litre barrels.

They hope to have their first bottling run by Christmas.

The bottled whisky will be 43% in strength but John says the decanting process is an exacting technique he will try to perfect with another visit to Lark Distillery.

No two barrels of whisky taste the same, a feature of a boutique distillery.

Getting the whisky to this stage requires nearly three years of round-the clock, exacting dedication to monitoring, checking and cleanliness.

John says they spend two to three hours a day in the distillery.

“Lots of early starts and late finishes.”

He is developing a story and provenance for each barrel about national and local events, landmarks and noted people in the district.

John and Sue have branched out into poetry to add to the provenance of the whisky and gin distilled on the property.

The distillery has become a tourist attraction with 1000 people visiting in the last couple of years.

Not quite busy enough, John and Sue are now developing a glamping business to cater for tourists.

The Styx Valley is not quite as remote as it was.

IMPACT: Calf rearing has had to be scaled back since the arrival of Mycoplasma Bovis.

>> Video link: bit.ly/OFSelliot

23

Photo: FMG

Making whisky is a science Neal Wallace neal.wallace@globalhq.co.nz MAKING whisky is an exacting science refined by the Scots over thousands of years.

John Elliot religiously follows the Scottish production process and terminology and for someone yet to bottle his first batch of whisky the details and exacting requirements of each stage roll off his tongue like a veteran distiller.

One tonne of barley will produce about 400 litres of alcohol.

The process starts by drying the barley to encourage germination and the production of sugars.

Elliot has repurposed big vats from various industries including one from the now closed Bell tea factory in Dunedin that was built about 1900.

He can enhance the flavours by adding smoke from manuka chips or peat to create a unique taste.

The smoke is sealed in the tank with the barley.

The next step is to crush the barley, an exacting process that must leave a mash of 70% grist, 20% husks and 10% flour.

Hot water is then slowly run through the mash to draw the sugar, a lengthy process to produce the liquid extract, wort.

The remaining mash makes excellent stock feed and

BEYOND THE LAW: A sample of Lammermoor whisky, distilled illegally since 1863. Photo: FMG generates about 40 tonnes a year.

Yeast is added to the wort, which, over five to seven days, converts the sugar to alcohol.

It is then transferred to the copper still where the initial wash run produces low wine, a liquor containing about 20% alcohol.

The next distillation produces new-make or whisky.

Elliot says monitoring the alcohol dripping out of the still is vital to the cut of the whisky as the alcohol strength reduces throughout the process.

The first alcohol to be drawn off is 75% strength and called foreshot. It is too strong to be used.

Next comes the optimum alcohol from 64% to 74%.

It is then stored in the barrels for at least three years and when bottled will be reduced to drinkable strength and quality.

VIEW: Looking up the Styx Valley towards Ranfurly 40km in the distance.

24

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Real Estate

FARMERS WEEKLY â&#x20AC;&#x201C; July 29, 2019

NEW LISTING

Te Mata 20 and 156 Waimaori Road Must view! Options abound This impressive 142.9ha dairy unit is located in Te Mata, a popular farming district with above average rainfall located only 15kms to Raglan and 45kms to Hamilton. The self contained farm has fertile pasture, modern improvements and five titles leaving you plenty of options in a beautiful setting. The extremely well presented property has been faithfully farmed by the same family for 40 years. An excellent 20ASHB supplies Fonterra with a production average of 92,180kgMS, milking 260 cows and retaining all young stock. With the forecast payout predicted to rise, get in quick for this early season opportunity. Great locality, great contour and great community, our retiring owners are committed and this property is unconditionally for sale.

bayleys.co.nz/2310636

Patoka 1438 and 1600 Waihau Road 3

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Tender (unless sold prior) Closing 4pm, Thu 15 Aug 2019 96 Ulster Street, Hamilton View 11am-12pm Wed 31 Jul & Wed 7 Aug or by appointment Peter Kelly 027 432 4278 peter.kelly@bayleys.co.nz SUCCESS REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

Quality 241 hectares finishing land Located only 10km from Patoka Primary School and 45km west of Napier city is 'Little Falls', a very attractive 241 hectare property with huge potential to crop and develop large portions of flat and easy land. Utilised in recent times as an organic dairy runoff, there is also the option to run sheep and beef with the quality four stand woolshed, three bay implement shed/workshop, sheep yards and two sets of cattle yards. A real feature of the property is the recently fully refurbished three bedroom home which is well positioned to capture the sun and fantastic rural views over the rolling rural landscape to the north. This attractive farm has great potential as a finishing property or dairy runoff. A must view for local and out of town buyers. Open Days 1-2pm 6 and 13 August.

Auction (will not be sold prior) 2pm, Thu 29 Aug 2019 52 Bridge Street, Ahuriri, Napier View by appointment Tony Rasmussen 027 429 2253 tony.rasmussen@bayleys.co.nz Gavin Franklin 027 427 8000 gavin.franklin@bayleys.co.nz EASTERN REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

bayleys.co.nz/2851778

Mid Canterbury 172 Flynns Road

Deadline Sale (unless sold prior) 2pm, Wed 21 Aug 2019 View by appointment Fee Ensor 021 705 014 fee.ensor@bayleys.co.nz WHALAN AND PARTNERS LTD, BAYLEYS, LICENSED REAA 2008

Bare land opportunity in Staveley This 58.2792 hectare block, subject to final survey, could be well suited to a sheep, cattle or deer grazing operation. Well fenced and divided by a central lane, the property features extensive native riparian plantings and stunning sites to build your new home.

Located in Staveley, just off the Inland Scenic Route 72, approximately 20 minutes from the rural service town of Methven.

Multiple options available here.

bayleys.co.nz/5510329

THE DESTINATION FOR RURAL REAL ESTATE

Land is the biggest asset to any farming business so it pays to stay up to date with the market.

