Fonterra puts spring in farmers’ step
Gerald Piddock and Hugh Stringleman MARKETS Fonterra
FONTERRA chair Peter McBride says the cooperative’s strong result for the 2024 financial year is the culmination of a lot of effort and hard work from its senior leadership team.
It posted a $1.128 billion profit after tax, announced a 55 cent per share dividend and lifted its forecast milk price for the 20242025 season by 50 cents to a new midpoint range of $9/kg MS.
Farmers have been doing it tough over the past couple of years and in some cases struggling to break even, McBride said.
There’s a couple of years’ catch-up that I think farmers are looking forward to.
Miles Hurrell Fonterra
“We’re really pleased to announce these results.”
Fonterra chief executive Miles Hurrell said it has been a strong year that maintained the strong momentum seen in 2023.
It also shows how much Fonterra has recovered from 2018, when it posted a $196 million loss.
Asked if he and the rest of the senior management team had reflected on the turnaround in performance, Hurrell said they are always looking forward to the next long-term target.
“We’re now looking at 2027-2029 – that’s where our heads are at.” Looking back, he said, they were doing it tough back in 2018 and were forced by circumstances to simplify the business and get back to its core functions.
“The purpose in what we stand for and the fact that we are a cooperative resonates. Our people in all parts of the world know we’re a co-operative and everything they do trickles back to rural NZ and a small town somewhere – that means something.”
The 55 cents per share total dividend comprises of a 15 cent interim and 25 cent final dividend and 15 cent special dividend.
Hurrell said the special dividend came from capital management efficiency and ongoing balance sheet strength.
The final milk price for 20232024 was $7.83/kg MS, the fourth biggest in Fonterra’s history, but below those of the two previous seasons.
The total payout for a fully shared-up farmers was $8.38/kg MS, close to the break-even level for farming operations.
The 50 cent lift in the forecast for the current season included a
Continued page 3
Giving prisoners keys to a better life
Tongariro Prison has a successful on-farm programme, led by Luan Kloppers and Claire Goddard, that is helping to put men on a better path.
NEWS 11
SECTORFOCUS
New UAE trade deal unlocks tariff-free access for 98.5% of exports.
NEWS 3
Photo: Sarah Horrocks – AngusPRO
Every day is a farm ‘open day’
Alastair and Ann Reeves welcome visitors to their Te Akau farm, reasoning that if they want a premium for their product, customers should see how it is made.
SHEEP & BEEF 18-22
Sheepmeat exporters risk being unable to cash in on new markets.
NEWS 4
Phil Weir argues for refreshed strategy and new ways to co-operate.
OPINION 15
EDITORIAL
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News in brief Bumper crop
It has been a bumper year for kiwifruit, with export values up 20% to $3.1 billion in the year ended August 2024, according to Stats NZ.
That’s an increase of $524 million when compared with the year ended August 2023. Gold kiwifruit exports were $2.4bn, up $45m (24%) and Green kiwifruit exports were $737m, up $67m (9.9%) over the same period.
Wallaby sighting
Environment Southland is investigating a possible wallaby sighting near Te Anau after a contractor identified possible wallaby scat and a detector dog found the potential presence of an animal in the area.
Environment Southland said a wallaby has, however, not been confirmed by a professional sighting.
Salmon growth
NZ King Salmon has reported a solid result for the first six months of the 2024 financial year, lifting sales volume and revenue with a $6 million profit, compared with $10.6m in the previous corresponding period.
Chair Mark Dewdney said there was a steady performance with its new fish farming approach. The first-half earnings were $13.5m compared with $10.7m and the full-year guidance range has been trimmed from $26-$32m to $26-$30m.
Improving genetics
LIC is to collaborate with Scandinavian breeding co-operative VikingGenetics to improve the genetic links between New Zealand and Nordic Jersey cattle populations.
The two breeding companies will work together on a pilot project that will bridge the genetic strengths of the two regions’ dairy industries. This involves exchanging sexed semen, which allows LIC and VikingGenetics to identify new high performing bloodlines.
NZ’s speedy UAE deal trumps Aussie pact
NNigel Stirling MARKETS Trade
EW ZEALAND has concluded a free trade agreement with the United Arab Emirates in record time and on better terms than Australia, which announced its own deal with the oil-rich state earlier this month.
Trade Minister Todd McClay said tariffs on 98.5% of exports to the UAE would be eliminated on the agreement’s commencement, and on 99% of exports within three years.
McClay told Farmers Weekly it was a good deal for NZ’s farmers.
“Everything that farmers sell will be tariff-free on entry into force except for chicken, which will transition [to tariff-free] within three years.”
The UAE is one of NZ’s largest Middle Eastern markets, and in NZ’s top 20 export markets overall.
In the year to June two-way trade was worth $1.3 billion, with $718 million of NZ dairy exports making up the largest part.
While the country’s tariffs
Continued from page 3
new range of $8.25-$9.75/kg MS. Its forecast earnings for the current season are 40-60 cents a share, reflecting an expectation it will maintain strong margins in all three of its sales channels, Hurrell said.
The midpoint is second only to the 2021 payout of $9.30/kg MS.
Earnings per share from continuing operations were 70c, an aggregate before interest and tax (EBIT) of $1.56bn, down from $1.75bn the year before. Net debt at balance date was $2.6bn, now only half what it was five years ago.
Hurrell said he has had “plenty”
DEAL: Trade Minister Todd McClay (pictured centre right) says the deal with UAE came together in record
are not high by international standards, it is a market with untapped potential, with high oil revenues and earnings from its overseas investments combining to make it the 19th wealthiest economy in the world per capita.
McClay said sheep farmers should see some benefits from the agreement.
“The UAE is a large lamb market but we don’t sell a lot up there but other countries do.
“So we have levelled the playing
of feedback so far on the new forecast via texts and messages from farmers.
“The phone’s been ringing a lot this morning and it’s been well received. We’ve come off the back of a couple of tough years behind the farmgate where we struggled to break even and it will be very welcomed.
“I think there’s some capital expenditure that farmers haven’t been able to invest in the last couple of years so while it’s a fantastic number, there’s a couple of years’ catch-up that I think farmers are looking forward to.”
McBride was more circumspect, saying while the $9 forecast helped, a $9 payout today was not
field to make Kiwi farmers more competitive.”
Red meat exports to the UAE totalled $47m in 2023, making it the industry’s second-largest Middle Eastern buyer after Saudi Arabia.
Currently exports of chilled beef and lamb can enter the UAE without paying tariffs, but frozen lamb cannot.
The deal will put NZ red meat exports on a level-playing field with Australia, which recently
the same as a similar forecast a few years ago.
He pointed out that farmers are still facing high costs around interest rates, fertiliser and labour.
“All of those inputs have been pretty much out of control over the last three years. That’s starting to abate now, so farmers margins are starting to improve again.
“I think it takes us a long way in the right direction. I think farmers will be pleased with the announcement and pleased with our advanced rate – cash flow’s really important. I think it’s really positive, but we have to put it in perspective.”
MORE: See page 4
announced its own free trade agreement with the UAE.
Australia so far this year has exported 17,600 tonnes of sheepmeat to the UAE, 9300t of beef, and 33t of goat meat. Under its agreement with the UAE all of its red meat exports will enter the market tariff-free.
Taking just four months to negotiate, the deal came together in record time, McClay said, and faster than the 12 months it took the Australians.
Everything farmers sell will be tariff-free except for chicken, which will transition [to tariff-free] within three years.
Todd McClay Trade Minister
“I have not seen much detail of the Australian agreement but we certainly have been able to negotiate it faster and from what I understand when ours enters into force it liberalises trade a lot more quickly.”
Dairy Companies Association executive director Kimberly Crewther said she had yet to see the details of Australia’s agreement with the UAE and could not confirm whether tariffs on its exports would be phased out over a longer timeframe than NZ’s. Notwithstanding the competitive position with Australian rivals, Crewther said it is a good deal for NZ dairy exporters with tariffs of 5%, costing up to $34m annually based on current trade, due to be eliminated on the agreement’s commencement.
Lamb shortage may thwart export expansion
NEW Zealand sheepmeat exporters run the risk of being unable to capitalise on any new export markets as they simply won’t have the product.
AgriHQ senior analyst Mel Croad told the Farmers Weekly In Focus podcast that the latest statistics show the sheep population has continued to decline with no sign of slowing the trend.
“We’re forecasting the lamb slaughter for export to drop below 17 million head for the first time ever,” she said.
“That’s on the basis that our lamb crop has dropped below 20 million head for the first time ever, and all of this is driven by a significant decline in breeding ewe numbers that just continues to gather momentum.
“There seems to be nothing out there to encourage even a stall in the decline. In the last 10 to 12 years we’ve lost six million breeding ewes from New Zealand.”
The past few seasons have seen good returns for sheepmeat, but that has been driven by factors
that would probably not arise again – the covid-19 pandemic and China’s insatiable appetite for protein following the spread of African swine fever.
Croad said that differences between some of the national datasets are also making things difficult for processors and exporters.
“We’ve knocked 500,000 breeding ewes out of the system just in the last few months, based on a revision of one report to the next.
“We’re now going into this new season, which starts in a week, and we’re saying to the industry there’s going to be a million fewer lambs for processing this season.
“How can the industry cope with that, and how can they move to offset the impacts of suddenly discovering there’s a million less lambs in the system?”
Signals from global markets indicate there’s still good demand for sheepmeat and that it will intensify in the future, but Croad said we’re not in any position to capture that value.
“In August, we exported 12,000 tonnes of lamb, the second lowest volume in nearly 30 years.
“So if there are other markets that are untapped we have to ask, have we actually got the supply based on the sheep numbers we’ve got now?
“Can we actually physically look after new markets and expect prices to rise?
“For us to be able to fully
Expect ‘more than a tweak’ from Fonterra review
Gerald Piddock NEWS Fonterra
‘MORE than a tweak but not radical,” is how Fonterra CEO Miles Hurrell describes the next update of the co-operative’s strategic review, which will be announced today.
A “flavour” of where the co-operative is heading is detectable in recent investments in upgrades to some of Fonterra’s plants, he said, speaking at the announcement of the co-operative’s annual result for the 2023-2024 season.
“When we decided to have a look at the consumer business, we told the market we would come out and talk about what our business would look like. We will announce that on Monday.”
Hurrell said it is focused on Fonterra’s strengths – the core business-to-business aspect – and doubling down on that.
“We believe our ingredients and food service has a better future for this co-operative [than consumer], so we don’t shy away from the fact that we have had a very strong performance – it’s still not at the levels we would like to see over the long term.”
Fonterra completed a strategic review earlier this year that reinforced the role of its foodservice and ingredients businesses.
It led to an announcement in May that it is exploring divestment options for its global consumer business, as well as Fonterra Oceania and Sri Lanka.
We said we would come out and talk about what our business would look like. We will announce that on Monday.
Miles Hurrell Fonterra
The process is going as expected and the three investments announced in recent months support the strategy.
He said it is too early to say if any sales of the consumer business will lead to another capital return and Fonterra is still working to a
12-18 month timeframe for the review.
He was tight-lipped as to how far through the review Fonterra is, except to say it has appointed advisers.
“It’s about making sure we deliver on the business plans that we have set out there and hopefully the results today show we are well underway in that regard.”
After today’s update, the next update could be at Fonterra’s annual meeting at New Plymouth in November.
But even at that stage, he said, it is highly unlikely Fonterra will be in a selling position for any of its brands.
In August, we exported 12,000 tonnes of lamb, the second lowest volume in nearly 30 years.
Mel Croad AgriHQ
that, we would have to have better returns to encourage and foster that rebuild.”
Some hard questions need to be asked about how we process and market sheepmeat and what story is told when exporting it, Croad said.
capitalise on what could be a massive opportunity in India, we would need to see livestock numbers being rebuilt and to do
“We put our heart and soul into producing quality lamb for our export markets. We’re doing everything at our end but we need to remind markets about the value of lamb to ensure that we are maximising returns for both farmers and processors.”
• Listen to Farmers Weekly In Focus wherever you get your podcasts.
Co-op confident about China bounce-back
Gerald Piddock MARKETS Trade
FONTERRA is confident that demand from its all-important China market is improving despite import demand being hit by its prioritisation of domestic milk supply.
Speaking at the announcement of the cooperative’s annual result for the 2023-2024 season Fonterra chair Peter McBride said it felt like Fonterra was on the up in China, particularly in the past few months.
There is downward pressure on the Chinese milk supply and some potentially aged inventory, particularly in WMP.
“We’re feeling a lot better about demand from China.”
Chief executive Miles Hurrell said there had been lots of discussions on how it could boost its presence in China.
Fonterra’s foodservice business is the “jewel in the crown” in that market and is
growing despite its economy being in a tough position.
“We’re seeing most sectors really entrenching across China – except the food category, we’re still seeing that food category grow.
“Our model in China has been successful and I’m confident it will be going forward as well.”
Hurrell said the surplus of domestically produced milk had suppressed the milk price over the past few years because it reduced demand for dairy powder imports.
“We’re seeing the end of that, we’re starting to see those stocks start to move out now both in the domestic market and also exported to other countries.”
Chinese milk production has also been falling since the price local farmers were paid fell below the cost of production. Farmers are also culling their animals.
“We believe we’re through the worst of that and that’s been reflected in the last few GDTs where there’s been some good demand comeback.”
Making more of milk nets global dairy prize
AFOOD scientist’s research looking at the digestive effects of milk could pave the way for tailored, added-value dairy products.
The work by Riddet Institute post-doctoral researcher Natalie Ahlborn looked at processed milk and its effects on digestion and nutrient absorption, as part of the Ministry of Business, Innovation and Employment-funded New Zealand Milk Means More research programme at the Riddet Institute, based at Massey University in Palmerston North.
Ahlborn said there is a lot of value in milk.
“It’s a really great source of nutrition and really milk is one of the very few food sources that we consume that exists with the sole purpose of providing nutrition for mammals.
“We already have this amazing product and if we can figure out how to harness that, and really get the most out of it and then apply that product to the person who needs it the most, that’s really
where we get the most value out of it.”
Pasteurisation, UHT treatment and homogenisation are commonly used to process milk, but Ahlborn wanted to know what these treatments meant for digestion and nutrient uptake.
She examined milk nutrient digestion and absorption in the gastrointestinal tract, finding that the protein in UHT milk was digested the fastest, followed by the protein in pasteurised homogenised milk, then pasteurised non-homogenised and, finally, raw milk.
Curd formation and stomach emptying of solid matter and lipids were also measured. There were substantial differences in digestion of the fats and solid portions of the milks.
The research has created a fundamental understanding of how processing affects the gastric digestion of milk protein, and how this might contribute to milk’s nutritional outcomes.
Ahlborn said what initially got her interested as an undergraduate was why some people have issues digesting milk proteins.
While the structures of proteins, fats and other micronutrients
are changed when heated or homogenized, no one had ever really gone and looked at what that means for our digestion.
“For a very, very long time, it was just generally assumed that because these milks still have the exact same nutritional composition, they’ll have the same amount of fat, the same amount of protein and we would have the exact same nutritional outcome from them.
