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Sheep milking wool’s future?
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Workshops to help farmers plan for the big dry. PAGE 7
PAGE 18
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TO ALL FARMERS, FOR ALL FARMERS OCTOBER 24, 2023: ISSUE 787
www.ruralnews.co.nz
Heat on methane! DAVID ANDERSON
A RECENTLY formed pressure group is upping its campaign against any implementation of a methane tax. The Methane Science Accord is backed by a number of prominent farmers and others. The group’s backers includes the likes of Jane Smith, Hamish Carswell, Derek Daniell, Helen Mandeno, Hamish de Lautour, Debo-
rah Alexander, John Sexton, Hamish Bielski, Neil Henderson and Owen Jennings. The group says it has been joined by hundreds of other farmers and is ‘independent of but supported by’ organisations such as Groundswell, FARM, 50 Shades of Green and the Rural Advocacy Group. It is asking more farmers to join the cause. The accord says it is cranking up a campaign to help convince both rural
and urban New Zealanders that taxing methane is ‘unscientific, unjustified and economic insanity’. “The most recent science is clear. Ruminant methane – our sheep and cattle burps – should not be taxed,” it says. “It is too insignificant and trivial to be properly measured.” The group adds that the outgoing government and other political parties have been threatening action based
TOGETHER AGAIN!
on false science. They want to update them and save rural communities. “Government and agricultural industry modelling showed that 20% of sheep and beef production will be lost – along with 5% of dairy output. That hurts farmers, their families, their communities. Our country cannot afford that cost.” The groups says a tax on methane could cost the average farmer over
Newly elected Waitaki MP Miles Anderson (centre) caught up with his former Federated Farmers colleagues vice president Colin Hurst (l) and president Wayne Langford (r) in Wellington last week. Anderson was in Wellington as new MPs started their induction process. He joins an influx of newly-elected MPs who are farmers or who have interests in farming, following National’s strong performance at the election. New National MPs with farming backgrounds include Anderson, Mike Butterick, Dana Kirkpatrick, David McLeod, Grant McCallum and Suze Redmayne. There are several others in National and its potential coalition parties with strong farming connections – including ACT’s Andrew Hoggard and NZ First’s Mark Patterson. See more page 3.
$100,000 depending on the carbon price. “Why pay when they cannot tell you how much warming your farm is producing?” It describes moves to implement a methane tax a “political sop” and that is not scientifically justified. “The most recent, unrefuted science is clear – methane’s ability to warm is too inconsequential to measure or be taxed.” The accord says claims that international customers will take action if we don’t pay for our methane emissions should be left up to individual exporters to deal with. “If their customers demand produce with certain condition, the exporter/processor needs to incentivise their suppliers,” it says. “Why should one company force a tax on all farmers to satisfy their consumers?” The group also disputes claims that money paid in methane taxes will be returned to the industry. “More than $700 million has been allocated already and is being spent on dubious pursuits. Why create an unnecessary money-go-round?” It also takes aim at levy bodies who have supported moves to tax methane emissions, describing these organisations as out of step with farmers. “They will have to answer to levy payers. HWEN went down a rabbit hole focused on targets instead of warming ability.” More: www.methane-accord.co.nz
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RURAL NEWS // OCTOBER 24, 2023
NEWS 3
ISSUE 787
www.ruralnews.co.nz
Dairy boss backs HWEN SUDESH KISSUN sudeshk@ruralnews.co.nz
NEWS ���������������������������������������1-11 MARKETS ��������������������������� 12-13 HOUND, EDNA ����������������������� 14 CONTACTS ������������������������������ 14 OPINION �����������������������������14-16 AGRIBUSINESS ���������������������� 17 MANAGEMENT ���������������������� 18 ANIMAL HEALTH ������������������� 19 MACHINERY AND PRODUCTS ���������������������� 20-22 RURAL TRADER ��������������22-23
HEAD OFFICE Lower Ground Floor, 29 Northcroft Street, Takapuna, Auckland 0622 Phone: 09-307 0399 Fax: 09-307 0122 POSTAL ADDRESS PO Box 331100, Takapuna, Auckland 0740 Published by: Rural News Group Printed by: Inkwise NZ Ltd CONTACTS Editorial: editor@ruralnews.co.nz Advertising material: davef@ruralnews.co.nz Rural News online: www.ruralnews.co.nz Subscriptions: subsrndn@ruralnews.co.nz
DAIRYNZ’S NEW chief executive Campbell Parker says the dairy sector should take lessons from the stalled primary sector climate action partnership He Waka Eke Noa (HWEN) and move forward. Parker, who took up his role this month, believes there is no need to start from scratch. HWEN was a collaboration between the agriculture sector organisations, the Federation of Maori Authorities, and the outgoing Government to set up a framework by 2025, allowing farmers to measure, manage and reduce on-farm emissions and include an appropriate pricing mechanism. However, the process stalled and no agreement was reached before end this month’s general election. The incoming National-led Government has signalled working more closely with farmers on emissions prising and mitigation. Parker told Rural News that a lot
New DairyNZ chief executive Campbell Parker expects his and other industry-good bodies will continue to work with the incoming government on emissions pricing.
of really good work has gone into the HWEN process and he believes the intent was good. “There was good alignment within industry and trying to shape with Government what the outcome should be,” he says. “Unfortunately, it stalled for
a period. Then there was late engagement around it and now it’s sitting in limbo. “I think what’s really important is that we take the learnings from that process and move forward: we don’t want to start from scratch.”
Parker says from his early observation at DairyNZ, many people put a lot of effort into HWEN to try and get the engagement right. However, farmers – both dairy and sheep and beef – have expressed opposition to the outgoing Government’s proposal around the pricing mechanism and entry into the NZ Emissions Trading Scheme. Parker says farmers are looking for more clarity “around what the guardrails are and the timeframes and the mechanisms.” He expects DairyNZ and other industry-good bodies will continue to work with the incoming government on emissions pricing. With the formation of the new government still being worked out, farming groups are preparing to engage with whoever will hold the key agriculture, climate change and environment portfolios. “We are already working on a plan on how we engage with the government on important issues,” says Parker. @rural_news facebook.com/ruralnews
More farmer representation RUAWAI DAIRY farmer and returning ACT MP Mark Cameron is happy about the high number of farmers in the new Parliament. Cameron told Rural News that he was “a lone voice” for farmers in the last term of Parliament. “This time we have a cohort of representatives who understand farming and I’m very happy about it,” he says. Cameron says in the outgoing Parliament, issues facing the farming sector weren’t fully understood especially by the governing parties – Labour and the Greens. “We spent more time explaining to them the definition of farming.”
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Cameron is excited to have former Federated Farmers president Andrew Hoggard in the ACT caucus. “Finally, there’s another farmer alongside me in the ACT caucus and I see National’s got people from the farming sector as well.” Farmers who won on National tickets include South Canterbury sheep and beef farmer Miles Anderson, Masterton sheep and beef farmer Mike Butterick, Northland beef and dairy farmer Grant McCullum – all former Federated Farmers executives. Another former Feds leader back in Parliament is Otago sheep farmer Mark Patterson, who stood as a NZ First list candidate.
He served a term in 2017. Cameron and Hoggard are part of the 11-member ACT caucus. However, the final make-up of Parliament will be decided early next month when over 500,000 special votes are counted. On Agriculture and Trade Minister Damien O’Connor losing his West Coast/Tasman seat to National’s Maureen Pugh, Cameron says he wasn’t surprised. He says that while O’Connor performed well overseas as Trade Minister, his performance as Agriculture Minister at home left much to be desired. “I agree that he did really well in
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terms of trade and trade negotiations, but domestically he wasn’t working effectively for the farming sector.” Hoggard says he was pleased with the election result and the shift to the right. For Hoggard, RMA reforms would be a priority this term. “We got to have meaningful change,” he told Rural News. “I knew about most of the problems but during the campaign I heard more and more stories about people getting caught up with regional councils while getting consents.” - Sudesh Kissun @rural_news facebook.com/ruralnews
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RURAL NEWS // OCTOBER 24, 2023
4 NEWS
Is the worst over? SUDESH KISSUN sudeshk@ruralnews.co.nz
THE WORST of the current dairy price cycle may be over, claims Westpac senior agricultural economist Nathan Penny. While wholemilk powder prices are still sitting 9% below their five-year average, market sentiment is changing. The most recent Global Dairy Trade (GDT) auction recorded its fourth straight price rise last week. Looking at sentiment, three things have helped turned the price tide, according to Penny. Firstly, prices hit very low levels, and this has led to increased buying interest, notably from the Middle Eastern and European buyers. After all, everyone loves a bargain, he says.
Secondly, the declaration of an El Niño weather pattern has increased the risk of a drought and a contraction of supply later in the season. Lastly, oil prices have lifted over recent months, and this may have given further impetus to demand from Middle Eastern buyers. However, NZ’s biggest dairy market, China, remains a question mark. Chinese buyers haven’t changed their buyer patterns materially, he says. “Similarly, Chinese economic data is also inconclusive at this juncture,” Penny adds. On the supply side, the strength or otherwise of New Zealand spring production also has the potential to provide fresh direction to prices over coming months.
