Issuu

AUGUST 2015

Winds of change: National Conference 2015.

NATIONAL POLICY The Wright report Water quality assessment needs rethink

Future watermark Feds launch water team.

Rating better Farmers benefit from Federation advocacy

REGIONAL POLICY Flood shout Federation involved in relief effort

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INDUSTRY GROUPS DIRA Is our dairy sector competitive enough?

THE FUTURE Tomorrow’s farmers — p10-11

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National Farming Review August 2015

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PERSPECTIVE

Facing today’s challenges

INSIDE

Feature

A future primary sector

. . 10-11

Regulars: Perspective

National Policy

3-6

Counterpoint . .

Regional Policy

8-9

Family succession

Profile

18, 26, 30

Economy

Industry groups

Weather . .

Insider

By Dr William Rolleston Federated Farmers National President My role as vice president of the World Farmers Organisation (WFO) gives me the opportunity to talk to many different farmers from across the world. Their situations are very different, from the large operations in the Americas with access to all the machinery of modern agriculture, to the African farmer on less than a hectare of land still under the tyranny of the hand hoe. What strikes me is that there are many themes common to all farmers around the world. In particular, farmers worry about how they will increase production and productivity while reducing their environmental footprint, how they will build resilience — particularly in a changing climate — and how they can get access to all the tools available in agriculture. For the Africans it is as simple as the revolution in productivity a tractor would bring, for New Zealand farmers it is access in a small market to the latest developments in plant and pest control. The WFO adopted a new policy on climate change which is very similar to

Modern technologies — be they digital, biological or physical (such as water storage and reticulation) — help us build resilience in the face of the many uncertainties agriculture faces. recent very successful national conference and of this edition of The National Farming Review. This year has brought challenges for agriculture on both the climatic and economic fronts but I am hopeful the TPP negotiations and the climate change talks in Paris later this year will bring us some more positive certainty in an uncertain world.

Conference highlights way forward By Graham Smith Chief Executive

Editor: John Donnachie Ph: 04 470-2162 jdonnachie@fedfarm.org.nz Memberships: April van Dam Ph: 0800 327-646 avandam@fedfarm.org.nz Advertising: Linda Friedrich Ph: 021 225-4610 linda.friedrich@apn.co.nz ■ ISSN 1179-4526 ■ Page 1: Hemi Dawson pictured with sons Hemi Wiremu (left) and Airihimana. Photo courtesy of Morgan Lee

what Federated Farmers has been saying for the past few years. That is, if we are to play our part in feeding a growing population and at the same time do our bit for climate change, we must continue to improve our productivity and increase the carbon efficiency of our products. There is also a growing recognition that a focus on absolute reduction in biological emissions, particularly methane, is not justified and will not lead to buy-in from developing countries. Modern technologies — be they digital, biological or physical (such as water storage and reticulation) — help us build resilience in the face of the many uncertainties agriculture faces. As the TPP talks move toward their hopeful conclusion, the message that free trade also builds economic resilience is one we are continuing to communicate. Resilience was the theme of our

The recent strategic refresh reinforced the core purpose of Federated Farmers is to help and support our members to build better businesses in a competitive world. The articulation of our role was timely and important as Federated Farmers members operate within a dynamic, innovative primary sector, the backbone of the New Zealand economy. Our national conference last month highlighted some of the things we need to focus on to build an increasingly resilient primary industry, particularly relevant given the market volatility being experienced at present in some sectors. This included a look at the importance of food safety, how we manage water effectively, our ability to withstand economic shocks, and what role Maori will play in a future workforce.

One of Federated Farmers strategic themes is to take a stronger pan sector approach to major primary sector challenges and opportunities. As part of this initiative, we recently launched a National Water Team to guide our thinking on major water issues facing the country; including water quality, storage and nutrient issues. We have also formed a national Science Team to help nurture the development of Federated Farmers policies through sound, scientific evidence. The team will also comment on the capability of New Zealand’s science system, and work to ensure our primary sector continues to have

access to a world-class technology pipeline, underpinned by strong research and development (R&D). In this edition of The National Farming Review we focus on what it takes to maintain and sustain a future primary sector. Stephen Jacobi discusses future trade potential on page 7, and we also look at family succession on page 12 and the importance of soil science. I would like to pay tribute to our National President Dr William Rolleston who was recently elected Vice President of the World Farmers Organisation (WFO). This is an outstanding achievement for William and Federated Farmers and has wider significance for our country and global agriculture. Having Dr Rolleston in such a position confers on New Zealand a stronger influential voice and reinforces our reputation as a premier agricultural nation on the world stage.

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August 2015 National Farming Review

NN AT A ITOI O NN AL AP LO PO L ILCI Y CY

A welcome and fundamental move By Don Carson Dairy industry critics have made politics out of recent reports on water quality by the Parliamentary Commissioner for the Environment. Dr Jan Wright has issued two reports, Managing Water Quality: examining the 2014 National Policy Statement and updated her 2013 Land Use and Nutrient Pollution report. But nearly all commentators missed the real significance of Dr Wright’s reports. From chemicals to biology The first report signals a major change. Previously she had taken a broad-brush generic interest in nutrient discharge in waterways. Now her approach is more targeted. Dr Wright’s report concentrates on what needs to be fixed. She advocates, “focused efforts on certain water bodies, especially those which are especially vulnerable, or under particular pressure”. “It is critically important that councils prioritise their efforts and expenditure, so that immediate problems and pressure points are tackled early.” “Not every waterway in the country is in need of management. And where water quality is under pressure, not every attribute is important. Comprehensiveness should not trump effectiveness.” In previous reports, Dr Wright used the volumes of sediment, nutrients and bacteria as measurements of water quality.

In her latest report, she recommends bio-indicators, such as populations of fish, insects and algae to assess the health of an ecosystem. If the macro-invertebrates (i.e. big insects) are doing well, we can assume the sediment, nutrients and temperature are not a problem. Conversely, if the index of macro-invertebrates is low, then the health of the watercourse is poor and something needs to be done about it. This is a welcome and fundamental shift. It moves attention from chemical decimal points along to the endgame of the actual life in the river. Her update report reinforces this theme. The earlier 2013 report focused on just two attributes — nitrogen and phosphorous — pointing to their role in contributing to algal growth. The 2015 update looks at macroinvertebrate health. For 2000-2010, data from more than 300 testing sites shows

no change for 80 per cent of them. Stream health is generally stable. Noticeable were improvements in Taranaki, and ‘red dots” indicating decline in some parts of Southland. Southland Regional Council data from the same period grades four of 71 sites as ‘poor’. These statistics — broadly the 80/20 game — are a strong endorsement of Dr Wright’s emphasis on hotspots. Wrong figure in — wrong figures out The welcome change in Dr Wright’s direction in measurement of stream health is yet to be balanced by any revision of assumptions by her Ministry on land use change. The Ministry uses land use statistics to make assumptions on water quality and therefore regulations. There is more discharge from cow farming than running sheep, for instance. The 2013 report assumed dairy prices

would hold at $6 to $7 to drive 370,000ha into dairy conversions by 2020. The 2015 update report shows — through to 2012 — the area of land in dairy increased by 10 per cent from 2008. More recently of course, dairy prices have crashed well below $7. The 2015 report ignores this. It even questions whether it has underestimated the conversion rate. It highlights conversions to dairying in Waikato by 2012 having already exceeded its 2020 projection and so the Ministry claims “the 2013 report is likely to have underpredicted the nutrients that will be lost from land into water.” So, using one regional exception, the Ministry is sticking to its 2013 formula to get to 2020. It still believes in the accelerated loss of more than 700,000ha of sheep and beef farms. Some 500,000ha of hill country farmland is supposed to be planted in pines or revert to scrub. On the lowlands the remaining 200,000 ha will become dairy land. Still using the $7 payout, the Ministry imagines by 2020 in the Auckland region another 8000ha of dairy farming, 26,000ha more in Manawatu and another 37,000ha of dairy cow farming in Otago. It would be great if the $7.09 per kilo model Dr Wright uses was still real. It is not. The model needs to accommodate new price realities. To use Dr Wright’s own words, there needs to be “transparency which is characteristic of good policy”.

Reform needs to reflect farms are more than a workplace By Nick Hanson Policy Advisor The Health and Safety Reform Bill has been reintroduced to Parliament after the transport and industrial relations select committee reported back with alterations. This report had cast much trepidation in the farming community with concern about the impact the new Act could have on farming both in terms of compliance costs and the farming lifestyle. The proposed Bill is a significant part of the Government’s reform programme with serious implications for farmers and rural people. But the regulator’s message is that the

basic duty of the current health and safety legislation remains, which means farmers should do what you reasonably can to keep yourself and staff safe. Federated Farmers made a written submission which we presented to the select committee in person during 2014. Our submission focused on the uniqueness of farming compared to urban workplaces. Unpredictable and difficult to control factors such as weather, animals and working in isolation contribute to risk, and the added element of the blurred line between farms as workplaces and as homes added extra complication. The principal change to the reform Bill that has benefited farmers has been the reclassification of farms as they

relate to workplaces. Under the current legislation, and under the initial draft of the bill, the whole farm would be classified as a workplace at all times, which would have exposed farmers to liability for recreational visitors, family and friends when they are on their farm for nonwork purposes. The select committee report altered the definition to clarify that farm structures and their surrounding areas, like yards etc, are considered workplaces, but the rest of the farm will only fall under the jurisdiction of the Act when there is someone working in that area. There remains confusion over the arrangements between different types

of business in the same place. For example there is potential for farmer owners and sharemilkers to have overlapping duties which would require them to collaborate to the extent that each has influence over the work being done. It may be that this is reasonable but the Bill is not clear on exactly how that part of the Act could be implemented. In an additional step, the Government has announced that they will specifically exclude the farm house from the scope of the Bill, even though the select committee report did not recommend it. This was a key recommendation in Federated Farmers submission and is positive, although worker accommodation will still be covered by the Bill in some circumstances.

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National Farming Review August 2015

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NATIONAL POLICY

Traction for rates reform By Nick Clark General Policy Manager Federated Farmers is welcoming Local Government New Zealand’s recently announced manifesto for reform of local government funding. Readers of the NFR will be very familiar with Federated Farmers’ long-standing advocacy for a reduction in the over-reliance on property value based rates to fund local government. Rates are something we devote a lot of time and energy to, both at a local level and nationally. Until recently, it seemed that our efforts to get reform of funding were destined to founder on the indifference of local and central government. That’s now changing with local government nailing its colours firmly to the mast of funding reform. This has been prompted by realisation that current funding sources are increasingly inadequate to cater to

demographic change, the everincreasing costs of key infrastructure like water and roading, and the need to promote economic development. Sceptics suggest that this is about local government wanting to grab more revenue to fund more spending, but even LGNZ has acknowledged that councils must both improve their performance and reputation and have access to a range of fit-for-purpose funding tools. LGNZ’s ‘ten point plan’ for reform comprises the following ideas: 1. Special zones for growth to test new ideas. 2. Cost sharing with central government when new centrally imposed costs are considered, particularly where national benefit applies. 3. Removal of mandatory rating exemptions. 4. Application and administration process of the rates rebate scheme simplified to increase uptake. 5. Better guidance on trade-offs for funding council services from prices (user charges) or taxes. 6. Road user charges, targeted levies and fuel taxes allowed where economically efficient. 7. Retention of a share of value uplift

Sceptics suggest that this is about local government wanting to grab more revenue to fund more spending, but even LGNZ has acknowledged that councils must both improve their performance and reputation and have access to a range of fit-forpurpose funding tools. arising from additional economic activity related to local intervention and investment. 8. Proportion of mineral royalties attributed to local activities. 9. Specific charges and taxes on visitors where economically efficient. 10. Increase the range of community amenities funded through development contributions. Federated Farmers agrees with most of these ideas, especially broadening the rating base and making greater use of tools not based on property value. These should ease the rating burden, provided of course they’re not

just used to boost spending. We strongly agree with the need for local government to deliver its activities efficiently and effectively. The key is about what are the most appropriate ways to fund modern local government and how funding of local government should be sending the right messages to central government, councils and communities. Currently, over-reliance on property value rates fails this test dismally. Overall, LGNZ should be commended for its efforts and it’s refreshing that local government is taking this forward. Hopefully the Government will listen.

