KS ARE LESS WHEN WE’RE F THE PICTURE. NEWS
ANIMAL HEALTH
Maori support for HWEN may be a key factor PAGE 4-5
Making use of ewe scanning data. PAGE 25
wer, a farmer or a commercial business, moving ahead means that usually comes with a few risks along the way. But with us an progress with more confidence. That’s because FMG offers d advice and knowledge that only comes from working alongside generations. To find out more, ask around about us. Better still, 366 466 or go to fmg.co.nz. FMG, your partners in progress.
Turn to page 1
TO ALL FARMERS, FOR ALL FARMERS good of the country. JUNE 21, 2022: ISSUE 753
www.ruralnews.co.nz
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NEWS
ANIMAL HEALTH
MANAGEMENT
Maori support for HWEN a key factor. PAGE 4-5
Make use of ewe scanning data. PAGE 25
Research project provides valuable hill country farm data. PAGE 22
TO ALL FARMERS, FOR ALL FARMERS JUNE 21, 2022: ISSUE 753
www.ruralnews.co.nz
Put up or shut up! PETER BURKE peterb@ruralnews.co.nz
HE WAKA Eke Noa (HWEN) chair Michael Ahie says the approach put forward by the primary sector climate change action partnership in its report to the Government on how to deal with on-farm emissions is the best option. Ahie told Rural News that it’s important to remember that NZ has a biological economy and that the ETS is not the answer to dealing with agricultural emissions. “There is seriously good science behind the recommendations,” he says. “To the critics I say – what is the alternative? If you can come up with one that is going to be better for NZ, let me know.” Ahie says the farm-level system will enable each farmer and grower to clearly see the direct impact of their on-farm decisions. He adds that it gives them incentives for using new technologies and practices as they become available and financial recognition of on-farm carbon sequestration. He concedes that the cost impact will vary from farm to farm. Ahie believes the HWEN recommendations enable sustainable food and fibre production for future generations, while playing a fair part in meeting the country’s climate commitments, and is the simplest, best system. He hopes politicians will support it. Meanwhile, B+LNZ – which says it is supportive of the HWEN proposal – has concerns about the pricing mechanism being proposed. Chair Andrew Morrison says it wants
“There’s no doubt that emissions’ pricing is confronting for many farmers and for some could significantly affect profitability.” to be sure that what is being asked of sheep and beef farmers is “fair and equitable”. An information sheet put out by B+LNZ states that there is a need for a cautious approach in regard to pricing and says, “B+LNZ’s more detailed additional modelling indicates that the He Waka Eke Noa modelling underestimated the impacts on sheep and beef farm systems’ profitability and therefore the emission reductions likely to occur at the prices modelled by the programme. “This is because using an average farm does not reflect the significant diversity across and within our farming systems.” It further adds, “There’s no doubt that emissions’ pricing is confronting for many farmers and for some could significantly affect profitability. Through HWEN we’re focused on minimising costs while supporting farmers to play their fair part in measuring, managing and reducing emissions”. HWEN’s proposal is now in the hands of the Government, which has until the end of the year to decide whether to accept, reject or modify the recommendations. – See more, pages 4-5.
Michael Ahie says the farm-level system will enable each farmer and grower to clearly see the direct impact of their on-farm decisions.
THE RISKS ARE LESS RISKY WHEN WE’RE PART OF THE PICTURE. Whether you’re a grower, a farmer or a commercial business, moving ahead means making changes. And that usually comes with a few risks along the way. But with us as your partner, you can progress with more confidence. That’s because FMG offers the kind of specialised advice and knowledge that only comes from working alongside rural New Zealand for generations. To find out more, ask around about us. Better still, give us a call on 0800 366 466 or go to fmg.co.nz. FMG, your partners in progress.
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MPI Update
www.mpi.govt.nz | PH 0800 008 333 |
NZ food and fibre exports to hit record $52.2 billion The primary sector’s resilience and hard work is at the heart of record export earnings for the past 12 months, says Ray Smith, the Ministry for Primary Industries’ Director-General. Food and fibre sector export revenue is expected to reach $52.2 billion in the year to 30 June. It will be the first time New Zealand has recorded more than $50 billion in food and fibre exports, and is an increase of almost 10 percent ($4.6 billion) on the previous year. Export revenue is expected to build steadily to $56.8 billion in the year to June 2026. The latest Situation and Outlook for Primary Industries (SOPI) – released on June 9 – forecasts healthy growth across the majority of New Zealand’s food and fibre export revenues, including: • Dairy to reach a record $21.6 billion in the year to 30 June –
up 13 percent on the previous year, driven by strong dairy prices and demand; • Meat and wool expected to rise 18 percent to $12.2 billion, due to food services reopening and tight global supply; • Horticulture to hit $6.7 billion, a rise of 2 percent, due to strong demand for kiwifruit, apples and pears, and wine. • Seafood expected to hit $1.9 billion, an increase of 9 percent. The exports of logs and forest products is expected to decrease by about 4 percent to $6.2 billion, due to global freight congestion. At the SOPI launch in Wellington, Mr Smith thanked the sector for its hard work, saying everyone involved should be extremely proud. “The record result is great testament to the sector’s resilience, and puts us on a very firm footing for future growth.”
MPI Director-General Ray Smith with the June 2022 Situation and Outlook for Primary Industries and the latest progress report on the Fit For a Better World roadmap.
Keeping a close eye on FMD outbreak
FINALISTS NAMED IN 2022 GOOD EMPLOYER AWARDS Eighteen employers have been named as finalists in the 2022 Primary Industries Good Employer Awards. Now in their third year, the awards are run by the Ministry for Primary Industries and the Agricultural and Marketing Research and Development Trust to celebrate employers who put their people at the heart of their businesses. MPI’s director investment, skills and performance, Cheyne Gillooly, said they received an impressive number of entries. “Central to all of them was a real passion in putting their employees’ health, welfare and wellbeing first.” AGMARDT chair Nick Pyke says the success of our food and fibre sector depends on our people. “Good employers create team environments where innovation and new thinking is fostered, systems and processes are designed with care for people top of mind, and where people feel supported and safe. “Retaining the necessary workforce requires employers to champion good employment practices and really nurture their employees, and this is demonstrated throughout the high calibre of entrants for the awards.”
The winners will be announced on June 29. Award categories and finalists are: Employee Development: Constellation Brands NZ – Auckland wine, Kairoa Dairies – Ashburton dairy, Legendairies Ltd – Invercargill dairy, Raglan Food Co – Waikato food. Safe And Healthy Work Environment: Align Farms Limited – Ashburton dairy, BeeNZ Ltd – Katikati apiculture, Roseburn Orchard – Roxburgh horticulture, Yealands – Blenheim wine. Inclusive and Diverse Workplace: Legendairies Ltd – Invercargill dairy, Recreational Services – Auckland primary industry employment, Sealord – Nelson fisheries, Thornhill Horticultural Contracting Ltd – Napier horticulture. Small Business Recognition: BeeNZ Ltd – Katikati apiculture, Kairoa Dairies – Ashburton dairy, Legendairies Ltd – Invercargill dairy, Mosa Farming Ltd – Dipton, Southland dairy. Māori Agribusiness: Tāne Mahuta NZ Ltd – Whakatane forestry, Te Arawa Fisheries Limited – Rotorua fisheries. Supreme Award: Chosen from the category winners.
Biosecurity New Zealand continues to closely monitor the Foot and Mouth disease outbreak in Indonesia, and asks farmers to remain vigilant. “New Zealand has some of the world’s toughest biosecurity measures for FMD and although the risk is low, we want people to keep an eye out for any health issues in their animals,” says Biosecurity New Zealand Deputy Director-General Stuart Anderson. “Our multi-layered biosecurity system includes risk assessment, visual inspections, X-ray screening, “Although the risk is low, scanning technolwe want people to keep ogy, and detector an eye out for any health dogs to prevent risk issues in their animals.” goods being carried into New Zealand by travellers or arriving by mail. All shipping containers and imported goods are assessed for biosecurity risk.” Mr Anderson said Biosecurity New Zealand had been working closely with sector groups here and its Australian counterparts. “We are reviewing information as it comes and have offered technical support to Indonesia. An audit last year of Indonesia’s supply chain for palm kernel, which is used as a feed supplement in New Zealand, showed it was meeting strong import health requirements. We are currently carrying out another audit to ensure that the supply chain continues to meet our requirements.” The outbreak was a timely reminder for New Zealand’s farmers to have strong biosecurity measures in place, Mr Anderson said. “Farmers should not feed untreated meat products to animals, especially pigs, and they should be keeping overseas visitors away from stock for a week after their last contact with animals overseas. “It is essential that farmers continue using the national animal tracing system and having strong biosecurity plans on farm. “Anyone concerned about their animals’ health, especially symptoms including high fever, mouth and feet blisters or erosions and lameness, should call their veterinarian or Biosecurity New Zealand’s exotic pest and disease hotline (0800 80 99 66).”