The most recent GDT auction recorded its fourth straight price rise last week.
“At this juncture, and given that 2022 spring production was weak, we anticipate some lift in annual terms,” he says. “However, that is likely to be tempered by the fact that cashflow pressures are likely to mean that farmers’ purchase less feed and other inputs. Later in the season,
El Niño could lead to drought and put downward pressure on New Zealand production.” Westpac has lifted its 2023-24 forecast milk price to $7.25/kgMS. ASB’s new forecast milk price is $7.35/kgMS. Fonterra recently raised its forecast farmgate milk price range to $6.50 - $8/
kgMS, with a new midpoint of $7.25/kgMS, up 50 cents. ASB economist Nat Keall says with reasonable lifts for four consecutive auctions, August’s lows are looking increasingly like a near-term floor. All WMP contracts – stretching well into
the season – have lifted, and the curve has been consistently flattish-toslightly-upward tilting, Keall says. “That’s a sign that underlying demand is indeed firmer and it isn’t only a near-term shortage or some other squeeze skewing the overall figure.”
However, Keall cautions that there are downside risks to the outlook. The continued weakness of the Chinese economy is likely to continue crimping dairy consumption. “Nonetheless, nearterm risks to the dairy price outlook are clearly looking more balanced.” Two other factors may yet impact dairy prices in the coming months. Keall says the developments in the Middle East may boost oil and grain prices if sustained, in turn triggering further tightening in global dairy supply. Meanwhile, with the NZ dollar hovering around US60c, Fonterra is all but assured of a favourable effective exchange rate – possibly around 61 or 62 US cents. @rural_news facebook.com/ruralnews
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RURAL NEWS // OCTOBER 24, 2023
NEWS 5
Hawke’s Bay farms slowly on the mend PETER BURKE peterb@ruralnews.co.nz
FOR MANY farmers in cyclone ravaged Hawke’s Bay things are starting to come right, according to AgFirst farm consultant Lochie MacGillivray. However, he says the state of farms in the region varies a lot. MacGillivray knows of a farmer whose fences and tracks were badly damaged and it has taken him six months to get things right. But he says for others it will take years and they are in for some tough times. “We have got this double whammy with lower export prices coming through on top of high interest rates and for some that’s going to cause problems on how
they manage through,” he told Rural News. “Some of the areas inland around Wairoa, that’s where it will be hardest to work through.” MacGillivray says there are a lot of twinning ewes around and lamb survivability has been high. He adds that the ewes are looking good and milking well. While there has been talk of a drought, MacGillivray says in the past few weeks, farmers have had a bit of a reprieve with some rain, which has seen soil moisture levels high. He believes the real test will come in January and February to see if the drying winds arrive and bring with it a drought. For some farmers in Hawke’s Bay, limited road
Six months on from devastating floods, following Cyclone Gabrielle, many farms in the Hawke’s Bay are starting to come right.
access remains a problem. MacGillivray says some farmers in areas west of Hastings, around
the settlement of Kereru, are still experiencing problems. “They can’t use the
Kereru road and they have got to go up the Salisbury road, which is metal and it’s diffi-
cult at the moment,” he explains. “It takes a long time to get the kids to school and the school is
struggling to have its fundraising events because it’s only got half its students.” MacGillivray adds that not having good access makes life difficult because where once it took half an hour to get to town, it now takes an hour or more. He told Rural News the mood of farmers is pretty finely balanced and it’s somewhere between five or six out of ten. MacGillivray believes the election result will be a positive for farmers, but many are still worried about the low prices for lamb. He says there is also uncertainty around land prices and he believes these may fall. @rural_news facebook.com/ruralnews
FARMER CONFIDENCE HITS A NEW RECORD LOW RABOBANK’S LATEST rural confidence survey shows a minus 72% confidence reading - eclipsing last June’s historic minus 57% - the lowest in the survey’s 20-year history. Some 77% of farmers expect conditions in the broader agricultural economy to worsen over the next 12 months, with only 5% expecting conditions to improve. Rabobank New Zealand country banking general manager Bruce Weir says lower commodity prices are the main source of
farmer anxiety, with 54% of farmers attributing this as a reason for their pessimistic view on the year ahead. “Following our last survey, we saw Fonterra lower the mid-point of their farmgate milk price forecast from $8.00kg/MS to $6.75kg/MS, while schedule prices for sheep and beef products have also tumbled,” Weir says. “Fonterra’s subsequent revision of the milk price to a new mid-point of $7.25kg/MS is a significant boost for
the industry. However, this lift was made after the survey period and is therefore not reflected in the latest results.” Other pressing concerns for farmers are rising input costs (46%), government policies (35%), overseas markets (29%) and rising interest rates (18%). The latest survey show that – for the first time since 2020 – government policy was not in the top two main reasons for concern. It was also cited as the main reason for opti-
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mism among farmers expecting conditions to improve. Weir urges farmers not to overlook their own health and wellbeing, with the survey finding more farmers less optimistic about the prospects for their own farm businesses and more likely to view their operations as unviable. There is a small silver lining though, with an uplift in growers’ confidence in their operations, rising from -8% to +22%.
Rabobank says it has launched a new module of its free one-day financial skills workshop. It will run 19 workshops across the country, open to its clients and non-clients, with more scheduled to come in late 2023early 2024. “Given all the challenges facing industry participants, it’s important to reaffirm Rabobank’s commitment to our food and agri clients and to the wider sector,” Weir says. – Leo Argent
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RURAL NEWS // OCTOBER 24, 2023
6 NEWS
Preparing for drought! EVE HYSLOP
AS RAIN pours down on David Birkett’s Leeston arable farm, he takes a sigh of relief ahead of the predicted dry summer. But Birkett, who is also a Federated Farmers board member, says other farmers across the east coast aren’t so lucky. With an El Niño weather system on the horizon, agriculture leaders are stressing the importance of preparing for what NIWA is predicting to be our hottest summer yet, as sea temperatures exceed El Niño thresholds. “The signals are really strong,” says Birkett. “We need to be looking for those signals and putting the plans in place.” Director of rural communities and farming support at Ministry of Primary Industries Nick Story says Canterbury farmers in particular had been through drought in the past, so they were often well versed in how to deal with it. One such farmer is the owner of Clayton Station in Fairlie – Hamish Orbell. His beef, sheep and deer property was hit twice by the country’s last El Niño in 2015/16. Without irrigation, Orbell finds pad feeding his animals from a mixer wagon, having plenty of silage on hand and destocking, to be the most effective and affordable thing to do in a drought. “A mixer wagon
El Niño sees sea temperatures peak 2-3°C above average, resulting in more frequent westerly winds and drier than normal summer conditions in eastern areas of the country. For east-coast farmers, El Niño means drought is on the cards.
Clayton Station farmer Hamish Orbell says alongside his management practices, it’s his friends, family and farming community that support him through drought. IMAGE: SUPPLIED
is huge to be able to utilise feed. It allows you to bulk up your silage with straw, molasses, urea and grain to give your stock a gut full… it gives you more bang for your buck.” El Niño sees sea temperatures peak 2-3°C above average, resulting in more frequent westerly winds and drier than normal summer conditions in eastern areas of the country. For eastcoast farmers, El Niño means drought is on the cards. Birkett says this year was his wettest winter in about 12 years, so his tanks are full in every aspect. But just two weeks ago, the dust roll-
Leeston arable farmer and Federated Farmers board member David Birkett has had his wettest winter in 12 years, so he feels prepared for the predicted El Niño this summer. IMAGE: EVE HYSLOP
ing across his crops would have said otherwise. “We had two weeks of centrally norwest winds here, which dried the countryside right out very quickly. If that was an indication of what [El Niño] will look like; people will start irrigating pretty quickly.” These conditions prove how quickly drought can creep up on farmers, Story says. He adds that this abruptness stresses the need to have a plan in place. “Planning is critical. Not just for the farmers and growers but also the harvesters; for the whole sector,” he adds. Alongside irrigating efficiently, Story says farmers can prepare by feed budgeting, scheduling irrigation, setting feed targets, monitoring animal condition and maintaining moisture through direct drilling and the upkeep of soil cover. Story encourages farmers to utilise NIWA’s drought tool, which MPI invested $100,000 in alongside NIWA to help
farmers and growers better prepare for periods of dryness and drought. “That tool in place should really help farmers get the up to date information as it’s critical you are in a position to make early decisions,” he adds. While the issue with El Niño is the dry spell, Irrigation NZ principal technical adviser Stephen McNally says howling gales are just as debilitating when considering costly damage to irrigation systems. Birkett has experienced this first hand. “If it’s down and broken, it puts you in a worse position and that’s when the stress really kicks in. You can’t water and your crops are going backwards.” While farmers should tend to their land, equally as important is looking after themselves, Story adds. “Another critical part is to make time for yourself, for your family, your staff and look out for your neighbours. It’s always really important that a community can get through this together.”
