AGRIBUSINESS
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PAGE 20
MANAGEMENT Dairy sector kicks-off campaign to attract more Kiwis to work on farms. PAGE 21
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TO ALL FARMERS, FOR ALL FARMERS FEBRUARY 1, 2022: ISSUE 743
www.ruralnews.co.nz
A ‘Shaw’ thing? PETER BURKE peterb@ruralnews.co.nz
PRESSURE FROM government ministers is effectively forcing the He Waka Eke Noa (HWEN) nationwide farmer consultation to go ahead. This is despite the arrival of the highly contagious omicron variant in the community and the restrictions on public meetings under the red light traffic settings. There is also the potential of health risks to farmers who are deemed essential workers. HWEN has produced two alternative solutions that it wants to consult with farmers about during the next couple of months. A major consultation roadshow was scheduled to start this week and give farmers right across the country the opportunity to meet face-to-face with representatives to ask questions about the proposals. The consultation has been described by Beef+Lamb NZ (BLNZ) chairman Andrew Morrison as “one of the most important issues for farmers in 2022”. A media release, issued last week, said the roadshow will still go on with some changes made to the events. However, these were not detailed. It is understood the roadshow will be delayed for a short time – again no specific dates – to get everything back on track and presumably compliant with the Government’s ‘red light setting’ for events.
Rural News understands that behind the scenes, BLNZ and DairyNZ were reluctant to go ahead with the consultations – given the risk that indoor events pose to those attending, even with social distancing and vaccine passports. It’s understood that they are concerned that many older farmers and those with health issues will not attend the events out of fear of catching Covid. However, it’s understood that they’ve decided to go ahead out of fear that if they don’t, the Government will push ahead anyway with its ETS legislative timeline on climate change and essentially ignore the voice of the rural community. Rural News believes that many in the sector were astounded that the Government didn’t take the initiative and put a moratorium on the whole process until the Omicron variant had at least passed its peak – especially given the very strict rules placed on events and the fact that even Prime Minister Jacinda Ardern postponed her own wedding because of the potential health risk. It is thought that Climate Change Minister James Shaw’s ideological drive to pass climate change legislation within strict deadlines has overridden the imperative of full and proper consultation with farmers. BLNZ chairman Andrew Morrison told Rural News that the HWEN partners are
It is understood pressure by Climate Change Minister James Shaw is forcing nationwide farmer consultations to go ahead – despite the arrival of the highly contagious Omicron variant in the community.
having ongoing discussions with the Government about the wisdom of holding the roadshow, but as this paper went to press, the plan to stage the nationwide consultation event was still set to go ahead. Morrison says they are asking for an extension of the timeline and are “in discussion” with the Government on this at the moment.
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RURAL NEWS // FEBRUARY 1, 2022
NEWS 3 ISSUE 743
www.ruralnews.co.nz
Balers sitting idle! SUDESH KISSUN sudeshk@ruralnews.co.nz
WAIKATO CONTRACTOR Phil Hawke has two balers sitting idle because there are no experienced drivers to operate them. Hawke says his company normally employs up to five Englishmen but getting overseas workers during the pandemic has been tough. “I built up my business thinking I will have four balers working full-time but I end up with two balers sitting idle,” he told Rural News. “These machines cost $200,000 each but they are not making me money at the moment and workload is piling up. “If these balers were going, we’d be right on top of things. It’s very frustrating.” Phil Hawke Contracting is one of many rural contractors struggling to secure experienced drivers from the UK to work here. Securing MIQ spots remains the biggest hurdle. Rural contractors were told in midDecember they could bring in 200 more skilled machinery operators, but have not yet seen a single arrival given MIQ space. Rural Contractors NZ chief executive Andrew Olsen says despite the best efforts of MPI staff to help find MIQ beds for the approved operators, the indications now are that few, if any, will be available until March at the earliest for rural contractors. “This will mean many of them will pass on the option to bring workers in. It’s just too late, too hard and too stressful for contractors who are working their guts out trying to help farmers get in crops and ensure animals can be fed.” Hawke says his son posted a message on Facebook seeking overseas
NEWS ��������������������������������������1-15 HOUND, EDNA ����������������������� 16 CONTACTS ������������������������������ 16 OPINION �����������������������������16-19 AGRIBUSINESS ��������������������� 20 MANAGEMENT ���������������������� 21 ANIMAL HEALTH ������������22-23 MACHINERY AND PRODUCTS ���������������������� 24-26 RURAL TRADER ���������������������27
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
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machinery operators: 25 experienced Irishmen applied. While all had glowing CVs and proper documentation, none were able to secure MIQ spots. Hawke says UK machine operators love working in NZ and their presence also benefit the local economy. “Most of them are on work/holiday visas; they are very well paid by us and after their contracts are
over they spend time travelling through the country. “They spend most of their money within New Zealand and I think our hospitality sector needs those types of visitors right now.” To accommodate the overseas workers, Hawke had a home built in Waikato. The house has been rented out for the past few years. Hawke says he has tried to
employ locals but there aren’t too many experienced local drivers around. “They just don’t have the experience. We do special tasks: maize planting and baler operations and we also operate in high country. “They are trying their best but the experience isn’t there.” Hawke doesn’t believe he will get any overseas machine operators for the maize planting season kicking off this month. “Hopefully by spring, things will change because we cannot afford another season without these workers.”
Agricultural contractors around NZ are finding getting experienced operators an impossibility due to MIQ failures and government inaction.
LAYERS OF FRUSTRATION RURAL CONTRACTORS chief executive Andrew Olsen says getting MIQ space is like peeling an onion. “It’s layer after layer and it brings tears of frustration for our members who are already working impossibly long hours and as yet have not even been able to lodge Expressions of Interest for staff positions which ministers had approved to come in.” Olsen wants the Ministers of Immigration and Agriculture and the Prime Minister’s Office to meet the urgency of the situation.
“We received approval December 12 and now more than a month on we’re looking at another two months before the first arrivals. “It’s not good enough. The primary sector needs more support, now, and frankly the current situation our members find themselves in doesn’t cut it.” Olsen says his organisation and Federated Farmers, supported by MPI, have done everything they could to help contractors meet a crushing labour shortage.
“We understand and respect that the resurgence of another Covid variant and border entry changes have put the squeeze on MIQ. “That said, those risks would have been part of the assessment when we had ministerial approval just on a month ago to bring in the desperately needed 200 machinery operators. “Now, rural contractors whose work is essential to food production and our export economy, find themselves towards the back of the MIQ queue.”
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RURAL NEWS // FEBRUARY 1, 2022
4 NEWS
Farmers urged to plan for Omicron PETER BURKE peterb@ruralnews.co.nz
FARMERS ARE being urged to have good plans in place for dealing with any major community outbreak of Covid-19 and, in particular, the omicron variant. Will Halliday of Beef+Lamb NZ is part of a pan-primary sector group— which includes DairyNZ, MPI, the deer and pork industries and Federated Farmers – that has been preparing advice for farmers to deal with this contingency. All of these organisations have advice on their respective websites aimed at making it easy for those in the primary sector to plan for such an outbreak. There are also copies of this information in vet clinics and rural supply stores. “It’s all about how to keep you and your farm safe from Covid and, if by chance, you or someone on your farm tests
“It’s all about how to keep you and your farm safe from Covid and, if by chance, you or someone on your farm tests positive and has to go to hospital or into isolation; Having a written and readily available plan to get through this period.” positive and has to go to hospital or into isolation; Having a written and readily available plan to get through this period.” Halliday says it’s a matter of having that plan in place before something happens. He says it’s a case of having an arrangement with someone or a number of people who might be able to help and having a check list and detailed plan of what to do on the farm to keep it running. Halliday says the last thing anyone wants to happen is for a famer to get infected and for this to spread up the supply chain. He says this could
cause major disruptions with transport and processing plants and put others in the community at risk. “Animal welfare on farm is also a major issue,” he adds. Halliday says on the one hand many sheep and beef farmers have the advantage of living in isolated areas, but they still have to have interactions with contractors and others in the rural community. He says BLNZ recommends that farmers get vaccinated and adds that any staff from his organisation who are interacting with farmers are all fully vaccinated.
Will Halliday says it’s a matter of having that plan in place before something happens.
The logistics log-jam! THERE SEEMS to be little respite on the horizon for NZ exporters and importers with massive delays in some key overseas ports. A recent report put out Ministry of Foreign Affairs and Trade (MFAT) says last month there were 100 ships queued up over 1,000 miles waiting for a berth at the ports of Los Angeles and Long Beach on the west coast of the USA. The report singles out the
other hot spot for delays as ‘Asia’ and says the two problem areas are compounding the issue for each other. The shipping clog-ups are said to be the result of consumer demand due to the pandemic. There are conflicting views on how the sea freight delays will play out in 2022 and there is a suggestion from some sources that things might improve. However, others disagree and say it will
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get worse. Whatever good news might be in the offering, the fact remains – according to the report – that average freight rates have risen by 50% in the past year. The report put some numbers to a scenario that continues to frustrate NZ exporters and to which there appears to be no end in sight. It also has some interesting statistics on air freight, stating that global
demand is up 9% since 2019, while capacity for freight has declined by almost 9%. The word is this trend will continue mainly because of the problems with sea freight, which has seen exporters take to air freight despite the increased cost. In NZ, for example, cherry exports are now airfreighted. The other reason given for choosing air freight is that companies are
seeking to get product to market because of the labour shortage in NZ, which is delaying production. A telling statistic revealed in the report is that world passenger traffic fell by 53.4% in September 2021, compared to the same period in 2019. At the same time, demand for air freight grew by 9%. – Peter Burke @rural_news facebook.com/ruralnews
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RURAL NEWS // FEBRUARY 1, 2022
NEWS 5
Don’t milk the record prices! SUDESH KISSUN sudeshk@ruralnews.co.nz
DAIRY FARMERS are being urged not to compromise cow condition as they chase a record milk price this season. Perrin Ag senior consultant Daniel Payton says some farmers may be tempted to keep cows in milk for as long as possible. However, this could have a detrimental effect on cow condition. “Cow condition is king: don’t be tempted to milk as many cows for as long as possible just to reap the rewards from the payout if there is no marginal economic benefit and cow condition at dry off is compromised,” Payton says. “Failure to reach cow body condition score targets at dry off will result in greater dry cow
feed requirements trying to regain condition precalving. “The impact of calving cows in sub-optimal condition may also mean reduced milk production and reproductive performance next season”. Last week, Fonterra lifted its 2021-22 forecast farm gate milk price range to $8.90 - $9.50/ kgMS, increasing the midpoint of the range, which farmers are paid off, by 50 cents to $9.20/ kgMS. The previous record milk price of $8.40/kgMS was set in 2013-14 season. Fonterra chief executive Miles Hurrell says there is consistent demand for dairy at a time of constrained global milk supply. “In general, demand globally remains strong – although, we are seeing
EARNINGS GUIDANCE A RECORD milk price is putting pressure on margins in Fonterra consumer and foodservice businesses. However, chief executive Miles Hurrell says prices in its ingredients business are favourable for milk price and earnings at this stage. As a result, the co-operative is retaining its 2021/22 earnings guidance of 25-35c/share. Hurrell says there are a number of factors the co-op is keeping a close eye on. These include growing inflationary pressures impacting on operational costs, the increased potential for volatility as a result of high dairy prices and economic disruptions from Covid-19, particularly as governments respond to the rapid spread of the Omicron variant.