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HEAD STOCKPERSON REQUIRED A Head Stockperson is required for Fields Track Station, a 1920 hectare hill country breeding property situated 45 minutes from Wanganui.

classifieds@globalhq.co.nz

Closing Date for applications: 18th August 2019

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

FOR SALE NOTICEBOARD

REACH EVERY FARMER IN NZ FROM MONDAY Advertise in the Farmers Weekly $2.10 + GST per word - Please print clearly Name: Phone: Address: Email: Heading: Advert to read:

Agronomy Expression of Interest Farm Manager Livestock Specialist Manager Operations Manager Shepherd / General

A very spacious, fully furnished and well-equipped three bedroom workers’ accommodation is on offer with this opportunity. Surrounded by picturesque scenery there are plenty of outdoor activities to explore including fishing and hiking.

To view a Job Information Pack or to apply, please visit www. ruraldirections.co.nz or phone the Rural Directions team in confidence on 06 871 0450 (Reference #9127).

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VIEW VIDEOS sixty dogs. Deliver NZ wide, trial, guaranteed, www. youtube.com/user/mike hughesworkingdog/videos. mikehughesworkingdogs @farmside.co.nz – 07 315 5553.

ANIMAL HEALTH

WHATATUTU DOG SALE. Saturday 24th August at Otara Station, 319 Whatatutu Road. Te Karaka, Gisborne. Sale starts 12 noon. Entries close 18th August.

Dosing clearance required.

Enquiries to Allen Irwin. Phone 06 862 3618. Email: toromirostation@gmail. com

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

ATTENTION FARMERS FAST GRASS www.gibb-gro.co.nz GROWTH PROMOTANT Only $6.00 per hectare + GST delivered Brian Mace 0274 389 822 brianmace@xtra.co.nz DAGS .25c PER KG. Replacement woolpacks.

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SOFT, DURABLE, FREE draining rubber mats. Easy to clean. Call to order on 0800 686 287 – www. numat.co.nz

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

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GOATS WANTED

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Feral Goat Control Specialists • Farm control • Forestry • Conservation projects Experienced and professional team of cullers available.

Contact: Jason 027 478 7274 E-Mail: jaseh@xtra.co.nz LK0098610©

For all your employment ads Debbie 06 323 0765

2IC

This role will suit a self-starter with a strong work ethic and good communication skills who is comfortable working independently or as part of a team. The appointee must have the confidence to competently oversee the property in the absence of the Farm Manager.

Offered is an attractive remuneration package and a comfortable four bedroom house, with local primary school nearby.

All interest and applications to: Mike Abbiss, RD 9, Feilding 4779 email: abbiss@xtra.co.nz

JOBS BOARD

The appointee will have a good understanding of stock management, animal health and will ideally have a good knowledge of rotational grazing. A team of 2-4 working dogs under good control and the ability to ride a quad bike is also required.

The successful applicant would bring to the position: • First and foremost a good attitude, self-motivation and reliability • A team of dogs • Preferably some horse experience • Farm maintenance skills • An ability to work independently and a willingness to take up the opportunities of working within a supportive team environment.

25

farmersweeklyjobs.co.nz

This role presents an exciting opportunity for an Experienced Shepherd General to work in this scenic paradise, for a fixed term period of six months. The role will support the Farm Manager and will involve both stock and general work including fencing and farm maintenance.

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D’Urville Island - Marlborough Sounds Waitai Station is a stunning coastal property located on D’Urville Island, Marlborough Sounds. It is an extensive 2011ha hill country station running 4500 Romney sheep and 458 Angus cattle.

This property is one of two adjoining breeding units and part of a larger farming operation based in the Wanganui region.

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Experienced Shepherd General

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FARMERS WEEKLY – July 29, 2019

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

MANUKA SITES WANTED CENTRAL NORTH ISLAND. Whanganui, Taranaki, Wairarapa.

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PROPERTY WANTED HOUSE FOR REMOVAL wanted.

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Phone 021 0274 5654.

PUMPS HIGH PRESSURE WATER PUMPS, suitable on high headlifts.

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STOCK FEED HAY 12 EQUIVALENT squares $70. 15 equivalent rounds $75. STRAW 12 equivalent squares $55.

BALEAGE at $80. Unit loads available. Phone 021 455 787.

TRACTOR PARTS JOHN DEERE 6410, 6600, 6610, 6800, 6900, dismantling Andquiparts.

Phone 027 524 3356.

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 to book in or email classifieds@ globalhq.co.nz

WORK WANTED SHEPHERD LOOKING FOR position on drystock farm/station,North Island.

Preferably horseback country. Have small team of dogs. 027 800 6769.

26

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

FROM HERE...

Livestock

FARMERS WEEKLY – July 29, 2019

AUTUMN WEANERS FIRST LIGHT WAGYU IS QUIETLY GROWING IN LINE WITH DEMAND FROM OUR DISCERNING NEW ZEALAND AND INTERNATIONAL CUSTOMERS. • • • • •

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Awards and website – Voyager Media Best trade/specialist publication farmersweekly.co.nz Vol 18 No 23, June 17, 2019

2019

Emptiness worries meat man $3.95

Incl GST

April 2019

Outlook is rosy those commodity prices will continue to stay up unless we coordinate and collaborate our sales N A global environment efforts. characterised by increasing “And farmers must still work uncertainty the primary hard to make sure they get a good sectors are continuing to profit.” deliver, Agriculture Minister Despite economic and political Damien O’Connor says. uncertainty affecting world Joined by 100 farmers and markets, New Zealand’s returns industry leaders at the National have remained solid and though Fieldays O’Connor launched there is continuing risk it is offset Outlook and Situation the latest to some extent by the weak report for Primary Industries dollar.

(SOPI) produced by MPI. “This export performance by sector the across “It’s great news NZ’s primary sector producers with headline figures showing is all the more impressive continued growth.” the weakening global considering risen Agricultural exports have economic environment and $7.5 billion in the last two years the high degree of uncertainty but returns are expected to soften creating tensions across his year before growing again, international markets,” MPI O’Connor said. director-general Ray Smith Export returns for primary said. produce in the year to June 30 are However, given the uncertain expected to be $45.7b. international backdrop The report also predicts a slight and despite strong export fall in the coming year before performance the downside risks returns start climbing again, to to the forecast are heightened reach $48.5b in 2023. over the next few years.

