Rural News 18 July2023

ALL FARMERS, FOR ALL FARMERS

Shareholder uproar!

to retain the current number of area managers.

FONTERRA FARMERS are up in arms about plans to review its Farm Source retail business that could reduce faceto-face interaction with shareholders.

On the New Zealand Dairy Farmers Facebook page, which has over 30,000 members, farmers have been venting their frustration on possible reductions of face-to-face support.

It claims Fonterra intends to reduce the number of area managers from 45 to 20. Farmers are calling for Fonterra

A Golden Bay farmer says their Fonterra local managers have “both been amazing, quick to respond and effective.

“The next level up isn’t so good”.

“I don’t think reducing the number of area managers is a good decision in the current time given how much uncertainty we are all dealing with,” complained another farmer.

Another Waikato farmer says she spoke recently with a Fonterra director.

“There have been more calls to him on this than any other issue he’s had while on the board,” she says.

Federated Farmers dairy section chair Richard McIntyre is aware of farmer concerns but points out that this is an issue for the Fonterra Cooperative Council to deal with.

“I spoke to council chairman (John Stevenson) a couple of weeks ago and told him it was his issue to deal with,” McIntyre told Rural News

Stevenson says that questions on specific details of the proposal should be directed towards Fonterra manage-

ment. He says the council is not consulted on proposals between Fonterra and its staff.

“We are not part of the decisionmaking process. Our role is to represent Fonterra farmers,” he says.

But Stevenson confirmed that councillors have received a considerable amount of feedback from Fonterra farmers recently.

“Council is actively communicating that farmer feedback and sentiment to the board.”

Stevenson says over the last 18 months it has regularly provided feed-

back to the board and to management on the importance and expectation of face-to-face support for Fonterra farmers.

He says support for Fonterra farmers is critical, especially during the current period of significant change. “Council is awaiting the outcome of this process before it can comment publicly in more detail.”

Meanwhile, Fonterra has refused to comment more on the issue with a spokesperson telling Rural News the proposed changes are subject to consultation with their team.

Trade Minister Damien O’Connor signing the Free Trade Agreement between the EU and New Zealand earlier this month, alongside Valdis Dombrovskis (centre), executive vice-president of the European Commission and Marcos Alonso Alonso, Spanish permanent representative to the EU. The deal is yet to be ratified by the NZ Parliament and the parliaments of the 27 members of the EU. The main beneficiaries of the EU FTA will be the NZ kiwifruit, onions, honey, wine and seafood sectors, while meat and dairy have only gained minimal benefits. – See full story page 5.

PHOTO CREDIT: THE EUROPEAN COMMISSION.

SUDESH KISSUN sudeshk@ruralnews.co.nz

Embattled ex-chair gone!

SUDESH KISSUN sudeshk@ruralnews.co.nz

FORMER PGG Wrightson (PGW)

chair Lee Joo Hai, who is fighting charges filed under Singapore securities legislation, is leaving the rural service company’s board.

Hai, who stepped down as chair earlier this month, won’t be seeking reelection at PGW’s annual shareholders meeting later this year.

A PGW filing with the New Zealand Stock Exchange last week said Hai was resigning “in order to eliminate the ongoing distraction caused due to media and market attention regarding the securities regulation matters that he is defending in Singapore”.

While Hai said he did not consider that those matters affected his capacity to remain a PGW director, he nevertheless felt that it was in the best interests of the company that he step down.

Hai has also stepped down from the PGW audit committee effective immediately; acting chair, U Kean Seng will join the audit committee.

On June 30, PGW announced that Hai had been charged in Singapore under certain Singaporean securities regulation in respect to potential lapses in relevant disclosures related to a Singaporean listed company, Hyflux Limited. Hai is a director of Hyflux.

The PGW board decided the related investigations did not compromise the performance of Hai’s duties in relation to PGW and that he was to continue as board chair.

However, a week later the company announced that Hai was step-

ping aside as chair but will remain as a board member. It had determined that it would be “in the best interests of PGW for Seng to assume the role of acting chair while the investigations and charges relating to Hai remain ongoing”.

According to PGW’s website, Hai has been a director of the company since 2017 and chair since July last year. Hai was appointed an independent director of Agria Corporation in 2018. Agria, a global agricultural company, owns 44% of PGW.

Confidence still in the doldrums

FARMER

CONFIDENCE remains deep in negative territory, according to the latest Rabobank Rural Confidence survey.

The latest survey — completed late June — found that while farmer confidence in the broader agricultural economy was up marginally on the previous quarter (March 2023), there are still a wide-ranging mix of concerns in the sector. The net confidence in this survey rose to -57% from -58% previously.

Farmers were also more positive about the prospects for their own farm business performance, with the net confidence reading for this measure rising to -35% from -45% previously.

Rabobank New Zealand chief executive Todd Charteris said primary producers’ confidence in the broader agri economy, as well as their own farm business performance, had now risen for two consecutive quarters after both measures fell to his-

toric lows in the final quarter of 2022.

“While it is pleasing to see confidence continuing to climb – albeit incrementally – it’s important to note that it’s coming from an extremely low base and that farmer sentiment across all key agricultural sectors remains incredibly fragile.”

The survey found the two most pressing issues were rising input costs and government policy.

Despite the small lift in Charteris says there is now a higher per-

centage of farmers with significant concerns about the viability of their operations.

“The recent margin pressure on farmers has resulted in more now assessing their own operation as unviable, with this rising to eight per cent from five per cent previously.”

This was most pronounced for sheep and beef farmers, with 16% cent of those in the sector now holding concerns about their operation’s viability.

Former PGG Wrightson chair Lee Joo Hai is leaving the rural service company’s board.

YFC champ hopes win will inspire more women into farming

NEW ZEALAND’S first female FMG Young Farmer of the Year recipient Emma Poole hopes to be an inspiration for other women in the sector.

The 28-year-old Pirongia dairy farmer told Rural News that it’s an amazing feeling to have come away with the win after a gruelling three days of finals competition in Timaru earlier this month.

“It was a challenging contest and the other competitors kept me on my toes throughout the whole process, so I am feeling very fortunate to have pulled it off,” says Poole.

“As for being the first woman, that is a special feeling; hopefully there will be many more to come and it can inspire more women to enter this great industry.

“We’ve finally knocked the grass ceiling off the roof. There’s a long chain of women that have worked hard to display the important role we play in agriculture.

“All those women have given me the confidence to stand up and give it a go. I’m just a product of what they’ve all achieved.”

Alongside the coveted title, iconic trophy and famous Cloak of Knowledge, Poole received

$90,000 in prizes. The seven regional finalists had their farming skills and general knowledge put to the test with tasks that included repairing farm machinery, creating a hydroponic system and an intense race-style challenge with multiple tasks that saw points awarded for both skill and speed.

Poole believes all the finalists “had an absolute blast”.

“The contest committee went over and above to put on a spectacular show and there was enthusiasm and positivity bubbling out of every corner of the show grounds,” she says.

“It was so energizing and inspiring to be a part of. You also learn a lot about yourself during the competition process –how you cope under pressure, how you can adapt and change to challenges

and how you can interact with others.”

Poole isn’t the first winner in the family: her brother and mentor Tim Dangen won the title last year. Poole’s husband Chris won the Waikato/ Bay of Plenty Young Farmer title last year. She was also a finalist in 2019. Her message to young people eying a career in agriculture is to always consider options.

“There is ample

opportunity for any person in this sector to display talent or special skills,” Poole told Rural News.

“The rural sector needs a variety of people with a variety of different skills so there is really something for everyone here. What’s more the world will always have to eat, so why not join a sector that will provide solutions and feed people.”

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New Zealand Young Farmers chief executive Lynda Coppersmith says Poole impressed judges with her resilience, broad stroke of skills and knowledge and sheer determination.

“I’m thrilled for her –it’s the most prestigious farming award in the country and it’s incredible to see it go to someone who will be such a strong ambassador for not only the contest but

for the entire food and fibre sector as a whole.” Coppersmith says the talent demonstrated by contestants across the three-day final is proof that the future of the sector is in safe hands.

Peter O’Connor, representing Aorangi, was the runner-up and Otago Southland’s Hugh Jackson finished up in third place.