Daniel Payton says some farmers may be tempted to keep cows in milk for as long as possible, but this could have a detrimental effect on cow condition.
this vary across our geographic spread,” says Hurrell. Overall, global milk supply growth is forecast to track below average levels, with European milk production growth down on last year and US milk growth slowing due to high feed costs. New Zealand milk supply is also constrained
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due to varied weather and challenging growing conditions. Earlier this month, Fonterra reduced its forecast milk collections for 2021-22 from 1,525 million kgMS to 1,500 million kgMS A drier summer is affecting pasture growth in parts of the country. According to Payton,
as temperatures soar across the country, pasture is scarce and many farmers are priority feeding their milking herd by culling cows. “Many dairy farmers are also reviewing their feed plans to help reduce the impact of heat stress on their herds and milk production,” says Payton. “This payout news
means using supplementary feeds will become more cost effective as farmers take steps to survive the dry.” Payton also expects input costs to rise again, as suppliers make the most of a buoyant dairy market. “Everybody will be wanting a bite of the cherry,” he says.
Payton is encouraging farmers to keep unnecessary spending in check. “In order to reap the benefits of a high payout, it is more important than ever to remain disciplined. “Resist the temptation to buy the ‘wants’ and instead ensure the business remains focused on the ‘needs’.”
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Update from Beef + Lamb New Zealand By Andrew Morrison, Chairman
I encourage every farmer to study the options carefully, attend a roadshow meeting and have their say at a meeting or through the online feedback form. Wouldn’t we be better to focus on getting the methane targets changed?
Farmers are getting the opportunity to hear more about the agriculture emissions pricing options with roadshow meetings kicking off soon. I’ve been fielding plenty of questions from farmers over the past few months and I recognise there are some concerns out there. That’s not surprising – climate change is a complicated issue and we always knew landing on a fair, effective and equitable pricing mechanism for emissions was going to be a challenge. So I thought it would be worthwhile answering five of the most common questions farmers have been asking me. Why are we doing this? In 2019, the Government indicated it was going to bring agriculture into the Emissions Trading Scheme (ETS). B+LNZ, alongside other primary sector groups, convinced the Government not to do this and instead work with us on a more appropriate approach, with the result being the Primary Sector Climate Action Partnership – He Waka Eke Noa. If the Government had brought us into the ETS, it would have completely undermined the ‘split gas’ outcome we’d previously secured in legislation, as the price of methane would have been linked to the price of carbon. New Zealand is the only country to have a split gas target for methane. The price of carbon is rapidly escalating and farmers’ costs for emissions would also escalate without any opportunity to influence those costs. However, the Government also made it clear that if we don’t make progress, they’ll push agriculture into the ETS. The agricultural sector must reach agreement on an alternative early this year. What’s the best option? This is something every farmer needs to decide for themselves, but doing nothing is not an option. Two options have been released for discussion – a farm-level levy and a processor-level hybrid levy. We acknowledge these options are not perfect and each has their strengths and weaknesses. But they do provide a platform that can be built on. Most importantly, both price methane and nitrous oxide separately to the carbon price. Farmers can get greater recognition for their sequestration than what’s currently covered by the ETS, and the money raised will be invested back into our sector to support the reduction of emissions. There is also the option of the sector transitioning from the hybrid to the farm-level option over time.
In New Zealand, the legislated targets are for a 10 percent reduction in methane by 2030 and a 24-47 percent reduction by 2050. We absolutely agree the methane reduction targets need to come down, but it’s a parallel process. If we argue for the targets to be fixed first, the Government will simply bring us into the ETS and it won’t matter what the targets are. At the same time as our work on the emissions pricing consultation B+LNZ, DairyNZ and Federated Farmers are working hard on the targets. The methane reduction targets in the Zero Carbon Act will be reviewed by the Climate Change Commission in 2024 and the legislation states this will be based on the latest science. We are pushing hard, and will continue to push, for the methane targets to be adjusted downwards based on the latest science (based on the warming impacts of gases). Is B+LNZ pushing the Government to recognise the different warming impact of different greenhouse gases? Yes - our advocacy work is one of the reasons the Government already treats methane differently from long-lived gases. It’s a start. We’ve been very clear with the Government that it should start reporting on warming as well as emissions. We agree we need to change the conversation to warming and better account for the warming impact of methane through the use of the more appropriate GWP* metric. We are also working with our agricultural counterparts overseas to build a better understanding of the different warming impact of methane. Do the alternative pricing options use GWP*? The alternative options the partnership has come up with reflect the fundamentals of the science behind GWP* - in particular, both options have a separate price for methane and measure methane emissions based on weight only, without using carbon equivalents (that is, the inappropriate GWP100 metric) for methane. We believe this addresses the concerns about how methane is accounted for. At a more detailed level, it’s very complex to apply GWP* directly on the farm. You need 20 years of data and there could be a lot of variability in what you pay. You may have a drought one year and reduce your stock but the next few years when you’re rebuilding, using the GWP* metric applies a very high bill to any increase in emissions. B+LNZ’s Economic Service analysis also indicates that over the last 30 years, while the number of sheep and beef farms has decreased, on average the size of the remaining farms has increased. Using GWP* at the farm level would stifle this consolidation. It would also be punishing for any new entrants or farmers looking to develop their farm.
RURAL NEWS // FEBRUARY 1, 2022
NEWS 7
Groundswell to pressure HWEN DAVID ANDERSON
RURAL GINGER group Groundswell is mounting another campaign – this time against the He Waka Eke Noa (HWEN) proposals that farmers are being consulted on this month. The group came to prominence last year, organising two major countrywide protests – one in June and the other in November – which
nz, run advertising, surveyed farmers, as well as calling for more farmers to join its campaign. “We say that any emissions reduction scheme must be grounded in science, not politics,” the enoughisenough.nz website states. “New Zealand agriculture adds little or potentially no additional warming to the atmosphere and any pricing mechanism must recognise this fact.”
“Kiwi farmers should not be punished for being among the most efficient producers in the world.” saw thousands of people in towns and cities up and down NZ rallying against government policies aimed at the farming sector. Despite attracting tens of thousands of people to its protests and many farmers joining it, Groundswell has been snubbed by the current political elite with both Prime Minister Jacinda Ardern and Agriculture Minister Damien O’Connor refusing to meet with its leaders and discuss their concerns. Undeterred by this brush-off, the group is now turning its attention to farm emissions, a subject dear to the heart of the current government. It formed He Waka Eke Noa (HWEN) – a partnership between industry, Māori and government – and tasked it with finding a better solution to emissions management than the currently legislated Emissions Trading Scheme option. Late last year, HWEN produced two draft pricing options for feedback, with these options due to be presented in February to farmers. Groundswell NZ says it is preparing a list of key questions farmers should be asking during the round of consultation meetings being held over the next month or so. The group has set up a website, enoughisenough.
Groundswell says farmers should expect a low-cost emissions management scheme that promotes NZ farming’s low climate impact to consumers. “Kiwi farmers should not be punished for being among the most efficient producers in the world.” It has also taken a gentle swipe at ag sector members of HWEN, saying that “it cannot be assumed that existing industry representation will always get things right”. Groundswell says HWEN needs to improve its accounting methods and ensure that farmers get the credit (carbon) they deserve. It has spelled out a number of conditions, which is says HWEN must consider. These include: • Warming based accounting Groundswell claims that methane emissions only need to reduce by 0.3% per year to ensure no additional warming. “The current HWEN pricing options ignore this basic scientific fact. Farmers should not pay tax on emissions that are not adding to climate change.” • Credit for all the carbon sequestration farm trees provide “HWEN proposes to only fully recognise trees planted or regenerated after 2008.”
• Better spending oversight and minimal administrative costs and bureaucracy. “This is our money and it should be used for
purposes that benefit the industry, science, or the environment. “It should not be siphoned for political slush funds.”
Groundswell is now turning its attention to farm emissions and the proposed HWEN solutions.
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RURAL NEWS // FEBRUARY 1, 2022
8 NEWS
Omicron planning well underway DAVID ANDERSON
NOW THAT it’s a matter of when, not if the Omicron variant hits NZ, the country’s major meat processors say they are
well down the road in planning how to mitigate its impact. A report circulated by the Auckland DHB last month warns that once Omicron arrives it could
see 50,000 cases a day and the outbreak could continue for between 12 and 16 weeks. This lines up with the international experience: during January, New South Wales
recorded an average of 46,970 new cases a day over one week. “Like all New Zealand businesses, Alliance Group is acutely aware of the risk of Covid-19, in
SFF chief executive Simon Limmer says Omicron is impacting overseas workforces through 30 to 40% absenteeism and this will present challenges with SFF’s workforce already around 550 workers short.
