Rural News 16 November 2021 by Rural News Group

MANAGEMENT

MACHINERY & PRODUCTS

Are terminal sires being utilised enough? PAGE 26

Sustainable battens and outriggers. PAGE 32

ANIMAL HEALTH Dairy herd health and welfare website launched PAGE 29

TO ALL FARMERS, FOR ALL FARMERS NOVEMBER 16, 2021: ISSUE 739

www.ruralnews.co.nz

Mandate meat jabs! PETER BURKE peterb@ruralnews.co.nz

MEAT COMPANIES support Government plans for a clear and simplified risk assessment process to make Covid-19 vaccinations mandatory at their plants. The Meat Industry Association’s (MIA) chief executive Sirma Karapeeva says currently, companies can make Covid-19 vaccination a health and safety requirement at plants. However, this is a difficult and complex process and requires companies to do an assessment of the different risks of vaccinated versus unvaccinated people. “It is critical that all workers are vaccinated to provide a shield against Covid-19, especially for meat processing where workers are working close together for long shifts. We applaud the Government for taking this step,” she told Rural News. Karapeeva says any sort of additional tools that meat companies can use to protect their workers are worthwhile. She says international experience shows meat companies tend to be quite a high risk environment for the spread of Covid and that is why the industry has worked hard to put in place the safety protocols to keep the virus out of the workforce. “We know that China and other countries are looking to protect their own people very robustly and we need to respect that because we are doing the same,” she adds. “While the vaccination mandate is not the silver bullet, it is another layer of protection that we

Meat processors wants the Government to mandate vaccinations for its workforce both for staff safety and to ensure continued market access for its products.

can use to put around our workforce.” Karapeeva notes that Maori and Pasifika people make up a significant portion of the meat industry workforce and these groups are lagging behind in

getting vaccinated. She says processing plants in individual regions are doing a lot of work to facilitate the uptake of the vaccination by working with local health providers, iwi and Maori health

providers to try and overcome that information gap and educate people to help them get vaccinated.” Karapeeva says MIA welcomes the Government’s recognition that having

a fully vaccinated workforce will support continued access to NZ’s global markets and it looks forward to the details on how this will be applied. • Union backs move – p3

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RURAL NEWS // NOVEMBER 16, 2021

NEWS 3 ISSUE 739

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Rural events seek clarity MARK DANIEL markd@ruralnews.co.nz

NEWS ��1-16 AGRIBUSINESS ��18-19 MARKETS �� 20-21 HOUND, EDNA �� 22 CONTACTS �� 22 OPINION ��22-25 MANAGEMENT ��26-27 ANIMAL HEALTH �� 28-29 MACHINERY AND PRODUCTS �� 30-33 RURAL TRADER �� 34-35

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 CONTACTS Editorial: editor@ruralnews.co.nz Advertising material: davef@ruralnews.co.nz Rural News online: www.ruralnews.co.nz Subscriptions: subsrndn@ruralnews.co.nz

WITH THE 90% double vaccinated target for all district health boards (DHBs) not expected to be met until mid-January, at current vaccination rates, pressure continues with the continuing cancellations of A&P shows and field days. Recently, the Southern Field Days, scheduled to take place in early February, was cancelled – joining a long list of local and regional events. Chairman Warren Ross told Rural News the organising committee had to make the agonising decision to cancel the event for the first time in 40 years. “While our hearts said go, our brains said no, as we felt that the timing of the event, with a large contingent of visitors from throughout NZ, would be too great a risk for our local community,” he says. “Given that it would be difficult to comply with Government regulations that could quickly change under the proposed traffic light system and lead to cancellation at the last minute.” Ross also noted that there was a lake of clarity over the likes of vaccine

The rural event industry are looking for greater clarity on vaccination status and vaccination certificates.

statuses, vaccination certificates, the form they would take or how to implement any new regulatory requirements at the point of entry to the event. “This led us to make a decision early, keeping finances in check, rather than paying out for the logistics of the event, with no guarantee that it would be able to take place,” he adds. “At the same time, it also protects our loyal exhibitors from unnecessary costs and allows us to give them a complete refund.” Ross says they were also conscious of local businesses like motels and restaurants, which would have been fully booked out and now have a little more

time to come up with new marketing initiatives. Elsewhere on the regional field days circuit, Northland Field Days secretary Megan Walters says currently her committee is committed to delivering a “fully vaccinated” event in early March. Like others in the event industry, they are also looking for greater clarity on vaccination status and vaccination certificates. “At this stage, we are hoping to deliver a first-class trio of days, and fingers crossed that the Government Covid management strategy all falls into place, but we fully realise that things might change at the drop of a

hat,” Walters told Rural News. The Central Districts Field Days is due to be held in March. Director Henry McLernon raised similar issues. “We are absolutely gutted to hear of Southern Field Days’ decision to cancel the 2022 edition of such a great event,” he told Rural News. “Currently, we are working through several strategies to ensure we can deliver a topnotch event. “We are encouraged by the strong demand by exhibitors for such an event; they realise that the opportunity of face-to-face contact with their customers is an essential part of rural life.”

Union backs compulsory vaxes GET VACCINATED – that’s the message from the National Secretary of the Meat Workers Union to his members. Daryl Carran says the union is quite clear that, as the meat industry is an essential industry, workers should be vaccinated. He says while there is no mandatory requirement for this now, the idea of a mandatory health declaration to this effect would not be a bad thing.

Carran’s comments come as the Ministry for Primary Industries (MPI) works on the details of requiring vaccinations within the primary sector workforce in situations where it will help to safeguard market access. MPI is currently having discussions with industry to frame up what this might mean in practice. There’s currently no legal requirement for mandatory vaccinations for market access purposes. Carran says, from what he’s heard,

vaccination rates for meat industry workers varies from region to region. “The further north in the country you go it would appear the vaccination rates are lower,” he told Rural News. Carran says he’d like to see a significant lift in vaccination rates for Maori and Pasifika workers who form the majority of the workforce in the industry in the North Island. “Having a mandatory vaccination policy is not a bad thing when

you have people working shoulder to shoulder in quite adverse climatic conditions within large or even small factories,” he adds. One of the concerns around Covid vaccinations that Carran raises is being talked about right across the primary sector: That is the risk of NZ products being rejected by a key market – such as China – because workers in a plant are not vaccinated, or worse that there is an outbreak of Covid in a plant. – Peter Burke

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RURAL NEWS // NOVEMBER 16, 2021

4 NEWS MIQ SPOTS ‘BLOODY HARD’ SECURING MIQ spots remain the biggest hurdle to getting overseas workers for the dairy sector. Five months after the Government granted border exceptions for 200 dairy farm workers and their families, just a handful of workers have arrived in the country. Now the dairy sector is pleading for 1500 overseas workers to be allowed into the country and self-quarantine on farms before the start of 2022 season to ease a severe staff shortage. Federated Farmers dairy chair Chris Lewis says a lot of behind-the-scenes work is going on with the Government. He told Rural News that the Ministry for Primary Industries (MPI) and Agriculture Minister Damien O’Connor’s office has asked for more information. “Everyone is working hard behind the scenes on this,” he says. “We have researchers working on our behalf to get additional information. It’s a massive effort.” Lewis says while MPI and O’Connor are working closely with the dairy sector, the biggest hurdle is securing MIQ spots for overseas workers. He points out that only two or three workers have arrived into the country so far – despite the Government granting border border exceptions five months ago for 200 dairy farm workers and their families, comprising 150 herd managers or assistant farm managers and 50 farm assistants. “Without securing MIQ spots, it is bloody hard.” Lewis says it’s hard to say how many workers will be here by the start of the next season. But he points out that with the rapidly changing position, New Zealand’s border could be open by then and the request for 1500 special visas would become obsolete. Earlier this month, DairyNZ, Federated Farmers and Dairy Women’s Network urged the Government to allow 1500 international dairy workers into New Zealand in 2022 to help meet the sector’s workforce shortfall, if borders continue to remain closed. Along with the request for additional international workers, the organisations also support international farm workers being able to quarantine in separate housing on-farm, if fully vaccinated and following Covid-19 safety requirements while in quarantine. – Sudesh Kissun

Nathan Penny believes rampant dairy prices may force Fonterra to cap its farm-gate milk price for this season.

How high will they go? SUDESH KISSUN sudeshk@ruralnews.co.nz

WITH DAIRY prices on the rise, how far can Fonterra go with its forecast milk price rises this season? Fonterra has a substantial consumer business and raw milk is the highest input cost for value added products. A soaring milk price means it can either cap the milk price it pays to farmer suppliers or pass the extra costs for products like cheese, specialty milks and butter to consumers. Westpac senior agri economist Nathan Penny believes rampant dairy prices may force Fonterra to cap its farm-gate milk price for this season. He believes an $8.50/kgMS milk price is getting towards the upper limit of what Fonterra can pay.

“In that sense, Fonterra could cap the milk price to prevent losses in these other businesses,” he says. However, Jarden head of derivatives, Mike McIntyre, points out that other commodity prices like wheat and crude oil are also rising. He thinks Fonterra may be forced to pass on the costs to consumers. “If commodity prices go up, the end product will cost more. We are already seeing prices going up in supermarkets,” he told Rural News. Penny also points out that Fonterra has limited processing capacity for its various products. “In 2013/14 for example, we saw that Fonterra was constrained in product mix choices and therefore not fully able to take advantage of very high whole milk powder prices over that season.” Fonterra last month narrowed

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its forecast farm-gate milk price range to $7.25 to $8.25, with a mid-point of $8/kgMS and issued an earnings guidance of 25-40c/ share for its value added business. Fonterra’s director central portfolio management Bruce Turner told Rural News that the co-operative remains comfortable with its earnings guidance. “While the increase in milk price can put pressure on our input costs, we remain comfortable with our current 2021/22 earnings guidance range of 25-40c/ share. “Regarding processing capacity, as we move through peak milk production months we get more flexibility, which in turn aids product mix decisions,” says Turner. Westpac is forecasting a milk price of $8.50/kgMS for the season; ASB believes the milk price will top $8.75. If achieved, it

will surpass the record milk price of $8.40 in 2013-14. Last week’s Global Dairy Trade auction recorded price rises for six of the seven products on offer. Whole milk powder prices rose 2.7%, its fourth increase in the last five auctions. The jump in prices builds on gains over September and October. Penny expects that ongoing weakness in global dairy production will continue to underpin global dairy prices. New Zealand dairy production over September was down 4% compared to September 2020. “In addition, anecdotes suggest that this production weakness has continued through October, while dairy production in other key exporting regions is similarly soft,” he says. @rural_news facebook.com/ruralnews

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RURAL NEWS // NOVEMBER 16, 2021

NEWS 5

Uncertain times ahead! PETER BURKE peterb@ruralnews.co.nz

NZ SHEEP and beef farmers will likely face different risks to their businesses in the coming years due to the Covid pandemic. Beef+Lamb NZ’s chief economist Andrew Burt says there may be more volatility and risks that farmers will have to manage. He says these will be ones that they haven’t had to think about before or haven’t surfaced for over 20 years. “It may be the case of unravelling the past and creating a new order.” Burt confirms that while prices for meat are high at present, this is somewhat shielding significant rises in on-farm costs. He also warns that inflation could have a negative effect on farm profits. He says the obvious big ticket item that has risen in price is fertiliser. Labour costs are another headwind facing farmers. Burt says there are many factors linked into

“Hurricane Ida, which hit the United States last year, put out of action one of the biggest fertiliser works in the world, which meant that deliveries to all parts of the world stopped.” the sudden rise in fertiliser prices. Shipping is the obvious one with freight rates trebling, but Burt also points to supply chain issues. “Hurricane Ida, which hit the United States last year, put out of action one of the biggest fertiliser works in the world, which meant that deliveries to all parts of the world stopped,” he told Rural News. “There are other plants that have closed because of the spike in the price of natural gas – the energy form used to drive these facilities.” Burt says to add to the problem, China has put limits on the export of key ingredients for fertiliser – namely sulphur – apparently in a bid to hold fertiliser in China

for domestic use. He’s also heard stories about farmers overseas hoarding fertiliser for fear of further shortages and wonders whether this may happen in NZ as well. Meanwhile, high prices for energy in the northern hemisphere winter could potentially affect NZ producers. There are concerns that if energy/ heating prices soar, consumers will not have the cash to buy high end food. “What will happen in the next six months is very hard to predict,” Burt adds. He says in terms of equity in their properties, a significant number of sheep and beef farmers are better off than their dairy counterparts. But he notes there

Sheep and beef farmers may have to manage more volatility and risks in the coming year.

will be some exceptions to this. He predicts that interest rates will rise but says this will not impact overnight and may take time to show on farm balance sheets. As well as the Covid factor, there remains the normal and unpredictable impacts such as weather and the availability of killing space. Burt says every farmer will handle the situation differently but says at this time of uncertainty a cautious approach would be wise.