“Horticulture has continued Production and returns are to be the star performer with its the in expected to fall slightly in focus on the customer resulting next year before resuming its success,” O’Connor said. moderate momentum in the “The meat sector is solid and is medium term in meat, dairy and given way that continue to likely horticulture. the challenges in China with their Sustained Chinese and pork production. southeast Asian demand is aquaculture seeing “We’re also supporting strong prices and grow which is a real positive. the weak dollar is expected to “But farmers can’t assume

THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME$8.95 THEME Bree THEME THEMEdingTHEME & THEME THEME THEME THEME gene THEME THEME THEME ticsTHEME THEME THEME THEME THEME THEME THEME THEME Gyp THEME THEME sy Day THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME

Incl GST

Luke Chivers and Stephen Bell

I

than 7% this year to $45.6 billion, Agriculture revenue is expected to jump by more CHALLENGING: Primary industry export he attended with Prime Minister Jacinda leaders at the National Fieldays when Minister Damien O’Connor told industry Ardern.

We are moving into challenging economic environments and trade is being kicked around like a football.

Damien O’Connor Agriculture Minister continue supporting export returns.

“Strength in prices supported by an increasing proportion of higher-value products is expected

to sustain growth in dairy export revenue despite constraints on milk production growth,” Smith said.

“NZ’s current run of export success over the past two years has occurred despite a rising sense of uncertainty in global markets.

“This is in part because the products we trade in haven’t been directly affected so are and in part because the NZ dollar has fallen over the past two years.

“However, these issues do provide an increasingly uncertain backdrop to the otherwise positive outlook.”

global economic growth expectations, rising protectionist sentiment and uncertainty caused

by Brexit, United States-China trade tensions and outbreaks of African swine fever.

But the bigger concern for NZ is their potential impact on consumer demand in Britain, America and China.

“We are moving into challenging economic environments and trade is being kicked around like a football,” O’Connor said.

“Our sector shouldn’t assume anything and will need to

Breeding top bulls for NZ

Still going strong after 50 years

Continued page 5

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Livestock

FARMERS WEEKLY – July 29, 2019

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

27

SALE TALK Breeding the difference

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A man walks into a bar

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and orders a drink. After

we get some pretty funny

a while he notices there

contributions to our Sale

are pieces of meat nailed to the ceiling of the bar so he asks the barman

Talk joke from you avid

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If you’ve got a joke you want to share with the Farming something you’d share with

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MARKET SNAPSHOT

28

Market Snapshot brought to you by the AgriHQ analysts.

Suz Bremner

Mel Croad

Nicola Dennis

Cattle

Reece Brick

Caitlin Pemberton

Sheep

BEEF

William Hickson

Deer

SHEEP MEAT

VENISON

Last week

Prior week

Last year

NI Steer (300kg)

5.80

5.75

5.55

NI lamb (17kg)

8.10

8.00

8.05

NI Stag (60kg)

9.00

9.00

11.30

NI Bull (300kg)

5.50

5.45

5.35

NI mutton (20kg)

5.50

5.45

5.15

SI Stag (60kg)

8.85

8.85

11.30

NI Cow (200kg)

4.40

4.40

4.45

SI lamb (17kg)

7.80

7.75

7.95

SI Steer (300kg)

5.65

5.55

5.50

SI mutton (20kg)

5.45

5.45

5.40

SI Bull (300kg)

5.20

5.10

5.30

Export markets (NZ$/kg)

SI Cow (200kg)

4.25

4.10

4.40

UK CKT lamb leg

9.73

9.83

9.08

Slaughter price (NZ$/kg)

Last week Prior week

Last year

Export markets (NZ$/kg) 7.87

7.95

6.67

US domestic 90CL cow

7.36

7.31

7.01

North Island steer slaughter price

6.0

North Island lamb slaughter price

8.5 $/kg CW

US imported 95CL bull

$/kg CW

South Island steer slaughter price

South Island lamb slaughter price

7.5

$/kg CW

Dairy

Jun

Aug 2018-19

Oct

Dec 5-yr ave

Feb

Aug 2018-19

Last year

6.25

Coarse xbred ind.

-

-

3.26

37 micron ewe

-

-

30 micron lamb

-

-

Jun-18

vs 4 weeks ago

485

3.35

Super

313

313

304

4.75

DAP

783

783

750

3120

2920

420

SMP

2425

2455

2530

400

AMF

5620

5830

5900

Butter

4750

4955

5100

Milk Price

6.41

6.41

6.40

$/tonne

3070

Oct-18

Dec-18

Feb-19

Apr-19

Jun-19

WMP FUTURES - VS FOUR WEEKS AGO

$/tonne

3000 2900 Aug

Sep Oct Latest price

Nov

Dec 4 weeks ago

Jan

YTD High

YTD Low

17.48

17.57

10.42

Meridian Energy Limited (NS)

4.97

5.03

3.38

Auckland International Airport Limited

9.6

9.85

7.065

Fisher & Paykel Healthcare Corporation Ltd

16.48

16.69

12.3

Spark New Zealand Limited

3.92

4.18

3.54

Mercury NZ Limited (NS)

4.84

4.84

3.51

Ryman Healthcare Limited

13.09

13.45

10.4

Contact Energy Limited

7.95

8.08

5.82

Mainfreight Limited

42.4

43

29.95

Port of Tauranga Limited (NS)

6.21

6.4

4.9

5pm, close of market, Thursday

Company

Close

YTD High

YTD Low

The a2 Milk Company Limited

17.480

17.570

10.420

Comvita Limited

3.040

5.420

2.920

Delegat Group Limited

12.250

12.500

9.400

3.800

4.850

3.450

Foley Wines Limited

1.790

2.000

1.470

Livestock Improvement Corporation Ltd (NS)

1.060

1.070

0.750

New Zealand King Salmon Investments Ltd

1.910

2.980

1.760

340

PGG Wrightson Limited

0.550

0.580

0.470

320

Sanford Limited (NS)

6.700

7.060

6.350

Scales Corporation Limited

4.590

5.130

4.340

SeaDragon Limited

0.002

0.003

0.001

Seeka Limited

5.200

5.350

4.200

Synlait Milk Limited (NS)