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August 2015 National Farming Review

NATIONAL POLICY

Winds of change set Feds on bold tack By John Donnachie National Conference 2015 “Resilient Agri-Business” may well be recalled in the future as a significant turning point for the Federation and farmers in general. It’s apt that this year’s conference was held in Wellington, the windy city, as there is certainly a wind shift in how the organisation is setting course, and its willingness to accommodate other, less comfortable world views. For example, who would have imagined a Massey professor holding the floor at a Federation conference talking climate change? Ditto that, a non-farmer discussing the inconvenience of ‘social licence’, and how farmers should be prepared to tackle it if they want to keep farming uninterrupted like their forefathers had. Perhaps conference 2015 will be recalled as a watershed moment for the Federation with the launch of the Water Team, an important strategic formation which is likely to have an enduring legacy for farmers and all New Zealanders. And, as the honourable Nathan Guy acknowledged, Federated Farmers is soon to launch its science team which will ensure the Federation has

credibility and nous for those pivotal debates ahead, around climate change and solutions towards farming environmentally and sustainably. Maori are our future farmers, Te Ohu Kai Moana chief executive Peter Douglas told the intrigued conference. If farming was to meet increased demands around global food production and MPI’s target of 50,000 extra primary sector workers, it would require significant recruitment of Maori. Westpac’s Dominick Stephens, meanwhile, assured the audience that the grass isn’t always greener on the other side. During a Q & A session we learned that the often envied Nordic countries were just as curious about us. “I lived in Finland for a year, and I can tell you, all the people there wanted to talk about is New Zealand,” he said. Throughout the conference the resilience theme resonated as guest speakers articulately linked innovation, trade, food security, water storage and economy as central aspects. The Federation’s reach and relevance has never been greater. The aspirations are bold

WIND SHIFT: MPI minister Nathan Guy opened Federated Farmers National Conference last month.

and uncertainties naturally follow. But farmers can be sure the 2015 Federation is seeking a more proactive and less reactive stance than in the past.

While the recent strategic refresh revealed Federated Farmers is regarded as a significant primary sector leader, the wider industry wishes and expects the Federation to lead more.

Last month’s conference set a precedent and though reactions were typically mixed, there was no doubt that members were better informed and as a result, better prepared for the challenges that lie ahead.

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National Farming Review August 2015

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NATIONAL POLICY

Federation launches Team Water By Cathy Begley Senior policy advisor water & environment I’ve always had a passion for water management, so when I was presented with the opportunity to work for Federated Farmers and lead a new Water Team I jumped at it. My connection with Federated Farmers is deep-rooted with both my parents having been long-time members. I also have a strong background in all things related to water. Throughout my career I’ve been in water management from a variety of angles and perspectives. When I was working at a multinational consultancy, many of my clients were farmers. More recently, I was involved with Te Runanga o Ngai Tahu and their policy team on water management in the South Island. The primary sector faces a number of challenges in the next few years and especially around water management. Some will be well aware of those challenges, if not feeling as if you are drowning in them. For others the pressures won’t be so pressing, yet. Those farmers who have had firsthand experience of water management, understand its complexity, and realise how technically challenging it is. The Federation has identified this as a significant issue which is why it made the decision to take a team approach. Team water is made up of Federation staff, along with national board members, provincial presidents and executive members. From the outset a decision was made that the team would not have governance role. It would, however, be a skillsbased team with a robust geographical and farming systems spread. Joining me on the team is Chris Allen (national board member with the water portfolio), Ian Mackenzie, Jamie Fallon and Bernadette Weller, along with Paul Le Miere, Elizabeth McGruddy and Lionel Hume. I do not envisage that membership of the group will be fixed and I’m looking forward to being able to ‘co-opt’ others to fill skills/knowledge gaps. At the moment the team is focusing on two main work streams. First, at national level Ministers Nathan Guy and Nick Smith have reignited Land and Water Forum (LaWP). LaWP consists of 51 organisations from Forest and Bird and other ‘Green’

FED’S WATER TEAM

CATHEY BEGLEY

CHRIS ALLEN

ELIZABETH McGRUDDY

LIONEL HUME

JAMIE FALLON

PAUL LE MIERE

IAN MACKENZIE

BERNADETTE WELLER

NGOs to primary sector organisations such as the Federation. Why is LaWF important? This is where Ministers Guy and Smith go to get their advice on water management at a national level. Thus it is vital there is a strong primary sector voice within this forum. From my observations of LaWF, I firmly believe the Federation is in a strong position to provide that voice.

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The second work stream provides a ‘hands-on’ approach and support to provinces that are facing water management issues now. This is a key role and it is anticipated the support we provide will assist and empower provincial presidents, regional policy advisors and the wider executive with the best advice and tools to address water management issues.

It doesn’t mean we will be coming and ‘camping out’ within your region. Rather, you have a team of people you can trust to help you on a ‘when needed basis’ in a way that is useful to you. Ideally, my vision is to empower all Federation members with the relevant support so that you can be influential and effective with water management in your province.

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August 2015 National Farming Review

COUNTERPOINT

Trade — the path to resilient agribusiness By Stephen Jacobi Executive director NZ International Business Forum New Zealand farmers know only too well that their incomes and livelihoods are inextricably linked to the international market. Trade is the foundation stone of resilience in the modern agriculture sector. We negotiate free trade agreements to seek advantage for New Zealand in the global marketplace. Trade agreements provide rules for the game and disciplines that ensure goods flow freely, costs are reduced and value chains are optimised, while enhancing transparency and security. Over the past three decades, free trade agreements have enhanced our farmers’ international competitiveness and expanded our options with diversified markets. More open trade has also given farmers strength and flexibility to withstand the shocks of drought, or diseases, or a high dollar, or going head to head with massively subsidised competitors. The significance of free trade agreements is increasing as the demand for food expands. The global population already exceeds 7.3 billion and over the next 50 years we will need to feed a lot more people. FAO and the World Bank estimate only 10 per cent of new demand can be met by

The significance of free trade agreements is increasing as the demand for food expands. new cropland, and only 20 per cent from better use of existing cropland using existing technology. The remaining 70 per cent must be met by technology and policy innovation, including trade and investment. Innovative trade policy means putting to bed old issues such as export subsidies and tariffs. New Zealanders learned a generation ago that protection is the worst enemy of innovation and competitiveness, yet our agricultural sector still faces ludicrously high tariffs in a number of markets, notably Canada and Japan. The way we do business is changing, as old models based on import/export give way to increasingly complex value chains and networks. Our farmers are supplying products into food processing and retail distribution around the world, as companies invest in offshore production and processing. The new trade agenda emphasises market integration rather than market access, with a focus on investment, supply chain connec-

tivity, regulatory alignment and innovation. Successive New Zealand governments have taken an active policy of looking ahead to negotiate trade agreements that will provide the rulesbased trade framework that underpins a sustainable future for our agricultural sector. The most high-profile current negotiation is the Trans-Pacific Partnership which, if successfully concluded, will shape the future environment for agribusiness in the Asia Pacific region. The next cab off the free trade rank — we hope — will be the European Union. In a recent major trade policy speech, EU Trade Commissioner Cecilia Malmstrom said the EU needed “to deepen its Asia Pacific strategy” and singled out Australia and New Zealand as “important regional players” . New Zealand is one of a handful of countries that does not have an FTA with the EU. Our trade arrangements are 30 years old and in some areas may leave New Zealand at a disadvantage. Many New Zealand exports still face

barriers, at the border or behind it, which add costs, generate uncertainty or in some cases even make trade uneconomic. There are also missed opportunities: Europe has 500 million consumers, who earn a lot, spend a lot and are interested in consuming the kinds of products and services that New Zealand produces best. In addition to supplying consumers directly, New Zealand companies are already engaging in strategic partnerships with European food processors, manufacturers and service providers. An FTA between New Zealand and the EU could offer significant opportunities to both sides to expand business in agriculture and food as well as technology, services (including tourism and education), niche manufacturing, research and investment. It could also link European companies with partners in a country that is already deeply embedded in the economic architecture of the Asia-Pacific, offering dynamic new opportunities to both sides. No trade negotiations are easy and each participant must be willing to explore issues of interest to the other parties. But an agreement between New Zealand and the EU would provide significant opportunities to consolidate the new global trade architecture, enhance the prosperity of both sides and support the resilience of the New Zealand agricultural sector. ■ You can find further information at www.tradeworks.org.nz.

National Farming Review August 2015

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NATIONAL POLICY

Feds advocacy softens rates burden By Nigel Billings Federated Farmers Senior Policy Advisor Writing the quarterly rates cheque for the council will be unusually challenging over the coming year, and is one of those cash demands that Federated Farmers has a mighty strong focus on. In 2015, Federated Farmers has submitted on the financial plans of 42 of the 50 North Island district and regional councils and 26 of the 28 down south — virtually anything with farms within the boundary. This was a Long Term Plan year, meaning the rating system was up for a look, along with expenditure forecasts for the next 10 years. This all happened between March and June, so it was mayhem for the Federation executives and policy staff working out the rating impacts on farms in each jurisdiction. Most of the news was not very good — appalling in some places. But in the

PATHWAY: Thames-Coromandel Council is showing the way after constructive debate over several years with farmers to establish a fair rating system.

true spirit of resilience, farming’s case was firmly advocated to councils and amongst it all there were some positive stories worth telling. While it’s a risky business making positive noises about rates, the dollar

value of Federated Farmers advocacy needs to be emphasised: farming would be the worse without it.

North Island

In Rotorua the district council proposed an enormous rates hike for many farms, mostly dairy. Word was circulating that, underneath the advertised 7 per cent average overall increase, there were rate jumps on individual farms of up to 69 per cent — thousands of dollars for some businesses. The local Federation executive cast a jaundiced eye over the numbers, and spotted a couple of subtle policy changes shifting a big chunk of rate revenue from flat charges to the capital value general rate. A series of hall meetings was organised, and ultimately the Federation and a number of farmers submitted against the changes. At least 30 spoke to the whole council about their concerns on a windswept Friday in June. Some had said it wouldn’t be worth the effort but, in its final deliberations, the Rotorua council throttled back on the changes, saving many farmers somewhere between $1000 and $4000 in what would have been increased rates — something for the bottom line and a real statement about the capacity of Federated Farmers to stem a fresh tide of costs. A moral and partial victory for an encumbered minority, its value shouldn’t be underestimated. Another positive story, of a somewhat brighter hue, can be found in Thames Coromandel’s Long Term Plan. Over a number of years farmers have worked on a constructive relationship with the council and a rating system that recognises the need for balance has been developed. A variety of flat charges, differentials and targeted rates smooth bumps and can bear fruit in difficult years. For 2015 farm properties will enjoy rates drops of between 8 and 18 per cent. While this won’t happen every year, it shows that farm rates can defy the odds and actually reduce if advocacy is solid and enduring. In Waipa a more grim tale unfolded, of a good rating system going backwards and major leaps in rates on farms proposed as the council sought, like Rotorua, to get more of its revenue from property value rates. A strong effort from the Federation executive and policy staff, and a submission hearing with at least 40 farmers attending, didn’t turn the tide but shaved some of the additional

rates off — somewhere between $200 and $500 for individuals for the year.

South Island

The Invercargill City Council proposed to increase farm property rates between 16 and 19 per cent, a stark contrast to the 3.71 per cent overall rates increase proposed. The council also indicated it was going to phase out the farming differential, which currently gives rural ratepayers a 20 per cent ‘discount’ on property value-based rates. Yet even with the farming differential, farmers are still paying many times more than residential ratepayers for a number of council services and activities. Federated Farmers Southland strongly opposed the proposed farming rates increases and the phasing out of the farming differential. As a result of our submissions, the council decided to increase the farming differential from 20 to 30 per cent, resulting in hundreds of dollars’ worth of rates savings for farmers in Invercargill City District. Meanwhile Otago farmers, struggling to get their heads around how to best meet new rural water quality regulations, were given a further shortener through proposed targeted rates to fund science and monitoring, and a proposed new dairy rate based on catchment risk. The message that only rural resource users were facing new water quality rules, and “oh by the way” only rural resource users would be paying specific targeted rates for the regional council’s regulatory responsibilities, received a fairly prompt response from the Federation and Otago farmers, many of whom submitted to the process. To their credit, Otago Regional Council stepped back from its proposals, reducing the water quality targeted rate to just over 60 per cent of what was initially proposed, and agreed to charge dairy farmers only one dairy monitoring rate per farm, reducing that rate to a third for those farmers in the sensitive catchments. In Kaikoura, the council also listened to Federated Farmers and made changes to its road spending, is adjusting its differential for footpaths, and is moving to use uniform annual charges to fund its contribution to the local hospital and for funding the swimming pool. This will save farmers at a time when farm incomes are coming under severe pressure from the impacts of the drought and low dairy payout.

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August 2015 National Farming Review

NATIONAL POLICY

Efficiencies need to be found beyond farm gate By Jacqueline Rowarth

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companies, in whatever sector, will only drive down prices for the New Zealand farmer. Holding back product to increase demand has the opposite effect. An intelligent parrot might indicate that smart marketing also has a part to play.

