Farmers Weekly NZ August 7 2017

10-11 Election coverage starts Vol 16 No 31, August 7, 2017

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Farmers in the dark We need to get a lot better with NAIT as a nation, at this stage it’s only working at 40%.

Annette Scott annette.scott@nzx.com

D

EALING with the unknown continues to be the number one concern as anxious farmers desperately seek answers on the outbreak of Mycoplasma bovis in South Canterbury.

“There are a lot of holes in the information and we would all like to see MPI up the game a bit so we will see if we can get that improved,” Waimate District mayor Craig Rowley told farmers as he closed a second community meeting on Wednesday.

He acknowledged it was clear the Ministry for Primary Industries was struggling to get enough tests done and from the number of questions at the meeting farmers needed answers urgently.

The bacterial infection M bovis, not previously seen in New Zealand but notified on a South Canterbury dairy farm on July 25, had now been identified on two properties owned by the van Leeuwen dairy group that ran 16 farms, including two housed barn operations, in the area.

Cattle could be moved only within the van Leeuwen farms or transported to slaughter only by approved carriers.

At the second meeting at Papakaio near Oamaru ministry staff told nearly 200 farmers it was under-resourced to move as quickly as they would have liked to get results out.

While all the van Leeuwen farms were under Restricted Place Notices, testing of cows

Tom Rawdon MPI

PRECAUTIONS: Robin and Bruce Murphy have put up signs to mitigate risk on their farms.

Photo: Annette Scott

Oamaru. containment and eradication – was limited to what could be There were 60 staff, including MPI is focused on getting rid of handled by a single laboratory in contractors, working exclusively this thing and containing is the Wellington. on the response. best focus.

There were 16 farms effectively “Through testing, surveillance, “Containment is a method of in lockdown, 10 days on and there tracing and investigation we achieving the level of eradication were no signs anywhere on the continue to build the picture.” we are aiming to achieve,” properties to identify them. That Priority testing included farms Pridham said. was a serious concern for farmers. that might have got cows from the Because M bovis had been But MPI said signs were being van Leeuwen farms. found on a second property it did made and expected to be up very That was just a small number of not mean it was spreading. soon. farms and they were not publicly “It’s what we expected, no MPI regional response identified or under lockdown. surprises,” he said. controller Murray Pridham said “Sampling and testing was A full incursion response led what needed to be clear was that Ice and Glycolheadquarters options also available. comprehensive and took time,” national in MPI’s focus was on eradicatingProCool the from Pridham said.

Wellington was under way with disease.

Special lab equipment was a regional field office opened in “To clear up confusion over

needed and initially that meant MPI had access to just one laboratory in Wellington but efforts were being made to get more involved, including getting Fonterra on board.

“We have been under-resourced in that respect but with more labs coming on board more testing will come on stream in due course and we will be able to move ahead with more results.”

Pridham said there was no answer to how long it would take to get results.

With just two positive results from 29 tests, MPI animal health lab specialist incursion investigator Tom Rawdon said negative tests were more difficult to prove and required considerably more work.

“Proving a negative needs considerably more work because a negative is intricately hard to be certain about.

“We have been precautionary

Continued page 3

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NEWS

NEW THINKING

31 Housing cows saves farmers money

60 Wetter than

New Zealand’s pasture farming ethos will be retained as resourceful dairy farmers find ways of using off-paddock facilities and bank the benefits, Tom Pow says.

40

OPINION

4 MPI: Killing cows is not

necessary

The Ministry for Primary Industries has confirmed a total 150 cows were identified so far as infected in the Mycoplasma bovis outbreak on two of the 16 farms owned by the van Leeuwen dairy group in South Canterbury.

7 Dairy farmers still fighting debt Waikato and Bay of Plenty dairy farmers face a “back to the future” slog into 2020 to get back to their 2015-16 season when dairy prices took a tumble.

13 Govt shoots meat industry in foot

The meat industry hopes it can achieve a tailored deal with the Government covering the employment of overseas Muslim workers for the halal kill of livestock.

Japan has a beef with imports ���������������������������������������� 3 MPI: Killing cows is not necessary ��������������������������������� 4 Farmers must make own decisions �������������������������������� 5 Dairy farmers still fighting debt ������������������������������������� 7 Which way will dairy prices go? �������������������������������������� 8 Fed Farmers publishes wish-list ���������������������������������� 10 Nats say rural NZ is in good heart ������������������������������� 11 Govt shoots meat industry in foot ������������������������������� 13 Climate change needs new body �������������������������������� 14 Quality of wool must improve ������������������������������������� 18 Silverstream a picture of pollution ������������������������������ 24

34 Alternative View Alan Emerson applauds Parliamentary Commissioner for the Environment Jan Wright on her final report.

Editorial ������������������������������������������������������������������������� 32 Cartoon �������������������������������������������������������������������������� 32 Letters ���������������������������������������������������������������������� 32-33 Pulpit ����������������������������������������������������������������������������� 33 Alternative View ������������������������������������������������������������ 34 From the Ridge ������������������������������������������������������������� 35 From the Lip ������������������������������������������������������������������ 35

allies

Since its vote to leave the European Union a little over a year ago there has been no end to the dire predictions from those who believe Britain has turned its back on globalisation. Politician then diplomat Lockwood Smith is not among the hand-wringers, however.

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WORLD

36 Australia dairy accused of GM

‘hypocrisy’

Vast quantities of genetically modified soybean and canola meal are being fed to Australia’s milking cows.

REGULARS Real Estate ����������������������������������������������� 38-40 Employment ������������������������������������������������� 41 Classifieds ����������������������������������������������������� 42 Livestock ������������������������������������������������������� 43

MARKETS

Map reading tips This map shows the difference or anomaly in soil moisture level at the date shown compared to the average, generated from more than 30 years of records held by NIWA.

Job

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NEWSMAKER

30 NZ and UK could be trade

Soil Moisture Anomaly (mm) at 9am August 4, 2017

48 US holding export trump card?

New trade agreements point to the United States being a stronger competitor with New Zealand for dairy and beef exports to China.

Market Snapshot ����������������������������������������� 44

Contact us Editor: Bryan Gibson Twitter: farmersweeklynz Email: nzfarmersweekly@nzx.com Free phone: 0800 85 25 80 DDI: 06 323 1519

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 7, 2017

3

Japan has a beef with imports Alan Williams alan.williams@nzx.com JAPAN’S latest beef tariff action is like using a sledgehammer to crack a nut, industry leader Tony Egan says.

“It would be good to have a more gradual way of achieving what they want, something less dramatic than this.’’

Japan virtually overnight increased tariffs on frozen beef imports from New Zealand from 38.5% to 50% effective for eight months from August 1, even though this country wasn’t the cause of the change or the main target of it.

NZ was a very small player in the Japanese beef market, in which Australia and the United States between them had about 93% of total volumes, with the US increasing market share steadily, according to Australian data.

Australia had an Economic Partnership Agreement (EPA) with Japan, giving it preferential and significantly lower tariff treatment, not affected by the latest Japanese government action.

The US and NZ did not so the tariff hike applied to both countries.

Egan, managing director of Greenlea Premier Meats and a Meat Industry Association director, said having the US imports affected could be helpful in a way in how the overall situation was managed in what had historically been a very good beef market.

Continued from page 1 about getting negative results out at the moment – we need to re-test those negatives,” Rawdon said.

MPI was testing for bacteria on all van Leeuwen group farms and would progress to

“It’s a disappointing development and puts us at a disadvantage to Australia and makes it hard to be viable in that market.’’

Japan was trying to divert imports away as a means of protecting its own beef farmers.

The issue showed the trade agreements needed a reset, which would involve trade negotiations and diplomacy, he said.

“We need to get back on an even-keel with Australia.”

It’s a disappointing development and puts us at a disadvantage to Australia.

Tony Egan Greenlea Premier Meats

NZ exporters would be trying to achieve price rises in the market to offset the tariff rise and if that could not be done then they would be working out a balance with supply to other markets.

The pricing arrangements would take time to work through.

“They’ll be talking to customers, as they do want to keep them.”

Greenlea’s focus was more on China and southeast Asia than on Japan and Egan said

neighbouring farms once those were completed.

Rawdon said it was “quite likely” there would more farms infected.

When questioned if NAIT was working Rawdon said it was a very important component in traceability.

the overall world market was dynamic, though there was volatility in the US grinding-beef market.

The opening up of the Chinese market for chilled exports from NZ was a big opportunity that companies were trialling now.

An Australian report shown to Farmers Weekly showed that last year Australia had just over 54% of the Japanese market and the US just over 38% but this year the US had lifted to 42% at Australia’s expense.

It appeared to be the US volumes that spurred the Japanese action.

The US had increased the volumes of middle cuts – ribeye, striploins and tenderloins – as well as a main forequarter cut.

The tariff changes were expected to partly reverse the market trend as the US became less competitive though that would be offset somewhat by recent falls in the US dollar value.

The report quoted Japan Agriculture and Livestock Industries Corporation (ALIC) figures showing demand growth for meat (chicken, pork and beef ) last year was the fastest in five years and continued a 10-year growth trend. ALIC estimated 70% of beef was being eaten in Japanese restaurants, especially barbecue restaurants.

It was the demand for barbecue beef that had tilted the middle cut demand towards the US supply and away from Australia.

ELSEWHERE: Greenlea is focusing on China and southeast Asia more than on Japan, managing director Tony Egan says.

“But you don’t have to have NAIT within a 20 kilometre radius so we are relying on farm records and sitting down with farm managers and owners to trace back within that 20km.”

And NAIT was only a guide.

“We have got this issue with the 20km radius – we need to get

a lot better with NAIT as a nation, at this stage it’s only working at 40%,” he said.

The ministry said it was satisfied its response measures would contain any spread.

Meantime, MPI advised farmers it was up to them to make their own commercial

decisions about stock movements and buying calves because there was no answer to what risk there would be with only the van Leeuwen farms in lockdown.

There were also no restrictions on stock going through the Temuka saleyards.

Wairere turned our in

40% more lambs from the same scan Quentin Palmer manages Waituhi Kuratau Trust’s Waimiha property in the King Country. The 410ha effective block runs 2100 ewes and 70 cows, plus replacements.

“We were running composites with a high scan, but only 110 to 120% lambing.

The change, five years ago, to Wairere Romney has seen an increase to 155% with a weaning weight between 33 and 34kgs, up by 4kgs.

The low wastage in ewes and lambs has made the biggest difference. These sheep can count. And they can take a knock in winter and just bounce back.”

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4

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 7, 2017

MPI: Killing cows is not necessary Annette Scott annette.scott@nzx.com THE Ministry for Primary Industries has confirmed a total 150 cows were identified so far as infected in the Mycoplasma bovis outbreak on two of the 16 farms owned by the van Leeuwen dairy group in South Canterbury.

And 15 cows were destroyed for animal welfare reasons.

While there had been a call for all infected cows to be slaughtered onfarm, MPI specialist incursion investigator Tom Rawdon said that was not necessary.

“It would be extreme waste to put them in a hole.

“It has been a little bit of work getting it (cows off farm for slaughter) to happen but it can happen and be safely managed – that’s a bit nicer than shooting onfarm and putting in a hole.”

The first consignment of 90 cows sent for slaughter on August 1 went to Anzco Canterbury in Ashburton District.

Anzco chief executive Peter Conley said the cows were processed under MPI jurisdiction

and transporting trucks were disinfected under MPI supervision.

“We had to be very fluid, not because there was any concern around food safety issues but because everything was carried out under strict processes and regulations under the supervision of MPI.”

We are calving cows and sending milk and just hope like hell all tests in the next couple of weeks are all good. If not then I would say it’s all over NZ. Aad van Leeuwen Dairy farmer A second consignment was scheduled to leave the infected van Leeuwen farm last Friday.

That lot would not be processed at Anzco.

Conley said he understood any more infected cows would be slaughtered closer to home with another company.

“I don’t know who or where that is but there will be no more cows or calves from van Leeuwen farms coming to us,” he said.

One dedicated truck was being used to transport the cattle and the risk was “negligible”, MPI said.

Farm owner Aad van Leeuwen said Waimate Transport had specially dedicated trucks to his farms and was moving the cows.

He saw no reason for concern with the infected cows leaving the property for slaughter.

“This is an animal problem not a food safety or human health issue. The cows were okayed by a vet to go and everything is being done under MPI regulations.”

Initially there had been a delay in getting the cattle slaughtered under a meat industry embargo while health issues were investigated.

“That’s all clear and lifted and there’s no risk.”

Calving and milking were

HOPING: Farmers Aad and Wilma van Leeuwen have to wait to find out the extent of the Mycoplasma bovis outbreak.

continuing as usual on all his farms from which 90% of milk supply was to nearby Oceania Dairy. The other 10% went to Fonterra.

His farms were last on the calf collection run but he was not able to say how milk collection was being managed.

Oceania general manager Roger Usmar declined to comment.

Van Leeuwen said the second farm was very low level because some of the cows were on the infected farm over winter.

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“We have no stock movement whatsoever but we are calving cows and sending milk and just hope like hell all tests in the next couple of weeks from my farms and from neighbours’ farms are all good.

“From here it should stop, which means it will be contained.

If not, then I would say it’s all over NZ,” van Leeuwen said.

MPI stressed Mycoplasma bovis did not affect humans and there was no danger in consuming dairy products.

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 7, 2017

5

Farmers must make own decisions Annette Scott annette.scott@nzx.com THE outbreak of Mycoplasma bovis is a major event for both the dairy and beef industries and best practice onfarm biosecurity is key to effective risk management, Oamaru veterinarian Matt O’Sullivan says.

The bacterial disease was production-limiting but affected only cattle and posed no food safety or human health risks nor was it a threat to trade.

But Mycoplasma bovis, detected for the first time in New Zealand late last month on a farming operation in South Canterbury, has farmers on tenterhooks.

At a farmer meeting in Papakaio O’Sullivan backed the persistent questioning from farmers suggesting that in reality there would inevitably be a breakout.

Farmers needed to know what level of risk there was to their own farms and how they could best mitigate that risk.

He pushed Ministry for Primary Industries staff for a timeframe on some assurance as to when the cattle disease would be declared contained.

“Based on testing at the moment what date are we looking at for reasonable assurity it is contained,” O’Sullivan asked.

He emphasised time was the critical factor in mitigating risk.

“The longer we live with it on a contained farm the greater the risk it will break out,” O’Sullivan said.

MPI said the priority focus for testing was the infected farms and high-risk neighbouring farms.

“There’s no timeframe but hopefully in the next couple of weeks,” MPI specialist investigator Tom Rawdon said.

North Otago dairy farmer and Federated Farmers dairy chairman Lyndon Strang said farmers wanted to eradicate the disease or at least get to the stage it was manageable.

“We want to mitigate risk on our

FRONTING UP: Primary Industries Ministry officials addressed farmers wanting answers they couldn’t give.

Photo: Annette Scott

The privacy is past. It’s bigger than that now.

Lyndon Strang Federated Farmers own farms and we need to know everything to do that.

“The privacy is past – it’s bigger than that now.

“We need to get on and deal with this in the best possible way for the best possible outcome,” Strang said.

Farmers needed good reliable information with utmost transparency to effectively mitigate their own risk and to work with officials in containing the disease.

“To do that we need to know as much as we can and as much as is available without the social media hype, he said.

Just how confident MPI was that the disease response was isolated to South Canterbury or more widespread than was known was clouded with uncertainty.

“We have not got that picture yet. It will come,” Rawdon said.

Meantime, O’Sullivan urged farmers to do their own best practice biosecurity measures.

Industry stakeholders had compiled a guideline check list for onfarm protection.

It included the key symptoms in beef and dairy cows being untreatable mastitis, abortions, swollen joints and lameness in all ages of cattle.

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infections and conjunctivitis were all signs.

In building onfarm biosecurity, nose to nose contact with neighbours’ stock should be prevented because the disease spread via direct contact.

That could be achieved by creating boundary fence buffer zones.

Farm hygiene was effective at reducing risk of the disease entering a farm.

Disinfection points for cleaning footwear, protective clothing and equipment and vehicles going onto a property were encouraged.

Where practical, farmers should limit cattle movements because the disease could be present in healthy animals.

There was no pre-movement test that could be applied to detect infection in apparently healthy animals, O’Sullivan said.

Feeding raw milk from infected cows was known to present a high risk of disease spread.

“Ideally, only feed milk from your own farm to your calves and do not feed milk from cows with mastitis.”

O’Sullivan also suggested tankers should be kept clear of stock, manure and slurry from silage wagons.

Transporting visitors such as vets onto farms in farmers’ own vehicles would be a smart call.

“It’s up to each individual farm to ensure their biosecurity.

“You have the right to refuse anyone coming on your property if they are not complying or appear a risk,” O’Sullivan said.

MORE:

Information is available on the DairyNZ, Beef + Lamb NZ, Federated Farmers and MPI websites.

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 7, 2017

7

Dairy farmers still fighting debt Richard Rennie richard.rennie@nzx.com WAIKATO and Bay of Plenty dairy farmers face a “back to the future” slog into 2020 to get back to their 2015-16 season when dairy prices took a tumble.

The latest AgFirst financial survey for Waikato-Bay of Plenty dairy farmers was released last week.

Survey compiler Phil Journeaux said the model farm used in the budget incurred an additional $126,560 of term debt, or almost $1/kg of milksolids in 2015-16 to cover the hit the farm took when the payout slumped to $3.90/kg MS that season.

“This loan amount was almost an extra $1/kg milksolids and some debt repayment was made in 2016-17 and is budgeted again for 2017-18.

“Assuming a similar level of annual debt repayment and everything else remaining the same, it will take until 2019-20 season to clear this debt and get back to their 2015-16 debt position.”

For many farmers that extra debt load came at least in part through the Fonterra loan offered to shareholders in 2015.

Taken up by about 80% of suppliers, that loan had to be repaid once the payout exceeded $6/kg MS, which would fall in October as the advance payout rose.

The model farm used by AgFirst had a Fonterra loan of $31,500 with $18,000 budgeted to be repaid this year and the rest in the 2018-19 season.

The total borrowed equated to 15c/kg MS in the AgFirst budget.

The Fonterra loan was part of the extra $126,000 debt incurred

SENTIMENT: The upside this year is a sense of quiet confidence in the dairy sector, AgFirst consultant Phil Journeaux says.

to tide the farm over the payout slump.

The impact of such compulsory loan repayments and heavy capital expenditure to meet compliance demands played heavily on farm budgets for this and next season.

“We have about $50,000 in the budget for capital expenditure but of that about $30,000 will be committed to installing snap chilling equipment to meet the new milk cooling regulations that come in this year.”

Farmers had also on average incurred about $8000-$10,000 on capital expenditure in installing compulsory bobby calf holding pens, with that requirement kicking in on August 1.

“So that means we only have about $10,000 spare for other capital expenditure. It is not a lot given the low levels we have also had in the past couple of seasons.”

Journeaux agreed dairy farms were facing some mounting bills for deferred repairs and maintenance that was pushing equipment and facilities to their limits.

“What we are seeing is the expenditure on new equipment and machinery is below the depreciation rate, with little spare to fill in.”

Many farmers also faced the prospect of ongoing environmental compliance that would make further capital investment demands.

Last year Journeaux expressed his concern over the sustainability of the lowered farm working expenses.

For 2016-17 they were $3.81/ kg MS and for 2017-18 were estimated at a similar level, $3.77/ kg MS. Given the wear and tear dairy operations put on equipment,

Where the money went

his concern remained over the sustainability of that cost level.

He estimated a sustainable farm working expense figure was probably $4/kg MS. “On our model farm we are only working on about 80% of the ideal fertiliser application going on and many farms are still operating at sub-maintenance spending in areas like repairs and maintenance.”

The upside of the increase in debt to tide farms over the slump had been a drop in total debtservicing costs as interest rates continued to remain low and competitive.

The survey also noted some shifts around farms’ key cost centres.

Over the 2016-17 season casual wages surged by 27% and re-grassing costs were up 40% as many farmers were forced to undersow pastures damaged by appalling weather over spring.

A notable cost shift over the past four seasons had been the drop in feed costs as a proportion of farm working expenses, from 35% in 2013-14 to 28% for 2016-17.

Total farm working expenses were going to be a more manageable 57% of total farm income this season, compared to 65% last season and a massive 95% in 2015-16.

For this season the survey expected casual wages to fall back to more normal levels while total feed expenditure was estimated to rise by 5% given wet conditions and low feed levels heading into winter.

An appreciable lowering of farm overdrafts should also see debt servicing drop by 4%.

Journeaux said the upside was a sense of quiet confidence held by farmers about payout prospects, reinforced by the July 28 announcement that pushed Fonterra’s payout to $6.75/kg MS. “So people are starting to see some light there and a pathway to a better position.”

However, Journeaux also cautioned farmers’ expenditure decisions on bigger ticket items or debt repayment were likely to be delayed until autumn when they had a clearer signal on Fonterra’s dividend payment.

Rural optimism grows DAIRY farmers might be preoccupied with catching up on the past three low income years but that has not dulled overall farmer confidence, which appears to be at a threeyear high.

The Federated Farmers’ Farm Confidence Survey that interviewed 800 farmers nationally indicated dairy and arable farmers were feeling more optimistic than in the January survey.

It found the number of farms making a profit had doubled to 55% on a year ago. That reflected continuing strong red meat prices, solid sheep returns and the continuing lift in dairy payout prospects as recently as late July when Fonterra’s payout prediction rose 25c/kg milksolids to $6.75/kg MS. There had been a significant drop in the number of farmers expecting a loss this farming year, with that figure only 9.6%, compared to a massive 42.5% a year ago.

Predictably, that applied particularly to dairy farmers and

farms in Auckland-Northland and Otago-Southland.

On the back of improved returns a third expected farm production to increase this year.

As total agricultural debt crept up in excess of $40 billion, with the Reserve Bank having already signalled its concern over that level, a third of farmers were also intending to retire some debt in the coming year.

However, the survey also highlighted farmers’ concerns over growing compliance and regulation costs, now put at number the one concern ahead of farmgate and commodity prices.

Public perception of farming was third on the list of concerns, followed by environmental concerns.

Federated Farmers economics and trade spokesman Andrew Hoggard said the survey showed farmers were putting regulation and compliance costs as their highest priority, with economy and business environment second.

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8

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 7, 2017

Which way will dairy prices go?

Hugh Stringleman hugh.stringleman@nzx.com WORLD market prices for butter, anhydrous milk fat and cheddar fell by 5% in the latest Global Dairy Trade auction but remained historically high, leading commentators to call a small market correction.

The GDT index fell a modest 1.6% because the milk fat product price declines were balanced by rises for whole milk powder and butter milk powder.

For the past three months, May to July, the GDT index remained steady around 1080.

Indeed, for most of the past nine months the index was in the range 950 to 1100, which indicated a period of relative stability compared with the more usual market price volatility.

But among the eight products that made up the index, butter had risen 40%, AMF was up 35%, cheddar up 25% and WMP up 14% while skim milk powder had fallen by 10%.

GOING UP: ASB economist Nathan Penny expects another surge in butter prices lifting all dairy prices.

