Merino Review 2021

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From the NZ Stud Merino Breeders Society


YOUR BREED • Your country

Top left, top right: Castle Ridge Station, Samantha Harmer. Centre right: Taken from the Alps 2 Ocean trail, Bruce Dow. Above right: Grain trail at Braeside, Leora Werner. Above left: Penning up at Matarae Station, Kirsty Houston.

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Top left: Castle Ridge Station, Samantha Harmer. Top right: Snow day at Braeside, Leora Werner. Above: Bog Roy Station, Angus Fraser.

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XXX • Xxxxx

Contents 5

President’s message: Ron Small

38 Onfarm: Muller’s sweet spot

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Onfarm: Middlehurst’s diversified income strategy

40 Wool: Advice on vegetable matter

14 Onfarm: Sustainability top priority for Stonehenge

43 Legends: Bob Todhunter hands on the baton

10 Onfarm: Dedication to the cause at Isolation

44 Show: Marlborough’s two-tooth competition results

24 Fashion label primed for growth

46 Markets: Strong surge in fine wool prices, future bright

26 Onfarm: Mothering ability focus at Armidale

48 Weather: Winter storms hit when it hurts

31 Profits: Central Otago benchmarks shine

49 Merino breeder directory

32 Revamped and revived: Max

50 Show: 2021 Wanaka results, Otago Merino Association wool competition

34 Hyper-transparency all the rage for Sheep Inc 36 Australian clip strengthens as flock size rises

Lake Heron Station muster. Photo: Anna Munro.

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FOREWORD • President’s message

Consumers leading us into new territory

I New Zealand Stud Merino Breeders Society

T’S BEEN ANOTHER YEAR OF CHANGE AND opportunity for Merino farmers. Our weather certainly changed for the worse with several parts of the South Island battered by severe winter and spring storms. Close to home at Blairich Station, the Awatere Valley road still bears the scars from flooding which followed the huge downpour less than three months ago. Other parts of the high country further south are also recovering from wild weather events. We are fortunate to farm such a resilient and tough breed of sheep – durable against almost anything the weather can throw at us. Our biggest opportunity is positioning our wool to take advantage of conscious consumers – an emerging global group that demand a depth of transparency we’ve never had to deliver before, but one that is also happy to reward our efforts with premium prices. The cancellation this year of several shows, including the Canterbury Show, was a real shame for breeders keen to see how their sheep line up. You’ll see a snapshot of the key results from the Wanaka Show on page 50. If you are considering a breed change to incorporate Merino genetics, or you are thinking of new ram sources for your farm, I urge you to contact any of our members to discuss your needs. You will find a full list of all the members of the NZ Stud Merino Sheep Breeders Society and their contact details on page 49. If you would like further copies of Merino Review 2021, contact the team at NZ Farm Life Media by email at subs@nzfarmlife.co.nz or call their freephone 0800 224 782, or you can order directly from their website, www.nzfarmlife.co.nz. Finally, enjoy reading your copy of Merino Review 2021. Make sure you put a copy in the hands of your city cousins or visitors to your farm. All the best for the year ahead.

Ron Small

President, The NZ Stud Merino Breeders Society. Blairich Station, Awatere Valley, Marlborough.

The Merino Review 2021 is produced by Country-Wide on behalf of The NZ Stud Merino Breeders Society. Country-Wide is published by NZ Farm Life Media and available by subscription only. EDITOR: Tony Leggett; 027 4746 093; tony.leggett@nzfarmlife.co.nz WRITERS: Sandra Taylor, Brooke Hobson, Joanna Grigg, Lynda Gray DESIGNER: Emily Rees; emily.rees@nzfarmlife.co.nz ADVERTISING SALES: Angus Kebbell; 022 052 3268; angus.kebbell@nzfarmlife.co.nz

Subscriptions: Freephone 0800 224 782 or visit nzfarmlife.co.nz PO Box 218, Feilding 4740

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ONFARM • Middlehurst

Not just Lady Luck Diversification plus control of rabbits and broom have revived the prospects for Marlborough’s Middlehurst Station. Joanna Grigg reports.

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Middlehurst ewes coming off the hills of the Awatere Valley Station.

WO GAME-CHANGER EVENTS OCCURRED ABOUT the time Willie and Susan Macdonald bought Middlehurst Station, in 1998. The rabbit infestation that had been choking production on the Marlborough property was annihilated by the rabbit calicivirus and the cost of Tordon (Picloram) dropped, making widespread broom control affordable. Looking back on 21 years, the credit for almost tripling the stock units and lifting profitability cannot be put down just to Lady Luck however. The Macdonalds made strategic investments in the property, to grow production. They have diversified income sources and, through buying a 710ha finishing block in Cheviot, have added an ability for the business to finish stock. Owning a high-country station had always been a dream. The couple met in Otago where they were both shepherds in Tarras and they moved on to managing Cecil Peak and Mount Nicolas together. The owner of Mt Nicolas became a mentor and encouraged them to buy their first property. With family backing they took the step to pursue their dream. Despite the naysayers and the broom that ran from the river to the top of the range in places, Willie and Susan could see Middlehurst had great bones. Over the 16,650ha there was high natural phosphate and pH soils, and parts that were relatively scrub free. “Out the back there were huge areas of clean country,” Willie says. A flying tour with the agent, as the unlikely second-place bidders, was followed up by a second visit with Tony Jordan. The Macdonalds could see ‘beyond the yellow’ so leapt in when the initial purchaser pulled out. “It was a phenomenal risk in hindsight,” Willie says. “We didn’t feel the risk at the age of 30, though! All we could see was scope and potential.” “We visited when they were shearing the hoggets and they were big with great constitution, despite the Awatere being in the grip of a severe drought.” The place still had plenty of clover, showing the strength of the country, Willie says. “We thought it might be a good do-it-up property, to sell on, but we found it could grow a farmful of red clover and had potential for further production.”

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Willie and Susan Macdonald have loved the challenge of improving Middlehurst Station.

There was a nervous moment when they found out about a planned rabbit poison of the Sankies block, which would have cost $120,000. Luckily RCD had got going and it didn’t need to happen. “Our neighbour Steve said the stench of the dead rabbits everywhere was overpowering.” The couple committed to a minimum spend of $50,000/year for broom spray work and stuck to it for 20 years. Willie says they treat broom like a lamb break – going wide with the net for every plant. Old ground is covered every year as well as some new ground. Several biological controls for broom were introduced in the river bed area and had an impact too. The Macdonalds had lived in isolated places before but, with three young children, and another on the way, correspondence schooling and a two-hour drive to a store, it was a challenge. But a challenge is just what they like, Susan says. Middlehurst has Muller Station and the Winterton country on its northern boundary, Upcot and Mt Gladstone to the east and Bluff Station and Muzzle Station to the south and west. In the first year they started on a programme to fence and oversow some of the huge blocks. A freehold area was sub-divided into five blocks of about 900ha. This needed 55km of seven-wire fencing. “We are fortunate with Mt Lookout running a lot of water out of it, right round it, creating lots of natural stock water access in all the 8

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blocks. Even when we have back-to-back droughts, there’s still water flowing,” Willie says. In 1999 wethers were replaced with ewes on Sankies block (Inland Kaikoura Ranges). Previously, wethers were grazed there 11 months of the year. Ewes now graze Sankies for summer/autumn for three months, after their second shear late-February. “We figured if we removed the wether flock we could run more ewes, and spell this country allowing it to regenerate and reseed. “We did the research and backed ourselves,” Willie says. Sulphur super was applied to 6000ha and is now spread on the productive country every three years. The crumby soil under hieracium made a good seed bed for over-sown red, white clover and cocksfoot. Every year 300ha were over-sown and left to flower in January and set-seed.

“Coated seed with fresh inoculant seems to stimulate the existing seed,” Willie says. Stock numbers grew from 3000 to 12,000 stock units, including the Cheviot property (5000 su) bought in 2001. Performance is certainly up per head. Lambs weaned to ewes mated now averages 126% (with two-tooths mated) from a scanning of 171% in mixed age ewes and 134% in the twotooths. Joining is usually mid-May, although it was delayed in 2021 due to a very dry autumn. A school house was built on the property (the Awatere Valley Correspondence School Unit had 12 students at its peak) and a modern warm homestead built in 2005 on the site of the old house. The old homestead was shifted and is now shepherds’ accommodation. A Polled Merino Stud was created in 2003. Of the 16,650ha, 6000 are freehold and the rest pastoral lease. Tenure review started mid 2000s but the Macdonalds did not pursue it.

MIDDLEHURST STATION • Bought by Willie and Susan Macdonald in 1998 • 12,000 stock units run on 16,650 ha • 5500ha freehold • Run in conjunction with a 710ha finishing farm at Cheviot (5000 stock units) • 5000 Merino ewes (wintered) and 3200 hoggets • 500 cows and 150 replacement calves

• Two stock units/developed ha • Scanning 171% in MA, 134% in two-tooths • Lambing 126% lambs weaned to ewes mated • 100 Polled Merino rams sold/year • Lambs leave Middlehurst for Cheviot from weaning onwards (24 to 26kg LW)


“The main issue was the continual switching of negotiators. “The farming model we wanted didn’t fit with tenure review. “The area to be managed by DOC was landlocked within the station and access and control of hunters would have been an issue.” Most recently they have diversified into tourism accommodation, with a 10-room lodge; Middlehurst Quarters, and a direct meat marketing venture under the brand Middlehurst Delivered. Whatever the venture, it is done 100%. Willie puts the determination to investigate new ways and try new things to Susan’s attitude. She admits she likes to challenge the status quo and reads a lot. “I’m really interested in increasing production and improving the environment here too.” The 12,000su are run by Willie, Sue and two shepherds Jonty Wilson and Ben Wood. Craig Shaw and Christina Goodwin run the lodge, do weed and pest work on the QEII covenants and maintenance.

CREATING A DUAL-PURPOSE MERINO The Middlehurst Polled Merino stud grew out of an interest and need to create the perfect ram for the commercial flock. Willie Macdonald never considered himself a stud ram breeder. Rather Susan was the one interested in genetics. They were keen to find a ram with the stylish wool they had known in Central Otago, to put over Middlehurst ewes, which they considered to have great constitution. A trip to Australia sealed the decision. They joined a group of farmers on a trip to commercial and stud properties and did a two-day Merino Soft Rolling Skin (SRS) workshop with Dr Jim Watts. The SRS term can perhaps be put

Above: Looking for the perfect ram for their own flock led them to develop their own stud. Below: Willie Macdonald says using all the tools available reduces the challenge of stud breeding.

simply as plain-bodied sheep. They liked Wallaloo Park sheep and started what was to become a good rapport with stud principal John Carter. He came to Middlehurst to class ewes and help them find the right rams in NZ. Two rams were imported from Wallaloo Park as step one. “Cervical artificial insemination to 3000 ewes, followed by AI, saw a huge and quick genetic change, especially in our wools,” Willie says. They registered the stud, DNA-tested all stud ewes and started working with Dr Mark Ferguson; Nextgen Agri. They use EID to streamline raw data collection, for accuracy and reduced labour. Now all stud lambs are DNA tested at tailing and all ewes – stud and flock - are EID tagged and EBVs tracked. “All these tools take away the mystique and trickiness associated traditionally with genetics and breeding,” Willie says. “When data starts, bullshit stops as you can compare sheep to sheep, stud to stud.” Data can help blow through the perceived mythology of breeding sheep. The gains in the chosen Estimated Breeding Values shows a steady trend upwards.

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Figure A:

Trends in the Genetics of Middlehurst stud ram hoggets 2011-2021

Horses are the preferred mode of transport for Susan Macdonald.

Ram hoggets are used over the commercial ewes, then sold at the annual sale in January. The sale has become a popular Awatere social event. In 2021, 98 of 100 rams were sold at an average price of $2335. Rams went as far south as Southland and to Pamu Farms in the North Island, to cover mostly Merino ewes, with some crossbred and mid-micron flocks. Ram lambs are joined with ewes for two cycles, at a ratio of 4:100. “Using young rams allows us to put up our best genetics for sale, after we have used them. “We have a quick genetic gain here as the new progeny are being born as their fathers are just cutting their teeth,” Willie says. The 5000 commercial ewes (two-tooth and mixed-age) now clip 7.6kg (head/year including oddments) from two shearings a year. Each shear produces a staple length of between 60 and 70mm. Mainline fleece wool sits between 18 and 20 micron and is sold to two different branded contracts facilitated by the NZ Merino Company; to Icebreaker and the British fashion brand Sheep Incorporated. For three years Middlehurst has supplied 50% of their clip to Sheep Inc – a new brand that market themselves as the world’s first carbon-negative fashion brand. Shearing is in March and September, with direct shearing labour around $7/ewe (so $14/ year plus expenses).

Ewes are not crutched, which is a saving. “It’s an easy way to grow wool but you need The recent September second-shear yielded a really plain-bodied sheep to do it.” 47 bales in a single line with a micron of 18.9. Asked about VM in a once-year system with The vegetable matter (VM) was a minimal Middlehurst genetics, Susan says the VM in 0.3%, yield 75.7%, staple length 67mm and long free wool can fall out quite easily. strength test 54. Susan is a registered owner/ “It doesn’t get tangled as it would in the grower wool classer and classes all the wool. cross fibres of traditional wool. This is about 20 days a year. “We don’t have any bales with vegetable “I love the challenge of classing the wool matter, and we don’t have a line of backs and to make maximum we are under the 1.5% VM returns and seeing the in the fleece wools for the results of our breeding contracts. TWO WOOL programmes.” “Management is also CLIPS/YEAR From 2011 to 2021 the important, though.” • Shorn September and March staple length EBV for the Sheep classing and • Cut 3.8kg per shearing stud flock has doubled. performance recording and • 60-70mm staple length per EBV for staple length in interpretation is done with shear (to supply Icebreaker the stud is 18.2 versus 7.6 the help of Mark Ferguson, and Sheep Inc. contracts) for the breed average EBV neXtgen Agri. • Hoggets shorn at 10 months 7.6 (the Australian Merino “Following his advice was (3.8kg wool) EBV system). a huge leap of faith in the The total wool weight start - we were selecting meat has nearly doubled. trait focused rams to go over “There are always checks and balances along our ewes and we didn’t want to lose our wool the way, with a decrease in density as fibre quality,” Willie says. length increases,” Willie says. “We were worried it was going to jeopardise Willie believes too much wool can be added our wool style and staple length as the two to a sheep, impacting fertility by diverting EBV traits; wool quality versus carcase tend to protein away to wool density. be antagonistic in breeding terms.” “We get our wool weight from wool fibre Despite variations in the progeny there were length, rather than density of fibres over the some great options to focus on in the selection, area. Willie says.

