Rural News 03 November 2020 by Rural News Group

AGRIBUSINESS

MACHINERY & PRODUCTS

NZ beef on show in Beijing.

All smiles tackling hill country.

PAGE 19

PAGE 38

NEWS Vets in short supply PAGE 12

TO ALL FARMERS, FOR ALL FARMERS NOVEMBER 3, 2020: ISSUE 713

www.ruralnews.co.nz

Red rag to a bull? PETER BURKE peterb@ruralnews.co.nz

WILL LABOUR alone be easier to deal with? That is the question lobby groups, including Federated Farmers, are pondering following Labour’s landslide victory at the election. Federated Farmers president Andrew Hoggard says, in terms of overall policy, he believes there will

be little difference to what occurred during the past three years. He points to the fact that two major pieces of legislation relating to healthy waterway and Zero Carbon are both creating challenges for farmers. “I guess it’s going to come in terms of the healthy waterways as to how that is implemented and what further changes are made,” Hoggard told Rural News. “Hopefully, we might see it mod-

ified to be a little bit more practical and a little less paint by numbers, from a national perspective, and allow for some regional flexibility catchment by catchment.” Hoggard says David Parker, who is responsible for the healthy waterways bill, is not on the Christmas card list of many farmers. He says it’s hard to say if Parker were replaced as Minister for Environment whether the legislation would change much.

“But if he was removed from the portfolio it could certainly change farmers’ perceptions.” Hoggard says having to deal with just one party will be easier for Feds. He says, in the past, it’s been noticeable that every small party had its own internal games and different angles on a subject and getting support was at times difficult and frustrating. “Around climate change, for example, NZ First gave us a nod and wink

that they would push forward an idea of ours. So, we took it up with Labour and Greens and they said yes – and so did National. But then NZ First said no because they wouldn’t have anything to do with National. It was very annoying.” A much talked about issue is whether farmers, many of whom traditionally support National, actually voted Labour to keep the Greens out of any coalition. Hoggard says he has yet to meet a long time National voter who claims to have done this, but he’s sure there is some truth in the story. “You can see the strategy behind that, given the Green’s plans for agriculture were a helluva lot more extreme than all the other parties had proposed.”

Tastes good Tucking into a fresh kiwifruit for lunch is this young boy from Rata Street primary school in the Hutt Valley. The fresh fruit was provided by Zespri, as part of its Young and Healthy Virtual Adventure programme, which is aimed at promoting exercise and healthy eating habits. Some 20,000 children in 760 primary and intermediate schools throughout NZ are participating in the adventure over the next month. Full coverage of the successful programme is covered in the Nov/Dec issue Hort News, which comes together with this week’s issue of Rural News.

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RURAL NEWS // NOVEMBER 3, 2020

NEWS 3 ISSUE 713

www.ruralnews.co.nz

NEWS �� 1-17 AGRIBUSINESS �� 19-20 MARKETS ��22-23 HOUND, EDNA �� 24 CONTACTS �� 24 OPINION ��24-27 MANAGEMENT �� 29-31 ANIMAL HEALTH ��32-33 MACHINERY AND PRODUCTS �� 34-38 RURAL TRADER �� 38-39

HEAD OFFICE Top Floor, 29 Northcroft Street, Takapuna, Auckland 0622 Phone: 09-307 0399 Fax: 09-307 0122 POSTAL ADDRESS PO Box 331100, Takapuna, Auckland 0740 Published by: Rural News Group Printed by: Inkwise NZ Ltd

Farmlands profits in a challenging year FARMLANDS CO-OPERATIVE has announced a $7 million net profit for the 2019/20 financial year. The rural supplies co-op says this comes on top of more than $91.1m in monthly rebates, discounts and loyalty paid out to its 72,000 shareholders. “The result has been built on turnover of $2.6 billion and revenue of $1.1 billion – numbers impacted considerably by both Covid-19 and challenging seasonal events,” chief executive Peter Reidie says. Reidie says Farmlands staff have tirelessly provided supplies and service to shareholders during “a challenging year” – including the lockdown period. He says creating a functioning e-commerce platform within four weeks to trade during Covid-19 Alert Levels 3 and 4 was a highlight. “The fact we were able to trade at all during Alert Levels 3 and 4 came down to the hard work and dedication of the Farmlands team. Reidie describes Farmland ‘Covid Click and Collect’ online store as a success story for the organisation and testament to the Farmlands Co-operative spirit. “Our shareholders needed us and we responded accordingly.” He added that in just one month, the Click and Collect store brought

Farmlands chief executive Peter Reidie says the drop in revenue in the final quarter was “sobering”.

in more than ten times more revenue than the previous e-commerce site had in an entire year. Meanwhile, Farmland chair Rob Hewett says completing the three-year,

$90m transformation programme was a key milestone in the financial year. “Our co-operative performed well in the first half of the year and despite being affected negatively by the global

pandemic in the second half of the year, we were pleased with the planning and rapid decision making of management – and the support from many of our business partners,” Hewett says. Covid-19’s impact was most keenly felt in April, with a drop in revenue of more than 30%. Reidie describes the drop in revenue in the final quarter as “sobering” and in spite of the core role farming plays in the economy. “Without the response we initiated including support of the wage subsidy, rent relief, staff remuneration sacrifice, supplier support and other austerity measures, Farmlands would have incurred a substantial loss.” Hewett says, as a result of both the impact of Covid-19 and co-op’s acceptance of the government wage subsidy, it would be “inappropriate for it to return a Bonus Rebate to members this year”. “While the board knows this is disappointing for shareholders, I am sure we all appreciate the unique nature of the climate we have traded in for the second half of our financial year, the heightened uncertainty this presents to the company and the need accordingly to preserve cash as much as possible until the outlook improves,” Hewett says.

CONTACTS Editorial: editor@ruralnews.co.nz Advertising material: davef@ruralnews.co.nz Rural News online: www.ruralnews.co.nz Subscriptions: subsrndn@ruralnews.co.nz ABC audited circulation 79,553 as at 31.03.2019

Who will be in and who will be out? PETER BURKE peterb@ruralnews.co.nz

SPECULATION IS rife as to just who Jacinda Ardern will appoint to her cabinet. Hoggard says it’s likely that Ardern will take the opportunity to do some succession planning and try and keep

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her team fresh. He believes the associate cabinet members will hold the key to the future. “Sorry to say it, but some of the old hands, they might be moving on,” he told Rural News. “Any organisation has got to keep itself fresh – that’s a reality. If you do see associates in those portfolios,

sometime in this term they may not be associates but instead the minister.” For farmers, the announcement of the Minister of Agriculture will be important. It’s highly unlikely that Damien O’Connor will be replaced – unless there is a major reshuffle in cabinet and he was to take on Trade.

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Hoggard says while there are not a lot of people in Labour with farming backgrounds that doesn’t worry him. He points to the late Jim Anderton, who didn’t have a farming background, but had a business background and ended up being a successful and much respected Minister of Agriculture.

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RURAL NEWS // NOVEMBER 3, 2020

4 NEWS

Wool’s worth nothing, how about sheep milk? SUDESH KISSUN sudeshk@ruralnews.co.nz

SHEEP MILK company Maui Milk plans to have 60 milking farms within five years. The company has also hinted at building its own sheep milk processing plant. Maui Milk – a joint venture between Chinese company Shanghai Bewell and the Waituhi Kuratau Trust – owns two sheep milking farms on the shores of Lake Taupo. It has added four independent suppliers from Waikato. However, it needs more milk to supply sheep milk powder to customers who manufacture infant formula. Last month, the company hosted open days for Waikato farmers who may be interested in converting to sheep milking. Maui Milk is offering farmers a payout of $17/ kgMS. Maui Milk chief executive Leah Davey told farmers that it was embarking on a cautious growth strategy. “We are aiming to have 60 farms milking in five years…we want to do more than that, but we want to be cautious in

Maui milk ❱❱ Maui Milk has over 5,000 dairy sheep spread across two farms on the western shores of Lake Taupo. ❱❱ A joint venture between Maui Food Group Ltd, a Shanghai-based marketing company, and the Waituhi Kuratau Trust. ❱❱ Home base for the Southern Cross breed, a hybrid incorporating the world’s three leading dairy sheep breeds

our growth at the start. “So, farmers who aren’t ready to convert now, we are interested in those looking to convert in subsequent years.” Davey says the international market is huge and growing, but all of the big players are looking for a point of difference. “A2 and the goat product have shown the way but now we have something that ticks every box for the demanding highend consumer. “In its natural form, sheep milk contains about 50% more nutrient than cow or goat milk. Like goat milk, it is easy to digest, but it has better flavour. It’s free-range and pasture fed,” Davey says. “All lambs are reared and many are reared on their mothers. Consum-

Maui Milk is offering farmers a payout of $17/kgMS for sheep milk.

ers love this concept, and it has a lot of appeal to farmers too.” Maui Milk supply manager Tom Woutersen says there are some very capable young farmers looking at sheep dairy as a possible route to farm ownership. “We also know there are a lot of farm owners nearing retirement age. Some want to retain an interest in the farm, but

recognise it’s time for someone else to take over the day to day management.” he says. “We’re happy to match those with the makings of a good team”. Answering questions from farmers at the open day, Maui Milk chairman Paul McGilvary said that the company is backed by a group of Chinese investors “who absolutely believe in sheep milk”.

He says there’s no secret about the make-up of Maui Milk: 60% owned by Super Organic Dairy Company and 40% by the Waituhi Kuratau Trust. Super Organic, made up of Chinese investors and NZ company Oravida, also owns 70% of Southern Cross Breeding Company, which breeds sheep for milking in NZ. The breeding company is 30% owned by Peter

Gatley and Jake Chardon. McGilvary says the board will, over time, look at processing options and having their own processing plant isn’t being ruled out. Maui Milk processes its sheep milk at the Waikato Innovation Park, which has two milk powder dryers. Cambridge dairy farmer Allan Browne says a few years ago they

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began to investigate dairy sheep milking. He now milks about 1,100 ewes. In 2018, the Brownes leased some Southern Cross Dairy rams from Maui Sheep Milk to set up their dairy sheep operation. They also signed to supply Maui Milk. Browne says he has received excellent support from the company to set up his sheep milking business.

RURAL NEWS // NOVEMBER 3, 2020

NEWS 5

New rules for live exports PETER BURKE peterb@ruralnews.co.nz

MPI IS toughening up the requirements for the export of live animals from New Zealand. This comes in the wake of the sinking of the Gulf Livestock 1 off the coast of Japan and the loss of 42 crew – including two New Zealanders. Following the sinking of the ship, the Ministry for Primary Industries (MPI) put an immediate ban on any further shipments and commissioned Mike Heron QC, supported by Rear Admiral Tony Parr, to report on the incident. MPI director-general Ray Smith says, based on the findings of the report, the ministry will introduce several additional requirements for the export of livestock until the incoming government can make decisions about a wider policy review of the trade. Smith says this will allow the 24,000 cows in pre-export quarantine to be exported, otherwise they would likely have to be slaughtered if interim measures weren’t put in place. Smith says immediate changes that will apply include a maritime inspection of livestock carrier ships entering

NZ, restricting stocking density on vessels to 90% of current limits to match new Australian standards and increasing requirements for voyage reporting, including daily veterinary reports. Live animal exporters will also have to increase minimum fodder requirements to ensure at least 20% of feed is available for unplanned delays during a voyage. “We want to ensure the animals are moved safely. The Heron review found NZ has robust checks and balances in place to ensure the welfare of livestock transported by sea, but MPI can strengthen parts of the Animal Welfare Export Certificate (AWEC) process,” Smith says. “We will do that because we’re committed to ensuring crew and animals on livestock export boats are safe.” MPI is also considering longer-term changes suggested by the reviewers, such as requiring more information in Animal Welfare Export Certificate (AWEC) applications and reviewing current rules, guidance and regulations. According to Smith, approval for AWECs will not be granted for livestock shipments unless all requirements have

MPI director-general Ray Smith says the ministry will introduce several additional requirements for the export of livestock until decisions about the wider policy are made.

been met. He says MPI is working closely with exporters to ensure the new requirements are well understood. Livestock exports will be able to continue until the end of November, by which time it is expected that government will have considered a much wider review on the long term future of live animal exports. “Advice will be provided soon to the incom-

ing government on the wider policy review, which started in 2019, and the independent reviewers’ report will help inform that work,” Smith says. “Included in the advice will be further consideration of lower stock density rates for shipments.” The Heron review describes the export of livestock is a “complex international undertaking” involving farmers,

exporters, vessel owners, trading partners and others. The review found that while the system is robust, there are changes that can be made now to boost the assurances MPI receives. Livestock vessels operate according to international rules and certification, but the review says additional New Zealand-based checks by Maritime NZ would provide extra safeguards for vessel safety.

