Issuu

DECEMBER 2013

Zambia Reflections: A look at farming in the Zambia and how women are leading the way

NATIONAL POLICY Rural Post The Federation is successful in preventing cuts to vital services

Migrant help Immigration package is launched to help the dairy industry hire migrants P4

REGIONAL POLICY Council bylaws What they mean and how the Federation can help

Provincial gains A look back at another successful year of Federation advocacy P14

INDUSTRY GROUPS Keep calm, read on The campaign towards wool contamination awareness

P17

Blackgrass outbreak What you need to know; and what the MPI strategy is P18

THE YEAR THAT WAS From weather battles to policy gains — p10

2COMPOUNDS FLYSTRIKE POWERFUL WEEKS

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National Farming Review

December 2013

www.fedfarm.org.nz

Ph 0800 327 646

PERSPECTIVE

Spotlight on water use

INSIDE

Feature:

The year that was

Regulars: Perspective

National Policy

3-6

Counterpoint . .

Regional Policy

9,13-14

Economy

Weather . .

Employment

Meat and Fibre Dairy

Insider

Managing Editor: Conor English Ph: 04 494-9189 cenglish@fedfarm.org.nz 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

Farmers share the aspiration to live in a country with abundant clean water, writes Federated Farmers president Bruce Wills It will not come as a surprise that Federated Farmers biggest area of work and advocacy continues to be water, including how we use it more efficiently while maintaining and improving its quality. The water debate is complex and will take time. Water does not instantly degrade but reflects cumulative actions over a period. The actions may be farm related, they may be industrial and in some instances, they may be natural. Getting good science is the starting point for the rational discussion we sometimes haven’t held when it comes to water. We need to ask our communities what their aspirations are for water and what they are prepared to pay economically, socially and culturally. The world is a hungry and growing place, with an amazing 2.3 billion more stomachs due to join the human race by 2050. The sale of our food and primary commodities helps pay much of this country’s bills. Farmers share the aspiration to live in a

prosperous and beautiful country with abundant clean water for all. This is the challenge of our time and I can confidently report we are making steady proBRUCE WILLS gress. President With a better year forecast for most commodities, farmers have a good opportunity to ensure their debt is at sustainable levels. History tells us payouts will fluctuate and interest rates will inevitably rise. Retiring debt in the good years is, for most, as sensible as making hay while the sun shines. More science is another important option. Our industry good bodies spend well over $80 million annually to find better ways of farming. Unlike many industries outside agri-

culture, farmers like me pay a small levy on most of what we produce. Farmers understand the importance of collective investment for the greater good. We must also continue to pursue freer trade with vigour through multilateral agreements, like the Trans-Pacific Partnership and also bilateral trade agreements. Tariffs and trade restrictions cost our economy well over a billion dollars annually. It is estimated that for the average sheep and cattle farmer this equates to about $19,000 per annum and double this for dairy farmers. When two of the world’s most challenging issues are food security and climate change, allowing countries that can produce food more efficiently to trade more freely with the less efficient food producers makes sense. The outlook for the next 12 months is increasingly positive with the 2013-14 year looking likely to be a good one for farming and the wider economy. We need to make hay while the sun shines because what we know for sure is that not every year is kind to farming.

I was asked recently on a Friday what I had done on the Monday. My response was ‘‘well that seems like a month ago’’. This shows it has been a very busy year at Federated Farmers. We have got through an enormous number of issues at international, national, regional and sector levels. Our mission is to influence decision makers to create better outcomes for profitable and sustainable farming. The year started with what turned out to be the worst drought in 70 years. Federated Farmers shifted innumerable bale equivalents from the South to the North Island to help drought affected farmers. We also assisted with other weather events such as weather bombs. At a national level, the Government was busy, which made us busy. Big reforms are underway with water, the RMA and local government, along with changes to animal welfare, biosecurity, food safety, immigration, transport, telecommunications, and infrastructure.

We had input on both monetary and fiscal policy, which have impacted on interest and exchange rates. We have achieved some great successes, such as the NZ CONOR ENGLISH Post decision. Chief executive At international level we continue to engage with equivalent organisations in other countries, advocating farmer to farmer for sensible trade outcomes, and increasingly advocating on environmental and climate change issues. At regional level we have submitted and mediated on more than 65 regional and district plans and we took the Horizons One Plan to the High Court.

There are several regional councils progressing changes that will impact on land and water usage. At sector level, discussions and meetings continue on the meat industry. Dairy had an annus horribilis with the DCD and botulism episodes, however the year has now seen a record payout. Our grain section did some good work around biosecurity. All sectors are looking to grapple and cope with water reform, in particular the diffuse nitrogen issues. All this effort has taken a lot of work by our elected farmers, volunteers and staff. I would like to thank everyone for their dedication, passion and effort as we strive to farm for New Zealand’s future. It’s been a pretty successful year and we look forward to a good break with family and friends. Have a safe and happy Christmas and New Year. And don’t forget to make the best investment of the year — just $1.40 a day for your Federated Farmers subscription.

A big year for the Federation

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December 2013 National Farming Review

NATIONAL POLICY

Rural Post staying at five days By Kara Lok Policy advisor Federated Farmers has successfully lobbied for rural delivery runs currently on six days per week to reduce to five days per week from July 2015. New Zealand Post and the Government had originally proposed to cut rural delivery runs to three days per week in the face of declining mail volumes. However, after the Federation launched a campaign to see the rural delivery runs retained, it was decided the areas which currently run six days per week would only be reduced by one day from July 1, 2015. Rural areas currently on less than a six day delivery frequency will remain unchanged. This is a huge win for the Federation’s membership as New Zealand Post’s Rural Delivery contractors deliver a lot more than just post; they deliver nonpostal essentials such as medicine, the weekly newspaper and farm consumables. In some areas which are still on dial up or satellite internet, the rural delivery runs are the rural

community’s main means of communication. The rural delivery contractors also need to be able to run a viable business and if the frequency was reduced to three days per week some contractors may have found it hard to stay in business. This would have had huge ramifications for rural New Zealand. The changes are the result of the amendment of the Deed of Understanding between New Zealand Post and the Government. Urban areas will go down to three days per week and some New Zealand Post shops will close and be replaced by self-service kiosks. New Zealand Post is still working on how the five day service will run and what days’ post will be delivered. Federated Farmers will continue to work with the company to ensure the service meets the needs of our members. The state owner enterprise and the Government will review the Deed of Understanding again in 2018. This will coincide with the completion of the Rural Broadband Initiative (RBI) and the Ultra Fast Broadband (UFB) Initiative.

ONE DOWN: The majority of farmers and rural communities will still have postal deliveries at least five days a week after successful lobbying by the Federation. PHOTO: CAPTURE NZ

Helping farmers navigate immigration By Kara Lok Policy advisor Federated Farmers has put together a one stop shop to help dairy farmers looking at hiring a migrant, navigate Immigration New Zealand’s work visa and permanent residency processes. Immigration New Zealand’s visa and permanent residency process can be difficult to follow. Federated Farmers’ Immigration Pack has all the information and application forms dairy farmers need to employ a migrant making it a straightforward, step by step process. The Immigration Pack is a smart document that helps employers and their prospective migrants meet the requirements by asking a series of very simple questions. It provides position specific information for dairy farmers looking at hiring a migrant as a dairy farm assistant, assistant herd manager, herd manager and farm manager. The pack is an alternative to hiring an immigration consultant and allows employers and their migrants to complete

their own work visa and permanent residency applications. Federated Farmers Farm Employee Remuneration Report is provided with the pack, so employers can ensure they are paying their migrant the market salary, which is one of Immigration New Zealand’s requirements. The Federation decided to put the pack together after receiving numerous calls from members who find it hard to navigate Immigration New Zealand’s work visa and permanent residency process. At present the dairy industry is heavily reliant on migrant labour. There are not enough capable New Zealanders with the skills the industry needs. Dairy famers want to employ people who want to forge a career in agriculture and more often than not the people Work and Income New Zealand recommends are just not suitable. Federated Farmers 2013 Farm Employee Remuneration Report shows that 20 per cent of the dairy farmers who responded have staff who are migrants. There is a common misconception

that farming is a low-skilled and low-paid profession. This is a myth; farms are multi-million dollar businesses which produce New Zealand’s main exports. To run a farm and contribute to one requires real skill. Until this misconception is addressed and New Zealand’s education system attracts more young people to undertake a tertiary qualification in agriculture, our farmers will continue to be reliant on migrants. While Federated Farmers is working with the other major industry sector groups to address this shortage and misconception, attracting young people into our industry will take time. Federated Farmers Immigration Pack is a way to help our members and nonmembers get the skilled labour they desperately need, while we work and develop ways to attract more New Zealanders into the agricultural sector. ■ The pack is available on Federated Farmers website at www.fedfarm.org.nz or by calling 0800 327 646. It costs $200 for members and $750 for non-members.

There is a common misconception that farming is a low-skilled and low-paid profession. This is a myth; farms are multimillion dollar businesses which produce New Zealand’s main exports.

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National Farming Review December 2013

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NATIONAL POLICY

Foot and Mouth — being prepared By David Burt Industry Advisor, Primary Sector The risk of biosecurity incursions in some form are a constant threat to both the pastoral sector and to the wider economy. As an island nation, we have some limited geographical protection but, in a world that is increasingly closely linked by international travel and trade, it is essential that, as a country, we have effective systems and processes in place to manage incursions. Protecting New Zealand’s farming systems from biological risk is a key focus of the Ministry for Primary Industries’ (MPI) strategy. Of the many pests and diseases that would impact on the pastoral industry, foot and mouth disease (FMD) is widely recognised as the greatest threat, both in economic terms and in terms of the huge consequential social impacts it would have on many of our rural communities. While the focus continues to be on preventing FMD virus from getting to New Zealand, developing measures to quickly respond to any FMD outbreak is still a vital part of MPI’s biosecurity work. In recent times — recognising that the development of effective management systems in this area requires that the pastoral industries also participate in the process — an industry FMD steering

KNOWLEDGE: The threat of an FMD incursion, such as in this photo from 1981, should never be under-estimated. MPI are continuing to make it a key focus of their biosecurity strategy.

group, on which the Federation is represented, has been working closely with MPI to ensure the best possible state of readiness and the most effective response to any incursion. The outcome of this joint effort has been the launch, by MPI, of their FMD Preparedness Programme. This is an 18 month programme which, (with some other FMD related work) was launched in October and comprises a number of prioritised component projects. The seventeen projects broadly include:

■ Ensuring that the approach taken to the work is holistic. This will mean firstly, that inputs into the Ministry’s preparedness work will come from all the government ministries and departments involved and secondly, that a broadly based (‘‘New Zealand Inc’’) view will be taken of the effects to be managed. ■ The development of a pre-agreed notification process for stakeholders. This is extremely important because the actions taken initially will have a

major impact on the magnitude of an outbreak and getting the critical information out to farmers, markets and other stakeholders as soon as possible is an essential part of this. ■ The development of effective movement controls and effective disinfection measures. In the event of incursioncontrol measures such as these are key to containing any FMD incursion. ■ Training. Having trained staff in the event of an incursion — where everyone knows what they need to do, when and how they need to do it — will greatly facilitate the effectiveness of the response measures. ■ A Trans-Tasman Action Plan. With both countries free of FMD, it makes sense to build on the existing strong relationships and to work collaboratively so that both countries are better prepared to deal with this disease. From the Federation’s perspective, the fact that industry participation will be ongoing is very pleasing, as is the commitment of the Ministry to fund the additional staff needs to complete the programme work. ■ For more information about the FMD programme, contact David Burt, the Federation’s Industry Advisor, Primary Sector at 0800 FARMING (0800 327 646) or e-mail dburt@fedfarm.org.nz

‘Relevant and connected’ meeting David Broome Federated Farmers staff The National Council at Wellington attracted some of New Zealand’s political elite and witnessed a number of initiatives being launched. ‘‘I’m pleased to say that the Federation has signed a Memorandum of Association with the forestry industry to enhance the relationship farmers have with the industry,’’ commented national President, Bruce Wills. ‘‘With the National Pest Control Agencies we also launched ‘‘Keep it Clean’’ — an agricultural vehicle hygiene guide. To help farmers seeking to employ migrant workers, we launched the Federation’s own immigration pack, which was featured on One News and is now available from 0800 FARMING,’’ Mr Wills added. The National Council is one of two key annual meetings where the leaders of the Federation’s 24 provinces and seven industry groups gather to discuss policy and approve the annual budget. Minister of

Economic Development Steven Joyce addressed the council on the Government’s growth agenda, which has the primary industries at its centre. He was followed by Labour leader David Cunliffe and Green’s co-leader Dr Russel Norman. Key public leaders also spoke, including the Reserve Bank Governor who gave a frank assessment. Given high levels of farmer interest in AgResearch’s reorganisation, the council heard from chief executive Dr Tom Richardson and chair Sam Robinson. Chair of Ospri New Zealand gave a rundown on the body which has subsumed the roles of NAIT and the AHB. Ewan McGregor also presented on farm dams for wetlands. More radically, there was a session on ecosystem services; where farmers are paid for the environmental benefits their land generates. Mr Wills described the council meeting as a success, ‘‘not only for Federated Farmers relevancy but for how well connected we are for farmers’’.