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SUDESH KISSUN

Emma Poole competing in the head to head challenge on the practical day of the competition.

EU trade deal signed

PETER BURKE

PLANNING IS already underway to make exporters aware of the opportunities of the recently signed free trade agreement between NZ and the EU.

The deal was signed about a week ago in Brussels by the Minister for Trade and Export Growth Damien O’Connor and the EU Executive Vice President and Trade Commissioner Valdis Dombrovskis, witnessed by Prime Minister Chris Hipkins and EU President Ursula von der Leyen.

The EU is NZ’s fourth largest trading partner. It is anticipated that the NZ-EU FTA will become operative in the first half of 2024, once both parties complete the final required legal steps –including approval from the European and NZ Parliaments. However, while this is happening, both NZ and the EU are about to embark on awareness programmes to alert exporters from both jurisdictions about the opportunities the FTA offers.

The European Union’s Ambassador to NZ, Nina Obermaier, says the aim is to ensure that exporters have time to get their systems in place and take advantage of the deal from day one. This actually started some time ago. For example, the EU ran a seminar on this topic at Fieldays which attracted considerable interest – and more is planned.

“The EU is producing a special handbook which will be available to exporters,” Obermaier told Rural News

“This is similar to what we have done with the FTAs that we have negotiated with Canada and Singapore. I understand that MFAT will be running a roadshow to again create awareness of the benefits of the FTA. So, roughly, in a years’ time when all the new tariffs liberalisation kicks in, more than 91% of all NZ goods that enter the EU will be able to enter that market tariff free and people need to prepare

Chris Hipkins and EU President Ursula von der Leyen shake hands after the signing of the NZ/EU free trade agreement.

and that’s why they have signed the deal.

European Commission president Ursula von der Leyen has described the FTA as a trail blazer. She

says the FTA brings major opportunities for companies, farmers and consumers, on both sides.

contains the most stateof-the-art sustainability commitments of any peterb@ruralnews.co.nz

THE MAIN beneficiaries of the EU FTA will be kiwifruit, onions, honey, wine and seafood.

The horticultural sector will have $46 million in tariffs slashed from day one, while honey exporters will benefit from the phased removal of the 17% over three years, and for mānuka honey rights from day one.

NZ’s two main exports – dairy and meat – have not gained the access they were hoping for. However, butter gets 36,000 tonnes of quota – phased in over seven years. While small in NZ terms, it equates to around 60% of the EU’s total annual butter imports. Cheese will have improved access, growing from just over 6000 tonnes to 31,000 tonnes over seven years.

Beef access again is small, but perhaps understandable given that the EU is a major beef producer. The quota will progressively go to 10,000 tonnes over seven years with a reduced tariff quota.

NZ sheep meat exporters will have access to an additional duty-free quota to the EU growing to 38,000 tonnes over 6 years. This is on top of existing duty-free WTO quota access to the EU of 125,769 tonnes

EU free trade agreement ever, including on climate and labour rights.

for that,” she says. There have been some grumblings in NZ about the FTA allowing the EU to retain geographical indications (GIs) –brands of products that are named after a specific region, like Feta cheese. But Obermaier says this is something that the EU has protected in all the other FTAs it’s negotiated. She claims this clause actually provides some excellent opportunities for NZ to add to the list of geographical indications it already has – such as Marlborough sauvignon blanc.

“For example, Bluff oysters, Cardrona lamb, Chatham Island blue cod and mussels and Māori bread,” she says.

Obermaier says the deal is commercially meaningful and dairy and meat were always going to be difficult to get a deal that suited primary producers in both entities. She says NZ farmers would have liked more access and Euro-

pean farmers would have wanted them to have less.

“In the end, I think we struck a sweet spot that should see the deal approved by the European parliament,” she says.

Trade Minister Damien O’Connor says NZ did its best to negotiate around the GI issue and that they managed to get a transition clause put into the FTA, which will allow NZ companies to phase out GIs that come within the scope of the agreement. But like Obermaier, he’s confident that NZ can quickly develop its own GIs and brands.

In Brussels there was understandable hype about the signing. PM

Chris Hipkins described it as a ground-breaking deal that will save $150 million annually in tariffs.

O’Connor labelled the deal as hugely significant, opening up a market of 450 million discerning consumers. He says the EU knows who we are and like our values

The European Union’s Ambassador to NZ Nina Obermaier.

Politicians pitch for rural vote at Feds conference

NO FEDERATED Farmers conference would be complete without the injection of a little politics.

This year, the theme of politics and trade was picked up by the leaders of the Labour and National party, who were the first two speakers at the two-day conference.

If you were expecting a vigorous or rowdy debate you would have been disappointed; the perceived battle between Hipkins and Luxon was a bit of a fizzer.

Only Labour and National leaders were

invited to speak. The potential coalition partners and the gaggle of political nobodies were left off the programme. To have ACT there might have been something of an embarrassment anyway given former president Andrew Hog-

gard’s defection to ACT.

Hipkins noted that many rural people were hurting for a variety of reasons, including adverse weather events.

He said he recognises their frustrations and acknowledged that his government had not

always got things right. However, Hipkins said NZ still had to move fast to respond to signals from our export markets that sustainability and climate change are profoundly changing consumer behaviour.

He talked mainly trade

and the success of his recent China trade mission, and the importance of trade agreements to NZ. He promised to make trade a high priority and said he’d like to lead more trade missions.

Meanwhile, Luxon’s

pitch was one that he’s given at just about every farmer meeting he’s attended in recent times and there was no sign of any new policy initiatives in the wind. Maybe a missed opportunity in not having something big

to announce to a largely sympathetic audience. However, his message about cutting red tape, dropping the ute tax and stopping Wellington running rural NZ certainly resonated with farmers.

O’CONNOR DEFENDS RED TAPE

DON’T GET hoodwinked by political ‘wannabees’.

That was the message from Agriculture Minister Damien O’Connor, speaking at the recent Federated Farmers annual conference. He warned farmers to beware what other political parties and ginger groups have been saying on environmental regulations.

O’Connor claimed it would be irresponsible for any leader – be they farmer or political – to give confused signals or not help farmers to get the right information in a political debate.

He added that some farmers were confused about the messages they were getting and noted that understanding the ‘why’ was very important. O’Connor told the conference that if he was faced with a situation where he didn’t understand the reason for change, he’d be reluctant to change.

He conceded that farmers are stressed, having to deal with climate change, geopolitical disruption, rising on-farm costs and a host of other challenges.

“Customer and consumer expectations are changing,” O’Connor claimed. “All our major customers – such as Nestle, McDonalds, Tesco and Waitrose – have corporate targets of reducing their global emissions and they are looking to their suppliers, such as us, to do our bit.”

O’Connor says regulations are backstops and the vast majority of people are ahead of the game and doing the right thing.

Turning to trade, O’Connor says successful trade agreements are not just about trade. He says NZ brings to trade not just value but also values, and this approach has been behind the success of FTAs with China, the UK and soon the EU.

LANGFORD GETS TOP JOB

AT THE end of the conference, Feds held their AGM and Wayne Langford, the 40-year-old dairy farmer from Golden Bay, was elected as the organisation’s new national president.

He says it is a huge honour to be elected to lead Feds, but adds he is already feeling the weight of responsibility that comes with it.

“Federated Farmers are the largest rural advocacy organisation in the country

and farmers are looking to us for strong leadership as they try to navigate their way through an increasingly complex world,” Langford says.

South-Canterbury mixed arable farmer Colin Hurst was elected as vice-president and North Canterbury arable Farmer David Birkett joins the board as arable chair. Sandra Faulkner, Mark Hooper, Toby Williams and Richard McIntyre were all re-elected to the board.

PETER BURKE peterb@ruralnews.co.nz

Federated Farmer’s new national president Wayne Langford (right) with new vice president Colin Hurst.

China on the bounce back?

THERE HAS been much commentary about China with concerns about how Covid lockdowns there have dented consumer confidence, driving down consumer spending.

But a recent report by the Ministry for Primary Industries (MPI) predicts that the Chinese market will recover later this year – a view backed up by major exporters. It would also seem that the recent NZ trade mission to China has breathed new optimism into the market.