REVIEW COMING MPI SAYS will provide advice to the new government once it is formed and then ministers can make decisions. The wider policy review took place before the tragic sinking of the Gulf Livestock 1. MPI says it consulted widely and received more than 3,500 submissions during the 9-week public consultation period. The submission of the review to the minister was delayed due to priorities related to the COVID-19 pandemic.

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RURAL NEWS // NOVEMBER 3, 2020

6 NEWS

Strong global demand pushes dairy prices up SUDESH KISSUN sudeshk@ruralnews.co.nz

A RESURGING Chinese economy is helping boost returns for New Zealand dairy farmers. Two banks – BNZ and Westpac – are following Fonterra and lifting their forecast milk price for the season.

The positive sentiment among economists is reflecting on the Global Dairy Trade (GDT) auction. Last week’s event recorded a slight increase in dairy prices, GDT’s third consecutive price rise. Westpac has lifted its forecast price by 50c to $7/kgMS, sitting above

Fonterra’s new mid-point of $6.80/kgMS ($6.30 to $7.30 range). Senior agri economist Nathan Penny says the forecast change is due to better than expected global dairy demand, especially from China. Penny says the Chinese economy has rebounded strongly post

Covid. “The Chinese economy is on track to post modest growth over 2020, the only major global economy likely to do so.” BNZ has lifted its forecast payout by 30c to $6.80/kgMS. Senior economist Doug Steel attributes

The resurgent Chinese economy is helping boost returns for NZ dairy farmers.

the recent GDT gains to improving demand from China. “This has coincided with macroeconomic indicators suggesting that the Chinese consumer is starting to follow the country’s industrial recovery that has been evident for months,” he says. “This is a good macro backdrop for the demand pickup to be sustained. At the same time, Chinese purchasing power has been improving with an appreciating Chinese yen.” Apart from China, most countries are still dealing with Covid-19. Earlier this year there were fears of a price slump as the global recession, triggered by Covid, weighed on global dairy demand. But Penny says China and some other Asian dairy markets are faring better than expected. “More broadly, New Zealand agricultural

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exports, including dairy, have proved more resilient than we expected earlier in the year. In this vein, we now expect global dairy prices to hold at or around current levels over the remainder of the season. “This updated view contrasts with our previous view that prices would weaken as the global recession weighed on global dairy demand. “The strength in demand has seen prices firm over three consecutive auctions. Importantly, this sets up the milk price well for the season as this price strength has coincided with the peak in spring production and similarly high auction volumes.” ASB, which is sticking to its $6.75 forecast, also notes that downside risks to the forecast have receded. Economist Nathaniel Keall says after three decent GDT auctions, there is now an upside

risk. Rabobank, which will update its milk forecast payout in December, is hinting of a rise. RaboResearch senior dairy analyst Emma Higgins notes that Chinese buyers stepped back into the market more actively last GDT event following more quiet activity in the previous auction earlier this month, which coincided with Golden Week celebrations. “This increased activity was reflected in the steady powder results, with Chinese demand noticeably higher for WMP compared to last month and also compared to this time last year,” she says. “We forecast on a quarterly basis and we are set to revise our current $6.35/kgMS milk price in early December. If dairy prices remain resilient, ceteris paribus, we will be lifting our forecast.” @rural_news facebook.com/ruralnews

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RURAL NEWS // NOVEMBER 3, 2020

NEWS 7

Not the time for militancy SUDESH KISSUN sudeshk@ruralnews.co.nz

DAIRYNZ CHAIRMAN Jim van der Poel says some farmers would prefer a more militant approach in tackling contentious issues affecting the sector. However, the industrygood body prefers building relationships with key government officials and working together, he says. Van der Poel told Rural News that there was a time and place for a tougher approach. “We should never be scared of that in my view…that’s always an option, but once you do that you often burn relationships,” he says. “You have to be confident that the relationships are not working and not likely to be working if you go down that track

LAST TERM DAIRYNZ CHAIRMAN Jim van der Poel has confirmed that this will be his last term on the industry-good organisation’s board. He says it’s time “for the next generation to come up”. Van der Poel, re-elected for another three years term last month, says with so much going on around sustainability, he felt this wasn’t the right time to step down from the board. “I felt I should stay for one more term to bed some of that down,” he says.

because there is likely no coming back from that. “I’m not saying you shouldn’t consider that, it should always be an option, (but) our preference is to use the other approach.” Dairy farmers are unhappy with some aspects of freshwater reforms and winter grazing rules introduced by the Labour-led Government last term.

Van der Poel agrees that there is “reasonable amount of nervousness” among farmers. “A few farmers feel a bit stressed, a bit under pressure. Some of that’s financial, but a reasonable amount is because they don’t know how these government regulations will affect their business and whether their business will still be viable going forward.”

DairyNZ chair Jim van de Poel.

He notes that the dairy industry has evolved over the decades. The looming water reforms and environment rules are the next stage in the revolution. “It’s about how we incorporate those things

into our farming businesses and make them normal, most of the things we have incorporated over the years are now normal practices.” Van der Poel says for DairyNZ it’s about engaging effectively with farm-

ers and bringing them along on the journey. While the make-up of the new government was still being worked on last week, van der Poel believes it will be easier to work with the new government “because we

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have got relationships and it was a standing start last time”. “They won’t agree with everything we say and vice versa, but if we have a relationship and can have an open and frank discussion. That’s the objective.” By working with the government, DairyNZ got some changes, like rather than farms going through consents, these can be done through farm environment plans. Work has also been progressed on actions specific to catchments and farms and how regional governments interpret the new laws. Van der Poel, who was re-elected as a board member for another three year term, says DairyNZ will work whoever chosen as ministers by the Prime Minister.

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RURAL NEWS // NOVEMBER 3, 2020

NEWS 9

Low methane sheep a reality NEW ZEALAND farmers are the first in the world with the ability to breed low methane-emitting sheep. A breeding value for methane emissions was launched in November 2019. It was the outcome of a 10-year breeding programme funded by the Pastoral Greenhouse Gas Research Consortium (PGGRC) and the New Zealand Agricultural Greenhouse Gas Research Centre. AgResearch scientist Dr Suzanne Rowe has been leading the research programme and says for the past ten years, they have been running two closed flocks side-by-side, a low methane emitting flock and a high methane emitting flock. Each flock consisted for 100 composite ewes (identified as either low

NZ farmers are the first in the world with the ability to breed low methane-emitting sheep. CREDIT: KIEREN SCOTT

or high emitting through the Central Progeny Test programme) and the management of each flock has been identical. Rowe says on average, they have identified an 11% per unit of feed

eaten difference in methane emissions between the two flocks, but most importantly, it appears there is a no difference in the health, productivity or profitability between low or high emitting

sheep. “We are seeing more lean growth, carcass yield and wool production in the low methane sheep without any negative trade-offs.” This breeding pro-

gramme, which confirmed that methane emissions were heritable, allowed for the establishment of a breeding value for the trait which was incorporated onto Sheep Improvement Limited database (now nProve) last year. Mark Aspin, general manager PGGRC, is encouraging stud breeders to take the opportunity to have their rams measured and to start making use of the breeding value. He says while PGGRC has been pleased with the initial momentum with breeders, it wants to encourage as wider use of the methane selection service as possible and further build on existing knowledge of the correlations and impact with other productivity traits accumulated.

INVESTMENT IN THE FUTURE SOUTHLAND RAM breeders Leon and Wendy Black were amongst the first commercial stud breeders to invest in measuring methane emissions and generating methane emitting EBVs in their Blackdale stud rams. It was a significant investment. Measuring 84 rams, which represented nine of their main sire groups, cost them $7,500 for the two tests – without labour. A further $7,500 was paid by PGGRC as part of its breeder incentive scheme, making the total cost $15,000. With no demand for this trait from their commercial clients, it is money the Blacks will not recoup – yet. However, Leon Black says, as a ram breeder, he’s breeding now for his clients’ needs five years’ down the track. While he concedes as yet there are no economic incentives or market signals for breeders or commercial farmers to breed low methane sheep, he believes it will only be a matter of time. As a former director of both B+LNZ and the PGGRC, Black has had some insight into the development of the methane reduction technologies. He believes that for the sheep and beef sector, genetics are the most effective way of meeting the sector’s emission reduction targets. “The most cost-effective way for the sector to reduce its emissions is to learn that way and breed animals that produce 10% less methane,” he adds.

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RURAL NEWS // NOVEMBER 3, 2020

10 NEWS

Covid heralds new food order SUDESH KISSUN sudeshk@ruralnews.co.nz

FONTERRA IS revamping its food service strategy to match new trends triggered by Covid. The co-operative is turning to innovation and fostering closer relationships with large-scale

industrial kitchen operators to maintain its foothold in the food service sector. Fonterra says 80% of the world’s food service businesses were forced to shut down overnight and most are still in and out of lockdowns. Global director food-

service Paul Harvey says those who survived are the ones designed for delivery and takeout. He says, in the US alone, 700,000 restaurants were forced to close. Starbucks reported a 46% slump in second quarter earnings and McDonalds temporarily

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closed 25% of its stores. Covid also paralysed key tourism markets like Sri Lanka, Thailand and Vietnam – key foodservice markets for Fonterra. Harvey says there are some signs of recovery; Fonterra’s China food service is back up. “Covid has provided significant shock to the food service industry but we are starting to see symbols of hope,” he says. Fonterra chief executive officer Asia Pacific Judith Swales says despite the global pandemic, the co-op’s food service busi-

ness is doing well. “It’s not all gloom and doom. Food service remains a hugely successful business for us,” she says. For the 2019-20 financial year, Fonterra’s food service earnings before tax was 14%, an increase of $25m. But Swales says the co-operative will need to change its food service strategy to meet “some interesting trends”. She says trends accelerated through Covid include: how food is prepared in stores, how customers are starting to engage with their suppli-

ers and how consumers are purchasing food. Swales says customers are simplifying menus and staff numbers are being reduced in kitchens. She says many restaurants are shedding staff to manage costs and outsourcing food preparation to industrial kitchens. “The good news for us is that we are well connected to these industrial scale kitchens.” Swales says Fonterra must also ensure that its food service products are fit for delivery and takeouts.

For example, its mozzarella innovation must ensure that pizzas are piping hot and cheese still “stretchy” when the deliveries arrive home. “When you go to a restaurant you’ve got about 30 seconds between the kitchen and the table. When the pizzas are going home, it might be half an hour.” Swales says for Fonterra’s food service business it’s about growing market share by embracing change, thinking differently and putting “ourselves in our customers’ shoes”.