RURAL NEWS // JUNE 21, 2022
NEWS 3 ISSUE 753
www.ruralnews.co.nz
Gloriavale standoff! SUDESH KISSUN sudeshk@ruralnews.co.nz
NEWS ��������������������������������������1-14 MARKETS ��������������������������� 16-17 HOUND, EDNA ����������������������� 18 CONTACTS ������������������������������ 18 OPINION ���������������������������� 18-20 AGRIBUSINESS ���������������������� 21 MANAGEMENT ���������������22-23 ANIMAL HEALTH ������������������ 25 MACHINERY AND PRODUCTS ���������������������� 26-28 RURAL TRADER ������������� 28-29
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
WESTLAND MILK’S decision to stop collecting milk from farms owned by reclusive Christian community Gloriavale is heading for a showdown in court. Canaan Farming, which operates Gloriavale’s dairy farms, claims there’s no legal ground for Westland to blacklist its top performing business. And while the court case proceeds, Westland will continue to pick up winter milk from three farms operated by Canaan Farming. Westland had given notice to Canaan Farming that milk collection would cease from June 13. However, Gloriavale spokesman Stephen Standfast told Rural News that it has acquired an injunction from the High Court to ensure Westland Milk continues to collect its winter milk. “Significant animal welfare and environmental issues would arise as a result of Westland Milk’s advising of cessation of milk collection for an indefinite period,” Standfast says. A spokesperson for Westland confirmed Canaan Farming has filed an application for an interim injunction against the Hokitika-based processor. “Westland has been advised that the injunction application will request that Westland be compelled to perform the terms of its milk collection contracts with Canaan, specifically to require Westland to continue to collect milk from Canaan’s three farms,” the company says. “Both parties have agreed that Westland will continue to collect Canaan’s milk until the Court has determined Canaan’s application for an interim injunction.” Currently Canaan Farming has 430 cows providing winter milk to Westland, of which 250 are autumn calvers. Another 1,500 cows will calve in spring and Standfast says planned start of calving is August 1. He says production from the three
• Ideal for Cattle Troughs • High Flow • Side/Bottom Mount • Detach to Clean • Compact/Robust
Gloriavale has acquired an injunction from the High Court to ensure Westland Milk continues to collect its winter milk.
dairy herds is 390,420 kgMS or about 480 kgMS/cow. “One herd is a certified A2/A2 milk supplier, and the other two herds rank in close to the top 5% of the national herd for breeding worth (BW) and production worth (PW).” Standfast points out that Canaan Farming Ltd has participated in Westland’s ‘FarmEx’ independently audited on-farm quality assurance program since its inception and has commonly achieved either ‘role model’ or ‘fully compliant’ status in “virtually all categories”. “We seek to run our farms to a high standard and comply with all relevant legislation. This is confirmed
by WMP’S FarmEx program, Assure Quality audits and Ministry for Primary Industries surveillance,” Standfast told Rural News. “Canaan Farming remains committed to being transparent with our business partners and constructively resolving any issues of concern they may have.” Westland’s decision to cut ties with Canaan Farms follows an Employment Court ruling that members of the West Coast-based Gloriavale community working long hours from the age of six were employees. The ruling referred to “strenuous, difficult and sometimes dangerous” work done by children.
• Ideal for Small/Low Demand Troughs • Low Flow • Above/Below Water Mount • Built in Check-Valve
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Gloriavale is also facing action from meat companies. The community-owned Value Proteins – an offal processing plant and pet food maker – faces losing supply of offal product from major meat processors over the same concern about its labour practices. A number of meat companies and abattoirs truck offal to the export-licenced Value Proteins plant, which turns it into high value pet and stock food. Silver Fern Farms, Alliance and ANZCO have all indicated they are looking at terminating commercial arrangements with Value Proteins. @rural_news facebook.com/ruralnews
• Ideal for Compartment Troughs/Tanks • High Flow • Top Mount • Detach to Clean • Compact/Robust
RURAL NEWS // JUNE 21, 2022
4 NEWS
Is HWEN the answer? PETER BURKE peterb@ruralnews.co.nz
THERE IS no credible alternative! That’s how Beef+Lamb NZ director, Nicky Hyslop, describes the recently announced report by the primary sector climate change action partnership on how the Government should deal with agricultural emissions and sequestering carbon on farms. Hyslop, who was at the public announcement of report known as He Waka Eke Noa (HWEN), says farmers were adamant that they didn’t want agriculture in the Emissions Trading Scheme (ETS) as proposed by the Government. HWEN comprises 13 primary sector groups – including Māori agribusiness – and was set up in 2019 in a bid to stop the Government lumping agriculture into the ETS. Since then, it’s been developing an alternative approach and says it has consulted widely on this. The main recommendation of the 80-page report is that a farmlevel, split-gas levy – with built-in incentives to reduce emissions and sequester carbon – be adopted from 2025. The farm-level concept is seen as the more forwardlooking approach because it rewards, by way of a reduced levy, those indi-
DairyNZ chair, Jim van der Poel, claims the HWEN proposal is a win-win.
DAIRYNZ BACKS THE PROPOSAL
Nicky Hyslop says B+LNZ is aware of the challenges that lie ahead for the sheep and beef sector.
vidual farmers who cut their emissions, while those who don’t will be required to pay the full levy. The other key element in the report is a proposal to set up an Oversight Board and a Māori Advisory Board to ensure that the interests of farmers and Māori are considered during the implementation phase. Hyslop says B+LNZ is aware of the challenges that lie ahead for the sheep and beef sector, but says her organisation is committed to playing its part in supporting
HWEN. She says the report is detailed and complex and she doesn’t expect all farmers to necessarily read or fully understand the implications of the report. “One of the roles of B+LNZ is to digest that information and get it out to our farmers so that they really do understand it,” she told Rural News. B+LNZ chairman, Andrew Morrison, who was overseas when the report was released, says the farm-level levy system is the best option available.
“It’s not perfect but it’s significantly better than the ETS for farmers. Let’s be really clear about this – this process has been hard and it’s a major achievement to have worked collaboratively across agriculture and with Māori and government to produce a joint recommendation,” he says. Support for the HWEN proposal has come from the Meat Industry Association. MIA chief executive Sirma Karapeeva says NZ is leading the world in addressing agricultural
emissions. She says this emissions pricing system will demonstrate to New Zealanders and to our global customers that we’re committed to producing environmentally sustainable red meat. And that our story is backed by science and modern farm management practices. “We believe this option is the only way to ensure the NZ sheep and beef sector can continue to be a global leader in climate action, while remaining profitable and viable,” she says.
DAIRYNZ CHAIR, Jim van der Poel, claims the HWEN proposal is a win-win for all New Zealanders. He says during their consultation programme, 99% of farmers (who turned up to meetings) opposed agriculture being included in the ETS and 86% supported the farm-level proposal. “This is because farmers want to be recognised for their own emissions – not just an industry average,” he told Rural News. “If they have some behavioural change or if they do something on farm to lessen their emissions, they want to be recognised for that.” Van der Poel says, under the HWEN proposal, there is an opportunity for levy funds to be recycled back to fund new research and tools to further help farmers reduce their emissions. “Unlike the ETS, the HWEN system will actually reduce emissions, and will recognise and incentivise on-farm actions. It will invest in R&D to find new solutions, building on the already significant primary sector investment,” he says.
RURAL NEWS // JUNE 21, 2022
NEWS 5
Maori play key role PETER BURKE peterb@ruralnews.co.nz
MĀORI SUPPORT for HWEN may be a key factor in winning government support for the primary sector-led initiative. The Māori perspective is obvious when reading the narrative in the report. Traci Houpapa, chair of the Federation of Māori Authorities (FOMA), says she supports the recommendations in HWEN. She says, from the very beginning, when the partnership was first proposed, Māori strongly advocated for a Te Ao view, which ties in health and wealth of people as well as the wealth of the land. “Our preferred stance has always been centred on taiao (the environment),” she told Rural News. “The current profit-driven focus of the primary sector industries carries a significant environmental cost. It is not sustainable and we have pushed for a values-over-
value approach.” Houpapa says Māori warrant special consideration, having come to the table with a long tail of deficit. She says they lost 95% of their land post Treaty and almost 60% of the land they got back is hard hill country, which means that when adverse climatic events occur, Māori farms tend to be disproportionately affected when compared to Pakeha farms. “It is important to remember that FOMA has vested interests in the performance of all the HWEN signatories,” she adds. “As significant levy payers into those industry groups, we expect better performance, participation and better partnership and investment into the Māori climate change adaptation process.” Houpapa says the HWEN report has resulted in a series of valuable wins for Māori farmers, growers and landowners.
Traci Houpapa claims that Māori warrant special consideration, having come to the table with a long tail of deficit.
ANTHONY GOODWRIGHT ..was considering purchasing another tractor for moving feed. We challenged him to see what he could do in a new JCB SERIES III. Here’s what he said...
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When it comes to purchasing an additional utility for moving feed around the farm, most farmers consider getting another tractor. Anthony Goodwright of Goodwright farms in Southland was no exception. We dropped off a brand new JCB SERIES III AGRI SUPER to show him how much more efficient, versatile, manoeuvrable and fast the JCB is. With vast amounts of baleage across three family farms to load and stack, Anthony, a proficient operator in any machine, was easily convinced. By the end of the second day with the JCB, he was a committed fan.
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THE COUNTRY’S pork sector has welcomed an extension to consultation on a controversial draft code of welfare for pigs. Following a request to the Ministry for Primary Industries (MPI), it has agreed to extend the consultation by two weeks to July 8 after discussions with NZ Pork. “When the consultation was launched at the end of April, it quickly became clear to us that an eight-week period was insufficient time to allow for well-considered submissions to be made from all industry stakeholders,” chief executive of NZ Pork Brent Kleiss says. “The proposed changes are colossal and unprecedented, the material accompanying the draft code is substantial and there is a large amount of information for farmers and other industry stakeholders to review and assess. “Given the survival of individual farmers and the industry supply chain is at stake, we are pleased MPI has agreed to our request.” The draft code goes well beyond the welfare requirements in other countries. It includes major changes to the minimum space allowance required for grower pigs, a ban or significant limitation on the traditional use of farrowing systems (farrowing crates) and an effective ban on mating stalls. Kliess claims the proposed changes could force pig farmers out of business and put the price of New Zealand born and raised pork out of the reach of many New Zealanders. – See page 12
RURAL NEWS // JUNE 21, 2022
6 NEWS
Leakage a risk! following the release of He Waka Eke Noa (HWEN), the NZ agricultural sector’s proposal to government on how to price farm emissions. “Leakage risk is particularly high in agriculture. Nobody else (in the world) puts
DAVID ANDERSON
PLANS TO put a price on farm greenhouse emissions poses a ‘leakage risk’ to NZ agriculture, according to NZ Institute chief economist Eric Crampton. His warning comes
a price on agricultural emissions,” Crampton explains. “If emissions pricing results in fewer cows and sheep on New Zealand pastures and more in feedlots overseas instead, global emissions could wind up going up rather than down.”