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The plain-bodied sheep is better for avoiding fly strike. Adult ewes have not been jetted for two years, with a Clik at tailing covering lambs. Ram hoggets are of a size and body weight that they can be muscle, fat and eye muscle scanned in autumn. The ultimate test of meat quality is being happy to eat it yourself, Sue says. They have really enjoyed eating their prime lamb products, bred at Middlehurst, and finished all year round at Cheviot under the management of their son Henry. The Macdonalds’ two Canterbury-based daughters Sophie and Lucy developed and run the Middlehurst Delivered on-line directto-customer 100% Merino lamb. Lambs are processed at Harris Meats weekly. The ideal carcase weight for this market is 20kg. “It has good synergy with Middlehurst, fits in well with finishing Merino lambs and family succession within the business. Branded Middlehurst product has long been a vision,” Willie says. The biggest challenge is to work through modifying the farming system, to ensure seamless all year-round supply of chilled product. They are tossing up whether to have another lambing during the year or buy back Middlehurst lamb genetics to finish. Willie describes it as a good problem to have. The Middlehurst lambs are weaned young; at only 10 weeks of age (75 days) and most are trucked south to Cheviot, depending on feed. They typically weigh between 24 and 26kg. The remaining lambs are weaned on to 70ha of irrigated and dryland lucerne at Middlehurst (hard hose gravity-fed system) or to saved hill pastures. When it comes to KPIs or finances, Willie says they don’t track it in great detail. They do a budget with the accountant and track it against actual income. Regular forecasting is done through the year with the accountant, lawyer and banker. The family have had several family succession meetings to date. Wool makes up 30% of income, sheep sales 40% and beef 30% and Willie describes the gross income as really stable. “The genetic changes have seen incremental increases in income, not quantum leaps.” The calves weaned/cow mated percentage is about 93%. Non-replacement calves are sent to Cheviot for finishing although the storm closed the Awatere Road from July to December, meaning more calves had to be wintered in the Awatere. Willie prefers to finish stock so aims to sell prime to Silver Fern Farms, with some going to Five Star Beef. Initiatives include being one of the first properties to measure greenhouse gas emissions and sequestration, through the NZ Merino Company ZQRX Scheme.

‘We are fortunate with Mt Lookout running a lot of water out of it, right round it, creating lots of natural stock water access in all the blocks.’

“We have some reservations regarding measurement of carbon onfarm, the on-selling/ purchasing of credits and the overall end results to our business and the land,” Susan says. The stock on the two properties combine to emit more methane (measured as carbon) than is sequestered by plants. To balance this, the Macdonalds are working through options with consultants. Willie says results of soil carbon measurement were really interesting, ranging from 11 to 38 tonnes per ha (the average was 37t). “They matched up with Land Management Unit types though.”

LODGE ADDS TO OPTIONS Middlehurst has become a tourist destination as well as a home and a stunning place to grow wool and meat. On the site of an old cob cottage, destroyed in the Kaikoura earthquake, the Macdoanlds have built a spacious and warm lodge that can sleep up to 22. The huge kitchen living room is an ideal space for conference workshops. The station provides an adventure playground

and recreation setting. Built in 2020, it was up to 80% occupancy before Covid-19 implications and the floodinduced Awatere Valley road closure in July, limiting access. The main access road is not expected to officially open until March/April 2022 and its poor state means a trip to the Cheviot farm takes four hours. Willie and Sue say the drive to build a lodge was to add to the base of enterprises at Middlehurst. They see the ram sales, Middlehurst Delivered meat, and the tourism side all working together to promote the Middlehurst brand, Sue says. “It gives us options for farm succession for our four children.” Sue and Willie love spending time walking, biking and riding across Middlehurst, although usually (and happily) they end up walking behind a mob of sheep. “I had a wonderful surprise birthday celebration out on Sankie, that Willie organised with friends and family, and it made me realise what a special place it is. “We farmers should utilise and enjoy what we have and where we choose to live more!”

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Francine and Andrew Hore, with children Tyrell and Esme, in the garden at Stonehenge’s homestead, complete with rugby goal posts.

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ONFARM • Stonehenge

MEASURING UP

at Stonehenge An Italian textile manufacturer has given formal recognition to Maniototo farm Stonehenge’s environmental and quality wool production practices. Lynda Gray reports.

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ARMERS THROUGHOUT THE COUNTRY are feeling under pressure to meet governmentdriven environmental regulations. Former All Black hooker Andrew Hore and his wife Frankie are no exception; at Stonehenge they’re doing their best to implement and understand the deluge of water and farm emission-related regulations. But striking the balance of a financially viable and environmentally sustainable farming enterprise is becoming more difficult. “Taking on board the regulations could mean changes in how we use our land, and we have to work out how to fit any changes in a low intensity system” explains Andrew. They’re feeling the pressure, adds Frankie. “Some days I feel wildly optimistic about the farming future, but other days I feel marginalized as a farmer, and really despair about where things are heading.” Regardless, they are front-footing best practice farm management at Stonehenge. Their efforts were formally recognized in 2019 by Italian textile manufacturer Reda to whom they supply the finer end of their clip. Stonehenge was the recipient of a Sustainability Award acknowledging the use of environmental and quality wool production practices. The judging criteria included attention to the environment, the traceability of raw materials and high-quality wool clip preparation and standards. It was an honour to receive the award, Frankie says. “It’s a great prize because it recognises the hard work

STONEHENGE • Patearoa, 30km southwest of Ranfurly, in the Maniototo basin. • Andrew and Francine (Frankie) Hore, and children Tyrell (8) and Esme (6). • 10,000ha and 20,000su, including 500ha of K-line and centre-pivot irrigation, ranging from 100-1000 metres above sea level. • Fine wool, prime lamb and cattle breeding plus Merino, Halfbred and Suffolk studs. • Rainfall: 270-400mm • Wintered stock: 10,000 ewes, 375 breeding cows (Hereford, Hereford-Angus)

that goes into producing a clip to meet their justifiably high standards.” The prize money is being used to implement a freshwater and aquatic biodiversity monitoring programme with support from AgriBasics, a Central Otago farm environmental consultancy. Water testing is nothing new at Stonehenge, and results have proved that the water quality is excellent across the farm. “But we want to look beyond that, Frankie says, and get information to help guide our decision making and planning. Where necessary we’ll use it to push back on some of the proposed regulations that could have negative consequences on both biodiversity and our ability to farm sustainability.” The programme, started in March, involves sampling and recording a number of stream health indicators at four sites on Stonehenge. All data will be uploaded to Water Citizens NZ (nzwatercitizens.co.nz), a hub for volunteer stream monitoring. The intention is to grow the scope of the project to include data on carbon sequestration. Meanwhile, the Hores have calculated their greenhouse gas emissions (GHG) number using both Overseer and the B+LNZ calculator. Overseer calculated total emissions of 822kg/ha, and a N loss of 1kg/ha. The B+LNZ calculator estimated net CO2 equivalent emissions of 2813 tonnes. Both methodologies are flawed, Frankie says, and she questions why both exist, and why neither factor in the high altitude, tussock and dryland environment. “Native tussocks need to be part of our carbon picture. They are the most stable carbon sink in our fire-prone environment. They also play an important role in moisture collection at the heads of our creeks and rivers. Planting trees in the wrong place, to offset emissions doesn’t make sense and could create a greater environmental issue.” A more balanced and realistic approach to the management of on-farm emissions is what the Horses are hoping for. “Sheep and cattle produce emissions, but the government needs to balance that against what high country farmers produce in a biodiverse landscape: silky, biodegradable Merino wool and healthy, clean and nutrient dense meat, not synthesized in labs.” A sustainable and productive system in tune with the

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harsh environment is something that the Hore family has been working away at for the past 110 years. Recent management and development include tree plantings on the flats for stock shelter and to prevent wind erosion; contouring of irrigated land and planting around the margins of these areas; and pivot placement close to the river to maximise irrigation efficiency. The Horse also works with Ravensdown for annual soil testing, and mapping for targeted fertilizer application and fencing of stock exclusion areas. They like and use the company’s Hawkeye software which is a one stop portal for soil mapping, environmental planning and agronomy information. They also monitor soil carbon across the farm. Another environmental-related matter causing headaches for Andrew and Frankie is a proposed government-backed project for pumped hydro-storage at Lake Onslow for back-up electricity generation in dry years. If the project gets the go ahead up to 1000ha of the Deep Creek block could be flooded. A feasibility study looking at the pros and cons of the project is expected to wrap up in mid-2022.

PAST, PRESENT AND FUTURE Development of Stonehenge from bare, brown, rock, briar and matagouri country to a diverse and multiincome stream farming enterprise has been a slow and steady process over many decades. The Hore family connection started in 1910 when Andrew’s great-great grandfather Charlie (Chas), drew

Top: Lamb grazing irrigated pasture on Stonehenge. Above: Stonehenge’s rocky outcrops provide a unique vista.

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ballot lot 13 entitling him to 18,750 acres (7600ha) in the south eastern upper reaches of the Maniototo basin. The name Stonehenge was inspired by the mica-schist tors stubbing the run country and not unlike the giant stones of the prehistoric man-made monument on the Salisbury Plain in England. The property has a good balance of high altitude summer-safe and lower altitude winter country spread across four blocks: Homestead, flat to gentle rolling country between Patearoa and the Styx Valley; Deep Creek, a 4800ha run block a one hour drive away on the eastern side of Lake Onslow; Hot Friday, a year round grazing, oversown hill block; and Cold Friday an over sown but predominantly tussock block.

“We both share the passion for our land and stock, and we’ll keep flying the Stonehenge flag for our family, kids and future generations.” Francine Hore taking samples of water for testing.

Significant milestones in development include the introduction of Merino sheep, and establishment of a stud in 1969 by Andrew’s father Jim and Sue. In 1985 irrigation came on stream making it possible to finish lambs on greenfeed lucerne and add breeding cattle which helped with pasture control, quality and development. Ongoing subdivision, pasture improvement and tree planting has continued where possible, but always with due respect to the conservation of the unique environment. An Otago Daily Times story recalls how Chappie Hore (Andrew’s grandfather) said if the country's merino sheep could migrate to anywhere in the country, they would choose the Maniototo or Central Otago. It’s possibly a slightly one-eyed view from the hard out southern man but it’s true that Merinos grazing the region’s sweet, clean and fertile country in the harsh and dry climate grow clean, long, brilliant-white and fine crimp wool. The 75,000kg Stonehenge clip is sold under New Zealand Merino contracts including Icebreaker, Reda, Glerup and Loro Piana. “Having the support of New Zealand Merino through supply contracts is a big plus; it gives us and the bank manager certainty with budgeting,” Andrew says. Andrew’s interest in farming started from an early age but was curtailed from 2002 until 2013 when he played for the All Blacks. He helped out around rugby commitments

FOCUS ON EMOTIONS AND BELIEFS KELLOGG REPORT FINDS Frankie Hore is a 2019 Kellogg Rural Leadership graduate. Her literature-based report ‘Wool Image: Being Heard in the Post-Truth Era, poses the question on how the wool sector can move forward and be heard, believed and trusted. The ‘Post-Truth’ era is characterised by an environment clouded by doubt and mistrust, in which people are more likely to accept an argument based on their emotions and beliefs, rather than one based on facts. The report says that the way forward for the New Zealand Merino Company and other wool sector organisations is to keep focused on a defined purpose, work with authenticity, embrace

often bringing home team mates and their families to experience southern hospitality at Stonehenge. Professional rugby funded the purchase of the Hot Friday and Cold Friday blocks, creating a viable Stonehenge business that he and Frankie bought in 2017. Andrew’s brother Charles and wife Belinda farm the neighbouring Patearoa Station. Andrew’s rugby commitments are now limited to coaching at junior club levels. He’s the fourth generation to farm Stonehenge, and along with Frankie, has picked up from where his parents Jim and Sue left off. He credits them for developing a

truth and build connections, and develop bands with unnatural allies. The report draws on Frankie’s university academic and management consultancy background. Life at Stonehenge is a world away from ivory towers and the halls of academia, where she multi-tasks running a household, parenting, frequent cooking for farm contractors and visitors, as well as administration of the farm business. “Basically I’m responsible for anything that requires a pen, computer , and the stuff that nobody else wants to do.”

respected fine wool production enterprise, the legacy of which the Hores continue to grow. Their Merino breeding and management goal is to continue what they do well: breeding large-framed Merryville-based Merinos that grow a long, white superior-styled and soft handling fleece wool in the 16 to 20 micron range. They’re also mindful of breeding sheep to keep up with the ever-changing requirements of clients and wool markets. “We both share the passion for our land and stock, and we’ll keep flying the Stonehenge flag for our family, kids and future generations,” Frankie says.

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ONFARM • Isolation

Super-fine flock wins conformation The Isolation flock complete package. Joanna Grigg investigates.

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OME SHEEP HAVE WOOL TO drool over but it just doesn’t sit on a very appealing body shape. The Peter’s Isolation Merino flock has the complete package – top conformation with minimal faults, a startlingly white, super-fine fleece with helical crimps that give bounce and crease resistance. The Isolation two-tooths, farmed in the Ure Valley-Waima district of coastal Marlborough, won the 2021 Marlborough Merino Association Two-tooth Ewe Flock conformation prize. At the time of the tour in autumn, the flock had just come through extended drought but still looked good. Their average body weight was 44.8kg with a condition score of 3.13 out of 5. Being in the 18

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super-fine category, the weight was adjusted by 1.2 for the competition, bringing it to a 53.8kg equivalent to a medium type. Isolation was the finest flock of eight on the Marlborough tour. The flock is owned by Rob and Sally Peter, and farmed together with sons Thomas and Jimmy. While it is undoubtedly niche, Rob said growing superfine wool is financially rewarding and hugely satisfying. This spring their main line sold for $40/kg clean wool, net of selling charges. “There is a shortage of quality fine wools and demand is high, so prices are up considerably this year.” Being from Saxon bloodlines the Peter’s flock could almost classify as a rare breed

among New Zealand sheep. Only about 50,000kg of NZ’s Merino clip is from pure Saxon lines. Very few pure Saxon studs remain in Australia and NZ growers can be counted on one hand. Rob was interested to compare their flock’s financial return per hectare to the other seven Marlborough competitors. Production per hectare matched the stronger flocks, he said. Hoggets clip 3.5kg of 16-micron wool and ewes 4.5kg of 17-micron wool. Lambs weaned to ewes mated is 90%. “We might be deemed low-producing by some, but over 10 years we have sat in that $20-$30/kg range.” The main line this year (about 60% of the clip) was bought by The Escorial Company.