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RURAL NEWS // NOVEMBER 3, 2020

NEWS 11

South East Asian markets beckon dairy exporters SUDESH KISSUN sudeshk@ruralnews.co.nz

MOVE OVER China, here come Southeast Asian markets. A new report says dairy exports into the Southeast Asian markets are set to surge over the next decade, creating future opportunities for New Zealand milk processors. The report by Rabobank, Dairy Export Boom Beckons in ASEAN-6 – With a Push or Pull, talks of a growing milk deficit in the region. The combined annual milk deficit of the ASEAN-6 – Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam – is expected to grow to 19 billion litres in 2030, up from an estimated 12.9 billion litres in 2020. RaboResearch senior dairy analyst Michael Harvey said a growing milk deficit in Southeast Asia was likely to be a major pull factor for dairy exporters looking for strategic dairy export growth. “The large populations, combined with increasing urbanisation, a growing middle class with purchasing power and continued development of integrated supply chains will all support dairy consumption growth across the region,” he said.

“Per capita dairy consumption rates in the ASEAN-6 are also currently low in comparison to other advanced Asian economies providing significant headroom for growth.” Growing political tensions between China and the western world will also come into play. The report says dairy companies will be ‘pushed’ towards dairy export opportunities into ASEAN-6 countries by rising geopolitical tensions and receding demand tailwinds in China. “Coming into 2020, China’s trade relations with key trading partners were already on shaky ground – particularly so for Australia and the US. And while dairy trade has largely been immune so far, there has been a notable deterioration in trade relations, which has the potential to reverberate far and wide,” Harvey said. Slowing Chinese dairy demand is a further factor which will prompt dairy exporters to look at markets outside China, with this expected to ease over the next decade as the rate of growth in per capita income slows, he notes. Harvey said these factors would likely compel dairy exporters to reassess their export growth

strategies and consider increased investment in the ASEAN-6 region. “This is particularly relevant for New Zealand dairy companies who are more trade-exposed versus their peers and,

consequently, have the highest level of market concentration risk,” he said. “With over 35% of New Zealand dairy trade bound for China and less than 20% heading to

Southeast Asia, now is a good time for New Zealand dairy companies to evaluate their portfolios to determine if they are overweight in China and/ or underweight in Southeast Asia.”

RaboResearch senior dairy analyst Michael Harvey.

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RURAL NEWS // NOVEMBER 3, 2020

12 NEWS

Vets in short supply PETER BURKE peterb@ruralnews.co.nz

JULIE SOUTH, whose company VetStaff specialises in recruiting veterinarians, says there is a shortage of vets in New Zealand and that this has been compounded by Covid-19. South told Rural News that even before Covid there was a shortfall in the number of vets in NZ. However, she says the closing of the border to experienced overseas candidates has made things worse and prospective candidates can’t get visas. According to South, most of the vets that she recruits come from Ireland, the UK and South Africa. But she says

others have come from places such as South America, Indonesia, Philippines, Australia and Europe. “Historically, most of the vets who come to NZ do it as part of their OE, but this isn’t happening now,” she says. “Now it appears many want to come to NZ because of the way we’ve handled the pandemic and because we’re a politically safe country to live in.” South says all vets from overseas have to be registered with the NZ Veterinary Council. The council only recognises degrees from certain overseas universities – and only those graduates are able to obtain a NZ annual practicing cer-

tificate (APC). South says those with degrees from non-recognised institutions have to undergo further training and study in NZ and pass exams before they are allowed to practice as licensed veterinarians in NZ. Another aspect which compounds the shortage of veterinarians in NZ is the challenges that some have working with large farm animals. “Production animals are big animals and moving them around so you can treat them is physically very hard work. In addition, using some of the equipment (e.g. an ultrasound scanning device) to treat large animals, takes its toll through wear and tear on

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the wrist and shoulders,” she explains. “I know that people who are physically strong, but slender, find this very hard work and often suffer physically. Then there are those who have been injured by a horse, bull or cow, and need to get away from working with production animals.” South says it is not simple for vets who have worked with large ani-

mals to suddenly move into a practice where they treat companion animals like cats and dogs. “Because you know all about cows doesn’t mean you know everything you need to know about cats,” she says. “When they change ‘codes’ they need to demonstrate competency in the new code to the Vet Council before they can work as a licensed veterinarian

in the new code without supervision.,” South says vets who transfer from one type of practice to the other have to demonstrate to the Vet Council their competency which all takes time and further compounds the veterinary skill shortage. Meanwhile, Gary Orr MPI’s director of compliance agrees there’s a shortage of vets and says the ministry is working

very hard to get these roles filled. He says one of the things that will help is the news that government is to give a class exemption for some critical primary sector roles – including vets. “At MPI, we have also got a voluntary bonding scheme for veterinarians where we try and attract and retain vets in rural practices to focus on production animals,” he told Rural News. “This year, we are funding 30 vets and last year 32. It seems that scheme is working very well and is something we will continue to support.” Orr says vets are critical people in the primary sector and he likens them to the canary in a coalmine, in that they are often the first people to spot any trouble. He says vets are more than just a person who delivers medical aid or attention to animals. “They are also confidants, as well, and play such an essential role and in the primary sector.” @rural_news facebook.com/ruralnews

BOOST FOR VET GRADS THIRTY GRADUATE vets will receive a financial boost from the Ministry for Primary Industries (MPI) Voluntary Bonding Scheme for Veterinarians. Steve Penno, director investment programmes at MPI, says the scheme aims to help ease the shortage of veterinarians working with production animals in the regions.

“Since it began 11 years ago, our Voluntary Bonding Scheme for Veterinarians has made a huge difference in attracting graduate vets to rural areas that are traditionally challenging to staff,” Penno says. “This year, we’ve added a new provision, enabling graduates to work part-time in an eligible practice after taking parental leave.”

Successful recipients this year will receive funding of $55,000 over five years – a total of $1.65 million. “The graduate vets will be working with production animals, such as cows, sheep, and working dogs, which are essential in our primary industries,” Penno adds. @rural_news facebook.com/ruralnews

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RURAL NEWS // NOVEMBER 3, 2020

14 NEWS

Massey’s top ag students off to work PETER BURKE peterb@ruralnews.co.nz

TWO OF Massey University’s top agricultural students for 2020 are off to top jobs in the sector – one with Fonterra and

the other with Farmax. William Robertson, who comes from a dairy farm in the small Waikato township of Ohaupo, was named the university’s top agricultural student at its annual awards

dinner for the top achievers in agriculture. The function was appropriately held in the Sir Geoffrey Peren Auditorium, named after the man who developed the Perendale sheep, and was attended

by about 150 students, lecturers and guests – including sponsors. Robertson who has just completed a Bachelor of Agri Commerce, majoring in international agribusiness, was pre-

s e m i t e Som

Massey University’s top agricultural student for 2020 William Robertson (L) was presented with his award by Richard Greaves, area manager of Farm Source Fonterra for the Central Districts.

sented with his award by Richard Greaves, area

manager of Farm Source Fonterra, for the Central Districts. Robertson says he’s always been passionate about the dairy industry and that it has always been part of his life. He’ll be able to is continue this passion as he’s a got a placement on Fonterra’s business graduate programme and will be off to Auckland. “Fonterra is a going to be interesting. I am going into the big city environment from Palmerston North and it’s going to be exciting to take that next step and see where it goes,” he told Rural News. “Dairy is a very interesting industry, which is full of good people and where everyone is down to earth.” Robertson says dairy farmers work hard every day and do a good job

dealing with the challenges they face on a daily basis. However, he thinks it’s unfortunate that dairy farmers continue to get maligned by some people. “You have got to work within the dairy industry to understand and appreciate it. The hours are long the environment can be stressful,” Robertson says. “The last thing that people who work in the industry want to do is to hurt the sector which they are really passionate about. They are in there for the best and they really want to get involved and help it succeed.” As well as winning the prize for the top agricultural student of the year, Robertson also picked up the Sally Hobson Award – for service to the Young Farmers Club.

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NICE SHOT, ZANE! THE OTHER big winner on the night was Zane Williams, who won the academic prize for being the best thirdyear ag student. He also took out the Rural News-sponsored prize for the best agricultural photograph. Williams comes from Whangarei, but he has strong links to the dairy industry with his grandparents and cousins owning dairy farms around Dargaville. He will be joining Farmax soon in a technical support role, which involves assisting farm consultants and farmers with their software and also running workshops. “My degree is in agri-commerce. I certainly like farming and it’s in the back of my mind that maybe one day down the track I will end up there,” Williams told Rural News. He also does a bit of photography in his spare time. His winning picture was taken on the family farm in Dargaville one evening.

RURAL NEWS // NOVEMBER 3, 2020

NEWS 15

Slim pickings for apples major labour source – in the country.” Apple growers don’t currently have sufficient labour to manage early season tasks like thinning. This means the industry will be more reliant on chemical thinning – a process used to stress the tree so that it drops a portion of the fruit it is bearing. Kilsby points out that this approach means the fruit that are thinned are not able to be selected for quality, resulting in a much wider range of fruit sizes and quality (colour etc) when it comes to harvest. Without hand-thinning, it is therefore likely that the overall value of

SUDESH KISSUN sudeshk@ruralnews.co.nz

The horticultural sector is worried about finding sufficient labour to pick and pack the new season’s harvest.

ers back into the country. Many of these workers come from nations in the Pacific that are free of Covid-19 and therefore there is no health risk to letting these workers into the country. NZ Apples and Pear business development manager Gary Jones says his sector is three or four thousand workers short. He said growers believed they should be able to bring in workers from Covid-free countries. Jones said plans were in place to ensure workers who come for the seasonal work could get back home again.

Kilsby believes there’s still time to get workers into the country. “If the wheels are put in motion now, workers could be here in time for the main harvest, which kicks off in late February, but they won’t be in the country early enough to assist with early-season orchard management tasks,” she told Rural News. “Even if RSE worker numbers are allowed into New Zealand in similar numbers to last season, the industry will still be severely short of workers given there will be very few backpackers – who have traditionally been a

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LABOUR SUPPLY remains the top concern as the apple harvesting season approaches, says ANZ agriculture economist Susan Kilsby. She says the horticultural sector is extremely worried about finding sufficient labour to pick and pack the new season’s harvest. “The ability to access critical workers through the Recognised Seasonal Employer (RSE) scheme remains very uncertain and there will be significantly fewer backpackers looking for work this summer,” she says. “There is little doubt that more New Zealanders will be employed, but it is extremely unlikely there will be sufficient locals available to fulfil these physically demanding roles.” Therefore there is a very high risk that some fruit – particularly summer fruit – won’t be able to be picked. Most growers are fully focused on the season ahead as the appleexporting season draws to a close. Kilsby says the main concern is finding sufficient labour for the busy harvest period. The industry has been lobbying the Government to allow RSE work-

next season’s crop will be negatively impacted. “If there are not sufficient pickers at harvest, then fewer picks of each tree will occur,” she says. “One reason why the standard of New Zealand fruit is generally very high is because each tree is picked three or four times, with only the ripest fruit being harvested each time. “If there is not sufficient labour available, orchards may only be picked once, meaning not all apples will be picked at the optimum time, or a portion of the fruit will simply be left on the trees.”

