AGRIBUSINESS
MACHINERY
Wool group raises $500k.
Bill’s legacy lives.
PAGE 15
PAGE 22
NEWS APEC goes virtual. PAGES 6-7
TO ALL FARMERS, FOR ALL FARMERS JANUARY 26, 2021: ISSUE 718
www.ruralnews.co.nz
Hort sector denied! PETER BURKE peterb@ruralnews.co.nz
MPI HAS turned down a request from the horticulture sector to declare the recent hail and rainstorms, that decimated many orchards around the country and cost growers millions of dollars in lost income, as an
‘adverse event’. HortNZ chairman Barry O’Neil told Rural News that his organisation had written to Agriculture Minister Damien O’Connor asking him to declare the storms an ‘adverse event’. However, HortNZ was told by MPI (Ministry for Primary Industries) that the classification of a medium scale
adverse event is not required. But O’Neill says HortNZ, Apples and Pears NZ and the Kiwifruit Growers organisation have again written to O’Connor, Finance Minister Grant Robertson and Stuart Nash, (who holds the economic development portfolio) asking them to reconsider the earlier decision.
MPI told Rural News that declaring an adverse event would not mean there would be any direct funding for affected growers and that all it would do is free up more funding for the Rural Support Trust (RST). This funding would help growers clean up orchards and assist them work out future options but does not
A taste of the country DAIRY CONVERSION has taken on a whole new meaning for Otaki dairy farmers Stacy and Andrew Faith. The Faiths have converted an old, disused dairy shed on their property to an Airbnb, giving town folk a hands-on insight into country living. The old dairy shed on their property dates back to the 1950s when Andrew’s father used to milk about 60 cows in what was a walkthrough shed, where about five cows could be milked at a time using machines. From the outside, it still looks like a dairy shed and even inside it is dairy farm themed with bar stools made from old tractor seats, towel rails made from disused parts of a water trough. Meanwhile, from the kitchen and lounge guests can see the cows pass by each morning on their way to be milked and they can also go to the milking shed and help with the morning. Those staying at the shed get a real taste of country with milk, eggs and bacon all from the farm. See full story, page 15
compensate them for the loss of their crops. MPI says funding is already available, but if the situation changes, then more would be made available to the RST. O’Neil says he’s heard reports of cherry growers losing 80% or more of their crop, apple orchards devastated and that more than 2 million trays of kiwifruit have been lost. He says crops are being grown in areas that are challenging with the changing climate. O’Neil says hail is not uncommon, but this time, more regions appear to have been hit than normal and it’s hard to mitigate that. “Covered crop growing is very acceptable if it’s affordable for the individual grower. But even some of those covered structures have been damaged by the hail, so it’s not absolutely bullet proof,” he told Rural News. “I think the insurance companies will become more risk adverse unfortunately and premiums will go up. Unless growers do everything they can do to minimise the impacts – such as covering their crops – I think it’s going to be very difficult in future to get reasonably priced insurance.” O’Neil believes that this latest event will encourage more orchardists to cover their crops despite the capital cost. He also points out that some of the hail and rain was very localised. “A few years ago, my kiwifruit orchard at Kerikeri got hit by hail and I lost about 27% of my crop. My TO PAGE 3
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RURAL NEWS // JANUARY 26, 2021
NEWS 3 ISSUE 718
www.ruralnews.co.nz
Excuses fail to ‘cheque’ out with rural users Dellabarca said cheques represent less than 1% of payments. AS BANKS start phasing out cheques “We’ve reached the point where it for customers across New Zealand, makes sense to focus our payments Rural Women New Zealand (RWNZ) on the future,” she said. says its members are unhappy with Westpac claims there are the decision. “numerous options” for those who RWNZ conducted cannot go into a survey in late-2020, “Over the a branch and for which saw the majority transition period those who don’t of respondents oppose have internet the withdrawal of we will work access. cheques. “Customers closely with “The response was who don’t have those who still the highest we’ve ever internet access had for a survey in three use cheques, and are unable years,” RWNZ policy to come into including our manager Angela McLeod branch can use rural customers, to Rural News. phone banking McLeod says while the to help them to check their organisation accepts that balance, pay cheques will be phased work through our bills or transfer out, it can only happen payment options.” money any for rural communities “if time,” a Westpac every rural household has access to NZ spokesperson told Rural News. consistent quality internet connection The spokesperson added that and/or cellular coverage.” the bank’s contact centre staff are She says about 10% of RWNZ available and can help with a range members do not even have an email of banking services, such as setting up address. regular payments. However, banks claim there is a “Customers who want to talk to a need to phase out cheques and they branch staff member can book phone have worked to ensure the needs of all appointments. We encourage them their customers are dealt with. to contact us to discuss the different When the decision was announced ways they can do their banking.” in October 2020, Westpac NZ general Meanwhile, ASB says they are yet manager of consumer banking Gina to finalise the timing on the phasing JESSICA MARSHALL
NEWS ��������������������������������������1-14 AGRIBUSINESS ���������������������� 15 HOUND, EDNA ����������������������� 16 CONTACTS ������������������������������ 16 OPINION �����������������������������16-18 ANIMAL HEALTH ������������������� 19 MANAGEMENT ��������������������� 20 MACHINERY AND PRODUCTS ����������������������� 21-22 RURAL TRADER �������������������� 23
HEAD OFFICE Top Floor, 29 Northcroft Street, Takapuna, Auckland 0622 Phone: 09-307 0399 Fax: 09-307 0122 POSTAL ADDRESS PO Box 331100, Takapuna, Auckland 0740 Published by: Rural News Group Printed by: Inkwise NZ Ltd
RWNZ policy manager Angela McLeod says members of the organisation are unhappy with the decision by banks to start phasing out cheques.
out of cheques. Executive general manager for retail banking Craig Sims told Rural News this is because the bank wants “to make sure our customers have plenty of time to prepare for this change.” “Over the transition period we will work closely with those who still use cheques, including our rural customers, to help them work through
our payment options, including online and phone banking, and ensure they are comfortable with this change,” Sims says. He says ASB will also host free Better Banking workshops across New Zealand to ensure customers feel confident using the digital banking options. @rural_news facebook.com/ruralnews
CONTACTS Editorial: editor@ruralnews.co.nz Advertising material: davef@ruralnews.co.nz Rural News online: www.ruralnews.co.nz Subscriptions: subsrndn@ruralnews.co.nz ABC audited circulation 79,553 as at 31.03.2019
BRUISED AND BATTERED CROPS NOT DEEMED ‘ADVERSE EVENT’ FROM PAGE 1
neighbour, who has a vineyard, didn’t get any hail at all and he was only 100 yards away – so that shows how localised it can be.”
• Ideal for Cattle Troughs • High Flow • Side/Bottom Mount • Detatch to Clean • Compact/Robust
Rural News understands various horticulture leaders were planning to meet with O’Connor, Robertson, Nash and some other members of the Labour caucus in Nelson – during the
party’s annual caucus retreat held in the region last week – to discuss the issue of government assistance. See more on apple and summerfruit crop weather damage
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RURAL NEWS // JANUARY 26, 2021
4 NEWS
Covid minces meat prices down about 8% in NZ dollar terms, a reflection of the 9% lift in the currency over the year. Forestry and fruit indices are actually running ahead of this time last year in NZ dollar terms
SUDESH KISSUN sudeshk@ruralnews.co.nz
FARMGATE RED meat prices are taking a hit as Covid continues to disrupt dining out businesses around the world. Beef prices are down 16% on a year ago, lamb prices down around 18% in New Zealand dollar terms. ASB economist Nat Keall says it’s a more muted start to the year for beef and lamb prices when compared to dairy. Keall notes that lamb prices in particular aren’t too far above the lows seen in the immediate post-pandemic churn. By contrast, ASB’s dairy indices are only
on the meat sector: the global pandemic and tentative signs the world is emerging from the global protein shortage of recent years. “Beef and lamb prices have been hit particularly
“Winter returns were lower than normal, but aligned with our previous expectations, as lockdowns limited demand for dining out opportunities.”
