Farmlander Summer 2022 by Farmlands

SUMMER 2022

Future proof farming Feeding, fixing and fencing

Pasture to plate

Modern merino

The future of breeding

Kiwis taking our wool to the world

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STICK CHRISTMAS ON THE CARD AND WATCH THE SAVINGS STACK UP. How big will you save this Christmas? Your Farmlands Card gets you exclusive savings at over 7,000 Card Partner locations nationwide. That’s everything you need for a merry Christmas – from your groceries to your gifts, your tinsel to your tech. See where you can save at cardpartners.farmlands.co.nz

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IS THIS NZ’S MOST VALUABLE CARD? YOU DECIDE.

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UP FRONT | Meet the team

FARMLANDS PUBLICATION TEAM Brooke Bayliss-Browne Deborah Allan Ian Turner CONTACT Farmlands 535 Wairakei Road, Burnside, Christchurch Ph: 0800 200 600 Email: farmlander@farmlands.co.nz CONTENT & DESIGN BY SCG David Nothling-Demmer LauraGrace McFarland Julian Pettitt Ayla Miller Bernadette Basagre PRINTED BY: Webstar ON THE COVER Come rain or shine, Charlie Smith gets the fence in on time. Photograph by Bailee Reuben Design by Julian Pettitt, Joe Scorgie, Britt Rust

This publication is printed on paper made from pulp that is environmentally certified, and from renewable and sustainable sources using vegetable-based inks. It is Elemental Chlorine Free (ECF) and manufactured under strict ISO 14001 Environmental Management Systems (EMS). The plastic wrap is 100% recyclable in the New Zealand soft plastic recycling scheme.

The information contained in this publication is given in good faith and has been derived from sources perceived to be reliable and accurate. Whilst every effort is made to ensure the accuracy and correctness of the information, Farmlands gives no warranties, express or implied, regarding the information nor does it accept any liability for any opinion or information (including the accuracy or completeness thereof) or for any consequences flowing from its use. The information and views expressed in this publication are not necessarily the views or opinion of Farmlands, its editorial contributors, freelancers, associates or information providers. Independent advice is recommended before acting on information or suggestions contained herein. Readers who rely on this information do so at their own risk. Reference to any specific commercial product, process, or service whether by trade name, trademark, manufacture, or otherwise does not constitute an endorsement or recommendation by Farmlands. No part of this publication may be reproduced in any form without the prior written permission of the publisher. Prices and offers apply only in the month stated on the front cover of this publication and while stocks last. Not all products are available at all Farmlands stores. All prices include GST unless otherwise stated.

Brooke Bayliss-Browne, Deborah Allan and Ian Turner.

Farming with you in mind Farming is often said to be a labour of love and that certainly is what we’ve put into this new look and feel Farmlander. From the curation of engaging content to the in-depth knowledge and advice you’ve come to expect from Farmlands, this magazine has been restyled with you, the shareholder, in mind. Now a quarterly publication, Farmlander will focus on the seasonal needs of farmers and growers, to provide more helpful content when you need it most. Presented in a way that is both informative and functional. Reducing the frequency of the magazine saves on printing and postage, which can be invested back into the content, making it a better experience for you as a reader. We’ve also taken extra steps to reduce the impact of the magazine on the environment by choosing to work with a content and design team that are Toitū Carbon Zero and printers that are Toitū Diamond standard. In addition, Farmlander is printed on paper made from pulp that is environmentally certified, and from renewable and sustainable sources using vegetable-based inks, because we care about the environment. And while the magazine is wrapped in plastic, so it gets to you rain or shine, the good news is this plastic wrap can be recycled in the New Zealand based Soft Plastic Recycling Scheme. The soft plastic recycling scheme is now open to rural addresses through the courier bag system www.recycling. kiwi.nz/recycle-courier-bags. Alternatively, drop the magazine wrap into a Farmlands store and we will get it back to the recycling facilities. We hope you find the content in this issue of value and an enjoyable read and would appreciate any feedback on what you want to read more about as we continue to evolve. Ngā mihi,

Brooke, Deborah and Ian Got something to share with the team at Farmlander? Email us at farmlander@farmlands.co.nz Keep up-to-date with the latest news from across the co-operative via our website and social media. @farmlandsnz

@farmlandsnz

Farmlands Co-operative Society Limited

farmlands.co.nz | Farmlander | 3

FARMING IS EVERY DAY, SO OUR FUEL DISCOUNTS ARE TOO.

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GET 12c OFF PER LITRE* EVERY TIME YOU SWIPE YOUR FARMLANDS CARD AT Z, CALTEX OR CHALLENGE.

*Rebate of 12c per litre off the pump price at Z, Caltex or Challenge when using your Farmlands Card. Not to be used in conjunction with any other offer.

UP FRONT | From the CEO

A new direction Farmlands’ Chief Executive Officer Tanya Houghton introduces our new and improved magazine and shares how, with your support, Farmlands will continue to move in an exciting direction.

Tēna koutou katoa, Welcome to our new Farmlander magazine. We have started again with the magazine, looked at feedback we received from you about what was working and what wasn't and responded to a few publishing challenges. We have created something new and exciting. We are proud of it, and I hope you enjoy it. I look forward to hearing what you think of this first edition. Importantly, the new Farmlander is just one example of changes you will see from us. You will notice us show up differently from now on, being more open with you about what is going on at Farmlands – including seeking your feedback more. More information is shared on this in our article on 'This Is Us'. It is a very busy time of year on farms and orchards around Aotearoa. We know that spring started later this year with a lot of wet weather through August and September significantly impacting many of your plans. Our teams instore and those who visit you, are here to help as you play catch-up on spring and prepare for the important summer months. Let us know what you need. Recent news from Farmlands is that we have announced our 2022 annual result and held our Annual General Meeting at our exciting new flagship store in Ashburton. I let you know in late September that we were providing an $8.6m shareholder distribution this year – the first in four years. In November we'll pay this as an $11.9 million gross taxable

distribution, built on growth in net profit, total group revenue and total group turnover, all underpinned by good cost control in 2022. This is just the start for Farmlands as we focus on being commercially smarter to get better results for you. One thing that you might not be aware of is that our people also benefitted from this strong financial performance with $950k of funds being distributed equally across our teams as a bonus for their hard work in a challenging year. This is part of a new employee scheme called ‘Your Share’ that means our teams can benefit from the co-op's financial success each year. I have been the CEO of Farmlands for just over a year and I have loved every minute of being in my role. It is an exciting time to be here. Sure, there are challenges for Farmlands and our customers. What we have demonstrated in the last year is that – with the right Farmlands team in place, focused on the right things – we can deliver. We will need your support to continue to move in the right direction – focused on getting you better prices, rebates, greater shareholder returns and being able to invest more back into the sector. Together we will achieve this. Nga- manaakitanga (With best wishes)

Tanya Houghton Chief Executive Officer Farmlands Co-operative Society Limited

farmlands.co.nz | Farmlander | 5

Inside our

SUMMER issue 8

THE BIG PICTURE

Mission merino There’s more to modern wool than meets the eye.

Glenbrook Station profile

UP FRONT

Simon and Kirsty Williamson take their passion for wool around the world.

This is us

Farming through the ages

A story on the vision that represents Farmlands as it is today.

A look at lessons learnt by multigenerational farmers.

Roger Sceats shares his views on the Farmlands journey so far.

The Open Farms initiative is calling on farmers to open their homes to urban Kiwis.

Sarah Reed shares the story of the evolution of The Grumpy Merino.

Shared passion drives change

Masters of disruption

Open hearts, open farms

Selling Kiwi-made: Grumpy Merino

Taking stock

A journey back in time to meet the founding farmers of Farmlands.

A look at trends expected to shape the rural property market in 2023.

News, views and reviews from across the Farmlands business.

Details on the National Policy Statement for Highly Productive Land.

Things are looking up for Farmlands’ shareholders.

Trends, take-outs and things to savour this summer.

Clippings

Annual results

6 | Farmlander | farmlands.co.nz

Priming the land

Seasonal snippets

LAY OF THE LAND

Lack of labour How farmers in horticulture are dealing with the labour shortage.

A beer among friends The craft brewers turning water, malt, yeast and hops into award-winning beer.

Wading through warmer waters A look into effective water management strategies as temperatures rise.

The new breed What the future of breeding holds for the next generation of animals.

A prolonged drench Advice on the drenching method of Refugia.

Precision nutrition Dr Rob Derrick shares his expertise on supporting ruminant species in the years to come.

Strive to thrive, not just survive! The Calf Experts share their tips on developing the rumen of calves.

Summer maintenance Products from Farmlands to make your summer maintenance easier.

Easy as fencing Meet the clever mind behind geared electric fence reels.

Last word FMG's advice on reducing the risk of crime and how to protect your valuable assets.

Buzz off! Farmers are advised to stay extra vigilant against the fall armyworm.

76 farmlands.co.nz | Farmlander | 7

From humble beginnings in a Hawke’s Bay hall, to a network of 82 stores, Farmlands has come a long way in 60 years.

stablished in 1962 as a co-operative trading society with the aim of disrupting the status quo, Farmlands is now a top 20 New Zealand company with a current shareholder register of more than 80,000, staying true to its founding goal of getting farmers a better deal. In 1977 Roger Sceats answered an ad for the Chief Executive of the East Coast Trading Society and began to work on his goal of making farming more profitable by reducing input costs. For the next decade, Roger led the organisation (now called Farmlands) through a period of rapid growth supported by Board Chair Tom Cranswick. The original Farmlands Card was also launched, then called Farmacard, which allowed members to make purchases through other retailers and service providers. Building on these founding values, Farmlands has grown and changed with its members in the last 60 years but one thing has remained constant – the overall goal of supporting those working the land and getting the job done. In August this year, Farmlands launched THIS IS US, a focused and comprehensive vision representing the coop as it is today and the values that will guide it through the future. This vision builds on the founding function of Farmlands and clearly sets out the organisations purpose, principles and values looking forward to the next 60 years. As New Zealand grows, matures and changes as a nation, it’s important that Farmlands does too and continues to represent its shareholders and customers.

8 | Farmlander | farmlands.co.nz

Embracing the rich diversity of Aotearoa New Zealand is now a key principle of the co-op. Māori farming businesses are booming. In fact, in 2020 these businesses made a profit of $497 million. By truly championing diversity and Te Ao Māori, a contemporary Farmlands will be at a competitive advantage. Following collaboration and discussion with Farmlanders, a new purpose was identified; To be the ‘go-to’ for everyone connected to our land. This means being a reliable source for Farmlanders, customers, communities and the industry in general with no discrimination, no matter the scale.

UP FRONT | This is us

After all, having a connection to the land is something we all have in common and this should be celebrated and nurtured. On top of this, four principles to guide Farmlands have been established. These are: • Always backing Kiwis rain or shine, year in year out • Work as one, we help each other, we win together • We’re rural people supporting our rural communities • Looking after our land and our people The contemporary Farmlands understands what it takes to make a great team. Diversity, different perspectives and a fresh approach to problems to make everyone in the team stronger. Aotearoa New Zealand’s farming community is known for its resilience, innovation, ingenuity and desire to just get on with it. Farmlands will continue to build on these solid foundations, focusing on creativity and ingenuity, building up an even stronger organisation and industry for the next generation of kaitiaki. Farmlands fosters an understanding that together the industry is stronger and if we work as one, we all win. This harks back to the founding principles of the co-op. Back in the 60s, Farmlands was established as a result of a growing feeling of discontent among farmers with the way the market was going. A belief was fostered that firms were using their power as a monopoly to the detriment of the farming industry. A shared will to bust these monopoly’s

fostered an enthusiasm to cooperate, realising that ultimately they were stronger together. This is something that has been at the heart of everything Farmlands has done and will continue to do. Together with its team of trusted advisors and farming experts in every facet, the Farmlands Co-operative Society remains an unwavering supporter, supplier and advocate for everyone connected to the land while respecting our history and culture.

farmlands.co.nz | Farmlander | 9

Roger Sceats gave Farmlands its name and a sound financial base. One of the original disruptors, he shares his views on the journey so far.

oger Sceats was looking for a bit more meaning in his life when he saw the job ad that would set him on the path to Farmlands. It was 1977 and Roger, in his mid 30s, was restless. He had left his role as managing director of a Fletchers joint venture that was building subdivisions throughout the North Island. Fletchers, known as ‘Ulcer City’ at the time, were hard task masters and it got a bit too much for him. He switched to commercial property development, “the most boring job in my life”. The job ad was for chief executive of the East Coast Trading Society, as Farmlands was originally known in the North Island when formed in 1962. Roger was intrigued, despite having no farming background. Here was a chance not only to help farmers make more money but also to make farming itself, the source of New Zealand’s wealth, more profitable. The highly pressured corporate environment where he had been working was focused on one thing – the

10 | Farmlander | farmlands.co.nz

size of the dividend that shareholders would get. Roger could see that farmers had an interest beyond that. They were businesspeople in their own right and he could see value in being a conduit between them and businesses keen to serve them. Roger got the job and from his first board meeting he took away a clear goal – to make farming more profitable by reducing input costs. Over the next decade, with Roger at the helm and with the strong support of Board Chair Tom Cranswick, the organisation gained a new name (Farmlands), absorbed six other farmer trading societies and achieved average turnover growth of nearly 120 percent a year. It also launched Farmacard, precursor to today’s Farmlands

Card and the associated network of partners. This enabled members to make purchases through other retailers or service providers. The idea was to complement its direct supply of fuel, fertiliser and other bulk farm inputs by signing up businesses that would offer a significant discount to co-op members for items such as tyres, batteries, vehicles and machinery. This meant members got a discount and Farmlands could stick to its knitting rather than stock such high-margin goods in its own stores. He takes issue with the notion that the early days of Farmlands were a time of skulking around and hiding from the attentions of the big stock and station agencies. To him, this view does a disservice to its founders. He also notes that in every case, the trading societies absorbed by Farmlands made the first approach, asking to be taken over. Roger’s formula for turning around these businesses was to cast an accountant’s gimlet eye over what they were doing, eliminate non-core and unprofitable activities and thus release capital to pay down debt and fund growth. Tough decisions followed. Some of the societies brought into the Farmlands’ fold had supermarkets. Did owning supermarkets make farming more profitable by reducing input costs? No. So they were closed down. Jobs were lost and some communities hit hard as a result. Other decisions were easier – Roger’s first job after absorbing one society was to destock it of $10,000 worth of bikinis. For Roger, exclusivity was key to the co-op’s success. Membership criteria was strict – Farmlands was for farmers only. Members’ prime income had to be from farming. The co-op’s sole purpose was to make farming

Other decisions were easier – Roger’s first job after absorbing one society was to destock it of $10,000 worth of bikinis.