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RURAL NEWS // NOVEMBER 3, 2020

16 NEWS

Meat’s outlook reddish DAVID ANDERSON

NEW ZEALAND beef and sheep farmers are facing more than 25% less income in the season ahead. That’s the conclusion of Beef+Lamb NZ (BLNZ) in its recently released new season outlook for 2020-21. It is forecasting lamb export receipts to decline by almost 15% and sheepmeat co-products to decline by around 8% compared to the 2019-20 season. Beef and veal export revenue is forecast to decline by 9% on 2019-20. “The uncertainty in the export market will be reflected in farm-gate prices and subsequent farm profitability,” says BLNZ’s chief economist Andrew Burtt. The outlook predicts that the average farm profit before tax on sheep and beef farms in New Zealand will fall 26% to an average $115,100 this season. BLNZ says the disruption caused by Covid-19 is expected to reach into next year with global economies, consumer demand and trading channels all impacted. “Increasing competitiveness in key beef export markets also has the potential to alter the trading environment,” the report adds. “Despite this, there are solid underlying market fundamentals that will continue to support demand for New Zealand sheepmeat and beef exports.” BLNZ believes China’s demand for meat protein will continue to be fuelled by pork shortages that have resulted from African Swine Fever (ASF). “There is growing demand for highquality, nutritionally rich proteins,” the report says. “A shifting consumer preference towards food safety will also support demand for New Zealand sheepmeat and beef.” However, BLNZ concedes that this challenging environment is expected

Beef+Lamb NZ is predicting a 26% fall in the average farm profit on sheep and beef farms in the coming year.

to result in a decline in both sheepmeat and beef export receipts in 202021. “Average export values are forecast at similar levels, or slightly above, fiveyear averages,” it says. “The trading environment will also face ongoing uncertainty around key trade negotiations. Brexit outcomes and the deteriorating relationship between the US and China will have an influence on market dynamics in the new season.” BLNZ says, on farm, the uncertainty in the export market will be reflected in lower farm-gate prices and subsequent farm profitability. “The drought of 2020 will have a continuing adverse impact on lamb and beef production in the new

season,” it adds. “Wool returns are forecast to remain depressed, with shearing expenses still on the rise.” Overall, BLNZ is picking gross farm revenue to decline for the year ahead. It blames market disruption as a result of Covid-19 as the predominant driver of the decline in sheepmeat export revenue. “The decline in food service sector demand has adversely impacted export sales for New Zealand’s high-value frozen lamb. This is particularly evident in the US and EU.” It adds that weaker global economic conditions have also resulted in lower consumer spending, and greater price sensitivity. “The outcome of Brexit negotiations will influence the sheepmeat

1 2 0 2 R A D N E E D N A CA L

trading environment in 2020-21,” the report says. Meanwhile, BLNZ believes demand for sheepmeat will be helped by tighter global supplies, as production from both New Zealand and Australia is expected to be down. “Continued demand from China for meat protein as a result of ASFinduced pork shortages will also be a positive driver of demand in 2020-21.” On the beef front, things are a little more positive, with BLNZ expecting global beef trade in the 2020-21 season to grow increasingly competitive. “This, combined with weaker consumer demand as a result of Covid-19 and trade tension between New Zealand’s leading export markets China and the US is forecast to weigh on

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beef demand in the outlook period,” it says. “Declining food service demand has also impacted beef demand. However, a higher proportion of New Zealand beef exports can be transferred into the retail sector.” Much of New Zealand’s beef is an ingredient used in supply chains that can service both food service and retail. “Ground beef sales have been a strong performer in the post-Covid world.” BLNZ also suggests that – again – ASF and growing demand for quality proteins from the affluent Asian consumers will remain key drivers of demand for NZ beef.

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RURAL NEWS // NOVEMBER 3, 2020

NEWS 17

Sticky high aimed at $ billion export market MARK DANIEL markd@ruralnews.co.nz

IN WHAT is described as a first for the country, Taranaki-based Naki New Zealand has developed a mānuka honey and cannabidiol (CBD) blended nutraceutical aimed at the billion-dollar export market for CBD edibles. Cannabidiol is a substance found in cannabis that has potential therapeutic value with little-to-no psychoactive properties. Proponents claim CBDs can assist with alleviating a wide range of conditions – including anxiety, pain, insomnia and inflammation. The global market for CBD-infused edibles is set to grow by 25% annually over the next seven years and is estimated to be worth over $8b in Europe alone. Naki New Zealand will launch a new single-serve mānuka honey product blended with a CBD extract. The company claims to have existing interest for the product in six of their key US and European markets. Naki NZ global market manager Derek BurchellBurger says there are distinct differences in New Zealand’s mānuka honey export markets. “For the Chinese, mānuka honey is among the most expensive and

carries a premium, mainly for the associated social status,” he says. “The European market is noticeably different, with the product is more likely to be sold through a naturopathic practitioner channel.” Burchell-Burger claims European consumers are more educated about the medicinal qualities of mānuka honey and recognises how its sugars enter directly into the bloodstream. “Leading to questions about antibacterial methylglyoxal levels, anti-viral, immuno-potentiating abilities and, of course, the UMF grade.” Meanwhile, he says the Asian market model centres around established distribution networks, which push the mānuka message – with local celebrities and influencers helping to endorse the product. “By contrast, in Europe and the US, the selling pathway is more hands-on at a retail level, with one-on-one conversations with pharmacies, supermarkets and wellness outlets.” The new Naki Honey Mānuka CBD blend will be available as a singleserve, snap pack product (familiar for the delivery of sauces and ketchups) and at $5.50 - $6.00 – a similar cost to a takeaway coffee.

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AGRIBUSINESS 19

NZ beef on show in Beijing PETER BURKE peterb@ruralnews.co.nz

NEW ZEALAND’S grass-fed beef drew large crowds at 13 of Beijing’s ultra-high-end retail stores – 7 Fresh. According to Beef+Lamb NZ, in the first few days of a Taste Pure Nature retail campaign in Beijing, crowds of people visited the high-tech 7 Fresh stores to experience NZ’s beef origin story through curated in-store experiences. The campaign by B+LNZ and ANZCO Foods, working with ANZCO’s Chinese distributer Beijing Zhou Chen, focused on raising awareness and creating preference for New Zealand grass-fed beef in China. The in-store experiences at these high-end retail stores are a natu-

B+LNZ claims its Taste Pure Nature campaign continues to build momentum in both China and the US.

ral place to raise the profile of New Zealand beef, according to Rick Walker, ANZCO Foods’ general manager sales and marketing.

“While it’s early days, our monitoring shows sales volumes have increased and we are pleased with the results so far,” he says.

“The collaboration with B+LNZ and Taste Pure Nature is a positive way to start building long term brand awareness and all indications are

that there is good future potential for ANZCO Foods and New Zealand beef in China.” Nick Beeby, B+LNZ’s general manager market

development, says on top of the in-store experiences, the campaign takes a multi-channel approach through enlisting Chinese social media influencers, and elevator and social media advertising. It’s great to work with ANZCO Foods on this integrated campaign that starts telling the New Zealand beef story online, and in the elevators of high-end apartments in Beijing, right through to the in-store experiences and tasting the product,” he says. As part of the campaign on popular Chinese social media channel ‘Weibo’, influencer HuHu-Sheng-Wei-Er (Tiger) talked to his followers about New Zealand grassfed beef in a video post, which has been viewed more than 284,000 times. Beeby says their social

listening in China shows people are increasingly talking about fresh, tasty, lean and grass-fed beef. “All qualities associated with New Zealand beef, so this campaign is joining the dots to let them know about our amazing product.” Beeby says the campaign is also running during Golden Week, celebrating the founding of the People’s Republic of China, where the Chinese Government encourages domestic tourism. This year, the midAutumn Festival landed within the Golden Week, putting an extra spotlight on family gatherings and food. He says Taste Pure Nature’s momentum continues to build in both China and the US with more meat companies participating.

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20 AGRIBUSINESS

Dairy sector loses two innovators PETER BURKE peterb@ruralnews.co.nz

TWO LEADING innovative figures in the dairy industry are departing for greener pastures. Peter Cullinane, founder of Lewis Road Creamery, has sold the last of his shareholding in the company to the country’s biggest farm investment company, Southern Pastures. Meanwhile, while the Richard Wyeth, founding chief executive of Miraka, the Maori owned dairy company near Taupo, is also leaving. Wyeth has yet to disclose where he’ll be working next and all Cullinane would say is that he has gone fishing. Taupo and the lakes around Queenstown will be his home for the next few weeks. Both men have made huge contributions to the dairy industry over the past decade. Wellington born Cullinane had a highly successful career in the advertising industry starting off with MacKay King in Wellington and then heading overseas, where he eventually became the chief operating officer for Saatchi and Saatchi worldwide. When he returned to NZ, Cullinane turned his attention to the dairy industry and created the Lewis Road Creamery brand. He started

Miraka’s outgoing chief executive Richard Wyeth has not said where he is going yet.

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Lewis Road founder Peter Cullinane will be able to do more fishing now he has sold out of the company.

off developing a unique and high quality brand of butter. The butter was highly successful and later it was exported to the United States where it competed with the well-established Irish brand, Kerrygold. But it was Lewis Road’s flavoured milk that took NZ by storm. It was so popular that at one stage supermar-

kets were forced to ration how many bottles an individual consumer could purchase at one time. Cullinane developed organic milk with Landcorp and then an ice cream also appeared. The former adman, turned dairyman, and now fisherman had little to say about the sale of his business to Southern Pastures.

“To see the brand mature safely in the hands of investors – who are farmers of such integrity and quality – is a fantastic conclusion,” he says. What will Peter Cullinane come up with next? He’s only in his mid-sixties and don’t expect the ‘gone fishin’ sign to be a permanent fixture on his office door.

RICHARD WYETH joined Miraka in 2009 when it was just a plan with a building site out west from Taupo. He had the task of helping to raise the money for the venture and overseeing the construction of the plant. Wyeth says it’s been a pretty phenomenal journey over the last 11 years. “The highlight has been getting the plant up and running on time and under budget and then delivering a profit very early on,” he told Rural News. “That was hugely satisfying and pretty amazing. “There were plenty of people who didn’t want to see it work, so to be able to deliver it and get the business established was very satisfying.” Wyeth had no Maori background or experience working with iwi before joining Miraka and says his time with the company has been fascinating. “I have really enjoyed it here. I think coming from a big family helped in some ways because I was used to knowing my second and third cousins quite well. Being involved in a Maori business is very much understanding how big families operate, so I enjoyed the challenge.”

Under Wyeth’s leadership as CEO, Miraka has shone as beacon of excellence in an industry that has often been under fire. Miraka introduced a scheme called Te Ara Miraka, which incentivises its farmer shareholders to perform to the highest standards in terms of milk quality and the way they produce their milk – with a strong emphasis on sustainability. Wyeth says Te Ara Miraka, and other initiatives introduced by the company, have helped shift dairy farming to “where it needs to go”. He concedes that it is possibly easier for a small company like Miraka to do this. Wyeth says he wasn’t actively looking for a new role, but when he was approached for the new position he recognised that it was probably a good opportunity to move on. Chairman of Miraka, Kingi Smiler, is full of praise for Wyeth, saying finding someone with his skills and approach to the company’s values-based culture will be a hard task. He says Wyeth’s leadership has enabled Miraka to grow from a small local company to become a strong competitor internationally in the dairy industry.

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global agribusiness research analysts sharing market outlooks

22 MARKETS & TRENDS

Rabobank supports clients from farm to fork in

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Dairy’s Asian prospects Summary

A GROWING milk deficit over the next decade in Southeast Asian markets will be a major pull factor for strategic dairy export growth. Given the scale and attractiveness of these markets, dairy exporters need to have the right level of exposure. While there are challenges, Rabobank remains very optimistic about the future opportunities for dairy companies in the ASEAN-6 economies.

exporters. The absolute market size of the collective nations is significant. Over the past decade, the economies of Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam saw combined trade volumes in the main commodities expand between 4% and 7% per annum (see Figure 1). Based on Rabobank estimates, in 2020, these markets will import 11 billion litres (in

liquid milk equivalents), equating to around 10% of annual global trade in milksolids.