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December 2013 National Farming Review

NATIONAL POLICY

Sisters are doing it for themselves By Jeanette Maxwell National board member In October I took the opportunity to travel to Zambia to take part in several events. I attended the inaugural meeting of the World Farming Organisation Women’s Committee and also the International day of Rural Women. I also took part in the Zambian Farmers Union conference. The first day of the conference was held in the Zambian capital Lusaka. There were over 380 attendees, with women being by far the greatest majority in the room. In Zambia over 60 per cent of farmers are women. There were a large variety of speakers on the day and a wide range of topics covered. Those who spoke talked on such things as information transfer, farming in a changing climate, technology and farming and how to access finance to name a few. The next day we had the opportunity to visit three farms and three particularly progressive women farmers who had overcome many hurdles to get to

BIG TURNOUT: The International Day of Rural Women was held in the capital Lusaka. More than 380 people attended.

HARD WORK: In Zambia old traditional ways of farming remain — the milking of cows is still done by hand.

their current positions. Electricity and securing water supply had been among the main hurdles these women had overcome to grow their businesses. On the dairy farm we visited, the

milk was pasteurised and bagged for supermarket supply. Yogi drinks were also made and packaged for the supermarket yet, with all this technology and automation, the cows were milked by hand as they had not been able to

secure a milking plant for doing four cows at a time. Farmers we spoke to cited pilfering and theft as a problem, and they all had security fencing. One of the more outstanding things for me was the fact that all farms had cellphone reception. This had been a priority and everyone had a mobile and expected to have reception. I also admired the Zambian national farmers union slogan ‘‘No Farmers, No Food No Future’’, very simple and to the point.

Farmers welcome the PCE’s water contribution Federated Farmers welcomes Environment Commissioner Dr Jan Wright’s report on water quality in New Zealand and is offering to help ground truth some of the modelled assumptions. The Federation has consistently advocated good science to underpin policy decision making. As Dr Wright conceded at the launch, water is complex and the modelling arguably represents the worst case scenario. It does, however; highlight the cumulative effects of land use intensity upon water. This represents our future but if we do absolutely nothing about this, it is not a future farmers would like to be a part of. The Federation’s Environment spokesperson Ian Mackenzie said farmers were fully aware of the challenges but one should not forget New Zealand has some of the best quality water on earth. There was enormous resource and work being put into finding practical workable solutions and some good

progress has been made, such as Otago’s Shag River. It was named most improved river at the recent inaugural New Zealand River awards. Fonterra recently confirmed that our suppliers will have fenced over 20,000 kilometres of waterways. ‘‘Much of the good news is outside the scope of Dr Jan Wright’s report, such as the National Objectives Framework for freshwater management that was released for consultation recently’’ said Mr Mackenzie. That report gives communities the power to set their own aspirations for water, which is environmentally, culturally, economically and scientifically informed. National bottom lines are proposed and based on the input of 60 of New Zealand’s top freshwater scientists. Either way, this will not be easy and will need some sacrifice from agriculture and urban communities alike. If anything Dr Wright’s report confirms this as a sound policy track. As Dr Wright’s last water report

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revealed, water quality is a function of nitrogen and phosphorous as well as sediment and e-coli. This means every New Zealander has a part to play in improving water quality. Outside the range of Dr Wright’s report there is considerable research going into the farm system from soils to livestock. AgResearch, for one, is investigating both nitrogen and phosphorus losses from pastoral land use to water. The scope of this research includes improving our understanding of nutrient transport processes, methods for reducing nutrient losses, and adoption as well as practice change. They also undertook another project this year looking specifically at improving our understanding of phosphorus loss to groundwater and connected surface waters in areas with shallow soils. Meanwhile, Dr Wright reminded those present at the launch that she

is the Parliamentary Commissioner for the Environment and not for the economy. The focus of her report is the environment and the Federation would welcome the opportunity to contextualise her findings. As highlighted earlier this year in the National Farming Review, Lake Rotorua demonstrated what is possible when a community pulls together. Modelling for Lake Rotorua indicated it would take decades to improve but those targets were actually reached last year. Moreover, Landcare Research shows we are losing productive farmland at a rate of knots. On average 5800 new lifestyle blocks have been added every year since 1998 and they now cover an astonishing 873,000 hectares. The Federation congratulates Dr Wright for encouraging a collaborative approach towards this issue and her contribution to the debate.

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National Farming Review December 2013

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NATIONAL POLICY

Water policy under debate Elizabeth McGruddy Senior policy advisor The Government’s freshwater reform programme continues apace. The latest paper out for discussion is proposed amendments to the National Policy Statement (NPS) for freshwater. It’s a 70 page document but, for timechallenged readers, go straight to the picture on the back page: it sets out an excellent values-led, evidence-based process for communities to decide what they want to achieve and how they’re going to get there. Briefly recapping — the NPS was promulgated in 2011 as a management framework to provide for both environmental integrity and economic growth. The NPS identified two groupings of national values, first those providing for the wellbeing and amenity of people and communities, and secondly, those recognising and respecting fresh water’s intrinsic values. The national values were not prioritised: instead, the NPS directed it is for regional communities to consider values and priorities locally. The expec-

WATER TALKS: Reform of the National Policy Statement on freshwater is up for debate in the new year.

sory’’ for all waterways. Second, the NPS would provide A/B/C/D bands for water quality attributes. Thirdly, the government has boldly proposed national ‘‘bottomlines’’ for a number of attributes. The first change may not be contentious: safeguarding our indigenous fish, most of them unique to New Zealand, is a widely held value. Recreating around waterways is also dear to New Zealanders — picnicking, paddling and boating. Making provision for these values —

tation at that time was that overall water quality must be maintained, but that regional communities may set objectives for improvement. The NPS made it clear that the setting of regional objectives, and hence limits, must be made in the context of environmental, social, cultural and economic values. So what’s changed? Three key things: first, two of the national values (the health and mauri of water, and of the people) are now proposed as ‘‘compul-

alongside a ‘‘pick and mix’’ menu of other values from food production to hydropower to trout — should not unnecessarily constrain community decision-making. The second proposal has been widely welcomed: offering communities a banded framework for helping make choices from fair to good to excellent, without reinventing the science and the numbers in every catchment. The third proposal — setting national ‘‘bottomlines’’ — is already attracting vigorous debate. This proposal is a significant shift from the current NPS directive to overall ‘‘maintain’’ water quality. If a particular waterway falls below the bottomline, then maintaining would not be an option — the community must put plans in place to improve it. Setting national bottomlines is a big call, not least because there are no hard edges in nature. And not least because shifting from D band to C band may entail re-winding the legacy of the last century or more of human settlement. This process of setting national bottomlines needs a national conversation and the Ministry for the Environment have invited submissions by February 4.

Federation helps resolve buffer zone issues handle the remaining inner zone, with the Federation seeking an effect based outcome that fitted with the principles of the NPS. Following the logic of the Hazards from Trees regulations a 10m zone extending from the actual wires was sought for farm buildings and activities not involving people or livestock for extended periods of time. Sensitive activities — including residences, poultry sheds, and the operating part of milking sheds would be excluded from the lineal zone of 10 or 12m from the centreline or outer edge of transmission support structures, depending on the lines’ capacity. Federated Farmers staff and governance worked hard to negotiate this solution in the Western Bay of Plenty, settling on a package that protected existing farming activities in late September. The South Canterbury Federation pushed the envelope a little further, achieving a settlement in early November. There is more to come, with plan changes proposed in a number of districts such as Central Otago and Whakatane, all at various stages.

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Successful advocacy requires much endeavour, good teamwork, thorough knowledge and passion flavoured with flexibility. Federated Farmers and its constituent provinces have brought all of these things to the vexed issue of buffer zones along transmission lines. Thus far the outcomes for farmers have been rather good. Readers will now be familiar with the heated controversy that broke out first in South Canterbury, and then in Western Bay of Plenty, over Transpower’s proposals to district councils that they incorporate regulations over areas of land along transmission lines in their RMA plans. One might have viewed this initiative as merely a ripple among the waves of regulation washing over the rural landscape, but for folk with transmission lines running across their farms the blood ran cold. Through their sufferance the national grid gets an essential platform, which has safely been farmed around for generations. Why then another layer of regulation through the RMA?

major objective of protecting existing farming activity: firstly by reducing the width of the regulated zones, particularly by losing the orange one, and secondly by ensuring normal farming activity could continue in the remainder without needing resource consent. Dealing with RMA plan changes in multiple districts, at least 20 by late 2012, called upon the Federation’s resources — already stretched by major challenges such as the One Plan and huge developments in water policy, not to mention a major drought. An early decision was made to fight this out district by district, rather than seeking any sort of national arrangement with Transpower on some agreed minimum. This strategy has served farmers well. As the plan changes in Waimate and the Western Bay went from draft stage to proposed, the orange ‘‘outer’’ zone was dropped, saving landowners 40 lineal metres and avoiding new regulation that exceeded the existing code of practice for safe distances. The argument was down to how to

Federated Farmers rose to the challenge in different districts, trying in the first instance to get the whole thing stopped. This was a huge ask, given that buffer zones were set out as an overarching policy objective for councils in the 2008 National Policy Statement for Electricity Transmission (NPS). This NPS called for councils to respond by 2013, and Transpower was making sure they did. The early plan change processes, such as that in the Western Bay of Plenty, set down zones of considerable width — a total of 32m either side of lines, poles and pylons. An inner ‘‘red’’ zone of 12 metres with the heaviest restrictions, and a further 20 metre discretionary or ‘‘orange’’ zone beyond that. Altogether 64 metres of regulated land, almost the maximum width of a modern rugby pitch. Federated Farmers opposed this proposition, voicing landowners concerns at the unnecessary scale and complexity of the regulation in council chambers and the media. Knowing, however, that the problem wouldn’t go away by shouting at it, the Federation proceeded with the

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December 2013 National Farming Review