9.690

11.350

8.450

380 360

Aug-18

Oct-18

Dec-18

Feb-19

Apr-19

Jun-19

350

3100

Close

The a2 Milk Company Limited

Listed Agri Shares

WAIKATO PALM KERNEL

3200

Company

Fonterra Shareholders' Fund (NS)

Jun-18

* price as at close of business on Thursday

2800

Aug-18

NZ average (NZ$/t)

Top 10 by Market Cap

440

WMP

Fertiliser 616

CANTERBURY FEED BARLEY Prior week

Aug 2018-19

616

400

320

Apr-19 Jun-19 Sept. 2020

DAIRY FUTURES (US$/T) Last price*

Jun

Urea

360

Nearby contract

Apr 2017-18

Last year

440

6.75

Feb-19

Feb

Prior week

CANTERBURY FEED WHEAT

Oct-18 Dec-18 Sept. 2019

Dec 5-yr ave

Last week

480

Aug-18

Oct

FERTILISER Prior week

$/tonne

$/kg MS

Jun

Last week

7.25

US$/t

Apr 2017-18

Grain

Data provided by

MILK PRICE FUTURES

5.75

7.5 6.5

(NZ$/kg) Apr 2017-18

8.5

6.5

WOOL

Feb

9.5

5.5

5.0

Dec 5-yr ave

South Island stag slaughter price

10.5

5.5

Oct

8.5

11.5

4.5

4.5

9.5

6.5

$/kg CW

$/kg CW

6.0

10.5

6.5

8.5

4.5

Last year

North Island stag slaughter price

11.5

7.5

4.5

5.0

Last week Prior week

7.5

5.5 5.5

Slaughter price (NZ$/kg)

$/kg CW

Slaughter price (NZ$/kg)

Ingrid Usherwood

300

T&G Global Limited

2.700

2.810

2.600

S&P/NZX Primary Sector Equity

16609

17434

15063

S&P/NZX 50 Index

10898

10898

8732

S&P/NZX 10 Index

10686

10686

8280

250 200

Jun-18

S&P/FW PRIMARY SECTOR EQUITY

Aug-18

Oct-18

Dec-18

Feb-19

Apr-19

Jun-19

16609

S&P/NZX 50 INDEX

10898

S&P/NZX 10 INDEX

10686

29

FARMERS WEEKLY – farmersweekly.co.nz – July 29, 2019

5.80

NI SLAUGHTER BULL ( $/KG)

5.50

SI SLAUGHTER BULL ( $/KG)

5.20

HEAVY EWE LAMBS AT STORTFORD LODGE ( $/HD)

165 - 178

Winter takes a holiday NORTH ISLAND

N

ORTHLAND’S bordering on dry for the time of the year. Stock are coming onto a spring market early – animals were held back because of poor grass growth in autumn but people are prepared to top up numbers now grass growth has picked up. Prices for store stock and those going to the works are strong. Prime cattle are fetching $6/kg and about $1200-$1400 for heifers and $1600 to $1800 for steers.

Pukekohe had mild, sunny, calm days last week. Winter seems to have taken a holiday. Outdoor vegetable growers have been able to do whatever was necessary on the land. Some have been busy planting and fertilising crops. Fields of early potatoes are showing vigorous top growth with the absence of cold and strong winds normally expected at this time of year.

Waikato had good weather for the start of calving. Grass has been growing at 40kg DM/ha/day, which is unheard of for July. Usually at this time of year dairy cows are eating grass as well as 3kg to 5kg of supplementary feed a day but some farmers are taking supplements out of their diet and saving them for later.

Farmers are increasingly getting warrants of fitness for their farm effluent systems.

It’s not compulsory but dairy companies are pushing for them. Consultants go onto farms to make sure they are 100% compliant.

In Bay of Plenty Zespri held its annual meeting on Wednesday. It was a pretty quiet affair, indicating growers are content. The chairman’s address focused on sustainability and its importance to Zespri’s customers. On orchards there are a lot of productive canes to tie down on gold vines so growers are hoping for a good crop.

King Country farms could do with a bit more grass. It’s green but we’re told it doesn’t have a lot of guts to it. It was a fine week but there have been days when the fog didn’t lift till lunchtime Farmers are spreading out ewes into lambing paddocks and are inoculating them before lambing – that gives lambs protection too. The vaccine covers pulpy kidney, malignant oedema, tetanus, black disease and blackleg.

Taranaki has been warm with some fog and rain. There’s a bit of mud about but not as much as the province often sees in winter.

East Coast farmers were thrilled to have had a bit of rain last week. The ground feels soaked but year to date there’s been less rain than usual. Lambs are hitting the ground now in warm conditions. Forestry is still pumping away. Last week one ship was being loaded and three more were waiting out in the harbour to get into port. Crop growers will be struggling a bit with cultivation in muddy conditions.

Gisborne’s navel orange harvest is cranking up.

Hawke’s Bay has also had fog and very mild conditions, which is helping the grass grow and the weeds germinate.

Pruning in vineyards is 40% through.

Grape growers are looking for a lift in prices from wineries this year. The

If you love the information you get from these pages, you will love AgriHQ’s livestock reports.

LivestockEye

We create transparency for the industry with these independent, objective reports providing full sale results and informed commentary covering 10 saleyards across NZ that are emailed directly after the sale.

SUN’S OUT: It was a fantastic day at the Feilding sale on Friday.

grower we speak to says the increase in the minimum wage will cost him between $10,000 and $20,000. He says some vineyards with deeper soils have been sold and the vines are being pulled out and replaced with apple trees. For the past 10-15 years they’ve produced grapes suitable for commercial wines but not high quality, reserve grade fruit. The developers of the new apple orchards are using the grape infrastructure. They’re planting dwarf root stock close together and will stretch the branches along wires.

Until last week Manawatu farmers were a bit down in the mouth because of cold, soggy conditions but they’ve been buoyed by warmth and sunshine. It almost feels like spring. Dairy herds are calving. Sheep and beef farmers are happy to see a lift in grass growth and are looking forward to good prices.

Horowhenua vegetable growers can get onto their fields again. They’ve had some good drying weather. They’re harvesting broccoli, cauliflower, celery and leeks.