“Market demand can be intermittent but Escorial still want the best fleece and will pay a good premium.” The bales of 16.8 micron wool, were classed by Ada Watkins, from John Bruce’s blade shearing gang. She classed based on style and length, with the shorter but slightly finer wool going into a second line. Rob describes the strength as really good, at 45 newtons per kilotex (Nkt). “I’ve seen the huge tension put on the yarn whilst on the machines in Italy – it has to be so strong.” Vegetable matter was only 0.6 to 0.8% and backs were removed. Rob said it costs more to skirt a Saxon fleece over the table. “It probably means two more shed hands, as you have to be fussy.” Sheep have been blade shorn for two seasons. “I see potential marketing options here, plus they can stand up to sleet and southerlies better after blade shearing,” Rob said. “We had cold southerly rain after shearing and the ewes were out grazing.” The Peter’s have been supplying the Escorial Company for many years. The Escorial brand is based on wool sourced from sheep with genetics tracing back to the Spanish El Escorial flock. The fleeces are woven and sold via Luxury Fabrics and Joshua Ellis of Yorkshire, United Kingdom. It’s top shelf; the felted wool Meredith Fedora will set you back £475. A Joshua Ellis Escorial scarf retails for £175. The Peters sell via Wool Marketing, Blenheim, on the open market. They have ongoing but uncontracted relationships with several buyers. Most years wool is sold to the Italian Mill Vitale Barberis Canonico. This company,

Left: Rob Peter, Isolation and Cape Campbell, Marlborough, jokes that it’s probably the only Saxon stud in the world that muscle scans rams. Below: Isolation two-tooths won the conformation prize. The ewes clip 4.5kg of 17-micron wool.

founded in 1663, produces a range of fabrics for gentleman’s suits including day, sports and evening jackets, blazers and ceremonial wear. The Peter’s have been to the mill in Italy and have hosted the Barberis quality control committee at Isolation. “It’s very important to have this personal relationship,” said Rob. He proudly wears a European wool felted hat, favoured by shepherds for warmth in the mountains. Every bale of wool is inspected by an agent from New England Wools (in turn 50% owned by Barberris). Rob said he would like to have a fixed contract but describes the Italians as very conservative.

“They have been affected by Covid, shutting down manufacturing and impacting on their sales.” “They take a very cautious approach.” The Peters are also working on supplying a New Zealand company with superfine Merino to make high quality undergarments. This company is also manufacturing jerseys with a stronger wool shell, and lined with Merino “Our Cape Campbell Corriedale-cross sheep supply the wool for the hardwearing outer shell. Our son Joseph has a real interest in wool products and is investigating opportunities.” The family run two properties. Cape Campbell, on the coast near Ward, has rolling open country and a meat-focused Poll Dorset flock. It regularly weans whopper lambs over 21kg carcase weight at 12 weeks. The stunning and traditional Isolation block was bought in 1988 and covers 490ha of steep tussock hills and plateaus in the upper Ure (Waima) Valley. It runs to 1000 meters and has a far higher rainfall than the Cape – typically 1050mm. The Peters offer stud rams for sale from both flocks and show agility in breeding for both meat traits and wool. Rob is unashamedly dedicated to farming super-fine Merinos. Having lamb income off Cape Campbell allows the Peters to put more reliance on wool income at the Isolation block. “In 1988 I started with a medium Merino but there was too much colour in the higher rainfall,” said Rob. By mid 1990s they had built up a Saxon flock using ewes from Alan Innes and Duncan Calder, and rams from Mark Giles and Waitoa (Clarence) and Escorial. Rob describes it as a self-supporting flock, with the 1100 ewes

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producing rams for own use and about 15 for sale. Fresh genetics have come in via a ramswap with Angela Scott (Sierra Park). “Swapping is a cheap sustainable option to get genetics.” Rob and Sally are also planning a trip to Winton Stud, Tasmania, to look at rams. Of the 680 hoggets, 70% of the females are retained to go into the ewe flock. The best wether hoggets were sold to Meadowbank Station, Marlborough, based on their meat value, although the wool is destined for the Escorial market. Cull wethers are taken through winter and sold at 19kg carcaseweight. Sale lamb income for meat only makes up around 20% of the Isolation annual income. The wether flock was phased out over three years as fertiliser and sub-division improved pastures. “They were only behind a ewe in financial performance by 10%, when everything was considered.”

MUSCLE SCAN, WOOL TEST WINNING COMBO

Rob Peter (left) with son Jimmy, who shepherds at both the Isolation block and the second family property, Cape Campbell.

Rob and Sally have muscle scanned their superfine Merino ram hoggets annually for 20 years. They believe it is possible to select for both muscle and good wool.

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Merino Review 2021


Rob jokes that he’s probably the only Saxon stud in the world that muscle scans rams. Each Isolation-bred ram hogget has his fleece weighed and micron measured in autumn and spring. DNA recording of progeny is underway to match the ram hogget to dam and sire. “We are not on SIL or the Australian Performance System, as it is not worth it for such a small stud like us,” Rob says. The curvature tests for the flock range from 85 to 130. The Italian buyers want over 100, Rob said, as this adds bulk and bounce to the wool. The measurement is degrees of curve per mm. “With this in mind we are moving towards what the Italian buyers want, which is finer crimped bulky wools.” “They put wool in a tube and weight it down, and measure the compression, giving you density per gram of weight.” “Think about nylon – it has no bulk, while our Saxon wool has amazing bounce and spring, meaning it doesn’t crease.” “All Saxon buyers want that.”

Right: Thomas Peter with a Cape Campbell Poll Dorset lamb – they typically wean at 21 kilograms carcaseweight at 12 weeks. Below: Joseph Peter has a wilderness hunting guiding business - Hard Yards Hunting.

“With this in mind we are moving towards what the Italian buyers want, which is finer crimped bulky wools.”

Keeping the wool free of colour is tricky in the Ure’s 1000mm rainfall so Rob selects replacements with good lanolin and nourishment at the tip of the wool. “I want wool with sparkle.” Rob said having a Poll Dorset background means he is very conscious of conformation. “I’m always looking at carcase, head and feet – I’m not blinded by the wool.”. In the Isolation two-tooths, shoulder faults are few. No fly-strike prevention is given to adult sheep at Isolation. “Ewes are drenched once a year and rams are now undrenched.” The Peters spend about one or two days a week at the Ure property and the plan is to build a house on-site. The eight hill blocks are steep and tussock-dominant, with red clover the key legume. Every second year, 120kg of sulphur super/ha is applied. Grazing management is described by Rob as ‘slowrotational’. Hugh Cameron, Otematata Station, and a judge of this year’s Marlborough Two-tooth Flock competition, said the flock was bred to fit in the environment and the Peters had done a very good job. “The sheep are nice and square and well balanced, with well-nourished wool.” “The wool is a specialty product, so you

are at the whim of buyers, so building relationships with buyers is very important with this type of sheep.” Mark Urquhart, Gray’s Hills, another judge, said the Peters had the combination of management and country right.

WOOL GIVES SUCCESSION OPTIONS Having high value wool provides succession options for the Peters family. With three sons Jimmy, Thomas and Joseph, and two grandchildren, Rob and Sally are actively working through farm succession. Jimmy Peter is employed as a shepherd on the two family properties, Cape Campbell and Isolation, and has interests in stock management. Stock work of the 8000 total stock units is done by the family along with permanent shepherd, Lane Spence, at the Cape Block and casual stockman Hayden Shadbolt. They often use horses and enjoy stock work the traditional way. Joseph Peter, has a wilderness hunting guiding business Hard Yards Hunting, when Covid 19 allows. He also works in bee keeping, based in Twizel, and spends time in Marlborough with his family, on the farm. He has taken on the project to find market options for both the Merino and strong wool further down the supply chain. The idea is to

get a share of the retail return from the wool grown. Joseph frequently trials clothing and is keen to design and manufacture wool or wool mix garments for the outdoors. The Peter’s have had a retail presence in the garment industry for 33 years through the Isolation children’s wear brand, developed by Sally, so they have a deep understanding of the post-farm gate markets for wool. Thomas is a qualified builder and works on the farm, mainly doing maintenance and running the tourism venture, Experience Cape Campbell. This involves managing the buildings around the historic lighthouse (oldest cottage built in 1890s) and accommodation for visitors. He helps with livestock at busy times. Together, the family has many strings to its bow. They are respected guardians over unique eco-systems; the Ure tussock hill country and

Merino Review 2021

21


GLENMORE •

MERINO

STUD

© George Empson

Breeding heavy cutting, well-nourished, balanced rams. • Horned and Polled sale rams. • 800 stud ewes mated 2021. • 7000 Glenmore commercial ewes averaging 6kg of 18.7 micron wool. • Utilising Merino Select ASBV’s & visual classing. • Incredibly proud of the quality sheep we are producing.

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Merino Review 2021

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the Cape Campbell coastline, including many SNA’s, a DOC reserve and three QEII Trust reserves. Rob and Sally are founding members of the East Coast Protection Group – an active pest control and environment protection group concentrating on the intertidal and dune ecosystems along the east coast of Marlborough. “I grew up learning about pest control from my father, who was a founding member of Forest & Bird,” said Sally. Rob’s Dad was an avid worker at pest and weed control and protecting fragile dryland. “I want to look after what we have here, and our boys are following in our footsteps” The Cape Campbell coastline has excellent monitoring records due to years of being a research base for University of Canterbury. It has lost substantial fisheries and beach life, Rob said. Nearly all the native species are declining along this coast. “It was one of the richest coastlines, with 60 tonnes of biomass per hectare, on the rock platforms, but much has been used up or lost, especially following the earthquake,” Rob said. The farms host scientists and many visitors, either to the Cape or to Isolation. The coast is home to the Katipo spider, a newly ‘discovered’ flightless moth and visited by artic travellers like Godwits and ruddy Turnstones. The Banded Dotterel nests in the gravel beaches and is monitored by the East Coast Protection Group. “When it comes to farmscapes, it can be a very dry area and both our farms are very visual so we like to showcase them, to look their best with good pasture or tussock covers, not overgrazed with intensive stocking,” said Rob. “The days of soils blowing out to the Pacific or creeks full of sediment should be gone,” he said.

Sally Peter loves preserving history but she is also very forward thinking. Back in 1997 she and Rob decided to try processing wool with the aim of selling knitted babywear. “Heather Perriam kindly sold me her Merino yarn and got me started into making baby blankets.” “I believed parents had forgotten the benefits of wool for babies.” “Merino NZ was just being set up, people like Jeremy Moon were experimenting with babywear and it was all before the Icebreaker brand was born.” Sally and Rob went on to forge a new side-business, producing niche Merino baby garments and blankets under their Isolation brand. This was before the ease of the internet and social media marketing. With a keen sense of emerging consumer trends, Sally was awarded an Innovation Grant from Lincoln University and used this to get WRONZ to process and test their own Saxon wool. One tonne of yarn was processed in NZ and dyed at the Tararua wool dye house in Levin (recently sold to Rob Casley to preserve the last NZ dye house). Since then, 2.5 tonnes of Isolation wool have been made into hundreds of garments. The Peters employed a team of machineknitters, linking the garment to their own farm story, with values of craftsmanship

and naturalness. Products were mailed out from the farm homestead in Ward. The Isolation blanket became a hugely popular gift for new parents; a signature piece. Sally has now ‘parked’ the brand because of the difficulties in getting small volumes processed in NZ, which is important to her. She is now selling fleeces direct to clients, including to Susan Mudge at Tseba Yarns, who has processed it into knitting yarn. A 100 gram skein of Saxon Natural Merino retails for $28. “I’m so excited – it looks beautiful as a double knit or four ply, all done in natural dyes or left as it comes off the sheep.” “The knitting industry is growing around the world as well as in New Zealand.” Her latest fascination is breeding natural (black/brown/blue colour) fleeces from her 30 selected Saxon ewes and 30 hoggets. “This wee mob is probably Rob’s bugbear but I love the amazing colours across their fleece – the polka dots and stripes.” Sally sells the fleeces to spinners and felters. “Everyone wants the natural blue.”

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Merino Review 2021

23


INNOVATION • Fashion brand

Maggie Hewitt: ‘I realised I could somehow fuse my two passions to create positive change.’

Photos: Emily Chalk by Woman.

MERINO AT THE

pinnacle of luxury

BROOKE HOBSON

M

AGGIE HEWITT DIDN’T start a fashion brand just to make more beautiful clothing. She thought the world already had enough nice clothes. Instead, she chose to make a difference. Growing up in the Bay of Islands, Maggie spent her childhood in the vegetable garden with her mum or on the farm with her dad. “I grew up with this innate sense of how lucky I was to be in this beautiful environment and wanting to protect that.” While studying fine arts at Auckland’s Whitecliffe College Of Arts and Design, Maggie realised the career she wanted in fashion could negatively impact the environment she loved. “Sustainability as a word wasn’t on my agenda. It was once I got to Uni that I realised 24

Merino Review 2021

I could somehow fuse my two passions to create positive change,” she says. Maggie Marilyn was founded in 2016. From the first collection, the brand was selling clothes around the globe and has since been spotted on the likes of actress Kate Hudson to Michelle Obama and Meghan Markle. New Zealand Merino wool has been a core part of the range since the beginning. Maggie wanted to ensure Merino from her homeland was being used and has worked with New Zealand Merino Company’s ZQ programme for three years. Early on, she realised how rare it was in fashion to understand the full supply chain. “Many customers don’t realise how long and arduous the supply chain of one garment can be. You really have to rely on certifications such as ZQ to know it's not Merino coming from some other country that doesn’t have the same ethical and environmental values.” The 25-year-old says the fashion industry

is quick to look towards cashmere as the pinnacle of luxury but it’s Merino that’s at the top of her list. “Merino is such a special fibre in the sense that it has luxury properties but it's incredibly durable and wearable as opposed to its cashmere counterpart.” The Maggie Marilyn team can trace exactly what farm the Merino comes from and gladly takes on the responsibility to connect the dots between their customer and the grower. “We really see ourselves as the conduit. That's our dream really, to try and reduce that gap from consumer to farmer so in the future consumers can really respect what goes into growing a better fibre.” The company’s goal is to develop individual relationships with growers and build long lasting connections with all tiers of the supply chain. Maggie says it’s what gets her “out of bed in the morning”. She’s excited by the rise in conscious


consumerism, but says not all their customers are as passionate or look much further than the sustainability credentials on the garment labels. “I like to think at Maggie Marilyn we really challenge our customers. It’s exciting to be able to ignite that conversation and dive deeper into the importance of not just knowing that we use ZQ Merino, but actually being able to know where the farms are that we source our Merino from.”