Speaking at the recent Federated Farmers annual conference, the Minister Counsellor Trade for the Chinese Embassy in NZ, Chen Zhiyang, spoke positively about the recent trade mission saying the outcomes were good news for NZ farmers and Chinese consumers. He went on to say that there is potential for expansion and cooperation in the area of primary products.

“NZ products, especially pri-

mary products, are very popular in the China market because they have the reputation of being 100% pure and of very high quality,” he says.

Zhiyang says trade had brought tangible benefits between the two

countries.

Meanwhile, PM Chris Hipkins discussed his recent trade mission to China and was clearly ecstatic about the way the trip had gone. He said relations between the two countries were excellent and

WE HAVE A WINNER!

– most importantly – the businessto-business relationship is thriving and has the potential to grow even more.

Hipkins says there are 1.4 billion consumers in China and one of their government’s objectives is to double the number of middle-income earners over the next decade meaning more consumers looking for the quality produce and products NZ has to offer.

“There is nothing quite like going into a supermarket somewhere in the world, such as China, and seeing so many NZ products on display – whether it is kiwifruit or beef of lamb or some of the manufactured products. It was a bit of a buzz for me as the Prime Minister.”

Hipkins says one take-home message for him was the importance of NZ’s clean, green, sustainable reputation when it comes to growing our export market share. He says our international reputation is critical to continuing to expand our export opportunities.

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tudes.

However, there can be only one lucky winner –who is Richard Robinson, from Canterbury. Richard now has the choice between a MeloYelo Ascent or a MeloYelo Traverse, each worth $4,595rrp. MeloYelo says it was delighted with the number of responses to the surveys, from farmers regarding an e-bike for on-farm use.

“MeloYelo now has a clear picture regarding both the specifications and the accessories that farmers are looking for,” says MeloYelo CEO Rob McEwen. “We are now proceeding with the development of prototypes for real-world testing.”

The Minister Counsellor Trade for the Chinese Embassy in NZ Chen Zhiyang spoke at the recent Fed Farmers annual conference.

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Ministry bagged for carpet decision

Williams says.

THE MINISTRY of Education (MOE) is copping flak over its decision to carpet 800 small and remote rural schools with synthetic tiles rather than wool.

A wide range of disparate groups – including the Green Party, the Taxpayers Union, Groundswell, The Campaign for Wool NZ, Federated Farmers and even teachers themselves – have hit out at the ministry for going synthetic.

The MOE claims the synthetic product it is purchasing from an American company is cheaper and can endure heavy use and wear and dirt. It also claims it meets requirements for recycling and carbon footprint goals.

This last statement is

widely disputed by critics as are MOE’s claims that synthetic products out performs wool.

Federated Farmers

Meat & Wool chair Toby Williams says the MOE’s decision to carpet rural schools in foreign made synthetic carpets instead

of NZ grown wool is a slap in the face for Kiwi farmers. He says this decision completely flies in the face of all the Government’s rhetoric about improving sustainability, protecting the planet, and phasing out singleuse and hard-to-recycle

plastics.

“Just the other week, the Government were patting themselves on the back for banning plastic bags, cutlery, straws, and fruit stickers – then they turn around and make a decision like this? It just doesn’t add up,”

“To carpet the average Kiwi home in synthetic carpet is the equivalent of having 22,000 plastic bags on the floor. What do they think happens with all those nylon carpets when people are done with them?

“They go straight to landfill. The Ministry for Education say it chose to go with synthetic carpets because they presented better ‘value’. I’d question who for – because it’s certainly not the environment or our rural communities.”

Williams says it’s time for the Government to start backing Kiwi sheep farmers.

“They need to stop carpeting our country in pine trees and start carpeting our classrooms in sustainable products.”

MINISTER MAKES RIGHT NOISES

AGRICULTURE MINISTER Damien O’Connor has weighed in on the bizarre decision by the Ministry of Education (MOE).

O’Connor told Rural News that he’s deeply disappointed that the MOE couldn’t see its way through to incorporate more sustainable products into the education system. He says the MOE has been advocating for sustainability through the curriculum and it is essential that they incorporate that into their procurement practices.

O’Connor says while he’s not familiar with that department’s procurement process it is important that departments make their decisions free from any political interference.

“But I will be asking for details of that. There are often issues around the cost when it comes to wool carpet verses the alternatives,” he says. “But the quantum of the contract would surely have allowed for some economic cost efficiencies for wool as happens with the synthetic alternatives.”

O’Connor adds that while obviously the goal must be seen to get the best value for taxpayers’ dollars, the country is on a journey to sustainability and believes that means investing more money for a better long term outcome and wool carpets come into this equation.

The MOE’s decision to carpet rural schools in foreign made synthetic carpets instead of NZ grown wool has been described as a slap in the face for Kiwi farmers.

A successful year for farm educational programme

EDUCATIONAL PRO -

GRAMME Farmer Time has announced the successful completion of its first year, with positive feedback from the 1017 student participants during 2022.

Farmer Time had its origins in the UK back in 2016, subsequently expanding internationally.

Beef + Lamb NZ became aware of it just prior to the Covid lockdowns and proceeded to establish a New Zealand branch with the collaboration of Farmer Time founder Tom Martin.

The programme, which aims to connect Year 1-8 NZ school students and their teachers with farmers and growers across the country, started with a small pilot group of eight farmer-teacher pairs and quickly expanded to 47 pairings by year’s end.

Emma McElrea, a Year 2 and 3 teacher from Northland School in Wellington, says her involvement with the programme had brought to life New Zealand curriculum learning in a unique, real world way.

“Our farmer Mairi Whittle has been incredible to work with, we’re learning so much and our whole class has formed a real bond with Mairi and her boys.”

FRESHWATER FARM PLANS EXPLAINED with Groundswells Environmental Spokesperson Jamie McFadden

Southland and Waikato are the first regions to have this new legisla�on come in� from � August. Also an update on the SNA (significant natural areas) and Indigenous Biodiversity policies.

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LUMSDEN - 1pm Wednesday 26 July at the Lumsden Hotel

OTAUTAU - 7pm Wednesday 26 July at the Otautau Connect Centre

WAIKATO - dates to come soon

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Whittle – a sheep and beef farmer from Taihape – echoed the sentiment.

“It’s been an honour to be a part of Farmer Time in conjunction with Emma. It’s heartening to share parts of farming life with students who might not otherwise get this chance.”

Farmer Time national coordinator Marie Burke says it had been amazing to be a part of this programme from the inception and see it grow so much.

“Our hard work to match teachers with farmers and growers has paid off and we can’t wait

to see where it can go from here.”

She says feedback received from participants has been overwhelmingly positive, with every class and teacher surveyed rating the programme as enjoyable and valuable, with even the lowest rated question

ENSURE THEY REACH THEIR PEAK POTENTIAL

(interest in continued participation) having a 90% approval rating.

Teachers stated that the programme significantly developed students’ awareness of the work carried out by food and fibre producers as well as shedding light on the numerous career

opportunities available within the primary industries.

Looking ahead, Burke says Farmer Time is set to continue building on its successful inaugural year and expand its reach to even more schools and farmers.

www.farmertime.co.nz

Taihape sheep and beef farmer Mairi Whittle has been a key contributor to the Farmer Time programme.

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Cyclone-affected farmers finally get some clarity

BEEF+LAMB NZ believes farmers have got some clarity from the Government’s recently announced cyclone relief package.

Justine Kidd, B+LNZ’s general manager extension, says farmers now know what support is and isn’t in the pipeline for them. She says the package is about debt support, which will see farmers coming to arrangements with their banks and may involve a reduced interest rate.

The Government package has two major components. The first one is aimed at encour-

aging banks to become more actively involved in helping farmers and growers to get their businesses back on track. To do this, the Government will take 80% of the risk of a loan to a farmer or grower away from the banks, which it claims will allow the banks to reduce interest rates and offer more flexible terms. There is a limit of $10m and certain criteria apply, one of which is that the borrower meets the lender’s credit criteria – meaning they are lendable and also viable long term.