and are up strongly in US dollar terms. Keall says two downside factors in particular are weighing
Beef and lamb prices have been hit particularly hard by the pandemic given many cuts of meat – particularly for lamb – are consumed in restaurants. PHOTO CREDIT: KIEREN SCOTT MINARET STATION
hard by the pandemic given many cuts of meat – particularly for lamb – are consumed in restaurants, hitting demand and limiting the mark-up sellers can charge,” he told Rural News. “While the global vaccine rollout is tentatively underway, restrictions crimping the food service sector remain in place in many parts of the world.” And there is little light at the end of the tunnel as market and logistical risks remain in play. ANZ agriculture economist Susan Kilsby expects farmgate prices for lamb and beef to soften further as we head into the peak processing months. “Winter returns were lower than normal,
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RURAL NEWS // JANUARY 26, 2021
NEWS 5
Strong milk price down to farmers’ efforts - Fonterra boss “November dairy production already showed a little bit of a slowdown, and with drought hitting parts of the upper North Island there is still the prospect the next data releases could show further
SUDESH KISSUN sudeshk@ruralnews.co.nz
NEW ZEALAND dairy farmers deserve credit for premium prices fetched around the world for their milk, says Fonterra chief executive Miles Hurrell. He says New Zealand butter and skim milk powder are attracting premiums of $500/tonne more than European products right now and it’s all down to the sustainability credential of NZ milk. “Our pasture-based systems, our high standards on animal welfare and our sustainability stories are starting to be recognised around the world,” Hurrell told Rural News. “Farmers, supported by the co-op, now have farm environment plans.” He says countries are willing to pay a premium price for NZ milk because they are beginning to see and hear about what our farmers are doing. Last week’s Global Dairy Trade results reflect the demand for NZ products: anhydrous milk fat (AMF) prices jumped 17%, skim milk powder (SMP) 7% and butter 4.6%. AMF and SMP are mixed to make reconstituted full cream milk in some countries. Hurrell says it’s pleasing to see growing consumer demand for NZ products around the world. Westpac senior agri economist Nathan Penny says milk fat prices are on a boom. He says that AMF and butter prices have both surged over the last four months; AMF and butter prices have jumped a whopping 38% and 44%, respectively. “This is a key development as
soaring feed prices for Northern Hemisphere farmers could impact milk production, thereby applying more upward pressure on milk prices. Steel says corn and wheat prices, which constitute as feed input costs
“Our pasture-based systems, our high standards on animal welfare and our sustainability stories are starting to be recognised around the world.” deceleration in the last few months of the season. “Production in the EU is also falling, led by lower volumes in France and Germany, so global supply is set to tighten.” BNZ’s Doug Steel adds that
for European and American farmers, could affect milk output. In New Zealand, there is also some concern about dry weather impacting milk production, he says. Steel notes that a weakening NZ dollar will also boost export returns.
NEXT SEASON
Fonterra chief executive Miles Hurrell says NZ dairy farmers deserve credit for premium prices being fetched around the world for their milk.
it demonstrates that demand for products consumed in restaurants and other food service settings has returned,” he says. Commentators also agree that demand for dairy products is likely to hold up well, through to the end of the season. ASB economist Nat Keall says solid
purchases from China have anchored price gains at recent auctions. “With the latest Chinese gross domestic product figures showing a decent lift, there is little reason to think that story will change,” he says. Keall notes that a slightly tighter supply outlook is another price support.
WHILE THIS season’s milk price is soaring, there are some concerns about what next season may have in store for farmers. BNZ’s Doug Steel believes the weakening NZ dollar and growing global demand sets up well for next season. While he admits there’s a long way to way, Covid could also end up helping push prices up. After causing prices to fall during lockdowns, Steel says Covid-related lockdowns have begun impacting milk production in Europe. Freight and logistics have also taken a hit during the pandemic.
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With NZ offering safe products, Steel says more buying are willing to pay a premium for NZ milk. However, the NZ currency could play a bigger role in setting next season’s payout. ASB’s Nat Keall says given Fonterra’s hedging policies and the timeframes involved, the flight of the kiwi dollar will have little influence on the final farmgate price for this season. “The NZ dollar’s recent strength is likely to be more of an influence on next season’s milk price, so farmers should prepare to take a bit more of a hit from the dollar’s strength in the 21-22 season,” he says.
RURAL NEWS // JANUARY 26, 2021
6 NEWS
NZ to host virtual APEC PETER BURKE peterb@ruralnews.co.nz
NEW ZEALAND will be in the virtual spotlight for the next 12 months as it hosts the APEC (Asia Pacific Economic Cooperation) conference.
representing 40 different groups and committees in 11 time zones and at times spanning a 17 hour time difference. The groups will be a mix of officials, various business groups, including the primary sector, and politicians – including
“We will be looking at the best ways to interact with each other and how we exchange goods and services and technology.” It’s only the second time that NZ has hosted this event – the last time was in Auckland in 1999. APEC was set up on the initiative of former Australian Prime Minister Bob Hawke in 1989 and NZ was one of 12 founding members. Today, 21 economies are members of APEC. They include the USA, Canada, Japan, Malaysia, Singapore, Indonesia, Korea and China, all of which are major markets for NZ’s primary exports. The theme for this year’s event is ‘join together, work together and grow together’ and will see NZ virtually host thousands of delegates,
heads of state such as Prime Minister Jacinda Ardern. One of the key government ministers involved in APEC 2021 is Damien O’Connor who is involved via his roles of Trade and Export Growth as well as Agriculture. “Clearly APEC is a huge opportunity for NZ to be on the world stage in front of 21 economies, a large number of which are our key trading partners,” he told Rural News. “We will be working collectively on the huge challenges that we face – especially Covid 19 and obviously trade.
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Agriculture and Trade and Export Growth Minister Damien O’Connor will be heavily involved with the APEC conference.
“We will be looking at the best ways to interact with each other and how we exchange goods and services and technology. What’s really important is that APEC, as an organisation, has been a solid supporter of the World Trade Organisation, (WTO)
and rules of trade. So, any progress in terms of endorsement from APEC in this time of uncertainty for the WTO will be invaluable,” he says. O’Connor describes APEC as multidimensional and multilayered, which means
that his colleagues such as Foreign Affairs Minister Nanaia Mahuta will also play a huge role in the discussions. He says the role of ministers is to engage with other countries at a political level and to assist officials and TO PAGE 7
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THE CHALLENGES OF VIRTUAL APART FROM being a forum for some tough and difficult conversations, APEC conferences have until now been a glitzy public relations exercise, where the host country can showcase its economic and cultural dimensions to delegates. A chance to promote tourism is an obvious example. But Covid-19 has changed that and NZ has been given the almost impossible challenging task of doing that remotely. Special venues have been set up to host some meetings based out of Wellington. O’Connor says it’s a challenge to have an international convention in a virtual world. However, he says given the uncertainty of Covid, the Government thought it was better to go for the virtual option, rather than cancel the event. “We will miss the opportunity for personal interaction, which I guess is the hallmark of NZ’s success. But we can show the world that we are just as equally capable of virtual reality as we are with personal interactions,” O’Connor told Rural News. “The virtual world means that you spend less time travelling and more time communicating. There are some huge advantages in terms of efficiency in the virtual world and we all learning to trust it more and more as we learn to better use it. But it’s hard to create a dynamic environment in the virtual world, particularly when we would like to talk more with one another about more detail. But we have to keep focused in digital fora, on the job and topic and it does create more efficiency – even though it is slightly less friendly,” he says. The other element missing in a virtual world is the presence of media. Normally thousands of journalists would descend on the host country for various sessions – especially the leaders’ meeting, which will take place in early November. The Ministry of Foreign Affairs and Trade is doing its best to engage with the media – both in NZ and overseas. It has sent out 3500 information packs to media packs to media around the world to brief them on this year’s event and about NZ.
RURAL NEWS // JANUARY 26, 2021
NEWS 7
What is APEC all about? PURPOSE IS TO promote sustainable economic growth and prosperity in the Asia-Pacific region has become the pre-eminent economic forum in the Asia-Pacific region. First meeting – Canberra November 1989 Members - Australia; Brunei
FROM PAGE 6
business people working on the various trade negotiations taking place. “Regardless of the range of discussions that are taking place in APEC, trade is a high priority for us and we’ll be looking to get backing for preventing any move towards protectionism,” he told Rural News. “Clearly the primary sector is at the core of our export trade and economy. Any connections or opportunities that we get to engage with the other economies to discuss some of the tariffs and especially non-tariff barriers rules or trade will be an advantage to us in both in the short and long term.” In terms of world
Darussalam; Canada; Chile; People’s Republic of China; Hong Kong, China; Indonesia; Japan; Republic of Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; The Philippines; The Russian Federation; Singapore; Chinese Taipei; Thailand; United States of America
trade, O’Connor says he and others will be looking closely at what the new Biden administration say in terms of rules-based, free trade and the role of the WTO. Biden has pledged to “rewrite the rules of trade” but has been tight lipped on the issue of the WTO. There are other trade issues for the new US President to deal with – such as China and EU and UK. But environment, specifically climate change, has been signalled as a priority for Biden and this will inevitably surface during the APEC discussions over the coming year. O’Connor concedes that, initially, Biden will have a focus on domestic issues such as Covid.