“But what that doesn’t consider is the effect of the milk nutrients’ structure. That’s kind of where my work comes in – trying to figure out what these changes to the milk proteins and the milk fat mean for our digestion and absorption and the long term of that has been the health outcomes associated with that.”
It could also help lead to scientists having a wider understanding of the digestion and absorption of milk’s micronutrients, she said.
For example, the calcium in milk is attached to milk’s protein and until that wider understanding is achieved, it is hard to be able to pinpoint exactly what is occurring with this mineral.
Her research was been
recognised with Ahlborn winning second prize in the International Dairy Federation Professor Pavel Jelen Early Career Scientist Prize for scientists who gained their highest degrees three years ago or less.
Ahlborn will receive a printed
SUCCESS: Riddet Institute post-doctoral researcher Natalie Ahlborn came second in the International Dairy Federation Professor Pavel Jelen Early Career Scientist Prize for her work looking at processed milk and its effects on digestion and nutrient absorption.
certificate recognising the achievement and an honorarium of €200 (NZ$360). She will attend the IDF World Dairy Summit 2024 to be held in Paris, France, from October 15 to 18 2024 to collect her award and present her research.
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Serving up a tasty dish of lamb and beef
YOUNG Britons don’t eat Sunday lamb roasts like their parents do, and Alliance Group is finding ways to connect to that younger generation.
Those young people do, however, eat koftas, pies and nibbles. They go to pubs, football games, concerts, a percentage enjoy white-tablecloth fine dining and they buy food online.
Alliance Group’s UK and Europe manager Helen Scott said retail remains an extremely important market for lamb, but consumer trends are shifting and exporters like Alliance have to adapt, which it is trying to do by adding value.
“Retail is very important to us as it is to all red meat companies, but we are also looking to create value by targeting food service, hospitality and online sales.”
Alliance has employed Matt Owens as head of culinary, and it is his job to create new products from Alliance’s Pure South, Lumina lamb and Handpicked aged beef ranges and to also work with chefs, hospitality and food service outlets.
This involves finding flavours for pie fillings, burgers and koftas and, potentially, creating new lamb or beef dishes, such as in tortellini pasta, dim sims, pizza topping or lamb and prawns in an Asian broth.
“I’m lucky I know a lot of people who have a lot of ideas and we are close to London City and some of the best restaurants in the world,” said Owens.
Scott said this new product focus and Owens’s culinary skills contributed to Alliance supplying meat and meat products to the New Zealand team and supporters at the Birmingham Commonwealth Games and at NZ House during the recent Paris Olympics.
Alliance lamb and beef products are also supplied to corporate fans at Premier League football side Tottenham Hotspur’s newly owned 62,000-seat Tottenham Hotspur Stadium.
A typical game will see 8000 burgers and 6000 koftas eaten.
Scott said the stadium is also hosting an American Football League match and a concert by Beyoncé at which Alliance products will be sold.
The company that runs hospitality at Tottenham operates a further five stadiums that now serve Alliance products.
Scott said the new range also features on menus, from pubs to high-end hotels in the UK, Europe and the Gulf States, where it is served alongside beverages, room service and at conferences.
Scott said Alliance is also
targeting high-end restaurants with its Lumina lamb, which is now on the menus of Michelin star-rated restaurants in the UK and Dubai.
These are small but important steps that Alliance needs to take.
“This is the future for NZ farmers, creating value,” she said.
“We are a sheep, beef and venison red meat co-operative and we’re proud of it, but we are also a culinary food supplier and that is how we are attracting younger consumers.”
Scott said Owens’s extensive contact network from a career work in the culinary industry and as a former chair of the 139-yearold Craft Guild of Chefs, has been crucial in getting a foot in the door of potential clients, but also getting them to try new or existing products.
A commercial kitchen has been built at Alliance’s appropriately named Shepherdess Walk offices in central London, at which Owens can experiment with products, network with other chefs or brainstorm new ideas, and where the company can host potential customers.
Once a product has been developed it still needs to satisfy commercial and market criteria.
For example, the super yacht industry is a new potential market but will have to satisfy logistic as well as financial criteria.
“We’re very specific – we have to be – and that means we won’t be seen everywhere,” said Scott.
Nearly a third of UK transactions are conducted online and Scott said its Silere lamb range is resonating with young consumers and has an exceptionally high fivestar satisfaction rating lodged by customers.
She said consumers relish the story behind Silere lamb, which is told in online marketing.
“It’s the high-spend consumer that is buying Silere. It targets a new consumer.”
The NZ-UK free trade agreement has opened access for NZ beef. Scott said products have been
MEETING the MARKET
7 COUNTRIES IN 6 WEEKS
successfully received, in part due to NZ’s existing reputation for lamb but also due to its quality.
The first shipment sold out within a week, she said, with Alliance’s hand-picked, aged product proving especially popular.
Scott acknowledges NZ sheep farmers are having a tough time but has some encouraging words.
“We are very optimistic with lamb and beef here in the UK. Protein consumption is high and it is growing.”
• Wallace is visiting seven countries in six weeks to report on market sentiment, a trip made possible with grants from Fonterra, Silver Fern Farms, Alliance, Beef + Lamb NZ, NZ Meat Industry Association and Rabobank.
Peace and politics on a famous Welsh farm
UK farmer Gareth Wyn Jones’s enormous social media following gives him the clout to advocate for the sector he loves. Neal Wallace reports from
HE HAS been dubbed the United Kingdom’s favourite farmer, but Gareth Wyn Jones still does a double take at the size of his social media following.
Three Facebook videos of the North Wales farmer working with sheep attracted 710 million, 687 million and 137 million views respectively. He has 2.5 million followers on YouTube, 350,000 on Facebook, 133,600 on Tik Tok and a relatively sedate 67,000 on X (formerly Twitter).
He also fronts television news stories about farming and has made documentaries, including one where he visited Welsh farmers who had moved to New Zealand chasing better opportunities.
It is a powerful tool that the fearlessly outspoken and proud Llanfairfrechan farmer uses to promote his beloved farming sector by highlighting the issues it faces and challenging those he believes unreasonably attack it.
MEETING the MARKET
7 COUNT RIES IN 6 WEEKS
vegan animal rights activist Joey Carbstrong riles him to the point where he calls him “little Joey”.
A few years ago Wyn Jones invited a vegan and animal rights activist who was campaigning against shearing sheep onto the farm.
A civilised conversation ensured – all relayed on social media – but even at the end she refused to touch a fleece.
UK media turn to Wyn Jones as the go-to voice of farming on issues affecting the sector.
He has debated decisions by universities not to serve animal protein in their colleges,
His motives are altruistic but there is an element of self-interest.
“It’s always about telling a story so there is a future for my three children on the land, so they can make a living.”
He is using social media to create an environment for the next generation of UK farmers.,
His is a vehicle that can have a doubleedged sword.
A video last spring of him skinning a dead lamb – so he could put the pelt on an orphaned lamb to re-mother it – went viral but resulted in multiple death threats by animal welfare activists.
Police investigated and security was increased at the coastal property.
“It was lunacy. You couldn’t make this up,” Wyn Jones said.
Wyn Jones prefers to engage with critics of farming, to try to reason and provide some understanding and balance, an approach he concedes can at times be a lost cause.
Vegans, animal rights activists and politicians are all fair game, but not for him to bully and demean, although he concedes
severing the link between farmers and consumers and therefore an understanding of how food is produced.
Food that was once available seasonally is now stocked year-round, which removes the mystique and the appreciation of the effort required to produce it.
It becomes just another plum, tomato, strawberry or raspberry, said Wyn Jones.
“People don’t know what the first strawberry or the first tomato of the season tastes like. They get fed this mass-produced food.”
They also no longer appreciate the value of food, with a third of all food produced globally being wasted.
“It makes no sense, how society has been removed from how food is produced.”
While prepared to confront those who attack food producers, Wyn Jones will praise those who help.
Some years ago he was at a festival attended by the then Prince Charles. It was obvious to Wyn Jones that the Prince’s minders were wary of the Welsh farmer, perhaps considering him too outspoken and blunt, so kept the future king well away.
Undeterred and definitely not intimidated, Wyn Jones spied an opening and strode up to the Prince shook his hand and said: “I am not a royalist, but I really appreciate everything you are doing for the countryside.”
Prince Charles was quickly shuffled away by his minders, but the two later had a further conversation.
If you’re honest, even if you disagree, you are more likely to find solutions to problems.
Gareth Wyn Jones Llanfairfechan
Trees should be planted in the right place and hedgerows nurtured and managed, but he said the contribution of livestock in the carbon cycle should be acknowledged. He argues that livestock eat vegetation which then sequesters carbon into the soil as it regrows, while also providing nutrientdense food, employment and underpinning rural communities.
“What I produce is top quality lamb and beef in a sustainable way,” he said.
“This is sheep and cattle country, that is all it can produce. I could not get a combine onto this land, it’s far too steep.”
Farmers were guilty of overgrazing in the 1970s and 1980s, encouraged to do so by government headage payments, but Wyn Jones argues that going by the extent with which livestock numbers have fallen, the opposite could be the case now.
He has debated the future of agriculture at the Oxford Union with journalist and farming critic George Monbiot but says former rock star, Queen guitarist Brian May, an outspoken ally of badgers, will not debate with him the role of badgers in spreading bovine tuberculosis and the impact on farmers.
and the National Trust, which governs the UK’s historic and protected sites, to make half their menus in their cafes and restaurants vegetarian.
Making a case is who Wyn Jones is.
“I have never been a bloke not to walk through a door that is half-open or closed. I always walk through it, I like to look at the challenges, I’m inquisitive.”
He constantly seeks solutions to problems, saying a resolution will never be achieved if people are not honest and refuse to talk to each other.
“If you’re honest, even if you disagree, you are more likely to find solutions to problems,” he says.
And that is where politicians frustrate him. They seldom give a straight answer, he said.
Integrity and honesty are values he rates highly, illustrated by fronting up and conceding to his millions of followers when he got something wrong.
Wyn Jones believes many of the problems facing farmers are the result of supermarkets and government policy
“The guy was cool,” said Wyn Jones, and deserves praise for what he is doing for farmers, running several properties and promoting British produce.
Wyn Jones has met numerous politicians and said he tells it as he sees it.
Given 15 minutes with former prime minister Rishi Sunak, he gave him both barrels about the sorry plight of farmers. Given a similar opportunity to talk to the Welsh Parliament, he didn’t hold back, lambasting their plans to plant 10% of Wales in trees and allowing 15% to revert to natural habitat.
The net effect, he said, is that 20% of farms will be out of business.
Still to meet new UK Prime Minister Sir Keir Starmer, Wyn Jones has specific concerns about the impact of possible tax changes on farm succession and the management of bovine tuberculosis.
“We have to protect our livelihoods or there will be nothing for the next generation wanting to get onto the land,” he said.
Wyn Jones believes government policy has created an imbalance in favour of sequestering carbon and against the production of affordable food and which totally ignores the role of livestock.
A UK issue, it has become personal for Wyn Jones, with a close friend forced to sell his farm after his 180 cows were slaughtered due to an outbreak of the disease.
The farm was a disease hot spot, costing him £30,000 ($64,000) a month, and he could not get rid of it.
Wyn Jones wants a scientific approach with badgers tested for the disease so those infected can be culled instead of the end recipient.
As badger numbers have exploded, Wyn Jones said, the number of hedgehogs and ground birds on his farm has plummeted, preyed on by the native Mustelidae.
The Wyn Jones family have been on the Llanfairfechan farm for 375 years and he is motivated to ensure his ancestors can be there for another 375 years and more. It is getting tough.
The average age of farmers in the UK is 67 and getting a start on the land is difficult – and could become even more so if the Labour government fulfils a promise to change inheritance tax rules, which will make succession more costly.
Where once there were 15,000 sheep grazing the wider Llanfairfechan area, Wyn Jones said there are about 9000 today Gareth and Rhian are both passionate about the Welsh language and the history of their community.
That includes helping manage a herd of rare Carneddau ponies, of which there are just 220 breeding mares left.
Since Celtic times they have roamed the 11,000 hectare Carneddau mountains, a vast national park that borders the Wyn Jones farm.
Ancient neolithic axe heads discovered in Europe were found to have come from his Llanfairfechan farm up to 6000 years ago.
Wyn Jones has discovered buildings on the Carneddau mountains dating back hundreds if not thousands of years.
His social media role is a seven-day a week business, attracting product endorsements and requiring a support network that includes Rhian, content manager Dewi Jones and two of their three children, Sior and Mari. They have a second son, Rolant. They are also diversifying.
Their farm hosts weekly immersive tourism for much of the year. That includes working sheep dog displays and giving tourists a hands-on involvement in farm activities.
“It’s culturally not just a farm tour, it’s telling our story and engaging people in everything that we do here,” he said.
The 240ha home farm is still part of a family company formed by his grandfather, who had five sons.
The company owns 600ha and rents another 200ha split between three blocks, on which they run 4000 sheep, 120 cows, including single suckers, and another 340 cattle.
The predominantly Limousin breed is being shifted to Hereford, which he said suits the country.
They finish stock and grow silage.
Wyn Jones said the farm is a perfect foil for the intensity of his media work, but increasingly his public profile means people
FARMHOUSE: The Wyn Jones farmhouse at Llanfairfechan in North Wales.
with major challenges reach out to him for help and advice.
Mental health is a huge issue among UK farmers and Wyn Jones has dealt with several who have found themselves struggling to cope financially or mentally.
He directs them to services that can assist, but it provides a further reminder of the many challenges facing the sector he loves.
Wyn Jones finds solace in getting out on the farm which he says is defined perfectly in a Welsh proverb: Lle i enaid gael llonydd – a place for the soul to find peace.
• Wallace is visiting seven countries in six weeks to report on market sentiment, a trip made possible with grants from Fonterra, Silver Fern Farms, Alliance, Beef + Lamb NZ, NZ Meat Industry Association and Rabobank.
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Yearling bull lots notch good clearance rates
Hugh Stringleman MARKETS
Livestock
BREEDERS of service bulls for the dairy industry have had strong demand for their yearling bull offerings, achieving high clearance rates.
Top price so far this selling season has been $30,000 paid for Stokman Resilient U295, within a complete clearance of 114 bulls by Stokman Angus.
Bushy Downs Herefords, Te Awamutu, made $20,000 with Bushy Downs Irish 23297, paid by a commercial farmer.
There was a full clearance of 30 yearling bulls averaging $4950 and of 69 two-year bulls averaging $4400, with a top of $6000.
Ardo Ezicalve Herefords, Marton, had full clearances of 90 yearling bulls and 36 two-yearolds, averaging $3400 and $2750 respectively.
The top price was Lot 5, Ardo McLaren 3267, bought by Riverton Herefords for $6500.
Maungahina Herefords and Speckle Parks, Masterton, had a full clearance of 18 Hereford
yearlings and 17 Speckle Park bulls.
The average price paid for Herefords was $3300 and for SPs $4200, with a top of $5500 for Lot 31, Speckle Park U255.
Hallmark Angus, Tutira, Hawke’s Bay, sold a top price of $9500 to Oregon Angus with a Turihaua Eastern Star son.