In the second part of the package, the Government will lend up to $4 million to a grower or

farmer if they cannot get a loan from a bank. However, to qualify for this, the individual must be able to prove that they can get their business back on track and can then get a bank loan. In essence, this is a helping hand to those who may already have a mortgage with a bank and may be deemed a credit risk, but with help from the Government will be a viable business in the future.

Kidd says B+LNZ estimates that the direct onfarm costs of Cyclones Hale and Gabrielle and the Auckland Anniversary weather event will be between $367 million and $422 million. She says it also estimates

DESIGN, BUILD, INSTALL.

WHY NZ FARMERS HAVE MADE THE MOVE FROM TIMBER TO STEEL SHEEPYARDS.

that 1250 sheep and beef farmers have been moderately-to-significantly affected by the weather events and 990 of these are in the Tairāwhiti and Hawke’s Bay regions, with the others spread around

Northland, South Auckland, eastern Waikato and the Bay of Plenty.

“It is a challenge and our farmers are feeling this,” Kidd told Rural News

“They are also giving us feedback that they will work together and get stuck in and grunt it out to rebuild their farms over the next two to three years.”

While farmers in

Tairāwhiti and other regions are saying they will get back on their feet, this positive narrative masks the reality of what life is actually like on a daily basis on the farm. Access around farms remains a problem and in some cases farmers have repaired their farm tracks three times only to see these washed away with the next rains. This damage is largely uninsurable and has become a capital cost. Hillsides are described as being like melting ice-cream, making it hard to rebuild tracks to get stock into yards and off farm to sales or the works.

An MPI-run programme called ‘operation muster’ helped farmers to get stock back to their yards. However, the fragile state of roading infrastructure can make getting stock to processing plants prob-

lematic. The other problem appears to have been a lack of coordination of the response and recovery and there is talk of confusion about where to go for resources and help. It’s been described to Rural News as a ‘messy space’.

Another issue that is somewhat unique to the Tairāwhiti region is that there is a significant number of farms owned by Māori trusts and incorporations. Kidd says in many ways Māori have been disproportionately affected by Cyclone Gabrielle. The problem for many of these farms is they have multiple owners and cannot sell their land or use it as security for a bank loan.

She says B+LNZ and MPI are working on a formula to see that these farms have access to financial help that meets their unique situation.

Steel sheepyard systems are increasingly popular due to rising timber prices, making them more affordable. Steel, once seen as a luxury, is now nearly as cost-effective as traditional timber. It’s durability and high return on investment make it the obvious choice.

The cattle industry in New Zealand made a similar shift to steel 15 years ago.

Kiwi sheep farmers are known for their innovation and efficiency, its time for the industry standard to lift and match their level of excellence.

POST RECYCLING

A MAJOR cost in getting farms back in operation is re-fencing, given the cost and availability of fence posts.

Coming to the rescue is a Marlborough company called ‘RePost’ which specialises in recycling posts.

It’s the brainchild of Greg Coppell who runs a sheep and beef farm in Marlborough. For the past three years he’s set up a company that recycles posts that get snapped off at the ground in local vineyards.

Rather than just throwing these away, Coppell removes any nails or fittings from

the posts and turns them into perfectly good fence posts, which sell for about two thirds less than new posts.

He says he’s had a call from the Hawke’s Bay Regional Council to come to that district and recycle the posts from wrecked vineyards and orchards.

“Our system is mobile and so we may do this on site at the orchard, but the council has offered us some land where we can operate from,” he says.

The initial work will be done in Hawke’s Bay, but Coppell says they may also operate in the Gisborne district as well.

PETER BURKE peterb@ruralnews.co.nz

B+LNZ’s Justine Kidd says farmers now know what support is and isn’t available to them.

Getting the balance right

A NEW white paper by agricultural banking specialist Rabobank says a holistic approach targeting improved emissions efficiency and supporting increased food production is key to balancing New Zealand’s competing environmental, economic and social priorities.

Launched earlier this month by Rabobank NZ chief executive Todd Charteris at the Primary Industries New Zealand Summit in Wellington, the paper says New Zealand has an important ongoing role to play in combating climate change.

“All around the world damage to infrastructure and disrupted ecosystems impact the livelihoods and well-being of the global population,” Charteris explained. “A marginal undersupply of food can result in significant price increases and an upset in this system’s balance, often affecting the poorest of the world’s population first and the most.”

He adds the Paris Accord states emissions reduction efforts should be made in a manner that does not threaten food production; sustainability policies cannot be pursued at the expense of society and the economy.

While NZ farmers feed seven international people for every one Kiwi, Charteris says NZ policy seems “single-mindedly focused on measuring success by the reduction of absolute levels of emissions”. He believes this overlooks not only New Zealand’s ability to help sustain the world, while we all pursue strategies to mitigate climate change, but also the country’s “unique ability and potential for innovation to pursue excellence in emission efficiency per output unit”.

Charteris adds that unintended consequences of the Emissions Trading Scheme are already being felt by the communities that feed and clothe New

Zealand and the world, such as loss of rural jobs, communities and impacts on rural business confidence and mental health.

“We’re seeing production being driven offshore to higheremitting farming systems resulting in downward pressure on our economy and society.

“We are currently pulling in different directions and punching at whatever policy sounds the best –there is no harmony,” he explained.

“A better approach would be considering policy more holistically, finding a natural harmony in our decisions across industry and the government, nationally or globally.”

With food security and production as global challenges, Charteris says future emissions policy must look beyond borders. He adds New Zealand’s “unique ability and potential” for innovation in emission efficiency has already seen Kiwi farmers step up to the challenge.

“Globally, we’ll need to supply 50% more food to meet population growth demands. To meet the increased production needs will require 4-5 times higher carbon efficiency.”

The report identifies 10 key building blocks that will help achieve emissions reductions alongside food security and economic prosperity.

Some of these building blocks are: support for farmers from public and private partners, pathways for supporting emissions efficiency transitions and trust from consumers.

“They won’t see any difference in the appearance of their products and so will need to trust the emission reduction practices. Clear communication will be key,” said Charteris.

In addition, he says change must be incentivised, not forced.

“Farmers are agile businesspeople and positive economic incentives are the most effective way

of encouraging a largescale transition. Fostering an environment that appreciates research, development and innovation will allow them to

take advantage of inevitable changes.”

Rabobank NZ chief executive Todd Charteris says a holistic approach is needed to balance NZ’s competing environmental, economic and social priorities.

Difficult market dynamics

Dairy DAIRY COMMODITY

prices for fats and proteins diverged over June. Powder prices are sitting below five year averages, while butter and cheese prices are bouncing just above their averages at 6% and 2%, respectively.

Despite this, prices for all commodities are well below the highs achieved at the peak of this cycle, between 20% and 40%,

with WMP prices leading the tumble lower.

So far, lower export volumes to China remain a theme for 2023. Shipments for the year to May were 7% lower compared to last year.

However, exports for May 2023 more than doubled on last year, proving that China hasn’t been completely absent from the market. We anticipate weaker exports to China

through the coming months.

Beef

THE BEEF schedule ended June on a weaker note, despite less supply across the country.

The North Island bull price averaged NZ$ 5.92/ kg cwt in June, up 9.0% compared to the five year average but down 1.5%

The total number of cattle processed season

to May in the North Island was broadly flat with the same period last year, while the South Island was 9.3% ahead of last year.

At 61,117 tonnes, total beef export volumes for May were the largest

since March 2015. Shipments jumped 20 .2% YOY, with China taking around 40% of the total amount of beef exported. RaboResearch anticipates beef schedules are likely to broadly hold near existing values over

IT’S TIME TO TALK ABOUT SOIL STRUCTURE

New Zealand farmers have long been managing traditional inputs of macro nutrients along with regularly liming to maintain soil fertility levels. What Golden Bay Dolomite (GBD) know is that all this hard work and expense is irrelevant if the foundation is missing - the right soil structure.

Universal plant growth

All pasture and crop species have one requirement in common they will all perform when grown in soil with the ideal physical structure. GBD are advocates of the compelling work of soil scientist Dr William Albrecht whose extensive research working with farmers, over 50 years across multiple countries determined a universal ideal soil composition. An approach to soils that performs – for every soil type, all locations, and any management system.