BUSINESS MODEL SWITCH PAYS OFF At the beginning of 2020, before the chaos of Covid-19 erupted in NZ, a seismic shift within the Maggie Marilyn business was already underway. While working with Toitū Envirocare to slash their carbon emissions by a third, it became clear it was their business model that was having the biggest impact. To keep up with the fashion industry’s seasonal nature the brand was turning around a new collection every three months. “We had to air freight fabrics down to New Zealand, then air freight finished products back to the other side of the world and that was a really large portion of what our emissions were.” Maggie made the bold decision to move to a direct-to-consumer business. This meant pulling clothes off the rack from the likes of global fashion retailers Selfridges and Lane Crawford, while opening their own store in Auckland’s Britomart. A second store has since been added in Newmarket. Maggie laughs when asked what the industry’s response was and admits it was challenging but her “bull-headed stubbornness” got her through. “It’s not often that a designer says to a big retailer we don’t want to stock with you. It’s more the other way round,” she says. “It was pretty hard to stand behind our values and sell to a store that still had a whole floor dedicated to selling fur.” But, it’s paid off. Everything is now freighted by sea and the company reduced its carbon emissions by a whopping 73% while seeing revenue growth in the past year. “It was either a bold or a stupid move and luckily it worked out for us,” she says. Having a clear “northern star” since inception means Maggie knows what direction she wants to head in and that makes decisions easier. She says it’s exciting to show they can still grow commercially but decouple growth from putting strain on finite resources. “We don’t want to have our head in the clouds on the realities of being in business or the realities farmers face onfarm. We want to be able to create tangible solutions.”

‘Many customers don’t realise how long and arduous the supply chain of one garment can be.’

MENSWEAR LATEST VENTURE Maggie Marilyn has released its firstever menswear with Somewhere Man. It includes the “perfect” white tee, classic linen shirt, track pants and hoodie, blazer and trousers. Maggie says the decision to embrace menswear was a natural progression. It’s designed to simplify the task of dressing through versatility and style, while sticking true to the brand’s circular and sustainable values.

The brand now produces two lines Forever is seasonless and colourful, while the Somewhere collection is what Maggie calls their traceable evergreen essentials. Merino plays a large part in the latter. “It’s our intention to only create forever pieces that will sit in our customers' wardrobes for a long time and I think Merino wool can stand the test of time.” So, what’s next? The 18-strong team continues to grow as they eye up more bricks and mortar stores - particularly in North America where there was a strong wholesale market. Maggie says it’s important to have a

physical space as they continue to expand globally, especially from an educational standpoint. “We’re not just trying to sell products. We’re trying to educate consumers on the importance of asking more questions and consuming more responsibly.” There’s also a new line in the works for release next year but the details are yet to be revealed, although there will be a big emphasis on Merino. Like the fibres used in their clothes, Maggie hopes Maggie Marilyn is here for a lifetime.

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ONFARM • Armidale

Armidale Merinos have to stack up visually, but so too does their supporting data.

Measuring, motherly love and more LYNDA GRAY

A

22% LIFT IN GROSS FARM income per stock unit in seven years is the bottom line result of improved lambing performance at Armidale. Wool has contributed to some of the increase but most of it is due to weaning more lambs which has been a focus area since a Country-Wide story in 2014. Back then Simon Paterson said he was happy with wool weights, 26

Merino Review 2021

micron and ewe size, and the obvious focus was lambing percentage. “We realised that getting an extra 5% of lambs was going to return more than growing another 200g of wool,” he said. He’s exceeded expectations, doubling the number of lambs weaned to 10%. “We’re now consistently making 125% lambing. In 2019 we managed 138%, the best ever, and were on track for that this year until we were caught out by a storm. What that goes to prove is that breeding and selection can take you so far but ultimately it’s impossible to out

compete Mother Nature.” But breeding and selection has certainly been used to good effect to help improve lambing performance, in particular identifying ewes with superior mothering abilities therefore reducing the number of lambs lost from scanning to weaning. Simon has taken a top-down approach by monitoring the maternal aptitude and attitude of stud ewes, specifically their temperament and ‘flight’ response. Those with a docile, compliant nature who stay close when lambs are marked at birth are


Left: Simon and Sarah Paterson’s farming goal is to breed a low maintenance, high performing and profitable wool and meat Merino. Below: Rowan Farmer scans eye muscle depth of Armidale stud ewe hoggets. He has scanned sheep at Armidale since the mid-1980s

ARMIDALE

• Gimmerburn, near Ranfurly, Maniototo • Simon and Sarah Paterson, and Hugo (9), Bede (7) • 2000ha - 1500ha flat to rolling • 120ha spray irrigation • Two run-off hill blocks • 7500-8000 stock units: 3400 Merino ewes, 1200 Halfbred ewes, 3000 hoggets, 200 trading cattle.

“But I’m of the view that if you’ve gone to the effort of getting sheep into the yards, you might as well be measuring something.” noted, as are those who flee the scene leaving their offspring at risk and vulnerable. Sires from breed groups with better mothering habits are being used across the Armidale commercial ewes. Casual observations suggest that the desired behaviour modification is filtering through; a stud ewe stays less than an arms-length while its newborn twins are tagged, and further down the road a mob of commercial ewes with young lambs graze undisturbed as the Toyota Hilux is driven through the paddock. “Ten years ago, we wouldn’t do that because a lot of the ewes would have scattered, so things have definitely changed.” Maternal behaviour is one of several traits recorded to further drive productivity and profitability. There is lots of recording along the breeding and feeding chain which is now relatively straightforward with EID. “Seven years ago we had just started with EID, but now we use it to capture a huge amount of data and it’s become an important tool for decision making,” Simon says. Scanned data is uploaded to livestock management software system MacroStock for

analysis by Simon and forwarded on to Sheep Genetics Australia for the calculation of EBVs. He admits that Allan, his father who still helps out regularly at Armidale, and Sarah think he’s gone to the extreme with data collection, and it’s possibly true. “But I’m of the view that if you’ve gone to the effort of getting sheep into the yards, you might as well be measuring something.” That ‘something’ has grown to a long list. The productive attributes measured are liveweight gain (four times for ram hoggets and three times for ewe hoggets over their first

year); fleece weight, fleece quality (character, colour, staple strength and length); and eye muscle depth. The measuring of health and resilience has become a big focus and includes scores for dags, worm egg count, breech wrinkle, and resistance to footrot. Worm egg count is particularly important given the growing problem of drench resistance. “We’re selecting and breeding for resistance but also resilience,” Simon explains. “We measure ram hogget carcass traits

Merino Review 2021

27


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after putting them through a worm challenge because we believe it’s important that rams still perform even with a worm challenge.” That hardline approach is also replicated at a flock management level. “We haven’t used capsules in our commercial mixed-age ewes for two years. It’s led to some production decreases, but we hope it will only be short term. If we’re not challenging for it, we can’t identify and remove the ones that don’t perform.” The focus on selection for reduced worm egg counts and dag scores will continue with the goal of implementing a zero-drench policy in the mixed-age ewes.

SEVEN-YEAR GOALS

1. To lower worm egg counts and dag scores 2. To implement a Zero drench policy for mixed-age ewes 3. To push early growth rate and produce industry-leading sires for post-weaning growth 4. Achieve consistent 140% lambing (scanning to weaning)

WOOL WEIGHTS HOLDING Armidale wool production has hovered around 7.5kg per su wintered since 2013, which was an outstanding year. “We don’t want to lose what we’ve achieved with the wool, but we want to focus on animal health and carcase traits to get lambs to finished weights sooner.” The Patersons are maintaining fleece wool weights. Their hoggets are clipping about 5kg at 17 microns, and the mixed-age ewes 6.5 kg (excludes oddments) at 18.5 microns. Since 2017 the top end of the clip has been contracted to Devold. The Norwegian-based company’s story and specifications fit well with the defined crimp and longer staple wool Armidale grows on plainer bodied ewes. The weaning date of lambs has been brought forward, although the weights have remained around 30-32kg. Irrigation development has made earlier weaning possible with the guarantee of high quality pastures which have helped increase lamb growth rates. Over the same time there’s been an emphasis on establishing dryland legume and herb permanent pasture mixes for postlambing grazing. Lucerne has always been king in the Gimmerburn area, Simon says. Pure stands as well as lucerne and cocksfoot mixes were introduced back in the 1960s by Simon’s grandfather. Over the past decade new generation

Bede (left) and Hugo with pet lambs.

Table A:

Armidale performance

Armidale 2013 Top 20% average

Armidale 2020

Top 20% average

Area (ha)

2000

3397

2000

2653

Stocking rate/ha

4 – 4.25

3.3

4.3

4.3

Total wool sold (kg)

61,500

42, 135

46,165*

46,830

Wool weight (kg/su)

8.4

5.48

6.62*

5.6

Net av price per lamb

$88

$81.85

$126

$122

Lambing percentage (MA and 2T Merino)

115

89

126

113

Total gross income/su

$157.40

$113.55

$192.55

$166.98

Farm working expenses/su

$71.40

$53.35

$102.88

$ 87.38

Farm surplus/su

$86.00

$60.20

$92.22

$81.78

FWE as % of GFI

47

47

53

52

Return on farm assets (GFI – book value of plant)

7.9

5.3

5.6

5.2

Source: ICL Farm survey 2014 and 2020

*a higher quantity of wool was carried over from 2020 to 2021, reducing total wool sold and wool weight/su figures. The financial follow-through of increased lambing is reflected in Gross Farm Income/Stock Unit figure which has increased by $35 to $192.55, $25 more than the Top 20% average of the ICL Farm survey.

cocksfoot varieties along with plantain and chicory have been added, creating a pasture that appeals to the browsing nature of Merinos. The legume-based pasture, which follows a couple of years of ryecorn, requires no fertilizer, and persists for at least 10 years. On the irrigated land the Patersons have been trialing a regenerative-style cover crop of sunflowers, radish, peas, vetch, oats short-term grass and clover before going into a permanent mix of tall fescue, Timothy and legumes.

“We’ve found that these types of crops give us bulk feed in the first year, but managing the weeds is the hard part.” The production push for more from a resilient Merino that needs fewer animal health treatments will continue, Simon says. “We want to get more hoggets up to weight before Christmas, and to grow meat and wool with minimal chemical input which increasingly is what consumers are demanding.”

Merino Review 2021

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Helping grow the country 30

Merino Review 2021


RETURNS ON THE RISE LYNDA GRAY FINANCIAL RETURNS ARE ON the rise in the South Island high country according to a long-running survey by Central Otago chartered accountants ICL. There’s been financial volatility over the past five years, but total gross farm income in the four years until June 2019 has trended up, reflecting improving wool and meat prices. 2019 was a stellar year, and early indications are that returns for 2021-22 could be on par or better. Hogget finishing has been a big contributor to the upswing, ICL director Cam Dykes says. “Hogget finishing has been a real gamechanger for a lot of Merino and Halfbred farmers, especially those with irrigation. We currently have clients who are selling hoggets on a $9-plus schedule after getting a clip of wool from them so they’re fetching in excess of $200 a head.” Another positive influence on farm income were the growing number of fine wool and meat marketing initiatives and contracts.

“It’s giving farmers more opportunity and financial certainty with which to budget for off and on-farm investment, and plan for succession.” Debt servicing as a percentage of GFI is low at 10% compared with 20-25% a decade ago. That change reflects the drop in interest rates as well as the greater push by banks for principal repayment. “Bank lending for a long time didn’t require principal repayments because capital gain on farmland was an absolute certainty, and for that reason there was very little focus on paying back principal.” However rural lending had returned to the fundamentals of repaying principal over a reasonable period of time, much like any other commercial loan, he says. The inflation creep on costs and expenses is a concern but from his experience farmers have an uncanny ability to cut expenses, when necessary, on discretionary expenditure such as fertiliser and plant purchases. “It’s the non-discretionary items such as rates, insurance, fuel and contracting costs that create the headaches.”

Another concern and unknown, is how regulatory environmental-related compliance may affect productive capability and returns. The shortage of land could be another limiting factor. “These are the same issues facing all farmers, but overall the prospects for Merino and Halfbred systems look positive.” The survey, in June years, does not reflect the full-on impact of the Covid which will be apparent in the 2021 results. The Farm Survey, produced since the mid-1980s, tracks key financial and on-farm performance across four farm categories. The High Country Merino survey comprises 35 properties mostly in Otago and South Canterbury. Some are part-irrigated; wool typically comprises 50% of farm income; and Merino hoggets are often wintered and sold in spring. The top 20% group of farmers are identified then averaged, based on surplus per stock unit (farm income minus farm working expenses). This amount excludes debt servicing, leasing costs, drawings and plant replacement. The figures are GST exclusive.

Merino High Country • Financial Performance (June years) 2020

2018

2019

2017

2016

Top 20%

Average

Top 20%

Average

Top 20%

Average

Top 20%

Average

Top 20%

Average

Area

4418

5890

4200

6112

6464

6088

7054

5968

5144

5478

Sheep SU

7752

7238

6402

7247

6774

7853

6920

6884

5231

6608

Cattle SU

1173

1588

997

1510

540

1292

710

1016

725

1033

Total Opening SU

9270

8923

7446

8803

7315

9246

7656

8046

6028

7837

Stocking Rate/ha

3.6

2.5

3.3

2.3

2.4

2.3

1.8

2.1

2.4

2.1

Sheep Gross Profit/SU

84.88

58.64

93.67

61.34

76.21

60.59

51.43

43.38

40.97

35.05

Wool Sales/SU

66.76

57.76

84.80

72.42

69.57

60.28

53.65

49.42

49.70

43.91

Total Gross Income/SU

157.67

118.64

192.82

137.77

156.22

126.30

114.38

99.46

100.29

84.50

Total Farm Working Expenses/SU

76.94

71.93

82.07

74.28

69.55

72.93

59.20

65.73

53.35

64.46

Farm Surplus (EBITDAR)/SU

80.73

46.71

110.75

63.48

86.66

53.37

55.18

33.73

46.95

20.04

Total Debt Servicing

10.03

12.36

16.89

13.90

15.65

14.43

15.84

13.93

13.04

14.40

Total Personal Expenses

26.95

19.82

21.98

18.31

15.47

14.10

14.28

13.35

17.67

14.30

Effective Net Profit

61.40

25.26

83.40

41.15

61.60

30.62

32.51

12.43

27.02

(2.21)

Production Snapshot 2020 (June year)

Gross Farm Income • Merino High Country Top 20%

Average

250

Net average wool price/kg

$12.96

$12.25

200

Wool weight/ssu

5.22kg

4.73kg

Net average price per lamb

150

$122.04

$105.44

Net average price per hogget

$167.88

$149.96

Net average price per ewe

$90.23

$94.59

100

83

Lambing %

$/SU

Top 20%

100 50 0

192.82 157.67

156.22 110.29

114.38

2016

2017

2018

2019

2020 Merino Review 2021

31


INNOVATION • Max

Max Fashions general manager Rochelle MacDonald, Mount Benger co-owner Jenna Stevens and Max Fashions marketing manager Jennifer Mann during a visit last year to Central Otago station Mount Benger, a supplier of Merino to Max Fashions.