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RURAL NEWS // NOVEMBER 16, 2021

6 NEWS

Aussie growers want to smash NZ avocado imports SUDESH KISSUN sudeshk@ruralnews.co.nz

AUSTRALIAN GROWERS want their consumers to buy home-grown avocados and ditch imports from across the ditch. A bumper national production has caused a glut in the Australian domestic supply with imported avocados from New Zealand making the situation worse, local growers claim. Avocados Australia chief executive John Tyas told Rural News they want Australian consumers to ask for locally grown avocados in stores. “We support our Australian growers so we want to see Australian avocados in stores,” he says. However, NZ Avocado chief executive Jen Scoular says it has long standing relationships with avocado customers in Australia. “Our exporters are committed to filling their orders and servicing those customer relationships,” she told Rural News. Media reports in Australia say farmers are

dumping avocados as plummeting prices make it unviable to pack and send it to the markets. Last month, Avocados Australia announced that the national avocado production was expected to continue to increase to 170,000 tonnes by 2026, more than double the 2020-21 crop of 78,000 tonnes Calling it ‘the avolanche,’ it claimed Australian avocado growers are able to more than meet demand and there was no need for imported avocados. For New Zealand avocado growers, Australia remains it biggest export market but alternative markets are being developed. Scoular says New Zealand has been exporting avocados to Australia for more than 40 years. She says NZ Avocado exporters have built strong relationships with Australian retailers during the past 40 years. “As the two key country of origin suppliers of avocados to Australia, New Zealand and Australia have had a long standing relationship of open communication and dia-

logue,” Scoular says. “The increasing plantings of avocado trees in Australia has meant that an increase in Australian grown avocado supply has been forecast for many years. “New Zealand has been developing alternative export markets

NZ EXPORTS LAST SEASON New Zealand exported 4.3 million trays, each weighing 5.5kg, of avocados to Australia, of a total crop volume of 7.3 million trays. This season New Zealand is forecasting 2.6 million trays to Australia, of the 7.5 million trays forecast. The remainder of the New Zealand crop will be sold in New Zealand and exported to ten other countries across Asia and the Pacific – including China, South Korea, Thailand and India. NZ Avocado chief executive Jen Scoular says NZ avocado exports to Australia are 40% down on last season’s volume, while avocado production out of Western Australia is 324% up on last season’s volume. “NZ has tripled the volume of avocado exports to markets outside of Australia in 2021,” she says. Avocados Australia chief executive John Tyas says his growers want to see an end to NZ imports.

across Asia for the past 10 years to reduce the reliance on Australia as our main export market,” Scoular adds But Australian grow-

ers want to see an end to imports. Tyas says it is supporting the Australian avocado growers. “There is not a need for additional imported

product to supply our domestic market this year. And this trend is likely to continue as, according to our forecast, production is expected to

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double over the next five years.” Tyas admits that the current glut has been caused by an increased supply of avocados by Australian growers and not by imports from NZ. “Growers planted a

significant number of trees to meet demand and now they are in production this year,” he explains. “We have just reached a level where Australian production can supply the whole country all year round.”

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RURAL NEWS // NOVEMBER 16, 2021

NEWS 7

Sheep researcher looks into methane reduction NIGEL MALTHUS

HOW BREEDING sheep for intestinal parasite resistance or resilience affects their methane emissions is the focus of research currently being completed by a Lincoln University scholarship winner. Kayleigh Forbes is the inaugural recipient of the John Reeves Memorial scholarship, awarded to a student at Lincoln doing an honours dissertation in sheep genetics. The $2,000 scholarship has been established by the Reeves family, in honour of John Reeves, a pioneering Romney breeder who spearheaded efforts to breed for facial eczema resistance. He died after an accident on farm, still working at the age of 87, in 2019. His son Alistair now runs the family farm, Waimai Romney on the rugged Waikato west coast. He says Waimai Romney wanted to put something back into young people who were willing to follow genetics and try something different. Forbes’ research is looking at the difference between resistance to parasites, in which animals are less likely to get infected, and resilience, in which they are infected but manage to keep eating and producing liveweight – and how that affects their methane emissions. For the study, she has been measuring methane output of rams on the Reeves farm, where the flock has been bred for resistance to the point where the ewes do not need to be drenched for worms. “From an epidemiological perspective, resistance is more desirable because they leave less eggs on the pasture for other animals to come through and ingest,” Forbes told Rural News. “But that limits their production. What

Kayleigh Forbes uses AgResearch’s trailer-mounted Portable Accumulation Chamber to measure methane emissions from sheep on the Waimai Romney farm, with the help of AgResearch senior technician Gerrard Pile. SUPPLIED

I’ve found is that their feed intake reduces during their immune response, and also their production level drops. “Whereas with the resilient animals when they’re infected, they keep up their intake and their production, so they end up having higher liveweight gains.” However, feed intake is correlated with how much methane they produce, so it is not necessarily a good thing that resilient animals are still eating, Forbes adds. While waiting for some data analysis before completing the project, she says the work could help produce a

New Zealand-wide dataset to predict how breeding for resistance or resilience has on the overall metabolic efficiency of rams. “We’re trying to reduce emissions overall and it will give as an idea of how we’re going with that.” Reeves says the scholarship was established in his father’s memory because he was a man who loved and supported young people and believed in the value of academia and research. He says that when his father and others decided to tackle facial eczema their work brought no benefit for 20 years but they persevered because they

believed it was the right thing to do. “He understood that genetics could be a panacea for a lot of problems. He was happy to pursue those things and 30-odd years later, where we are today with our sheep breeding is a real tribute to people like my father who just went off and did it.” Reeves says the productivity of the New Zealand sheep flock over the last 15 years has seen exceptional gains, producing the same amount of meat off one-third fewer ewes, despite going onto harder country while cows have taken over the better land. “It’s a really exciting time for young

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people like Kayleigh to be a problem-solver within the sheep industry around genetics. Can we solve the problem around methane, without having to drop productivity, without having to drop numbers, without having to drop profitability? Wouldn’t that be wonderful?” Forbes expects to submit her dissertation next month and will duly graduate with a bachelor’s degree in agricultural science, with Honours. She will then take up a position as genetics technician on a Landcorp (Pamu) farm at Reporoa.

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8 NEWS

Zespri adapts to cope with labour shortages PETER BURKE peterb@ruralnews.co.nz

ZESPRI IS ringing in major changes in its systems to deal with an expected shortfall of 6500 workers to pick this season’s kiwifruit crop. Chief executive Dan Mathieson says the shortfall in workers is 2000 more than a year ago due to the Covid pandemic. He says the forecast is based on the reduced number of backpackers in the country, which normally make up about a quarter of the total workforce. Mathieson says the problem could get worse depending on Covid and whether there is widespread absenteeism in the workforce, which has been a problem in the past and is a concern this season. “We are also dealing with a situation with a larger crop as more orchards come into full production. With this and the lack of workers there is a risk to our ability to fully deliver the season,” he told Rural News. “With our ambitious growth targets, we need approximately 1000 additional

“We are also dealing with a situation with a larger crop as more orchards come into full production.” workers every year for the next five years.” Mathieson says that in order to pick and pack this season’s crop, Zespri has had to make significant ‘operational’ changes. These include a plan to try streamline the process and reduce the labour input required. This involves bringing forward additional volumes of SunGold kiwifruit ahead of demand. There will also be a shift towards greater bulk packaging, which according to chief global supply officer, Alastair Hulbert, will create efficiencies and make better use of the availability of capacity and workforce. “Using bulk packing requires a little over 50% of the labour required to pack layered packs and has a direct impact on supplier packing capacity.” Hulbert says they are also making adjustments to the taste and matu-

rity clearance systems for SunGold that will enable fruit to get picked earlier. He says there will also be changes to the requirements around size 39 Zespri SunGold fruit. Finally, Zespri is reviewing its shipping schedule to see whether it is possible to increase shipping volumes earlier in the season in a bid to reduce cool-store capacity restraints. Hulbert says the shipping problems that occurred last season are expected to continue in 2022.

Zespri is expecting a shortfall of 6500 workers to pick this season’s kiwifruit crop.

FEWER NEW PLANTINGS ZESPRI HAS halved the amount of SunGold kiwifruit licenses that people can bid for this season. Chairman Bruce Cameron says it had originally planned to release 700 hectares of SunGold licenses but has now cut this to 350 hectares. He says there will be 350 hectares of Ruby Red kiwifruit also up for tender but says the Zespri board has decided not to release any Organic SunGold kiwifruit this

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season. Cameron says these decisions have been the subject of extensive consideration by Zespri over recent months, and are based around ensuring sustainable value for growers, through management of supply volumes aligned with projected future market demand. “The plan for the 2022 licence release reflects our focus on ensuring we can provide strong

and sustainable returns to growers by ensuring demand continues to exceed supply,” he told Rural News. “We remain incredibly confident in the market outlook, with global demand for our fruit continuing to strengthen, along with the value we are able to capture for growers, if we maintain our approach of building market demand ahead of supply.” Cameron says the kiwifruit

industry is confronted by a range of challenges, primarily driven by Covid-19 which continues to have an impact across their value and supply chain. He says an interim slowdown in licence release allows Zespri to address this, while ensuring they have some time to watch the rapidly evolving Covid-19 situation unfold, including the reopening of New Zealand to the world.

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RURAL NEWS // NOVEMBER 16, 2021

NEWS 9 the traditional

Festive Feast Fonterra fund chairman John Sherwin with former Agriculture Minister Nathan Guy.