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RURAL NEWS // OCTOBER 24, 2023
NEWS 7
Workshops to help farmers plan for the big dry
Alison Forbes says farmers need to take heed of NIWA’s warning of a drought.
want,” Forbes told Rural News. “We can’t go buying them fencing gear etc, but we can offer good advice and hopefully get to some of the farmers who aren’t so prepared.” Forbes says the top 10% of farmers are already running scenarios, but it’s that next echelon down that need to be looked after. She adds that after talking with meat processing companies, it’s clear that prices for stock in a few months’ time will likely be low and there is no silver bullet solution. Forbes says farmers need to carefully manage their operations in the coming months and be looking at their position on a daily basis, so that they know what levers to pull and when. She adds this will include when to destock and not get caught with too many animals and insufficient feed on the farm. “The other point to note is that if the stock on a farm is fine, it’s likely the mental health of the farmer is fine. But right now, mental health is a massive issue.” Forbes says reports from the Rural Support Trust suggest that the number of people engaging with it is gradually going up, which is not a good sign.
PETER BURKE peterb@ruralnews.co.nz
IN THE light of a possible drought due to El Nino – particularly along the East Coast of the North Island – Beef+Lamb NZ is busy running workshops to help farmers in the region to cope with any eventuality. Alison Forbes, B+LNZ extension manager for the East Coast of the North Island, says while things are okay in the Wairarapa, farmers need to take heed of NIWA’s warning of a drought. She says the whole of the East Coast was smashed by Cyclone Gabrielle and there were also pockets in the Wairarapa, around the township of Tinui, that were badly hit. Forbes says B+LNZ has managed to secure some funding from the Ministry for Primary Industries to provide technical advice to farmers, which will come through the running of various workshops. One of these will be run at Tinui and there will be workshops in other towns as well. “Basically, we are just trying to make farmers aware of what might be ahead. It’s around the preparedness space and talking to farmers and asking them what they
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RURAL NEWS // OCTOBER 24, 2023
8 NEWS
Glyphosate use under review? LEO ARGENT
THE ENVIRONMENTAL Protection Authority (EPA) is deciding whether there are grounds to reassess the use of the herbicide glyphosate in NZ. This follows an application from the Environmental Law Initiative (ELI), which claims there is significant new information about the negative effects of the substance to warrant a reassessment. Glyphosate – widely used on many arable farms – is the active ingredient in the weed killer Roundup. However, Round Up is only one of 89 mixtures containing glyphosate that are approved for use in New Zealand. A broad spectrum herbicide, glyphosate works by targeting an ESPS synthase
enzyme, found in plants but not humans or animals. Glyphosate was approved for use in New Zealand before the Hazardous Substances and New Organisms (HSNO) Act came into force in 1996. A number of glyphosate-containing substances were moved into the HSNO framework during a ‘transfer’ process in 2004. At the time of this transfer, glyphosate-containing substances were assessed and assigned rules for use as well as hazard classifications. Since then, there have been a number of applications under the HSNO Act seeking approval to import and manufacture glyphosate-containing substances. Grounds for reassessment requests are non-notified pro-
The EPA is deciding whether there are grounds to reassess the use of the herbicide glyphosate in NZ.
with the process looking at potential effects on the environment, public health, Māori culture, people and communities and the economy. While also considering how the potential risks from substances can be managed. ELI Director Legal and
cesses, meaning requests are not publicly notified and there is no opportunity for submissions to be made. Applications are assessed to determine whether the benefits of using the substance outweigh the adverse effects,
Research Matt Hall told Rural News that since glyphosate was last considered in the 1970s, significant new information has emerged about the health and environmental effects of glyphosate. “The volume and complexity of the informa-
tion is not for the faint heart on glyphosate. I think that is indicative of the fact that a proper reassessment would be a good thing,” he says. “We’ve curated and submitted a high level selection of the most important, independent, scientific information. That information does show that there are significant environmental and health effects and our submission is that that should establish the legal grounds for reassessment.” In a statement to Rural News, an EPA representative said that the organisation continually reviews global research and developments on hazardous substances including glyphosate. The EPA added that it is currently reviewing the findings from a Euro-
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RURAL NEWS // OCTOBER 24, 2023
NEWS 9
Disconnect between Fonterra board and farmers – claim SUDESH KISSUN sudeshk@ruralnews.co.nz
A FONTERRA farmer claims there is “a serious disconnect” between co-op shareholders and the board. Kaikohe farmer Richard Dampney says a proposal to reduce the number of farmer-elected directors will only make this worse. Dampney has submitted four resolutions to Fonterra shareholders around the composition of the co-operative board. The resolutions, along with the notice of Fonterra’s annual general meeting, were sent to farmer shareholders last week. Voting is underway and results will be announced at the co-op’s annual meeting in Methven on November 9. Fonterra’s board is asking farmers to vote against Dampney’s resolutions and says the Fonterra Co-operative Council also opposes them. Dampney wants the number of elected farmer directors to remain at seven and for non-elected farmer directors to reduce from four to two. Fonterra’s board currently has seven farmerelected directors and four appointed directors. The board is proposing a reduction in the board size – from eleven to nine with farmer-elected directors reducing to six and appointed directors to three. However, Dampney wants the number of farmer-elected directors to remain at seven. In support of his resolutions, he stated that farmers are “feeling ignored, disenfranchised and have a serious disconnect from the board”. “Less farmer directors will only make this worse. Talk of a smaller board takes away the risk of an ‘A & B division’ within the board, that only happens because the chairman is not doing his job in keeping everyone all inclu-
sive,” Dampney claims. “The board has already been reduced once and appeared to be harmonious at the present size. Personally, I would like to see a board of nine farmer-elected directors with no independent directors on the current three-year rotation, the board does not perform a third of the board find out real quick at the next election.” Dampney claims appointed directors are “traditionally conservative and support the chairman, don’t rock the boat and don’t make any hard decisions”. “They come from a school of so-called professional directors who have found a way of getting their free lunches without having to make any tough decisions and get their egos scratched at the same time. If the board needs specialist advice or knowledge, it’s not hard to buy.” Another of Dampney’s resolutions wants former Fonterra farmer-elected directors to be allowed to serve as appointed directors after a stand down period. He says there are some very good directors and shareholders who in the past have resigned “because of things that have happened”. Dampney’s final resolution wants the independent assessment panel that vets director applicants and provides a report to shareholders to be scrapped. He says Fonterra shareholders are reasonably intelligent and can make up their own minds and sort the wheat from the chaff. “We do not need Fonterra telling us who to vote for via their so-called independent panel.” However, in the notice of meeting to shareholders, the board says it doesn’t wish to change the current balance between elected directors and appointed directors. It claims that appointed directors cur-
rently fulfil several key roles on the board. “Only having two would significantly increase their
workload and potentially risk Fonterra being unable to attract and desirable candidates.”
Fonterra farmer Richard Dampney claims there is “a serious disconnect” between the co-op’s farmer shareholders and its board.
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RURAL NEWS // OCTOBER 24, 2023
NEWS 11
Watch out for whiplash! LEO ARGENT
‘EL NINO has officially arrived.’ That’s how Rabobank’s October agribusiness report begins, on the back of NIWA’s weather reports for September. This has seen RaboResearch lower its milk production forecast from the big seven milk export regions to a mere 0.4% growth in output. However, it also sees a possible whiplash in milk prices growing as demand resurgence potentially outstrips milk output, leading to a shortage of milk and providing a bullish run into 2024. Following beef prices tracking upwards in August after slipping in July, the banks says the North Island bull price is tracking for a slight lift above the five year average by the end of the month. In the US, higher domestic lean beef pricings as well as lower inventory are anticipated to provide positive support for imported NZ product over the coming weeks. While YOY shipments to China fell by 40%, this is mostly offset by much higher export volumes (+118%) and values (+80%) to the US.
Lamb prices generally follow on from August; that is to say, historically low but stable. While China remains our top market with 50% of total lamb exports, the value of shipments has plunged 25% year-on-year. However, demand from other markets is stronger than this point last year, with exports to the UK and US higher yearon-year for volume and value. On the other hand, Rabobank sees some indications showing that volumes may be starting to move again in the Chinese market. The report says the bank’s prediction that August’s surge in fertiliser prices was only a temporary price correction has been borne out by the drop in Middle East reference for urea dropping 2.5% and Canadian potash steadying. Meanwhile, it says Chinese price of herbicides, fungicides and insecticides have dropped 30% YOY, and next season is likely to have a better cost structure for agrichemicals and fertilisers. Rabobank says with Q2 growth exceeding expectations and a revised result for Q1 bringing it out of the negative, com-
bined with a weak currency and rising global energy prices, make a much greater likelihood of a rise in the official cash rate in the near future.