Balance

calcium and magnesium

Ideal soil structure is a result of the percentages of calcium and magnesium in the soil. The percentage of calcium needs to be 60-70% and magnesium at 10-20% to create the perfect balance between the opposing effects of both elements on soil aggregates.

The benefits of good soil structure

Biology

Home for soil biology

Nutrients

Assists nutrient cycling

Roots

Enhances root growth

The composition of GBD with calcium carbonate (59%) and magnesium carbonate (39%) supports the formational good soil structure creating a soil environment where soil biology thrives with adequate water and oxygen. Healthy soil biology keeps nutrients cycling like the critical functions of nitrogen fixation, which in turn increases the availability of core nutrients for growth. The balance of calcium and magnesium results in soil aggregation that allows good root growth laterally in the topsoil and down the soil profile for the maximum uptake of nutrients, water, and oxygen for growth.

A healthy farming system

Albrecht’s guiding principle is “Get the soil foundation right and the rest will follow”. Build a house for soil biology to thrive, supporting healthy pasture, crop, and livestock growth.

winter, with upside support dependent on markets digesting ample supply among a mixed demand outlook.

Sheepmeat

EARLY IN June, the store lamb market was bursting

with lambs –with Temuka achieving a record yarding of close to 13,000 lambs.

However, concerns circulating export markets are adding downward pressure to the store lamb price and tempering future schedule expectations. In recent weeks, agents have reported the challenge they are facing in finding buyers for all of the store lambs available.

Procurement pressure has masked the deteriorating state of the export market to date, allowing slaughter prices to lift.

This was evidenced by an increase in the South Island lamb price from an average NZ$ 7.52/kg cwt in May to NZ$ 7.68/kg cwt in June. New Zealand sheep farmers are desperately awaiting China’s rebound in demand – but

GBD Advertorial

To find out how you can switch to the Albrecht soil system talk to GBD today

anticipation that this may not occur is emerging behind the farmgate.

The slower recovery in demand (and subsequently pricing) observed in China is also reflected in other key markets, with subdued demand coming from Europe and the UK –New Zealand’s largest export markets.

RaboResearch expects

that processor margins have been squeezed. This is reflected in processors pulling money from the schedule late in the month in an attempt to maintain a balance with export revenues.

Farm inputs

ANOTHER RUSSIAN ammonia pipeline blast occurred, and now the

grain corridor deal very likely will be ditched.

Europe reimposed import duties on ammonia and urea, and the Dutch natural gas price reference hiked 62% in the last 30 days. However, none of these incidents was strong enough to revert the downward trajectory of farm input prices, which will only

change when demand exceeds supply and current stocks.

European natural gas price future contracts rose substantially during June but still fell short of last year’s bull market. Today’s price equals only 16% of 2022’s highs.

The blast was unable to alter Europe’s nitrogen price reference, and Middle East references dropped about 15% for urea. The global market remains well supplied.

Interest and exchange rates

THE NEW Zealand dollar

staged a modest rally in June, even as the national accounts data for the first quarter confirmed that the country has entered recession.

The price action seems to suggest that traders now believe that the worst is behind us and that brighter days lay ahead for the rest of the year.

Expectations that the RBNZ will hold the OCR steady at 5.50% for an extended period of time may well assist asset prices, and that should also see a recovery in consumer confidence

over time. Futures markets are predicting cuts

to the OCR from April next year, which aligns with Rabobank’s forecast for the next move from the RBNZ.

We expect that economic activity will start to improve as the reconstruction efforts for Cyclone Gabrielle and the Auckland floods and improving trade performance all start to wash through the economy.

@rural_news facebook com/ruralnews

The specialised 5-in-1 pre-lamb vaccine New Zealand’s leading 5-in-1 clostridial vaccine range

Time to move on!

THE OFFICIAL and symbolic signing of the Free Trade Agreement between New Zealand and the European Union arguably signals a closure on Brexit.

NZ is effectively back to where it was pre 1973, when it had separate trading arrangements with Britain and Europe.

Today, it has FTAs with both the UK and the EU and its 27 member countries.

While both are trade deals in name and reality, they are more than that. They lock in a whole host of other things that were never thought about in the 1970s when the EEC was expanding its membership. The FTAs incorporate values, aspirations and commitments about such things as climate change, environmental standards, commitment to rules based trade, animal welfare, treatment of people and open up special opportunities for Māori. They are strong political agreements, and as we have seen, NZ’s support for the EU’s stance on Ukraine was something that helped get the EU FTA across the line.

There are some people who believed that NZ negotiators caved in and should not have signed the FTA because it didn’t offer sufficient access for meat and dairy products. While Australia has held off signing a deal, the reality is that NZ does not have the political sway of our mates across the ditch and in the end a deal was done that left NZ and European farmers equally unhappy.

As the EU Ambassador to NZ Nina Obermaier said, the negotiators struck the sweet spot and got a deal that will likely be ratified by the European parliament and that is very important. It is also fair to say no one from our horticulture sector is complaining about the FTA.

So, the time to bitch about the deal is over and NZ companies now need to take the half full glass approach and use their creative juices to gain the advantages that the FTA offers. There are plenty of opportunities.

It is also time to pay tribute to the NZ trade negotiators for the tremendous job they did for us over the five years it took to get to where we are now. They worked crazy hours, on complex issues, often online, to get this ‘trailblazing’ deal. And let’s not forget our politicians who weighed in at critical times to break potential deadlocks in the negotiations.

RURALNEWS

TO ALL FARMERS, FOR ALL FARMERS

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

PUBLISHER: Brian Hight Ph 09 307 0399

GENERAL MANAGER: Adam Fricker Ph 021-842 226

CONSULTING EDITOR: David Anderson Ph 09 307 0399 davida@ruralnews.co.nz

THE HOUND

Apolitical hypocrisy?

This old mutt hears that Fed Farmers has instructed all its national executive to severe any personal ties they may have with any political parties. This follows in the wake of former Feds boss Andrew Hoggard’s move to stand for ACT this year and revelations that he had been a member of the party of 3 years. This led to criticism in some quarters about Fed’s political neutrality and, by all accounts, fed into the current government’s vindictive treatment of the organisation as its political enemy. So, long story short, this has meant that a number of members of Feds executive have been resigning their memberships to political parties. Funny how Feds members can’t be members of a political party, but the current Government is happy to deal with various unions who are affiliated to the Labour party and pay hundreds of thousands of dollars in membership fees every year!

MIA

The Hound is bitterly disappointed to learn that the Ministry of Education has awarded an American company the contract to install nylon carpet in 800 rural schools around the country. This is a major a slap in the face to NZ’s struggling strong woolgrowers. Where has the Minister of Agriculture Damien O’Connor been on this subject? It seems, like his government, O’Connor is missing in action (MIA) again when it comes to backing the ag sector. He is all talk and no action. Especially since O’Connor was all talk when setting up the Wool Working Group and Wool Impact Ltd and claiming at the time it would be “fantastic” if strong wool became the first choice of fibre in homes, schools and businesses. Did he speak to his counterpart Education Minister Jan Tinetti about this contract and ask if she had looked at the NZ wool option? What’s the bet he didn’t. Thanks –again – for nothing, Damien!

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

Dirty tricks?

Your old mate understands that there is quite a bit of discontent among farmer shareholders about two of the country’s biggest dairy and meat co-operatives over their ‘behind the scenes’ lobbying actions on ag emissions. According to the Hound’s source, farmers will be livid to find out how both these supposed farmer co-operatives are actively lobbying the government to ensure that it prices the hell out of biogenic methane – even if it results in a modelled decrease in (sheep and beef) stock units circa to 1 million /su/year post 2030. Apparently, both co-ops have already promised their offshore consumers about lower ag emissions from NZ ag. Pretty sneaky of them asking the government to do their dirty work, but what better way than get the Crown to play bad cop and keep their hands clean with their farmer suppliers and shareholders.

AUCKLAND SALES REPRESENTATIVE: Stephen Pollard Ph 021 963 166 stephenp@ruralnews.co.nz

WAIKATO SALES REPRESENTATIVE: Lisa Wise Ph 027 369 9218 lisaw@ruralnews.co.nz

PRINTED BY INKWISE DISTRIBUTED BY REACHMEDIA

Used by date?