The yearling bull catalogue of 40 bulls sold 39 and averaged $4548.
Black Bear Angus, Rotorua, had a full clearance of 33 yearling bulls, averaging $2440, with a top price of $3000 made twice.
Riverton Ezicalve Herefords, Whanganui, had a complete clearance of 96 yearling bulls, with an average price of $4360 and a top price of $10,000 paid by a commercial dairy farmer.
Riverton also sold all 39 two-
LEADERS:
Stokman Angus, Waikite Valley, Central Plateau, sold Lot 26 for $30,000 and Lot 13 for $15,000, both bought by McFadzean Cattle Company.
year-olds for an average of $3630.
Herepuru Station Herefords, Manawahe, sold all 41 two-year bulls offered with an average price of $3180 and a top price of $3900.
Argyle Angus, Kaikohe, sold 19 of 30 two-year bulls offered with an average of $4100 and a top price of $8200.
Rosemount Charolais, Hawera, saw 22 bulls sold as a full clearance with an average of $3900 and a top price of $5500.
Hurtspier Polled Hereford Stud, New Plymouth, sold 33 two-year bulls averaging $3450 and with a top price of 3650.
Horizon Herefords, Waitara, sold 13 yearling bulls averaging $2940 and a top of $3900.
Rerekapa Charolais, Urenui, averaged $3160 with two-year-old bulls and $2600 with yearlings.
Wool trend puts a smile on sellers’ dials
Annette Scott MARKETS Food and fibre
THE simple supply and demand curve ruled the fortnightly auction in Napier last week with sellers emerging as the grinners.
PGW North Island procurement and sales manager Steve Fussell said the number of bales offered this sale was around 40% under the rostered amount planned.
“With a full bench of buyers, the sale ended most certainly in sellers’ favour as longer wool types held the most demand, with second-shear wool facing strong bidding throughout the sale,” Fussell said.
Crossbred fleece lifted 4% with good style selling at $3.55/kg (clean), average style $3.40 and poorer $3.17 while second-shear ranged in price from good style longer length at $3.38 down to shorter average style at $3.17.
Looking across the board, PGW general manager wool Rachel Shearer said the wool market has seen mixed results see-sawing across both islands of recent weeks with some auctions favouring sellers and
others tipping in buyers’ favour. Highlights include fierce competition for specialty wools and a buzz around fine wool in Christchurch, thanks to international interest.
The latest trends from the wool auction have generally seen specialty wool types sparking intense bidding, with strong demand driving prices higher.
PGW North Island procurement and sales manager Steve Fussell says the number of bales offered this sale was around 40% under the rostered amount planned.
CARE: Tongariro farm principal instructor Claire Goddard says getting certificates and having to care for something is often completely new to inmates.
Photo: Sarah Horrocks – AngusPRO
Ag gives prisoners the keys to a better life
Annette Scott PEOPLE Community
GIVING people a second chance is the focus for a range of industry programmes, including the unique farming-related opportunities on offer at Tongariro Prison.
Located at Turangi at the base of Lake Taupō, Tongariro is the only one of New Zealand’s 18 prisons to have both internal and external farming industry programmes.
The operation has a 15 hectare farm inside the prison wire which is used solely as a training farm, where Levels 2 and 3 ITO courses can be done with a small number of sheep, beef and dairy stock.
This can be followed by ITO training to give real-life work experience delivering practical skills up to level 4 NCEA.
The farming programme is part of the rehabilitation pathways selected by and for prisoners, all of whom are low-security class men ranging in age from 17 to 84.
Manager of industries at Tongariro Luan Kloppers said the farm training qualification set the men up for life after prison, with “the stock inside the wire the most frequently weighed animals in the country”.
Once they are within six months of their parole eligibility and have completed rehabilitative programmes, the prisoners may be assessed as safe to progress to the external farm where they’re monitored with electronic bracelets.
For men who come from a farming background or see their future in farming, it is a great opportunity to upskill and make themselves employable.
“Getting certificates and having to care for something is often completely foreign to them,” principal instructor Claire Goddard said.
There are currently 16 men working on the 660ha external farm with that number set to double in the next 12 months.
The farm runs 450 Angus cows and 2500 Romney ewes (Focus Genetics Goudie-based).
There is also 30ha of forestry in small pockets, used for forestry industry training.
The Angus programme went through big change four years ago, shifting from being a generic beef programme that serviced the industry programme to a highperformance herd with a drive for profitability.
“There is a responsibility when working with public money to do things in the most cost-effective way possible,” Kloppers said.
The farm has a long history, initially as a sheep farm with some cattle, but now shifting to a beef focus with some sheep.
Plans are to eventually lift cow numbers to 800 and have only trade lambs. Steers were always traded in the past but now they’re all finished on farm and processed at AFFCO.
The decision to make a change followed visits to several studs to discuss how they could use genetics to shift the direction of the programme.
The stock inside the wire are the most frequently weighed animals in the country.
Luan Kloppers Tongariro Prison
Roger and Susan Hayward of Twin Oaks Angus Stud at Ngāruawāhia are behind the farm’s Angus cattle.
“Roger and Susan buy into what we’re doing here with these men. They understand that farming here is about the rehabilitation and skills programme and that it’s not a normal farming system,” Kloppers said.
“We used to have a focus on fertility and easy calving and now the focus is on growth; the 200- and 400-day weights.”
While the three instructors are working as farmers, they are corrections officers first and foremost and the 16 farmworker
prisoners are also only on the farm for limited hours, so working out the exact staffing rate is nearly impossible, Goddard said.
When Tongariro first transitioned into high-growth genetics in 2020, four bulls were purchased from Twin Oaks. That number has now grown up to eight a year.
In another recent change, the 100 heifers are put through artificial insemination.
A separate group of lowbirthweight bulls are used as the follow-up sires after AI in the heifers.
The replacement heifers are selected using the Zoetis’ HeiferSELECT genomic selection tool, which removes environmental influence and allows Tongariro to select the heifers with the best EBVs to take through.
Within seven years the entire herd will be DNA tested and they expect to see huge shifts in production rates.
Everything is grass finished, with the steers and sale heifers also fed palm kernel.
The pumice country means the farm is always deficient in something with supplement feed grown as necessary, including baled lucerne, kale for the cows over winter, chicory for lamb finishing and 1000 tonnes of grass silage.
The prisoner farmworkers carry out the general stock work, fencing, tractor work, “and of course extends to dipping, dagging and drenching the sheep. It seems nobody will be sorry to see the sheep numbers reduced”.
During release to farm work, prisoners are paid a standard working wage that’s held in a trust account.
In the past four years, there have been 32 men employed on farms outside the prison system. These jobs are aided through liaising with Federated Farmers and the Rural Support Trust. The transition from incarceration back into society is really important Kloppers said.
“That’s where most guys will fall over, so finding the right farmer to ensure they get the right support is crucial.”
From the Editor
Grabbing
a second chance by the horns
Craig Page Deputy editor
NEW Zealand’s prison system is doing its bit to encourage inmates into the agriculture sector.
Tongariro Prison, near Turangi, features in this week’s Farmers Weekly and is the country’s only prison to have both internal and external farming industry programmes.
It has a 15 hectare farm within the prison, used as a training farm where Levels 2 and 3 ITO courses can be done with sheep, beef and dairy stock. This can lead to ITO training, giving real-life work experience and practical skills.
Tongariro manager of industries Luan Kloppers said the farm training qualification sets the men up for life after prison. Once the low-security prisoners are within six months of parole eligibility they can progress to an outside farm where they’re
monitored with electronic bracelets.
The programme is for those who come from a farming background or want a career in farming. It is also about learning new skills and making themselves employable once released from prison.
As principal instructor Claire Goddard said, “getting certificates and having to care for something is often completely foreign to them”.
Tongariro is just one of a raft of prisons throughout the country offering inmates a taste of rural life.
Aside from Tongariro, farms are also run out of Spring Hill Corrections Facility (dairy); Waikeria Prison (dairy); Manawatū Prison (dairy); Christchurch Men’s Prison (pig farm, drystock) and the Otago Corrections Facility (dairy).
There are also plant nurseries and other horticulture training opportunities at prisons throughout the country. Apiculture and forestry are also offered at some prisons.
No one knows the benefit of prison farm training better than Ben Purua, this year’s Ahuwhenua Young Māori Farmer of the Year.
In 2010, when he was 16 years old, Purua was found guilty of manslaughter and sent to Waikeria Prison. It was during his time in prison he first experienced working on a farm.
“That’s where that passion started for me. Getting the opportunity to work on the farm
at Waikeria was huge. But it was a lot of hard work – you don’t just get to go out on the farm,” Purua told Farmers Weekly in June.
“I just found this love for the freedom, for being with animals and I think it just brought out something in me. I didn’t know I’d enjoy being out on the whenua, working with animals so much and other people,” he said.
I found this love for the freedom, for being with animals and it brought out something in me.
When he left prison in 2015, Purua looked for farm work. It was no easy ride, as some farmers were naturally reluctant to employ someone with a criminal record.
But he persevered and, after 20 job applications, finally got into the industry. He now manages a 187ha property, milking 550 cows.
Purua’s story shows the huge benefits prison farms can bring. They not only prepare inmates for a career outside of prison but also help address the ongoing shortage of well-trained staff in the agriculture sector.
It is a win-win situation and, just as importantly, gives those people who have made mistakes a vital second chance.
Letters of the week
Usual dogma about forestry
David Field Rotorua
I WAS saddened to read Laurie Collins and Pippa Hawke’s letters to Farmers Weekly on September 16.
With a resource management degree from Lincoln and a career in forestry, conservation and farming, I have a very good idea of historical land use in this country. Because of her youth I can understand that Pippa is unfamiliar with this history, while Laurie trots out the usual pro-farming dogma and wild claims about forestry.
Forestry is a productive land use and quite relevant in the right places.
When Māori arrived here the country was 80% forested. They and our European forefathers set to work removing that forest. Along the way they brought many exotic plants and animals to further decimate our native flora and fauna.
Most of that country was converted to pasture despite much of it being unsuited. The recent storms in Tairāwhiti and Hawke’s Bay have revealed the fragility of hill country farming. The Waiapu River near Gisborne has the highest yield of suspended sediment of any river in New Zealand, 35 million tonnes discharged to sea each year.
The sheer volume of water off farms here and elsewhere, like the Esk valley, flows through forests, crops and townships causing the sort of flooding seen in Wairoa recently. The mayor there (a farmer himself) prefers to blame the Hawke’s Bay Regional Council for the event.
Sure, there is more work to be done with both native and exotic forestry, but simply ignoring the physical and ecological disadvantages of conventional farming is silly.
I would be pleased to recommend some useful reading for Pippa and Laurie if they are really interested in the truth about land use in this country.
Crank the bastard up
Dave Stanton Geraldine
WE ARE the generation of children who sat through Rob Maldon’s lectures on why the “Think Big” projects and especially turning methane into urea would be such a good thing for the country.
Yet why is it that we seem to have an underutilised ethanol-to-urea plant and
Continued next page
In my view ...
Finding room for rivers after Cyclone Gabrielle
Alan Taylor and Te Kenehi Teira
Councillor Alan Taylor is chair of Horizons Regional Council’s Integrated Catchment Committee and co-chair of the governance group for the Nature-Based Solutions Investigation for the Pohangina and Ōroua rivers.
Councillor Te Kenehi Teira is deputy chair of Horizons Regional Council’s Integrated Catchment Committee and co-chair of the governance group for the NatureBased Solutions Investigation for the Pohangina and Ōroua rivers.
When Horizons Regional Council staff went out to meet people living along the Pohangina and Ōroua rivers after Cyclone Gabrielle, they were given a clear message –things have to change.
The cyclone caused significant damage to private property and Horizons’ river management assets in both catchments, as designated river channels could not hold the sheer volume of water put through them.
The clean-up job continues to be large. More than $10 million worth of cyclone-related repair jobs to river management assets were identified across the region, mostly in the Pohangina-Ōroua Scheme.
The total social, economic and personal cost will be much higher. In the past two years, Horizons has spent triple the budgeted amount for repairs in the Pohangina-Ōroua Scheme, with much of that money coming from general rates.
This is not a new situation for people living near the Pohangina and Ōroua rivers. They were also hit hard by flooding in 2004, and by significant flood events between then and Cyclone Gabrielle. Each event brings more damage and disruption, as well as costly repairs.
The request from landowners for change reinforces the need
to look at future options for river management, as the status quo –spending large amounts of money on asset repairs just to see assets damaged by the next flood – is unlikely to work long term.
Our study into how that may look – the Nature-Based Solutions Investigation for the Pohangina and Ōroua rivers – is how we plan to produce those options. A key part of this study is investigating how the “room for the river” concept could work.
It’s important to stress that this study is about looking at options. We have made no decisions about the future of river management, and any changes would be considered by councillors. Our river management staff continue to do work in the scheme to maintain and enhance protection.
production and the need to pay for significant repairs after every flood event.
Initial work presented as part of the study shows there has been a 50% reduction in the active channel area across the lower Manawatū River catchment since 1941. Continuing to reduce the width of rivers, when we’re getting larger volumes of water landing in them during storms, will likely only end with more damage to private property and expensive cleanup bills.
When establishing the governance group for this study, we worked to have as diverse representation as possible. We are proud to have representation from a diverse range of interests on the group, including landowners, so all viewpoints on any future river management options for the Ōroua and Pohangina catchments can be considered.
The “room for the river” concept is not new. In fact, we already use it for the Rangitīkei River. It is also used in other regions, including the Hutt River near Wellington. Furthermore, reports looking into Cyclone Gabrielle’s impact on Hawke’s Bay support investigating this concept for other rivers.
The concept is based on having river management lines, just like river management works now. Those lines, however, are developed with the goal of mitigating damage when the river does flood. This gives the river room to grow during large flood events while minimising the impact on people and property.
Providing more room for a river does not necessarily come with an economic cost. In fact, there can be economic benefit, especially if we can avoid costly disruption to
of theWeek Letter
are as far as I know are still paying to import over half of our urea requirements 40 years later? Is this true? Why is it?
Perhaps the Ravensdown and Ballance duopoly can shed some light on these issues?
Why can this factory not just guarantee the same price to both customers? Crank the bastard up, make it more efficient, run it 24/7, lower costs, generate more jobs, save New Zealand imports and deficits and the whole country would be a whole lot better of. Please don’t try to tell me we don’t have the gas reserves. There are known massive gas fields south of Taranaki, totally untapped.
Landowners are a key group for this study. We know they suffer some of the greatest impacts during flood events, including loss of productive land and property damage. We also know they hold important information about how the rivers behave. By working with landowners, we expect to come up with options that balance protection and longterm affordability – a holistic and sustainable flood protection model.
The governance group representatives were tasked with feeding information back to the people they represent during the start-up phase of the study. We have a dedicated webpage on the Horizons website where all information (including governance group meeting agendas and minutes) about the study is posted. We also took the chance to update landowners at the recent Pohangina-Ōroua Scheme meeting.
Now the study is taking shape, we will be sending letters to all landowners who border the rivers.
We are also planning community and one-on-one meetings with landowners, and will be regularly reporting progress via Horizons’ Integrated Catchment Committee. People can also contact the project team anytime by emailing NatureBasedSolutions@horizons. govt.nz.