Fonterra said there had been a fundamental market shift in favour of milk fat products which, along with the rise in WMP prices, recently boosted the forecast New

dairy prices more generally.

Rabobank dairy analyst Emma Higgins said the auction price fall didn’t change the popularity of milk fat products right now.

“However, this latest GDT result highlights the risk we have been signalling for some time that to protect margins some end users will try to substitute dairy fats (particularly AMF) for other cheaper fats such as vegetable oils.”

AgriHQ dairy analyst Amy Castleton said the payout predictor rose five cents to $6.73/ kg MS after the GDT event and the futures market reaction.

Prices for WMP contracts had risen over the past two weeks on the NZX Dairy Derivatives market.

But the forward curve was shallow and the futures price for October at US$3235/tonne was only $95 above the GDT Octoberdelivery auction price.

The September 2018 milk price futures contract lifted to $6.73 last week, just two cents behind Fonterra’s $6.75 forecast.

volumes would exceed market expectations, which would put downward pressure on dairy prices over the coming year.

The contributing factors would be a return to at least normal spring peak production in NZ, herd rebuilding, more use of palm kernel and good soil moisture recharge.

European dairy farmers had a renewed incentive to produce more milk, with the possible exception of The Netherlands, where it was predicted environment standards would force farmers to reduce their herd sizes.

US dairy farmers were also increasing production as household incomes rose and the demand for butter grew.

“Butter prices took a breather (in the latest GDT) but we anticipate they may surge again over coming months,” ASB rural economist Nathan Penny said.

He called the 5% price fall a pit stop for butter and he expected a further surge was likely to lift all

Zealand milk price.

It had also repeatedly said supply and demand were in balance, which was shorthand for saying milk supplies in the major exporters, NZ, Europe, the United States and Australia, were not growing.

Since its launch in 2009, the GDT market had reflected the rapid and large swings in supply and demand, often caused by milk production surges or droughtinduced shortages.

As the largest exporter, the beginning of the NZ season was a time when forecasts of milk production had considerable influence on the markets.

For the new season Fonterra forecast a 3% increase but that was after two consecutive seasons of 3% falls.

Chairman John Wilson said milk volume was not growing dramatically anywhere in the world.

However, Westpac senior economist Michael Gordon said there was a stronger chance milk

Westland saves $70m, ups forecast Hugh Stringleman hugh.stringleman@nzx.com WESTLAND Milk Products has made a net payout forecast of $6.40 to $6.80/kg of milksolids for the 2017-18 season, which, at the upper end, matches that of industry leader Fonterra.

The forecast signalled an end to a lean two seasons for the 400 supply-farm families on the West Coast and in Canterbury.

That lean patch was addressed with a substantial restructuring of the processing co-operative.

While not yet confirmed, last season Westland paid $5.50 to $5.70 less a 20c retention compared with Fonterra’s current expectation of $6.15,

plus an expected 40c/share dividend.

The previous season Westland paid $3.88 after dipping into reserves but still couldn’t match Fonterra’s $3.90 plus 40c.

Westland retained a traditional supply-share co-operative and did not pay dividends but did make retentions to help with capital expenditure.

In 2016 the previous chief executive Rod Quin resigned and chairman Matt O’Regan retired after seven years in the role.

New general manager Toni Brendish and her new chairman Pete Morrison said the return to an industry-competitive forecast came after 10 months of analysis and systems change.

Brendish said the company had achieved $70 million of savings and efficiencies over that period, which enabled the board to forecast a more competitive payout.

The size of Westland, at about 3% of New Zealand’s milk production, and its facilities gave it the capability to be more flexible because it could segregate its processing systems to offer customers highermargin, specialty products.

“There are additional costs in becoming a flexible, niche market producer,” Brendish said.

“But by offering such a service we can command a price premium that will not only outweigh the additional costs

but deliver our shareholders a higher, more sustainable return in what will always be a highly volatile market.

“Westland, quite simply, cannot afford to remain almost wholly reliant on bulk commodities.

“It must utilise its heritage of place, environment and intergenerational care to offer differentiated products designed for and with its customers.”

Brendish unveiled a new company purpose, Nourishment Made Beautifully for Generations.

She followed that up with a strategy, To offer differentiated products that leverage our heritage and location”.

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DEFINING: Westland Milk Products general manager Toni Brendish has introduced a new company purpose and strategy.

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Together, Creating the Best Soil and Feed on Earth

News

10 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 7, 2017

Fed Farmers publishes its wish-list FEDERATED Farmers wants political parties to take a targeted catchment approach when addressing water quality, where sustainable economic growth can be achieved alongside environmental goals.

The federation’s 2017 election manifesto said it supported catchment partnerships that co-ordinated community, council and scientific efforts.

Taxes and region-wide rates could be used to raise the funds, addressing the hot spots first.

Federated Farmers drew attention to the already considerable spending by farmers on environmental improvements.

More than $1 billion had been spent by dairy farmers over the past five years, mainly on effluent systems and riparian retirements.

Sheep and beef farmers had been the main contributors to QEII covenants, protecting private land for conservation at a real and opportunity cost between $1.2b and $1.4b.

The federation also called for ongoing support for irrigation schemes because they had the potential to provide large

2017

election economic, environmental and social benefits to regional communities.

It also encouraged all political parties to have another tilt at the Resource Management Act windmill to address the imbalance in the achievement of the Act’s sustainability objectives.

“Explicit references to economic outcomes, property rights and the protection of the rural production resource need to be factored into reviews to improve the RMA by including these as matters of national importance.”

The federation also called for greater focus on and investment in biosecurity measures, following several high-profile incursions.

The risk was growing because

UNWANTED: Wild rabbits are still pests that need political resolve to tackle, Federated Farmers says.

Inadequate response to incursions creates significant and unnecessary burdens on future generations.

Federated Farmers manifesto of increasing tourist numbers and the country needed to pursue strong, science-based solutions backed by strict, enforceable laws that led to significant penalties.

“Inadequate response to

incursions creates significant and unnecessary burdens on future generations that are faced with costly and long-term management of pests and diseases.”

Swift response might be costly in the short term but it avoided the substantial costs of long-term pest management.

As examples of exotic pests the federation named wildling pines and rabbits and it encouraged all political parties to support initiatives to reduce their impact and ensure a full range of tools was available.

Federated Farmers also called for: • Continued efforts to realise the benefits of free trade;

• The building of a science investment programme that delivered on economic and environmental goals; • A continuation of a pragmatic approach to climate change; • Increased efforts to assist with skill shortages on farms; • Improved educational opportunities for remote rural communities including an increase in boarding bursaries; • Increased effort to improve telecommunications connectivity in rural areas; • Fairer investment in tourismrelated infrastructure; • Better rural policing and; • Stronger deterrents for livestock theft.

Opposition parties make hay from disease Hugh Stringleman hugh.stringleman@nzx.com

rust had advanced the doomsday clock.

That clock would reach midnight when foot and mouth THE timing of the Mycoplasma disease (FMD) was found, which bovis disease outbreak in South would devastate NZ’s primary Canterbury has given opposition industries, he said. parties ammunition to fire at The visitor levy proposed by the Government in the election the Government in the Budget campaign. was only going to replace some of Spokesmen for Labour, the funding for biosecurity from NZ First and the Green Party central Government funding and hammered what they called the not be additional.

Prosser said he was very disappointed in that initially promising proposal.

Labour’s primary industries spokesman and PPCS member Damien O’Connor said the most Excellence through science important issue in the sector was biosecurity, as Primary Industries Minister Nathan Guy repeatedly said.

Yet the Government’s misguided reform of government departments and services that resulted in one large MPI had produced resignations of staff members and the dumbing down of expertise and passion.

O’Connor said dairy farmers near the van Leeuwen Dairy Group farms Contact us to discuss further: had told him they had not Ph: Stephen – 020 412 22 858 or Bronwyn – 027 6666 863 been contacted by MPI or Email: info@manukafarmingnz.co.nz told what to do to stop the disease spreading. under-resourcing of the Ministry for Primary Industries and subsequent biosecurity failures.

They spoke in the estimates debate on Vote Primary Sector in Parliament.

Richard Prosser, NZ First primary industries spokesman and member of the Primary Production Select Committee, said the recent incursions of Mycoplasma bovis and myrtle

Specialists in Manuka Seedlings for High Grade Manuka Honey and Plantation Manuka experts www.manukafarmingnz.co.nz

2017

election

BAD SIGNS: Recent biosecurity breaches advanced the Doomsday Clock, NZ First primary industries spokesman Richard Prosser says.

“This outbreak may yet cost us hundreds of millions of dollars.

“Some time back the AuditorGeneral said MPI couldn’t manage an outbreak of FMD so there was an upgrade, we were told, of MPI capability.

“Now we have an outbreak of Mycoplasma bovis and MPI quickly says we may never know how it came in.

“That is an acceptance of failure

and I don’t accept that.”

O’Connor said there had not been enough increased funding of biosecurity to meet the increasing trade and therefore the increasing risks from a number of diseases elsewhere in the world.

Steffan Browning, Green Party PPSC member, said MPI suggested Mycoplasma bovis would not be contained, which was what it said about myrtle rust “This biosecurity failure should be treated like FMD – nail it and get rid of it.”

In reply Guy listed the initiatives in biosecurity funded by the Budget increase to $248 million expenditure in that category.

He also criticised Labour and NZ First for not supporting the border levy when it was implemented by Parliament, saying that as tourist numbers grew the levy would future-proof biosecurity funding.

The total primary sector appropriation for 2017-18 was $991m, of which $720m was committed to Primary Growth Partnerships.

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 7, 2017

11

Nats say rural NZ is in good heart Hugh Stringleman hugh.stringleman@nzx.com THE National Party’s policy priorities for rural and regional New Zealand in this year’s election will emphasise science and innovation, biosecurity, trade agreements and supporting rural communities.

The primary sector was in very good heart, with the exception of prices for strong wool, National’s Rangitikei MP Ian McKelvie said.

Regional towns were also enjoying economic growth after several years of depressed trade and declining populations and services.

McKelvie chairs the Primary Production Select Committee of nine MPs, five of whom are from National, two from Labour and one each from the Greens and NZ First.

Three of those members would retire from Parliament at the election, deputy chairman Todd Barclay and Chester Borrows from National and Steffan Browning from the Greens.

The biggest item of expenditure in the 2017-18 appropriation bill for Vote Primary Sector was $720 million for the Primary Growth Partnership programme.

McKelvie said results were starting to flow from the PGP projects with forestry and meat industries and while other projects might be slow to succeed, that was the nature of research.

Biosecurity was the next biggest expenditure item and that vital area had received a considerable boost in funding in recent years and in years to come.

Primary Industries Minister Nathan Guy told Parliament a boost of $18.4m of operating funding over four years in this year’s Budget would further strengthen the system and protect borders.

Part of the new funding would be used to manage biosecurity risk offshore so fewer pests and diseases made it here.

The funding would also be used to accelerate the development of new tools to detect and eradicate pests, including sonar scanning of vessel hulls and automatic acoustic traps for use in pest surveillance and eradication.

“This follows the employment in recent times

by MPI of 50 new biosecurity staff and 20 extra biosecurity detector dog teams along with new x-ray scanning machines, including mobile units that can be moved around the country,” Guy said.

The Budget had also increased grant funding for irrigation investments, $26.7m over three years, plus $63m in capital funding.

“A reliable water supply for growers and farmers has major potential to boost economic growth, creating jobs and exports in the regions.

“At the same time these schemes can deliver real environmental benefits by maintaining river flows and recharging groundwater aquifers.”

Guy emphasised water storage for potential schemes on the east coast of the South Island and in Northland.

A number of potential projects were likely to need investment, including the Waimea community dam near Nelson, Flaxbourne Community Water Project, Hunter Downs Water and the Hurunui water project.

They would support a wide variety of land uses including horticulture, sheep, beef and arable.

The water could also be used for urban supply and improving environmental, recreational and social outcomes.

National had also set an ambitious target of having 90% of goods exports covered by free-trade agreements by 2030.

“Other parties are constantly opposing trade agreements, which is the last thing our rural communities need,” Guy said.

National was also standing on its already announced policies for supporting rural communities, McKelvie said.

They included the Rural Broadband Initiative, more than $500m more for police staffing, increasing expenditure on health and education and the infrastructure spending on roads and rail.

“Rural people are increasingly part of “smart agriculture” and good connectivity is essential to gain all the benefits of remote access, e-commerce and the internet,” he said.

To ensure that the economy kept its momentum and that environmental care was managed sustainably, without destroying farm profitability, rural and regional electorates needed to return National to power this election.

BACKING: National is standing on its policies supporting rural communities, Primary Production Select Committee chairman and Rangitikei MP Ian McKelvie says.

2017

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NEXT WEEK:

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THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 7, 2017

13

Govt shoots meat industry in foot THE meat industry hopes it can achieve a tailored deal with the Government covering the employment of overseas Muslim workers for the halal kill of livestock.

It was already relieved it had been spared a Government plan covering industry in general requiring a stand-down year after a three-year period of annual working visas for workers.

The industry required overseas workers to make up more than half the Muslim slaughterers needed to meet halal requirements in meat plants and more than 75% of those on the scheme had now been coming to New Zealand for more than three years, Meat Industry Association chief executive Tim Ritchie said.

If they were required to stand-down for a year that would have set a major recruitment and training difficulty for the industry, given the physical, language and integration issues involved.

Most overseas halal workers came from Fiji.

The annual recruitment visa process was very bureaucratic, covering both domestic and overseas workers, taking up a lot of time and resources, Ritchie said.

MIA spent about eight months a year, starting in December, working on it on behalf of the industry.

“We’ve been doing it for 17 years and every year it becomes more protracted and difficult.”

The Government is now imposing a general three-year maximum period before a standdown year on the annual visa system as a way of protecting domestic employment but in reaction to submissions from industry groups concerned about a shortage of workers agreed to some sector and regional dispensations and they covered the meat industry.

Meat companies needed about 240 halal slaughterers every year and got about 100 from NZ after quite a lengthy period of advertising in newspapers and at mosques.

The industry’s strong preference was to employ NZ resident workers but there was a sustained shortfall every year with most Muslims living in the major cities and not many being attracted to rural areas where most processing plant were based, Ritchie said.

Every year MIA had to put a new case to Immigration NZ to enable overseas recruitment.

There was no special immigration programme to enable the industry to easily fill the shortfall and the current generic scheme just made it more difficult, he said.

Ideally, the industry would like the Government to put halal slaughterers on the long-term skill shortage list.

“The system we have is a bit like shooting ourselves in the foot,’’ Ritchie said.

“The Government talks about the need to increase exports and has regulations governing how the industry is run to meet halal requirements but then we make it hard to get the workers for the trade.

“We think we’ll get something better in the end but there’s nothing agreed or negotiated and we are starting on the back foot.”

The halal slaughter system was a key part of the NZ meat export trade. Only about 1% of industry workers were halal certified but 90% of animals were processed as halal.

In 2016 about 25% of total meat exports, worth about $1.5 billion, were halal certified, by agencies independent of the meat companies, including the Federation of Islamic Associations of NZ. Muslim countries required livestock to be killed by halal slaughterers. The requirement did not apply to downstream processes.

Other countries had Muslim customers who could request halal certification. China was an example and its 23 million Muslims were NZ’s biggest halal market.

Have your say on this issue: farmersweekly.co.nz

Growing market NZ exports of halal-certified red meat to Muslim and non-Muslim markets (for years ended September 30) 250,000

Volume (tonnes)

Alan Williams alan.williams@nzx.com

2000,000 150,000 100,000 50,000

23% 77%

26% 74%

36%

25% 75%

38%

64%

37% 39%

63%

41%

61%

59%

43%

48%

57%

52%

62%

53% 61%

47%

39%

65%

62%

35%

38%

2015

2016

0 Compiled by MIA from MIA & NZMB data

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2004

2005

2006

2007

2008

2009

Halal certified exports to Muslim markets

2010

2011

2012

2013

2014

Halal certified exports to non-Muslim markets

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News

14 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 7, 2017

Experts slam Govt’s ETS review Richard Rennie richard.rennie@nzx.com ONLY a day before Parliamentary Commissioner for the Environment Dr Jan Wright released her recommendations for achieving New Zealand’s emissions reduction goals, the Government announced changes to the Emissions Trading Scheme (ETS).

But while Wright’s report received a general thumbs up from political and primary industry groups, the ETS changes were labelled as a “nail in the coffin” for the scheme by Professor Euan Mason at Canterbury University’s school of forestry.

Climate Change Minister Paula Bennett revealed four key proposals to include in the ETS over coming years.

They were to introduce the auctioning of carbon credit units while limiting participants’ use of the controversial overseas units when the ETS re-opened to international markets.

The other two were to develop a different price ceiling to the $25 a unit fixed price option now in play and to co-ordinate decisions on the supply settings in the ETS over a rolling five-year period.

The Government maintained its stance on agriculture by not including it in the review.

Mason said the review was deeply disappointing with no apparent interest by the Government in implementing more intensive forestry to address NZ’s mounting carbon emissions.

“We seem to have two processes

It’s very disappointing. I had high hopes it would be substantial.

Professor Euan Mason Canterbury University

FLEXIBLE: The review offers potential for changes in the Emissions Trade Scheme’s design, Dr Adrian Macey says.

at play here. We have this focus on offset credits being sourced to use against rising emissions versus our actual emission levels and the need to use a sector like forestry to help curb them.

“I think the rest of the world will eventually identify that we are completely inadequate. There is a risk there NZ will get slammed for this, for not actually reducing, rather than trying to just offset.”

It remained unclear where exactly the Government was going to source its offset credits from, either creating them from

DOUBLE UP: New Zealand seems to have two process at play in reducing emissions, Professor Euan Mason says.

thin air or sourcing from overseas.

“The Government may scour the world for offset credits which are cheaper than sequestered carbon credits through forestry.

Whether created or sourced offshore they make it difficult for NZ’s forestry sector to participate in solving the problem.”

Mason said NZ’s ability to show a genuine reduction in emissions would do nothing for its international reputation.

“It’s very disappointing. I had high hopes it would be substantial. If we continue to see

our emissions rise the ETS will be dropped when we could have had a worthwhile scheme.”

Victoria University senior governance and policy associate Dr Adrian Macey said the announcement offered some potential for changes in the ETS design.

“There is one major change signalled – a future limitation of use of international markets (for credits).”

The past allowance of such credits led to the introduction of a huge amount of “hot air” into

NZ’s ETS through buying dubious credits from the likes of Ukraine, which were not tied to genuine carbon reduction efforts.

“Linked to that is the signal (the) Government envisages intervening to ensure the NZ carbon price is aligned with our climate change targets. Previously the doctrine was the international price of carbon would be appropriate in NZ.” Macey said the review paper had been unnecessarily redacted to suppress reasons why it was hard to link the NZ ETS with others and also hid which countries NZ was engaging with over possible linking for either ETS schemes or for offset credits.

Macey has previously expressed his concern about the cost of buying offshore credits, which might cost $1.4 billion a year for 10 years and were not expressed in Crown accounts.

NZ differed from every other country signing the Paris Accord in that it relied on offshore credits to soak up carbon emissions.

Other countries were instead setting domestic targets to reduce carbon emissions, then using credits to soak up the rest.

Climate change needs new body Richard Rennie richard.rennie@nzx.com SOME reserved plaudits for the Government’s efforts after the Paris Accord lie within the Parliamentary Commissioner for the Environment’s latest report on the country’s progress in managing carbon emissions.

The report also managed to achieve a rare feat in the fraught area of carbon emissions with widespread support on the record across the primary industry and political sectors.

Dr Jan Wright’s recommendations included a United Kingdom style committee for climate change and wider apolitical, cross-party work on achieving this country’s climate change goals.

She also pointed to the disparities in New Zealand’s ballooning emissions between 1990 and 2015 that had increased by 65%, compared to the United Kingdom where output declined 38%.

And Wright expressed her fear NZ would have no show of achieving the targets signed up to in Paris, reducing net emissions of harmful gases to 57.7 million tonnes of carbon dioxide equivalent a year and to 32.3m

tonnes by 2050.

The risk for NZ failing to achieve those targets was that the country would have to buy offshore carbon credits to make up the difference.

The exposure, though, was twofold.

The international market for such credits had not yet formed and the cost of the credits could prove prohibitively high, providing there were countries prepared to sell them.

Estimates had been the credits could cost $14 billion over the next 10 years.

Wright called on all political parties to take a unified approach to dealing with the challenge, with time shortening and the gap widening between targeted emissions and actual emissions.

She acknowledged the Government has made some progress since Paris, including a cross-party working group, a Productivity Commission inquiry into low-carbon economy opportunities and the release of an energy conservation strategy from 2017-22.

The suggestion NZ took a feather from Britain’s approach gained qualified support from Federated Farmers.

Climate change spokesman

Andrew Hoggard said a lot of the success of the commission would depend on the talent and competencies of those running it.

“Their decisions need to be apolitical, well above the political solutions offered to New Zealanders in any given week,” he said.

Climate Change Minister Paula Bennett said it might be worth looking at an independent climate change body in future.

However, she also acknowledged getting cross-party consensus was far away during an election period.

The independent commission in the UK was also reinforced by a Climate Change Act, with fiveyear targets set in it.

Wright said NZ’s climate change policy tended to be spread across different government agencies and was crowded out by other priorities, with no indication of how much different policies would actually contribute to a lowering of carbon emissions.

However, she also hoped money provided in the last Budget for costed, tested and consulted policy options to reduce emissions would help remedy that.

MAYBE: Climate Change Minister Paula Bennett says an independent climate change commission might be worth considering.

When comparing how far the UK had fallen in emissions against NZ’s surge, Wright questioned if that comparison was fair. This country’s significantly faster population growth and predominance of biological livestock emissions as a percentage provided very different gas profiles.

Agriculture accounted for 49% of NZ’s losses compared to only 8% in the UK and electricity generation losses here are only 5% compared to 24% in the UK.

Wright proposed carbon budgets as stepping stones to lowering NZ’s emissions.

They would lay out the amount of carbon dioxide that could be emitted in a set time.

She recommends the budgets be set by objective analysis from the climate change commission, with the Government required to explain should it decide not to accept those levels.

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 7, 2017

17

CPW counters Greenpeace protest Tim Fulton GREENPEACE protestors had the chains but Central Plains Water (CPW) did the whipping after an icy protest at the irrigation company’s worksite.

Members of the worldwide environmental group last Tuesday chained themselves to the inside of water pipes at Hororata in central Canterbury to protest against Government support for water storage schemes.

Greenpeace said in a statement that evening its activists “have been locked and chained to machinery, in trenches and inside pipes on the Canterbury plains near Hororata in freezing cold conditions”.

“Activists left mid evening as temperatures dropped to near zero,” it said.

Spokeswoman Gen Toop said bringing construction to a halt had drawn “nationwide attention to the link between big irrigation schemes and contaminated rivers from intensive dairying”.

CPW was one of many proposed schemes across New Zealand underwritten by the Government’s $480 million Crown Irrigation Fund, she said.

The Hororata protest was “just a start here in Canterbury”.

CPW chief executive Derek Crombie said CPW was privatelyfunded.