As he puts it, “the climate doesn’t care where a cow burps”. However, Crampton adds that pricing greenhouse gas emissions in agriculture is important and any way of doing it is going to have problems. He says the NZ
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agricultural sector’s proposed solution – via HWEN – has problems, but concedes it has a “thorny mess” to deal with. Crampton explains that, in a perfect world, every country would price all greenhouse gas emissions – whether industrial or agricultural. He says every pricing regime brings risk of ‘leakage’, where companies simply shift high-emission production to places where emissions are not priced. “The Emissions Trading Scheme provides free carbon credits to businesses in industries with substantial leakage risk,” he adds. “So long as companies can profit by reducing their emissions and selling off their allocated credits, they have a strong incentive to reduce their emissions. “If their emissions increase above their free allocation, they must buy carbon credits like everyone else, and face a price that’s now close to $80 per tonne emitted.” Crampton believes this kind of allocation regime reduces the risk of carbon leakage, while maintaining incentives to
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reduce emissions. “There are ways of improving on how New Zealand does it, but the basic principle is sound.” In regard to agriculture emissions, he says any carbon pricing scheme has to recognise that short-lived gases like methane need to be treated differently from long-term gases like carbon dioxide – which HWEN does. However, Crampton believes the HWEN proposal to handle the problem with a very low price on methane “does not seem like a first-best or even a second-best”. “Alternatives might have applied a higher methane fee while providing rebates for products exported to places where the competition does not face a methane price. “A scheme could be designed to maintain incentives to reduce emissions – but it would not be simple.” But he says the HWEN proposal does put a price on methane, which he claims is a start. “And a start can be a good thing when nobody else has yet even tried.”
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RURALNEWS TO ALL FARMERS, FOR ALL FARMERS
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PAGE 24
RURAL NEWS // JUNE 21, 2022
NEWS 7
Sunset industry shines again! MPI director general Ray Smith is hailing as “phenomenal” news that NZ’s primary exports will reach $52.2 billion. This is contained in the Ministry for Primary Industries’ latest report on the Situation and Outlook for Primary Industries (SOPI), as Peter Burke reports… FOR THE first time, New Zealand’s primary exports, to the end of June 2022, have exceeded the $52 billion mark – a 9% increase on last year’s figure. Ray Smith told Rural News that the result is amazing considering that it’s come in the middle of the coronavirus pan-
demic, with its array of challenges. It is also in spite of the primary sector having to deal with a multitude of adverse weather events in New Zealand. The SOPI report shows that revenue from dairy exports will be up by 13% to $21.6 billion, while meat and wool is
forecast to rise by a staggering 18% to reach $12.2 billion. Revenue from horticulture is forecast to rise 2% to $6.7 billion. Forestry and arable are expected to drop by 4% and 2% respectively. Smith says this outstanding result can be attributed to the fact that everyone in the primary
THE CHALLENGES HOWEVER, RAY Smith also sees challenges on the horizon for the sector, with inflation and rising on-farm costs at the forefront of these headwinds. “The other challenge is getting enough access to labour when people need it. “We are producing products at such a high volume level now that we do need a good labour supply,” he told Rural News. “Everyone is working really hard to make sure they can maximise that at the right time. “Employers are having to rethink their strategies, be it investment in technology or looking at new work practices. One of the big challenges with labour supply is not just going through the whole process of recruiting people but retaining them and not have that cost of constantly having to recruit people.” The effects of climate change are another issue confronting the primary sector, Smith adds. He believes the country is going to
see more of the adverse events, such as floods and droughts that were seen in the last calendar year. He says it’s clear the east coast of the country is going to get drier and west coast wetter. “We are going to continue to see the impacts of climate change and we are going to have to adapt to that. We will have to think about what we are growing and where we are growing it. “The whole movement towards sustainability is incredibly important,” Smith claims. “If NZ can be first to reduce methane in pasture-grown animals we will have a competitive advantage over everyone else in the world.” Finally, Smith says – in terms of the logistical woes that NZ has had to deal with – it’s hard to tell whether it’s gone away or whether we have just got used to it. But he says whatever the answer, it’s critical for every exporter to ensure they have allowed for shipping time and are constantly adjusting for the delays.
TAKE TIME OUT
sector has worked incredibly hard – probably harder than ever before. But while both dairy and meat and wool are showing huge growth this year, the news is not so good for next year, when both are expected to drop back slightly. Only horticulture will continue to grow and it is forecast to increase by 9% on this year’s result. According to Smith, the volatility in dairy and meat exports is due to fluctuations in world commodity prices and the war in Ukraine, where blocked grain exports will potentially add to the confusion in global food markets. He says the positive news is the ongoing increase in horticulture exports, despite 2021-22 being a challenging season. “What we see with horticulture is this constant path, whether it is the release of kiwifruit licences for more to be planted or ongoing development in the apple and avocado industry,” he told Rural News. “If you look right across that industry group, you are seeing a slow and steady growth path.”
MPI director general Ray Smith says the result is amazing considering that it’s come in the middle of the coronavirus pandemic.
KEY POINTS FROM THE REPORT THE PRIMARY sector has almost always operated in challenging, changing and volatile times, most of which are beyond its control. Reading this SOPI report, this is still the case, with the Ukraine conflict adding to the woes of Covid. The report says global commodity prices are soaring due to the Ukraine war, but the negative effect for NZ will be higher fuel and fertiliser prices. It notes that shipping costs are easing but that constraints remain. As stated earlier, there is a significant section devoted to sector’s labour-related issues. The report does highlight that China is NZ’s overall biggest market, taking 37% of our produce, with the USA and Australia down at 10% and 8% respectively. It adds that China takes 41% of our dairy exports
and 37% of our meat and 14% of our horticultural exports. However, the report predicts the stringent Covid lockdowns in China are likely to slow economic growth in that market – potentially to the detriment of NZ. In terms of the sheep and beef sector exports for 2021-22, which stand at $12.2 billion, these are predicted to decline over the next two years and not recover to the present level by 2026. Wool exports are also in for a similar roller coaster ride. While dairy prices have remained firm, the actual volume of dairy exports to the end of June 2022 fell by 7%, due to a decrease in milk production. Only the horticulture sector is showing a consistent upward growth pattern, which will see the value of exports rise from the present $6.7 billion to $8.1 billion by 2026.
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OverseerFM is online software made for farmers. It helps you to understand your farm’s levels, run scenarios, or analyse outputs. In the longterm, it can reduce the need for guesswork, and the chance of going around in circles. How you ‘do’ sustainability, is up to you. What matters most, is that you’re in the driver’s seat, and have choices as a result. If you’re a farmer, or farm consultant, find out where your farm’s at with OverseerFM – so you can drive change yourself. Visit overseer.org.nz to find out more, or talk to our helpful team.
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RURAL NEWS // JUNE 21, 2022
NEWS 9
Rural water concerns remain RURAL WATER users still remain highly concerned about the Government’s contentious Three Waters reforms. Worries still linger despite a recent report by the Rural Supplies Technical Working Group (RSTWG), which made 30 recom-
“What is proposed in this overall Three Waters Reform agenda carries very significant risk, both in terms of public health.” mendations – including that the country’s 100 or so council-owned rural water supply schemes be transferred into the four new mega water entities. RSTWG also suggested that the tens of thousands of privatelyowned rural water supply schemes around NZ not be included in Three Waters reforms. However, West Otago farmer and member on the Glenkenich rural water scheme, Hugh Gardyne, told Rural News that it “still looks like a loaded gun”. “When the Territorial Local Authorities (TLAs) hand over their urban Three Waters schemes – infrastructure control, staff capacity and capability as well as financial resources – to the Water Services Entities (the four mega entities) then they are unable to support Rural Water Schemes going forward,” he explains. Gardyne’s concerns echo those of Waimate District Council chief executive Stuart Duncan who believes the RSTWG scope was limited due to the Government’s overarching reform objectives. “The working group’s terms of reference was limited, for example, recommending that all council-owned rural schemes transfer to the entities,”
councils) but will still get treated alike. “TLAs will have Rural Water Schemes (RWS) disposed from them but retain a charade of a structure as a conduit with Water Services Entities (WSE),” he adds. “It is my opinion and conclusion that all the RWSs subject to the new WSE structure, should be treated individually.” Gardyne says RWSs should be allowed, on a case-by-case basis, a referendum to determine if users want to be transferred to a WSE. “RWSs would be better served with the option of ‘end-point treatment’ – even if that were at a public cost – to meet Taumata Arowai requirements.” Meanwhile, Duncan believes a more sensible approach would have been for the Government to draft subordinate legislation that firstly classified rural schemes and made provision (guidelines) for certain classes of schemes to be exempt from certain aspects of the New Zealand Drinking Water Standards. “What is proposed in this overall Three Waters Reform agenda carries very significant risk, both in terms of public health, cost to customers and future operating success.”
Rural water users still remain concerned about the Government’s contentious Three Waters reforms.
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he told Rural News. “With full knowledge that councils could not continue to operate the remote schemes if the urban schemes were removed, taking with it the bulk of the service equipment, assets and human resources.” Gardyne says some rural water schemes are unsubsidised (by local
An update from Andrew Morrison, Beef + Lamb New Zealand Chair, and John Loughlin, Meat Industry Association Chair June 2022
Agriculture emissions pricing recommendations
What does this mean for farmers now?
Recommendations on an agricultural emissions pricing system as an alternative to already-legislated entry into the Emissions Trading Scheme (ETS) have gone to the Government. B+LNZ and MIA representing the red meat sector, along with others such as DairyNZ and Federated Farmers and iwi, are part of the partnership that developed the recommendations.