Climatic events are causing ever-increasing levels of damage and disruption. Research from
Landowners are a key group for this study ... they hold important information about how the rivers behave. Do you know someone who deserves a story in Farmers Weekly? Why not write it yourself? We’re keen to hear local stories about the innovators, inspirations and characters that keep our communities ticking over. Farmers tell the best stories and we want to hear yours. yourstory@agrihq.co.nz
into Cyclone Gabrielle found human-influenced climate change significantly increased the cyclone’s strength. As the world continues to warm, we are likely to see stronger storms put more water into our river catchments. The Nature-Based Solutions study will give us options to consider as we plan how we conduct river management in this climateinfluenced future.
Send your letter to the Editor at Farmers Weekly P.0. Box 529, Feilding or email us at farmers.weekly@agrihq.co.nz
Current firearms law is wide of the mark
Alternative view
Alan Emerson Semi-retired Wairarapa farmer and businessman: dath.emerson@gmail.com
THE current law regarding firearms isn’t working.
I’m aware of many firearm owners who don’t have a current arms licence for a variety of reasons. Discussing this with a Police friend, he made the comment that they were breaking the law, which is correct –they are. My response to that was to ask what the Police are going to do about it and the answer was “not much we can”. We do need credible, workable and respected firearms laws in New Zealand and that must involve change. The current system isn’t working.
The minister responsible, Associate Justice Minister Nicole McKee, has grasped the nettle and is proceeding to reform the legislation. She’s paying a heavy price for that.
The current Act goes back to1983. That’s over 40 years ago. Life has changed and the introduction of 3D printers capable of manufacturing firearms would be one example.
Minister McKee has four phases with her reform process.
The first was to go after criminals and their guns and that’s been completed. Kiwis are safer now as a result of that process.
Phase Two was to reform the law involving the excessive and pointless bureaucracy over clubs and ranges. It had no impact on public safety.
Phase Three is the Registry review, which is underway. I’m pleased the Ministry of Justice is conducting the review and not the Police.
I’m cynical of the Registry for several reasons. For a start, the Police told me they needed a Register to be able to monitor those firearms stolen from legitimate owners. The reality is that of the 6500 firearms seized over the past three years, only 123 were legally imported or manufactured in NZ. A Register is a complete waste of time on that front alone.
The second is to ask if we need such an expensive and elaborate process when, as I’ve stated, a large number of firearm owners don’t even trust the current licensing system.
McKee has grasped the nettle and is proceeding to reform the legislation. She’s paying a heavy price for that.
Finally, friends who do have a licence don’t want to be part of the Register. They just don’t trust the security of the Police system.
Phase Four is to rewrite the Arms Act and the minister is hoping for a draft by the end of the year. At this point she hasn’t received any advice on the Arms Act rewrite despite all the hysteria over the reforms.
Gun licensing will be going from Police, but no final details have been decided.
I support that. While I have considerable respect for the Police, gun licensing isn’t their stock in trade and as the awarding of a licence to a terrorist showed, they weren’t infallible.
In addition, their current system
is farcical. It takes a one-page questionnaire to renew a driver’s licence and four to renew a liquor licence. Why then do you need 39 pages to renew a gun licence? It is a huge disincentive and just another reason why people don’t get licences.
For all those reasons I totally support Minister McKee’s reform process. If it gets cabinet approval we’ll have for the first time in decades a process that firearm owners will support as being workable and credible.
Her aim is to “develop good firearms legislation that will last for decades and keep the public safe”.
What has disappointed me most is the inaccurate portrayal of the McKee position combined with the personal attacks she has suffered.
For a start the only thing the opposition politicians, the Police Association and sections of the media have concentrated on is semi-automatics. Semi-automatics that our criminal elements are importing with impunity, a fact known to both the minister of police and the Police Association.
The classification of allowable firearms is recommended by the minister of police under section 74A of the Arms Act. In addition, any change of classification needs cabinet approval, not that of individual ministers as claimed by the hysterical. When in government, Labour used that section with impunity.
I’ve also been disgusted by the personal attacks on Minister McKee and am reminded of the old adage which suggests that if you can’t win an argument by using fact and reason, your only remaining option is to get personal.
The accusation that Minister McKee is an arms industry lobbyist is farcical. Yes, she was spokesperson for the Coalition of Licensed Firearm Owners over the previous government’s rushed and botched legislation.
No one has added that the
minister has spent a lifetime teaching firearms safety, is a NZ shooting champion and a communicator of the year in 2019. She knows what she is talking about, which is refreshing in a politician.
The anti-McKee cacophony coming from Labour’s Ginny Andersen and the Police
Association’s Chris Cahill is just that, meaningless noise from Police lobbyists who should know better.
They would be better working with the coalition government to get workable, credible and respected firearms legislation instead of merely sitting in the wings throwing bricks.
No risk, no reward is a lesson we need to learn
Straight talking
Cameron Bagrie
Managing director of Bagrie Economics and a shareholder and director of Chaperon
THE upcoming inquiry into banking competition is vital. The inquiry needs to focus more broadly than comparing a home loan lending rate with a rural one. Banks need to hold more capital against the latter and rural lending is more risky, so it costs more.
A look at the return on equity by sector will pour sunlight on that gap and whether margins are too wide but let’s not dwell solely on that. There is a much bigger picture to focus on.
Credit intermediation, or the process by which savers in the
Continued next page
Props and wingers on the same team
Eating the elephant
more intensive and diverse. Sheep and beef remain, but dairy support, cropping, horticulture, off-farm income, bees and carbon are all parts of the business now. We’re eyeing up energy, too.
Although nature isn’t yet a major profit source for us, we have proudly enhanced the bush. More than a few cockies have commented that the scrub and rocks – once a hazard to farming – now offer significant returns as agri-tourism, attracting AirBnB guests who value fresh air, birdlife and farm life.
MY FARM today looks significantly different to what it did 30 years ago. It will be different again in 2050.
For a start, 30 years ago stock water came from streams. As a family, we’ve proudly fenced most of these off – pumps and pipes do the watering now.
Paddock numbers have increased from 30 to 156. Our neighbours now include lifestyle blocks, dairy sheds, kiwifruit orchards and Pinus radiata plantations.
Our place hasn’t undergone wholesale conversion, but it is
Continued from previous page
economy connect with borrowers, is an essential element of an economy. If done right, it lifts growth and productivity. Risktaking is a part of growing. The OECD has pointed out that “empirical research suggests that productivity benefits of financial deepening are realised via business lending, rather than household lending”.
Excessive or poor lending can be just as destructive as disproportionate constraints on lending. It can drive bubbles and support poor business models and zombie businesses that detract from productivity. We saw that playbook with the dairy lending boom in the 2000s.
Goods exports in New Zealand have fallen from 22% of GDP in 2013 to below 18% now.
Sectors such agriculture see productivity growth of 1.5-2% per year. Productivity for the whole economy averaged 1.4% per annum between 1993 and 2013 but averaged only 0.2% per annum over the last 10 years. When a “high” productivity sector becomes a smaller share of the economy, it detracts from productivity.
NZ is at a critical juncture where we are facing an economic reset, navigating inflation, failures in areas such as education and infrastructure, a different geopolitical environment with protectionism on the rise, and addressing long-term imperatives
There has been some good discussion about the role of industry good lately. I welcome it. The recent AGMARDT& KPMG report – The Common Groundlooks at the 150+ bodies that lead the sector, including membership organisations like Federated Farmers, levy bodies like Beef and Lamb NZ and others such as AWDT or the Aotearoa Catchment Group Collective.
We didn’t make these changes because we dislike the status quo, because they are easy or out of a save-the-planet wokeness. We just believe that owning a farm is a joy and a privilege. These things make us happy, and we want our kids to have a crack at farming when their turn comes. So, we’re making the farm work in new and different ways to keep it viable for the world they’ll step into as adults.
As a farm (and a nation), we are well past peak cow and sheep numbers. For us, growth by more cattle is not an option; bulls replaced breeding cows decades ago. I don’t think land, man or beast could handle an increase from 1200 to 2500 kg/ha wintered live weight. So, year by year, we’re turning up the complexity and diversification dial on the farm.
As a farmer, I want to know that the bodies I elect and fund are set up to help us on this path of growing differently.
such as decarbonisation and sustainability.
There are many policy settings that need to be looked at; banking is simply one. Good luck trying to double exports if the flow of credit is stymied.
NZ is not going to get wealthier selling more and more expensive houses to one other, nor with home lending rising at the expense of real productive lending.
Home lending has risen from 50% to 63% of bank lending in the past 24 years. Home lending has accelerated as a percentage of total loan assets in recent years by regulatory rules requiring banks to hold more capital, which has just meant more lending on housing as banks need to hold less capital against housing loans.
The terms of reference for the inquiry are broadly sufficient and cover many of the key issues but there are some holes.
The first is looking at the profitability of banks, and returns the banks receive by sector, and interpret the returns in conjunction with the risks they are taking, or the volatility of the earnings.
Banks have seen their profits rise at an average annual rate of 17% since the early 1990s. The alpha returns banks have been making, which have been well in excess of their cost of capital, should have been associated with more risk and volatile earnings.
Bank non-performing loans are roughly half what they were during the global financial crisis, a
The report suggests that while the current system isn’t entirely flawed, there is a heap of duplication and that we’re struggling to get in front of new and hard issues like data management, climate change, water quality or meeting our global consumers’ needs. The report says a new way of working together is required.
Ag loves a sporting analogy – so here’s one that works for this issue. Wingers and props generally have little in common outside of rugby. Yet they come together as a single team when the goal is simple (to win a rugby game) and their roles are well defined - blue moons and beers afterwards are as likely.
Great teams don’t worry about the ref either. As a sector, we need to move much of industry good away from the game of politics. We might have a more friendly ref in Andrew Hoggard now, but to reach our big hairy goal of doubling export revenue, we need to get in front of the inevitable rule changes that will follow future elections, or the distractions by climate conspiracy streakers.
It’s entirely within our control to act on the issues we know the next government ref will call us on – emissions reductions, water, on-farm biodiversity and the like. Under a fit-for-purpose industry good system, we can hand them the plan, show them the progress and get back to playing the everevolving game of farming. Rather than fighting every red card and wrong call.
We’ll win the game by doubling exports. To do that, we’ll need to be both the best farmers in the world and for the world. The Common Ground report is the prompt we need to really look at ourselves and ask if our industry good system is up to that challenge.
It’s not a perfect report, but
remarkable outcome considering the state of the economy, and highlight the highly secured state of banks’ books. In fact, Reserve Bank statistics back to 2000 show provisions have rarely turned into losses (net of recoveries).
The OECD and Commerce Commission have both pointed to higher bank profitability in NZ compared to international peers, and even higher when looking at risk-adjusted returns. Returns are high but, as noted by the OECD, “the standard deviation of pre-tax returns is relatively low”.
The four large New Zealand banks generated an average shareholder return of 15% over 2018-2022, compared to 13% for
large banks in Australia, and 11% for their counterparts overseas.
Between 2010 and 2021, “New Zealand’s banking sector has, on average, performed in the upper quartile relative to peer nations on three important measures: return on equity, return on assets, and net interest margin”, the Commerce Commission has stated. Yet New Zealand’s banking sector is low risk, tilted towards vanilla banking activities like home lending.
The second hole is for the rural sector to look in the mirror and ask just how bankable it is. Have we really broken the back of the farming-for-capital-gain mantra that has dominated for decades? That worked when interest rates
it acknowledges that we need more than the platitudes about incremental improvement or removal of red tape we’ve become used to. It says that we should use this breathing room afforded by a friendly ref, to step back and look at how we play the game. Like my family’s on-farm change to bulls or horticulture development, this kind of system change will be hard and has some risk. But staying the course in a rapidly changing world has its own risks too. I’d rather take the pain of change, than the pain of regret.
• DISCLAIMER: Phil Weir is an Associate Trustee of AGMARDT, one of the organisations that produced The Common Ground. The thoughts and opinions shared here are his own.
trended lower. Progress has been made lifting the sector’s “bankability” as a cash returns focus has risen in prominence but NZ as a nation across the entire business sector still has a long way to go.
This inquiry cannot just be a pointing of the finger at banks and regulators.
The third is looking at bank cost-to-income ratios, which are incredibly low. To what extent has investment in customer service, credit approval times, capability and technology been forsaken over the years with the desire to profit maximise in the short term? It’s been easier to cut costs rather than drive productivity or revenue, as it is simpler to lend against housing than business.
The fourth hole is culture, inside banks, regulators and society. We will hear the usual scapegoats at the inquiry about needing the banks to be safe. But not at any price. Bank collapses are almost always due to liquidity rather than capital.
If you want a stronger performing economy, you need a culture built around taking and managing risk. Pointed questions need asked about the banks’ culture towards risk – but society’s, too.
The bottom line is that the taking, pricing and managing of risk is a combination we do not have right in New Zealand and needs to be improved. The finger can be pointed at banks on some issues, but elsewhere on others.
The Shearer who was destined for wool
Despite a detour into managing US rock bands, a future in fibre was on the cards – and in the family name – of PGW’s new GM for wool. Annette Scott reports.
HAILING from North Canterbury, where she grew up on a sheep and beef farm, Rachel Shearer has long had an affinity with wool.
Shearer has been appointed general manager of wool for PGG Wrightson, the first female to head the role for PGW, a name she fondly recalls from her childhood days.
“When I was a little girl, the Pyne Gould Guinness store in our local town of Rangiora was my favourite place to go with Dad.”
Many years later, it was her father John who played a part in securing a position for her in a business he had worked alongside throughout his farming career.
“I went to visit my parents for a Sunday roast and he had cut out a job advertisement from the newspaper for the role of GM people and safety at PGW.
“So I applied, got the role and was fortunate to spend the next eight years on the executive leadership team at PGW as the GM people and safety.”
While her career may not have taken the most conventional path to becoming the GM of wool, she believes all she has done has led her to where she is today.
“The fact that my last name is Shearer is definitely not lost on me either.”
Her father is no longer alive, but his influence is a big part of why she is so passionate about working in the ag sector, and for PGW.
Considered a progressive farmer, he was always looking to make positive change, exploring new ways of doing things to improve his land, stock and business.
Shearer sees it as her time now to consider the next generation of those coming into the industry.
“From an early age my brothers and I were helping out on the farm with hay making, tailing, shearing, and working the lambing beat.
“There was always something to do and much to learn. And it was such a defining moment when my parents decided to sell the farm.
“I was a teenager and I recall trying to chain myself to the front gate in protest.
“I was devastated to leave as I had imagined myself following in my parents’ footsteps and taking over the farm when I was old enough.
“However, I moved on, and after doing an Honours degree in journalism and political science at the University of Canterbury, I headed off for my OE.”
She began her career in recruitment in Sydney, which eventually led her to working for investment banks in London.
Two years later her brother, who managed rock bands in the United States, said “Banking’s not your passion, why don’t you come work for me in LA?”
She did and the next few years were spent working in music management with an array of American bands.
A visit home for Christmas changed that.
