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TO ALL FARMERS, FOR ALL FARMERS APRIL 26, 2022: ISSUE 749
www.ruralnews.co.nz
Labour pain(ful)!
LOCKDOWN HITS DAIRY SUDESH KISSUN sudeshk@ruralnews.co.nz
PETER BURKE peterb@ruralnews.co.nz
THE HORTICULTURE sector’s worker shortage is Governmentmade, according to leading Hawkes Bay orchardist Paul Paynter. He’s a fourth generation orchardist and director of Yummy Fruit company, which produces apples, pears and stone fruit. Paynter says the labour shortage has been caused by a combination of naïve optimism on the part of the Government and its failure to get more RSE workers into NZ earlier. “The Government’s lifting of the cap on RSE workers to 16,000 was an untimely call,” he told Rural News. “Nice to hear, but frustrating because although it was the right decision, it was made six months too late.” Paynter says during this and the past season they struggled to prune and thin trees and this “crisis” could have been alleviated if the Government had acted on the advice of the industry, which was to bring in more RSE workers ASAP. He says it seems the Government’s policy has been driven by ideology rather than pragmatism. “They seem to think that all migrant labour is a by-word for exploitation and this isn’t the case at all,” he adds. “We have a terrific record and are always told how good we are in our pastoral care and the way we look after our boys. We put a lot of effort into getting it right.” Paynter says, if he was in charge, he
Paul Paynter says the industry’s chronic labour shortage has been caused by a combination of Government naivety and its failure to get more RSE workers into NZ earlier.
would have freed up the travel bubbles to the Pacific Islands and brought in as many workers as possible. He says there are labour shortages in many sectors – including construction – and the RSE workers are very
skilled people who can do more than just pick fruit. “They have worked in the building industry back home and have a range of skills – including tiling, painting and carpet laying.”
Paynter believes if the Government had heeded advice from the industry – and acted quickly – there wouldn’t be the current problems, which are causing much unnecessary stress and disruption.
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THE OMICRON outbreak in China that sent 400 million residents into lockdown is behind the latest drop in dairy prices, analysts say. The good news is that the price weakness is expected to be temporary. Westpac senior agri economist Nathan Penny notes that the experience in other countries is that Omicron waves eventually pass. “Some lockdown restrictions in China are already scheduled to lift,” he says. He says the 4.4% drop in whole milk powder (WMP) prices and 4.2% in skim milk powder (SMP) prices weren’t unexpected. Immediately prior to the auction, the futures market had indicated a 4% fall in WMP prices. China is New Zealand’s key dairy market and lockdowns have impacted several major cities. Penny says, with this in mind, it’s not surprising that dairy demand and auction prices have taken a hit. However, the magnitude and breadth of the price falls indicate that China’s Omicron outbreak has surpassed all other dairy market concerns. “At this stage, however, we expect this price weakness to prove temporary,” says Penny. ASB economist Nat Keall says the recent weakness in GDT events takes a little gloss off an outstanding period for prices but is understandable.
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RURAL NEWS // APRIL 26, 2022
NEWS 3 ISSUE 749
www.ruralnews.co.nz
HWEN favours farm levy NOT ENGAGED
DAVID ANDERSON
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INDUSTRY LEVY organisations Beef+Lamb NZ (BLNZ) and DairyNZ claim they’ve got a strong steer from the recently completed farmer consultation for a farm levy for pricing agricultural emissions. The two industry bodies are the key protagonists behind the Primary Sector Climate Action Partnership – He Waka Eke Noa (HWEN) – whose aim is to find an ‘industry solution’ to pricing agriculture emissions. Both BLNZ and DairyNZ fronted several roadshows during February and March which proposed three options: • An on farm levy • A processor levy • Placing agriculture into the Emissions Trading Scheme (ETS) “There was a strong preference for the farm-level levy option. Farmers told us they want to be recognised and incentivised for individual actions, have a say on the farm emissions price and have choices about their farm management,” according to the industry bodies’ feedback analysis. “However, there were concerns
DESPITE BEEF+LAMB NZ chair Andrew Morrison describing the HWEN consultations as “one of the most important issues for farmers in 2022”, farmers seem to have been disengaged. Of the estimated 52,293 real farms in NZ (according to BLNZ’s own 2020 figures), less than 5% or only 2,600 farmers bothered to turn up to the 31 in-person – 19 of which were held in the North Island and 12 in the South Island – or the 24 online meetings held for the HWEN roadshow.
Beef+Lamb NZ chair Andrew Morrison
about sector readiness for a farm-level pricing system and the cost of implementing this by 2025.” BLNZ and DairyNZ claim more farmers wanted to move straight to farm-level pricing in 2025 than wanted to transition to a farm-level pricing from a processor-level hybrid levy. “They told us they didn’t want agricultural emissions to be priced through the ETS.” The industry bodies added that farmers wanted better recognition
for sequestration happening on farm – including moving the 2008 baseline. “Farmers want to keep the cost of administration of the entire system – and the levy price itself – as low as possible to achieve the outcomes and the revenue raised recycled back into research and development and use of new technologies.” Both BLNZ and DairyNZ say they will continue to call on the Government to report on warming and emis-
sions, as well as committing to using the latest science when it reviews the methane emissions targets in 2024. Meanwhile, they say the farmer feedback will be used to inform discussions with HWEN partners and help develop the recommendation it will make to Government, which is due 31 May. They add that HWEN will release information about all submissions received from across the agriculture sector at a later date.
PORK SECTOR HAS BEEF WITH EMISSIONS PLAN
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
LEO ARGENT
NEW ZEALAND’S pig farmers say while they are committed to playing their part in reducing agricultural emissions, the current proposals for livestock emissions pricing are unfair to the sector. Pork NZ has made these comments in the wake of the He Waka Eka Noa Primary Sector Climate Action Partnership’s (HWEN) recently completed consultation on policy options for pricing greenhouse gas emissions from livestock. Pork NZ chief executive Brent Kliess says New Zealand pig farming has a small environmental footprint
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relative to other parts of the primary production sector – producing 0.2% of agricultural emissions against 242,600 pigs. Kliess says the NZ pork sector supports a farm-level pricing scheme but has concerns about the current proposals. “Pig farming differs significantly from pastoral farming because pigs are monogastric [having a single compartmented stomach like humans and poultry]. So, they naturally produce lower methane emissions than ruminants like cattle or sheep [ferments food in a special stomach prior to digestion],” he explains. “Pig farming systems are also
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very different to pastoral farming systems. Therefore, we believe more work is needed to assess whether a price on emissions is a suitable policy approach for our sector.” Kliess believes that with emissions from pigs set to be priced from 2025, a farm-level scheme designed for ruminants could be adapted for the pork industry. But he adds that the level of time and resources that would be required to do this and investment needed would have to be consistent with the anticipated benefits of pig emission pricing. “Our low emissions profile and the nature of our sector means reductions in our emissions will require different
solutions rather than a ‘one size fits all’ approach.” Despite the country’s pig sector’s low emissions output, compared to beef and sheep, its small numbers make it an imperfect comparison. This is despite the indubitable fact that monogastric animals do produce less emissions than ruminants. A Guardian article from 2019 – citing Stats NZ – showed that New Zealand’s gross agricultural emissions hit an all-time high at 82.3 million tonnes CO2 equivalent, with a 57% rise since 1990 – the second highest of all industrialised countries. @rural_news facebook.com/ruralnews
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RURAL NEWS // APRIL 26, 2022
4 NEWS
Report claims Fonterra farmers would be the losers report prepared for Fonterra rival Open Country Dairy. Consulting firm Castalia was hired by Open Country to look at the implications of Fonterra’s recent capital restructure. The report claims that for the average dairy farm producing 176,000
SUDESH KISSUN sudeshk@ruralnews.co.nz
FONTERRA’S PLANNED capital restructure could see the co-operative’s share price slump to $2/ share – shaving $4 billion off the shareholders’ balance sheet. That’s the claim of a
kgMS per year, this would mean a loss of around $360,000. The report was made public as Fonterra and the Government discuss final approval by Parliament. Fonterra believes its new capital structure will attract more suppliers, ensure better utili-
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The report claims that Fonterra’s planned capital restructure would mean for the average dairy farm producing 176,000 kgMS per year – a loss of around $360,000 annually.