Traceable Merino gives Max the edge BROOKE HOBSON

F

ASHION BRAND MAX HAS HAD a renaissance since it was bought by New Zealand menswear label Barkers in November 2018. A revamped and revived Max launched into the world just under a year later. Its new vision targets the modern Kiwi woman – timeless, ageless and non-seasonal - with a more sustainable and responsible business approach. Group general manager of merchandise Rochelle MacDonald says the former Max had aged with its customers over the years. Before the rebrand, 36% of products contained polyester or nylon. That has dropped to just 4%, a big achievement in a short period of time. But the real challenge lay in changing

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Merino Review 2021

customer perceptions. This proved tougher than anticipated because the existing customers liked easy care and keen price points. “Suddenly it wasn’t easy care because you have to look after your garments when they’re made from natural fibres and made from better quality components,” MacDonald says. Throw in a global pandemic and multiple lockdowns and suddenly Max was facing uncharted territory. But the pandemic worked in Max’s favour - the broader demographic they were aiming for started to take notice. Lockdown gave them the space to tell their new story as consumers turned to online shopping and sought out local brands. Post-lockdown, staff noticed the mums who were previous customers started bringing their daughters in to shop too. “As much as it was a bloody terrible time,

I do think it was actually a turning point for us in terms of people realising what we were doing,” MacDonald says. Their customers have become increasingly interested in traceability, not only wanting to know where the fibres used come from, but who is involved in that process. The brand has always had a big Merino wool component to its ranges, but not a traceable programme like the New Zealand Merino Company’s ZQRX. The programme gives the rebranded Max credibility. Knowing their yarn comes from farms in New Zealand which are ZQRX accredited is a game changer and a story that customers can embrace. Earlier this year, MacDonald and group marketing manager Jen Mann visited Jenna and Tony Stevens at Mount Benger Station in Central Otago to better understand the ZQRX programme. MacDonald says it hit home how much


“You appreciate it so much more when you are down on farm, it was a really cool experience.”

passion farmers have for what they do and their love of the land and their stock. “You appreciate it so much more when you are down on farm, it was a really cool experience.” Mann says Max is committed to communicating and celebrating Merino growers through its products and marketing. The Barkers and Max group went “all out” for their launch of ZQRX wool certified garments, with a dedicated area in store as well as a digital strategy communicating what ZQRX means and how it benefits their customers. Mann says its vital customers understand the changes Max is making to its Merino

programme and sharing growers’ stories is a big part of this. Mount Benger’s Jenna Stevens spotted the dedicated Merino display while in a store after its launch and says it was exciting to see brands like Max supporting farmers and to see their product making a difference for the company. Max’s commitment to continue evolving is clear and the team is proud of how far they’ve come in such a short amount of time. While it’s been challenging along the way, MacDonald says it’s also been rewarding to see customers rediscover a Kiwi brand. “It’s been a wild ride, and there’s always more work to be done.”

ON PROPERT Y AUC TION 27th Jan 2022 100 Rams to be auctioned Private treaty rams available from 28th January

We measure our success by the maternal performance of both our own and our clients’ ewe flocks. We finish over 3000 of our merino wethers each year and they consistently produce a gross margin of over 50c/kg drymatter.

2 0 2 0 DRO P S A L E R A M S EBV AV ER AG ES YWT

YEMD

YFAT

YCFW

YSL

DP+

7.7

1.6

0.9

23.3

20.0

166.3

Willie and Susan Macdonald 03 575 7042 middlehurstltd@outlook.com www.middlehurst.co.nz @middlehurststation

Merino Review 2021

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INNOVATION • Sheep Inc

One of Sheep Inc’s hero farms, supplying wool for the brand’s knitwear range, in the Mackenzie Country.

SHEEP INC DELIVERS

'hyper-transparency'

SANDRA TAYLOR

I

T WAS THE BIRTH OF EDZARD van der Wyck’s first child that was the impetus for the London-based fashion entrepreneur to take a stand against fastfashion. The co-founder of Sheep Inc, a carbon negative on-line knitwear company which sources Merino wool from New Zealand, had seen first-hand the impact ‘fast fashion’ was having on the environment with his involvement in developing fashion brands. Concerned about the lack of awareness in the market about how badly the fashion industry was behaving in the midst of a climate crisis, Edzard used to share the fashion-industry’s disappointing statistics with his friends at the pub. But it was the birth of his son that spurred him into action. “You start to have a generational mindset. What am I leaving behind and what am I leaving for him?”

34

Merino Review 2021

In 2017 he left his former company Heist Studios – which focused on women’s tights – to pursue his dream of setting up a fashion label that not was not only environmentally friendly but offered customers a sense of connection with the provenance of the clothes they were wearing. “At the heart of what we set out to do is to try and figure out this sense of connection. “How do you rebuild that sense of connection with customers? “That is the big piece that has been missing. Fashion has been such an opaque industry for so long, people don’t have that connection with any heritage or provenance.” Looking for a product that makes sense from a provenance point of view, knitwear was an obvious choice because it has fashion permanence. It can last a lifetime. From this point, Edzard began exploring what sustainable fibres were available that were both high quality and wearable. The only two fibres that come close to ticking both of these boxes were wool and

cashmere, but the cashmere industry proved challenging from a sustainability point of view. Merino wool was next on the radar and the fact it could be made as soft as cashmere - yet technically was a better fibre - made it the focal point for Edzard but its environmental credentials need to be impeccable. For Sheep Inc, sustainability means not just being carbon neutral, but carbon negative. “It has to have a regenerative impact.” Working with the New Zealand Merino Company (NZM), they identified ZQ and ZQRX accredited farms that were at the cutting edge of biodiversity and land management. Sheep Inc has three 'hero' farms in NZ, one each in Central Otago, South Canterbury and Marlborough. Edzard says when they first started 18 months ago, they were measuring the gross carbon footprint of the product and off-setting that ten-fold through biodiversity investments which accounted for 5% of Sheep Inc’s revenue. They have since refined this, working with individual farms. The garments are created using solarpowered manufacturing and spinning technologies and no harsh products are used in the treatment or dying processes. “The supply chain is optimized to within an inch of its life for sustainability purposes.” The next challenge for the company was to not just demonstrate transparency along the


whole supply chain, but to build an emotional connection with the garment - so the wearer can feel connected with the producer, the farm and even the sheep that grew the wool. Sheep Inc’s ‘Adopt a Sheep’ programme gives every owner of a Sheep Inc garment a sheep – or at least the ability to track the item back to its source in the New Zealand high country. A chip is sown into each garment which, through smartphone technology, not only tells the supply chain story, but by working with each’s farms electronic tagging system, allows wearers to link to a sheep and the farm. It is the sense of emotional connection that Edzard hopes will feed into customers' buying patterns, so they will think about the story behind the products they buy and ask questions about values associated with that product, such as sustainability and people and animal welfare. Part of Sheep Inc’s philosophy is investing back into each farm and this investment is targeted at protecting and enhancing biodiversity through very specific projects. The wool Sheep Inc is sourcing is 19.5 micron and volumes are increasing exponentially. Edzard says this is where NZM's ZQ and ZQRX programmes are so valuable because they can select suppliers based on these values. While Sheep Inc is sourcing its wool from the other side of the world, Edzard explains that shipping and transport costs are a minimal part of the final product’s emission’s profile, although they are continually looking at ways to reduce their transport emissions. Sheep Inc is just over a year old and so far, sales have exceeded all expectations. “We’ve positioned Sheep Inc as a real pioneer because of our supply chain transparency.” This has not gone unnoticed, with Sheep Inc winning numerous awards including a supply chain award at the prestigious Drapers

BACKING FARMERS

DAN, DAN THE OVIS MAN

Sustainable Fashion Awards. Edzard says the reception the brand has received from customers who are actively looking for brands that do good, is encouraging and Covid has helped, as it has driven an awareness of products that have a positive impact. While the demographic Sheep Inc is targeting is 28-50 years old, the people buying the garments go well beyond either side of this, with some customers appreciating the

Plant Pakeha trees

incl gst

BUSINESS:

Online stock trading

$12.00

garments’ quality and durability while others appreciate the sense of connection they provide. Edzard says looking ahead, Sheep Inc will remain focused solely on knitwear and aspires to be ‘the’ knitwear specialists in the market. Already they are expanding their product range and there is plenty of scope to expand further as knitwear encompasses a wide range of clothing which is good news for this country’s Merino growers.

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“We’ve positioned Sheep Inc as a real pioneer because of our supply chain transparency.”

BENEFITS:

After a lifetime of fighting sheep measles Dan Lynch retires, p90

ACT NCING A BALAing your farm able.

Sheep Inc knitwear has a chip sewn into each garment which provides customers with a journey back to the farm where the wool was grown and the sheep that grew it.

$12.00 incl gst

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Merino Review 2021

35


OFFSHORE • Australia

A recent field day in Victoria for Australia’s Merino Lifetime Project attracted a large number of stud principals and local farmers. The project is challenging long-held views on breeding Merinos.

AUSTRALIA'S FLOCK REBOUNDS AFTER EXTENDED DROUGHT MATTHEW CODDINGTON

G

reetings from Australia. As the excellent season rolls on for many key sheep regions in Australia, the national flock is expected to grow by 10.3% to 70.6 million head in 2021, rising from its lowest national flock size in 100 years in 2020 of 64 million head. On the back of the current seasonal strength, the national flock is forecast to be even larger in 2023, at 76 million head, the largest Australian sheep flock since 2008. The Eastern states of Australia have been the key drivers of this growth, with parts of New South Wales in particular experiencing two years of above average seasonal conditions after suffering devastating drought conditions for the previous three years. This has driven increased stocking rates and higher retentions of females based on 36

Merino Review 2021

favourable mid-term market confidence and seasonal outlook. The pace of the national flock rebuild has occurred significantly faster than initially expected as a result of these factors. Our Australian Eastern Market Indicator (EMI), which tracks wool prices, has been relatively stable this year, sitting above A1300¢/kg since March. It has eased recently by 7% after reaching a yearly high of A1423¢/ kg in July. The EMI price will remain dependent on demand from the major wool manufacturing countries of China, India, Czechia and Italy. The wool price can have an impact on the demographics of the Australian national flock, given the current dependence on Merino ewes for breeding. Merino ewes make up 74% of all breeding ewes. Australia is experiencing a perfect storm for commodity prices for agricultural goods. Merino ram sales have seen major increases

in quantity and price this year. It is not uncommon for on-property ram sales to be offering anywhere from 200-500 rams and averaging over A$3500. The highest price for a Merino ram sold this season has been A$88,000, an Australian onproperty ram sale record. This price was paid for a 2020 born Collinsville Poll Merino ram that weighed 137Kg and tested 21.9 micron. Due to Covid-19 restrictions in local government areas and inter-state travel restrictions, most of the rams that have been sold have been bought sight unseen. Most sales have been interfaced with an online selling systems, through either Auctionsplus or Elite Livestock where pictures, videos and information are displayed on each individual lot to be sold. Never before has it been so important for a stud to be able to display as much information as possible to a ram buyer to reduce the guess work out of their ram selection, when buying rams sight unseen. Key to all of this has been the uptake and use of Australian Sheep Breeding Values (ASBVs) in studs, providing as much accurate information to ram purchasers as possible. Data has been a big driver at most of these big sales, with rams with good ASBVs for a variety of traits easily being plucked up by commercial ram breeders for between A$4000-$5000. This spring, I attended a lot of the bigger ram sales throughout New South Wales. Some ram buyers are not going to be particularly happy when they finally do see their rams in the flesh. Due to the high demand on data and ASBVs, some stud breeders lotted their rams on their computer and did not look at the physical or wool attributes of their rams. It has also been a very wet year with most farmers already reaching their yearly averages for rainfall by July. There were a lot of rams being penned for sales with bad feet, long toes, bad pasterns and hocks with wool that had coloured bands, cream or even fleece rot. There was also a lot of black and brown spots on the sheep around their eyes and on their noses. Due to the push for fertility and lamb survival to increase our sheep population in Australia, there has been a big push from consultants to push for increased muscle and fat. This is a path that we have been also pushed down within our own Poll Merino flock here at Roseville Park. This year we had orders from Victorian, Tasmanian and New South Wales ram clients for over 150 Poll Merino rams that had to be positive for yearling eye muscle depth, yearling fat depth and yearling clean fleece weight ASBVs. But because of the micron premiums


Matthew Coddington is on the New South Wales Stud Merino Breeders’ Association committee and co-principal/ manager of Roseville Park Merino Stud.

for finer wool at the moment, they also had to test under 18.5 micron or have an ASBV for fibre diameter below -1.3. Has anyone actually tried to find 150 sheep that tick all of those boxes at a ram sale? The genetics are so antagonistic and it is very difficult to find these industry outliers. We have begun to select and artificially breed this type of sheep through embryo transfer and artificial insemination - but it has been a very measured and careful selection for physical and measured attributes. Over the past couple of years, I have also been involved in the $13 million Merino Lifetime Project funded by Australian Wool Innovation, the NSW Department of Primary Industries, CSIRO, Murdoch University, NSW Stud Merino Breeders and private service providers. This project has been massive in terms of world sheep research and is debunking some of the myths that have been extolled throughout the industry over the past 10 years. The outcome of the project is that 5700 ewe progeny from 134 diverse industry sires have been measured for every trait possible at five

sites across Australia for five years, generating just under two million data records, including 50,000 reproduction records. From the data that I have seen published, the most confusing trait is reproduction and its correlation with any other traits. It seems that the ewe progeny with extremely high fleece weight, yearling weight, fat and muscle struggle to conceive and rear lambs, because they are just too woolly, too big or too fat to actually put a live lamb on the ground. It is an important reminder not to just focus on one or two traits to the extreme. The outstanding performers in the project over their lifetime, seem to be just okay and slightly above average for all of the measurable traits, and are quite balanced in their genetic makeup. The take home advice from this, is it is important to know the heritability of the traits that you are selecting for and the positives and negatives that it can provide for your flock. Of course, you need to weigh that up with the physical attributes of your sheep. They still need to put a live lamb on the ground and be able to walk their wool into the shearing shed.

MULLER MERINO STUD

• Breeding true dual purpose 18-20 micron Merinos, focusing predominantly on polled genetics.

• ASBV’s and full recording information including muscle and fat scan available.

• Incrementally increasing muscle and fat whilst staying focused on wool quantity and quality.

• Using industry-leading genomics to improve foot-rot resilience.

• High fertility stud scanning 190% M/A ewes and 150% 2ths.

• Ideal for adding value to your sheeps’ performance. • View Muller Station on Facebook.

Phone: 03 575 7044 Cell: Stephen 027 474 8865 Mary 027 474 8869 E: info@mullerstation.co.nz www.mullerstation.co.nz

Merino Review 2021

37


ONFARM • Muller Station

Mustering both sides of the Acheron River takes four days at Muller Station.