We know emissions pricing is confronting for some farmers and could significantly affect profitability. We’re focused on minimising costs and supporting farmers to make changes to their farm systems to reduce emissions.
The recommendation is for a farm-level levy system. While not perfect, it is significantly better than the ETS and gives farmers more influence over their future. Farmer feedback was critical in refining the recommendations and the system can be further refined and improved over time – this is not the end point. Farmers have expressed a high level of concern about this process – this was made clear through the consultation period. The implications for farming business viability have therefore been at the forefront of our minds. While we strongly support the recommended farm-level levy approach and believe it’s better than the ETS, what’s crucial is the pricing applied under it. B+LNZ therefore also released additional modelling on the financial implications of the recommendations. This modelling based on over 400 individual farms reinforces the need to take a cautious approach on the prices applied to agricultural emissions – we’ll keep pushing hard for caution around the pricing of emissions. What has been recommended? The farm-level levy system recognises what individual farmers are doing on their farms. Key recommendations include: • farmers calculating their methane and nitrous oxide emissions based on what they’re doing on-farm, not on national averages • unique prices for both methane and nitrous oxide • a maximum starting price for methane to provide certainty • credit for sequestration from a wider range of vegetation than currently recognised in the ETS • incentive payments taken off costs for using technologies and practices that reduce emissions • money raised in the system goes back into research and development for further agricultural emissions reductions. There’s information on the B+LNZ website on how farmer feedback helped refine the recommendations – see the web address below.
Unless the Government decides to bring agriculture into the ETS beforehand, pricing won’t happen until 2025 – there’s time to get prepared. Any actions you can take to reduce emissions on-farm now will put you in a better position when pricing is introduced. The first step is to know your on-farm emissions numbers – eg through the B+LNZ GHG Calculator online or a B+LNZ workshop.
Why do we need the He Waka Eke Noa approach? The Government wanted to put agriculture into the ETS in 2019, but we and other partners convinced them to work with us on an alternative as we believed the ETS would be disastrous for farmers. With the legislation already in place to price agricultural emissions, saying ‘no’ to pricing wasn’t an option. The ETS does not recognise the range of on-farm sequestration available (particularly natives). If agriculture joined the ETS, the methane price would also be linked to the carbon price, which would not recognise methane’s different warming impact and the price of carbon is expected to continue to rise rapidly. This would have a significant impact on sheep and beef farming viability, as B+LNZ’s modelling shows (go to the web address below for more information about the modelling).
What about the emissions reduction targets? B+LNZ has and will continue to advocate for science-based emissions reductions targets, separate to our work on He Waka Eke Noa. We don’t believe the current methane targets in the Climate Change Response (Zero Carbon) Act are justified based on the latest international science about methane’s warming impact. We’re continuing to advocate, along with DairyNZ, Federated Farmers and others, for the Government to report on warming as well as emissions and for the use of GWP* as a more appropriate metric for setting targets.
What are the next steps? The Government is considering the recommendations and public consultation is expected later this year, so farmers will likely get a further opportunity to provide feedback. By December 2022 the Government will make its final decision on how agricultural emissions will be priced. We’ll work with He Waka Eke Noa partners over the coming months to inform the Government’s analysis and won’t stop working to get the best outcomes for farmers, particularly on issues like pricing.
For further information go to www.beeflambnz.com/emissions-pricing-consultation
RURAL NEWS // JUNE 21, 2022
NEWS 11
‘Personality’ may help production LEO ARGENT
A RECENTLY published Journal of Dairy Science article puts forth evidence that animal personality is distinctly linked to productivity traits in cattle and farm animals in general. In the study, carried out at Lincoln University, 87 cows were exposed twice to five different behavioural tests. Responses to novel or stressful situations were scored on a ranked scale of investigative and reactive behaviour, with most test scores being consistent over repeated tests. Behaviour test scores were subjected to a principal components analysis that revealed relationships between tests in three factors (fear of humans, curiosity and reaction to milking) interpreted as personality traits. The results were interesting, with some findings being quite expected, such as cows that are surlier and more reactive producing less milk than cows that are calm at milking. However, others were less easily predicted; less sociable beef cows often initiated herd movements to new forage sites after periods of rest. In general, the findings showed that calmer, more curious cows spent more time grazing and less time lying down. They were also less disturbed by changes to environment. However, as an interesting exception, grain fed calves with greater avoidance of novel objects and humans reached weaning
criteria earlier. Independent of this study yet coming to similar findings, a Brazilian university study found that surly, temperamental cows were 40% less efficient at metabolising methane than calm cows leading to increased emissions per kg of milk produced. Although the Journal article says that the testing methodology is time and space consuming, limiting the opportunity for commercial farms to use personality tests. AgResearch told Rural News that it has been testing the methodology across the country and has found that the challenges are not insurmountable. “Running a few personality tests requires the farmer to be flexible, with one or two milkings taking longer,” AgResearch spokesman Jarrod Booker explains. “We found that test responses were consistent between testing occasions, so in theory the tests could be deployed just once a year.” He says that although cows having personalities was no surprise, the amount of variation in responses to the behavioural tests was. While many may see this research as pointless or even comical, it may prove to have multiple uses. By breeding cattle with certain psychological traits, farmers may produce animals that provide more milk, or those with placid temperaments making them less likely to spook and increas-
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ing growth rates through lower stress. “To actually manage animals with sentience in mind means we need a greater acceptance of the individual animal,”
Booker adds. “Developing ways to work with the various differences in individual behaviour is important to moving the country forward.”
A recent study shows that animal ‘personality’ is distinctly linked to productivity traits in cattle.
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RURAL NEWS // JUNE 21, 2022
12 NEWS
MPI to moniter winter grazing DAVID ANDERSON
AS OTAGO and Southland enters the winter grazing season, MPI says it will have inspectors
on the ground ensuring things are being done correctly. Intensive winter grazing is a farming practice where livestock are
grazed on paddocks planted with forage crops. When done poorly it can have negative effects on water quality and animal welfare.
Over the last few years, animal welfare and anti-farming activists have been highlighting poor winter grazing practices – usually sending
MPI says it will have inspectors on the ground ensuring winter grazing is being done correctly.
“At the low end of the scale it could be the issuing of a directive to move stock or provide access to stand-off areas away from the feeding area.”
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mainstream media videos and photographs of livestock in muddy, wet conditions. This led to pressure on government and MPI (the Ministry for Primary Industries) to implement stricter conditions on farmers practising winter grazing. After much conjecture and 18-months of consultation and reworking, less contentious winter grazing rules were recently released by Agriculture Minister Damien O’Connor and Environment Minister David Parker. These require grazed annual forage crop paddocks to be re-sown as soon as conditions allow, instead of by a set date. Specific requirements around the depth of pugging have been removed and replaced with a duty for farmers to take all reasonably practicable steps to minimise the effects of pugging on freshwater. Meanwhile, a new condition has been added where critical source areas in winter crop paddocks need to be identified and not cultivated or grazed. MPI’s Gary Orr says inspectors recently conducted proactive visits to Otago and Southland properties, checking that farmers have good plans in place to manage the welfare of their livestock on crops. The focus was on 50 farms identified as being “potentially at risk”. “We’ll use these first visits to check in with farmers to make sure they’ve made the necessary preparations. It will include taking farmers through a practical check
list developed with industry and councils to help improve animal welfare outcomes.” Orr says a wellplanned winter grazing system supports good animal health and welfare. “Some farmers will need to continue adapting their systems to ensure they have more robust back-up plans during extreme weather.” Orr says where there is evidence that an animal is suffering or is likely to suffer, MPI will take action. “At the low end of the scale it could be the issuing of a directive to move stock or provide access to stand-off areas away from the feeding area. “For more serious issues we might bring in vets to make an independent assessment, require the farmer to bring in extra feed, and in the most serious cases taking a prosecution.” He adds that winter grazing time can be a challenging time for farmers as they manage the effects of the weather and possible feed shortages. “We recommend farmers make contact with their industry organisations for the latest information on winter grazing.” Follow-up visits will again be conducted later this month. “For the follow-up visits, we’ll prioritise those farms which were identified as high-risk in our first phase of visits, as well as any property where we have received complaints,” Orr says.
Every farm is unique, even if they’re neighbours. That’s why you need a vaccination programme that fits your farm’s unique requirements.
Schering-Plough Animal Health Ltd. Phone: 0800 800 543. www.msd-animal-health.co.nz. NZ-NLV-220400001 NZ/NLX/0518/0003e © 2022 Intervet International B.V. All Rights Reserved. 1. Baron Audit Data. March 2022.