“Greenpeace, in using emotive and false information, has once again demonstrated their lack of understanding of the Te Waihora (Lake Ellesmere) catchment and the role of Central Plains Water Scheme in restoring it,” he said in a statement of his own.

CPW had received a loan from the state-controlled fund, Crown Irrigation, but it would be repaid with interest.

Crombie refuted Greenpeace claims the partly-completed CPW scheme would trigger more damaging dairying on the Canterbury Plains.

UNDER WAY: Construction of the second stage of the Central Plains Water scheme has started.

Ultimately, this will be a great opportunity for aquifer recharge.

Derek Crombie Central Plains Water By taking water from the Rakaia River in a controlled way, CPW was protecting the aquifers because farmers would no longer have to rely on wells and artesian supplies.

“Ultimately, this will be a great opportunity for aquifer recharge.”

Crombie said Stage 1 irrigation users had completed a second successful irrigation season and the scheme was showing some exciting benefits.

For example, existing groundwater irrigators had not abstracted 75% of their groundwater allocation during the 2015, 16 and 17 seasons, leaving 80 million cubic metres of water in the aquifers.

The completed Stage 1 covered 23,000ha of irrigable area and consisted of a 17km headrace canal that started at the Rakaia River intake area and stopped at Leaches Road.

Photo: Godfrey Judd

Stage 2 construction had stated between the Selwyn and Waimakariri Rivers, providing 20,000ha with pressurised water to the farmgate.

Separately, work was under way on the Sheffield Water Scheme covering 4300ha, supplying about 30 farms with irrigation and stock water. Sheffield might also supply township water.

Central Plains Water was established in mid-2003 and was responsible for the scheme construction and scheme operations. The Central Plains Water Trust was settled by the Christchurch City Council and

Cash breakdown • Total project cost: $450m • Shareholder equity: $90m • Crown Irrigation loan: $12m drawn from $68m approved • Bank debit: $292m

Selwyn District Council in May 2000 and held the consents.

Three hundred CPW farmers provided the funding for the $450m scheme with $90m of farmer equity, the balance funded by debt to be repaid over 40 years.

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News

18 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 7, 2017

Quality of wool must improve Alan Williams alan.williams@nzx.com HIGH-MICRON, low-quality wool has to be bred out of the New Zealand sheep flock if the industry is to achieve sustainable, strong prices, independent testers Eugene O’Sullivan and Don Morrison say.

The goal should be to produce a crossbred wool clip desirable for use in making outer apparel garments to attract high-value world customers.

They advocated the testing of all hogget wool then the breeding out of stock of poor wools on stud farms, a process that would take five generations over seven or eight years to complete.

It was not a short-term fix but O’Sullivan compared it to the 20-year progress in perfecting meat quality in the lamb crop.

Too many poor wools were being blended and sold into the

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market and providing a mixed quality base, even for carpet manufacturing.

“Everything is being thrown in, fine to high micron, lambs’ wool and even slipe wool and that’s why you see fibre lifting out of carpet when you walk on it,” Morrison said.

“That’s with carpet and you haven’t got a hope in the apparel market.”

The core of their argument was that the crimp or curvature of wool – the ability to be stretched and bounce back to its natural position, with the second part being most important – should be the key measure of quality.

The higher the curvature, the more memory the wool had to return to its natural state.

With that in a woven or knitted garment also came the ability to trap warm air next to the skin and “wick away” moisture from the skin – crucial for apparel manufacturing.

For the last 47 years the only real measure for crossbred wool had been the micron (or bulk) reading from an “airflow” test, which measured nothing else.

O’Sullivan said the testing read only up to a 39-micron level but there was a lot of wool in the 40s and 50s micron levels being produced in NZ. “It means you’ve got a lot of 40-plus micron wool being marketed as below 40 because that’s what a test-house piece of paper says,” Morrison said.

For a fully profitable wool industry they would seek a micron cap at 38 or 39 at most but ideally in the 33 to 35 range.

“The end goal would be to have all rams bred below that micron ceiling because they’re the biggest wool influence as one ram can leave 300 progeny in a single season,” O’Sullivan said.

The micron measure of bulk was important, providing a reading of weight in yarn and garments but they said the testing needed to be more accurate than the current system.

Their FibreScan technology wool testing system measured wool characteristics along the length of the fibre to produce a full profile covering the genetic base, the livestock management and the onfarm growing conditions.

Former Timaru farmer O’Sullivan owned Pastoral Measurements, the company operating the portable FibreScan unit, and Christchurch-based former farmer and wool classer Morrison did the testing in the machine onfarm.

They also worked with Lincoln University animal genetics professor Jon Hickford.

O’Sullivan set up the business with his own mobile testing unit in the late 1990s when he retired from farming and “was looking for something

to do”. Morrison joined him in 1998.

The FibreScan 1100 unit was introduced in 2011 and was the third technology they had used.

It superseded the others in detail by a large amount.

While their work had mainly been with finer Merino wool, O’Sullivan and Morrison said they had now done sufficient volumes of crossbred wool to show a big deterioration in quality.

Wool exporters’ and brokers’ focus was on moving wool volumes on commodity trading but sheep farmers’ livelihoods depended on improving the quality.

There might be a trade-off required for farmers as the reduction in wool quality appeared to coincide with the breeding focus on lamb meat since the 1990s.

Everything is being thrown in, fine to high micron, lambs’ wool and even slipe wool and that’s why you see fibre lifting out of carpet when you walk on it.

Don Morrison Wool tester Asked whether a concentration on wool quality could go side by side with maintaining the meat excellence that had been achieved, O’Sullivan said that “had to be found-out”.

But on the wool side of the ledger, crossbred fleece had to be moved up the chain from carpets to outer-apparel “or we remain in the bargainbasement”.

FibreScan was designed and developed for O’Sullivan

by Christchurch software company Intranel. They were each one-third shareholders in the technology but the process needed a $300,000 investment by the late Michael Mellon to be developed.

Mellon, who died in early June, and owned the other onethird share, was a passionate crusader for the NZ wool industry and South Island farm businesses, after years lecturing in marketing at Lincoln University and owning a sheep farm at Geraldine.

FibreScan could make many thousands of individual measurements along the length of the wool fibre in a 15-second reading then quantify more than 12 key fibre characteristics, including curvature and micron and the overall fibre profile, such as identifying the potential for it to corkscrew out of shape and out of the yarn.

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 7, 2017

19

Flood relief for Otago farmers Neal Wallace neal.wallace@nzx.com OTAGO farmers still swamped by floodwaters are now eligible for assistance with Primary Industries Minister Nathan Guy declaring a medium scale adverse event in the area.

An estimated 20 dairy farms on the Taieri Plains south of Dunedin were still under water 10 days after the region received its most concentrated deluge of rain in nearly 40 years.

In addition, the Rural Support Trust has announced funding for farmers to receive feed budgeting advice as they grapple with calving and flooded paddocks.

Guy, also Civil Defence Minister, visited Mike Lord’s flooded farm on Tuesday, his second visit to the region in less than two weeks, and said the declaration triggered extra Government support.

That included funding for the Rural Support Trust, access to rural support payments, taxation flexibility, the funding of a crisis co-ordinator and access to technical extension

support for advice on aspects such as regrassing.

Task Force Green teams would also be made available for farmers as had Fonterra staff from the Stirling and Edendale dairy factories.

The call was also made for farmers to look out for each other and to seek help if they or their neighbours were struggling to deal with the stress.

“The most important thing in these situations is to keep everyone in one piece,” Otago Federated Farmers president Phill Hunt said.

The Otago Regional Council also reiterated it was taking a pragmatic approach to compliance in the flood zone, saying that while it was not a licence for farmers to pollute, it realised these were exceptional circumstances.

Lord said while the scheme appeared to have worked as intended, floodwaters from further up the plain had progressively drained onto his and neighbouring farms.

His dairy shed was flooded three days after the rain had stopped and the ponding was so bad he was sending his

WET FEED: Otago Federated Farmers president Phill Hunt, Taieri dairy farmer Mike Lord and Primary Industries Minister Nathan Guy inspect a flooded paddock on Lord’s Otago dairy farm.

cows away to be milked.

Neighbour Noelene Hildred and her husband Shane had started building a pad to try to feed and keep their herd together, ordering 25 truckloads of rock.

Early indications from their insurers suggested they faced a new battle over definitions of what constituted a disruption to business and loss of animal feed.

Hildred and Lord said a long-term battle loomed with the regional council over flood protection rating.

Lord said landowners, including urban people, further up the plain benefited from having their floodwater drain quickly but it was at the expense of those lower down the plain, which was not reflected in the rates paid.

US dumps border tax notion Nigel Stirling nigel.g.stirling@gmail.com THE United States has formally dropped a proposal to impose a 20% tax on all imports into the country.

The so-called border adjustment tax was floated by Congressional Republicans as a means of paying for corporate tax cuts and was backed at various times by President Donald Trump.

By taxing imports but excluding locally made products it was touted by Republicans as helping Trump achieve his pledge to get manufacturing jobs back to the US. However, it did not make it into the White House’s outline tax reform programme in May after a backlash from US retailers like Walmart, concerned it would increase their costs and dent profits.

American agricultural groups, including the US Cattlemen’s Association, also opposed the tax amid fears it would provoke the US’s trading partners to retaliate

with tariffs against US beef exports.

In a joint statement from the Trump White House and Congressional Republicans the idea was formally dropped.

“While we have debated the pro-growth benefits of border adjustability we appreciate that there are many unknowns associated with it and have decided to set this policy aside in order to advance tax reform.”

Fonterra’s representative in Washington DC, James McVitty, said the border tax dreamed up by the Republican leadership in the House of Representatives did not enjoy the same support in the US Senate and would have struggled to have been passed.

“It had created a big group of opposition from the business community and in particular the major retailers in the US and even manufacturing companies saying ‘hang on a minute, this could increase costs in our supply chain and we would have to pass that

on to consumers’.”

Even if it had made it into law McVitty believed the border tax would have been challenged at the World Trade Organisation by the US’s trading partners.

“Everybody was concerned in the trade community about its legality so it was probably almost certain to be challenged in the WTO. “And in a worst-case scenario the US could have ignored that decision and it would have undermined the WTO.” McVitty said the tax would by some estimates have raised a trillion dollars.

Without that revenue Trump and his fellow Republicans would have to either scale back their plans for tax cuts or find a new revenue-raising measure.

“After making that statement I think everyone just is expecting it to go away now.

“But the devil will be in the detail with tax reform and we will have to watch what happens,” McVitty said.

Farm Nutrition Column

Add Value With Micronutrients Dr. Jamie Blennerhassett PhD Soil Science, MApplSc (Hons) Soil and Water Management, Innovation Leader for Ballance Agri-Nutrients.

M

icronutrients can make a significant difference to farm returns and are cheap, relative to other nutrients. They can help improve fertility, growth rates, weight gains and, in a dairy context, milk production by reducing stock losses from ill thrift and metabolic conditions.

Just like N, P, K and S, micronutrients are removed from your soil by pasture and stock and get depleted if not replaced. Repeated liming can also affect micronutrient availability. A pro-active approach to micronutrients will support quality pasture and crops as well as healthy animals.

• Mixed pasture: This shows what your animals are actually eating. As well as monitoring micronutrient content, mixed pasture samples can be analysed to measure feed value or nitratenitrogen levels.

Testing is best timed to allow application prior to periods of peak animal demand. The micronutrients commonly applied to pasture to sufficiently supply animals are selenium, cobalt and copper. Selenium is usually measured in spring, in advance of mating. Late spring is the time to test for cobalt in anticipation of weaning. Copper is best assessed in early autumn.

‘Shows what your animals are actually eating.’

Plant uptake of micronutrients can be affected by soil type, soil pH, plant species and levels of other nutrients.

Consequently, you cannot use soil tests to predict micronutrient levels in pasture.

Herbage testing is the right tool for the job. Two types are commonly used in pastoral farming:

• Clover-only: A clover-only test can examine levels of boron and molybdenum – key micronutrients for vigorous clover growth and therefore for improving pasture quality.

Like soil samples, herbage samples must be taken in a particular way to get results you can use with confidence. Your Ballance Nutrient Specialist or farm advisor can help or follow instructions from a reputable testing service such as Hill Laboratories.

Some micronutrients, such as selenium, are very easy to incorporate into your annual maintenance fertiliser programme.

Others are more complex but testing and good advice will put you on the right path.

Call 0800 222 090 to find out more or visit: ballance.co.nz/micronutrients

Together, Creating the Best Soil and Feed on Earth

News

20 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 7, 2017

Single-desk meat seller mooted Neal Wallace neal.wallace@nzx.com THE possibility of establishing a single-desk seller for meat has been raised by New Zealand First.

The party’s primary industry’s spokesman Richard Prosser told the Red Meat Sector Conference in Dunedin one way of extracting greater value from meat could be to adopt a single-desk seller model.

Speaking at a political forum with Ian McKelvie, National, Eugenie Sage, Greens, and Damien O’Connor, Labour, Prosser said if in Government he would discuss the idea with the meat industry.

If adopted it would be the first time since 1983 when the Meat Board took over the marketing of sheep meat because of low prices that New Zealand would have a single-desk selling system.

Speaking after the forum, Beef + Lamb NZ chairman James Parsons doubted such a policy would have support.

“There are interests that would have a say in this and that is not what is coming through,” he said.

The performance of the politicians did not inspire those at the conference, with many saying they lacked inspiration.

They all spoke about the need

There are interests that would have a say in this and that is not what is coming through.

James Parsons Beef+Lamb NZ

HEAR ME: Politicians, from left, Richard Prosser of NZ First, Ian McKelvie of National, Eugenie Sage of the Greens and Labour’s Damien O’Connor outlined their vision for the meat industry at a forum at the Red Meat Sector Conference on Sunday night.

to add value and for the industry to be profitable but only McKelvie spoke of the importance of improving trade access, an issue conference-goers said was of

primary importance to them.

O’Connor and Sage both said agriculture would be included in the Emissions Trading Scheme if they were in Government,

OVER

with O’Connor adding the growing consensus that dairying had reached its peak created opportunities for the red meat sector.

Sage said including agriculture in the ETS would be balanced by an easing in rules around forestry, from which carbon credits could be earned.

Asked how they stood on the revised Trans Pacific Partnership, O’Connor, Sage and Prosser all had reservations or provisions that would have to be met while McKelvie supported it.

Maniototo farmer David Crutchley asked their definition of sustainability, saying he believed it was about the welfare of farmers, their families, workers and the family farm.

McKelvie said Government policies were not needed to define sustainability but signals were.

Prosser said the fact farming had been around for 150 years showed it was sustainable.

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farmersweekly.co.nz – August 7, 2017

21

The

One. Enermax.

Our highest yielding fodder beet. Ever.* DISCUSSION: Paul Goldstone from the Meat Industry Association and the Parliamentary Commissioner for the Environment Jan Wright at the Red Meat Sector Conference.

Farmers told not all is doom and gloom FARMERS might feel their licence to operate is under threat but those attending the Red Meat Sector conference were told it is not all doom and gloom.

Auckland University marketing lecturer Mike Lee and Parliamentary Commissioner for the Environment Jan Wright both said while there were challenges, farmers could make life easier for themselves.

Lee said just because people ate meat it did not mean they would continue to do so.

Activists opposed to livestock farming and eating meat were becoming innovative promoting their cause even if their claims lacked facts or reality but that reflected a wider shift to people increasingly accepting opinions rather than seeking out facts.

Plant-based protein that mimicked meat was also an increasing threat, Lee said.

Wright said while scientific solutions to greenhouse gas emissions were some still years away, if at all, farmers could plant trees in forests or on low productive areas.

She also believed the Government should rethink policies that determined how land qualified as carbon absorbing sinks.

Trees absorbed carbon dioxide, which could be used to offset methane and nitrous oxide emissions from agriculture.

Wright said it had been calculated that to offset 100 sheep six hectares were needed.

For 100 beef cattle it was 28ha and 100 dairy cows 42ha.

Lee said a social licence required legitimacy, acceptance, credibility and trust from society and argued that a decade ago dairying had met that measure but that social licence was now being questioned.

In part that was due to changes in perception of animal farming but also because of the industry’s size.

“The more successful, the bigger the bullseye on your back.”

The reasons people liked meat – health, taste, lifestyle and image were the reasons people were questioning it.

The whole system is what NZ does well.

You need to hang on to what you are doing.

Mike Lee Auckland University The two areas livestock farmers needed to enhance were environmental and ethical standards and Lee said New Zealand farmers could do that.

Meat already met health, lifestyle, taste and image but the sector should not shy away from the reality that animals died in the production process.

“Sugar coating or ignoring it in any way is frankly disrespectful to the animal.”

The sector also needed to adhere to the highest ethics both in the way animals were treated and the environmental

footprint and he gave the contrast between feedlots and pastoral farming.

“One considers the whole system and the other only considers production.

“The whole system is what NZ does well. You need to hang on to what you are doing.”

Lee said NZ had a chance to be the world leader in producing natural, high-quality meat and that should be the aspiration and not just to be a leading producer of high-quality meat.

Asked by Sir Lockwood Smith if people giving higher status to opinion over fact were “taking us back to the dark ages,” Lee said he was “uncomfortable” but agreed.

“I hope it is a slight downward trend.”

Wright called for an end to the 14-year debate over whether farming should enter the Emissions Trading Scheme and instead a discussion on what should be done to address the issue of greenhouse gas emissions from agriculture.

She also called for NZ to adopt climate change policies similar to the United Kingdom, which removed political interference and policy changes and provided predictability for businesses.

The policy set emission targets in law, established carbon budgets and stepping stones on how to reach those targets and created an expert advisory body whose advice was open and transparent.

She acknowledged methane and nitrous oxide emissions accounted for 8% of the UK’s total greenhouse gas emissions compared to nearly 50% in NZ.

• Bred for lifting but suitable for grazing Ask your seed merchant or see our Fodder Beet Yield Trial Results at dlfseeds.co.nz/ yieldtrials to learn more. *From DLF Fodder Beet Yield Trials conducted 2013 – 2017.

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Neal Wallace neal.wallace@nzx.com

News

22 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 7, 2017

Ballance profit bounces back

REBOOT: Ballance chairman David Peacocke says the co-op has dropped plans to replace its ageing Kapuni urea plant, and will now make a “staged reinvestment” in the existing plant.

Alan Williams alan.williams@nzx.com FERTILISER co-operative Ballance Agri-Nutrients will pay out an extra $20 a tonne in rebate to shareholder customers compared to last year.

Shareholders will receive a $45/t rebate on their purchases, helped by the group’s improved earnings.

The gross profit for the year ended May 31

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was $56.8 million, a $22m improvement on the previous year. The rebate will take up $54m.

Ballance has dropped plans to replace its ageing Kapuni urea plant, and instead will make a “staged reinvestment” in the existing plant, chairman David Peacocke said.

The co-operative spent many months trying to attract a joint-venture partner for the potential greenfields replacement project.

The existing plant is back in full production and achieved a record production figure of 277,000t for the year, compared to a historical average of 260,000t.

Ballance had bounced back from a tough 2016 year, with a very good result and distribution to shareholders, with a healthy balance sheet and strong cashflows, Peacocke said.

The balance date equity ratio was 77.9%, and operating cashflows were $83m, up from $35m previously.

Full balance sheet figures weren’t released in the preliminary statement, but the directors said debt had been paid down and there was a positive cash balance at May 31.

The higher profit was achieved despite revenue being 4% lower than a year earlier, at $805m. Offsetting this, Peacocke said there had been savings in procurement costs for fertiliser inputs, as well as the Kapuni improvement taking advantage of recovering demand and improved pricing in the second half of the year.

Chief executive Mark Wynne said average revenues per-tonne were lower during the year, but there had been rapid growth in demand for “smart’’ products that delivered higher margins.

These included the NZ-made nitrogen inputs SustaiN and PhaSedN, both more effective, efficient, and better environmentally than their predecessor products. They now accounted for more than half of Ballance’s nitrogen fertiliser sales.

With PhaSedN now also being produced in the South Island, its sales had increased by 60% during the year.

“Investment in research and a pipeline of science-based products, coupled with new hightech nutrient management tools and tailored advice, is paying dividends and meeting a growing need for farmers to future-proof their businesses,” Wynne said.

On Kapuni, Wynne said the group hadn’t ruled out future redevelopment at some point, but it had exhausted all options for Ballance to lead the project.

Staged investment from cashflows was a more prudent option than raising significant debt to fund a new development at a time of extended volatility in global urea prices.

During the year, the co-operative spent $35m in upgrading and expanding service centres and logistics hubs, and invested significantly in digital technology.

Elsewhere, Ballance was taking legal action over South Africa detaining a 55,000t phosphate shipment, over a long-running geopolitical dispute over control of Western Sahara. The group was not expecting any material financial effect from the vessel charter costs. Procurement savings in the overall business had achieved millions of dollars in savings.

Wynne said the SealesWinslow animal foods business had improved profitability, after a 50% lift in sales volumes.

Your comment counts FORWARD-THINKING NUTRITION

Add your voice to this story at farmersweekly.co.nz

farmersweekly.co.nz – August 7, 2017

23

Write-down hits Blue Sky on bottom line Alan Williams alan.williams@nzx.com BUYING a small beef processing plant in Gore has become an expensive project for Blue Sky Meats.

The value has been written down by $1.4 million to make up a large part of the company’s loss of $1.9m in the year ended March 31.

Buying it in late 2014 appeared to make sense, but the timing proved to be poor, chairman Scott O’Donnell said.

New chief executive Todd Grave, who joined the company half-way through the year, said that closing it for the season under review meant the plant had not been exposed to the unfavourable supply and demand conditions prevailing.

Weather-related delays to the new rendering plant at the Morton Mains processing base in Southland also meant rendering operations had to stop for some periods, causing significant lost income for nine weeks, with a net impact of about $860,000. Rendering was a profitable and important part of the business, and the plant was now fully operational, Grave said.

The other factor in the overall loss was the $163,000 of cost incurred in dealing with the takeover offer from Binxi NZ that

TIMING: Buying a processing plant in Gore made sense, but the timing was poor, Blue Sky Meats chairman Scott O’Donnell says. could not be recovered from it.

The Morton Mains plant generated a small pre-tax operating profit during the year.

Revenues and volumes were lower but selling prices rose, with revenue per kg ending the year significantly higher than the previous year, and margins also higher.

Though annual profitability remained unacceptable, the results for the first three months of the current year were double the level anticipated, Grave said.

Blue Sky had also more than doubled the volume of chilled lamb exports, as well as making

savings across the business.

Revenues for the year were $98m, down from $117.24m a year earlier, when another $1.9m loss was recorded. In both years, the pre-tax loss was greater – first $2.7m and then $2.55m – but substantial tax credits helped the bottom line.

Operating cash flow fell to $2.29m from $10m a year earlier.

The annual report said that Grave’s first move was to institute a strategic review of Blue Sky Meats, leading to a plan for 20 projects to produce a targeted $7.8m in added value over a three-year period. The theme of the programme is modernisation, simplification, and innovation, and included year-on-year doubling in chilled volumes.

