Rural News 17 January 2023

ANIMAL

Butter branding battle!

SUDESH KISSUN sudeshk@ruralnews.co.nz

WESTLAND DAIRY Company is standing by the packaging of its awardwinning Westgold butter in the face of legal action by Irish dairy group Ornua.

The West Coast milk processor, owned by Chinese food giant Yili, is vowing to “defend the claims made” by Ornua over packaging of butter it sends to the US market.

Westland Dairy chief executive Richard Wyeth told Rural News the company received legal notice that fellow butter brand, Kerrygold, is seeking to prevent Westgold butter from using its packaging in the US.

Wyeth says Westgold’s distinctive packaging is linked to its rich heritage on the West Coast of New Zealand and the taste of its traditionally churned, grass-fed butter is rapidly gaining recognition around the world.

“While we would prefer that consumer taste be the ultimate judge, we will vigorously defend the claims made,” he says.

Ornua, owner of Kerrygold, claims “wilful trademark infringement”, according to legal documents filed in the US district court in northern California.

The lawsuit is aimed at stopping Westland from advertising, marketing, distributing or selling butter products using a trademark and trade dress “that are confusingly similar to Ornua’s federally registered Kerrygold trademarks and trade dress”, the preliminary statement said.

Trade dress is the commercial look and feel of a product that identifies and

distinguishes its source, according to US trademark law.

The packaging of both Kerrygold and Westgold has a similar colour and a black and white cow on them; both also have a “grass-fed” type of seal.

Westgold was launched in 2004 and won the top butter brand title in the 2019 NZ Champions of Cheese Awards.

Rural News understands Ornua objected to Westgold’s packaging after Westland rolled out the product across 550 Walmart stores in 19 American states in November last year.

During the launch Westland said it was the first step in the company’s global expansion into the US market. The company said Westgold’s challenge will be to stand out to shoppers in the United States butter market, which is dominated by long-standing brands.

Ornua said when it learned that Westland intended to start selling in the US with a name and packaging “confusingly similar” to Kerrygold, it

sent the company a cease-and-desist letter.

It said Westland responded to Ornua’s letter on Aug 27, 2022 and since then Ornua had tried to reach an agreement with Westland to protect

the Kerrygold trade dress.

Those efforts, however, recently reached an impasse, Ornua said.

The Irish dairy giant wants an account of Westland’s profits arising from the alleged unfair competition

and trademark infringement and awarding of those profits to Ornua, as well as for damages sustained by Ornua.

Westland has until January 19 to file a response.

Tasty indications!

European Union ambassador to NZ Nina Obermaier is a self-confessed cheese fan. At Fieldays last year she was proudly showing off some of Europe’s best and unique cheeses. On show were cheeses linked to a particular region in the EU and are defined in the recent Free Trade Agreement between the EU and NZ as geographical indicators.

This means that other countries such as NZ can’t use the name of that specific cheese.

More about the EU FTA on page 6

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Supermarkets make egg production clucking difficult

PETER BURKE peterb@ruralnews.co.nz

THE SUPPLY of eggs in NZ is likely to be tight in the coming year.

That’s the view of the NZ Poultry Association executive director Michael Brooks. It comes in the wake of the announcement by the two major supermarket chains, Countdown and Foodstuffs, that they will only sell free range or barn eggs from 2025 and 2027 respectively.

Over 50% of the eggs produced in NZ are sold in supermarkets and during the summer break there were reports of some supermarkets around the country running out of eggs.

Last year saw the end to the battery farming of hens, but the National Animal Welfare Advisory Committee (NAWAC) approved the use of free range, barn and colony cages. The latter is a large cage, which can hold up to 60 hens and has a

special area for them to lay their eggs and an area to allow them to perform natural acts such as scratching and dust bathing.

Poultry farmers had from 2012 until the end of 2022 to transition out of using battery cages and many opted for the colony system – currently

about 33% of the national flock is in colony cages.

However, Brooks says the move by the big two the supermarket chains has caught poultry farmers off guard and there has been significant exodus of egg producers from the industry. He says the reason is cost, especially

WHO’S DRIVING THE CHANGE AND WHY?

MICHAEL BROOKS levels the blame for the current egg chaos that now exists squarely on the supermarket chains.

He says their decision not to accept eggs produced in the colony system is plainly wrong. Brooks says the colony eggs are cheaper than free range and barn eggs and taking this option away from consumers is unfair on people – especially those in lower socioeconomic areas.

He believes by not selling colony produced eggs, which are perfectly legal and safe, is taking away a lawful choice from consumers.

“When this was raised with the supermarkets I asked them what their welfare argument was and they didn’t

have one,” Brooks told Rural News. “They said their decision was based on consumer demand and I said I must have missed the demonstrations in Otara, Cannons Creek and other towns where people were saying they don’t want those cheap colony eggs and instead give us the more expensive free ranges ones. It’s just a nonsense argument.”

Free range farms are generally very well managed, but there are challenges such as ensuring hens are not continuously allowed to range on one paddock and must be rotated around other pasture to prevent disease. There is also the issue of preventing birds such as sparrows getting into free range sheds and eating food and

potentially spreading disease. Then there are predators such as hawks, ferrets and stoats. All this comes at a cost hence the premium on free range.

With a third of the flock in colony cages, people will still be able to buy these eggs from their local poultry farm or corner dairy or veggie shop. Some people may choose to buy their own hens and already it is challenging to buy pullets because poultry farmers are holding onto their stock, while other suppliers have simply gone out of business.

Brook says the national poultry flock stands at 3.3 million – the lowest it’s been for years. He says to meet domestic egg demand it should be closer to four million.

for older farmers who see little merit in going into debt to transition into barn or free range systems, which they know little about, just to supply the supermarkets. Many had already spent more than a million dollars transitioning from cage to colony systems.

“What’s more, we have seen about 15 free range egg farms close down in the past year and no new ones have applied for membership of our association,” he told Rural News “They have been hit by Covid and rising grain prices and decided it’s no longer worth remaining in business.”

Brooks says the pathway to setting up a new free range egg farm is fraught with difficulties, not the least of which is the price of land because free range operations need lots of land. He adds that obtaining a consent to establish the farm can be a major problem.

One farmer Brooks knows tried to get a consent, but nearby lifestyle farmers objected and took a case to the Environment Court and in the end the farmer just gave up.

“I know one farmer who spent twoand-a-half years in the Environment Court trying to get consent,” he says.

Clarification

In our December 20, 2022 issue, a front page photo that accompanied the story entitled “SLAVISH RUBBISH!” includes a Mubwons worker wearing a bandana that featured the company’s branding. Mubwons is not an RSE employer and Rural News accepts that the use of this photograph may have incorrectly associated Mubwons with the RSE programme and apologises for this possible inference.

Moves by the country’s two major supermarket chains that they will only sell free range or barn eggs have played a big part in the current egg shortage.

When and where will farm emissions regs finally end up?

PETER BURKE peterb@ruralnews.co.nz

THE GOVERNMENT claims it has “listened and adapted” to take on board the issues that submitters made to its initial response on the He Waka Eke Noa (HWEN) report on how to deal with agricultural emissions.

Agriculture Minister Damien O’Connor says the latest proposal –released just days before Christmas –has addressed some of the concerns raised by HWEN and other groups, including Federated Farmers.

When the initial Government report came out in October there was outrage in rural NZ with fears that whole rural communities would be decimated by its proposal. This prompted a flood of submissions for the Government to change tack. Fed Farmers effectively left the HWEN partnership because it was not taking a hard enough line against the Government.

O’Connor told Rural News that with the changes made to what is known as a section 215 report, he’s confident that when farms go through a comprehensive assessment of their

emissions liabilities they will not be as badly affected as was originally talked about.

There has been some criticism of the 215 report being released in the dying days of December, but there was a legal requirement for this to be done by the end of 2022. O’Connor claims there were many reasons for the lastminute release, most of which focused on final talks with HWEN and other parties.