RURAL NEWS // JUNE 21, 2022
14 NEWS
Controversial changes for pigs LEO ARGENT
A CONTROVERSIAL new welfare draft code is triggering vigorous debate between pig farmers and animal welfare advocates as to what the best path forward is. The main proposals in the Government’s new draft code, which has farmers up in arms, surround new rules around farrowing crates. Previously these were allowed from 5 days before birth to 28 days after. This will now be restricted to only 72 hours after birth or banned outright, while farrowing pens will have
to have a minimum space of 6.5m2. Farmers claim this will put them at a massive disadvantage, going well beyond any other countries requirements and commercially destroying New Zealand pig farming. However, animal activists claim it is a necessary step to bring animal welfare up to matching New Zealand’s reputation for high standards. The story traces back to 2020, when the New Zealand Animal Law Association (NZALA) and SAFE took the Government to court over its failure to phase out far-
The main proposals in the Government’s new draft code, which has farmers up in arms, surround new rules around farrowing crates.
rowing crates in New Zealand. The Government had taken steps towards outlawing these in 2015 but had since
gone cold on the idea. The High Court ruled in favour of the animal activists, saying that farrowing crates breached the Animal Welfare Act 1999 and that the Government had to consider new regulations regarding the welfare of pigs. Brent Kleiss, chief executive of NZ Pork, told Rural News that his organisation believes the Government is making grand overtures to look like they are acting without thinking through the practical applications. He claims that consultations with pig farmers were one-way in nature with several aspects being complete surprises to farmers upon the draft’s release. “We share serious concerns with qualified experts that the scientific approach to the code is careless; this includes what looks like cherrypicking of science publications to support predetermined positions.” There are arguments on both sides of the crate
debate. Multiple studies have shown that crates lower the risk of piglet mortality by crushing and – due to the large number of piglets per litter – sows are less concerned with individual survival, contrary to farmers’ goals. Sweden, Switzerland and Norway – which have banned farrowing crates – have a similar if not slightly higher rate of piglet mortality than most other comparable countries. On the other hand, confined sows have higher rates of stillbirth than free farrow, with half of piglet deaths occurring in the first four days after birth, meaning the effectiveness of farrowing crates has diminishing returns past that date. However, confinement during prolonged farrowing has been shown to reduce levels of oxytocin in pigs’ plasma, resulting in reduced mothering instincts for sows and lower vitality and survival rate for piglets in farrowing crates. NZALA president Saar
Cohen told Rural News that the challenge is to find a lawful way to minimise piglet mortality – without turning sows into ‘breeding machines’. “The solution will need to come from pig experts, not those whose profit depends on litter size.” Kleiss says that the duration of sow confinement could be reduced 80% without negatively impacting piglet welfare. He adds that while increased space available for pigs is a reasonable demand, the degree of expansion is wholly unsuitable. “No explanation has been given as to why a minimum size of 6.5m2 was chosen.” He suggests that more quality of life improvements – such as manipulable materials and retreat areas – would make implementing welfare changes easier. Ministry for Primary Industries economic analysis predicts that with the draft space increases and transitioning to either of the proposed new systems, it would take 16-19 years to cover the costs of implementing these changes. It says it would reduce earnings for a 350 sow farm from $381,000 to $184,000 – a whopping 51.7% loss. This is on top of productivity being lowered, due to 50% increased pre-weaning mortality. All of this is expected to increase the price of New Zealand pork by
18.2-18.8%. Both NZ Pork and NZALA have expressed concern about Kiwis turning away from New Zealand product to foreign pork, which will not have to undergo the same rigorous standards in place here. Many foreign pork producers have worse standards than our current benchmark. Cohen says NZALA shares NZ Pork’s concerns about low welfare imports and believe incorrect advice has come from Government about the ability to ban or limit these foreign pork imports. “Low welfare imports can be banned domestically and defended internationally, with some leadership and proactive approach to animal welfare,” he told Rural News. “We would like to offer NZ Pork the expertise of our International Trade Law experts to ensure Kiwi farmers are not discriminated against by having to comply with higher welfare legislation.” Cohen claims that most of the imported pork comes to NZ from the EU, which is already banning some low welfare imports into its own area. “At present, there is little political appetite to do the same over here, but that could change with a bit of help from NZALA and NZ Pork,” he adds. “We should work together on this important topic.”
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RURAL NEWS // JUNE 21, 2022
global agribusiness research analysts sharing market outlooks
16 MARKETS & TRENDS
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Firm prices kick off winter Dairy
SOFTER DEMAND manifested in a clear downward trend for global dairy commodity prices across May 2022. Export returns for all dairy commodity prices slid in May 2022, with WMP and butter prices leading the
charge lower: the result of the continued fallout from Ukraine and Covid19 events. Importantly, all main commodities, except for WMP, are at higher prices compared to the beginning of the calendar year. RaboResearch expects
dairy commodity prices to remain volatile over the coming months, with weak global milk supply settings supporting prices to remain at elevated levels. Slower supply growth supports a strong price floor. New Zealand milk supplies for the penultimate month of the 2021/22 season were lower by almost 5.6% YOY. This is the ninth month in a row of weaker milk collections compared to last season, driven by average weather across much of the season. RaboResearch anticipates a farmgate milk price NZ$ 9.00/ kgMS for the 2022/23 production season. Seismic global events continue to reverberate in markets, providing a challenging backdrop to milk price forecasts.
Beef
NEW ZEALAND beef export volumes dropped 3% below the five-year average in April 2022, as the entire supply chain faces delays from processors right through
buying beef and keeping it in their freezers. However, a worsening economic environment will likely force some consumers to reduce their beef consumption and substitute for cheaper pork and chicken options. NZ processors continue to play catch up on backlogs of cattle, but have been able to pass through healthy margins to farmers. RaboResearch anticipates that the farmgate beef price will remain elevated through the winter months, supported by a tight global supply situation. to retailers. Exports to China in April fell slightly by 3% YOY. We expect to see the impacts of the lockdowns in Shanghai reflected in the May and June export data for New Zealand. Although
Shanghai is easing lockdown restrictions, other regions in China remain in lockdown. Beef is a popular protein and anecdotally we understand that consumers in Shanghai have been bulk
Sheepmeat
THE SOUTH Island lamb schedule moved higher in May 2022, hitting NZ$ 8.55/kg cwt at the end of the month. The uptick in pricing follows the usual
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RURAL NEWS // JUNE 21, 2022
MARKETS & TRENDS 17
COUNTRIES
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returns to the export market, price downside could occur in 2H 2022. However, recent news suggests that the Chinese government has reinforced export controls, with inspection periods for shipments increased to 75 days from 45 to 60 days. Chinese lockdowns and exportable surpluses will be key drivers for chemical price volatility in the coming 12 months. High inflationary pressures and associated increases in production costs are expected to keep prices high. seasonal trend of a rising schedule through winter. The national lamb kill at the end of April was 12.2% behind YOY, and the mutton kill across both islands was 12.5% behind YOY. THE MUTTON schedule also lifted in May – the South Island mutton price was NZ$ 5.65/kg cwt at the end of May. The combined effect of New Zealand process-
ing delays and increased ewe retention in Australia (flock rebuilding), means there are tight supplies of mutton available, supporting pricing. RaboResearch anticipates that farmgate lamb and mutton pricing will remain elevated through the winter months, but lockdowns in China, and rampant inflation in the EU region and US, are a risk.
Fertiliser THE DECLINE in offshore urea prices this month is reportedly due to weakening demand and discounted supplies continuing to flow from Russia. We could see softer global prices flow through to the NZ market by late July or early August. Despite this, we expect prices will remain volatile and will rise substantially if
Exchange rate The Reserve Bank of New Zealand (RBNZ) raised the official cash rate (OCR) by 0.5 percentage points to 2.0% in May. The NZ$ recovered recently to USc 0.65 from a mid-May low of USc 0.62. The RBNZ continued to be a front runner in interest rate hikes, raising interest rates for the fifth time in a row in May. The additional 50 basis points elevated the OCR to 2.0%, the highest since November 2016. Since the rate hike cycle started
Russian gas is sanctioned. The decline in offshore potash prices has reportedly, like urea, been due to continued large flows out of Russia, moving primarily to Brazil. Prices have likely peaked with the loss of the Black Sea supply now priced in. Though phosphate prices may have peaked, they are expected to remain well above average in 2022. If China
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in October 2021, the RBNZ has added 1.75 percentage points to control inflation. We see the potential for further safehaven demand to boost the US$ in the month ahead. This view stems from concerns over the pace of global growth. We see the risk of another dip to the NZ$/ US$ 0.63 area in the weeks ahead, with a moderate recovery back to USc 0.65 on a six-month view dependent on a broad-based softening in the value of the US$.
RURAL NEWS // JUNE 21, 2022
18 OPINION EDITORIAL
EDNA
Hobson’s choice! ONE OF the most recognised lines from the classic TV show Hill Street Blues was the send out by Sgt Stan Jablonski – ”Let’s do it to them, before they do it to us”. Sgt Jablonski’s famous catch cry comes to mind with the release of the He Waka Eke Noa (HWEN) proposal to Government. This advocates the system the primary sector wants adopted in respect to reducing on-farm agricultural emissions and sequestering carbon. HWEN is made up of 13 primary sector groups – including Māori agribusiness. It was set up in 2019 in a bid to stop the Government lumping agriculture into the Emissions Trading Scheme (ETS). HWEN’s recently released alternative approach is the farming sector’s answer to the Government’s ridiculous proposition of dumping agriculture into the ETS. In other words: ‘Let’s do it to them; before they do it to us’! In reality, the Government gave the primary sector a Hobson’s Choice: either it gets plonked in the ETS or it comes up with a tax on production itself. Industry leaders were right to take the option of trying to produce a solution itself. Unfortunately, since the beginning of this whole process, sector leaders – as a whole – have been a little too willing to please the Government. Their oft-repeated claim that it is ‘better to be at the table’ rings somewhat hollow when it appears all they have done is serve farmers up for dinner. Perhaps a little more pushback and tablethumping will have paid more dividends, instead of a softly, softly ‘don’t rock the boat’ approach. As the Groundswell movement has shown, farmers can only take so much pushing around before they strike back. Perhaps this explains Federated Farmers’ less than enthusiastic endorsement of the HWEN proposal. Meanwhile, the permanently outraged, antifarming lobby, represented by Greenpeace, have labelled the primary sector’s emissions response as a “lemon” and a “cop out”. As HWEN chair Michael Ahie asks – what is their alternative? “If you can come up with one that is going to be better for NZ, let me know.” Imperfect as HWEN’s proposal is, it is now here and the NZ agricultural sector will soon be paying for on farm emissions – a world first. Get ready to suck that lemon!
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
“Help! – someone just set Ag sector plans to slash methane emissions back ten years!”
Want to share your opinion or gossip with the Hound? Send your emails to: hound@ruralnews.co.nz
THE HOUND Dirty water
Why?
How come?
No free ride!