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RURAL NEWS // OCTOBER 24, 2023
12 MARKETS & TRENDS
global agribusiness research analysts sharing market outlooks
Rabobank supports clients from farm to fork in
40
COUNTRIES
100 000
farmers to connect Content supplied by Rabobank - Growing a Better New Zealand Together with worldwide ,
Dairy
NEW ZEALAND milk production is shaping up for another below-average peak this season. Milk flows for the first three months of the 2023/24 season show production is almost 2% behind on a tonnage basis, driven by lower North Island collections. China’s dairy demand recovery has not, to date,
offset strong domestic milk production growth. RaboResearch anticipate milk supply growth will slow over the remainder of this year and into next, but a complete market rebalance is still a while off. Slowing global milk production will eventually match the tepid demand growth noted in most regions, preventing
12630
Here comes the dry! further price declines.
Beef
THE NORTH Island bull price continued tracking in line with historical averages for September 2023, with a slight lift above the five-year average emerging by the end of the month. Prices rose from NZ$5.80/kg cwt in late August 2023 to NZ$6.00/
kg cwt by late September 2023, in line with the normal price movements at this time of year. Bull production is down 5% for the seasonto-date (through early September 2023). Cow slaughter is up 4%, with a noticeable 10% increase
in South Island cow slaughter, season-to-date. Heifer slaughter is also higher by 2%, while steer slaughter remains steady.
Sheepmeat
WITH ONGOING high volumes of Australian lambs in the global
market and continued soft demand, prices are expected to continue moving sideways. South Island lamb prices continued to track sideways through September 2023 at NZ$6.90/ kg cwt. North Island prices saw a slight tick
up later in the month to shift the needle back to NZ$7.00/kg cwt – up from NZ$6.95/kg cwt. China remains our top market, demanding 50% of total New Zealand exports in August, just 3% lower than this time last year.
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usiness ysts et outlooks
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RURAL NEWS // OCTOBER 24, 2023
MARKETS & TRENDS 13
COUNTRIES
Content supplied by Rabobank - Growing a Better New Zealand Together paring a basket of herbicides, fungicides, and insecticides, Chinese prices dropped by 30% YOY. This already can be seen at the farmgate level, especially for more in-demand products like glyphosate. The good news is that there is more to come on the consumer level, and next season should have a much better cost structure, at least for fertilisers and agrochemicals.
However, the value of shipments to China plummeted by 25% YOY – proving the impact of this price-setting market. Demand from other key markets remains stronger than this time last year, with respective exports to the US and the UK both significantly higher year-onyear for volume (+28% and +50%) and value (+22% and +20%).
Farm inputs
AS EXPECTED, the
fertiliser price hike in August was just a price correction within a bigger adjustment of global supply and demand. Month-over-month, the Middle East reference for urea dropped 2.5%, Morocco DAP showed a positive 4.5%, and Canadian potash was virtually steady. The downside for farm inputs is coming from stronger petroleum prices and a weaker Australian dollar. The agrochemical
front is mirroring the fertiliser market but with a substantial lag. Com-
Interest and exchange rates
THE NEW Zealand dollar ended September a little
over USc 59.5, which is pretty much where it began. The currency had a monthly trading range of USc 1.5 that saw a low of NZ$/US$ 0.5850 early in the month and a relief rally to finish. September did bring some good news for the economy. The Q2 national accounts released on 21 September showed that growth for the quarter dramatically exceeded expectations, coming in at 0.9% versus a consensus forecast of 0.4%. What’s more, the neg-
ative result for Q1 was revised up to zero and the -0.7% recorded in Q4 of last year was revised up to -0.5%. Faster-than-expected growth can be a doubleedged sword, though. The strong GDP figures, in combination with the weak currency and rising energy prices around the world, have seen the implied probability of further increases in the OCR. That means that markets have now
fully priced in another lift in the OCR. Although the RBNZ chose to leave rates unchanged in October. Futures markets recording a higher probability of rate hikes doesn’t necessarily mean that those hikes will eventuate (we have not changed our forecast that 5.5% is the top of the cycle), but it does suggest that the risk is increasing. @rural_news facebook.com/ruralnews
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RURAL NEWS // OCTOBER 24, 2023
14 OPINION EDITORIAL
EDNA
What next?
AS PREDICTED there was a definite mood for change in rural and provincial New Zealand at this year’s election. All of the Labour MPs who previously occupied provincial seats were sent packing. Electorates like Rangitata, Wairarapa, Northland, Tukituki, Napier all turned blue. Meanwhile, National held seats like Southland, Waitaki, Taranaki King Country, Rangitikei and Waikato all saw massive increases in both the electorate and party vote for the National Party. No clearer message could have been sent to the outgoing Labour Government by rural NZ than Damien O’Connor’s loss of West Coast/ Tasman. The West Coast was the birthplace of the Labour Party and O’Connor has basically had a mortgage on the seat for 30 years. The blue wave in rural and regional NZ should not have been a surprise (with the exception of the political pundits and media who seem completely out of touch) as the majority of farmers and rural people rated the outgoing Labour Government as one of the worst the primary sector has ever had to deal with. New National MPs with farming backgrounds include Miles Anderson, Mike Butterick, Dana Kirkpatrick, David McLeod, Grant McCallum and Suze Redmayne. There are several others in National and its potential coalition parties with strong farming connections – including ACT’s Andrew Hoggard and NZ First’s Mark Patterson. But what will the election of new farmer friendly MPs mean for rural NZ? Many will hope they will at least bring a more farmer-centric view to government policies directed at the rural sector. However, it will take time for the new administration to unravel the previous government’s and implement its own policies. Farmers will be looking for changes to freshwater, biodiversity and environmental rules foisted on them by Labour. They will also want some clarity around what shape and form any methane emissions pricing will look like. With farmer confidence at a record low, the change of government will at least offer many a slight glimmer of hope for the future. However, any immediate celebration should be tempered by the old saying that states: “The impossible we do immediately, however miracles take a little longer!”
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
“No Edna! – This is not the track the Nats want us back on!”
THE HOUND Big job!
Your old mate reckons the new Government has a big turnaround job in getting farmers feeling confident again. According to the latest Rabobank Rural Confidence survey — completed late last month — farmer confidence now sits at -72% and is the lowest in the 20-year history of the survey, eclipsing the previous record low of -71% recorded in quarter four of last year. The bank says a swathe of farmer concerns contributed to record low sentiment, with lower commodity prices now emerging as another source of farmer anxiety. With feelings like this in the rural community it is no wonder so many rural and provincial seats turned blue at the recent election. It is obvious the electoral demise of outgoing Agriculture Minister Damien O’Connor and his former cabinet colleagues – such as David Parker and James Shaw – will not be mourned by rural NZ.
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Full of it!
The Hound has always viewed multi-national political activist group Greenpeace as full of bovine excrement. And its reaction to the recent Queenstown water cryptosporidiosis outbreak only goes to prove it. When the outbreak was first announced, Greenpeace head of (mis-?) communications Nick Young falsely tweeted: “What’s the bet that Queenstown’s gastro outbreak was caused by farm animal faeces contaminating water supplies?” However, ‘Lying Nick’ was proven to be lying again when Te Whata Ora confirmed the outbreak was due to human faeces and not livestock. As one witty respondent replied to Young’s false tweet: “What’s the bet it was Nicks’ mum washing Nick’s undies in the lake last week contaminating the water supply.” Which the Hound reckons would be highly likely as it appears both Young and Greenpeace are clearly full of s$%t!
PRODUCTION: Dave Ferguson ................... Ph 027 272 5372 davef@ruralnews.co.nz Becky Williams ......................Ph 021 100 4381 beckyw@ruralnews.co.nz REPORTERS: Sudesh Kissun ........................ Ph 021 963 177 sudeshk@ruralnews.co.nz Peter Burke ........................... Ph 021 224 2184 peterb@ruralnews.co.nz MACHINERY EDITOR: Mark Daniel ..............................Ph 021 906 723 markd@ruralnews.co.nz
Want to share your opinion or gossip with the Hound? Send your emails to: hound@ruralnews.co.nz
Out to pasture?
A mate of yours truly wonders if outgoing Agriculture Minister Damien O’Connor will now call it a day on his 30-year long political career. Not only did O’Connor’s Labour Party take a drubbing on election night, but he also lost his West Coast seat to the infamously labelled ‘F#$%ing useless’ Maureen Pugh. While O’Connor got back into parliament, courtesy of his high list placing, one would have to wonder if the 63-year old fancies a likely (at least) six years in opposition before getting back into government again. That would see him nearing 70 years of age and frankly well past his use-by date. As a list MP, O’Connor can depart from parliament without triggering an expensive by-election and the next ‘union flunky or gay gagglist’ (to paraphrase his own words) from the Labour list can take his place.
Gumboot diplomacy!