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particular, Omicron,” the co-operative’s communications manager Renee Walker told Rural News. “We are committed to doing everything we can to protect the health and wellbeing of our people. Alliance Group is processing livestock under protocols, which define a strict set of rules and requirements to ensure the sector’s continuing operations do not contribute to the spread of Covid-19.” Walker says this includes maintaining physical distancing, ensuring increased cleaning/disinfection of processing areas and using personal protective equipment (PPE). “All visitors to Alliance plants and offices, including Alliance staff and contractors moving between sites, must be fully vaccinated and show their ‘My Vaccine Pass’,” she adds. “We have also written to our transport providers to ask them to con-
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firm that their drivers are vaccinated. Drivers are required to carry proof of this to enter our sites.” Meanwhile, Walker adds that the meat processor is continuing to encourage Alliance’s workforce to get vaccinations – including boosters. “Everyone on our leadership team is fully vaccinated. We have risk profiles in place, and we have supported on-site vaccination initiatives across all plants,” she explains. “While we hope the measures we have in place will prevent our plants being impacted by Covid-19, we have had contingency plans in place for some time.” Walker believes that Alliance’s extensive plant network across the country and the lesson of the past two years means it is well placed to mitigate the impact of any disruption caused by Covid-19.
RURAL NEWS // FEBRUARY 1, 2022
NEWS 9
The country’s major meat processors say they are well down the road in planning how to mitigate Omicron’s impact on their businesses and exports.
Silver Fern Farms (SFF) chief executive Simon Limmer told Rural News that the company is expecting it won’t be immune to the impacts of Omicron currently being experienced offshore, and that it had started planning early. “We’re drawing on the range of protocols and controls developed through our experience managing Covid to date, which will help us to minimise any disruption,” he says. “As of 11.59pm, Sunday, January 23, we’ve moved our sites to our operating framework under the red traffic light setting. In many respects, this is business as usual for our site staff as we have always taken a precautionary approach to our operations irrespective of the alert level.” Limmer says SFF’s priority is the safety and
welfare of it staff. “But as a market-led organisation we also have a big focus on delivering to our customers through the constraints in which we will be operating.” He says that in addition to the protocols and controls it has developed, SFF have been fortunate to have trialled the use of Rapid Antigen Testing with around 30 other businesses last year. “Although not as accurate as diagnostic PCR testing, they are fast, and will be another helpful tool to support the business and our staff to operate safely through any disruption.” Meanwhile, Limmer says, offshore, Omicron is impacting workforces through 30 to 40% absenteeism, and this will present challenges with SFF’s workforce already around 550 workers short already.
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“As we are constrained by the historic low unemployment rate here, we’ve been asking the Government to reconsider giving good employers access to overseas workers to support the performance of the overall New Zealand economy.” He told Rural News that SFF’s network of processing facilities does provide the company the option to move animals between plants as Omicron moves around the country. “Our focus will be moving animals off farm, although at times this may come at the expense of value,” Limmer explains. “Our priority will be our fully shared and valued suppliers, as well as prioritising areas with animal welfare risk. We’re asking all suppliers to reach out to their livestock reps early.”
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RURAL NEWS // FEBRUARY 1, 2022
10 NEWS
Less facetime costing NZ exporters ‘DUCKING AND DIVING’ PAYS OFF
PETER BURKE peterb@ruralnews.co.nz
ONE OF the biggest problems that Covid-19 is causing NZ is that it’s stopping politicians and business people having face-to-face contact with their counterparts in our major markets. Mike Petersen, the former NZ special agricultural trade envoy and director of a number of NZ agri-related companies, believes faceto-face contact is what shifts negotiations. He says that was evident last year when Trade and Export Minister Damien O’Connor and top MFAT Trade Negotiator, Vangelis Vitalis went to Europe and saw them lockdown an agreement in principle on the free trade agreement (FTA) with Britain. Petersen says a major priority for NZ in 2022
Mike Petersen says Covid-19 is stopping NZ politicians and business people having face-to-face contact with their counterparts in our major markets.
is to lockdown the FTA with the EU. “But it’s going to be incredibly difficult with French elections in April and, of course, agriculture being so sensitive over there,” he told Rural News. “We are going to
struggle until the French elections are over and then who knows what sort of government France will have after that. We have been talking about this for a long time and we need to make sure we have got Europe alongside because
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the 27 nations of Europe are incredibly valuable to us with a lot of our products shut out of that market including dairy.” According to Petersen, while politicians are important to get FTAs across the line, these agreements also need business to business contact because often the pressure is not coming from the politicians, but it’s coming from the people on the ground. He says the business and private sector can play a really important role in this. “And at the moment
MEANWHILE, PETERSEN says that demand and prices for all NZ primary products are looking good and this is a positive for the country in the coming year. He believes this largely due to the exporters who deserve a huge amount of credit for the returns they have been able to get out of the market despite Covid. He says they have been ‘ducking and diving’ around the world trying to navigate an incredibly challenging world with Covid. “They have done amazingly well getting premium prices, which have largely offset to this stage the cost pressures that are coming through,” Petersen told Rural News. But he says getting the product to market and obtaining the same good prices with Omicron around will be the biggest challenge for 2022 and dominate the thinking in the primary sector. “I think this will be an ongoing problem in 2022 and some commentators are saying it will get worse.” Petersen says rising air and sea freight costs and unreliable shipping schedules have put paid to the export of many
that is almost impossible and we have been out of the market for two years now,” he says. Petersen says business people are frustrated at not being able to get overseas and says the goodwill that that has been built up over the years is starting to disap-
added value items – such as some chilled meat. He says there are exporters who are going back to shipping frozen products to avoid the risk of these failing to get to destinations on time. He adds that this is compounded by a shortage of labour in NZ, which means there isn’t the staff to produce value-add products here. “People are now starting to commoditise and do less value add here in NZ which is not what we want,” Petersen adds. “In fact, we want to go the other way but the reality is some of that added value will be created offshore. But even then there are problems because most markets in the world are constrained by a lack of labour – so this not just an NZ problems, it affects others around the globe as well.” Petersen says he detects an air of nervousness in the primary sector with exporters not knowing just where things are going to land in the coming year. He says even though there are predictions of good returns, people are worried about the future.
pear. He says is often due to changes of personnel in both NZ and overseas. “This is a real concern. It’s like credit in the bank, it lasts for a fair while, but it erodes away gradually over time.” He points to China as a case in point. Petersen says prior to Covid, there
was a lot of face-to-face contact with Chinese politicians and business people which this resulted in a lot of credit being built up. But he points out there has been no travel for two years and, in the case of China in particular, face-to-face contact is what matters.
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THREE YEARS after leaving the Dairy Goat Co-operative, Tony Giles is returning to the sector to head Food Innovation Waikato (FoodWaikato). Giles has been appointed the dairy product manufacturer’s new chief executive. FoodWaikato has spray drying facilities for the manufacture of innovative dairy products, including infant formula. It tripled its manufacturing capacity with the commissioning of a new spray dryer in 2020 and it has grown its staff from two to nearly 40, over the past nine years. Its customers include New Zealand’s two biggest sheep milk producers, Maui and Spring Sheep, both of which are tenants at the neighbouring Innovation Park. It also manufactures product for Australian-based Nu Mega, which develops bioactive ingredients for health and nutritional products. Giles replaces Stuart Gordon who stepped down after nine years in the role. Gordon will remain
Tony Giles
as part-time chief executive at Waikato Innovation Park, where FoodWaikato is based. Giles worked at Dairy Goat Co-operative for 19 years in total, holding executive and marketing roles. He held the position of chief executive for five years, until 2018.
“When this role came up, it was the right time for me to take on another challenge,” Giles says. “I see it as a great opportunity to get involved in the Innovation Park environment, continuing to build on the great work Stuart has already done and helping emerging and innovative businesses to grow.” FoodWaikato chairman Barry Harris says Giles not only has knowledge in the dairy goat industry, but also brings a wealth of experience in dairy manufacturing, international marketing, leadership, and governance. Harris also paid tribute to Gordon’s service. He says Gordon was leaving the company in a strong position and FoodWaikato was fortunate to have attracted someone to replace him who also had an in-depth knowledge of dairy manufacturing. Harris says the growth in New Zealand’s sheep milk industry was a boon for FoodWaikato. The value of New Zealand’s supply of dairy sheep milk is likely to triple to $44 million over the next three seasons.
RURAL NEWS // FEBRUARY 1, 2022
NEWS 11
Open Country Dairy breaks the $9 barrier THE COUNTRY’S second largest milk processor has broken the $9/ kgMS milk price barrier. Open Country Dairy suppliers are being paid $9.01/kgMS this month for milk supplied in October and November last year. The Talleys-owned business pays its milk
dairy market is holding up well and his team continues to channel milk into the highest-returning products. “The slight drop in milk volumes in the Waikato, due to climatic conditions, has allowed the business to use its flexibility and move more milk into cheese produc-
“We would see a slight softening if demand dropped off, but no signs of weakening at this point.” suppliers in full four times during the year. OCD executive Steve Koekemoer says the company has “once again smashed our forecast and [I’m] pleased to announce that we will be settling the November period at a record $9.01/ kgMS”. He describes the news as a great start to the New Year. “To break the $9 barrier is exciting and a great reward for all our farmers’ hard work on the farm.” Koekemoer says OCD’s forecast for the balance of the season remains unchanged at this stage. For milk supplied in December last year and January this year, the company is forecasting a price range of $8.65 to $8.95/kgMS. For the May period – milk supplied in February to May this year – it expects to pay suppliers between $8.60 and $9/ kgMS. Koekemoer says the
tion,” he says. Cheese prices are currently at a record high. This, in conjunction with an upside in foreign exchange rates, has provided a good financial result, he adds. With global supply not showing any signs of recovery, Koekemoer expects pricing to hold reasonably firm. “We would see a slight softening if demand dropped off, but no signs of weakening at this point.” Koekemoer says the Christmas period went smoothly for the company and milk was processed with very few hiccups. “We are grateful for the long hours the teams put in over this period. “Milk does not stop flowing and the machines need to keep churning out good product, which they did. Our supply chain team keeps shipping our products offshore well ahead of schedule.
FEP SOFTWARE OPEN COUNTRY Dairy says the development of its new Farm Environmental Plan (FEP) software is progressing well. Chief executive Steve Koekemoer says this will be an exciting tool once it is rolled out later in the year. “This new tool including training for all our farmer suppliers will be provided to farmers at no cost. “Our objective is to make it as easy as possible for farmers to have a farm plan in place while aligning their business with future regulatory requirements. “The FEP tool will be an ongoing investment to ensure everyone stays involved and is able to fulfil their environmental obligations in a simple way removing duplication of data capture and management.”