Lukewarm response from investors SUDESH KISSUN sudeshk@ruralnews.co.nz

FONTERRA UNIT holders have given a lukewarm response to the co-op’s proposed capital structure. They are disappointed that Fonterra rejected their recommendation that the fund be sold to unit holders at fair value. However, they’ve welcomed the proposal to cap the overall size of the fund at 10% of total Fonterra shares on issue rather than at the current size of around 6.7%. In a letter to unit holders sent last week, fund chairman John Sherwin says capping the fund at 10% goes part way to addressing the sizerelated concerns. “Subject to the Fonterra board’s approval, the amended proposal provides the scope for the fund to be increased in size at a suitable time in the future to address the liquidity and other sizerelated considerations,” he says. “While it is disappointing that no progress has been made on the buyback recommendation, the subcommittee welcomes Fonterra’s decision to modify its recommendation around the capping of the fund.” Fonterra’s farmer shareholders will vote on the new capital structure next month. Details will be released and mailed to farmers this week, then

KEY CHANGES TO CAPITAL STRUCTURE ●

●

The introduction of thresholds to support the alignment of share ownership and milk supply, and reflect Fonterra’s intention that the total number of shares on issue in the co-op is within +/- 15% of total milk supply, and that the proportion of shares held by ceased suppliers is less than 25% of the shares in the co-op. The way dry shares are allocated to associated shareholders (sharemilkers, contract milkers and farm lessors) has been simplified to make it easier for them to apply to hold dry shares. The overall limit on the size of the Fund has been reduced from 20% to 10% of total shares on issue, rather than having a total ban on any further shares being exchanged into units.

voting starts on November 19. A special meeting will follow Fonterra’s annual general meeting on December 9 for the vote. The proposal requires 75% support among voting shareholders to pass. The proposal has already passed one hurdle – the requirement of a 50% yes vote by the Fonterra Co-operative Council (the old Shareholders Council). Fonterra chairman Peter McBride says the council has already voted 92% in support of the recommended changes. The co-operative has made several changes to the capital structure proposal put forward in September. The future of the fund has been a key issue. McBride says the overall limit on the size of the fund has been reduced

from 20% to 10% of total shares on issue, rather than having a total ban on any further shares being exchanged into units. “This recognises that the fund size, which is currently around 6.7% of total shares on issue, could change from time to time subject to the overall limit,” McBride claims. “Shares will still not be able to be exchanged into units on a day-to-day basis, and the board retains its current rights to regulate this process.” The fund, capped at $500m, has been a disappointment for investors who paid for units in return for dividends. Poor investment decisions by Fonterra and a lack of earnings have resulted in disappointing investment returns. @rural_news facebook.com/ruralnews

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RURAL NEWS // NOVEMBER 16, 2021

10 NEWS

Resourcing issue for rural police JESSICA MARSHALL jessica@ruralnews.co.nz

A NEW report from the Independent Police Conduct Authority (IPCA) has revealed major issues in the resourcing of small community police stations. The report, entitled ‘Thematic Review – Policing in small communities’, was released at the beginning of the month and makes 41 recommendations on how New Zealand Police can improve conditions for small community officers. It identified 12 main

issues faced by officers in small communities after interviews with officers and community members in 12 small communities out of the 94 in New Zealand that have a one-or two-person police station. Communities studied in the review included Kohukohu, Rawene, Hikurangi, Great Barrier Island, Coromandel, Piopio, Tolaga Bay, Kotemaori, Murchison, Chatham Islands, Tuatapere, and Stewart Island. One issue identified early in the report is that of support from specialist officers for critical inci-

dents and serious offence investigations. It found that while many officers generally receive specialist investigative support, there were some who complained of a lack of support in certain types of serious investigations. “…some officers complained that, apart from the specialist areas of Adult Sexual Assault and Child Protection, staffing shortages in the Criminal Investigation Branch (CIB) mean they are increasingly dealing with all other serious crime themselves,” the

2022 Notice of Elections and Call for Remits Beef + Lamb New Zealand Ltd (B+LNZ) give notice that nominations are now open for B+LNZ Directors. Written remits for the 2022 Annual Meeting are now being accepted. Under section 42 of the B+LNZ constitution, two electoral district directors will retire by rotation at the annual meeting. This year, Scott Gower (Western North Island) and Nicky Hyslop (Central South Island) must retire by rotation but may stand for re-election. Scott Gower and Nicky Hyslop have both indicated they will be seeking re-election in 2022. Nominations are being called to fill two Board of Director vacancies, one for each of the following electoral districts: • Western North Island (WNI) • Central South Island (CSI) The successful candidates for these director positions will also be appointed to the Board of Directors for the New Zealand Meat Board. Remits are called for under section 12 of the Second Schedule: Proceedings at Meetings of the B+LNZ constitution. Remits are a matter that the proposing farmers are raising for discussion and resolution at the annual meeting. All nominations and written remits must be made on the official forms. The official forms and information regarding the elections are available by: • www.electionz.com/BLNZ2022R • emailing iro@electionz.com • phoning 0800 666 035 Remit forms are also available from B+LNZ at 0800 233 352 or enquiries@beeflambnz.com. All nominations and written remits must be received by the Returning Officer by 5pm on Friday 10 December 2021.

Board of Directors and Annual Meeting Resolutions and Remits Voting for the B+LNZ Board, annual meeting resolutions and remits (if any) will all be conducted at the same time. Voting will be conducted by postal and internet voting, with voting papers being posted to all farmers on the B+LNZ electoral roll. The mailout of the voting packs is expected to be on Monday 14 February 2022. B+LNZ Board elections will close on election day and postal and electronic voting for company resolution and remits will close on the same date, Friday 18 March 2022 at 2pm. Farmers can vote in person on company resolutions and remits only, at the Annual Meeting on Thursday 24 March 2022. To be eligible to vote in the B+LNZ director elections and for annual meeting remits (if any), a livestock farmer must, on 30 June 2021, have owned at least 250 sheep, or 50 beef cattle, or 100 dairy cattle. Voters must farm within the respective electorate, be on the B+LNZ electoral roll and meet the minimum livestock threshold to be eligible to vote for the Board of Directors. To be eligible to vote for the annual meeting resolutions, farmers must be on the B+LNZ electoral roll and are not required to meet the minimum stock numbers stated above. To check if you are on the electoral roll please contact B+LNZ on 0800 233 352. The electoral roll will close at 5pm on Friday 21 January 2022. A copy of the roll for is also available for inspection at the office of Beef + Lamb New Zealand Ltd, level 4, Wellington Chambers, 154 Featherston Street, Wellington 6011. All queries regarding B+LNZ elections should be directed to the Returning Officer on 0800 666 035. All queries regarding annual meeting remits should be directed to B+LNZ Chief Operating Officer, Cros Spooner, on 0800 233 352. Warwick Lampp Returning Officer – Beef + Lamb New Zealand Ltd PO Box 3138, Christchurch 8140 iro@electionz.com, 0800 666 035

A new IPCA report has revealed major issues in the resourcing of small community police stations.

report reads. Mike McRandle, vicepresident of the Police Association and a former rural police officer, says small community and rural police officers have a significant role in their communities and generally officers he was aware of received the support they required. “However, at times it can be challenging for whatever reason, for staffing or for commitments – people are busy doing something else – to actually get people quickly to them to support them with some of those more serious-type of incidents,” he told Rural News. Meanwhile, New Zealand Police say the varied nature of a small community policing role means officers in those areas may have to deal with those specialist areas of policing on occasion. “The nature of policing in a rural community means the role of a rural officer will never be black and white and from time to time they will come across incidents that require specialist services,” says Inspector Paul Carpenter, Rural Policing Enhancement Project (RPEP) lead for New Zealand Police. He adds that the

RWNZ BACKS REPORT RURAL WOMEN New Zealand (RWNZ) says it welcomes the recommendations of the IPCA report. President Gill Naylor says the organisation particularly welcomed the recommendations surrounding support for officers, recruitment practice and better resource planning. “RWNZ is pleased to see a recommendation that there be better resource planning and we would like to see more police officers in rural New Zealand as part of that plan,” Naylor says. She says an increase to the number of officers in rural community will help the challenges faced by those officers within them, such as isolation, long distances between stations, time to travel to callouts, unreliable connectivity and being sole responders to callouts. “More rural-based officers would alleviate these issues by being there to support their colleagues and building safer rural communities.” She says, all-up, the IPCA report is a great resource and RWNZ looks forward to seeing the 41 recommendations within it implemented.

RPEP, which was set up in February, will be looking at rural training requirements and deployment and support functions from specialist workgroups as part of the project. Another issue tackled within the report was that of burnout among officers. It said that the 24/7 nature of a rural policing role, along with constant scrutiny from the community, had the potential to create feelings of overwork and burnout, especially within on-person stations.

“Some of the officers we spoke to were concerned about workload and burnout, and the lack of adequate support, especially in one-person stations,” the report reads. The IPCA argues for a national resourcing model to ensure that all small communities have a sufficient amount of officers and relievers to prevent officer burnout. The issue of burnout among rural officers is something McRandle says the Police Association are well aware of. “When you’re in a

rural environment, it’s a little bit like living in a fishbowl. Everybody knows you, you might not know everybody, in time you probably will know everybody or just about, depending on how long you’re there and your time is often never your own. The challenge of having downtime is very real and it’s hard to get that downtime and when you’re on leave, you need to be on leave. “Anything we can do to make sure that the relief is available to staff is critical, particularly when they need to take a break, or they need to take some leave, because you will accrue annual leave and you need to have some rest, you need to keep yourself well so you can do your job,” he says. McRandle adds that the Police Association supports the recommendations made in the report. The findings in the IPCA report are being addressed by New Zealand Police’s RPEP. IPCA says it has agreed to monitor the progress of that project and the Police’s implementation of recommendations from the RPEP and the recommendations made in the IPCA report.

RURAL NEWS // NOVEMBER 16, 2021

NEWS 11

ASB sings similar tune DAVID ANDERSON

ASB HAS joined a large chorus of banks by picking a record dairy season and strong meat prices for the year ahead. However, the bank’s latest Farmshed Report also warns that while the near term looks good for dairy, beef and lamb, the outlook is more mixed for other key agri exports. It also highlights the challenges the sector is facing – including labour shortages, rising input costs, higher interest rates and stretched shipping capacity. ASB has lifted its milk price forecast to $8.75 kgMS for the 2021/22 season in recent weeks. It says with dairy markets slowing over winter, they have now turned around. “The supply response we expected to relieve some of the pressure on prices looks unlikely to materialise in the near term,” the bank says. “It’s early, but our forecast would represent the highest milk price since Fonterra’s founding.” Meanwhile, it says meat prices are also in good shape and most commodity prices are still on the rise. “Lamb prices burst through the record-breaking $9 mark during August and have continued to advance further. Beef prices aren’t quite there yet, but have also notched up sizeable yearon-year gains.” The bank points out

that its ASB Commodities Index reached an alltime NZ dollar high at the beginning of October and has continued to move higher from there. “However, the most dramatic gains in commodity prices have been outside the agri-sector entirely. Energy prices have surged, with oil prices now up more than 70% on a year ago.” ASB says ‘labour pains’ and stretched shipping capacity remain big themes for the agri-sector. “Rather than the gradual return to normality that many hoped for, pandemic-era disruption continues to roil both the labour market and the logistics sector,” the report adds. “The combo of strong commodity prices, surging freight costs and lofty wage pressures mean we now expect inflation to reach close to 6% towards the end of 2021.” ASB says strong inflation and a tight labour market are a recipe for higher interest rates. It says the RBNZ has already lifted the OCR for the first time in seven years and further hikes look to be on the cards. “Our research suggests that meat and dairy are proving relatively resilient to freight disruption, while price gains should be sufficient to offset the impact of higher costs,” the report concludes. “For some other commodities – seafood, forestry, wine and some

horticultural products – shipping challenges are proving to be more of an issue, and prices haven’t risen all that much, or have even fallen.”

ASB has lifted its milk price forecast to $8.75 kgMS for the 2021/22 season.

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RURAL NEWS // NOVEMBER 16, 2021

12 NEWS

Splitting the difference! LEO ARGENT

BEEF+LAMB NZ is calling on the Government to use the split gas approach in its recently announced climate action plan. The split gas approach takes into consideration the different durations of greenhouse gases in the atmosphere, and their relative potency, to provide a more accurate and more easily understood picture of the complexities of the subject. As a greenhouse gas, methane is 28 times more potent on a per kilogram basis than carbon dioxide. However, methane also has a far shorter halflife of 9-12 years versus 100-120 for C02. This means short term reductions in methane emissions will have a faster long-term reduction in overall warming effect – so long as methane emission remains neutral, or reductions outstrip the rate at which it is added to the atmosphere. BLNZ chief executive Sam McIvor says higher methane reduction targets must not disadvantage sectors that have already made significant cuts and are already being asked for a disproportionately high share – such as

HOW IT WORKS

LEO ARGENT

PLANTS AND grass photosynthesize and store carbon in their leaves. When the plants are eaten by cattle the carbon is converted into methane, which the animals belch out. After that 10-12 years the methane breaks back down into CO2 – but as recycled carbon. This is then photosynthesized by the plants, thus restarting the natural cycle again.

the red meat sector. He labels the Government’s announcements and reporting of current climate plans as opaque and, at points, too demanding on farmers. “New Zealand’s farmers are the best in the world at responding to change. Like all sectors they have to work towards reducing emissions – all we’re asking is that they’re only being asked to do what’s fair,” McIvor explains. “Without proper reporting of warming, it’s unclear what each sector is responsible for

DAIRYNZ WAS KEEN for Climate Change Minister James Shaw to go into bat for Kiwi dairy farmers and the split gas approach at the recent COP26. The dairy industry good body wanted Shaw to share NZ’s story as the world’s lowest emissions dairy milk producer at the 13-day conference in Glasgow. “We hope the Government will still strongly advocate for split gas and advanced metrics like GWP*,” says chief executive Dr Tim Mackle.