The Hound reckons the Government’s unpopular and controversial Three Waters reforms is creating plenty of jobs – for bureaucrats and contractors –but not for the local communities who are having their water assets stolen ‘co-governed’ and controlled by four new mega water entities. Figures released by the Department of Internal Affairs show that the Government has, so far, spent $34 million on the four mega-corporation model for 3 Waters Reform – with more than $9 million on staffing and another $24 million on external contractors. As Communities 4 Local Democracy chair and Manawatū District Mayor Helen Worboys says, surely a cheaper and more effective option would be to listen to stakeholders rather than spend millions on expensive consultants: “To spend $34 million to come up with a flawed proposal that no one is happy with beggars belief.”
A mate of your canine crusader’s – and a Silver Fern Farms supplier and shareholder – is less than impressed that his meat company is holding a series of upcoming ‘farmer forums’, where woke, anti-farming commentator Rod Oram will be the MC. Oram, a bicycle-riding lay minister from Auckland, is a regular critic of NZ farming, forever claiming the sector is ‘not doing enough’ on the climate change front. He recently wrote a vitriolic, scathing article lambasting the recommendation of the He Waka Eke Noa proposals – of which SFF is a key supporter – for being, among other things, “remarkably irresponsible”, “devoid of any reference to emissions reduction” and “entirely self-serving”. The long-time SFF shareholder and supplier is so incensed that SFF is paying (which will be many thousands of dollars) Oram, out of his and other shareholders’ pockets, that he is refusing to attend the forum.
A mate of yours truly is questioning exactly why the Māori ag sector have been given special budget funding by the Government to ramp up their efforts to reduce agricultural emissions. Are not all farmers, growers and landowners – no matter their ethnicity – facing similar issues and challenges in combating agricultural emissions? Apparently not! It seems the Labour Government’s Māori caucus recently undertook a ‘roadshow’ (i.e. a taxpayer-funded PR exercise) around the country, highlighting aspects of the budget aimed at helping Māori primary producers. Included was the funding of $35.4m to help Māori farmers, growers and whenua owners reduce their agricultural emissions and another $30.5m to establish a platform for Māori Climate Action. As the Hound’s mate points out, it seems some farmers are more equal than others!
This old mutt is getting somewhat tired of multi-national, tax dodging, fund-raising group Greenpeace always given front and centre mainstream media space to comment (i.e. bag) NZ agriculture. Without fail, its ‘agricultural campaigner’s’ magic ‘answer’ to NZ’s complex and complicated agricultural emissions issue to is to slaughter at least half the country’s dairy herd, convert all farming to wacky regen ag and stop the use of all fertilisers – without any comment about what this would do to the nation’s economy. She also falsely claims that farmers are not paying any ETS costs – wilfully omitting that NZ farmers are big users of fuel and electricity and therefore are paying carbon taxes. Meanwhile, the sector – via HWEN – will soon be paying $400 million annually – so no free ride for farmers.
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RURAL NEWS // JUNE 21, 2022
OPINION 19
Be aware of politicians and their plans! BACK IN the early ‘90s, I felt privileged to be invited to visit the Republic of Nauru. With a total land area of 25 square kilometres and a population around 8,000 at the time, it was – and still is – one of the remotest and smallest nations on the earth. I visited again three more times over the next three years. As a result, I learned some of their history – the good, the bad, and yep, some of the ugly stuff too. I will always remember my first flight with Air Nauru. My boarding pass had no seat number allocated on it. Thinking this a little unusual, I pointed it out to the flight attendant as we boarded. I was informed we could sit wherever we liked, as long as it was forward of the smiling hostess who was standing in the isle, about halfway to the back. Secondly, it was the emptiest flight I had ever been on. Maybe 10 passengers boarded… and that was us! You didn’t need to be a financial guru to figure there was no money for Air Nauru on this flight! There are various documentaries that tell some of Nauru’s rather sad but typical story, Paradise Lost - Nauru being a brief, easy watch that will give you the basics. Due to its rich deposits of natural phosphate, Nauru became a nation of millionaires – with the highest per capita income in the world. They once claimed the ‘title’ as the world’s wealthiest welfare state! In 1968 a special trust fund was set up to ensure the economic future of the country when the phosphate reserves ran out. At its peak, the fund contained well over $1 billion. But successive governments siphoned it all off. No surprises there! At its peak in the ‘80s, Air Nauru boasted seven sparkling Boeing 737s. I was told some of its leading politicians wanted them to have the world’s best airline. The average
leaders. Hmmm. Of all the people I know and trust, one of them stands head and shoulders above the rest! And none of them has ever held political office. God Bless.
• To contact Colin Miller email: farmerschaplain@ ruralnews.co.nz
Paradise Lost: At its peak in the ‘80s, Air Nauru boasted seven sparkling Boeing 737s.
FARMER’S CHAPLAIN
Colin Miller
passenger load flew at around 20% capacity, with many flights actually carrying no passengers, yet they still flew! One brief I read reported almost half the gross national product – A$100 million – per year went into propping up the airline, eventually helping to take the nation broke. The airline, and of course politicians, getting their hands on that ‘fund’ I mentioned earlier, and hello, surprise, surprise – bankruptcy arrived! And the people, you wonder? Yep, the victims of political corruption and up-sized egos. A huge ‘nest egg’ and politicians together in the same room; you won’t need detective training to suss that one out! It all reminds me of another small country, with a population of 100,000 or so shy of 5 million. With no close neighbours, it remarkably leads the world with its sustainable farming practices. But you would never know that, listening to its government and fawning media lapdogs. Yep, unless it fits the ideology, there will be no applause. And that country, New Zealand of course, contributes just 0.09% to the global carbon footprint. And we are going to change the world… Yeah right! The same people that seem to blame and hammer our rural sector, mysteriously seem to be struck dumb when it comes to the truly, big global polluters, or to all the closed city beaches each year in our own country! The people of Nauru kept trusting their
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RURAL NEWS // JUNE 21, 2022
20 OPINION - LETTERS SHE’S JUST DOING HER JOB! I FOUND it very offensive that the Hound should imply B+LNZ director Kate Acland has her nose ‘in the trough’. Like all directors elected to levy organisational boards, she is not in the role for the money. Kate would make more money by staying at home and working on her own business than what she is remunerated by levy payers.
Kate also has a young family at home who she has had to take time away from for this trip. I can assure the Hound that she is quite capable of paying for her own trip overseas. I’m sure she would much prefer to be travelling overseas with her family than on this no doubt gruelling trip that he somehow felt the need to bring to our attention. Scott Gower (via email)
B+LNZ director Kate Acland.
USEFUL IDIOTS! IT IS a great concern that our primary producing representatives have sold out the nation’s future by cuddling up to the Ardern-led Government with the He Waka Eke Noa proposal. Where is their collective intestinal fortitude and backbone to stand up and say no to this ridiculous concept of taxing food production and a large proportion of our
foreign exchange earning ability? All New Zealanders will feel the pain and heartache from this short sightedness going forward. Ultimately it looks like they wanted to be used like ‘useful idiots’ by James Shaw and the current Ardern regime. They are not meant to be government lapdogs, they are meant to be standing up and fighting for their respective industry and for their levy payers or members that fund their organisations and pay their salaries. When the pushback comes from the everyday primary producers to this madness, the Government will throw it back at them that their industry representatives agreed to this illogical and obtuse proposal for future
legislation. This madness will result in poorer outcomes for the environment as New Zealand farmers and growers reduce production, for it will only end up with less efficient countries filling the void, absent of New Zealand’s efficient management and farming systems. Now I totally agree that we as primary producers need to continue to strive to be the best and most efficient food producers in the world, while always wanting to maintain and improve the environment in which we operate and work with. However, the net effect of this self-designed emissions tax (poorly disguised as an opportunity) will be an increase in global emissions, a mass acceleration of land use change to pine trees, further intensification and heightened increases in the price of pasture-raised food. Scott Adams Marlborough
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RURAL NEWS // JUNE 21, 2022
AGRIBUSINESS 21
Fonterra’s strategy spooks investors SUDESH KISSUN
NEW CHAIR
sudeshk@ruralnews.co.nz
FONTERRA’S WEAK share price highlights market concerns around the co-op’s investment plans, says Jarden head of research, Arie Dekker. He believes the markets are uncomfortable with the cooperative’s investment plans and whether they would deliver sustainable returns to investors who buy units in Fonterra Shareholders Fund (FSF). Outside investors who are not allowed to hold shares in the farmerowned co-op can invest in units in the Fund which gives them access to economic rights. “The market appears to be signalling back to FSF on investment,” says Dekker. “Notwithstanding the disruption and a significant increase in shares held by farmers for investment purposes that comes with the proposed capital structure changes, the weakness in FMCG shares raises questions on market concerns,” he says.
THE INDEPENDENT chair of Fonterra Shareholders Fund John Shewan is stepping down later this year. Another director Kim Ellis has also indicated his intention to retire at the fund’s annual meeting in November. The fund board has appointed Mary-Jane Daly as chair-elect. Daly was elected to the board in November 2020. She is currently chair of the Earthquake Commission and an Independent Director of Kiwibank and Kiwi Property Group Limited. She has a strong background in insurance, banking and finance with experience in a variety of senior roles both in New Zealand and the United Kingdom.
Jarden head of research, Arie Dekker believes the markets are uncomfortable with the Fonterra’s investment plans.