“The business is in very good shape overall and I am very happy with our performance.”
OCD chief executive Steve Koekemoer describes breaking the $9 mark as a great start to the New Year.
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RURAL NEWS // FEBRUARY 1, 2022
12 NEWS
Gain and pain in move to carbon pricing DAVID ANDERSON
BEEF+LAMB NZ chair Andrew Morrison concedes that the two alternative options to the ETS that the He Waka Eke Noa (HWEN) partnership has developed are not perfect. However, he says they are as good as they can be and describes the upcoming consultations on them as one of the most important issues for farmers in 2022. “It’s a complicated topic and we’re strongly urging farmers to come along to a roadshow event to find out more and to have their say,” Morrison told Rural News. He believes that farming leaders made a significant gain by collectively getting a split gas outcome in the Zero Carbon Bill. “However, we don’t agree with the methane reduction targets themselves. We also got the Government to agree to not bringing agriculture into the ETS, but to work with the sector on a better alternative.” He says in an ideal world they would try to get the methane targets reduced before introducing a pricing system but adds that this is not a political possibility. “The Government already has legislation in
place to bring agriculture into the ETS in 2023 if we are unable to come up with a viable alternative,” Morrison explains. “If we say the targets have to be fixed first, they will just put us in the ETS.” He warns that if agriculture goes into the ETS, then there will effectively be no ‘split gas’ outcome. “The price of methane will be simply linked to the carbon price. The price of carbon is seeking to drive carbon emissions to zero, so we will effectively be driven to a net zero outcome for methane,” Morrison explains. “Worse still, the price of methane will continue to go up exponentially even if our emissions are going down. Under current accounting, a tonne of methane is deemed the equivalent of 28 tonnes of carbon dioxide, so buying credits to offset a tonne of methane will involve paying 28 times the ETS price of a tonne of carbon dioxide.” He says the main focus of those involved with HWEN has been trying to find something that is consistent with the latest science, including GWP*, and is practical for farmers. “The two alternative options to the ETS that the He Waka Eke Noa partnership has developed are not perfect and
they never will be. It’s about making sure we get the alternative options as good as they can be,” Morrison concedes. “We looked at a range of options and tried to come up with ones that were fair across the range of sectors, different farming systems and different stages of development.” He says that while all the HWEN partners have agreed the content of the consultation document, they have our own views on some of the specifics. “Our objective is to set up a framework that can be improved over time.”
ALL FEEDBACK CONSIDERED MORRISON SAYS farmers can provide feedback at the roadshow meetings farm ers electronically or via har d copy on the feedback for ms provided. He says they will also be able to provide feedback in an online form at any tim e during February. “We’ll be asking a mix of open-ended, direct que stions,” Morrison told Rural News. “We’ll be asking what’s most important to them, their views on the separation of methane from oth er gases and the seques tration options put forwa rd; what they like and dis like about the two alternative options and what their preferred option is.” He says all feedback rec eived at roadshow events via online form will be col lated and analysed by all signatory partners and, in B+LNZ’s case, used to support its position at the HWEN partnership negotiating table. Morrison says a summa ry of the feedback will als o be released.
Beef+Lamb NZ chair Andrew Morrison says the upcoming consultations on the HWEN proposals as one of the most important issues for farmers in 2022.
MORE CHOICE ANDREW MORRISON says, in terms of the advantages of the two alternative options proposed by HWEN, it’s about offering farmers more choice and control. “They both have a separate price for methane,” he explains. “Levy prices will be advised by an advisory board which will include agriculture sector representatives. It’s proposed that a ceiling be put on the potential levy rates so they don’t exceed what farmers would have paid if the sector went into the ETS.” Morrison believes both options recognise a wider range of sequestration than in the ETS. “They both recognise actions farmers may take on their farms to reduce their emissions, either through paying a lower price through the farm levy or getting a rebate through the Emissions Management Contract,” he adds. “They’ll both recycle money raised back into research to lower emissions.”
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Morrison admits that the main disadvantage of either of the alternative options is the likely cost of administering the farm-level levy, and the complexity of this option may not match the requirements of many farms. “However, we expect this option will become increasingly relevant over time as farms adapt and the science and technology evolves to create more solutions. Again though, we need to hear from farmers on these points to inform our advice to Government.” Morrison says B+LNZ is a very strong supporter of GWP*, as shown by its numerous media releases since 2019. “The alternative options reflect this science by having a separate price for methane that is not linked to the carbon price, and both options measure methane based on weight with no conversion using GWP100 into a CO2 equivalent.” However, he says that advice from some of
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the leading scientists on GWP* was that it was too complicated, at this stage, to apply at the farm level. “You would need 20 years of data and applying at the farm level could create very lumpy payments. If you had a drought one year but then had to restock the next you would face a really high payment because under a GWP* approach farmers would face a very high price for any increases in methane.” He says B+LNZ continues to advocate for the Government to start reporting on warming as well as emissions. “Our focus is also on the 2024 review of the methane reduction targets and getting the latest science applied to these – we’re talking about changing the conversation to warming and better accounting for the warming impact of methane through the use of the more appropriate GWP* metric.”
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RURAL NEWS // FEBRUARY 1, 2022
14 NEWS
Agriculture needs to adapt or die NIGEL MALTHUS
NZ’S AGRICULTURAL sector needs to recognise Covid-19 as the “new normal,” says leading expert on international trade, Professor Hamish Gow. He says a lot of firms have used the pandemic as a positive opportunity and have been very successful in driving change within their firms, their value chains, and their industry. “Then there’s other ones who have sat back and said, ‘We don’t need to change, this will be all over’,” Gow told Rural News. “And we’re now into our third season and
they’re still trying to run everything the same way, complaining that they can’t, for example, find workers. “But they haven’t done anything to change and they’re in the same situation that they were at the start of the pandemic.” Gow says some firms, such as Fonterra and Zespri, have done good work securing their supply chains, but others haven’t and are now struggling to get container space to move their product around. He also believes there’s a similar challenge in the labour market. “We’ve used this previously abundant supply
of backpackers and holiday work visas and immigrants to fill holes, as opposed to saying, ‘Well, how do we invest in and develop our own people?’ “Now that’s changed. There’s been a massive change in the way that we think about labour and we’ve moved away from them being labour units to employees that we invest in, as opposed to just hourly labour units.” Gow says firms shouldn’t be sitting back and complaining about Covid but adapting their businesses to deal with it. “We won’t wake up tomorrow or next year and find it’s all gone away. We are living in the
new normal.” Gow took up the Sir Graeme Harrison Professorial Chair in Global Value Chains and Trade at Lincoln University in July last year. The chair’s focus is research, teaching, and extension to address the challenges agricultural exporters face in becoming integral parts of major international value chains and combating behind-theborder trade barriers. For Gow, the appointment closes a circle begun with his undergraduate studies at Lincoln in the 1980s. His career included about 20 years in the USA, primarily at Michigan State, University of Illinois and Cornell, and several years in Europe. With extensive research and industry experience in agribusiness innovation, strategy, and market analysis, he led market development projects in over 50 countries and consulted to the European Commission, OECD, IFAD, USDA, USAID, UNIDO, FAO, World Bank, and numer-
Hamish Gow says firms shouldn’t be sitting back and complaining about Covid but adapting their businesses to deal with it.
ous multinationals, farmers’ organisations, and governments. On his return to New Zealand, he spent 10 years as Professor of Agribusiness at Massey University. He was also recently appointed to the Fonterra Milk Price Panel as the inaugural independent member nominated by the Minister of Agriculture, as established by last year’s DIRA review. Gow says he has been “riding the wave of market liberalisa-
tion around the world” since the 80s, including stints in Eastern Europe, Latin America, Africa and Southern Asia. “All of that time, I’ve been helping farmers and producer groups, and corporates link to local regional and international markets, and building new value chains and new business models.” He says his role at Lincoln is to create programmes that can help students understand international markets and develop the competencies
to support New Zealand agriculture internationally. It continues similar work he was doing at Massey, some in collaboration between the two universities. “So, a lot of that is not going to change, but what the chair has allowed me to do, is to really focus on that as my primary role. Previously I’ve been in teaching roles, which are not directly aligned to driving and supporting the drive of this change in New Zealand.”
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HAMISH GOW says that up to the 1980s, New Zealand agriculture was very much volume-based and highly regulated. Then came deregulation and the transition to a value-driven, whole market economy. “Farmers were already entrepreneurial. But their focus became very much about creating economic value and self-determination of their individual and collective outcomes,” he explains. “We became very focused and extremely good at what we do.” However, Gow believes the challenge now is the transition from value into a world of values – plural. It’s no longer just a single economic dimension but “a multidimensional optimization problem” in that global consumers are concerned about environment, people, modern slavery issues, and well-being. “All of these new dimensions are now being added into the value proposition that we are providing to consumers globally and also in New Zealand.” He believes that farmers will have to work within a new framework, both
domestically to ensure they keep their social license to operate and internationally to achieve the market premiums that we want. “We’re going to need to create new business models, and new accreditation mechanisms that prove the attributes that we’re providing.” Gow says the other big challenge is New Zealand’s separation from its consumers. “We are unique in that we’re the only developed country in the world which sells the majority of what we produce to other markets in the world and we’re dislocated from those markets. “Not just geographically, but also ethnically, culturally, historically – on a whole range of different dimensions,” he explains. “That makes it particularly difficult for us to be able to understand how to engage in those markets, understand the language and culture, understand what’s changing those markets. “And it’s particularly difficult when you start doing that within a Covid-19 environment.”
Gow says there is increasing success happening around with the likes of Rockit apples and First Light Foods’ Wagyu beef, where producers own the intellectual property so they can ensure they never oversupply and discount themselves, and so maintain a premium in the marketplace. He believes there are also some interesting collaborative models being developed, such as taking New Zealand IP and technology to farmers in other countries – so as to maintain some control while putting our varieties on their shelves yearround. “The farmers there benefit from it and we benefit by being able to keep golden kiwifruit on the market shelf for 12 months of the year, where we can only do that out of New Zealand for eight months of the year,” he adds. “I think you’ll start seeing that with the range of apple varieties, and you’ll start seeing that with a whole range of other products. Just being able to produce it in New Zealand is no longer sufficient.”