UP FRONT | Change maker

“At times we'd even take off to Auckland to dig up deals,” he says. “We sorted ourselves into product groups and went off in pairs to make what deals we could. It was great fun and served as a real team-building experience.” Looking back on his time as Farmlands’ first chief executive,

Roger says: “Without the extremely dedicated staff, we could not have achieved what we did. We all had a special culture that we were here for the benefit of our shareholders. We practically lived off the smell of an oily rag, passing whatever we could back to our shareholders.” Roger still takes a keen interest in the co-operative and feels Farmlands is back on an even keel under its current leadership. “I am proud to have been associated with Farmlands and wish it well for the future.”

PHOTO: MEREDITH LORD

more profitable by offering the lowest input costs available. He remembers telling the general manager of one trading society that the first thing coming down after the merger was the large “Everyone Welcome” sign at the front door. When it came to getting deals for the co-op’s members, Roger and his team of managers were hard traders. For them, Farmlands was a price maker, not a price taker. They met monthly to decide on purchases and negotiate prices and rebates.

farmlands.co.nz | Farmlander | 11

The farmers who in 1962 planted the seeds of Farmlands were grumpy. They knew the big stock firms were owning the cork and selling the bottle and they’d had enough.

here’s nothing flash about the Eskdale Hall, now or in 1962. But for the group of Hawke’s Bay farmers who met there on December 17 that year, it had the No. 1 attribute – location. Tucked next to the Napier/Taupo highway, it was well away from the eyes and ears of the big stock and station firms – you don’t book the lounge bar of Napier’s Crown Hotel when plotting a revolt. In today’s language, the organisers of that meeting were disrupters. Their target – the cosy relationships they saw between manufacturers and importers of farm inputs and the big stock and station firms that controlled their sale to the nation’s farmers. The mood was nationwide. Across New Zealand, local trading societies were springing up to support farmers looking for a better deal. The following year, farmers met at the Outram Hotel in Otago to find their own solution to the monopoly enjoyed by stock firms in their area. From those beginnings as Economic Trading Society and Otago Rural Trading Society, through mergers and amalgamations the two trading societies evolved into Farmlands Trading Society Limited (Farmlands) and Combined Rural Traders Limited (CRT). In 2013, the North Island’s Farmlands and the South Island’s CRT merged under the Farmlands name. The farmers who gathered in Eskdale, Outram and elsewhere knew

12 | Farmlander | farmlands.co.nz

they were paying over the odds. In return for seasonal finance, farmers were expected to buy their farming supplies and direct their business through the local firm. Banks were reluctant to lend directly to farmers and instead provided finance to the stock firms, who in turn lent it to farmers. With a mark-up, of course. Other inputs had similar issues. Farmers could not buy fertiliser direct from the importers; it was available only from the stock firms. There were hefty mark-ups on deliveries of fuel, another essential input controlled by the stock firms. Drench supply was also tightly controlled.

The early directors were never shy about kicking off a legal battle. These market injustices fostered a strong belief that firms were colluding on prices and wielding monopoly power to the detriment not only of farmers but also of farming itself. For those in the Eskdale Hall and Outram Hotel, this was owning the cork and selling the bottle and they’d had enough. Tempering the enthusiasm for monopoly busting was the harsh reality many farmers faced – they stood to lose a lot more than the stock agent if

the relationship went sour. Alone they were powerless. Only by standing together as a buying co-operative could they make a difference. Internationally the co-operative movement was gaining ground and news filtered through to the Hawke’s Bay. Talk over a beer, at the saleyards and at local Federated Farmers meetings led to woolshed meetings and more formal planning involving professional advice. All of this culminated in the December 17 meeting. Its aim was to establish a co-operative trading society that would use collective buying power to reduce the cost of farm inputs. Profits would be returned to members. About 50 farmers attended. Only a handful applied for membership on the night – the fear of a backlash from the established firms was strong – but by late January 1963, there were 22 approved members. It took nine years to sign up the first 1,000 members; Farmlands’ shareholder register now numbers more than 80,000. The early directors were never shy about kicking off a legal battle. Advisers happy to work pro bono only gave them more licence. Their hit list was drench, fertiliser and fuel. Denied market access to drench and other animal remedies, the co-op took the issue to the Trade Practices and Prices Commission in March 1969, seeking a ruling that it be able to deal directly with manufacturers.

UP FRONT | Visionaries

THE ORIGINALS Max de Denne

Max was a strong-minded member of a well-known Hawke’s Bay family. With wife Dorothy he farmed on Glengarry Road, in the region’s pastoral farming heart. From Canadian farming magazines he learned what was happening in the international co-operative movement and dared to dream that something similar could be established in New Zealand.

Tom Cranswick

It lost. Undeterred, the co-op kept up its battle through the courts and lobbied a government that showed little enthusiasm to shake things up. Change was slow but eventually the size of the co-op meant manufacturers could no longer ignore it. They broke ranks with the stock firms and began selling direct to the co-op. Same with fertiliser. Blocked from trading directly with East Coast Farmers’ Fertiliser, the co-op took a test case to the Trade Practices and Prices Commission in 1965. A negotiated settlement gave hope but

Jim Robertshawe

Henk (Hank) Bogaard

Henk was a survivor of the Nazi occupation of his Dutch homeland who eventually made his way to a new life in New Zealand in 1951. He settled in Hawke’s Bay, farming at Maraekakaho with wife Sallie. Like others he was concerned about the mark-ups charged by stock firms and firmly backed the idea of a co-operative.

Johnny (Jack) Gunn

Johnny was a Napier accountant with a dairy farm on the side. He was drawn into the planning for the new society through his existing association with several directors. His professional advice was invaluable to them, as was his tenacity in fighting for what he thought was right.

Jim was another to have his interest piqued by news of the co-operative movement overseas. He had a Romney stud at Argyll East and was Secretary of the local Federated Farmers branch when he threw in his lot with the new society, organising meetings and working the phone to drum up support.

Tom and Doreen established ‘Parakowhai’ on Glengarry Road in 1960, clearing scrub from the rough country and creating a successful Romney and Angus stud. Farmlands was Tom’s baby and he is remembered for his fierce determination to see it succeed.

Bill Youren

H.W. Youren, as he signed his many journal and newspaper articles, was many things as well as a sheep farmer, including campaigner for nuclear disarmament and student of Italian and Mandarin. His law degree and MA in rural sociology meant his advice and opinions were highly valued by other directors.

The new trading society’s original Management Committee were also the first six to sign up. Here they are in order of membership number:

Article source: The Farmlands Story 1962-2002, by Kay Foley (Farmlands Trading Society Ltd)

this was eroded by intransigence on the part of the fertiliser company. Again it was the buying power of the co-op, particularly as it grew through merger, that eventually busted the market open. Breaking into the fuel market came later and by the back door. After several attempts during the 1970s to get cheaper fuel for its members, in 1982 the co-op bought into a Dannevirke service station that had a licence to supply bulk petrol. That licence was abruptly cancelled when the Motor Licensing Authority

found out about Farmlands’ presence on the shareholder register. After another legal challenge the licence was reinstated and Farmlands Motors began trading. In its first year, turnover in fuel was $5.5 million. In 2022, Farmlands Co-operative Society Limited is a top 20 New Zealand company with turnover approaching $3 billion annually. Through its network of 82 stores and team of trusted advisers it holds true to the founding aim of reducing farm input costs for its shareholders through discounts and rebates.

farmlands.co.nz | Farmlander | 13

Bridgestone E8 Commitment to Our Future

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Action towards carbon neutrality through minimising our organisational carbon footprint and contributing to customer CO2 emission reduction

•

Contribution to a circular economy through reduced raw material consumption and waste minimisation

•

Tyre recycling solutions through investment, participation and responsible tyre recycling

•

Road Safety education of over 40,000 young drivers per year across Australia and New Zealand

•

Development of skilled workers in our community through our training programs.

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Savings are on selected sizes of car, 4x4 and van tyres and are off recommended retail tyre price, excluding fitting and balancing charges. Normal fitting and balancing charges apply. All tyres must be fitted in-store at the time of purchase. Savings on tractor tyrets are off List Price. In some sizes and brands at any given time, stock may be limited. Discounts can vary by product and size. Please see in store or visit bridgestonetyres.co.nz/farmlands for details.

IS THIS NZ’S MOST VALUABLE CARD? YOU DECIDE.

UP FRONT | Card security

Fighting fraud for you Tracey Sparrow, Head of Payment Innovation at Farmlands offers advice to Cardholders on how to best protect yourself from fraud. Card fraud is on the rise. NZ Banks, along with Visa and Mastercard are constantly encouraging customers to take care of their Card and be vigilant against scams to avoid exposure to fraud. Farmlands is no different. We are focused on mitigating fraud and improving the security of our Card. What types of Card fraud are occurring? We have seen an increase in cases where culprits are taking a photograph of a Card front and back, which gives them the details they need to make an online purchase. Cards have also been stolen from letterboxes or used fraudently after being sent to an incorrect address. Identity fraud is another major concern, it’s important for everyone to continue to protect their personal details, along with their Card information.

unusual activity on your Account or Card. Check your contact details are correct on MyFarmlands.

TRACEY SPARROW

HEAD OF PAYMENT INNOVATION

What else can I do to protect myself and the co-op from fraud? Be vigilant and contact us as soon as possible, if you believe your Account or Card has been compromised. You can now report a lost or stolen Card on MyFarmlands as well as place a temporary block on your Card. Remember to keep your address and contact details up to date in case we need to send you a replacement Card, have to get in contact to confirm a purchase is legitimate or if we notice

What else are we doing to improve the security of the Farmlands Card? We have been introducing tighter rules around credit limits on Farmlands Cards which means limits will no longer be able to be exceeded. Customers can view their credit limit, request a credit limit increase and check their current available balance on MyFarmlands. Credit limit information is also published on statements. These changes are aimed at keeping our customers safe from fraud and making it easy to stay within agreed credit limits. Need assistance or want to report fraudulent activity? Phone 0800 200 600 or email ask@farmlands.co.nz. For more, visit the MyFarmlands website at www.account.farmlands.co.nz today.

How can I protect my Farmlands Card from misuse? 1. Set a PIN on your physical Card. Even if you only use the card to shop at Farmlands stores, you need to secure the Card by setting a PIN to avoid future misuse. Instructions on how to set a PIN on your Card can be found on MyFarmlands or contact us on 0800 200 600. 2. Always keep your Card safe and secure. Opportunists are everywhere. We strongly recommend against keeping your Card in your vehicle, especially with the increase in car breakins across the country, even on farm.

farmlands.co.nz | Farmlander | 15

USE YOUR CARD ONLINE Save yourself time and money, when you shop online with your Farmlands Card at participating Card Partners. FEATURED PARTNERS

View all participating partners online at cardpartners.farmlands.co.nz

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Selected Card Partners only. You may receive a text or email from Farmlands when you make an online purchase. Don’t worry, we’re just checking that it was you.

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1. Legend Short Sleeve Med Check Shirt Men’s $54.95 1024812 | 2. Backroad Maniototo Socks 3 Packet $44.95 1024376 | 3. Legend Long Sleeve Neat Check Shirt Men’s $54.95 1025831 | 4. Line 7 Ocean Crew Short Women’s $129.98 1057048 | 5. Tussock Creek Moleskin Jeans $119.95 1024246 | 6. Line 7 Hatch Hoodie Men’s $139.99 1057051 | 7. Line 7 Ocean Crew Short Men’s $129.98 1057046 | 8. Line 7 Keel Crew $129.98 1057058 | 9. Backroad Summerweight Socks 3 Packet $44.95 1024376 | 10. Grisport Contractor Safety Boots $265.65 1024844 | 11. Skellerup Red Bandals Adults $19.95 1024795 | 12. Skellerup Red Bandal Junior $14.95 1024965 | 13. Legend Neat Check Shirt Women’s $54.95 1025553 | 14. Tussock Creek Summer Moleskins $119.95 1024245 | 15. Legend Short Sleeve Oreti Shirt Mens $55.95 1024991 | 16. Swanndri Millbank Print Singlet $ 39.99 1053227 | 17. Line 7 Ocean L/S Crew Tee Mens $69.99 1057040 | 18. Swanndri Brooksville Stripe Polo Men’s $79.99 1057077 Product range varies by store. While stocks last.

Shop online. Anytime.

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Wherever you are, whatever you want, whenever you need it.

shop.farmlands.co.nz

UP FRONT | Clippings

CLIPPINGS

Ask our experts Throughout this issue of Farmlander we’ve consulted industry-leading experts who’ve shared their knowledge. Here's a bit more about two of them.

Industry news and development updates TRADING HOURS

More convenience for you Farmlands shoppers reveal their delight at the announcement of new trading hours for selected stores. Because farming never stops, over 35 of our retail stores from Kaitaia to Invercargill are now open with extended trading hours, making it easier to shop for what you need, when you need it. The news came with approval from many shoppers who took to social media to share their thoughts. One Farmlands Facebook follower posted: “Great stuff. Especially when you are working on water connections and you forget what size connector to get and have to [make] multiple trips to the shop.” Another commented: Fantastic. Ideal [and] far more appropriate for our rural sector especially with sport commitments for kids.”

Seventeen Farmlands stores are now open from 9am-4pm on Saturday, while a further five are open from 10am-4pm on a Sunday.

DR ROB DERRICK

HEAD OF PRODUCT DEVELOPMENT

I have enjoyed being part of Farmlands for over nine years, originally joining as a Nutritionist formulating products made in our Rolleston and Winton mills. The acquisition of NRM lead to a more national role, supporting both our teams and customers. With a background in product development I was pleased to move into the role of Head of Product Development in June. Committed to the outcomes for commercial livestock farmers I am thankful that I am lucky enough to live on a lifestyle block surrounded by cattle, sheep, horses and poultry.

To check the opening times of your local store, visit www.farmlands.co.nz/StoreLocator

TIFFANY MENZIES

TECHNICAL PRODUCT MANAGER IN NUTRITION

FEATURED PRODUCT: Iplex – Rainwater Harvesting This new range of house and shed guttering to link up to pumps and pipes to better capture rainwater for sustainable farm use is perfect for the dryer summer months. Farmlands offers a comprehensive stock water design service through our strategic partnership with Iplex Pipelines, our preferred pipe and metric fittings supplier. What’s more, a designer will visit your farm to discuss your requirements. Pictured: Iplex Square Spouting 4m White.

Prior to joining Farmlands four years ago, I was a vet in both large and small animal veterinary practices for around twenty years, with five in education. I am passionate about animal health and wellbeing, so enjoy enormously being able to provide technical and product support for our staff and customers in nutrition and animal health. Away from work, my interests include gardening and recreational walking.

farmlands.co.nz | Farmlander | 19

Designed. Sealed. Delivered.