The “silly shirts” tradition of the APEC leaders posing in similar attire started back in 1993 and over the years the outfits have been as varied as batik shirts and ponchos.
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RURAL NEWS // JANUARY 26, 2021
8 NEWS
Science system revamp urged loss of focus on using science to support the challenges that lie ahead for the sector. “I want to see far greater support from the Government and our science bodies to work in partnership with our food and fibre sectors – including the breeding programme for plant and horticultural varieties,” he told Rural News. “Such a strategy would ensure that we are ahead of the world when it comes to our ability to put into the fruit bowl of consumers,
PETER BURKE peterb@ruralnews.co.nz
THERE’S AN urgent need for a greater focus on science in the food and fibre sector. HortNZ chair Barry O’Neil says the New Zealand primary sector has developed from the science that was done in the last century, which has enabled our livestock sector – and latterly the horticultural sector – to grow and thrive. But he’s concerned that, in recent times, there has been a
varieties that taste the best.” O’Neil hopes that in 2021 there will be a greater focus on those breeding programmes that are important when it comes to climate change. “The goal must be to ensure that we have varieties that are more resilient to a warming climate or the pest pressure that results from the changing climate,” he says. O’Neil points to the recent initiative
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HortNZ chair Barry O’Neil is among many who are highly critical of the present so called ‘competitive science funding model’.
who are highly critical of the present of the so called ‘competitive science funding model’,
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which sees CRI’s, universities and private science institutions ‘bid’ for pockets of funding, some quite small. The system is now run by MBIE after earlier being run the Foundation for Research Science and Technology.
full time to process and lodge bids. “Our scientists are spending half their bloody time developing funding bids of which about 90% don’t get supported. What a waste of time for our clever scientist being stuck in a conundrum like
“I want to see far greater support from the Government and our science bodies to work in partnership with our food and fibre sectors.” For many years, scientists have been frustrated by the system and its outcomes and believe that the primary sector is poorly served by the system. Rural News understands that many social science projects are being supported under this regime, but with little emphasis on practical science that could really drive economic growth. Most CRI’s have large teams of highly-qualified, senior scientists and administrators working
this where they have to spend half their valuable time putting in science proposals that often go nowhere,” O’Neil says. “There is no dedicated food and fibre pot, the system is so complex and convoluted and has lost a sense of reality of what NZ needs from our science system.” Despite logical protests like those of O’Neil and others, the system remains unchanged and unliked by many in the primary sector.
RURAL NEWS // JANUARY 26, 2021
NEWS 9
Ronald McDonald House South Island chief executive Mandy Kennedy, Alliance chief executive David Surveyor and Alliance’s general manager people and safety Chris Selbie.
Alliance backs McDonalds charity JESSICA MARSHALL
MEAT COMPANY Alliance Group is joining forces with Ronald McDonald House South Island in 2021. The meat cooperative announced last week that it would be providing support to the charity by sponsoring several of its Supper Club and ‘Host a Roast’ events. “As a Ronald McDonald House South Island partner, we will be providing a mix of financial, product and in-kind support to the Supper Club events and Host a Road initiative,” says Alliance Group general manager people and safety Chris Selbie. He told Rural News the exact amount of support the cooperative would provide was confidential. Selbie believe Alliance’s farmer shareholders will welcome the partnership. “A number of our shareholders’ families have been directly supported by Ronald McDonald House in the past,” he says. Chief executive David Surveyor says Alliance has supported the charity for some time “through a number of product donations, including meat for the recent
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‘Miles Toyota presents A Day at the Polo’ event, so we are delighted to be forging closer ties with this important charity.” He says both Ronald McDonald House South Island and Alliance share common values of compassion, care and communication along with a commitment to the wellbeing of rural communities. “We are excited to now be formally working together,” Surveyor says. Ronald McDonald House South Island chief executive Mandy Kennedy says the charity is “delighted” to have the opportunity to work with Alliance. “It costs $1.4 million annually to operate our facilities, this includes or 26-bedroom Christchurch House and the Family Rooms at both Southland and Christchurch Hospitals. “That is why it is so important to raise funds through events like Supper Club with the support of Alliance Group,” Kennedy says. Ronald McDonald House South Island operates three programmes in the South Island – Ronald McDonald House in Christchurch, a Ronald McDonald Family Room in Southland Hospital, Invercargill, and a Family Room in the new Christchurch Hospital building is due to open this year.
NO TEARS FOR ONIONS NEW ZEALAND’S 2021 export onion season is off to an early and positive start, according to the sector. “Amongst all the turmoil created by Covid and the weather, it’s great to be able to report that exports of New Zealand onions to Indonesia are underway, two months earlier than last year,” Onions New Zealand chief executive James Kuperus says. He’s paid special tribute New Zealand government trade officials and their efforts to keep trade open and a decision by Indonesian officials to release quota early. “Seventy-eight tonnes of onions harvested earlier in January left for Indonesia last week,” Kuperus says. “While this is small, it signals the season is underway early, and prices reflect the additional costs of growing and exporting during a pandemic.” He says the growing season has been favourable for onion growers. “There’s been adequate rainfall and the quality is very good. The drought in Auckland did not materialise. While water was short, there was frequent rain during the growing season.” Kuperus adds that growers around the country growers planted approximately 6% less onions than last year. “This was due to the uncertainty created by Covid. However, yield is up so perhaps the season will be only about three percent down on last.” Total onion exports are expected to be between 170,000 and 175,000 tonnes in 2021. New Zealand onions are exported to 45 countries. Last year, the industry was worth $145 million.
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RURAL NEWS // JANUARY 26, 2021
10 NEWS
‘Far-reaching’ reserves feared DAVID ANDERSON
FARMERS IN the Kaikoura and Conway flat regions claim more than 45,000ha of private land has been caught up in three mātaitai reserves declared in the region. They believe this will impact on their ability to use the waterways on their properties. Mātaitai reserves allow for customary fishing areas to be protected and are imposed by the Minister of Fisheries. The farmers, based in the northern part of the South Island, claim the three mātaitai covering the Kaikoura and Inland Road area take in every inland waterway and ephemeral stream. The affected landowners say the vast majority of these waterways do not hold harvestable fish species and were never customarily fished. The group of affected landowners – the Mātaitai Landowners Group (MLG) – are also “deeply concerned” about the lack of consultation over the placing of the mātaitai reserves and the restrictions these will place on the use of
the waterways on their land and potentially the land surrounding them. Bryden Black, spokesperson for MLG, says the group welcomes the placement of mātaitai over traditional fishing and food gathering areas. However, he claims these are typically coastal and estuarine sites, with evidence from NIWA and Ngai Tahu showing that the mātaitai established in the region include a number of inland waterways that were never fished or used for gathering food. His group is perturbed about
the poor consultation process carried out by the Ministry for Primary Industries (MPI) before the imposition of the mātaitai. “We only found out by chance that the former Minister of Fisheries, Stuart Nash, had gazetted the three mātaitai in September 2018 and by that stage it had become a fait accompli,” Black says. MLG submitted a complaint to Parliament’s Regulation Review Committee early last year, expressing concern over the “defective” consultation process with landowners. It also encouraged MPI to meet with MLG.
WHAT ARE MĀTAITAI RESERVES? MĀTAITAI RESERVES are developed and managed by tangata whenua. These recognise and provide for: The special relationship between tangata whenua and their traditional fishing grounds Non-commercial customary fishing. Mātaitai reserves allow: Customary fishing Recreational fishing without needing a permit. Some mātaitai reserves have bylaws that tangata kaitiaki/tiaki (guardians) use to manage non-commercial fishing. Source MPI website
“While MPI agreed to meet with us in August to discuss our concerns, their official response in September was that they saw no reason to revisit any of their decisions,” Black says. He believes the mātaitai can place restrictions on the use of the waterways and adjoining land, which would not only limit the landowners’ enjoyment of their waterways. “It could also prevent farmers’ the ability to diversify their businesses to include accommodation for fishers and guided fishing.” Black says MLG is now seeking a judicial review of the three mātaitai and is asking for help with the cost of the process, which have been estimated to be between $60,000 and $80,000. “The aim is not only to seek relief in terms of the extent of the mātaitai,” Black adds. “We also want to seek judicial direction to the Government with regards to consultation processes with rural communities in the future, to ensure consultation is meaningful.”
Farmers claims the country above a 30m waterfall has been caught up in a mataitai reserve, although records show the area was never a traditional fishing or food gathering area.