COUNTERPOINT

It matters who owns New Zealand We need a national strategy to ensure foreign investment is in the best interests of all New Zealanders, writes New Zealand First leader Winston Peters Agriculture is at the core of the economy. The heartland is where our wealth is generated, yet there is no strategy to control the foreign takeover of the agricultural sector. There was a time when New Zealand governments served the national interest. National’s record over the past five years shows that is no longer the case. Nowhere is this more clearly demonstrated than in agriculture. International capital is casting covetous eyes on our agricultural land. The reasons are obvious. The world is already short of food and climate change will intensify shortages and raise commodity prices. In addition, the growing Asian middle class wants quality food. Foreign buyers are hungry for fertile, well-watered land in stable countries like New Zealand. Our prime agricultural land is being lost at an alarming rate. This is not theoretical or a ‘someday’ possibility. It is happening right now. Everyone has heard of the Crafar farms fiasco. More recently, Mount Pember station, a massive farm the size of Christchurch, was sold to a North American investment group. This is one of the largest farms in New Zealand and adds to

Government uses to hide what is actually happening to the agricultural sector is ignorance. Because there is no comprehensive information base on what has gone to foreign interests, the Government can dismiss public concerns. Well, ignorance is not bliss; it is stupidity. New Zealand First has a private members bill that would set up a comprehensive register of foreign ownership of New Zealand land. This is an obvious, practical and vital step. The register and its administration would be independent of the existing Overseas Investment Office which has proved nothing more than a toothless poodle rubber stamping overseas ownership applications. The free-for-all whereby the OIO simply sanctions the transfer into foreign ownership of New Zealand land must end. There is an urgent need for a foreign land ownership register as currently there are no easily verifiable statistics with which to quantify foreign investment in the agricultural sector. The world is awash with capital seeking good returns and that money is hoovering up

an ever-growing list of agricultural asset losses. The National Government is unconcerned. It sees no problem with this trend and has done nothing to stem land WINSTON PETERS sales to overseas New Zealand First interests. leader In most cases so called foreign investment is just a transfer of wealth. Nothing new is being created in the way of capacity and employment. There is no strategic benefit to New Zealand in this transfer of assets. It is all happening in a haphazard way with many of our prime assets being stripped without hindrance. This loss of ownership and control poses extreme risk to our economic future. Once land has been sold it is usually gone from New Zealand ownership forever. This is because the overseas buyers have done their analysis and know a bargain. One of the tactics the

Foreign buyers are hungry for fertile, well-watered land in stable countries. New Zealand land without any effective control. The Government refuses to act to protect the national interest because it is in the grip of an ideological straightjacket. It cannot be relied upon to protect the national interest against the forces that are alienating New Zealanders from their own country. We urgently need a national strategy to ensure that foreign investment in our agricultural sector is indeed investment, and not just another corporate takeover. The first step to make that a reality is New Zealand First’s legislation for a foreign land ownership register. Perhaps farming leaders could show leadership and add their weight to ensuring our agriculture and our land is left for future generations of New Zealanders. On past performances we would not bet on it!

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December 2013 National Farming Review

REGIONAL POLICY

Sensibility at the council table By John Donnachie Recently elected Mosgiel/Taieri councillor Mike Lord is just one of a long line of farmers who have committed themselves to local body governance. He is canny and forthright when expressing his views and is a strong advocate for councils to adopt a more ‘‘business-friendly’’ approach. For 25 years, the Oamaru-born dairy farmer has farmed on the Taieri Plains with his wife Philippa and their four children. Now an elected Dunedin City councillor, he is embarking on a new exciting chapter in his life. ‘‘I didn’t think I was smart enough to do this job. But I soon learned the people running our cities generally have everyday backgrounds. In my experience, farmers tend to underestimate the applicability of their skills to other areas of life. I decided to have a crack,’’ he said. Mr Lord remains staunch about his background since entering the domain of local body politics. Being a former Federated Farmers Otago provincial president, he has a qualified insight into the needs of the rural communities and the significance they have to the wider economy. He said the swearing in ceremony in Dunedin was a proud moment for him and his family. The event impressed on him the importance of what he was undertaking and left him feeling humble knowing he

INSIGHT: New Dunedin councillor and farmer Mike Lord has a qualified insight into the needs of the rural communities and the significance they have to the wider economy.

would be representing not just farmers but people from all walks of life. ‘‘I want to be the best councillor I can be. I hope the decisions I make along with the others on the council will benefit the community now and in the future,’’ he said. Mr Lord joins four other farmers who sit on the Dunedin City Council. While he acknowledged this was helpful towards getting farmers’ voices heard, he said those involved in farming tended to be suited to the role anyway. ‘‘You need people on the council who can make good business decisions with

regard to managing money and farmers fit the bill. Farmers have plenty of experience dealing with financial complexity and taking responsibility for decisions.’’ Running a farm was similar to being on the council. The revenues and budgets in terms of figures were obviously a few extra zeros, but the principles and processes were the same. Still, it is one thing looking to reduce council budgets and debts but, when you want to stimulate a stagnant economy by being more business orientated, how does one reconcile both? ‘‘There is always a need to be more efficient. There is a new culture at the DCC and there are some very capable people at senior management level. ‘‘If we can cut back our costs, and maintain our services, nothing is insurmountable,’’ he said. Mr Lord believes the council’s focus should move towards enabling. This includes looking at the current regulations and policies and asking whether these are supportive of development. One example is the current 15 hectare minimum lot size for subdivision. Mr Lord believes allowing smaller lot subdivision, particularly on lower value soils, could provide more flexibility for landowners and free up more land for development. He also wants a more consistent

approach on how rates are decided. It was this bugbear which got him interested in running for council. He was gobsmacked when he discovered the astronomical growth in the rates take during a city council annual plan meeting. Being the Federation’s former Otago provincial president also provided experience in the implications of the council’s planning and budget processes. ‘‘I became aware of how costs are allocated by councils. I pay a big general rate as do most farmers. I wanted to know what I was getting for my money.’’ Looking back on his three years as president, Mr Lord expresses his respect and admiration for the Federation. ‘‘I enjoyed serving rural people and the whole submissions process. ‘‘I always got great feedback from members encouraging me and that was very rewarding.’’ For him, the strength of the Federation was the ability to unite farmers. It wasn’t just about incentives when you joined; it was more the kinship and support as no one individual could change Government policy. For those farmers considering a role as councillor, Mr Lord says go for it. ‘‘If you have something to contribute you can make a difference. You don’t know unless you try. ‘‘If you are capable of handling the responsibility, complexity and volatility on-farm then I reckon you’re up to dealing with council issues.’’ he said.

Local government bylaws — Fed has your back By Hilary Walker Unless they have been brought to your attention, the making and reviewing of Local Government Bylaws can often go under the radar. A common assumption seems to be that they are for urban matters controlling boy-racers, brothels and food premises and are unlikely to affect farming businesses. However, this is incorrect. The purpose of a bylaw is to provide councils with an ability to respond to and control a particular issue that may arise. They have long been used to regulate vehicle crossings, fires, dogs and the movement of livestock on roads. Bylaws are a powerful form of regulation with associated costs for permits and significant fines for breaches. Other sanctions such as injunctions, removal of work, seizures of property or arrest are also available to a council. Furthermore, and perhaps most importantly, a badly drafted bylaw or one which hasn’t understood the issues

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correctly has the ability to add significant compliance costs to a farming business bottom line. Fortunately once bylaws are made, they have to be reviewed after five years and then reviewed again every 10 years. This is to ensure bylaws are kept up to date. This means Federated Farmers regional policy staff become very experienced and responsive as bylaws which will affect farmers come up for review around the country. This year in particular has seen a number of good results as several councils reviewed or finalised their stock droving and stock crossing bylaws: Gore District Council Roading Bylaw — the initial bylaw had the potential to restrict everyday farming practices and impose significant costs on district farmers. Federated Farmers lodged a submission outlining concerns and sat on a joint working party with the council over a period of two years to develop a workable solution.

RESPECT

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The new bylaw promises no fees for a permit, reduces the amount of permits required, provides clarification on when a stock underpass might be required, recognises the rights of farmers to take stock on to the road and provides for multiple crossing points on a property to be covered off by one permit. Rangitikei District Council Stock Droving and Grazing Bylaw — the existing bylaw was frequently breached because of its unduly onerous permitting requirements. The reviewed bylaw removes the permitting requirements and replaced these with sufficient guidance on the compliance requirements for these to be easily adhered to by people wishing to drove stock on public roads. Federated Farmers made a submission and presented to the hearing commissioners. Our focus was on ensuring that it provided a practical and easily interpreted set of standards which allowed farmers to drove stock

on the districts roads. All but one of the suggested changes to the draft were accepted by the council and in this way Federated Farmers have made a positive and measurable difference to the way the bylaw has been drafted. New Plymouth District Council Stock Control Bylaw — the draft bylaw had an unrealistic requirement for anyone droving stock over any distance to remove all faecal waste. While Federated Farmers appreciated that certain measures should be taken for stock crossings, it is infinitely more difficult and highly impractical to removal faecal waste when droving stock. There was also a concern over the limited number of stock crossing points allowed and clarification needed as to when a permit maybe required. Through the submission and hearing process these concerns were raised and good changes to address those matters were made in the final version of the bylaw.

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National Farming Review

December 2013 www.fedfarm.org.nz

Ph 0800 327 646

FEATURE

A year of extremities,

As farmers across the nation fought droughts, floods and storms, the Federated Farmers policy team supported them on consultation, submissions and appeals. John Donnachie looks back at some of the year’s successes.

The Federation policy team spent 2013 immersed in numerous issues affecting the rural community. They were dedicated, spending long hours attending working groups, hearings and appeals, acting with due diligence and resoluteness. On average, the Federation is actively involved on around 400 issues annually across all sectors — national, international and regional. By early December, the team had submitted almost everywhere there is a member. The extensive lobbying generally falls under the radar with many successful outcomes, particularly in the provinces. It is rarely highlighted as one issue gets resolved another ultimately arises. While the policy team rarely has time to sit back and celebrate its achievements, members were invited to discuss some of their more satisfying moments this year where their advocacy triumphed over bureaucracy, improving farmers’ livelihoods. General policy manager Nick Clark says good progress is being made especially on the Government’s policy toward fiscal responsibility. With a return to surplus on track, expected by 2015, and a concerted restraint in government spending, the future is looking better for farmers and the economy. ‘‘Federated Farmers is very supportive of the steps the Government is taking. To get the core Crown spending down and

FLOTILLA: The Federation joined forces with Pacifica Shipping, Hamburg Sud, Rural Support Trusts and ports to organise straw shipments to assist droughtstricken farmers.

NICK CLARK

DR PAUL LE MIERE

reduced to about 30 per cent of the GDP was one of our wishes,’’ Mr Clark said. ‘‘When Government spending is running rampant it means more tax for farmers with interest rates also likely to climb, putting more pressure on the exchange rate.’’ However, the Government’s measured cumulative approach toward reducing expenditure and debt was shrewd and undoubtedly paid dividends. The process would stabilise monetary policy and ultimately help future generations. Mr Clark said the Federation had been proactive in advocating support of the

Public Finance (Fiscal Responsibility) Amendment Bill. The Federation has also for many years campaigned on the annual Budget Policy Statement. This advocacy ensured the Federation was not only prominent, but also keeping the Government honest. ‘‘We are one of the few key groups who regularly post submissions on the Budget Policy Statement. If we didn’t, perhaps the Government would find it easier to keep increasing spending,’’ he said. Another area where the Federation succeeded in improving farmers’ coffers

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was ACC. The Federation has long campaigned to get ACC to operate more efficiently. That lobbying is finally paying off. Mr Clark said ACC is in good financial condition after being in a big hole a few years ago. Since 2008, it has moved back to its core function as insurance, rather than as another addition of the welfare state. This focus and its strongly-performing investment fund has helped reduce levies, with some big cuts recommended for next year. On average, farmers could expect to see their levies cut by at least 15 per cent from April. Dairy and sheep farmers would be the biggest beneficiaries with a possible reduction of between 17 and 21 per cent. The Federation is hopeful the government will follow ACC recommendations on the levy adjustments. It is in the hands of the minister responsible for ACC, Judith Collins, with a decision due shortly.