End-to-end stock water solutions. We design, source and deliver. Our expert design team will visit your farm, assess your needs, complete a working design for the entire project and provide a full quote. We can then take it as far as you wish, right through to delivery. Get in touch with us today. We are New Zealand’s leader in stock water solutions, working in partnership with iPLEX. Together we will deliver a quality stock water system that improves stock performance and adds significant value to your farm.

Visit your local Farmlands store today to find out more.

farmlands.co.nz

UP FRONT | Clippings

BOOK REVIEW

Nurturing the top paddock When farmer Kane Brisco put a post on his local Facebook page canvassing interest in organised fitness sessions, it went viral in a South Taranaki kind of way. Soon Kane was running two fitness sessions a week on his farm, using traditional bootcamp and body weight exercises alongside some gear he built out in the paddock. Kane, who featured in last September’s Farmlander, has distilled his philosophy of exercising for better mental and physical health into a book, Tools for the Top Paddock: Lessons from life on the land. In it, he shares the experiences that made him almost quit farming, along with the simple methods he has developed for dealing with the mental and physical strains of farm life. Interspersed through Kane’s story are passages of inspiration or instruction (“Anger that isn’t dealt with turns to hate”, “You can’t love someone

else properly until you love yourself”) as well as longer sections spelling out Kane’s various ‘Top Paddock Tools’. He makes no claim to professional insight and accepts that some of his advice might clash with that of mental health practitioners. What he does have is authenticity in every line – he has walked the walk and now he wants to share what he learned along the way. Kane also details some punishing exercise routines that are guaranteed to get your blood pumping and muscles straining. It’s real-world stuff too – lots of classic farmer movements such as lifting and carrying. Approach it as a handbook for mental reflection or for a physical workout – or both. Kane has captured his journey in all its terrors and triumphs and is now able to look back on it with an honest eye and lots of advice for others still making their way.

Tools for the Top Paddock is available now from Whitcoulls, Paper Plus, The Warehouse and wherever good books are sold.

WHAT’S ON

AGM The 59th Farmlands AGM will be held at our new store in Ashburton on Thursday, 3rd November at 6pm. WHAT’S ON

New store opening In November, we are launching a new flagship store in Ashburton. This is a test and learn store for Farmlands, where we’ll be trialling new concepts to cater for both our core customer group and lifestylers. It will be an enhanced retail space with technical expertise in-store, as well as featuring our new FeedBarn brand and providing an amazing community space. If you’re from Ashburton or passing through – come and check it out.

CHRISTMAS HOURS We will be closed on the following days: Sunday 25th December 2022 Monday 26th December 2022 Tuesday 27th December 2022 Sunday 1st January 2023 View full store hours at farmlands.co.nz/StoreLocator

farmlands.co.nz | Farmlander | 21

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UP FRONT | Clippings

FARMLANDS FUEL

Joint venture fuels business to deliver better customer outcomes A major development for the Farmlands Fuel business, will result in better outcomes for customers and shareholders. Farmlands and Southfuels have formed a 50/50 joint venture fuel company that will trade as Fern. The joint venture began trading back in August and has replaced existing “Farmlands Fuel”, “SouthFuels” and “NorthFuels” brands that the two businesses are currently trading under. In its fuel market study, the Commerce Commission recognised the potential for fuel distributors, like Farmlands, to play a positive role in a competitive market and recommended regulatory changes in support of that. "This really prompted the opportunity for us to consider new ways to manage and improve our fuel offer, linked directly to our Farmlands DNA – building and using scale to create value for our shareholders and customers," says Farmlands CEO Tanya Houghton. "There are real advantages to improving our scale, reach, and efficiencies in this new market environment. We also believe that providing fuel solutions as part of a

dedicated fuel business will best serve our shareholders and customers." The benefits of a combined business identified include: • Enhanced economies of scale • Improved delivery frequency and efficiency with reduced operating costs • Better environmental impacts through lower carbon emissions • Increased investment in technology • Experienced fuel management team who can drive more consistent performance; and • Improved business platform to support a more sustainable future for our team and customers. Little will change, with the same ordering systems, territory managers and 0800 support in place. Over time, customers and shareholders can expect greater resources and focus to result in improved coverage, better and more consistent customer service and a more compelling proposition for our rural routes. To see how Fern can work for you phone 0800 999 989 or email enquiries@fern.co.nz

WHAT’S ON

Tag Your Charity The Farmlands charitable campaign, Tag Your Charity is back for a second year. You can choose to give to our national charitable partner I AM HOPE, or your local store's choice of registered charity. Or give to both! Visit farmlands.co.nz/tagyourcharity to find out more.

WHAT’S ON

Equifest event Farmlands nutrition brands, NRM and McMillan, will be exhibiting at the upcoming Equifest event in Christchurch from December 9-11. Get along to this event to hear our nutritional teams share their extensive equine nutrition knowledge with attendees. www.equifest.co.nz/tickets

farmlands.co.nz | Farmlander | 23

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UP FRONT | Clippings

PHARMACEUTICALS

NZ innovation needed in animal health

FEATURED PRODUCT: NoPests Crawling Insect Spray The summer sun is on its way and so are those pesky bugs! The list of common crawling household pests is not short and includes ants, cockroaches, silverfish, carpet beetles, mites, springtails, fleas, ticks, cluster flies, bed bugs, white-tailed spiders and so on. The NoPests Crawling Insect Spray, within the Farmlands pest control range, can be used to combat bugs in and around the home. • NoPests Crawling Insect Spray is a high-quality fast knockdown and residual broad spectrum insecticide. • It is particularly capable against mosquitoes and will provide a long term pest control barrier against many insects including crawling insects like cockroaches, fleas, spiders, flies, carpet beetles and silverfish. • NoPests Crawling Insect Spray suspension concentrate insecticide offers better coverage and a higher contact rate, resulting in better extermination results and greater efficacy than standard formulations. • NoPests Crawling Insect Spray is a surface residual insecticide and can be used equally effectively indoors and outdoors including porous areas such as brick, concrete and unpainted timber, without leaving staining deposits. • It has been designed specifically for New Zealand conditions and has a high level of efficacy.

The three largest veterinary pharmaceutical companies operating in New Zealand including Elanco, and Zoetis, are moving away from developing products for cattle and sheep, according to BiotechNZ Executive Director Dr Zahra Champion. They are instead moving towards poultry, pigs and companion animals. “This leaves New Zealand and Australian farmers potentially without the innovation they need in agricultural pharmaceuticals and biotech,” says Zahra. With New Zealand farming systems centered on sheep and cattle this raises concerns about how this crucial New Zealand industry will be supported in the years to come. Head of Product Development at Farmlands, Dr Rob Derrick says the coop is aware that the production of novel ingredients to control parasitic worms in grazing ruminants has stalled because of the high cost of development, proving efficacy and the increasingly rapid spread of resistance. “The unique challenges of pasture based ruminants may suffer as pharmaceutical companies focus on more intensive systems of production or lucrative pet markets. “We are encouraging farmers to strategically use faecal egg counting to demonstrate the need for parasite control before treatment and then following treatment to test if the product has worked,” says Rob. Zahra goes on to say that “if Aotearoa wants to get into innovative agricultural pharmaceuticals, it is going to come from the smaller biotech firms and locally owned businesses. This is a significant issue for New Zealand farming systems. “There is room for growth for New Zealand companies developing products to target local issues independently of the big pharma corporations marketing strategies. The level of investment in product development in NZ should grow to cover the loss or the decrease input from big pharma.” Although Rob does caution that smaller pharmaceutical companies may lack the funding to support research and development specific to New Zealand’s increasingly unique requirements.

farmlands.co.nz | Farmlander | 25

Farmlands

FRIDAY 10TH FEBRUARY 2023 VALLEY RUGBY CLUB WESTON, NORTH OTAGO

GET YOUR TICKETS NOW! VISIT FARMLANDS.CO.NZ/CUP

UP FRONT | Clippings

RUGBY

A Weston showdown for FARMLANDS CUP 2023 After a one-year hiatus due to Covid-19, the Crusaders and Highlanders will line up for a preseason showdown on Friday 10th February for the Farmlands Cup. In the last six years, the prized silverware has travelled throughout the South Island from Waimumu, all the way to Darfield, with the great rivalry between the Crusaders and Highlanders growing at every outing. The Valley Rugby Club in Weston (about six kilometres from Oamaru) was set to host the event in 2022 before Covid-19 interrupted plans, so Farmlands is pleased to be able to deliver on its promise to the Weston community. “The Farmlands Cup is a fantastic opportunity for our co-op to give back to the rural communities that we serve and are part of. It is an annual event where a local community can come together, and enjoy a great day and great rugby,” says Farmlands CEO, Tanya Houghton. “It provides a special opportunity for local rugby fans in a small town, in this case Weston, to see their heroes up close playing on their local field.” The teams are playing for more than the trophy, with Farmlands donating $5,000 towards the winning team’s chosen charity. The Crusaders

charity is the NZ Flying Doctors, with the Highlanders choosing the Salvation Army. The Crusaders will have the chance to go four in a row if they defend their title this time around. Crusaders Head Coach Scott Robertson knows that the Highlanders are eager to break that streak, especially playing in front of a home crowd. “The Highlanders are one of our fiercest and most treasured rivals

and taking the Farmlands Cup deep into the South Island will create an amazing showdown in front of some of our most loyal fans,” he says. Despite the rivalry between the two sides, there’s a great deal of mutual respect. Having the opportunity to bring a match of this quality to rural communities is something the teams look forward to. Highlanders Chief Executive Roger Clark says, “It’s a festive day celebrating rugby and our community and I know the players enjoy the experience.” The Farmlands Cup is a pre-season highlight for the teams and fans. “The annual Farmlands fixture against the Crusaders marks the start of our rugby calendar for the year and is normally the culmination of a lot of hard work during the pre-season,” says Clarke Dermody, Highlanders Head Coach. Adding to the anticipation of the game is that this will be the only opportunity to see the Crusaders play the Highlanders in Aotearoa during the Super Rugby Pacific season. The next time these teams clash will be part of the Super Round in Melbourne in March, as a Crusaders home game. Farmlands shareholders have had exclusive pre-sale access to tickets from October and tickets for the general public will be available from mid-December.

For more information visit farmlands.co.nz/cup

farmlands.co.nz | Farmlander | 27

INTELLIGENT IRRIGATION KNOWS WHICH PLANTS NEED WATER

Rain Bird is the world’s largest manufacturer of irrigation technology, leading the industry with innovative systems designed to conserve water and maximize efficiency. At the heart of Rain Bird’s passion for water conservation lies a commitment to the design and manufacture of high-quality products and The Intelligent Use of Water™

ASK ABOUT RAIN BIRD IN YOUR LOCAL FARMLANDS STORE TODAY For more information on the Hydroﬂow range visit hydroﬂow.co.nz or scan the QR code.

UP FRONT | Annual results

FARMLANDS DELIVERS $11.9M GROSS

SHAREHOLDER DISTRIBUTION – THE FIRST IN FOUR YEARS Farmlands $11.9 million gross distribution (equating to an $8.6 million net distribution) is on the back of net profit before tax and rebates more than doubling; group revenue increasing by 15 percent; and total group turnover above $3 billion for the first time. 2022 was a growth year for Farmlands. This resulted in a strong performance despite the effects of COVID-19 restrictions and global supply chain challenges. Farmlands performance (with Farmlands’ fuel operation included) saw total group revenue grow to $1.25 billion, total group turnover to $3.05 billion and group net profit before tax and rebates to $17.1 million. The growth also extended to an increase in Farmlands shareholder numbers of 2,443 to 77,843 total shareholders. In its report accompanying the results, Farmlands said the strong financial performance was built on a combination of good gross profit growth and tightly controlled operating expenses. Rob Hewett, Chair of Farmlands, states in the report that the co-op is in a much stronger place than it was a year ago. “Being able to deliver our first shareholder distribution in four years is proof of that,” he says. “Our plan now is to continue the work already started, with a clear focus on enhancing our delivery of customer needs and on doing the basics brilliantly. We are a high-volume, low-margin business so efficiency and cost management are key.”

ROB HEWETT

CHAIR OF FARMLANDS’ BOARD OF DIRECTORS

The strong year translated in significant customer and shareholder value. The $11.9 million in gross taxable distributions is being allocated based on shareholder spend during the 2022 financial year, via bonus shares and/or cash paid as a statement credit (both fully imputed). Farmlands’ annual results show the co-op delivered $94.3 million shareholder rebates throughout the year, an increase of $5 million compared to the previous year. In July, Farmlands sold its fuel distribution business to new entity, Fern Energy, in which Farmlands has 50 percent ownership. This change meant that the Farmlands Annual Report included an operational financial

position, excluding the fuel business. Under this ongoing operational view, operating costs as a percentage of revenue remained stable, despite significant inflationary pressure. This demonstrates Farmlands’ continued focus on cost control. Operational EBITDA grew by $4.9 million to $40.1 million offering good insight into Farmlands’ strong financial position. Farmlands generated strong cashflows from operating activities of $45.3 million and after investing and financing activities this resulted in a $21.7 million decrease in working capital borrowings, which includes a core debt reduction of $3 million from last year. In her commentary, Chief Executive Tanya Houghton writes that Farmlands was built on a history of being a rebel and pushing against accepted ways of doing things. “We have awesome Farmlanders in our business. This year we have reminded them of our history, given them permission to challenge the status quo, do things differently and take a few more risks. “With the plan we have in place, our awesome team, our expertise and a strong focus on the future, we will keep building on this year’s result.”

farmlands.co.nz | Farmlander | 29

FARML ANDS

Spend $1,000 on selected products at Farmlands and get a $50 BONUS CARD!* Everything you need in-store and online shop.farmlands.co.nz/christmasbonus *Terms and Conditions apply. Farmlands Christmas Bonus Promotion runs 1st November – 31st December 2022. Bonus Cards can only be redeemed in Farmlands stores until 31st March 2023. Bonus Cards may not be redeemed for cash, another voucher or used as payment on any Farmlands account. Visit www.farmlands.co.nz for more information.

Reward your hardworking team and treat your family with practical gifts for the home, farm and holidays at Farmlands.