RURAL NEWS // JANUARY 26, 2021
NEWS 11
Stage set for another dairy price hike SUDESH KISSUN sudeshk@ruralnews.co.nz
THE STAGE is set for another rise in Fonterra’s forecast milk payout following a fifth straight jump in Global Dairy Trade (GDT) prices. Last week’s GDT price rise pushed flagship whole milk powder prices to a four-year high; prices for skim milk powder, butter and anhydrous milk fat also jumped sharply.
a higher farmgate milk price than its current $7/ kgMS forecast. “Indeed, a farmgate price towards the upper end of Fonterra’s forecast range is very much possibility. We’ll be closely examining the next auction with a view towards adjusting our forecast,” Keall says. Last week’s GDT auction saw whole milk powder prices rise 2.2% to US$3,380/metric tonne. Anhydrous milk fat prices
“China largely has Covid under control and its economy has rebounded strongly” Following the latest GDT result, Westpac lifted its forecast milk price for the season to $7.50/kgMS. Fonterra’s last price review in December settled on a price range of $6.70 to $7.30/kgMS. Fonterra chief executive Miles Hurrell told Rural News that Westpac’s move was “interesting”. He says Fonterra was monitoring every GDT event. “We have first-hand knowledge; we know what we have on our books, what we’ve sold and at what prices,” he says. “’We have the most accurate data which we use to make our decisions on the farmgate milk payout.” Under DIRA, Fonterra is required to update its forecast milk payout in early March and Hurrell says the co-op could come out before then if warranted. Westpac senior agri economist Nathan Penny says the lift in its forecast payout comes on the back of surging global dairy prices, particularly at the start of this year. “Since early November, overall dairy prices have jumped 17.2%, with over half of the lift occurring since the start of the year,” Penny says. ASB economist Nat Keall says increasingly the risks skewed towards
rose a whopping 17% to US$5,398/MT. Butter prices rose 4.6% to US$4,735/MT while skim milk powder soared 7% to US$3,243/MT. Hurrell says it was pleasing to see price movements at the end of last year continue into 2021. Strong consumer demand for dairy, mainly from China, is pushing dairy prices up. Hurrell says demand is also picking in some South East Asian and Middle Eastern markets but last week’s result “was very much a China story”. He says Covid continues to impact markets around the world but demand from China reflects how that country was ahead of the pandemic. The rollout of vaccines around the world is also helping dairy demand recover in some other key markets. Penny agrees that Chinese demand is underpinning the price surge. “China largely has Covid under control and its economy has rebounded strongly. In fact, the Chinese economy actually grew over 2020, the only major economy to do so,” he says. “Dairy markets have put Covid well and truly in the rear-view mirror.
Whole milk powder (WMP) prices are now at their highest level since December 2016.” Penny expects dairy prices to rise further in
the coming months. “From here, we expect the price momentum has further to run. Global dairy supply takes time respond to price lifts.
Ultimately though, when supply does respond, we expect prices to moderate. But that is a story largely for next season”.
Agri economist Nathan Penny says Westpac has lifted its forecast payout on the back of surging global dairy prices.
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RURAL NEWS // JANUARY 26, 2021
12 NEWS
Rural literacy trust struggles for support JESSICA MARSHALL
JO POLAND started the Rural Youth and Adult Literacy Trust (RYALT), formerly the Adult Literacy Trust, from her kitchen table in 2011. Poland, who has taught and been involved in teaching adult literacy since 1994, was approached by a local Port Waikato mother who was looking for help for her daughter who struggled with reading and writing. Thus, Poland was inspired to found RYALT with two other trustee members. Since then, RYALT has helped close to 1000 people – youths and adults. However, despite the good work the trust does it is struggling to get financial support. Poland says that one of the biggest issues for those in rural communities is that they don’t have easy access to
Since it was founded, the trust has grown to encompass and focus on youth literacy in 2017 after many of the adult students mentioned the difficulties they suffered during school. adult literacy centres that exist in urban areas. “There are just so many barriers because generally people with literacy problems don’t have jobs or have low-paying jobs. So, having a reliable vehicle, paying for petrol, getting a babysitter and the time getting to town all add up to make it very difficult,” she told Rural News. Since it was founded, the trust has grown to encompass and focus on youth literacy in 2017 after many of the adult students mentioned the difficulties they suffered during school. “Over and over again, we hear
them say that they wish someone had helped them like we do when they were at school,” she says. She says that while RYALT continues to work with adults, they are now placing emphasis on teaching teenagers, “because we can prevent so much pain and suffering by preventing the outcomes of low literacy skills, “We are not so much the ambulance at the bottom of the cliff that we are when we work with adults,” she says. The trust holds youth camps every year, which were forced online in 2020 due to Covid-19 restrictions. “It was not as much fun for the kids as a live camp, but the volunteers
were an amazing bunch of people who love reading and writing and were prepared to give up one or two weeks of time to help the kids.” However, technical issues meant fewer kids were able to attend the camp than normal. “One student only had phone reception at the end of their long rural drive up by the letterbox. Next time, we need to prepare volunteers and students so they don’t get discouraged when that happens,” Poland says. Despite the work RYALT does, Poland says its future is uncertain. “Currently, we stagger along from grant to grant with no certainty of income. Staff often have to reduce hours of work and I work for a couple of months most years without pay,” she told Rural News. “That’s fine right now, but not good for succession planning.” She says the trust has tried to look
Despite the good work the Rural Youth and Adult Literacy Trust does it is struggling to get enough financial support.
for a social enterprise to help improve their sustainability, but found it wasn’t feasible because of how under resourced it is. “We are very fortunate to have hundreds of volunteers working with us,” she says. Poland adds that while the volunteer assistance has been helpful, it isn’t sustainable because it involves a lot of personnel changes.
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RURAL NEWS // JANUARY 26, 2021
14 NEWS
A different kind of dairy conversion PETER BURKE peterb@ruralnews.co.nz
DAIRY CONVERSION has taken on a whole new meaning around the small Horowhenua township of Otaki. Two entrepreneurial woman have separately converted old, disused dairy sheds on their respective properties to Airbnbs, which give town folk a hands-on insight into country living. Stacy Faith and her
husband Andrew milk 360 cows once a day to supply Fonterra. They separately milk 20 more to supply A2 protein milk for the vending machine they have installed at their farm gate. It’s a farm that has long been in the Faith family. The old dairy shed on their property dates back to the 1950s when Andrew’s father used to milk about 60 cows in what was a walk-through shed, where about five
cows could be milked at a time using machines. Faith says the idea of doing something with the old disused dairy shed on the farm came when she and her son went to Hamilton to watch the Phoenix football team play. On the way home they picked up a hitchhiker from the USA and he told them of his travels and the challenge of getting appropriate accommodation. “I suddenly
Stacy Faith standing in the kitchen of the old, disused dairy shed on her farm that has been converted into an Airbnb.
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remembered that we had this old cow shed doing nothing at all and thought that this could be repurposed,” she told Rural News. Faith says there was no specific plan for the conversion from old shed to new accommodation but with the help of builder the project came together and was completed in about nine months. She says, ideally, she’d have preferred two bedrooms, but realised that they would be small, so opted for a one bedroom that can accommodate four people. From the outside, it still looks like a dairy shed and even inside it is
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dairy farm themed with bar stools made from old tractor seats, towel rails made from disused parts of a water trough. The toilet and shower are in the area where the milk vat used to stand and cow mats not cow pats that are very much in evidence. From the kitchen and lounge you can see the cows pass by each morning on their way to be milked. Guests can also go to the milking shed and help with the morning for a small fee to cover the cost of providing gumboots and overalls. Faith says the location of their accommodation suits travellers going
to and coming off the Cook Strait Ferries as it just about an hour from Wellington. Before Covid a large number of the guests were from overseas. “Now this has changed and about 80% are kiwis and about 20% from overseas. We used to get people from all over the world – we even had a couple from Latvia who were beef farmers,” she told Rural News. Those staying at the shed get a real taste of country with milk, eggs and bacon all from the farm. Faith supplies their A2 milk, but also regular milk, recognising that not everyone can drink raw milk. All the guests have
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to do is cook their own breakfast. Running this small B&B is just one of Stacy’s tasks. She rears the calves, is the backup milker looks after the vending machine and off-farm is a very busy swimming instructor. But she enjoys dealing with visitors who are mainly townies who ask the usual questions about the cows and farm life generally. “I am not out to make millions, but I want people to experience farm life and put farmers in a positive light and change people’s attitudes,” she says. @rural_news facebook.com/ruralnews
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RURAL NEWS // JANUARY 26, 2021
AGRIBUSINESS 15
Wool group raises $500K DAVID ANDERSON
A NEW group established to revise the fortunes of New Zealand’s struggling strong wool sector says it has already raised more than $500,000 and is starting to roll out its work programme. The Strong Wool Action Group (SWAG) says financial support has come from five of the main meat processing companies – Alliance, AFFCO, ANZCO, Silver Fern Farms and Progressive Meats. It adds that many other national wool interest groups – including Campaign for Wool, CP Wool Ltd, the Federation of Wool Merchants, the NZ Council of Wool Exporters, the National Council of New Zealand Wool Interests, the NZ Wool Brokers Association, PGG Wrightson, The New Zealand Merino Company Ltd, WRONZ – as well as some of the larger farming operations around the country have also contributed. “Securing this important industry funding puts us in a strong position to execute the essential strategy we have developed for 2020/21 and is a reassuring vote of confidence in SWAG’s strategic approach,” the group’s chair Rob
Hewett claims. Meanwhile, Hewett says SWAG has appointed IDEO – a “design thinking” research company based out of San Francisco – to undertake consumer lead research in the USA as the first stage of its “outside in” strategic approach. “Research work streams will commence in January with the goal of project completion by late March early April,” he adds. “IDEO have created a specialist team for this project, comprised of IDEO team members who have had considerable experience in understanding consumer insights linked to sustainability trends, new and emerging commercial business models, and in finding effective new routes to consumer markets.” In SWAG’s December 2020 newsletter, Hewett says there is much to understand and learn from how the Covid era has impacted on consumer behaviour. “We will work with their project team during the project to ensure we capture and clearly understand the market insights.” The group also says it has started its business case development that aims to disrupt product categories with wool
SWAG chair Rob Hewett says securing the industry funding puts the group in a strong position to execute its strategy.