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‘Perfect storm’, ‘resilience’, ‘wriggle room’ and ‘belt-tightening’ are cop-out terms. What rural New Zealand is enduring is serious and has ramifications for the whole country. Low payout, environmental extremes and increasing compliance pressures mean that it is quite difficult to know what to do for the best, and predicting the future has never been easy. In The economics of just about everything, former economics professor at the Australian National University, Andrew Leigh, explains that to assess the accuracy of a prediction “economists typically use as a benchmark the naı¨ve assumption that next year’s growth rate will be the same as this year’s growth rate”. Teaching a pet parrot to squawk this year’s growth rate will be “off” for next year by 1.1 per cent, whereas typical forecasters were off by 0.9 per cent. “In other words,” says Professor Leigh, “business commentators were only about onefifth better than a pet parrot.” The origins of the current problem are complex, but what is clear is that farmers in the dairy sector have, mostly, been behaving responsibly. Analysis by University of Waikato Economics Professor Frank Scrimgeour has shown that in the last decade, operating and capital expenditure has been restrained over the last five years in comparison with the first five years when the dairy debt increased significantly. DairyNZ (using data compiled by StatisticsNZ) reports that in the past 10 years, dairy farm input prices (excluding interest rates) increased by 3.6 per cent per year on average; the general rate of inflation was 2.5 per cent per year during this time. From June 2013 to June 2014, overall farm inflation was 3.9 per cent in contrast to general inflation of 1.6 per cent. The biggest contributors to this inflation were stock grazing (over 20 per cent price change for dairy cows being grazed off farm) and electricity (almost 15 per cent). Supplementary feed costs increased by 7 per cent. Media commentary that farmers who have taken on debt to intensify and now face high production costs, deserve what they are reaping, is unjustified. A benchmarking study of cost of milk production in 46 countries, released last year by the International Farm Comparison Network (IFCN) Dairy Research Centre at the University of Kiel, shows lower costs of production for a herd of 974 cows than for 348. Although costs of feed were higher, labour costs were lower per kg of production — capital investment leading to improved labour productivity and economic growth. In the Waikato, DairyNZ has put actual budgets from top farmers on its website to assist other farmers in benchmarking costs. At a $5.25 milksolid payout a System 5 (40 per cent bought-in feed) farmer has operating costs 8.5 per cent higher than a system 2-3 farmer (up to 20 per cent bought-in feed), but fertiliser costs are halved and profit per hectare is 212.6 per cent higher — $1705 per hectare in comparison with $802. Professor Scrimgeour’s analysis incorporating the rising costs calculated by DairyNZ indicates that efficiencies and productivity gains have been achieved on farm. “The rural service sector should now be looking at the costs and efficiencies of their service provision,” he says. In addition, the processing and marketing arms of the primary sector — the co-operatives — need to re-examine their fundamental strategies. What is needed for resilience is a rethink of the value of food so that farmers are paid a fair price for their product. This requires acknowledging the value that is created in New Zealand pre-farm gate. Despite the minimum wage, Holidays Act, OSH, and high environmental compliance requirements, New Zealand farmers are still amongst the lowest-cost producers per kg of milk solids in the world according to the IFCN study. We should be able to market our product on the basis of pasture-fed, free range, clean and green . . . Nielsen’s report on Global Health and Wellness involving 30,000 consumers in 60 countries released in January indicated that ‘all natural’ rated as very important in 43 per cent of purchasing decisions and ‘ingredients

‘Meat’ and ‘milk’ from New Zealand would appear to fit the bill. Clearly, any opening sales gambit for New Zealand-produced food should be on the basis of production costs and fair returns. Auctions and undercutting other

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National Farming Review

August 2015

www.fedfarm.org.nz Ph 0800 327 646

FEATURE

A future primary

Whether it be labour shortages, family succession plans or capacity to withstand economic and climatic instability, building a skilled, resilient primary sector is crucial to New Zealand maintaining its status as a world leader in agriculture. John Donnachie reports on why our fastestgrowing demographic may provide the answer.

“Maori are the future”, Peter Douglas, chief executive, Te Ohu Kaimoana, told the Federated Farmers National Conference last month. A statement you would perhaps expect from a Maori incorporation/trustee entity but aside from the sound byte, there’s strong evidence to back Mr Douglas’ future vision of a primary sector reliant on Maori. As New Zealand society ages — the average farmer is 58 years old — Maori will become the predominant workforce in a shrinking labour market presenting agriculture challenges to attract and maintain skilled employees and leaders.

FUTURE FARMERS: Taratahi first-year students Hemoata Kopu and Taane Hubbard were 2015 Ahuwhenua Young Maori Farmer of the Year finalists. The training provider says Maori enrolment has increased 60 per cent on 2014.

Maori account for around 15,000 in the primary sector, with most employed in meat and fibre industries. Still, recent Government figures show they have the highest rates of youth unemployment at around 22 per cent. Over half of Maori male school leavers leave without any school qualification. To put this into context, in the future this group will be responsible for paying taxes to fund health and the rest of our superannuation. The Ministry (MPI), meanwhile, estimates more than 50,000 workers (26,000 tertiary trained) will be required to meet future aspirational goals of increasing value of exports while sustaining our place as an agricultural superpower. Maori are arguably predisposed to building a resilient farming sector. Traditional cultural values such as Whakapapa (genealogy), Whanaungatanga (tribal relationships) and Kaitiakitanga (land stewardship) embody what it takes to establish a profitable and sustainable business. South Island iwi Ngai Tahu is well

versed in these synergies with portfolios in forestry, fishing, tourism and farming. Its business model has added resilience, with its farming arm collaborating with Lincoln University and Telford to produce graduates who progress to managerial roles after starting at farm entry level. The Whenua Kura programme started last year, with on-farm training and study offering young Maori (aged 18-34) a certificate in farming (dairy). More recently, students were offered the incentive of achieving a tertiary qualification with a Diploma in Agriculture course. Nga¯i Tahu pay tuition fees and students are also offered a cadetship on the farms throughout their holiday breaks. Those who gain the diploma can progress to degree level. Programme manager Renata Hakiwai said the mainland iwi’s ultimate aspiration was to establish “Maori as leaders in Agribusiness”. “With the increase in iwi settlements and the return of assets there is

even greater opportunities for Maori, to grow revenues and develop our farming,” he said. At present there were 32 students including 12 women. Mr Hakiwai said dairy farming was the focus, though six students were learning about beef and sheep farming. “The young women tend to be prominent in the more vocational field,” he said. From the 10 students studying the diploma at Lincoln, five were women. Otherwise, Whenua Kura training levels 3 and 4 were specifically geared towards preparing students for land based employment, “injecting cultural values, land stewardship with bringing communities closer together” the key aspects. Since last August, the entry courses had achieved a “good strike rate” with 10 students already employed — seven staying on at Ngai Tahu. Mr Hakiwai said the programme had its challenges and it was a case of “going into the unknown”. They had to build a workforce and there were logistics around getting out to farms and setting up accommodation. Moreover, the Maori youth of today were generally urbanised and as a result, had grown up disconnected from the land and their culture. “We’ve had to try and break that cycle,” he said. The aim was to make students aware of the importance of traditional communities and how that builds resilience and protects assets. Dairy farm manager and Agribusiness student Hemi Dawson looks after a 1000-strong herd at one of Ngai Tahu’s Canterbury development farms. He also mentors and teaches students. “They [students] are our future leaders and it would be really awesome to see them come through one day and manage the farms, and I’ve made that my personal goal — I want all of the Whenua Kura students who come through to progress,” he said. Raised in Dunedin, Mr Dawson said rural life took some adjusting to, with its lack of facilities and services. But he and his whanau have no regrets. “I couldn’t go back to city life now. I much rather visit and return home to my rural surrounds,” he said. The opportunity to work on his ancestral land had changed his life and outlook. “There is always something to learn

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August 2015 National Farming Review

FEATURE

sector workforce

in farming because it is a living entity. There is always a different way to do things and look at things,” he said. Next year the Whenua Kura programme would be expanded, with level six and seven courses dedicated to research. Mr Hakiwai said they would also be looking to add more beef and sheep into the existing structure. Ngai Tahu Farming expects 300 students to graduate to employment in the farming sector over the next five to eight years. Mr Hakiwai said “For us, it’s about diversifying the options as well — we can start with agriculture but the potential is there to move into other sectors of the primary industries such as apiary studies, forestry, horticulture, and environmental science and research options.” Maori farmers’ willingness to diversify is not new, and is borne out of survival, rather than modern resilience measures against climate change or nitrogen output regulations. In a paper published in the New Zealand Grassland Association, Dr Tanira Kingi outlines the often concealed strengths of Maori agriculture, saying the uniqueness of indigenous culture presents vast potential for the future. A former Agresearch senior scientist, he proposes a vertically integrated whenua business model and discusses Maori culture’s inherent tendency towards organisational resilience where Maori farmers take a long-term view with succession, development and assets. Maori agriculture is “vibrant” he says, this in spite of land treaty grievances and the population shift to urban areas. Those protocols around ancestral land, legislation and historical land loss made selling up unacceptable to the landowning majority. “Generally speaking, Maori don’t sell their ancestral land,” he said. In his paper, Dr Kingi relates Maori cultural values with modern agribusiness principles of investment, diversification and collaboration, and behind this, the iwi aspiration for landowners to manage their land more sustainably. And, through trading and joint arrangements with other iwi the potential exists to develop an integrated business model surpassing individual farm units “through scale and to capture value chain opportunities”. He also suggests Maori farming

“Our Maori students are attracted by the deep connection with the land which Taratahi’s hands-on immersion in farming offers. At all levels the Taratahi experience teaches teamwork and selfreliance in a wide range of skills that build confident farmers.” — Taratahi Trustee Chair Mavis Mullins collectives are at lesser risk than singleenterprise farms when coping with adverse conditions or environmental challenges. Moreover, they had different motivations for driving business performance and efficiency. In a typical catchment, Maori farming operations will be backed by multiple enterprises. This meant landowners and shareholders were obligated to ensure consistent returns with dividend on shares or owners’ investment. “Those [Maori] corporations generally have solid structure and ready access to capital to deal with recurring issues around erosion, sedimentation or leaching. It forces trustees to think more specifically about portfolios and long-term planning.” Also, because of the intergenerational stewardship, there is less likelihood of debt and more focus on healthy balance sheets, he said. Historically Maori were less reliant on one aspect of farming, choosing instead to utilise natural land assets in times of hardship. Being able to harvest forestry plantations early or when it suited, and the ability to move stock from milking platforms to other dairy support or even drystock areas of the farm, was an advantage that smaller scale farms did not have. Taratahi is the country’s largest agriculture training provider, with a suite of courses which cover all aspects of farming from entry to diploma level in partnership with Massey and Lincoln Universities. Students have also the option of continuing their training with the Primary ITO. The Wairarapa-based organisation

receives the majority of funding from the Tertiary Education Commission and, with campuses throughout the country, it has been in existence since 1919. Taratahi Trustee Chair Mavis Mullins said Maori accounted for around 30 per cent of students (584 out of 2100) across all course disciplines, with a fifth being young women. “Our Maori students are attracted by the deep connection with the land which Taratahi’s hands-on immersion in farming offers. At all levels the Taratahi experience teaches teamwork and selfreliance in a wide range of skills that build confident farmers,” Ms Mullins said. As with many tertiary programmes leading to satisfying careers, costs can be prohibitive for Maori students and their families. However, a recent initiative with the Government’s Maori Pasifika Trade Training Scheme is making a difference. Since the establishment of an MOU with the Eastern Institute of Technology (EIT), Maori enrolling in Taratahi programmes has climbed an unprecedented 60 per cent since last year as a result of closer affiliation. “We’re able to offer competitive scholarships to Maori young people wishing to take up agricultural trades training via Taratahi,” said Ms Mullins. Funding and subsidisation of study fees and travel was a big incentive and students were understandably taking up the advantages on offer. The training provider was building relationships with iwi, Maori trustees, schools, youth organisations while also establishing marae based training.