This old mutt hears that the voices of dissent in sheep and beef farming circles are growing louder about what they believe is the (non) performance of Beef+Lamb NZ – especially its top executive and CEO Sam McIvor. While farmers get to vote off directors –like they did earlier this year with former chair Andrew Morrison – they have no say in staff at the levy-funded organisation. Feedback to yours truly, from many dissatisfied levy payers, is that McIvor should follow the lead of his mate former DairyNZ chief executive Tim Mackle and move on. McIvor has been in the top job at B+LNZ for coming up 8 years and the calls are growing louder that his time should be up. There are a lot of grumpy of farmers who are less than happy about his role in leading B+LNZ – especially in relation to the deeply unpopular and controversial He Waka Eke Noa deal with the government.

WELLINGTON SALES REPRESENTATIVE: Ron Mackay Ph 021 453 914 ronm@ruralnews.co.nz

SOUTH ISLAND SALES REPRESENTATIVE: Kaye Sutherland Ph 021 221 1994 kayes@ruralnews.co.nz

DIGITAL

Disagree without being disagreeable

ANOTHER ELECTION

season is in full swing.

In the last Rural News, The Hound had some great comments around the current Government’s controversial $55 million Public Information Journalism Fund.

Personally, I think one would have to be incredibly naïve to ever think any government heavily pouring taxpayers’ dollars into the media like this is all about the publics’ wellbeing and its love for our people! They have no vested interest in this?

Yeah right!

The so called ‘benefits’ for we the people may capture the nice cosmetic smiley-faces of the advertising and media talkshow market. But history instructs us much more sinister stuff usually hides well back in the shadows.

Before you jump to the wrong conclusion and hastily tag me as a conspiracy theorist, let me remind you of some accurate history: Governments have conspired against their own people since governments began! Examples abound, both historically and currently. I could quite easily refer to more examples than my word space allows.

I grew up being encouraged to think things through for myself.

handy

Colin Miller

I was taught that I have been given a good brain and was encouraged to make the most of it.

Like, for starters - use the thing! Yes, freedom instructs me to not allow others to do my thinking for me.

I also learned that maturity allows you to disagree without being disagreeable.

The words of other humans do not determine my future. For many years now, I have never felt threatened by colleagues or friends that saw some things differently to what I did.

I grew up with folk where voting was seen more as a personal and private thing. Politics never had us having public adult-sized tantrums with each other either. We simply got on with life and living together as fellow travelers, here on our part of this tiny planet.

At no time did I ever consider any of the stuff directed at me to be hate speech. Nope, our attitude was “we’ve got this”… after all, we are the adults in the room!

Here are three of my favourite quotes on this:

“Without freedom of thought, there can be no such thing as wisdom; and no such thing as

public liberty, without freedom of speech.”Benjamin

Franklin

“Once a government is committed to the principle of silencing the voice of opposition, it has only one way to go, and that is down the path of increasingly repressive measures, until it becomes a source of terror to all its citizens and creates a country

where everyone lives in fear.” - 33rd US President Harry S Truman

And finally, one for the farmers: “If the freedom of speech be taken away then dumb and silent we may be led, like sheep to the slaughter.” - 1st US President Gen. George Washington

One of my good friends informed me that

our world suffers from ‘hurry sickness’. Many are in such a hurry they have no time to think for themselves.

The pressure is on to keep up the pace, so the easiest option seems to be, let others do your thinking.

My thoughts? Slow down some and give some time to think

through some of the challenges we face as a nation, and some deeper life issues. Maybe even some God stuff. You might get a surprise at what you learn. Your general health and wellbeing will benefit, just for starters.

God bless.

@rural_news

Half arsed no longer cuts it!

paign called Half Arsed Stops Here

LAST MONTH I stood with farmers and industry leaders on farms in Canterbury and the Wairarapa to launch the Farm Without Harm strategy.

This is a bold new system-wide approach to harm, and a new cam

We gathered to take a stance and draw a line in the sand. This was us saying we no longer accept the poor safety performance of the agricultural sector and the needless loss of life and long-term disability from

injuries or disorders. This impacts our lives and our ability to farm and live well.

It acknowledges it will take all of us to get to none of us dying, being injured, or suffering from mental harm in the production of food. It’s all our problem to solve.

This strategy, action plan and campaign is about us gathering to get it right, to develop

approaches that work for us. It’s a strategy that has been developed by us, for us, recognising we hold

the solutions and trusting if we commit to this and develop a whole-of-system approach, we will be successful.

It is not about compliance measures or highvis’ gear or helmets, but about working together, designing risk out of our system, finding practical solutions, valuing our own and others’ safety and recognising that we are human and fail – so when we do, how do we fail safely?

So, what is different about this? Firstly, it acknowledges we want to be in the driving seat when developing solutions, we learn best from our peers and it’s in our DNA to protect and care for one another.

It signifies farmers and farming communities setting new standards, taking safety seriously, and acknowledging the risks involved or practices that jeopardise our wellbeing or the well-being of those around us.

The strategy emphasises open communication and collaboration to discover and share solutions that work best for us, while rejecting any attitudes or practices that jeopardise our well-being or the well-being of those around us.

The Half Arsed Stops Here campaign is a provocative message to start changing attitudes – a key component of the Farm Without Harm strategy. It’s a recognition that we need to do things differently. Half arse is a language farmers recognise and use.

We needed a grounded, motivating, strong and relevant

brand. To get traction on this issue, the community has to feel that they own it – and it comes from their voice. We also wanted our famers to feel that the prevailing attitude has changed, from a mindset that sees taking precautions as a sign of weakness, to a sign of professionalism and experience.

Rewriting our story of harm will not be easy or quick. But we owe it to those we’ve lost, and those who will farm after us, to work towards a future where every day, farming Kiwis protect each other from preventable harm.

Nothing is more effective in championing the value of simple, everyday decisions and conversations to reduce farming risks and their human cost than the voices of farmers themselves.

It is a shared responsibility that extends to everyone, from the most remote regions to the boardrooms, from the field to the family breakfast table.

We all have a stake in creating a safer farming industry, and we all have a role to play.

Today, I issue a challenge to rural organisations, enterprises, and farming communities— regardless of their size— to step up and sign our pledge.

Let us come together and take a stand for the well-being of our farmers, our communities, and our nation. Sign the pledge and be part of the movement. Please visit www. farmwithoutharm.org.nz

• Lindy Nelson is the chair of Safer Farms

LINDY NELSON

Chair of Safer Farms Lindy Nelson.

The Half Arsed Stops Here campaign is a provocative message to start changing attitudes.

A fertile future in governance

are still not totally connected,” says Wynne.

OUTGOING BALLANCE

chief executive Mark Wynne will eye more governance roles after he steps down in September.

Wynne, who has led the fertiliser co-operative for nine years, has been a board member of Alliance Group for the past 12 months. He told Rural News that this board role has whet his appetite for governance roles.

“I think as a chief executive going out of management into governance, you can bring a whole different set of skills and experiences to a board and that’s what I’d like to do,” Wynne told Rural News. “I see the next decade as a career in governance.”

Wynne says his nine years at Ballance have been great fun.

“Huge challenges impact the rural sector across dairy, sheep and beef, arable and horticulture sectors and these are all huge opportunities,” he says.

“A co-op like Ballance is set up really well to help farmers navigate through those changes.”

He says the fertiliser co-op is helping farmer shareholders in developing and addressing freshwater plans, digital reporting, soil health and precision application as they continue to improve sustainable practices.

“These are tools designed to help farm-

ers thrive in the rapidly changing environment they find themselves in,” Wynne says.

“I’m very fortunate to have that role - just loved it. I hope I’m leaving behind a great legacy with awesome people and awesome tools that are designed for our farmers to thrive.”

Wynne believes primary production is in a fantastic place. He points out that over 82% of NZ’s exports are related to the primary industry.

“If we want to continue to be a wealthy country, we must grow the value, not necessar-

ily the volume. Because without that value, we can’t pay for the more nurses, medicine, and electric cars, all the things we want to do to make our society better.”