“We hope the Government will still strongly advocate for split gas and advanced metrics like GWP*.” Sam McIvor says the misconception that methane reduction targets are ‘letting agriculture off the hook’ needs to be cleared up.

and the public doesn’t understand. We need to address this misconception that methane reduction targets are ‘letting agriculture off the hook’.” McIvor notes that while there has been attention on buying offsets through the planting of forests overseas, serious questions remain about what the increased targets mean domestically. “We would be very concerned if the new NDC meant the Government needed to rely even

SHEEP JETTER

more heavily on forestry offsetting within New Zealand. We are already losing too much productive sheep and beef farmland to carbon farming with devastating effects on rural communities,” he adds. “Fossil fuel emitters shouldn’t be able to just plant their way out of jail, particularly not at the expense of the most sustainable meat production systems in the world. There instead needs to be actual reductions in warming.”

McIvor says the sheep and beef sector has reduced its absolute emissions by more than 30% since 1990 and that total methane emissions from all agriculture have been stable for the last decade. “There needs to be recognition of the progress made – we shouldn’t be asking sectors that have already done the heavy lifting to pick up more to offset a lack of progress in other areas.” @rural_news facebook.com/ruralnews

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He claims the current metric used internationally, GWP100, overstates the warming impact of methane emissions by three to four times, when emissions are stable. “Agriculture’s methane emissions have stabilised in New Zealand, so they are not causing additional global warming; any reductions will contribute to less warming. On the other hand, CO2 emissions continue to add to warming until emissions reach net-zero,” Mackle explains A split gas approach highlights the difference between short and long-lived gases and their individual impact on warming. Mackle says all sectors – not just agriculture – need to pull their weight. “We want to see New Zealand show real leadership on the world stage by strongly advocating for the scientifically-robust approach we have taken to methane,” he adds. “Kiwi dairy farmers are up for continuing to manage emissions and improve efficiency, and on-farm work is underway nationwide, but they can’t be singled out as the only sector that needs to take action.” Mackle says it is important that New Zealanders don’t feel our agriculture sector is not pulling its weight on the world stage. “We want to see other nations also legislating specific methane targets and following New Zealand’s lead.” He adds that the country’s split gas approach is backed up by a world-first climate action partnership – He Waka Eke Noa – to reduce agricultural emissions, comprising the primary sector, government and iwi. COP26 included an agreement to reduce methane by 30% by 2030. Mackle says while the dairy sector is supportive of reducing global methane, a distinction needs to be drawn between biogenic and non-biogenic methane. “Not all methane is created equal – biogenic methane is expelled from ruminant animals and fossil fuel methane is from oil and gas exploration.” He says the latter must receive significant focus as a low-hanging fruit, while the NZ dairy sector, partners and government are investing significantly and working together on a long-term R&D plan to address biogenic methane. “We want to highlight that New Zealand agriculture is taking a leading role in climate change research,” Mackle adds. “New Zealand’s best contribution to addressing climate change, particularly in agriculture, is to find solutions all agricultural nations can adopt to address biogenic methane emissions.” Options being researched include methane vaccines and inhibitors, selective breeding of low methane animals and forages and technology uptake.

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RURAL NEWS // NOVEMBER 16, 2021

14 NEWS

Open Country eyes a record milk price SUDESH KISSUN sudeshk@ruralnews.co.nz

THE COUNTRY’S second largest milk processor says it is on track to pay a record milk price to farmer suppliers this

Open Country Dairy chief executive Steve Koekemoer.

season. Open Country Dairy has announced a milk price of $8.41/kgMS for June to September supply. This payment, going into farmers’ bank accounts this month,

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pricing levels. “The timing has been suitable as New Zealand moves through the peak of our milk production and I expect this trend to continue in the short term at least.” He says the standout from the last GDT auction was the 14.1% jump in cheddar prices, which is in line with Open Country’s production mix at this time of the year. Koekemoer says the prospect of a new record milk price will be welcome news for farmers in a challenging year. “With all the disruption through Covid and having to cancel our annual Christmas functions for the first time in our company’s history, I am sure this is a welcome gift for all our farmers.” He points out that Open Country has also increased the settlement periods further out “a bit more conservatively” but will continue to assess closer to the time. Open Country suppliers receive full payment for milk in four instalments during the season.

ANOTHER RECORD OPEN COUNTRY Dairy is also on track to break its monthly shipping record this month – despite disruptions in the supply chain. Chief executive Steve Koekemoer says the business did plan extremely well to minimise any risks and it has paid off in spades. “It is not easy and a daily grind for our supply chain and logistics teams to keep things on track but the whole Open Country team is committed, working as hard as they can to ensure we deliver the results that you have come to expect.” He also gave an update on Covid vaccinations within the company. Some 88% of the company’s staff are fully vaccinated and it expects to pass the 90% milestone within the next week. “It has been a great effort across all sites as we look to protect our people, their families and the company.”

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matches the previous record milk price set in 2013-14 season. For the October to November period, Open Country has announced a forecast milk price range of $8.45 to $8.75/kgMS. “I am confident at this point that we will deliver within this range, which will mark a new payout record,” says chief executive Steve Koekemoer. Dairy prices have continued to strengthen in recent months. Whole milk powder prices rose 2.7% in the last Global Dairy Trade auction, its fourth increase in the last five auctions. The jump in prices builds on gains over September and October. Overall, WMP prices have lifted 10% since August and sit 30% or more above year ago levels. Cheese was the biggest winner in the last auction, jumping 14%. Koekemoer says buyers outside of China have resumed their activity, providing support and confidence at current

Read us until the cows come home!

www.ruralnews.co.nz

RURAL NEWS // NOVEMBER 16, 2021

NEWS 15

Keeping up with the Joneses NIGEL MALTHUS

Matt and Tracey Jones with their milking flock on their farm at Kirwee, in Canterbury.

industry. Matt Jones, who is also the man behind converting the former Winchmore Research Station near Ashburton into an agriculture training institute in 2019, says dairy sheep are 50% to 70% better for the environment than “our bovine friends.” The February open day attracted about 300 people, many of them sheep and arable farmers looking for alternative opportunities or industry people wanting to just see what was going on, he says. “And about a third were dairy farmers who were looking at alternatives because they are

GENETIC GAINS A SURVEY conducted just before Covid counted 22 farms in New Zealand milking sheep, with animals averaging 57kg milk solids from 220 litres in a lactation period. Matt Jones now has animals through embryo importation whose dams have done 180MS and 1000l a lactation. “That’s the significant growth and potential that we’ve actually got as an industry, because we are starting from a really low base of genetics.”

starting to get restricted in the way that they intensively farm their operations.” The Joneses run about 600 ewes on a 48ha milking platform with about another 300ha providing feed support.

With another sheep-milking pioneer, Keith Neylon of Blue River Dairy, Southland, the Joneses are looking at setting up a farmer’s co-op to help give others a start in the industry. “The genetic base was very small. Our ability to really stretch those genetics and develop the animals is really high,” says Jones. “And New Zealand farmers are a really good at grass-feeding animals, driving production, and cost-effective farming.”

They operate a hybrid system with pastures of predominantly lucerne, red clover, or a clover, plantains and chicory mix, plus a daily ration mix of lucerne silage with added grains and minerals.

They start lambing the main herd on July 25, and separate the lambs at four days. The lambs go onto ad-lib milk from automatic feeders (which mix milk from powder on demand and serve it

semen from Europe to improve the stock. He has used Lacaunes from Southern France – the breed most commonly used for roquefort cheese production – and has also turned to a breed from the Pyrenees called Manech tête rousse. “That comes off the mountains, so it’s a lot hardier. It’s a little bit smaller and it milks extremely well. “But the East Friesian is the engine room and we need to build an animal around that. “So the Lacaune gives us some really nice udder conformation, good teat placement, fast letdown during milking. But it is a soft animal, it’s not born with much wool, has feet issues as an East Friesian does. “So the Manech is starting to give us some hardiness and a bit of vigour in handling the different weather conditions and extremes that we have.” The breeding effort is already bearing fruit. Jones says his flock is very young, made up of 40% to 45% hoggets, 40% second lactation, and the rest mixed-age ewes. But the hoggets are already out-milking the old ewes. “That’s just genetics. Really we’re starting to move that needle.” @rural_news facebook.com/ruralnews

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BREEDING THE best dairy sheep for South Island conditions while developing the markets and processing capacity to support others into the industry are the twin goals of Canterbury sheep milking pioneers Matt and Tracey Jones. They have been milking sheep only since 2019 but are already selling their own cheeses under the Jones Family Farm brand and are about to add fresh bottled milk to the range. They are also forging ahead with expansion plans. As processors, they already collect milk from five other sheep milk producers and hope one day to service the whole South Island. Meanwhile, their Sabelle brand range of sheep milk-based skin and body care products has won a place among the finalists of this year’s prestigious Champion Canterbury Awards. Matt and Tracey’s farm and small processing factory are near Kirwee, on the main road from Christchurch to the West Coast. They began milking sheep only in August 2019, and only in February this year held an open day on the farm as a way of publicly introducing themselves to the

warm) until about 20 to 25 days, with muesli and lucerne silage also available to them. Milking is currently twice a day through a herringbone shed with 12 sets of cups a side. “We have in-line meters and monitor the ID tags, to measure performance every day, because this is sort of a pilot farm that we operate here,” says Jones. “Everything’s always been fully recorded for the last 10 years, but it wasn’t until February this year that we put our hand up and said to everybody what we were doing, on a public basis.” Jones is putting a lot of work into breeding “that South Island animal that can handle our environment.” “It’s got to have good feet, it’s got to be able to walk. It’s got to have a long lactation. It’s got to handle the climate and give us a lamb-and-a-half or a lamb-and-three-quarters. We don’t want triplets and quads all the time.” He says New Zealand’s milking sheep stock has come from a very small base of East Friesians – just nine ewes and six rams that arrived in 1996. He says East Friesians are a soft breed with soft feet. But he has been importing embryos and

RURAL NEWS // NOVEMBER 16, 2021

16 NEWS

The best job in NZ agriculture! SUDESH KISSUN sudeshk@ruralnews.co.nz

NEWLY-APPOINTED CHIEF executive of Beef + Lamb New Zealand, Kit

Arkwright, says he has landed the best job in the agriculture sector. He says not only will he be leading a talented team, but that his job will

be promoting the best food known to mankind – NZ grass-fed beef and lamb. “It doesn’t get any better than that,”

Arkwright told Rural News. “Maybe I’m a bit biased but I really think that I have landed the best job in NZ agriculture.”

Kit Arkwright reckons he has landed the best job in the agriculture sector.

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“But we also know roughly 9 out of every 10 Kiwi households are tucking into delicious, succulent, juicy, flavoursome, New Zealandproduced, grass-fed beef and lamb.” Arkwright joined Beef + Lamb four years ago and held the role of general manager marketing. In June, following the retirement of Rod Slater, he has been acting in the top job. Arkwright describes his predecessor as “a titan of the industry”. He says Slater has been a champion for the sector with many successes, including the Iron Maiden campaign involving some of NZ’s top athletes and the Quality Mark assurance accreditation for products. Arkwright says he has “massive shoes to fill” but has absorbed wisdom and insights working with the industry veteran for the past four years. “I will be using the blueprint that he has left behind for me,” he says. Arkwright concedes that that there are challenges facing the sector. He says consumers are looking for information about the food they eat – how it’s produced, its environmental footprint and animal welfare standards employed by farmers. “But we also know roughly 9 out of every 10 Kiwi households are tucking into delicious, succulent, juicy, flavoursome, New Zealand-produced, grassfed beef and lamb,” he says. “And what’s more, they love it. They like eating beef and lamb, they like cooking with it and when they eat it, they feel good about how it

fuels their body.” Arkwright says there is much to be optimistic about and he looks forward to what the future holds. Plant-based alternatives are something B+LNZ is watching. “We are keeping an eye on it as an industry. In my view it is extending its elbows and trying to muscle in,” Arkwright says. “We hear of a huge increase in sales of plantbased protein, but they are starting from a very low base, making these increases look dramatic.” Arkwright believes there will be a place for such alternatives, but consumers will always look for food “closest to being natural whole food, full of nutrients”. Announcing the appointment, B+LNZ chair Fred Hellaby says during his time with the organisation, Arkwright has demonstrated his understanding of the industry and his creative approach to advancing its position in the minds of consumers. “I look forward to working with Kit and his team as we mark a new era for Beef + Lamb New Zealand,” says Hellaby. For his part, Arkwright is looking forward to working with farmers. “One of the best parts of the job is meeting farmers and seeing the passion they bring to farming,” he says. “They are an integral part. Without them the rest of the value chain no longer exists.”