GIFTS UNDER

11 6

2 15 12

1. Assorted Cocky Sunglasses $39.95 | 2. Outback Beachcomber Hat $49.99 1033731 | 3. Outback Mariner Hat $49.99 1025229 | 4. Outback Freemantle Hat $49.99 1033676 | 5. Stoney Creek Bucket Hat Kids $34.99 1057113 | 6. Thomas Cook Anya Singlet & Underwear Pack Girls $38.95 1056943 | 7. Thomas Cook Rodeo Ride Singlet & Underwear Boys $38.95 1056927 | 8. Lil Sprouts Children Broom Coloured $9.99 1053580 | 9. Lil Sprouts Children Spade Coloured $9.99 1053582 | 10. Lil Sprouts Children Rake Coloured $9.99 1053581 | 11. Lil Sprouts Children Tool Set 5 Piece $29.99 1017162 | 12. Lil Sprouts Childrens Watering Can 1.8L $14.99 1017164 | 13. Thomas Cook Charlie Lunch Box Kids $38.95 1056946 | 14. Thomas Cook Ella Lunch Box Kids $38.95 1056950 | 15. Skellerup Red Bandal Range $12.95 1024965, 1024966, 1024795

GIFTS UNDER

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1. Thomas Cook Huet Boys Polo $66.95 1056911 | 2. Thomas Cook Oats Boys Polo $66.95 1056914 | 3. Lil Sprouts Wheel Barrow Plastic Tray Children $59.99 1017165 | 4. Stoney Creek Jandals $79.99 1046689 | 5. Speights Hoodie $89.95 1024820 | 6. Line 7 Mens Ocean Crew Polo $99.99 1057043 | 7. Line 7 Womens Ocean Crew Polo $99.99 1057044 | 8. Line 7 Mens Jib Polo $99.99 1057039

The Big Picture

32 | Farmlander | farmlands.co.nz

In this section News and views from the across the cooperative and inspirational stories from our shareholders who are leading the way in farming in Aotearoa. Photo: Elise Rutherford

There’s more to modern wool than meets the eye. Read about the Kiwi farmers finding creative applications for merino.

Fourth-generation farmer Charlie Hore shows us around his High Country farm and talks to the changing face of farming.

Sarah Reed shares the story of the evolution of The Grumpy Merino.

Trends, take-outs and things to savour this coming summer, including a mouth-watering tomato tart recipe.

farmlands.co.nz | Farmlander | 33

MISSION MERINO Innovators take NZ wool to the international market

With a range of exciting new products, manufacturing processes and farming practices, it turns out there’s more to modern wool than meets the eye. From boats to shoes, air filters to adhesive bandages, it seems applications for this remarkably complex fibre are limited only by imagination. And Kiwi innovators are taking it to market. WORDS BY JONATHAN COTTON

34 | Farmlander | farmlands.co.nz

THE BIG PICTURE | Mission merino

t’s been difficult times – for a long time – for the New Zealand wool industry. Versatile, longlasting and cheap, synthetic fibres have changed the way the world buys fibre. But while the wool industry looks for ways to recapture the consumer’s imagination, merino might be finding its moment. Though it only accounts for around 10 percent of the national clip, consumer interest in the breed is high. High-profile brands Icebreaker and Untouched World continue to have international success and merino running shoe innovator Allbirds shows there’s more to merino than just softwearing fabric. Yes, there’s money in merino but so far we’ve only seen the tip of the iceberg for this unique and flexible material.

Beyond apparel One market being fruitfully explored is air-filtering. Auckland-based Lanaco has been incorporating New Zealand-bred merino into its sophisticated air filter products used in respiratory devices, facemasks, air conditioners and more. Its Central Otago breeding programme, run by farmer and director Andy Ramsden – a breeder experienced in developing breeds to

market objectives – has produced the Astino breed to supply merino for the business's high-end wellness goods. The breed is known for its highly consistent fibres with superb air filtration performance and long lifespan. The breeding programme provides Lanaco with consistency and traceability and a continually improving raw material which is refined into naturally bacteria repellent, biodegradable alternatives to synthetic masks. “Our goal is to lift the perception of the value of wool as a strong technical fibre, not as a fashion fibre," says Nick Davenport, Lanaco founder and director. “The world's fashion people are doing a fantastic job of raising the profile of wool as a fashion textile garment product. But our goal is to raise its profile as a technical, functional material in the healthcare industry.” The health industry is a conservative one, says Davenport and one heavily invested in oil-based technologies. “We're focused significantly on business development and sales growth to build the volumes through this programme. We've had some success in that but it's hard to communicate with the whole world when you haven't got any money – or you're from New Zealand,” he jokes.

Good publicity for Lanaco then to have its filter material selected by none other than NASA for the Artemis 1 space mission, the first in a series of missions designed ultimately to enable human exploration of the Moon and Mars. Lanco filters support the Orion spacecraft’s critical life support systems. In the event of a fire, Lanaco’s filter technology will help protect the astronauts from toxic gases and airborne particles. If a worst-case scenario does occur, the filter system could increase the astronauts window of opportunity for survival significantly. The company is now looking to capitalise on international interest in the NASA mission to build New Zealand merino’s brand internationally. "We can build on this and say, ‘this is a wool fibre technology that comes out of New Zealand coming to the United States to look after the crew onboard the most expensive vehicle in mankind's history’." Lanaco has been breeding Astino merino wool to use in its air filter products. These filters have been selected by NASA for use on board Artemis 1 for its space mission. In the event of a fire, the filters will help protect the astronauts from toxic gases and airborne particles.

farmlands.co.nz | Farmlander | 35

The Lanaco Astino breed is known for its highly consistent fibres with superb air filtration performance. The Lananco breeding programme provides consistency and traceability, plus continually improving raw material which is refined into naturally bacteria repellent, biodegradable alternatives to synthetic masks.

Lanaco products are now being specified into a range of new medical and respiratory devices and Davenport says the company is in talks with people across the domestic appliance, automotive, aerospace and military industries. Lanaco isn't the only group looking to tap into the NZ$100b global health market with New Zealand merino. After six years of research and development WoolAid is taking on the adhesive bandage market – one scrape at a time. Using hyperfine merino wool from stations in Central Otago, Marlborough

36 | Farmlander | farmlands.co.nz

and the McKenzie country – and milled in an Italian factory – WoolAid produces a bandage that is hypoallergenic, sterile and breathable. Even better, when WoolAid’s bandages are ultimately discarded, they biodegrade naturally, returning beneficial nutrients to the soil. It’s a simple idea and a world first. Good enough to gain the interest of high-profile local investors, including Sir Stephen Tindall’s investment vehicle K1W1, 42 Below’s Geoff Ross, former Spark MD Simon Moutter and investment firm Pathfinder.

Ancient fibres, modern innovation Like merino, hemp is a fibre with a lot going for it. It’s strong, durable, resistant to UV light, mould and mildew. It doesn't require any fertilisers or pesticides to grow well, when it’s discarded, it degrades naturally and is good for the soil. Hemprino is a Kiwi brand combining hemp with merino wool to produce a unique new fibre – and clothing line – that blends ‘heritage with innovation’. The brain-child of self-described "fashion outsiders" Siobhan O'Malley

THE BIG PICTURE | Mission merino

(a West Coast farmer) and Paul Ensor (a merino grower from MidCanterbury), Hemprino started from a chance meeting at the Kellogg Rural Leadership programme. Siobhan found herself wondering if it was possible to blend merino and hemp fibre together to make a unique yarn with unique attributes. She contacted Ensor, who did some research and couldn’t find anyone else producing such a blend. "What we did notice was we were looking at a lot of outdoor apparel made with synthetic and fossil-fuel

based fibres blended with the merino and we just thought that was crazy," says Paul Ensor, farmer and cofounder of Hemprino. "Why can't we match plant and animal fibres together? Something that would wear for a long time and can be put to good use, but will biodegrade in the garden if you want." Several years of R&D followed and the group engaged spinners in China and Italy, before returning all production to New Zealand. “We went to China, then started working with a German company – the

second largest spinner in the world – and they were very keen to work with us. But in 2019, Covid hit and Italy was hit particularly badly. That slowed our production right down. It probably took us over a year to get that first yarn developed and made.” Ultimately the decision was made to bring production back to New Zealand. “What's been one of our biggest challenges around innovation is getting the right quality of hemp to blend with the wool.” “The crucial thing is to match the length of the fibres to each other.

farmlands.co.nz | Farmlander | 37

Hemprino co-founders and farmers Siobhan O'Malley and Paul Ensor, with Harriet Bell (left), have worked to blend together merino and hemp fibres to play to the strengths of both yearns: strong, durable and resistant to UV light, mould and mildew.

If you've got hemp at a certain length you need to have the merino at a similar length. If they're not the same when you spin it, there will be overlaps so the result will be ‘lumpy’ and we're trying to produce something homogenous. At the same time, you've got to get the fibre diameter to match as well. “A lot of things need to line up to make you want to run out the end of the yarn, to knit in a certain machine, and produce a certain product. There's a multitude of steps that need to be made to get it right.” While Hemprino is currently sourcing hemp from overseas, ultimately, the plan is to generate enough demand to drive an apparel-grade hemp market here in New Zealand. Currently the group is dipping a toe in the local market and producing small

blinkered in our approach. It’s about listening to the customer and iterating based on that.” The group has also been working with innovation partner The New Zealand Merino Company (of which Ensor is a director) to access industry expertise, guidance and connections. “They've been invaluable,” says Ensor. "The New Zealand Merino Company is well-connected to the market and brands. They've seen small brands grow into large brands. The New Zealand Merino Company was there early on with Icebreaker and helped them grow and build their supply chain. The same with Allbirds. They've seen it happen before.” A self-described “integrated sales, marketing, and innovation company focused on transforming New Zealand's sheep industry”, The

“Why can't we match plant and animal fibres together? Something that would wear for a long time and can put to good use, but will biodegrade.” – PAUL ENSOR runs of each garment. Harriet Bell joined last year as Director adding sales and marketing chops to the team’s skill set. Harriet is also Tactical Trading Performance Manager at Farmlands. Meanwhile, a short, local supply chain – with the exception of imported hemp – lets Hemprino iterate quickly based on customer feedback. “We try not to be too narrow and constrained in what we do,” says Ensor. “We don't want to be too

38 | Farmlander | farmlands.co.nz

New Zealand Merino Company has a history of supporting Kiwi high-flyers. In addition to Allbirds and Icebreaker (the latter of which signed a 10-year, NZ$100m supply contract with NZ merino farmers in 2017), the group has collaborated with strong wool innovator Shear Edge (see over the page); and works with a range of high-profile international brands such as Loro Piana and Swedish heavyhitters IKEA.

THE BIG PICTURE | Mission merino

Next steps

PHOTOS COURTESY OF NEW ZEALAND MERINO COMPANY, LANACO & HEMPRINO

Environmental innovation In 2020 the group launched the ZQRX platform, a “regenerative index” designed to support farmers to continuously improve the human, animal and environmental outcomes of their operations. Designed over three years, the ZQRX platform will provide real‑time metrics and machine learning technology to guide users through the latest solutions, strategies and techniques to help continuously measure, improve and deliver on environmental, social and governance goals. “The goal is to drive best-practice outcomes across all farms and to address some of the challenges we're

facing globally, particularly climate change but certainly biodiversity loss and social challenges” says Tim Loftus, GM at The New Zealand Merino Company. The platform allows farmers to create a roadmap for performance across fifteen index points across three areas: environmental, animal welfare and social. “Most of our growers already have an intergenerational mindset and they're wanting to do what's right for the land,” says Loftus. “Farmers are standing up and wanting to do the right thing in terms of their business practices and the market is rewarding them.”

Formerly the ‘forgotten fibre’, a host of creative new applications and exciting new markets are proving we’ve only just scratched the surface of what’s possible with New Zealand merino. While New Zealand merino farmers represent a relatively small piece of the global merino supply, there’s a lot to be pleased about and a lot to look forward to. As farmers transition to new, marketable breeds, as new partnerships are formed and as the world opens up for business again after its three-year Covid impediment, a global market awaits. “The goal is to use our brand story and success to link to the wool industry as a whole,” says Lanaco’s Davenport. “We can say 'Hey, this is actually a fantastic fibre which is grown in a fantastic way with really well-developed production systems, professional farmers, and people who love and care for their land and their animals. “We want those farmers with intergenerational farms where they can be proud of the genetics they've got and the farming systems that they've got – as world leaders – and that they are creating a fibre and a value which is better for people and their health.”

Beyond apparel:

SHEAR EDGE Launched in 2020, Shear Edge has been gaining a reputation for finding new and radical uses for New Zealand’s wool fibres. The group has pioneered a method of adding processed wool fibre to polymers to produce incredibly strong, very light materials that use less oil-based plastic. Using traditionally low-value parts of the fleece - bellies, sides and pieces usually destined for disposal - and blending that material with polymers, the company has produced blended material suitable for a range of applications: think boats, knives, chilly bins, fencing products and even catamarans.

Shear Edge’s plastic pellets can be added to most plastic production processes and incorporated with most common polymers. Earlier this year, Shear Edge teamed with outdoor adventure brand Torpedo7 to create the world’s first kayak made from wool - the Kakapo Woollen Single Kayak, which contains 35 percent wool fibres and polyethylene, increasing its strength and lowering its overall weight. Kiwi knife brand Victory Knives is also using Shear Edge’s tech to create wool fibrebased handles that are lighter and more sustainable than traditional plastic.

farmlands.co.nz | Farmlander | 39

40 | Farmlander | farmlands.co.nz

PROFILE | Glenbrook Station

Farming locally, connecting globally:

GLENBROOK STATION From Twizel to the San Francisco Bay, sheep and beef farmers Simon and Kirsty Williamson are taking their passion for wool to new and exciting markets. WORDS BY JONATHAN COTTON

“T

hey suit the ground around here and seem to do well”. Simon Williamson is describing the 3,000 merino ewes that populate Glenbrook Station, the 3700-hectare sheep and beef farm just south of Twizel he operates with wife Kirsty. Simon may have an understated way of describing what happens at Glenbrook Station but it belies the fact the pair have quietly established several impressive international commercial partnerships for their merino wool over the years. In the past Simon and Kirsty have supplied merino for the high-tech apparel used by the US military and NATO. They currently have major contracts with San Francisco-based Global Merino and First Lite, US maker of outdoors apparel for hunters. The latter deal was struck after the couple attended an outdoor trade show in Salt Lake City, Utah, where they met First Lite and recognised a shared passion for merino.