National Policy

The national policy team achieved notable successes assisting farmers, particularly with fundamental services such as postal and transport. Protecting Rural Post during a turbulent period of restructuring at New Zealand Post was a commendable result for the team.

Ph 0800 327 646 www.fedfarm.org.nz

December 2013 National Farming Review

FEATURE

in weather and policy MARK ROSS

pragmatic than others toward finding solutions on issues which affect farmers. In Taranaki, the New Plymouth District Council has ruled the current way farmers are protecting their significant natural areas (SNA) is the most appropriate way forward. This ‘don’t fix what isn’t broken’ outcome is especially satisfying as the Federation has long argued that farmers are the best guardians of their land. By adopting this non-regulatory approach, the council is ensuring farmers remain on board. Above all, it gives farmers more incentives to work productively with councils. This ensures a winning outcome for the environment, council and landowners. The Federation was also active in minimising the impact transmission buffer zones have on farming activities. Successful appeals at both ends of the country set a precedent and establish a favourable trend in how disputes with Transpower, landowners and district councils are settled. Transmission buffer zones and their effects on land use have been contained to the established Industry Code of Practice in spite of strong lobbying by Transpower to have increased controls. In Southland, the Federation’s advocacy prevailed after a determined campaign to oppose Environment Southland’s targeted rate differential on dairy farmers. Federated Farmers’ influence has led to successive annual decreases since its introduction in 2009, cumulating in an 11 per cent reduction this year. District council planning on rural

REDUCED COSTS: Farmers can look forward to reduced roading compliance costs thanks to the Federation’s intervention on their behalf.

The intention to slash services against the backdrop of declining mail volumes threatens a vital resource for farmers. The Federation was successful in convincing the Government that rural post was a necessity and not expendable. From July next year, the postal service will be maintained at five days for the majority of the rural community. Farmers can also look forward to lower compliance costs on the roads without compromising safety. Transport regulation reforms around agricultural vehicles, road user charges and vehicle licensing and inspection are welcomed by Federated Farmers. In 2010, an agricultural transport review was instigated after the Federation approached former Associate Transport Minister Nathan Guy with concerns over the complexity of the regulations. The review was completed and implemented and the changes are estimated by the Government to save the agricultural sector $51 million during the next 25 years. Federated Farmers has also been proactive in helping members deal with bureaucracy, for example the launch in November of our Immigration Package, which is a practical ‘all in one’ electronic document which helps dairy farmers with the process for hiring migrant workers.

The past year has also heralded a brighter future for farmers and how they farm. Government reform of the Resource Management Act (RMA) is coming and the proposals have the backing of the Federation. Regional Policy Manager Dr Paul Le Miere and his team have been unrelenting in pursuit of a better deal for farmers since they introduced the ‘farming six pack’ in 2008. It appears the Government is finally taking note. Dr Le Miere says many of the Federation’s ‘six pack’ objectives were factored into the Government’s vision for a more equitable and streamlined RMA process.

Regional Policy

In the provinces, the Federation’s policy expertise comes to the fore regularly. This challenging environment never deters, but rather, inspires the policy team. ‘‘It is a case of the little guy sticking up to the big guys. A lot of councils in the country have no farmers on it so we have to sell ourselves and our situation. ‘‘This requires effective advocacy,’’ says senior policy advisor Nigel Billings. ‘‘It defies reality really, we often have the odds stacked against us,’’ he says. Some councils are more receptive and

subdivision has kept the Federation’s regional policy team busy. Many councils seem unaware of how vital it is to have subdivision rules which allow enough flexibility to meet the ‘farming for the generations’ needs of the rural community while retaining the use of productive soils. The ability to subdivide off a long association lot, build extra homes for workers or retiring farmers, is important because it provides for social well-being in dispersed communities, said Dr Le Miere. The Federation is generally successful in convincing district councils of the need for greater flexibility. Recent examples in Matamata and Horowhenua demonstrate this. This is a limited snapshot of what the regional policy team has achieved for members during the year.

Industry policy

Federated Farmers maintained momentum in the industry sector applying more influence and partnership among working groups focused on improving this aspect of New Zealand agriculture. General Manager of Policy and Advocacy Mark Ross said the Federation was not only driving the agenda but was also playing a significant role in devising policy with respective industry groups. The Federation had been actively involved since 2007 with the Government Industry Agreements (GIA). This has resulted in a much more industry-aligned Deed of Agreement, which is being processed by Cabinet. The formulation of an 18-month FMD project by Government is also welcome within the biosecurity framework. Mr Ross, who previously spent 11 years at MAF (now MPI), said the FMD prevention programme was a great initiative driven by the primary sector. ‘‘We have got more to lose than most. As a major exporter of primary production, worth 15 per cent of our country’s GDP, we must be prepared and able to respond to any possible future incursion.’’ The recent Blackgrass incursion in the South Island provided a timely reminder to farmers and the industry sector on the importance of biosecurity. The Federation played a ‘key role’’ liaising with a Government-appointed technical advisory group to provide information on what was a suitable response to address and prevent the problem from spreading. ■ Continued on page 13

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Ph 0800 327 646 www.fedfarm.org.nz

December 2013 National Farming Review

FEATURE

A year of challenges and gains ■ Continued from page 11 Changes to the importation of Palm Kernel Extract (PKE) from Asia were also a necessary and effective policy outcome. Manufacturing plants in Malaysia and Indonesia have to meet New Zealand standard compliance and be certified after Federated Farmers raised concerns with MPI over possible contamination originating from countries supplying PKE. Animal welfare courted media coverage this year for all the wrong reasons. The Federation was assertive in submitting and working with the Government on animal welfare compliance and the Animal Welfare Amendment Bill. The Federation worked hard behind the scenes to improve communications since MPI replaced MAF. Mr Ross said a ‘‘bad situation had been turned into a good situation’’, with a better understanding established after the ministry reshuffle.

Farmers could be confident MPI had a greater appreciation of how animal welfare issues affected them. Federated Farmers supports an altered enforcement system for farmers who intentionally abuse animals. It considers the legislation progressive and should act as a powerful deterrent to reduce animal abuse. A mark of the Federation’s policy advance was demonstrated by numerous initiatives undertaken this year. In the dairy industry, the Federation joined working groups on developing and formulating the Sustainable Dairying: Water Accord covering riparian, nutrient, effluent and water management. Also, along with DairyNZ, the Federation and processors have combined to implement a strategy with achievable targets, giving regulators and customers’ greater confidence in what has been a tumultuous year for the industry.

A Memorandum of Understanding (MOU) was established with the New Zealand Forest Owners and the Forestry Association. The agreement will allow for ‘good neighbourly relations’ between all parties with regard to boundary fence issues. It’s the first, of its sort, between respective parties providing an alternative to a potentially lengthy and costly legal solution. The Federation is delighted with the outcome which promotes communication and co-operation. This MOU requires farmers and forest managers to control plant and animals from within their boundaries. There is also provision for planting/ replanting and for declarations on agrichemical over-spray on to a neighbouring property. The often forgotten scourge of mental health was also tackled by the Federation.

Government figures, which showed rural communities at bigger risk than their urban counterparts, prompted the policy team to investigate the situation. This led to fellow stakeholders forming a Rural Mental Health Strategy Group. Early indications show the initiative is a success with plenty of feedback and the Government considering options on how best to address the issue. The initiative has also been particularly valuable in building relationships with Federation members and the rural community. Overall, it’s been a busy year for the policy team. Members’ diverse skills and advocacy are a vital resource which benefits farmers now and into the future. It goes without saying, the bigger the membership of Federated Farmers, the more effective they are at fighting on behalf of farmers and the country’s primary industries.

REGIONAL POLICY

Gisborne Fresh Water Plan Review — good process By Gwyn Morgan Freshwater management is an extremely important issue nationally and regionally in New Zealand. Government water reform initiatives and the Fresh Water National Policy Statement has given local authorities a very clear steer on how fresh water should be managed. There has also been change to consultative processes which need to be more collaborative, with stakeholders contributing directly in the decision making process around water use and management plans. Federated Farmers is extremely impressed with the process and the quality of the Gisborne District Council Fresh Water Planning consultation document. All credit should go to Gisborne District Council and the Fresh Water Advisory Group (FWAG). The FWAG was established in 2010 and is made up of iwi, industry, councillors, NGO’s, Department of Conservation, Horticulture New Zealand, Federated Farmers (Peter Jex-Blake & Sally Gaddum), Forestry, and Gisborne District Council staff. The FWAG was established as a forum for discussion on freshwater management

PLANNING: Gisborne’s approach to fresh water planning is being lauded.

issues, information sharing between group members, their respective organisations and the community. The main outcome for the FWAG is to have a fresh collaborative approach to the development of a freshwater plan. Federated Farmers suggests there is much here that others can learn from. The collaborative community wide involvement and the establishment of the FWAG puts Gisborne at the front of the pack in terms of good Fresh Water National Policy Statement process. As it states in the introduction ‘‘This docu-

ment is one step along the way to a Water Plan’’. One of the key pieces of work Gisborne District Council is currently developing is a freshwater assessment tool that evaluates different freshwater bodies based on a range of in stream values. This will allow the council to see what is needed for each water body to maintain or improve water quality in the region. These values are both physical in stream health values and community and cultural values. The focus has been on

what is important to each catchment and the people residing within it. Field days and workshops were held onsite on farms and maraes to discuss these values and to give feedback to the process. A key requirement for this collaborative approach has always been consideration. Ensuring each stakeholder understands the others issues and needs. There has been a lot of listening by everyone and that has been crucial to this process. This process is far better than relying solely on water quality limits of nitrogen and phosphorus because it assesses a far wider scope of criteria including needs, wants and expectations of all involved. It asks the question if you had to prioritise three waterbodies, what would they be? This makes individuals really think about what they want and can afford as opposed to a council presenting a report showing poor water quality results in some waterways and then framing policy from that, combined with a modelled projection of what they think may happen. That said, modelling can provide useful information and does have a place in this process. Well done Gisborne District Council and the Fresh Water Advisory Group (FWAG).

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National Farming Review

December 2013 www.fedfarm.org.nz

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REGIONAL POLICY

Annual grind crucial to farms By Nigel Billings In the earlier part of each year, Federated Farmers doubles down on its efforts to contain farm rates through submissions on district and regional council annual plans. This is a huge exercise in advocacy — with submissions followed by hearings in as many as seventy jurisdictions where farms are within the council’s boundaries. That means 70 different rating systems to analyse and submit on. The Federation takes a constructive approach of proposing alternative methods and modifiers to encourage councils to rate equitably and ease the major burden on farms. Our major planks are the funding of public services by flat uniform charges instead of property value rates, the use and retention of rural rating differentials, and the use of targeted rates to reflect the benefit of different property groups from council services. Federated Farmers consistently opposes rate increases above the level of inflation, believing those councils must ‘‘cut the cloth’’ to fit in the same way that business and households do.

YOUR FIGHT: Federated Farmers lobbied throughout the year to encourage councils to rate equitably and ease the major burden on farms.