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RURAL NEWS // NOVEMBER 16, 2021

18 AGRIBUSINESS

Growers back wool merger WOOLGROWERS HAVE almost unanimously voted in favour of the proposed merger of Wools of NZ (WNZ) and Primary Wool Co-operative-owned CP Wool (CPW). The new organisation will combine the trading and operating businesses of WNZ and CPW. More than 99.7% of WNZ shareholders and 100% of PWC shareholders voted for the merger, which will see both companies become partners in a new entity called Wools of New Zealand

LP. Around 50% of the total shareholders from both companies voted. “Growers have spoken and backed our vision to build one organisation with strength and scale to make a real difference to New Zealand’s struggling wool industry,” says James Parsons, chair of WNZ. Parsons believes the strong result, validates the decision to consolidate the sector and better link the supply chain from the grower through to the consumer. He claims that by combin-

WNZ chair James Parsons believes the strong vote backs the decision to consolidate the sector and better link the supply chain from the grower through to the consumer.

ing operations, the new entity will provide the scale, focus and shared vision to achieve better outcomes for woolgrowers. “This merger represents the first serious grower-owned consolidation of the industry in many decades. By joining forces, we can deliver on our market vision and ultimately better realise the full potential of wool,” Parsons adds. Richard Young, chair of CPW, which is 100% owned by PWC, says the result lays the founda-

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tions to deliver improved fortunes for the wool sector. “This single growerowned entity will help drive our shift from wool as a raw commodity to grower-owned and branded consumer wool products. Ultimately, the development of an integrated supply chain aims to improve returns for our growers.” Young believes the new entity will be able to capture greater value for wool growers through shortened supply chains, while also investing in marketing and sales. “We now have the ability to chart our own destiny as growers and capture greater value. Farmers need two posi-

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tive income streams from sheep. “We must now focus on delivering these better outcomes that we believe this combined strategy will unlock.” The WNZ and PWC boards expect to complete the transaction by 30th November 2021. The new entity will be called Wools of New Zealand LP and transact approximately one third of NZ’s wool clip as well as exporting WNZbranded wool and carpet. “We appreciate and value the support and engagement from shareholders over the past 12 months and look forward to announcing further initiatives in the coming months,” Parsons says.

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RURAL NEWS // NOVEMBER 16, 2021

AGRIBUSINESS 19

Farmlands’ year of transformation JESSICA MARSHALL jessica@ruralnews.co.nz

RURAL RETAILER Farmlands says it is undergoing a transformation period. Chief operating officer Kevin Cooney, who was for a period in 2021 the co-operative’s acting chief executive (Peter Reidie left the position earlier this year, with Tanya Houghton taking up the role in September), says the transformation programme, nicknamed Braveheart, is a “big challenge” for the company. Earlier this month, Farmlands released its annual results which saw the company make an $8.1 million profit on the back of $2.7 billion in gross turnover and $1.1 billion in revenue. “It’s positive to have a profitable outcome, particularly when you consider that we are still transforming the business,” Cooney told Rural News. The key aim of the transformation is to get back to having clarity in the core business and to deliver that clarity more effectively. “It’s all about getting the right products at the right price to the right place or location for our customers,” he says. “That transformation is working, but while the foundations are in place, focus is needed.” He adds that one of the biggest challenges for the company has been its effort to continue to be relevant in the face of big

change. “That’s about asking what role we play in that change and looking at our shareholders and asking how we support them.” One of the biggest challenges for the company is sustainability. In 2019, Farmlands committed to integrating sustainability into its reporting and everything it does. “At that time, we admitted that was going to be a three-to-four-year journey,” Cooney says. He adds that Farmlands was already on that pathway and has since achieved Toitū carbonreduce certification. “We also recognise that we have to hold ourselves to account.” For the 2021 financial year, Cooney says, the company exceeded its goals for carbon reduction and is seeking to develop its sustainability goals further. Farmlands chair Rob Hewett says Covid-19 has proved a disruptor for the business and will continue to be one for the foreseeable future. “Our co-operative generally reacted well to supply chain issues caused by Covid-19 and managed stocks to ensure availability when the products were needed. We strive to continue to do this in these unprecedented times,” Hewett says. He says the board is pleased with how the business has responded to Covid-19. “In particular, I want to acknowledge the frontline staff that continue

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to go above and beyond to add value for our customers.” “Next year, our cooperative turns sixty. It is a timely reminder that we

have served, supplied and supported generations of Kiwi farmers and growers and their businesses,” Hewett adds. “We were created to

disrupt, compete and challenge. Our ambition is to continue to reinvent, to be relevant and to help our customers succeed.”

Farmlands chief operating officer Kevin Cooney.

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RURAL NEWS // NOVEMBER 16, 2021

global agribusiness research analysts sharing market outlooks

20 MARKETS & TRENDS

Rabobank supports clients from farm to fork in

COUNTRIES

100 000

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farmers to connect Content supplied by Rabobank - Growing New Zealand Together with worldwide , a Better

Slow start to new season Dairy

SUPPLY PRESSURES are continuing to provide support to commodity prices. Most of the dairy complex saw prices lift across the month of October, with milk powder prices performing best. Further upside in commodity markets cannot be ruled out, as a slow start to the Oceania season coupled with sluggish production in the northern hemisphere has buyers on high alert. Milk production for September in New Zealand was behind last year by -4.3% on a tonnage basis (or -4% YOY on a kgMS basis), pulling milk production for the season to September lower by 3.5% YOY. October brings peak milk collections and RaboResearch anticipates the weaker supply trend will

continue. Full-year production is now likely to be in negative territory.

Beef

THE NORTH Island bull price is holding firm as the new season gets underway. The schedule contin-

ues to track well ahead of the five-year average, with the North Island bull price sitting NZ$ 1.20/kg cwt ahead of the five-year average in the last week of October. The South Island bull price at the end of October was sitting slightly behind the

North Island on NZ$ 6.15/ kg cwt. The bobby calf kill for the 2021 season is back 1.5% on the previous season, despite more cows being retained. The cow kill is back around 1% compared to the 2020 season due to farmers choosing to retain more

cows to capitalise on the high milk price forecasts. Although there is a strong beef schedule, anecdotally we understand that there are fewer 100kg calf contracts available this spring, making it unclear how many calves will be available for future beef

supply. The outlook for farmgate pricing is positive, however the strong NZ/ US dollar cross is likely putting pressure on exporter margins. Rabobank anticipates farmgate beef pricing to remain elevated through to

December due to strong demand from key markets and ongoing lower global beef supply.

Sheepmeat

THERE WAS a small lift in New Zealand sheepmeat exports for the 2020/2021 season (+

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RURAL NEWS // NOVEMBER 16, 2021

COUNTRIES

Content supplied by Rabobank - Growing a Better New Zealand Together 0.55%) compared to the 2019/2020 season. This was despite Covid-19 continuing to cause disruptions across the supply chain and in key markets throughout the 2020/2021 season. A significant decline in exports into New Zealand’s second largest market, the EU-27 countries, has been offset

by growth into China (largest market), and into the US (fourth largest market). The UK was New Zealand’s third largest export destination for sheepmeat in the 2020/2021 season. Lamb prices have slowed down, but remain firm. The slow, cold start to spring in many areas of

New Zealand is likely to result in weaning dates being pushed two to three weeks back. This delay could help to keep pricing elevated as processors compete for limited lamb supply, however, a late influx of lambs could then cause processing delays in December. RaboRe-

MARKETS & TRENDS 21

search anticipates farmgate lamb pricing will remain elevated for the remainder of 2021 due to strong demand from key markets and tighter new season lamb supply.

Exchange rate

THE NZ$ gained 3% over October, with a firm footing above USc 0.71 by

the end of the month. Near certainty of an interest rate rise in the last week of November, together with ongoing inflation concerns that mean another may follow quickstep, or as a double up, has lifted our expectations for the NZ dollar. The mid-October release of New Zealand’s Q3 CPI inflation data at a much faster than expected rate (4.9% YOY and 2.2% QOQ for the biggest quarterly lift since 2010) triggered the most recent lift in the NZ$ and provided more reason for us

to believe that the RBNZ will lift the cash rate by 50 bps by the end of the year. Rabobank forecasts the NZ$ will trade near to USc 0.71 on a threemonth view and towards USc 0.73 on a ninemonth view.

Farm inputs

RABOBANK EXPECTS prices of fertiliser will remain at least at today’s prices in the run-up to next winter. Of even bigger concern is supply, with challenges growing in the last month. It’s due to these supply

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concerns that we think it is prudent that farmers assess their ordering options for next year’s supplies – if they haven’t done so already. While supply issues are ongoing, we expect demand will continue to act as a floor for high fertiliser prices, even if supply issues ease somewhat. On the agrochemical front, according to Chinese market commentator BAIINFO, Chinese glyphosate suppliers are still not taking new orders, and have not been doing so for the last month.

RURAL NEWS // NOVEMBER 16, 2021

22 OPINION EDITORIAL

EDNA

Don’t COP out! CLIMATE CHANGE Minister James Shaw should gainfully spend his time in MIQ – following his attendance at the recent COP26 in Glasgow – getting his head around how to better promote NZ’s world leading split gas approach. He does not have to look too far for advice and guidance on the topic. Both Beef+Lamb NZ and DairyNZ have all the research and information that he needs. A split gas approach highlights the difference between short and long-lived gases and their individual impact on warming. This approach takes into consideration the different durations of greenhouse gases in the atmosphere, and their relative potency, to provide a more accurate and more easily understood picture of the complexities of the subject. As a greenhouse gas, methane is 28 times more potent on a per kilogram basis than carbon dioxide. However, methane also has a far shorter half-life of 9-12 years versus 100120 for C02. This means short term reductions in methane emissions will have a faster long-term reduction in overall warming effect – so long as methane emission remains neutral, or reductions outstrip the rate at which it is added to the atmosphere. Agriculture’s methane emissions have stabilised in New Zealand, so they are not causing additional global warming. That means any reductions in our agricultural methane levels will not only needlessly handicap NZ’s economy but also contribute to less warming. Minister Shaw also needs to do more in dispelling the myth – promulgated by the likes of Greenpeace and other fanatics – that the Government is ‘letting agriculture off the hook’ in regard to climate emissions. The reality is that agriculture is the only sector in NZ with a proper emissions reductions plan – the ridiculously named He Waka Eke Noa. This partnership made up of the primary sector, government and iwi, actually includes metrics which reduce ag emissions, not just ‘mitigate’ them by planting trees as other sectors are doing. Critics also conveniently forget that NZ’s sheep and beef sector has reduced its absolute emissions by more than 30% since 1990, while total methane emissions from all agriculture have been stable for the last decade. Shaw missed a trick by not strongly advocating for split gas and an advanced metric like GWP*at Glasgow. Now he has a chance to rectify this for the betterment of both NZ and the planet.

RURALNEWS TO ALL FARMERS, FOR ALL FARMERS

HEAD OFFICE POSTAL ADDRESS: PO Box 331100, Takapuna, Auckland 0740 Phone 09-307 0399 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

“Don’t worry – that’s what the unicorns said to Noah about his arc!”