“I looked back at what I was doing in the US and realised the entertainment industry and Hollywood wasn’t my reality. Home was where I wanted to be.”
It was back home in Christchurch that she secured an in-house human resources role for a mining company. It ended up going into voluntary administration a few years later, at which time Shearer was the GM human resources.
“It was certainly tough but also career defining as there was no playbook for navigating our way through.
“As we were winding up that organisation in 2016, I secured the job with PGW.”
Responsible for all people- and safety-related activities for the 2000 PGW team members across the country, and as a member of the executive leadership team, Shearer was kept busy.
A couple of years ago chief executive Stephen Guerin began investing in her strategic leadership and governance development, which has led to her GM Wool position. She is also executive director of bidr.
Alongside Guerin, she was assisting Grant Edwards to develop a revised strategy for the wool business up until his untimely death earlier this year.
Shearer was offered Edwards’s role on an acting basis and while it was a difficult time with him gone so suddenly, she said the legacy he and other industry stalwarts left behind was evident.
“The business was able to continue on and I think this is a testament of strong leadership, that even when you’re not there, the team continues to operate to their best.
I grew up sitting in front of the fire with A Dog’s Show on and the sound of Mum spinning or knitting wool from our flock into jumpers.
Rachel Shearer PGG Wrightson
“Grant was instrumental in helping us contemplate the future of the wool industry and now we are carrying forward many of his thoughts and ideas to put together a comprehensive plan.”
While it was an unexpected shift, Shearer was keen for the challenge and on reflection can see how much of her previous work
experience led her to where she is today.
“As varied as my background may sound, when you reach senior leadership, it’s really interesting to look back and see the number of things that you take from each manager and job you’ve had.
“I often joke about my time in LA as a left-field career break and you wouldn’t think there would be anything remotely related to running a wool business, but some of it does really round out what I do now.
“I firmly believe in taking opportunities and addressing challenges as they present themselves. Following values, passion and purpose are extremely important to me.”
Now at the helm of a heritage brand in an iconic New Zealand industry, Shearer is keen to ensure PGW Wool adapts and grows as a business to help secure a future “for this incredible, sustainable fibre and its growers”.
“I grew up sitting in front of the fire with A Dog’s Show on and the sound of Mum spinning or knitting wool from our flock into jumpers.
“Our son was born premature so was in the neonatal intensive care unit and once out of his incubator
we made sure to dress him head to toe in Merino.
“I remember the doctor saying the success of his growth rate was indicative of a child being wrapped in wool. We buried my father in a wool coffin.
“I feel I’ve experienced the full life cycle of wool, and while I know I’m not going to single-handedly solve all the challenges of the industry, I’m passionate about what our strategy and roadmap looks like to ensure we play our part to help elevate NZ wool in the modern world.”
She said she doesn’t feel an extra responsibility of being a woman in the leadership position, but over the years she has become more comfortable leaning into what it means to bring her authentic self to work.
“When I became a new mum, I had to understand and embrace what I brought to the table and I realised that being successful is more about your output and influence.
“It was about changing my mindset, saying no to things that aren’t important in order to deliver to my best abilities as a mum, partner and general manager.
FUTURE: Rachel Shearer is keen to ensure PGW Wool adapts and grows as a business to help secure a future ‘for this incredible, sustainable fibre and its growers’.
“I am conscious, although not overtly, that I’m in a job which has traditionally been held by a man.
“I see my role is to help open the door for other women to join me in operational leadership roles. But it’s definitely not a burdensome feeling, it’s one of optimism.”
And if there is one thing that will never fail to motivate Shearer in her career, it’s the wise words of her dad.
“One of my favourite sayings that I got from him was ‘If you don’t like change, you’re going to like irrelevancy even less,’ and this is the opportunity I choose to see in leading our wool team: the opportunity to sustainably set ourselves up to play our part in the future of a successful NZ wool industry.”
Finding animal feed in our geothermal gases
Lab research funded by a North Island Māori trust and the MPI has shown a bacterium and an algae can be used to convert GHG into protein-rich feed.
ACENTRAL North Island Māori trust is partnering with geothermal experts and New Zealand scientists in a worldfirst project to develop livestock feed from geothermal gases.
Funding of nearly $5 million from Tauhara North No 2 Trust and the Ministry for Primary Industries (MPI) will support Rotorua-based Upflow and partners to progress laboratoryscale research that has shown how two microorganisms – a bacterium and an algae – can be used together to convert carbon dioxide and methane into a protein-rich biomass.
This biomass is created when microorganisms feed off greenhouse gas emissions captured from geothermal power
stations, such as those used to generate electricity in the central North Island. The biomass produced is made up of several potentially commercially valuable components, including protein for animal feed.
The four-year research project will be the first in the world to pioneer biomass feedstock production from gases and robust microorganisms that thrive in the extreme conditions found at geothermal sites.
Tauhara North No 2 Trust
Having geothermal assets in our rohe gives us the opportunity to unlock potential new industries.
Mana Newton Tauhara North No 2 Trust
has significant investments in geothermal assets at the Rotokawa geothermal reservoir and is seeking more than financial outcomes.
“Having geothermal assets in our rohe (region) gives us the opportunity to unlock potential new industries and leverage our existing knowledge to create new jobs and revenue for mana whenua and regional communities,” says Trust group chief executive Mana Newton.
Geothermal consultancy Upflow is the delivery partner for the project, providing leadership and expertise, partnering with researchers from Crown Research
Institute Scion, the University of Canterbury and algae experts from Cawthron Institute.
Early-stage research looks promising.
Industrial biotechnology processes were jointly developed by University of Canterbury researchers, Scion’s biotechnology team and Tauhara North No 2 Trust. The technology uses a methane-eating bacterium, and a carbon dioxide-eating microalgae to capture the gases and use them as a food source for growth.
This process generates a biomass rich in protein, which is being explored as an animal feed ingredient, use for human nutrition, or to produce highvalue nutraceuticals or pigments.
The initial focus is on the protein component to benefit New Zealand’s primary industry, while also investigating the potential for premium products.
The MPI’s investment of $2.49m in the project comes from the Sustainable Food and Fibre Futures fund.
The MPI’s director of investment programmes Steve Penno says it is an exciting project.
“If successful, this could be the start of a new biomass feedstock manufacturing industry for New Zealand, worth an estimated $500m per annum by 2045, creating new skilled jobs.
“It would reduce our reliance on imported livestock feed, and decarbonise these industries, while also reducing the cost of carbon emissions for geothermal companies that adopt the system.”
According to New Zealand Trade and Enterprise, as a nation of five million people, New Zealand feeds an estimated 40 million people worldwide.
“We’re looking to futureproof this legacy by providing a decarbonised food production option using Aotearoa’s abundant geothermal resources. We’re making animal feed from greenhouse gases,” says Andy Blair, director of business and innovation at Upflow.
Over the next four years, Upflow will work with researchers to progress development of the technology from its satellite office on Scion’s campus in Rotorua.
Only small quantities of the biomass have been cultivated and tested so far from pure gases.
In the next step, scientists will support Upflow to plan and build a pilot-scale facility. This will aid the transition of fermentation conditions to real geothermal
gases to generate yields at pilot scale (1000 litres).
More work will determine markets for the biomass, including agriculture, aquaculture and the potential for human nutrition.
Inghams Enterprises NZ is a keystone industry partner in the project, bringing insights to navigate its animal feed market spaces.
Scion’s portfolio leader for distributed and circular manufacturing Marc Gaugler says the groundwork was a collaboration through the cultivation of specific bacterial strains at Scion and algal strains at the University of Canterbury.
“With our research colleagues and Upflow, we look forward to seeing this novel technology contribute to regional economic development, create new value from waste and benefit the geothermal sector by helping it decarbonise.”
Taking tech into in the vineyard, where it counts
INTRODUCING automated 3D-scanning robots to vineyards could be the secret to unlocking the “Holy Grail” of the wine industry.
A project using Lincoln University viticulturalists and led by the University of Canterbury (UC) aims to develop the robots and use them to get far more accurate yield estimations, which would tell growers exactly how much fruit their vines will bear.
The five-year $6.1 million project is supported by the Ministry of Business, Innovation and Employment Endeavour Fund.
Lincoln University Department of Wine Food & Molecular Biosciences Associate Professor Dr Amber Parker said being able to accurately predict yields could be a huge shift for the industry.
Having accurate yield estimation meant growers and winemakers could better prepare for harvest in every step of production. It affects everything, including how much fruit would be harvested, the labour and equipment needed, and what the winery would receive.
“Every step along that chain there’s a financial cost benefit,” said Parker.
“How many tractors do you need? How many drivers? How many people in the winery? How many tanks? Do you need to make changes?”
At present, being within 5-10% in a yield estimation is considered very good, but still leaves a huge amount of room for variation.
Part of the problem with determining yield estimates is that growers are working on averages from other years, but the climate fluctuates annually.
Using the autonomous robot, the actual number of fruit on every vine can be measured without supervision, putting growers in a much better position to deal with those fluctuations, Parker said.
The robot estimates yield by creating a 3D scan with the exact number of flower structures on the vines, called inflorescences.
The current method of estimating yield is to count these in person, whether it be in the
vineyard or by removing samples from the vine. It is more accurate to remove them, but that means a loss in potential fruit. These are expensive, time-
consuming processes and can only be used to work out a rough average, as it is impossible to do every vine, she said.
The robots are being designed
by a team at UC,
The
by one metre device zips down the rows at “a fast walking pace” capturing thousands of images, Green said.
It is loaded with cameras with wide-angle lenses, each taking about 10 pictures per second. The current arrangement features 12 cameras, collecting images on both sides as it moves through the vineyard.
Those images are then fed into an artificial intelligence program that pieces them together into a highly accurate 3D model of the plant, including everything behind the leaves.
The technology is groundbreaking, but it is up to Lincoln’s viticulturalists to make sure it can meet the industry’s needs.
Every few weeks the robot goes through Lincoln’s vineyard scanning the vines. Lincoln’s viticulturalists then collect data manually to compare.
That data was used to determine the practical value the technology had, Parker said.
Sector Focus Sheep & Beef
A farm where every day is an ‘open day’
EVERY day is an “open day” on Alastair and Ann Reeves’s farm.
It’s an ethos backed by the Waikato sheep and beef farming couple. If they expect to receive a premium for their product, their customers should have the right to see how that product is made.
If other farmers adopt this mindset of transparency, it will guide how they farm and change farming behaviour, Alastair said. “If you do something and you think, ‘Our customer can’t turn up today’, there’s a fair chance it’s wrong. We need to change our behaviour to reflect our values and be true to our customer.”
It’s a mindset that the Reeves walk the talk on.
Their 605 hectare (550ha effective) farm at Te Akau, west of Ngāruawāhia is Farm Assurance Programme (FAP Plus) accredited, meaning it is audited for its social, environmental, animal welfare and agrichemical policies. FAP Plus is independently audited by QCONZ.
“That really excites me because I think FAP Plus could be the future for sheep and beef farmers to tell our story to our customers and at the same time meet regulatory requirements that are coming down at us from central
government. That’s a win-win for everyone.”
The Reeves’s efforts were recognised when they won the Supreme Award for Waikato at this year’s Ballance Farm Environment Awards (BFEA).
Their farm runs prime lambs, bulls for beef finishing and a sheep stud business, Waimai Romney, selling both maternal and terminal rams
The terrain is typical for the district with the bulk of it in rolling, medium or steeper hill country and a small area of flats.
We’re trying to grow the Wagyu of lamb, off grass – a high-marbled lamb that one day we’ll get a premium for.
Alastair Reeves Te Akau
Alastair describes the weather as winter wet and summer dry.
“We have to ‘farm the farm’, and that is why we still have a large component of sheep, as sheep are the only animal that can be sustainably farmed on our heavy clay hill country.”
Alastair has always had the vision of wanting to farm a farm park, where there are not just livestock but trees, birds and other forms of biodiversity.
“Most importantly, I love my
land, I love my whenua,” he said.
“This was brought home to us when we spoke with the other BFEA finalists in the leadup to the National Showcase event.
“We were all talking about the same stuff. We were all talking about the whenua and making sure we look after it and the awa and the biodiversity.
“It’s a common theme throughout all of the BFEA participants, which made me really proud. It gave me huge hope that we are on the right track.”
The bull beef system uses a cell grazing system on the farm’s easier country where Friesian bulls are bought in as yearlings.
The Reeves sell their finished stock by date rather than weight to mitigate the summer dry and 80% of the cattle are gone by Christmas. The Chara-black (Hampshire/Charolais-stabilised cross) prime lambs are sorted into three picks with the first two also gone by that stage and the final mob are gone by the end of January.
The farm has 1200 SIL recorded stud sheep and 600 commercial ewes that are mated to a terminal sire with its progeny sold as prime.
The stud has 1000 Romney sheep and the rest are terminal breeds. He has been breeding facial eczema traits in his sheep for 38 years and helped set up the FE Gold brand for rams that are FE tolerant.
Over the past 18 years they have bred their sheep for worm resistance and added low-methane emitting genetics over the past four years.
“We have done all of this at no expense to production, which is the really exciting thing.
“To select sheep for lowmethane traits, we initially select the rams on production, parasite resistance and FE resistance traits and if good enough, the rams are analysed in a portable accumulation chamber to measure the methane emitted.
“Within that cohort of our already top production and disease genetics, we then pick the ones that have the best methane. This year, 87% of our ewe and ram hoggets have negative methane and their NZ maternal worth (NZMW) is 9% higher than the sheep with positive methane.”
This showed Alastair that he has not chosen methane at the expense of production, and has improved the NZMW of the flock.
“It’s really exciting and in four years, we have dropped our methane on this property by 3.2%, as analysed by AgResearch.”
The Reeves focus on growth and eating quality for the prime lambs and the animals have consistently performed well in progeny trials for marbling.
They have been involved in two such trials in the past six years, looking at eating quality with the sheep having consistently
Alastair and Ann Reeves have a 605 hectare (550ha effective) farm at Te Akau, west of Ngāruawāhia running prime
and a
performed very high in those trials.
“We believe eating quality in sheep is where the next opportunity will be to grow value, with meat companies throughout the country already giving premiums for high eating quality (EQ) beef, so it’s not a big leap to think lamb is next.
“We’re trying to grow the Wagyu of lamb, off grass – a high-marbled lamb that one day we’ll get a premium for.”
The Reeves supply Silver Fern Farms for both beef and sheepmeat and it’s critical that the meat companies find a market for these products, he said.
On the land, we’re just passing through and it shouldn’t matter who is next as long as they have those same values.
Alastair Reeves Te Akau farmer
“This is how we’re going to grow value. The consumer wants an eating experience. They don’t want to know if it’s black, white or green.
“They just want it to be a good bit of beef or lamb.”
While he is yet to see a premium for that, as a breeder he believes he has to be forward thinking in terms of where the market is going.
The Reeves are also involved in the Growing Future Farmers programme, designed to get young adults interested in a career in the sheep and beef industry.
The two-year programme includes both on-farm and NZQA tertiary training in agriculture.
Alister heard about the programme and contacted its organisers to get involved.
“I’m really proud to be part of it. It’s a great initiative,” he said.