BAILEE REUBEN

“We met these people and they were quite passionate about wool, just like us,” says Simon. “They loved merino wool but they'd had trouble sourcing it. They just 'got' our story, so we knew we could fill that gap for them.” Not just passionate but successful too, especially following First Lite’s acquisition by Steven Rinella's high-profile media brand, MeatEater in 2019. The direct-toconsumer brand has just celebrated the opening of its first brick-andmortar shop in Hailey, Idaho. One of the reasons for First Lite's popularity is its responsiveness to the market, says Simon. “A few years ago, they recognised an opportunity in the market: women couldn’t buy hunting gear made for them, they just had to buy small men's or children's gear and so they developed a special line for female hunters and it's been hugely popular.” As an internationally focused merino business being run out of Glenbrook, emails, phone calls and

Skype meetings are an important part of doing business but the most important thing remains the day to day running of the farm, says Simon. “You've just got to produce the best product you can," he says. "We do contract other people's merino wool if they need it but we're pretty choosy about who we take onboard and we don't have a lot of clients. “There's a little bit of pressure on with Covid and the global economy,” he says. “And currently, there's less merino wool around because of tenure review* and a lot of the developed land isn't suited to merino anymore. But in general I think the outlook is as good as it's been in a long time.”

* Tenure review is a process where high country land can be bought back by the government for conservation or bought in full by leaseholders. Tenure review ended in May this year with the Crown Pastoral Land Reform Act coming into effect.

farmlands.co.nz | Farmlander | 41

FARMING through the ages As a fourth-generation farmer, working the rugged South Island High Country is in Charlie Hore’s DNA.

Charlie Hore (left) pictured with farm worker Doug Smith on Patearoa Station where they run 2800 merino ewes, 2900 merino wethers and 1300 merino replacement hoggets.

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THE BIG PICTURE | Generation game

PHOTOGRAPHY: BAILEE REUBEN

aving grown up under Maniototo’s wide blue skies on his family’s intergenerational farm, Stonehenge Station, Charlie now runs his own farm just across the Taieri River. Stretching 8,000 hectares, Patearoa Station consists of some flat irrigated land combined with steep merino sheep country that winds its way up to Otago’s iconic Rock and Pillar Range. Here Charlie shares his home with his wife Belinda Colling, former NZ international netball and women’s basketball representative and their four children aged 17, 15, 13 and 11. Although this land isn’t so steeped in his own history, the farm still has a family connection. Patearoa Station was run by the Beattie family for a hundred years before the Hore family took it over and Charlie’s great aunt married a Beattie.

“There are lots of transferable skills from playing sport to working life. You fit into a team environment well and get on well with other people.” – CHARLIE HORE Much of what he knows about farming he’s learnt through osmosis from his father Jim Hore who now helps on both Stonehenge, now run by Charlie’s brother Andrew and Patearoa. “Dad helps both of us and floats between the two farms,” he says. “He cruises around and does what he likes, adding a wee bit of input here and there. “He’s good as a sounding board about certain things on the farm with all his knowledge and experience. He’s a very good stockperson and great with sheep. He’s got no idea about machinery or technology but when it comes to stock, he’s very good.”

That’s not surprising given a lot has changed in the farming world since Charlie’s great grandfather began farming this land in 1910. Jim is part of a generation of farmers who do things by eye, instinct and experience. “He’s not real big on actual figures and he prefers to do an ‘eye appraisal’. He’s open-ish to using data and having a wee bit of collaboration but he’s more focused on what he sees and doesn’t get too carried away with figures,” reveals Charlie. And in this regard, the learning goes both ways, as Charlie is more open to using facts and figures to

farmlands.co.nz | Farmlander | 43

“You don’t have to change but you don’t have to dismiss everything just because you don’t want to hear it. Listen to it and take out the good bits.” – CHARLIE HORE

make decisions on the farm. However old school methods are still a big part of how they run the operation, he adds. “You don’t have to change but you don’t have to dismiss everything just because you don’t want to hear it. Listen to it and take out the good bits.” He cites animal welfare, waterways, and environmental regulations as areas that have seen the biggest changes during his time farming. Not to mention the addition of some useful pieces of equipment such as a side-by-side farm vehicle which has been a game changer particularly when dealing with the Patearoa’s rugged terrain. “It’s a lot easier because some of the stuff I’ve got is quite steep, so they are a lot safer than driving around in the truck or motorbike. We use the side-by-side with the land cruiser.” And of course, some things don’t change at all. Charlie still uses a horse to get around the property sometimes, much like his father, his grandfather and his great grandfather would have done. “It’s the best way to work stock and use the dog and get around,” he says. “I don’t know if it’s a generational thing, but time is always an issue. You’re always trying to be everywhere. “Sometimes it’s ok to do that on the horse but we can get out the back on the motorbike and be home before we even got there on a horse.”

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Despite his rural upbringing, Charlie only returned to farming 12 years ago, after a stint pursuing other passions, including playing a season for New Zealand professional rugby union team the Highlanders. There’s no doubt Charlie and Belinda’s affinity for sports and sportsmanship has overflowed into the way they run the farm and conduct themselves in life in general. “There are lots of transferable skills from playing sport to working life. You fit into a team environment well and get on well with other people. That always helps if you’re employing staff and working with other people, as well as making decisions under pressure.”

When the children were young, Charlie and Belinda decided to return to life on the farm to see if they liked it. “I like working outside and you’ve got a wee bit of flexibility with your time. You’re not always stuck in an office,” he says. “As long as the stock have food and water, some jobs can be put on the back burner. “It was a good place to bring up children,” he adds. “They have a bit of freedom to roam around and do what they like.” And 12 years later it seems as though the farming lifestyle did indeed suit as it has done his forefathers. Will the family tradition continue for another generation? It’s too soon to say, Charlie laughs. “There’s no pressure.”

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Working to help close the urban/rural divide, the Open Farms initiative is putting the call out for farmers to offer urban Kiwis the chance to get up close and personal with the land, animals, and people behind their fresh food.

ith a background in farming while also living a reasonably urban lifestyle, Open Farms Founder Daniel Eb says he is in the privileged position of seeing both ways of living, which is what motivated him to start the project. “We exist to reconnect urban Kiwis with our land, food and farmers,” he says. “We do that by hosting a nationwide open farm day. The intention is simple – we help farmers to host an open day by taking on board as much of the planning as we can.” The benefits for both visitors and farmers are many Daniel says. Previous host farmers have recorded a 4.6 out of 5 satisfaction rating after an event and visitor registrations book up quickly. “We know urban Kiwis are increasingly disconnected from where their food comes from,” Daniel adds. “We know that there’s an urban rural divide problem but at the same time we know that urban Kiwis want to get out on farm.” For farmers, the day presents an opportunity to see the industry

46 | Farmlander | farmlands.co.nz

DANIEL EB Open Farms Founder

through the eyes of those who may not know much about what really goes in to producing their food. “There’s a real sense of pride that comes with seeing farming through the eyes of someone who is not accustomed to life on the land,” says Daniel. “Particularly for farmers who don’t get that sense of perspective, having a bunch of people seeing what they do every day, results in a real sense of pride for them. It’s quite a refreshing take on what can be quite a difficult and isolating job.”

There are also economic benefits to opening up a farm to the public for a day, Daniel says, particularly for those that are considering new and different ways of operating. “If they are considering a direct to customer approach, then we start seeing real economic benefits. You are building an audience that has already visited the farm, and who are able to taste test new products. We have had multiple farms that are operating a direct to customer model make sales on the day, build an audience base, or increase their social media presence. “We’ve even had multiple farms find people to work on the farm through open days.” Host farms are supported by Open Farms every step of the way and are sent kits and booklets with suggestions on what they can show visitors on the day, how to answer difficult questions and ways to get the most out of the experience. Hosting is open to farms of all shapes, sizes and styles so each farm

COMMUNITY | Open Farms

will have something different to offer its visitors Daniel says. “A lot of what a visitor will see will be dictated by the type of farm they choose to visit. If they are seeing a small-scale permaculture block, they will see something quite different to visiting a conventional sheep and beef farm.” Previous open days have included farm tours, showing visitors around on foot, mock stock auctions, crop harvesting, seed planting and even tree planting in certain areas. “Nothing is going to change in terms of either a farmer’s own perspective on farming or their joy and pride in farming unless they are doing new things,” says Daniel. “Open Farms is an easily accessible way to do something that yes, is a little bit out of the ordinary and might come with a little bit of trepidation, but it works. Our host satisfaction rate is through the roof. “This partnership only runs because of farmers that put their hands up to host and we know that Kiwis jump at the chance to visit. That’s where we will see growth – with farmers showing more courage and extending the olive branch to urban Kiwis to get them out on the farm.” Host farmer Greg Hart plans to welcome people onto his 610-hectare family farm in Hawke’s Bay during the next open day and says previous experiences have been very rewarding. “We are passionate about connecting people with their food

and giving, particularly non-farming people, the opportunity to get on to farms, see what we do and learn about all the good things that farmers do as well as producing food.” Greg says most visitors are genuinely interested and appreciative of the work farmers do. “The people who come to events like this are positive and keen to learn. As farmers who are often isolated,

knowing that there are people who appreciate what you are doing out there, that sort of feedback and support is encouraging.” The next nationwide Open Farms Day will be held on Sunday, March 12, 2023. Visit www.openfarms.co.nz to find out more and register your interest.

Participating in Open Farms can be rewarding for all involved.

farmlands.co.nz | Farmlander | 47

Landowner, farmer and owner of the flock, Sarah Reed shares the story of the evolution of her family-owned and operated business in Culverden and the value she and her team place on each stage of the wool production process.

“I

get stuck on an idea and I just run with it,” says Sarah Reed, farmer, shareholder, mother of three and the entrepreneur behind The Grumpy Merino. During New Zealand’s 2020 Covid lockdown, Reed found herself stranded in paradise – aka the 3,200-hectare Grampians, 15 minutes west of Culverden – and was struck by an idea she couldn’t get rid of: Why not create a merino product which was designed, developed and produced entirely in New Zealand – and wore its origins proudly on its sleeve? The farm had been contracting wool to the Norwegian company Devold, retailing its products in pop-up shops around

48 | Farmlander | farmlands.co.nz

New Zealand. But as Covid started to interrupt everything, business-as-usual was becoming more and more difficult. Sarah knew it was time to evolve. “We had started off nice and slow with Devold and we knew their products were only stocked in a few places in New Zealand, so we could see an opportunity there. Being a grower ourselves, we knew we had an opportunity to tell a story that would really connect with people.” Thus, The Grumpy Merino – the brand – was born. The farm currently produces some 30 tonnes of merino per year, about a tonne of which is used in The Grumpy Merino.

OUR PARTNERS | The Grumpy Merino

Pictured below: Sarah and her family on their farm in Culverden from where she operates The Grumpy Merino, producing luxurious blankets and yarn. PHOTOS: ELISE RUTHERFORD

Production is all NZ-based, with scouring happening in Timaru, spinning in Wellington and manufacturing in Auckland. Reed says that the combination of local farming, production and manufacturing lends itself to a compelling brand story, one that resonates with Kiwis and international buyers alike. “For us, we wanted our products to be aligned with the flock, so on each blanket we make we've got a traceability tag and that aligns you with the year it was made and the flock that it was made from, so the customer can completely, 100 percent know that it's made from our wool and it's made in New Zealand. “It's not very common that you can buy the blanket from the farm that has produced it, followed it through the production line, packaged it and brought it to market. The whole thing's pretty special. The challenge for us now is marketing it and making sure people know who we are. “Consumers like the concept of New Zealand made, they like the concept of a circular economy and they like supporting other New Zealand businesses. We're just reaching the international market now and I think the international market will appreciate that story as well.” That market is an unpredictable one however and it only takes a small shift in circumstances for a mid-priced merino blanket to move from ‘practical essential’, to ‘luxury nice-tohave’, says Sarah.

“We will have been in business for three years next May. For us, it's just about remaining optimistic about what we're doing and to continue telling our story in a positive way, not just for our business but for the New Zealand wool industry and agriculture in New Zealand as well.”

The Grumpy Merino is proud to be a Farmlands Card Partner. Shop online with your Farmlands Card now at: thegrumpymerino.co.nz

farmlands.co.nz | Farmlander | 49

Conrad Wilkshire, General Manager Rural at Property Brokers, New Zealand’s provincial real estate agency, shares his outlook on trends expected to shape the market and economy in 2023.

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THE BIG PICTURE | Insights

ollowing an eventful few years, the rural property market looks to be slowing down slightly as farmers pause to take stock of the current economic reality, while considering some significant environmental policy changes and what these will mean for their businesses. This deceleration is evident in the numbers. This time last year the market was up both in sales volume and sales value, while this year it is lagging slightly behind. “The rolling average of total number of farms sold between August and July this year is about 1,350 sales. At the same time last year, it was about 1,570,” Conrad says. He says this is surprising because dairy export receipts are up five billion dollars on five years ago, sheep and beef export receipts up three billion on five years ago and New Zealand agriculture is contributing almost 82 percent of the value of the total exports. “New Zealand agriculture has never been in a stronger place in terms of contribution to the economy. Balanced against that is cost inflation that farmers are having to deal with, staff shortages particularly amongst growers and a lot of pastural farmers, have been quite acute due to the pandemic.” These challenges, combined with a raft of policy changes spearheaded by central government around sustainability and environmental measures required of farmers and He Waka Eke Noa – Primary Sector Climate Action Partnership, are adding to this feeling of uncertainty within the sector. This has resulted in a paradox of some of the strongest returns that farmers and growers have seen in a long time, combined with the dichotomy of confidence surveys being low Conrad says. He also says interest rate increases are making farmers more cautious as some are facing rises almost two times what they were paying last year. Despite these challenges, Conrad says there is confidence in New Zealand farming as a whole and the export receipts are reflecting that.

“People are being more measured in terms of what they are looking for and being quite specific about what they are after. For example, quality assets in good locations with good secondary exit options available are being favoured over secondary tier assets that may be harder to manage in a more difficult cycle.” The world’s borders opening up and people beginning to move around the world again is also expected to have a positive impact on the sector in the near future. “The ability to manage operations often weighs heavily on farmers and growers’ perception in terms of being in control of the business,” Conrad says, “I think that [borders opening] will have a really positive impact as the labour market is freed up.”

MID-SEASON UPDATE 2021-2022 Total lamb export receipts are forecast at

$3.79 billion FOB, up 13 percent on 2020-21 Export revenue from beef and veal in the 2021-22 season is forecast to be

$4.89 billion FOB, up 11 percent on 2020-21. – Beef and Lamb NZ

Food and fibre exports made up

81.4 percent of New Zealand’s total exports in the year to 30 June 2022, a nine percent increase over the previous year – Ministry for Primary Industries.