Your canine crusader notes that the new parliament will have a fresh array of new MPs from farming backgrounds taking up seats in the nation’s capital. The Nats have the likes of Miles Anderson, Mike Butterick, Suze Redmayne and Grant McCullum joining their ranks. Meanwhile, Act sees the addition of former Feds president Andrew Hoggard to their caucus and NZ First sees the return of Mark Patterson. Many of these MPs have close ties to Federated Farmers, including the aforementioned Hoggard, Anderson and Butterick from National and NZ First’s Patterson. That should make a nice change for the farmer lobby in having a few friends and ex-colleagues in the halls of power.
AUCKLAND SALES REPRESENTATIVE: Stephen Pollard ......................... Ph 021 963 166 stephenp@ruralnews.co.nz
WELLINGTON SALES REPRESENTATIVE: Ron Mackay ................................. Ph 021 453 914 ronm@ruralnews.co.nz
WAIKATO SALES REPRESENTATIVE: Lisa Wise .................................. Ph 027 369 9218 lisaw@ruralnews.co.nz
SOUTH ISLAND SALES REPRESENTATIVE: Kaye Sutherland .......................Ph 021 221 1994 kayes@ruralnews.co.nz
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Rural News is published by Rural News Group Ltd. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of staff, management or directors of Rural News Group Ltd.
RURAL NEWS // OCTOBER 24, 2023
OPINION 15
Time for rural bank inquiry RICHARD McINTYRE
FARMERS ARE doing it tough right now with rising costs, bad weather and falling payouts. The last thing they want to be worrying about is whether they’re getting a fair deal from their bank. The Commerce Commission is currently carrying out a market study into personal banking, looking at the levels of competition, what is or isn’t working well and how things could be improved, but the terms of reference exclude rural business banking. Farmers and rural communities deserve to have the same assurances that their banking systems are operating in a fair and proper way, so Federated Farmers is calling for the Government to support an independent inquiry into rural banking. Federated Farmers’ latest Banking Survey, carried out in May 2023, showed a noticeable upswing in the number of farmers who felt they had come under undue pressure from their bank. The survey also indicated that farm interest rates had increased sharply, with an average interest rate of 7.84% in May 2023, up 4% from a low of 3.79% in May 2021. The average overdraft interest rate was 10.07% in May 2023, up 3.79% from a low 6.28% in November 2021. Those numbers will only have increased since May as interest rates have continued to climb, economic conditions have quickly deteriorated, and many farmers have rolled off their fixed rates. Kiwi farmers are currently carrying around $63 billion of debt, so a 4% increase in interest rates means there will be $2.5 billion fewer dollars circulating in our rural economy. Farmers are also noticing that banks charge much higher interest rates for farm lending than home loans. How-
ever, there seems to be no clear explanation why that’s the case. We want to know if higher interest rates for farmers are increasing banks’ profitability or cross-subsidising a much more competitive market for home loans. Other emerging issues that an inquiry could look into include branch closures and new bank environmental requirements. Branch closures in rural communities really impact a farmer’s ability to access the services they need from their bank. Farmers are running large and complex businesses and will often need to speak to their local bank manager faceto-face, particular in the tough times we are currently farming through. A strong relationship and access to working capital is absolutely critical. Feds also have significant concerns about whether New Zealand banks’ participation in sustainability initiatives like the Net-Zero Banking Alliance are reducing competition in agricultural banking. Under this alliance, banks have collectively agreed lending strategies including setting 2030 targets for reducing the level of emissions associated with lending. The BNZ is the first bank to announce a target in New Zealand. It wants to see a reduction in greenhouse gas emissions from dairy farming by 11% in the next six years. This banking alliance raises some very serious questions about whether our banks are acting in a truly competitive manner. Or if the joint commitment is effectively banks collaborating on a joint lending strategy. Individual companies are free to put in place whatever requirements they like. However, we have a real issue when the main competitors are collectively setting requirements that leave farmers without choices. There is potential for
the Commerce Commission to consider what pre-competitive commitments banks in New Zealand can make before consumers rights to a
competitive market place are compromised. • Richard McIntrye is Federated Farmers domestic commerce and competition spokesperson
Feds Richard McIntyre says the rural lobby is calling for the new Government to support an independent inquiry into rural banking.
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*Finance to approved personal applicants. Weekly repayments are the equivalent of $58.90 per week, based on $9,099.00 incl.GST. It is indicative only and is calculated based on a fixed interest rate of 9.95% p.a. over a 3-year loan term on Yamaha Motor Finance New Zealand’s (YMFNZ) consumer contract standard terms and conditions. Credit criteria, fee, charges and conditions apply including a 20% deposit, $325 Application fee and $325 Dealer Administration Fee, and $8.05 PPSR fee. Offer available from participating authorised Yamaha dealers while stocks last from 10/08/2023 until 10/02/2024. Units must be warranty registered and finance contracts must settle on or before 10/02/2024. This finance payment is available on advertised models only. Not available in conjunction with other offers. Finance is provided by Yamaha Motor Finance New Zealand Ltd. (YMF) NZBN 9429036270798 FSP 9622.
RURAL NEWS // OCTOBER 24, 2023
16 OPINION
Lowdown on low methane sheep DAN BRIER
MORE THAN 100 farmers, rural professionals and international researchers recently took part in a webinar about breeding toward lowmethane genetics as part of Beef + Lamb New Zealand’s Cool Sheep programme. The project, funded by the Ministry for Primary Industries (MPI) and supported by B+LNZ and AgResearch, is a world-first project. It aims to give every sheep farmer in New Zealand the opportunity to use genetic selection to reduce greenhouse gas emissions for our national flock. Led by senior scientist at AgResearch Dr Suzanne Rowe and Dr Jason Archer, Genetics Specialist - Livestock for B+LNZ Genetics, the
webinar reflected the significant interest in the programme, both among New Zealand farmers and globally. In addition to the insights about low methane genetics, farmers also learnt more about using the nProve tool to access genetic information for their farm business. Ultimately, the goal is to provide farmers with the tools they are seeking to support them to adapt to these changing global expectations. It is accelerating the identification of low methane farms in the breeding sector to increase the supply of rams to lower sheep methane in the national flock. Despite participation in this programme being voluntary, the response from many farmers has been enthusiastic. We are over-subscribed with
farmers who want to use the portable accumulation chambers (PACs) to measure the methane emissions from their animals. However, we also recognise there may be confusion among some farmers about the programme or misconceptions that other beneficial traits could be compromised for low methane. On the webinar, Rowe and Archer dispelled several of the myths that have been circulating about low methane sheep. Rowe presented both peer-reviewed and new science to help farmers understand what the impact of using low methane rams on their farms could be. Farmers and other attendees had the opportunity to ask questions of the science team on
Dan Brier says breeding low-methane genetics is part of Beef + Lamb New Zealand’s Cool Sheep programme.
the webinar. A number of those were about methane measurement metrics and policy, outside the scope of the Cool Sheep Programme. Rowe made the telling analogy that discussing the methane metrics in this context was like talking about whether to measure a
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car’s speed by comparing fuel. A faster car is faster and a lower methane sheep produces less methane – whatever the metric. Archer described and answered questions on the Cool Sheep Programme’s environmental selection index. This will
allow farmers to select for low methane producing sheep as part of a balance breeding programme. Some farmers have described selecting only for low methane, but Beef + Lamb New Zealand Genetics and most geneticists do not recommend that. We learnt that low methane sheep are leaner and have a slightly different fatty acid profile in their milk and fat. They have less carcase fat and an improved dressing out percentage, while high methane sheep have slightly higher Body Condition Scores (BCS). Lower methane sheep grow more wool and low methane sheep were also shown to have larger intakes than high methane animals. The difference in methane emissions within a flock between
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low and high methane sheep has also been found to remain consistent regardless of diet, region or weather. The ranking of animals stay the same. Sheep bred for low methane emissions as part of selection lines are also proving to perform economically better than sheep bred for high methane emissions. When compared using the New Zealand Maternal Worth (NZMW) index, the low methane selection line is around $12 more profitable than the high selection line. As more breeding flocks are measured for methane, B+LNZ Genetics and AgResearch will continue to monitor the impacts on commercial breeding flocks. • Dan Brier is general manager of Beef + Lamb New Zealand Genetics
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RURAL NEWS // OCTOBER 24, 2023
AGRIBUSINESS 17
Another tough year ahead! DAVID ANDERSON
BEEF + Lamb New Zealand warns that the country’s meat producers face another tough year as demand for sheep and beef recovers slightly, but not enough to outweigh increases in onfarm costs. This comes following the release of the industry body’s New Season Outlook 2023-24 forecasts, which show farm profitability at a 15-year low. “It’s going to be another tough year for farmers,” says B+LNZ’s chief economist Andrew Burtt. “Farm-gate prices are expected to be similar to last season but increasing costs, driven by inflation and high interest rates, will continue to squeeze farm profitability.” B+LNZ is forecasting farm profitability to
fall by 31% for the 202324 year, which follows a decline of 32% in 202223, meaning profits for farmers have more than halved in two years. “This is a 15-year low, when you take inflation into account,” Burtt adds. The report says demand in key markets is also likely to be soft as economies remain weak and China’s economic recovery remains uncertain. B+LNZ is also warning that competition from Australia may also add to lower prices for NZ producers. “There are further short-term downside risks on these forecasts, should China not recover as quickly as forecast, and if Australia suffers a strong drought its red meat exports would be higher than expected in New Zealand’s key markets,” Burtt adds. He says while the
B+LNZ is warning that some sheep and beef farmers are unlikely to make a profit this coming season.
red meat sector faces a challenging year, this is balanced by strong longer-term fundamentals. “We expect an improvement as the economies of our key
markets recover. The global population and demand for protein is expected to continue to grow and therefore the fundamentals for the sector remain sound.”