RURAL NEWS // FEBRUARY 1, 2022
NEWS 15 NO CHALLENGE TOO TOUGH! COAST TO Coast is New Zealand’s toughest multisport event. Competitors run, bike and kayak the 243km from Kumara on the West Coast to Sumner in the east. It’s harsh, and there is many an able-bodied athlete that falls by East Coast Farming Expo event the wayside, broken by the sheer co-ordinator Sue Wilson. effort required to complete the iconic race. Shaz Dagg made history as the first female amputee to complete the Coast to Coast. The mum from Feilding broke her arm in a freak accident while working on a goat milking farm in late 2016. Unfortunately, she was bumped from surgery for five days, which meant nine surgeries in 11 days. Complications meant she events with attendee ended up capacity of 100-5000 with comticketed or un-ticketed partment WHAT: East Coast Farm ing Expo are covered,” she says. syndrome WHEN: Febr uary 23-24, 20 22 Wilson has written and an arm WHERE: Wai roa A&P Show gr ou to both the Ministry nd that did nothMORE INFO s : www.eastc oastexpo.co. of Business, Innoing. “It was nz vation and Employjust useless. ment as well as the Minister It was more for Small Business, Stuart Nash, but has of a hindrance and was draghad little joy. ging me down.” “The outlay of costs is relevant to the So, she told husband Owen that size of our event and will affect small local she wanted it amputated. businesses who have already been affected “He was adamant there was no with the cancellations of A&P Shows, and way I was doing that, but I wanted charity fetes and markets,” she says. to move forward with my life and “Given how important the agricultural in the end he came round. sector is to New Zealand, something that “Now he knows it was the right was particularly highlighted during Covid decision.” times, I would have expected a little more She’s had two amputations as thought to be put into this. Some certainty doctors try to limit the constant for our events in provincial New Zealand complex regional pain syndrome would be appreciated so we too can conshe lives with daily and the phantinue to plan and roll out gatherings that tom pain. are critical to the tapestry of our regions.”
East Coast Farm Expo will go on... but differently ORGANISERS OF the East Coast Farming Expo are confident the annual event will be able to happen despite stricter Covid restrictions now in place. Event manager Sue Wilson says they are well prepared to cope and have a robust plan in place. “The Expo is all about quality rather than quantity, so our numbers are very containable,” says Wilson. “We are determined to make this work.” Extra staff will be brought on to help manage the additional workload for the event, which is backed by the Wairoa Community Development Trust. There will be a one-way system in place around the site. The six defined zones of the Expo will be limited to a maximum of 100 people at any one time. The event is set to run February 23-24 at the Wairoa A&P Showgrounds. “It is disappointing that an event of our size is excluded from the Government’s Events Transition Support Payment Scheme, where arts and culture
WHERE & WHEN
She is undaunted by any chalDespite the challenges, Dagg doesn’t let anything get in her lenge that gets in her way, and way. She is New Zealand’s first those who attend the 2022 East elite para-triathlete, is a sport Coast Farming Expo will have a development advisor for Parafed chance to hear her courageous Manawatu and mentors youngsters story at the Rural Women’s sponsored seminar on Thursday (Febon the Cactus Programme. She has three times won the ruary 24). Her message is simple national para-triathlete champi- – just get on with life. “Things happen for a reason. onships as a PTS4 athlete and has won and twice been second in the There is always a good or positive Oceania championships. From thing to come out of every negaher 10 starts in world triathlon tive. Find a way forward because events she has eight times made if you can’t, no one else can do it Kinghitter will be at Northland Field days site C25 & Cen for you!” the podium.
MA DE
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Elite para-triathlete Shaz Dagg will be a keynote speaker at this year’s East Coast Farm Expo.
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RURAL NEWS // FEBRUARY 1, 2022
16 OPINION EDITORIAL
EDNA
Code red! BENJAMIN DISRAELI once said, “Plan for the worst and hope for the best”. While the 19th century former British Prime Minister could never have known about Covid, his words from the 1800s are as relevant today as they were back in the day. Farmers and those in the agri-sector need to have good plans in place for dealing with the ever increasing likelihood of a major community outbreak of Omicron. Already, a pan-primary sector group — which includes Beef+Lamb NZ (BLNZ), DairyNZ, MPI, the deer and pork industries and Federated Farmers – has been preparing advice for farmers to deal with this contingency. All of these organisations have advice on their respective websites aimed at making it easy for those in the primary sector to plan for such an outbreak. There are also copies of this information in vet clinics and rural supply stores. “It’s all about how to keep you and your farm safe from Covid and, if by chance, you or someone on your farm tests positive and has to go to hospital or into isolation,” says BLNZ’s Will Halliday. Have a written and readily available plan in place to get through this period before something happens. It is also important that farmers have an arrangement with someone – or a number of people – who might be able to help, as well as having a check list and detailed plan of what to do on the farm to keep it running. Meanwhile, the country’s major meat processors say they are well down the road in planning how to mitigate the outbreak’s impact. The meat sector is already seriously short staffed; any outbreak of Omicron – and any resulting staff absenteeism – would have a major impact on its ability to process animals, fill all important export orders and on its revenue. The dairy processing and manufacturing industry would face similar challenges. The meat and dairy processing sectors network of processing facilities does provide the option to move animals and milk between plants if Omicron moves around the country. Previous Covid outbreaks and lockdowns have proven just how vital the agri-sector is to NZ’s economy. Those in the sector need to take Disraeli’s words to heart and – if they have not already – get planning.
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
“SSHHH, Not now Edna, I’m taking Sir Ian Taylor’s advice and listening to the soil!”
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THE HOUND Sticky spot
Murky water!
This old mutt notes that NZs’ mānuka honey sector recently lost a trademark case in the UK, which may end up costing the sector big money. However, it looks like taxpayers could also be big losers as well. It’s been reported that MBIE – backed by the Government – has already lent the country’s mānuka honey producers $1.7m, through the Kānoa Regional Economic Development & Investment Fund, to pay its legal bills. However, that money is now unlikely to ever be paid back to the taxpayer, because the contractual terms forgave the debt if they lost their trademark bid (which they now have). It seems Regional Economic Development Minister Stuart Nash now must decide how much more money he is willing to plough into court costs and lawyers’ fees and to gamble more public money on obtaining an international legal precedent that, thus far, has failed wherever it has been attempted.
The Hound always considered the Government’s $3 million propaganda – sorry, advertising – campaign, last year, to promote its takeover of local councils’ Three Waters assets a huge waste of taxpayer money. However, it appears the big spending campaign actually turned more people against the Government’s proposals that in favour of them. Remember the TV ads – those inane cartoons showing green slime coming out of the taps and how all this would be miraculously cured if Nanaia Mahuta got her way. Well, according to an OIA by news outfit BusinessDesk, the more the Government promoted its reforms with nationwide advertising, the more public opinion turned against it. So, by the time four months of television advertising was finished, opinion moved against the reforms.
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
Fake flake
Bully boys Your old mate notes that the PM has made a big thing out of her government’s supposedly ‘be kind’ mantra. However, even a cursory glance at the way her ministers behave when challenged, or how they react to even the slightest criticism, belies this faux kindness slogan. This has been more and more evident in the ag sector over the last few years. It also provides an answer to those who question why leadership in the sector has been so timid and weak in its reactions to proposed government policy. Feedback is that many of our industry leaders are so worried about upsetting the Government or getting ‘offside’ that they are too frightened to utter any sort of public criticism or dissension of its policies for fear of being ostracised. It’s funny how you don’t see teachers or the unions holding back in their criticism when a National government is in power!
They say nothing is as good as the real thing – and this seems to be the case for fake meat company Beyond Meat. Reports show it has become one of the most ‘shorted’ companies on the US stock market as investors fret over weaker-than-forecast sales and scepticism grows over the plantbased ‘meat’ boom. Short sellers — who make money on share price falls — have piled into the stock. Short-positions on Beyond Meat shares have increased 40% since late October, when the Californiabased company issued a revenue warning. The ballooning bets against Beyond Meat come amid rising uncertainty about the growth in plant-based meat: Data from the US and UK show that sales, which soared in 2020, flattened out in 2021. Although US retailers’ sales of plant-based meat grew 1.6% in December, numbers fell between March and November, taking total revenues for the year down 0.5%.
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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 // FEBRUARY 1, 2022
OPINION 17
Get ready for life’s storms BY THE time your postie gets this to your mailbox, 2021 will be well and truly confined to the annals of history. For farmers the strong schedules meant that the last few months of 2021 finished up pretty good, giving the year a positive wrap up. Due to the virus, the last couple of years have been different, very different! Like you, I could easily fill a page with, “Who would have thought?” Here’s an easy one: who would have thought we would see people here in NZ, out on the highway on their own, in their own car, yet all maskedup? Hey, if you want to do that that’s fine with me, I’m happy for you. My point is simply, it’s one of the many things I never expected to see here in my lifetime! Now it’s on to 2022. I recall reading, and more than once, that the New Year always leads to a spike in gym memberships. I’m aware the virus may have affected this the last couple of years, but prior to that, it seems like those jolly New Year’s resolutions have been the culprits! No surprises there; if there is no resolute in the resolution, then it won’t last more than a week or two, maybe a month. New Year’s wishes would describe them better, don’t you think? The sports year got off to a rather rough start for Black Caps’ fans as they watched them get humbled by Bangladesh. Now there’s another; “Who would have thought?” Nobody, not even the “experts” picked that one! More seriously, our neighbours up in the nation of Tonga have been devasted by the huge undersea volcanic eruption they experienced on January 14. We have good Tongan friends who, at the time of writing, are still waiting to hear from family. Not a good start to ’22, that’s for sure. Life does have a way of throwing some flak at you; it’s never always idyl-
bless. • To contact Colin Millar email: farmerschaplain@ ruralnews.co.nz Omicron, the latest variant of the coronavirus, is due to make life different.