Trade tailwinds to sweep across Southeast Asia

FUTURE GROWTH opportunities in the region are underpinned by socioeconomic developments and local initiatives that support consumption growth. There is significant head-

room for growth in per capita consumption as incomes rise. At the same time, structural tailwinds will underpin trade intensity in these markets, creating export opportunities.

Attractive dairy category growth

THE OUTLOOK for dairy consumption in the ASEAN-6 markets continues to exhibit broadbased growth across key dairy categories underpinned by favorable economic and demographic conditions. Rabobank forecasts retail dairy consumption in the ASEAN-6 economies to return to growth in 2021, but at a slower rate (between 2% and 5%) and with downside risks in the near term. When assessing growth prospects across

Dairy export boom beckons in Southeast Asia THE ASEAN-6 dairy markets, including Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam, represent a growing opportunity for dairy

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the region, Indonesia and Vietnam remain the standout markets for growth. This is due to these economies having the strongest positive mix of macroeconomic and demographic settings, and subsequent headroom for growth in per capita consumption.

Short-term head-

winds amid a global pandemic

RABOBANK EXPECTS the global economy to contract by 4.4% in 2020 and recover by 4% in 2021. Southeast Asian economies will not be immune to these dynamics – and Rabobank anticipates a severe contraction for these econo-

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MARKETS & TRENDS 23

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bigger than China mies in 2020. So far, dairy markets in Southeast Asia have demonstrated a level of resilience in the face of the global pandemic, and the worst of the economic downturn has now passed, as countries emerge from the initial government-led responses to Covid-19.

Escalating tensions casting uncertainty Coming into 2020, China’s trade relations with key trading partners were already on shaky ground – particularly so for the United States and Australia. While the dairy trade has largely been immune so far, there has been a notable deterioration in trade relations, which has the potential to reverberate far and wide. China is currently

the world’s largest dairy import market. Its scale and rapid growth have incentivized dairy exporters around the world to focus investments in this market. Australian and New Zealand dairy companies are more trade-

exposed versus peers and, consequently, have the highest level of market concentration risk, with approximately one-third of trade bound for China (see Figure 5). Dairy companies will need to evaluate their export portfolios

to determine if they are overweight in China and/ or underweight in Southeast Asia.

annual milk deficit of the ASEAN-6 will eclipse China’s (see Figure 6).

Chinese demand is receding

SOUTHEAST ASIAN dairy markets have long been a critical battle-

THERE ARE additional motivations for dairy exporters to reconsider their export growth strategies. Trade tensions aside, China’s dairy demand is expected to ease over the next decade as the rate of growth in per capita demand slows. This slowdown in demand and the subsequent import gap should further compel dairy exporters to reassess their export growth strategy and to consider increasing investments in the ASEAN-6 region. To put a finer point on it, over the next decade the combined

Conclusion

ground for dairy exporters. Oceania exporters have a slight competitive edge in the region because tariff advantages provided a cocktail of bilateral trade agreements and the ASEAN-Australia-

New Zealand Free Trade Agreement (AANZFTA). However, the widespread pursuit of trade agreements with these economies by global peers means the markets will become mostly harmonized with respect to tariffs and non-tariff barriers (NTBs) over time. China will continue to be a priority market for dairy companies with an export focus. At the time of writing, dairy trade has largely been immune to increasing tensions between China and key trading partners. Nevertheless, ongoing regulatory risks, past trade issues, and the current geopolitical environment should motivate dairy companies to reassess export growth strategies in the Asia Pacific region for the next decade.

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RURAL NEWS // NOVEMBER 3, 2020

24 OPINION EDITORIAL

EDNA

Time for action IT’S TIME for some real and fast action around allowing more seasonal workers into the country to help power NZ’s all-important agricultural and horticultural sectors. There are no more excuses for the hopeless lack of activity in this area, from both the politicians and bureaucrats. For months we have been hearing endless reports about a lack of suitably motivated and qualified workers in numerous parts of the primary sector – including fruit pickers, shearers, tractor drivers and vets to name just a few. The closure of NZ’s borders due to Covid-19 has only further exacerbated the problem, but it needs to be addressed and now. The head in the sand approach taken by the Government over this issue can no longer be tolerated. Claims that vacancies in our agricultural and horticultural can be filled by out-of-work New Zealanders is both naïve and ignorant. It would have happened by now if it was realistic. Many of these jobs require skilled, experienced workers and cannot be filled by people just coming off the street. Also, a lot of this work is seasonal, temporary and based in regional areas. It is unrealistic to expect people with families and homes in urban centres to pick up their lives and move far away to take on jobs – many of which they are totally unsuited and unqualified for – that may only last a few months. The fact is, already many of our horticultural crops are at risk of not being harvested and processed due to the unwillingness of government to tackle the huge lack of available labour in the sector. We keep hearing calls from apple, kiwifruit and strawberry growers that their crops are at risk of rotting and going to waste instead of being picked, packed and earning valuable export income the country desperately needs. Agricultural contractors have been warning for months about a lack of drivers meaning crucial hay and silage may not be harvested this year. A lack of shearers means that sheep may not be shorn, and serious animal welfare issues may arise. Meanwhile, other animal health and welfare issues loom due to a lack of vets around the country. NZ can no longer keep its doors shut to crucial key overseas workers we need to keep this country going. This does not mean the quarantine and testing measures are ignored – and all this will be paid for by the industries needing to import these workers. How can the country keep moving if our key primary sectors are not working at 100%?

RURALNEWS TO ALL FARMERS, FOR ALL FARMERS

HEAD OFFICE POSTAL ADDRESS: PO Box 331100, Takapuna, Auckland 0740 PUBLISHER: Brian Hight ......................................... Ph 09 307 0399 GENERAL MANAGER: Adam Fricker ....................................... Ph 021-842 226 CONSULTING EDITOR: David Anderson .................................. Ph 09 307 0399 davida@ruralnews.co.nz

“He voted labour because he thought its promise to ‘keep things moving’ meant he’d get free laxatives!”

Want to share your opinion or gossip with the Hound? Send your emails to: hound@ruralnews.co.nz

THE HOUND Pedantic

No bull!

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YOUR OLD mate does wonder about the finicky behaviour of the constabulary at times. A recent example comes from a mechanic, from one of Canterbury’s agricultural machinery dealers, who was driving a combine harvester back out to a farm following its winter service. One of the area’s finest traffic officers flagged him down and berated him for not having his flashing and rotating orange beacons turned on. The spanner man replied, “This machine is over 9 metres long, 4.2 metres high and 3.7 metres wide and painted bright green”. The cop replied, “I know... that’s the reason you need a flashing beacon – so other road users can see you!” He then issued a $50 infringement notice, before speeding off in his patrol car, most likely, to the local doughnut shop!

The Hound reckons talk of a rural/ urban divide in this country is routinely dismissed by the less well-informed. How many times have you seen a story about ‘dirty dairying’ or another anti dairy farming report in a urbandominated newspaper that is illustrated with a photo of beef cattle? Recently, the woke folk at Stuff – the country’s most prolific newspaper publisher – ran a story about a young lady who’d set up a ‘sanctuary’ farm in North Canterbury, where cows at the end of their milking life were supposed to live out their days. Inevitably, this turned into a disaster, with a number of the animals ‘euthanised’ and others have to be rehomed elsewhere. According to the Stuff story, the remaining cows then “had to be castrated”! As a mate of the Hound’s cuttingly opined, the vets who carried out those incredible operations on the cows should be nominated for a Nobel Prize in science!

This old mutt does worry about the unfettered ‘old boys’ network that seems to operate within the agrisector. The latest example, pointed out to yours truly, was the recent appointment of Mark Townshend as board chair of DairyNZ subsidiary – NZAEL. The Hound is uncertain whether Townshend is the right or best man for this role or not. However, what he does know is that Dairy NZ chair Jim van der Poel is a long-time colleague of Townshend’s – having served with him on the board at both Fonterra and the giant dairy coop’s predecessor NZ Dairy Group. Admittedly, NZ is a small country, but it is hard – at times – to argue against the oft-made claim of ‘jobs for the boys’ when this keeps happening in the sector time and time again.

Your canine crusader, like most in society, believes that the minority of farmers who carry out uncaring and idiotic behaviour towards their animals deserve to be severely punished. Every time a case of on-farm animal cruelty is reported it not only unfairly blemishes the reputation of all farmers, but also risks NZ’s international standing in our export markets. Therefore, it is good to see that MPI is beefing up its animal welfare monitoring capability and chasing up any untoward behaviour in this area. However, your old mate had a bit of chuckle when told about one of the recent calls that came into MPI’s animal welfare hotline. Apparently, a concerned citizen rang MPI to express concern that a farm was “lambing in the rain” and that animal welfare officers should be dispatched immediately to resolve this issue!

PRODUCTION: Dave Ferguson ...................... Ph 027 272 5372 davef@ruralnews.co.nz Becky Williams .......................Ph 021 100 4381 beckyw@ruralnews.co.nz REPORTERS: Sudesh Kissun ........................ Ph 021 963 177 sudeshk@ruralnews.co.nz Peter Burke ........................... Ph 021 224 2184 peterb@ruralnews.co.nz MACHINERY EDITOR: Mark Daniel ............................. Ph 021 906 723 markd@ruralnews.co.nz

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ABC audited circulation 79,553 as at 31/03/2019

DIGITAL STRATEGIST: Jessica Wilson ......................Ph 027 535 2534

Rural News is published by Rural News Group Ltd. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of staff, management or directors of Rural News Group Ltd.