introduced in new or innovative ways. “The second stage of the strategy will be about interpreting the IDEO research and building specific business cases that are desirable, feasible and viable and can achieve scalability in their use of NZ strong wool on a global basis,” Hewett explains. “A number of these initiatives are already under way in New Zealand and with the SWAG’s input, we want to amplify their effort and pathways to market.” He says SWAG is in that advanced
stages of recruiting a business analyst from one of the top four advisory firms. Hewett says the analyst will develop specific business cases to the point of being ready for new industry /commercial investment and this work will start in late April. Hewett claims that consumer demands are changing and so are their selection criteria and influences when choosing between brands before purchasing. “The New Zealand wool industry must remain relevant and desirable in
n g i s e D
the eyes of consumers,” he adds. “An accreditation scheme for wool must be market driven and be responsive to increasing consumer demands for sustainable brands offering traceability back to source – with accountability for animal welfare, environmental impact and careful land management.” He says SWAG is considering the importance and options for accreditation schemes as a point of differentiation for New Zealand strong wools, which can also deliver price premiums for growers. Hewett adds that they are not keen to “reinvent the wheel”, so any accreditation scheme will be complementary to, and leverage off the Farm Assurance program that sheep and beef farmers will be very familiar with. SWAG says it is continuing to work closely with MPI representatives from government and financial support from MPI’s SFFF fund has “amplified substantially” what the group can achieve. “Minister O’Connor has a high level of interest in SWAG and was recently briefed on the progress made in the first three months of the project,” Hewett concludes.
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RURAL NEWS // JANUARY 26, 2021
16 OPINION EDITORIAL A stupid version of lotto THERE USED to be phrase that stated that ‘NZ lived off the sheep’s back’. That was a myth — just like the nonsensical ‘No 8 wire’ concept. The reality is that NZ lives off the back of our scientists who have created new plant and grass varieties, breeds and types of sheep and cattle that thrive in our climate. Not forgetting farm machinery and systems that have made NZ one of the best and most profitable farmed landscapes in the world. Most of the science that achieved these gains was done before someone decided to ‘reform’ the science system, dismember the Ministry of Agriculture and DSIR and create things called CRI’s. The primary sector is now at a crisis point because successive governments have allowed the funding of agricultural science to almost disappear. They have done this by creating a so called ‘competitive’ system, where highly-skilled scientists are expected to go begging for funds to some high-falutin science board and respond, at times, to some bizarre requests for proposals. Competitive sounds nice and gives the impression that the system is efficient and that good science is being delivered. However, this is a myth! When highly-skilled scientists have to spend up to 50% of their time writing up bids, that means that they only have 50% left to do the work. Is that a bureaucratic definition of efficiency? And what about the cost of the large departments in the CRI’s and universities dedicated to peer reviewing these bids before they leave the organisation? The science money it seems is going to pen pushers – not the men and women in lab coats. There is no longer a dedicated pool of funding for agriculture like there used to be, so ag scientists have to compete for money from a large pool – which funds universities, social science, medical science and god knows what else. Where is agriculture? The primary sector has for too long been treated like a second-class citizen by all political parties, yet in the Covid environment, we hear Jacinda Ardern saying the saving grace for NZ is its ag sector. Well, show us the money! Megan Woods, as science minister, needs to completely overhaul the system and cut out the misnamed competitive system and give agriculture a fair slice of the funds. And specifically, give our highly-skilled ag scientists more time to spend in their laboratories rather than playing the lotto science funding game. – Peter Burke Peter Burke is the founder and life member of Science Communicators Association of NZ (SCANZ)]
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Any charges?
Poor snowflakes
Your canine crusader was captivated by a news report of an Auckland-based woman fined $31,500 for possession, selling and attempting to sell dry edible bird’s nests. Linying Ouyang recently pleaded guilty to three charges under the Biosecurity Act 1993 and was sentenced with the big fine. A search warrant was executed at Ouyang’s home in November 2019 and investigators discovered sales and other attempts by her to sell dry, edible bird’s nests via a WeChat group – advertised for sale at over $330 a pop! MPI’s Ron Scott says edible bird’s nests are a Chinese delicacy made from the saliva of the Swiftlet bird. Now the Hound has eaten some pretty horrible things in his time, but not even he would be tempted to eat the spit-generated nest of a Swiftlet bird – let alone pay $330 for the privilege!
Meat company Alliance Group recently announced that it will become an official partner of Ronald McDonald House South Island – the independent charitable trust providing free accommodation and support to families who need to travel to Christchurch and Invercargill for their children’s medical treatment. The agreement will see the meat co-operative provide support for the Ronald McDonald House major 2021 fundraiser – the annual Supper Club events in Christchurch, Queenstown and Invercargill – and donate meat for a range of events throughout the year. All laudable stuff. However, a mate of the Hound’s suggests the recent PR stunt of the Alliance Group teaming up with Ronald McDonald is right on the money. “How appropriate that the bunch of clowns in charge at Alliance are getting together with a charity that has a clown as its mascot!” he cynically told your old mate.
Your old mate wonders if the overreaching do-gooder who set up a North Canterbury cow sanctuary “to save retired dairy cows and bobby calves from slaughter” will face any charges for animal cruelty. ‘Til the Cows Come Home’ was established in July 2017, to great media (mainstream fanfare), as a “safe haven for rescued farm animals”. At one stage, some 200 cows were housed at the ‘sanctuary’. However, an MPI investigation last year found that many of the ‘rescue cattle’ were sick, starving or in terrible condition – and a number had to be euthanised. The person who ran the ‘sanctuary’ claimed: “I tried my hardest for so long, sleepless nights, stress beyond belief, full-time work, hours of feeding, cleaning...until it all came crashing down.” All very sad, but any farmer who did the same thing would rightly be prosecuted by MPI – so let’s hope the animal welfare bureaucrats are consistent and file charges!
This old mutt understands the country’s trendy, woke, vegan community (all four of them) is taking time out from being outraged at everything Donald Trump has ever done, to concern themselves about an oat milk shortage in NZ. Apparently, anaemic trendy café goers around the country are getting in a tizz as their local vegan-friendly baristas run dry on their favourite plant-based milk. Now the poor wee darlings are demanding New Zealand invest in its own plant-based milk factory, possibly converting a cow milk plant. According to one of these delicate petals, “the country risks falling out of line with global trends if it doesn’t get on board with plant-based milk. New Zealand has lots of massive dairy factories; we need to transition that infrastructure to dairy free”. Or, as the Hound suggests, they just take advantage of the NZ dairy sector’s excellent ability to turn fresh grass into natural, tasty and healthy milk!