About $1.5m in added value was produced in the first threemonths of the strategy, double the amount targeted, Grave said.

O’Donnell said he believed the group had the ability to operate profitably.

Chinese-owned Binxi NZ launched a takeover for Blue Sky Meats in November last year, receiving board support in January.

However, Overseas Investment Office (OIO) approval was not received before the offer closed.

This has since been given, and Binxi remains the group’s second biggest shareholder with a 17.7% stake.

Migrant policy falls short: Feds Tim Fulton NEW immigration policies for migrant workers don’t go far enough, Federated Farmers says.

The changes restricted most migrant workers, including dairy farm workers, to a maximum of three consecutive one-year visas before a standdown requiring them to leave New Zealand for 12 months.

“Given the depth of labour shortages in rural areas this will only force out migrants who have been invested in, trained and integrated into the farm and community to be replaced by another migrant who is new to NZ,” Federated Farmers immigration spokesman Chris Lewis said.

Government policy didn’t respond to primary industry’s call for a framework to attract and retain quality, motivated, highly-capable migrant employees who could develop their skills.

Lewis said given the depth of labour shortages in rural areas, the new policy would force out migrants who had been integrated into the farm and community, only to be

replaced by another new migrant.

Restrictions on bringing partners or children would also hurt rural communities relying on the families of migrants to provide critical mass for schools, social groups and community organisations, he said.

The Government considered about 170 submissions on immigration conditions.

Immigration Minister Michael Woodhouse announced last week that while the minimum standdown periods and visa requirements for partners and children would still apply for lower-skilled migrants, the Government was amending the wage band for mid-skilled migrants.

The revised band for midskilled would now be 85% of the NZ median income, which was $41,538 a year.

That meant any migrant earning below $41,538 a year would be considered lowerskilled and subject to the stand-down periods.

The Government’s original proposal in April set annual income of $48,859 for workers to be considered skilled and made migrants leave for at least a year after three years of working.

Woodhouse said any migrant earning between $41,538 and $73,299 a year in a qualifying occupation and category would now be considered mid-skilled and those earning more than $73,299 a year would automatically be considered higher-skilled, regardless of their occupation.

The revised mid-skilled pay band recognised those workers were filling genuine skill shortages and were more likely to progress with further skills acquisition or work experience.

The changes also provided more certainty for employers in planning and training their workforce, Woodhouse said.

The Government considered about 170 submissions on immigration conditions.

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OBSESSED WITH AGRICULTURE

A NITROGEN “hotspot” near the Waimakariri River is a collage of environmental pollution in New Zealand.

Nitrate readings at Silverstream in lowland North Canterbury were returning to a peak last seen during a dry spell in 2015.

Environment Canterbury water surface scientist Adrian Meredith said nitrate “may well peak again to those levels in coming months”.

As a result of the high concentration, the headwaters of Silverstream were a “priority area for investigations and for identifying potential solutions”, he said.

Meredith suggested dry weather explained the previous peak but could not say why levels were rising again after months of unusually wet weather.

“We cannot answer detailed questions on cause and effect on nitrate-nitrogen in the upper Silverstream as we are still investigating the pathways of groundwater flow in the Eyre Zone of the Waimakariri district.

“It is too early to predict the definite source area of the elevated nitrogen concentrations although it is fair to say this is a nitrate hotspot area,” he said.

Silverstream was showing “unusual patterns that we are still investigating and modelling to try to understand the source and delivery patterns of the nitrate”.

Levels rose from 6mg/l nitrate-nitrogen in July 2012 to a peak of 10.5mg/l in January 2015 but had since varied to a peak of 8mg/l in July 2016.

The reading was rising again in 2017, to the latest reading of 6.9mg/l.

Nitrate losses were mainly via leaching through saturated soil.

Climate, therefore, played a role as losses were higher during periods of wet soils and rain and lower in drier seasons, Meredith said.

ECan chief scientist Dr Tim Davie said the measured nitrate concentrations at Silverstream were below the drinking water standard of 11.3mg/l.

“In our monitoring of

groundwater we have occasionally had shallow wells in the Waimakariri district that exceed the drinking water standard but further monitoring has always shown that they drop back below the standard in a short time. In cases where our monitoring shows nitratenitrogen about 11.3mg/l, we immediately notify the well owner.”

An area immediately west, on an upward slope across the Canterbury Plains, is home to lifestyle block owners and a small number of large dairy farms.

Some of the lifestyle blockholders object to an irrigation company’s plans for a water storage reservoir near Oxford.

Late afternoon on Tuesday August 1, a few hundred metres from Silverstream, cows grazed either side of an unfenced channel running from farm toward springs.

Ngai Tahu is rapidly converted the old Eyrewell Forest beside the Waimakariri River; some into dairy, others into drystock blocks. Other dairy farmers in the area are smaller in number but also large producers.

Meredith said the council did not know whether the Ngai Tahu conversions and other up-country dairying had lifted the nitrate load.

“This is the reason why there are ongoing investigation efforts and modelling.

Nor could ECan rule in, or out, the possibility that nitrate-laden water from the Waimakariri was entering Christchurch aquifers and other local water supplies.

“There is no conclusion yet. We are doing further work to investigate deep groundwater flow paths in Waimakariri District,”

It is too early to predict the definite source area of the elevated nitrogen concentrations although it is fair to say this is a nitrate hotspot area.

Adrian Meredith Environment Canterbury Meredith said.

The Silverstream area on the scrubby north bank of the Waimakariri looks neglected: an ECan sign warning riverusers about nor-west flooding is peppered with bullet holes.

Three TV sets have been discarded on the adjacent gravel road: the hardware is exposed to an elongated puddle running toward the river.

At a nearby bridge over Eyre River, two plastic supermarket bags containing marijuana have been dumped in a tangle of damp grass.

The river, often dry, has been in full flow lately so the bags could head toward sea at any moment.

Silverstream and the waterways around it have other burdens. Community groups have spent thousands of hours to clear gorse, broom and other weeds.

A locked gate next to a bold sign declaring “Public Walkway” suggests tension over access to Silverstream’s margins.

Wherever you go around here, it seems, water pollution and private property rights are contested subjects.

News

farmersweekly.co.nz – August 7, 2017

25

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26 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 7, 2017

Tourists increasing biosecurity risk Glenys Christian glenys.christian@nzx.com NEW Zealand biosecurity faces several new threats with evergrowing numbers of tourists looking for a cheap holiday here, the Ministry for Primary Industries (MPI) director of border clearance services, Steve Gilbert believes.

He told the Potatoes New Zealand Conference in Pukekohe in late July that there was a whole range of new travellers visiting this country.

Very cheap flights from Asia now meant people who had not been able to afford to travel previously now could.

“And they pose a different biosecurity risk,” he said.

Self-catering tourists were bringing large quantities of their own fruit, vegetables and other food to this country to reduce costs while they were here.

“From 3-5pm every day you will see four or five examples of this at Auckland International Airport,” he said.

One international student, for example, brought in 60 packets of chilli sauce with her in her

luggage, one every week she was here. The reason she gave for doing this was because the sauce was one tenth of the price in her homeland. Other backpacking tourists were gifted fruit when they left a country and chose to bring it to New Zealand with them, Gilbert said.

“We confiscate it and put them on the first flight home. It’s a challenge for the future.”

Another issue was rising luggage allowances, with some airlines letting each passenger bring 45 kilograms with them. If they were travelling in a group of three or four that amount of baggage took MPI staff a lot of time and effort to search.

There had been a nine percent increase in tourist numbers this summer compared with last year with an average of 18,000 passengers a day coming through Auckland International Airport in January. From December 2016 to February 28 this year there were 2963 undeclared items seized.

Gilbert said this might mean around 15,000 items were picked up annually.

There was an average of 300 people a week who were fined

$400 for not declaring food in their luggage, with most saying they “simply forgot about it”, such as a piece of fruit not cleaned out of a backpack.

Gilbert said while 95% of travellers wanted to comply with NZ’s biosecurity regulations, some still “just didn’t get it”.

“They think one apple can’t do any harm,” he said.

And some did not believe there was any need to clean a tent used in the United States before bringing it here, despite the risk from soil and vegetative matter still being on it.

In the last four years quarantine staff numbers had grown from 330 to 550 with detector dogs increasing from 20 to 60, which required 100 of the animals to keep that number in the field. A huge amount of money had also been spent on technology, such as more x-ray machines.

“We have been through a fair amount of change and there will be more wherever we go,” he said.

A lot more brown marmorated stink bugs, which posed a significant threat to NZ agriculture, had been found this year compared with last.

NEW THREATS: Ministry for Primary Industries director of border clearance services Steve Gilbert says the growing number of tourists pose new biosecurity risks.

MPI was working closely with machinery importers to make sure agricultural equipment was heat treated in its home country before being sent here.

“If not we will send it to Australia and they will probably send it to Singapore,” he said.

Transitional facilities were being reduced so there was less risk of containers being opened in agricultural areas, such as Pukekohe, from where pests could rapidly spread. And it would be hard for any new of these facilities to now be established.

Gilbert said seed imports had been incredibly challenging, with certification from some countries not able to be taken at face value.

There were 7.1 million items of mail inspected each year with the balance having changed in recent years. There had been a 49% drop in mail items coming from Australia and from within NZ, but a 117% lift in the volume from China.

“And people will put anything in an envelope such as seeds and plant material, and that’s significantly increasing.”

Tourism is all take and no give, research finds Stephen Bell stephen.bell@nzx.com THE tourism industry, which has bagged farming for spoiling its pristine image, is bludging off the rest of the community, Victoria University research has found.

Last year the Tourism Export Council, which described itself as the Fonterra of tourism, attacked farmers for marring the environment and adversely affecting water quality.

Fonterra has committed to leading the move the clean up the country’s 50 water catchments.

The council called for a fiveyear moratorium on irrigation and backed the anti-farming group Choose Fresh Water with money for its campaign against farmers.

It has also lamented the money the Conservation Department has to spend.

But now Victoria’s school of government senior lecturer Dr Valentina Dinica has found tourism contributed less than 3.5% of DOC’s budget while DOC spent 10 times that much – 34% of its budgetary allocations – on recreational expenses including tourist facilities and services and managing tourism concessions.

“DOC is subsidising tourism while facing a huge financial gap to save precious native species and sustain ecosystem services,” Dinica said.

And not only were tourism firms, which made $35 billion a year from tourists, not paying their way they expected special

NOT RIGHT: The Department of Conservation is subsidising tourism while facing a huge financial gap to save precious native species and sustain ecosystem services, Dr Valentina Dinica says.

treatment if they did contribute.

“At the same time, our country struggles with the highest numbers in the world of endemic species threatened with extinction or deemed at-risk.

Reversing the continuous biodiversity decline is not an easy task.

“The financial challenges are enormous for three main reasons: the large size of protected areas, the small taxpayer base on which state budgets may draw and the magnitude of the conservation challenge.

“Over-reliance on state funding

is not a financially sustainable strategy,” Dinica said.

Many countries where tourism was a major user of protected areas funded conservation largely through proven conservation funding of tourism taxes, entry fees and user charges—all of which may exempt nationals, to reflect their contributions as taxpayers.

Some park authorities earned as much as 80% of their revenue from such sources.

“In New Zealand, however, there has never been political appetite for such tools.

“Nor has there been political willingness to use regulatory instruments for conservation gains despite the 1987 Conservation Act allowing the state to do so.

“Under Part III on concessions in the Act, the Conservation Minister and DOC staff have the authority to insert not only environmental management but also conservation responsibilities in concession contracts.

Extensive contract analysis and interviews with numerous tourism operators revealed the legal powers were seldom used to halt biodiversity decline.

“Most concession requirements are formulated in terms of what-not-to-do in order to avoid harming nature or rectifying damage, rather than determining what businesses need to do for biodiversity conservation.

“It is an opportunity missed that these legal provisions

aren’t used as a basis for formal partnerships between DOC and concessionaires.

“This is concerning from an ecological viewpoint.

“The planet is currently going through its sixth mass extinction and yet tourism is not required to do its fair share to save species, despite rocketing revenues.

The planet is currently going through its sixth mass extinction and yet tourism is not required to do its fair share to save species, despite rocketing revenues.

Dr Valentina Dinica Victoria University Instead, recent governments have been implementing a yet unwritten governance reform strategy for protected areas, which over-relied on voluntary approaches for conservation gains.

Since 2009, several restructurings of DOC, significant policy changes and some legal amendments had been implemented based on a policy hypothesis for which no evidence was yet available worldwide.

The hypothesis was that if

DOC contributed to national prosperity through tourism in public conservation lands, any ecosystem pressures from increased economic activities would be more than compensated for by the willingness of others to do conservation work.

Partnerships with businesses and communities were expected to take the form of contributions through volunteering staff labour and access to relevant equipment or vehicles from operators, philanthropic donations from tourists and businesses and commercial sponsorships.

“My research on the concessionaires’ views on the recent strategy indicates there is very limited interest to volunteer.

“A key reason is biodiversity conservation is viewed as a state responsibility and a matter of state leadership.

“Operators are not keen to learn conservation skills and allocate the human and material resources DOC hopes for, unless there are private benefits.

“Some concessionaires would only volunteer if DOC agrees to change the zoning of national parks to allow for more tourism facilities and activities.

“Others expect monopoly rights for the use of major tourism facilities currently open to the public.

“We need to re-examine our policies, make full use of existing legislation and reverse the subsidy relationship between DOC and the tourism sector,” Dinica said.

News

farmersweekly.co.nz – August 7, 2017

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HIGH VALUE: AgFirst consultant Bob Thompson says better beef genetics are worth the effort.

Farmers urged to beef up genetics Hugh Stringleman hugh.stringleman@nzx.com DAIRY farmers have been urged to use better beef genetics to produce higher-value calves that are not required as herd replacements.

Fit-for-purpose beef genetics enabled dairy cows to get in-calf easily, have a gestation no longer than dairy genetics and produce a live calf that has value as a beef finishing animal, AgFirst Waikato farm consultant Bob Thomson said.

Better beef genetics offered a double-barrelled benefit – they were positive and safe to use in the dairy herd and increased the beef value proposition in the surplus calves.

The most suitable beef bulls came in a straw, not on the hoof, because they were usually highly selected and had been progeny tested.

These highly selected and proven beef bulls gave the farmer confidence that what was claimed in the brochures happened down on the farm.

Thomson advocated using AI with proven beef bulls on the balance of the cow herd after dairy bull AI had produced the heifer replacements needed.

“Actual progeny test results represented via semen are much safer than predicted results represented on the hoof.”

Thomson has devoted much of his life’s work as a farm consultant to improving the beef value chain for farmers and trying to forge stronger links between the dairy and meat industries.

His latest campaign was not going to make him popular with vendors of unrecorded yearling beef bulls to dairy farmers in

September auctions.

In the midst of calving and the lead up to spring mating of five million-plus dairy cows, he drew attention to the wide range of options facing the farmer who was planning a mating programme.

“On one hand we have bulls available from beef bull breeding herds with none or low genetic specification and on the other hand we have purpose-bred beef bulls (and semen) with genetic specifications that make them fit-for-purpose.”

Actual progeny test results represented via semen are much safer than predicted results represented on the hoof.

Bob Thompson AgFirst The recent Dairy-Beef Integration Project and the current Beef + Lamb Genetics progeny test on Limestone Downs both demonstrated that unselected beef bulls were risky to use.

“They generally have higher levels of calving difficulty, longer gestation length and lower postbirth calf growth rate.

“They were often not fit-forpurpose.

“On the other hand, the best of the beef bulls from each project demonstrated that if you take the time to find beef genetics that are fit-for-purpose

it is worth the effort.

“At the very least beef bulls should be purchased from breeders recording on Group Breedplan with breeding values offering good value propositions to dairy farmers – that would mean short gestation length and well above breed average for calving ease.”

Thomson drew attention to the gestation length aspect, in that every day a cow was earlier in milk was $10 of income, based on a $6/kg milksolids payout.

A recent study of beef bulls suitable for dairy-beef production showed that the best available beef AI bulls had breeding values for gestation length of minus 12 days.

When used over average gestation length dairy cows the cows would calve six days earlier.

But some beef breeds had gestation lengths longer than the dairy cows they were mated to.

For example, Herefords have and average two days longer gestation length than Angus and Holstein Friesian.

Most of the European breeds have gestation lengths five days longer.

“So, when choosing a beef breed check out the gestation length for the breed and then the bull,” Thomson advised.

The myth that dairy-beef was inferior quality to traditionally bred beef had been disproved.

“Quality dairy-beef is at least equal to traditional beef, and that has been proven by NZ and overseas research, plus the practical and measured results from the marketplace.”

At the farm level the biggest contribution to higher-value dairy-beef was in the selection of fit-for-purpose beef genetics, he said.

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News

28 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 7, 2017

Raw milk vendors reject rego option Tim Fulton RAW milk sales are flying for a Canterbury couple selling fresh milk as bath formula.

Hayden and Gillian Ussher, near Rangiora, have about 100 regular customers for their Farm Fresh Milk.

They’re outside a group of 25 registered farm suppliers selling milk to the public for human consumption. New regulations for the sale of raw milk came into effect on March 1, 2016.

Parliament’s Primary Production select committee recently heard the country has 24 registered producers. Three years ago the known number of producers was 74, the committee heard from the Ministry for Primary Industries.

The cross-party group was told “as new regulations become better understood, more suppliers are applying to the ministry to sell raw milk”.

An MPI spokeswoman told Farmers Weekly it currently has 25 registered suppliers, with one application pending. She didn’t have figures for the number of suppliers at the time the regulations were introduced.

The Usshers are processed milk suppliers for Fonterra, running about 350 cows. They also have a herd of 12 or 13 cows dispensing unpasteurised milk to the public from a vending machine in a converted forestry worker’s cabin.

The machine is labelled “not for human consumption”.

The third-generation farmers at Fernside, North Canterbury, have been selling raw milk from the cash-operated unit for $2.50 a litre since last year.

The Usshers have opted not to register as suppliers of milk for human consumption. That sets them apart from four other registered Canterbury operators: Ferngrove Farms at Burnham, Cavan Farm Fresh Milk at Oxford, Laura’s Dairy at Diamond Harbour, and Real Milk Timaru.

Farm Fresh customers made it clear they drank the product, Hayden Ussher said.

MPI staff visiting the farm said

SQUEAKY CLEAN: Farm Fresh Milk owner Hayden Ussher with his bath-formula vending machine.

If we had to stop, it’s no skin off my nose – it’s the consumer who loses out.

Hayden Ussher Farm Fresh Milk they had closed down a Nelson farmer who admitted to knowing that customers were drinking the milk rather than soaking in it.

“MPI are not happy about (us) – they’ve been talking to us about it for the last six months.”

It was a legal grey area, Ussher said.

An MPI spokeswoman said all suppliers selling raw drinking milk to consumers need to be registered and meet all their food safety requirements.

“Although we are unable to discuss individual cases, we are aware of some unregistered suppliers who are selling raw drinking milk as bath milk, and we are investigating all instances of non-compliance.”

Ussher said locals used to ask for raw milk straight from the vat but he “wasn’t happy” at the potential health risks in customers going straight to the source.

“Before we started this business, we’d get two or three people just rock up and ask if they could just drink out of the vat. And the risk of people getting sick (from that) is quite high.”

Ussher decided it was better to sell the milk in a controlled way rather than leaving people to their own devices – pouring it into old plastic bottles washed with detergent, for instance.

“How milk is stored has a huge effect on it,” he said.

Farm Fresh Milk sells about 40 litres a day to customers from as far afield as Hanmer Springs.

Some bought a litre every two days while others from further afield would buy 10 litres on weekly shopping trips.

Ussher understood that most other Canterbury farm suppliers, registered or otherwise, were selling three or four times more milk than they did.

The Usshers’ farmgate is open to the public from 7am to 7pm. At

closing time the raw milk can is washed and prepared for the next day, meaning no milk for sale is more than 12 hours old.

Ussher said the business generated $25,000 a year, but ran at a loss in winter when running costs were highest. They needed to sell 250 litres a week to cover the cost of running a small,

separate herd, and becoming a registered supply of milk for human consumption would’ve cost $16,000 in the first year, he said.

“There’s labour, the cost of milking and maintenance. It just disappears. We just run it more as a consumer service.”

Selling milk as bathing formula was a legal “grey area”, Ussher said. As far he knew, MPI was considering its next steps on their operation.

“If we had to stop, it’s no skin off my nose – it’s the consumer who loses out.”

Caroline Marshall, a naturopath and whole foods advocate at Whitianga on Coromandel Peninsula, said it wasn’t surprising the number of registered vendors was low.

“I hear some of the farmers who were Fonterra suppliers have decided to just flag the lot and carry on (regular supply) as normal,” she said.

Those who remained were jumping hoops, the associate member of the Raw Milk Producers Association said.

“I tell you, people are trying anything to get through the loopholes they’ve found.

Otherwise they just close up.”

Producers of raw cheese were also having a hard time meeting regulations, Marshall said.

Avoiding ill-gotten gains THE Ministry for Primary Industries says the raw milk regulations introduced in March 2016 were developed to help reduce the incidence of illness.

“They were aimed at better managing the risks to public health, while recognising the demand for raw milk from consumers,” the ministry’s website said.

Only farmers that meet the new requirements are able to register and sell their raw drinking milk.

Raw milk must be home-

delivered or bought at the farm, and consumers need to go to the farm or have the milk delivered to their home “by transporters who meet the requirements”.

All containers and pointof-sale areas must display labels and notices that identify the health risks of raw milk.

Consumers can buy as much raw milk as they want for personal and household use, but it’s illegal to on-sell, either as milk or as part of another product like cheese.

E-access to NZ farms is on the table Tim Fulton THE Walking Access Commission has been testing New Zealand’s appetite for an app allowing farm visitors to ask for access online.

The commission operates a digital mapping system pointing out public accessways through private property.

Last summer, Lincoln University student Alison Outram used a scholarship awarded by the commission to canvas interest in a type of “AccessMe” digital platform.

In her report to the commission in February, Outram said the advantages were that the property owner or manager had a clear record of who was on their

property, and what they were doing.

Online requests were also “less interruptive to access granters’ day-to-day activities by removing the need to deal with telephone calls or unexpected visitors”.

An app-user would be able to request access without the need to find contact details and information about permitted activities on a property, access points and possible hazards.

Outram said “allowing public access to private farmland is a cause for concerns for access granters, including impacts an activity may have on the environment and farm operations, theft and vandalism, and safety, particularly when

firearms are brought on to the property”.

Walking Access Commission chief executive Eric Pyle said it was consulting deerstalkers, farmers and other recreationists about an app’s potential.

If accepted, the commission would have to do a considerable amount of work on the app coding required, and ensure it was compatible with the existing mapping system.

The commission would become “a very different set-up” if it took charge of the data and the online interactions, he said.

“Suddenly you’re into the IT space.”

The commission advanced the idea at a Federated Farmers high-

country conference and would continue to test it elsewhere.

“It’s on the website [the report] and we’re seeking comment and feedback and reaction,” Pyle said.

Outram was a recipient of the J H Aspinall scholarship named after the late farming leader, John Aspinall.