Jess Cameron is in her second year in the programme and works
alongside the Reeves and his manager, Tom Lilley.
Around 10% of the Reeves’s farm is planted in trees for timber production and nearly all of its streams are fenced off, and riparian planted, after planting 1000-1500 native trees every year for the past 15 years along the waterways and steeper sidings and sediment traps.
In the community, Alastair also co-chairs a local catchment group for people who live on the northwestern area of Waikato, the Western Waikato Coastal Community Catchment Group, covering a 65,000ha area.
Launched in late August, it has around 165 members and its aim is to promote a thriving resilient community.
He also successfully initiated the creation of priority possum control areas (PPCA) with the Waikato Regional Council in 2002 after his first efforts at planting native trees got decimated by these pest animals.
“Twenty-three years later, it’s still going, the native trees have flourished and there’s birdlife everywhere, which shows working with council to find solutions to problems is always going to be the best option for success.
“We view sheep and beef farming as, for the most part, an intergenerational industry and because of those values, looking after the land and our waterways is a priority.
“It’s in our DNA. We’re only borrowing the land off our children, and this sets up our whole moral compass.
“Looking ahead, our focus is on leaving the whenua in the best possible state for our three children, as talks of succession loom.
“We’re having those conversations but I have no expectations on them. On the land, we’re just passing through and it shouldn’t matter who is next as long as they have those same values.”
Inspiring national pride
Beef + Lamb New Zealand has been a proud partner of the New Zealand Olympic Team to highlight the connection between our world-leading product and its nutritional benefits.
Here are some of the great comments made by Kiwis in the survey:
“Beef and lamb is the backbone of the NZ economy, and we should be proud of what has been achieved ”
“NZ is world known for beef and lamb, I think it’s great that our beef and lamb industry have supported our Olympic champions There has always been a partnership with this industry and our sporting teams and this partnership really highlights it, which is great ” You might have seen TV ads, brand association with the Sky Breakfast Wrap and more It has been incredibly successful, which was reinforced by a recent Kantar survey
• We’ve seen a significant improvement in how proud Kiwis are of the NZ beef and sheep industries.
• There has also been a real boost in the ‘extremely proud’ rating.
• More than half of those surveyed recalled seeing or hearing something about Beef + Lamb New Zealand and The New Zealand Team.
• The Breakfast Wrap reached 1.3 million viewers, social media reached 4.2 million, and our TV commercial had 4.9 million views.
“I love seeing NZ products promoted. And to see beef and lamb promoted on such an important sporting event made me feel proud.”
Black Hawk backs Growing Future Farmers
In an increasingly urbanised world, supporting young farmers to foster their passion for farming is crucial.
Growing Future Farmers (GFF) is an immersive NZQA-accredited two-year programme for school leavers to kickstart their farming careers
Each young farmer is placed with a knowledgeable and passionate farmer where they learn first-hand what it takes to run a working farm. They also participate in regular, hands-on group training sessions to learn key skills such as shearing and pup training.
Premium dog food brand Black Hawk has partnered with Growing Future Farmers to support participants throughout the programme as they forge and continue to develop one of their most important working relationships
Empowering young farmers - and their dogs
The great value of raising and training multiple dogs early in a farmer’s career is why GFF students are allocated a pup at the beginning of the programme
“The best farm dogs have a noticeable bond and trust their owner,” says Black Hawk Northern Farm Manager Ross Osborne.
With the guidance of skilled trainers, puppy training days provide young farmers with valuable knowledge on effectively working with their pups
Each training day presents new challenges and opportunities for the students and their pups to build trust.
GFF student Gavin says the key to success is practicing between training days
“You’ve got to put in the work with the dog outside of the days to get the result otherwise it’s in one ear and out the other.”
The importance of nutrition
Black Hawk is a staunch supporter of the GFF programme and is proud to play a crucial role in fueling every pup’s growth and development. Every student receives a bag of Black Hawk food and other essential items to get them started, plus additional food during their programme
“At Black Hawk, we’re proud to support Growing Future Farmers We hope our contribution helps
“You’ve got to put in the work with the dog outside of the days to get the result otherwise it’s in one ear and out the other.”
- Gavin
farming students and ensures their pups are getting the best start through great nutrition. It’s great to see the pups thrive on Black Hawk,” says Ross
As part of their dedication to supporting the farmers of the future and fostering a thriving rural community, Black Hawk also visits regularly to discuss feeding guidelines and monitors the pups’ progress through regular weigh-ins and their transition to adult food.
Given that many of the students are experiencing farm-dog ownership for the first time, Black Hawk also passes on fundamental advice on responsible dog ownership such as worming, flea control and appropriate bedding
Fuel your dog’s performance with Black Hawk
Working dogs are the elite athletes of the canine world and require exceptional nutrition to fuel their performance
Black Hawk’s Working Dog formula provides an optimal blend of protein, fats and carbohydrates to promote sustained energy release, strong lean muscles as well as healthy joints and coats
The protein is derived from high-quality lamb and beef, rich in zinc and vitamin B12 which may help dog’s heart health and boost vitality. Black Hawk Working Dog also contains supplementary L-Carnitine to maintain lean muscles.
Choose Black Hawk and know you’re supporting future farmers
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Meet Alliance Group’s prime wet-age guru
Gerhard Uys MARKETS Food and fibre
GARY Maclennan is known at the Alliance Group as its wet-age guru.
Originally from Dunedin, Maclennan hopped over the border for a job at Alliance’s Southland plant after doing a Bachelor of Science in biochemistry at Otago University. He started his career in the laboratory.
That was 30 years ago, and he has been a Southlander ever since.
“I started off doing the river run, looking at the water quality of our ponding system. It’s where I cut my teeth.”
After moving to the microbiology lab, and later becoming a lab supervisor, he was given an opportunity in the quality team in a sales and marketing role.
“I spent about 20 years in that role. The first thing that was chucked at me was the area of meat tenderness.”
Originally meat aging systems were geared around the frozen carcase trade and highly regulated, with the Meat Board keeping a strict eye on processes, he said.
Around the time he joined the innovation team, the industry was given more freedom to tailor aging processes.
“We weren’t taking carcases and freezing them quickly after slaughter. We were holding them in chillers for longer and started to look at aging in the bag.”
The chilled trade developed, and aging during transit on the ship was becoming the norm.
Alliance also caters to customerspecific requirements related to
aging and meat tenderness.
Maclennan was responsible for developing Alliance’s chilled meat programme.
Move on a few decades and Alliance now ages its premium meats for as little as five days or as much as 55 days, he said.
Research over the years to manage meat tenderness did not only stay in the lab, or look only at the aging process, but encompassed everything from measuring intramuscular fat to nutritional profiles of meat, to exploring how what’s happening behind the farm gate influences the end product, genetics and the influence of different feed types.
Maclennan said he has stuck with Alliance for over three decades because he has been lucky to have good opportunities.
I quite like the old charcoal style of cooking. I like butterflied lamb in the egg, slow cooked.
Gary Maclennan Alliance
He worked across the supply chain and touched on everything from farm research trials to meeting people across the shareholder base and working with packaging, equipment supplies and shipping companies.
How does the meat age guru treat meat at home?
“I quite like the old charcoal style of cooking. I like butterflied lamb in the egg, slow cooked. I’ve converted an old stainless steel drum from an old washing machine into a charcoal cooker.”
OUTDOORS: Alliance’s Gary Maclennan in one of the labs at Alliance. In his spare time he can be found running, outrigger paddling or slow-cooking lamb over coals.
He also enjoys running and biking.
Four years ago he took up the oar doing Waka Ama, outrigger paddling.
“It’s an endurance thing. I belong to one of the most southern regattas. We take to the ocean and lakes. We did 20km on the Otago harbor on King’s Birthday. It’s brilliant.”
“New Zealand has an advantage with free-range, grass-fed systems. I know there’s other parts of the world that also have grass fed, but we haven’t tapped into the potential in terms of how we can market it yet.”
The next big thing in meat might be recognising some of its health benefits, he said.
The meat industry is working to have fatty acids and the omega-3 content of red meat recognised for its health benefits, but the necessary research needs to be done, he said.
The rules around omega-3 have focused on its presence in fish.
One key component, DPA, is not found in fish but is present in red meat, he said.
“There’s an opportunity to put omega-3 claims on our fresh red meat products,” he said.
AngusPRO NZ member joins the Angus Australia board
Annette Scott PEOPLE Governance
IN A first for AngusPRO New Zealand, member Ben Todhunter from Cleardale Angus in the Rakaia Gorge has been selected as an optional appointed director of Angus Australia.
Todhunter brings extensive experience and skills to the position, in particular, NZ beef industry knowledge.
Having representation at board level is encouraging on many levels, AngusPRO chair Tim Brittain said.
Todhunter runs the Cleardale Angus herd alongside Cleardale Merino and Cleardale SX Fine Wool sheep studs.
A graduate from Lincoln University, he also holds an MBA from the Graduate School of Business, University College Dublin, has been a Nuffield Scholar and a Kellogg Rural Leadership Scholar.
He is a director and deputy chair of the NZ Merino Company Limited.
Angus Australia chief executive Scott Wright acknowledged that Todhunter
has been a key NZ-based member.
“He shines out as being a positive contributor to the Angus community and in our member interactions in NZ. We look forward to his involvement at a board level,” Wright said.
Young farmer sees opportunities, not obstacles
Fifth-generation farmer and Beef+ Lamb New Zealand associate director Mark Polson and wife Lynsey gave up corporate life when the call to carve their own path drew them back to the farm. This AgriStar, nominated by FMG area manager Grant Jones, has to keep his nger on the pulse of 4500 hectares, spread across four farms in Whanganui under the Waipuna Farms portfolio.
What gets you out of bed in the morning?
At this moment it’s mostly a three-year-old and a four-monthold, Fred and Henry, that gets us out of bed in the mornings! But on the farm the drive to get going is all encompassing. I enjoy being a custodian of animals and the land. Then there’s the drive to support our great team and see them thrive. Farming is not easy but loving what I do gives me purpose.
What does your day-to-day role look like?
With the four farms spread around the region, and up to an hour’s drive to the furthest farm, I do a lot of oversight work and engage with
teams and managers about what’s happening on the ground. That leads to a lot of decision making. My role can often be as simple as driving a tractor, spraying thistles or drenching lambs, but it can change to high-level decision making in an instant.
What’s your favourite thing about your job?
In a complex farming business you have to take a lot of pleasure in doing the simple things well, which in turn impacts the farm’s overall performance. Problem solving and managing the unexpected is fun because it keeps me on my toes.
What got you into this role?
I did an Honours in Agricommerce at Massey University. I then worked in the corporate sector, rst for Landcorp (now Pāmu) as business manager, then for Farmlands in various roles, covering retail management and supply chain management. My last corporate role was at Carr elds looking after their contracting irrigation businesses. My wife Lynsey also had a great
career, but the draw to carve out our own path became too strong to ignore.
In a complex farming business you have to take a lot of pleasure in doing the simple things well.
Mark Polson Waipuna Farms
What does life look like for you when you’re not at work?
With a three-year-old and a four-month-old we are basically just settling into family life. Our eldest, Fred, loves tractors and motorbikes and trailers, so on weekends he is keen to help me out on the farm.
Why would you recommend people join the primary sector?
With the sector crying out for good, young, talented people to join, it means there’s a mountain of opportunities just waiting for someone to grab. You don’t have to
The feeling’s mutual. FMG was set up in 1905 to give farmers a better deal and that’s something we’re still doing today. We have a set of values we stand by that make FMG a mutual. You’ll probably nd you share these values too.
grow up on a farm to be part of the industry. If you’ve got the passion you can just get amongst it.
How does being a fth-generation farmer in uence future planning? It’s always on our minds. We know we’ve made it this far as a family and we want to keep farming in one form or another, and give our children and grandchildren the same opportunity. Not all my siblings want to farm, but we communicate openly about succession and we’re clear with each other about what we all want to achieve in life. You have to be realistic and try and make it work for everyone.
What are your hopes for the industry?
I hope it remains a viable and pro table industry, but also an industry that New Zealanders and New Zealand can be really proud of. We need to be real environmental stewards, look after our people, and farming needs to be a strong career path. To really achieve that we will need strong leadership.
FEDERATED FARMERS
RMA replacement now underway
Federated Farmers are welcoming a recent Government announcement that New Zealand’s aging and broken resource management laws will be given a revamp before the next election.
It’s been revealed that two new laws will be developed to replace the current Resource Management Act (RMA), with the enjoyment of property rights as their guiding principle.
“These reforms are long overdue, so it’s great to see a commitment from the Government to pass legislation this term of Parliament,” Federated Farmers spokesperson Mark Hooper says.
“They’ve spent almost a year trying to hammer the dents out of the current RMA, but the reality is some putty and a quick coat of paint aren’t going to get us very far as a country.
“The time’s come for us to shift our focus, stop wasting time and money panel-beating the old car, and start designing something new to get our economy back on the road.
“The good news is that New Zealand doesn’t need a complex Ferrari of a resource management system; we just need an affordable and reliable Toyota Hilux that will get the job done.”
Hooper says there is no other piece of legislation that has a greater impact on a farmer’s ability to operate their business.
“It touches almost every decision we make on our properties, from where we build a house or shed right
through to water use or what we do with our dairy effluent.
“The problem is the entire system feels completely broken and unnecessarily restrictive.
“It’s almost gotten to the point where you feel like you need a resource consent to mow your lawn.”
Getting RMA reform right was one of Federated Farmers’ 12 policy priorities for restoring farmer confidence during last year’s election.
“The current legislation may have been put in place with good intentions but, unfortunately, it’s just added unnecessary cost, complexity and uncertainty for farmers,” Hooper says.
“It’s nothing short of a bureaucratic handbrake on economic development that’s undermining farmers’ confidence to invest, and it’s holding back New Zealand’s productivity.”
This sentiment echoes that of RMA Reform Minister Chris Bishop, who last week described the current legislation as “a failure in practice” at a conference in Taranaki.
“The RMA has hindered economic growth and productivity, whilst failing to improve the environment,” he told an audience packed full of lawyers and planners.
“New Zealand has experienced higher house price growth than any other developed economy, many environmental metrics have declined, and our infrastructure deficit has got worse.”
The Government has been very clear that any new resource
HANDBRAKE: The current resource management system is holding back New Zealand’s productivity, and undermining farmers’ confidence to invest, Mark Hooper says.
management system will have a much narrower scope focused on managing the actual effects on the environment.
It will also allow greater use of national standards to reduce the need for resource consents and simplify council plans.
Activity that complied with those standards would not require a consent.
This would shift the focus away from consenting before activities
can get underway, and towards monitoring compliance with those standards and enforcement.
There has also been a clear intent signalled to provide much faster and cheaper processes, with less reliance on expensive and drawn-out litigation.
“These are commonsense changes that will be welcome news for anyone who wants to get out of bed in the morning and actually do something,” Hooper says.
“The current resource management system has just gotten far too bloated, bureaucratic and litigious for your average punter to even engage with it.
“We spend years debating the rules for our local communities, and, more often than not, we all end up fighting it out in the Environment Court before the ink has even dried on the council’s plans.