In the meantime, Conrad says farmers are hanging back a bit while they get their heads around what is expected of them in terms of environmental legislation changes. This includes the National Policy Statement for Freshwater Management which comes into force in December 2024. “These policies have pancaked on top of existing regional environmental planning processes. So, it’s very problematic getting a consent for a new farming activity under these new prescriptions,” Conrad adds. “In the absence of certainty, the market tends to discount that uncertainty. If it’s uncertain people will either step back and pause or if they really want to operate, they will probably discount to help offset the risk and the uncertainty associated with it.” Conrad says Property Brokers’ response to this is to work with the information requirements and due diligence periods to make sure buyers expectations are satisfied and make sure vendors can represent their assets in the best possible way. As for advice for those considering an exit in 2023, Conrad says to seek guidance early and contemplate the information requirements. “Seek some support and work through a trusted advisor. We [Property Brokers] are very well placed to help farmers with their information requirements and what’s expected of them in the sales process.” For purchasers, he suggests taking some time to look at some good quality listings, enlist support and build trust in a good specialist and get advice when comparing the differences between the properties. And without the same pricing increases as last year there is less pressure on buyers. “From a buyer’s point of view, they can measure twice and cut once,” he adds. “We are really well placed with our partnership with Farmlands to be able to provide a good grassroots perspective of what’s happening on farm and the implications of one asset over another.”

farmlands.co.nz | Farmlander | 51

THE BIG PICTURE | Policy

The National Policy Statement for Highly Productive Land is set to provide protection for the country’s best land and soil so it can be used to produce food.

ver recent years urban encroachment in several regions across New Zealand has driven vegetable production further south, most notably into the Waikato and Canterbury. The Pukekohe/South Auckland region is one of the most apparent examples of productive land loss, where ongoing urban encroachment is reducing the available productive area for fresh vegetable production. However, the new National Policy Statement for Highly Productive Land is aimed at ensuring the availability of New Zealand’s most favourable soils for food and fibre production, now and for future generations.

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The policy provides direction to improve the way highly productive land is managed under the Resource Management Act 1991 (RMA). This is hoped to be achieved through consistent guidance to councils on how to map and zone highly productive land, manage the subdivision and the use and development of this nonrenewable resource. These traditional vegetable growing areas are critically important due to a number of key factors, says Mark Daniels, Head of Horticulture at Farmlands. “These factors include productive and resilient volcanic soils providing continuous vegetable

production; a relatively warm climate that allows year-round vegetable production; and the close proximately to our largest cities and population masses,” says Mark. He goes on to say that a real challenge for vegetable growers is the relatively slim profitability, coupled with often unpredictable seasonal weather conditions and corresponding crop yields. HortNZ Chief Executive, Nadine Tunley says that if Covid has taught us one thing, it's that we can’t take for granted there will always be New Zealand grown vegetables and fruit on supermarket shelves. “All along, [HortNZ] have said that with good planning, New Zealand can have fresh vegetables and fruit and houses,” says Nadine. Mark says it’s a fine balancing act, “in many instances the increasing land values driven up by the demand for urban development are making the land too valuable to justify vegetable production. Ultimately this will continue to stimulate productive land being sold to urban developers.” It’s his hope that such a policy will help facilitate a better outcome for the productive use of farmable land in the years to come.

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THE BIG PICTURE | Snippets

TRENDS, TAKE-OUTS AND THINGS TO SAVOUR THIS SUMMER.

Future planning

are actively supplying our branches as well as bulk orders.

Newly arrived General Manager - Supply Chain at Farmlands, Kia Zia, shares insights on supply chain concerns, labour shortage challenges and what farmers have to look forward to over the upcoming summer months. What have been some of the highlights of the past season? The ingenuity and dedication of farmers amidst the challenges we’ve had. And these challenges have been significant. The continued impact of supply chain disruption impacting global trade and the inflationary pressure it has put on domestic production and farmers has been major. This has had an impact on the confidence of growers to take risks and go big versus risk reduction but also reduces returns in the types of activities they do. Weather too has not been favourable and has had impacts on various commodities causing challenges such as the uncertainty of regulatory change for natural resource management, particularly the shape of lower-emission food production. Is there anything that stands out in terms of specific sectors? Significantly, the market is down on last year with rearers either raising

fewer calves or not bothering to rear this year. This means they aren’t securing off-take contracts from finishers – so no certainty on sale price. And, finishers won’t commit to contracted buy prices if they believe prices might be on a downward trend with excess stock in the system. Further to this, rearer input costs have gone up – with milk ingredients particularly going up – compounding their risk. This appears to be supported by bobby calf kill stats. When it comes to supply chain issues, what’s the upcoming season looking like? We stand ready to be the go-to for everyone connected to our land and have stock of most product lines and

Labour shortages continue to be an issue, are you seeing any specific trends for the coming season? Labour in logistics functions is always an issue such as in trucking, warehousing and support functions. It is also a concern if shipping lines will place sufficient containers into New Zealand in advance of seasonal harvests and production or if growers/farmers will be left to balance shipping costs. Continued labour shortages for pip-fruit and other similar commodities relying on RSE and temporary labour will continue to present challenges. See page 62 for more on this. New trends and technologies continue to come to market. What’s to watch in the coming season? Automation and AI are continuing to become a larger feature whether it is in business processes, logistics, planning and digitisation of some onfarm activities. Personally, what are you looking forward to most as we head into 2023? I’m looking forward to reaching out and becoming more connected with our many shareholders and customers and understanding their needs more deeply. On a macro level, I’m hopeful we will see global supply chains improve and inflation cooling.

farmlands.co.nz | Farmlander | 55

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THE BIG PICTURE | Snippets

At the heart of simple food A published author, entertainer, broadcaster, food stylist, recipe developer and food editor, Nici’s all about no-fuss, confidence-building cooking. “I just love showing others how easy it is to cook something absolutely amazing.” And what could be easier than this tomato and mustard tart, right? Not to mention a great way to use up those excess tomatoes all year round. Born in New Zealand and growing up in a large family, Nici was cooking as soon as she could reach the bench top. She’s notched up five seasons of World Kitchen, two cookbooks (World Kitchen and Cook Eat Enjoy) and six years as food editor for Viva… and she still finds cooking fun! “I can still vividly remember sitting in a park having a picnic that included this classic French tart. My darling mum whips up this tart on a regular basis and we never complain.” She says she was inspired to create the cookbook to invigorate cooking for people who have lost the joy for it either through boredom of their own go-to recipes or through living alone and losing the motivation to cook just for themselves. “As well as writing and including great recipes I wanted to talk about all the things people often avoid acknowledging like menopause, or being single, or how pudding is ok for breakfast! I may have invented a new genre for self-help cookbooks!”

Best tomato & mustard tart ever Makes one tart 1–2 sheets flaky or short pastry ¼ cup wholegrain mustard ½ cup grated cheese (see Note) 4 medium–large tomatoes, thinly sliced 2 tablespoons fresh thyme leaves extra virgin olive oil salt and a good grind of black pepper Preheat the oven to 170°C. Line a baking tray with 1–2 sheets pastry, rolled a bit thinner than they come. Prick all over with a fork. Spread the mustard over the pastry and sprinkle over the cheese. Cover with the thinly sliced tomatoes. Sprinkle over the thyme leaves and drizzle with olive oil. Season. Bake for 30–40 minutes in the middle of the oven until the pastry is golden brown and the tomatoes are soft and deep red in colour. Check after 25 minutes to ensure that the edges of the pastry aren’t burning. Cover the edges roughly with tin foil if they are looking too brown.

This mouth-watering recipe is taken from Nici’s latest cookbook, A Quiet Kitchen, with photography by Todd Eyre, published by Bateman Books, RRP $45.00. www.batemanbooks.co.nz

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Note: For the cheese, I use Gruyère, Parmesan or cheddar.

farmlands.co.nz | Farmlander | 57

AN AUSTRALIAN ADVENTURE

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THE BIG PICTURE | Snippets

Stay well this summer It can be easy to get caught up in work especially during the busy summer months on the farm. To stay happy and healthy this summer Southern Cross and the Mental Health Foundation of New Zealand suggest these five simple actions that when practised often are proven to put the spring back in your step.

Connect

Find ways to connect with people around you – with friends, family, colleagues and neighbours, at home, work or in your community. Think of these relationships as the cornerstones of your life and invest time in developing them. It also helps to build a support network for when times get tough.

Give

Giving is more than just the sharing of material things with others. It’s about cultivating a spirit of generosity and promoting active participation in supporting others. How you give your time and support can boost your mental wellbeing. That’s because giving makes us feel good, and carrying out acts of kindness, small or large, can increase happiness, life satisfaction and our general sense of wellbeing.

Take notice

Remember the simple things that make you happy. Paying more attention to the present moment, to thoughts and feelings and to the world around us, can boost our wellbeing. Becoming more aware of the moment means noticing the sights, smells, sounds and tastes you’re experiencing, as well as your thoughts and feelings. There are lots of ways we can appreciate the little things and focus on the simple things that give us joy.

Keep learning

Learning is so much more than just formal education. It also includes trying a new dish, taking on a new responsibility at work, learning to play an instrument or signing up for that course you always wanted to take. Learning also improves our self-esteem, keeps us connected and more involved, and helps us adapt to change and find meaning in our lives.

Be active

Being active every day is great for our bodies and our minds. Physical activity releases endorphins into your blood stream. These are the body’s natural painkillers and are responsible for the ‘feel good’ sensation after exercise. Physical activity has psychological benefits too. It can improve self-esteem, give you a sense of control over your life, promote a sense of positive achievement, help with weight control and provide plenty of opportunities to socialise. It can also improve our mood and overall mental wellbeing – and decrease stress, depression and anxiety. Remember, being active doesn’t necessarily mean going for a run. Even light exercise can help to improve your mood – any form of physical movement – so find something that you enjoy and that suits your level of mobility and fitness.

Need support?

Source: Based on the Five Ways to Wellbeing formulated by the UK government's New Economics Foundation in 2008 and adopted by Southern Cross BeingWell Team and Mental Health Foundation of NZ.

Samaritans – 0800 726 666

Mental Health Foundation – Free call or text 1737 any time to talk to a trained counsellor Lifeline - 0800 543 354 (or 09 5222 999 within Auckland) Suicide Crisis Helpline – 0508 828 865 (0508 TAUTOKO) Healthline – 0800 611 116

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Lay of the land

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In this section Practical, advice-led content to help you better navigate the day-to-day of farming during the coming summer months. Photo: Martin Kiroff

Closed borders have hit the horticulture industry hard. But with a little help from its friends, things are looking up.

We get advice from those in the know about how to best mitigate the effects of climate change on farming.

A glance into the future of breeding and what traits the next generation of animals would do well to have.

A review on three Farmlands products that will make your summer maintenance that much easier.

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Stuart Kilmister runs Kilhaven Orchards with his brother Philip. They hope to see up to 30 RSE workers arrive soon as they have lost most of their permanent staff to Australia.

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LAY OF THE LAND | Horticulture

It’s hard work keeping your chin up after three years of a pandemic when it’s still a struggle to recruit staff. However, the horticulture industry’s getting by with a little help from friends, Farmlands, and tech, that could make for a profitable pipfruit harvest despite the labour shortage. WORDS BY PHILIPPA PRENTICE MEREDITH LORD, RICHARD BRIMER & MARTIN KIROFF

n January 2022, after a very good growing season, Aotearoa’s apple and pear crop for the year ahead was predicted to reach 601,000 tonnes. A potential 23.2 million 18kg boxes were destined for customers in more than 80 countries – provided fruit was able to be picked and packed. In an average year, the crop estimate assumes a normal growing season without adverse weather events or labour and supply chain problems. Unfortunately, like the two before it, 2022 proved to be anything but ordinary. By May, New Zealand

Apples & Pears (NZAPI) had released a crop re-forecast predicting a decrease of 12 percent on its preseason estimate, after weather events in key growing regions and labour shortages during harvest saw growers unable to maximise their crops. As Omicron continues to make its presence known, the question on the horticulture industry’s mind is: how much of the summer 2023 pipfruit crop will get picked and packed? Pre-pandemic, labour requirements were responded to by locals and foreign workers under the Recognised Seasonal Employer scheme (RSE,

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which allows the horticulture and viticulture industries to recruit overseas workers for seasonal work when locals aren’t enough), with backpackers also making up essential numbers. Then along came Covid-19 and border closures saw that international supply all but dry up. As the upcoming picking period draws closer, Horticulture New Zealand Chief Executive Nadine Tunley advises that, “Even with the borders open, there will not be enough people to meet our industry’s seasonal labour needs. At the height of the harvest, we need thousands of extra workers. That’s why the cap on the RSE scheme needs to be increased and why the Government needs to make it easier for people to come to work in New Zealand.”

been using plant growth regulators to chemically thin because the labour’s not there and we’ve got a retiree who’s helping us to spray. But other companies are so stretched they’re using helicopters to spray, at huge expense,” he says. “During harvest, we have up to 30 people and without RSE workers, that’d be it – we just wouldn’t be able to run. We’ve lost our permanent staff, who have either gone to Australia or exited the industry because there’s been a lot of pressure and we haven’t been able to replace them because there’s just not the permanent people, so we’re basically running it with just ourselves. We will have a group of about 16 RSEs come in from Vanuatu and Samoa and then I’m hopeful that with the borders opening up to backpackers as well, we’ll be

Flexible hours are also among the tactics being employed to make the sector more appealing to locals, including school working hours for parents. With the workforce 60,000 strong as we head towards apple-andpear crunch time, for the umpteenth year in a row, the entire industry is reporting a labour shortage. “That’s every grower’s chief concern,” says Nadine. “Our industry is going all out to attract and retain workers. Previous years’ attraction campaigns are in full swing and growers are offering attractive packages, which can include subsidised accommodation, transport and meals, as well as bonuses.” Flexible hours are also among the tactics being employed to make the sector more appealing to locals, including school working hours for parents. Alongside his brother Philip, Stuart Kilmister runs Kilhaven Orchards – 40 hectares of apples and pears planted by their parents in 1983 on a property located between Napier and Hastings that’s part of the Mt Erin Group grower co-operative. He hopes to see RSE workers start arriving in about November, in time for thinning. “We’ve

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able to recruit some of them to top us up. We’ve been leaning on people who are basically retired to come out and help us and we’ll probably do a little bit of that again, so it’s just winging it!” Also in Hawke’s Bay and with Mt Erin Group is Mark Ericksen of Waima Orchards, a fourth-generation family enterprise that produces apples and gold kiwifruit. He says what he likes best about his vocation are “the dynamics and the challenges but challenges can be determined in two facets. The challenge of growing a crop is the enjoyable part but the challenge of the labour shortage is stuff you can’t control. In growing horticultural crops, you’re tracing all weather events, so the adversity there can be quite intense. You’ve got to be quite a resilient sort of character, but with those sorts of things, you know what you’re dealing with, so [to an extent] you can plan around it. I’ve been in this game 30 years, and the labour shortage is probably the biggest nemesis for the grower. It’s just so difficult to plan.