Sustainable half century ANNABELLE LATZ

I

T’S OCTOBER 2021 AT MULLER Station up the Awatere Valley where shearing has just finished, they’re into their first week of lambing, and the grass has just started to grow. Back in April up the Acheron Valley, Muller Station owners Steve and Mary Satterthwaite, their two children Alice and Ben, and the wider mustering crew were out on the hills for the Muller Station autumn muster, taking the ewes back to the Awatere Valley for the winter months. At the time, Steve was hoping for a good spring after a two-year dry spell with just two months of growth. Spring certainly would have been welcomed a month earlier, but after the challenging winter they were served, it’s starting to come right now – at last. “We are going to have a very good early summer. We missed out on spring but there is 38

Merino Review 2021

so much moisture around now so we just need the heat,” Steve says. He’s positive the frosts have more or less finished which will serve well for 35 days (two cycles) of lambing. In fact, the first 10 days of lambing could not have been kinder. Spring coming a month late is not an isolated pattern. The clear message over the past few seasons is that autumns are getting longer, winters are going later and therefore spring is starting later which means a delayed summer. “Only now in mid-October is the grass just starting to outgrow consumption. It’s recognising this climatic change.” July, August and September served a record rainfall of more than 350mm. Put this against their annual rainfall of 500mm and that’s some serious precipitation. In July the Marlborough region suffered a severe rainstorm. Awatere Valley Road was closed for 10 weeks due to slips and damage, making it impossible to get to Blenheim which

eliminated opportunities of getting feed in or stock out. Even now with the road reusable it will be closed to public use until at least Christmas while continuing repairs are made, Steve says. Due to the time of year, this road closure was more stressful for farmers than when the road was closed for 19 weeks after the earthquake in November 2017. The impact this time around on animal management and livestock was greater, he says. “That (the winter storm) was a bit of a major, but we got through.”. Farmers talk about climate volatility and how to best work with it to suit their farming programme, he says. That conversation may need to include reconsidering dates like when to put the rams out or when to shear. “It is something we need to roll with and understand a lot more. We need to re-evaluate if we have it right.” Muller Station is 38,800 hectares, including 28,000ha of pastoral lease. The Satterthwaites operate a “fairly simple” system, due to having genuine summer and winter country. The Awatere Valley is good for lambing and winter grazing, and the Acheron Valley is great summer country.


Top: Some of the mustering crew at the autumn muster at Muller Station. Above: Consistency is key at Muller Station when it comes to breeding.

“This absolutely minimises winter feeding and crop growing,” Steve says. The calves and studs get supplementary winter feed of ryecorn crop and lucerne balage but normally nothing else does. At baling time, they save cost by working in with neighbours Molesworth and Middlehurst Stations to get a contractor in from Blenheim. Muller Station runs 6500 ewes (including just under 600 stud ewes), 5500 hoggets, 100 rams and 2300 Angus-cross cattle. Steve and Mary first bought Merino genetics from Charinga Merino Stud in Victoria, Australia, in 2004. Their ongoing relationship with the stud has created a consistent breeding base, allowing them to focus on breeding the sheep they want. It began with selecting a commercial ewe mob of 200 reflecting what they liked - a good dual-purpose sheep - and they aimed for

'Only now in mid-October is the grass just starting to outgrow consumption. It’s recognising this climatic change.’

consistency from the outset. “We were lucky that our ewes really clicked with the original two rams we brought in.” Since then, they’ve used several sires from other studs from Australia and New Zealand. “It’s about muscle, fat, conformation, the quality and quantity of the wool and trying to produce the ideal dual-purpose sheep. And

with that comes fertility,” he says. “Being on the same page as our ram clients is huge, sharing with them our breeding direction, listening to them, and taking on board their feedback.” Steve says Covid-19 has changed the way farmers buy genetics. Going to Australia to look at rams is not currently an option. Because of that, Muller Station started using artificial insemination over some ewes. This year, 100 out of the 550 mated were inseminated artificially. “It’s always exciting seeing how that goes; how many lambs we get, what they look like and how they grow.” The Satterthwaites are clients of neXtgen Agri, and Steve says the advice and logistical help they receive is invaluable. Despite Covid-19’s impacts, Steve says commodity prices are near all-time highs, with contract prices with the New Zealand Merino Company (40% of their income) and high beef and lamb schedules looking the best they have ever seen. “In fact, commodity prices for the past three years have been some of the best I’ve experienced in my farming career.” The wool boom in the 1950s is regarded as a great era in NZ farming, but the difference now is all commodities (fine wool, lamb, beef and mutton) are really strong. Steve says the farming sector must seek to build stronger relationships with urban NZ. He believes the NZ Merino industry is an exemplar of environmental management standards for farming. “If we can portray that unity with our New Zealand partners and the integrity that goes into these relationships, the potential has never been better.” He’s a strong supporter of quality assurance programmes like ZQRX, introduced by The New Zealand Merino Company, because they are independently audited. “It’s about focusing on the environmental issues that we face, which is why we have to be so constructive and positive in the messages we portray.” Wind the clock back to the days of high country field days which started in the 1980s. In the early 2000s it was hosted by Muller Station, a few hundred farmers and industry partners stood around chatting about the concept of sustainability in the high-country. “It really was a topic. Today the term regenerative agriculture has become the buzzphrase, but simplistically we’ve been doing that for the last 50 years.” Steve says farming today is about being aware of change, and the need to change, industry wide. The challenge is finding the balance to farm productively and profitably, in a sustainable and biodiverse way.

Merino Review 2021

39


MARKETS • Clip preparation

High VM takes cream off top JOANNA GRIGG

L

ETTING SHEEP PUSH INTO shrub country during autumn drought has consequences come shearing time. As does feeding hay in winter to long-wool sheep. For fine wool growers earning $21/kg clean, a vegetable matter contamination discount may only be 4% of fleece value but it’s the cream off the top. It may also eat into the yield of the fleece as contaminated wool is tossed into pieces. Dave Burridge, South Island Wool Sales Manager, PGG Wrightson, says higher contamination levels have been seen in all wool types this season. “We’ve seen higher vegetable matter in clips from Marlborough through to Canterbury, and resulting discounts in price.” High VM is regarded as wools with over 1.5% VM and medium contamination as 1.1% to 1.5% The amount of discount is related to the destined end use of the wool, which is in turn related to micron, Burridge says. Medium Merinos, Halfbred or Corriedales over 22 micron can get stung with a higher discount as this wool is unlikely to be worsted during processing. Moit, which is dried leaves rather than seedheads, can largely be removed during the carding, combing and gillling processes prior to spinning. Wool under 22 micron is typically destined for top-making. The maximum acceptable VM in this case is usually 1.5%. Growers with 1.1% to 1.5% VM can expect a discount of around $0.80/kg of clean wool, he estimates.

UNDERSTANDING WOOL CONTAMINANTS AND DISCOUNTS • Two types of vegetable matter; moit (leaves) and seed heads (burrs) • Discount $0.80/kg clean wool if over 1% to 1.5% VM (18.0 micron example = $2.50/head, based on 3.2kg average clean fleece weight) • Discount $2.60/kg clean wool if 1.6% to 3% VM (18.0 micron example = $12.80/ head)

40

Merino Review 2021

Bracken leaf in wool is one type of moit vegetable matter (VM). Dave Burridge, PGG Wrightsons, says growers switching to crossbred sheep, away from Merino, can overlook the high VM penalty for crossbreed wool compared to Merino.

‘We’ve seen higher vegetable matter in clips from Marlborough through to Canterbury, and resulting discounts in price.’

• Moit in wool under 22 micron discounted less than over 22, as typically these wools to be processed through the worsted system. Moit can largely be removed during the gilling and combing process • Wool over 22 micron can occur a larger discount as a percentage of the value of the wool (e.g. $6.40/head for 27 micron containing 1.5% to 3.0% VM) • Huge 50% discount on crossbred wool (32 micron) if 1.5 to 3% VM. Higher than 3% VM in crossbred wool is severely disadvantaged. Growers can easily overlook

• • •

• •

this when crossing over from running fine wool sheep to crossbreds VM of 5%+ may need carbonising offshore. Price related to end use Moit mainly manuka/kanuka, hay, matagouri Communicate with handlers: remove VM wool in shed, to boost value of remaining fleece Remove horehound, thistles off pastures (spray or biological controls) Consider winter crops or balage over feeding out hay.


For an 18-micron fleece, which is the average for fine wool in New Zealand, the price penalty would be $20.20/kg clean rather than $21/kg. This is around $2.80/ head for a sheep clipping 5kg and yielding 70%. This may seem inconsequential for a sheep returning $73 of wool per head. However, over 1000 sheep this is $2800. Also, a greater proportion of the fleece may have to be removed and put into necks and backs, dropping its value from $20.20 to $18.00/kg clean. If VM is between 1.6% and 3% this discount is closer to $8.30/head, he says. Over 1000 sheep it is $8300. This may be considered an acceptable cost to pay during a drought, for allowing stock to graze rougher shrubland blocks to access feed. NZ fleeces are typically well under 1.6% VM, although this year some have been over this, Burridge says. VM under 1.5% is probably just okay for best top-making uses. If the contamination is seedheads like horehound or biddy bid where the seedheads have craws to attach themselves to wool or thistles, the penalty will be more, he says. This can incur a further discount of

up to 200c/kg clean. Burridge encourages farmers to reduce the amount of VM by breeding for density of follicles on the back, as it does help keep backs closed. “It can also go hand in hand with higher wool weights – so a win-win.” Farmers should try and view rams in long wool, to see how the backs look, as opposed to viewing rams in six weeks of wool pre-sale. “The Wanaka Show is a popular place to see rams in their longer length fleece. “There is no particular breeding value for closed surface backs.” Wool with very high VM (over 5%) requires carbonising. In this process, wool is treated with dilute sulphuric acid after scouring. It is heated which converts the vegetable matter into carbon powder. This is removed by further shaking and scouring. Wool is then neutralised in an alkali solution. Wool that has rubbed through burnt bush and turned black is very hard to clean off by scouring. “Bush burn is seen less these days but still needs to be prevented.”

Backs removed from the fleece. Bob Butt, Wool Marketing, Marlborough, says presenting backs with under 1% vegetable matter will keep the wool at its maximum price possible.

BREED FOR CLOSED FLEECES TO AVOID VM RISK WHEN BUYERS CHASE FINE wool, the backs of medium Merinos can become quite valuable. This is because this area can be slightly finer than the average of the clip. Bob Butt, Wool Marketing, Marlborough, says backs generally sell well but price depends on vegetable matter (VM), colour, length and break. Presenting backs with under 1% vegetable matter will keep the wool at its maximum price possible. For crossbred it’s a lot lower threshold, with only 0.02% VM triggering discounts. This is because processing methods are different for strong wools. “Most Merino wool coming through our doors is under 1%, but we do see some between one and 2%which may attract a discount.” It is good practice to cull both Merino and mid-micron sheep with open fleece backs and breed towards those with a closed wool tip surface, he says. “For me it doesn’t matter if it’s a greasy tip or not, just a closed surface.” The backs of sheep are the most likely place to gather shrubland detritus. Wool Marketing’s biggest issue is broken pieces of dried bracken fern, followed by kanuka/manuka leaves and matagouri. VM is measured by taking a sample from several bales, air blending it, then taking a final sample from the mix. One measurement technique is to weigh the sample, then burn to incinerate the vegetable matter. The balance of the weight shows the percentage of original contamination. Bob Butt has seen flocks grazing through drought that have collected 5-8% VM in the backs. This is because sheep push into shrub areas they don’t usually choose to graze. “It’s been particularly bad in the top end of our mid-micron and crossbred fleeces in Marlborough this year.” Wool Marketing sources wool from Marlborough through to Tasman. The most contaminated clip was 12% VM, out of the Marlborough Sounds.

Merino Review 2021

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“This makes it extremely hard to sell.” Seed or burrs are another contaminant and affect the neck, jaw and chest wool in sheep. It is almost impossible to comb out, he said. It has become less of a problem over time however, due to better pasture management through subdivision.

CONTRACTS CALL FOR SUB 1.5% VEGETABLE MATTER

Classer Bronwyn Edgar appraises a Merino fleece. Farmers have some influence over vegetable matter.

Contracts make it very clear what is acceptable VM contamination in a line of wool. Blair Davies, NZ Merino Company, Assistant Commercial Manager and Area Manger Marlborough, says having clear guidelines for classers, shed hands and conversations with growers has seen improvements in lines of wool. “Generally, all our contract growers hit the mark.” For most of NZM contracts (between 16 and 26 micron), lines must be under 1.5% VM. NZM has one specific contract requiring a maximum of only 0.2% VM

because it goes through a felted process, not combed. The general message is that VM is related to country and season and the shearing process is the best place to act as gatekeeper. Mostly backs and necks with heavy VM are removed, Davies says, although backs with very light VM can sometimes be left in. It also depends on the type of VM. Leaves shake out fairly easily. “It is actually more important that like wools are classed/skirted with like wools – with the same character. “Removing the necks and backs, not only for VM but length and character, can also be important for contracts, depending on the end product.” Farmers can have some influence over VM, especially choice of feed to hoggets. Supplements like hay that lie parallel to the fibre are more difficult to comb out. Horehound burrs were a problem in Central Otago last season, but not so prevalent this year highlighting the seasonal element of degrees of vegetable matter, he says.

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LEGENDS • Bob Todhunter

Bob Todhunter has been breeding sheep since the 1950s and classing wool since the mid-1990s.