It’s almost gotten to the point where you feel like you need a resource consent to mow your lawn.
Mark Hooper
Federated Farmers spokesperson for RMA reform
“Any new law needs to cut right through all of that, strip out the cost and complexity, and put the reasonable enjoyment of property rights back at the heart of the system.”
ACT MP Simon Court says taking this kind of approach will stop “every Tom, Dick, and Harry” from vexatiously objecting to peaceful use and development of private property.
“Rules should only restrict activity with material spillover effects on other people’s enjoyment of their own property, or on the property rights of the wider natural environment that sustains us.”
Federated Farmers couldn’t agree more, Hooper says.
Speaking up for drought-hit farmers
For North Canterbury sheep and beef farmers on the financial brink, Environment Canterbury’s arrogance and inefficiency is incredibly frustrating, Karl Dean says.
The province’s Federated Farmers president says many farmers are in survival mode and watching every cent as drought impacts roll on.
“To see ECan frittering away ratepayers’ money pushing on with new freshwater regulations, knowing new national direction is coming, really gets their backs up.” Dean, the 2024 Federated Farmers Advocate of the Year, and his wife Amie are 50:50 sharemilkers on a 200ha farm near Leeston.
They also run sheep, cropping and some beef on 130ha of leased land nearby.
It’s the struggle of many of the region’s sheep and beef farmers that worries Dean at present.
“We’ve had some rain in northern parts but I was talking to someone who dug a fencepost hole and it was bone dry when he’d got down 200mm.
“The sub-soil has no moisture.” Dean’s concerned that when the heat comes in October and November, it’ll quickly burn off whatever moisture is there.
“Potentially we’ll be into year two of the drought.”
Farmers are tailoring their spending to the tough times but ECan isn’t, Dean says.
“They put rates up 17.9%.
“They’re holding farmers and others up with the worst performance in the country on dealing with resource consents in a timely way.
“And they’re pursuing a plan change that will incorporate new rules for winter grazing and dairy land use, totally deaf to farmers’ calls to wait for RMA changes promised by the Government.”
With sheep and beef farm profitability for 2024-25 forecast to drop by 7.4%, farmers up and down the country are grappling with tough decisions on their future.
Drought makes the pinch even more severe for North Canterbury.
“Wool returns have been a bugbear for a long time,” Dean says.
“On top of that we now have depressed sheep meat prices and, realistically, it’s going to be another 12-18 months before we potentially see any significant recovery.”
Dean says “a fair few” North Canterbury farmers will be talking to their bank about support so they can continue to trade and farm effectively.
Stock numbers are often cut in response to drought.
“If you’ve been forced to offload sheep capital stock, it can take at least a year to build numbers back up – a couple of years for beef.”
He’s concerned more sheep and beef farmers will look to pines because of skewed carbon forestry and ETS settings.
“We are seeing more radiata in the northern end of the province.”
The Government needs to step up with more help, Dean says.
“While there’s funding to keep the Rural Support Trust going, money to keep the worst-hit farmers from going under has dried up.”
Dean’s been speaking up for fellow farmers since his days in Taranaki with NZ Young Farmers.
He first cut his teeth in leadership and governance roles representing Young Farmers at Federated Farmers, Ospri and later the Primary ITO.
Not long after his move to North Canterbury in 2019, he became the Federated Farmers provincial dairy chair, and he’s now national dairy council vice-chair.
Given he farms close to Christchurch, TV camera crews often head to Dean’s farm for comment on farming issues.
Media interest has only intensified with the drought.
His Federated Farmers roles can swallow many hours of his week.
With five district councils in North Canterbury, and ECan over the top, there’s a lot of council planning and rates documents to get his head around.
FRUSTRATION: Farmers cutting their costs to stay afloat are finding it hard to see councils failing to rein in rates and unnecessary planning processes, says Federated Farmers Advocate of the Year Karl Dean.
To see ECan frittering away ratepayers’ money pushing on with new freshwater regulations, knowing new national direction is coming, really gets their backs up.
Karl Dean North Canterbury Federated Farmers president
“We’re lucky we have a great policy team on that front here at Federated Farmers. But I enjoy giving back – it’s something off the farm.
“It’s about making sure there’s a farmer’s voice in the room because half the time there’s not if someone doesn’t put their hand up.”
Fronting mainstream media to help city folk understand agricultural issues is key as well, Dean says.
“Our voice needs to be there just as much as the views of the politicians, the scientists, the environmentalists, and others.
“I think New Zealanders want to hear from us too.
“They don’t want to hear so much from the politician, from the council – they want to hear from someone who is on the land and is actually doing the job.”
Young farming leader has ‘seen the other side’
Some might call it a case of gamekeeper turned poacher, but Ben Fraser reckons his shift from council advisor to farming advocate is more the other way around.
The 29-year-old is now provincial president of Whanganui Federated Farmers, but three years ago was working as a freshwater advisor for Horizons Regional Council.
“I’ve been on the other side of the fence, I’ve seen how it works, and I know all too well about the churn of bureaucracy,” he says.
“I’ve also seen how the council operates when it comes to engaging with farmers, and I can tell you, I’m much better suited to sitting on this side of the fence.
“Most of the issues are largely the same, like freshwater rules, but now I really feel like I’m fighting for farmers, making sure the rules are practical, fair and affordable.”
Fraser, a sheep and beef farmer on his family’s two properties in Ohakune and Raetihi, stepped into the role of president earlier this year.
But his path into farming, and eventually farming leadership, took a few turns first.
Having grown up on the family farm, Fraser headed to Canterbury
to study chemistry, then spent three years working in irrigation.
“That made me realise just how big an issue water allocation, water quality and consenting are in the South Island,” he says.
I can tell you, I’m much better suited to sitting on this side of the fence.
Ben Fraser Whanganui Federated Farmers president
“So, I went back to Lincoln University to do a postgrad in water resource management, and I also dabbled in environmental law.”
That study opened a door for him to return to Whanganui, where he stepped into a freshwater role with Horizons that was “eye-opening”, he says.
“It was an interesting insight into the running of regional councils, and their processes, which is a lot different to the farm back home.
“I saw inefficiencies there. If it were run like a business, you’d go broke pretty quickly.”
Fraser says he soon realised his
main motivation in the council role was to help farmers.
“Coming from a farming background, I could actually understand the issues in a practical way and try to help farmers navigate the world of bureaucracy.
“I far preferred me being there than someone who didn’t have a clue about farming, pointing to the rulebook and saying, ‘this is what you can and can’t do’.”
Fraser believes his time at the council has given him a unique perspective that’s now useful as an advocate for farmers.
“I’ve had a real insight into the inner workings of those council processes,” he says.
“While we don’t always have control of those processes, we can be strategic about how we work around them and advocate for farmers.”
He says councils are often constrained by things outside of their control – but there are plenty of good people working on the ground.
“There are some great people out there who come from farming backgrounds, but they’re often restricted by processes, management or, effectively, the council.”
Fraser has continued helping
farmers in his spare time since leaving the council, with a side business that sees him guiding people through farm assurance programmes.
VITAL: Ben Fraser says three years working in irrigation made him realise what a big issue water allocation is.
In his Federated Farmers role, he’s been fortunate to have some highly experienced Feds leaders showing him the ropes since he became president.
“I’ve got some great farmers supporting me, like Grant Adkins and Mike Cranstone, and I’ve been learning a lot from them.
“It’s been a steep learning curve but I’m absolutely loving it and taking it all in.
“What I really want to do in this role is channel the grassroots voices of farmers in Whanganui to achieve some better freshwater rules with Horizons.”
Federated Farmers has been getting some positive results locally, he says.
“We recently had a great turnout of
farmers calling for Horizons to delay introducing new freshwater rules until 2026/27, when a new national direction will be in place.
“Council heard our message loud and clear, and the new rules have been delayed.
“That’s a huge win and should give farming families some breathing room.”
He says the need for Federated Farmers at the local level has never been stronger.
“When you work for council, you see just how many other groups are in there pushing their views, like Forest and Bird or Fish and Game.
“We need Federated Farmers in there too, offering that farmer perspective, and bringing some balance to the debate.
“That’s the real value of your membership fee. We’re in those rooms most farmers don’t have time or energy to be in, making sure you can keep on farming.”
Fast & Furious: New farming rules for Canterbury?
Federated Farmers say Environment Canterbury are secretly rushing through excessive new farming rules for the region – and if the community knew about it, they’d be furious.
“The problem is nobody really knows what’s going on because consultation is being carried out behind closed doors,” says Federated Farmers South Canterbury president Greg Anderson.
“Only a very small, handpicked group have been invited to give feedback in what feels like an incredibly undemocratic and rushed 10-day consultation period.
“To make matters worse, that already-small list for consultation includes a disproportionately high number of activists and environmental organisations, rather than actual water users.
“That’s a recipe for disaster, and risks putting political partisanship ahead of the needs and best
BARRIERS: The proposed rule changes, which ECan plan to notify in October, include new restrictions that will have huge implications for the take and use of water, grazing, and other farming activities.
interests of our community.”
Environment Canterbury’s (ECan) consultation on proposed changes to the Canterbury Land and Water Regional Plan ended on September 20.
“I use that term ‘consultation’ fairly loosely, because it doesn’t really feel like much of a consultation to me,” Anderson says.
“It feels like the council are just pushing through a predetermined outcome as fast as they can and hoping nobody will notice.
“The whole process feels very rushed, secretive, and highly political. That’s quite a departure from the open and transparent consultation undertaken for previous plan changes.
“In the past they’ve taken a much more collaborative approach with our community, involving zone committees, public meetings and workshops before rule changes have been made.
“It’s really disappointing they
SECRETIVE: ECan’s ‘consultation’ on new rules is happening behind closed doors, says a concerned Greg Anderson.
It feels like the council are just pushing through a predetermined outcome as fast as they can and hoping nobody will notice.
Greg Anderson South Canterbury Federated Farmers president
haven’t continued in that vein, because I think it’s an approach that’s served our community very well over the years and has delivered rules with widespread support.”
The proposed rule changes, which
ECan plan to notify in October, include new restrictions that will have huge implications for the take and use of water, grazing, and other farming activities.
Anderson says this is in addition to the requirements of the current ECan rules that already require land use consents, farm environment plans, and compliance with nutrient limits.
“They’re essentially trying to lock in the unachievable and unaffordable environmental standards introduced by the previous Labour Government.
“The problem is those standards are completely unattainable, unaffordable and unrealistic for our community. They will completely erode the viability of farming in Canterbury.
“That’s why the Government are in the process of repealing those standards and replacing them with something much fairer and more practical.”
As they currently read, the new rules would restrict the grazing of dairy cattle to existing areas, with any new grazing requiring an expensive and difficult-to-obtain non-complying consent.
“This is such a bizarre approach for ECan to be taking, where they make a distinction between grazing dairy cattle and beef cattle,” Anderson says.
“It’s really going to drive up the cost of dairy grazing in Canterbury and restrict the ability of sheep, beef or arable farmers to explore dairy grazing as an option in the future.
“For some of those farmers already under huge financial pressure, having another potential income stream taken off the table will be an absolute kick in the guts.”
He says it could lead to some perverse outcomes, with existing dairy grazing in less-than-ideal areas allowed to continue with no ability to move to other more suitable areas.
Anderson is also questioning the wisdom of ECan introducing strict new consenting requirements when the council are already struggling to process their existing workload.
ECan are ranked at the bottom of the country’s 11 regional councils when it comes to processing nonnotified consents within the legal timeframe of 20 working days.
“When it comes to meeting the needs of farmers and our wider community, ECan are failing pretty miserably. Last year they only processed 26% of consents on time,” Anderson says.
“The likes of Otago Regional Council and Environment Southland process a similar number of consents each year but still managed to achieve 100%. It’s simply not good enough from ECan.”
ECan’s plan requires a significant number of consents, including consent to farm. Many of these will soon be up for renewal.
“The problem’s going to get a lot worse before it gets better,” Anderson says.
“Instead of pushing through excessive new rules that will see more unprocessed consents piling up on a desk at the council, they should be looking for ways to streamline processes.
“That could mean having more permitted activities or increased use of farm environment plans that have been working really well in parts of Canterbury.
“Expensive and bureaucratic resource consents aren’t the only way to manage the environmental risks of farming.”
Feilding 796 Kimbolton Road
216.9 ha - Low input dairy farm with location
Located just 5 minutes from the Feilding township, this property offers an exceptional location, cost-effective production, quality infrastructure and top-notch soils and pastures. Currently run as a System II dairy unit it also rears and winters livestock for the Vendor's other property, including 200 calves and up to 1,000 cows producing up to 200,000 kgMS annually. Designed for ease of management, the centrally located 60-bail rotary shed allows cows to walk no more than 850 metres. The flat contoured property features some of the Manawatu's best soils, with a proven history of regrassing, fertiliser application and drainage In addition the property has 140 ha of consented Roto Rainer irrigation. Improvements comprise of two dwellings, various support buildings (feed pad, hay sheds, calf rearing sheds), and stock handling facilities. The quality of the location, soils, and infrastructure makes this property a compelling opportunity for buyers.
597 Weber Road
Located just minutes from Dannevirke, Waikoata Hills presents an exceptional opportunity with its prime location and significant farming improvements. The property boasts approximately 80 ha of cultivatable land, mostly adorned with improved pastures. Substantial drainage improvements have been implemented to boost land productivity. This favourable farming location ensures excellent
Tender closes 11.00am, Tue 12th Nov, 2024, 54 Kimbolton Road, Feilding View Tue 8 Oct 11.00 - 11.30am Tue 15 Oct 11.00 - 11.30am Web pb.co.nz/FR192276
Stuart Sutherland M 027 452 1155 E stuarts@pb.co.nz
Ted Shannon M 021 833 536 E ted.shannon@pb.co.nz
Blair Cottrill M 027 354 5419 E blair@pb.co.nz
143 Otiake Road
TE AWAMUTU, WAIKATO 1288 Pokuru Road
Productive Pokuru
These 152 hectares (more or less) presents extremely well to purchasers who desire contour, infrastructure and production.
50 bail Waikato rotary ACR’s, 300 cow feed pad worth auto-wash, 200 cow stand-alone feed pad with effluent storage, 250 head calf shed with vats, and reticulated milk pump system. On average 455 cows wintered, 410 cows milked, 202,335kg MS produced. Fertility is strong
Two silage pits consisting of a 400 tonne maize pit and a 250 tonne maize pit Three sheds/workshops and two half round barns. Fencing is top grade, excellent water, easy rolling contour, and well-maintained races.
Main homestead is four bedroom and overlooks the farm. There are also two more dwellings – one three bedroom and one four bedroom.
Very well-located dairy farm with all the levels of infrastructure in place. Quality farm - see you at the Open Days.
pggwre.co.nz/TEA39997
TE AWAMUTU, WAIKATO 192 Morgan Rd
Flatlands - 120 Hectares
100% flat contour. 50 ASHB - 10 years old with cup removers, 8 bay calf shed (one bay lockable) and feed pad. One dwelling - 2014 Three-bedroom brick home. Last four years average production: 243,475kg MS - average 525 cows. The vendors are leasing 53 hectares (41 hectares effective) off the neighbouring farm. This production reflects that. This premium flat dairy farm offers top-tier milk production and is presented to the highest standard The fencing, and lanes are of a top order. This farm is ideal for those looking for a high-performing dairy operation with great location.