RURAL NEWS // NOVEMBER 3, 2020

OPINION 25

Can claims live up to the hype? FARMER RESILIENCE and well-being are hot topics. Achieving both has been at the forefront of promotions for alternative modes of farming based on work overseas. The question remains whether what is being promoted will achieve what is promised. The New Zealand experience suggests that we already have the answer: uncertainty undermines wellbeing, but when the crunch arrives, our farm-

COMMENT

Jacqueline Rowarth

greater resilience and wellbeing achievable from non-conventional farming systems, though attractive, should be challenged. Australian research on resilience, defined as ‘stable income’, shows that farmers with no or low reliance on chemical

inputs do experience more stable incomes than those who are farming conventionally. However, the Australian Farm Institute has since shown that the low input farmers earned a quarter of a million dollars less on average each year over a decade. Their income

didn’t fluctuate, but they weren’t adaptable enough to take advantage of good seasons to increase it. Return on assets managed annually was 1.66% for low input farmers in contrast to 4.22% for conventional farmers. Resilience is evident

in New Zealand farmers already. Mental health is an issue and can be ameliorated with support to do an even-better job. Context, starting point, goal and impact of potential unintended consequences should always be considered

before solutions are plucked out of statements based on research of alternative farming systems from overseas. • Dr Jacqueline Rowarth is a farmer-elected director of DairyNZ and Ravensdown. The analysis and conclusions above are her own. jsrowarth@gmail.com

because they have to adapt all the time. Unbuffered by subsidies, farmers react to markets, exchange rates, interest rates and weather. They

Farmers are resilient because they have to adapt all the time. Unbuffered by subsidies, farmers react to markets, exchange rates, interest rates and weather. They identify opportunities and adopt technologies to improve operations. ers are up to the challenge because they are resilient. We know this from the economic data through the Covid lockdown. It was the primary sector exports that kept new dollars coming into the country. Resilience is not necessarily the same thing as well-being. The View from the Cowshed, published by DairyNZ and available on its website, received media interest in August and should not be forgotten. The report indicated that 62% of dairy farmers had experienced mental health issues in the last year or had someone on their farm who had suffered. It also reported that ‘changing regulations’ was the issue most likely to keep farmers awake at night. From research on organisational change we know that uncertainty breeds anxiety. While the architects of change are excited, workers are worried because their jobs are on the line. Being close to the action makes the difference. Proximity also affects resilience; it is strongest in people who have been exposed to suffering. Farmers are resilient

identify opportunities and adopt technologies to improve operations. The post-lockdown report from the New Zealand Institute of Economic Research (NZIER) was titled ‘Inflexibility a challenge for the agri-food sector’. It stated that the farming sector was less adaptable than other sectors during Covid. This is hardly surprising given the planning cycle for agriculture and horticulture. But what NZIER’s research didn’t capture was the extra work that farm-owners did on farm through Covid in the absence of assistance. Nor the extra time spent considering, for instance, the various new fertiliser options for minimal environmental impact – while maintaining plant growth. Extra paperwork didn’t appear in the survey, either. Nor the fact that more time and money were spent on temporary fixes because the rural professionals were subject to ‘social distancing’. However, the potential exports were still being milked, drafted and harvested. Given the evidence, the promise of even

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RURAL NEWS // NOVEMBER 3, 2020

26 OPINION

Greater food security through trade The International Beef Alliance (IBA) – made up of the cattle producer organisations from Australia, Brazil, Canada, Mexico, New Zealand, Paraguay and the United States – produces 47% of global beef production and 66% of exports. Recently, the IBA issued the following statement regarding the international trade in beef in 2020… THE YEAR 2020 has been difficult for cattle producers with the Covid-19 pandemic disrupting beef production, processing and trade throughout the world. While the cattle and beef sectors in some IBA countries have been severely affected, we have adapted our risk management procedures and continue to produce safe,

healthy and nutritious beef products. Covid-19 has highlighted the importance of international food trade in achieving food security and economic prosperity. The past six months have proven that we are a critical part of an interconnected global food supply chain. Beef cattle producers remain staunchly committed to improving

the wellbeing of people, our animals and the environment. The contribution of IBA members to global food security cannot be understated. We reiterate the importance of free and open markets that allow consumers to access supplies of safe, nutritious and sufficient food. Trade distortions –

such as export restrictions, import tariffs, tariff rate quotas and non-tariff barriers – impede this matching of demand with supply. As a result of Covid-19, we have seen measures put in place that restrict both exports and imports, making it more difficult for consumers to access food. We support the removal of these trade

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barriers as soon as possible. In particular, we are deeply concerned at the imposition of border testing for Covid-19 that is not based on international Codex standards. While we understand the pressure that governments face to keep citizens safe, the IBA calls for the use of risk-based measures grounded in sound science and aligned to international standards.

The IBA also welcomes the changes made by many countries to improve food trade and food security by lowering or removing trade barriers. Adopting electronic certification in place of paper documentation; maintaining supply chains and enhancing the facilitation of food trade at the border; and providing greater transparency in measures affecting agricultural production and trade.

It is imperative that we work together to ensure consumers have continued access to high quality, safe products. We urge all countries to work to reduce and remove all barriers to food trade, enhance the transparency and functioning of food supply chains, and ensure that all countries adopt measures that are based on internationally recognised scientific standards.

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OPINION 27

Nitrogen fertiliser ban not the answer an absurdly impractical measure that will impede the development of innovative methods for improving environmental outcomes.

plants is a wasted input. Banning synthetic nitrogen fertilisers in New Zealand would be akin to banning fire because of house fires,

• Macaulay Jones is a climate change and trade policy advisor for Federated Farmers @rural_news facebook.com/ruralnews

Macaulay Jones says banning N fertiliser will not be the silver bullet many environmentalists claim.

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SYNTHETIC NITROGEN fertiliser is suffering from a PR problem in New Zealand. It’s regularly demonised and blamed for the degradation of waterways, for contributing to climate change and for enabling a perceived unsustainable growth of farming. Some are even calling for it to be banned altogether. While synthetic nitrogen fertiliser can undoubtedly lead to environmental issues if used carelessly, it’s this careless use which should be avoided and not the use of the product. A better approach would be to encourage good management practices by farmers; practices such as using the right amount of fertiliser, in the right place at the right time. In contrast, a blanket ban would erase one of the greatest scientific and humanitarian breakthroughs of the twentieth century and would dangerously directly threaten the food security of half the global population. At its most fundamental level, modern farming is about a smaller number of people growing surplus amounts of plants so the rest of society can eat and pursue other activities. Whether these plants are consumed by people directly – or fed to animals which are then consumed by people – one cannot farm without growing plants. Along with sunlight and water, plants require nutrients to grow. The three main nutrients demanded by plants are nitrogen, phosphorus and potassium, with nitrogen often being the input constraining growth and whose addition is therefore most often correlated to increased crop yield. Adding nitrogen to a farming system enables increased productivity, allowing farmers to either produce more food with the same amount of land or to produce the same

amount of food while retiring parts of a farm from production. Without the inputs needed to farm efficiently, more land – either in New Zealand or around the world – would need to be converted to farms in order to avoid millions being without food. Those who demand a ban on synthetic nitrogen fertilisers castigate the product because of its association with intensive agriculture. But it is this very intensive (or efficient) farming in New Zealand, enabled by synthetic fertiliser that has empowered a small number of farmers on a relatively static amount of land to feed over ten times our population. The world before synthetic nitrogen was simply not a better place; crop failure regularly resulted in widespread hunger. Today hunger is such a rare occurrence for many, it is difficult to believe that this dystopian world existed only a century ago. It is possible for farmers to obtain nitrogen from sources other than synthetic fertiliser. But alternative sources such as animal manure or nitrogen-fixating legumes would not work for some farm systems and would not provide a complete replacement. This is what has led most farmers to purchase the product at great expense. The value derived from the critical input quickly flows from farmers to the wider economy, with research estimating that a blanket synthetic nitrogen fertiliser ban would cost the New Zealand economy a staggering $19.6 billion and over 70,000 jobs. New Zealand farmers are hard at work efficiently producing highly sought-after food for the world, while also ensuring as little nitrogen goes into waterways or into the atmosphere as possible. This is not only good for the environment but also good for productivity, as any nitrogen not being taken up by the intended

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MACAULAY JONES

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NAIT tags are only usable ...

... the NAIT location they were purchased for.

Before tagging, make sure the tags’ NAIT number matches your location’s NAIT number. www.ospri.co.nz/managemytags

Remember to register your animals after tagging. Failure to comply with NAIT obligations may result in fines or prosecution issued by the Ministry for Primary Industries.

NAIT is an OSPRI programme

J1540 NAIT tags for single location advert FA.indd 1

ospri.co.nz

9/10/2020 1:33:09 PM

RURAL NEWS // NOVEMBER 3, 2020

MANAGEMENT 29

Being tough just not enough Northern region Young Farmer of the Year winner – and born and bred Auckland city girl – Lisa Kendall reckons because she didn’t grow up on the land she felt a lot of pressure to fit in and be tough when she went into farming. “I avoided thinking about the health and safety side because I didn’t want to be ‘that Auckland girl’.” However, her views have now changed and she explains why… THREE THINGS have changed Franklin-based Kendall’s perspective – maturity, becoming an employer herself, and a back injury resulting from “years of abuse” lifting too-heavy weights in the workplace. Her business, Nurture Farming, provides contracting services for lifestyle blocks and she is focused strongly on ongoing risk management assessments for every job. Kendall has a Diploma in Agriculture and a Diploma in Farm Management, both from Lincoln. She also has a Certificate in Advanced Personal Training and a Graduate Certificate in Science and Technology from Massey. Kendall began her farming career working on sheep and beef and dairy farms, punctuated by two OEs. Some of her employers provided the opportunity

to do training courses in using equipment. However, the overall approach to health and safety was fairly hands off. “Because I was trying to fit in, I avoided thinking about the health and safety side,” she says. “I guess I was ‘younger and dumber’ and when I was working for others I didn’t feel the same responsibility back then. My approach was ‘I’ll keep myself out of trouble and others need to keep themselves out of trouble too.’” Kendall says as she’s got older and wiser, she started to recognise how terrible she’d feel if she saw someone doing something unsafe and didn’t say anything and they injured themselves. “I’ve realised I would rather be laughed at than see someone in hospital.” Kendall launched Nurture Farming four years ago. However, due to her

back injury, she is now working full time for Farmlands as an assistant business manager. “I launched the business to provide contracting services for lifestyle blocks – everything from shearing to fencing, spraying and installing water lines,” she explains. “I had a small number of employees and, as an employer, obviously I had my legal obligations and had a formal structure around health and safety. We used the Zero Harm Farm system, which was all on the computer and very accessible.” She says her focus was on active teaching, not just giving someone a manual or instructions. “We’d go through the health and safety material as part of the induction. I never let a staff member use a piece of machinery until they had been fully trained and I was confident they were using it

Lisa Kendall says her views about farm health and safety have changed for the better.

safely,” Kendall adds. “I always made clear to the people I employed that their safety – and that of those around them – comes first. If they think there is risk in doing something, then they won’t get told off if a job doesn’t get done because it takes longer than expected.” In Kendall’s experience, lifestyle block owners may not always be as attuned to the risks on their properties. “They aren’t negligent or trying not to be helpful, but they may not be used to having machinery around,” she says.

“Contractors on lifestyle blocks should always feel happy to ask owners the same questions you would ask a farmer.” She says she’d have a conversation with owners to ask what they needed to know about risks on their property and she’d also do her own risk assessment too. “We’d walk around and they’d point out things like a boggy corner of a gully. If they were providing a particular chemical for us to use, we’d ask about its hazard classification. “Equally, we’d talk to owners about man-

aging the risks around our work. One of the big focuses was the work zone. On a farm, you’re in a much bigger space, but on a lifestyle block, you are likely to be closer to living areas. It’s about making sure everyone on the property knows not to come into the work zone and being very clear about what that zone is.” Kendall says kids are also a big issue on lifestyle blocks. “They may well wander out to watch and you could be spraying or using a tractor. It’s hard for kids to resist when they see interesting stuff

going on outside. I always asked clients to keep children inside and keep an eye on them.” Having suffered her own ongoing back injury, Kendall is also aware of the importance of teaching staff correct lifting techniques and impressing the importance of seeking help rather than lifting anything that is too heavy. “Again, that comes back to the ‘wanting to be tough’ sort of thing. I would just overuse my back quite badly, rather than asking someone to help me lift something or using machinery to help lift,” she admits. “When I came into farming, there wasn’t as much information or focus on health and safety. Now, industry organisations are so open about it and provide a lot of resources and information – it’s all there online and easily accessible.” Kendall believes it’s great that every Young Farmers club now has a health and safety rep. “It’s so good to see it being taken seriously at a smaller scale and social level – that is a great way of learning for Young Farmers and a good platform for them to transition into agricultural study and the workplace.”