The changes in the latest response are described as ‘high level’ and include a five-year price pathway established from 2025. The Government claims this provides certainty out to 2030, while the proposed emissions levy will be set at the lowest price possible. It also agreed to recognise scientifically robust on-farm sequestration in the ETS and work with the agricultural sector on options for transitional support.

O’Connor says he understands the need for greater certainty for farmers and growers in their business planning. He adds that the Government is urgently working with the sector to develop a process to recognise on-farm carbon sequestration, which is a top priority for farmers.

“Sequestration needs to be recognised in a way that is fair, costeffective, and scientifically robust,” he told Rural News.

O’Connor says there is a commitment to work with HWEN to investigate options for targeted transitional support for farmers and officials will do further work on the use of collectives to simplify reporting and payment obligations.

“We still need to work through some details, but we have made a heck of lot of progress on the core areas.”

DEVIL IN THE DETAIL

REACTION TO the latest missive from the Government is somewhat muted and there appears to be a sense of suspicion of where this all may end.

Among the sceptics is Federated Farmers president Andrew Hoggard who says the response is so high level they may not be able to clearly understand the detail until they actually see it when introduced as legislation later this year.

Hoggard says at a high level some of the changes seem to be improvements and it appears to have moved back somewhat closer to the original He Waka Eke Noa proposal from industry in May. However, he says large concerns and unrealistic timelines remain in place.

“We know that the whole world is watching on, aghast at what NZ is doing, in the midst of a global food crisis,” Hoggard told Rural News. “Everyone else is talking about food security and working with farmers to develop practical on-farm solutions.”

He adds that only NZ is taking the punitive step of taxing efficient, unsubsidised food production, even if it comes at huge costs.

Beef+Lamb NZ chief executive Sam McIvor says the report is a significant improvement on the Government’s October proposal, but adds that much work still needs to be done on critical details before sheep and beef farmers can feel confident in the final agricultural emissions pricing system.

McIvor says farmers are highly concerned about the impacts of agricultural emissions pricing and won’t stop working for the right outcomes.

“We’re not there yet, as there are a lot of details to work through, but we have moved closer to what the HWEN partners recommended in our November submission,” he says.

McIvor says sequestration remains a key area of focus for B+LNZ. He says though the section 215 report commits in principle to recognising all categories

of sequestration and transitioning to the ETS, there is more clarity required and work to be done.

Meanwhile DairyNZ chair Jim van der Poel says what the Government has come back with is more closely aligned with what the sector proposed earlier this year, “but the devil will always be in the detail”.

He says farmers are already facing huge cost pressures with rising interest rates and on-farm inflation driven by feed, fuel and chemical prices.

“Emissions pricing is going to add yet another cost, so it’s important we continue work to achieve emissions reductions in a fair, practical and equitable way,” van der Poel told Rural News. “Throughout this entire process, DairyNZ has maintained that ‘no deal is better than a bad deal’ and we would never accept an emissions pricing system that would put our farmers or rural communities at risk – and we stand by that.”

Agriculture Minister Damien O’Connor claims the latest proposal has addressed some of the concerns raised by HWEN and other groups.

“Sequestration needs to be recognised in a way that is fair, cost-effective, and scientifically robust.”

Trading challenges for NZ hort

PETER BURKE peterb@ruralnews.co.nz

NZ’S HORTICULTURAL exports have risen in dollar terms, but at the same time, percentage wise, the tariffs these incur have dropped by nearly two thirds since 2004.

That’s the good news for sector revealed in the biennial report Barriers to Our Export Trade produced by the Horticultural Export Authority (HEA), which was published just before Christmas.

The HEA is responsible for promoting the effective export marketing of NZ’s horticultural products –including advocacy for the freeing up of trade barriers. Chief executive Simon Hegarty says this is due to the 12 operative Free Trade Agreements that NZ has signed. In 2004, there were just two FTAs.

Hegarty told Rural News the overall

picture is good news with the growth of NZ horticultural exports that are now worth $4.8 billion.

However, he says below the surface the news is not so good for some sectors, notably avocados, onions and asparagus, which have seen their export earnings fall. Prices for apples and kiwifruit have been good, which Hegarty says has effectively propped up the earnings for the wider sector.

The report notes that while in purely dollar terms the amount of money NZ is paying in tariffs has risen, this is due to the overall increase in exports.

The 240-page report is crammed full of statistics and is regarded as a bible for those in the industry. In his forward to the report, Charles Finney notes that in his time as a trade negotiator the report was an incredibly useful

document which clearly highlighted where the problems were for NZ exporters and the cost of these.

Finney makes the observation that the UK and EU FTAs could not have come at a better time for NZ and will provide immediate benefits for our horticultural exporters.

now takes 20% of these. But Simon Hegarty warns there is no guarantee that this will continue in the future.

“I think that with the signing of the NZ/ EU/FTA’s we will see a refocus on the EU because 70% of our total tariff costs has been on trade with the EU,” he explains.

“This has not been helped with the exceptionally high freight rates and disruption to shipping, which has made trading with Europe high risk and expensive. So, I would not be surprised to see a return to the number one position by the EU,” he says.

Of particular note in the report is the fact that in the past year China has taken over from the combined UK and EU markets as the main outlet for NZ’s horticultural exports. It

STORM CLOUDS ON THE HORIZON

A MAJOR issue flagged in the report is the concern of rising non-tariff measures (NTM’s) – essentially technical and bureaucratic hurdles that are placed on products when they get to the border of a country we export to.

These can include things such as phytosanitary regulations, labeling, food additives, the lack of recognition of NZ systems and the time taken to approve the export of new products. Such ‘barriers’ are not unique to

horticulture and most primary exports have struggled to deal with these kind of obstructions over the years. Sometimes rules have been introduced without warning and created much angst for exporters.

“There is vast array of NTM’s that horticultural products face and these are sometime below the radar so we are very concerned about this,” Hegarty told Rural News.

Hegarty says the HEA is positive

The other issue with China is that it’s a very difficult market to access because not all of our products can be sold there. He says NZ only has market access for approximately 12 products in China.

“Just because we have got an FTA with

Hegarty says there is a

now

supply chains compared to Europe. A new market is Vietnam, rising rapidly up the ladder since 2012 from our 21st to our 8th largest market. Hegarty says there has been a slow but continuous growth with sales to South Korea, while Japan and Taiwan remain high on the list.

Then there is Australia.

“While we have the CER agreement with Australia, it doesn’t help and it’s probably one of the most difficult markets to access for horticulture because there are phytosanitary restrictions on a number of products,” he explains, “so trade with Australia has been quite stagnant.”

about the future but warns of some serious headwinds at the moment. He says many of these are in NZ, such as concerns about the supply of labour to grow, harvest and export crops, not to mention the variable climatic conditions.

“It’s been a fairly hard slog for the last couple of years. We are hopeful and positive for next year, but we can see the storm clouds and feel the winds already.”

China doesn’t mean that we can send all our horticultural products there,” he told Rural News.

a strong Asian focus for NZ horticultural products. This is because it is closer to NZ and there has been less hassle with shipping and

Horticulture Export Authority (HEA) chief executive Simon Hegarty.

The other issue with China is that it’s a very difficult market to access because not all of our products can be sold there.

EU/NZ FTA signed soon?

PETER BURKE davida@ruralnews.co.nz

THE EUROPEAN Union’s ambassador to NZ, Nina Obermaier, is hopeful that the FTA negotiated last year will be fully signed off by the middle of this year.

While there has been agreement between representatives of the two parties, the FTA requires final signoff by their respective parliaments. In the case of the EU, this is far more complicated than it is in NZ. Firstly, it has to undergo a ‘legal’ review and then the agreement has to be translated into the 24 official languages of the EU so that all

their parliamentarians can approve it.

Obermaier says this is now in the process of being done and hopefully the FTA will be formally approved in July this year.

“The FTA will bring our relations to a whole new level. It’s not the signature necessarily but the entry in force which will happen in 2024 if all goes well,” she told Rural News.

“What we will see, and this is what we have seen with other FTAs, is that trade will grow by around 30% and investment at an even greater rate, so we are looking at an increase of roughly 80%.”