“We see not challenges but immense opportunities to attract more Maori students into agriculture and agribusiness.” Taratahi “was a partner [of] choice in this endeavour”, with the progression of students to positions of leadership in the primary sector being a high priority for iwi. However, Maori are not flocking to our traditional tertiary institutions. The National Farming Review contacted the University of Waikato Agribusiness faculty who were reluctant to discuss rolls, but a spokesperson said numbers were notably small despite the institution “bending over backwards” to attract Maori. Massey University, meanwhile, did provide figures and they showed Maori accounted for just 7 per cent of the 1104 students enrolled for semester 2 across all Agri-science disciplines. Massey senior lecturer Dr Nick Roskruge, conceded numbers were disappointing but the university was soon launching a Maori Agribusiness major with their commerce programme which was open to all New Zealanders, and this reflected a growing interest. He said: “There is no lack of effort, but it’s a slow process with Maori and it takes time for anything to gain traction.” Massey was attracting urban Maori, even from Auckland, and those students were “keen and generally doing well”, he said. A future primary sector reliant on Maori was conceivable, though the pathway to achieving that might come in other forms. “The skill set required to participate in future Maori agriculture and horticulture and other primary sectors is varied, and of course we have other programmes such as food science, engineering etc. all of which can provide skills relevant to the sector.” Nevertheless, the agriculture sector should be targeting all youth, as the majority were urbanised and generally would share the same peer influences regardless of ethnicity. “Young people have to be keen and genuinely interested. It’s not a case of ‘there you are, do this’. Our biggest problem has always been convincing people of the importance of agriculture and getting those smarter kids involved.” Farmers could do more to encourage youth to get interested, especially with farms likely to come more under corporate management with the decline of the family farm model. “They [youth] need to be exposed to the environment and have that positive experience at a much younger age. It’s about building relationships and that can be done through cadetships or hunting or youth clubs even,” he said. Dr Kingi, meanwhile, believes the Te Ture Whenua land reforms could be the trigger that awakens Maori to the potential of agriculture. The land reform legislation was introduced in 1993 with the purpose of promoting the retention, use, development, and control of Maori land subject to the Treaty of Waitangi. It would benefit Maori in two ways. Landowners would be granted more control over how they utilise their land. And, as a support system it would enable better structures, improving governance and ownership. The transfer of individual trusts to essentially corporate entities would raise the profile of Maori farming and create more certainty with banks. “It’s always an aspiration to get more Maori into agriculture and building a capable workforce is linked to the land reform, though it does not always follow,” he said.

National Farming Review

August 2015

www.fedfarm.org.nz Ph 0800 327 646

FAMILY SUCCESSION

Keeping it in the family

An indirect benefit of employing a successor is that wealth is kept within the family.

By Kate Wills Farm succession is not just about the transfer of land, but about celebrating people’s history in the land and retaining family and community identity. Family farms have been the backbone of New Zealand farming for a long time, and this will continue despite the growing corporate model. Establishing a clear, affordable and equitable transfer of the family farm from one generation to the next is a challenge. Substantial amounts of capital are involved. Graduated takeover strategies, such as sharemilking or leasing arrangements, can be pathways to ownership. These arrangements create independent wealth for the succeeding generation to invest in the family property, as well as enhancing their business experience. Gradual transitions into ownership may provide income for the retiring generation. Another challenge for farm succession is the ever-growing opportunity available to children from farming backgrounds to travel, study and pursue careers outside of farming. The effects of these are that farm ownership has become the domain of the experienced and well-capitalised — the average ages of New Zealand dairy and sheep and beef farmers are 43 and 58 respectively. Every attempt needs to be made to incentivise farm kids back on to the family land. A clear succession plan which sets out a viable career path is a good place to start. A good succession plan will provide you, your family and your employees, with clarity about the future and confidence the business you have worked hard to develop will continue to succeed. An impediment that farm owners may face when a successor is willing to return to the land is current farm employees. The successor may need to take someone else’s position. There are limited, defined circumstances that justify the termination of employment contracts, and often in this situation redundancy is the only viable option. Employers are free to make commercial decisions to reorganise their business. However their ability to do so is constrained by a requirement that the decision is “genuine”. In a genuine redundancy, employment

MAKE HAY: Family farms have been the backbone of New Zealand farming and offering more incentives is a way of convincing future generations to stay on the family land.

is liable to be terminated because the position is, or will become, surplus to the needs of the business. A redundancy for reasons which are not genuine, or where the employer does not follow the correct process, may amount to an unjustified dismissal. The focus of a redundancy must be on the position, not the person, and an employer must present evidence to justify the genuineness of the decision to disestablish the position. Such evidence usually involves a financial component.

A succession situation may be difficult to reconcile with redundancy requirements. Making a current manager or farm assistant redundant then immediately moving a family member into the same role indicates that the position is not surplus and therefore the redundancy was not genuine. One approach could be to create a new role that is materially different, which incorporates elements of the current owner’s role and the role(s) of the worker(s) to be made redundant. Integrating an element of manage-

ment responsibility will empower and motivate the successor, and develop their leadership potential, which will help to strengthen the resilience of the farming business. It will also allow the outgoing owner to take a step back. Relevant evidence to justify a restructure of this nature could be the financial benefits that would flow from the owner, whose time is more valuable, relinquishing an element of responsibility. An indirect benefit of employing a successor is that wealth is kept within the family. Successors work for more than just a pay cheque. They have a tangible interest in the property and revenue gained is typically redirected back into the family farm, which enhances the long-term prosperity of the business. In addition to genuine substantive reasons and evidence supporting redundancy, the process must be carried out in a fair and reasonable manner. Employees must be informed of their right to seek independent advice and to a support person. An employer must engage in meaningful consultation with affected employees, and may need to offer any redeployment opportunity if the employee has adequate skills or experience for it. The decision to make an employee redundant must never be predetermined. It is also important to be sensitive to the consequences of redundancy for current employees. Employers should carry out restructuring processes with tact and diplomacy, and seek to limit the distress which may arise out of situations where employees lose their jobs through no fault of their own. ■ If you have any questions about farming succession call 0800 FARMING for free, confidential and independent employment advice.

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August 2015 National Farming Review

REGIONAL POLICY

Federation helps flood-hit farmers By Kristy McGregor Regional Policy Advisor When it started raining on Friday, June 19, little did we know what was to follow. As the weekend went on, it was clear by Saturday night this was more than just heavy rain. For those in the Manawatu/ Rangitikei, Wanganui and Taranaki areas the subsequent deluge was the largest in some time. Federated Farmers mobilised and by Monday morning agricultural stakeholders were called together — Fonterra, DairyNZ, Beef + LambNZ, the Rural Support Trusts and the council met at our Palmerston North office. The hastily arranged response team set out to co-ordinate support to those affected farmers and communities, to ensure everyone’s time was spent as efficiently as possible. Between liaising with respective councils, the Rural Support Trusts and those other organisations, the National Flood Response Team met daily in the first two weeks to ensure farmers’ welfare was being cared for, and that they were receiving the necessary assistance available at the time. As this flooding was across several provinces, it took a significant logistical effort between the Taranaki, Wanganui and Manawatu/Rangitikei executives.

FLOOD LANDS: Stock is rescued from the Whangaehu Valley during the June floods. This was familiar sight across the Lower North Island and Taranaki, with many farmers still in recovery mode.

In the initial days following the floods, our local executive had the job of calling around our members to check that farmers were doing alright. Many farmers just appreciated the call from another farmer. Meanwhile, a number of the executive were still finding their feet, having

rescued lambs from rising waters, or having paddocks flooded and fences ruined. Since the floods, our Palmerston North office has been a hive of activity, acting as the co-ordination centre for MPI and the Rural Support Trust in the Manawatu/ Rangitikei.

Even after six weeks, data is still coming in from farmers who are only just now able to assess the extent of damage on their farm — and some are still unable to reach the back paddock. There has been an amazing pool of community strength. The flood recovery is not over — it will take months, if not a year, for farmers to get back on their feet. The floods were declared a mediumscale event and we are advocating to central government, with support of district councils, for increased funding for those affected areas. We are also working with MPI to ensure that farmers who need additional support have access to this. Federated Farmers is always there for farmers, that is the foundation of our existence and the recent flood shouts with the Rural Support Trusts, and our primary sector partners are testimony to that. This has been a wonderful way for farmers to get off the farm and gather at local halls, RSAs and golf clubs. The flood shouts throughout the affected provinces have been buzzing with activity, too. The conversation over the barbecue and drinks reflects what a resilient community we are part of — helping one another, and bouncing back.

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August 2015

REGIONAL POLICY

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PROFILE

Provinces are our biggest asset

Unlike in the States, advocacy here from the ground up can still make a difference at national-level politics.

By John Donnachie Federated Farmers’ new provincial engagement manager Jodie Campbell is eager to hit the road to help strengthen and re-energise what she believes is our country’s biggest asset. Having travelled a ‘large portion’ of New Zealand, American-born Jodie has always been fascinated about rural New Zealand and admired the social fabric that binds it together. “There is something really unique about the provinces and every community has their own distinct identity,” she said. Before settling here, Mrs Campbell studied biostatistics in the United States with a career in the pharmaceutical industry in mind. However, a vacation in sunny Nelson 12 years ago changed her life. What was supposed to be a working holiday picking fruit eventuated in a random employment opportunity at the Ministry of Fisheries, working on aquaculture development. “To be fair I knew nothing about fisheries or New Zealand’s primary industries for that matter. But they wanted a different perspective to round out the other analysts, and saw value in

GRASSROOTS ADVOCATE: The Federation’s ability to tap into grass roots advocacy should not be underestimated and is something to champion, says Jodie Campbell.

my alternative background,” she said. Mrs Campbell thereafter made the top of the South Island home, after meeting husband Mitch who was a Golden Bay local. The couple have

three children (aged 6, 4 and 11 months) and have recently moved to the Wairarapa, which means early starts for the Wellington commute. After two years at the Ministry (MPI) as a principal advisor — policy and trade, Mrs Campbell is looking to bring her expertise of revitalising businesses and relationship-building to Federated Farmers. For her the Federation’s ability to tap into grassroots advocacy should not be underestimated and was something to champion. “Unlike in the States, advocacy here from the ground up can still make a difference at national level politics. The politicians and officials know this, respect it, and generally are confident making decisions around it. “They are obliged because they know that is what a democracy is about. This is why Federated Farmers possess a credible voice, they have a

presence at Parliament and their members hold them accountable.” Mrs Campbell said she had ‘a typical’ view of the Federation and its penchant for lobbying when she took up the role but had been pleasantly surprised at how driven staff and members were. “There’s so much energy and aspiration among those I’ve met. You can feel the passion and belief, it is infectious, it’s obvious they invest so much in their work,” she said. As for improving and building provincial engagement, Mrs Campbell believes her role extends beyond what that brings to Federated Farmers. “The future prosperity of New Zealand is tied to the success of agribusinesses and exports from the provinces. Our kids’ future is dependent on it,” she said. “There is a direct relationship there with keeping our grassroots voice strong and making the provinces as capable and resilient as they can be.”

Government’s climate change aspiration ambitious By Federated Farmers staff Federated Farmers believes the Government’s Climate Change target of reducing greenhouse gas emissions to 30 per cent below 2005 levels by 2030 is ambitious for New Zealand. Federation Climate Change Spokesperson Anders Crofoot points to the Intergovernmental Panel on Climate Change report, which recommends reducing fossil fuel use as the major focus to achieve this target. However, agriculture will also play its part in development of technologies which will increase productivity while reducing carbon intensity of primary sector products. Mr Crofoot said: “Agriculture takes its responsibilities as New Zealand and global citizens seriously and the primary sector already has an impressive track record in achieving carbon efficiency. “We continue to play a role in meeting

the world’s demand for nutrient-dense protein and finding solutions which address both climate change concerns and the food security dynamic. To date, the amount of carbon released in producing a block of butter here in New Zealand is the lowest in the world. It is important to make sure our approach to reducing New Zealand’s emissions does not undermine our critical export industries. “In a resource-constrained world, it is vital to use resources efficiently and wisely. Climate change does not begin or end at our borders and New Zealand plays a vital world-leading role as one of the most emission efficient food producers and exporters in the world.” Mr Crofoot said New Zealand’s primary sector has made huge gains in carbon efficiency in the past three decades, through enhanced animal and plant genetics, as well as through a much greater understanding of livestock

digestion and metabolism. He says our agricultural emissions intensity has declined more than 20 per cent since 1990. “Reducing emissions from biological systems such as dairy cows is not easy. That’s why since 2003, New Zealand’s agricultural sector has invested $30 million to help find solutions.” AgResearch scientists have already identified five different animal-safe compounds that can reduce methane emissions from sheep and cattle by 30 to 90 per cent. Further trials are needed to confirm that these compounds can reduce emissions in the long term, have no adverse effects on productivity and leave no residues in meat or milk. But all going well, we could possibly see a commercial product for use onfarm within five to 10 years. “Continued investment will be required to develop science to reduce

and treat biological agricultural emissions. This is how we can make a considerable contribution to reducing global greenhouse gas emissions by getting larger developing country emitters to adopt our technologies,” he said. New Zealand is already sharing its developments and gains through the Ministry for Primary Industries and Federated Farmers Global Research Alliance World Farmers Organisation Study Tours. The aim is to increase global understanding on agricultural greenhouse gas research and engage farmers on environmental management practices that support sustainable productivity. “The task before us now is to work on solutions built off an understanding of the strengths we have as an agricultural producer, and how best we can grow those strengths in a manner that improves emissions efficiency and farm productivity,” Mr Crofoot said.