“The best thing we’ve got going at the moment in this country is the RSE scheme, but we haven’t got anywhere near enough [of these workers],” he continues. “Horticulture is growing at a rapid rate, but when you have the uncertainty of labour shortages, people stop or slow their investing and that’s all future profitability.” On his 45 hectares, Mark employs seven full-time staff plus “a lot of casuals – we can be up to 80 staff on the peak of the kiwifruit season”. That’s just on site, excluding the packhouse and coolstore. “We use about 20 staff for the apple harvest, so we’re using locals to top up 12 RSE workers, [people from] all walks of life. We take what we can get, and I don’t say that lightly! That’s effectively how it is at the moment – you’ve got to be a doctor, a lawyer, an accountant, a counsellor... you’re dealing with all sorts of issues. I love working with Kiwis, but we do need people with the right mindset to come to work to make a difference, not just to eat their lunch. It’s that green-fingers approach – people need to be able to get their hands dirty and understand how plants grow. If they don’t have a bit of passion for it, it doesn’t help the end goal; if you haven’t got the right labour at the right capacity, you don’t get jobs done on time and you don’t get the production or the quality you desire.” Stuart would no doubt agree. He sees recovery as “a two-stage approach. We’re a people-dominated industry and we need more people, so initially, we need to let in skilled people to enable the industry, and then a longer-term goal would be to attract people into the industry and upskill them through the training institutes. With the apple industry, everyone thinks they’re just going to pick apples with a picking bag, so we need to change the perception of what a career path looks like.” As part of the 2022 Budget, the Government announced a further $230 million for the Apprenticeship Boost programme and its extension until December 2023. The funding made to employers to help them

LAY OF THE LAND | Horticulture

Mark Erickson of Waima Orchards (left) has been in the game 30 years and says the labour shortage is probably the biggest nemesis for the grower.

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keep and take on new apprentices will support an additional 24,000 apprenticeships. Other interventions currently in place include Horticulture New Zealand’s GoHort Career Progression Manager (CPM) network. Designed to strengthen horticulture career pathways, it has improved long-term employment rates and its collaboration with polytechnics and universities has resulted in a steady uptake of horticulture training, with more than 5,000 Kiwis in training or employment as a result. Farmlands Head of Horticulture Mark Daniels has been with the co-op for nine years. With its finger on the pulse of products, services, advice and industry insights, is Farmlands able to help its shareholders and customers handle the labour issue? “A lot of that stuff is out of our hands,” he laments. “However, our team members have very strong relationships with our growers/ shareholders. A lot of our people have worked in the industry themselves for a long time and been growers or worked for corporate growers; we have people operating in this sphere with a lifetime of experience, so they’re really part of that community and aware of what’s going on – there’s a strong understanding of the issues and a real empathy around them too. Be it labour constraints, adverse weather or poor-quality fruit, that understanding is really important, so we can support our shareholders effectively. It may not be that we can provide them with something to solve the challenges, but it may just be an understanding of what they mean for their business, what they mean for inputs or what they can afford or not afford to lose.” In the lead-up to the pipfruit season, Farmlands’ staff are actively assisting on practical and emotional levels. “Our technical advisor is really supportive,” says Mark. “He’s an exmanager of orcharding himself, so he understands the ins and outs and the nuts and bolts. Having someone like that to talk to and bounce ideas off has been fantastic.”

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Mark checking the orchard with sons James and Archer.

In preparing for the worst while hoping for the best, growers are using technology as a key tool to reduce the people power they require. By and large, robotics remains in the prototype stage worldwide but growers are adopting the tech that is available for everything from picking and packing to hedging and spraying. Motorised platforms are being used to allow fruit picking at heights usually accessed by ladder, thus opening up a broader labour force by enabling those who might otherwise not be capable or confident enough to climb one. Automated machinery is being integrated into packhouses, mechanical hedging is reducing labour needs and many growers have their eyes on GPS-enabled tractors that can steer and spray unaided. “We upgraded our [packhouse] line so it does it by AI [artificial intelligence] that picks out all the defects,” says Stuart. “That’s helped us over Covid because the packhouse has staffing issues and we’re able to run it with fewer people.”

He’s also directing funds into tech that takes the physicality out of orcharding. “It’s quite a physical job with a ladder and a bag, so we’ve invested in picking platforms and things like that to try to improve efficiency,” he says. “Basically our goal is to remove ladders from the orchard.” Being tech-ready also means future-proofing from the get-go. “The innovations are seeing new apple orchards being set up in a 2D design,” says Mark. “Rather than having big, bulky trees, it’s much more of a row crop with a view to current and future automation. A large, roundish, threedimensional tree is hard to spray and pick because you’ve got to get inside it, and a robotic picker just won’t be able to handle that. With a 2D design, those machines are able to operate effectively.” Of course, there’s no point planting more trees if you can’t get the staff to pick or pack the resulting fruit, so some growers’ current strategies include pulling back on planting to invest in tech instead. Named World Fruitgrower of the Year at the inaugural

LAY OF THE LAND | Horticulture

“I’m optimistic because New Zealand has great product and there’s demand for it. You just look for the exciting stuff that’s happening.” – STUART KILMISTER World Growers Awards in 2006, Waima Orchards has been wanting to look at expansion but Mark says the labour shortage has put a real damper on their growth potential. “That’s where embracing artificial intelligence and precision farming is key. We’ve invested outside of orcharding, to speed up, enhance and improve to the nth degree. Effectively everything we use or do needs to have processes and systems to justify the inputs, because we need to have our outputs recognised globally to be as clean as green as possible and farmed in the most sustainable manner. So we’ve got precision farming tools we’re using with our iPads that let us see where we need to put more or less fertiliser, track insects, pests and diseases, and do more monitoring to see where we can improve, so every hectare is at maximum production.” Adoption of technology may help attract both older workers (whose valuable knowledge may outweigh their physical prowess) and the younger generation (seeking contemporary careers) into horticulture. Father of three sons Mark can confirm the latter “are not the same creatures as we are. We get out there and toil hard, [whereas] they’ll use their technology to do as much as they can [that way].” Times are tough but they’re also changing, so with tech making inroads and more RSE workers able to enter the country, plus backpackers beginning to return, are there reasons to feel hopeful? “Although growers are by nature very resilient, through having to cope with unpredictable weather, fluctuating market prices and the like, for many the current period is the most challenging they’ve experienced, so I’m cautious about being too optimistic,” says Mark. “But I hope the labour shortage is a shortish-term challenge

and I think we’re still in a reasonably good position internationally. There are growing movements around veganism and plant-based diets and so forth; the world still needs a lot of food and New Zealand’s producing very high-quality fruit to meet that demand. Our fruit industry has a relatively low environmental footprint, which is a positive around the marketing of our tree crops, and we’ve got a really good plant-breeding infrastructure, so we can produce high-value horticulture export crops. I believe that the medium- to longer-term prospects for New Zealand horticulture are positive.”

For his part, Mark says, “It hasn’t been an easy row to hoe, but on a positive note, we’ve got new systems and we’re developing new varieties; we’ve got a variety called Gem and varieties that are targeting Asia – not just China but southeast Asia, so the high-coloured Fuji and Pacific Queen and Galaxy.” Does he still eat apples? “Oh heck yeah, I love apples! And kiwifruit!” he says. “A hundred percent I wouldn’t change what I do. I just love it, you know, so you take the good with the bad. As I’ve always said to myself, the harder you work, the luckier you get – you’ve just got to have that positive mindset, eh?” With a bit of luck, this time next year, the story will be different. “I’m sure it will be – and I’m hoping it will be because we can’t go on like this,” Mark continues. “We’re not off to the best of starts weather-wise but it’s got

Stuart can say the same. “I’m optimistic because New Zealand has great product and there’s demand for it. You just look for the exciting stuff that’s happening: we’ve got new Piqa Boo pears and a new apple variety called Gem for Mt Erin; Asia’s growing and India’s growing. New Zealand’s world-leading, so we just need to get back on track. I think long-term there is a lot of opportunity, [even though] it is hard at the moment.”

to get better, surely! In the horticulture game, the growers are quite close, they work together and understand each other and there’s that network there. We’ve just got to keep embracing technology and advancing with the things that’ll help increase profitability, and we’ve all got to work together for the common goal: to get the Government to understand that we need more people to help our industry grow. It’s as simple as that.”

For ideas, advice and products to help you improve your outputs, contact your Farmlands Technical Advisor or the friendly team at your local Farmlands store.

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From left: The late Alasdair Cassels, Zak Cassels, Joe Shanks and Simon Bretherton of Cassels & Sons.

Craft brewers – they’re the new alchemists, turning the humblest of ingredients into liquid gold. Or in the case of Cassels & Sons, obsidian. The brewers turn water, malt, yeast and hops into award-winning beer, thanks in part to Kentishman Hops and expert knowledge from the Farmlands team. 68 | Farmlander | farmlands.co.nz

here have been some close shaves over the years when it comes to the raw materials for Aotearoa’s beer and wine excellence. The story of the Gimblett Gravels is emblematic – the Hawke’s Bay terroir that produces world-beating red wines needed a legal challenge to prevent it becoming a speedway track. For Simon Bretherton, Executive Brewer at Christchurch’s Cassels & Sons, it was about hops, not soil. He and his team had just perfected a new IPA using Nectaron and Willamette hops grown near Nelson. Just as sauvignon blanc vines combine with New Zealand growing conditions to create a unique taste, the Nelson-grown Willamette hops were different to those from the United States, where the hop originated. So Cassels sent off an order to New Zealand Hops for enough Willamette to cover 12 months production, only to be

LAY OF THE LAND | Hops growers

told that the co-operative had decided to pull out its Willamette vines in favour of other varieties. The Willamette had a champion, though. Guy Coddington of Kentishman Hops, a member of the co-op, had been slow to pull out his vines, convinced the hop had a future in the New Zealand industry. Simon tracked him down and bought the whole crop. With Cassels Nectaron IPA and Milk Stout Gold Medal winners at the World Beer Awards in London, he continues to buy all the Willamette that Guy can grow. Guy, a Farmlands shareholder, singles out Technical Advisor George Tunstall as being a huge support.

Farmlands supplies Guy with, among other things, crop protection, biodegradable twine for supporting the hop vines and winter cover crops. These come from Farmlands’ Rolleston grain mill and are a custom blend of oats and seed mixes, tailored to suit the different growing blocks. George’s relationship with Kentishman Hops goes back a decade to when he worked at New Zealand Hops, giving technical support to growers. He was also promoting the three-way relationship between rural farm support, grower and brewery. “I’ve worked closely with Guy on his crop health and protection for several years and originally set up the

relationship with them and Cassels while at New Zealand Hops,” explains George. With George now at Farmlands, Guy is “stoked” with the service and support they get. “It is fantastic. We can ring him up with any sort of problem,” Guy says.

THE MAN WITH A PLAN George has been a Technical Advisor – Horticulture at Farmlands for going on 10 months. He has a passion for working with innovate growers across the Tasman Bay area (Richmond and Motueka), providing farmers with the best products and technical advice for a number of key crops in the region. Simon in the Cassels & Sons brewery.

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Wading through

WARMER WATERS

The science is clear – the climate is changing. While the effects of this will be felt differently around the world, New Zealand farmers can expect an increase in hot days and high intensity rainfalls. We speak to the experts about what farmers should be doing differently this season in terms of animal and pasture care and what practical solutions are available for water security. WORDS BY AYLA MILLER

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LAY OF THE LAND | Irrigation

ccording to MetService, the frequency of sweltering days is rising across the country including North Island regions which traditionally haven’t usually experienced temperatures above 30 degrees. This will be combined with an increase of high intensity rainfalls. The summer of 2022/2023, is likely to see a ‘triple dip’ La Niña return for summer and while back-to-back La Niña events are not uncommon, three in a row is, occurring only three times since 1900: 1954–57, 1973–76, and 1998–2001. MetService also expects December through February to bring more northeasterly winds than usual across the North Island, with some blocking high pressure often seen across the South Island. As for this summer, it is expected to be warmer than usual across Aotearoa which is in keeping with the last couple of years. This could be combined with a much wetter and more humid than normal summer for areas above Taupō. The north and east of the South Island can also expect a somewhat wetter regime. To better communicate how the changing climate will impact people, MetService introduced a colour coded severe weather warning system in 2019. Most severe weather warnings will be issued as orange warnings and red severe weather warnings are reserved for weather systems that are expected to have highly significant impacts, that affect a lot of people. “MetService forecasters will look at the forecast amount of rain or wind and say, this is an extraordinary event that can cause danger to life and property and basically, people need to take action now, let's step out from our usual orange warnings,” says MetService meteorologist, Heath Gullery. So far a red warning has been issued once in 2020, three times in 2021, and four times in 2022. Despite this worrying trend, MetService says this isn’t entirely related to climate change and natural swings in weather patterns also play a part in producing ‘stormy’ weather years versus ‘settled’ weather years.

Ben Noll, a Meteorologist/Forecaster at NIWA, says the previous winter was New Zealand’s wettest winter on record, however there is quite a bit of variability across the country. “There are some regions like inland parts of Canterbury and parts of the top of the South Island that would have seen anywhere from two to three times what they would normally experience in a normal winter. “On the flipside there were a couple of areas that saw less rain than normal such as the inland parts of Southland that experienced a drought last summer and autumn.” Ben agrees that warmer temperatures is a stand out theme over the last couple of years and although the last winter was the wettest, it was also the warmest on record. The past three years have broken the record for warmest winters. “Overall the trend of warmer temperatures is not expected to diminish. It’s something we anticipate with climate change to continue along with cold temperature extremes.” So what can farmers do to minimise the impact of these changing weather patterns? Steve Thompson, Head of Merchandise – Infrastructure at Farmlands, says one particularly useful product designed to help farmers with their water management, is a radar water monitoring system called Waterwatch (see page 90). This system enables farmers to monitor their tank levels and address any leaks quickly without having to drive around the farm manually checking. According to Dairy NZ an estimated 26 percent of stock drinking water is lost as leakage which can then result in mud and flooding along with extra pumping costs. Simply put, the system monitors the levels of water tanks with high, low and leak alarms. “A common way for leaks to occur on farm is from pipes that are above ground getting brittle and connections busting which can create quite a major leak,” explains Mark Butler, co-founder of Waterwatch.

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The Waterwatch alert system means leaks can be identified quickly before too much damage is done.