Obermaier says Fieldays was so important because EU investors are looking at sustainable opportunities for investment. She believes there are lots of wonderful projects here in NZ.

“We think there are massive opportunities. We are aware that there is disappointment in some sectors about the FTA,” she told Rural News. “However, this (the FTA) goes way beyond dairy and beef access. We are a market of 440 million consumers and when it comes to horticulture, honey, seafood and timber more than 99% of these products into the EU will

be tariff free from day one.”

Obermaier believes the FTA will strengthen the political relationship between the two parties and says this has happened with NZ’s swift response to supporting the EU in respect of Ukraine.

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GEOGRAPHICAL INDICATIONS

WHILE THERE was much protest about the EU’s insistence in preserving geographical indications for some of its products, especially cheese, Obermaier insists that this protocol opens up opportunities for NZ.

She points to Marlborough Sauvignon Blanc as an example, which has a very high recognition in Europe. She says this is due in part to backpackers who have come to NZ and tasted this wine and want to buy it back in their home country.

Obermaier says the insistence on geographical indications can be linked to the overall food culture that exists in Europe, which is not so strong in NZ. She says for many people in Europe, food is a part of their cultural heritage.

“It depends on which country you are in,” she explains. “Some have a much stronger tradition than others, but in general it is something that is cherished as part of cultural life.”

EU ambassador Nina Obermaier is hopeful that the FTA negotiated last year will be fully signed off by the middle of this year.

Something’s wrong with this picture…

Farmer wins $300k payout

council’s failure in these enforcement proceedings,” Chartres explained.

TE ANAU Downs Station owner Peter

Chartres – who won a four-year, legal battle with the Southland District Council (SDC) last October – has now received a $300,000 payout from the council.

SDC went to the Environment Court last April seeking an enforcement order to prevent any further indigenous vegetation clearance on the station and also requiring significant remedial work. However, in October 2022, the court released a detailed 107 page decision declining the council’s application for an enforcement order.

At the time, Chartres welcomed the ruling clearing him of unlawful clearances dating back to 2001, saying the council’s approach had been “overzealous”.

SDC had accused Chartres of unlawful clearance activities dating back to 2001. However, it failed to prove that there had been any breach of the relevant biodiversity rules that applied since that time.

In a statement, SDC chief executive Cameron McIntosh said the council accepted the judgment.

“This has highlighted the difficulties of operating in the realm of the Resource Management Act and associated government regulations,” he added. “In the New Year we intend to raise these matters with the Ministry for the Environment to highlight the complexities of the situation.”

However, Chartres told Rural News it was disappointing to read McIntosh’s comments on the decision.

“He blames ‘the difficulties of operating in the realm of the Resource Management Act and associated government regulations’ for the

“Council’s failure in this case was clearly spelt out by the Environment Court in its decision where it found that SDC had not established any breach of the rules.”

Chartres says it was SDC’s “complete failure to provide any evidence to the court to support its allegations of a breach of the rules” that resulted in the court finding in his favour.

“This has nothing to do with the Resource Management Act and associated regulations as claimed by Mr McIntosh, and nor does the court’s decision identify this as a problem,” he added.

“As the court found, the real issue was that the council did not correctly apply or even understand its own district plan rules, and nor did it ever try to understand or engage with my consistently expressed position on existing use rights.”

Chartres believes the decision awarding him $300,000 in costs “is a vindication of my position and reflects the failings of the Council’s case and

their conduct”.

“It is disappointing that the ratepayers will have to bear the $300,000 costs awarded to me and the more than $500,000 costs that the council spent on its case.”

Chartres told Rural News his family has farmed Te Anau Downs Station since 1925 and that around 78% of the original farm had been appropriated to the conservation estate without compensation.

DAVID

Peter Chartres, with his three daughters, Daniella (5), Lia (7) and Josephine (9) on Te Anau Downs Station

“Council’s failure in this case was clearly spelt out by the Environment Court in its decision where it found that SDC had not established any breach of the rules.”

Bumpy ride ahead for dairy sector in 2023!

SUDESH KISSUN sudeshk@ruralnews.co.nz

BE PREPARED for a bumpy ride in 2023.

That’s the message from Federated Farmers vice president and Golden

Bay dairy farmer Wayne Langford.

With the first Global Dairy Trade (GDT) auction of 2023 recording a drop in all seven products on offer, Langford says the milk

price is facing significant pressure.

Add to this soaring interest rates, high input prices, a shortage of staff and a possible global recession, Langford says farmers are facing “challenging headwinds”.

“I’m an optimistic guy, however even I can see the pressures coming in 2023,” he told Rural News.

chief executive Steve Koekemoer says it will take some time to work through this over the coming months but expectations are that China’s increased participation at the last few auctions round means an increase in Chinese demand while NZ’s seasonal supply drops off.

“This should translate into some further strengthening in price,” he predicts.

Langford notes that there is significant pressure on the milk price from overseas markets.

Economies across the world are under huge strain and Covid is still having a large impact. At the same time consumers household budgets are being purposely limited to curb inflation.

Another worry for farmers is rising interest rates.

“Dairy Farmers need to plan now, saving some cash in the bank to get through the challenging times coming at us. The potential for a significant lowering of the milk price and rise in interest rates is real,” Langford adds.

“Take time to enjoy your family and friends, enjoy the cows and green grass as there could be a few bumps in the road ahead.”

The first GDT auction of the year saw the flagship whole milk powder prices drop 1.4% to $3,208/metric tonne. One year ago, WMP prices were over $4,000/ MT.

Dairy companies believe China’s Covid policy has forced domestic production of WMP, which added to their inventory levels.

Open Country Dairy

Langford points out interest rates have risen significantly and will continue to rise in 2023.

“With many farmers floating their rates, it will not be uncommon to see a 9% rate. This is $1.50$2/kgMS more than only a short time ago for the average dairy farm,” he adds.

The labour market is still extremely tight, with many farms choosing lowering productivity because of not being able to find staff.

Langford says with the milk price coming back, farmers are still yet to see the main farm input prices coming back like fertiliser, feed and fuel. Amid the gloomy forecast there is one silver lining – there is plenty of green grass around the country.

Federated Farmers vice president Wayne Langford says dairy farmers are facing “challenging headwinds”.

“Take time to enjoy your family and friends, enjoy the cows and green grass as there could be a few bumps in the road ahead.”

Interest pinch adds to farmer stress

A SURVEY of nearly 1,200 farming businesses by Federated Farmers has shown that farmers are being squeezed by rising interest rates, with debt or other financial concerns eroding mental wellbeing.

The survey – conducted late last year – reports that since the previous survey in May, average mortgage interest rates had increased from 4.59% to 6.29% and average mortgage values increased 2.95% ($4.07m to $4.19m).

The average level of overdraft was up $46,000 to $328,800 – with an average interest rate of 8.59%.

Federated Farmers president and economy spokesperson Andrew Hoggard said with big numbers like that it wasn’t a surprise that over 40% of farmers said they felt their mental wellbeing had been affected by their debt levels, interest rates, or other forms of financial pressure.

“It’s a reflection of the impact of official cash rate rises and while plenty of other Kiwi households and businesses are also feeling the pinch, many farms are carrying high debt,” he says.

MPI’s Situation Outlook for Primary Industries (SOPI) report, also released late last year, highlighted the boost to the economy from an estimated record $55 billion in food and fibre export returns by June next

year. However, what didn’t make the headlines was that farm expenses jumped 15% in the September quarter compared to the September quarter 2021, with rises in fuel (53%), fertiliser (37%), debt servicing (34%) and weed and pest control (21%) leading the way.

The Fed’s survey also shows that farmer relationships with their bank continues to slip; just on 60% of farmers said they were very satisfied or satisfied with their bank relationship.

This was down 5 points from the survey six months earlier, and is the lowest since the biannual surveys began in 2015.

Some 17.4% of farmers perceived they had come under undue pressure over the past six months, up 3.5 points from May 2022, with sharemilkers leading the way (20.7%). Overall, banks’ conditions for lending became tougher rather than easier for all farm types, with 3.3% reporting easier conditions and 26.8% reporting tougher conditions.