Dekker says the other “major news” in the year since changes were signalled has been the 2030 aspirational strategy released ahead of the farmer vote on capital structure changes. The co-op signalled a high-level pathway to up to 50c/share of earnings for unit holders over 10 years. But Dekker says it’s clear that the market attributes little value to
that, with front-loading of investment likely an issue. While Fonterra has signalled a strategy on significant investment over 10 years, it did highlight that it would be more prudent on capital structure ahead and that the large investment over maintenance levels needs to produce results, given its decisions to return $1b capital to farmers, rather than retain it for
investment. It also plans to run gearing and payout policy more conservatively than in the past, impacting dividend levels. Dekker believes the markets are signalling a lack of confidence in Fonterra’s investment plans. “Notwithstanding current double-digit free cashflow yields, the market appears to us to be signalling a lack of confidence in the invest-
ment FSF has laid out, with uncertainty on what the sustainability investment in particular delivers by way of returns. “FSF needs to consider its response to the market’s signal that it is uncomfortable with aspects of the planned expenditure, particularly on how it can increase confidence it will translate into the earnings growth FSF expects.” Fonterra’s weak share
price prompted the co-op board to announce a $50 million share buyback scheme. While the announcement caused a spike in Fonterra shares to $3.09/ share, prices retreated to around $2.70 last week. The share price was around $4.56 one year ago. Chairman Peter McBride said Fonterra has “looked at prevailing prices” alongside the cooperative’s strategy and overall business performance. “The co-op considers the prevailing price, par-
ticularly since late April, has undervalued Fonterra shares, which is a key reason for announcing this buyback,” McBride says. The buyback may run for up to 12 months. It is separate from Fonterra’s plan to spend $300m on supporting liquidity during the transition to a new requirement for farmers to own one Fonterra share for every 3 kgMS they supply to the co-operative, rather than the current one-for-one ratio. @rural_news facebook.com/ruralnews
O’Connor attends WTO meeting TRADE MINISTER Damien O’Connor is currently in Geneva for the World Trade Organisation (WTO) 12th Ministerial Conference. The WTO has been in disarray for some time with some of the world’s larger jurisdictions failing to abide by rules-based trading,
which is one of the cornerstones of the organisation. The problems for the WTO have been exacerbated by the Ukraine war, which has seen western delegates refusing to meet with Russian representatives. The WTO is regarded by New
Zealand as very important because it underpins some of our key trading arrangements, in particular with the EU. O’Connor says, as a trading nation at the bottom of the pacific, New Zealand strongly believes that the rules-based trade system and mul-
tilateralism are essential to finding long-term solutions to global problems. He says he’ll be advocating for NZ values and interests at every turn. While at the conference, O’Connor will meet with ministerial counterparts from other countries – especially the EU – to try and get some
traction the current FTA negotiations, which appear to be in a hiatus. “New Zealand is open for business and being able to meet counterparts in person at the WTO is essential for us to further our strong trading relationships and ensure our voice is heard,” he says. – Peter Burke
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RURAL NEWS // JUNE 21, 2022
22 MANAGEMENT
Research project provides valuable hill country farm data A MULTI-SITE study on hill country farms around New Zealand is providing a wealth of information and research findings to help guide farmers around pasture forage decisions. A network of 18 study sites, ranging from Lake Hawea in Central Otago to Waiakaia near Gisborne, was established through the Hill Country Futures Partnership Programme. The $8.1m programme is co-funded by Beef + Lamb New Zealand, the Ministry of Business, Innovation and Employment, PGG Wrightson Seeds and Seed Force New Zealand. The study’s aim is about future proofing the profitability, sustainability and wellbeing of New Zealand’s hill country farmers, their farm systems, the environment and rural communities. It incorporates traditional science research, farmer knowledge, social research and citizen science and has a strong emphasis on forages and providing decision-making tools to help farmers select the best forage option for different land management units. Dr Suzi Keeling, sector science strategy manager for B+LNZ, provides scientific oversight for the programme and says a key focus has been resilient forages for the
“Through the forage trials, we are looking at how we support farmers to have resilient forages into the future.” future. “The programme provided an opportunity to test different forage combinations in a number of research and commercial farms around New Zealand,” she explains. “Being able to do this in a range of different locations has ensured we have accommodated what farmers are really interested in, while also answering important science questions.” The 18 locations include 12 forage trial sites evaluating different combinations of forages. There are six sites capturing soil temperature and moisture data (some overlap with forage trial sites) and three focused on assessing native plants as potential forage. “Through the forage trials, we are looking at how we support farmers to have resilient forages into the future,” Keeling adds. “It is capturing real data on farms to make it
Dr Suzi Keeling says the project has provided an opportunity to test different forage combinations on several farms around New Zealand.
tangible for farmers to see how forages perform in different locations. We are also building a large dataset to develop tools that farmers can use to help them select which forages are most ideal for their situation.” A further outcome of the programme has been the AgYields national forage database. This is a central repository for all pasture and crop yield
data collected in New Zealand to help farmers and farm consultants with decision-making around pasture planning. The soil temperature and moisture microscale indicator projects recognise that hill country farms are diverse landscapes. These are designed to enable farmers to use farm scale mapping to assess which forage mixes are likely to
do well in specific areas of their farm. Research around native shrubs looks at the potential of natives for sheep fodder, in terms of palatability, digestibility and protein characteristics. The focus is on improving animal productivity, animal welfare, biodiversity and soil health while mitigating soil erosion and climate change “An important aspect
of the programme is ensuring our investment is informed by good information,” Keeling says. This allows farmers to know what forages suit what soil types and environments, when to sow forages and what they need to be thinking about in terms of sowing rates and fertiliser applications. “It means that when they are planning to
establish pasture to feed their animals, they have the best information available to do that as efficiently as possible. It removes the risk of ‘taking a stab in the dark’.” Keeling says if farmers are producing forage of better quality and yield that integrates well into their farm system. “It allows you to make smart decisions around pasture management and hopefully get a longer lifetime out of your forages. That means less frequent need for forage renewal of pasture, which also has good benefits for soil health.” Findings from the trials have been made available as factsheets through the Beef + Lamb New Zealand Knowledge Hub. Plans are also underway to create a series of ‘how to’ videos providing guidance on pasture management. Keeling says there have been many positive outcomes from the research. “Many of these are also now in scientific literature, so they have been through a peer review process. That gives us real confidence around the level of rigour associated with the work and that the information in the B+LNZ factsheets is robust and useful for farmers.”
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RURAL NEWS // JUNE 21, 2022
MANAGEMENT 23
Young Ahu farmer finalists found PETER BURKE peterb@ruralnews.co.nz
THE FINALISTS in the 2022 Ahuwhenua Young Māori Farmer Award for sheep and beef were recently announced. The three finalists are: Chloe Butcher-Herries, an assistant farm manager at Newstead Farms in Puketapu, near Napier; Puhirere Te-Akainga Tamanui Tau, a shepherd working on Rototahi and Puatai Stations, which are part of Whangara Farms, located near Tolaga Bay; and Rameka Eli Edwards the manager at Reon and Wendy Verry’s farms – Puketitire and Waitete, in Te Kuiti. The award was inaugurated in 2012 and is designed to recognise up-and-coming young Māori in the pastoral
Rameka Edwards
Puhirere Tau
Chloe Butcher-Herries
and horticulture sectors. The three finalists this year were selected from a number of entrants from around the country. One of the competition judges,
Aaron Hunt, says despite all the challenges the rural sector has faced in the past year, it is great to see three worthy young Māori farmers come forward as finalists.
He says all of the finalists have demonstrated leadership qualities and are committed to working in the sheep and beef sector. Hunt says Māori are naturally close to the whenua (land) and it is logical that many young Māori are choosing career paths in the agri sector.
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Hunt says this will give them an opportunity to widen their networks and for others in the agri sector to meet the future leaders of Māori agribusiness. The winner will be announced at the same time as the main Ahuwhenua awards in late October.
RURAL NEWS // JUNE 21, 2022
ANIMAL HEALTH 25
Make use of ewe scanning data HAVING THE ability to target feed ewes that will offer the best return on investment is one of the main benefits of pregnancy scanning – but there are others. Massey University’s Professor Paul Kenyon says pregnancy scanning data can be used to maximise ewe and lamb survival. He explains in a B+LNZ podcast that scanning should be carried out a minimum of 45 days after the ram has been removed. After 100 days it is difficult for the scanner to determine how many lambs each ewe is carrying. Scanners can identify singles, twins, triplets (or just multiples) and early and late lambing ewes. This information enables farmers to strategically feed and manage ewes to maximise both ewe and lamb survival and preweaning lamb growth rates. Scanning is also an ideal time to body condition score each ewe as she is moved into the scanning crate. Kenyon points out that for multiple-bearing ewes, there is only a small window when body condition can be increased. After that, it becomes physically impossible for her to gain condition because of the demands of pregnancy. “Grazing herbage, most twin and triplet-
“This is why feeding in early to midpregnancy is so vital.” bearing ewes cannot physically eat enough to meet their theoretical requirements, so the ewe needs to use her fat and she needs to have some fat to use.” In the last 30–40 days of pregnancy, the foetus grows rapidly, so in a triplet-bearing ewe, the total pregnancy weight (foetus and placenta) at the point of lambing is 20–22kg. A ewe cannot eat enough feed to sustain her metabolic needs in late pregnancy, which is why triplet lambs are typically small, thin and lack vigour. “This is why feeding in early to mid-pregnancy is so vital,” Kenyon says. On day 120 after the ram has gone out, some ewes will be 120 days pregnant and some will be 69-days pregnant and their nutritional needs will be very different. “So why feed them the same?” Kenyon explains that knowing how many lambs a ewe is carrying can also inform the selection of lambing paddocks based on shelter and topogra-
BE IN TO
Paul Kenyon says pregnancy scanning data can be used to maximise ewe and lamb survival.
phy. Shelter is a critical factor in multiple lamb survivability and a gradient of over 30 degrees will significantly increase the chance of separation in multiples so should be avoided. Identifying early lambing ewes will allow these ewes to be set-stocked in paddocks which can then be a focus of attention over their lambing period. “It allows more intensive management if that’s what you choose.” Paddocks with higher pasture covers can be
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used for multiple-bearing ewes in poorer condition. Stocked at a lower stocking rate, these higher covers will enhance lamb survival and allow ewes to partition feed into their own reserves in late lactation. If paddocks are setstocked with only multiple-bearing ewes, replacement ewe lambs can just be selected from those paddocks, as these are the most fecund ewes. If individual paddocks are set-stocked with ewes
that are known to carry only singles, only twins or only triplets, it allows reasonably accurate lamb survival data to be collected from each paddock at tailing. Combined over a few years, this data will highlight which paddocks have the best lamb survival rates. This allows informed decisions to be made about which ewes go into which paddocks at lambing. Kenyon says in high performance flocks, where 80–90 % of ewes
are carrying multiples, the value of scanning could be questioned, but there is still benefit in knowing which are the early and late lambing ewes. Second and third cycle ewes can be maintained on a rotation while the focus goes on the early lambing ewes. “At day 120, some ewes will be 120 days pregnant and others will be 69 days pregnant. Their nutritional needs are very different so why feed them the same?”