However, Burtt warns that some farmers are unlikely to make a profit this coming season. “The sector has gone through turbulent times before, along with our
processing and exporting companies, and while farmers are resilient, these are very challenging times.” The report shows that farm profit before tax
for 2023-24 is forecast to average $88,600 per farm. However, after adjusting for inflation, this is equivalent to $54,800 per farm in 2004-05 terms, a 15-year low and 25% lower than in 2004-05. “We expect profitability in all regions and farm classes will decline with sheep-dominant areas most affected, as lamb prices are likely to be flat for the coming season while beef prices are relatively good.” B+LNZ says that money management is going to be critical for farmers this year. It advises farmers to ensure that every farm input is driving productivity and profitability, and for them to work proactively with bankers and accountants to best manage any debt and tax obligations. @rural_news facebook.com/ruralnews
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RURAL NEWS // OCTOBER 24, 2023
18 MANAGEMENT
Sheep milking wool’s future? LONG-TIME CANTERBURY sheep farmer and woolgrower Joe Catherwood has diversified into sheep milking. Catherwood farms 320 hectares at Charing Cross, Central Canterbury. Until a few years ago the farm only carried sheep. However, when irrigation from the Central Plains Water scheme became available, it also began growing crops and now milking sheep. “When the irrigation scheme was built we needed to pay for it, so I needed to increase my returns,” Catherwood explained. “I’ve always kept a few pet lambs, and in 2017 started milking some of my ewes, freezing their milk to feed to the following year’s pet lambs.” Originally the plan was to milk 50 odd sheep,
but seven years later his mob of milking ewes now numbers almost 1000. For the last three seasons he has been supplying Kirwee based Sheep Milk NZ. “What we do is still conventional farming,” Catherwood adds. “I want ewes to raise fat lambs, big enough to send away in November. We aim to gross around $500 per ewe: producing 1.5 lambs each, feed and wean the lambs, then we milk the ewes for around 100 days to increase those returns.” Unlike many other sheep milk operations, Catherwood leaves his lambs with the ewes until weaned, or heavy enough to kill at 17 to 18 kilograms. “Some farmers take the lambs off after three days, giving the ewes
Canterbury sheep farmer and woolgrower Joe Catherwood has diversified into sheep milking.
around 200 days in milk,” he says. “If you hand rear the lambs, you have to buy in milk powder, then you struggle to put enough condition on your lambs to send them away by December. With the milk genetics in the ewes, rais-
ing robust lambs is also more difficult. I prefer not to complicate it.” Experimenting with genetics has helped increase Catherwood’s milk production. “East Friesian is the standard breed for milking sheep overseas,
though they are scatty and not that easy to deal with,” he adds. “I have created a Catherwood Cross by putting some Texel, Romney, Poll Dorset and Composite breeds across the flock to give them a bit more condition.”
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His Catherwood Cross milking ewes have good udder conformation, are hardy and produce a fat lamb. He believes that an easy milking sheep needs a bare belly, a bare udder and a bare rear end. However, Catherwood warns that going too far with the shedding genetics can compromise the wool. “We still want wool, though we also like the sheep nice and clean underneath, making them easier to milk.” To help milk his flock, Catherwood calls in LM, who also owns Almae Sheep Stud, plus his farm manager Dudley Cridge. Both are keen advocates of sheep milk. “Farming sheep is gentler on the environment than a dairy farm, with less nitrogen leeching and greenhouse gas emis-
sions,” LM explains. “When a sheep pees, it doesn’t create a urine patch the way a cow does, so unlike a dairy cow, the nitrogen doesn’t go through to the ground water. One litre of sheep milk accounts for around one third of the carbon footprint of the same quantity of cow milk.” She adds that AgResearch research has found that sheep genetics associated with low methane production correspond to higher productivity for both meat and milk. Scanning suggests this is due to the composition of the rumen in animals with those favourable genetics, so you can breed for a better producing sheep that also has a lower environmental impact. @rural_news facebook.com/ruralnews
RURAL NEWS // OCTOBER 24, 2023
ANIMAL HEALTH 19
An around the world approach to fighting drench resistance Beef + Lamb New Zealand is seeking global partnerships as it works to revolutionise internal parasite management in the face of increasingly widespread drench resistance. ON THE back of a workshop organised by B+LNZ Research, the organisation has invited global cohorts to establish a collaborative partnership. The intent is to give farmers the tools and confidence to manage internal parasites (worms) in new and sustainable ways. The initiative is being led by Dr Cara Brosnahan and Dr Suzi Keeling – both members of B+LNZ’s Research team. The pair recognise the potential for a global partnership to maximise impact. “This partnership will enhance innovative and varied perspectives to deliver tangible outcomes for livestock farmers at a global scale,” Keeling explains. “The pooling of resources, funding and expertise will help realise the vision of sustainable and lasting worm management.” Internal parasites, or worms, cost the livestock industries in New Zealand, Australia and Europe over $4 billion annually in lost production. With no new drench products being developed, farmers will no
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longer be able to rely on drenches as their primary worm control strategy. Brosnahan says farmers will increasingly rely on a farm systems approach that will incorporate a range of tools and management strategies – some of which are yet-to-be developed. She says new systems for effective and sustainable management need to be developed as soon as possible as they will take time to implement. “Complex and innovative solutions will require collaborative approaches that integrate a number of different disciplines.” Keeling says a cooperative network of farmers, rural professionals, animal health companies, rural service businesses and suppliers will need to be part of the solution by supporting farmers as they change the way they manage worms. B+LNZ Research is proposing a threepronged approach to its vision of sustainable, long-term worm management. The first is the promotion of best practice to prolong the efficacy of drench options. It says some farmers have been
successful in minimising or delaying the onset of drench resistance and sharing their strategies will encourage other farmers to adopt best practice worm management. The development of a suite of new tools is the second part of B+LNZ’s approach. Brosnahan explains that these will be developed in partnership with groups across the livestock sector including farmers, rural professionals, research organisations and government. These tools will cover a range of approaches such as genetics, advancements in diagnostics and therapeutic options, as well as improvements in feed management and composition, enhanced environmental management, including biocontrol and pasture treatments, and the development of models to better understand the interactions between pest, host and pasture. The third part is the development of new systems for worm control which would bring together all available tools and knowledge.
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Internal parasites, or worms, cost the livestock industries in New Zealand, Australia and Europe over $4 billion annually in lost production.
“Because the systems don’t rely on a single point of control,
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tools to manage worms in a way that is specific to their farming situation.”
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RURAL NEWS // OCTOBER 24, 2023
20 MACHINERY & PRODUCTS
AGCO to take majority stake in Trimble MARK DANIEL markd@ruralnews.co.nz
GLOBAL AGRICULTURAL machinery manufacturer AGCO is set to become a majority owner of Trimble’s precision agriculture business. A recently announced joint venture agreement between the two companies, will see AGCO pay Trimble US$2 billion for an 85% stake in Trimble. Meanwhile, JCA Technologies, the Manitoba-based autonomous technology company will also be brought under the joint venture umbrella. The transaction is said to create the premier mixed-fleet precision ag business in the world and help accelerate AGCO’s strategic transformation. “This deal significantly enhances AGCO’s technology stack with disruptive technologies that cover every aspect of the crop cycle, which
The plan is to leverage multi-channel access across Trimble Ag, and AGCO OEMs, which include Fendt, Challenger, Massey, Valtra, and Gleaner.
ultimately helps us better serve farmers no matter what brand they use,” AGCO’s chairman and chief executive Eric Hansotia says. The two companies say they plan to leverage multi-channel access across Trimble Ag, and AGCO OEMs, which include Fendt, Challenger, Massey, Valtra, and Gleaner, other OEM customers and precision planting dealers.
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purchase price for AGCO’s 85% ownership in the Trimble Ag business represents an implied enterprise value of approximately $2.35 billion and works out to a transaction multiple of approximately 13.8x based on 2023MY likely EBITDA of approximately $170 million. The transaction is not subject to any financing conditions, with both companies saying they are expecting to close the deal in the first half of 2024.