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sation of assets and help the co-op deliver a higher milk price to farmer shareholders. Fonterra’s competitors, including Open Country, could be forced to match the co-operative’s milk price to retain shareholders. The NZ milk supply has peaked and competition for raw milk is intensifying. Castalia says the restructure shifts wealth from farmers to Fonterra. Fonterra has rejected the Castalia report. In a statement to the NZ Stock Exchange, Fonterra director capital markets, Simon Till, says the co-operative disagrees with the report and a number of its conclusions – including the assertion that protections for a fair
last year – down from $3.13 to $2.90 last week. Jarden head of research Arie Dekker also questions the $2/share reference point used by Castalia. He notes that Fonterra is currently generating earnings per share of 30c and a 20c/share dividend. Dekker says the cooperative hopes to increase earnings and dividends over the next ten years with meaningful investment to support that. “Even in the absence of meaningful dividend growth, discounting dividends currently supported by earnings results in a share value well above the suggested $2,” he says. He also notes that
milk price will be eroded and that the restructure will cause Fonterra’s milk price to increase. “Fonterra also notes that Castalia estimates Fonterra’s future share price on the basis of possible dividends up to 2030 but appears to assume that Fonterra has zero value at the end of 2030. “Fonterra considers this to be a misleading approach to valuing its shares,” Till says. “The report contains no perspectives not previously considered by Fonterra and discussed with shareholders in the lead up to the 2021 vote.” Fonterra’s share price has weakened since the capital structure was approved in December
Fonterra plans to return $1 billion capital to shareholders and that the proposed capital structure plans will not change the way in which the milk price is set. “The level of independence in the setting of the milk price has long been an area of debate in the industry. “The level of independent oversight was reviewed recently with a ministerial appointee added to the milk price panel,” Dekker adds. “Despite the questions, we remain of the view that the robustness of the milk price has been supported over the last two decades by the increase in independent processing capacity put in place in NZ.”
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RURAL NEWS // APRIL 26, 2022
NEWS 5
Sodden coast needs sun! Farmers on the East Coast of the North Island hit by two major storms in the past few weeks are now hoping for some fine weather as they try to repair damage to their farms. Peter Andrew, director of AgFirst in Gisborne, says farmers are starting to put things back together following the recent storm that caused massive slips on hill country farms and damaged crops on the flats. Peter Burke reports. PETER ANDREW says the second storm a week ago, when about 200mm of rain fell, just left the ground sodden and along with the wind was responsible for many trees being blown down. He adds that the latest rain has compounded the problems of the first event and made clearing tracks even more difficult. One farmer reported having 300 slips on their property. “The rivers up the coast from Tolaga Bay to Ruatoria rose again in this latest event and were just as bad as the first event,” Andrew told Rural News. He says the worst part is that it has been raining
almost every second day with few sunny days over Easter and this is having a depressing effect on people trying to repair damage to their farms. “I was talking to a farmer who said that some of the slips are actually best fixed when the soil is really dry, not in the middle of winter. Farmers are trying to restore some access to all parts of their farms, but the soil is just too wet for any significant repairs and many will leave it till summer to do permanent repairs.” Andrew says in some cases boundary fences have been damaged by the slips and there are instances of “mixed flocks”. Some
Sodden and wet: Some of the flood damage around Tokomaru – PHOTO PETER ANDREW.
horticultural crops including squash have been badly affected by the floods. He says people trying to harvest apples and kiwifruit have also had a difficult time with the rain and the resulting sodden soils. “It would have been a struggle to keep the harvesting going.” @rural_news facebook.com/ruralnews
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Nuku Hadfield say their only access to the outside world is by what they call a “goat track”. Bart Hadfield says the usual 55 minutes trip from their farm to Wairoa now takes over an hour and a half. The loss of the bridge is a massive inconvenience to people in the valley, including students who travel to Wairoa daily. Hadfield says the word is that the bridge may be repaired for people to walk over in about a month,
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RURAL NEWS // APRIL 26, 2022
6 NEWS
Migrant workers backbone of local meat works DAVID ANDERSON
SILVER FERN Farms Pareora, near Timaru, heavily relies on its overseas workers – mainly from the Pacific Islands – to keep the meat processing plant operating. SFF Pareora plant manager Bruce McNaught describes his current Pacific Island workforce as the “backbone” of his works. It is not hard to see why, with 150 Pacific Islanders making up a sizeable percentage of the total 621 processing staff currently working at Pareora. In fact, the plant’s workforce should be nearer 880, but the company just cannot find the labour. McNaught told Rural News the dire worker shortage is being exacerbated by a number of his staff isolating or having to stay at home to look after family members due to Covid. That is why he is glad to have workers like Lio Vifale from Samoa and Fijian Asena Lala – along with all the other Pacific Islanders – on his staff.
Vifale was recruited from Samoa to work at Pareora four years ago. He says the opportunity to work and earn money to send back home to his family and community is a big motivation for him and other Pacific Islanders. “Earning money to send back home to my family and country is very important to me,” he says. Meanwhile, Lala – who has graduated up the ranks to become a meat inspector – agrees that being able to help out her family back in Fiji is important. “I am so grateful to the people that brought me here,” she says. Both told Rural News they would happily encourage family members and friends back home in the Pacific to come work in the NZ meat industry. However, they say the time, cost and bureaucracy of Immigration NZ is a big barrier and one that needs to change if more Pacific Islanders are to be encouraged to work
SFF Pareora plant manager Bruce McNaught (centre) with Lio Vifale (L), and Asena Lala (R) – two of the plant’s all-important 150-strong Pacific Island workforce.
in NZ. Meanwhile, both Vifale and Lala – along with many of their Pasifika workmates – have not being able to go back home since 2019, when Covid closed the bor-
ders. McNaught says this has led SFF taking a more active interest in the pastoral care of their Pacific Island workers to ensure of their welfare and keep them in touch with family back home.
While an additional 500 overseas meat processing workers will soon be allowed into NZ to help ease the sector’s chronic labour shortages, the country’s meat processing industry is still
2,000 people short. Overseas labour plays a critical role in keeping the NZ meat industry functioning and actually creates more jobs for locals. The Meat Industry Association esti-
mates that by employing 10 migrant workers, a processing plant is able run one night shift and employ and extra 70 New Zealanders. @rural_news facebook.com/ruralnews
RURAL NEWS // APRIL 26, 2022
NEWS 7
When will they come? PETER BURKE peterb@ruralnews.co.nz
AN EXTRA 500 workers will certainly help but only if they get here in time. So says Meat Industry Association chief executive Sirma Karapeeva following the Government’s recent decision to allow an additional 500 migrant workers into NZ to work in the meat industry. Karapeeva says it is great that the Government is actually acknowledging that there is a “real and chronic” labour shortage facing the meat industry and the extra
“Despite this labour shortage, the processing plants are doing everything they can to operate under such tight conditions, including extending and putting on new shifts.”
workers will help to alleviate the pressure. But she told Rural News that a question mark hangs over the ability of Immigration NZ to process those visas quickly enough to get them working in NZ within the next month or so.
Karapeeva says there is a lot of pre-application work required, such as the migrants obtaining medical clearances and other checks. “If a NZ company is working with a good recruiter overseas, that can be streamlined. The
NO SILVER BULLET MEANWHILE, DAIRYNZ says the decision to allow an extra 500 international workers to help on dairy farms will help with the present shortage – estimated to be 4,000 workers. Chief executive Tim Mackle says his organisation has been working hard to ensure the Government understands the huge pressure farmers are under due to workforce shortages. “We have pushed for 1,500 international dairy workers to be allowed into the country in time for the 2022 dairy season on 1 June,” he told Rural News. “We made it clear to government that the 300 dairy border class exception workers previously approved was nowhere near enough to meet the demands on-farm.” Federated Farmers’ Chris Lewis says while the announcement is good, he warns that getting labour from overseas is no silver bullet for the industry. He says
recruiting staff from overseas is not the first cab off the rank “There is a lot of paperwork back and forth to get staff from overseas and it can take between four and six weeks for Filipinos to get a medical in their country,” he told Rural News. “It’s the same in a lot of other countries, including NZ. You may spend between $70k and $80K to get a worker. For many farmers it’s the route of desperation.” Lewis says the other challenge in recruiting Filipino workers is the attractive options across the ditch in Australia. He points to the fact that many of the wives and partners of Filipino workers are employed in the healthcare sector and the pay is much better in Australia. He says while the cash may be better in Australia the actual working conditions on farms in NZ are better and he says we need to do more to highlight these.
On the Fence right now ?
The Meat Industry Association says the extra 500 overseas workers will help but there are about 2,000 vacancies currently in the meat industry around NZ.
question is, once Immigration NZ receives the application, how quickly can they process that application to give the particular person the green light to come to NZ and start work?” She says past experience suggests that the immigration system is “groaning” and has been for a very long time. Karapeeva believes this raises the question about whether Immi-
gration NZ will be able to cope with the huge number of applications. She says most of the migrant workers have some skills and will receive additional training when they arrive, and on the job, so there shouldn’t be a huge time lag in upskilling these people. It is estimated there are about 2,000 vacancies in the meat industry around NZ.