For this, the country needs a thriving primary industry. Wynne says farmers need to change too, and this will come through innovation. He thinks the future for the

primary industry is very exciting but points out that all parts of the sector must be linked up.

“What we’ve got to do is to make sure all parts are linked up. But we

“We got legislation that’s well-meaning, but its implementation has some silly consequences. We’ve got to do better than that.”

He also wants farmers to be leading change.

“We should go back to the process of leading change. We start by farmers understanding their number, that’s the first point. And, then looking at what should the number be over a period, by sector, because it will vary between dairy and sheep and beef and arable and horticulture.

“And, then we develop a plan that allow farmers to lead the change themselves to that desired outcome.”

Wynne steps down at Ballance’s annual general meeting at end of September.

WEATHER WOES HIT FRUIT AND VEGE COMPANIES

FRESH PRODUCE trader Seeka is heading for a major financial loss, on the back of record low per hectare yields.

The listed company, one of the country’s major kiwifruit packhouse operators, packed just under 30 million trays this season, compared to 42m last year.

Seeka has informed the NZ Stock Exchange that its result for the full year to December 31, 2023 is likely to be a net loss before tax of between $20 million and $25 million.

Seeka chief executive Michael Franks says the company’s regional

market share is comparable between years and the lower volumes primarily relate to record low per hectare yields from orchards across all regions.

Franks says all growing regions experienced adverse weather events: a severe frost October last year, storms in January and February this year affecting the Gisborne and Hawke’s Bay that also impacted the Bay of Plenty and Coromandel, and wetter conditions during pollination and throughout the growing season.

He says Seeka is a seasonal business and expects to record a profit in the six months ended June 30, 2023.

“However, as a result of much lower kiwifruit yields than expected, inventory levels in cool stores are low and the company expects to record a loss in the second six months ending 31 December 2023.”

Franks says the company has put in place cost containment measures and is progressively reviewing and restructuring every business unit. It has engaged with its banking syndicate through a renewal process and expects to finalise a deal this week.

Franks adds that Seeka anticipates improving volumes in 2024, reflecting better growing conditions with El

Nino weather patterns, winter chill, increased areas of new orchards coming into production and better frost impact mitigation preparedness by growers.

Seeka will release its 6 months result by August 31.

Seeka is the second major fresh produce trader to signal a financial loss this year.

Last month T&G Global informed NZX that it is expecting a loss before income tax of between $28m to $34m due to damage caused by Cyclone Gabrielle and other weather-related events.

T&G’s forecast allows for all known cyclone impacts (including clean-up costs) and includes a provision for the one-off writedown of trees and planting structures devastated by the event.

Meanwhile T&G’s New Zealand apple crop has now been fully harvested. While its overall New Zealand supply volumes are down 19% on last year, it says – at this stage – the crop is 14% sold.

T&G adds that the pricing outlook appears strong, particularly for its premium variety Envy.

– Sudesh Kissun

SUDESH KISSUN sudeshk@ruralnews.co.nz

“Huge challenges impact the rural sector across dairy, sheep and beef, arable and horticulture sectors and these are all huge opportunities.”

Mark Wynne will eye more governance roles after he steps down as Ballance chief executive in September.

Farmer is no chicken when it comes to decarbonising

WHEN THE first fully electric farm ute hit the New Zealand market last year, Tirau chicken farmer Jeff Collings was interested.

Once he’d run the numbers, he was convinced.

“As the price of solar has dropped and the price of EVs has also dropped, it really made it a nobrainer,” Collings says.

He already owned two electric vehicles – a Tesla Model 3 for road trips, as well as a Nissan Leaf which was used around his mostly-flat farm, instead of a quadbike.

Eager to park up his old diesel ute once and for all, Collings jumped at the chance to buy a Chinese-made LVD EV T60 as soon as he could.

He reckons the cost savings were immediate.

“We were burning through about $9000 worth of fuel a year, and that’s dropped to absolutely zero with the EVs,” Collings says. “It’s not many years to pay back the cost of an EV at that rate.”

Meanwhile, in an effort to decarbonise his 130,000-bird farm, Collings had already

SUSTAINABLE INCENTIVE

ANZ SAYS businesses are now realising the advantages of clean transport options and this is driving huge change.

“Customers are increasingly coming to us for support and guidance, asking us what they can do, and how they can invest to future proof their businesses,” says Lorraine Mapu, ANZ managing director for business.

In response, the bank says it has expanded the scope of its Business Green Loan. This means business customers can now use the loan to replace their fossil-fuelled fleet with electric vehicles. “An important part of our role as a bank is to support the shift to more sustainable practices by removing some of the cost barrier businesses face,” Mapu adds. “Investing in clean transportation

installed dozens of solar panels on the roof of his chicken sheds. His

can help reduce emissions and increase efficiency.”

She says expanding its Business Green Loan to include electric vehicles and clean transport options is one important way the bank can help.

ANZ’s Business Green Loan allows eligible customers to borrow up to $3 million at a special floating rate. This can be used for investments in renewable energy, energy efficiency, sustainable land and water use, and the building, renovating, or purchasing of green buildings and clean transport.

“Farmers who have taken up the loan, have told us that the special rate meant that it made good sense from a business standpoint, and this helped justify their decision to make a change,” Mapu claims.

60-kilowatt system was already providing heating or cooling in the sheds during the day – but he wanted to take his electrification efforts further.

“We have tried to

decarbonise as many of the combustion engines as possible, and we’ve replaced petrol blowers with electric blowers, and got electric mowersit’s all working out really

well.” The farm was able to take out an ANZ Business Green Loan to buy the EV T60, something Collings says had helped convince his business partners – his parents Trevor and Francie and wife Heather.

“The green loan’s special rate made it a sensible business decision,” he adds. “Add in the [clean car] rebate from the government and it just made good business sense –we found we could easily afford the next step.”

With clear financial reasons for going electric, and an increasing number of EV options, Collings believes there’s no reason others in the poultry industry – or the

wider farming community – can’t also consider making the change.

“I like to think that all I’m doing is basically showing that it is possible,” he says. “Not only that, but also that it’s economically viable and it’s just a better way to do things.”

Collings’ long-term plans include trying to further decarbonise the farm, ultimately having all the heating and cooling of the chicken sheds done via solar and heat pumps.

More investment will be required, but the ultimate goal is to try to make the farm, and his chicken rearing operation, as close to carbon zero as possible.

Jeff Collings’ longterm plans include trying to further decarbonise his farm.

Managing drench resistance

DRENCH RESISTANCE is common.

It is increasing in all drench families (and combinations) and poses a real risk to the viability of livestock farming.

The balance of reducing the risk of drench resistance, while still managing worms (internal parasites) so production and animal welfare do not suffer involves com-

promise.

The risk of drench resistance development can be evaluated and steps taken to minimise it:

• Knowing what

Calving 2023

drenches are effective on your farm is essential; poor efficacy means lost productivity.

• Continued use of a drench that is losing its efficacy carries a high risk

Drenching should be just one small part of a parasite management plan.

• Ensure all calves are fitted with a NAIT tag before they reach 180 days of age.

• Register any fitted NAIT tags within 7 days of tagging.

• All calves must be tagged and registered before their first movement. So, if you are sending them off your location, make sure you meet your NAIT obligations.

• Calves must be NAIT tagged correctly. For more information go to OSPRI.co.nz or 0800 842 463

• The concept of refugia refers to a worm population not exposed to drenching.

• Well-fed adult stock should not need drenching and can act as a reservoir of non-resistant worms (‘Refugia’) as well as ‘vacuum cleaners’ of larvae deposited by young animals.

• Using undrenched animals of the same species to create refugia will ensure there are still nonresistant worms around and this can be a useful tool in delaying resistance.

Drenching should be just one small part of a parasite management plan.

OSPRI’S ONLINE PORTAL

IN THE past year, farmers using MyOSPRI have created just over 15,000 electronic farm-to-meatprocessor and 1300 farm-to-farm Animal Status Declarations (ASDs).

MyOSPRI is a new farmer customer portal, and the first functionality added to it was the ability to send electronic ASDs.