Before his death in 2011, Aspinall made a passionate contribution to walking access policy.

His family still runs Mt Aspiring Station, a South Island high-country farm that allows significant public access.

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Read Alison Outram’s report at bit. ly/2uCRNIw

IN-STEP: Walking Access Commission chief executive Eric Pyle says his organisation is considering an app that lets farm visitors ask for access online.

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30 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 7, 2017

NZ and UK could be trade allies After four years as New Zealand’s representative in the United Kingdom, Dr Lockwood Smith recently returned to his Northland farm. He spoke to Nigel Stirling about the UK’s historic decision to leave the European Union and what it could mean for farmers here.

S

INCE its vote to leave the European Union a little over a year ago there has been no end to the dire predictions from those who believe Britain has turned its back on globalisation.

Politician then diplomat Lockwood Smith is not among the hand-wringers, however.

The former High Commissioner to London is convinced the UK can be a force for good in liberalising global trade once it is no longer bound by protectionist Europe’s trade policies.

“To me, the great benefit of Brexit is the UK being able to adopt a leadership role globally.”

However, while Smith believes there are opportunities from Brexit there are also risks.

Britain’s recent tight general election was widely seen as a smack in the face for its Prime Minister Theresa May and her backing of a so-called “hard” Brexit that involves the UK leaving the single market.

Smith says a “softer” option of remaining inside the market in return for accepting more migrants from Europe would be a backward step for the UK and its trading partners.

“If the UK does that then that has a huge impact on us because the UK cannot then negotiate trade agreements with third countries like New Zealand and it can only do what the EU does as it remains bound by EU trade agreements.”

If the UK opted for a “soft” Brexit and consequently remained in the single market then NZ dairy and beef farmers would continue to face the same high tariffs selling to Britain as they do today.

“We do have a dairy quota but it is not tariff-free and the tariff is so high NZ does very little exporting to the EU over that quota.

“And the beef quota is 1500 tonnes, which is not a helluva lot more than I produce on my own farm.”

But if the UK were to leave the single market it would be free to negotiate its own tariff-busting trade deals.

Before the UK and the EU could go their separate ways, though, they would need to agree on how so-called third-country quotas were handled.

While NZ’s beef and dairy quotas were of limited value the same could not be said of its 228,000 tonne sheep meat quota.

The envy of competitors and a perennial source of irritation to British farmers, the tariff-free quota underpinned trade in what was still the NZ meat industry’s single most valuable market.

Smith was satisfied the quota, negotiated in the 1970s and reaffirmed two decades later in the World Trade Organisation’s Uruguay round of global trade talks, and the flexibility it gave NZ exporters in the EU market was on safe legal ground.

“At the moment we can put more or less into the UK and more or less into Europe and if the UK leaves the EU and that quota was to be split there would need to be some compensation for losing that flexibility.”

That position looked even more assured last week when visiting British Foreign Secretary Boris Johnson, asked about opposition to NZ lamb from British farmers, responded by saying no trade

partner of the UK would be left worse off by Brexit.

Still Smith saw a risk to NZ’s market-leading position in the UK as it signed new trade deals and potentially opened up its market to competitors such as Australia, which had just 19,000 tonnes of quota for the whole of the EU. “Australia feels they missed out on sheep meat access to the UK back in 1973 when they joined the European Economic Community and they are pretty blatant about wanting to fix that lack of access as they negotiate with the UK.” In the meantime, NZ could not afford to be complacent about its existing quota access and should find ways to enlist the support of British farmers.

With future access to the EU uncertain, British sheep farmers were keen to learn from the international experience of NZ meat marketers should they be forced to find new markets for their lamb.

The pay-off would be safeguarding and possibly even improving NZ’s access to the UK market.

“While we have our current WTO arrangements we are seeking to negotiate a free-trade agreement … and we may want more for beef and dairy.”

On the question of maintaining access to the remaining EU countries Smith said the same legal protections applied.

NZ was also due to begin freetrade talks with the EU later this year and despite it being in the thick of Brexit negotiations with the UK Smith was confident a deal could be done though he wasn’t expecting windfall gains for exporters.

BEWARE: While protecting its quotas in Britain and Europe, New Zealand has to be aware Australia feels it missed out and wants to increase its quotas, former High Commissioner London Lockwood Smith says.

“While normally we seek to get free and open trade and allow a transition period like with China where we had a transition period over a number of years to get there with the EU it is unlikely we would negotiate something like that.

“One has to be realistic about where the EU is at.”

However, where Brexit might have shifted the ground in the EU was in its long-standing policy of subsidising is farmers.

The UK was expected to take €12 billion out of the EU’s budget when it left in 2019 and bureaucrats in Brussels had identified payments from the

Common Agricultural Policy (CAP) as ripe for savings to plug the shortfall.

Smith saw the UK as a potential ally to NZ in its long fight against trade-distorting subsidies as it reformed its own system of payments to farmers.

But he didn’t expect the EU would be in a rush to join the crusade.

“It would be fabulous if they did but you still have got so many members of the EU that have a very protectionist approach to agriculture and I cannot see that happening in the immediate future.”

United Kingdom’s agriculture could be sacrificed

RISK: Leaving the European customs union as well as the Union will put British agriculture in jeopardy in trade deals with other countries, European agriculture commissioner Phil Hogan says.

LEAVING the European Union customs union will put Britain at a major disadvantage after Brexit, EU agriculture commissioner Phil Hogan says.

All sides would have to work together to try to mitigate the damage, he suggested.

The EU had 53 free trade agreements around the world, directly or indirectly involving 138 countries, he told dairy industry representatives at the Dairy United Kingdom annual dinner.

“Leaving the customs union risks that agriculture will be sacrificed in any future trade deals signed by the UK, in my view.

“The reality is that, in trade negotiations, size matters.

“I know there was a big effort (for the UK) to get a quick deal with the United States in a fit of pique last year.

“But in another fit of pique, the US said they wanted to do business with Europe first because it happened to be a bigger market.”

Hogan said the EU Commission would do everything in its power to retain a strong, healthy and productive relationship with the UK dairy sector.

“Everybody on both sides must have an open mind as to what those solutions are and not be painting red lines before the negotiations even start.”

The importance of dairying was stressed by Dairy UK chairman David Dobbin, who was also concerned the sector might be forgotten about or traded away in negotiations to the benefit of other sectors.

“A bad deal for the UK would be a major problem for the domestic dairy industry and would also be a bad

deal for the European dairy industry,” Dobbin said.

“The government must avoid a cliff edge deal and go for a lengthy transition to allow a deal to be finalised and seamlessly phased in.”

Centre for Economics and Business Research director Oliver Hogan said the UK faced a trade-off between autonomy and market access.

“In essence, the more rigid the UK is on its red lines, the more it can expect to have to move away from unfettered single market access as it exists today,” he warned.

“But if done in the right way, many Brexit-related worries could disappear.

“Making this happen will require careful and tolerant negotiating behaviour on both sides, something that has been conspicuous in its absence in recent months.”

New thinking

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 7, 2017

31

Housing cows can save money Home-grown cow housing solutions have the potential to improve dairy farm profitability and meet changing consumer expectations, Herd Homes founder Tom Pow told Hugh Stringleman.

N

EW Zealand’s pasture farming ethos will be retained as resourceful dairy farmers find ways of using off-paddock facilities and bank the benefits, Tom Pow says.

Getting cows off paddocks and under shelter for limited periods was gaining momentum and should be viewed as evolutionary, not revolutionary.

One of the recognised visionaries in a nation of can-do farmers, Pow was confident a NZ suite of housing options wouldn’t just repeat overseas structures and systems or get too demanding and expensive to pose a threat to industry viability.

He didn’t want this article to be about Herd Homes, now in its 15th year and with more than 300 installations here, in Australia and the United Kingdom.

Instead, he wanted to talk about the principles of cow housing, air quality, sunlight and warmth, manure management, nutrient budgeting, soil structure and pasture management, supplementary feeding and environmental sustainability.

No one in NZ had devoted more time and effort into researching, experimenting, evaluating and evolving the structures and uses of dairy housing.

As many hundreds of dairy farmers who had heard Pow speak or talked to him at field days knew, he was never happy with the status quo.

His own Northland farms had several generations of Herd Homes and calf shelters that hadn’t yet been commercialised.

High winds and calf weight pressures, for example, had blown apart some earlier attempts but Pow embodied the Thomas Edison quotation about failures being 10,000 ways that didn’t work.

Relieved a few years ago of the day-to-day operations of his company, Pow continued to work on structural improvements and the integration of feedback from clients.

Numerous trips overseas with wife Kathy were built around annual conferences, farm visits, science conversations and hunches that might improve NZ dairy farming.

Next on the list was a trip to Europe to see how the Romans used sand filters for purifying water.

“Nearly 20 years ago I looked at off-paddock ideas to avoid pugging, which is a big threat to soil structure and future grass production in Northland.

“We went to the UK, United States, Ireland and France and realised that those types of animal housing were struggling to be

AT HOME: Northland dairy farmer and cow housing expert Tom Pow has faith in farmers to take and adapt his structures and their uses.

I believe we have to give cows more choice, whether to access off-paddock facilities with supplementary feed or to graze for shorter periods in bad weather.

Tom Pow Farmer economic and becoming less acceptable to consumers.

“NZ’s economic advantage of milk from grass needed to be retained and the milk curve flattened, if possible, particularly here in Northland where winter milk is viable.”

So Pow started designing and building structures to remove cows from paddocks during wet weather, avoid pugging, feed them supplements, improve cow comfort and save and re-use effluent.

Many plans and patents later, he had made 16 design changes to the first commercial building in response to improved knowledge and feedback from farmers.

He believed that Herd Home owners had proved the economics of installations, with 30% increases in production and profitability not uncommon.

Pow said he always warned farmers interested in housing that farm system changes had to accompany the actual building – manure management, cropping, extended lactations, grazing management and new varietals.

Intending buyers should never underestimate the size of the investment and the commitment –

the structural cost of $1000/cow 15 years ago had now risen to $1500.

“Off-paddock facilities can be very expensive if you don’t maximise the advantages,” he said.

“Ten things done well make a leap forward,” was another of his aphorisms.

Now that NZ dairying was moving from commodities to higher-value products, consumer requirements for animal welfare and environmental care would have to be factored into farm systems.

Gone were the days of cows standing in muddy paddocks or break-fed crops in pouring rain, without shelter.

“I believe we have to give cows more choice, whether to access off-paddock facilities with supplementary feed or to graze for shorter periods in bad weather.”

The free-range approach would be more acceptable to domestic consumers and overseas tourists driving past.

Pow also advocated muck or slurry broadcasting when ground and weather conditions were suitable, rather than continually diluting effluent with water and having to spray irrigate pastures.

His home farm had gone 15 years gaining phosphorus and potassium inputs from recycled manure, leaving only nitrogen and sulphur to be spread from commercial fertiliser.

More manure and urine were gathered in the bunkers and stored for recycling, reducing the high-nitrogen spot deposits and leaching damage in paddocks.

Farm working expenses had been consistently around $3/ kg milksolids, not the $4 that irrigation and off-farm wintering would cost.

The integration of maize cropping and annual ryegrass with cow housing supplemented

milk production without wasting feed.

It also enabled faster paddock rotations with higher residuals and reduced endophyte challenge.

Pow said future field days and conferences would be aimed at gaining farmers’ experiences and

suggestions for improvements so cow housing would evolve in a uniquely NZ way.

He did not expect researchers to build and integrate housing and Herd Homes had never had any government or dairy industry research money or incentives.

ON TOP: Last year’s awards were won by Peter and Nicola Carver of Taranaki.

BFEA entries open FARMERS and growers are being urged to enter the 2018 Ballance Farm Environment Awards.

Entries opened on August 1.

The awards operate within 11 regions, following regional council boundaries, each with their own judging timetable.

Winners are announced at awards dinners in early 2018.

NZFE Trust national judging co-ordinator Andrea Hanna said all farmers and horticulturists, including orchardists, vegetable growers and viticulturists, are eligible to enter.

She said most people participate because they want high quality feedback from independent rural professionals, which they can use to improve their business.

“It’s not just targeted at top farmers. Every farmer should take the opportunity to enter.”

Entering the awards takes two minutes by completing a simple form, available online at www.bfea.org.nz The judging teams have a wide range of skills and look at all parts of the farming business. Judging is conducted in a relaxed and friendly manner and climatic factors are taken into account.

“In the past we’ve found farmers can be reluctant to enter if their farm has been affected by wet weather or drought. But the judges know severe climatic events are part of farming and will look beyond this at the wider picture,” Hanna said.

Opinion

32 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 7, 2017

EDITORIAL

Rural voices must speak

T

Bryan Gibson

LETTERS

More letters P33

The water is already available YOUR coverage of the Ruataniwha Water Storage Scheme (RWSS) in the July 17 edition has prompted me to make some observations and attempt to see a way forward.

The Supreme Court decision might be the fatal flaw in the scheme but it is only one of many.

The state of RWSS is due to the Hawke’s Bay Regional Investment Company (HBRIC) failing to take key stakeholders and the voting public with them, even with the considerable resources of the Government behind them and a politically friendly council table.

The RWSS was imposed on Hawke’s Bay by HBRIC, being sold as an economic and environmental panacea for all the woes of the region.

Plan Change 6 and the RWSS were packaged together as codependent partners.

It was even promoted as a money-making venture for the Hawke’s Bay Regional Council (HBRC) with a guaranteed 6% annual return on investment for ratepayers, a burden the scheme cashflow could have done without.

Prospective investment partners, potential water users and many ratepayers were dissatisfied with this proposal for a number of reasons: the financial forecasts, lack of transparency, poor engagement with communities and those directly affected, the closeddoor meetings, the conflicts of interest and the absence of an environmental bottom line condition, to name a few.

My observation is that the RWSS would be an

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pages 169 to 179) consents to the extraction of 44 million cubic metres of groundwater a year, enough to irrigate 12,659 hectares in the Ruataniwha Basin and around 20% of the annual aquifer recharge of 255m cubic metres.

In the same report the BOI accepts that the 800 square kilometres Ruataniwha Basin aquifer at any time contains about eight billion cubic metres of water (page 9, S10).

My observation is that by spending some of the funds allocated to the RWSS on investigating further the hydrology of this system we might find that the best source of irrigation water is below ground, not above.

Perhaps there is sufficient water underground to provide sustainable solutions for

Continued page 33

Letterof theWeek

Powered by

EDITOR Bryan Gibson bryan.gibson@nzx.com

excellent example of how not to promote and build an irrigation scheme.

It is also an example of why local authorities should not be involved in promoting such ventures; politics risk getting in the way of the authority’s core business.

Where to from here?

Damming rivers is 20th century technology, so how about some 21st century science?

As a region we could lead New Zealand and the world in water resource management and environmental solutions, just like we do in agriculture, horticulture and viticulture.

By working collaboratively as a region with a clearly defined set of goals, both Plan Change 6 and the needs of water users can be met.

The Board of Inquiry (BOI), in its Final Report (Volume 1,

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HE election is looming and with last week’s big change at the top of the Labour Party it’s hard to avoid the coverage. Much of the discussion is centred on the usual issues: health, education, law and order and social issues.

But this time round there are some issues that relate to farmers that will clearly sway some voters. Water quality and the care we give to the environment is the one that will definitely get its share of headlines over the coming weeks. But there are a raft of other issues that rural people are hoping will be given clarity and direction by whoever leads the next government.

Resource management, access to health and other essential services, trade policy, connectivity and our investment in research and development are all things that, if given the right focus and funds, could improve the lives of those living outside the cities.

This election, we’re taking a twopronged approach to covering the issues. First, we’ll present you with the policies outlined by the major parties that impact agriculture. But we’ll also pick out the issues we think are important and present an argument on why they need to be front-of-mind for our leaders in the capital.

Nearer the vote we’ll decide whether our wish-list and the policies promised to us match.

The rural population is small in relation to the amount of economic grunt it provides New Zealand. That means it’s more difficult to make our pleas heard above the urban din. When a third of the population lives in a city where no one can afford a house and it takes two hours to get to work, it can seem like our problems are not as urgent. But that’s simply not true.

Like all New Zealanders, rural people just want a fair go. They want access to health and education, housing, jobs and the ability live their lives and run their businesses with dignity.

Let’s make our voices heard this time.

Opinion

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 7, 2017

33

Have your say in the future of dairy Michael Spaans

I

CAN’T imagine what New Zealand would look like without the dairy sector.

Over the past five years dairy has brought an average of $14.4 billion into the NZ economy each year.

As the largest export earner it is critical that there’s a strong sense of direction and a strong sector-led strategy in place in order to keep NZ prosperous while ensuring dairy farming works for all New Zealanders.

This year will be the first refresh of the 2013 Strategy for Sustainable Dairy Farming.

A lot has happened in the past four years.

The strategy was written in the aftermath of the global financial crisis, when international demand for milk products showed no sign of slowing.

Over the past few years the scene has been significantly different.

Despite this, work towards the strategy objectives has continued.

Over this time, the strategy proved its value in helping us as a sector to maintain focus, build business resilience and work together to tackle the challenges,

LETTERS Continued from page 32 both the regional economy and environment.

Perhaps groundwater can be extracted from points throughout the catchment for distribution to water users.

Who should be the leaders and champions of the work required to find a solution? Water users.

Let’s take as an example the Dairy Creek Irrigation Company in Central Otago, a $10 million joint venture between water users and Pioneer Energy with water drawn from the Clutha River.

The

Pulpit

plus the regulatory changes.

We now have improved understanding and the tools necessary for a more competitive and responsible dairy sector.

Two such examples are the Water Accord, the voluntary commitment farmers have made to lift environmental practices onfarm, and the Workforce Action Plan, which is assisting dairy farming businesses to have good workplace management practices.

The need to tell the story about what dairy farmers are doing for NZ and for the environment has

They are irrigating what was once unproductive land to produce pasture, vines and horticulture (apples, cherries and blueberries).

Their offer to water users is first come, first served with 84% of the water already signed up.

In Ruataniwha, the magic water might be under the ground, not above.

Andy Gifford Hastings

Dam outrage THE July 17 edition of Farmers Weekly carries an interview with lawyer and former Labour Prime Minister, Sir Geoffrey Palmer.

also prompted us to revise our strategy.

On the heels of the challenges of milk price volatility we are now experiencing an increasing public awareness of farming practices and a growing interest in how we are delivering on our environmental sustainability goals.

Most pressing are perceptions around water quality and greenhouse gas emissions, as well as animal welfare.

Looking back over the past four years reinforces for me just how important collaboration is within the dairy sector.

The dairy sector is leading an exciting change in how dairying operates and there has been significant progress on our goals to be more competitive and more responsible but the future requires input from the many people who define dairy.

This starts with our farmers and the wider primary sector.

Already, we have heard from a large number of farmers and rural professionals who have highlighted the challenges they envisage and the targets they see as a priority for us to address.

Over the next month we will be pulling together the feedback we have received to find key topics

When commenting on Conservation Minister Maggie Barry’s declaration to review the law following the Supreme Court’s ruling over a decision by DOC to swap 22ha of conservation land for 170ha of Smedley Station land that would’ve allowed the Ruataniwha dam to be built, he said “if it was to be retrospective, then it would be a constitutional outrage”.

Well, perhaps it may be, but it all depends on your perspective.

Of course, Sir Geoffrey is entitled to express his opinion – however, I don’t share his view and I expect there are many others who will also disagree with him.

2096FW

The online hub for what’s happening now in agriculture. It’s where farmers go for live news, information, jobs, real estate and much more.

LOOK AT YOURSELVES: And then say what you think about the future of the dairy sector, Strategy Refresh steering committee and DairyNZ chairman Michael Spaans says.

you are highlighting that need to be addressed.

These key points will be available to view and comment on at the strategy website.

This Strategy Refresh is about us – all New Zealanders.

The direction of the dairy sector will impact the future for us all.

• Michael Spaans is chair of the Strategy Refresh steering committee, and chair of DairyNZ.

I argue there’s a multitude of people who are entitled to feel far more outraged than the former Prime Minister.

After eight years of exhaustive planning and process that consumed about $28 million of rate and taxpayers’ money, a project that offered so much has nothing more to show for itself than a pile of paper and a frustrated and divided community.

In my opinion, the many people and businesses of Hawke’s Bay who looked forward to a future of growth, opportunity and jobs propelled by the Ruataniwha Water Storage Scheme are the ones who are entitled to feel

MORE:

Have your say and help set the future direction of dairy at www.dairystrategy.co.nz

Your View Got a view on some aspect of farming you would like to get across?

The Pulpit offers readers the chance to have their say. nzfarmersweekly@nzx.com Phone 06 323 1519

outrage and disappointment.

Whether the dam is built or not now lays squarely in the hands of central government. To move forward requires government action through the Public Works Act, or the passing of enabling legislation.

There’s a general election soon. Before it happens, let the politicians tell us what they’re prepared to do in relation to this project.

Farmers Weekly would be the perfect platform for politicians to inform us of their intent, or otherwise.

Kevin Rose Hastings

Opinion

34 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 7, 2017

Govt leaving climate for others Alternative View

Alan Emerson

I ATTENDED a conference on emissions trading some years ago in Auckland.

It was a valuable conference with a key theme of political interference. As governments could introduce measures on emissions trading they could also change them, making the investment risky.

That’s certainly happened here.

We had an Emissions Trading Scheme that was working.

Then the Government changed it so we could buy and sell international units.

Understandably, that severely knocked the price of the local product.

The credibility of many of those units was zip but that didn’t matter, they were legal tender.

Then on Budget night 2014 Simon Bridges told us that as of that moment foresters couldn’t surrender New Zealand ETS units and buy international units.

That reinforced the risky nature of the investment, Government interference.

What the Government had against forestry I don’t know as business and government polluters could still access foreign units.

Then, a few days ago, Climate

Change Minister Paula Bennett released a discussion document on the ETS. It didn’t actually say a lot. Vague was a word I’d use to describe it.

It will continue to exempt heavy polluters like the Glenbrook steel works and the Tiwai Point smelter from a carbon price.

It suggests reopening the ETS to imported units.

That was a disaster in the past.

I’m sure it will be again in the future as units bought offshore will have absolutely no environmental credibility.

In addition, there is no floor price but there will be a mechanism for creating an alternative price ceiling, currently at $25.

The Wood Council of NZ reacted quickly saying “The uncertainty over the ETS might lead to a reduction in forest planting just when it needs to increase”.

It added what the Government was, in effect, saying was that foresters should delay planting for a couple of years as they might get a better ETS regulatory deal then.

Foresters need certainty and at the moment they don’t have it.

As I said, the Government review is vague and promotes uncertainty.

The issue is that NZ has a massive problem with its commitment to the Paris climate change agreement.

We’re increasing our emissions.

We need to change our emissions profile and plant more, not fewer, trees.

Back in October last year it was estimated by one official that our greenhouse gas bill could top $70

billion or almost 30% of our GDP. More recently we’ve had the figure of $14b over 10 years or $1.4b annually. It would be a considerable drain on our economy.

So we have a review of the ETS, which I’d suggest will achieve nothing and a $14b contingent liability because we’re actually increasing our emissions not decreasing them as we are committed to doing.