“Despite this labour shortage, the processing plants are doing everything they can to operate under such tight conditions, including extending and putting on new shifts,” Karapeeva told Rural News. “But they don’t have enough people and that means that the carcass is not fully processed and that means that some value is lost.” She adds that given
the current labour shortage, many companies are making hard decisions about whether to drop some of their further processing. Karapeeva says the advantage of having migrant workers means there is a greater likelihood of having a killing chain operating at full capacity. She says that helps protect all jobs. @rural_news facebook.com/ruralnews
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RURAL NEWS // APRIL 26, 2022
8 NEWS
McDonalds proves healthy for NZ farm produce SUDESH KISSUN sudeshk@ruralnews.co.nz
FAST FOOD chain McDonald’s spent nearly $500 million on New Zealand agriculture products last year. While $175m of the ingredients – sourced from farmers, growers and bakers – were served locally, the company also exported $325m worth ingredients to its overseas stores. McDonald’s NZ annual
shopping list, released last week, shows that it spent $119m more on NZ ingredients than the previous year. Last year was also a record year for beef with a whopping 60.7 million kilograms exported globally to other McDonald’s markets – an increase of 35.4m kg from 2020. In addition, 6.5m kg was used locally for Macca’s 100% beef patties. “New Zealand is one of the top 10 countries
Happy meals ❱❱ McDonald’s purchased over 98 million units of buns, muffins, rolls and bagels ❱❱ 6.8 million litres of milk was sourced from dairy farmers ❱❱ 10.6 million free-range eggs ❱❱ 1.6 million kilograms of cheese & other dairy products was produced by Fonterra for local restaurants, along with 11.6 million kilograms of cheese exported
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Last year 60.7 million kg of NZ beef was exported globally to other McDonald’s markets – this was on top of the 6.5m kg was used locally.
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develop more sustainable methods of farming” says McDonald’s managing director David Howse. “New Zealand suppliers were able to meet record demand for quality beef from international McDonald’s markets in 2021, with other beef export countries struggling due to a variety of issues, including recovering from droughts and the pandemic.” Meat Industry Association chief executive Sirma Karapeeva says NZ farmers and meat companies are proud to be able to offer high-quality grass fed sustainable beef, grown and processed to the highest standards. “Companies are listening to what consumers both in New Zealand and globally are seeking and this is reflected in their product offering. “Being part of the McDonald’s supply chain adds real value to
New Zealand’s red meat sector.” McDonald’s buys nearly 90% of ingredients locally. Howse says the company is even more proud to be sharing NZ quality produce with McDonald’s markets across the globe. McDonald’s markets throughout the Asia Pacific, Middle East and Africa purchased an additional $323m of produce right from New Zealand’s backyard, an increase of $100m from 2020. Along with grassraised beef and cheese, this exported produce also includes 93,000kg of potatoes from Canterbury and 89,000kg of chicken from the Waikato. “McDonald’s value the long-standing partnerships we have built with local businesses since 1976 and it’s something we will continue to support and grow for years to come,” says Howse.
Keep our sheep sweet, NZ!
RURAL NEWS // APRIL 26, 2022
NEWS 9
New chair for fertiliser co-op “I am passionate about Ravensdown’s role as nutrient leaders in the areas of science.”
LEO ARGENT
FORMER FEDERATED Farmers national president Bruce Wills has been elected as the new chair of fertiliser co-operative Ravensdown. Current chair, John Henderson will conclude his term on May 31, after 8 years in the role and 18 years on the board. Wills was voted in as a Ravensdown director in 2015 and has been working closely with Henderson during the past year. Wills says he is excited about the co-operative’s future, which is focusing on improving farmers’ and growers’ environmental and productive performance. “I am passionate about Ravensdown’s role as nutrient leaders in the areas of science, supply and solutions for an ag sector striving for more
describing him as a stalwart leader in the sector. Henderson had been scheduled to retire from the board last Septem-
New chair of Ravensdown Bruce Wills.
ber but was asked to continue on for a further 12 months to provide continuity with new chief executive Garry Diack
taking the helm. He says he is particularly proud of Ravensdown’s focus on the science and technology behind its nutrient expertise. “In my time as chair the issues confronting the co-operative, its farmers and growers have changed dramatically,” Henderson
says. “Our team is confronting this challenge and establishing themselves as trusted advisors and chosen partners in the ag sector.” He believes the co-op’s solutions will assist the ag sector in dealing with greenhouse gas emissions, water quality and productivity.
sustainable ways forward.” Wills is the current chair of the Primary Industries Training Organisation, the QEII National Trust, Apiculture NZ and the deer industry primary-growth partnership. He was awarded the Officer of the New Zealand Order of Merit last year for services to agriculture and the environment. Wills has thanked Henderson for his work at the fertiliser co-op,
STRONG DEMAND FOR WOOL
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WOOLS OF New Zealand (WNZ) is reporting more demand for wool carpets. The wool company says in the past year there has been a 50% rise – 350 tonnes – in local wool sales through its retailers – resulting in higher demand and higher prices for strong wool. Last year, WNZ partnered with FlooringXtra and other independent retailers to launch wool carpets to the NZ market. “Wool-based flooring now accounts for a significant part of our sales revenue and we couldn’t be happier,” says FlooringXtra chief executive Tony TeAu. “In the last six months, we have seen consumers consistently walking into our stores asking specifically for carpets made from wool.” TeAu told Rural News that his company’s wool carpet sales had increased by 50% in the past 18 months. Meanwhile, WNZ chief executive John McWhirter says come May, it will be welcoming additional independent and retail chains to market wool carpets in NZ. “The feedback from retailers we are getting is that consumers are seeking sustainable, renewable and biodegradable carpet made from wool grown right here in New Zealand. Wool’s lower carbon footprint is increasingly in step with consumer expectations.” He adds that one of the key barriers to increasing sales of wool carpets in the past has been affordability. However, McWhirter claims that with WNZ carpet priced competitively with synthetic carpets, New Zealanders now have a genuine choice between a synthetic product or a natural product direct from farmer-growers. “Our goal is to grow the consumption of strong wool in the market by making wool carpet affordable to the majority of Kiwis,” he says. “We can achieve this by utilising modern high volume manufacturing operations without impacting on quality.” – Leo Argent
Dr. Abi Chase
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Restricted Veterinary Medicine; available only under veterinary authorisation. Boehringer Ingelheim Animal Health New Zealand Limited. Level 3, 2 Osterley Way, Manukau, Auckland, New Zealand. COPAJECT® is a registered trademark of the Boehringer Ingelheim Group. Registered pursuant to the ACVM Act 1997, No. A011573. © Copyright 2021 Boehringer Ingelheim Animal Health New Zealand Limited. All rights reserved. NZ-MSP-0001-2021.
RURAL NEWS // APRIL 26, 2022
10 NEWS
Local solution to on-farm GHGs DAVID ANDERSON
GRAEME COLES claims he has developed a product that provides the first real step in practical onfarm greenhouse gas mitigation. “It has been frustrating to hear the dialogue about climate change dominated by pessimism about how long it is going to take to develop new tools to mitigate agricultural emissions,” he told Rural News. “Especially when New Zealand owns the technology to nearly halve total ruminant greenhouse gas emissions immediately.” Coles’ company Knewe Biosystems Limited has developed a new feed supplement product from sustainable biofuel production, which he claims provides environmental benefit, enhances
animal welfare and boosts animal productivity. He says the product Knewe-Mg has a prebiotic effect in the rumen of cows, sheep, deer and other grazing animals. He says it helps lessen animal greenhouse gas emissions by cutting nitrogen loss to the environment by 30% and reducing methane output by cutting animal waste per kilogram of milksolids produced. “The technology does this by improving the performance of the micro-organisms in the rumen, improving the ability of the animal to absorb rumen fermentation products, and as a side benefit, improve the status of the rumen immune system,” Coles explains. He says that science shows that the New Zea-
Knewe Biosystems Limited has developed a new feed supplement which it claims provides environmental benefit, enhances animal welfare and boosts animal productivity.