Hoggard said that with satisfaction slipping, the banking sector might reflect on comments from respondents that personal contact from bank staff has been declining over recent years and most farmers are unhappy about it.

“High staff turnover, rural bank branch closures with consolidation of staff into bigger branches and regional centres, and Covid work policies (e.g. working from home and less able to travel) have all been cited as reasons for reduced personal contact,” he explained.

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LEO ARGENT

Federated Farmers president Andrew Hoggard says it’s not surprising that farmers felt their mental wellbeing has been affected by debt levels, interest rates or other forms of financial pressure.

“While plenty of other Kiwi households and businesses are also feeling the pinch, many farms are carrying high debt.”

Costly quality issue for NZ

PETER BURKE peterb@ruralnews.co.nz

THE CHIEF executive of one of the country’s biggest fruit growers and packers believes there is a huge elephant in the room around kiwifruit quality and there is a major opportunity for improvement.

Seeka’s Michael Franks says Zespri has been investigating why, in recent years, there’s been a drop in quality of the kiwifruit crop.

“Some of the fruit has arrived in the market soft and a large team from Zespri has been tasked with finding out why this is the case,” he explains.

“The reasons offered so far are adverse climatic events coupled with the impact of Covid-19, which has resulted in labour shortages at harvest, post-harvest and right through the supply chain with erratic shipping schedules.”

Franks told Rural News there is a huge opportunity to improve the brand by delivering the consumer better quality and deliver improved earnings to the industry by lowering the total

cost of quality from the estimated $490m.

“Losing some fruit is a fact of life when dealing with a perishable product, but the present loss should not be this high.”

Franks believes the problem is particularly prevalent when shipping to European ports because it takes longer to get there.

“With the added shipping delays caused by Covid, the problem has been exacerbated.”

He says the problem is not quite so bad with shipments to Asia, which is closer to NZ.

“The lack of skilled people to pick last season’s harvest, which was rushed anyway, contributed to the advent of poorer quality fruit.”

Franks says at one stage Seeka itself was 1,100 staff short.

While the news is outwardly negative, he sees a great opportunity for NZ and kiwifruit growers if the quality issue can be solved.

Franks reckons if the industry can bounce back and focus on the issues offshore – as well as on the home front – there will be benefits for all.

Zespri has been investigating why, in recent years, there’s been a drop in quality of the NZ kiwifruit crop.

The battle for Waikato milk heating up

THE FIGHT to secure milk in Waikato is heating up.

The country’s second largest milk processor Open Country Dairy (OCD) is making a push for more suppliers.

In a bid to lure suppliers from Fonterra, OCD is also offering a new milk payment option, similar but superior to the co-op’s, for new and existing Waikato suppliers.

Its new ‘milk price plus’ initiative guarantees farmers 5c/kgMS more than they would have earned on Fonterra’s farmgate model and a better advance rate.

OCD chief executive Steve Koekemoer says the company is putting two payment options before Waikato farmers, because some farmers are used to working around traditional farmgate milk price models based on the markets.

“We currently pay our farmers quarterly in full, which follows the market pricing and delivers cash back to the farmers quicker. We have always believed that farmers deserve to get their money back faster,” he says.

OCD, which has recently commissioned a new cheese capacity upgrade and lactose plant at its Waharoa facility, needs more milk to fill it.

Another Waikato milk processor, Yashili, is also in the market looking for new suppliers of cow, goat and sheep milk. The Chinese company operates a plant at Pokeno making milk powders and cream, mostly for China.

On its website, the company is inviting interest from Waikato farmers “to be part of one of the world’s leading producers of premium products”.

For the first time, Yashili had a site at the National Fieldays.

Singapore conglomerate Olam is on track to process milk at its new Tokoroa plant in August next year. The company is actively trying to sign up farmer suppliers.

In Otorohanga, Happy Valley Milk is trying to raise funds to build a new plant.

Former Waikato Federated Farmers president Andrew McGiven told Rural News that it does appear that competition is heating up again in the Waikato.

McGiven, a Fonterra supplier, says competition is “a nice option for farmers if they’re in the right districts”.  However, he’s worried about Fonterra losing too much milk to rival processors.

“I think if Fonterra’s milk supply becomes too fragmented, then as an industry we may lose a co-op with the ability to set the national milk price, and if this role/responsibility falls to a corporate processor then we may well see reduced milk premiums for farmers, much like the Australian dairy industry.

“But I also think that we have a way to go before we have to consider that possibility.”

McGiven says he hasn’t been approached by any processor yet but he heard the Open Country advertising on the radio.

SUDESH KISSUN sudeshk@ruralnews.co.nz

“We currently pay our farmers quarterly in full, which follows the market pricing and delivers cash back to the farmers quicker.”

It appears that competition is heating up again in the Waikato with a number of companies in the region challenging Fonterra for milk supply.

Interesting year ahead!

2023 WILL be an interesting year in both the farming and political spheres.

Last year ended with farmer confidence –which was already at low levels –plummeting further to sit at an historical low.

According to the Rabobank Rural Confidence Survey released late last year the farmer net confidence reading slumped to -71%. This is the lowest in the 20-year history of the survey and far exceeded the previous low of -45% recorded amid the dairy downturn in 2015.

Rabobank New Zealand chief executive Todd Charteris said farmers from all the sectors are now significantly more pessimistic about the prospects for the broader agri economy – with a cocktail of concerns weighing heavily on farmer sentiment.

“Rising farm input costs and government policy were the two major reasons cited by farmers with a pessimistic outlook for the year ahead,” he said.

A major challenge that the farming sector faces in 2023 is where the controversial farm emissions regulations will end up. Just before they disappeared on holiday for six weeks, Prime Minister Jacinda Ardern and Agriculture Minister Damien O’Connor released a somewhat halfcooked announcement on agricultural emissions pricing, saying that a final decision will be made by Cabinet in early 2023 with the aim to introduce legislation by the middle of the year.

Even the Government’s partners in He Waka Eke Noa (HWEN) – namely Beef+Lamb NZ and DairyNZ – were uninspired by the announcement, saying much work still needed to be done.

Interestingly, one of the big proponents of HWEN, Beef+Lamb NZ chair Andrew Morrison, is up for re-election in March. However, he could well pay the price for the perceived poor advocacy and communication to farmers by HWEN and Beef+Lamb NZ.

Already, Groundswell NZ is promoting Morrison’s competitor, former Southland Feds president Geoffrey Young, for what it says is “meaningful change”. However, the question is, will farmers – who claim they are unhappy with the status quo but are notoriously appalling at voting in industry body elections – actually vote, and vote for change?

Speaking of elections, the current Labour Government faces the ballot boxes later this year. One can bet that rural and provincial voters, who saw many of their regional seats turn red at the previous Covid-dominated election in 2020, send a clear message and vote against the current Government. The myriad of unpopular rules and regulations it has already legislated or proposed for the farming sector will finally catch up with them.

Pass the popcorn, it is going to be an interesting year!

Yada, yada, yada!

This old mutt notes that ‘activist’ Angus Robson tried a new tack in using woke, online media outfit Newsroom to reboot his ongoing – and thus far failed – attempt to muddy the name of NZ farming. Just before Christmas a story ran on Newsroom, fed to it by Robson, accusing McDonalds of encouraging mud farming. This followed a failed complaint by Robson to the Advertising Standards Authority where he whined about ads used by Maccas promoting the use of NZ beef in its burgers that described NZ beef as being raised in “an ideal climate, lush pastures and innovative farming”. Robson’s complaint to the ASA said the claims were misleading because of some of the winter grazing practices used by NZ beef farmers. Sensibly, the ASA dismissed this whingey complaint and Maccas are still promoting its yummy, NZ beef filled burgers.