Wairapara’s been wet, which is pleasing. Warm temperatures are helping grass growth and prices are looking pretty good so farmers are happy but we’re told if they turn their thoughts to politics the Emissions Trading Scheme, Zero Carbon Bill and climate change that brings on a headache. Anyone lambing in this weather will be very happy. Early lambs are well through but other Wairarapa properties are yet to start. There’s a little mud about – just enough so farmers don’t have to worry about it getting too dry.

SOUTH ISLAND Pruning is going well in Nelson and Motueka despite a bit of rain last week.

Most growers are over the halfway point for apples and kiwifruit orchards.

Kiwifruit harvested this year continues to be shipped out. About 20% remains in local cool stores and quality’s holding up well.

A farmer in Marlborough’s had 125mm of rain in the gauge in the past two weeks.

Soil temperatures are at 6C and rising thanks to the unusually mild night and

day temperatures so some good grass is expected soon to set things up nicely for spring. Lambing’s begun on the east coast and in the north of the province. Ewes with twins are being break fed behind hot wires. Ditto for yearlings and twoyear cattle. In vineyards, pruning and trellis maintenance are in full swing. Our contact’s farm overlooks a vineyard and he says while he’s moving his animals on the hills he can hear the Recognised Seasonal Employer workers singing in harmony as they prune in the distance.

Milk tankers are back on the road on the West Coast – not many mind you but a sign the new season’s getting under way.

A dairy farmer are Rununga says calving’s started early. That has been happening for several years and he thinks it could be something to do with shorter gestation genetics slowly creeping into the national herd. It’s not a problem though, unless the cow is away on winter grazing. Conditions have been settled and mild and the ground’s firmed up enough to apply nitrogen to paddocks.

Agricultural work ground to a halt last week while farmers waited for things to dry out in Canterbury. Everyone’s busy planning and budgeting for the year ahead. Our contact, who farms at Hororata, says indications at this stage are that things will remain tight on-farm, particularly given the seemingly constant cost increases he says are coming from Wellington.

South Otago lacks moisture after missing out on last week’s rain storms.

Feed covers are pretty good though, winter feed use has been tremendous and no mud’s been made by stock. The sheep and beef farmer we spoke to in Balclutha says that should keep animal welfare campaigners happy. He’s seen people in a helicopter going over his farm taking photographs. His scanning results are the worst ever, back 10% on last year and that wasn’t a flash year either. He’s blaming the very dry summer conditions.

Like on the West Coast, it’s been mild in Southland. There’s heaps of grass around and calves have started coming early, which has caught a few people off guard.

Courtesy of Radio New Zealand Country Life You can listen to Country Life on RNZ at 9pm every Friday and 7am on Saturday or on podcast at rnz.co.nz/countrylife

Livestock Insight

Every week, we explain the context of the current market situation, drivers which are impacting the livestock markets and what to expect in the coming week.

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NI SLAUGHTER STEER ( $/KG)

DON’T STOP HERE...

30

FARMERS WEEKLY – farmersweekly.co.nz – July 29, 2019

Feeder calves hit 1000 head at Frankton sale Feeder calf numbers have been building through July at Frankton and last Wednesday hit the 1000 head mark.

That tally will continue to climb and to date the supply has been met with good demand, especially for quality calves, PGG Wrightson agent Neil Lyons reported.

Prices reflected the demand and good Friesian bulls made $200-$230 with similar black Hereford-Friesian bulls up to $290-$380 and red $190-$260.

Hereford-Friesian heifers varied from $80-$160 for small and medium types and $180$220 for the better end.

NORTHLAND Wellsford store cattle • Top R2 Hereford-cross steers, sold for $3.17-$3.24/kg • R2 Hereford-Friesian heifers, 320kg, made up to $3.02/kg • R2 Hereford bulls, 477kg, sold for breeding at $1635, $3.43/kg • R1 Hereford heifers, 345kg, fetched $975 • Mixed age Hereford-Friesian cows with Speckle Park calves at foot earned $1270 per unit Another week of favourable weather meant there was another strong sale at WELLSFORD last week. R3 Friesianbeef steers all sold for $2.89-$2.95/kg, with just a small number of lesser-quality Friesian-cross at $2.76/kg.

Most R2 steers sold above $3.00/kg, and R2 beef-cross heifers also strengthened, with most up to $2.90-$2.91/kg.

Heavier autumn-born weaner steers traded at $620-$700, while the lighter end made $565-$580. There was a small number of heifers and Hereford-Friesian, 182kg, sold well at $720.

Kaikohe • Top two-year beef-cross steers sold around $3.00/kg • Top quality yearling Hereford-Friesian heifers, made $3.45/kg • Run-with-bull, Angus-Simmental cows earned $2.20-$2.25/kg There were 500 head at last week’s KAIKOHE sale, PGG Wrightson agent Vaughan Vujcich reported. A highlight was a lift in the yearling cattle market with all types strengthening.

Yearling Simmental steers made $3.48/kg with Angus at $3.35/kg. Beef-cross yearling bulls earned $2.80-$3.10/kg, while same breed heifers sold for $2.85-$3.15/kg. Two-year cattle also sold well, with bulls around $2.75- $2.80/kg and better heifers around $2.85/kg, while medium steers were $2.75-$2.85/kg.

AUCKLAND Pukekohe • Prime cross-bred steers made $2.95/kg • Heavy cows sold for $2.43-$2.50/kg • R1 medium heifers earned up to $755 • Boner cows fetched $1.38-$1.84/kg

There was strong demand for good quality cattle at PUKEKOHE last Saturday, as mild mid-winter weather conditions encourage early restocking. Killable cattle have strong demand as supply tightens. Prices for quality store cattle remain strong, although lesser types are more difficult to move.

Older cattle were very light, with 2-year heifers fetching $2.80-$2.93/kg. R2 heifers returned $3.06-$3.94/kg, with crossbred steers selling for $2.98-$3.01/kg. R1 steers varied with better types up to $930, while lesser-types earned $540-$630.