TENDER Plus GST (if any) (Unless Sold Prior) Closes 2.00pm, Friday 1 November VIEW 10.00-12 00pm Wednesday 2, 9 & 16 October
TENDER Plus GST (if any) (Unless Sold Prior) Closes 2.00pm, Friday 25 October VIEW 10.00-12.00pm Tuesday 1 & 8 October
Peter Wylie pggwre.co.nz/TEK40041
M 027 473 5855 Peter Wylie
E pwylie@pggwrightson.co.nz
M 027 473 5855
E pwylie@pggwrightson.co.nz
The Proven Dairy Performer
A highly sought after land area, production history and location Renowned for its favorable climates, grass growth and welcoming farming community, this exciting new listing located 18 kilometres east of Otorohanga will tick a lot boxes
118 8861 hectares (more or less) in 3 titles
• Production history exceeding 139 000 kg /ms
• Milking between 332-355 cows
30 Aside herringbone Cow shed and usual support buildings
• Five bedroom main home + cottage
Surplus to requirements as our vendors look to condense their farming operations, providing a prime opportunity to step into a well set up farm with a proven track record of production
For Sale Tender closes Thurs 24 October, 1pm (unless sold prior)
View Open Days: Tues 1 Oct, Tues 8 Oct, Tues 15 Oct 11.00am sharp blueribbonharcourts.co.nz/property/OH22488
Kerry Harty M 027 294 6215 E kjharty@harcourts.co.nz Deadline Sale Closes 17th Oct 4pm (unless sold prior)
By Appointment
Van Lierop 027 445 5099 matamata.ljhooker.co nz/KQ8HR1
Nomination for Directors
Nominations are now open to fill two vacancies for the office of Director of Alliance Group Limited
Jason Miller is retiring by rotation and has advised he will not be standing for re-election
The following are the desirable key attributes for a Director of Alliance Group Limited 1 Alignment to Alliance and the co-operative ethos
Good judgment and strategic reasoning
Meat industry and/or agribusiness and rural connectivity
Problem solving skills
Demonstrated commercial business or financial aptitude and acumen
10 Customer and stakeholder connection (including regulatory and iwi)
Nominees may be assessed by Propero Propero specialises in governance services with a focus on board evaluation, director search and election support Propero has extensive experience in candidate elections and regularly works with a broad range of scale co-operative, mutual and member-based organisations, with many being in the primary sector
The Propero process may involve nominees completing a self-assessment against the criteria listed above, a consideration of strategic reasoning, an interview with a Propero Managing Partner and governance reference checks Propero would then create an independent summary of the nominee’s profile and ratings against the desired key attributes, with the summaries accompanying the bios prepared by the nominees for voting shareholders
Nominations must be made on the official form,
PARADISE VALLEY FARM
“Number One samurai, Demonstrate your skills!” commanded the Emperor.
The first samurai stepped forward, opened a tiny box, and released a fly. He drew his samurai sword and “swish”; the fly fell to the floor, neatly divided in two!
“What a feat!” said the Emperor. “Number Two samurai, show me what you can do.”
The second samurai smiled confidently, stepped forward and opened a tiny box, releasing a fly. He drew his samurai sword and “swish, swish”; the fly fell to the floor, neatly quartered!
“That is skill!” nodded the Emperor. “How are you going to top that, Number Three Samurai?”
The third Samurai stepped forward, opened a tiny box, released one fly, drew his Samurai sword, and “swoooooosh” flourished his sword so mightily that a gust of wind blew through the room. But the fly was still buzzing around! In disappointment, the Emperor said, “What kind of skill is that? The fly isn’t even dead.”
“Dead?” replied the Samurai. “Dead is easy. What takes REAL skill is circumcision”
SERVICE BULLS FOR SALE OR LEASE
Lease Jersey bulls from $500
A/c Kevin & Cindy Death 376 Eltham Road, Mangatoki, Taranaki Thursday
9th ANNUAL YOUNG IN-MILK FRSN/FRSNX COW AUCTION
A/c TROY STEVENSON
Date: Friday 4th October 2024
Address: 437 Patiki Road, Pihama, South Taranaki
Start Time: 11:30am (undercover, gourmet BBQ lunch provided) will be available for online bidding
With guest speakers
Trevor Cook
COMPRISING:
165 x young Friesian/Friesian Cross In-Milk Cows – BW282, PW365, RA100%
DETAILS:
• TB C10 – Mycoplasma Bovis not detected and BVD negative
• All cows in-milk, milked twice daily in rotary shed
• Herd Tested 26th September 2024 with information available soon after
• Strict selection policy all young cows mainly 2-4 year olds, including a CRL top Friesian Heifers
AUCTIONEERS NOTE:
Due to a very robust selection process, this 9th annual offering will be the highest that has been presented. All cows personally guaranteed by our vendors offering 1-week soundness trial. Cows are milked to supply calf milk then offered for auction. Young and all sound, these cows will come forward in good condition ready for mating. We totally recommend these cows. Annual buyers have commented on the high standard of cows offered previously.
DELIVERY/PAYMENT TERMS:
Deferred Payment, due 20th January 2025 Immediate Delivery
CARRFIELDS
SOUTH TARANAKI HIGH QUALITY IN MILK COW AUCTION
Date: MONDAY 7th October 2024
Address: Lower Duthie Road , South Taranaki Start Time: 11:30am will be available for online bidding
KILLARNEY PASTORAL TRUST
40 x Friesian/Friesian Cross In-Milk Cows. BW299, PW376, RA100% Herd Test – 23.05ltrs, 2.0ms, SCC 57,000 Including complete replacement line of in milk heifers from long established herd sold at on farm auction last September. All grass system, herd tested 17th September. Cows will be presented in top condition ready for mating.
J & B DUNLOP FAMILY
20 x Friesian/Friesian Cross In-Milk Heifers. BW335, PW337, RA100% Genuine in-milk heifers for sale due to change in farming system. Crossbred content out of a capital line of Friesian/Friesian cross in-milk heifers. Milked twice a day, herd tested 18th September.
CRECER FARMS
65 x Friesian/Friesian Cross In-Milk Cows. BW297, PW328, RA100%
Quality young hand selected cows milked twice a day to supply calf milk. Herd tested –2.37ms, SCC 104,000. Will come forward in outstanding condition for mating.
PAYMENT TERMS:
Payment 14 days after sale, unless pre-arranged prior to the sale. For purchasers outside of the region, cows can be returned home to be milked to suit trucking availability.
CARRFIELDS LIVESTOCK AGENTS: Brent Espin 027 551 3660
Crowley 027 215 3609
Hornby 027 636 2090
Hurley 027 414 6756
Dairies
Patiki
Taranaki,
Sale
Pihama,
849 2112
Markets
Export returns for lamb show some upside
Store buyers who took a punt in April have been rewarded, but the challenge for exporters is to try to keep some momentum going into the new season.
FARMGATE lamb prices are set to round out the 2023-24 export processing season at either side of $8/kg. The South Island takes the honours for the highest returns. AgriHQ data shows an average lamb indicator price of $8.15/kg for the last week of the season. This is in stark contrast to last year when prices averaged $6.90/kg.
Back in April, farmgate lamb prices ranged between $5.90/kg in the South Island to $6.15/kg in the North Island. At the time, the store lamb market reflected that weakness, with prices ranging from $2.30-$2.50/kgLW. Export markets had the potential to go either way, with memories of the sudden downside from June 2023 still fresh.
Yet those store buyers who took a punt back then have been rewarded with farmgate prices lifting higher than expected through late winter/early spring. The pricing upside reflected both the drop in lamb numbers and an
improvement in export values.
Unlike last spring, trading margins for those who moved early have provided a good return. However, for those who climbed into the market a lot later, margins have been thinner. Store lamb prices rose by close to $1/kgLW since April buoyed by improving market conditions.
After bottoming out in April at $9.78/kg, average export values (AEVs) for lamb have continued to lift month on month. The latest data shows August values rose to $11.51/kg. This was over $1/ kg more than we were receiving last year, hence the ability for farmgate prices to show further upside and punch above year-ago levels.
Interestingly, AEVs for lamb have only been higher than this level in August twice before, both during the post-covid era when global markets were flush with cash. Farmgate prices, however, have been higher through August more frequently.
On paper that would suggest processor margins have been fatter than normal this winter. But realistically much of the margin is being soaked up by fixed plant
It’s heartening to see an improvement in farmgate returns for lamb. Yet this part of the season is irrelevant for many.
overhead costs given most plants weren’t full, despite the reduced capacity. This marred the ability to pay even more for lambs at the farmgate.
The current upside to export values is connected to much lower supplies out of New Zealand. August was a low point, but September has seen an increase in lambs processed, as the rush to offload gathers speed.
It’s heartening to see an improvement in farmgate returns for lamb. Yet this part of the season is irrelevant for many, with more focus being placed on what happens as new season lamb supplies build. Depending on spring conditions
The
with
over the next six weeks, new season lamb slaughter typically starts to build from early November. AgriHQ’s latest Livestock Outlook report notes that due to higher farmgate prices now, there is every chance lamb prices into December may average slightly better than August’s outlook.
If they fall harder than forecast, it would indicate a weaker-thanexpected export market and/or meat companies reducing prices
harder than normal to recoup any earlier procurement-driven losses. The challenge for exporters is to try to capitalise on the recent pricing upside and keep some momentum going into the new season. We have seen export markets step up and pay for a smaller volume of lamb out of NZ, but that needs to be maintained as our supplies lift. More so, given Australia is set to ramp up production and exports through to the year’s end.
Weekly saleyards
The store cattle market got off to a cracking start in spring, in fact it was flying in the dying days of winter. This early market has done its dash, though, and there is now a lull in demand. It has mostly been caused by the weather. In the South Island, repeated cold snaps have slowed grass growth significantly while a deluge of rain in lower Manawatū has soaked the ground. At Feilding, the heavier end of yearling traditional steers, 315-365kg, sold on average 25c/kg softer than the previous sale. It won’t last long, though, and once grass growth ramps up again the market surely will too.
2-year Friesian heifers, one line, 428kg
Yearling Hereford-Friesian steers, 297-307kg
Yearling Hereford-Friesian steers, 240-273kg
Yearling Hereford-Friesian steers, 171-222kg
Yearling Angus-Friesian steers, 231-277kg
Yearling Friesian bulls, 176-237kg
Yearling Hereford-Friesian heifers, 163-229kg
2-year beef-cross, dairy-beef steers, 505-621kg 3.56-3.78
2-year dairy-beef, Friesian-cross heifers, 426-480kg
Yearling dairy-beef, Jersey-cross steers, 272-333kg 1100-1270
Yearling dairy-beef, Friesian-cross heifers, 245-336kg
Aut-born weaner dairy-beef steers, 105-148kg
Aut-born weaner dairy-beef, dairy bulls, 108-125kg
Stortford Lodge | September 25 | 389 cattle, 2819 sheep $/kg or $/hd
Mixed-age Angus, Hereford-Friesian cows, 499-596kg 2.73-2.80
2-year Friesian bulls, 581-586kg 3.60-3.76
2-year Angus & Angus-Hereford heifers, 418-435kg 3.47-3.52
Yearling traditional steers, 264-303kg 1160-1360
Yearling traditional heifers, 208-253kg 850-945
Mixed-age ewes & lambs, medium to very good 87-105
Store male & ewe lambs, very heavy 176-192
Store wether lambs, one line, heavy 149
Store male lambs, good
Store ewe lambs, medium to good 105-140
Store mixed-sex lambs, heavy 124-157
Dannevirke | September 19 | 84 sheep $/kg or $/hd
Feilding | September 20 | 1651 cattle, 3193 sheep
2-year traditional steers, 357-576kg 3.75-4.05
2-year South Devon steers, 501-561kg
2-year traditional heifers, 374-515kg
Yearling Angus steers, 272-299kg
Yearling Friesian bulls, 334-426kg
Store ewe lambs, good
Store ewe lambs, medium
Feilding | September 23 | 168 cattle, 6221 sheep
Prime Hereford-Friesian cows, one line, 573kg
Boner Friesian cows, 411-650kg 2.44-2.65
Boner Friesian-Jersey heifers, 470-530kg 3.26-3.44
Prime mixed-sex lambs, very heavy 179-210
Prime mixed-sex lambs, heavy
Rongotea | September 24 | 166 cattle
Boner Friesian, Friesian-cross cows, 470-613kg
AgriHQ market trends
Cattle Sheep Deer
It’s just spring doing its spring thing
HOW are we at the 10th month of the year already?!
We’ve passed the spring equinox and now no matter how you slice it or dice it, we are officially in spring.
Not only that but our days are now longer than the nights and will continue to grow longer until we reach a few days before Christmas. Three more months of sunlight hours extending and darkness shrinking.
With spring’s windy westerlies turning up a month earlier for many regions this year we’re already seeing that drying-out phase in the east.
Eastern areas of the North Island are drying out the most right now, with Bay of Plenty and Hawke’s Bay leading the way.
Canterbury, from a soil moisture point of view, has certainly had some relief over the past month or so.
Around about the time in August that our lower hydro dams were making headlines, that’s when
more rain set in to the West Coast – and we’ve had many people now telling us they want the rain to stop in Westland and Southland in particular.
Otago is much wetter than usual as well – mostly thanks to spillover from the West Coast deluges but also the relentless southwesterly flow New Zealand is having this spring.
As I wrote last week, the Southern Ocean weather is especially stormy this year.
We’ve been seeing frequent lows with air pressure down into the 940 and 950 hPa range for months. Coupled with highs exiting Australia to our north, it’s the perfect recipe for a delicious airpressure sandwich with the filling being the windy westerlies surging over New Zealand.
Speaking of Australia, large parts of the continent are now dryer than usual – in particular Victoria, South Australia and the Wheatbelt in Western Australia.
Growers there are telling us in our YouTube video comments that many crops are about to fail if rain doesn’t fall in the next week or two.
Southern coastal Australia
has had a similar spring to our South Island – but the rain hasn’t penetrated far inland, leaving crops and farms dry there.
At the time of writing, downpours were crossing into New South Wales and parts of South Australia – but it looked like hitand-miss relief.
For all the chatter of La Niña this year, Queensland remains remarkably dry with still no signs of its wet season starting.
My column next week will take another closer look at what is happening in the equatorial Pacific.
Australia’s Bureau of Meteorology is still saying Niña looks borderline – and may not be sustained even if thresholds are briefly met. So you may find some forecasters around the world saying it’s here, while others hold back.
But keep it simple – if it’s not affecting NZ’s weather pattern in any way, there’s probably not a lot of use in talking about it. Until tropical rain heads southwards into northern Australia and north of NZ, our weather will continue to be dominated from our west and southwest.
monthly
Minimum investment of $100,000
SPI for 9am 25/08/2024 to 9am 24/09/2024
DEVIATIONS: Where the rain fell – or didn’t fall. The SPI indicator shows the anomalies (deviations from the mean) of the observed total precipitation over a 30-day period.