Cynical

Your old mate well realises that politicians are slippery types. However, he reckons the Government’s decision to announce its final agricultural emissions policy just a couple of days before Christmas, when most media have knocked off for the year and people are busy readying themselves for the holidays, is one of the most cynical and gutless moves he’s seen. How cynical was it of Ag Minister Damien O’Connor and PM Jacinda Ardern to make possibly the biggest announcement to impact on agriculture in this country since the reforms of the 1980s and then bugger off on holiday for 6 weeks! Perhaps, just like their government’s equally cynical move to pass the deeply unpopular 3 waters legislation right on the eve of end-of year, they hope people will forget about it. Fat chance –especially with an election year in the offing!

Eggageddon

As they say, you can’t make an omelette without breaking a few eggs. And it seems like you can’t introduce a ban on caged egg production without having a major impact on the availability of eggs. As many supermarket shoppers found out during the Christmas break, many outlets have no eggs on their shelves due to new rules which have now come into force, banning caged eggs. While many shoppers were quick to blame chicken farmers and egg producers for the shortage, the Hound reckons the actual fault is that of the animal welfare do-gooders who insisted that regulators ban caged egg production in NZ, which has now led to a shortage of product and prices out of reach for many people. He also believes the egg head politicians who introduced the ban should take a long, hard look at themselves.

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

Sad indictment

Your canine crusader was disappointed – but unsurprised –by the complete lack of ag sector people given gongs in this year’s New Year’s Honours list. Let’s face it, the current government’s distain for the agricultural sector is pretty apparent by the way it has treated the sector over the last few years. Despite the fact the NZ primary sector – literally and figuratively –saved the country’s bacon during the pandemic, not one person in the primary sector was given an award for services to agriculture. No matter what you think of former health boss Ashley Bloomfield, good, bad or indifferent, he was given a knighthood for actually doing his job that he was also paid in excess of $500,000 each and every year for. Nice work, Sir Ash or is that Sir Cash!

PRODUCTION:

Dave Ferguson ......................Ph 027 272 5372 davef@ruralnews.co.nz

Becky Williams .......................Ph 021 100 4381 beckyw@ruralnews.co.nz

REPORTERS:

Sudesh Kissun ........................Ph 021 963 177 sudeshk@ruralnews.co.nz

Peter Burke ...........................Ph 021 224 2184 peterb@ruralnews.co.nz

MACHINERY EDITOR: Mark Daniel .............................Ph 021 906 723 markd@ruralnews.co.nz

PRINTED

“On the brightside - the flood helped us meet the deadline to get them out of those cages!”

Have your say on local government reforms!

her wishes and goals.

DEMOCRACY IS under attack.

The Ardern Government is proposing reforms to councils that will see co-governance forced upon communities across New Zealand.

Local Government Minister Nanaia Mahuta’s hand-picked panel could only report back with the ‘right’ recommendations to the Review into the Future for Local Government as they had to follow her set terms of reference.

There is little surprise the draft recommendations just happened to sound like a list of the Ardern Government’s propaganda. These are radical changes. If implemented they would pass control of local authorities to Māori, and councils would become the right arm of central government.

The panel’s chairman Jim Palmer stated, after describing their draft report as proposed recommendations before a final report is prepared and presented to Minister Mahuta in June, that the panel would love all the proposed recommendations to be supported and that “... the Minister has actually made it very clear to us that she would love future governments of whichever colour they are to take the recommendations of this report forward...”

This means Nanaia Mahuta already knows the so-called proposed recommendations and they align exactly with

Is it not corruption for a government to claim a panel is independent when in fact it has been designed and shepherded simply to do that government’s bidding?

Realistically submissions to the panel are not going to make any difference. The great majority of the 88,000 received submissions regarding Three Waters were strongly against it. Mahuta, however, dismissed this fact and bulldozed on. She even doubled down making 3 Waters 5 Waters by adding geo-thermal and coastal waters, which she omitted in the consultation process.

The outrageous attempt in sneaking in an entrenchment clause could thankfully be stopped after courageous lawyers spoke up and a massive public pushback followed.

Nanaia Mahuta has set a course on co-governance and the Future for Local Government Report is a giant step forward in achieving He Puapua.

Is it still worth making a submission? Yes, as your silence will be taken as agreement. It is important to continue to speak up; submissions close on February 28.

Ardern’s lot will not stop here. The solution is a political one. This can only be stopped by removing the Labour Party from government.

That opportunity presents itself this year. Don’t be blinded by colour or fooled by pretended kindness, fancy slogans and fairytale promises. Be true

to your own values and principals, vote accordingly.

As the mainstream media generally does a very poor job covering matters impacting on our democracy in any

depth, please share this information with friends and family.

I wish for us all that 2023 is the year we saved New Zealand.

• Katie Allan is member of the Oreti Community

Katie

Foot and Mouth Disease

Play your part, update NAIT

In the unlikely event FMD was to enter New Zealand, it would devastate our primary sector and rural communities. OSPRI is working closely with the Ministry for Primary Industries (MPI) and the primary sector to ensure we are best-using the tools and data we have available to support a response team in the event of an outbreak.

Please do the following:

• Ensure your contact details in NAIT are correct

• Tag AND register all of your NAIT animals

• Record all movements within 48 hours

• Sign up to MyOSPRI

If you have followed all of the steps and still need help, our Support Centre is ready to assist you. Call 0800 482 463

For more information see OSPRI.co.nz

NAIT is an OSPRI programme

Failure to comply with NAIT obligations may result in fines or prosecution issued by the Ministry for Primary Industries. For more information about your obligations as a PICA, please visit our website ospri.co.nz.

It’s critical your data in NAIT is accurate so our biosecurity response team can rapidly track and trace the disease, improving the likelihood of eliminating it sooner.

KATIE ALLAN

Board – Southland District Council – and lives and works in rural Southland.

Allan is urging people to have their say on proposed local government reforms, with submissions closing on February 28.

Farm emissions tax is a bad idea for both the climate and country

THERE ARE sound reasons why emissions taxing NZ food producers is not just a bad idea for farmers and food prices but also bad for the environment, the climate and our country.

Per unit of food produced, New Zealand is among the world’s most emissions efficient.

If our food producers can remain at the top for emissions efficiency, the more food they produce, the better for reining in global warming while still feeding a growing human population. Instead of penalising the world’s most efficient food producers, surely for the good of global climate

change, New Zealand producers should be encouraged to maintain, or even increase their production. This would let those countries who are less-emissions efficient, improve their practices or change land use, giving greater benefits to mitigate climate change.

New Zealand is a remarkable story. Our food producers are some of the least subsidised in the world operating from a pin-prick island nation thousands of kilometres from our markets. Yet we can still put our food on supermarket shelves across the globe as the most emissionsefficient food in the world. We should all be

incredibly

The Government’s analysis shows that emissions taxing our food producers could lead to a 20% reduction in sheep and beef and 6 % drop in dairy production. Why would a government reduce the production of the world’s most emissions efficient produced food? We are told we must do this (tax our food producers) to achieve NZ’s climate change reduction targets.

Not only is this selfish – solely focusing on our targets while reducing emissions efficient food production and increasing global warming – it is also contrary to the Paris Agreement food security aspirations, as well as being economic suicide. It is this same short term, flawed, silo thinking that is leading to carbon forestry offsets taking over our farms.

Now, think of your nearest small town anywhere in NZ. Mine is Cheviot, heartland sheep and beef hill country farming in North Canterbury. Typical small town – supermarket, school, pub, couple cafes, retail shops, medical centre, and many small rural businesses servicing

over 150 farms. Based on the average cost per farm, the emissions tax proposed by the Government could take $1 million out of our community in the first year alone, increasing each year after that.

Add to that increasing compliance and costs, multiple unworkable regulations (national policies that are impractical, cost prohibitive or won’t work) and the outcome will be devastating for thousands of rural communities. Less farmer spend will mean businesses like our environmental work will vanish overnight. The tax farmers must pay is the equivalent of 1 – 2 years environmental spend. The environment will be worse off.

Already, traditional farming families with generations of environmental ethos are exiting the industry as carbon forests move in. This trend will accelerate if the emissions tax comes in.