“The exclusive access to Trimble Ag products, combined with AGCO’s existing precision ag offerings will also help accelerate AGCO’s growth ambitions around autonomy, precision spraying, connected farming, data management and sustainability, and result in us being even more farmer focused,” Hansotia adds. “Farmers today are
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THE NEW Holland T4 Electric Power utility tractor will be making its European debut at November’s Agritechnica 2023. This follows it initial introduction at CNHI’s Tech Day in the United States in December 2022. It showcases New Holland and CNH Industrial’s most recent development in their strategic plan for electrification, as a BEV – battery electric vehicle. This is the first zero-emission, light utility tractor with no internal combustion engine. The T4 Electric Power joins the New Holland T7 Methane Power LNG and T6 Methane Power tractors, expanding a portfolio of zero carbon tractor solutions. Developed by CNH Industrial’s Engineering teams in the US and Italy, aided by partnership with Monarch Tractor in California. The project prioritises customer experience, extended runtime and outstanding performance. Here in New Zealand, a Monarch trac-
tor was recently commissioned at the Cromwell Forest Lodge cherry orchard. The T4 Electric Power is said to be ideally suited to mixed farm, livestock, municipality, orchard and specialty applications. It offers 120hp peak power, maximum torque of 440Nm and a maximum speed of 40 km/h. Described as a utility tractor, the machine is 100% compatible with all conventional implements in the range, with up to a full day’s run time – depending on workload and a recharge time with fast charging systems of just one hour. The tractor can also be used as a backup power source for other devices and machines and can provide energy for implements. Of course, noise and vibration are reduced considerably, helping to meet increasingly stringent municipal noise regulations. This allows its use in night-time operations or working in indoor or covered environments.
The T4 Electric Power also delivers several autonomous features designed to reduce tractor cost of ownership, alongside assisting operators during driving and improving overall application performance and quality. The Smart Roof consists of a 360-degree awareness system that integrates sensors, cameras and control units to detect and avoid obstacles. This is able to synchronize multiple machines and check the status of processes. Follow Me Mode sees the tractor follow the operator when they outside the cab, such as passing through gates or feeding cattle. Likewise, the Shadow Mode enables the operator to guide the machine by gestures from outside the cab – avoiding the need to climb in and out repeatedly. With real-time Live View, farmers can oversee a fleet of these tractors via their mobile devices. – Mark Daniel
RURAL NEWS // OCTOBER 24, 2023
MACHINERY & PRODUCTS 21
Turn automation for JD combines MARK DANIEL markd@ruralnews.co.nz
THE LATEST round of software updates for Gen 4 Displays and the John Deere Operations Center. This will allow farmers to get more from their equipment, with the introduction of turn automation for combine harvesters. Combine AutoTrac Turn Automation is compatible with Gen 4 Displays and the new G5 Display on X9, S700 and even S600 combines – which were introduced in 2012. John Deere production system manager Ben Kelly says automating the headland turns makes operating the harvester easier and more precise.
John Deere claims that automating the headland turns makes operating the harvester easier and more precise.
“Customers will see consistent, repeated and optimised end turns across the paddock, while the operator will benefit from less stress and fatigue throughout the day.” Noting that ATTA allows operators to focus their attention on critical harvester operational
tasks, like grain loss or grain sample. Kelly says the system delivers clear safety and productivity improvements, but also allows another step closer down the road to full autonomy and in doing so prepares customers for the future. AutoTrac Turn Automation for combine har-
vesters is part of the 23-2 Display software bundle that was released in late 2022, using technology to automate the combine turns at the headland. ATTA is compatible with the Gen 4 family display with Automation 4.0, or G5 family display with G5 Advanced license. In use, ATTA requires
a field boundary created with either SF3, SF-RTK or RTK level signal accuracy and a boundary headland, which can now be easily created in Operations Center. The system can support multiple harvesters working in the same field to increase overall productivity. This reduces stress,
via three turn types that are pre-planned and automatically executed. ATTA will support U-Turns, Spiral-In or Spiral-Out turns. The spiral in and spiral out turns have been developed to ensure the unload auger is always extended over the harvested row, creating an opening for chaser bins and allowing simple unloading on-the-go. “Turn automation complements the key technology required to enable completely handsfree guidance across the harvest production step in the future,” Kelly explains. “So is well worth adopting and implementing now to be ready to capitalise on full harvest automation in the future.”
Carrier XL cuts a wide swathe Vaderstad has added the new 7.25-metre-wide, XL 725 to its Carrier XL range of disc cultivators.
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TILLAGE, DRILLING and planting specialist Vaderstad has expanded its offering with the addition of the new 7.25-metre-wide, XL 725 to the Carrier XL range of disc cultivators – spanning working widths from 4.25 to 12.25 metres. Carrier XL 725 is available with 510mm diameter TrueCut discs, CrossCutter Discs or the recently introduced CrossCutter Disc Aggressive configurations. To suit different farming needs, the cultivator can be equipped with a wide range of front tools, rear roller/packer options and the small seeder BioDrill 360 unit.
In addition to the new model, the Carrier XL 425-725 family is also being updated with frame enhancements, including a strengthened parallel linkage for the rear packer. To allow easier set-up and guide the operator, all models are now fitted with new visible scales to help operators monitor the overall working depth and the front tool depth. The new Carrier XL 725 also features a new transport height position scale for a safer road transport. The wider models, Carrier XL 625 and Carrier XL 725, can also be equipped with a new
Additional enhancements to the MY 2024 software bundle and John Deere Operations Center Land tool make it easier to set up headlands for paddocks. This creates the foundation needed for the ATTA functions, with users able to manage headlands directly with Operations Center. It also removes the need to create them in the paddock. In addition, operators can now choose “Cart” for the Chaser Bin profile name. When “Cart” is selected as the profile name, the “Type of Equipment” and “Controller” fields will automatically populate to speed setup time. @rural_news facebook.com/ruralnews
wheel axle, as well as 560/45 R22.5 wheels, approved for 40km/h road transport. “Carrier XL is a well-known, versatile machine concept, that can help the farmer save passes, decreases machine costs per hectare and provides the best start possible for the coming crop, says Wolfram Hastolz, director tillage product management, at Väderstad. “The new Carrier XL 725 will slot well into the product range.” Carrier XL 725 is now available for order, with delivery from early 2024. – Mark Daniel
With payments spread over 2 years, no servicing costs for 12 months plus a class-leading 3-year warranty, we’re helping you into a new KingQuad with as little initial outlay as possible.
T&Cs: The 12 month free service offer is available to the first 50 new LT-A500X/XP and LT-A750XP KingQuad models purchased from 1/9/23 – 31/10/23 and limited to three services within 12months (whichever occurs first) of purchase in accordance with the maintenance guidelines set by Suzuki NZ. Any repairs, unscheduled maintenance, and collection/delivery, or cleaning are not included. Finance offer is based on a 7.99% p.a. interest rate fixed over a 24 month loan term and on the following payments; an up-front deposit of one-third (1/3) of the RRP, the cost of any accessories fitted, and the fees set out below; a further payment of one-third (1/3) of the RRP to be paid on the 12 month loan anniversary; and; a final payment of one-third (1/3) of the RRP to be paid on the 24 month loan anniversary. The 7.99% p.a. interest is fixed for the term of the loan. A PPSR fee of $10.35, a monthly maintenance fee of $2, a UDC loan fee of $130 and a $300 dealer origination fee will apply. The loan is provided by UDC Finance Limited. UDC Finance Limited’s lending criteria, standard terms and conditions apply. This offer cannot be used in conjunction with any other discounts or offers, while stock lasts.*
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RURAL NEWS // OCTOBER 24, 2023
22 MACHINERY & PRODUCTS / RURAL TRADER
App helps optimise harvest profitability MARK DANIEL markd@ruralnews.co.nz
A SIMPLE $22 app can save grain growers tens of thousands of dollars each year by optimising the efficiency and productivity of all makes and models of combine harvesters. HarvestCalc quickly measures grain loss and determines its economic impact based on crop yield, prices, operating speed and operating costs. Operators can use this information to adjust and test the threshing and separation settings on their combine harvester. The app was developed by southern NSW harvesting contractor Rod Gribble.
Southern NSW harvesting contractor Rod Gribble developed the HarvestCalc app.