land-invented prebiotic increases animal productivity relative to feed intake, enhances animal wellbeing and enables farmers to mitigate both methane and nitrogen emissions. “It is cheap, safe and
easy to use, and the approach is patented, so the benefits can all be brought back to New Zealand,” Coles says. First trials on the product were conducted back in 2008. “In 25 evaluations
since, an effect consistent with approximately 10% improvement in feed utilisation has always been found,” he claims. “What the animal has done with this extra nutrition has varied, but observations include up to 23%
increase in milksolids yield, up to 30% increase in weight gain in beef finishers, and 60% increase in weight gain in venison weaners,” Coles says. “Velvet stags show around 15% increase in yield, as well as a reduction in aggression.” Coles adds that research has also shown dramatic decreases in empty cows, incidences of mastitis and of calving problems. “These benefits will show up in at least one extra lactation, which is a significant contribution to herd GHG reduction,” he adds. “Overall, this leads to a 25% reduction in methane intensity of production.” However, Coles believes the most important benefit from farmers using Knewe-Mg is that it can reduce the loss of nitrogen from their herds
to the environment by at least 35%. “Feeding the prebiotic during milking allows the farmer to reduce feed protein level from 14% to no more than 11% - a 15% saving that almost pays for the product by itself,” he claims. “Those reduced losses all show up in reduced emissions of nitrous oxide to an extent that has a better impact than eliminating all methane emissions.” Coles says the product’s prebiotic technology data has been evaluated by Fonterra and it will be commercially available for the 2022-23 dairy season. “Farmers can adopt this technology now, exceed the demands of the climate challenge, and make good money doing so.” @rural_news facebook.com/ruralnews
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RURAL NEWS // APRIL 26, 2022
AGRIBUSINESS 11
F is for farm inflation! DAVID ANDERSON
THE THREE f’s – namely fuel, fertiliser and feed prices – led the pack in double digit on-farm cost increases over the last year. According to the BNZ’s latest monthly agriculture review Rural Wrap, while much of the talk in the primary sector is about the current strong meat, dairy and grain prices, overall farm inputs rose 7% in 2021. This was led by fuel, which leapt 44%, fertiliser rose 29% and feed costs were up by 6%. “There has been a lot of focus on primary product prices of late,” the report says. “It is good news, albeit driven by a range of factors from tight global supply, disrupted logistics and supply chains, to buoyant demand.” However, it warns that the war in Ukraine – on top of an already distorted global supply chain – has led to rapid cost escalation on farm. “Recent increases in energy and fertiliser prices offshore suggest there is more upside to Stats NZ data showing that the cost of farm inputs rose 7% last year.” BNZ says volatility and uncertainty remain significant. “We think the commodity price outlook generally remains solid, but with uncertainty very high, now is not the time to make big bold calls about the outlook.” The bank adds that it is not a “one way bet” ahead.
It points out that a range of commodity prices offshore initially spiked higher on military action in Ukraine, but then backed off their extreme highs, with forward price curves for many commodities in “backwardation”. “That means prices agreed today for product supplied later (say in a year or two’s time) are lower than current spot prices,” the report explains. “Markets seem to be pricing-in a premium today for one reason or another – be it a military risk premium, a short supply squeeze, a trade distortion factor or some combination of the lot.” The report says factors remain significant sources of price risk. “Further supply side and trade disruption and associated cost escalation appear the key sources of upside risk to prices (and costs).” The report adds that one major downside risk to monitor is shaping up to be a significant tightening of monetary policy in various parts of the world. “It may well dent demand more than expected in key markets and, in the process, remove some heat from (commodity) prices.” Meanwhile, the Rural Wrap also suggests keeping an eye on China’s slowing economic growth, which will have a huge impact of NZ’s primary sector and prices. “Recent Covid related lockdowns [in China],
coming on top of weakening momentum into the end of last year, raises the prospect of weaker than anticipated demand for a period ahead,” it warns.
Overall farm inputs rose 7% in 2021 – led by fuel, which leapt 44% and fertiliser which rose 29%.
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RURAL NEWS // APRIL 26, 2022
global agribusiness research analysts sharing market outlooks
12 MARKETS & TRENDS
Rabobank supports clients from farm to fork in
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Demand remains strong Dairy
FARMGATE MILK prices have followed commodity prices higher worldwide, with more potential upside in some regions. Still, the rising costs of inputs, lack of labour, unfavourable weather, and variable feed qual-
ity and prices continue to limit the production response by producers. New Zealand milk production is likely to end the season well down on the prior season, as Southland continues to look for meaningful rain, while parts of
the Waikato could also do with a drink of water. Dairy commodity prices will likely remain elevated through mid-year amid the constrained global supply picture. The longer-term outlook hinges upon consumer behaviour and normalized market conditions, both being very unpredictable.
Beef
RECORD HIGH North Island bull pricing has continued through March – despite significant processor backlogs and absenteeism, which create inefficiencies and added cost to processing. The North Island bull price held steady at NZ$ 5.90/kg cwt through March – NZD +71c ahead of the five-year average in the last week of March. Constrained global beef supply is continuing to
support very high export pricing and demand. Beef exports in February 2022 followed the same pattern as in January 2022 – volumes were back but overall value was higher. Additionally,
Covid-related lockdowns in China are continuing to cause port and logistics challenges, plus the closure of foodservice in some regions is reducing demand. The usual overlap in prime beef
and cull cow kill is being further exacerbated by Covid and dry conditions in Southland and Otago. Congestion and processor backlogs are anticipated for the remainder of this season. As of week
21, of the 2022 season (26 February), the South Island cow and bull kill was -10.5% and -11.4% behind YOY, respectively. RaboResearch anticipates farmgate beef pricing will continue to remain ele-
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Content supplied by Rabobank - Growing a Better New Zealand Together vated through April, supported by constrained global demand.
Sheepmeat
THE CLIMATIC extremes of this season in combination with processing challenges, has impacted both the lamb and mutton kill. As of week 21, (26 February), the national lamb kill was -10% behind YOY and the mutton kill was back
-11% YOY. NZ monthly exports to the UK peak in February to meet Easter lamb demand, but shipping logistics have meant that export volumes were back -5% YOY. UK importers have switched to buying frozen product as opposed to chilled meat to mitigate the risk of shipping delays. Exports to the US also fell considerably (-18%), due to a reduction in
both chilled and frozen exports. Shipping routes to the US remain congested and strained. Despite the disruption caused by Covid and shipping logistics, export earnings for sheepmeat remain strong. High export prices are flowing through to record farmgate pricing. The South Island lamb price in the last week of March was NZ$ 8.15/kg cwt, which is
NZ$ 1.71 ahead of the fiveyear average price. RaboResearch anticipates the South Island lamb price will continue to remain elevated through April.
Fertiliser
UNFORTUNATELY FOR local farmers, we think it is unlikely any significant price relief will be felt before the end of this winter and spring.
MARKETS & TRENDS 13 The primary driver of high fertilizer prices will continue to be the war in Ukraine, on both the supply and energy front. Russia, once responsible for 21% of global potash (MOP) exports, 14% of global urea exports and 14% of mono-ammonium phosphate (MAP) exports, has all but ceased exports of fertilizer. Difficulty in obtaining the product due to Russia’s export ban is only half the challenge; finding vessels and insurance is also very difficult. EU natural gas prices stabilised in recent weeks, which should help to steady global nitrogen prices in the short term. With prices even higher than last year and impacts from the war in Ukraine. While locally-produced urea will soften supply risk to some extent, we see it as important that local farmers account for the supply risk and remain in close contact with their suppliers.
Exchange rate
THE NZ dollar has performed well since the start of the war in Ukraine. Higher prices for agricultural commodities, including dairy, have been supportive and a positive boost to New Zealand’s terms of trade. Tightening by the RBNZ can be expected to further underpin the outlook for the NZ$. That said, despite the strength
TRUST YOUR N AT U R A L INSTINCTS
of the economy, there are clouds on the horizon, with higher prices and interest rates starting to impact. Overall, we expect NZ$/US$ to remain well supported. The NZ dollar currently trades at USc 0.69, higher than a month ago when NZ$ stood at 0.67. We expect NZ$ to trade at 0.70 on a three-month view. @rural_news facebook.com/ruralnews
RURAL NEWS // APRIL 26, 2022
14 OPINION EDITORIAL
EDNA
A woke joke? RECENTLY AGRICULTURE Minister Damien O’Connor made great fanfare when announcing a new farm planning system for farmers and growers. He claims that the Government will spend more than $25 million to “expand and strengthen” the primary industry advisory sector to ensure farmers and growers have access to the highest quality farm planning, support and advice. The new scheme will fund training of farm advisers, with successful applicants able to receive up to $22,500 per year. The scheme aims to train up to 40 students with primary sector advisory experience to help farmers in the uptake of integrated farm planning. This will see employers hiring new advisers, or upskilling existing staff, receiving “up to” $22,500 annually per adviser to help cover salary and training costs. Meanwhile, farm advisory businesses will be helped to provide “up to” 40 students with experience in the advisory sector. “The Government is backing farmers and growers to adapt and innovate with a package of support to strengthen the rural advisory sector,” O’Connor crowed. All well and good. On the face of it, it all seems like a positive thing for the sector. However, one only needs to dig a little deeper to see the application of these new glorified box tickers of government-implemented red tape and regulations on the farming sector is not universal. Of course, as is this Government’s wont, the new advisory scheme will focus on “growing the diversity”… “with an emphasis on attracting more women and Māori into roles”. How about just recruiting the best qualified people for these jobs – no matter what their gender or race is? If this was the case, then perhaps O’Connor’s claim about “building the capacity and capability of advisory services to enable food and fibre producers to access quality support and advice” might actually be believable. Why is this scheme giving priority “to initiatives that support Māori landowners and agribusinesses”? Surely supporting “the uptake of integrated farm planning to make meeting consumer, market, environmental, and business needs easier and less time-consuming” should be for all for farmers and growers in NZ? In fact, O’Connor’s own SOPI report shows revenue from NZ food and fibre exports is predicted to hit a record $50 billion in the year to 30 June 2022; that’s all of NZ’s primary sector – not just a certain Government-favoured part of it.