The main reason we are told we must do this (emissions tax our food producers) is because overseas markets are demanding it. Are they really demanding all the outcomes detailed above? I think not. Are they really wanting us to

reduce the production of the world’s most emissions efficient produced food? Again, no. Are they wanting us to focus on our own climate change targets if it means global emissions increase? NO!

The Government is using this reason of overseas markets because there is no rational explanation for taxing our world leading food producing farmers.

Groundswell NZ’s position is clear: we oppose an emissions tax on NZ food producers. We are not against change or the need to address environmental issues.

We believe NZ should aspire to remain world leaders of environmentally sustainable and emissions efficient produced food. The focus should be on best practice actions on-farm integrated across all environmental issues (emissions, water quality, biodiversity) and not a blunt tax that increases food prices, increases global warming, destroys rural communities and is worse for our environment and country.

• Jamie McFadden is Groundswell NZ’s environmental spokesperson.

proud of this achievement (Jacinda and James, take note).

JAMIE MCFADDEN

Jamie McFadden says per unit of food produced New Zealand farming is among the world’s most emissions efficient.

Labour challenges still loom

PETER BURKE peterb@ruralnews.co.nz

AS CHIEF executive of the largest kiwifruit growing operation in NZ, Seeka boss Michael Franks says labour is slightly less of an issue than it was a year ago.

However, he says the issue has not gone away, but the situation has improved. Franks says looking back to last season there was real concern about getting the fruit picked and reckons the industry, in some ways, convinced itself that it would not get the crop off the vines.

Franks told Rural News as pickers were incentivised to rush the harvest it resulted in fruit that was not handled as well as it should or could have.

“In hindsight, we won’t do that again.”

Franks says this year there is new set of problems facing the industry with an indifferent bud break and the frost, which severely damaged some crops. However, he says with the borders opening up, hopefully more backpackers will come to NZ. He

adds that despite this there remains a labour shortage in areas such as Northland, Opotiki and Gisborne.

“In those areas we struggle to find people who will come to work, especially where we are in a situation where we have huge demand and huge market share. To add to our woes, we can’t get RSE workers into Gisborne,” he told Rural News.

are placed around their employment.

“For example, employers have to pay half the airfare of getting them to NZ, guarantee 30 hours pay a week – regardless of whether they work or not and comply with a raft of rules on how and where they are to be accommodated and how they are to be looked after during their stay in NZ,” he explains.

Franks says he understands what the Government wants employers to ensure that RSE workers are well treated but says the vast majority of employers of RSE workers would do this as matter of course.

Franks says while the RSE scheme has many good aspects to it, some growers are sceptical about the economics of employing RSE workers – especially given the very tight government regulations that

“We work cooperatively with the government agencies to ensure that we are providing our RSE workers with excellent conditions and focus on the areas for improvement,” he says. “The regulations ensure that things are done to the lowest common dominator and exclude the employer from making innovative common sense decisions. We should focus our attention on those below the standard.”

Bring a mate and catch a break

Get along to your local Surfing for Farmers and be in to win a Barron Woolight sustainable surfboard.

Never surfed? No problem. Lessons are free, surfboards and wetsuits are provided, and there’s a BBQ after.

Getting off the farm and into the waves can help balance the stresses and strains of farming and you could win a Barron surfboard, we’ve got 10 to give away.

For more details and to find a surf spot near you visit www.rabobank.co.nz/surfing-for-farmers

Seeka boss Michael Franks says while labour is slightly less of an issue than it was a year ago it is still remains a challenge for the hort sector.

This year there is new set of problems facing the industry with an indifferent bud break and the frost, which severely damaged some crops.

Matt on a mission to improve rural mental health attitudes

AFTER NARROWLY avoiding a helicopter crash in the Southern Alps, instead of feeling relieved, TV presenter Matt Chisholm was disappointed.

Struggling with burnout and depression, he found himself wishing the chopper had crashed with him in it. Despite having a wonderful wife, his dream job and his two boys at home, he was miserable.

But looking back at that moment on the mountain, Chisholm now realises it was a turning point and the start of a new chapter in his life.

The charismatic former host of Survivor New Zealand and Celebrity Treasure Island had also held multiple current affairs roles over the years on shows like Close Up, Fair Go and Sunday. But reeling from burnout and exhaustion, he knew this had to change. He yearned to return to his country roots.

Chisholm left his job at TVNZ and moved to a 29-hectare property in Central Otago, where he now farms sheep and beef. He found ways to manage his own mental health and has since signed up as the inaugural Ambassador for the Rural Support Trust.

As part of that, Chisholm has embarked on a mission to get more people talking about their own mental health, as part of the Trust’s Time Out Tour, sponsored by ANZ. More than 2,300 tickets were issued for events up and down the country in 2022, with more events planned for this year.

Speaking late last year at a wellattended event in Ashburton, Chisholm said he first realised he was depressed decades ago after picking up a pamphlet in a doctor’s office while being treated for an STD.

“There were about 16 boxes – if

you have these symptoms, you may be depressed – and I ticked every box,” he said. “Despite that, I was actually more willing to talk to my doctor about my STD than about my mental health.”

He is an entertaining speaker, with his down-to-earth sense of humour keeping the rural mid-Canterbury crowd smiling. However, there are also sombre moments when he talks about the harsh lessons he has learned.

Chisholm is open about the fact he has struggled with alcohol and drugs, he has now been sober for 11 years. He spoke about the pressure he felt growing up to live up to the ‘Southern Man’ stereotype – the kind of man who never admits to having feelings beyond a deep love for his local rugby team.

That pressure pushed him to drink to excess and “do stupid things” – with his alcohol abuse leading to a deep sense of self-loathing,

and depression. After realising his childhood dream of getting into TV journalism, and sticking with it for more than a decade, his mental health deteriorated, and work became yet another overwhelming addiction.

“I stopped sleeping and started waking up with huge headaches.

I started getting angry at work, even with nice people,” Chisholm explained. “I had trouble with the basics, I started thinking that my colleagues were stitching me up –

I was going mad,” he explained.

“Useless at home, I’d just sit there angry and wonder why I wasn’t as capable with the kids as my wife. I was trying to be a great dad, and broadcaster, but I was breaking. I hated work and I didn’t like being at home, and I’d created a life which didn’t see me be anywhere else. I wasn’t getting any joy from anything.”

He spoke about the death of close friend and fellow broadcaster Greg Boyed, who took his own life in 2018

despite telling Chisholm he was getting help.

“We told each other that we weren’t going to do anything stupid. Greg told me he was getting help for his depression, I told him I would do the same. I thought he was in a better place than me.

“Days later, I picked up my phone and saw a headline pop up – it had ‘Greg’ and ‘Boyed’, and I knew that my mate Greg had killed himself.”

Chisholm has spent a lot of time getting better – learning to forgive and like himself and becoming a better person.

“Not being OK is surprisingly normal. Most of us will go through something in our lives that affects our ability to function mentally – we have to get people to understand that and create safe spaces for people to open up and share.”

Chisholm says he now tries to focus on the positive and appreciate the beauty around him.

“I’m exercising, learning, connecting with people, giving back, doing all the things I knew I needed to do, but didn’t, because I didn’t give myself a chance,” he added. “Sometimes I still get anxious and think negatively, but now I know what I need to do to look after myself, to catch those negative thoughts and kick them to the kerb.”

His main reason for taking part in the Time Out Tour was to encourage more people to put their hand up and ask for help, without feeling ashamed.

“You are more of a man if you ask for help,” he said. “I also think it’s up to everyone else to look out for each other; if you think someone close to you is a bit off, be brave and ask them how they’re doing.

“If you feel like you’re being fobbed off, ask them again. You do not have to be an expert to listen.”

Keeping it simple on farm costs

AFTER 30 years’ dairying on the same Bay of Plenty farm, Donna and Corrie Smit have learnt lessons on weathering everything from devastating floods to milk price fluctuations.

As dairy farm costs climb ever upward, the Smits are applying their lessons from previous peaks and troughs at a time when many farmers are struggling to maintain profitability.

Farmers involved in DairyNZ’s Budget Case Study project, which includes the Smits, have experienced an average increase in operating expense over the past 2 years of an eye watering 23%, up from $4.34/kgMS to $5.35/kgMS*.