Over time our wide coverage and consistency has produced some positive results. For example, recently farmers in Rotorua found their rates reduced by an average of $1,500 on the back of a long campaign to get the rating system over to capital value and keep the uniform annual general charge up. There is no question that the overall impact of this lobby — keeping the pressure on councils to rate fairly and spend reasonably — is worth cash to

farmers and the farm economy. This election year 2013 has produced a surprisingly strong focus in the annual plans on fiscal responsibility and containing debt. Given this, councils generally produced restrained rate increases with the exception of spikes in areas of Gisborne, Waitaki and Marlborough. In the case of Gisborne, the council has responded proactively with an interim rate remission policy for farms

affected by big increases and the Federation is engaged with them on a thorough review of the rating system for next year. Federated Farmers was also there in support of decisions to make small reductions in farm rating differentials in Dunedin and Christchurch, with half of a percentage point shaved off a differential increase in the Manawatu. We continued our work across the board to see a reduced reliance on general rates on property value in favour of uniform charges. These efforts bore some fruit in the Waikato region, with the regional council tweaking the uniform annual general charge up, which reduced rates on for example a $2m farm by 2 per cent when compared to the original draft annual plan. With rates there is always a long way to go. There are many councils’ that have yet to shift on their uniform charge policies and some old-fashioned land value rates out there that make for particularly bad reading. You can count on Federated Farmers being back in council chambers early next year, trying to hold the lid on an already bulging pot.

ECONOMY

Long-term forecasts come with hidden risks By Anne Boniface ANZ senior economist Many of the strategic decisions farmers (like other business owners) must make are based on an outlook that extends far beyond the next season. Accordingly it can be useful to stop, take a step back and review the bigger picture. For example, where might interest rates and exchange rates be headed over the next decade? We should be clear at the outset, that attempting to answer such questions clearly comes with a few health warnings. Long-run forecasts are not precise predictions. In reality the economy will be thrown in one direction by surprises we simply can’t see coming — we can’t forecast droughts, disease outbreaks, or earthquakes just to name a few such surprises. But that doesn’t mean long run forecasts can’t be useful. They are a way of outlining our assumptions for how the current cycle might play out and give

some basis for planning, given what we do know today. The good news for New Zealand farmers is that we remain firmly optimistic on the longer-term outlook for global food prices (though volatility will remain a feature and prices are set to come under downward pressure in the near future as supply increases). The rapid growth of Asian demand, changing appetites and consumption patterns as well as increasing incomes of consumers in this part of the world, all point in favour of New Zealand’s competitive strength as a food exporter. This view in turn means we expect the NZ dollar to remain relatively high against the USD. We expect it to average around 71 cents over the next decade compared to 73 cents over the previous one. In contrast, interest rates are expected to be lower on average over the next decade than they were over the last one. But that’s not to say they will

stay as low as they are now. Indeed, the start of the inevitable tightening cycle is creeping closer. The domestic economy is gathering momentum. Consumers are spending on the back of a buoyant housing market, the construction sector is going from strength to strength and businesses are more optimistic than they have been in years (with this increasingly reflected in investment and hiring decisions). Add to this an impressive recovery in the agricultural sector after last summer’s drought and it’s looking like GDP growth will be very strong over the next year. This pickup in activity will eventually have the economy bursting at the seams, and inevitably lead to rising inflation. We expect the Reserve Bank to respond by start hiking the OCR from April next year. But by 2017 the situation will have changed. The pace of the Canterbury rebuild will be slowing and the economy

will be responding to higher interest rates. The RBNZ will embark on an easing cycle. Just how high the OCR will have to go before it brings inflation back into the RBNZ’s target band depends on just what the ‘‘neutral’’ OCR is. That is, where interest rates need to be set in order for the economy to be able to hum along at full capacity without putting upward or downward pressure on inflation. While this speed limit can change (it probably fell in the aftermath of the global financial crisis but will likely increase again as inflation expectations rise, bank funding costs return to more average levels and the recent trend toward more saving by New Zealanders and globally fades) we think it will be about five per cent over the next few years. So for the RBNZ to be able to put downward pressure on inflation, it will need to raise the OCR above this level. We’re forecasting the OCR to peak at 5.5 per cent by the end of 2016.

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December 2013 National Farming Review

WEATHER

An active spring and beyond We can still expect lows from the north Tasman Sea that have a good moist northerly feed of air ahead of them and perhaps a good day or rain or so to follow.

By Dan Corbett Metservice ambassador The fast paced ‘‘Roaring Forties’’ certainly lived up to their name bringing much of New Zealand a very active spring during September and October with extremely unsettled weather, flooding rains and damaging winds to parts of the country. On September 10 a large high anchored to the east of NZ and a positive tilting upper trough helped set up a tight pressure gradient and very strong northwest flow across the country. A large area of severe gales spread up the country from midday until the pressure gradient weakened when the front was across the North Island later in the day on September 12. The strength of the northwesterlies was also enhanced due to the orographic effects from the Southern Alps as well as the downwind effects from the inversion that sat just above the ridge tops. The position of an inversion can help to channel winds just like steep valley but in the horizontal direction.

WEATHER: September was an especially stormy month. It brought severe gales and heavy rain throughout the country.

SEPTEMBER’S GALES

The sub-tropical low

In late September a sub-tropical low barrelled into the north of New Zealand with heavy rain and severe gales. Rainfall rates exceeded 20mm/hr across the hills of Gisborne and wind gusts exceed 150 km/h in the outer islands of the Hauraki Gulf as the low approached.

More damaging Nor’westers Almost a month to the day another round of damaging severe gales hit the country from Canterbury up to central New Zealand. Fortunately, these winds were not to the strength across Canterbury as the previous storm but wind gusts were still up around 100 kmh in places with higher locations recording winds in excess of 200kmh. There were also reports of power lines and some trees blown down. The winds with this storm were very strong across the Wellington region with gusts up to 126 kmh at Wellington airport, 139kmh at Kelburn and in the surrounding hills gusts reached 170kmh on October 14.

Location Dunedin Christchurch Wellington Napier

Maximum speed 109kmh 133 kmh 115 kmh 96kmh

The front continued to bring some very heavy persistent rain to much of the North Island particularly the Central Plateau where over 100mm of rain fell upstream of the Whanganui River. This heavy and persistent rainfall caused flooding along the river downstream all the way down to Whanganui. In the second half of the month there were further active fronts that brought spells of strong to severe gales from inland parts of Canterbury up to the lower North Island. Wellington airport gusted up to 126kmh in strong northwesterlies on the October 24. On the back end of one of the active troughs moving up the country, fresh snow even fell down to a couple of hundred metres across the far south during the Labour Day weekend.

Time 2pm, September 10 11pm, September 11 7pm, September 11 2am, September 12

The outlook

The biggest change in the weather during the coming weeks will take place as a result of the seasonal shift into early summer. Much of the country will be out of the firing line of active weather systems as the zone of the roaring forties begins to sink back down to the south to its normal summer time position. The shifting of the roaring forties weather zone further south will mean that the anticyclonic ridge axis will intrude further south across the country allowing more days of settled weather to take place. The Southern Ocean and the Tasman Sea will still be a source region for weather systems that will take aim and potentially impact the weather across New Zealand but with less zing

W AT E R & L I Q U I D S T O R A G E

in the roaring forties because they are slightly further south this month. As a result, the weather will not have as much bark and bite compared to the last couple of months. That said, we can still get a sharpening upper trough to develop a more active weather system bringing us a couple of days of rain and wind. With a greater heat contribution from the sun we can also expect to see more of the typical things that take place in late spring and summer such as thunderstorms with possible hail and gusty winds. There will be some nice-sized anticyclones visiting New Zealand with the seasonal shift south of the anticyclonic ridge axis across northern parts of the country. The anticyclones will bring us some fine late spring early summer days when they visit. We can still expect lows from the north Tasman Sea that have a good moist northerly feed of air ahead of them and perhaps a good day or rain or so to follow. Be aware of any blocking which can keep weather patterns stuck in one position longer than usual and can lead to anomalies of wet or dry depending on where the block sets up. As we head further into the New Year keep an eye on the weather maps for any unusual trends or persistent weather patterns that start to develop that could lead to different weather outlooks. The tropics will also come to life by the end of the year with the added potential for any remnant tropical cyclones to bring a good source of some moisture if the upper level winds steer them in our direction.

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December 2013 www.fedfarm.org.nz

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EMPLOYMENT

Making the 90-day trial process work The employment trial period, what you need to know, writes Emma Coburn Therefore, if a person is considered to in reward for their work done. Employing someone is a big commitment. What an employer fact be an employee whilst undertaking a In a recent case heard in the There are many responsibilities that pre-employment trial, if they are then Employment Court, a potential emcome with it and conversely an employer might consider a offered a permanent position, the 90-day ployee underwent a pre-employment places a lot of reliance and faith in their trial period may therefore be considered trial totalling three hours over two days employee. pre-employment void. at a salad bar. Sometimes it extends beyond this — Because of this ambiguity, preThe employer provided her a free particularly in smaller businesses where trial to assess employment trials are best avoided as an salad for lunch following her shifts. At employees can be considered part of the employment agreement (such as the the end of the second day around $50 family. It stands to reason that employers suitability for Federated Farmers Individual Employwas missing from the till, and upon have a lot to consider before bringing ment Agreement) already contains a checking the employee’s references, the someone into the fold. employment, may 90-day trial period provision which (if unsatisfied employer let the employee The 90-day trial period allows emexecuted properly) will provide a safety know by text that there would be no ployers to assess the skills and actually be net for employers. more work available. competencies of an employee in their first Nonetheless there are ways for emUnfortunately for the employer, thee months of work. considered by a ployers to mitigate these risks during a there was no such thing as a ‘free lunch’ During the 90-day period, employers pre-employment trial, such as: — the Court held that this actually can determine whether employees are fit court to be ■ Clearly explaining that the preconstituted a ‘reward’ for services, and for continued service and dismiss those employment trial is part of the recruitthat her work had contributed to the they do not wish to continue employing employment. ment process; employer’s business, therefore what without fear of legal backlash. An effective 90-day trial period needs to be outlined in writing in the employment agreement, which is signed by the new employee before he or she commences work. It is important to note that 90 days is the maximum period, but employers and employees can agree on a shorter period if they wish. It is common in some workplaces for an offer of employment to be dependent on performance during a pre-employment trial. When an arrangement such as this

takes place before the 90-day period, employers can sometimes get themselves into sticky situations. What an employer might consider a pre-employment trial to assess suitability for employment, may actually be considered by a court to be employment. While ‘volunteering’ is not considered an employment relationship, it will be if the ‘volunteer’ providing their services expects to or actually receives

actually occurred was an illegitimate 90-day trial period. By asking her not to return, it was an unjustified dismissal because no disciplinary process had been followed. This case is a good example of some of the confusion that can arise with preemployment trials. Not only is there the potential for an unjustified dismissal if the applicant is unsuccessful in their job trial, but a 90-day trial period can only be used where the employee is ‘new’.

■ Ensure the potential employee is not paid or rewarded for the work they undertake; and ■ Ensure the work performed does not substantially contribute to the business in any way. ■ If you have any questions about a ‘preemployment trial’ or 90-day trial periods generally, call 0800 FARMING for free, confidential and independent employment advice.

Ph 0800 327 646 www.fedfarm.org.nz

December 2013 National Farming Review

MEAT & FIBRE

INDUSTRY GROUPS

Keep calm and shear on By David Burt Primary sector industry advisor New Zealand wool is of the highest quality but a recent problem — the non-wool contamination of bales of greasy wool — has surfaced and needs to be addressed. Over the last year, wool scour operators, shearers and the Federation have become increasingly concerned at the amount and nature of non-wool contamination being found. A wide range of items, from nails and plastic bags up to mobile phones, pieces of clothing and press bars have been found in bales of wool. The removal of these and other non-wool contaminants is, at a minimum, time-consuming for the processors of the wool. If they are not found and removed prior to further processing, they have the potential to damage machinery. This can result in a loss of value of the finished products if a contaminant — such as baling twine — is incorporated into the material. Addressing the problem requires that both farmers and

A wide range of items, from nails and plastic bags up to mobile phones, pieces of clothing and press bars have been found in bales of wool. shearers have a higher level of awareness of what is happening in the shearing shed and ensuring that they have processes and checks in place to prevent anything but wool (and, in bin bales, newsprint for separation) going into wool bales. The sector has developed a number of initiatives to help solve this problem. One of these was the development of a presentation and related resources by Cavalier Woolscourers. Another is the development, by the Federation, working in partnership with the New Zealand Shearing Contractors Association, of the Keep Calm and Shear On poster.