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
“The brakes failed – I blame Putin!”
Want to share your opinion or gossip with the Hound? Send your emails to: hound@ruralnews.co.nz
THE HOUND Ironic!
Could be worse!
Wood for trees?
Full disclosure?
Your old mate notes that the highest court in the land, the Supreme Court, recently granted leave for appeal for one Michael John Smith v Fonterra Co-operative Group Limited. Smith launched legal action against seven of the country’s largest polluters and fossil fuel producers, including Fonterra and Dairy Holdings, claiming injury from their ongoing emissions. Both the High Court and Court of Appeal dismissed the claim, but the Supreme Court has now agreed to hear the case. “I’m pleased that for the first time the courts are considering the enormity of the climate crisis,” says Smith, who co-chairs the climate portfolio within the Iwi Chairs Forum. The irony is that this is the very same ‘climate activist’ Michael (Mike) Smith who cut down the famous tree on Auckland’s One tree Hill a few years back, with not one thought given to the climate-saving carbon sequestration of this much celebrated tree!
Your canine crusader reckons that the people behind the Campaign for Wool are doing God’s work in promoting the natural sheep fibre as sustainable, renewable and the next best thing since sliced bread. There is no doubt they have a tough road to hoe as strong wool prices are now so low that it has become uneconomic for many crossbred wool producers to continue farming. A mate of the Hound suggests that the Campaign for Wool has a daunting enough job without having an out-of-touch, gormless toff such as Prince Charles as the key figurehead for its programme. Mind you, he reckons it could be a lot worse... just imagine if the Campaign had hired Chuck’s disgraced younger brother, the hapless Prince “Handy Andy” Andrew as its patron!
There is huge concern in rural communities around NZ about good sheep and beef farmland being bought by – mainly overseas-owned – carbon farming concerns. Blame for this disaster can be fairly and squarely sheeted home to the current Government. It has allowed an anomaly in law that bans overseas owners from buying land in this country for farming purposes, but at the same time allows foreign investors to buy swathes of farmland to be planted in pine forests that will never be harvested and be used to offset their carbon emissions. You can’t blame farmers for selling their farms and taking the highest price, which inevitably is coming from carbon forest investors. However, this is not just limited to Joe-average farmers. The Hound understands a high profile farmer – with a number of directorships in farming companies recently sold out to carbon forestry interests. If industry leaders are doing this, what chance for the rest of us?
A mate of the Hound’s recently pointed him to a podcast called The Detail, and a recent episode covering the emergence of rural ginger group Groundswell. The supposedly independent taxpayerfunded podcast, interviewed a Wellington-based journalist all about Groundswell. Said journalist pontificated on putting the boot into Groundswell – claiming the lobby only represented an “angry vocal minority that doesn’t reflect what most farmers are thinking” and “the way they’ve carried on just does the sector an enormous disservice”. The podcast producers made a brief disclosure saying this journalist’s husband “worked in the primary sector”. However, this ‘disclosure’ was not very ‘full’. In fact, said journalist’s husband is in fact the highly-paid spin doctor for many of the established primary sector lobbies in Wellington, most of which Groundswell has criticised and who are currently in a public dogfight with the rural lobby.
PRODUCTION: Dave Ferguson ...................... Ph 027 272 5372 davef@ruralnews.co.nz Becky Williams .......................Ph 021 100 4381 beckyw@ruralnews.co.nz REPORTERS: Sudesh Kissun ........................ Ph 021 963 177 sudeshk@ruralnews.co.nz Peter Burke ........................... Ph 021 224 2184 peterb@ruralnews.co.nz MACHINERY EDITOR: Mark Daniel ............................. Ph 021 906 723 markd@ruralnews.co.nz
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Rural News is published by Rural News Group Ltd. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of staff, management or directors of Rural News Group Ltd.
RURAL NEWS // APRIL 26, 2022
OPINION 15
A huge challenge for NZ Ag JOHN ROCHE
A RECENT Rural News editorial raised issues about work to reduce agricultural emission and the approval of methane inhibitors. It reminded me of a quote by Thomas Edison, the heralded inventor of the incandescent light bulb, who reportedly said, “I have not failed, I’ve just found 10,000 ways that won’t work” – typifying the struggle of innovating in a complex environment. MPI welcomes the effective development and use of emerging technologies to reduce agricultural emissions. New Zealand is food-producing nation and our reputation is important, so we follow a careful and robust process for emerging technologies. We are working to establish a regime for recognising feed inhibitors as agricultural compounds and we expect that work to be completed later this year. Feed inhibitors are just one emerging tool that might help farmers reduce emissions, but it’s key to note that the success of feed inhibitors may depend on the farming systems and conditions they are used in. More than $200 million has been spent in the past decade to help develop mitigation solutions for methane and nitrous oxide. We are making progress, but it must also be realised that New Zealand’s unique problem will require a unique solution. The pastoral sector is the bedrock of New Zealand, contributing more than 50% of our nation’s net export earnings. But this sector, or the ruminant animals (cattle, sheep, goats, and deer)
that graze the pastures, is also responsible for more than 40% of our greenhouse gases. More than 75% of this is methane – a natural gas with a 100-year warming impact 28 times greater than carbon dioxide – and there is no easy solution to this. Over the past two decades, AgResearch scientists have used genetics to breed sheep that produce 10% less
reduce methane, it must be in the rumen at the same time as the feed the cow is consuming. But most of our ruminant animals consume pasture as the majority of their diet. This makes it difficult to use these inhibitors, because only dairy animals are yarded daily
to be fed a supplement. Even then, because its time in the rumen does not coincide with the fermentation of pasture, their effects on methane are much less than promoted internationally. And, so, we are continuing to fund research into other inhibitors and
delivery mechanisms that will work in our pastoral system. However, as with anything fed to food production animals, we need to also make sure that they don’t adversely affect food safety or market access. We are also funding work on the devel-
opment of a methane vaccine, wherein a cow, ewe, or doe will produce antibodies to the methane-producing microorganisms. This would be the holy grail, where one intervention annually would reduce methane emissions for the herd or flock.
It is not an easy problem to solve, but our farmers are used to innovating their way to solutions – and we’re backing them. As the saying goes: he waka eke noa – we’re all in this together. • Dr John Roche is the chief science adviser at MPI
MPI chief science adviser John Roche.
With Moving Day on the way, we are encouraging Farmers to do their bit to maintain the integrity of our biosecurity system.
Moving with the herd?
methane from pasture. As genetics is a permanent and additive trait, there is great potential for further reductions in succeeding generations. We are now looking to advance this genetic technology in cattle and deer. Similarly, Fonterra is trialling a probiotic that has shown promise in reducing methane production when fed to calves. Methane inhibitors, or compounds that can be fed to an animal to reduce methane production, sound simple – and there are a few feed additives that have been shown to consistently reduce methane, but the evidence is primarily from housed systems overseas. For something to
Moving farm without the herd?
1 Create a new NAIT location number. 2 Create a movement within 48 hours of moving. 3 Deactivate the old NAIT location number. Register any new grazing blocks you are in charge of and record movements in NAIT for any animals sold or sent away to grazing.
If you have followed all of the instructions to update your NAIT details and are still struggling, our Support Centre is geared up to assist you. Call 0800 482 463
Complete and sign a PICA change form at your current NAIT location and make sure you become the registered PICA if you are moving to another farm.
For more Moving Day information see
OSPRI.co.nz NAIT is an OSPRI programme
Failure to comply with NAIT obligations may result in fines or prosecution issued by the Ministry for Primary Industries. For more information about your obligations as a PICA, please visit our website ospri.co.nz.