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RURAL NEWS // JANUARY 26, 2021
OPINION 17
Plan, discern and then act! YES, 2021 is well and truly upon us. Like it or not, here we are! We started our year in the South Island for a few days. Got to see some of the Mackenzie country, something I had always wanted to do. And we caught up with some good friends too, which is always a tonic for the soul. As many of you readers will, I well remember Y2K, which is now over two decades ago! Can you remember the media and various other outlets and experts talking up all the dramas that were about to descend on us back then? There were some very bleak predictions being circulated.
just a couple: Generator hire companies were scrambling to try and get more in, to meet the unprecedented demand. Everything they had on hand or had access to had been booked out for months. And Airlines cancelled flights, most kept their planes on the ground for those few critical hours. Popular opinion, with the help of the media of course, carried a lot of weight, I recall. If you dared publicly to make light of it, or even worse, dismissed it altogether, you set yourself up for personal attacks from the mainstream know-it-alls. Sounds all too familiar doesn’t it? I am all for careful
FARMER’S CHAPLAIN
Colin Miller
much more than we do, to have some input. I have found that’s always a good thing, and it surely has worked well for me in my life’s journey. After 2020, who knows what 2021 has in store? And yes, I’m truly blessed to know the One
who does! Take care out there, and all the best for 2021. God bless. To contact Colin Millar email: farmerschaplain@ ruralnews.co.nz @rural_news
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For people with an active faith like me, we add prayer into the mix. It slows you down a little, for one thing, plus it gives opportunity for the One who knows much more than we do, to have some input. I know plenty of folks who stayed up on 31 December 1999, many fearfully awake, to witness these dramas as they hit. Of course, there was a big sales rush on key ‘survival’ items, like water and tinned food. I don’t recall if loo paper was on the emergency shopping lists back then, sorry! In one family I personally know, Dad / Grandad was right into the bad news and fear side of Y2K. It was endless, to the point of curtly telling him to please shut-up. Very cleverly though, on the big night in question, they sneaked up outside his house to the power meter box and right on the stroke of midnight they flicked the mains switch off. As family told me the story about it later, it was hilarious! I jumped online, went back and read some of the news from back then, just to prompt my memory. Amusing now, for sure. I mention
and wise planning, for the present and the future – there is definitely a place for that. I am also equally all for finding out the facts, and being able to discern the difference between facts, opinions, and the false. I wrote in an earlier column last year that: “Balance is the key to life.” The same is true here; it’s not a choice of one or the other, it’s both. Wise planning and good discernment – what a great balance to have at hand in today’s world. Common sense and wisdom are not as easy to access as they used to be. Finding people who are well seasoned in life, and who have genuine miles on the clock in the area you need information and knowledge, is truly a great place to start. For people with an active faith like me, we add prayer into the mix. It slows you down a little, for one thing, plus it gives opportunity for the One who knows
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RURAL NEWS // JANUARY 26, 2021
18 OPINION
New Zealand meat industry cautious over Brexit deal SIRMA KARAPEEVA AND SAM MCIVOR
THE UNITED Kingdom-European Union agreement – announced late last year –on post-Brexit trade arrangements will deliver certainty. But New Zealand’s sheep and beef sector remains very concerned over the split of New Zealand’s WTO quota access for sheepmeat and beef. Beef + Lamb New Zealand welcomed the announcement that the UK and the EU have reached agreement on their future relationship. However, the split quotas would have been a concern regardless of whether the UK left the EU with or without a Brexit deal. We know this has been a really difficult process for the UK and EU and we acknowledge that some steps are needed before it is formalised. We welcome the certainty the agreement brings in minimising border disruptions, which would have made it
Our sheep and beef sector remains concerned about how the Brexit deal has the split NZ’s WTO quota access for sheepmeat and beef to the UK and Europe.
more challenging to get our product into the UK market. However, it’s hugely disappointing that the EU and UK have agreed to a trade deal between them. But they have chosen to compromise New Zealand’s access in the process. This choice sends completely the
wrong signal about their commitment to the global rules-based trading system and to trade liberalisation and leadership. The New Zealand Government, along with B+LNZ, the New Zealand Meat Board and the Meat Industry Association, have voiced strong
objections over the last four years regarding the EU and UK’s decision to split the quotas. Outside of Brexit, both the EU and UK have said that they want to negotiate ambitious and modern new trade deals with us. The quota split flies in the face of that claim and leaves us on the back foot before we even get to the negotiating table. The MIA says in addition to raising concerns about the split quota, the industry had been preparing for all Brexit outcomes. The Brexit process has not been easy and we welcome the certainty of an agreed deal. MIA has been working with B+LNZ, the New Zealand Meat Board and New Zealand Government agencies to minimise any possible disruption for New Zealand exporters. Our strong concern is that the quota split erodes the quality and quantity of our market access into these high value
markets. It represents a major step back from the trade liberalisation positions claimed by both the EU and UK. It also undermines their WTO commitments and their legally binding obligations. The New Zealand Government must resist this move. It removes our market access rights and ability to respond to commercial opportunities. Now that Brexit has been resolved, we expect to see the UK and EU taking urgent steps to live up to their word that New Zealand is not left worse off as a result of the Brexit process. While we understand the UK and EU have been grappling with a range of serious issues, we urge them both to seek to minimise the impact of their choices on a trusted and longstanding trading and political partner. Sirma Karapeeva is the chief executive of the Meat Industry Association and Sam McIvor is chief executive of Beef+Lamb NZ.
RURALHORTNEWS NEWS TO ALL FARMERS, FOR ALL FARMERS
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RURAL NEWS // JANUARY 26, 2021
ANIMAL HEALTH 19
The do’s and don’ts of the early weaning of lambs EARLY WEANING of lambs can be a valuable management tool that can advantage both ewes and lambs. With the right quantity of legume-based forages, early-weaned lambs can grow as fast – if not faster – than their unweaned equivalents on traditional ryegrass and clover pastures. Early-weaned ewes can either be sold early, which frees up feed for other stock, or benefit from having more time to recover body condition before mating. In late lactation, all lambs, but especially multiples, receive very little nutrition from the ewe. When grass growing conditions are below optimal, the ewes are competing with their lambs, compromising the performance of both. By weaning them early onto correctly managed, high quality, legume-based forages, the lambs are given more opportunity to realise their genetic growth potential. Weaned lambs should be allowed unrestricted access to high quality, legume dominant pasture (between
used as a grazing management tool to prepare pastures for when the balance is weaned later. Early weaning can be particularly useful in hoggets, as they typically lamb later than the mixed-age ewes but mated as two-tooths at the same time. This means that despite their age, they are required to regain body condition more quickly than the older ewes. Maximising lamb growth rates in the late spring, early summer period has on-going benefits. They are finished faster and therefore consume less feed postEarly weaning can be particularly useful in hoggets, as they typically lamb later than the mixed-age ewes.
1200 kgDM/ha and 2000 kgDM/ha). Or, ideally, a legume-based crop with a height of 7-10 cm. If lambs are being weaned onto a crop, they should be given time to adjust to a change in feed. Running the ewes and lambs onto the crop for a few days before weaning, then running the lambs back onto the
crop after weaning, will minimise the weaning check. In trials run at Massey University, researchers looked at weaning lambs early, at a minimum liveweight of 16kgLW, onto either a herb-clover mix or a lucerne sward. They found heavier lambs (over 20kg) coped best with early weaning, but
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weaning. It is easier to breed from heavier ewe lambs as hoggets, and there is flexibility to hold them back later when feed resources are more limited. Heavy lambs require fewer animal health remedies and less labour inputs, so any management strategy that helps maximise lamb growth rates is worth considering. Source: https://beeflambnz.com/sites/default/ files/factsheets/pdfs/factsheet-220-early-weaninglambs.pdf @rural_news facebook.com/ruralnews
KEY MANAGEMENT FACTORS INCLUDE: the quality of the forage on offer was the biggest determinant of how lambs grow post-weaning. Early weaning is most effective in seasons when grass growth is limited (pasture covers of under 900 kgDM/ha), and lambs weaned early are offered a herb-clover mix with a minimum pasture
cover of 7cm. Farmers using lucerne, should follow Good Management Practice for lucerne grazing. Early weaning can be a flexible stock and pasture management tool, used to benefit the whole farm system. For example, weaning a proportion of the flock early means some ewes can be
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RURAL NEWS // JANUARY 26, 2021
20 MANAGEMENT
Fonterra chair’s farm cops $47k fine SUDESH KISSUN sudeshk@ruralnews.co.nz
A LARGE dairy farming operation, linked to Fonterra chairman Peter McBride, has been fined $47,000 for an effluent management breach. South Waikato-based Trinity Lands Limited was convicted on one charge of contravening the Resource Management Act 199, filed by Waikato Regional Council. McBride is the chief executive of Trinity Lands, but he wasn’t connected directly with the discharge of effluent from the Ronald Lion Farm, Tirau, in October 2019. Judge Melinda Dickey convicted the company following a hearing in September last year and formally issued her judgement last week. Trinity Land’s general manager Andrew Archer and contract milker Dirk Engelbrecht were discharged without conviction for their roles in the effluent breach. Both men agreed to pay
council costs. According to Judge Dickey’s sentencing notes, on 6 October 2019 at around 1.30pm, the council received a report from a member of the public advising of a green stream flowing into the Pokaiwhenua Stream. Unable to access the stream, council staff inspected Trinity Lands’ properties bordering the stream. On the Ronald Lion Farm, officers found the irrigator located in the paddock alongside the access road running through the Trinity
Lands’ properties. Around the irrigator there were “large dark rings of effluent”, ten metres by ten metres, and ponding on the surface of the pasture. On closer inspection, council officers noted that the soil was very wet and had been pugged recently. “There was a strong dairy effluent odour present and obvious effluent accumulation on top of the soil,” Judge Dickey says. “Council staff followed the effluent flow path along the sloped paddock
towards a natural swale and down the slope to a nearby tributary. There was clear pugging and an accumulation of effluent and water in the holes visible down the length of the natural swale. “During the inspection, the irrigator turned on and ran for between fifteen and twenty minutes. It remained stationary and its arms failed to turn for the period of operation. “The effluent was observed pouring out the end of the nozzles with no fanning or distribution. The effluent
A Waikato Regional Council officer inspecting extent of over application of effluent at the Trinity Lands farm.