COUNTIES Tuakau sales • Charolais heifers, 468kg, made $3.02/kg • Prime steers at 735kg earned $3.18/kg • Prime heifers mostly sold for $3.00-$3.08/kg • Top wether lambs fetched $223 About 650 store cattle were yarded at TUAKAU last Thursday and all classes held value, Carrfields Livestock agent Karl Chitham reported. Hereford-Friesian steers, 510kg, made $3.03/kg, with 346kg Hereford-Friesian earning $3.44/kg. Autumn-born weaner steers at 162kg fetched $670 and Friesian bulls, 265kg, $800. In the heifer section, Angus, 340kg, traded at $2.78/kg, while Hereford-Friesian weaner heifers, 158kg, made $600. Prime steer and heifer prices firmed by 10c/kg last Wednesday.

Most heavy steers returned $3.04-$3.08/kg and medium, $2.99-$3.07/kg. Good to medium Friesian cows earned $1.75-$2.12/kg. Heavy prime lambs sold at $185-$212 last Monday, and mediums made $140-$158. Light to medium store lambs returned $88-$95. Heavy ewes, were $166$194, while medium ewes fetched $138-$155 and lighter types sold down to $76.

WAIKATO Frankton cattle • R2 Hereford-cross steers, 462-504kg, returned $3.13-$3.14/kg • R2 Jersey bulls, 258kg, sold well at $1000, $3.88/kg

• R1 Angus heifers, 256-271kg, were well received at $730-$800 • Top prime cows made $2.10-$2.14/kg • Prime steers made good returns with South Devon, 543kg, at $3.11/kg Quality was mixed last Wednesday at FRANKTON with a mainly dairy-beef offering. Light weights were common, although despite this the market held. R2 heifers were mostly on par with the previous sale, with beef types and better dairy-beef selling for $2.90-$3.00/kg. In the R1 pens prices varied with quality, heavier types sold well with Friesian steers, 271kg, earning $745 and Angus-cross bulls, 298kg, trading at $750.

BAY OF PLENTY Rangiuru cattle and sheep • Prime Hereford-Friesian steers, 554-583kg, firmed to $3.04$3.12/kg • Top line of R2 Hereford-Friesian steers, 388kg, reached $3.40/kg • R2 South Devon steers, 407-453kg, sold for $3.19-$3.20/kg • R2 Angus heifers, 337-391kg, fetched $3.12-$3.18/kg • R1 Hereford bulls, 168-201kg, traded at $730-$820 Low supplies and increased demand boosted prices at RANGIURU last Tuesday, with all classes selling on an improved market. Prime prices firmed on the back on low supplies, and Angus heifers, 552-558kg, improved to $3.13-$3.26/kg.

Quality combined with a stronger market meant good returns for R2 cattle and Hereford-Friesian heifers, 360-374kg, firmed to $3.03-$3.08/kg. Renewed strength for R1 cattle meant sellers were rewarded and 220kg Hereford-Friesian bulls reached $720, while similar weighted steers made $790. Heifers of same breeding and 129-142kg sold for $480-$540.

POVERTY BAY Matawhero sheep • Very heavy store ram lambs made an average of $180.50 • Mixed-aged Romney scanned-in-lamb ewes made $198-$224 • Top prime 2th ewes sold for $170-$172 Store lamb numbers lifted to 1697 head last Friday at MATAWHERO. The majority of the yarding was ewe lambs, which eased at the top end with heavy weights earning $135-$164.

Heavy male lambs typically sold in a wide range of $147$175. Prime lamb tallies lifted, and the top end fetched $171-$185 with the balance at $150-$165, while mixed-age ewes mostly earned $144-$160.

HAWKE’S BAY Stortford Lodge prime cattle and sheep • Angus steers, 518-570kg, lifted to $3.11-$3.19/kg • South Devon cows, 586kg, topped their section at $2.44/kg • Very heavy male and ram lambs improved to $173-$210 • Very heavy ewe lambs lifted to $194-$203 • Very good to heavy ewes lifted to $151-$168 A good quality yarding was penned at STORTFORD LODGE last Monday. Angus heifers, 473kg, earned $3.05/ kg, and Angus and Angus-cross cows, 495-579kg, $2.25$2.35/kg.

Mixed sex lambs were mainly medium-good and held at $132-$145, as did good ewe lambs at $134-$146. Ewe throughput lifted and top mixed-age ewes held at $206, as did very heavy types at $150-$182. Good ewes were steady at $139-$141, while medium-good lifted to $130-$136.

Medium types softened to $118-$123. Two-tooth ewes improved and medium-good to good types lifted to $132$157. A small offering of good to very good 2-4 tooth ewes returned $149-$162.

Stortford Lodge store cattle and sheep • R3 traditional steers, 543-567kg, lifted to $3.28-$3.29/kg • R2 Angus steers, 371-434kg, lifted to $3.47-$3.50/kg • R2 Angus heifers, 326-406kg, lifted to $3.03-$3.11/kg • Heavy male lambs held at $160-$184 • Good ewe lambs eased to $153-$160 Cattle prices took an upwards step at STORTFORD LODGE last Wednesday, for a small but quality yarding.

Angus featured and R1 steers, 212-255kg, sold for $890$910, while Angus-Hereford heifers, 212kg, made $815.

Store lamb throughput was higher than expected at just over 4500 head, and prices were mainly steady. Heavy ewe lambs held at $165-$178, while light to medium varied from $90 to $157.

Demand was solid for a small breeding ewe section and mixed-age Romney, scanned 168%, sold for $200, while mixed-age carrying twins and five-year Romney made $177-$182.50.

MANAWATU GOOD DEMAND: A yarding of around 13,500 lambs were simply not enough to go around at Fielding on Friday.

Feilding prime cattle and sheep; feeder calves • 57 in-calf Friesian cows, 473-637kg, sold for $2.37-$2.48/kg

SALE YARD WRAP

FARMERS WEEKLY – farmersweekly.co.nz – July 29, 2019

31

CANTERBURY Canterbury Park cattle and sheep • Top store lambs made an average of $138-$145 • Top prime lambs earned $200-$250 • Prime Angus steers, 533-610kg, sold very well at $2.97-$3.05/kg • Prime Murray Grey heifers, 483kg, fetched $2.92/kg • R1 Angus steers, 230kg, returned $790 There was tighter supply of store lambs last Tuesday at CANTERBURY PARK, although the average price lifted to $132. Prime lambs firmed at the top end, while prime ewes mostly made $130-$177, with very heavy types up to $250.