FARMER’S CHAPLAIN
Colin Miller
lic from start to finish. Yep, stuff happens. Everyone gets to face what I call the “storms of life”. For some readers, ‘21 will have been a pretty good year, for others it will have been really tough, horrible even. Maybe you had to walk through a relationship breakdown, a family crisis, or the loss of loved ones. Over the years, we have walked with some folk through some pretty ugly stuff. They have come through it, and I believe you can too. They made it through, and you can make it through too. I have a good friend who went through bankruptcy a number of years back. For sure, it was a very embarrassing, depressing and horrible experience for them. But they made it through and are doing well now. And yes, they are much wiser than they were previously. What helped them through their dark tunnel, you may be wondering? Three things really: family, friends, and their faith. They didn’t have to do it alone! Most of ’22 is still ahead of us. Surprises are ahead this year. That’s just life and the nature of it. We can be well prepared for life’s storms, or seriously caught out. The three things that helped my friend can help you immensely too. Each one is truly important, and all the more so when the flak is flying. So, from me this month, build strong relationships with family and friends. Keep those relationships up-to-date and in good repair. And stay open to finding an active faith if you don’t already have one. Take care and God
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RURAL NEWS // FEBRUARY 1, 2022
18 OPINION
Closing the rural internet divide MIKE SMITH
GETTING FAST broadband to rural areas of New Zealand is the last great challenge for the country’s Internet network. Former Prime Minister Sir John Key recently said that one of the top achievements of his time
in government was ultrafast broadband. The rollout of fibre arrived in time to be a vital help for communities during Covid lockdowns and is now an essential service for all kinds of social and economic reasons. But Key also said he was concerned about the rural/urban divide with a
number of people unable to get access to fibre Internet. Luckily, there is already a solution for many rural properties as New Zealand’s wireless internet service providers, or WISPS, are working to link users with quality broadband and have been building their
own networks to do this. A lot of this work is being done as part of the Crown Infrastructure Partners’ Rural Broadband Initiative project, which aims to improve access to 84,000 rural homes and businesses. Many of its members are getting quality broadband to the most isolated
of places. Wireless internet providers, or regional telecommunications providers, are delivering high quality broadband services to over 75,000 homes and businesses throughout regional New Zealand. I know the sector well, being the founder of Ultimate Broadband (UBB), a
Mike Smith says getting fast broadband to rural areas of New Zealand is the last great challenge for the country’s Internet network.
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wireless provider in Canterbury. Fibre expansion is critical to extending ultra-fast connectivity to regional New Zealand, particularly by providing capacity to the wireless networks that WISPs operate. These wireless networks are the backbone of rural New Zealand’s connectivity, often providing much-needed high speed broadband and services where others cannot. As fibre moves further into the regions, WISPS can increase the capacity of their services, which means faster broadband connectivity for the regions. It has a massive flowon effect for rural New Zealand. WISPS offer a full range of services beyond their wireless infrastructure. For example, many WISPS are already investing in their own fibre networks to expand past the current UFB or rural fibre footprint. A regional focus and a can-do attitude go a long way to making these things happen. And with the experi-
ence of building wireless infrastructure throughout the regions, often collaborating with local farmers in their communities, deploying fibre is a logical extension of what WISPs can offer. WISPA NZ, alongside TUANZ and many ruralfocused groups, has been pushing for a 10-year plan for broadband connectivity to ensure regional New Zealand is not left behind. This calls for industry and Government to work together to ensure more investment gets the desired outcomes. It’s really important to remember that there is no single solution that will close the connectivity gap. Instead, a mixture of solutions is required that together will ensure there is equality between urban and rural connectivity. WISPA welcomes more discussion on closing the connectivity gap and is always keen to hear ideas of how to do this. For more information go to: www.wispa.nz/ • Mike Smith is head of WISPA NZ and founder of Ultimate Broadband, a Canterbury wireless internet provider.
Read us until the cows come home!
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RURAL NEWS // FEBRUARY 1, 2022
OPINION 19
Are we being told the whole truth? STEVEN CRANSTON
THE PIECE by Dr Jacqueline Rowarth ‘Time to do the math’ (Rural News, Jan 17) contained one point which I totally agree with, misinformation is rife within the emissions debate. What is ‘information’ or ‘disinformation’ is often in the eye of the beholder. He Waka Eke Noa (HWEN) is a major policy, which will have long lasting implications on the profitability of our industry. The entire DairyNZ and Beef & Lamb marketing campaign is premised on the HWEN options being less damaging than the ETS. The threat of a worse option seems to be the main redeeming feature from two years’ worth of negotiations and Jacqueline was quick to remind us of this. Even this assessment requires closer analysis; the ETS option is not a credible long-term alternative. It is a broadbased tax on agriculture, which offers no mechanism to encourage emissions reductions. For example, with milk prices often fluctuating $1 per kgMS between seasons, how many dairy farmers will base their management decisions on a 4c/ kgMS levy? It is an utterly pointless concept. That has not stopped Jacqueline and other industry leaders using the ETS threat to coerce farmers into accepting one of their poorly negotiated HWEN options. Whether it was intentional or just an oversight, Jacqueline forgot to include the 95% discount in her ETS pricing equation. When this is added, the ETS is no more costly than the other HWEN options. With elections in 2024 and 2027, the worstcase scenario for farmers over two further election cycles are two years in the ETS. This fallback option, at least, gives farmers the ability to continue negotiating a long-term solution to emissions management. There is nothing to be gained by prematurely agreeing a HWEN option that still requires major changes.
Currently, all options only result in a 1% emissions reduction by 2030. The Government has set a methane reduction target of 10% by 2030 – so the cost analysis of achieving this target is what farmers should pay close attention too. The Climate Change Minister has already indicated he would like to see a stronger ‘price signal’ from HWEN — so expect prices to rapidly increase once farmers are locked in. The reduction targets are not explicitly part of HWEN’s scope, the accounting metrics and reporting are. Demonstrating agriculture can easily manage our warming impact with only minor reductions in methane emissions helps build our case to review the targets. The current methane target is based on ‘value judgements’ rather than science – even the Climate Change Commission concedes this point. If farmers ever want fairer reduction targets, then we must insert science into that process. Science is not negotiable. This makes Jacqueline’s and DairyNZ’s support of the arbitrary 10% target even more curious. The split-gas approach was again touted as the white knight galloping to our rescue. It’s not. Jacqueline could not explain how simply separating out the gases will stop excessive reduction targets being applied to methane. Agreeing to the split-gas approach was a shrewd move by this government. It was sold as a concession but is ultimately meaningless without the inclusion of warming-based accounting. The Zero Carbon Act does stipulate emissions be reported in GWP100, but that does not exclude the use of GWP* as well. A recent meeting between Groundswell NZ and HWEN has established there are no specific objections to the use of GWP* for industry level reporting. Duel reporting would be a significant first step towards correcting the misinformation associated with agricultural emissions.
Contrary to what Jacqueline implied, there has been no suggestion GWP* should be used at farm level. It can and should be used at industry level. This new metric’s detractors often use its limitations at farm level to discredit it. What is behind rural advocacy’s ongoing aversion to
Steven Cranston
better understanding our true impact on climate? Jacqueline’s defence of the HWEN missed out another key point, which brings us back to trust. DairyNZ and Beef + Lamb will receive a significant amount of funding from the giant slush fund set to be created. We must be the only
industry that allows our policy negotiators to have competing financial interests to those they represent. Any major changes to HWEN that reduce the financial burden on farmers would also see less money directed towards the levy bodies for research and extension. If farmers can no
longer trust their representatives, they will find new ones. That may be the enduring legacy of this poorly executed HWEN process. • Steven Cranston is a Waikato-based agricultural and environmental consultant @rural_news facebook.com/ruralnews
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RURAL NEWS // FEBRUARY 1, 2022
20 AGRIBUSINESS
Long family affair with lime YOU MIGHT say that lime runs deep in Greer Manderson’s bones. Her grandfather Jim started Whangarei’s Avoca lime business just after World War II and her dad Bryce still runs it. Twenty-two-year-old Manderson has done a couple of seasons with Avoca and her younger brother Hamish works there as well. However, now her attention has turned to the science of lime. After having completed Honours at Lincoln to a BSc (Biological and Environmental Sciences) at Canterbury University, she reckons lime has become neglected as a soil conditioner and nutrient. Manderson did some of her honours study on the contribution that lime makes to addressing soil acidity, how it impacts legumes (with specific reference to white clover and lucerne) and what role liming has to play in the context of New Zealand soils. She wants to look at the effects and benefits of liming – especially as its use appears to be declining in New Zealand. Having finished her final term at university, Manderson is now looking to make a career as a soil ecologist. Her interest may have started being part of a lime quarrying family, but it all clicked in early 2020 after her father Bryce flew down to take her to a presentation by
Greer Manderson with her dad Bryce.
Dr Christine Jones. This internationally-renowned and highly respected groundcover and soils ecologist has spent much of her life working with innovative landholders, implementing regenerative land management practices that enhance soil health and subsequent ecosystem functioning, e.g. biodiversity, productivity, water quality. The fact that lime is a natural product and can contribute to regenerative practices lit the fuse for her. “My big interest is
NEW ASSOCIATION BRYCE MANDERSON has worked with the Aggregate and Quarry Association to launch a NZ Limestone Producers Association to help promote the use of limestone and provide information about the benefits of its use. Limestone producers around the country have formed a new national organisation to represent their interests and get farmers re-focused on the critical need for lime on New Zealand pasture. Shaun Cleverley is the inaugural chair of the NZ Limestone Producers Association, which will work as a divi-
supporting regenerative agriculture,” she says.
sion of the Aggregate and Quarrying Association, AQA. He says it makes sense for the lime industry to pool resources and work together. “The driving force is that 70-80% of our ad spend is on promoting the use of aglime, rather than our particular product over a competitor’s. Our industry’s opportunity is to now have a body to produce and coordinate a lot of the content and science, which many of us have been doing alone, often simultaneously.” Limestone quarries produce towards 10% of all quarried mate-
Manderson explains how the main purpose
rials in New Zealand. Cleverly says production and sales have been reasonably consistent in recent years but farming has become more intensified which requires more inputs including aglime. He says that there is a direct correlation between grass or crop growth and the need for agricultural lime. “Every farm will have an element of pH correction required, relative to their production.” Part of the new organisation’s pitch is that lime is a natural product, sourced from the earth.
of lime applied in New Zealand is to reduce
soil acidity – and in the process – adding calcium
to the soil, a critical plant nutrient. “I’ve been brought up knowing the importance of it. Now I’m passionate about getting messages across that lime is a natural substance, extracted from the ground,” she adds. “Everything starts in the soil.” Manderson is starting work this year with Canterbury-based regenerative agriculture advocate and consultant, Jono Frew. You can bet the benefits of lime will pop up from time to time. It’s in her bones.