That $1.01/kgMS jump in costs has been covered by the rise in gross farm revenue of $1.26, most of this being needed to pay for the higher interest rates and living expenses.

Donna says she and Corrie have stuck to a “keep it simple” approach throughout their farming career.

At its core, and playing a key part in holding costs down, is the mantra to “grow more grass and turn it into milk”, capitalising on what will always be the lowest-cost feed source at hand.

That ability to maximise the cheapest feed possible has been aided by committing to the highest quality farm they could.

The free-draining productive flats around Edgecumbe were not the cheapest when they purchased their farm, but they’ve proven the most capable of generating quality grass.

Today, the property they’ve added to 14 times is “tidy but not highly automated”, reflecting their simple approach, she says.

Growing plenty of grass has enabled them to hold their farm working expenses (note, this excludes unpaid family labour and depreciation, which are operating expenses)

at around $2.90/kgMS over the past few years, pushed up to $3.50/kgMS for the past year.

The usual suspects also appear on their list of increased costs, namely electricity, fertiliser, fuel, rates and supplement.

Their ability to adjust to rising farm costs stems from their second principle: to keep costs as variable as possible, rather than be lumbered with ongoing, fixed costs.

The Smits also work hard to minimise wasteful hidden costs throughout the farm operation. This demands a quick response to problems, whether it’s a leaky trough or lame cows, whereas leaving those problems results in a far greater expense later.

The Smits have also worked hard to build strong relationships with the businesses and suppliers they deal with, often for decades.

“In return, we do expect quality, service and cost effectiveness,” says Donna.

These open, wellfounded relationships enable them to have honest conversations about price rises.

Future costs include emissions.

Donna and Corrie are tackling the future challenge of greenhouse gas emissions pricing in a manner that also fits with their low-cost, simple approach.

“We’re focusing on breeding better, lighter cows that deliver more kilograms of milksolids per kg of bodyweight, by moving from a Friesian herd to a cross-bred herd.

With no relief from cost rises appearing on the horizon, the Edgecumbe farm may be well positioned for a major shift in operations in coming years.

Their ability to move cows that are suited or not suited to such a system between the farms makes it an appealing option.

Labour savings, and an interesting new way to

continue dairying, are also attractive.

Donna sees robotic milking becoming a popular option, particularly on smaller North Island dairies, as aging owners look to stay

engaged with farming but in a less physical way.

“We’re not quite there yet in terms of the capital cost, but I think it will be getting closer with the next generation of milking robots.”

Corrie and Donna Smit are applying lessons from previous industry peaks and troughs at a time when many farmers are struggling to maintain profitability.

BALE BUGGY

GILTRAP WAGON

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No baling on lamb shelter

The vagaries of the weather pose challenges for animals, as well as people. Work by Massey University researcher and senior lecturer in sheep production, Dr Rene Corner-Thomas, has come up with a novel way of how farmers can help their stock. Peter Burke reports…

DR CORNER-THOMAS says sheep are highly intelligent when it comes to seeking shelter – be it in winter or in summer.

She says if it gets cold they seek the shelter of trees or other forms of protection and in summer they seek shade.

“Unfortunately, over the last 20 to 30 years the amount planting of trees and shrubs on farm has reduced,” she told Rural News. “A lot of that is due to infrastructure, with things like pivot irrigation, but also there appears to be a general trend of removing shade and shelter from farms.”

She says there is a particular problem at lambing time when newly born lambs are susceptible to cold winds, which is a significant factor in lamb survivability. Corner-Thomas says research has shown that providing some form of shelter can improve lamb survivability by up to 10%.

“So, what we have come up with in the case of lambs is a very ‘hightech’ solution in the form of straw bales. We have a paddock where we have put eight bales in a cross shape and that creates a little micro climate. This is only one bale high, but when you think of the size of a lamb, that

“In the Manawatū where the trials were conducted we also noticed that lambs were often sleeping on top of the straw bales. This, we believe, is because it’s been very wet in the region with puddles in many paddocks – so the lambs were seeking a dry place to sleep.”

Corner-Thomas points out that providing shelter is part of the animal welfare codes for sheep and cattle and all livestock. But she adds that many farmers are still not doing this and her work has been directed at finding ways that are practical, cost effective and improve the welfare of animals.

is quite sufficient to provide the necessary shelter.”

As part of the trial, they have put the bales in one paddock and none in the other, just to see what use the lambs make of their artificial shelter. She says, while they haven’t done a detailed analysis of the data, their own

observations suggest the sheep use the bales in different ways.

Corner-Thomas says in some cases the lambs play on the bales the same as they would if there were tree stumps in the paddock.

“In the Manawatū where the trials were conducted we also noticed that lambs were often sleeping on top of the straw bales. This, we believe, is

because it’s been very wet in the region with puddles in many paddocks – so the lambs were seeking a dry place to sleep.”

Corner-Thomas explains that when they started the study they never anticipated that the lambs would utilise the straw bales in such a way, but says it goes to prove that, given options, sheep can make good choices.

She says during the lambing period the ewes will seek natural shelter, be it trees or stumps of trees to tuck their lambs away and keep them warm and dry. She adds, in some cases, ewes will look for big tufts of grass or reeds –anything to keep their off-spring safe from the cold and wet.

Rene Corner-Thomas has come up with a novel way of how farmers can help their stock.

Ospri to take over M. bovis eradication campaign?

SUDESH KISSUN sudeshk@ruralnews.co.nz

THE CAMPAIGN to eradicate cattle disease

Mycoplasma bovis could soon be handed over to Ospri.

The M. bovis Programme is currently a Government Industry Agreement between Ministry for Primary Industries (MPI), DairyNZ and Beef + Lamb New Zealand. It’s co-funded, governed and operated by these three organisations.

NAIT system provides key information on the location and movement of cattle for both the M. bovis and TBfree programmes.

Andrew says the addition of the M. bovis programme to Ospri also provides the opportunity to realise operational cost efficiencies across programmes and deliver an integrated set of services to farmers.

M. bovis was first found on a farm in south Canterbury in 2017. However, the disease was spreading on farms

The plan to eradicate M. bovis was announced in 2018. It was expected to take 10 years and cost just under $900 million, with the price tag split between the government and industry bodies.

To ensure the programme continues to adapt to the work that remains ahead and make the most of the significant gains made to date, programme partners back handing over the campaign to a specialist agency under a national pest management plan, says Simon Andrew, Director M. bovis Programme.

Andrew told Rural News that public consultation on this is proposed to take place in early 2023.

He says the governance group has nominated Ospri as the management agency as it has extensive expertise and experience in delivering successful disease eradication programmes over the long term, and an established rural network with strong stakeholder relationships.

Ospri manages the TBfree programme (to eradicate bovine tuberculosis) and the National Animal Identification and Tracing (NAIT) programme. The

before that – MPI believes it may have arrived in the country a few years earlier.

The plan to eradicate M. bovis was announced in 2018. It was expected to take 10 years and cost just under $900 million, with the price tag split between the government and industry bodies.

M. bovis is a bacterium found mostly in cattle and occasionally other animals like deer and sheep. It lives in the lungs and respiratory tract, and it’s usually passed on through nose-to-nose or other close contact between cattle.

According to MPI’s latest update, there were six active properties with the disease- all in the South Island.

The programme has completed over 3 million tests and 178,000 cattle have been culled.

Around $233m have been paid out in compensation to farmers. More than 2,800 claims have been paid with 13 claims still pending.

Simon Andrew says that public consultation on a proposal for OSPRI NZ to take over running the M.bovis campaign will take place in early 2023.

A glimpse into the future

Just prior to Christmas, Rural News machinery editor Mark Daniel was a guest of CNH Industrial at its Tech Days held in Phoenix, Arizona. The theme of the event was to look at current and emerging technologies that will play an important part in raising efficiency and reducing operating costs in agriculture, horticulture and viticulture.

DUBBED AS “Breaking New Ground” the event held at the University of Arizona’s Maricopa Agricultural Centre, south of the city, opened many visitors’ eyes to technologies that could only be described as science fiction a decade ago.