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RURAL NEWS // NOVEMBER 3, 2020

30 MANAGEMENT

Answers are in the soil

Wairarapa farmer Rob Dick on his Eastbro property. PHOTO COURTESY OF THE NZ FARM ENVIRONMENTAL TRUST

Wairarapa sheep farmer Rob Dick is on a mission to reduce his property’s environmental footprint as quickly as possible – and his approach starts with the soil. THE ACTIONS Rob Dick is taking on his Eastbro farm to manage its carbon footprint earned him an award in the Greater Wellington the 2020 Ballance Farm Environment Awards. He says an understanding of how land use impacts climate has led to careful soil and fertiliser management, significant native planting and the installation of extensive drainage. Dick’s made huge environmental strides while continuing to maintain a

highly productive hogget grazing operation and strong community connections. “It’s a lot of work but when you start seeing results, you quite enjoy the process.” He believes that respecting soil structure should be a farmer’s top priority, with it ultimately leading to a boost in liveweight gain. “Soil is the farm’s life really – if you get the soil right, the production and the rest of the farming system will follow suit.”

Top tips ● Respect and protect the soil ● Divide your property into different profiles ● Seek advice on planting, particularly from regional councils ● Take time out for yourself and to get involved in the community

As such, it’s critical to protect soil from damage such as pugging, and to make careful planting choices.

Eastbro’s soil is predominantly clay, with limited topsoil. In an effort to help fix more nitrate into the farm’s soil,

Dick has switched from grass to plantain and red clover. This has resulted in healthier plants, less need for fertiliser and ultimately has boosted lamb growth rates. “I lamb in October and the plantain is good for producing milk in the ewes – resulting in good weaner weights in a short space of time. Red clover is good for growth rates too, especially on the clay soils,” he explains. “I’m trying to set up a system that uses different herbs to produce a quick live weight gain before summer comes along and we restock again. It’s also a good idea to look at your stock policy. A lot of farms stick with the status quo and it’s good to challenge that and look at other options.” Dick believes a good idea for farmers and growers, who want to reduce their carbon footprint, is to divide the property into three pro-

A WORK-LIFE BALANCE AS DEVOTED as he is to Eastbro, Rob Dick also rates the benefits of taking a break and getting involved in the local community. “I really enjoy seeing the results of giving back to the community – for example, through fundraisers. There are certain times of the year when you know you’ll be a bit quieter and that’s the ideal time to get involved in things,” he says. “It’s important to get off the farm because you come back with a different attitude, often seeing things with fresh eyes.”

files – identifying the most productive areas, those that are less used, and any in the middle. “Identify what you can fix more quickly and get onto that, rather than trying to do the whole farm. It’s also good to identify the weak spots,” he explains. “For example, a lot of my native planting has been done in damp, relatively unused areas.” Since 2008, Dick has planted more than 8,500 natives in wetland and

riparian areas on Eastbro. He has also sought a lot of advice, including from regional council staff, to understand which plants will thrive in certain locations and the type of birdlife they’ll attract. “In wetland areas, some plants will grow a lot quicker than on dryer areas. “I’ve planted flax and tussock that are great at soaking up nutrients as well.” @rural_news facebook.com/ruralnews

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RURAL NEWS // NOVEMBER 3, 2020

MANAGEMENT 31

The winds of change When New Yorkers Anders and Emily Crofoot took over Castlepoint Station on the eastern Wairarapa coast in 1998 they had to make some big adjustments, quickly. Gone were the freezing winters and reliable summer rains – replaced with year-round growth, frequent summer droughts and relentless wind THE CROFOOTS quickly discovered that looking after their farm’s soil required a shift from traditional thinking and practice. Two attempts at sowing pasture in a conventionally cultivated paddock—and two spring gales that blew about a third of the seed straight out to sea each time— convinced them that there had to be a better way to establish pasture in this climate. And that’s been a theme throughout their

20+ years on Castlepoint Station, a 3,700-hectare sheep and beef operation about 65km due east of Masterton. Weather and topography are constant challenges. In winter, pugging and hillside slippage are problems. In summer, it’s dryness. But it’s the wind that Anders Crofoot describes as the most striking feature of the property. In his first year at Castlepoint, a storm with sustained winds of 160 km/h struck.

He’d never experienced anything like it. Now he barely blinks unless the wind rises above 120 km/h! The station has three alluvial valleys, separated by hills that in some places run north-south and in others east-west. That variable aspect, coupled with the relentless north-westerly winds and periods of dry, create pockets where maintaining soil productivity is extremely difficult. In these conditions, some of the traditional

Castlepoint Station’s Anders Crofoot says everything they’re doing to look after the soil and fine tune their management system is simply ‘good farming practice’.

practices weren’t working well. The Crofoots now sow by direct drilling to reduce soil disturbance and wind erosion. They are also experimenting with deeperrooting forages – such as lucerne and plantain. These plants extract moisture from the soil more effectively without compromising feed

quality and their roots also help to hold the soil together during periods of fallow. Dung beetles are now also part of the mix. In theory, these can help to improve soil productivity by pulling nutrient-rich manure deeper into the soil and opening up channels through which more moisture can flow. About 15,000 poplar

and willow poles have been planted to stabilise hillsides prone to slipping in winter and provide shade for livestock in summer. There has also been some tweaking of animal numbers over the years to optimise the stocking rate/productivity mix, as well as a focus on highvalue outputs like Wagyu beef to shore up the busi-

ness against market vagaries. Crofoot says that while they’ve made something of a shift from the conventional, everything they’re doing to look after the soil and fine tune the system is simply “good farming practice”. Their actions have seen lambing percentages and weaning weights increase, while the soil is visibly richer in organic matter and better able to cope with nature’s harshest assaults. Meanwhile, those assaults will inevitably keep coming. • Source AgMatters website, which is funded by the Ministry for Primary Industries and managed by the New Zealand Agricultural Greenhouse Gas Research Centre (NZAGRC).

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RURAL NEWS // NOVEMBER 3, 2020

32 ANIMAL HEALTH

Why are animals mistreated? Complaints flow in

PETER BURKE peterb@ruralnews.co.nz

THERE’S BEEN a spike in recent weeks of people appearing before the courts on charges of mistreating farm animals. This is despite the Ministry for Primary Industry (MPI) and other rural professionals working with farmers to prevent such incidents occurring. MPI’s director of compliance Gary Orr says farmers and rural contractors need to be held to account for any breach of animal welfare codes and regulations. Most recently, a shearing contractor who repeatedly struck a lamb, causing its death, was sentenced to 16 months imprisonment at the Alexandra District Court. This occurred earlier this year, when he was shearing a lamb at a farm in Oxford, North Canterbury. The court was told the animal began to struggle and the contractor’s shears broke. He reacted by hitting the lamb in the eye with the tension knob of his shears, fracturing an eye socket. He put the lamb back in the holding pen, only to return and hit the lamb again, fracturing its skull. It later died from

ON AVERAGE, MPI receives about 900 complaints about animal welfare issues each year. Orr says a significant number of these come from city folk who have moved to rural areas and don’t have an understanding of normal animal husbandry practices. “People from urban areas often see farming through a different lens,” he says. “For example, we have had complaints about farmers letting their sheep have their lambs in the rain and the people who complained couldn’t understand why farmers weren’t out there getting the lambs under cover.” Orr says while many of the complaints are well intentioned, but not valid, he’d still prefer for people to contact MPI if they see something they are not sure about rather than not report an activity.

REASONS FOR MISTREATMENT

MPI’s Gary Orr says farmers and rural contractors need to be held to account for any breach of animal welfare codes and regulations.

its injuries. MPI’s national manager of animal welfare Gray Harrison describes the man’s actions were appalling. “Animals need and deserve to be treated with respect, and he fell well short of those expectations. This kind of offending by shearers is unusual,” he says.

“The majority are professional and do the right thing. However, our message for those who deliberately cause this kind of suffering is clear – we will investigate and place them before the court.” A few weeks earlier, an elderly dairy farming couple in the Coromandel were fined $7,500 for ill-treating cows and fail-

ing to comply with the direction and advice of an animal welfare inspector. MPI says one cow on the property had to be euthanised and 30 others were found to be significantly underfed. Harrison says if the couple had acted on the warnings and advice over a long period of time from MPI and other rural

GARY ORR says there are a wide range of reasons why those in charge of animals mistreat stock. He says it can range from personal reasons – such as domestic relationship breakdown to financial or compliance issues. He believes a lack of a viable succession plan with some older farmers is a trend that’s showing up. Orr says often a couple may have worked hard all their life to build up a farming business, but the next generation is not interested in taking over the business. He says the couple may not be keen to walk away from farm life because it is part of their DNA, because they have put their life into the property. “They have strong connections to the land and they try to soldier on to a stage when the farming challenges are beyond them and that’s when they get into trouble.”

professional’s, there may have been a different outcome for the animals.

Orr says such people have been law abiding citizens all their life and the last thing MPI want is to end their farming career with a conviction. Orr says if MPI comes across a situation where farmers are ill-treating their animals they will try and work with a farmer get them to put the situation right. He says they will arrange for a veterinarian or farm advisor to help an individual. They may also issue a notice of direction under the animal welfare act. “We only prosecute if the situation requires it with people failing to comply with warnings or if the abuse is so wilful and of such a significant nature that it’s in the public interest to do so,” he told Rural News. “At the end of the day, it’s all about the welfare of the animals – we want to see the animals treated ethically and lawfully so long as they are on a farm.”

He says this is another case where people who neglect their responsi-

bilities to animals will be investigated and held to account.

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RURAL NEWS // NOVEMBER 3, 2020

ANIMAL HEALTH 33

No shear sheep a perfect fit AT A time of depressed wool prices, more and more sheep farmers are looking at reducing costs – such as shearing and parasite control. With this in mind, Mt Cass Station will host an open day – on Friday 20 November – to give farmers an opportunity to see how no-shear Wiltshires perform in a commercial environment. The 1800ha hill country coastal property, near Waipara in North Canterbury, is farmed using organic principles. The farm is run by Sara and Andrew Heard and five other shareholders. It is under this low-input system that Andrew Heard claims the Wiltshires come into their own. The breed’s inherent internal parasite resistance and resilience means they don’t need shearing, dagging or crutching – and they don’t get flystrike. As Heard points out, all the jobs associated with running sheep are significantly reduced, which means savings in shearing, labour and agrichemical costs. “They are more like running cattle,” he says. Mt Cass has been running Wiltshires for 12 years, after purchasing its first Wiltshire rams to put across the farm’s existing midmicron ewes, along with some Wiltshire ewe lambs. Since then, they have breeding and selecting and now run an even

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line of 8,300 Wiltshire ewes alongside their Wiltshire stud, which was established to meet a growing demand for their genetics. Mt Cass will be holding its first onfarm ram and surplus ewe lambs on 20 January next year. Heard believes there has been growing interest in Wiltshires from farmers frustrated by ongoing depressed wool prices and the work associated with wool production. He says the progression to a

no-shear flock is quite rapid and in the first-cross, the progeny typically has no wool on their belly – so no belly crutching is required. Within a couple of generations, Heard claims crutching, dipping and flystrike is eliminated and within three to four generations so too is shearing. While they don’t produce wool, the Wiltshire are good meat producers, weaning 135-145% of Mt Cass’s hill country. Around 40% of the lamb crop is sold prime

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pre-Christmas at 16.5-17.5kg carcass weight. Heard, a former fine-wool producer, says Mt Cass and its organic system is an ideal testing ground for genetics. He has been impressed by the Wiltshire’s ability to perform on the hill country without the support of inputs. “I miss the wool,” he says. “But I don’t miss producing something that’s worth nothing and has a lot of associated costs, added stress and labour.”