BATON CHANGE

Bob recalls the early contract blade shearing gangs being run by Dick Perry and Peter Casserly. All wool pressing was done by hand and the classers were Dalgety agents who worked in the wool store. White coats were worn by classers. “They were generally young but welltrained.” In the 1950s wool was sent to Washdyke or Waihi for scouring before being shipped to London. The farmer was paid once it sold in London, Bob recalls. “If it was shipped around the Cape of Good Hope it sometimes got a bit wet, so was heavier perhaps!” The Korean War from 1950 to 1953 saw a price boom. But the 1951 ‘waterfront’ wharf strike, that lasted 150 days, meant some wool couldn’t get to market to get the best price. “I recall Richmond Brook being paid one pound for one pound of wool.” Bob spent two years in England after leaving school, including completing a farm training course at Cirencester Royal Agricultural College. He and James Wilson went machine shearing around the UK, cutting their teeth on Clunes sheep (a crossbred). In 1962 Bob returned to Cleardale and worked as stock manager. The Todhunter flock at Lake Heron has been selectively bred for almost 100 years. In the 1950s Professor Henderson, Lincoln College (at the time), became involved in performance recording both Lake Heron and Cleardale stud ram hoggets. “This involved weighing fleeces, side sampling, measuring yield and micron and linking the results to sire groups.” “This has continued on with new technology like estimated breeding values, but we’ve stayed with the medium wool throughout, despite trends to finer at times.” Bob was always busy running the stock side of things but in the late 1990s, sons Philip and Ben took on the properties and ran them separately. This gave Bob the chance to step back from stock and work on the wool table, initially pressing wool then starting into classing. Ben also has his classing ticket. Lake Heron and Cleardale wool was sold via auction from the 1960s until the NZ Merino Company was created. Lake Heron supplies Smartwool and Icebreaker contracts with some small lines going to auction. Philip likes the fixed price contract. “You win some, you lose some but it has taken out the real risk in price,” Bob said. Bob handed sole responsibility of the Lake Heron shed to Philip and Anne’s daughter Maria in 2020, although he has been known to pop into the shed for a chat.

for classing Lake Heron clip JOANNA GRIGG

J

UST LIKE HIS GRANDDAUGHTER Maria, Bob Todhunter became fascinated with wool by starting out sweeping the board whilst still at school. The difference in the 1950s was the shed was a men-only workplace and three blade shearers were employed full-time to shear at the Canterbury family properties Lake Heron, Cleardale and Glenfalloch. Bob has been involved with growing wool all his life and has classed wool since the late 1990s. Now 81, he is delighted that granddaughter Maria finds wool as interesting as he did. “I’m thrilled to see it.” He calls classing the art of being an educated guesser. Time in the shed and discussing each fleece is the way he has learnt and also how he teaches. “Touch and feel are as important as sight.” “You learn about wool as you go.” Bob classes under the Owner/Grower classer stencil FM1845 and acquired the classer role when his sons Philip and Ben took on Lake Heron and Cleardale as separate farm businesses in the 1990s. Lake Heron had been purchased in 1918 by Bob’s grandfather (also Bob) and the family took full ownership

in 1921. At this stage Lake Heron was an extensive unimproved property, with few fences. “My father Jim managed it for my grandfather from the 1930s, and it was tough place. My grandfather even tried selling it.” Bob can recall that sheep were plunge dipped in an arsenic mix to treat lice and keds one month off-shears and swum through the river to clean the fleeces. Along the river stations, sheep were ‘breed for sand’. This meant breeding for a closed fleece surface, to keep out the Rakaia Gorge sand when they sat against banks to find shade. Cleardale was purchased in 1943 by Jim Todhunter as a smaller block. Parts of neighbouring Blackford were added, purchased from an aunt. In the 1950s Jim started a Merino stud, buying the core flock from Bob’s aunt Margaret Pilbrow, who had inherited the Blackford Park flock. They were mediumcombing Merinos and this type of Merino is still run today at Cleardale and Lake Heron. “They were small sheep in those days, clipping four kilos of wool and lambing between sixty and seventy percent.” “Now Lake Heron sheep clip six kilos and lamb one hundred percent.” “And the yield is so much better – around seventy-five percent.”

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SHOWS • Marlborough two-tooth competition

UTILITY OF MERINOS SHOWCASED JOANNA GRIGG

T

HE 2021 MARLBOROUGH Merino Association Two-tooth Ewe Flock competition tour, held in April this year, showcased the utility of the Merino breed. The eight entrants run Merinos on properties with annual rainfall ranging from 550mm to 1100mm. Pasture-types range from improved vineyard flats to tussock hills in the coastal Ure, to blocks over 2000 metre highcountry in the Awatere Valley and low-fertility hills in the upper Wairau Valley. This year, several flocks were presented by the new generation of growers, reflecting a perennial family interest in farming the breed. Judges Mark Urquhart and Hugh Cameron awarded the Muller Station two-tooths the overall award and the most improved award. This was based on wool quantity, quality and body condition score and weight. The Muller sheep also won the wool quantity section.

Hugh Cameron, judge, appraises Simon and Jane Fowler’s Merinos at The Bounds, Wairau Valley.

“We bought really good ram genetics out of Aussie, and this ram has four hundred progeny on the ground here – one third of our stud rams.”

Muller hoggets clip 4.2kg of fleece at an average of 16.7 microns. Judges commented that they were productive sheep, carrying long, well-nourished wools with great style and a bloom to the mob. Muller Station sheep received 5 out of 5 for condition score and 4/5 for liveweight. The sample mob averaged 52.5kg. The superfine entrants were given a 1.2 factor weight advantage to level the playing field. The upper Awatere flock is owned by the Satterthwaite family and was presented by Alice Satterthwaite. Alice said selecting objectively measured genetics at both a commercial and stud level has made significant progress in sheep performance and health. “It has helped to boost the bottom line.” The incorporation of ASBV’s (Australian Sheep Breeding Values), along with selecting for phenotype has really boosted muscle and fat and, as a result, fertility and do-ability across the flocks, she said. “This has been without compromising on wool quality and quantity.” Blairich Station was placed second, and another Awatere property, Glen Orkney, third. The Blairich sheep, grown by Ron and Sue Small, together with Tom and Claire Small,

Left: The 2021 Marlborough Merino Association Two-tooth Ewe Flock competition tour in April, visiting the Isolation yards.

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Merino Review 2021


Alice Satterthwaite prepared the Muller's winning entries in this year's Marlborough two-tooth competition.

also won the wool quality prize. Blairich runs both stud and commercial sheep, with up to 4800 hoggets and 4900 two-tooth and mixed age ewes. The hoggets average 2.7kg of 16-micron wool and the commercial twotooths 5kg of 17-micron wool. Judges described the Blairich sheep as a large and uniform mob, with great legs, shoulders and faces. The wool had excellent length, colour and style. Condition score was 4.5 points. Blairich used to finish all wether lambs but, three seasons ago, moved to selling store at weaning, to prioritise feed for replacements. Tom said he has seen an improvement in twotooth scanning, up 15%, due to higher body weight and condition score. “Our breeding objectives have also had a significant emphasis on early growth rate post-weaning and carcass traits.” “We chose to make incremental gains in other traits, rather than sacrifice the last twenty years of building wool quality.” Tom said they did this without increasing micron, through using ASBVs. “We bought really good ram genetics out of Aussie, and this ram has four hundred progeny on the ground here – one third of our stud rams.” The Smalls signed up to supply Devold five years ago and have aligned their breeding objectives with Devold’s wool specification requirements. “They want staple length as long as possible,

Judge Mark Urquhart checks on the Mount Gladstone two-tooths.

with bolder, deeper crimp than our traditional super-fine.” “Our two-tooths staple is now 100mm and it wouldn’t matter if it gets to 110 or 120mm.” Tom said the Two-Tooth Competition was very good this year, with plenty of discussion. He was pleased the Blairich entry was recognised for wool quality. “We’ve been very conscious not to lose the wool quality we had,” he said. The competition tour was a forum for discussion on breeding objectives and types

of sheep. Of course, being Merino growers, the conversation soon turned to genetics; ram choice, ewe selection and the options with artificial insemination across both stud and commercial flocks. Glen Orkney two-tooths were described as deep-framed ewes that would tend to be easycare and productive. Their condition score was 5 out of 5. The confirmation prize was awarded to the finest wool two-tooths on the tour - the entry from Isolation, farmed by Rob and Sally Peter, at Ure.

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MARKETS • Auction

Price rebound for fine wools at auctions this season TONY LEGGETT

for the wools under 18 microns. “Those superfine wools under 18 microns have been trading very strongly until today’s sale. They were cheaper today and it was the turn of the 20-24 micron wools to receive the premiums,” he says. Until that November 4 auction, Dave says the margin between superfine and ultrafine wools over the stronger types had not been seen for many years. “I don’t think we’ve seen margins like that for something like 30 years. I think one of the reasons for this was the fear of missing out on lower volumes of those types of Merino wool with less coming through the Australian market this season.” The Australian wool clip has strengthened in fibre diameter on the back of a great growing season across the Tasman, and buyers have been hunting the superfine and ultrafine wools in New Zealand to meet their orders.

N

EW BUYERS, INCREASED volumes and significantly improved prices have capped a successful first half of the 2021-22 wool selling season for Merino type wools. PGG Wrightson South Island Auction Manager Dave Burridge says prices have rebounded from the previous season across all Merino wools and he is confident that will continue into the second half of the season, starting with the first offering of fine wools in February next year. He says it is a remarkable turnaround given the impact of the global pandemic, particularly on the market last year when the world was in lockdown for long periods. Speaking just after the November 4 auction, Dave says demand was up substantially for the - Average Spot Market Price 2015-2021 18-20 micron wools on offer and eased slightly

Merino - Average Spot Market Price 2015-2021

- Average Spot Market Price 2015-2021 Merino • Average Spot MarketMerino Price 2015-2021 3500

3500

NZ Cents per Clean Kg

3000

NZ Cents per Clean Kg

3000

2500

2500

2000

1500

1000

2000

2015-16

2016-17

2017-18

17 Micron

2018-19

18 Micron

2019-20

19 Micron

20 Micron

2020-21

2021-22

Data Source: PGW Wool Auction

1500

2015-16

2016-17 1000

2017-18 2015-16

17 Micron

2018-19

2016-17

2019-20

2017-18

18 Micron

17 Micron

2018-19

19 Micron 18 Micron

2020-21

2021-22

2019-20

20 Micron

19 Micron

2020-21

2021-22

Data Source: PGW Wool Auction

20 Micron

Data Source: PGW Wool Auction

PANDEMIC’S IMPACT ON SALES EASES The outlook for farm gate Merino wool prices is positive says Mike Hargadon, New Zealand Merino Company (NZM) general manager supply innovation & logistics. “Market segments such as the active outdoors continue to grow and more brands are looking to use wool in their product lines,” he says. “There is huge demand for ethically produced wools with a valid certification, and this is driving a price gap of 10-15% above non-certified wool pricing.” Hargadon is confident this will continue as brands strive to ensure the fibre sourced for their products meets the standards consumers are demanding. Looking back over the past year, Hargadon says the Covid-19

46

Merino Review 2021

pandemic’s significant impact on sales is easing. Brands and stores are slowly recovering as the world opens up again. Demand for worsted suiting, where sales were down by as much as 60% on pre-Covid levels, is improving which is a positive sign for the suiting and luxury brands. “Italy is also saying sales are improving and almost back to levels pre-Covid for the weaving sector.” The active outdoor market was less affected. Traditional channels closed their doors, but brands that had a strong online presence achieved increases in sales. “Brands are reporting that they are seeing a positive impact on their businesses as consumer awareness of the active outdoor and healthy lifestyles continue to be front of mind.”

A highlight at auction during October was the sale of a consignment of 13.2 micron wool from the McAtamneys in Central Otago for more than $80/kg clean. “There’s only a small pool of those ultrafine wool growers in New Zealand. They are very committed to their wool and it’s a specialist market which has really improved for them this season.” The Christchurch selling centre has one more fine wool offering to come for 2021 in mid-November and then a break until midFebruary for the next offering. Dave says Christchurch’s buying bench is strong and growing with the addition of a new buyer, Ryan Cosgrove who represents Carrfield’s subsidiary Fibre Products, at the early November sale. Another new buyer increasing its purchasing in Christchurch is Australian Merino Wool Exports. “When we compare our prices to those available across the Tasman, we’re easily matching or beating them for similar wools,” Dave says. “Our growers also like the transparency of the Christchurch wool selling centre. We livestream the entire auction in real time, so they can sit in their homes watching the sale on their computer and see their wool being sold.” Like any price discovery platform, Dave says it starts with people and grows in credibility with trust and transparency. “We’re really pleased with how well sales are going for our clients. We’ve only passed 3% of all wools offered this season to date,” he says. “Looking ahead, I can’t see too much will change. We’ve got a great provenance story to tell buyers and the New Zealand brand is very powerful with consumers around the world.”


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Merino Review 2021

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ONFARM • Weather bomb

Harry Pitts (13) saved the day with his mob of pet lambs which he used to lead a mob of skeptical hoggets down the road after the storm hit in the Awatere Valley in July this year.

Pet mob turn to Pied Piper mode ANNABELLE LATZ

I

T WAS FRIDAY JULY 16 WHEN Hayley Pitts of Mount Gladstone up the Awatere Valley in Marlborough was at the Howl of a Protest in Blenheim. She knew the weather was turning so as the afternoon rolled on, she decided to head home. Just as well, because if she’d waited much longer she might not have seen the farm for a few days. “The Awatere River was horrendous, you couldn’t get anywhere and even the little creeks were massive,” Hayley says. It started raining on Friday night and Awatere Valley Road was washed out before sunrise on Saturday. Weather warnings had allowed them the

48

Merino Review 2021

chance to move stock to higher ground, but they never quite expected what was delivered. “We were thinking it will never happen. But 140 millimetres fell in that first big rain, that was massive.” Waking up on Saturday, admittedly not getting much sleep as the rain fell hard on the roof, the road and river levels were the worst they’d ever seen, with many holes and slips and damaged culverts. About 20m of road had been washed away, and as soon as conditions allowed they dozed a track around the side of a hill. “We could get through, but it certainly wasn’t State Highway 1,” says her husband Jeremy. A mob of 1200 hoggets needed shifting from the flooded vineyards up the valley to

the home block. The 12km trek from where the damaged road allowed stock trucks to reach them taking about five hours, including navigating one big hole in the road, crossing the Hodder Bridge and going past diggers and trucks. Reluctance was obvious, so out came the mob of pet lambs with their son Harry (13), and the Merino hoggets led the way for the skeptical mob. “It was pretty good having the lead lambs, it was very cute too. They’ve certainly earned their bag of pellets,” says Hayley. The weather was still not on their side even at shearing time, so they borrowed the neighbours’ woolshed at Glenlee, which meant having to cross a second big bridge. Once again, Harry used his pets to make this possible. The rain damage may well have been increased by the dry summer and very dry autumn this year, leaving the Pitts family an extensive list of repair jobs. This included a few smashed floodgates that needed fixing or replacing, and plenty of track repair work. “But on the whole, we came out pretty good. It was school holidays so we put the kids to work, probably not the adventure they had planned,” says Jeremy. An added stress was accessing sheep they had grazing in a vineyard on the Wairau Bar on the north-eastern side of Blenheim, and were very grateful for the help they received. “Our staff and Wairau Bar locals were a huge help in the clean-up and rescue of the sheep in the flooded vineyard,” says Hayley. It was a similar but two-storm tale of damage for farmers Ross Bowmar and Jess Ensor who live at Redcliffs Station on the south bank of the Rakaia Gorge. On Friday May 28 the rain started to fall. The biggest deluge of 174mm fell between Saturday evening and Sunday evening, with a grand total of 264mm recorded at the house by Monday. It added up to the biggest flood on record. Out the back of the 1935ha farm, creeks were more like rivers. They knew bad weather was on its way, so had stock in position as best they could. But Redcliffs Bridge that runs through the middle of the property was completely buried by shingle, making it impossible to reach some stock and shift break fences, which Ross admits was very stressful. “We couldn’t feed them, we had to use choppers to fly motorbikes over,” he says, adding that the Merinos were in a state of shock, and struggled to eat any food for about 10 days despite it being put in front of them. Their condition was knocked back quite significantly and in October they were still a