RURAL NEWS // APRIL 26, 2022
16 OPINION
Power lust not love! LIKE MANY of you readers will, I remember the collapse of the Soviet Union – the old USSR. Former US President Reagan’s words to Soviet President Mikhail Gorbachev are now chiseled into history. Standing in Berlin before the wall that had divided East and
West Germany for nearly 30 years, Reagan challenged Gorbachev with these words: “Mr Gorbachev, tear down this wall.” I well remember countries like Romania breaking off their shackles and getting their liberty back. Nicolae and Elena Ceaus-
escu had ruled Romania for something like 25 years and were finally overthrown December 1989. As is the usual with all despotic leaders, their secret police were widely feared, and for very good reasons! What is it with despotic and tyrannical Lead-
FARMER’S CHAPLAIN
Colin Miller
ers like the Ceausescus, and a bunch of others like Mugabe in Zimbabwe, that readily comes to mind? Well, ‘normal’ for them is to plunder the economy for themselves, while their people live largely impoverished and threadbare lives. Mugabe’s wife Grace
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was known as “Gucci Grace” for good reason; her opulent lifestyle was widely reported. The Daily Mail published an article estimating the Mugabes’ personal property empire at around 1 billion dollars! The Ceausescus also lived in lavish luxury in their own private palace with hundreds of rooms. More than 2 million tons of white marble were used in the purpose-built palace, not to mention all the gold – even the bathroom taps were made of gold! Here’s the deal, or perhaps I should say something of an explanation to consider: All leaders like this have no love for their people, none at all. They don’t love them, they lust them. Lust is so much more than just raging sexual desires. A couple of definitions here will prove to be helpful. Love is the desire to benefit others, even at the expense of self, because love desires to bless and to give. On the other hand, lust is the desire to benefit self, even at the expense of others, because lust desires to get and to take. I can add in here also, love is easily satisfied, while lust is insatiable. Idi Amin declared himself ‘President for life’ of Uganda back in January 1971. His net worth was soon estimated to be $100 million. He was also known as the “Butcher of Uganda.” Think about it,
you don’t pick up a name like that because you love your nation and its people! And on and on it goes … the same old, same old! It’s not just a lust for the wealth of a nation either, there is also a huge lust for power right in the mix. Politics and the lust for power go hand-inhand unfortunately. And in countries like ours it flies well below the radar and is much better camouflaged than in the examples I have offered above. It’s the same lust for power, but in Bible speak, it’s more like a “wolves in sheep’s clothing” thing. As I am putting my column together tonight at the kitchen table, we are in the middle of the Easter holiday season – it’s Easter Sunday evening, in fact. For some it’s been all about a long weekend, yet another holiday. For many others, like me, around the world, it’s all about so much more than a few days off, or chocolate rabbits and Easter eggs! We remember our leader, who so fulfilled the love definition I have given above. His love, his “desire to benefit others even at the expense of self” is what we remember and celebrate. Truly a leader worth following. Take care and God bless. • To contact Colin Millar email: farmerschaplain@ ruralnews.co.nz
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CONFUSING! AM I missing something? On the one hand, with the global warming and all the taxes and compliance costs the powers that be are going to give us – as well as wanting us to stop driving our carbon belching cars and utes. On the other hand, it wants to fly in millions of tourists who promptly jump into big diesel guzzling campers and drive thousands and thousands of kilometres. Maybe they will just plant hundreds more farms in ‘permanent forests’ to offset the tourists and the country will have less export income to feed the world from the world’s most efficient agriculture? Mike Davies via email
RURAL NEWS // APRIL 26, 2022
MANAGEMENT 17
On-farm environment specialists needed AgResearch Principal Scientist Dr Alec Mackay believes there is real value in farmers engaging subject specialists outside the current suite of advisors such as water quality, biodiversity, climate change and carbon sequestering. Peter Burke reports FARMERS REGULARLY hire subject specialists such as accountants, vets, lawyers and general farm consultants. Alec MacKay says that with more requirements to be met by farmers around resource and environmental issues, utilising the skills of additional subject specialists can add real value to the quality of integrated farm plans. Mackay, a soil scientist, is leading a twoyear study supported by the Primary Industries Sustainable Land Management and Climate Change fund on the value of expanding the range of subject specialists being used by farmers. This involves working with farmers in the Hurunui District in the South Island (Hurunui District Land Care Group) and King Country in the North Island (King Country River Care Group). The two trial farms in year one selected special-
ists in soils and terrain, indigenous vegetation, carbon sequestration and the emissions trading scheme. Mackay says just a year into the trial there is strong evidence to suggest that these subject specialists around the farm table add real value. “Farm planning is a new area for farmers and the primary sector,” he told Rural News. “While some farmers do have base farm plans already,
data and information with the farmer into the farm business planning process and works program. “The value of the latter cannot be overstated.” Mackay believes that a farm plan is critical for the ongoing success of the business. He adds that identifying risks and opportuni-
ties makes good business sense and the key to a successful plan is having quality data and information, along with sound advice to complete the farm planning process and works program. “In my view, at the moment, there is a real danger that we going to turn farm planning into a compliance tool.”
Alec Mackay believes there is real value in farmers engaging subject specialists outside the current suite of advisors.
with new legislative requirements, alongside the growing expectations of the market the sector needs to acquire some new skills to deal with these challenges.” MacKay adds that it’s not just farmers who need to upskill, but also farm service industries
right through to regional councils and the government ministries who may need to have a hard look at what capabilities they have. “That trusted group around the farm table in the future will need to go beyond just the farm consultant,” he
adds. “It might include an ecologist, soil specialist and someone who can assist with farming with carbon.” MacKay says so far one of the major findings of the study is the strength of the subject specialists in the interpretation and integration of
MacKay says there is already limited numbers of farm consultants and a whole generation of these are moving towards retirement. “I don’t see them being replaced. In the area of land resource mapping, soil conservation, terrestrial and aquatic ecology there is very limited capability available. There are a limited number of students coming out of universities with those skill-sets and in the future we are going to need people with those skills.” Massey University has been
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THE CAPABILITY ISSUE IT’S BEEN raised before, and Alec Mackay raises it again about the lack of skilled subject specialists in the primary sector. He says the sector needs to identify the skill gaps and make conscious investments to build new capability. “Personally, I don’t see those capabilities being developed and growing out there in the sector right now,” he told Rural News. “I think we even have a skill shortage in our traditional areas – let alone in some of these emerging subject areas.”
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trying to close this gap by running short courses on farm planning – that is helping. Mackay says these courses provide the underlying knowledge and some skills to produce a base farm plan, which is the precursor to the overall integrated farm plan and a starting point for engaging subject specialists. He says for farmers to do a big plan by themselves is probably a stretch and it needs specific input from a subject specialist in certain areas.
RURAL NEWS // APRIL 26, 2022
18 ANIMAL HEALTH
Getting rams ready! ENSURING RAMS are in peak condition prior to mating will help maximise their performance and their contribution to the genetic improvement of the commercial flock.
Beef + Lamb New Zealand’s Sarah Powdrell says, well before mating, rams should be fully vaccinated for all conditions of local significance – including salmonella and
clostridial disease and be treated for any trace element deficiencies. Selenium is particularly important as deficiencies can result in sperm defects.
Ensuring rams are in peak condition prior to mating will help maximise their performance.
Rams should be shorn at least eight weeks before mating. Crutching maybe also required closer to mating to clear the testes of wool, ensuring they don’t get too hot. Like ewes, rams should be at a Body Condition Score of 3–3.5 and on a rising plane of nutrition going into mating. For rams that have been in the team for more than a year, they should be checked for abnormalities in the scrotum and testes and vet-checked for scrotal mange. The latter can render rams infertile by increasing the temperature of the testicles. Feet and mouths should also be checked to ensure soundness and mobility. Foot abscesses can elevate a ram’s body temperature and cause infertility for up to two
months. After mating, a second health check should be carried out and any issues addressed. Young rams or older rams with a suboptimal body condition score may need a drench. “Best practice is to carry out a faecal egg count to determine whether drenching is necessary,” Powdrell explains. “In principle, rams should not need drenching if ram ratios, preparation, management and feed during mating were optimal.” After mating, rams should be fed so they return to their pre-mating body weight within six weeks. “Don’t forget about them. They are one of your farm’s best assets so look after them so they can do the best for you.”
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RURAL NEWS // APRIL 26, 2022
ANIMAL HEALTH 19
Hogget lambs – keep or quit? Should twins born to ewe hoggets and grown out to heavy weights be retained as replacements and mated as ewe lambs? A Beef + Lamb NZ and Massey University research project seeks to understand the long-term impact of this practice following the lifetime performance of single and twin ewe lambs born in 2017 from a hogget mating. THE PROJECT, which will finish early next year, has two objectives. The first is to demonstrate that both single and twin lambs born to hoggets can be bred as ewe lambs and that their lifetime performance will be similar to ewe lambs born to mixed-age ewes. Farmers may also benefit from improved genetic gain generated from a younger ewe flock. The second is to determine whether ewe lambs grown to heavy pre-mating weights achieve heavier mature weights and what this means for ewe efficiency. Led by Professor Hugh Blair, the project follows four treatment groups, all born in 2017 and now run at Massey University’s Keeble Farm, near its Manawatu campus. These groups are: Twin lambs born to mixed-age dams and
grown to 48kg by their first mating (the fast group), Twin lambs born to mixed-age dams and grown to 44kg by mating (the control group), Single lambs born to hogget dams, Twin-born lambs born to hogget dams. All the lambs in the trial were identified and weighed at birth. The ‘fast’ group of ewe lambs were supplementary fed to meet the 48kg target mating weight. All lambs were combined into one mob at eight-months-old for mating at the same time and to the same ram team. This cycle has been repeated over four years with all lambs weaned in either December or early January. All the groups are farmed as one mob except at lambing. The variables being measured each year
The research is investigating whether lambs born to hoggets can be bred as ewe lambs and that their lifetime performance will be similar to ewe lambs born to mixed-age ewes.