“If someone is using our product the leak detection alarm will pick that up quite quickly and it will see there is a lot of water going out of the tank. It will let them know and hopefully they can get out there and sort it out before they lose all the water out of their tank.” Lack of water can cause serious issues from an animal welfare perspective and empty troughs can often end up damaged by stressed stock, not to mention the expense and stress it can cause if all the water on the farm is lost. “In relation to climate change the key message is in long dry spells, water is a really precious resource and you don’t want to be wasting it.” As for animal care during times of extreme weather, in-house vet at Farmlands, Tiffany Menzies says warmer, drier pastures even over the summer months results in declining feed quality as the grass dries off. “This includes reduced nutrients such as energy, protein, vitamins and even some essential minerals which stock need for optimal performance and health.”

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She adds that warmer temperatures also can cause conditions that favour higher livestock parasite numbers on pasture. This means it is crucial that farmers consider monitoring their stock for parasite burdens (sampling livestock dung) to help ensure their farming operation is sustainable in warmer temperatures, as parasite infections in lambs can lead to a 33 percent increase in methane yield. Head of Product Development at Farmlands, Dr Rob Derrick, says there are a number of things farmers will need to take into account regarding animal care when grappling with changing weather patterns. “The problems we have with ruminant animals, is that fermenting all that forage generates a lot of heat. Cows, sheep and deer don’t cope so well as the temperature rises because they have to dissipate all that heat.” Some potential solutions to this are adding supplements to the animal’s diet to assist the fermentation process and making sure they have

access to shelter and shade. “The next stage is to put ruminant stimulants and antioxidants into the feed to help the animals when we know they are struggling metabolically.” But it’s not just the animals that struggle in the heat. Pasture quality can also suffer, Robert warns. “Things like perennial rye grass doesn’t grow when it gets above 30 degrees or even lower than that. Basically hot temperatures affect the growth of that temperate grass species.” This results in either less or no grass for animals to eat or if it does grow it is under stress and its protein value can drop. While farmers have always had to pay close attention to weather patterns, climate change will mean having a good understanding of the weather is even more important. Darryl Stretton, Head of Merchandise - Agronomy at Farmlands, says the best advice he can give is for farmers to engage with their local Farmlands experts for advice. “Farmlands is across all the core inputs for farm systems, so engage us as far as seed varieties and cultivars are concerned. “Different seed varieties when it comes to pastures have different tolerances when it comes to different climatic conditions the grass may be subject to.” Darryl adds that some farmers might do well to look at changing the type of seed they are using to better suit the changing weather patterns. “We breed, by way of our suppliers, new varieties to better match the world in which we now live.” As an industry, New Zealand farming prides itself on its resilience and number eight wire ingenuity. This mentality will set the industry up well to face the impacts of climate change, whether it be changing farming patterns, implementing innovative water care systems, or thinking outside the box when it comes to pastures and animal care. “In this day and age, all the more reason to be tapped into the expertise at Farmlands,” says Darryl.

LAY OF THE LAND | Forage and arable

BUZZ OFF! Fall armyworm, the pest to look out for this summer

The fall armyworm is anticipated to damage a large amount of crops across the northern half of the North Island after being detected across the country. While detections have been isolated, as the climate begins to get warmer, farmers are being advised to be vigilant.

As a pest, the fall armyworm (Spodoptera frugiperda) is very destructive and can affect crops at all growth stages, causing damage of up to 50 percent as they feed on leaves, stems, flowers and grains. They are pests that prefer grasses and cereals such as corn, asparagus, beans, peas, beetroot, capsicum, eggplants, onion, kumara, lettuce, tomatoes and more. Native to the Americas, the Ministry of Primary Industries (MPI) have had the pest on their radar for some time and have been working closely with primary sector partners to keep the pest out. “MPI have been under preparing for the situation but we are confident that this is going to turn into a huge

biosecurity issue, based on the damage it has caused to crops overseas,” says Myrtle Mannering, Category Specialist - Fencing at Farmlands. “Northland, Waikato, Bay of Plenty are the primary focus at the moment. But it is very likely that the worm has already reached the South Island due to the quick rate that the moth can fly in a night which is up to 100km.” The pest is known to be a hitchhiker pest and is spread via wind dispersal events. With New Zealand now heading into summer, and as the weather gets warmer, crops are becoming more susceptible to damage from these pests. “The fall armyworm not only has the potential to reduce yields to growers but of equal importance,

introduce mycotoxins and harmful bacteria into the feed if found in maize silage,” says Peter Visser, Territory Manager and Key Account & Technical Representative at Key Industries. Farmers are told to keep an eye out for the pest, which looks similar to a moth in their adult phase, as a green, brown or black larvae or as eggs on leaf surfaces with a white and hairy protective layer surrounding them. Peter says that timing and correct chemical application is crucial to gaining control as once the larvae has progressed to internal parts of the plant then it will be almost impossible to control it. If a fall armyworm is located, farmers are encouraged to report the occurrences via the MPI pest hotline 0800 80 99 66.

GET AHEAD OF THE PROBLEM To prevent the infestation of the pest, Peter suggests the fall armyworm Phermone Kit and Traps which can detect and aid in issues relating to fall armyworms. Farmlands is currently the only rural retailer stocking this product and is now taking orders. Each Kit includes the following: • 3 x disposable cardboard monitoring stations • 6 x sticky boards, 2 for each station • 9 x FAW specific pheromone lures • 3 lures for each station, each lasting for 4 weeks. The kits will retail for $114.80 and $109.60 for shareholders.

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Raising livestock is a process characterised by change, never-ending improvement and constant refinement. As New Zealand farmers look to produce the next generation of sustainable, palatable and profitable animals, they’re increasingly turning to the use of smart technologies and the latest scientific research. WORDS BY JONATHAN COTTON

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LAY OF THE LAND | Breeding

problems brought on by excessive heat, including decreased milk output and feed intake and reduced fertility.

Lowering emissions

eneration after generation, the name of the game is to create offspring better than those that came before and ultimately more fertile, disease resistant and longer-living animals. That can mean creating more palatable, productive and profitable breeds. But it can also mean tackling the big issues we face as a country and a planet.

Cool cows As temperatures, local and global, continue to climb, a changing environment poses particular challenges for breeders looking to breed healthy, happy animals and maximise yields. Heat stress in dairy cows has become an issue of late, with overheated cows suffering discomfort and reduced milk production.

Following the discovery that dairy cows carrying a ‘slick’ gene are less susceptible to heat stress than their non-slick counterparts, New Zealand scientists are using the discovery to develop new ways for Kiwi cows to cope with the warm weather. Ironically, scientists at herd improvement and agritech co-op LIC, first identified a genetic variation that made cows particularly hairy. Realising that a contrary gene might possibly produce contrary results, further research revealed the presence of a prolactin receptor gene mutation, which produces a shorter coat and gives cattle the ability to better control their internal body temperature with an increased capacity for sweating. It’s hoped that ‘slick’ genetics will help mitigate some of the frequent

Currently, there is a strong demand for animals that are more friendly to the environment. The Ministry for Primary Industries has stated that it plans to reduce New Zealand’s biogenic methane emissions to 10 percent below 2017 levels by 2030 and to between 24 percent and 47 percent below 2017 levels by 2050. Methane accounts for roughly half of all greenhouse gas in New Zealand and ruminant farm animals produce around 80 percent of the country's methane emissions. New Zealand has been conducting research into the possibility of breeding sheep for reduced methane emitting features since 2007. The early work by AgResearch scientists (with the support from industry organisation the Pastoral Greenhouse Gas Research Consortium and government’s Agricultural Greenhouse Gas Research Centre) indicated that some sheep naturally emit less methane per kilo of food eaten than others. Now those low-emitting animals have been genotyped for markers that identify the low-emission trait, which means New Zealand lowemission sheep are a reality. After three generations the lowest emitting sheep produce close to 13 percent less methane than the highest emitters, per kilogram of feed eaten. (When sheep are bred for other desirable genetic traits as well, the actual methane reduction at the farm scale will be less but it is still anticipated to be significant.) And scientists are now looking at whether it’s possible to rank cattle based on their methane emissions in the same way that sheep breeders have been able to do. A research programme run by New Zealand artificial breeding companies LIC and CRV, also funded by government’s NZAGRC, measures methane emissions from the burps of young bulls being bred to father dairy cows.

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The feed intake and methane emissions from 281 bulls were measured. The researchers found genetic variation in the amount of methane emitted, with the lowest bulls emitting around 15-20 percent less methane than the average. After a year of research, a genetic link between the bulls’ genetics and how much methane they emit has been confirmed. While showing promise, the research is in its early stages. A second year of the research is now underway involving around 300 young bulls from LIC and CRV’s 2022 Sire Proving Scheme.

development and analysis has resulted in a hardy, resilient animal with high fertility, strong growth rates and a unique fat constitution: high levels of intramuscular fat and an animal unusually high in polyunsaturated fatty acids. “The initial idea of this breed was to produce a ewe that survived and worked really well in the hill country,” says Headwaters GM, Tim Saunders. “It was probably a little bit by chance that we came across a really good eating product.” Looking to develop a ewe that thrived in the difficult conditions,

A team approach

produced good milk and had good offspring, also happened to result in animals that had high levels of intramuscular fat and particularly, polyunsaturated fats – the “secret sauce,” says Tim. That produces an exceptional flavour, texture and eating experience, says the collective, one in demand from discerning chefs around the world. Via a joint venture with meat processor Alliance, the lamb – branded as Lumina Lamb – is sold in

Of course, the more productive, more efficient, longer living the animal, the lower the environmental impact too. Established in 2006 as a Primary Growth Partnership to breed particularly hardy ewes for the high country, Headwaters is a collaborative group of 50 like-minded farmers with approximately 230,000 breeding ewes between them. Originally called The Omega Lamb Project,15 years of research,

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New Zealand and all around the world. Marketed as 100 percent natural, free range, grass-fed and finished on chicory and clover forage, Lumina Lamb appeals to chefs looking for a premium product – and a good brand story – to communicate to the customer.

Feedback-based breeding “Where we are really different from any other breed is we have feedback loops, all the way through the value chain,” says Tim. “If there's a certain trait that chefs are interested in – succulency,

consistency, or fat coverage for example – we can use that feedback to make changes in our breed, so it's very different from the normal breeding model, where you sell rams but only see that person once a year. “The ability to adjust the product and make changes, that’s where we get our premium from.” The group has been scaling over the last 12 to 24 months, growing into the North American market, gaining in the UK and Europe, as well as Asia

LAY OF THE LAND | Breeding

– plus supplying restaurants here in New Zealand. The number of Lumina lambs doubled from 50,000 in 202021 to 100,000 last year.

The future breeding project The group is looking to take its datadriven approach even further, via its future breeding model, currently in development. “We're trying to look at ways to move away from the traditional breeding model,” says Aaron Furrer, project and innovation manager at Headwaters NZ. That starts with data and lots of it. Headwaters’ elite flock are heavily recorded – weight data, wool data, health information is collected and tissue samples taken. Every sheep and lamb is electronically tagged to provide supply chain integrity, as well as other information such as growth rates. With the addition of genotyping information, that data goes into the SIL database run by industry body Beef & Lamb, the industry standard for genetics recording in New Zealand. “Now we’re looking at what the additional data points we can capture on that lamb in processing are, so we can then feed back through to the genetics and breeding side of things.” Ideally, says Aaron, each farm would have its own commercial breeding index, identifying their top 20 and bottom percent of ewes, making management decisions based on that. “Currently we’re looking at some of the technologies or advances that are coming out that might enable a cheaper way to identify parentage – at the extreme end – of every single lamb.”

Developing a platform But it’s one step at a time. “It's very early days,” he says. “We've been visiting the farms we work with alongside our software developer, so they can really get a feel of who they're designing the software for, the conditions they're

Reduced drenching Farmlands in-house vet Tiffany Menzies says that a parasitised animal has significant increased GHGs output, as identified in a paper by NJ Fox et al., 2018, which stats: “This study shows that parasite infections in lambs can lead to a 33 percent increase in methane yield.” Techion, a New Zealand company have developed a tool, PhenR, to reduce the need for drenching by breeding stock that are more parasite resistant. The use of PhenR is proven to reduce pasture contamination by 50-84 percent. In support of identifying breeding stocks for selection and to make the invisible visible, Techion have also developed FECPAKG2 and testing for livestock parasites using Faecal Egg Count testing (FEC). In the short term this then allows for responsible drench use. Tiffany says that Farmlands now offers customers FEC testing of dung samples for livestock parasites, including strongyles. For more details speak to your local Farmlands Technical Field Officer.

designing for, and getting those user stories first hand. “It’s important they understand the 'people' part of it,” he says. This first iteration of the high tech solution will see the establishment of a supplier portal. All the breeders and finishers within the Headwaters group will be able to access their data and forecasting – the key pieces that are important to the programme. “So, we're working on automating and streamlining that inventory management system, so they have the information they want, they can access reports and get some insight into management decisions, all at the tips of their fingers,” says Aaron. “From there it will be about building robust partnerships throughout New Zealand and the world, in terms of technology integrations and value-add. Then we can add those different components in, whether that's focused on the genetics, or a supply chain piece or a logistics piece or a customer feedback piece – we'll be bringing in those components step-by-step as we go.” The software will be fundamental in the group’s goal of scaling and will also be a tool that connects Headwaters farmers to the science and genetics required to supply premium markets, says Aaron. “It's really about knowledge sharing,” he says. “What can we learn from our top operators? How can we create and share that knowledge with the whole group to lift the group up? Ultimately it will l ead to better on-farm performance and lifting that on-farm efficiency.” “Each part of it is being built with purpose and value. It's really about adding value to what those farmers are doing on the farm and not just another place to enter data. That's where the integrations – and the analytics and insights we can glean from it – will become so important.” “We are growing rapidly and demand for our lamb couldn't be higher. This could well be the future model for New Zealand breeding.”

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LAY OF THE LAND | Drenching

We take a look at the drenching method of refugia and how you can best manage drench resistance for sustained results. The team at Farmlands are constanly on the hunt for new drench products and those on the horizon. The co-op currently stocks a range of products from leading international pharmaceutical brands including the likes of Elanco and Zoetis whose animal

health products are aimed specifically at protecting cattle and sheep from parasite burdens when drenching. Mark Edwards, Category Manager at Farmlands says that the method of refugia is currently being highlighted as important in “slowing down drench

resistance and FEC testing to gauge if the product being used is effective in the property used”. When managing drench (anthelmintic) resistance, the aim is to avoid all of the population of worms being exposed to a drench and subject to drench resistance development at the same time. Ideally, part of the population remains unexposed to the drench and is said to be in refugia; it is available to dilute resistant worms so these never become a significant proportion of the farm worm population. When using the method of refugia, it’s suggested that you take into account the following factors: • Understand the seasonal environmental pattern that influences worm larval development and survival. Such as the upcoming warmer, dryer months • Distinguish between the worm species • Do not apply refugia strategies with young sheep or goats • Monitor worm egg counts