There was a good yarding of prime cattle, with traditional steers having a strong sale. Heavier HerefordFriesian also sold well, and most were 463-548kg which returned $2.82-$2.92/kg. There was a limited number of store cattle with better quality types selling well. R2 steers, 420-439kg, made $2.95-$2.98/kg. Most of the yarding was R1 cattle and those of good weights all sold above $700.

Coalgate prime and store cattle; all sheep • Prices for the best R2 store cattle topped $3.00/kg • 19 R1 Hereford-Friesian, 203kg, sold for $660, $3.25/kg • Over 60% of the prime lamb tally sold for $190-$222 It was muddy underfoot at COALGATE last Thursday with buyers in a very positive mood. The cattle yarding was 142, split evenly between prime and store cattle. 30 R2 Angus steers from a single vendor proved popular; the best 18 were 381-480kg and sold for $3.08-$3.10/kg with the balance $2.90-$3.06/kg.

Five 706kg prime Hereford steers sold for $3.05/kg, with 660-690kg close behind at $2.96-$2.99/kg. Lambs were thinner on the ground with the best store lambs $144$146 and medium-good steady at $130-$135. The top prime ewes were $210-$222, medium-good $161-$198 and medium $121-$151. Demand was high for the 730 prime lambs; very-good sold for $211-$222 and good $200-$208.

SOUTH-CANTERBURY Temuka prime and boner cattle; all sheep • Heavy store male lambs sold for $153-$184 • Hereford-Friesian steers, 436-703kg, sold at $2.84-$2.91/kg • Boner Friesian cows, 575-655kg, rose 15c/kg to $1.95/kg • Boner Friesian cows, 450-535kg, firmed 12c/kg to $1.82/kg Strong store lamb pricing continued at TEMUKA last Monday, and the lamb tally rose to over 4500 head, boosted by special entries from the Chatham Islands and Ashburton.

Mixed-sex prices were steady to easing, with most at $127-$154. Prime lambs sold on a good market as top lines made $170-$225, and medium $160-$185. The top ewes earned $240-$260, with a quarter of the total tally selling at $160-$200. Boner cows comprised half of the cattle sold, and a premium was paid for better yielding lines across all classes of stock.

STAREDOWN: These weaner Hereford bulls, 168-200kg, sold for $730-$820 at Rangiuru on Tuesday.

• Charolais- cross bull calves made $270-$340 • Good beef-Friesian bull calves fetched $230-$290 Prime cattle attracted a good buying bench at FEILDING last Monday. Better yielding lines sold well, with Angus heifers, 554kg, at $2.94/kg. Ewe throughput was halved at just over 2000 head, in contrast to the high tally seen at the previous sale. Plenty of confidence remains in this market though prices were down; verygood condition ewes dropped to $159-$183, reflecting the quality penned, with good lines easing to $135-$157.

Demand for prime lambs remained high. Very-heavy lambs sold at $188-$235, with heavy lines $166-$183. A good bench of buyers from central North Island attended the first feeder calf sale at Manfeild Park. Medium and good Friesian bull calves made $150-$260, and good beefFriesian heifers, $180-$305.

Feilding store • Traditional R2 steers, 355-560kg, were mainly $3.37-$3.49/kg • Autumn born 1-year Friesian bulls, 460-485kg, went for $3.05$3.10/kg • R1 Friesian bulls, 255-275kg, made $3.19-$3.24/kg • Good two-tooths, SIL 203%, made $242 • Good male store lambs were $164.50-$181.50 Almost 1400 store cattle were well received, with most section either steady or lifting on last week. The R2 steer market was a standout, rarely below $3.30/kg on traditional, with one line of 355kg Angus even reaching $3.63/kg. Some big consignments kept the R2 bulls mainly at $3.00-$3.10kg. Traditional R2 heifers, 375-405kg, were $3.16-$3.25/kg. R1 bulls were out in big numbers,

mainly steady or up by as much as 10c/kg. Traditional R1 heifers, 185-260kg, were $3.63-$3.85/kg, and similar steers mainly $3.79-$3.93/kg, with some up to $4.30/kg. A yarding of around 13,500 lambs were simply not enough to go around. Male lambs were especially strong, with the average price on these calculating out to $165, while the ewe lambs were hardly softer at an average of $157. Most good males were $164.50-$181.50, with the other decent lines around $145-$163. A few top cuts of ewe lambs were $175-$186, but the bulk were $154-$170.50, and the smaller, more medium lines $132.50-$152. Interest was strong on the better in-lamb ewes again, with good twotooths and mixed aged lines at $202-$242. The rest were $170 or lower.

Rongotea cattle • Two-year Shorthorn-beef steers, 452kg, made $2.76/kg • Yearling Hereford-Friesian heifers, 128-204kg, lifted to $3.43$4.20/kg • In-calf Friesian heifers earned $800-$910 • Boner cows, 492-570kg sold for $1.84-$1.89/kg A few days of fine weather brought out a good selection of bigger beef cross steers and heifers, with a lift in prices at RONGOTEA last Wednesday, New Zealand Farmers Livestock agent Darryl Harwood reported. Beef-cross heifers, 352-431kg, sold well at $2.76-$2.78kg with lighter types below this. Autumn born Angus-cross steers, 80135kg made $400-$405, while bulls sold in a range of $295$300. In the calf pens, Friesian bulls earned up to $195, while big Hereford-Friesian fetched $200-$310 and same breed heifers were $170-$210.

Temuka store cattle • Mixed-age 630kg vetted-in-calf Angus cows, to Angus bull made $1390 • R2 beef bulls, 255-340kg, earned $2.80-$2.93/kg • R2 traditional steers, 365-425kg, were bought for $2.91-$2.92/kg There was a medium sized yarding at the TEMUKA store cattle sale last Thursday. A highlight was the vetted-in-calf cows and heifers to mostly same breed bulls. R2 Hereford heifers, 355-425kg, were particularly sought after at $1340$1500, $3.40-$3.77/kg, and a line of 595kg cows making $1570. Standard R2 Hereford-Friesian heifers made $2.77$2.81/kg, while Hereford-Friesian steers made similar money at $2.74-$2.79/kg. R1 steers and heifers made market value depending on type and weight, with heavier types up to $800-$850.