HOW BIG IS TOO BIG? HOGGET MATING is now a widespread practice. Especially on farm systems can grow ewe lambs to suitable mating weights and then support them through pregnancy and lactation, so they can be successfully mated again as two-tooths. Specialist forages such as red clover, lucerne and plantain play a role in helping farmers grow out their ewe lambs to achieve mating weights, but sometimes these are in excess of 50kg. Farmer experience suggest that these animals may grow to excessive mature weights which then erodes their lifetime profitability due to their increased feed consumption.
include the number of lambs born and weaned to each group, ewe liveweight and Body Condition Score (BCS) at
An important part of this trial is to determine whether there is potentially an optimal pre-mating growth strategy for ewe lambs. This is so they don’t grow out to be excessively heavy mature ewes while still achieving good hogget breeding performance. This part of the project will show whether very heavy ewe lambs at breeding have heavier mature weights. If they do, data will be used to determine what effect this heavier mature weight has on ewe production efficiency. The results of this project will be released next year. More. www.beefandlambnz.com
weaning, percentages of lambs born and weaned, lamb survival to birth, lamb birth weight and lamb weaning weight.
In his most recent project report, Blair stresses that because this is a lifetime study, data will not be fully anal-
ysed until the end of the project in February 2023. However, he says initial findings look encouraging, particularly around potential efficiency gains. As four and a halfyear-olds, the ewe’s retained from the hoggets (and themselves mated as hoggets) remained lighter than the control groups, particularly the twins which were about 7kg lighter, but this lack of size doesn’t appear to have hindered reproductive performance. There were no differences in BCS between the four groups at weaning in December and all groups recorded similar weaning rates (135-147%) and weaning weights (30.48
to 32.2kg). The report notes that it was encouraging that the ewes born as twins from hoggets weaned a similar proportion of lambs to the control group – even with their liveweight handicap. The project builds on previous research carried out at Massey University which demonstrated that while twin lambs from hoggets were smaller at birth, they produced the same weight of lamb weaned as ewes from mixed-age dams. This hinted at potential efficiency gains, but unlike this project, those trials did not mate ewe lamb off-spring until they were 18-months-old.
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RURAL NEWS // APRIL 26, 2022
20 MACHINERY & PRODUCTS
Euro tractor market at decade high While several factors caused production delays, levels of demand remain high – probably due to the high and rising agricultural commodity prices.
MARK DANIEL markd@ruralnews.co.nz
DESPITE ONGOING problems caused by Covid, European tractor registrations for 2021 were up by around 17% over 2020 and reached their highest level in the last decade. It’s reported that the market reached 230,000 “tractors” across Europe. However, the trade association CEMA reports the number of real tractors was just under 180,00 units – after removing quad bikes, side by side vehicles and telehandlers that are all recorded in the overall numbers in some countries. While several factors caused production delays, levels of demand remain high – probably due to the high and rising agricultural commodity prices. The United Nations
European tractor registrations for 2021 reached their highest level in the last decade.
Food and Agriculture Association reports that 2021 food prices averaged around 28% higher than 2020, reaching their highest level since 2011. Registrations varied from country to country. However, the key markets of France and Germany, which jointly account for four out of ten of all trac-
tors registered in Europe, saw rises of 10% and 9% respectively. In contrast, growth in Italy and Poland – the third and fifth largest markets – were especially strong at 36% and 42% respectively. Adjusted numbers saw France record a total of 36,053 tractors, Germany 34,472 and Italy around 24,000
units. CEMA reports that while demand currently remains high, its members are expecting to see a shortage of product over the coming months; Particularly for tractors and harvesting, thereby putting pressure on expected delivery dates for harvest in July and new season cultivations
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in the European autumn. CEMA also cities
ongoing disruptions because of Covid-related staff shortages, transport and logistics – particularly the shortage of shipping containers. From a manufacturer perspective, most companies are reporting that they expect produc-
NEW GM FOR TAMA THE TRACTOR and Machinery Asso- many years, for providing farmers in ciation (TAMA) has appointed Phil the Manawatu with outstanding service. Holden as its new general manager. “Having come from a background Holden took over from Kirsty Fyfe in service and working as a in early April and brings mechanic, he has built up extensive experience in an extensive knowledge leadership and strategic of tractors and machinroles within the primary ery,” Tulloch added. “This industry. He is the former knowledge, combined with executive officer for the his special touch of putting New Zealand Shearing customers first, meant that Contractors Association Merv became the go-to and chief executive of the advisor and trusted partRoyal Agricultural Society. ner in a huge number Holden also holds a of deals with large-scale number of governance TAMA’s newly farmers and contractors.” roles, including chair of appointed general manager Phil Holden. Meanwhile, TAMA’s Cycling New Zealand, a trustee of Kaiaka Wool Industry Train- 2021 Plasback Emerging Talent Award ing New Zealand and an independent was given to Oliver Bertram, a technidirector of Harness Racing New Zea- cian at Tulloch Farm Machines. Meanwhile, the TradeMe Emerging Talent land. Meanwhile, TAMA recently in Sales was handed to James Mitchell announced its President’s Award-For who is employed by Norwood. Molly McDougall from Drummond Service to the Agricultural Machinery Industry to Merv Avery of Transag and Ethridge of Nelson was awarded Palmerston North. TAMA president the National Fieldays Society-EmergJohn Tulloch noted that Avery had ing Talent in Parts Award. earned a formidable reputation, over www.tama.org.nz
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RURAL NEWS // APRIL 26, 2022
MACHINERY & PRODUCTS 21
Drill’s precision metering system offers farmers more choice sion is available. The current Maestro SW will be replaced by the Mae-
MARK DANIEL markd@ruralnews.co.nz
HORSCH’S NEW Maestro precision drill offers the choice of the new AirSpeed system. This is said to give farmers a choice of metering technologies that allows the machine to be individually adapted to the requirements of the farm. There are five models – the CV CX, SV, SX and RV – offering 6 to 36 row configurations. In addition to the new metering systems, the machine features a new clamping profile for easy row adjustment. Having run AirVac and AirSpeed metering systems on development machines, the company reports that farmers were impressed by the simple handling, reliable singulation and the precision placement and embedding of all seeds. AirVac uses a vacuum for reliable singulation and high precision at sowing speeds of up to 12km/h, offering flexibility in a wide variety of crops and range of sowing conditions. This enables the sowing window to be extended in wet seasons. AirSpeed uses overpressure for precise singulation, giving perfect plant spacing at high operational speeds. It also offers consistent embedding of the grain by means of a shot system
stro SV with AirVac (V) metering system and SX with AirSpeed (X) meter-
ing systems. These single grain seed drills will be available from 9m to 18m
working width with 12 to 36 rows. www.norwood.co.nz
Maestro precision drill offers a choice of metering technologies that allows the machine to be individually adapted to the requirements of the farm.
and catching roller for maximum power and efficiency. Both systems can be used in crops including maize, sugar beet, sunflower, soya and rape. The goal is to handle other seeds such as beans and peas in the future. The scraper assembly does not need to be adjusted or changed between crops. It only requires a swap to the correct metering disc, therefore reducing seed handling considerably. A grain sensor provides information about the singulation accuracy in both electrically driven systems, while technologies like SectionControl and VariableRate for individual rows can still be used. A re-engineered seed body delivering higher stability and increased hydraulic coulter pressure is connected to the main frame. Meanwhile, a new clamping system makes it easy to reconfigure from 12 to 8 rows as required.
Fertiliser is applied via a single disc fertiliser coulter with individual depth control, said to be helpful on heavy, sticky soils. The fertiliser coulter is attached to the row unit, allowing row spacing to be easily adjusted. Maestro CV and CX models offer working widths of up to 6m and although they feature new technology, the machines are easy to set up with clear design and use of well-proven Horsch components. Both models can now use a central hopper for seed and fertiliser – known as Main Tank Supply (MTS) – or a large fertiliser hopper and individual seed tanks as with the previous Maestro. Capacity of the CTS configuration is 3,000 litres for fertiliser and 800 litres for seed. The fert-only central tank set up offers 3,000 litres with 70 litres of seed per row hopper. In addition to the 8- and 12-row versions, a new 9-row ver-
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RURAL NEWS // APRIL 26, 2022
22 MACHINERY & PRODUCTS / RURAL TRADER
Will battery power save the world? ALTERNATIVELY POWERED vehicles, be they cars, utes or even tractors, never seem to be far from the news. On paper, the need to switch from internal combustion engines (ICE) to alternatives such as electric seems to be very straightforward – given that ICEs contribute to climate change and fossil fuels are running out. So, is going electric as
simple as it sounds? The use of oil seems to be causing concern and anxiety to many. However, does this concern need to be applied on other resources, with the increasing popularity of electric or hybrid vehicles – namely cobalt and lithium? Both elements play an important part in the electric revolution, but their availability and con-
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trol is focused in the hands of a very small number of players. Therefore, it is likely to be a bumpy road to a fully electric global fleet. Cobalt, while not an essential component of lithium ion batteries, adds greatly to their efficiency, meaning batteries can be smaller and vehicles can be driven further for a given battery size. Alternatives to the popular nickel-cobalt-aluminium (NCA) format is lithium-iron-phos-
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Will the Government’s push to EVs leave farmers and other rural users high and dry without realistic alternatives?