Love or hate the Parliamentary Commissioner for the Environment Dr Jan Wright, it is difficult if not impossible to argue with her logic.

The day after the Government’s big yawn over the ETS Wright released her report on climate change.

It is on the PCE website and well worth a read. Sadly it will be the last report presented by Wright as PCE. The report talks about how we can reduce our emissions and our $14b liability.

She investigated the United Kingdom approach to climate change where they reduced emissions considerably, by 38%, while ours increased by 64% over the same period.

She presented five initiatives for reducing emissions including emissions targets, climate budgets and a climate change commission.

The Government rejected the UK approach claiming “We are different”.

We are in several areas, as Wright explained, but the main difference to me is that the Brits have it right and are reducing emissions and we have it wrong

PARTING SHOT: Parliamentary Commissioner for the Environment Dr Jan Wright has made recommendations to set New Zealand up for dealing with climate change.

and are increasing them and, with it, our financial liabilities.

The cynic in me suggests the Government has put the entire issue in the too-hard basket and like many other problems will leave it to someone else to try to fix.

The optimist in me is quietly confident something positive will be achieved.

Generation Zero is a youth-led organisation in NZ that wants NZ to follow the UK model.

The Young Nationals agree with them. Labour’s Megan Woods strongly supports the PCE report as does NZ First.

Federated Farmers vicepresident and climate change spokesman Andrew Hoggard found useful suggestions in the PCE report.

A climate change commission like the UK’s has qualified support from Feds who also want the commission to be apolitical. I agree.

Wright wants broad political agreement on the way forward, which I strongly support.

That means National will need to soften its position, which makes the position of the Young Nats critical.

That will be interesting, the old versus the new.

Finally can I wish Wright a relaxed and happy retirement. She has achieved a lot.

Your View Alan Emerson is a semi-retired Wairarapa farmer and businessman: dath-emerson@wizbiz.net.nz

Freshwater genie out of the bottle?

Town Talk

Amy Williams

IN the summer of 1994 in Auckland we timed our showers, flushed the loo with buckets of recycled water and let our gardens wither.

A drought had severely affected Auckland’s water supply, and formal water restrictions were imposed.

I learned an important lesson about how precious and finite water was. But all through that crisis, my family didn’t once buy bottled water.

Even now I’m not sure who regularly buys bottled water in New Zealand.

Our tap water is drinkable – Havelock North’s contamination crisis aside – and I’d certainly much rather dip into my wallet for a coffee.

Yet according to the NZ Beverage Council, Kiwis are buying more bottled water with

purchases up by more than 25% in the past two years.

Whoever these Kiwis are, they’re not alone in this trend, with Americans reportedly consuming enough bottled water each week for the plastic to circle the globe twice round.

There’s no arguing bottled water is a profitable business. There are even water sommeliers at some of the world’s top restaurants.

Why then would NZ let export water-bottling companies use 28 million litres of its valuable pristine resource a year for free?

It is a finite resource, and it’s precious.

It’s an election year and public pressure says that’s about to change, and so it should.

Water-bottling companies will be charged 10c a litre if the Green Party gets into government in September, as the first stage of plans to charge commercial water users. Labour has also talked about charging commercial water users.

What might be downstream for the agricultural sector?

With numbers in the millions, the amount of pristine NZ water leaving our shores in drinking bottles sounds like an ocean. But actually, it’s a drop in the ocean compared with the amount of

POUR OUTCOME: Federated Farmers say charges for water in the agricultural sector would result in greater prices for milk, fruit, vegetables and meat for consumers.

water the agricultural sector uses each year.

One oft-quoted example is that it takes an estimated 250 litres of water to produce one litre of milk.

That’s a lot of water for a family like mine that downs eight litres of milk a week.

But there are fields to be irrigated, animals to be fed. It’s a different kind of business.

The agricultural sector needs water to survive, and yes, they’re indirectly profiting from using a

lot of water, but does that mean they should be lumped with a levy like those water-bottling companies? Can one commercial water user be charged and not another? What about limits on water-take rather than a charge per litre?

For me, and other city friends I asked, this issue raises more questions than answers. Yes, we agree water is precious and finite, but should it really be commoditised like oil and gold?

Water bottling proves it already is.

The undercurrent here is what’s gone before when we start talking about freshwater quality and farming. First, the OECD pointed at dairying for our rivers’ declining freshwater quality, and now we find out we’re giving the fresh stuff away.

Like it or not, the two issues are linked in the minds of many people, which means how farmers and the wider agricultural sector respond to this issue is important.

Federated Farmers has added its voice to the mix, saying any water charges to the sector would inevitably trickle down to the consumer, leading to increased prices for milk, fruit, vegetables and meat, not to forget electricity.

Still, a public perception test looms.

If the agriculture sector says we shouldn’t charge water-bottling companies a levy, then it could be perceived as a defensive position, rather than standing up for protecting our freshwater.

If it pays for water, the agriculture sector will be sending a clear message to this country and the rest of the world that our resource is valuable and worth protecting.

Either way, we’ll all pay in the end.

Opinion

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 7, 2017

Bottle is not the answer to loneliness From the Ridge

Steve Wyn-Harris

I’LL send an SOS to the world I’ll send an SOS to the world I hope that someone gets my Message in a bottle WHEN Sting from the band The Police sang this plaintive song in 1979 his protagonist was a lonely castaway sitting on his island yearning for love and company.

After a year he hasn’t had any response and begins to despair.

However, he walks out one morning and there on his beach are a hundred billion bottles washed up.

“Seems I’m not alone at being

alone, a hundred billion castaways looking for a home,” he warbles away.

The fact that our castaway still hasn’t got a direct response let alone the love he seeks appears to be cushioned by the fact that he feels better that everyone else is just as lonely as him.

I don’t know why Sting felt compelled to use a hundred billion, thus suggesting each one of us was biffing about 22 bottles each into the surf when a hundred million would have sufficed and the song would have still scanned.

This is playing through my mind because of Craig Sullivan.

Craig is a Scottish widower and had been feeling the very same pangs of loneliness as our castaway. His wife died 18 months ago.

Maybe he had heard the song or just thought it a good idea so he penned 2000 messages, popped them into glass bottles with screw-on lids and set off in his car around the coastline of the United

35

OH DEAR: Flooding the oceans with messages in bottles has got a lovelorn widower into trouble.

I seemed to be the only one amused.

Kingdom throwing them into the sea.

Helen Gill was enjoying a pleasant stroll with her boyfriend along Rhossili Bay in Wales when she came across 30 of them.

Unfortunately for Craig, Helen as part of coast clean-up immediately saw the folly in Craig’s plan.

Although touched by the romantic gesture she let him know there was more than enough waste in the oceans without him adding to it. Glass bottles were just going to break on the stony Welsh shores.

Scottish salmon fishermen

agreed when Craig’s bottles were found bobbing down the River Cree and they and plenty of others urged him to desist.

Which he wisely has done but all is not lost as he has had several approaches from likeminded women keen on going out on a date with him.

He probably should have stuck to Tinder like everyone else.

I had a message in a bottle moment myself back in 2000.

I’d found a deflated balloon with a young child’s name and address on it. So, I popped it in an envelope and sent it back to the owner. They lived in a little village in Wiltshire, not far from Stonehenge.

About a week later the BBC rang wanting to organise a television interview with me, the English

family and an expert who had said it was exceedingly rare for an item to cross hemispheres and that this small balloon had broken all previous records.

It was at this point I felt compelled to report that I had found the balloon in the little wood next to my uncle’s fishing cottage, also in Wiltshire, not on my farm as they assumed and had posted it back from New Zealand when I got home.

The BBC, the English family and the expert were all exceedingly pissed off with me. I seemed to be the only one amused.

Your View Steve Wyn-Harris is a Central Hawke’s Bay sheep and beef farmer. swyn@xtra.co.nz

Osama bin Laden has a lot to answer for From the Lip

Jamie Mackay

EVERY time I’m at an airport I curse Osama bin Laden as I go through the time-consuming and no doubt costly security screening system that was non-existent before he changed the world forever on September 11, 2001.

That is of course unless I’m flying out of a regional airport in New Zealand because any self-respecting terrorist wouldn’t bomb or hijack a plane out of Invercargill when he could drive up the road and do his evil best from Dunedin.

Besides, everyone knows terrorists are a bit like the airlines – they don’t really get too bothered about the regions.

However, I digress, because on a serious note airport security and, more importantly, security at our borders is something we should all take seriously.

Case in point is the latest biosecurity incursion, Mycoplasma bovis, following hot on the heels of the likes of myrtle rust, pea weevil and velvet leaf.

While not in the league of foot and mouth disease, which would result in a last one to leave turn the lights out scenario for NZ agriculture, M bovis is yet another salient reminder of why we need

WAIT OKAY: Jamie McKay doesn’t mind spending a bit longer in a queue if it helps biosecurity.

to be so vigilant at our borders.

And if that means standing in a customs biosecurity queue for a bit longer upon return from that overseas holiday then I’m happy to make the sacrifice for the good of the future of the NZ primary sector.

But I still haven’t forgiven you Osama.

Talking of holidays, I took some annual leave last week hoping I would not be missed or I would not miss anything on my radio show (if that sounds paranoid bear in mind 95% of all radio jobs are lost when you’re on annual leave, when they realise somebody smarter, younger and cheaper can do your job).

So last week not only did we have the M bovis outbreak to deal with but also the biggest political story of year – Jacinda Ardern.

To make matters worse my annual leave turned into bereavement leave with the death of my father-in-law, Max Wills.

One of my fond and most ironic memories I have of Max occurred circa 1989 when I was a young farmer in Riversdale, northern Southland.

Max had just recently retired, at the amazingly early age of 58, from his chosen occupation as a civil engineer.

His mind was naturally hardwired for new technology where mine was technology-averse and

much more oriented towards rugby, beer and farming. Nearly three decades later I still retain those passions while remaining basically technology inert.

Back in 1989 Max was at the bleeding edge of the home computer revolution. He’d already been through at least one Commodore PC and was in the process of upgrading to a new one with more Ram. Initially, I thought he was talking about an easy-care Romney until he explained to me it had something to do with processing capacity. I knew a bit about that because at the time we were having a hell of time getting stock into the freezing works.

Suffice to say, being the incredibly generous man he was, Max offered me his old computer, no strings attached. He even volunteered to bring it south from his Tauranga base and install it on his next four-wheel-drive jaunt around the South Island high country. He reckoned it could be useful to me on the farm.

For some reason my response to him, all those years ago, has stuck in the forefront of my mind.

Showing a complete lack of foresight, I said I’ll never need a computer in my farming career.

All the information I ever needed would be contained within the confines of my hand-written farm diary.

Mercifully, Max persisted and insisted. Within a year I was writing, albeit in a very awkward two-fingered typing manner, a weekly column for my local paper and I’ve been doing it ever since and have wound up in this national publication.

For someone who could see no future for a computer in his working life back in 1989, I now find myself staring at one for most of my working day.

Max, I wasn’t smart enough to take up the initial offer of the computer but I didn’t need to be asked twice when it came to the daughter. For that I am eternally grateful. Rest in peace my friend.

Your View Jamie Mackay is the host of The Country that airs on Newstalk ZB and Radio Sport, 12-1pm, weekdays. jamie@thecountry.co.nz

World

36 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 7, 2017

Fonterra eyes up the No 1 spot FONTERRA has intimated it could become Australia’s largest milk processor.

It revealed it had the capacity to handle 2.3 billion litres a year but would keep it at 1.9-2b litres this season.

The revelation from Fonterra Australia managing director Rene Dedoncker coincided with a farmgate milk price step-up.

The rise, of 20 cents a kilogram of milksolids, pushed the average weighted price for Fonterra suppliers to $5.50/kg MS, the upper end of rival Murray Goulburn’s season forecast.

Fonterra also promised another 40c/kg MS incentive on top of its farmgate price.

Dedoncker said Fonterra processed 1.5b litres in 2015-16 and was on track for 2b litres.

Fonterra said 3% to 4% of its milk growth would come from existing suppliers.

Last month, Murray Goulburn confirmed its milk intake would now be 2.3b litres, 34% down from 2015-16 levels.

It was understands more farmers were expected to leave Murray Goulburn this month and there were waiting lists of Murray Goulburn farmers seeking to join other processors.

Fonterra confirmed it expected new suppliers to join this month.

For the first time, Fonterra was in the box seat and could process more milk than Murray Goulburn.

CAREFUL: Fonterra doesn’t want unnecessary risk so won’t take milk for the sake of milk, Australian managing director Rene Dedoncker says.

Dedoncker said Fonterra could handle the extra milk, with the exception of two weeks at its Wynyard plant in Tasmania.

The additional peak milk in Tasmania would be balanced across its Wynyard and Spreyton sites, with Spreyton to fill a new order for 1000 tonnes into Thailand.

“What we don’t want is unnecessary risk.

“We don’t want milk for the sake of milk,” he said.

“We’ve always said 1.9 to 2

(billion) gives us the right balance ... we talk 2.2 to 2.3 but that introduces risk because we haven’t run facilities at that.

“A year into creating confidence, the last thing they (farmers) need is distraction and challenge.”

Milk certainty helped deliver the farmgate price step-up last week, Dedoncker said.

But he warned the rising Australian dollar could affect the forecast milk price of up to $5.80/ kg MS (excluding the 40c/kg MS incentive).

And Fonterra’s suppliers would have a vote on a new farmer representation model to replace the Bonlac Supply Company.

Dedoncker said it was “time for a change” and a new model would represent a “clear departure from the past”.

The BSC agreement began in 2005 when Fonterra took total control of the Bonlac co-operative.

At the time the agreement included a clause its farmgate milk price would no less than that offered by Murray Goulburn.

Fonterra cut its price late in 201516 following the MG cut.

The Bonlac agreement was due to expire in 2019.

Dedoncker said the agreement was struck initially because farmers did not want to be “disadvantaged” but it “no longer serves our current reality”.

“The reality is if we were operating to that model and pricing to the largest processor we know where we would be pricing today, right?” he said.

“That’s not fair and not appropriate.”

Admitting there was an emotive aspect to the Bonlac agreement he said farmers’ views varied on its role but ultimately moving away from it was also a business decision.

“Some (farmers) are very proud members of BSC and are there for the journey, others want to see change,” he said.

Dedoncker said the intention

We won’t be relying on what somebody else does.

Tony Marwood Bonlac Supply Co was to introduce “significantly greater farmer involvement” and the yet-to-be-named advisory board would have a subset of members, which would get further insight into how Fonterra would work on its pricing to market.

BSC chairman Tony Marwood said the BSC model was “fit for purpose” in 2005 but no longer.

He said a change would provide benefits.

“It will give farmers certainty around their milk price, around transparency and it will be market-related and we will have the ability to give our farmers a lot clearer signals a lot earlier.

“We won’t be relying on what somebody else does,” he said.

“I guess another thing is we all need to grow up, Fonterra and BSC, and we need to run our own race. We think what we are about to move into is going to be much better for our farmers. We will still have that independence. We will still be the farmers’ voice.” www.weeklytimesnow.com.au

Australia dairy accused of GM ‘hypocrisy’ VAST quantities of genetically modified soybean and canola meal are being fed to Australia’s milking cows.

A stockfeed manufacturer has highlighted what he called the dairy industry’s hypocrisy in opposing the release of highenergy genetically modified (GM) ryegrass while turning a blind eye to the widespread feeding of GM canola and soybean meal to milking cows.

“There’s more than half a million tonnes of canola meal going into stockfeed and it’s nearly all mixed (GM and non-GM),” the feed mill operator said, who wished to remain anonymous.

In 2015-16 the Australian dairy industry used 3.06 million tonnes of stockfeed that contained 1020% canola or soybean meal as its main source of protein.

Soybean meal is sourced from Brazil and Argentina, which Stockfeed Manufacturers’ Council of Australia chief executive John Spragg said was nearly all GM. In a report published in October, Spragg found Australia imported 700,000-800,000 tonnes of the soybean meal each year, which goes into human food manufacturing and full-fat soybean meal for animal feeding.

The GM soybean meal is used as a key source of protein by Australia’s pig, poultry, beef and dairy industries.

Australia’s Office of Gene

MIXED MESSAGE: Australia’s Office of Gene Technology Regulator has issued five ongoing import licences for GM soy, maize and canola destined for use in dairy cow stockfeeds.

Technology Regulator (OGTR) has issued five ongoing import licences for GM soy, maize and canola destined for use in stockfeeds.

The OGTR has also ruled locally-grown GM canola and cottonseed meal can be used in stockfeed and are “as safe as their conventional counterparts and may be used in the same manner”.

The regulator doesn’t impose any labelling requirements for

the GM grains authorised for commercial release or import.

Spragg said non-GM canola meal was available from a couple of crushers, but it was not available from larger operators.

He said some dairy processors had limits on GM stockfeed contents, while others had none.

Dairy giant Murray Goulburn (MG) has imposed a 5% limit on GM as a percentage of a dairy cow’s total feed intake – stockfeed, pasture, hay and silage – which

effectively allows farmers to freely use GM canola and soybean meal.

One key industry source said MG had led the campaign against the release of GM ryegrass in Australia, which researchers have shown could earn farmers up to $750 a hectare extra.

An MG spokesman said its policy on GM was introduced in 2000 and was guided by customer and market requirements.

MG’s policy states: “Whilst MG supports research into genetically

modified technologies being undertaken by bodies including DairyBio, this does not extend to automatically accepting a path to market for these products.”

Fonterra acknowledged the use of GM material in stockfeeds.

However, the Kiwi giant said greater consumer awareness and acceptance of GM stockfeeds was needed before it would support commercialisation of GM pastures. www.weeklytimesnow.com.au

World

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 7, 2017

CHINA has banned imports of Australian meat, apparently because Foreign Minister Julie Bishop said the wrong thing about the South China Sea. China put temporary bans on six beef and sheep processing plants in Australia owned by five different companies.

Trade Minister Steve Ciobo said it was “a very significant situation” and the Government had “mobilised quickly” to engage Chinese authorities on the issue He confirmed there were a number of cargoes of beef at sea on the way to China from affected processors.

“It just reinforces the need to resolve this quickly,” he said.

“We’ve got all options on the table.”

The six plants were JBS’ Beef City and Scone plants, Thomas Food International’s facility in Murray Bridge, South Australia, Northern Co-operative Meat Company’s Casino processor and the Kilcoy Pastoral and Australian Country Choice plants in Queensland.

The Australian Meat Industry Council said the suspensions applied to chilled and frozen beef and sheep meat from the six processing plants.

It understood the suspensions related to product sent from July 24 onwards.

Ciobo said he had spoken to almost all of the chief executives of the companies affected and to the Australian embassy in Beijing.

“We have tens of millions in trade affected, it could even be more than 100 million,” he said.

“The Chinese have indicated concerns about labelling inconsistencies ... we take Chinese concerns seriously and we’ll be engaging with them.”

But meat processor sources

claimed the bans were in retaliation for Bishop’s comments on freedom of navigation in the South China Sea. A spokeswoman for Bishop said Chinese officials had not raised any concerns with the foreign minister or the Department of Foreign Affairs and Trade in relation to any recent statements.

“Australia’s position on the South China Sea has been consistent over a number of years,” she said.

One meat processor said the ban came as China allowed access to up to a dozen new United States beef plants, after the US regained access to China’s beef market in May. And the issue centred on “equivalence”, a trade agreement term where countries agreed their different technical regulations achieved the same outcomes, to eliminate dubious trade barriers.

The China-Australia Free Trade Agreement came into force in December 2015.

The meat processor claimed ChAFTA did not have an equivalence clause, complicating resolution of the issue.

“It is a minor hiccough … if this happened in the US, the issue would be able to be corrected with the exporter without any trading halts,” he said.

AMIC said China was an important meat export market for Australia, taking 160,000 tonnes of beef and sheep meat valued at about $970 million in 2015-16.

China recently suspended the export licence on an infant milk formula plant acquired by Bellamy’s Organic, an Australian dairy exporter. That issue had yet to be resolved. www.weeklytimesnow.com.au

US dairy cries foul over ‘spelled’ milk A HEATED battle is under way in the United States over use of the word milk by beverages made from plants including soya, almonds and rice.

While a ruling by the European Court of Justice last month stated most plant-based food could not be sold as milk in Europe, recent rulings have gone the opposite way in the US. In May, a California judge said it was implausible consumers would think almond milk would have nutritional equivalence to dairy milk.

“If the consumer is concerned about the nutritious qualities of the product, they can read the nutrition label,” he said.

This was followed by a separate ruling in the state where the judge said it was up to the US government, not the courts, to decide on the use of the word milk on products.

The dairy industry argued the US had already ruled on the matter, with US regulations defining milk as “the lacteal secretion obtained by the complete milking of one or more healthy cows”.

However, the body in charge of food regulations, the US Food and Drug Administration (FDA), has so far not enforced these rules. This failure has led to lobby

THE REAL DEAL: United States food regulations define milk as “the lacteal secretion obtained by the complete milking of one or more healthy cows”.

groups and politicians joining forces to push for action at a federal level in the US. The Dairy Pride Act, proposed earlier this year, called on US officials to ban use of the word milk on plant-based products.

The legislation is being led by Tammy Baldwin, a senator for Wisconsin, the second-biggest dairy-producing state in the US after California. It has backing from both Democrats and Republicans.

“Imitation products have gotten away with using dairy’s good name for their own benefit, which is against the law,” Baldwin said.

“Mislabeling of plant-based

Turbine or not turbine A FARMER might be forced to remove a wind turbine after judges ruled the impact on a listed church had been ignored.

The church was a mile away and the turbine could not be seen from it because a hill was in the way.

But Britain’s Court of Appeal ruled Powys County Council had not considered the effect of both the church and turbine appearing in distant views of the area.

It ordered the council to reconsider the planning application.

The council might have decided the impact would be acceptable but it “had to confront the issue” and its failure to do so was “deficient and therefore unlawful”, the court ruled.

Free trade deemed vital for Australian prosperity DAIRY, wool and meat exports would be the hardest hit if protectionist trade policies spread worldwide, Australia’s Productivity Commission warns.

A report by the government’s economic think-tank showed significant increases in United States President Donald Trump-style protectionism would trigger a global recession, from which Australia would “not escape unscathed”.

“Rising protectionist sentiment and actions in some countries may suggest to some that a rethink of Australia’s commitment to free trade is needed,” the report said.

“They would be wrong.”

Instead, Australia should aim to work with “a coalition of countries” to “resist protectionist pressures” with the

Regional Comprehensive Economic Partnership the most likely candidate.

The commission modelled a scenario where all countries raised tariffs by 15 percentage points. It found global trade would drop by 22%.

The largest declines would be seen in dairy, with a 38% drop; followed by wool and non-cattle meat at about 37%. Cattle meat trade would drop by more than 34%.

The same scenario indicated median weekly household incomes in Australia would fall almost $1500 a year and almost 100,000 jobs could be lost.

It argued that regional trade agreements were vital for Australia in the face of a rise in protectionism.

Trade Minister Steve Ciobo said it was “evident we cannot afford

a widespread backsliding into protectionism”.