This resource is designed to be put up in shearing sheds and provides key messages about how to prevent wool contamination. An electronic copy of the poster can be obtained from Sarah Crofoot, the Federation’s Meat & Fibre policy advisor. ■ Contact Sarah by email scrofoot@fedfarm.org.nz or telephone: 04 494-9195 or 0800 FARMING (0800 327-646). INVESTMENT: The Federation launched the Keep Calm and Shear On campaign to raise awareness of wool contamination. It reportedly costs the industry several millions a year.

Meat & Fibre meeting highlights projects By Sarah Crofoot Meat & Fibre policy advisor Federated Farmers hosted its annual Meat and Fibre council meeting in Wellington on November 21 and 22. It was attended by 38 members from around the country. There was a range of topical speakers as well as a number of opportunities for some good robust discussion amongst the group. Erica van Reenen of Beef and Lamb NZ (B+LNZ) ran a great workshop on the Land Environment Plan (LEP) Toolkit. This included an overview of what was involved in the three levels of LEPs and a series of great real life examples from around the country of actions that have been undertaken to prevent erosion and degradation of waterways amongst others. In groups, the council had to implement an LEP on a model farm

identifying the appropriate stock for different land classes, pest management strategies and how to cope with native bush and waterways. Dr Paul Le Miere followed this up with an overview of the process for managing freshwater from the National Objectives Framework. James Parsons, the chairman-elect of B+LNZ, gave us an update on some of the key projects they are involved with. Some of these included Beef + Lamb Genetics, the Red Meat Profit Partnership, their role in the environmental space and future collaborations with Federated Farmers and the role of B+LNZ as providing information during the ongoing debates around meat industry structure. Scott Champion, chief executive of Beef and Lamb NZ, Malcom Bailey, the independent chairman, and Duncan McKinnon, the project manager, gave us an overview of the Red

Meat Profit Partnership programme. It consists of four key projects: understanding behaviour change, sector capability, systems and data integration and production and provenance. Philippa Wright gave us an overview of the activities of Campaign for Wool. With HRH The Prince of Wales as its patron, the Campaign for Wool was established to educate consumers about the properties and versatility of wool. It is a global initiative currently active in 11 countries. Some of its major recent events in New Zealand have included the NZ Wool expo in conjunction with PGG Wrightson and Massey University, Shear Brilliance at the Cloud and Shear Fashion at Golden Shears, with a number of future events in the pipeline.

There was significant, in-depth discussion about the future of the meat industry with a number of possible situations explored. This discussion was centered on the Federation’s Meat Industry Options paper which will be released to members shortly. The meeting was finished off with an interactive health and safety workshop run by the Federation’s own Kara Lok. This included an overview of what constituted good health and safety and how to implement a health and safety plan. There was also a group exercise where they had to identify hazards, assess the risk they posed and determine how they can be controlled using the eliminate, isolate, minimise approach. Overall, it was a great couple of days allowing delegates from around the country to discuss the current issues facing the meat and fibre industry and determine our pathway forward.

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The Herbage Seedgrowers’ Subsection of Federated Farmers is currently consulting on the renewal, for another six years, of the Non-Proprietary Cultivar and Uncertiﬁed Herbage Seed Levy. The Executive of the group intends to submit the renewal of the levy to a grower ballot in March 2014. The levy is collected from growers of Non-Proprietary Cultivars (known as Commons) and uncertiﬁed ryegrass and clover. Growers with crop of leviable seed from the last two years will be entitled to vote in the referendum. For more information please contact: Nick Hanson on 03 357 9457 or nhanson@fedfarm.org.nz

National Farming Review

December 2013 www.fedfarm.org.nz

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GRAIN & SEED

Blackgrass response well under way By Nick Hanson Grain & Seed policy advisor The Ministry for Primary Industries (MPI) is well underway with a strategic response to the inadvertent release of seeds of invasive weed, Blackgrass, in the prime cropping country of MidCanterbury. This activity is in response to a spill of Blackgrass contaminated imported red fescue seed that was being transported between Ashburton and the Methven area for treatment after the presence of contamination had been detected by MPI. It is an extensive incursion response, the cost of which is projected to reach six figures. The plan was developed by industry in consultation with MPI during September and, while initial steps were taken to lock-down road verges, on-theground response activities began last

UNWANTED: The release of Blackgrass seeds in Mid-Canterbury in September prompted a speedy response by MPI.

PHOTO: FRANCK LE

DRIANT FLORE ALPES

month to coincide with lifecycle of the weed. Surveillance, spraying and mowing were delayed in order to ensure that they would be effective against potential germinated plants. The response is initially scoped and funded for three years with a four-

pronged strategy: ■ Surveillance by farmers and other land occupiers in the target area. ■ Active surveillance by expert rogueing contractors and industry staff. ■ A selective herbicide programme to target defined high risk areas where roadside vegetation density is not such that it would suppress the development of germinated Blackgrass plants. ■ Frequent mowing of roadside vegetation to prevent black-grass plants that do germinate from becoming reproductive. While an MPI Strategic Leadership Group and a response manager take overall responsibility for the issue, an operations manager with arable industry experience has been appointed. The operations manager will oversee the contracting and delivery of services including surveillance and re-

Vets and farmers work together A lot has been written in the rural press over recent weeks about the whey protein concentrate contamination issue. Fonterra has conducted several internal reviews and the Government is also conducting an inquiry, including calling for submissions from interested parties. The New Zealand Veterinary Association (NZVA), as an important stakeholder in ensuring a robust agricultural and livestock sector, has provided a submission to the Government’s inquiry. NZVA believes it is important for the country that we learn from this incident and ensure that we have robust and defendable systems and structures in place to minimise similar incidents occurring that might jeopardise New Zealand’s reputation for producing high quality animal products to the world’s consumers. Veterinarians are recognised as one of the most trusted advisors to the farming community. NZVA believes that fundamental to a robust livestock production system is the farmer relationship with their veterinarian. There are many risks associated with livestock production that challenge the ability of farmers to produce animal products that meet the demands

CO-OPERATION: NZVA will continue to work with Government and industry on an integrated approach across the whole supply chain.

of the market. NZVA’s submission highlighted that New Zealand agriculture is vulnerable to food integrity concerns, and that as the country works to double its exports by intensifying agriculture, it will become increasingly vulnerable. Greater oversight is necessary to mitigate risks and seize opportunities, and this oversight should include government, industry groups, veterinarians, farmers, researchers and others working together. NZVA’s submission also highlighted the growing reliance of New Zealand agriculture on off-farm feed, and the inadequate systems for

ensuring that feed is uncontaminated when it arrives on-farm or remains fit for use. Poor storage, or lack of traceability and quality assurance systems, leads to risks from salmonella outbreaks, mycotoxins via poor feed storage, and heavy metal or biological contaminants. Overuse and misuse of restricted veterinary medicines is a risk for causing residues in meat and milk, and concern over the role of agriculture in the possible development of antibiotic resistance is growing. Veterinarians and farmers need to work together to ensure these medicines are used prudently, and only as part of an integrated animal health programme. NZVA will continue to work on an integrated approach across the whole supply chain to minimise the market access risks to our industries. We encourage all livestock farmers to have a well developed and ongoing relationship with their veterinarian to ensure that they get maximum value from the training and experience that our veterinary professionals provide. — New Zealand Veterinary Association

moval of plants (if discovered) spraying and mowing. Property occupiers are encouraged to continue to short mow their road verges, but the response will engage contract mowing for areas that have not otherwise been mown. As part of the incursion response, MPI have contacted all roadside properties to keep them informed and also to seek information regarding stock movement, roadside cultivation and earthworks. This step has identified some soil that had been removed from the roadside after the incursion which has been able to be tracked and appropriately managed. Federated Farmers, with others in the industry including the Foundation for Arable Research (FAR) and the New Zealand Grain and Seed Trade Association (NZGSTA), were instrumental in the development of a credible response.

NEW STAFF Dr Lisa Harper

Regional Policy Advisor — Taranaki (Dr Harper is a temporary replacement for maternity leave.) Lisa was raised on a sheep farm in Marlborough, before training as a scientist, first in Wellington, then at Lincoln University. She has a Masters in Business Management and a PhD in Plant Pathology. Lisa worked on the control of fungal diseases in vegetable crops until returning home to the family farm in 2003. For nearly 10 years, Lisa ran a farm business involved in educational tourism and the manufacture of dairy products. Lisa was the 2011 winner of the Rural Women Enterprising Woman Award. She was a New Zealand Nuffield scholarship recipient. ■ lharper@fedfarm.org.nz (06) 757 3425

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Kevin Muir

Field Officer — Southland Kevin has a strong background in business management and sales. He returned to Southland seven years ago to follow a business opportunity. Invercargill-based, he has two children Jaden 11 and Tayla 9. A keen sportsman and president of his squash club, he also enjoys learning to play golf. Kevin was recently a competitor in the Fight for Kids (charity boxing) event in Invercargill. He is looking forward to the challenge of showing the rural community that Federated Farmers is in a very strong position to help on a vast number of issues. He is keen to discuss membership issues, advocacy and what Federated Farmers has to offer. ■ kmuir@fedfarm.org.nz 027 551 1639

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National Farming Review

December 2013 www.fedfarm.org.nz

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DAIRY, BEES

Improved herd-owning agreement By Ann Thompson Dairy policy advisor By the time the National Farming Review falls into your letterbox, Federated Farmers will have launched its revised Herd Owning Sharemilking Agreement. This agreement is used in dairy businesses where the farm owner owns the land and the sharemilker owns the dairy herd. It is sometimes referred to as a 50:50 contract, reflecting the common split of the profit of the farm business. The first Federated Farmers Herd Owning Agreement was launched in 2007. While we recognise that one should only fix those things which are broken, we think that the changes made to dairy company payments (notably Fonterra’s), obligations around nutrient management and the higgledy-piggledy layout were sufficient reasons to review the agreement. Our legal partners, DLA Phillips Fox, and our farming leaders have also been fielding a number of calls around pasture and feed management, especially as a result of the recent droughts. The changes made by members of the Sharemilkers’ Section and the Sharemilker Employers’ Section, after industry wide consultation, will be welcomed by both farm owners and sharemilkers alike. A new section on feed, cultivation, harvesting and grazing-off will prompt both parties to think about their expectations for the coming season, and who pays for what when the season ends and there is less or more surplus feed than expected. After all, dairy farming is all about keeping the cows in good condition, not about sticking to an agreement made 12 months prior when the

DAIRY DIARY ■ Sort out staff cover for the Christmas holidays. ■ Write clear instructions for those running the farm while you are away. ■ Redo your budget to bring it in line with forecast weather conditions and payout forecast. ■ Settle and sign that contract. ■ Enter the NZDIA competition. ■ Register for one of Federated Farmers Leadership courses — these are being held in February, March, May, July, October and November next year. ■ Take time out — you have earned it!