phate (LFP), which offers advantages such as safety and longevity but delivers a much lower power density. Interestingly, LFP batteries are cheaper to produce. Therefore, some manufacturers are using these batteries in shorter range, lower-spec cars and reserving the NCA format for premium models. Other issues preventing a move to electrification include range anxiety, which in real terms has now pushed out from 200 to 400km, and thus has become less of a problem. However, research shows that while an ICE-powered vehicle can be refuelled in 5 minutes, electric charging can take around 30 minutes to top up the battery to 80% - not quite fast enough for those in a hurry! There has been much talk of a new generation of batteries that can
be fully charged in minutes. At present, these appear to be just about non-existent, given that lithium-ion batteries first appeared in the 1970s and still lead the charge. The geo-political part of the equation also needs to be considered and the supply of the raw materials to build a modern battery. China is said to provide 95% of the world’s LFP batteries, while also having control of around 80% of the global lithium deposits. Meanwhile, the major markets of the US and Europe have very small, local manufacturing capability for this type of battery. So, the fact that the West is increasingly relying on China for batteries is a worry – given that country is the world’s largest market for cars and is neither democratic nor liberal. Many governments, including our own, sug-
gest we should be moving away from hydrocarbon fuels. Therefore, it makes sense that there should be a much greater effort to look at alternatives, rather than putting all our eggs in the lithium/ cobalt basket. The laws of thermodynamics says a high compression ratio means a more efficient engine. That means we should be looking at the likes of synthetic diesel fuel, which can be made from any organic waste or derived from crops grown as a bio-fuel. In the agricultural sector, the likes of AGCO, Deutz and FPT are all experimenting with alternatives – including hybrid power plants. Meanwhile, JCB has commissioned a $200 million project to use hydrogen as the power source in an easily modified ICE. Although hydrogen is currently being produced from fossil fuel, there is
potential to manufacture the fuel from water that undergoes electrolysis. Whatever direction current developments take us, it should be remembered that mineral oils were introduced to remove the reliance on whale oil for lamps. In doing so, it was a huge environmental success. Unfortunately, oil has now grown to be the devil’s work in the eyes of environmentalists. Yet, given the current preference for battery power, we may be repeating the same mistake. What our own government must remember is that NZ’s rural infrastructure is based solidly around the use of hydrocarbon fuels in ICEs. So, any moves to remove these vehicles without a realistic alternative – and a considered timeframe – will have a detrimental effect, including people keeping the so called ‘gas guzzlers’ for longer.
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RURAL NEWS // APRIL 26, 2022
RURAL TRADER 23
RURAL ONLINE
CRAIGCO SENSOR JET
"Hassle-free travel for mature travellers’’ •
• Robust construction • Auto shut gate • Total 20 jets • Lambs only 5 jets • Side jets for lice • Adjustable V panels • Davey Twin Impellor Pump • 6.5 or 9.0hp motors GUARANTEED PERFORMANCE QUICK TO SETUP – EASY TO USE – JOB DONE
•
Free Range & Barn Eggs
7 days, 10 May & 23 August. A leisurely South Pacific escape with great sightseeing, food & entertainment.
SUPPLIERS OF:
QUALITY PRODUCTS MADE IN EUROPE OR BY PPP
•
“I have no doubt that if I did not have a Quadbar fitted, my accident would have been fatal!” – Rozel Farms
+GST delivered
Recommended by Worksafe. ACC subsidy available
For a Quadbar, call me, Stuart Davidson, owner of Quadbar NZ, on 021-182 8115. Email sales@quadbar.co.nz or for more info go to www.quadbar.co.nz
A trusted name in Poultry Industry for over 50 years
❖
595
$
Proven beyo nd do ubt! “The Quadbar saved our employee from significant injuries.” – Colin van der Geest
• Nest boxes - manual or automated • Feed & Drinking • Plastic egg trays
9 days, depart 29 May. Join us for the 47th Gold Guitar Awards in Gore including sightseeing in Catlins, Dunedin and Invercargill.
Go to www.ruralnewsgroup.co.nz
READING THE PAPER ONLINE HAS NEVER BEEN EASIER.
QUADBAR
PH 06-835 6863 • MOB 021-061 1800 JETTER VIDEO: www.craigcojetters.com
8 days, departs 7 April & 20 October. A special place for a safe and relaxing close-to-home all inclusive holiday.
14 days, depart 15 December Auckland to Auckland. A close to home festive cruise.
SHEEP JETTERS SINCE 1992
❖
QUADBAR 5 YEAR SURVEY
600 500 400 300 200 100 0
For full details
www.travelwiseholidays.co.nz
DOLOMITE
NZ’s finest BioGro certified Mg fertiliser For a delivered price call... 0800 436 566
SINGLE DOG BOX
LASER FF95
DIESEL HEATER
tunnel houses
t/f
03 214 4262 |
e
T T T T T
info@morrifield.com
61
NUMBER OF DEATHS 0
TOP DOG BOX • Accommodates up to 4 dogs
• In-house drainage
• 6 individual air vents
• Tie down lugs on each side
• Removable centre board
• Fits all wellside & flatdeck utes (2 models)
• 2 lockable galvanised gates
• Raised floor for insulation
Single without tow ball mount ................... $625 Single with tow ball mount ........................ $699 Wellside .................................................... $985 Flatdeck ................................................... $985
Due to Covid related delays, new stock will not be arriving until later in the year - order now to secure yours!
Grow vegetables all year round Very affordable and easy to install New Zealand designed and made 40 years producing tunnel houses Range of models sized from 2m - 10m
ROLLOVERS
NUMBER OF QUADBARS 479
ALL PRICES INCLUDE GST
ü Huge 9.5kW output. ü Diesel is approx. 30-50% less than “on demand” Electricity or Gas. ü DIY Install or we can arrange. ü No wood to cut, cart or store. ü No mess, N O indoor diesel odours. ü As easy to use as a light switch.
0800 379 247 www.avonheating.co.nz
www.morrifield.com
Phone 0800 625 826 • www.mckeeplastics.co.nz
BUFFALO BOOTS & RAINWEAR 175% more crack resistant
ZIP STRIP quick lacing
BIB OVERALLS
$99 $109
100% Waterproof
Flexible
earthwalk.co.nz
ONE STOP WATER SHOP 300mm x 6 metre .......................... $410 400mm x 6 metre .......................... $515 500mm x 6 metre .......................... $735 600mm x 6 metre .......................... $989 800mm x 6 metre ........................ $1496 1000mm x 6 metre ...................... $2325 1200mm x 6 metre ...................... $3699 ALL PRICES INCLUDE G.S.T.
$165 valued at $280
STEEL TOE X (with Scuff Guard) STEEL TOE (without Scuff Guard)
Colour = Dark Brown Buffalo Leather
PLAIN TOE (without Scuff Guard)
Stitched On Soles 175% more crack resistant than normal leather
valued at $140
0800 16 00 24
$170
PLAIN TOE (without Scuff Guard)
$88
Hood Visor
SLIP ON
STEEL TOE X (with Scuff Guard)
LEGGINGS
Fleece Collar
LACE UP valued at $320
Acid Resistant Durable Seams
valued at $230
9am-5pm
$20
valued at $160
JACKET
PHONE
in stock now
free shipping
CULVERT PIPES
New Zealand’s CHEAPEST Culvert Pipes! FREE joiners supplied on request. • Lightweight, easy to install • Made from polyethylene
Check out our NEW website www.mckeeplastics.co.nz
SIZES SELLING OUT FAST New Zealand owned & operated
sizes: BOOTS 5 - 13 (NZ)
RAINWEAR XS - 4XL
Phone
06 323 4181
or
0800 625 826 for your nearest stockist
Joiners supplied FREE with culvert pipes
LET’S CUT TO THE CHASE...
TURBO® is the rain-resistant pour on that delivers better potency and a broader spectrum in a world-first formula for growing cattle.
PROUDLY
NZ
OWNED
Available exclusively through veterinary practices nationwide. Visit www.alleva.co.nz for more information. TURBO® is a registered trademark of Alleva Animal Health Ltd. TURBO® Pour On (A011722) is registered pursuant to the ACVM Act 1997. See www.foodsafety.govt.nz for registration conditions. *Available while stocks last.
www.alleva.co.nz
Alleva - TURBO Pole Saw PROMO_ 265mm W x 390mm H.indd 1
Purchase 7.5Ls of TURBO® Pour On and receive an Oleo Mac Pole Saw* Visit your local veterinary clinic for details.
26/03/22 2:42 PM