RURAL NEWS // FEBRUARY 1, 2022
MANAGEMENT 21
Dairy sector kicks off campaign to attract more Kiwis to work on farms “Dairy farming offers really great opportunities and a great lifestyle. There are lots of opportunities for people to progress quickly and it’s very rewarding.”
SUDESH KISSUN sudeshk@ruralnews.co.nz
A YOUNG East Coast farmer is the poster girl for a new dairy sector campaign to attract more locals to milk cows. DairyNZ’s ‘Join Us’ campaign aims to give Kiwis a better understanding of what it means to be a dairy farmer and attract locals to farms. East Coast dairy farmer Shannon Munro has been dairy farming for about 10 years. In the campaign, she explains why dairy farming’s the perfect job for her and her family. The dairy sector has been struggling to find local staff. Efforts to bring in overseas staff have been hampered by a lack of MIQ rooms. With her husband, Steve, and three children, Shannon Munro says they opted to move away from urban city life to provide a different upbringing for her young family. “I grew up in the Northland countryside as a kid and moved to Te Puke when I was 11. I always had fond memories of living in the country when I was growing up, and always planned to return one day,” she says Steve was a builder, and after the birth of their first son, Benson, she says they agreed that a city lifestyle wasn’t what they wanted for their family. They moved from Te
Shannon Munro says dairy farming offers many opportunities and a great lifestyle for her family.
Puke to Ngakuru, a rural community in Rotorua Lakes, where Steve found a job as a farm assistant. With her son in tow, Shannon helped with calving and rearing the calves. Over the next decade as their family expanded, they progressed into farm manager and 2IC roles, and then into contract milking, moving around the country as opportunities came up, including farming in Canterbury and the Waikato. “We are now about 30 minutes from Whakatane and are in our first
year leasing a 66 ha dairy block, which was previously leased by Steve’s parents,” says Shannon. “We bought their 170 herd as they purchased a dairy farm.” The land and location of the farm offers plenty of opportunities for Shannon to enjoy two of her favourite hobbies – hunting and fishing. Shannon says their three kids, aged between 3 and 11, love being on the farm, riding motorbikes and being hands on. They especially enjoy making huts in the bush and staying at the fami-
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ly’s glamping spot next to the creek. “The kids can enjoy a lot of freedom on the farm. At the same time, they have lots to keep them busy and they’re learning life skills they may not have otherwise learned in the city,” she says. The family is planning to stay on their farm for the next few years, but ultimately want to own their own small farm. Shannon says that as a young, Māori woman she is proud to be presenting a different face to dairy farming and to be associ-
ated with the campaign to show people what dairy farming has to offer as a career. “Dairy farming offers really great opportunities and a great lifestyle. There are lots of opportunities for people to progress quickly and it’s very rewarding.” DairyNZ chief executive Dr Mackle says the campaign is part of a wider project – Here for the Long Game - aiming to help communities
understand what drives dairy farmers, and how they are working to provide a better future for their farms, the land, their families, their communities, and New Zealand. “Dairy farmers are a core part of the economic, social, and environmental wellbeing of communities throughout New Zealand, and our wider ‘Here For the Long Game’ is a platform for dairy farmers to share with other Kiwis who
they are and what they do in a way that’s open and fun,” he says. “Welcoming and supporting new farming talent is vital to the sector’s long game, so we’re excited to launch a new campaign encouraging young Kiwis to get into the dairy sector,” he adds. The Join Us campaign looks into daily life on a farm - from working with machinery and technology, to caring for animals and the land. “It’s about showing young Kiwis that, for those keen to get stuck in, dairying offers a truly rewarding career and lifestyle. By joining us, you’re not only securing your own future, but becoming part of creating a better one for all New Zealanders,” adds Mackle.
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RURAL NEWS // FEBRUARY 1, 2022
22 ANIMAL HEALTH
Summer strikes on the cards PETER BURKE peterb@ruralnews.co.nz
A WARNING has been issued to farmers about the dangers right now of both facial eczema and flystrike. Beef+Lamb NZ’s (BLNZ) senior biosecurity and animal welfare advisor Will Halliday told Rural News that the climatic conditions around the country are perfect for both of these, with flystrike nationwide and
“FE is more about the humidity, not so much the wet and dry.” facial eczema (FE) especially in the North Island, but also in the top of the South Island Halliday says the warm, humid weather is creating the ideal conditions for FE because it’s essentially caused by a fungus. He says the same Se l f
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moist, warm conditions are also ideal for flies to lay their eggs and produce maggots on the backs of sheep. Halliday says the FEcausing fungus feeds on decaying organic matter at the base of the grass sward. “Summer is the time when the grass dries off and that vegetative matter starts rotting down at the base of the sward, so that’s why you have got perfect growing conditions and plenty of food for the fungus,” he explains. “FE is more about the humidity, not so much the wet and dry. But if you get a spell of rain it will wash the spores off the grass that is standing. Then over the next few weeks, as the moisture soaks in and starts rising out the soil, you can get an increased spore count pretty quickly.” Halliday says farmers in high-risk regions can undertake weekly monitoring of their own property and, when spore counts start to rise, put management strategies in place to prevent stock being affected by this production-limiting disease. “These could include avoiding hard grazing, feeding ‘clean’ forage crops such as chicory or plantain, dosing sheep
The clinical signs of FE are obvious, but it is generally accepted that for every obvious clinically-affected animal, ten others will have subclinical effects.
and cattle with zinc oxide boluses or drenches, or adding zinc oxide to cattle water troughs,” he adds. As well as checking spore counts, Halliday says farmers should also observe their livestock to see if they are exhibiting any clinical signs of FE – such as droopy ears and peeling skin on the face, especially of sheep. Halliday says BLNZ has started publishing spore counts in its weekly e-diaries and will be launching a regional text service in the near future to alert farmers of high spore counts. He says local vet clinics generally have information available on FE spore counts.
THE EFFECTS OF FE WILL HALLIDAY says when FE spores get into the rumen of the animal they release a toxin called sporidesmin, which attacks the liver. The liver is the organ of the body that turns the food into protein and energy. He says once this is attacked, the animal can no longer produce milk as effectively as it should and it generally affects the overall health of the animal, now and in the future. Halliday says the clinical signs of FE are obvious, but it is generally accepted that for every obvious clinically-affected animal, ten others will have sub-clinical effects which are just as damaging. “Right now, we are trying to fatten up lambs as quickly as possible and we are also trying to put condition back on ewes so that they are ready for the ram,” he explains. “So, any disease is going to slow down lamb growth and also going hinder the
ability of the ewes to get pregnant. Long term it might mean that your ewe flock as a whole is not going to be as fertile as it should and this will manifest itself as more dry ewes at scanning time.” In terms of treatment or prevention for FE, zinc is an obvious option because it binds with the toxin in the rumen and prevents more liver damage. But Halliday points out that animals need to be drenched with zinc at regular intervals for it to be effective. He says there are a range of propriety products on the market to deal with FE for both sheep and cattle. He adds that dairy farmers often put zinc in reticulated stock water supplies. “The other point to make in the case of sheep is, since the 1980s, ram breeders have been breeding for FE tolerance because it is a highly heritable trait. That is game changer in terms of protecting your business and flock from FE.”
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RURAL NEWS // FEBRUARY 1, 2022
ANIMAL HEALTH 23
Keeping flies at bay a big challenge IT IS turning out to be almost the perfect summer for flystrike. Recent high temperatures and humidity have created textbook conditions for flystrike in parts of the country. However, there are steps farmers can take to make sheep as unattractive to flies as possible. Will Halliday, Beef + Lamb New Zealand’s senior advisor biosecurity and animal welfare, says the best and most effective approach to preventing flystrike is to use a combination of strategies also known as Integrated Pest Management (IPM).
Halliday says IPM aims to keep pressure on the pest throughout its lifecycle by using a combination of chemical and non-chemical tools. “It’s about attacking maggots and flies from different angles, at different times.” For example, weekly monitoring for the four blowfly species that cause flystrike (Australian green blowfly, European green blowfly, Brown blowfly and Hairy Maggot blowfly) using small offalbaited fly-traps will detect when these flies are active which can then trigger a management
response. This could include shearing, crutching, dipping and/or moving sheep to higher ground with cooler temperatures and higher wind speed. During high-risk periods, Halliday says that intensive grazing should be avoided if possible and hot-spots on the farm identified and avoided. These could include sheltered, scrubby gullies, patches of thistles, bush lines and the lee of shelter-belts. He adds that while chemicals play an important role in the prevention and treatment of
The best and most effective approach to preventing flystrike is to use a combination of strategies known as Integrated Pest Management (IPM).
flystrike, over-reliance can lead to resistance. “It is important to only use chemicals known to be effective on individual farms and use different chemicals to treat an active flystrike lesion than those used for flystrike prevention.” Halliday points out that the Managing Flystrike and Lice publica-
LEVY INCREASE MUST ACHIEVE FEDERATED FARMERS says any increases in the NAIT levy must achieve an accurate and userfriendly system. The NAIT Board is two years into a five-year programme to replace its database, provide more regional and call centre support and make the system more reliable and easier to use. “Nobody welcomes extra costs but if OSPRI is to catch-up on under investment in the NAIT platform and deliver on its workability and farmer support, levy increases are probably necessary,” Feds meat and wool chair William
Beetham says. OSPRI is currently consulting on proposals to increase the NAIT tag levy from 90 cents to $1.35 and the slaughter levy from 50 cents to $1.77. The initial levies in 2012 were $1.10 and $1.35 respectively. In 2014, the levies were dropped to the current lower figures and haven’t been reviewed since. “It is frustrating for farmers to see levies take big jumps due to historical underinvestment in industry assets such as NAIT. It would be far better to have appropriate, well-planned investment with gradual increases in levies rather than
tion – put together by Beef + Lamb NZ, Merino NZ and Sheep and Beef Cattle Veterinarians – explains the lifecycle of pests, helps decipher chemical product labels
and applications. “It is an excellent resource to help farmers put together a management plan for the prevention and treatment of both flystrike and lice.”