LOGICAL: The federation has revised the Sharemilkers 50:50 agreement. The changes should help landowners and sharemilkers plan better for adverse weather events and the issues arising from it.

weather was a forecast and not a reality. Another new consideration is to do with the power cuts that almost seem annual events due to inclement weather, leaving farmers having to make alternative arrangements for milking the cows. We think it’s fair that the farm owner supplies the generator while the sharemilker supplies the fuel and if necessary the tractor to run the generator. If you don’t, you can agree to a change up front, where it matters. Both the clauses to do with effluent and dispute management have been aligned with the Variable Order

Sharemilking Agreement, which we think is sensible. The ability of Fonterra’s shareholders (and here they are the farm owners) to trade shares throughout the season may impact on sharemilkers. We have made it clear that the opening shares and vouchers are stated at the beginning of the season, and that if the farm owner wishes to dispose of any of these shares during the season that will affect the sharemilker’s income. They must consult with the sharemilker first. If the sharemilker is financially disadvantaged, then the

owner must compensate the sharemilker for loss of income from the milk. The layout of the agreement will give some farmers a (pleasant) surprise. We have set out the things which must be filled in, altogether, referenced to the appropriate clauses further on in the agreement. While intent of the ‘old’ agreement has not been lost, we do feel that grouping all the various sections that relate to the operation of the farm in a logical order is a vast improvement. The clearer language is also likely to please farmers, too. ■ The Federated Farmers Herd Owning Sharemilking agreement is available from Federated Farmers (phone 0800 327 646). The price for Federated Farmers members is $60 + GST; non-members $360 + GST.

Working together key Tick threat spreads for bee industry sectors with ideal conditions By Nick Hanson Bees policy advisor

By Ann Thompson Dairy policy advisor

New Zealand Apiculture Industry Conference Wanganui — June 22-26, 2014

New Zealand has, on the whole, been remarkably free of tick-born diseases. While some areas have ticks which bother cattle, few farmers have had to worry about routine tick treatments. This may be about to change. The tick-borne parasite Theileria orientalis ikeda, which causes anaemia, consequent loss in production and occasional death in cattle, has been found on farms from south Waikato, Taranaki, Whanganui, Bay of Plenty and Poverty Bay northward. Another case was in Canterbury. While no known cases have been reported in Nelson, Marlborough and Golden Bay, cattle ticks are common there. Birds, rabbits, hares, horses and dogs, as well as cattle, are known hosts of the cattle tick, although cattle are the only known animal affected by the Theileria. There has been media coverage about Theileria and how it doesn’t affect their area. So you know — if you have ticks in your paddocks and your climate supports them, there will come a time when you will have Theileria in your cattle. All it requires is stock movement in the neighbourhood for it to become established on your farm. This includes bulls coming into service your (or a neighbour’s) cows, heifers coming to graze your lovely pastures, stock returning from green pastures, new cattle bought at saleyards, or someone else’s stock using your yards. Any of these

A move was made toward greater unity after New Zealand’s bee and bee products industry released preliminary details of all industry conferences and annual meetings for next year. The Wanganui Racecourse will host a joint industry conference from June 22-26. The New Zealand Apiculture Industry Conference will focus on attracting participants from throughout the country and from various parts of the diverse beekeeping and bee products industry. It will combine the previously separate conferences of Federated Farmers’ Bee Industry Group and National Beekeepers’ Association Conference, although the groups will hold separate annual meetings. The conference theme, working together, sums up the desire of the organising committee. It comprises representatives from different industry groups committed to bringing unity to an industry which has suffered from a lack of cohesive representation. ‘‘The fact the National Beekeepers’ Association and Federated Farmers’ Bee Industry Group have come together to organise one conference is a huge step forward for unity in what has been a divided industry,’’ said John Hartnell, chairman of Federated Farmers’ Bee Industry Group. The change in emphasis from a separate isolated conference will stimulate cooperation in other parts of the industry, he said. ‘‘There are a number of issues that can only be dealt with by a unified industry approach. The fact it can be considered by everyone in

the industry at the conference will be hugely beneficial,’’ Mr Hartnell said. Federated Farmers’ bees members have made it clear they think the industry is being held back by a lack of resources to invest in industry-good activities, from biosecurity and market access to bee health research. Pleas for voluntary levies from several different corners have helped and some vital projects have been initiated because of the generous contributions of some beekeepers. Other projects, equally as crucial, are stalled and the industry is reliant on a few beekeepers prepared to contribute when others aren’t. Federated Farmers Bees has begun devoting some resources to investigating the feasibility of instituting a compulsory commodity levy but this requires buy-in from everyone in the industry and it has to be discussed fully, with an opportunity for everyone to contribute, Mr Hartnell said. ‘‘The New Zealand Apiculture Industry Conference will give us a great opportunity to do that,’’ he said.

scenarios could have brought it south from Northland into the infected areas. At any time there will be many more ticks in the pasture than on the animals. Ticks like long grass and damp conditions. Running newly-weaned calves and vulnerable stock, such as newlycalved cows, after stronger stock has grazed the paddocks may minimise the risk of infecting vulnerable animals. Treating for ticks and quarantining incoming stock will help minimise the risk of bringing it on to your farm. The activity period of each stage of the tick is fairly distinct, with adults appearing in November and December. The larvae, which are very small, appear about February and March. Nymphs, which are bigger than larvae but smaller than adults, appear between July to September with another small batch in April and May, although this will vary season to season and region to region. This means there are several points in the tick life cycle where tick treatments can be applied to maximum effect and we suggest you talk to your vet about this. Farmers suspecting infection (anaemia, tired and lethargic animals, pale mucous membranes, a drop in production or unexplained stock death) should contact their local vet. There are no human health or food safety risks associated with Theileria. More information is available at DairyNZ, Beef+Lamb New Zealand, the Ministry for Primary Industries and your vet.

FESTIVE

food &wine

Wine writer Yvonne Lorkin’s Christmas wines

the pick of the PINOT NOIR: Doctor’s Flat Central Otago Pinot Noir 2011, $44: Pinot lovers, no, scratch that, wine lovers will fall in love with the opulent, plump and spicysweet red fruit that practically bounces from the glass with every sniff. Brancott Estate Forgotten Valley Marlborough Pinot Noir 2011 $44: A lovely wine, redolent of wild strawberries and rhubarb leaf on the nose. Available exclusively at the Brancott Estate Heritage Centre in Marlborough. Greystone Waipara Pinot Noir 2010, $39.95: A seriously sexy wine which manages to balance rich, concentrated cherry and berry flavours, layers of spice and ripe, rumpty tannins with elegance, balance and poise. Thornbury Central Otago Pinot Noir 2010, $31.95: A dense, delicious pinot packed with black cherry, berry, anise and smoky tones while being ultrafleshy and ripe in the mouth and showing superb length of flavour. Cloudy Bay Marlborough Pinot Noir 2011, $39: A cracking wine from a company that clearly thinks ‘‘compromise’’ is just a ‘‘c’’ word. Perfumed with spicy cherry, roasted game juices, flickers of rosemary and fresh fruitwood smoke.

GEWURZTRAMINER Te Mania Nelson Gewurztraminer 2012, $21: This is one heck of an exotic, seductive sip that will have you luxuriating in lychee, fig and date deliciousness. Vinoptima Reserve Gewurztraminer 2008 $96: Scented with grilled peach, turkish delight and rose caramel, this wine has a seamless elegance, cleansing sweetness and is powerfully structured. Amazing. Waimea Nelson Gewurztraminer 2011 $24: A triumph of tonguetingling, tropical fruit, lychee, honeysuckle and rose petal flavours. Opulent but elegant at the same time, just superb, an absolute joy to drink. Misha’s Vineyard ‘The Gallery’ Gewurztraminer 2012 $31: Sweetly perfumed with nectarine and lychee, soft, ginger, cinnamon and hints of honeysuckle. Vibrant, dry and shoulder-shaking tastiness on the finish. Gorgeous. Dry River Bunch Selection Martinborough Gewurztraminer 2011 $50: There’s a honeyed, raisinlike, yellow plum and peach character in this wine. One sip will offer incredibly silky texture and a decadent, indulgent length of flavour.

CHARDONNAY Mahi Twin Valleys Vineyard Marlborough Chardonnay 2011 $39: There’s a fantastic freshness and an explosion of juicy pineapple, peach and mandarin in this wine. My kind of chardonnay. Matua Single Vineyard Marlborough Chardonnay 2011, $46: It smells like peach compote on toast, followed by a rush of tropical intensity edged with grilled grapefruit, honey and a delicious creamy complexity to counter its crisp, lipsmacking acidity.

BUNCH

Neudorf Moutere Chardonnay 2012 $64: Groaning with spicy, grilled stonefruit layers that are edged with grapefruit and stitched together with elegant acidity, this wine definitely deserves attention. Morton Estate Coniglio Hawkes Bay Chardonnay 2010 $90: There is so much going on in this chardonnay it almost needs its own personal assistant. Creme caramel, candied grapefruit, grilled peach and a hefty wave of toasty, nutty notes lead the way to a long, luscious yet elegant finish. www.mortonestate.co.nz Pencarrow Martinborough Chardonnay 2011, $21: Absolutely oozing grilled grapefruit, roast peach and toasted almonds. In the mouth it’s clean and crunchy, beautifully balanced aciditywise and has a gorgeous juicy texture. Mills Reef Reserve Hawke’s Bay Chardonnay 2012 $24 A big, bold, grilled nectarine, caramelised peach and all sorts of stone-fruity goodness just ooze from the glass. Grapefruit notes and a luscious, succulent, brulee-ish mouthfeel, pure fruit, elegant acidity and excellent length of flavour. www.millsreef.co.nz

BUBBLES Cloudy Bay Pelorus NV, $37: Delicious biscuit and creamy characters on the nose, and a cloud of almond-meal, lemony loveliness and breadcrusty beauty on the palate. One of the finest sparkling wines New Zealand has to offer. Daniel Le Brun Blanc de Blancs 2009 $39: 2009 was, according to the notes that accompanied the bottle, ‘‘an exceptional year for producing sparkling wine grapes of truly great intensity and roundness’’. And after tasting this wine I’d definitely agree. The brand has been in the Lion stable for a few years now and sparkling wine specialist Andrew Petrie makes these wines at Wither Hills. Blanc de blanc means it has been made only with white grapes, ie, chardonnay. Sourced from fruit grown in their Selmes Rd, Francis and St Leonard’s vineyard, this wine is bright, fresh and toasty, with juicy, crisp acidity and mouthfilling, leesy richness on the finish. Sensational stuff indeed. online shop www.lk.co.nz Brown Brothers Patricia Pinot Noir and Chardonnay Brut 2006 $40: With delicate bead, persistent mousse and beautiful aromas of strawberry

shortcake and stonefruit, it has lovely balanced acidity, an incredibly fresh and vibrant mouthfeel with stunning, biscuity length of flavour. Palliser Estate Martinborough Methode Traditionnelle 2008 $37: Pretty white gold colour in the glass and showing delicate clouds of fig, breakfast-bun, shortbread and hazelnut on the nose. It is elegant and nicely balanced in the mouth and has a full, nutty, biscuity finish. GH Mumm Cordon Rouge Brut 750ml, $65: Layers of berry brioche, with deliciously textural, elegant yeast autolysis notes and hints of strawberry shortcake. Available from good wine stores nationwide. Daniel Le Brun Methode Traditionnelle 2008, $39: One of the best things I’ve tasted all year. With gorgeous aromas of Danish pastry and lemon shortbread, and a lovely, elegant mouthfeel and delightfully sophisticated finish. Did I just use the word ‘‘delightfully’’? Anyway. It’s like a blonde Princess Mary of Denmark in a bottle, basically. online shop www.lk.co.nz

MIXED REDS Kidnapper Cliffs Hawke’s Bay Malbec 2009 $45: An earthy, black forest, cherry-cocoa and mace aroma with a rich, meaty mouthfeel oozing gamey, chocolatecovered liquorice flavours. Babich Irongate Hawke’s Bay Cabernet Merlot Franc 2010, $35: Cabernet franc makes up one third of the blend in this now iconic Kiwi red. Babich have been producing this wine since way back in 1986 and all the fruit is sourced from the famous ‘‘Irongate Vineyard’’ in the Gimblett Gravels. It is inky-black and oozes dark plum, blackberry and lifted, exotic spices and has delicious, savoury layers of flavour and a smooth, warming finish. Just superb. for sales visit www.babichwines.co.nz

PINOT GRIS Dry River Martinborough Pinot Gris 2012, $65: Aromas of poached nectarine and grilled pear combine with lavish, vibrant, nashi-like sweetness and snappy, succulent acidity that balances the luxuriousness of the mouthfeel. Neudorf Maggies Block Nelson Pinot Gris 2012, $26: Intensely spicy, and fragrant with quince paste and frangipane on the nose. Sea Level Home Block Pinot Gris 2011 $19: I love the aromas of frangipani, nashi and creme caramel while in the mouth there are

layers of gingerbread, quince, pear and prickly, textural acidity. Created from fruit grown in their Mariri vineyard by talented winemaker Sam Smail, this flavourful pinot gris finishes dry and delicious. www.sealevelwines.co.nz Rimu Grove Pinot Gris 2010 $31: Exotic confection and sweet, strudellike aromas make way for a wave of luxuriously slick spices, succulent stonefruit and zesty acidity which creates a platform for excellent persistence of flavour.