A FEW BAD APPLES SEVEN SEPARATE court cases against Waikato farmers and businesses have found that they each unlawfully discharged farm effluent into the environment. The cases have been sentenced over the last three months, with the final case being made public today, resulting in convictions and a total of $318,025 in fines. The prosecutions were taken by Waikato Regional Council under the Resource Management Act. Council regional compliance manager
accumulated on the ground prior to flowing down the natural swale towards the ponded tributary.” Samples taken from the stream on October 6, 2019 revealed high levels of contaminants consistent with dairy farm effluent. The court heard that the breach happened following the installation of a new effluent management system.
Patrick Lynch says the farming enterprises that feature in these seven cases reflect a very small portion of that industry. “However, clearly there are still some in the industry who are not taking their environmental obligations seriously and continue to let the side down,” he said. “It is now well over 20 years since the current environmental regulation has been in place to manage effluent in this region. I have no doubt that many will be disappointed to see cases such as these still happening.”
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Trinity Lands’ lawyer Mark Hammond submitted that company has invested more than $5 million in effluent system upgrades, transitioning 16 dairy farms to a new effluent system. It has also built 16 new lined ponds and 12 large concrete weeping walls for solids separation. Hammond also argued that contamination of the stream was limited but Judge Dickie didn’t accept the argument. Judge Dickey found the company’s action careless and ruled that it must bear responsibility for the acts of its employees. She noted note that at the time of the offending the company did not have
in place documented farm protocols relating to effluent system operation and management. “The parties do not need to be reminded that the matter of the appropriate disposal of effluent is a serious one,” she says. “There are many cases where offending arises as a result of failings in the infrastructure and/or failings in the way in which that infrastructure is managed. Some of those incidents are unforeseeable, despite best endeavours to guard against discharges. Others are clearly foreseeable and the result of owners and/or operators taking risks.”
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RURAL NEWS // JANUARY 26, 2021
MACHINERY & PRODUCTS 21
A post Covid boom for ag manufacturers? MARK DANIEL markd@ruralnews.co.nz
WITH MANY industries hit hard by the Covid pandemic, it seems the popular consensus is that agriculture will be the saving grace for many countries’ economies. A look at how four of the major agricultural tractor and machinery manufacturers are faring, with third quarter results posted for 2020, it appears that farmers haven’t locked away their cheque books or cut up their credit cards. AGCO has posted a year-todate result of US$6.43billion, down only 1.5% on 2019. However, its net income levels were up by a healthy 36.6%. Around the globe, the company’s income was up 60% in North America, 162% in South America, 66.7% in the African, Asia and the Pacific Region – with only Europe and the Middle East softer at 16.9%. For the full year, AGCO is predicting “flat demand” with likely total revenue touching US$9 billion. CNH Industrial, best known for its New Holland and Case IH brands, is reporting revenues of US$7.49 billion for its agricultural equipment division, with net income of around US$498 million – a fall of 25.7%. Overall, the CNH Industrial conglomerate – which includes agriculture, construction, commercial vehicles and powertrains – has been hit badly with a total net income of US$625 million, a 147% drop on the US$1.33 billion surplus posted in 2019.
The world’s major agricultural tractor and machinery manufacturers seem to be faring well despite the economic fallout of the global pandemic.
TAMA president Kyle Baxter.
NZ AG MACHINERY SECTOR LOOKS TO BRIGHTER TIMES MARK DANIEL markd@ruralnews.co.nz
Global giant Deere and Company saw its annual sales for its Ag and Turf Division hit US$23.35 billion – a fall of 5.7%. However, its operating profit was in the black, climbing 18.5% to US$2.97 billion. The company is predicting its sales within the agricultural sector will rise during the 2021 fiscal year by between 10 and 15%, driven by upturns in the North American and Canadian markets, with farmers and contractors moving to larger, higher capacity units. For the nine months to 30 September 2020, the Kubota Corporation saw revenue drop by 7.1% overall and domestically by 9.4%. The company’s Farm and Industrial Machinery Division’s income fell by around 21%, to Yen 96.5 billion. In a world where agricultural machinery sales are driven by longliners like AGCO, CNH Industrial, Claas and John Deere, several “short-line” European companies are also doing rather well on the global stage, based on 2019 turnover figures.
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However, this might change because of the 2020 pandemic, but until March of last year, most were reporting strong sales in domestic markets, eastern and central European states, and an increasing interest in European equipment from farmers in the Americas. Interestingly, dairy equipment companies have consolidated their presence in the upper realms of the top ten by 2019 turnover, while producers of equipment for arable or forage production, continue to grow in scale – often by acquisition. Just missing out on the list are names like Lemken at €380m, Vaderstad showing sales of €321m and Italian cultivation specialists Maschio Group topping out at €316m. One name missing from the list is Kverneland, which was bought by Kubota in 2012 and no longer publishes its standalone figure. Rural News understands that the company’s turnover is estimated to be around €500m. @rural_news
WHILE SOME parts of the New Zealand economy have been damaged beyond repair by the Covid-19 pandemic, the country’s ag machinery sector is not one of them. “There is a large swath of businesses that continue to show massive resilience to everything that has being thrown at them in the past year,” Tractor and Machinery Association (TAMA) president Kyle Baxter told Rural News. “With the agri sector, certainly one of the strongest performers.” However, Baxter notes that many TAMA member companies are seeing first-hand the challenges that European suppliers have to deal with on a daily basis. This includes both regional and country-wide lockdowns that are changing on a daily / weekly basis, causing huge upheaval to supply chains – all of which is affecting supply to NZ. At present, global shipping is causing the greatest upheavals for the industry. Baxter warns that this might result in delays to the supply of parts and equipment into and out of NZ during the first half of 2021. “I encourage each of our members to discuss the impact of these potential shipping delays with staff and more
importantly, their customers,” he says. “The sooner a business can identify potential supply problems, the more time they will have to look for alternative solutions to keep your customers operational.” He also adds that the annual discussions around “indent ordering” appearing to be happening quite a bit earlier than previous years, with many customers already making a commitment on spring 2021 equipment to secure delivery in a timely manner. Looking ahead, Baxter says the organisation is well into the planning of its second bi-annual TAMA Conference in Christchurch on 27 August. Running the theme of “Growing our World”, the event – with principal sponsor Rural News – will bring member companies up to date with industry trends, best practice and innovative solutions. It will also see three Emerging Talent Awards presented for sales, parts & service staff working in the ag sector. Additionally, TAMA is also looking to give boost to people just starting their careers in the industry. It recently announced scholarships for industry trainees, who are studying towards a certificate or diploma standards, the chance to pick up a $500 bonus. For more information visit: https://tama.org. nz/industry-training-scholarships/
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RURAL NEWS // JANUARY 26, 2021
22 MACHINERY & PRODUCTS / RURAL TRADER
Bill’s legacy lives on! FOUNDING DIRECTOR of a top local farm machinery manufacturer has died, leaving behind a legacy based on strength and reliability – personal traits that live on in his company and the products it builds. Bill McIntosh and his brother Bryant founded McIntosh Brothers in 1951, starting as jobbing engineers around Palmerston North. In the ensuing years, the company grew into a
leading manufacturer and exporter of farm machinery and the Manawatu’s largest crane hire company. The well-known McIntosh Farm Machinery range of farm gear, in blue livery, is among the strongest in the market and is now exported to various offshore markets. The McIntosh brothers got started in the farm machinery market by making sheep showers
Founding director Bill McIntosh (right) at McIntosh Farm Machinery’s Fieldays site solving the world’s problems with Rural News Group publisher Brian Hight.