SOUTHLAND Lorneville cattle and sheep • Heavy prime lambs lifted to $164-$191 • Mixed sex two-tooths earned $142-$168 • Prime heifers, 500-550kg, sold for $2.85/kg • R2 traditional steers, 476kg, fetched $3.13/kg • Weaner Hereford-cross bulls, 119kg, made $550 At LORNEVILLE last week light to medium lambs made $120-$159, while two-tooths and local trade rams both softened. Heavy ewes made up to $188, with the balance mostly above $100. Store lambs lifted to $130-$150, with lights and mediums at $100-$125.

The small yarding of prime cattle sold well, with 500kg steers and 450-480kg heifers both at $2.70/kg, while heavier heifers were above this. There was also limited volume of store cattle although these sold well. Charolais-cross and HerefordFriesian, 376-398kg, made $3.00-$3.11/kg, with traditional types above this. R2 Hereford-Friesian heifers, 395-408kg, ranged from $2.72/kg up to $2.84/kg.

Markets

32 FARMERS WEEKLY – farmersweekly.co.nz – July 29, 2019 NI SLAUGHTER LAMB

SI SLAUGHTER STEER

SI SLAUGHTER LAMB

($/KG)

($/KG)

AUT. BORN 1-YEAR FRIESIAN BULLS, 460-485KG, AT FEILDING

($/KG)

($/KG)

8.10

5.65

7.80

3.05 - 3.10

$3.12-$3.18/kg high $290-$380 Hereford-Friesian R2 Angus heifers, 337lights Good bull calves at Frankton 391kg, at Rangiuru Feeder Calf Sale

Calf sale interest rising Colin Williscroft colin.williscroft@globalhq.co.nz

C

ALF sales in the North Island are beginning to attract good numbers of stock with about 1100 yarded at Frankton last

week.

NZ Farmers Livestock agent Stu Wells said that was more than double the number at Frankton’s combined PGG Wrightson/NZ Farmers Livestock sale a week earlier.

Calves at the top end of the Friesian market are attracting a couple of hundred dollars while interest in beef calves is strong, with the better end selling for between $330 and $350 and the mid end $250 to $280 for a five to six-day-old calf.

Wells expects this week’s Frankton sale to attract about 1400 calves as calving numbers in Waikato begin to peak.

He is not aware of any concern about Mycoplasma bovis among either buyers or sellers, saying most people have got their head around it better this year than last.

Further down the island, where calving is slightly later, the calf sale season began at Manfeild Park last week.

PGG Wrightson agent Pete Forrest said there were just over 200 calves yarded at Monday’s sale, with another 132 on Thursday.

Good Friesian bulls at the earlier sale went for between $220 and $260 while better Charolais-cross bulls were $270 to $340, Hereford/Friesian bulls $270 to $290 and Angus/Friesian bulls $270 to $290.

The sale attracted a good bench of buyers from the central North Island with some of the top calves two to three weeks old.

As expected, Thursday’s Manfeild sale was smaller in numbers and the size of the buyer bench.

Friesian bull prices eased slightly from Monday to $185 to $210 for the top pens.

Beef bull sales were solid with the top Hereford/Friesian calves selling

SELLING: PGG Wrightson agents Andrew Leggett and Pete Forrest chalk up another sale at Manfeild last week.

The sale attracted a good bench of buyers from the central North Island with some of the top calves two to three weeks old.

for $280 to $335 with Angus crosses $220 to $230.

Beef heifers were $200 to $255 for good Hereford-Friesian while the best Angus crosses were $200 to $240.

It is still too early to predict how the central North Island calf market will pan out this year as last week’s sales were the first of the season but at this stage it looks to be similar to last year, Forrest said.

GET IN QUICK: PGG Wrightson agent Pete Forrest takes another bid during one of last week’s Manfeild Park calf sales.

ACROSS THE RAILS SUZ BREMNER

Early arrivals of annual draft Angus cattle WINTER months tend to be plagued with small lines of all sorts of cattle but as spring draws closer and there is light at the end of the winter tunnel sellers start to put thought towards offloading their annual draft lines. Annual drafts are those sold from the same property at the same time each year. For some farmers it can be their one big cattle offload for the year so is a very significant event on farming calendars.

It still feels a bit early but we are starting to see some of these annual cattle, more specifically big, traditional lines rolling into North Island yards. August is typically the time when they make an appearance but both Feilding and Stortford Lodge have jumped the queue and sellers are already being well-rewarded.

The spring cattle market is already shaping up to be a good one for R2 cattle as strong overseas demand flows right down to grassroots level where $6/kg CW is already a reality for export steer and local trade and is expected to push higher. That means demand for short-term steers and heifers is evenly matched and early prices seen at Feilding and Stortford Lodge are at or above 2018 and easily flying five-year averages. At Feilding on Friday July 19 the average price for a 410470kg Angus steer lifted to $3.25/kg while heifers of same breeding and weight trailed by only 8c/kg LW. Feilding PGG Wrightson agent Maurice Stewart believes the cattle are coming in earlier as buyers are simply taking advantage of an already strong market.

“We never know what spring might bring and so it makes sense to offload now when supply is low but the prices are already at perceived spring levels.”

However, he does not expect to see much let-up in prices. “Some schedules are already at the $6/kg CW level and expected to go higher so it stands to reason that the short-term store market will stay strong.”

Stortford Lodge really set the cat amongst the pigeons last Wednesday as the early prices matched those seen at August 2018 events. R2 Angus steers, 370-430kg, reached $3.47-$3.50/kg while heifers, 330410kg, made $3.03-$3.11/kg. From a seller’s point of view there is little to be gained from holding onto these cattle for those extra few weeks when prices are already very strong and space can be freed up on-farm to better grow out the younger stock or make room for spring’s new arrivals. suz.bremner@globalhq.co.nz

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