OSPRI says the next major milestone in MyOSPRI is to replace the NAIT system with a more userfriendly and fit for purpose traceability system. The aim is to make interacting with OSPRI’s traceability and the TBfree programme easier.

The organisation adds that, as part of the build, it is working to update MyOSPRI more often, with incremental changes so farmers can benefit from the new traceability features as they’re ready.

OSPRI says the purpose of improving the NAIT system is to decrease the barriers that farmers currently experience when trying to complete their NAIT obligations.

“This should improve compliance and therefore more accurately reflect what is on farms throughout New Zealand.”

Farmers can register for MyOSPRI now and use it to send electronic ASDs.

Italians look to expand NZ footprint

FIELDAYS IS usually the place to find old favourites.

However, one of the newest exhibitors at the 2023 event was a joint venture between the Italian Trade Agency, the Embassy of Italy in Wellington and the Italian ag machinery industry association FederUnacoma.

It was at Fieldays to promote Italian agricultural, horticultural and vineyard machinery producers – as well as component suppliers. The Italian site saw a mix of well-known brands such as Antonio Carraro and Arag and lesser-known

brands like DigiDevice and Arbieri on display, with accompanying product specialists.

Italian Trade Commissioner for ANZ, Simona Bernardini, says there has been a very positive trend in Italian machinery exports to New Zealand in the last three years.

“In 2020, the companies we support shipped around $50m of product to NZ, climbing to $88.7m in 2022,” she told Rural News. “In the case of tractors, this was $26.5m, climbing $40.6m. Meanwhile, machinery climbed from $42.4m to $47.7m.”

Bernardini added that it was great to be exhibiting in New Zealand for

the first time.

“Now we have no travel restrictions and a free trade agreement between NZ and Europe, we are excited to be able

to build on existing relationships and of course, develop new business in both directions.”

Also attending was the Ambassador of Italy to

New Zealand, H. E. Francesco Calogero – helping to promote trade and cultural activities between both countries. He noted the 2023 Fieldays was

NEW APP FOR AGRICULTURAL CONTRACTORS

AGRICULTURAL CONTRACTING

throws up many challenges – not least getting the job done, breakdowns, bad weather and finding suitable and committed staff.

At the same time, once the tractor is parked in the shed on completion of a job, contractors need to scrutinise time sheets and raise invoices for payment.

At Fieldays, UK-based Ag-drive showcased a new paperless solution for agricultural contractors that should make the end of the day

tasks just that bit easier. Designed by a third generation farmer/contractor and agricultural university graduate, Will Dunn – who started Ag-drive two years ago and wanted to solve the everyday challenges his father Simon faced in their family’s contracting business based in Yorkshire, UK.

“From growing up working for the family contracting business and then coming home full time after university, I wanted to improve the running of the contracting business at home.” Dunn said.

“At home, my old man used to spend hours trailing through job

sheets every week, which seemed bizarre in an industry that operated high value machinery. In many cases, he was still invoicing based on notes written on the back of a cigarette packet.”

During the COVID-19 pandemic, with a little time on his hands, Dunn started to develop the Ag-drive app and web portal.

Ag-drive is an all-in-one app for agricultural contractors that eliminates the need for paperwork. It streamlines the process of job recording to invoicing with common accounting software packages like Xero, Sage Online and Quickbooks.

the first since Covid to be held with no border restrictions, although supply chain logistics and the Ukrainian conflict still created challenges. He suggested that it was the right time to “re-connect”, building on existing relationships and investigating new opportunities.

“We already have a healthy two-way trade in things like fine Merino wools and Kiwifruit, with Italian agricultural and horticultural machinery and speciality foods heading to the southern hemisphere,” Calogero told Rural News

“What NZ locals probably don’t realise is that Italian companies are

Other key features include live location tracking of operators, timesheets, field mapping, job reports, health and safety checks as well as invoicing.

Having launched in the UK in June 2021, Ag-drive took the best innovation at the LAMMA agricultural machinery show, earlier in the year. It now has contractors signed up across the UK, Ireland, Canada, USA, Australia, and New Zealand.

“As a finalist in the Fieldays Innovation Awards, we’ve noticed that NZ contractors appear to be more ready to adopt technology compared to contractors in the UK,” Dunn says. “So, it’s an ideal event to launch Ag-

heavily involved in tunnel boring machines that are creating new stormwater drains under Auckland.”

Calogero also commented on the large communities of Italian descent currently living in NZ.

“We have around 7000 people registered with the Italian Embassy, but we estimate that there are around 25-30,000 people of Italian descent in NZ, with sizeable communities in Auckland and Wellington. It’s our job to help them keep their culture alive, promote a trans-country working holiday programme and also help develop trade in both directions.” www.ice.it/en

drive formally to New Zealand and build on our existing customers over here.”

Ag-drive is available on both iPhone and Android smartphones and has been designed for simplicity to support all users. A web version is also available and is mainly used for invoicing and processing time/job sheet information.

A free, 14-day trial gives users the ability to try all the features before committing to a monthly subscription, starting from $20 per month, depending on the size of their contracting team.

www.ag-drive.com

MARK DANIEL markd@ruralnews.co.nz

Italian machinery manufacturers led by Trade Commissioner Simona Bernardini (centre) meeting with Agriculture and Trade Minister Damien O’Connor at this year’s Fieldays.

Contractors seek to bridge divide

MARK DANIEL markd@ruralnews.co.nz

AN APPEAL to address the urban/rural divide was made at the opening day of the recently held Rural Contractors NZ conference in Invercargill.

Former RCNZ president, Southland’s John Hughes, asked National’s Agriculture & Trade spokesperson Todd McClay to make this a priority.

Hughes said it had become its most divisive in the last five years.

“I’d love you to convince people we are not the enemy,” Hughes told the MP after his opening address to the conference of 150 rural contractors from around the country.

“We are not a bunch of rednecks. Everyone in this room is a conservationist. You don’t kill the

goose that lays the golden egg.”

McClay agreed that the divide had worsened, even though urban New Zealanders had thanked farmers and the rural sector for continuing to produce food through the Covid lockdowns.

“In my experience, farmers are custodians of the land. We need to find a way to talk about the good things that are being

Rubber Safety Matting

done,” he said

At the conference, the association also formed an industry leadership group to make farmers and growers more aware of the benefits of using accredited agrichemical contractors and the inherent risks of not using qualified professionals.

RCNZ chief executive Andrew Olsen says agrichemical contractor members bring years of experience, as well as the

requirement to be trained in handling and applying chemicals safely.

“We think farmers and growers deserve to know they reduce their risks by using our members and they don’t get the same benefits using people who don’t do any training or accreditation,” Olsen explained. “It’s a sad fact that, despite the harm they can pose to farmers and the environment, a handful of cowboys face little chance of facing any

enforcement.

“We’ve formed this leadership group to see what more practical requirements from the regulators could look like if we worked together with agencies like Growsafe, WorkSafe and Federated Farmers.”

RCNZ want to see an accreditation system that is easily understood by members and farmers, a requirement for basic and advanced training for anyone

handling agrichemicals and enforcement to stop those who take no account of the risks they pose. It also notes that it’s not just farmers and growers who face risks if they don’t use accredited agrichemical contractors. Agrichemical distributors can also face the liabilities when a container leaks during a delivery or in an insecure shed.

Rural Contractors NZ also announced a new 5-year partnership plan

with global agrichemical distributor Nufarm, reforging a previous partnership that recognises the increasing demands for sustainability and assurance from agricultural and horticultural spraying sector applications.

“This is the natural evolution of a relationship that began more than a decade ago,” Olsen said. “The partnership will add value for the established agrichemical professional and members who do a bit of spray work.”

Gavin Kerr, Nufarm’s NZ country manager, says the industry has never been under more scrutiny in terms of what it is spraying and how it’s being applied.

“We need contractors spraying with confidence and we believe this partnership ensures this confidence continues to grow,” he explained. “With escalating handling legislation and health and safety requirements, there’s more and more opportunity for the rural contractor to take the lead as the professional in the application of agrichemicals.”

partnership will add value for the established agrichemical professional and members who do a bit of spray work.”

Former RCNZ president John Hughes and National’s agriculture and trade spokesperson Todd McClay at the recent RCNZ annual conference.

Ph

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