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August 2015 National Farming Review

ECONOMY

Dairy prices will impact By Michael Gordon Senior Economist Westpac

Phenax® Classic

SCABBY MOUTH VACCINE

THE SCRATCH VACCINE WITH A DIFFERENCE New Zealand Research and Development • Includes a New Zealand ORF virus isolate

Unique Formulation

• New Zealand trial work • Tailored to our farming conditions

• New Zealand Master Seed

• Made in New Zealand

• Manufactured separately to all other commercially available scabby mouth vaccines

Quality Product

• Phenax® Classic incorporates a dark blue dye which increases the intensity and visibility of the scratch on the animal’s skin.

• Effective scabby mouth vaccine for the past 24 years

Product Storage • Vaccine is able to be stored in a home refrigerator or freezer

Improved Vaccinator • Ensures dose accuracy • Significantly increases operator comfort

Product Supply

• Easy-flow needle for application • Robust anti-roll screw top provides a secure fit

• Supply assurance, on time

PHENAX® CLASSIC has more differences to other scabby mouth vaccines than you can shake a stick at. These differences may be as distinct as chalk and cheese or the old apples and oranges adage. The fact of the matter is PHENAX® CLASSIC cuts the mustard as the scratch vaccine with a difference. Your vet knows the science and benefits behind PHENAX© CLASSIC and how it can add value to your farming operation. We entrust PHENAX© CLASSIC to your veterinarian - your animal health expert.

VIR_0604_NFR_30X6

There’s no doubt that testing times are ahead for the dairying sector. World prices for dairy products have continued to plunge, as a surge in global milk production has collided with softer demand. It’s uncertain where prices will bottom out, or how long they will take to return to levels that are more sustainable over the long run. But it’s looking increasingly likely that the farmgate milk price for this season will be below $4/kg, well below the breakeven price for many farmers. A second consecutive season of very low returns to dairying will inevitably have an impact on the wider New Zealand economy. Household and investment spending in rural communities is likely to be cut back. In addition, challenging conditions in the rural sector will feed through to lower confidence in the economy more generally. This signals downside risk for businesses’ investment and hiring decisions over the coming year. Just as farmers need to adopt practices that help them to ride out the rough patches, it’s important for the economy to have some resilience to the inevitable shocks from overseas. The single most important resilience mechanism for the New Zealand economy is the floating exchange rate. Admittedly, a floating currency will sometimes work to the detriment of exporters. But it proves its worth by adjusting lower during times of economic stress, effectively providing a safety valve for the economy. Anyone who doubts the importance of a floating currency need only read about the crisis in Greece, or of the miserable growth performance of many other countries within the single European currency. That said — and again using Greece as an example — an ever-falling exchange rate is not a substitute for having good economic rules and institutions. New Zealand scores fairly well on this front. The central bank and government spending are constrained by legislation, making them more predictable and less vulnerable to short-term political gains. The banking system is well managed and capitalised, and has the support of large foreign owners. And New Zealand is able to borrow overseas in its own currency — something that might seem obvious to us, but it’s a privilege that is still denied to many developing countries. However, this brings us to one of the economy’s vulnerabilities. New Zealand has a relatively high level of overseas debt (largely through the private sector, not government), which has to be serviced and renewed on a regular basis. So we’re still at the mercy of shifts in sentiment in overseas markets. The Global Financial Crisis of 2008 was a dramatic example of this: access to overseas funding dried up for some time, not due to any specific concerns about New Zealand but because overseas lenders were trying to shore up their balance sheets. In some ways, this risk is an unavoidable part of being a small open economy; the best response to build up financial buffers during the good times. Another concern is that the degree of concentration in New Zealand’s exports leaves us vulnerable to weaknesses in particular markets — for instance, dairying’s current woes look to be specific to that market. Arguably, the problem is not about being “too involved” in producing commodities, but in being “not involved enough” in the valueadded parts further along the supply chain. Note this doesn’t necessarily imply that more of this work should be done within New Zealand — ownership, not location, is the key to capturing the added value. The lack of investment in value-added is partly related to the previous issue: New Zealand has a limited pool of investment capital and is reliant on overseas funding. There is no easy answer to this problem — although addressing a tax system that gives favourable treatment to leveraged investment in property would be a start.

Restricted Veterinary Medicine e. Available only under Veterinarry Authorisation. ACVM No: A6422.

Shaping the future of animal health

National Farming Review

August 2015

www.fedfarm.org.nz Ph 0800 327 646

SOIL SCIENCE

Science key to resilient farming

The United Nations declared 2015 the International Year of Soils. Their objective is to raise awareness of the role soil plays and promote its sustainable management, writes Dr Lisa Harper.

Good healthy soil and the grass it grows are the basis of New Zealand’s farming system. Yet the soil science underpinning it has been neglected for many years. Now fresh research is planned, on the back of a global push to understand and manage soils better. Food production relies on soil. Soil also does a collection of jobs described as “ecosystem functions”, including nutrient storage, water retention and microbial activity. Soil may also help mitigate climate change; for example through carbon farming, the goal of which is to convert carbon dioxide through land management techniques into soil organic matter. Here in New Zealand, while we don’t have the extremes of desertification and deforestation that some regions suffer, there is potential to manage our soils better. This would give farmers a greater ability to counter drought or erosion and protect soil fertility. The first step to managing something is to know what you’ve got, but there are large gaps in our knowledge of the complex combination of physical, chemical and biological factors that we know as soil. Among other things, soil maps of New Zealand are incomplete and many native soil micro-organisms still wait to be discovered. Mapping of soil types/characteristics and relating them to appropriate land use is happening to some extent (mostly with a view to guiding government policy), but much other work remains. Presently, the Government and research organisations are putting together a document on the future management of soils, with the aim of informing government policy and driving good practice in the primary sector. Meanwhile, part of the National Science Challenge on Biological Heritage will use of DNA identification techniques to measure the biodiversity of New Zealand soils. In four to five years,

FARMING FOUNDATION: Poor and degraded soil directly reduces the resilience of farmers, making it harder to survive weather extremes, affecting productivity and animal health.

farmers will probably be using this information to manage soils in a way that improves soil biodiversity. Soil, like water, is essential to farming. Managing it well is vitally important, as is engaging with policy development around it. To enable farmers to optimise their systems and

stay ahead of any future policy changes, we need to support soil scientists where we can, keep in close contact with people working in this field and add the benefit of farmers’ own experience of soil management to their efforts. Poor and degraded soil directly

reduces the resilience of farmers, for example making it harder to survive extremes of weather, affecting productivity and animal health. All this only goes to show, as I once saw declared above the door of a soil science laboratory, we should never treat soil like dirt.

Soil quality is crucial — Landcare NZ How good are New Zealand soils? “They’re a bit like people really, they have their good points and their bad points,” says Landcare Research soil scientist Allan Hewitt. Overall, they’re a mixed bunch, he said. This is something early settlers discovered the hard way. When settlers saw the large trees in the landscape they assumed that “big trees meant fertile soil” — a rule of thumb that applied in Europe. But when they started planting crops and developing pasture, that principle started to crumble and the need for wise management of soils to support productive agriculture became clear. “Soils are a crucial non-renewable resource for our future,” Mr Hewitt said. Soil provides a range of invisible “services” that support plant growth

and the environment — these include water storage, nitrate filtering, phosphorus filtering, aeration, and climate change regulation. Mr Hewitt has developed a new method to assess ALLAN HEWITT the quality of soils to help land managers and decision-makers get the best out of the country’s soils. It was recently published in the global journal of soil science — Geoderma. The new method estimates and maps soil services — also referred to as its “natural capital” — relative to

the requirements of a specific land use. “We’re looking at the value of soil by determining the number of services it provides and relating that to the needs of a specific land use,” he said. “New Zealand’s highly productive soils are very limited and there is strong competition between land uses. Soil natural capital is emerging as a useful concept for informing environmental and land use decisions.” Mr Hewitt said soil was an essential natural asset that needed to be preserved and the Food and Agricultural Organisation of the United Nations (FAO) agrees. 2015 has been declared the International Year of Soils in a bid to raise the world’s appreciation of the importance of soil.

Here is the web address of the journal paper — Soil natural capital quantification by the stock adequacy method: www.researchgate.net/ publication/268821451_Soil_natural_ capital_quantification_by_the_stock_ adequacy_method Background: Landcare Research is a Crown research institute focused on environmental science. A key part of our research looks at the complex inter-relationships that control the response of soils and landscapes to climatic and human-induced pressures, evaluating current risk, and offering sustainable land use and natural resource allocation options. ■ More on our soil work: /www.landcareresearch.co.nz/ science/soils-and-landscapes

Ph 0800 327 646 www.fedfarm.org.nz

August 2015 National Farming Review

MEAT & FIBRE

Impressive lineup of speakers to address butchers

To help maximise their potential.

By David Burt Industry Advisor — Primary Sector

FLEXIBLE TREATMENT OPTIONS

Rural butchers’ businesses, like much of the primary industry, are affected by the ebb and flow of economic volatility. They are aware of the need to make their businesses more sustainable and resilient, and the annual rural butchers’ conference plays an important part in this regard. Rural Butchers comprise Homekill Service Providers and Dual Operator Butchers, and provide a valuable service to animal owners who want to enjoy the benefits of eating home-killed meat but who do not want to kill and butcher the animals themselves. While homekilled meat cannot be sold, food safety and quality — together with a very high level of customer service — are the highest priorities for rural butchers as their businesses depend on these factors. This month’s conference in Nelson during August 28-29 is a timely opportunity for rural butchers to visit other premises, as part of the organised field trips on the first day. The weekend also provides some time to talk to other butchers (and any trade representatives who are present) and share stories about new items of equipment that have been purchased and the innovations they have implemented in their businesses. Those who attend will learn from conference speakers about issues that have affected — or will affect — the sector so they can assess the impact on their businesses and adjust their business plans if necessary. As usual there is a great lineup of speakers set for the Saturday morning at the Trailways Hotel, Nelson: ■ The Hon Jo Goodhew, the Minister for Food Safety. ■ Matt Grimes, (Sector Manager — Retail Meat & Baking, Competenz) who will speak on “Competenz — training your staff”. ■ Nick Hanson, (Federated Farmers Policy Advisor) speaking on “The Implications of the Health and Safety Reform Bill”. ■ Nigel Lucas (Principal Advisor, Animal Products, Regulation & Assurance, Ministry for Primary Industries) and Piers Harrison (Specialist Adviser, Verification Services, Regulation & Assurance, Ministry for Primary Industries) providing an update on MPI sector activities, including making information around small/micro abattoirs easier to find on the MPI website. In addition we will have a trade speaker and a industry member speaking about their business. Finally, the conference provides opportunities to socialise and catch up with old friends on the Friday and Saturday nights, see you there. Registrations for the conference closed on Friday, August 7.

Choose the dose required depending on the fate of your lambs 0.5mL - inject all slaughter lambs at docking/tailing lasts up to 4 months

1mL - inject all lambs at docking/tailing to be kept for 6 months or more - lasts for at least 6 months

COST EFFECTIVE Less than 1c/day in your lambs Optimal B12 and Selenium levels for longer

Available as B12 only or in combination with Selenium

Less injections Less chance of viral pneumonia due to less yarding

LONG ACTING B12 AND SELENIUM Utilises world-first microencapsulation technology B12 will last for up to 8 months1

NEW ZEALAND RESEARCH & DEVELOPMENT

Selenium lasts for at least 180 days and in some cases has been shown to last for up to 240 days1

Developed for New Zealand farming conditions by AgResearch Manufactured in New Zealand by Virbac Stockguard

NEW ZEALAND TRIAL WORK Extensive New Zealand trials1 Proven live weight gains1 Improves B12 and Selenium levels in lambs, ewes, calves and adult cattle1

SMARTShot® is an innovative, easy and flexible long-acting vitamin B12 and selenium injection commonly used at docking/tailing to boost and maintain adequate vitamin B12 and/or selenium levels in your young, growing stock.

Less than 1.5kg live weight gain will repay your investment Trials by AgResearch have shown that lambs treated with SMARTShot® had far greater live weight gains than untreated deficient controls Even on farms with only marginal deficiency, significantly improved growth rates Less injections, less labour, less chance of viral pneumonia, and less stress on your lambs Choose to make the SMART choice. SMARTShot® to help maximise the potential of your lambs. Your vet knows the science and benefits behind SMARTShot® and how it can add value to your farming operation. We entrust SMARTShot® to your veterinarian - your animal health expert.

VIR_0587_NFR

■ For more information contact David Burt at the Federation’s Wellington office; phone (04) 494-9182, email dburt@fedfarm.org.nz

INDUSTRY

ACVM No.s A9402, A9984 1. Data on file.