As part of its new vision for the future, CNHI suggested that sustainability and ‘clean energy’ would become increasingly important for farmers, growers and contractors. While the automotive industry is striving to meet similar outcomes by focusing on electrification, this global player in the agricultural sector is taking a broader route by looking at some electrification, compressed and liquified

methane gas technology, while also accepting that the internal combustion engine will be with us for some time.

CNHI took the opportunity to introduce guests to the likes of the New Holland T4 electric power utility tractor.

Developed in conjunction with the recently acquired Monarch Tractor Company, it offers a 75hp continuous-duty motor (120hp peak) with a 10 to 80% recharge time of less than one hour. At the same time, the company showed the already familiar New Holland T6 Methane Power Tractor (CNG) and premiered the New Holland T7 Methane Power LNG Prototype, said to deliver 270hp max power and up to 8 hours running time.

As part of the move to increased productivity, precision agriculture will play an important part, using Auto-Guidance and End of Row Turns – alongside vehicle-tovehicle communications and synchronisation.

Add to this, emerging solutions like Connected Remote Displays and Soil Command that automatically adjusts cultivators depending on soil conditions and machine autonomy means that farmers and growers will become increasingly connected.

Looking at seeding in more detail, crops of the future will be treated on a seed by seed precision basis. This will include Advanced Seed Delivery that ensures seeds are accurately

SETTING INDUSTRY STANDARDS

delivered, spaced and covered for uniform germination. Alongside this, Individual Row Unit Hydraulic Pressure will ensure each seed is planted at the optimum depth. Meanwhile, Prescription Variable Seed and Fertiliser Rate Control will address soil and topography differences in individual paddocks.

Looking more

closely at fertiliser and spraying applications, the future will also include Auto Guidance and Automated turns, Row Vision Guidance for hands-free row crop steering up to 20km/h. Vehicle-to-vehicle job synchronisation will ensure minimal overlaps when multiple machines are operating in the same paddock.

In the spraying arena,

the likes of Hawkeye II technology will allow the individual control of up to 109 spray nozzles and boom widths of over 135 feet. This will allow improved spray coverage, the avoidance of under or over spraying, greater productivity and reduced input costs. Automatic Boom Levelling will ensure accurate application alongside reduced operator fatigue,

while Direct Product Injection via the Sidekick Pro system will offer the elimination of pre-mixing, no unused product and much greater flexibility when moving between different crops.

With so much to offer, Rural News will take a more in-depth look of these technologies over coming issues.

Crops of the future will be treated on a seed-by-seed precision basis using cutting edge technology.

Is it time to give Fieldays a reboot or the boot?

AS 2022 is consigned to the history books and we trudge into 2023, it seems like a good time to look back at the decision by the NZ National Fieldays Society to move its annual event from June to December last year.

Brought about by Covid settings that were still at orange in March, the decision to postpone the event and move it to the end of the year was, said Fieldays chief executive Peter Nation, in response to regular exhibitors who were begging for an event in 2022.

However, many other long-time supporters uttered the immortal phrase, “Tell him he’s dreaming”. Early December is one of the busiest times in the farming calendar –and several big-name companies decided the delayed event wasn’t for them.

Not to be thwarted, Fieldays pushed the mantra “The same, but different”, suggesting that it was the same event, just with sandals and lashings of sun block instead of gumboots and umbrellas.

As we got nearer the event, we were told that exhibitor numbers were down about 10%. Yet when Fieldays opened to reveal many vacant areas,

huddles of Portaloos on what previous sites and strategically-placed areas used as parking for emergency and event vehicles.

We also found that maybe scanning technology is not always as good as it’s cracked up to be. Having learnt that the 2021 event scanned in exactly 132,776 visitors, the 2022 event recorded a much less precise, and highly optimistic, “about 75,000” attendees.

Without doubt, the event had a very different feel. There were far fewer people, maybe on the first day because of the torrential rain and wind –now where did I put my sun block? As one longterm machinery veteran observed, “The place feels empty. You could shoot a gun down this aisle and not hit anyone!”

Fieldays keeps telling us that it’s responsible for an economic impact of $500 million-plus, but some are now asking, is the event really that important to the rural economy?

Since the Covid crisis kicked off in March 2020, ag machinery – as an example – has seen numbers rise by around 25%, with record sales leading to long delivery lead times. Has Fieldays played a part in this? Not really, given the event

was cancelled in 2020 and, after a 2021 return,

had an 18-month hiatus before the 2022 event in December.

As one industry commentator noted, “Elsewhere around the world, Fieldays-type events have become history, with organisers deciding to focus on more specialised events aimed at specific areas of the market”. That same observer also said “clever

marketing people are starting to realise that spending a huge chunk of their annual marketing budget on just four days of exposure is crazy, given there are another 361 days in the year”.

So where do we go in 2023? Fieldays has already told potential exhibitors that despite there being motor vehicle and heavy machinery

precincts, there will be no dedicated ag machinery areas – rather those exhibitors will be dropped into the main body of the event.

In fact, Fieldays has already announced that what made up a large part of the farm machinery area adjoining the neighbouring golf course has now been given over to the ‘Rural Living’ area.

One can only wonder if those companies who chose to stay away in 2022 made the right decision. Will they go on to realise that there is life without Fieldays? Will they stay away again and take more companies with them, as they too realise that the Fieldays business is mainly focused on charting visitor numbers?

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For more information call us on 06 370 0390 www.tulloch.nz Dealers located nationwide

CRUSHA’S COMMENT

Mark Daniel

20 years and 20,000 sales

MARK DANIEL markd@ruralnews.co.nz

WITH MORE than 20,000 machines sold since its launch in 2002, New Holland is celebrating the 20th anniversary of its CX range of conventional combine harvesters.

The machine has defined super conventional combine harvesting. Since its launch, the CX range has collected 33 prestigious awards during its long career – a fitting testament to its success.

“When we launched the CX, back in 2002, it made a huge impression on first sight with its curvy lines breaking tradition with the boxy shape of combine harvesters of the time,” says Lars Sorensen, New Holland global product combine leader.

“It was a fitting start

for a combine range that would go on to introduce countless groundbreaking innovations and become the most awarded straw walker combine in the world.”

The CX combine flagship range was born from a strong legacy. It includes features such as the brand’s rotary separator, which was introduced in 1972,

the integrated armrest launched in 1993 and the 750mm diameter threshing drum –launched in 2001.

Picking up the Machine of the Year title

at Agritechnica and SIMA Innovation Awards along the way, the CX was also designed for precision farming and – in the last 10 years alone – has increased productivity by 17%.

In 2020, CX introduced the UltraFlow staggered drum – the first new drum concept since the launch of self-propelled combines in 1952. This features a unique design, which uses 16% less total threshing power, reducing fuel consumption and increasing capacity by up to 15%.

Today the CX combine remains on point, offering customers Opti-Speed auto-adaptive variable speed straw-walkers, SmartTrax, Opti-Fan, Opti-Clean and OptiSpread technologies.

In addition, high levels of comfort and ergonomics are delivered by the Harvest Suite Ultra Cab, with power and fuel efficiency provided by the HI-eSCR ECOBLUE 2.0 FPT engine.

Up front, CX is now available with the brandnew FD2 Flex Draper. This is the first offering from New Holland’s

partnership with MacDon Industries, which features a unique float response and more header flex.

The header utilises the MacDon Active Float System which ensures the float response navigates over ground fluctuations with up to 70% more flex. The MacDon ClearCut HighSpeed Cutting System also provides more torque and durability to power through the most challenging cutting conditions.

The Active Crop Flow, featured as part of the unit, provides headfirst delivery of crops along the side drapers toward the FeedMax Crop Feeding System to ensure efficient feeding and improved threshing performance.

Since its launch, the CX combine harvester range has collected 33 prestigious awards during its 20-year long career.

“When we launched the CX, back in 2002, it made a huge impression on first sight with its curvy lines breaking tradition with the boxy shape of combine harvesters of the time.”