and stock crates for trucks. The stock crates necessitated a crane, so the brothers built their
own on a Commer TS3 truck, then a second and a third –the beginnings of the crane part of
the McIntosh cranes business. In 1973, they displayed the first forage wagon
at the national field days, generating great interest among farmers. Those were early days
in the development of feeder wagons in New Zealand, but they are now a core product line for McIntosh Farm Machinery and a common sight on NZ farms. Before Bill passed away early this year, he was the oldest of three generations of the McIntosh clan working in the business, which has grown substantially since 1951. Possessing an incredible work ethic, Bill didn’t retire until health issues forced him to in his late eighties. He was 90 years old when he died – a milestone he had set himself, according to family members, saying “I’ll get to 90, then I’ll reassess.” @rural_news facebook.com/ruralnews
HELMUT’S LAST HARVEST MARK DANIEL markd@ruralnews.co.nz
HELMUT CLAAS, longtime managing director and chairman of the CLAAS group, has died at the age of 94. Claas was born in
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Former chairman and managing director of Claas Group Helmut Claas recently dies aged 94.
1926 in Harsewinkel, Germany, to parents August and Paula who managed a small agricultural
machinery firm with a workforce of around 100. After completing an apprenticeship as a machine fitter, then some practical experience in metalworking firms, Claas joined his parents’ family firm in Harsewinkel in 1958. In 1962, he became managing director and pursued a special focus on developing pioneering products and mass-producing them economically. During Helmut Claas’ era, the successful Dominator combine harvester – followed by the
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completely new Lexion, which is today said to be the most efficient combine harvester in the world, were developed. Also, the Jaguar forage harvester and the large tractor Xerion were developed under Helmut Claas. In 2003, he succeeded in taking an important step towards the company’s future by making it a long-line supplier, when CLAAS took over the complete tractor business from Renault Agriculture in France. Helmut Claas oversaw
the company’s greater internationalisation with the establishment and expansion of production sites in Russia, the USA and China. He was also a farmer, running a farm in East Anglia in Great Britain, where he spent time with his wife Erika and enjoyed keeping in touch with farmers in the neighbourhood and indulging in his passion for hunting. Moving forwards, the Claas Group will be steered by his daughter, Cathrina ClaasMuhlhauser.
Phone
06 323 4181
or
0800 625 826 for your nearest stockist
Joiners supplied FREE with culvert pipes
RURAL NEWS // JANUARY 26, 2021
RURAL TRADER 23 Quadbar introduces the new
LASER FF95
DIESEL HEATER
FLEXIBAR
735
$
+GST
Flexibar includes all the safety and convenience features of the Quadbar with the added advantages of: ü Huge 9.5kW output.
• A flexible joint that allows the bar to flex rearwards in the event of contact with an overhead obstacle
ü Made in Japan since 1991. ü Diesel is approx. 30-50% less than “on demand” Electricity or Gas.
• The joint facilitates some sideways flexibility before locking and becoming more of a traditional crush protection device
ü DIY Install or we can arrange. ü No wood to cut, cart or store. ü No mess, NO indoor diesel odours.
• In the event of a rearwards flip there is negligible movement from the flexible joint
Recommended by Worksafe. ACC subsidy available
ü As easy to use as a light switch.
0800 379 247 www.avonheating.co.nz
• The top section of the Flexibar can also be easily removed for transportation inside a vehicle.
For a Quadbar, call me, Stuart Davidson, owner of Quadbar NZ. Phone: 021-182 8115 Email: sales@quadbar.co.nz or for more info go to www.quadbar.co.nz
DOLOMITE
NZ’s finest BioGro certified Mg fertiliser For a delivered price call... 0800 436 566
YOUR ADVERT HERE For details contact: JULIE BEECH Ph 09-307 0399 julieb@ruralnews.co.nz
Rubber Safety Matting • ATV Carrier Mats • Exit/Entry Areas • Calf Trailers • Horse Floats & Trucks • Weigh Platforms • Bale Mats • Comfort Mats for Wet & Dry Areas • Utility Deck Matting
BEAT THE COVID PRICE RISE!!! Shipping costs up by 250%. We can’t absorb them. Some existing stock available at the old price. Act now!
Phone: 0800 80 8570 www.burgessmatting.co.nz
Citrus Cleaner Concentrate Moss Killer Super Strength Moss Killer Hard Surface Dairy Shed, Smokhouse, Butchery and Fishing Boat Cleaner exclusive covid 19
10%
discount off
Click on ‘enter promo code’ at checkout type ‘summer 2021’ and then lock ‘apply to redeem the discount.
*Discount applies exclusively for lifestock block owners and the rural sector. Promo expires 28th of February 2021
FLY OR LICE PROBLEMS? Tuatara 1000 specifications: • 1000cc 3 cylinder engine (69hp); • Manual 5x speed transmission; • All steel construction; • Electrophoresis anti-corrosion treatment; • Road registerable
The magic eye sheepjetter since 1989
Price $ 20,865.00 plus GST
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
www.tuataraatv.com Tel. 0274-770-070
07 573 8512 | dipping@electrodip.co.nz – www.electrodip.com
WWW.toXc.co.nZ 0508 987 363
FREE
New models have arrived for the smaller lawn with a smaller price!
nationwide delivery
BEST QUALITY | BEST Price | BEST ADVICE BEST QUALITY | BEST Price | BEST ADVICE
CALL FOR DISCOUNTS ON| DEVON TANKS BESTNOW QUALITY | BEST Price BEST ADVICE
WATER TANKS, PUMPS & FILTRATION WATER TANKS, PUMPS & FILTRATION
WATER TANKS, PUMPS & FILTRATION DEVAN CALPEDA • PURETEC • OASIS CLEARWATER DEVAN •• PROMAX PROMAX • •CALPEDA • PURETEC • OASIS CLEARWATER DEVAN •TANKS, RX • CALPEDA • AQUA • OASIS CLEARWATER WATER PUMPS & FILTRATION
0800 38 44 50
BUFFALO BOOTS!
After 26 years of providing workwear to New Zealand farmers - our rainwear & footwear is the best it has ever been. We have a reasonable amount of stock right now, but are planning to send a lot of this to Australia very soon. So if you need boots - please order soon to avoid missing out. Earthwalk Buffalo Boots have WAXY thick buffalo hide uppers which are 175% more crack and water resistant than normal leather. The nitrile rubber outsole won’t crack, split or break down in soil. It is stitched to the buffalo leather upper...
9am-5pm
0800 16 00 24
P: 0508 326 8888 • www.thetankguy.co.nz A: 30 Turners Road – Feilding ENDS 10 FEBRUARY
FREE SHIPPING! SLIP ON
LACE UP
$145
ZIP STRIP quick lacing
valued at $320
$20
STEEL TOE X (with Scuff Guard) PLAIN TOE (without Scuff Guard)
New Zealand owned & operated PHONE
DEVAN • PROMAX • CALPEDA • •PURETEC • OASIS CLEARWATER P: 326 8888 www.thetankguy.co.nz P:0508 0508 326 8888 • www.thetankguy.co.nz A: A: 30 30 Turners RoadRoad – Feilding Turners – Feilding
ONLINE
earthwalk.co.nz
$140 valued at $280
STEEL TOE X (with Scuff Guard) STEEL TOE (without Scuff Guard) PLAIN TOE (without Scuff Guard)
NEW WAXY BUFFALO LEATHER! 175% more crack resistant Leather Traditional Stitched on soles Wide Fit Nitrile Rubber Outsole Heavy Duty Elastic Sides (Slip On) Outsole won’t Crack or Split Calfskin Tongue & Collar (Lace Up) NEW WATERPROOF INSOLE! NEW DURABLE LUXURY FOOTBED
sizes: 5 - 13 (NZ) CHEQUES
earthwalk, r d 2, palmerston north
(free shipping - order between now &10 February)
East Coast
Farming Expo
24–25 February Wairoa A&P Showgrounds Gates open 9am both days
Two days of demonstrations, exhibits & seminars just for sheep & beef farmers Explore new ideas for your farming operation “The farming expo is an excellent way to bring rural professionals and businesses into one place for farmers!” Tickets available online or at the gate
eastcoastexpo.co.nz