Shaping the future of animal health

National Farming Review

August 2015

www.fedfarm.org.nz Ph 0800 327 646

MEAT & FIBRE / ANIMAL HEALTH CARE

INDUSTRY

Referendum pivotal for Beef + Lamb By Sarah Crofoot Beef + Lamb New Zealand (B+LNZ) is consulting levy payers with the upcoming referendum closing on September 10. This is a legal obligation which must be carried out every six years under the Commodities Levy Act. Farmers will be asked if they want the organisation to continue or not. A ‘yes’ vote allows the Meat Levy Order to be renewed and B+LNZ to continue the work it does on behalf of farmers, while a ‘no’ vote would spell the end of B+LNZ and the programmes they fund. Levy bodies are all about investing in things farmers as individuals couldn’t or wouldn’t invest in on their own, and B+LNZ is no exception. On behalf of farmers they invest in research and development; collecting, analysing and benchmarking industry information; ensuring we maintain access to our export markets and building capability in the industry. All of which are important for the success of the industry and to ensure farmers have access to the tools they need to continue improving their business while coping with the array of challenges that farming presents. Beef + Lamb is involved in many research projects, including pastoral genomics using plant biotechnologies to improve the productivity, sustainability and quality of New Zealand forages. There’s work done with Beef + Lamb genetics so farmers have access to genetic technology to assist with breeding decisions and improved animal performance ensuring genetic advancement can continue. Investment is also made in the Pastoral Greenhouse Gas Research Consortium to reduce greenhouse gas emissions from agriculture. They are also a partner in Meat Biologics Research Limited — developing novel nutraceuticals, functional foods and health supplements from red meat and its co-products. There are a huge number of farmerinitiated technology and transfer programmes which provide local farming groups with support to carry out analysis

PRECIOUS: The upcoming Beef + Lamb NZ referendum is vital to the industry’s future. Federated Farmers supports the levy as it funds projects to keep the industry resilient and innovative.

around an issue and share this learning with others. The extension team around the country helps to deliver some of this science to farmers through field days and other events to ensure farmers have the information they need to continue to make progress. Market access is another key area that often flies under the radar but individual farmers wouldn’t be able to do on their own. This is all about trade — keeping our existing markets open and helping to open new ones, enabling us to continue to sell our products to the world with as few tariffs and quotas as possible. Without good market access and trade relationships we would lose our competitiveness internationally as competitors constantly push to get more favourable deals. Money spent paying tariffs or out-ofquota penalties is money that isn’t coming back to the farmer. B+LNZ also run an economic service which collects and analyses industry data. This enables the benchmarking of farms within regions and land classes, it also provides trends on how the industry

Rainer Irrigation - where the grass is always greener

Centre pivots and laterals

Electrical Switchgear

is performing and predictions for the coming season. This rich data set is used for a variety of purposes. Developing capability in the industry is another area of focus for B+LNZ. This involves funding leadership programmes and scholarships to investment at the school level, ensuring agriculture and the red meat industry is considered an attractive career opportunity, with a pipeline of talented people continuing to enter and progressing. All of these projects are important to ensure the industry remains resilient and innovative. The current levy rates are 60 cents per sheep and $4.40 per head of cattle and no change is proposed to these rates. Voting is around the corner so make sure you are registered to vote, to ensure you can have your say on this important decision. Just having paid a levy in the past or receiving emails doesn’t automatically mean you are registered. You can register online at http:/ /beeflambnz.com/register or by ringing 0800 BEEFLAMB (0800 233 352).

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Efﬂuent systems & spreaders

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10 Robinson Street, Ashburton. P: 03 307 9049. E: rainer@ashburton.co.nz

Visit our website www.rainer.co.nz

We offer Design & Build for Bridges including plans, permits, consents and construction. Or see us to strengthen and repair your existing bridge to ensure safe access on your property.

Ph: 09 435 4443 Web: www.ghk.co.nz 3 Pipiwai Road, Kamo, Whangarei 9 Hewlett Street, Whangarei.

New strategy will affect livestock and pet owners By Ann Thompson The New Zealand Veterinary Association (NZVA) has just released its longterm antibiotic strategy. It includes an overarching aspirational goal for New Zealand to reduce the need for antibiotics by developing alternative therapies to manage the health and wellness (and so reduce diseases) in animals, by 2030. This, in the context of no new antibiotics being discovered for the past 30 years, concerns internally about resistance in humans and animals, and increasing calls for a New Zealand strategy. NZVA, who briefed us on the strategy, stressed this is a long-term goal aimed at ensuring the current range of antibiotics is retained for as long as possible, while additional treatments and approaches to animal wellness and disease are identified. What does it mean for farmers? Firstly, NZVA has assured us that farmers will be fully supported through any changes and stressed in the short term it will be business as usual. Federated Farmers is aware that the devil will be in the detail and we are unsure what ‘alternative’ therapy looks like. Does it mean I should buy up that garlic farm and vinegar distillery, and stockpile copper sulphate as the country moves to more organic treatment systems? Realistically, though, NZVA has indicated solutions are best worked out collaboratively. I expect the industrygood bodies such as DairyNZ and Beef + Lamb will be fully engaged, looking at solutions on farm and holding workshops to support farmers with wellness strategies which will prevent common infections such as mastitis and lameness. Of course, as the industry develops alternative approaches and therapies there may be a few vet bills as vets test for infection and choose the right antibiotic when this is needed. Drafting those cows with significant health problems out of the herd may work okay during this low payout year. Fewer mouths to feed will mean more pasture to go around and lower imported feed costs. It may also take prime stock too, which would otherwise have been treated and kept, but it will mean that the fittest will remain on farm. The drive for this is increasing bacterial resistance to antibiotics worldwide. This has important consequences for human health, where even simple infections are being caused by bacteria which are becoming resistant to an increasing range of antibiotics. Diseases are not confined to certain species of humans or animals; they are often transferred across species’ boundaries. Antibacterial resistance is not confined to the one type of bacteria or the one type of antibiotic, either. Because of this, governments across the world are advocating for judicious use of antibiotics in both the human and animal populations to keep effective antibiotics available for cases where only the best will work. New Zealand is already well positioned, with the world’s thirdlowest usage of antibiotics on animals.

Ph 0800 327 646 www.fedfarm.org.nz

August 2015 National Farming Review

FEATURE

SHOW TIME

Entries open for NZ’s largest A&P Show Organisers of the 2015 Canterbury A&P Show are calling upon showing enthusiasts from throughout New Zealand to send in their entries and compete in the country’s largest Agricultural and Pastoral Show. With 100,000 show visitors and over 3000 animals on-site, The show continues its 153-year legacy by attracting New Zealand’s best animals and talented competitors. In addition to showing success, exhibitors will be competing for over $100,000 in prizemoney. The Canterbury A&P Show is also proud to be hosting a Royal A&P Equestrian Event in 2015, giving equestrian exhibitors the opportunity to compete for prestigious royal medals and ribbons. To encourage exhibitors from further afield, discounts and concessions are available to competitors travelling more than 400km to compete at the show. ■ More information and Schedules are available on the website: www.theshow.co.nz.

Be part of New Zealand’s largest A&P Show, with over 3000 animals on-site and the chance to win your share of $100,000 in prizes. Discounts are available for exhibitors travelling more than 400km to compete. The Canterbury A&P Association is proud to host a Royal A&P Equestrian Event in 2015. LIVESTOCK ENTRIES CLOSE FRIDAY 25 SEPTEMBER EQUESTRIAN ENTRIES CLOSE FRIDAY 18 SEPTEMBER

Canterbury Agricultural Park | www.theshow.co.nz P 03 343 3033 | E entry@theshow.co.nz

National Farming Review

August 2015

www.fedfarm.org.nz Ph 0800 327 646

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Kaipara dairy farmers sold on gas water heating for their shed Kaipara dairy farmers Bruce and Rosie Sanford, were frustrated by not having enough hot water to clean their plant and clean calf feeders. “We were thinking of getting two cylinders for extra hot water but then came across Longveld’s Dairy Hot Water system,” says Bruce. “This model has a 400L cylinder, 600L dump tank for plant wash, instant 55C hot water and it only takes 35 minutes to heat water to 80C. Best of all it’s gas heated which is cheaper than electricity. “Our water heating was costing around $8000 per year but this has dropped to just $4600 on gas so we are saving 43 per cent per year on shed water heating.” “Installation was easy in between milking and Longveld’s professional team includes a certified gas fitter and electrician who complete work to very high standards.” ■ Find out about Longveld Dairy Hot Water at www.dairyhotwater.co.nz or phone 0800 566 483.

WANT TO HEAT 600 LITRES OF WATER TO 85°C IN UNDER AN HOUR?

GAS, WANT GUARANTEED IMMEDIATE ENERGY SAVINGS OF UP TO 45%?

LIKE TO SAVE $38,000* IN 10 YEARS?

*The calculation is based on known available data for a base installation and represents average hot water consumption for a 4-500 herd-size farm. Both electricity and gas rates have a 3% annual increase to represent potential shifts in CPI.

THE SMART DECISION IN DAIRY HOT WATER Thankfully some smart decisions are easy. Like the Longveld Dairy Hot Water system for your dairy shed. Hot water when you need it 24/7 and immediate guaranteed power savings of up to 45%, using a monitored gas supply. Find out more about gas, the smart decision in dairy hot water systems. FIRED BY BOSCH TECHNOLOGY.

0800 566 483

www.longveld.com KingSt13047_NFR_A

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FREE “DUMMY”

collar, if required. With all SportDOG orders Gear the way you’d design it.

Dog Training products

KEEP YOUR WORKING

DOGS ON THE JOB Up to 6 rechargeable

Pondco has found a new and innovative use for the AquaFlex Pond Liner it installs – on the ﬂoors of herd shelters. Hamish Forbes of Pondco says the company has recently provided and installed linings in a new Redpath dairy shelter building, creating a durable surface to keep the ﬂoors dry and well drained.

waterproof collar units & remotes * Model SD-1825 -1.6 Kms range (1 mile)

AquaFlex is more commonly used to line efﬂuent and frost ponds but Hamish says the qualities which make it ideal for use in those environments mean it is also ideal to line the ﬂoors of animal shelters. The liner can be installed in new or existing shelters and is laid in between two “underlays” with bark spread on top. It is quick to install with even the largest shelters lined within a day. The end result is a drier, cleaner environment for cows in which to shelter from wind and rain, or even the hot summer sun. It is able to withstand the weight of animals and of machinery used in the shelters.

* Model SD-1225 -1.2 Kms range * Model SD-825 - 800 Metre range * All with Tone & Vibration options * 24 levels of correction - 3 year warranty

“AquaFlex ﬁlls a gap in the New Zealand market not currently met by plastic or rubber liners. It has more than double the strength of other compound liners and double the punch resistance but is around half the weight so is much easier to install,” says Hamish. Every seam is double welded, recorded and air tested for water tightness before the liner is installed.

GREAT VALUE SD-1825 with 1 collar...$695.00 SD-825 with 1 collar.....$495.00

• Anti-bark training collars • Containment systems

SD-1225 with 1 collar.........$595.00 Extra Collars $375.00 - PRICES INCLUDE GST

Sales@innotek.co.nz For a free brochure call

0800 872 546

www.innotek.co.nz or ph 0274 935 444

“The product is a co-extruded membrane which provides high elongation tear resistance and bursting strength. Its ﬂexibility means it conforms to challenging angles and terrain without stress cracking problems often seen in high density membranes.” The liner has a black carbon content of two percent which provides UV and harsh weather protection and is made from virgin resins. Pondco has the New Zealand licence for AquaFlex which is supplied by the world’s largest lining installation company, Colorado Lining International, and the Pondco team has access to that company’s expertise if required.

appearing alongside the two long-trusted products.

markets throughout the United States and Canada, and holds a signiﬁcant investment in Grupo Calidra, the largest On the 1st July 2015 Graymont North lime producer in Mexico. They bring America, acquired McDonald’s Lime and with them a new level of world-class Taylor’s Lime from Holcim (NZ) Limited support to the local teams, who remain and New Zealand Steel. The two NZ lime committed to bringing quality products, producers are uniﬁed under one owner consistency, and service to customers with Graymont, and anticipate a smooth across New Zealand. transition going forward. Farmers familiar with Calcimate or For product information on Calcimate AgLime (produced by McDonald’s Lime As an emerging global leader in or AgLime visit us at www.onlime.co.nz, or Taylor’s Lime) may soon be seeing an the supply of lime and limestone or learn more about Graymont unfamiliar company name, Graymont, products, Graymont serves major at graymont.com.