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34 MACHINERY & PRODUCTS

Big M triple mower cuts the mustard and much, much more MARK DANIEL markd@ruralnews.co.nz

BEN WALLING and partner Sarah Flintoft are Southland farmers and directors of Walling Contracting Southland Ltd. They farm bull beef, while also carrying out baling, silage and cultivation on contract. Having done some research, Walling purchased a set of triple mowers in late 2018 for delivery at the start of the next season. However, in July 2019, he was asked to tender on a Krone Big M 450 self-propelled mower that had only done 370 hours since new. After assessing the machine with mechanic Tim McFarlane, it was purchased, repaired and worked the last season – between September and March 2020. Meanwhile, the new triple mower remains parked up and unused. “It’s quiet, comfortable and has great visibility. It’s a brilliant machine with a brilliant motor,” Walling says of the Big M. “We have been right inside it, taking the pistons out and it is rock-solid. It works at 1700-1800rpm and hardly uses any fuel.” The Big M has a sixcylinder 449-hp Liebherr engine that works at 1700-1800 rpm. It is

Walling Contracting’s Ben Walling describes his Krone Big M 450 self-propelled mower as a “brilliant machine”.

frugal on fuel and never runs out of horsepower. With three mower and v-tine conditioner units, the Big M has a working width of 10 metres. Ground pressure is hydraulically controlled and easily changeable, with the operators choosing to set it so the mowers float as lightly as possible without bouncing. During mowing, the operator can also alter the cutting height using

pre-set buttons on the joystick, with a resume feature making it easy to return to a pre-set height after lifting over rougher areas. Having taken on grass, whole crop, tick beans and oats, the Big-M has also cut and windrowed a 1.3 metre triticale crop. Walling says the most difficult crop it has done was a paddock of wheat mature enough to head, which was close to matu-

rity and better suited to a combine harvester. Although the abundant horsepower means the machine could easily work at 20km/h, Walling says it would start bending things and wrecking the machine. “Tim is an excellent driver. He may travel up to 15km/h in a smooth paddock that he has mown in the past. Otherwise it is more like 10-12 km/h.”

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The versatile Big M can leave the crop flat or grouped into one, two or three windrows. It can also place an offset swath to one side by closing one swathing hood. This could be used when mowing along a fence line or trough, or in lighter rows to throw the crop to one side to make bigger rows. The machine can be followed with a 12m rake to bring almost 20m into

a row and speed up subsequent operations. Among the Big M’s other features is a clever transport mode, where the mowers are folded, and the axle height lowered to keep the whole machine within the legal height on roads. Likewise, traction control offers the choice between performance and traction, with two pre-set values ensuring the machine keeps

moving. Another feature sees automated side-shifting of the front mower, controlled by a wheel angle sensor to eliminate unmown strips on corners. “We became self-propelled mower owners purely by accident,” Walling says. “But we are now sold on the Big M and wouldn’t go back.” @rural_news facebook.com/ruralnews

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RURAL NEWS // NOVEMBER 3, 2020

MACHINERY & PRODUCTS 35

Virtual CV valuable tool MARK DANIEL markd@ruralnews.co.nz

WITH A 12-year history of recruiting specialised operators from overseas to service the agricultural contracting industry, Hanzon Jobs typically brings in around 200 people to New Zealand each year from the UK and Ireland. Covid-19 has caused massive disruption to the agri-contracting sector, but the Marlborough-based company has stuck to its core business, which centres on connecting suitable candidates with good job opportunities. Realising that a number of different businesses have sprung up to recruit NZ-based, displaced workers with understaffed contractors, Hanzon has come up

Hanzon’s web-based app allows new entrants and established workers to create a real-time work experience log in a simple and straightforward manner.

with a clever, web-based app. This allows new entrants and established workers to create a realtime work experience log in a simple and straightforward manner. The app can be

used to show potential employers an applicant’s work history. It also allows employers to seek out suitable candidates for their business. The app takes the form of a Daily Log, split

into four periods. The employee can record the tasks being undertaken – for example, mowing, raking or baling. They are also able to list the type of machine being operated (mounted, trailed or

triple mower). As part of an individual job, the app also offers a list of sub-tasks, such as attaching the mower, daily maintenance and identifying hazards.

Data collected also runs to the brand of machinery being used, for example, Claas, Krone or JD. It also records the conditions – wet, dry or muddy – and the type of terrain being operated over. The data, which is verified by the employer, builds up over the season to become a virtual CV for the operator – as well as a valuable tool for a prospective employer. The latter can look at a resume and assess potential staff based on their experience at a task and their familiarity with certain machinery brands or tractors. Alternatively, potential employers can look at an operator’s experience based around terrain or types of crop – favouring candidates who might have more experience in a landscape similar to their own area of

operation. Richard Houston, a 20 year veteran of the ag industry with experience as a machine operator, contractor and recruitment consultant, suggests that the app will become a valuable tool particularly in the current Covid-compromised era. This has seen a large percentage of recently recruited staff having limited experience in the sector. Houston claims with candidates building up a worthwhile resume, they should be able to become valuable contributors to the sector. He says it will also show potential employers that they are committed to making a career in the industry and worth investing in. www.hanzonjobs.com @rural_news facebook.com/ruralnews

BUY A TRACTOR FOR A CHANCE TO WIN A BOAT. SHIP YEAH! Make a purchase from Massey Ferguson’s extensive range of 23hp – 370hp tractors, between now and December 31, for your chance to win a Surtees 495 Workmate boat. Painted a one-off Massey Ferguson red, the Surtees boat comes complete with Honda BF60 4 stroke outboard, Humminbird Helix 10 GPS/fish finder with link function to Minn Kota electric motor and a single axle galvanized trailer. Valued at an amazing $55,000* this prize package sure will float your boat. Hurry into your local Massey Ferguson dealer today to get it done in the paddock and now on the water with the Work Hard, Play Hard promotion.

CONTACT YOUR LOCAL MASSEY FERGUSON DEALER TODAY *Orders must be by placed by December 24th and installed by 31st December 2020. Visit www.masseyferguson.com.au/WorkHardPlayHard.aspx for full terms and conditions.

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RURAL NEWS // NOVEMBER 3, 2020

36 MACHINERY & PRODUCTS

Ag equipment sector remains positive MARK DANIEL markd@ruralnews.co.nz

NEW ZEALAND’S agricultural equipment sector remains in a positive mood, according to the Tractor and Machinery Association (TAMA), which represents the sector in manufacturing, retailing and distribution. Sales statistics for the year to date (September 30) are down by around 18%, compared with 2019‘s record-breaking year. However, indicators remain positive as New Zealand enters the peak of another growing season. TAMA president Kyle Baxter says despite sales volumes being down in some equipment ranges,

members are confident. He says customers are already discussing their machine requirements for autumn and spring 2021, which was a really encouraging sign. “Everyone has benefited from a mostly favourable winter around the country. This weather was greatly appreciated by many customers in a year that has seen a never-ending list of challenges.” Baxter says one big challenge still facing TAMA members is the continuation of international border restrictions. “Many TAMA members rely on overseas staff to fulfil a broad range of roles within dealerships, manufacturing and tech-

nical support roles,” he says. “With these roles not being able to be filled from overseas during the season, and possibly beyond, TAMA is urging its members to look at other options available.” Baxter says these options include COVID19 government funding for businesses that take on new apprentices or retrain unemployed people from other sectors. A recent TAMA triennial employment survey, released in August, showed the industry currently had 318 apprentices, but needs 176 more. The survey also showed that around 25% of the workforce is likely retire in the next 15 years, while

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TAMA president Kyle Baxter (inset) says despite sales volumes being down members remain confident.

only 32% of staff are aged under 30. “We want to attract more under 30s into our industry to help ensure sound succession plan-

ning,” Baxter says. “Given the huge uptake and integration of new technology into our sector, the job opportunities continue to develop

as quickly as the technology. It’s hugely encouraging to hear from members who have had successes with the new apprenticeship funding,

and I am positive that this success will continue into 2021 and beyond.”

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REGISTRATIONS OF agricultural tractors in Europe reached about 69,000 units in the first six months of 2020. This shows the market is down by more than 12%, when compared to the 2019 result of 78,300 machines. Looking at the statistics in more detail, Germany – one of Europe’s largest markets – recorded 14,872 registrations, a fall of only 2.75%. Meanwhile France saw 11,012 tractor sales, a fall of nearly 19%. Elsewhere, in Italy, the UK and Spain, mar-

kets fell by 18%, 25% and 26% respectively. While much of the fall has been attributed to the Covid situation, CEMA – the European Machinery Association – suggests other factors such as adverse weather conditions, a softening of dairy markets and a continued shift to much larger machines also played a significant part in the situation. While overall registrations were recorded at 89,100 units, some 23,500 of these units were less than 50hp, which are not regarded as agricultural tractors. – Mark Daniel

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RURAL NEWS // NOVEMBER 3, 2020

MACHINERY & PRODUCTS 37

Keeping shearing sheds safe KEVIN THIRKELL

WITH SAFETY at the forefront of all farm activity, there is no better time than now to assess the safety in your shearing shed. Due to the busy nature of activity undertaken in and around shearing sheds, the opportunity for an accident to happen is high. You can minimise the risk of accidents in your shearing shed by reviewing the current safeguards your shearing machinery offers. • Does my shearing plant offer safety cut-out in case of lock-up? • Is my shearing plant isolated from electric shock? • Does my wool press have safety guards? • Is my wool press safe to operate? Injuries that are preventable cost farmers, contractors and the wool and shearing industries money. Due to technology advances, shearing machinery now incorporates more advanced safety features. The extra cost of an upgrade to a higher quality machine is a small price to pay for superior safety in a busy, high-stress work environment. Shearers, contractors and farmers increasingly demand tools that provide them with function but don’t compromise on safety. For example, in the past when there has been a lock-up, the hand piece can spin around at approximately 3,500rpm

– making it an incredibly dangerous and life-threatening weapon – leading to the possibility of serious injuries. A safe and light shearing machine, with the advantage of a downtube isolated from all electrified components, reduces any risk of electric shock. Key features to look for when upgrading your wool press is: ●● Safety: A fully fitted and approved mechanical safety screen and safety device for operator safety. ●● Toughness and durability: For intensive use season after season and ensuring expensive servicing is reduced. ●● Speed: To ensure high yield and efficiency when pressing bales. ●● Ergonomics: Such as a low filling height to avoid stress and strain on an operator’s back. ●● Robotics: High-tech machines offer a fully automatic bale ejection system to help your shearing operation. Heiniger offers innovative, safer solutions for your shearing shed. With the Evo Shearing Plant and TPW Xpress Wool press on the market. There are now few excuses for farmers not to be able to better protect themselves and employees working on their property. For further information, contact your local Heiniger Stockist. • Kevin Thirkell is Heiniger’s New Zealand national sales manager.

HANDPIECE GIVEAWAY Heiniger New Zealand is bringing back its biggest bonus promo in history, back by popular demand. Once again, get a FREE Icon FX or S12 Handpiece with every purchase of four specially marked Evo Shearing Plants from your local Heiniger Stockist. This promo is only available while stocks last.

Due to the busy nature of activity undertaken in and around shearing sheds, the opportunity for an accident to happen is high.

RURAL NEWS // NOVEMBER 3, 2020

38 MACHINERY & PRODUCTS / RURAL TRADER

All smiles tackling hill country A KUBOTA RTV-X1140, the highest horsepower RTV in its class, has been tried and tested by Taranaki farmer Kevin (Smiley) Barrett – who also happens to be the father of three wellknown All Blacks. Barrett, an organic

dairy farmer, farms in a rolling coastal environment in Taranaki. “The X1140 performed exceptionally well,” he says. “I tested it out on a few hills, activated the diff-lock control, took my foot off the accelerator and was surprised at how

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Kevin Barrett is happy how his Kubota RTV-X1140 handles the steep country on his farm.