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

THE HOUND No idea!

Body on the line!

Tainted?

No bull!

THE HOUND suggests that the proposal to reform the country’s three waters network has gone down like a cup of cold sick with councils and ratepayers all over NZ. Despite strong opposition, the three waters reform is now going to be mandatory, with the Government over-riding councils that have voted to ‘opt out.’ It will force councils to hand over local water assets to the new 50/50 iwi-controlled water entities, and taken over by four new, big water authorities. The irony is that that the driver behind the change, Local Government Minister Nanaia Mahuta, has no idea of how rural water supplies actually operate. Apparently, she asked one rural council, after touring its water scheme, if suppliers’ tanks were individually filled by water trucks – rather than from the obvious pipes to the tanks coming from the council’s water scheme. God help us!

Your old mate has heard about rugby players putting their bodies on the line for their country, but not bureaucrats. However, word has it that one of NZ’s key trade negotiators in the recent FTA with the UK caught Covid-19 during a trade trip last month. Vangelis Vitalis, the Ministry of Foreign Affairs and Trade’s deputy secretary for trade and economic issues, accompanied Damien O’Connor on his trip to the United States and EU in October. In a statement, MFAT confirmed that Vitalis had tested positive for Covid-19 while in Europe, it added that he was doublevaccinated, had experienced only mild symptoms to date and was recovering well. Talk about taking one for the team! I’m sure farmers around NZ will join the Hound in wishing Vitalis a speedy recovery and thank him for his efforts in helping secure better access for NZ primary products around the world.

This old mutt has questioned before the objectivity of research produced by Landcare Research on regenerative agriculture (RA). This has again come to light, with a number of taxpayer funded organisations – including Landcare Research – currently releasing a number of ‘research’ projects on RA. The problem is that Landcare has failed to properly deal with the real or perceived conflict of interest of its key researcher involved with this project – soil ecologist Dr Gwen Grelet. The problem for Landcare Research, and the other science organisations associated with this project, is that Grelet happens to be on the board of and ‘science advisor’ to Quorum Sense – a private trust set up by RA proponents to promote this farming practice – which has been granted around $2 million of MPI funding to “undertake RA extension work”.

Your canine crusader has had a wee bit of feedback about the new gender and sexual identity change being included in the next NZ census, which was mentioned in the last column. One astute southern farmer contacted yours truly to say that before submitting his stock numbers to his accountant, the IRD and Stats NZ this year, he thought he’d better survey his livestock to see if any of his cows had under gone a gender change to become bulls or any of his bulls were about to calve and be ready for milking. However, he reports that none of his livestock reported any change to either their sexual or gender identity this year. “It appears only humans are silly enough to embrace such Wokedriven ridiculous stupidly,” the man on the land advises.

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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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 16, 2021

OPINION 23

Let us use tools available! ANDREW HOGGARD

CLIMATE CHANGE Minister James Shaw should not hesitate to sign the global commitment to reduce methane by 30% by 2030. That’s because New Zealand is already playing its part and working hard to become even better. The pledge, signed by more than 100 countries, is a commitment to work together to collectively reduce global anthropogenic methane emissions across all sectors by at least 30% below 2020 levels by 2030. The pledge does not mean that New Zealand must or should increase our current domestic 10% by 2030 biogenic methane reduction target, which already goes well beyond what is required for the GHG to achieve warming neutrality. The pledge is clear in recognising that the mitigation potential in different sectors varies between countries and regions, and that the energy sector has the greatest potential for targeted mitigation by 2030. Oil and gas extraction, processing and distribution accounts for 23% of the world’s methane emissions and coal mining 12 per cent. The United Nations Environment Programme (UNEP) has said with pre-existing technology, a 75% reduction in methane from the oil and gas sector is possible, with 50% able to be done at no net cost. Plugging holes in pipelines to capture fugitive emissions is just common sense. New Zealand has very few leaky gas pipes and has a livestock sector that is leading the world in efficiently producing highly sought after food and fibre. In an effort to reduce emissions, without simply cutting production and shipping the emissions overseas, New Zealand farmers are currently bumping their heads on the ceiling of what is cur-

rently technologically and regulatorily possible. In relation to agriculture, the methane pledge talks about “… abatement of agricultural emissions through technology innovation as well as incentives and partnerships with farmers”. New Zealand has been doing this for years. What we need now is for the Government to provide a framework that enables farmers to get on with implementing some of the new smart GHG reducing technology – some of which has been developed right here in NZ. New Zealand farmers are the most emissions-efficient farmers in the world, and the growing global population is demanding more of the products we export, such as beef, lamb and milk. We should not simply shrink our way to emissions reductions. Our farmers – and taxpayers – are already having to sit back and watch NZ-developed GE ryegrass being trialled in the United States because of unworkable red tape in New Zealand. This cutting edge technology has the potential to deliver reductions in methane and nitrous oxide while also being more resistant to extremes in weather. The methane inhibitor Bovaer (also known as 3NOP) has been given the regulatory green light in Brazil and Chile, but farmers in New Zealand are still waiting. Kiwis hate it when we use our world leading innovation, science and research to develop ground-breaking technology, and then we let someone else in some other country use it to their competitive advantage. We can’t let that happen again. Federated Farmers is also looking forward to seeing the New Zealand Government get some return on the $20 million it invested in the internationally developed ‘methane satellite’ programme it started in 2019.

We should lead the world in agricultural emissions reduction that enables smarter and more sustainable food and fibre production, but not just

in developing the science, but in also using it ourselves. • Andrew Hoggard is national president of Federated Farmers

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RURAL NEWS // NOVEMBER 16, 2021

24 OPINION

NZ free trade deal with UK a boost for red meat sector ANDREW MORRISON

WE’RE PLEASED the recent Agreement in Principle (AIP) has been signed between New Zealand and the United Kingdom.

It will significantly benefit farmers, processors, exporters and the New Zealand economy through greater export revenue once the Free Trade Agreement deal is signed and ratified.

It’s taken some time, and a lot of hard work by B+LNZ on farmers’ behalf, in partnership with the MIA to get to this point. We’re very excited about this important milestone in sub-

stantively concluding the negotiation of an FTA between the two countries. The AIP represents a significant boost for New Zealand’s red meat sector providing improved

access for high-quality New Zealand beef and more certainty for sheepmeat exports. The deal, once signed and ratified, will result in New Zealand beef and sheepmeat exports ini-

Beef+Lamb NZ chair Andrew Morrison says once the deal is signed and ratified it will significantly benefit farmers, processors, exporters and the New Zealand economy.

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tially entering the United Kingdom under a tariff rate quota (TRQ) regime. For beef, this will start at a 12,000 tonne quota, with a zero in quota rate. (compared to the 454 tonne quota we have today). This will save New Zealand farmers around $44 million a year in tariffs each year from year one. The volumes will then rise to 60,000 tonnes over 15 years, after which unlimited quantities of beef will be able to enter the UK tariff and duty free. For the first 10 years, any beef exported over the quota will be subject to full tariffs of up to 70%. For years 11-15, any beef exported over the safeguard will only attract a tariff of 20%. For sheepmeat, New Zealand already have access of 114,000 tonnes through our quotas at the World Trade Organisation. This FTA will give us an additional quota of 35,000 tonnes for the first 4 years, after which it will rise to a further 50,000 tonnes. Like beef, after year 15 we will have tariff and duty free access for unlimited quantities. Co-products – such as processed meats, petfood and offals – will have tariffs eliminated at entry when the deal comes into force, meaning further value can be added to the carcass. This will flow back through processors and into famers’ pockets. Following the UK leaving the EU, New Zealand’s 1300 tonne beef quota was split between the UK and the EU, leaving New Zealand with

only 454 tonnes of beef access into the UK. Outside of this quota, New Zealand beef exports attracted tariffs of up to 70%, meaning virtually no out of quota trade occurred. This announcement is a significant improvement on that access. Improved access will allow companies to deepen and expand relationships, and crucially, compete on a level playing field with our international competitors. It allows British consumers access to best in-season products all year around. Particularly during busy periods such as Easter and Christmas, which fall during the United Kingdom’s offseason meat production window. We understand that there is significant demand for New Zealand beef in the UK. With this new and improved access, companies will be able to build commercial relationships. Previously, beef quota volumes were too small for year round supply meaning this was not possible. Farmers consistently tell us that market access is one of the most important priorities they want Beef + Lamb New Zealand (B+LNZ) to work on. B+LNZ, in collaboration with the Meat Industry Association (MIA), have been part of intensive negotiations over several years to engage with and support the Government on this agreement and we are really pleased with the outcome today. • Andrew Morrison is chair of Beef+Lamb NZ

RURAL NEWS // NOVEMBER 16, 2021

OPINION 25

The selenium conundrum AMANDA NALLY

WHEN LES Hailes was named third form dux at St Kevin’s College in Oamaru in 1944 his parents were aghast. Deeply suspicious of academia, the Balfour farmers instructed the school to encourage their son’s interest in more practical pursuits. When Hailes returned to the family farm it was as a practical young man, who not only absorbed knowledge like a sponge but could also apply it. Little surprise then that he was an early adopter. Having bought his own farm Woodlaw in Western Southland, Hailes began adding selenium to drench as soon as vets recommended it in 1958. Three years later he diversified into wheat farming – an unintended consequence of which

was to strip more selenium from the human diet. However, in a clear example of a mineral is not in the soil, it can’t be in the food; a 1991 comparison showed North American grown wheat had 470mcg of selenium per kilogram, Australian 140mcg while New Zealand wheat averaged 12.5mcg per kilogram. While sheep became healthier, New Zealanders got sicker, with Southlanders the sickest of all. When Hailes’ attempts to get academics to take him seriously failed, he hired me. I suggested that rather than authoring a paper for academia, we instead write a book for every reader. It became Les Hailes life work right up until his death, aged 89, in October 2020. He is

survived by his daughter Angela, and this book Just Cause and Effect: Selenium Deficiency in New Zealand. To claim selenium as a panacea for all illness would be simplistic and we don’t. Every chapter is supported by strong, documented international research on the importance of selenium to the human immune system, our fertility, our resilience, and brain development – to good health. For a mostly chronological flow of how selenium is distorting our

The book became Les Hailes life work, right up until his death.

world, the book can be read from chapters one to 15. But each chapter has been written as a stand-alone. Ill Thrift is an old veterinary diagnosis applied to animals that should have been thriving but weren’t. A puz-

zling “something’s wrong but we can’t quite put our finger on it”. A diagnosis, as Les Hailes says, is totally applicable for our country – and really, it’s the premise for the book. Avian Nation is a short history of New Zealand geography from 120 million years ago which looks at how our selenium-deficient land was formed and examines why that shaped a unique flora and fauna – one in which mammals were conspicuously absent. When the Green Rev-

olution reached New Zealand shores in 1960, record wheat yields grown from Southland were so selenium deficient the effect on human health was immediate. Cot death rose to epidemic proportions, before ebbing, in a rhythm that marched closely to the twin drums of New Zealand soil maps, and its wheat industry. The book focuses on diseases where New Zealand bucks the OECD average; asthma, depression and its ugly sibling suicide, obesity, cancer, and heart disease where a particular form, cardiomyopathy, has been linked to low selenium. It also looks more generally at viruses that thrive when immune systems are weak, fertility, life expectancy, and the world-wide phenomenon of dropping IQs alongside

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the world’s largest longitudinal study – which gives a peek at the cumulative effects of a low selenium population as it ages. And we look at selenium itself. Where did it come from, where is it found and how much do we need? Just Cause and Effect Selenium Deficiency in New Zealand has sold more than 400 copies and is available in public libraries throughout New Zealand. https://writeanswers.co.nz/ all-books-by-write-answers/ selenium-deficiency-in-nz/ Rural News is giving away two copies of the ‘Just Cause and Effect: Selenium Deficiency in New Zealand.’ To be in to win email editor@ruralnews.co.nz with ‘book give away’ in the subject line. Include your name and address.