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PREPARE FOR ANOTHER HOT SUMMER – BUY NOW AND SAVE $$$ STERNS QUALITY POOLS

SUPER CLEARANCE SALE OF EXISTING STOCK

SOUTH SEAS POOL PACKAGE

4.9m x 3.8m x 1.2m 7.4m x 3.8m x 1.2m 8.2m x 4.5m x 1.2m

was $5,100 was $6,200 was $6,900

Now $3,750 Now $4,990 Now $5,490

Other size pools available starting from $4,700. Deep end models also available. All Sterns pools suitable for in ground, above ground and partial in ground installation

Pool Package includes:

Quality Waterco Sand-ﬁlter, Pump, Vacuum, Leaf Scoop, Skimmer Box & Eyeball, Test Kit

Pool Land, based in Christchurch, have been supplying and installing pools and pool products nationwide for over 20 years. They sell a wide range of pools and pool accessories including covers, rollers, heat pumps, and auto cleaners along with replacement pool liners, suitable for Para, Stern’s, and other kitset swimming pools. Numerous pool accessories are available and can be viewed on the web site www.poolland.co.nz Pool Land supply Stern’s Swimming Pools, including the Bahamas and Coral Reef range (deep end) both of which are suitable for salt water. These are high quality pools which can be assembled by the home handyman and are built to last. All Sterns pools are suitable for both above and in-ground installation and most pools have a braceless construction which if installed above ground usually don’t require fencing. Pool packages come complete with a high quality pump, sand ﬁlter, vacuum cleaning equipment, skimmer box and eye ball return. Pool Land are able to supply a wide range of pool sizes and also deep end model pools. Pool Land is a direct marketer ensuring very competitive pricing of all products to their customers. Enquire today for more information – ph: (03) 365 6414 or email: pool-land@xtra.co.nz

SALT CAPABLE POOL PACKAGES

BAHAMA POOL PACKAGE 11.7m x 5.8m x 1.37m 8.2m x 4.5m x 1.37-1.9m

was $18,000 was $9,300

Other Sizes Available In All Pools (details available on request) All Pools suitable for above or inground installation.

Now $16,200 Now $8,370

High Quality Self Clean Chlorinators RRP $1,699

Now Only $1,200

with all Salt Water Pool Packages sold (subject to stock availability).

Bonus Special

Phone: 03 365 6414 • www.poolland.co.nz • email: pool-land@xtra.co.nz Finance available from NO DEPOSIT (subject to approval)

• DELIVERY ARRANGED NATIONWIDE

GROWING FARMERS SINCE 1919 At Woodnet we know that your land and forests are worth money.We also recognise there are alternative values just as important as ﬁnancial returns. Our work with clients is guided by one key principle – “Adding Value”. We offer high quality, independent advice and will help you identify and realise value from your marginal land and forests, whether they are exotic or indigenous.

What is your best land use? New Zealand has extensive areas of land which are marginal to farm but have a whole matrix of potential uses,one of which may be the establishment and/or encouragement of manuka to support a commercial beekeeping operation. Manuka – what potential? Global demand for high-value manuka products is increasing.New Zealand’s marginal landowners are uniquely placed to take advantage of this.Options landowners may consider include: • Encouraging natural regeneration of manuka. • Planting marginal grazing land.

• Planting to enrich land already reverting to manuka. • Planting cut-over forest land. Developing a sustainable venture based on manuka is not necessarily straightforward.We can help you review the practical and economic aspects of developing a manuka venture. Contact us for an evaluation of your own situation.

Taratahi is New Zealand’s largest provider of agricultural training

OUR SERVICES INCLUDE: • Marginal land use options. • Assessment of harvest proposals. • Forest valuations and inventory. • Forest establishment,management and silviculture. • Anything and everything ETS! • Insurance options for trees and carbon. • Marketing and selling your forest block and marginal land (Licenced Real Estate Agent).

CALL US to discuss how we can help with your forestry or marginal land use query.

Taratahi offers NZQA approved qualiﬁcations that provide introductory skills through to management level programmes. Programmes are delivered using hands-on training on farms in Northland, Auckland,Waikato, Bay of Plenty,Taranaki, Hawke’s Bay, Manawatu,Wairarapa (main campus) and Southland. Farmer feedback indicates that graduates are especially valued for their focus on safe work practices.

www.woodnet.co.nz OR call the Woodnet team – 06 370 2068

Guided trout ﬁshing available – www.wildsidewalks.co.nz

ENQUIRE NOW! 0800 TARATAHI www.taratahi.ac.nz I info@taratahi.ac.nz

Ph 0800 327 646 www.fedfarm.org.nz

August 2015 National Farming Review

WEATHER

Cold spring likely as El Nino takes hold Prepare for a stormy, windy and unusually cold spring (September — November), with frequent southwest winds across New Zealand.

By Georgina Griffiths MetService Meteorologist Over the past few months, El Nino has intensified further in the tropics. All the ingredients (weak or reversed trade winds, cloudiness near the dateline, and abnormally warm seas around the equator) indicate that this El Nino is now a major one, with the ocean and atmosphere reinforcing each other. Ocean temperatures (the socalled El Nino ‘warm tongue’) have reached levels not seen since 1997/98. Waters in the eastern tropical Pacific are nearly 3C warmer than usual. The NINO3.4 ocean index, which measures sea surface temperature in the central tropical Pacific, is presently sitting at 1.7C above average — exceeding the threshold for a strong El Nino. The Southern Oscillation Index (SOI) also slid further into El Nino territory during July. It is a measure of the atmospheric component of the El Nino system, showing the pressure difference between Tahiti and Darwin. Although the SOI can bounce around month to month because of local weather, sustained trends in the SOI reflect the state of the tropical atmospheric circulation. So, the tropical Pacific Ocean is now effectively a bathtub of lukewarm water. This upsets the normal balance of winds and weather around the tropics. And like ripples spreading outwards in a pond, there will be lesser effects on the edge of the tropics, in places such as New Zealand. What is important to note is a major El Nino in the tropics does not always have major effects elsewhere. International climate models predict this El Nino will likely continue into early 2016, and there is every indication it will remain strong (NINO3.4 index greater than 1.5C) during the second half of 2015. El Ninos traditionally peak towards the end of the calen-

EL NINO: The chances of an El Nino cycle have increased over winter. As the images above show both Napier and Christchurch (the east of the country) are in line for a dry summer, with below average rainfall predicted.

dar year, but it does pay to remember that effects felt in New Zealand may not peak at the same time. Is El Nino already starting to bite? So far this winter, we have already seen solid signs of El

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Nino in the New Zealand region. In June and July, we have seen more frequent southerly outbreaks than usual — standard El Nino winter fare for us. These southerlies have resulted in

below average temperatures, overall, for the South Island in June and July and for the North Island since the mid June. Several of these southerlies produced heavy snowfalls, and were followed by a ridge in behind, which

resulted in widespread and severe frosts. The week June 20-28 was extraordinarily frosty across the country, with Omarama in the Mackenzie Basin recording -21C during this week. What’s in store for August and beyond? The detailed August forecast can be found at www.metservice.com/rural/ monthly-outlook. And while the weather in August will reflect a variety of drivers (since what’s going on in the Tasman Sea and to the south of the country affect us most strongly), the longer-term guidance clearly focuses on what is happening in the tropics, and shows a strong El Nino flavour. Prepare for a stormy, windy and unusually cold spring (September-November), with frequent southwest winds across New Zealand. This is ‘textbook’ El Nino. As we head towards the New Year, November onward, those winds should tilt westerly, and dry out eastern parts of both the main islands. Taking Christchurch and Napier as examples, we see no real change in the odds of a dry spring under El Nino in both regions, but a doubling in odds for summer (once the winds have swung westerly).

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ARABLE FARMING

INDUSTRY GROUPS

Maize imports test our biosecurity By Philippa Rawlinson Industry Advisor — Arable and Bees Farmers know good times never last and most will have contingency plans to cope with future challenges. Resilience is about the ability of a system to cope with disturbance and to reorganise while undergoing change, so that it still has the same function, structure and identity. Some people have expressed surprise at the results of the latest Federated Farmers Farm Confidence survey. Arable farmers were among the most pessimistic of the survey and whether we like it or not, our arable farmers’ fortunes are explicitly linked to the fortunes of the dairy industry. Arable industry profitability was down over concerns about supplementary feed and dairy farmers’ affordability to buy New Zealand grain, with a preference for importing Palm Kernel Expeller (PKE) or maize. Feed importation for our livestock industry could test the resilience of arable farmers for a number of reasons. Newly-elected industry ViceChairperson (Maize/Forage), Hew Dalrymple, has warned this year’s predicted prices for maize negates any profit, and when you add in capital value (land and equipment) there will be no return on investment. “Any return will be minimal,” he said.

HANDLE RIGHT: Increased importation of palm kernel is a worrying trend for the arable industry, which is warning of increased biosecurity threats.

While media readily turn to dairy farmers for feedback on the continued fall of the dairy payout, the pain stretches to arable farmers too. The increase of maize imports is testing the robustness of New Zea-

land’s biosecurity procedures. Our maize industry is a world leader for yields and predicated by our reputation as a disease-free country. The recent Noogoora burr found within a consignment of imported

Agritech entrepreneurs on the rise By Nick Gain Technology and innovation for the rural sector continues to advance as Building Clever Companies (BCC) works with increasing agritech startups and entrepreneurs. “Our role is to support them,” says BCC startup manager James Bell-Booth. “We work closely with entrepreneurs who are developing solutions to help farmers improve profitability and efficiency.” In the past two years BCC has noticed growth in this area, both locally and globally. Each year, BCC looks at 400 new ideas; last year, roughly 60 per cent of the organisation’s work was in agritech. Businesses such as BioLumic’s UV plant growth research, CropX’s irrigation sys-

maize from Bulgaria, raised the ire of the Federated Farmers Arable Industry Group, who recall the recent Blackgrass incursion and the threat it posed to arable farming in Canterbury. Had the Blackgrass seed germinated, it could have cost the arable industry $8.4 million to $82.4 million, depending on the degree of incursion and method of control undertaken. Arable Industry Group Chairman Guy Wigley says “Any biosecurity breach of any magnitude has the potential to impede our ability to remain a productive part of the New Zealand economy.” A significant weed or insect pest found in our seed export lines would limit our access to international markets. The discovery of Blackleg in a line of brassica destined for China has seen all brassica exports to that country stopped until such time until Chinese are satisfied with our practices. The total value of sales generated by our burgeoning seed export market (including upstream sales) adds $650 million to the New Zealand economy. The current dairy downturn affects more than just dairy farmers, but arable farmers too. A key part of any farm system is its ability to bounce back, and arable farmers’ resilience will be severely challenged if biosecurity practices become too lax.

tem, CalfSMART’s automated calf feeding system and Polybatics revolutionary Tb test are just some of the agritech startups that have worked with BCC. “It’s not enough, for example, to tell a farmer what the level of nitrogen is in a paddock or how much a calf weighs. What we need to do is take that measurement and prescribe the action to improve the paddock or, as in the case of CalfSMART, gather data on the calf and deliver the exact amount of feed that individual needs to most efficiently grow”, says Mr Bell-Booth. Not only does BCC seek out relationships and cultivate contacts in the sector, it is also developing tools to benefit those in it. “Most business accelerator programmes are designed for internet

startups,” says Mr Bell-Booth. “We’re developing a new agri-focused accelerator based on the traditional accelerator model. We’re adapting it to work with agritech companies that are developing products based on the wider context of agritech. Because of the nature of agritech, the new accelerator will be offered remotely. “We’ll use the internet and online tools for mentoring and then, every six to eight weeks, we’ll hold executive-MBA-style block courses. Over a 48-hour period, we’ll have workshops and face-to-face mentoring. Our goal is to help farmers. To do that, we work with entrepreneurs and startups in the agritech space. It’s an incredibly exciting area to work in and we know there will be dozens of new ideas and companies to support.”

Search for fert drivers By Ann Thompson ExecutiveDirector,FertiliserQualityCouncil The New Zealand Groundspread Fertilisers Association, (NZGFA), is actively seeking spreader drivers. These drivers, who can earn more than $60,000 per annum, operate precision machinery and with the aid of GPS spread fertiliser accurately. It could be looked on as the dream job for men and women who like sophisticated toys. The association notes that school-leaving youngsters are strong armed into tertiary education and student loans when there are plenty of careers that don’t need either. The NZGFA has produced a DVD that explains the jobs available, the skills required and the current opportunities that exist. It is displayed on the Fertiliser Quality Council website, www.fertqual.co.nz.