“Every combine harvester loses some grain within the machine itself or across the header,” he explains. “Machine losses at 1% for cereals and 2.5 to 3% in canola/oilseeds are generally regarded as acceptable – yet another
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1 or 2 % can also be lost across the header.” With a balance needed to complete the harvest quickly and minimise losses, Gribble says, as a rule of thumb, grain loss increases with throughput, operating speed and crop yield. “Conversely, if you go slower, grain loss will decrease but your harvesting costs are going to increase.” He says the goal is to determine the ‘sweet spot’ between harvesting efficiency and productivity under individual conditions. HarvestCalc is said to offer the ability to monitor grain loss, calculate
its economic impact and then “tweak” the settings of the combine harvester. The system uses an app that works without a mobile phone service and three grain collection trays. Set-up requires the operator to enter the make and model of the harvester, the header width, separator width and operating cost per hour. In the paddock, the three collection trays are placed across the cutting width – including one under the machine itself, at least 50 metres ahead
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SCHEDULED FOR release at November’s Agritechnica event in Hanover, Kuhn – like many other cultivation and sprayer specialists – will unveil its first mechanical hoes. This is in response to increasingly tougher regulations around herbicide use. Rumoured to be available in just two ranges called Rowliner and Tineliner. The former, as the name suggests, is a row-crop cultivator and will be available in six
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The app monitors grain loss calculates its economic impact and then “tweaks” the settings of the combine harvester.
ing the grains left in the trays. From here, the operator enters the crop type, type of test tray, whether spreading or windrowing, spreading width and average speed. Then, the number or weight of the grains found in the separator tray and the header loss trays, alongside crop yield is entered and the calculation performed. HarvestCalc will then automatically calculate grain loss, expressed as a percentage of yield, kg/ ha or $/ha. It will also work out harvesting costs – expressed as $/tonne, tonnes/hour or $/ha. The process should then be repeated at least three times or as necessary to check the effectiveness of any adjustments made to operating speed or machine settings. The first version of the HarvestCalc app was developed back in 2010. It was redesigned in 2020 and has gone on to be downloaded more than 1300 times.
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to 12 row configurations. While the latter, a tined weeder, will be available in working widths from 6-12 metres. Industry sources suggest they will be joined by the Starliner rotary hoes sometime in 2025. In 2022 at the company’s headquarters in France, journalists asked about the likelihood of the company adding mechanical hoes to its portfolio. They were told by senior management that the company was monitoring a market it deemed to
be interesting. However, it indicated that, size wise, it was limited worldwide. However, it appears that there has been a significant change of heart in the matter, no doubt driven by the likes of Amazone, Kverneland, Lemken, Pottinger and Vaderstad jumping on the bandwagon. But it remains to be seen whether the Kuhn product is developed in-house or outsourced. – Mark Daniel
www.organicstud.co.nz • Email: tim@organicstud.nz Phone Tim & Helen Gow 027-225 5283
SPRAY UNITS
30m Hose Reel c/w Spot 300 Spray Gun 650kg Break Strength Strapping
TRAILED 12V SPRAYER
• •
www.mckeeplastics.co.nz
PETROL DECK SPRAYER
Honda GP200 Motor • 40 Bar/580 PSI • Flow Rate 41L per min • Comet APS41 Diaphragm Pump •
• 5D Suction Filter • Pressure Regulator & Return System NORTH ISLAND:
SOUTH ISLAND:
23 Mahinui St, Feilding. Ph 06-323 4181
35 Wilkin St, Waimate. Ph 0800 625 826
• •
SIDE BY SIDE/ATV SPRAYERS
Petrol & 12V Trailers available Comes in 200L, 400L & 600L models
Hot dipped Galvanised Trailer
RURAL NEWS // OCTOBER 24, 2023
RURAL TRADER 23 Sizeable rural shed with power and amenities wanted for sculpture work in north Taranaki. Rent or buy.
LATEST STORIES ON www.ruralnews.co.nz
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BREAKING NEWS MARKETS & TRENDS COMPETITIONS MANAGEMENT STORIES MACHINERY REVIEWS AND MUCH MORE...
Ph 027-222 84281
QUADBAR
635
+GST & freight
Proven beyo nd do ubt!
Recommended by Worksafe. ACC subsidy available
“I have no doubt that if I did not have a Quadbar fitted, my accident would have been fatal!” – Rozel Farms
FLY OR LICE PROBLEMS? The magic eye sheepjetter since 1989
Since 1993
Quality construction and options • Get the contractors choice Featuring...
• Incredible chemical economy • Amazing ease 1500+ per hour • Unique self adjusting sides • Environmentally and user friendly • Automatically activated • Proven effective on lice as well as fly • Compatible with all dip chemicals • Accurate, effective application
07 573 8512 | dipping@electrodip.co.nz – www.electrodip.com
ELECTRIC FENCING
TO YOUR DOOR
SAVE TIME AND EFFORT! Trusted name in fencing for over 30 years OUR FULL RANGE ON-LINE Jump on-line or call us... www.taragate.co.nz info@taragate.co.nz 0800 82 72 42
NON SLIP UTE TRAY MAT NO MORE CARGO MOVEMENT!
“The Quadbar saved our employee from significant injuries.” – Colin van der Geest
Fully Escorted Tours New Zealand Rail Experience
Nov 23, 2023, 15 Days Experience three breathtaking rail journeys including the iconic Tranz-Alpine through the Southern Alps. Cruise the splendour of Milford Sound, savour the Earnslaw Steamship ride and dinner at Walter Peak station, explore Stewart Island and delve into Dunedin’s treasures and more.
Japan Blossoms
Mar 14, 2024, 17 Days From Tokyo's bustling streets, to the ancient streets of Kyoto and the stunning Zen gardens of Kanazawa. Join in unforgettable cultural experiences and savour mouth-watering local delicacies. Experience cherry blossoms in full bloom. Immerse yourself in the wonders of Japan!
For a Quadbar, call me, Stuart Davidson, owner of Quadbar NZ, on 021-182 8115. Email sales@quadbar.co.nz or for more info go to www.quadbar.co.nz
Quality Greenhouses Range of models sized 2 metres - 10 metres
Adelaide/Melbourne Rail & River
Apr 24, 2023, 12 Days A classic Australian River and Rail adventure. Enjoy leisurely stopovers in Adelaide and Melbourne. Cruise in style on a Murray River paddle-wheeler for 3 nights, savour a Barossa Valley wine tasting and lunch. 'Live it up' in premium class travel aboard 'The Overland' rail journey from Adelaide to Melbourne.
morrifield CELEBRATING
40 YEARS IN BUSINESS 1980-2020
MORRIFIELD GREENHOUSES
Bonded for Your Protection
PROUD TO BE NEW ZEALAND MADE
Door to Door Service in Auckland Metro Area
Heavy Duty
Made in NZ
In Stock Now
0800 80 85 70
www.burgessmatting.co.nz
Thank you to our Valued Customers for • Easy assembly • NZ made since 1980 your continued support over the years ! • Strong Win! and durable • Grow all year round
Greenhouses
www.morrifield.com
T/F 03 214 4262 E info@morrifield.com
0800 11 60 60 www.travelwiseholidays.co.nz
www.morrifield.com
STOCKS BUFFALO BOOT & RAINWEAR sale ENDS SOON WHILE LAST
175% more crack resistant than normal leather PHONE
9am-5pm
Buffalo Leather
BIB OVERALLS
$145
NEW - WIDER TOE BOX NEW - WIDER STEEL CAP ** NEW - KEVLAR PENETRATION RESISTANT SOLE ** NEW - 250 DEGREE HEAT RESISTANT OUTSOLE NEW - BALL BEARING SPEED LACING NEW - FLEXIBLE RAND NEW - STRONGER OUTSOLE STITCHING NEW - STRONGER MIDSOLE NEW - STRONGER FORESTRY GRADE SHANK (**safety models)
JACKET
valued at $320
$140 $100 valued at $230
valued at $280
$80
LEGGINGS
$70
100% Waterproof Fleece Collar Hood Visor Flexible Acid Resistant
BUY Stitched On Soles
0800 16 00 24 earthwalk.co.nz
Plain Toe or Steel Toe
New Zealand owned & operated
free shipping
Durable Seams
sizes: BOOTS 5 - 13 (NZ)
RAINWEAR XS - 4XL
CULVERT PIPES Made from polyethylene & recycled plastic
www.mckeeplastics.co.nz 300mm x 6 metre ............................. $410 400mm x 6 metre ............................. $515 500mm x 6 metre ............................. $735 600mm x 6 metre ............................. $989 800mm x 6 metre ........................... $1496 1000mm x 6 metre ......................... $2325 1200mm x 6 metre ......................... $3699
•
SOUTH ISLAND 35 Wilkin St, Waimate Ph 0800 625 826
Culvert joiners FREE with pipes on request Water Transport
ALL PRICES INCLUDE G.S.T.
NORTH ISLAND 23 Mahinui St, Feilding Ph 06-323 4181
•
Water Troughs
•
Lightweight, easy to install
Water Storage
Make tons with your new pasture investment
ONF208269NF
You’ve done all the hard yards to get your new pasture in the ground. Don’t let weeds steal your pasture’s potential. Post-Em spray today. “Happy healthy cows make more milk” - Ben, Fonterra farmer from Tokoroa. Contact your local Rural Supplier or Nufarm Territory Manager today, or for more information visit nufarm.co.nz ®Thistrol Plus and ®Baton are registered trademarks of Nufarm Australia Ltd. ®Valdo, ®Dictate, ®Bonza Gold and ®Tribal Gold are registered trademarks of Nufarm Ltd.