RURAL NEWS // NOVEMBER 16, 2021

26 MANAGEMENT

Are terminal sires being utilised enough? PAUL KENYON

TERMINAL SIRES can be a great tool to increase lamb growth rates. They allow for either earlier target slaughter weights being achieved at the same calendar date, or heavier carcase weights. Terminal sires can also potentially reduce the risk of over fats at higher carcase weights. Achieving earlier target slaughter weights can have the advantage of achieving higher per kg carcase values before the price begins to decrease, when many lambs come onto the market. Another often overlooked potential advantage is the feed saved, which can then be targeted for other classes of livestock, including replacement ewe lambs. Further, the earlier a lamb is sold the less it is exposed to potential animal health issues over the summer period and less labour is required. Recent bio-economic modelling by the Agribusiness group at Massey University showed the combined effect was a significant increase in per ha sheep farm enterprise cash operating surplus. The size of the surplus was greater as lambing percentage increased allowing for more ewes to be bred to terminal sires.

Massey University’s Prof Paul Kenyon says it is surprising that more terminal sires are not utilised on NZ farms.

Therefore, given the above advantages it is surprising that more terminal sires are not utilised. Many farmers underestimate how many

ewes within their flock could be bred to terminal sires. For example, with a flock of 1000 ewes achieving 140% weaning, 700 ewe lambs would be

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expected to be weaned. However, if we assume that 30% of ewe lambs are needed as replacements, only 300 ewe lambs are actually needed. This suggests there is clear potential for at least 40 to 50% of ewes to be bred to terminal sires (i.e. 60 to 50% of ewes bred to maternal sires). This would still allow for scope for 420 to 350 ewes lambs to select from to obtain the 300. If a farmer has confidence in their maternal ram breeder this number should not be an issue.

Farmers just need to consider which ewes to breed with their terminal rams. A trap that many farmers fall for is just putting in the terminal sire for the second cycle. But on most farms, 70 to 85% of ewes are breed successfully in the first 17 days of breeding, limiting the potential numbers of ewes left to conceive to terminal sires. However, not all terminal sires are the same. Farmers need to ensure their terminal ram breeder has selected for the desired traits and has breeding values.

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Just buying a large ram does not mean its lambs will grow fast. The ram might just be big due to the way it was fed on the ram breeder’s farm. Farmers should have the confidence to pay a similar price for terminal rams, as their maternal rams, if they come with breeding values. Terminal rams have the potential to be utilised for a number of years, across many ewes, making them a cost-effective option. However, this will only occur if farmers treat them appropriately. When farmers buy a

new bike or tractor they put it in a shed at night and get it serviced regularly, as they see it as an investment. A ram is also an investment and therefore is no different. They need to be fed well, yearround, and need appropriate animal health plans and monitoring put in place to ensure to ensure they achieve good reproductive performance over many seasons. • Paul Kenyon is the Professor of Sheep Husbandry at Massey University and is Head of School of Agriculture and Environment

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MANAGEMENT 27

Every ewe counts! THE TIME is fast approaching when farmers will begin culling their ewe flocks. Replacement rates in New Zealand sheep flocks generally vary from 25-35%. However, just what culling policy farmers should adopt is the subject of a study being undertaken by researchers at Massey and Lincoln Universities. Culling polices seem to vary – some are based on the age of the animal, others on whether it is dry, and others just on looks. Dr Anne Ridler, who is an associate professor of sheep and beef cattle health at Massey University, is leading this research project. She believes what to cull and not to cull is important and farmers have something to gain if they think this issue through. She says the research project has involved investigating ewe culling and ewe deaths on 38 farms around the country this year. While the full results of the study are yet to be completed, some interesting and diverse farming practices have emerged. “A lot of ewes in NZ are culled prematurely, before the end of their

Dr Anne Ridler, pictured checking out ewes, believes farmers have something to gain if they think their culling strategy through.

potential productive life span,” Ridler says. “Sorting through ewes for culling can be a back-breaking job and usually happens at a very busy time of the year. Farmers cull ewes for a variety of reasons, but because most ewes have no individual ID or records, often the decision is made in a split-second and based on a single piece of information.”

Ridler says in most cases that decision is likely to be justified. “However, it must be remembered that for every ewe that is culled another ewe lamb must be kept or purchased to replace her, which comes at a cost.” She says the only consistent features between farmers in the study was that they all culled their dry/dry mixedage and two-tooth ewes while most

also culled dry/dry mated hoggets. None of them culled ewes who were scanned with a single lamb or with triplet lambs. Ridler adds that around 75% of farmers also culled their wet/dry mixed-age ewes – unless there had been an extreme weather event over lambing. Meanwhile, the other 25% never or only occasionally did so. “In contrast, over half of the farmers keep their wet-dry two-tooth ewes, identify them and give them a second chance – as long as their udders are sound,” she explains. “For those farmers who kept wet/drys, the general perception was that they are no more likely to be wet-dry in future compared with other sheep – a conclusion backed up by research.” Ridler says a key point of the findings, so far, is that there was variation in policies for culling for age – around three quarters of the farmers routinely culled for age with maximum ewe ages ranging from 4-8 years old. She says the general rationale for this was that the farmers experienced higher death rates in older ewes. “There is very little research on

death and wastage rates specifically for older ewes,” Ridler adds. “However, it does seem to emphasise that if farmers keep older ewes they must ensure they are sound, in good BCS, and need to be preferentially managed. Around 25% of the farmers don’t cull on age, instead basing it on whether the ewes have good teeth and are otherwise sound. Ridler says many farmers run a ‘B’ mob for the ewes they don’t want replacements from, but ok for breeding terminal lambs from. She says the ‘B’ mob idea is a good option for ewes that might otherwise be culled but are still productive. “It is fine for larger farms, but it may not be suitable for smaller operations.” She adds that, unsurprisingly, the most variable factor for culling decisions between farmers was in culling on type/looks/conformation – things such as body shape, white feet or a pink nose. Ridler says as the main ewe culling time approaches, it is a good time for farmers to consider their ewe culling policies and whether they are still right for their system.

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RURAL NEWS // NOVEMBER 16, 2021

28 ANIMAL HEALTH

Turning around triple drench resistance is possible EARLY RESULTS from a study investigating ways of managing triple drench resistance in an intensive lamb finishing system reinforces the importance of regular FECRT for both breeders and finishers. The study was initiated by the Wairarapa Producer Group, which included breeders and finishers working together in a lamb trading arrangement. It was led by Renee Hogg from Inside New Zealand – with technical expertise from PGG Wrightson vet Andrew Dowling, AgResearch’s Dr Dave Leathwick and Aiden Smith from South Wairarapa Vets. Dowling says the information generated from the FECRT test informs the breeder about which drenches are working on their farm and is valuable information to a finisher. “Ineffective drenching costs money in lost production and time.” Recognising the value of working together to address the issue of drench resistance, the group found there was little practical advice on introducing refugia into a lamb finishing system and the impact this would have on drench efficacy. They also wanted to understand any negative outcomes from

Dowling explains. “Know the parasites you are purchasing and if you’re selling animals, having drench susceptible parasites could be valuable.” Effective quarantine drenching is also an important part of drench resistance management to prevent any new parasites or resistance arriving on farm via new stock. Dowling believes that maintaining a population of drench susceptible parasites is vital to the continued preservation of drench efficacy in any farm system. “Drench resistant parasites cost you money in lower growth rates and wasted investment on ineffective drench. Build good relationships with people you trade livestock with and keep up the dialogue on your resistance status,” he explains. “If you have a good FECRT then your parasites could be a valuable source of new refugia for a finisher.” Drench resistance on finishing farms is a serious risk to those selling store lambs, however, even farms with a good FECRT result can make improvements in their drench resistance management practices. The study was funded by B+LNZ and Silver Fern Farms.

Ineffective drenching costs money in lost production and time.

introducing refugia. Before the study started, and before the lambs left the breeders, a FECRT was carried out on all breeder farms and the finishing farm (study farm) to know the drench resistance status. Two areas of the study farm, diagnosed with triple drench resistance, were used to try different parasite management practices so that lamb finishing would still be a feasible option. On one area of the study farm, a percentage

of lambs (ranging from 5 to 25%) sourced from a farm with drench susceptible parasites (source of refugia) were left undrenched for a full grazing rotation while the remainder received their quarantine drench. On another area of the study farm, all lambs were quarantine drenched with a novel active drench as has been farm practice for many years. Subsequent drenching was with a triple combination or a novel active

depending on the results of the drench check (a faecal egg count (FEC) was carried out 10 days after drenching to confirm drench and drench protocol is working. Faecal Egg Counts and larval identification were also carried out on the lambs that were the source of refugia to reduce the risk of introducing more harmful parasite species and then every 28 days to monitor parasite burden Dowling says results to date show

an improvement of the drench status with both approaches, as well as a reduction in overall drench use. “However, as it takes time to improve the drench status on farms, the study is being carried out for three years to ensure these results are reliable.” The next FECRT to assess the drench status of the study farm will be carried out in Autumn 2022. Based on these early results, Dowling

recommends finishers know the drench efficacy status (FECRT) of the worms on their farm and the worm challenge (FEC). He says using highly effective drenches, maintaining refugia and reducing the number of drenches each lamb receives will slow the development of drench resistance. “You can only identify drench susceptible parasites from a recent FECRT on the farm supplying the lambs,”

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RURAL NEWS // NOVEMBER 16, 2021

ANIMAL HEALTH 29

Dairy health website launched WHILE ADVANCEMENTS in technology has put information at our fingertips, filtering and finding the right information can be challenging. Samantha Tennent recalls this exact problem when she was studying. That’s why Tennent, who’s general manager at WelFarm, and her team have developed a new website covering the basics of dairy herd health and welfare. “I didn’t come off a farm and I was trying to get my head around mastitis, but I remember I couldn’t even find the basic definition for a somatic cell count which left me feeling stupid,” she explains. “Since then, whenever I’ve been involved with extending messaging, I try to include the basics.” Tennent says the new WelFarm website keeps information brief, to the point and provides links to other web pages for further information. “We didn’t want to recreate what is already available; there are some great sources of information but sometimes they get lost in the sea,” she adds. “We were keen to consolidate and provide a simple hub for herd health and welfare to help farmers find what they need.” Tennent says this will

continue to evolve, and they plan to use the website to share timely information to help farmers with their seasonal herd planning. “Now is a great example, it’s the ideal time to be performing a locomotion score on your herd,” she explains. “Identify animals that are starting to show signs of lameness, determine if they need treatment and get on top of it before they impact the business with reduced production and impaired reproductive performance.” The WelFarm team are also building their social media strategy to support farmers with timely messages. This month they are talking about the second half of mating. “Bringing the whole herd in to apply a fresh heat detection aid can help refresh for tired eyes and bulls need to be rotated 24-48 hourly to allow them time to recharge. We want to give farmers simple, timely reminders to help make things easier.” The WelFarm programme is delivered through vet clinics and provides a framework for farmers and vets to proactively monitor and manage herd health. Benchmarking provides context to the numbers and allows farmers to identify opportunities and

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prevent problems to save time and effort in the long run. Taranaki sharemilker Trish Rankin has been using the programme

with their local vet team at Taranaki Veterinary Centre. She values the feedback, explaining they either get a ‘tick’ saying they’re doing a

great job or some feedback on what needs to be improved. “Farmer and animal well-being is a key outcome of WelFarm.” www.welfarm.co.nz

WelFarm general manager Samantha Tennent and her team have developed a new website covering the basics of dairy herd health and welfare.