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DAIRY

Is dairy competitive enough? By Ann Thompson Dairy Policy Advisor Dairy farmers will know but, for those unaware, the Dairy Industry Restructuring Act (the DIRA) is the piece of competition legislation that allows Fonterra to set up shop. The Commerce Commission is reviewing the dairy industry, as required by the DIRA, to see if there is enough competition to support an unregulated industry. In our recent submission on this, Federated Farmers put forward a model of the DIRA that could stand forever, protecting both the farmgate market (where farmers sell milk to processors) and the factory gate market, where processors buy and sell milk to each other. While this will sound peculiar to dairy farmers, who look on the DIRA as a tool that threatens to fragment the industry, it’s worth considering. The DIRA currently allows Fonterra to exist and the rules are quite different from other business arrangements. It allows TAF (Trading Among Farmers), and if the DIRA were to be repealed, more onerous conditions could be placed on this scheme. Of special interest to farmers, the DIRA: ■ Contains open entry and exit pro-

INDUSTRY GROUPS

INDUSTRY REFORM: Fonterra chairman John Wilson at Fieldays in June. The Commerce Commission is reviewing the dairy sector to establish whether enough competition exists to support an unregulated industry.

visions for farmers entering and exiting the co-op, which come into play if TAF ends. ■ Makes Fonterra pick up all farmers’ milk, no matter where the farm is. ■ Allows Fonterra to refuse to pick up milk from farmers who do not meet certain conditions. ■ Allows for no discrimination between farmer suppliers. ■ Forces a transparent milk pricing model. At the factory gate market the DIRA requires Fonterra to sell

milk to new processors, which has the potential to add competition at the farm gate. It is also instrumental in free trade agreements as it reassures other countries that Fonterra cannot become a monopoly. Federated Farmers suggests that a DIRA for all time would contain altered raw milk regulations by: ■ Limiting the number of years independent processors can buy this milk to three, for all processors regardless of whether they have some, all or

no own-supply. ■ Promoting farmgate competition in areas where there is none by denying access to regulated raw milk in areas where there is sufficient competition. We also call for continued provision for TAF. The open entry and exit provisions for farmers would need altering too, allowing Fonterra to set the share price should TAF not remain. Currently Fonterra is required to set it at the ‘fair’ value. We’d also like to give Fonterra the ability, when considering new dairy conversions, to choose to either pick up or reject milk or place added costs on to those farmers. Federated Farmers knows that New Zealand needs a strong player on the big stage in order to lead the dairy industry globally. The world looks to Fonterra to set standards and prices. We also know that the dairy industry would be more resilient, have sufficient competition and still allow Fonterra to remain a leading player in the New Zealand dairy industry, by having legislation. And I wouldn’t have to revisit this every few years! The Federation’s full submission can be found on our website and also the Commerce Commission’s, where you can read all submissions received on the topic.

APICULTURE

Apiculture industry heading in right direction By Philippa Rawlinson The New Zealand Apiculture (beekeeping) industry has been characterised as fragmented, without an effective voice to lobby the Government and unable to fund required research to push the industry into the future. But this all is about to change. Last month’s industry conference at Taupo was a pivotal moment for the industry. It signalled a coming of age, as delegates and supporters came together to celebrate all that is good about the industry and to lay down in broad terms a blueprint for the future. “Conference 2015 will be remembered as

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the best yet, with over 830 registrations, a vast array of interesting topics, international speakers, educational workshops, practical learning and superb camaraderie”, said Federated Farmers Bee Industry Group Chairperson John Hartnell. The current dairy downturn is widely publicised, but what is not often recognised is the snowballing success of the apiculture industry in New Zealand based largely on the triumphs of the burgeoning manuka honey and beeproducts industry. But like the runaway success the dairy industry was, success in the apiculture industry does not come without hurdles. Beekeepers will recall a time, in the

not so distant past, where they needed to find a second job to make ends meet. Now many can afford to work for nine months and spend the rest of the year travelling and developing new business opportunities. The success of the manuka honey industry has seen a number of new players (individuals and companies) enter the apiculture industry. The newcomers are ignoring longterm arrangements between beekeepers and landowners, and essentially paying top dollar to secure the best sites; where previously the beekeeper exchanged pollination services for honey production. This behaviour is shortsighted and unsustainable long-term, should the bot-

Employment F Fixed term, Permanent and Casual employment a agreements a Forms and Guides F Order online O sshop.fedfarm.org.nz or phone 0800 327 646 o

tom fall out of the manuka honey market. We need to emphasise that long-term mutual agreements between landowners and beekeepers are vital to ensure the sustainability of the industry well into the future. Industry leaders should be applauded for embracing change and making significant steps towards a unified industry body. The industry’s success going forward is contingent on a strong, unified body which is able to support research projects beneficial to beekeepers, providing a powerful voice lobbying government and allowing the industry to effectively tackle key issues on biosecurity, disease control and food safety standards.

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Ph 0800 327 646 www.fedfarm.org.nz

August 2015 National Farming Review

INSIDER

Parliament Federated Farmers is committed to ensuring that the farmers’ voice is heard by Parliament. As at July 28, a number of Bills relevant to farming were before Parliament, at various stages. For example: • New Zealand Business Number Bill, Commerce Committee. • Building (Earthquake Prone Buildings) Amendment Bill, Local Government & Environment Select Committee. • Health & Safety Reform Bill, Transport & Industrial Relations Committee. • Accident Compensation (Financial Responsibility & Transparency) Amendment Bill, Transport & Industrial Relations Committee. • Environmental Reporting Bill, Third Reading. • Regulatory Standards Bill, Second Reading.

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■ Earthquake-Prone Buildings: The Government has confirmed that farm buildings will be exempt from requirements for owners to get engineer assessments to identify earthquake-prone buildings, saving each farmer at least $3000 and the agricultural sector around $170 million. It has also announced a more risk-based approach to identifying and addressing earthquake-prone buildings more generally. ■ Land for Housing: A draft report from the Productivity Commission includes recommendations for better regulation, better local planning and more flexibility around council funding. However there are also areas of concern for farmers, including the impacts of new housing on productive capacity and some recommendations around how councils set their rates. Federated Farmers will be submitting. ■ Raw Milk Sales: The Government has given the go-ahead for rules to be made on the sale of raw milk. While there is no fine print available yet, it does give those farmers who choose to sell this milk to consumers some certainty that they may be able to keep selling it. Federated Farmers is keenly aware

THE OFFAL PIT Who’s dogging who in?

To a farmer, dog whistling was invented because otherwise you would just shout yourself hoarse yelling. The long blast of the stop whistle doesn’t just mean stop to the dog, but depending on length and severity of the blast, it adds in all those colourful words that travel so well on a still, frosty morning. You only have to head to the dog trial course to see this first-hand. There you are not allowed to swear or yell abuse at your dog. Not because it is bad form, but just for the sensibility of the judge not having to listen to it all day. Surnames are in the media at present due to the dog whistle politics of the Labour Party, and this is relevant to farming because it is also councils’ dog registration time. Never has there been a little plastic tag that is so expensive. You look down the names on the list and they are usually all good working dog names. The huntaways have names like Kane, Bill, Jazz and Sue and the heading dogs are Tom,

of the food safety risks of consuming raw milk. We are also aware there is a demand for it. We therefore consider that putting rules around both its production and sale is the most sensible option. Banning it would drive the market underground and that would be an even greater risk to human health. We will continue to work with MPI on this. ■ Amending the Dairy Cattle Code of Welfare: Federated Farmers is working with the industry to help the National Animal Welfare Advisory Committee set standards for the off-paddock management of dairy cattle.

Spinning a yarn

Farmers having been doing it tough of late and are in need of good cheer. Brian Styles has written two books Priceless Bullshit and Farming & Yarning which should lift spirits with his ‘back block humour’. All proceeds go

DOGGONE WASTE: The Labour Party’s dog whistle politics of late are a waste of time and the fallout could be damaging. Maud and Ben. Then you try to slip the house dog in, Izzy, Bella, Max, Choco or even Fluffy. So how does this relate to the Auckland housing saga? If you take names on face value it doesn’t tell you if the person who bought the house is a foreign buyer.

to the Make-A-Wish (NZ) Foundation. Check out the website www.blackstumpstories.com.

Tractor enthusiasts

Chris Webb is a British freelance journalist, now living in Auckland. He writes for a number of international publications, among them Classic Tractor magazine. He is interested in hearing from New Zealand farmers who continue to operate pre-1965 era tractors, whether they have undergone restoration, or belong to a ‘classics’ collection and remain in use. The intention is to feature these in a number of upcoming articles in the magazine. Chris is also interested in hearing from farmers or their contractors who operate drainage trenchers for ground improvement purposes. Contact Chris, email: bluegnumedia@gmail.com +64 (0) 9478-8065 M: +64 (0) 21 292 9609.

It just tells you what their heritage is. How do you make the decision if Lee is foreign or Kiwi? There will be plenty of other names where this will be a challenge. This is the same with dog rego. There will be plenty of working dogs with names like Bella, Honey and Max. Do we want the council to start ringing up asking if the dog is a working dog or a pet? Or to start adjusting the bill because they think we are rorting the system? Of course not, and until the house and land market is heavily regulated you can’t do the same with just using buyers’ surnames. This hasn’t been racist or xenophobic, this was just unfortunate and the sooner we learn that abusing our biggest trading partner and tourist supplier will have dire consequences, the better. Let’s hope the fallout is confined as this is a bigger deal than trying to dupe the council out of $50 for the family pet dog. Like all dogs know, Labour should realise that biting the hand that feeds is a one-way ticket outtahere. ■ The Offal Pit is a contributed column and does not reflect the views or policies of Federated Farmers.

Beef+Lamb referendum

If you’re not sure if you’re on the electoral roll or just want to check your details are up to date, call 0800 BEEFLAMB (0800 233 352). Farmers can also register online on the B+LNZ website at beeflambnz.com/register. Referendum closes on September 10.

Fed’s workshops

Level 1 — Get your feet wet October 21 and 22. Registrations are open! This is an entry-level course designed for people not currently active in a leadership role, but who are thinking of getting more involved in the future. The course is balanced with workshop sessions and opportunities to network with others who work on agricultural policy. You will gain experience working in a team, become familiar with the policy process and learn how to get the Federation working for you.

FEDS PEOPLE

Penny Dawson

Simon Andrew

Lloyd Davy

Cathy Begley

Phil Hunt

Regional Policy Advisor West Coast, Golden Bay and Nelson

Federation Business Manager

Territory Manager Hawke’s Bay, GisborneWairoa and Rotorua-Taupo

Senior Policy Advisor Environment & Water

Provincial President Otago

Cathy recently joined the Federation’s policy team and will lead the National Water Team. She has a Bachelor of Resource Studies and Masters in Applied Science (Environmental Management) and recently completed the Intermediate Certificate in Sustainable Nutrient Management. Cathy grew up on a sheep and beef farm in Western Southland (Tuatapere). The family have since retired to West Eyreton, North Canterbury not too far from where Cathy and her husband (Grant) live, also on a lifestyle block. Cathy has been involved in the management of natural resources. This includes roles as a council officer, consultant and as an Environmental Advisor (water) for an iwi authority.

Farming 470ha near Wanaka, with wife Lizzie Carruthers and two daughters Hillary and Fiona, Phil also leases 700ha at Taumata, South Otago. They farm Romney sheep and have been Ballance Farm Environment Award finalists in 2010 and 2011. The family also won the National Ewe Hogget Competition in 2011. Phil graduated from Lincoln University with a BCom(Ag). He was involved in the Otago TB Free committee serving three years as chairman. Phil was president of the Upper Clutha A&P show, chairman of Wanaka St John committee and was admitted into the Order of St John as a member in 2013.

■ Contact Cathy at cbegley@fedafrm.org.nz or call 021 242 6586

■ Contact Phil at ffphill@gmail.com or call 027 223 0398

Penny recently joined Federated Farmers and brings to her role direct experience working in business environment policy, including the farming industry. Her mother’s family, fifth-generation farmers, sparked her early passion for farming. Penny worked as an environmental policy advisor for the National Farmers Union in the United Kingdom with expertise in water abstraction, storage and waste management. She holds a BSc (Hons) Environmental Sciences from the University of Southampton. Penny is focused on developing her knowledge of farming and the relevant environmental issues in New Zealand, and to achieve a better work life balance.

Simon started with the Federation in May and is responsible for Agrecovery and non-membership based revenue streams. He grew up on a Wairarapa farm and spent time working on farms domestically and overseas. Simon recently worked at OSPRI (Animal Health Board) and has experience in new business development and the management of research projects. He’s excited to be part of Federated Farmers — a collective voice for farmers facing a changing environment, highlighted by shifting consumer demand, ongoing biosecurity risks and heightened regulation. Simon is focused on growing revenue streams for the Federation so that members can enjoy amplified value. He recently completed an MBA at Victoria University Wellington.

■ Contact Penny at pdawson@fedfarm.org.nz or call (03) 539-1136 / 021 518 271.

■ Contact Simon at sandrew@fedfarm.org.nz or call (04) 494-9197 / 021 519 653

Lloyd is the Federation’s newest field officer. A rural man at heart, he’s King Country born and bred and has experience working on a Taranaki farm. Lloyd previously worked in speciality media where he developed a wealth of experience in sales and marketing and worked extensively in the newspaper, radio, television, outdoor and rural publishing industries. During his spell in media he worked on The National Farming Review in a sales and marketing capacity, which introduced him to the world of Federated Farmers. ■ Contact Lloyd at ldavy@fedfarm.org.nz or call 0800 327 646 / 021 521 230

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