Brancott Estate Letter Series ‘R’ Renwick Sauvignon Gris 2011 $37: If you’re keen on a full-bodied, deeply textural white wine, this is it. On the finish, there’s a hint of frangipani and almond — love it! Blind River ‘The Sisters’ Awatere Sauvignon Blanc 2012 $19: Oh wow! This sensational sauvignon blanc

SYRAH Elephant Hill Airavata Hawke’s Bay Syrah 2009 $90: Seductive aromas of plum paste, white pepper and chocolate lead to spicy, luscious liquorice and Belgian biscuit flavours, which are fantastic. Church Road Reserve Syrah 2008, $38: Perfumed, savoury and peppery with leather, berryfruit and dark chocolate notes. The tannins were emery-fine and dusty after a few years but that just lifts the wine to another realm. Obsidian Waiheke Island Syrah 2009, $56: With fresh aromas of boysenberry and raspberry mashed into an oak bowl and sprinkled with black pepper, it’s dense, ripe, heady and exotic. Craggy Range Gimblett Gravels Syrah 2008, $32: Has the most delicious, silky texture and a raft of berryfruit and spice flavours. Glossy and gorgeous in the glass, with aromas of cracked pepper, cocoa and elevated, floral tones followed by a fresh, feisty finish. Mahurangi Estate Matakana Syrah 2010 $45: Packed with raspberry, blackcurrant and plum characters, it has a gentle, smooth, chocolatey finish. So drinkable it’s dangerous. Mills Reef Gimblett Gravels Hawke’s Bay Syrah 2012 $25: Winemaker Paul Dawick has done a fantastic job here, for a young wine it’s already boasting gorgeous boysenberry coulis, white pepper and smoky aromas alongside succulent plum and cocoa notes on the palate. Plump, plush and seriously tasty.www.millsreef.co.nz

CABERNET 2009 Penfolds Bin 389: Youthful raspberry, sweet spices and a delicious vibrancy pervade this wine. It’s a wine with power and presence. 2008 Penfolds Bin 389 Absolutely outstanding with a burst of fresh berry and beetroot and shows a pine and dried herb note. 2010 Penfolds Bin 389 It’s so young and so tightly coiled, yet you’ll find aromas of cassia bark, vanilla, plum and chocolate alongside intense blackberry, liquorice and spicy flavours, fresh acidity and sinewy tannins.

SAUVIGNON BLANC Mills Reef Marlborough Sauvignon Blanc 2012, $19: This is so superintensely tasty that I just want to shout it from the rooftops. I love the classic passionfruity, limey loveliness that this wine displays, and when combined with splashes of elderflower and feijoa, it makes for a sensational sauvignon experience. Clean, zippy on the palate and bursting with flavour. Sublime. www.millsreef.co.nz Brancott Estate Chosen Rows Marlborough Sauvignon Blanc 2010 $80: Aromas of daisies and newly-baled hay lead to a burst of pineapple, basil, a hint of toasted almond and lemon verbena on the palate.

smells like lemon sorbet mixed with passionfruit sherbert on a bed of blackcurrant leaves — gorgeous! In the mouth it is clean, zesty and oozes fresh lime and juicy, tropical richness, with an underlying vein of herbaceousness on the finish which, incidentally, is luscious and long, long, long. Did I mention it had a long finish? www.blindriver.co.nz Neudorf Nelson Sauvignon Blanc 2012 $23: Aromas of elderflower, citrus blossom and fresh fennel, followed by juicy lime, herbaceous hints and interesting texture and richness in the mouth and on the finish. Astrolabe Marlborough Sauvignon Blanc 2012 $21: Within seconds, morphs into tangy passionfruit and lime, and that’s exactly what you get on the palate. Full and generous, it’s a wine with punchy acidity and lovely, juicy mid-palate harmony.

RIESLING Rockburn Tigermoth Central Otago Riesling 2012 $33: Gorgeous green apple, Rose’s Lime Juice, mandarin and waxy honeycomb with an explosion of ultra-clean, tangy citrus and luscious, crunchy sweetness on the palate. Seifried Sweet Agnes Riesling 2011 $32:I would happily roll up my sleeves and launch into fisticuffs with anyone who disputed that this wine is one of the most consistently successful sweet wines from our shores. And it has international trophies and stacks of gold medals in the trophy cabinet, Seifried’s Sweet Agnes is a star. With grilled apricots, orange zest, baking spices and manuka honey on the nose, and decadently rich rose caramel, marmalade and clean, tangy acidity to lift the finish — this riesling is a true treasure. www.seifried.co.nz Waimea Classic Riesling 2011 $19: Oozes lime and tangelo tanginess, a beautifully taut, concentrated mouthfeel and a long, lingering finish which is edged with hints of mango.

MERLOT Villa Maria Reserve Gimblett Gravels Merlot 2010, $43: Bursting with intense blackcurrant, fresh, ripe plum and sexy, dark chocolate notes. Mills Reef Reserve Gimblett Gravels Cabernet Merlot 2010 $24: Dark and delicious! I love the prune, molasses, liquorice and dried rosemary aromas and flavours in this wine. It feels slippery and succulent in the mouth, fresh, yet it has density, concentration and real palate presence. It was just magic with my slow-cooked Chinesespiced beef shin recipe, too. www.millsreef.co.nz

National Farming Review, Monday December 9, 2013

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December 2013 National Farming Review

INSIDER

Parliament

NATIONAL COUNCIL

THE OFFAL PIT Farmers scrubbed

Bills in the House

As at November 22 several Bills relevant to farming were before Parliament, at various stages: ■ Land Transport Amendment Bill, First Reading ■ Local Government Act Amendment Bill (No2), First Reading ■ Regulatory Standards Bill, Commerce Select Committee ■ Animal Welfare Amendment Bill, Primary Production Select Committee ■ Food Bill, Primary Production Select Committee ■ Land Transport and Road User Charges Legislation Amendment Bill, Transport and Industrial Relations Select Committee. ■ Resource Management (Restricted Duration of Certain Discharge and Coastal Permits), Second Reading. ■ Heritage New Zealand Pouhere Taonga Bill, Second Reading.

TOP TALKERS: Sharing ideas at Federated Farmers National Council in Wellington last month. LEFT: Greens co-leader Dr Russel Norman expresses his admiration for Federated Farmers.

Other reviews and consultations Federated Farmers is also engaging with government departments on various reviews and consultations. For example, here are a few of the consultations we’re engaged in: ■ Improving our Resource Management System, Ministry for the Environment ■ Freshwater Reform 2013 and Beyond, Ministry for the Environment ■ ACC Levy Consultation 2014/15, ACC ■ Making our Dams Safer Consultation Document, Ministry of Business, Innovation and Employment. ■ Inquiry into Regulatory Institutions and Practices, New Zealand Productivity Commission. ■ Review of the Telecommunications Act 2001, Ministry of Business, Innovation and Employment. ■ Service Sector Inquiry, New Zealand Productivity Commission ■ Review of the Telecommunications Service Obligation, Ministry of Business, Innovation and Employment ■ Review of the Funding Assistant Rate, New Zealand Transport Agency. ■ Draft Tertiary Education Strategy, Ministry of Education. ■ Health and Safety Bill Exposure Draft,

Ministry for Business, Innovation and Employment.

News in brief

■ Local Government Bill introduced: A Bill has been introduced to complete Phase 2 of the Government’s Better Local Government Forums. It seeks to introduce more effective processes and governance arrangements, more fair and efficient decision-making processes, improvements to the law around development contributions, and more sound asset management planning. ■ Drink Drive Bill introduced: The Government has introduced a Land Transport Amendment Bill to lower the adult drink driving limit. Drivers committing an offence between 251-400mcg of breath will receive a $200 infringement fee and 50 demerit points. The Bill is expected to be referred to a select committee before Christmas and should be passed in 2014. ■ Game Animal Council coming: Parliament has passed the Game Animal

Council Bill. The Game Animal Council will take a leading role in the management of game animals — deer, tahr, chamois and wild pigs — and in improving opportunities to hunt them. ■ Building Bill passed: Parliament has passed the Building Amendment Bill (No4) which makes a number of changes to protect consumers and encourage a more productive and efficient building industry. It also changes the way dams are defined and measured to improve the efficiency and effectiveness of the dam safety scheme. ■ Livestock tax change: Following a review of the methodology for National Standard Cost, future grazing expenditure will be identified separately as a specific cost for R1 and R2 dairy cattle. This is to recognise increased use of off-farm grazing by dairy farmers. The change will make a significant difference to the NSC calculated for R2 dairy cattle and ultimately will be reflected in changes to the value of mature animals. To ease the impact IRD has agreed to phase it in over three years.

Dr Jan Wright’s water report has seen the business journalist, Bernard Hickey, see red. I struggle with Hickey labelling daisy the devil, but that’s what he implies by describing dairying as some Faustian pact. I don’t agree with him that Dr Wright’s report is a neutron bomb at the heart of New Zealand’s economic strategy. This is all from a guy who, in 2009, wrote, ‘‘I was wrong to predict a 30 per cent fall in house prices by the end of 2010. I now expect house prices to fall 15 per cent between the November 2007 peak and a trough in mid-2012.’’ For the record, national median house prices rose 5.7 per cent over this period and 11.1 per cent in Auckland. So much for predictions because that is what modelling really is. If MOTU and NIWA are 100 per cent right then they ought to be picking the Lotto. The 250,000 hectares of dairy conversion projected to 2020 represent 3.3 per cent of New Zealand’s total improved pasture land. Since we’re crystal ball gazing, this seems to come at the cost of all other productive sectors. It is so easy to get wound up by dairy while we ignore the loss of productive farmland; some 873,000 hectares lost to ‘lifestyle blocks’ since 1998 says Landcare. Where’s the gnashing of teeth over that? But the biggest surprise is Feds’ new industry group. That’ll be the ‘Scrub Industry Group’ or the ‘Not Farming Farmers’. The 2008-2020 model suggests ‘scrub farming’ will be New Zealand’s fastest growing farm category with an amazing 270,000 hectares. While beekeepers will be happy to see gorse, regional councils may be less so. Scion research for Bay of Plenty Regional Council found gorse leaches 40 to 60 kilograms of nitrogen per hectare per annum. Just like what you’d get from a dairy farm. I’m sure the world is keen on our food and fibre but isn’t clamouring for woody nitrogen fixing legumes like gorse and broom. ■ The offal pit is a contributed piece. It does not reflect the views or policies of Federated Farmers.

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