RURAL NEWS // NOVEMBER 16, 2021

30 MACHINERY & PRODUCTS

Solid global recovery hit by soaring costs MARK DANIEL markd@ruralnews.co.nz

THE DESIRE for faceto-face business was recently demonstrated by the return of the 44th EIMA Show in Italy – the first major event of its type since the onset of Covid. Some 270,700 visitors, more than 25,000 from overseas, donned facemasks and applied hand sanitizer to explore the 1350 exhibitor sites and gather information and place orders for the latest equipment in the agricultural sector. The event organisers delivered some interesting statistics, which confirms the resurgence of commerce post-Covid, at least in the global agricultural machinery industry. With deliveries of tractors being used as the key barometer, sales of tractors in the US – for the first nine months of 2021 – hit 246,000 units (+12%). Meanwhile, during the same period, the expansive Indian market stood at 680,000 tractors (+25%). Likewise, tractor sales in Europe were healthy: Germany recorded 25,700 sales (+6.8%), the UK 11,247 (+25%) and Italy 18,510 – an increase of 44%. This post-Covid recov-

The recent 44th EIMA Show in Italy – the first major event of its type since the onset of Covid – attracted around 270,700 visitors.

ery is attributed to good crops in key areas such as the Russian Federation and Australia. Reports also suggest that global rice production has hit an all-time high of 520 million tonnes (+1.3%) and total grain output is likely to hit 2.8 billion tonnes (+1.1%). Commentators suggest that by 2030 international agricultural production will have increased 18% and livestock production 13% to

meet demands created by population growth. “This market boom is due to a set of reasons partly linked to the global economic recovery, with the increase in world GDP expected to be 5.9% in 2021 and 4.9% in 2022,” explained FederUnacoma President Alessandro Malavolti. “And partly linked to the good performance of agriculture and its growth prospects in the coming years.”

While there was a positive mood at the event, FederUnacoma (the association of European machinery manufacturers), warned that things might come to a screeching halt, because of logistics and the spiralling costs of raw materials. In the case of the former, as of mid-October, the World Container Composite Index – a system used to monitor container rental values on all the major global

routes – has increased 292% over 2020. Commodity costs are also skyrocketing, with energy costs up 365%, sheet metal up 234%, hot-rolled coils up 200%, while polyethylene climbed by 160% and polypropylene by around 123%. Many of these increases are being attributed to Chinese political strategy, particularly in the reduced exports of steel and ferrous metals,

in favour of satisfying increased local demand. That same strategy is also causing problems with the supply of silicon, essential for microchips and semi-conductors – essential components in many machines. This has seen rises in cost of over 300% in less than two months. More recently, the supply of magnesium – where China produces around 85% of world demand – has also

become severely constrained. This has created major production issues as it is a key component of alloy castings. “If the tensions around the supply of raw materials does not return to normality in the near future, we believe that stocks held by manufacturers will last no more than six to eight months,” FederUnacoma added. @rural_news facebook.com/ruralnews

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RURAL NEWS // NOVEMBER 16, 2021

MACHINERY & PRODUCTS 31

Sheep conveyor handles the hard yards allow handling of lambs to larger sheep, full length stop/start bars along both sides and variable speed control, with a cushioned restart function. Contractors and farmers are supplied the same spec machines that also feature a false floor, unique lead up race and a storage position for medications and tools on the entry guard. Trailer-mounted models offer a stable work platform, using four wind-down stabilizers to level the machine, alongside integral stowage, a lead-up race, and extra panels or generators needed to complete the task. The fold down headboard also incorporates a manual two-way drafting-gate that can easily be operated from the end of the conveyor. Keeping with the unit’s portability and the likelihood that it might be used in remote off-grid locations, the power draw is only 3 to 5 amps, so the conveyor can be easily driven by a 2.5kW portable generator. “We bought our first Daytech Sheep Conveyor in 2003. Since then, we have handled over 100,000 sheep each year for capsuling, drenching and vaccination, during which time the conveyor has proved to be extremely reliable and robust,” says the Hunterville Vet Club’s Martin T. Walsh.

MARK DANIEL markd@ruralnews.co.nz

IT HAS been said that “there are sheep conveyors and then there are sheep conveyors”. However, an endorsement from a vet – whose practice has seen over 100,000 sheep pass over a conveyor trouble-free during the past 18 years – is surely a high recommendation. The Daytech Sheep Conveyor is designed for ease of handling for all routine sheep handling tasks. Comprised of 4m long by 1.4m wide modules, the conveyor is built for any situation or breed of sheep. Featuring a heavy-duty subframe and weighing around 400kg, the units are stable – even when loaded with the heaviest animals. The conveying element is manufactured from toughened plastic sections, joined with stainless steel pins. Meanwhile, the conveyor tracks and guide plates use low-friction, wear resistant plastics, offering exceptional resistant to pour-ons or other liquid treatments. The use of a flexible plastic conveyor also removes any issues around constant tracking adjustments and slippage that are common in conventional belt systems. Using fully sealed bearings throughout, the conveyor features variable-width adjustment to

“Our confidence in the product is such, that after 18 years of experience, we had no hesitation in

Read us until the cows come home!

replacing it with the same unit again, which arrived earlier in the year.” www.daytech.co.nz

The Daytech Sheep Conveyor is designed for ease of handling for all routine sheep management tasks.

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RURAL NEWS // NOVEMBER 16, 2021

32 MACHINERY & PRODUCTS

Sustainable battens and outriggers MARK DANIEL markd@ruralnews.co.nz

A CHRISTCHURCH based business has designed, developed, manufactured and released a modern alternative to the traditional wooden fencing batten. This batten is recyclable and features wool fibre in the ingredient list. With an injection moulding and thermoforming business, Darren Ross was looking for an opportunity to manufacture a product to replace traditional wooden fencing battens. This led him to come up with the Styx Solu-

tions Easy Batten system. These can be installed on new fence lines or as a quick and easy way to replace damaged or missing battens. The battens are costeffective alternative to traditional wooden fencing products, typically costing around $4 each, dropping to $3 for quantity. They also remove the need for labour intensive, often back-breaking, work and are easily inserted down through the wires with a simple push and click installation, without the need for tools or staples. Unlike traditional

wooden battens, the Styx battens offer a number of benefits including lighter weight on the fence, no leaching of toxic chemicals, no need for insulators on powered fences and greater resistance to impacts. The system also allows wires to be re-tensioned without the battens being removed – as well as offering durability in high wind or coastal areas and full recyclability. Once installed there is no ‘batten slip’ – even with the absence of fasteners. This ends the traditional solution of using expensive barbed wire to cure the problem, instead

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The Styx Solutions Easy Batten system is recyclable and features wool fibre in its make-up.

relying on a patented wire location slot and clip mechanism. Designed for use with 2.5mm diameter wire, Easy Battens carry a 2-year limited warranty. They are supplied in 5-7 wire, 6-8 wire or 3-9 wire pre-set configurations. Styx Solutions has recently launched its latest innovation, the Styx Batten SE – a collaboration with Shear Edge, an innovative Kiwi company unlocking the power of wool. The highly engineered matrix of wool fibres embedded in the Batten SE provides added

strength and durability, increased impact, tear and tensile strength – ensuring the product can stand the test of time in the rugged farm environment. The wool fibre matrix also improves the sustainability profile of the Batten SE, replacing virgin plastic with natural, renewable, strong wool fibres. Complementing the batten system, Styx Outriggers can be attached to either side of the Easy Batten without tools. Installation is done by simply inserting the outrigger into a mounting receptacle, located at four

positions on the batten and twisting 90 degrees to lock into place. The outriggers can also be screwed or stapled to wooden posts or railings. They can also be used with the company’s insulator base plate to run equi-wire simultaneously. Available in 175, 300 and 400mm lengths, its unique design feature stops 40mm tape from spiralling in the wind. Meanwhile, the 300mm and 400mm outriggers have additional wire locators along their length for pest control and additional animal security.

The units can also be used vertically to increase the height of a fence- particularly useful to prevent horses cribbing (chewing posts). Manufactured entirely from a high-quality UV stabilised automotive polymer, the units will not wear through like traditional metal pigtail outriggers. This removes the problem of electrical shorts, while also offering flexibility to allow a return to the original position if hit by an animal, unlike metal outriggers that bend out of shape. www.styxsolutions.com

NZ MACHINERY SECTOR BOOMS, BUT SUPPLY A PROBLEM NZ TRACTOR sales saw a recordbreaking Sept 2021, mirroring a rising market that has been experienced throughout the year. However, supply chain disruptions are causing havoc with delivery lead times, with distributors looking at three-month averages to smooth out peaks and troughs. This was key findings of the recent Tractor and Machinery Association (TAMA) online 2021 AGM, after its in-person annual meeting was cancelled because of Covid restrictions. The industry body also reported it is monitoring the ‘Right to Repair’ momentum that is playing out in Australia, regarding the direction of legislation permitting customers the right to repair. This is likely to affect the New Zealand

market in the coming years. TAMA is encouraging distributors and dealers to ensure their customers continue to receive the exceptionally high level of service they have become familiar with. Looking to the future, the organisation is working on a Code of Practice for autonomous vehicles, to ensure the sector is ready for the next generation of semi and fully autonomous vehicles that will start to be available in NZ in the coming months. Responding to a survey of its members, TAMA is undertaking a recruitment campaign to attract heavy machinery/diesel technician from overseas to address a desperate labour shortage in the industry. This is on top of a local campaign that sets out to attract more NZ

youngsters and apprentices into the sector. TAMA says it is also committed to presenting its Emerging Talent 2021 Awards to the three recipients in sales, parts and service – who missed out in August because of the AGM cancellation – by the end of the year. It also announced the Ron Gall Scholarship for Industry Leadership, in memory of the industry stalwart and his considerable contribution to TAMA and the industry. The one-off scholarship of $2,000 sponsored by Tulloch Farm Machines will be awarded to an inspiring industry leader so they can contribute to a course, conference or workshop to enhance his or her leadership capability. www.tama.org.nz

RURAL NEWS // NOVEMBER 16, 2021

MACHINERY & PRODUCTS 33

New features on Case IH Optum MARK DANIEL markd@ruralnews.co.nz

THE LATEST Case IH Optum AFS Connect range features a new cab, interior and connectivity package designed to benefit both the operator and the owner. Like the lineup it succeeds, the three models offer rated power outputs of 250hp, 270hp and 300hp, all mated to the Case IH CVXDrive continuously-variable transmission. A new cabin offers 7.5% more interior space, with improved visibility created by 11% more glass, while noise levels drop to 66 decibels, helped in part by the premium materials now lining the cab. Inside, the all-new Multicontroller armrest incorporates a new control lever with configurable buttons. Using the new, larger AFS Pro 1200 monitor at the armrest’s front, key controls on the Multicontroller and armrest can be customised to suit operator preference and the job in hand – including the function buttons and remote valve paddle switches. ISOBUS-compatible, the touchscreen monitor with a high-resolution screen allows the opera-

The new Case IH Optum AFS Connect range features a new cab, interior and connectivity package.

tor to monitor all primary tractor functions, but also incorporates front and rear camera feeds, alongside controls to optimise the engine, transmission, hydraulics and PTO. The new models are now equipped as standard with the Case IH AFS Connect telematics package, already seen on the Magnum, Steiger and Quadtrac models. This

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gives instant, two-way data transfer between tractor and online management portal with realtime machine monitoring. Owners can monitor the location of their tractors, fuel levels and other key management and performance data. This helps them with machine logistics or seeing if a job has been completed. As data transfer is possible both

ways, job instructions, application maps and other data can also be sent remotely to the tractor from the farm office PC – via the AFS Connect web portal. Additionally, farmers can allow dealers to view the AFS screen display in real time, letting operating data to be checked and – if required – to suggest alternative settings

or warn of early signs of faults. From the operator’s seat, lowered rear fenders improve visibility, while the four-post cab with full-length doors also aids sight lines. Night visibility can be enhanced by LED road- and work-light packages with up to 14 lights in the roof – four in the front of the cab, two on the rear fenders and

six in the bonnet. A new pressurised climate control package, with more outlets for enhanced air distribution, features auto-zone control. Meanwhile, the high-spec seat incorporates lateral suspension, full cooling and heating capabilities and an upper swivelling backrest to monitor rear implements and when reversing.

An upgraded drive pedal provides more precision and control for slow-speed inching, field work with headland turns and high-speed travel out on the road. Increased storage space sees an integral cool box under the passenger seat, while service aids also see the inclusion of an air-line at the rear of the tractor. www.caseih.co.nz

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