“We were thinking it will never happen. But 140 millimetres fell in that first big rain, that was massive.”

bit lighter than they’d normally be. “As my father-in-law (Willy Ensor) said, it’s not the year to be criticising people for their stock condition.” Ross said this storm was just “one of those things that has never happened before” and a buried bridge was certainly never part of their farm management plan. It took a week or so to get the bridge open again, thanks to the work of a good local contractor and the district council. In mid July when the second storm hit, TB testing had just started and the bridge was buried again, only taking 12 hours of rain for the shingle to do its damage this time because conditions were still wet from May. It was another four days before this could be opened again, a major access point for all supplies to the farm. “Back in 1983 when it was built it was root raked for four to five metres of clearance. Now it’s back to one metre.” In the May storm, their hydropower system built in 1983 was also buried and destroyed when the pen stock pipe was knocked out of alignment and buried under six metres of shingle. They could see the rain on its way, so sealed the pipe at the top, but it was buried by material backing up from the bridge which acted like a dam. Before fixing it, they were in the process

of moving the hydro shed to a less flood-prone area, when they received another 156mm in the flood in July. “We had just dug everything out, then it all got buried again.” Ross says for that reason, the July flood was almost harder, even though it wasn’t as severe. “After the May flood, we carried on ourselves, but the July flood was harder to handle. Who would have thought it would happen again.” The new hydro pipes are Redcliffs Bridge in the Rakaia Gorge was extensively damaged in both storms polyethylene, and buried deeper this winter. than the original 2.4m concrete pipes. At the beginning of October it was almost ready to go, which was a relief, after living off a diesel generator since rebuild will come to an end, it may take us the first storm with a running cost of $100/ a year, but it is not forever…we’ve just got to day. chip away, that’s all we can do.” Repair work also included fixing turbines, They brought in extra labour, some thanks intake structures and investing in underground to local Facebook pages and job seekers power lines in places. relocating due to Covid-19. This helped Fixing fences and flood gates was also a significantly, as did the assistance from the massive job, as was clearing the creek that got local Federated Farmers, Rural Support Trust into the silage pit. and Flood Recovery group. Creating a resilient operation to future proof “Every farmer has a ‘to-do’ list, but then it for flood events is top of mind, spending a bit becomes extraordinarily big. It’s good to get more now to help down the track. it out on a bit of paper so it all becomes more “It’s not this never-ending list. I know the digestible.”

MERINO breeder directory STUD NAME

NAME

LOCATION

PHONE

STUD NAME

NAME

LOCATION

PHONE

Armidale Awapiri Balmoral Benmore Blairich Cleardale Earnscleugh Glenlee Glenmore Glentanner Grays Hills Hawksburn Isolation Kaiwara Lauder Little Valley Malvern Downs

Simon Paterson Eric and Sally Smith Sam Simpson Bill and Kate Sutherland Tom and Ron Small Ben Todhunter Duncan Campbell Rob Hamilton Will and Emily Murray Mark Ivey Mark and Sherie Urquhart Phillip McElroy Rob and Sally Peter Geoff Millar Grant and Robyn Calder Lindon and Jenni Sanders Robbie Gibson

Ranfurly Awatere Valley Tekapo Omarama Awatere Valley Rakaia Gorge Alexandra Awatere Valley Lake Tekapo Mt Cook Lake Tekapo Cromwell Ward Swannanoa Omakau Alexandra Tarras

03 444 9322 03 575 7990 021 336 806 03 438 9474 03 575 7257 03 302 8233 027 659 6713 03 575 7465 03 680 6752 03 426 9638 03 680 6640 03 445 0874 03 575 6866 03 312 6635 03 447 3377 03 448 6575 03 445 2839

Maryburn Matangi Matarae Middlehurst Mount Hay Moutere Muller Nine Mile Otematata Sandown Sawdon Somerton Park Stonehenge Strathclyde The Gums Upcot Wairua

Martin Murray John Sanders William and Emily Jones Willie Macdonald John Simpson Jopp Family Mike and Mary Satterthwaite Gordon Lucas Hugh Cameron Helen Heddel Robert Allan Isobel Somerton-Smythe Andrew Hore John McArthur Ian and Mark Stevenson Bill Stevenson Russell Smilie

Fairlie Alexandra Outram Wairau Valley Fairlie Alexandra Awatere Valley Tarras Otematata Darfield Lake Tekapo Swannanoa Ranfurly Clyde Rangiora Awatere Valley Hakataramea Valley

03 680 6612 03 448 7806 03 464 3855 03 575 7042 03 680 6897 03 447 3726 03 575 7044 03 445 2885 03 438 7863 03 312 0404 03 680 6574 03 342 8488 03 444 7066 03 448 8335 03 319 8587 03 575 7463 03 436 0287

Merino Review 2021

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SHOWS • Wanaka

RESULTS – WANAKA SHOW 2021

BENMORE DOUBLE

Ultra Fine 17.5 & Under Ram any age — Malvern Downs, 1, Matangi Station, 2; Ewe any age — Malvern Downs, 1, Matangi Station, 2, Champion Ultra Fine Ram — Matangi Station, 1, Champion Ultra Fine Ewe — Malvern Downs, 1. Superfine Merino Ram 20 months or over — Matangi Station, 1, Malvern Downs, 2, Ram under 20 months — Malvern Downs, 1, Stonehenge, 2, Malvern Downs, 3, Ram Lamb — Stonehenge, 1, Malvern Downs, 2, Stonehenge, 3; Ewe 20 months or over — Malvern Downs, 1, Ewe under 20 months — Malvern Downs, 1, Malvern Downs, 2, Matangi Station, 3, Ewe Lamb — Malvern Downs, 1; Champion Superfine Ram — Malvern Downs, 1, Champion Superfine Ewe — Malvern Downs, 1. Fine Merino Ram 20 months or over — Malvern Downs, 1, Armidale Stud, S1 2, Matangi Station, 3, Ram under 20 months — Stonehenge, 1, Armidale Stud, 2, Malvern Downs, 3; Ram Lamb — Armidale Stud, 1; Ewe 20 months or over — Armidale Stud, 1; Ewe under 20 months — Armidale Stud, 1, Malvern Downs, 2, Blairich Station, 3; Ewe Lamb — Armidale Stud, 1, Champion Fine Ram — Stonehenge, 1, Champion Fine Ewe — Armidale Stud, 1. Medium Merino Ram 20 months or over — Armidale Stud, 1, Ram under 20 months — Armidale Stud, 1, Armidale Stud, 2, Cattle Creek, 3; Ram Lamb — Armidale Stud, 1; Ewe 20 months or over — Armidale Stud, 1; Ewe, under 20 months — Armidale Stud, 1, Glenmore Station, 2, Blairich Station, 3; Ewe Lamb — Armidale Stud, 1; Champion Medium Ram — Armidale Stud, 1; Champion Medium Ewe — Armidale Stud, 1. Polled Merino Super Fine & Fine Ram, 20 months or over — Malvern Downs, 1, Matangi Station, 2; Ram, under 20 months — Maryburn, 1, Blairich Station, 2, Malvern Downs, 3; Ewe, any age —Armidale Stud, 1, Malvern Downs, 2; Ram Lamb — Malvern Downs, 1; Champion Polled Superfine/Fine Ram — Maryburn, 1, Champion Polled Superfine/Fine Ewe — Armidale Stud, 1. Polled Merino Medium Strong Ram under 20 months — Armidale Stud, 1, Malvern Downs, 2, Glenmore Station, 3; Ewe, any age — Armidale Stud, 2, Malvern Downs, 3; Ram lamb — Armidale Stud, 1, Malvern Downs, 2, Armidale Stud, 3; Champion Polled Medium/ Strong Ram — Armidale Stud, 1, Champion

SUCCESS FOR THE SUTHERLAND family in this year’s Otago Merino Association Clip of the Year competition reflects a long term determination to produce high quality wool and productive sheep. Brothers Bill and Andrew Sutherland run Benmore Station just north of Omarama and nearby Ahuriri Downs 20km further towards Twizel. Benmore’s entry won this year’s stud flock section and took out the overall trophy while the Ahuriri clip was judged best commercial flock entry, producing a double celebration for the Sutherlands. “That’s an enormous thrill for us. It was particularly pleasing to see the Ahuriri flock take out the best commercial class,” Bill says. The Sutherlands have classed their own wool clips for nearly 30 years, making the victory all the sweeter. Benmore Station is 5400ha and runs a total of 18,000 fine wool sheep, including studs. Ahuriri Downs/Clay Cliffs is 6800ha and has a 9000-strong commercial flock. Benmore’s stud offers Merino, Halfbred and Quarterbred options, and the Sutherlands sell about 550 rams each year, mostly to clients all over the South Island fine wool growing regions. A growth market in recent years is the North Island where sales of Benmorebred rams have been made as far north as Kaikohe. The Benmore stud flock has been muscle and fat scanned for the past decade. “We’re also seeing a huge advantage from lifting the muscle and fat covering inside our sheep. Lamb survival has noticeably improved for us and our clients.”

Polled Medium/ Strong Ewe — Glenmore Station, 1. Grand Champion Merino Ram: Maryburn. Grand Champion Merino Ewe: Armidale Stud. Supreme Champion Merino: Maryburn. Pairs Competition: Pairs for Central Otago — Malvern Downs, 1, Armidale Stud, 2, National Pairs — Malvern Downs, 1, Armidale Stud, 2. STUD FLEECE CLASSES Super Fine Merino Ewe 17 micron & finer — Nine Mile, 1, Nine Mile, 2, Malvern Downs, 3; Super Fine Merino Hogget 17 micron & finer — Balmoral Station, 1, Armidale Stud, 2, Maryburn, 3. Fine Merino Ram 17.1 micron to 19 micron — Balmoral Station, 1, Malvern Downs, 2, Armidale Stud, 3; Fine Merino Ewe 17.1 to 19 micron — Maryburn, 1, Maryburn, 2, Armidale Stud, 3; Fine Merino Hogget 17.1 to 19 micron — Glenmore Station, 1, Nine Mile, 2, Glenmore Station, 3. Medium Merino Ram 19.1 and stronger — Glenmore Station, 1, Glenmore Station, 2, Balmoral Station, 3; Medium Merino Ewe 19.1 and stronger — Armidale Stud, 1, Glenmore Station, 2, Glenmore Station, 3; Medium Merino Hogget 19.1 and stronger — Malvern Downs, 1, Glenmore Station, 2, Glenmore Station, 3. Champion Stud Merino Ram Fleece: Glenmore Station. Champion Stud Merino Ewe Fleece: Armidale Stud. Champion Stud Merino Hogget Fleece: Glenmore Station. Halfbred, Polwarth & Corriedale Ram: Matakanui Station, 1, Matakanui Station, 2, Matakanui Station, 3. Halfbred, Polwarth & Corriedale Ewe: Matakanui Station, 1, Ida Valley, 2, Matakanui Station, 3. Halfbred, Polwarth & Corriedale Hogget: Ida Valley, 1, Matakanui Station, 2, Matakanui Station, 3. Champion Stud Fleece (excluding Merino) — Ida Valley. FLEECE TROPHY WINNERS: C C Whittleston Memorial Trophy — Long Acre. Russell Brown Memorial Trophy — Lindis Peaks. John Smedley Trophy — Glenmore Station. Norman Pittaway Memorial Trophy — Ida Valley. C M Burdon Memorial Trophy — Cluden Station. R F Lucas Trophy — Cluden Station. Geoff Pittaway Memorial Trophy — Lindis Peaks. Sanders-Gibson Trophy — Lindis Peaks.

RESULTS – OTAGO MERINO ASSOCIATION NZWTA CHILD CANCER FLEECE COMPETITION Medium Micron (17.8 and Stronger) 3rd Ahuriri Downs Bill & Kate, Andrew & Deidre Sutherland. 2nd Merin Ridges, Bevan and Tiffany McKnight, Winner Quailburn Downs Trent Spittle. Fine Micron (17.1 - 17.7) 3rd Benmore, Bill & Kate, Andrew & Deidre Sutherland. 2nd Craighurst, Nick and Kim Richards. Winner Irishman Creek, John and Chris Rietveld. Super-Fine Micron (16.1 - 17) 3rd Ahuriri Downs, Bill & Kate, Andrew & Deidre Sutherland. 2nd Cluden, Lesley, Ben and Sam Purvis. Winner Black Forest, Ben and Caroline Innes. Ultra-Fine Micron (16.0 & Finer). 3rd Merivale Gerald and Mary Goodger. 2nd Moutere Hamish & Lucie, & Andrew Jopp Winner, Foulden Hill Anton, Liz and

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Merino Review 2021

Will Gibson. Overall Winner Quailburn Downs, Trent Spittle. OTAGO MERINO ASSOCIATION FINE WOOL PIX COMPETITION 2021 Peoples Choice Winner on Social Media Libby Jones, Longacre Station: “Ewes just had their winter fleeces off”. Finalists: Trent Gilchrist: Lake Ohau Station, Angus Fraser, Bog Roy Station: "From the Tops of the Lake Face". Samantha Harmer, Castle Ridge: "What're Ewe Looking At". Anna Munro: "Up and Over". Anna Munro, Lake Heron Station: "Fine Wether Crossing". Voting on the above five by everyone at the Merino Awards evening resulted in; 1st Trent Gilchrist. 2nd Angus Fraser. 3rd Samantha Harmer.

NZWTA CLIP OF THE YEAR 2021 Sectional Category - Up to 17.3 micron. 1st: Waikeri Downs, Earl and Bernadine Attfield. 2nd: Matarae, Will and Emily Jones. 3rd: Northburn, Bevan and Tiffany McKnight. Sectional Category – Over 17.3 micron 1st: Benmore, Andrew & Deidre, Bill & Kate Sutherland. 2nd: Armidale, Simon & Sarah Paterson. 3rd: Ahuriri Downs, Andrew & Deidre, Bill & Kate Sutherland. Stud Flock: Winner: Benmore, Andrew & Deidre, Bill & Kate Sutherland. Commercial Flock Winner: Ahuriri, Andrew & Deidre, Bill & Kate Sutherland. Overall Winner COTY 2021 Winner: Benmore, Andrew & Deidre, Bill & Kate Sutherland.


BL AIRICH M E R I N O & POLL MERINOS

127% lambing (10 year average) Heavy cutting, superior, white waterproof wools Conformation, Constitution, Prof itable

Merino Review 2021

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Merino Review 2021


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