“Our ability, as a country of less than 25 million people, to sell our goods and services to billions of other people around the world is what makes us rich,” Ciobo said.

“For the one in five Australian jobs that are now trade-related, the importance of open markets means even more to their household budget.”

GrainGrowers trade and economic manager Luke Mathews said free trade must stay high on the agenda, with 60% of all Aussie grain sold offshore.

“Access to strong, open and fair international markets is critical for both the current and future success of the Australian grain industry,” he said. www.weeklytimesnow.com.au

products as milk hurts our dairy farmers.”

Dairy farmers have rallied round the act, hoping it will gain support from other politicians and force the FDA to act.

“For too long the FDA has turned a blind eye to the misbranding of imitation dairy products,” Baldwin added.

President and chief executive of the National Milk Producers Federation, Jim Mulhern, added “none of these imitators provide the same high quality and quantity of nutrition offered by real milk”.

Joining the fray, Sue McLusky, co-owner of Fair Oaks Farms, a major Indiana milk producer, said that “milk was milk until people stole our identity”.

“Now we have woken up and we want our name and all the goodwill back,” she said.

“For too long farmers saw milk as a good thing and did not need to fight for space on the dinner table. We need to tell people our story.”

While the legislation is unlikely to rise up the priority list of members of US Congress to be debated and made into law on its own, it could be added to other legislation such as the US Farm Bill, due to be renewed next year.

UK Farmers Guardian

0076663

200x71.67

agrievents AWDT’s Escalator 2018 Applications for AWDT’s Escalator 2018, growing primary industry leaders, are now open. Applications close September 30, 2017 To apply: Admission to Escalator is by written application.

Places are limited to 14 each year. For an application pack and more information please contact: www.awdt.org.nz/programmes/escalator/ Phone: 06 377 4560, Hannah@awdt.org.nz Thursday 17/08/2017 AWDT Understanding Your Farming Business Three full-day workshops and an evening graduation ceremony run over four months Venue: Hunterville Contact: anna@awdt.org.nz or 06 377 4560 Website: To register for the programme go to http://www.awdt.org.nz/programmes/understanding-yourfarming-business/ Wednesdays 23/08/2017, 20/09/2017, 18/10/2017 & 15/11/2017 AWDT Understanding Your Farming Business 3 full-day workshops and an evening graduation ceremony run over four months Venue: Moutere Hills Community Centre, Upper Moutere Contact: anna@awdt.org.nz Website: To register for the programme follow this link http://www.awdt.org.nz/programmes/understanding-yourfarming-business/ Wednesdays 13/09/2017, 11/10/2017, 08/11/2017 & 06/12/2017 AWDT Understanding Your Farming Business 3 full-day workshops and an evening graduation ceremony run over four months Venue: Waverley Contact: anna@awdt.org.nz Website: To register for the programme follow this link http://www.awdt.org.nz/programmes/understanding-yourfarming-business/ Thursday 27/10/2017 to Saturday 29/10/2017 Waikato A&P Association - 125th Jubilee Show Venue: Claudelands Showground, Hamilton Entries and contact: Trish Lloyd – 07 855 4776 or accounts@waikatoaandp.co.nz Website: www.waikatoaandp.co.nz

Should your important event be listed here?

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Chinese put ban on Aussie meat exports

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bayleys.co.nz Contributor to realestate.co.nz

Real Estate

THE NEW ZEALAND FARMERS WEEKLY – August 7, 2017

farmersweekly.co.nz/realestate 0800 85 25 80

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Contributor to realestate.co.nz

An opportunity to purchase as a going concern this is a purpose built hydroponic lettuce and herb growing business which has fully automated systems.

The galvanised steel framing and micro plastic film 4-bay growing houses cover an area of 2400m2.

In addition to the main greenhouse there are 10 x 18 growing houses which are fully automated.

Supporting buildings consist of regulated propagation rooms, chiller room, staff room along with a wide range of plant.

Fully managed by current staff with contracts in place to supply clients on a weekly basis.

Though there is no accommodation on this property consisting .9167 hectares, there is a nice building site or you could reside in Whangamata township.

• • • • • • •

Situated south of Whanganui is this 175ha opportunity 20 aside herringbone dairy and 300 cow yard with adjacent feed pad The herd is split calved and supplies milk to Open Country Bore that supplies water to stock troughs, dairy and houses Large machinery shed, large silage bunker Three-bedroom family home and second staff home Call Les to inspect – Asking 3.1 million

Sallan Realty

www.whangamatarealestate.co.nz – ref 7256 For further information contact Murray Cleland 021 950 445

GABBANI OLIVES

• • • • • • •

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Spectacular 19.6 acre lifestyle property Sought after location, minutes from Foxton village Tuscan style two story, four-bedroom family home Panoramic views of the property and adjoining ranges Award winning olive grove in full production Secure your very own piece of paradise Call Les to inspect

Ltd

• • • • • • •

Well run 174ha dairy farm in the Tararua District Currently running 300 Holstein Friesians Has produced up to 139,000kgs milk solids consistently Bore at dairy supplies high pressure water Top quality 32-aside herringbone dairy shed Two very good family homes with views Call Les to inspect

LES CAIN

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OPPORTUNITY TO GROW

Supporting documents are available for genuine purchasers. Price by negotiation.

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HYDROPONICS LETTUCE & HERB GROWING BUSINESS

SALES CONSULTANT 0274 420 582 www.sallanrealty.com Your Farm Sales Specialist

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farmersweekly.co.nz/realestate 0800 85 25 80

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Auction 5th September 2017 1 PM on Site (unless sold prior) View By Appointment www.ljhooker.co.nz/ ljhooker.co.nz/8JZHFA 8JZHFA

Real Estate

THE NEW ZEALAND FARMERS WEEKLY – August 7, 2017

Ngahinapouri 25 Cochrane Road Boutique Dairy Farm • 53 HA Boutique dairy farm on elite Horotiu sandy loam soils with excellent fertility.

• 327m² executive Hinuera stone homestead with open plan living, inground salt pool and views of Mt Pirongia.

• Excellent infrastructure on the farm includes, 12 ASHB shed, 180 cow herd home, implement sheds and a 70m² cottage.

• Mostly flat contour with very tidy fencing and races, plus attractive tree plantings.

• Located within an easy drive to Hamilton and one kilometre to a decile 10 primary school at Ngahinapouri.

Garry Webb 022 3522 604 Russell Bovill 027 2739 025 LJ Hooker - Hamilton 838 2039

• Multi use options, carry on dairy operation or equine, stud farm, grazing unit. The choice is yours.

OPEN DAYS: Wednesday 9th & 16th August 12-1PM - Sunday 20th - 1-2 PM

George Boyes & Co Ltd George Boyes & Co Ltd Licensed REAA 2008. All information contained herein is gathered from sources we consider to be reliable. However, we cannot guarantee or give any warranty about the information provided. Interested parties must solely rely on their own enquiries.

New Zealand's leading rural real estate company

New Zealand’s leading rural real estate company

Licensed under REAA 2008

Licenced under REAA 2008

TENDER

Something For Everyone • • • • • •

75 hectares Large five-bedroom family home Four car garaging Good implement sheds Old disused cowshed (great for calf rearing) Fertile flats

Dargaville DEADLINE SALE

Plus GST (if any) (Unless Sold Prior) Closing 2.00pm, Tuesday, 5 September

www.pggwre.co.nz ID: DAG26479 Megan Browning B 09 439 3344 M 027 668 8468

farmersweekly.co.nz

Choose The Options To Suit

Komata

Option A: • 180ha dairy unit supplying OCD • 30ASHB shed and tidy three bedroom cottage Option B: • 57ha elevated rolling hill grazing block on Strange Road.

• A two bay shed, cattle yards and load race.

Option C: • Three bedroom 1900´s Kauri villa home • Situated on Maratoto Road, sitting on 4.3ha (STS)

TENDER (Unless sold prior) Closes: 4.00pm, Friday, 25 August PGG Wrightson Real Estate, Morrinsville OPEN DAY 11.30-1.00pm, Tuesday, 8, 15, 22 Aug, MARATOTO ROAD

THE NEW ADDRESS FOR RURAL REAL ESTATE Stay up-to-date with the real estate market with

Allister Coombe B 07 889 0167 M 027 507 7622

pggwre.co.nz

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farmersweekly.co.nz/realestate

A tender may be for Option A, B, C, or for all three. www.pggwre.co.nz ID: MOR25634

pggwre.co.nz

Our ideal candidates may have some experience in either various heavy machinery and light plant, general civil labour or truck driving (HT minimum class 3).

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A warm, sunny three-bedroom home and large 4-bay garage available on the property.

EXPERIENCED FARM HAND – FULL-TIME POSITION

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Ngāti Pāhauwera Commercial Development Limited seeks an experienced Farm Hand to work alongside the team managing 2500 hectares of sheep and beef farms. This role is predominantly based at Pihanui Station, a 1250ha farm located 30km inland from Wairoa but from time to time may involve assisting staff on other farms in the area.

Reporting to the Stock Manager on Pihanui Station, the ideal candidate will: • Be a competent and experienced fencer • Be experienced in water reticulation • Be experienced in stock related tasks • Think for themselves and be able to work unsupervised • Focus on high outputs of quality work • Enhance and contribute to our focus on the health and safety for all parties • Have knowledge of tikanga o Pāhauwera. Te Reo Maori is desirable • Lives and promotes our values and ethics: Whānaungatanga, Kaitiakitanga and Manaakitanga.

If you are passionate about working with a progressive organisation and our Iwi and can demonstrate the required attributes, we would love to hear from you.

To be considered for the role applicants need to supply: • A current CV • A covering letter that tells us why we should consider you • Two referees A comfortable three-bedroom cottage is available for the successful applicant. Remuneration will be set according to skills and experience.

Enquiries and full employment descriptions can be obtained by contacting Jonathan Neilson (Jonathan.neilson@npdt.co.nz or 027 237 5687).

Applications are to be received by Jonathan no later than 5 pm on Friday 18th August, 2017.

Candidates wishing to work for a progressive company and who like the odd challenge along the way would be perfect!

Email your CV to: lee@sxhort.co.nz

Shepherd

White Rock Station

Tauwhareparae Farms Ltd (Shepherd General)

Experienced shepherd required to join a motivated team. White Rock Station is a large sheep and beef property on the South Wairarapa coast, 50km from Martinborough.

Some stock work will be done on horses.

Excellent single accommodation, in an environment second to none.

For more information contact David Mills.

This position offers 90 percent stock work and 10 percent general work and will be an awesome stepping stone to further your career and skills in the sheep and beef industry. Both on farm and Primary ITO training is fully encouraged and supported.

Phone 06 307 8895 or post CV with two references to White Rock Station, RD 2, Martinborough by Monday 21 August.

The successful applicant will: • Be self-motivated, reliable and honest with a strong work ethic • A “can do” attitude and be comfortable working in a remote location • Have an good team of working dogs • Enjoy being part of a team and have great communication skills • Have excellent stock handling skills • At least two years farming experience • Enjoy mustering on horse/quad and be passionate about farming • A proactive attitude towards health and safety • Be drug free Excellent remuneration package along with single accommodation and cookhouse. Excellent rural community, and great hunting, fishing and sports clubs in the district.

TFL operates a drug free work place and a preemployment drug test will be required.

For more info call Keven Delegat 027 477 7917 or send CV and references to gm@tpfarms.co.nz

RUN OFF YOUR FEET? Advertise your vacancy in The NZ Farmers Weekly Plus receive added value of online free of charge* Phone Debbie Brown 0800 85 25 80 or email classifieds@nzx.com

*Available for one month or until close of application

The company has a drug & alcohol policy and a pre-employment medical and drugs/alcohol test will be required.

The successful applicant will require: • 4 working dogs • good stockmanship

We are currently seeking a highly skilled and motivated Shepherd General to join our team. TFL is an 11,500ha (5700 effective) property farming Sheep and Beef, wintering approximately 60,000 stock units. We are situated 50 minutes inland of Tolaga Bay.

You need to have the following skills: • Fencing – new and R&M • Tractor driving • A positive attitude • A good work ethic A full and current class 1 driver’s license is essential. Ingleby NZLP is a strong supporter of health and safety and encourages employee participation and team work. On site accommodation of a 3-bedroom home is available Remuneration will be set according to skills and experience.

LK0088639©

A remuneration package tailored to suit the successful applicants skill-set and experience.

If you don’t have a CV call Dan on 021 662 356

LK0088628©

The successful applicant will have the following attributes: • A passion for agriculture and a desire to work with dairy youngstock in large numbers • Basic farming practices (including machinery, pasture and stock). Training and development will be given • Positive attitude and excellent work ethic, with the ability to work efficiently on your own and effectively as part of a small team. Excellent communication skills and initiative • Some shepherding experience with 1-2 competent working dogs, or willingness to work dogs • Respect and understand Health and Safety protocols • Current NZ drivers licence • Excellent references

If you have a CV please email this through to Dave at: daveclark930@gmail.com

LK0088677©

Systems include: Youngstock and beef finishing on specialised crops – Advanced winter feeding system – silage production.

Experienced Fencer required. Permanent, full time position. This role would suit someone who is fit and willing to turn their hand to a broad range of tasks for the ongoing development and improvement of the farm.

Matahiia Station is a sheep and beef property located north of Gisborne.

Excellent opportunities to grow your skills and income with our team focused, progressive, respectful and values-based company. References required.

If you have questions please call: Paul Rowe, Farm Manager on 06 864 0813 Applications should include an updated CV and a covering letter outlining your skills and experience to: matahiia@ingleby.co.nz Further information about Ingleby can be seen on their website www.inglebyfarms.com

Applications close: 14 August 2017

SHEPHERDS We are looking for dedicated and motivated Shepherds to join our team in the Hawke’s Bay. Positions available: • Shepherd – Permanent • Shepherd – Fixed Term (August to November) As a Shepherd, you will work within a small team, under the guidance of Managers who are keen to see staff expand their skills and achieve their goals. There is also scope for the right person to work across both the livestock and cropping enterprises.

www.farmersweeklyjobs.co.nz

Five minutes from Mossburn, Northern Southland.

Schools and shops to cater for most needs, within an hour of Invercargill, Gore, Te Anau and Queenstown.

Fencer

Fencing and outdoor working skills required for developing kiwifruit orchards in Te Puke to Waihau Bay areas.

Ag jobs at your fingertips

Situated on the outskirts of Mossburn township, carrying approximately 2000 R1s and R2s, plus bulls and beef cattle varying in numbers depending on the season, a diverse and progressive 2000 acre drystock operation.

Move to the Bay Of Plenty!

41

LK0088456©

Busy Auckland-based civil construction company is looking for three additional people to add to its close knit team for varied roles that can include, truck driving, machine operating and general civil labour.

DAIRY RUN OFF – NORTHERN SOUTHLAND

classifieds@nzx.com – 0800 85 25 80

Livestock policies consist of winter trade lamb, bull beef and Wagyu cattle supplying grass-fed markets and feedlot finishing programmes. A range of paddock sizes provide good mustering opportunities as well as the chance for further development in intensive finishing systems, pasture management and modern farming practices.

Farm Locations: • Poukawa Valley – about 20 minutes south of Hastings or 10 minutes north of Otane • Fernhill – about 15 minutes from either Hastings or Taradale The farms are close to town allowing staff to enjoy the best of both worlds and providing the added benefit of giving family and partners choice in regards to schooling and work.

The successful applicant will bring: • A sound level of stockmanship • 2 to 4 capable working dogs • Self-motivation to work independently • Good communication skills • Ability to follow and implement health and safety protocols • Willingness to learn new technologies • Excellent work ethic and reliability • Pride and respect for their workplace A competitive remuneration package with employee benefits will apply based on experience and skill level.

Bring your great attitude and energy to our progressive farming business

LK0088660©

Civil construction & Machine operators / Drivers

FARM WORKER/ STOCKPERSON

Phone: Laurie Ngakai, 027 525 5644 Applications with CV’s emailed to: runoffmossburn@yahoo.co.nz Close date 21st August, 2017

Employment

LK0088543©

THE NEW ZEALAND FARMERS WEEKLY – August 7, 2017

Email your CV and cover letter, with “Shepherd” in subject line, to: hayden@brownrigg.co.nz Or apply online via our website: www.brownrigg.co.nz If you have further questions call Hayden Ashby 0272 931 682

classifieds@nzx.com – 0800 85 25 80

Classifieds

ANIMAL HANDLING

ATTENTION FARMERS

DOGS FOR SALE

DOGS WANTED

FLY OR LICE problem?

Electrodip - The magic eye sheepjetter since 1989 with unique self adjusting sides.

Incredible chemical and time savings with proven effectiveness.

Phone 07 573 8512 w w w. e l e c t r o d i p . c o m

www.gibb-gro.co.nz GROWTH PROMOTANT $5.85 per hectare + GST delivered Brian Mace 0274 389 822 07 571 0336 brianmace@xtra.co.nz

BRIAN BURKE, NZ Champ 1984 and 5 times NZ Champ finalist, available to train your working dog.

In three weeks he will transform your heading dog into a productive asset for the farm. Contact Brian 06 343 9561 for further details and pricing (heading dogs only).

HEADING, HUNTAWAY, handy, backing dogs or bitches, 2-6 years. Top money paid. Phone Ginger Timms 03 202 5590 or 027 289 7615.

IN SOUTH ISLAND! 2-yr Heading dog. Pulling sides, good distance, capable dog, Moves stock! $2875. 07 315 5553. Mike Hughes.

SERIOUS BUYER. BUYING 300 dogs form Kaitaia to Gore annually!

Quick easy final sale.

No trial required. No one buys or pays more!

Payment on pick up! 07 315 5553. Mike Hughes.

BALAGE FOR SALE

CRAIGCO SHEEP JETTERS. Sensor Jet. Deal to fly and Lice now.

Guaranteed performance.

Unbeatable pricing.

Phone 06 835 6863. www. craigcojetters.com

ANIMAL HEALTH www.drench.co.nz farmer owned, very competitive prices. Phone 0800 4 DRENCH (437 362).

ANIMAL SUPPLEMENTS APPLE CIDER VINEGAR, GARLIC & HONEY. 200L - $450 or 1000L - $2000 excl. with FREE DELIVERY from Black Type Minerals Ltd www.blacktypeminerals. co.nz

99 BALES. Good quality.

Pahiatua area. Phone 06 359 3715.

DOGS FOR SALE 0% FINANCING ON any dog paid in full! 50 dogs in stock, $1000-$3500.

View online or On-farm.

Deliver NZ wide. Trade ins welcome. 30 day exchangeable trial. 07 315 5553. Mike Hughes.

3-YEAR-OLD b&t Huntaway. Very well bred.

Will do everything. Great backing dog, potential to trial. Phone 021 376 940.

HEADING BITCHES x 3. All working. Selling because of ill health. Phone 06 372 7119.

BLACK KELPIE BITCH 6 months reg, vacc and microchipped keen as $700. Other Kelpie pups available in 3 weeks.

Phone 09 439 6720.

ONE 7-MONTH-OLD very well bred Huntaway pup ready to start AND one 8-month-old Heading bitch ready to work. Phone 06 388 0212 or 027 243 8541.

SOUTH ISLANDERS don’t miss the bus!

Shipping dogs from Picton to Gore 23/8/17.

View online and delivered to you.

Ask your neighbours about our selection and service. 07 315 5553. Mike Hughes.

YOUNG HEADING and Huntaways. Top working bloodlines. View our website www.ringwaykennels.co.nz Join us on Facebook: Working dogs New Zealand.

Phone 027 248 7704.

12 MONTHS TO 5½-yearold Heading dogs and Huntaways wanted. Phone 022 698 8195.

FARM MAPPING YOUR FARM MAPPED showing paddock sizes.

Priced from $600 for 100ha. Phone 0800 433 855. farmmapping.co.nz

FERTILISER DOLOMITE, NZ’s finest Magnesium fertiliser.

Bio-Gro certified, bulk or bagged. 0800 436 566.

THE NEW ZEALAND FARMERS WEEKLY – August 7, 2017

FOR SALE DOG/PET FOOD. Lamb/ Beef and chicken products.

All natural - raw - no preservatives or additives.

NOSLOC PRODUCTS. Ex-freezer Te Kuiti. For information and prices www.nosloc.com or phone 07 878 6868.

WINDMILLS for water pumping. Ferguson Windmills Company. www.windmills.co.nz sales@windmills.co.nz Phone 09 412 8655 or 027 282 7689.

BOOK AN AD. For only $2.00 + gst per word you can book a word only ad in The NZ Farmers Weekly Classifieds section. Phone Debbie Brown on 0800 85 25 80 to book in or email classifieds@nzx.com

FORESTRY

GOATS WANTED

FERAL GOATS WANTED. All head counted, payment on pick-up, pick-up within 24hours. Prices based on works schedule.

Experienced musterers available.

Phone Bill and Vicky Le Feuvre 07 893 8916.

GOATS WANTED. All weights. All breeds.

Prompt service. Payment on pick up. My on farm prices will not be beaten.

Phone David Hutchings 07 895 8845 or 0274 519 249. Feral goats mustered on a 50/50 share basis.

GRAZING WANTED FOR UP TO 550 Hoggets for 8-12 weeks, lower NI. Phone 06 359 3715.

WANTED

NATIVE FOREST FOR MILLING also Macrocarpa and Red Gum, New Zealand wide.

We can arrange permits and plans. Also after milled timber to purchase.

NEW ZEALAND NATIVE TIMBER SUPPLIERS (WGTN) LIMITED 04 293 2097 Richard.

FOR SALE SOMETHING? 0800 85 25 80

Under Woolshed/Covered Yards Cleaning Specialist www.underthewoolshed.kiwi

WANTED FOR FIREWOOD TREES. BLACK WATTLE, Blackwood, Casuarina, Gums etc wanted. Clean up guaranteed. Waikato / BOP areas.

Tokoroa based.

Phone 07 886 6387.

WANTING TO RENT I AM “MR FIX IT”. Wanting to rent empty section / backyard or land, on which to place a brand new 12m x 4m transportable home in the Auckland Area. Must have off road parking.

Access to power supply.

Fresh water and sewage.

Phone Merv at: 027 444 7426. Or email: merv. jack@gmail.com

LAMB DOCKING / TAILING CHUTE

With automatic release and spray system. www.vetmarker.co.nz 0800 DOCKER (362 537)

T HI NK P R E B U I L T

NEW HOMES

Now working Northern Hawke’s Bay: Fern Hill, Tutira & Wairoa areas

FROM THIS

SOLID – PRACTICAL WELL INSULATED – AFFORDABLE Our homes are built using the same materials & quality as an onsite build.

Easily transported to almost anywhere in the North Island. Plans range from one bedroom to four bedroom First Home – Farm House Investment – Beach Bach

• LEASE • BUY • SERVICE • COMPLIANCE LK0088655©

To date over 600 woolsheds big or small – give us a call.

HOUSE FOR REMOVAL wanted.

North Island.

Phone 021 0274 5654.