• See the Managing flystrike and lice guide for farmers factsheet: https:// beeflambnz.com/knowledgehub/PDF/managing@rural_news facebook.com/ruralnews
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big increases to fix problems,” Beetham adds. “But now, if we’re to achieve a user-friendly system that delivers biosecurity critical to the sustainability of our industry, we’ll need to get the revenue in place and hold OSPRI to account to deliver a system that empowers farmers, not frustrates them.” Beetham says the bottom lines for Fed are that the drive for an accurate, up-to-date and reliable animal tracing system should provide direct benefits to farmers, particularly as regards ease of use and practicality.
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RURAL NEWS // FEBRUARY 1, 2022
24 MACHINERY & PRODUCTS
Is Proceed a game-changer? MARK DANIEL markd@ruralnews.co.nz
FOLLOWING A threeyear development programme, Swedish implement manufacturer Väderstad suggests its latest precision seed drill is one of a kind and a game changer. The recently showcased Proceed precision drill can be used to establish cereal crops, canola, sugar/fodder beet, peas, maize and even large seed crops like sunflowers. Interestingly, the company reports that trials in wheat have shown that seed rates can be halved, without any reduction in yield. Over the three-year development period, numerous trials have
taken place in Sweden, the UK, France and Germany. Lars Thylén, director product management and business development at Väderstad, suggests that by combining the key facets of planting depth-precision, in-row precision, end-of-row precision and seedbed optimisation, the result is a quick, even emergence and vital crop population – where each plant is provided conditions needed to reach full potential. Post-seeding trials in winter wheat, at a seed rate of 150 seeds/m2, showed an increase of 102% in plant biomass, 72% in root biomass and 62% more shoots per plant, compared to a
Vaderstad’s Proceed precision drill can be used to establish cereal crops, canola, sugar/ fodder beet, peas, maize and even large seed crops like sunflowers.
modern seed drill. Flagged as a onestop solution for all crops and conditions, the new machine is said
to be equally at home on ploughed land, minimum-tillage situations, planting into cover crops or direct drilling. Plant-
ing units are arranged in two banks, allowing row spacing of 22.5 or 25cm in cereals. Working in multiples of these numbers,
the machine can be set up to drill at 45 or 50cm for beet crops or canola, or pushed out to 75cm for maize, cotton and sunflowers. Ahead of each row unit, the press wheels are said to be dual-purpose, serving to carry the weight of the machine and also creating soil consolidation for optimal planting conditions. Seed is delivered from a central hopper with a 3,000 litre capacity, with the option of delivering fertiliser during planting via the company’s FH2000 front-mounted hopper system. Seed metering from the central hopper is by way of a modified version of Vaderstad’s PowerShot singulation system, which
takes control of each seed to the soil. Leaving the short seed tube, each seed is received by a stop wheel that ensures optimal seed-to-soil contact at selected depth across the full working width of the drill. Each row is electronically-driven and controlled using the I-pad-based, E-Control System. This offers functions such as row by row shut off, variable rate application, dynamic tramlining, individual calibration, alongside realtime monitoring and control. The expected full release date is scheduled for the latter part of 2022. @rural_news facebook.com/ruralnews
CNH and MacDon team up CASE IH and New Holland Agriculture has announced a partnership with MacDon Industries Ltd to manufacture co-branded draper headers, designed for both companies’ combine harvesters. The new line of draper headers will complement existing header series for the brands and will be available to order in early 2022 at Case IH and New Holland dealers worldwide, except South America. “New Holland and MacDon are well established within our respective areas of the harvesting process. Bringing together the expertise from both brands will unlock the potential to significantly increase our customers’ in-field performance and decrease their running costs,”
says Lars Skjoldager Sorensen, head of harvesting product management NHA. “This partnership creates a best-case scenario for both brands, our dealers, and most importantly our customers.” Based in Manitoba, Canada, MacDon has manufactured highperformance harvesting equipment for more than 70 years. The company is well known for working directly with producers and custom harvesters to make equipment that helps producers efficiently harvest crops. In other news, New Holland Agriculture was awarded the Silver Medal for Innovation by the DLG German Agricultural Society for its Baler Automation System. – Mark Daniel
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RURAL NEWS // FEBRUARY 1, 2022
MACHINERY & PRODUCTS 25
Machinery sector ends 2021 on a high, but challenges loom markd@ruralnews.co.nz
AS WE crank in to 2022, NZ’s agricultural tractor and machinery industry seems to have mirrored the automobile sector with record breaking sales in 2021. Tractor and Machinery Association (TAMA) president Kyle Baxter says that the industry is showing massive resilience, but notes many challenges have to be dealt with – almost on a daily basis. “The number of new tractors sold in 2021 was just under 4,200 units, which could have been more but shipments arriving in late December just couldn’t be dispatched to customers before the holidays. However, it does mean that most distributors will get off to a good start for the New Year,” Baxter explains. “Looking forward, as an association we believe that the numbers for 2022 are likely to go higher, but of course they might get restrained because of availability from the sup-
machinery diesel technicians and the need to fast track more into the country. On a lighter note, the TAMA 2021 Awards have seen Oliver Bertram, a technician at Tulloch
In other industry matters, TAMA is finalising plans to make a ‘Critical Workforce Border Exemption Request’ to the Ministry for Primary Industries, to address the dire shortage of heavy
MARK DANIEL
Farm Machines in Masterton, presented with the Plasback Emerging Talent for Service Award, while James Mitchell of Norwood took out the Trade Me Emerging Talent in Sales Award.
TAMA also announced details of its Ron Gall Scholarship for industry leadership. Sponsored by Tulloch Farm Machines in memory of the organisation’s late
general manager, the award offers a one-off $2,000 prize – to inspire industry leaders, allowing them to attend a course, workshop or conference to further enhance their abilities.
TAMA president Kyle Baxter.
plier factories. The fact is most of the factories have full order books, so it means there is very little wriggle room for placing new orders for production in this calendar year or beyond.” He adds that with the rapid spread of the Omicron variant in Europe and its recent arrival in New Zealand, TAMA members are taking steps to ensure they have workforce continuity, taking lessons from their partners in Europe. “They report that production is being adjusted on a day-by-day basis, with workers checking in sick and, in many cases, off work for many days,” Baxter says.
SNIPPETS Deutz’s ten millionth engine
POWER TRAIN specialist Deutz recently celebrated the production of its ten millionth engine since its inception over 150 years ago. A six-cylinder, TCG 7.8 H2 hydrogen engine marked the milestone, using a four-stroke layout, like the conventional engine that serves as its base. Building on its traditions, the company has gone on to develop diesel, low emission hybrid, fuel cell and synthetic fuel engines. In August 2021, the company unveiled its first production hydrogen engine, with plans to start production in 2024. The TCG 7.8 H2, complements an electrification strategy launched in 2017. This is in addition to the strategic partnership with fuel with fuel cell manufacturer Blue World Technologies that’s helping Deutz to intensify its activities in the field of carbon neutral powertrains. Also last August, the engine manufacturer approved all its engines that meet EU Stage V, the EU’s highest emissions standard, for use with alternative fuels.
Kubota increases share Japanese agricultural and construction machinery group Kubota is expanding its strategic co-operation with the Escort Tractors. The Indian manufacturer of agricultural technology and construction machinery is a major a player in the Indian market, which is reportedly the world’s largest tractor market in terms of unit sales. Both companies already operate a joint tractor production facility as a JV in India. Escort Tractors has been in the tractor business since 1944 and has increased its sales by almost 13% since 2019, predominantly in the Indian market.
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RURAL NEWS // FEBRUARY 1, 2022
26 MACHINERY & PRODUCTS
Higher and wider spraying AMAZONE’S PANTERA 4504-HW self-propelled sprayer has seen several improvements made to it. These include a high-clearance chassis with fully adjustable
track width and ground clearance, allowing it to operate in a wide variety of crops and row spacings. Track width can be hydraulically adjusted
from 2.25 to 3m with a ground clearance of 1.25 or 2.45m, or optionally, an extra wide 3.2m track width with a ground clearance of 1.7m. An optional lift module
Amazone’s Pantera 4504-HW self-propelled sprayer has seen several improvements made to it.
can be used to raise the Super-L2 boom by a further 70cm, giving it an application height of 3.85m, measured from the lower edge of the nozzle. “The angled lifting cylinders provide large clearance under the machine whilst still providing tremendous stability,” says CLAAS Harvest Centre product manager – Amazone, Steve Gorman. The optional SunflowerKit enables the Pantera-HW to be used in tall crops without causing excessive plant damage. The kit consists of crop dividers, drive wheel gearbox covers and an underbelly cover. The crop dividers precisely separate the plants between the rows directly in front of the tyres, while the profile of the flexible underbelly sheet allows plants to slide under the machine without hindrance. Meanwhile, the SmartCentre control system offers ease of operation, instead of operating taps, favouring the pressure sensitive Twin Terminal 7.0 touchscreen, that functions perfectly even when wearing gloves. During operation, the user selects the desired function, and the sprayer adjusts itself automatically. For filling, two different filling profiles can be stored
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SNIPPETS Farmers face machinery delays
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AGRICULTURAL MACHINERY importer and distributor Norwood has given farmers a heads up that they need to plan for delivery delays in the wake of supply chain disruptions brought about by the dreaded C-word (Covid). Norwood’s Philippa Dawe says delivery delays were inevitable. “A buoyant New Zealand primary sector has increased demand for machinery, so Norwood faces the double impact of disruptions at factory and record sales – meaning that some stock is currently in short supply.” WHEN ASKED what consideration farmers should be giving to purchasing new machinery, Dawe explained that lead times to get products from factory to Norwood, and then to customers, has seen the usual 6-7 months stretching out to 12 months for some products. “If a new machine is in your sights, our key message is – if you can – order ahead!”
RURAL NEWS // FEBRUARY 1, 2022
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