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Kenyon stresses that strategic management doesn’t mean having multiple mobs. Rather it’s about using scanning and body condition data to determine which ewes need to be in which mob. “These are tools that allow informed decisionmaking.” • For more info listen to the BLNZ podcast: https://beeflambnz.com/ knowledge-hub/podcast/ use-ewe-pregnancydiagnosis-scanninginformation-professor-paulkenyon-massey
RURAL NEWS // JUNE 21, 2022
26 MACHINERY & PRODUCTS
Manufacturer hustling to double NZ production MARK DANIEL markd@ruralnews.co.nz
HAWKE’S BAY farming equipment manufacturer Hustler Equipment has announced the recent acquisition of the production facilities of McLaren Stainless. The former are specialists in feeding, handling and spraying equipment, while the latter is an engineering business operating for three generations since 1919. Hustler says the acquisition is the natural result of many years of active
Some of the team at farming equipment manufacturer Hustler Equipment.
business collaboration between the two companies, with McLaren providing it with extensive expertise in subcontracted fabrication, plate processing and machining. “This was a logical
step to overcome some of the current supply chain challenges in the industry and to help us keep up with the global demand for Hustler’s innovation,” explains Brent Currie, Hustler Equipment chief
executive. The ex-McLaren building in Hastings will provide an additional 4,000m² of office, fabrication, plate processing and machining space to the current 8,000m² of site
works at Hustler’s global headquarters on Omahu Road, Hastings. Currie says this will allow Hustler to overcome the difficulties currently facing many manufacturers in the global supply chain
by virtually doubling its domestic production fabrication capacities. With this acquisition, Hustler aims to continue its rapid domestic and international growth, having retained some key McLaren Stainless staff. Currie says the company is now confidently looking forward to the launch of several new product lines later this year, including feeding and handling equipment. “Farmers are experiencing many months of delay before getting new feed-out equipment that
is crucial for the industry as global demand for dairy and meat products is steadily increasing,” he explains. “We had reached a point where it became necessary to find a solution to meet the demand of the farmers who keep feeding the world in the current a pandemic. We must do our bit to help them by continuing to provide readily available, innovative equipment and great customer service.” @rural_news facebook.com/ruralnews
VALTRA’S FOLLOWING GROWS WITH THE release of its N5 and T5 series of tractors, Valtra continues to expand its presence in the AustraliaNew Zealand region. AGCO’s ANZ Valtra product manager Paul Morris says the brand has built an increasing following in Australasia over the last few years. He reckons this is based on the performance, reliability and user friendliness of its N4 and T4 series tractors. “One of the most satisfying things we see are the number of farmers and
contractors who buy Valtras based on the recommendation of friends and neighbours,” Morris adds. The latest fifth generation N5 and T5 tractors are said to create a better working environment thanks to the new A-Pillar digital display and a redesigned cab interior. The tractors’ new daytime driving lights add to the modern look and are complemented by a number of new paint colours and cabin trim options. T5 Series tractors offer power outputs from 155-271hp, featuring a six-
cylinder Stage 5, AGCO Power engine set up. These feature low revs and high torque, with a 600-hour service interval to reduce service costs and deliver a longer lifespan. Easily configured for loader operation, a multi-function joystick gives full electronic control with more than 2.5 tonnes lift capacity. It also gives great visibility of the implement during work and upward visibility via a roof window to the nearly 5 metre operating height.
A ‘Lock & Go’ system makes it fast and easy to mount or remove the loader from the tractor. Meanwhile, the T5’s long wheelbase and tare weight delivers stability to handle loader work. The four-cylinder N Series tractors offer power ratings from 135hp to 200hp, using Stage V, 4.9 litre engines. These feature Start Boost and Superstart functions for easy start-off under high loads. Claiming the best power-toweight ratio in its class, the N Series
is extremely agile without compromising on power to the ground or PTO output. The machine also delivers fuel economy and strong pulling power at all engine revs. The latest N5 powershift transmission can be driven like a CVT in automatic modes, making shifts based on acceleration and torque requirement. In Direct models, the CVT transmission gives you performance and high efficiency at low speeds and heavy pulling – through to light road transport or high speeds.
RURAL NEWS // JUNE 21, 2022
MACHINERY & PRODUCTS 27
Krone adds VariPack to its baler range MARK DANIEL markd@ruralnews.co.nz
THE KRONE VariPack Plus is a high-density, high-performance round baler comprising of four models – the VariPack V 165, V 165 XC, VariPack V 190 and V 190 XC. Offering variable bale diameters from 80cm to 1.65m on the VariPack V 165 and from 80cm to 1.9m on the VariPack V 19, both models also have a cutting system as an option. Bales are formed by four endless belts that rely on hydraulic pressure, to select one of three core setting options, bale density and diameter according to individual needs, all set via an in-cab terminal. The new VariPack utilises tried-and-tested Krone elements like the EasyFlow pick-up, featuring a camless design for quiet running and low wear rates across its 2,150mm working width. The XC models are equipped with a high capacity, 530mm integral rotor and a cutting system with 17 blades, with both elements driven by a heavy-duty, oversized chain drive. Chopping lengths are easily selected to offer all 17 knives, a half set or no chopping – with each blade individually protected from overload and quickly removed from the rear. If desired, operators can remove the entire cutting unit from the crop flow and drop the floor hydraulically to
BUILD GOES AHEAD IN OTHER company news, preliminary work has begun on the construction of the new Krone Parts and Logistics Centre in Spelle, Germany. This is where the company is constructing a stateof-the-art parts warehouse with a logistics centre and offices on an approximately 7.5-hectare site at the entrance to the town. Expected to be operational by the end of 2023 the development will cost around 40 million Euros. “At the start of the year we received the first partial building permit, but until recently, we have questioned whether we should go ahead with this investment in these politically uncertain times,” Bernard Krone, chair of the Krone Holding Supervisory Board, says. “But we have decided to continue on the grounds that both the political crisis and the pandemic serve as a clear reminder to us of the importance of securing domestic food supplies.” Krone says farming and agricultural machinery are plainly indispensable. “So, this construction helps us to address key logistics challenges and position ourselves as a sustainable, longterm reliable partner for our customers.”
remove a blockage. If this option is used, material is not dropped to the ground, but still fed into the bale chamber. With net wrapping as a standard feature, the layout conveniently allows operators to insert a new net roll from either side. There is also the option of a loading chute to make the task easier and twine tying as a further choice. Other clever design features are the rear door – which opens and closes in less than five seconds – and steering indicator to help the operator achieve consistent chamber filling to produce well shaped bales. In action, all chains are automatically tensioned and lubricated, with cleverly-designed
sloping panels helping prevent build-up of grass, dust and debris. Standard tyre size is 15.0/55-17, with 500/50-17 and 500/5520 fitments available as options. All VariPack models are ISOBUS-ready, meaning they can be operated from one of the CCI ISOBUS terminals or any ISOBUS-compatible tractor terminal. For those who prefer a simpler approach is the user-friendly Krone DS 100 or DS 500 control unit. Accessories for these models include a moisture sensor, Tractor Implement Management (TIM) and a camera system for controlled bale ejection. @rural_news facebook.com/ruralnews
The new VariPack baler utilises tried-and-tested Krone elements.
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RURAL NEWS // JUNE 21, 2022
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MANY TEMPORARY sheep fencing systems can be troublesome, with reels jamming or breaking and the bugbear of silly hooks on the chains, which continuously catch on everything. Add to this poly wire breaking down, tangling and cutting through the insulators or standards that don’t hold in the ground and insulators that break down too quickly. It’s easy to see that break fencing can be a nightmare. Strainrite Fencing Systems knows the importance of break fencing both on grass and crops to maximise feed utilisation. Over the years, the company has built up an arsenal of products, with
a focus on user-friendly solutions for sheep farmers. This means that heading to the shed to get your break fencing kit won’t feel like a chore. With a firm belief in NZ Made, the company uses tooling designed in house, followed by manufacturing using high-quality materials and attention to detail - from assembly to the final product.
Making life easier, a Strainrite triple reel set and a reel mounting post is a good place to get started. The reel features self-lubricating gears to avoid jams or stiff operation and a 3:1 winding ratio for fast operation. Meanwhile, the mounting post is made of galvanised angle iron, that won’t flex or bend and, importantly, has no annoying hooks that can
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get caught on the rest of the load during transport. Loaded on each reel is Strainrite’s Super braid, featuring eight stainless wires that allow a lower resistance and high conductive charge over standard poly wires. It also has the added benefit of not coiling up when released, therefore dramatically reducing the risk of tangling. Having good multiwire standards is key to carrying power across the fence line, with a good foot for ground holding. Strainrite’s pressed formed foot –
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with its unique channel profile – is considered by its customers to be the best in ground holding on the market for any soil type. Power distribution is taken care of by the new Pigtail Multiwire that has a UV resistant Injection moulded shaft for easy installation even if the fence is ‘hot’. For use at the end of runs, Strainrite’s unique Hotpost Multiwire are a must because the allsteel profile becomes ‘live’ – meaning power transfers to all three hooks and removes the need for a degree in knot tying.
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RURAL NEWS // JUNE 21, 2022
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