VETMARKER

SELLING

SCOTTY’S CONTRACTORS 0800 383 5266

PROPERTY WANTED

LK0088657©

42

TO THAT

New Zealand’s Number 1 service provider for under woolshed cleaning for more than a decade

NEW Combi Trailer

• Road legal • Swing-arm suspension • 400ml ground clearance • 2 minute setup • Lowers flat to ground • Stone guard converts to roof • Fits existing Combi Clamps

Notice of Election 2017 Board of Directors Election Nominations are called for candidates to stand for election for the director positions to represent Areas 1 and 6 as described below. The incumbent directors for these areas are due to retire by rotation later this year and both have confirmed they intend to stand for re-election.

Cattle Handling Equipment

Standard Crush, Vet Crush, Weight Crate, Auto Head Yoke, Sliding Gates • Heavy Duty • Hot dipped galvanized • Efficient • One-man operation • Sure catch – never miss • Self-catching with auto reset • No weight limit • Easily adjustable width • Built to last • Full range of options available

Area Number

Current Director

Area Description

1

Peter Moynihan

Part Waitaki, (that portion east of Otekaieke River and Dansey’s Pass Road), Clutha, Gore and Southland Districts, Dunedin City and Invercargill City.

John Henderson

Wellington, Lower Hutt, Upper Hutt, Porirua, South Wairarapa, Carterton, Masterton and Palmerston North City, Kapiti Coast, Horowhenua, Manawatu, Rangitikei, Wanganui, part Ruapehu (that portion south of a line running westward from Mt Ruapehu crater to Pokaka then northwest to Upper Ruatiti River then west to junction of the Wanganui River and Tautarakapua Stream) and part South Taranaki (that portion east of Ingahape Stream & Manawapou River) Districts.

LK0088645©

6

Reliable Strong, ffi ient and E c

0800 227 228

www.combiclamp.co.nz

Videos on website – On-farm demonstrations available SI Stuart 027 435 3062

Nominations must be made on the official forms, which can be obtained from the Returning Officer. Each nomination form must be signed by the candidate and two nominators, who must be transacting shareholders of Ravensdown and who are eligible to vote for the Area’s election. Nominations must be received by the Returning Officer by 5pm on Monday 21 August 2017.

For further information or nomination documents please contact the election helpline 0800 666 042 or email nominations@electionz.com.

Anthony Morton Returning Officer - Ravensdown Limited PO Box 3138, Christchurch 8140

Call or email us for your free copy of our plans Email: info@ezylinehomes.co.nz Phone: 07 572 0230 Web: www.ezylinehomes.co.nz

1113205-Electronic Registers:Layout 6

LK0088636©

The most versatile Sheep Handler on the market • No power • No air • No breakdowns • Hands free operation • Good flow • Complete control • Portable • Weigh, dag, draft, feet, vaccinate – all in one pass!

30/09/2010

Free Dummy Collar, LOOK! if required, with all NO GST PRICE INCREASE! InnoteksportDOG NZ is maintaining allorders current low prices

KEEP YOUR WORKING DOGS ON THE JOB * Model SD-1825 with up to 6 collars 1.6km range (1 mile) * Model SD-1225 with up to 3 collars - 1.2km range & SD-825 - 800 metre range

GREAT VALUE * All with tone and vibration options

SD-1825 with collar * 24 levels of correction -31 year warranty$685.00 SD-800 with 1 collar $535.00

* All collars and remotes rechargable and waterproof Extra collars $245.00

Prices include GST

GREAT VALUE

SD-1825 WITH 1 COLLAR $695.00 SD-1225 WITH 1 COLLAR $595.00 SD-825 WITH 1 COLLAR $495.00 EXTRA COLLARS $375.00 PRICES INCLUDE GST

sales@innotek.co.nz • Anti-bark training collars • Containment systems

For a free brochure call

0800 872 546

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

LK0088525©

Phone Scott Newman Freephone 0800 2SCOTTY (0800 27 26 88) Mobile 027 26 26 27 2

Combi Clamp Sheep Handler

LK0088623©

We haven’t been beaten yet!

ROSS HERD

Livestock

THE NEWRA ZEALAND PW 161/67 100%FARMERS WEEKLY – August 7, 2017 All Breeds for NZ )

FOR SALE

Crossbreed Autumn Heifers for Export

ntracted to LIC for 2011 matings fromFriesian 16-7-12, 6.5 weeks yearling heifers,17, complete line Kiwi cross of spring-born heifers from 300-cow herd be 420 aftercalving, nonwell bred heading cows to full autumn , older from cows & performing 5% rejection high herd. Fully recorded.

Northland.

Ph Brian 027 241 0051 st season 347kgs ms/cow, ha, on rolling steeper Friesian yearling to heifers, pick 28 from 32, , no meal, palm kernel maize recorded nice quality or heifers from good

STORE LAMBS SIL EWES Due Aug/Sept

Jersey/Friesian cross Brown and black broken colours Age: Born Autumn 2016 Weight: 300-350kg Pedigree: 3-generation pedigree Pregnancy: Confirmed in-calf to Jersey bull Date: September 2017

PARKVALE SPECKLE PARK Purebred Speckle Park Genetics Available

Visit our website www.brianrobinsonlivestock.com sole marketing agents: for more listings

LK0088646©

LK0088624©

Enquiries to Robbie Clark Ph 0274 311 860

Price:

randaclark@xtra.co.nz

www.parkvalespecklepark.com

R1 YR ANG & ANG X STEERS 200-280kgs 400-500kgs R2 YR ANG & ANG X STEERS 2YR TRAD/EXOTIC X HEIFERS 350-450kgs 400-500kgs R2 YR FRIES & BEEF BULLS 1YR BULL CALVES 180-270kgs Due Sept/Oct MA COWS

$1300 + GST ex farm North Island

www.dyerlivestock.co.nz

Ross Dyer 0274 333 381

LK0088653©

Red Holstein yearling heifers, 16, complete

tics & line potential to behasone from herd which beenof sold, recorded, well BOP. Phto Brian 027 ding suppliers of grown.

Genetics 241 0051 for years to come. Full details

Enquiries to mark@hedleyjohn.com or 021 866 673 for further details

43

STOCK REQUIRED

Breed: Colour:

performing herd. $800 + GST for immediate delivery.

Waikato.

Ph Brian 027 241 0051 ment stock also available

BRLL or 07 8583132

livestock@nzx.com – 0800 85 25 80

A Financing Solution For Your Farm E info@rdlfinance.co.nz

LIVESTOCK ADVERTISING PHONE NIGEL RAMSDEN 0800 85 25 80

SALE TALK Service A man died and went to heaven.

He846 saw ST. Paul in front of him. Behind him was a wall of clocks. or 07 4491

The man asked St. Paul “What are these clocks for?”

St.Paul answered “These are lie clocks, everytime you lie the clock moves once.”

There’s Mother Teresa’s. She hadn’t lied once so her clock is still.

There’s Abraham Lincoln’s clock. He had lied just once and the clock has just moved once.

The man asked “Where is Donald Trump’s clock?”

St.Paul said “Oh! It’s in God’s office he uses it as a ceiling fan.”

SEMEN, EMBRYOS & BULLS FOR SALE Yearling Bull Sale

PROMOTE YOUR 2017 YEARLING STUD BULL SALES Book your ad in our livestock section to reach the right audience today!

Maungahina Stud. RD 6, Masterton 5886 Mark McKenzie: Ph: 06 378 6896 M: 027 415 8696 • mark.maungahina@xtra.co.nz Bruce McKenzie: Ph: 06 377 4836 M: 027 446 4665 Updated Sale Bulls: visit www.maungahina.co.nz

annual bull sale Tuesday 15th August 2017 – 12.30pm 341b Matauri Bay Road, RD1, Kaeo, Northland

90 LOTS with massive dollar indexes – 76 R2's & 14 autumn born yearlings The stud herd of 400 females is run under commercial conditions on hill country.

In the last 3 years Matauri Angus has established itself as a leading provider of NZ Angus based genetics in the Australasian beef industry.

Used in 180 stud herds the Matauri AI team have topped numerous sales throughout Australasia with sons selling up to $47,000 this season.

MATAURI OUTLIER F031

2348FW

Contact Nigel Ramsden now on 06 323 0761, 027 602 4925 or livestock@nzx.com

CONTACTS Cam Heggie Bruce Orr Neil Miller Colin Maxwell

027 501 8182 027 592 2121 027 497 8691 09 405 0357

For more info please email colin@matauriangus.com or visit www.matauriangus.com

LK0088648©

SPECKLE PARK

29TH September 2017

MARKET SNAPSHOT

44

IN PARTNERSHIP WITH

Grain & Feed

MILK PRICE FORECAST ($/KGMS) 2017-18

6.50

6.73

AS OF 24/05/2017

AS OF 03/08/2017

Prior week

Last year

6 5 Jan 17

Mar 17 May 17 AgriHQ Spot Fonterra forecast

What are the AgriHQ Milk Prices?

The AgriHQ Seasonal milk price is calculated using GDT results and NZX Dairy Futures to give a full season price. The AgriHQ Spot milk price is an indicative price based solely on the prices from the most recent GDT event. To try this using your own figures go to www.agrihq.co.nz/toolbox

WMP GDT PRICES AND NZX FUTURES

6.75

5.70

338

333

NI mutton (20kg)

4.10

4.10

2.80

349

345

273

SI lamb (17kg)

6.60

6.65

5.45

Feed Barley

354

352

255

SI mutton (20kg)

4.15

4.15

2.70

222

Export markets (NZ$/kg) 7.85

8.14

7.53

221

221

UK CKT lamb leg

Maize Grain

418

418

347

PKE

219

219

215

6.5

Last week

Prior week

5.0

Last year

4.5

CBOT futures (NZ$/t) Wheat - Nearest

245

256

214

Corn - Nearest

200

203

185

368

390

323

South Island 1 7kg lamb

7.0 6.5

ASW Wheat

361

379

322

2500

Feed Wheat

281

292

260

2000

Feed Barley

332

337

257

90

90

113

PKE (US$/t) Ex-Malaysia

$/kg

3000

NZ venison 60kg stag

6.0

600

c/kkg (net)

3500

Jul 17 Oct 17 NZX WMP Futur es

6.0 5.5

INTERNATIONAL

APW Wheat

1500 Oct 16 Jan 17 Apr 17 C2 Fonter r a WMP

North Island 17kg lamb

7.0

Australia (NZ$/t)

4000

5005.5 4005.0 3004.5 Oct Oct

Dec Dec

FebFeb

5‐yr ave NZX DAIRY FUTURES (US$/T) Nearby contract

Prior week

vs 4 weeks ago

WMP

3150

3225

3130

SMP

1950

2030

AMF

6400

Butter

6250

Last week

Prior week

Last year

Last week

Prior week

Last year

2080

Urea

477

477

475

29 micron

6.65

6.65

8.20

6900

6750

Super

309

309

314

35 micron

3.30

3.30

5.55

6300

5900

DAP

784

39 micron

2.65

2.65

5.55

702

702

3000 2750 Oct

Latest price

Nov

Dec

Jan

month and the NZX50 rose 1.08%. July was the seventh month in a row of gains with fresh record highs in the first week of August.

Metro Performance Glass was the top performer, gaining 11.59%. Kathmandu rose 11.27% while a2 Milk rose 10.25% as sentiment for the company remains strong. ATM has more than doubled in price since the beginning of the year.

Looking at the economic data released during the week, employment data released was mixed, with the unemployment rate falling to 4.8%, the lowest it has been since the global financial crisis. The participation rate slipped slightly to 70%, which saw employment shrink during the period by 0.2%. This surprised markets and ended a six-quarter period of gains.

Wage growth was being watched closely and showed a 0.4% increase for the quarter while for the year they grew 1.7%. This was slightly better than the previous quarter, which showed an annualised gain of 1.6%. The result saw the NZ dollar stumble and will give further cause for the RBNZ to keep rates lower for longer.

Market commentary provided by Craigs Investment Partners

14106

150 Jul 13

$/kg Jul 14 Feed barley

Jul 15

S&P/NZX 50 INDEX

7754

S&P/NZX 10 INDEX

7492

Jul 16 PKE spot

Jul 17

NZ venison 60kg stag

Auckland International Airport Limited

3.5 400

300

2.5

Oct Oct

Dec Dec

Feb Feb

Apr Apr Last yr

JunJun

AugAug This yr

Dollar Watch

Close

YTD High

YTD Low

6.80

7.43

6.31

Meridian Energy Limited

2.88

3.02

2.57

Spark New Zealand Limited Fisher & Paykel Healthcare Corporation Ltd Fletcher Building Limited Mercury NZ Limited (NS) Ryman Healthcare Limited Contact Energy Limited Xero Limited Air New Zealand Limited (NS)

3.88 11.29 7.97 3.48 9.08 5.38 27.80 3.39

3.95 11.67 10.86 3.59 9.12 5.39 28.20 3.60

3.32 8.50 7.38 2.94 8.12 4.65 17.47 2.08

Listed Agri Shares

4.5

500

5‐yr ave

Top 10 by Market Cap Company

NEW Zealand again had a strong

S&P/FW AG EQUITY

250

4 w eeks ago

Sharemarket Briefing

5.5

600

c/k kg (net)

350

NZ$/t

US$/t

3250

39 micron wool price

6.5

CANTERBURY FEED PRICES 450

11315

This yr

(NZ$/kg)

3500

S&P/FW PRIMARY SECTOR

Last yr

AugAug

NZ average (NZ$/t)

WMP FUTURES - VS FOUR WEEKS AGO

Sep

JunJun

WOOL

* price as at close of business on Thursday

Aug

AprApr

FERTILISER

Last price*

2500

Last year

6.75

340

* Domestic grain prices are grower bids delivered to the nearest store or mill. PKE and fertiliser prices are ex-store. Australian prices are landed in Auckland.

Jul 17 AgriHQ Seasonal

Last week Prior week

NI lamb (17kg)

Feed Wheat

Waikato (NZ$/t)

7

Slaughter price (NZ$/kg)

Milling Wheat

PKE

8 $/kgMS

Last week Canterbury (NZ$/t)

MILK PRICE COMPARISON

US$/t

SHEEP MEAT

DOMESTIC

AGRIHQ 2017-18

FONTERRA 2017-18

Sheep

$/kg

Dairy

5pm, close of market, Thursday

Company

Close

YTD High

YTD Low

The a2 Milk Company Limited

4.500

4.580

2.060

Cavalier Corporation Limited

0.320

0.810

0.270

Comvita Limited

6.000

8.650

5.150

Delegat Group Limited

6.800

6.850

5.650

Foley Family Wines Limited

1.300

1.500

1.200

Fonterra Shareholders' Fund (NS)

6.100

6.400

5.880

Livestock Improvement Corporation Ltd (NS)

2.340

2.610

2.340

New Zealand King Salmon Investments Ltd

1.690

1.750

1.220

PGG Wrightson Limited

0.590

0.610

0.490

Sanford Limited (NS)

7.200

7.750

6.700

Scales Corporation Limited

3.480

3.650

3.210

Seeka Limited

5.030

5.500

4.300

Tegel Group Holdings Limited

1.220

1.460

1.050

S&P/FW Primary Sector

11315

11315

9307

S&P/FW Agriculture Equity

14106

14106

10899

S&P/NZX 50 Index

7754

7754

6971

S&P/NZX 10 Index

7492

7563

6927

ECONOMIC comparisons This Prior Last NZD vs and political limbo in the week week year United States justify a kiwi USD 0.7487 0.7409 0.7079 dollar in the US$0.75 to EUR 0.6414 0.6371 0.6391 0.76 range, BNZ currency 0.9398 0.9306 0.9432 strategist Jason Wong says. AUD 0.5733 0.5711 0.5378 The biggest barrier right GBP now is that speculative, Correct as of 9am last Friday “long” contracts supporting the New Zealand dollar are already at record levels and that also means it is vulnerable to any negative news in the world economy.

The issue in the US will be compounded over the next couple of months by uncertainty over the country’s debt ceiling, a regular argument usually settled at the last minute, Wong said.

The BNZ’s official forecast has been for a US$0.68 cross-rate at year-end, compared to above 0.74 now and off a recent high of 0.755 but Wong says something in the lower 70s now looks more realistic.

There remains a chance of the US Fed tightening interest rates late this year though the market is marking the odds of that at below 50%. A stronger US dollar, after months of general weakness, is needed to get the kiwi lower.

The next RBNZ monetary policy statement is due on Thursday and, with inflation indications pushing even lower, it will say again that there is no hurry to increase the OCR and possibly even have more dovish overtones, Wong said.

The euro is on the rise and he thinks the kiwi could be below €0.60 by year-end, pushing lower next year.

Alan Williams

Markets

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 7, 2017

CANTERBURY FEED WHEAT

SI SLAUGHTER MUTTON

NI SLAUGHTER STEER

($/T)

($/KG)

BONER FRIESIAN COWS, 555-565KG, AT TEMUKA

($/KG)

($/KG LW)

4.15

349

5.60

1.93

high lights

45

$2.74-$2.78/kg

$120-$175

R1 Friesian steers, 200-260kg, at Temuka

South Island prime lambs

Cattle & Deer BEEF Slaughter price (NZ$/kg)

Last week

Prior week

Last year

NI Steer (300kg)

5.60

5.65

5.60

NI Bull (300kg)

5.55

5.60

5.50

NI Cow (200kg)

4.50

4.50

4.50

SI Steer (300kg)

5.45

5.45

5.40

SI Bull (300kg)

5.15

5.15

5.20

SI Cow (200kg)

4.40

4.35

4.30

US imported 95CL bull

6.76

7.07

6.99

US domestic 90CL cow

6.87

6.92

6.77

Export markets (NZ$/kg)

North Island steer (300kg)

6.5

$/kg

6.0 5.5

More photos: farmersweekly.co.nz

5.0 4.5

RUGGED UP: Auctioneer Simon Smith dressed for the weather at a recent sale in Feilding.

4.0

Calf sales begin

South Island steer (300kg)

6.5 6.0

NZ venison 60kg stag

c/k kg (net)

$/kg

600 5.5 500 5.0 400 4.5 300 4.0

Oct Oct

Dec Dec

Feb Feb

5‐yr ave

Apr Apr

Jun Jun

Last yr

Aug Aug This yr

VENISON Slaughter price (NZ$/kg)

Last week Prior week

Last year

NI Stag (60kg)

9.00

8.90

8.10

NI Hind (50kg)

8.90

8.80

8.00

SI Stag (60kg)

9.10

9.10

8.10

SI Hind (50kg)

9.00

9.00

8.00

New Zealand venison (60kg Stag)

10 9 $/kg

NZ venison 60kg stag

c/k kg (net)

600 8 500 7 400

300

6 Oct

Oct

Dec Dec

Feb Feb

5‐yr ave

Apr Apr Last yr

Jun Jun

Aug Aug This yr

W

ITH calving in full swing on the dairy farms, feeder calf sales are well and truly underway.

To date prices for the better calves are significantly up on 2016, though smaller calves are buyable.

NORTHLAND NORTHLAND WELLSFORD was the first yard to get rolling on the spring cattle fair calendar, with the adult cattle under the spotlight last Monday.

The feature was the R2 steer section.

Cattle sold above expectations by 5-10c/kg, with those 400-450kg in particular very strong and 15c/kg above 2016 levels. Most lines in this weight band ranged from $3.00-$3.10/ kg, while heavier beef-dairy and Hereford-cross traded at $2.85-$2.95/ kg, on a firm market.

A much smaller heifer offering was more prime than store, and HerefordFriesian, 440-485kg, sold for higher

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$2.80-$2.89/kg on a steady market, and lighter lines, 365-457kg, $2.76$2.81/kg.

Northland feels to be in the grips of winter now, though the market at KAIKOHE last Wednesday was not showing signs of the winter perils, PGG Wrightson agent Vaughan Vujcich reported.

The R2 steer pens offered up a mixed quality line up, with the majority Angus-dairy cross, which sold at respectable levels of $2.78-$2.88/kg.

A nice line of Angus-Hereford stood out, and at 478kg, sold for $2.85/kg.

Heavy Angus-cross bulls made similar values of $2.85-$2.88/kg, while the heifer pens also featured beef-dairy, with prices solid at $2.70-$2.75/kg.

There seemed to be more fuel left in the tank on the R1 steers, which made just $3.20-$3.35/kg for good quality beef-cross, while January-born Hereford-cross sold for $735-$820, $3.40-$3.50/kg. Friesian and beefcross bulls returned $3.15-$3.20/

kg, while the heifer market perked up, with most Hereford-dairy cross making $3.00-$3.20/kg. Autumn-born Angus-Friesian heifers, 100kg, earned $440.

Cow prices showed some softening, and the heavier types made $1.90$2.00/kg, with medium lines earning $1.80/kg, and the lighter Jersey-cross, $1.50-$1.60/kg.

AUCKLAND AUCKLAND Fine weather put cattle in a much better light than of late at PUKEKOHE on Saturday, July 29, and brought more spark to the market, auctioneer Pat Farrell reported.

Prime steers, 535-711kg, managed $2.81-$2.95/kg, with top price of $2100 achieved. Plainer types sold for $2.70$2.89/kg for 427-446kg, while the best of the heifers, 543kg, made $2.85/kg.

Extra buying power overpowered any drop in schedule for bulls, and 637kg

Continued page 46

Markets

46 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 7, 2017 returned $2.79-$2.81/kg. The best of the boner cows were 426kg, and sold for $2.12/kg.

Younger cattle numbers are starting to flow, though quality on the whole was mixed. The better Friesian and crossbred steers, 262-336kg, managed $935, though lesser types, 207-229kg, returned $550-$620, with crossbred, 163205kg, finishing at $510-$780.

Older crossbred heifers, 284-362kg, earned $740-$980, with better quality R1 heifers, 226-229kg, selling well at $680-$770. Medium weaner heifers, 170-210kg, returned $500-$750, and a very light line at 91kg, made $490.

An offering of in-calf Friesian cows sold for $2.15-$2.37/kg, and wellconditioned empty Friesian made $2.05-$2.15/kg. Good-medium cows fetched $1.85-$1.95/kg, and lighter boners $1.75-$1.85/kg.

About 1600 ewes and lambs were yarded last Monday, and the best of the prime lambs returned $155-$167, with good-medium types making $120-$140, and lighter primes $105-$115. The prime ewe selection included some very heavy, well-conditioned lots, which traded at $125-$155.

Other heavy ewes earned $105$115, medium $85-$98, and lighter $66-$75.

COUNTIES COUNTIES Around 550 cattle were yarded at TUAKAU last Thursday, Kane Needham of PGG Wrightson reported.

While the sale attracted a good bench of buyers, bidding on lines of younger stock was often cautious. But the market for the bigger steers and heifers remained steady.

The offering included 533kg Hereford-Friesian steers, which traded at $2.75/kg, $1470, while 453kg returned $2.82/kg. Good Angus R1 steers, 352kg, earned $2.88/kg, $1015, and HerefordFriesian weaners, 130kg, $675.

In the bull section, R1 AngusHereford, 288kg, made $830, and 327kg Friesian fetched $930. Good beef-cross bulls, 312kg, earned $860.

The heifer section included 433kg Hereford-Friesian that traded at $2.76/kg, with Hereford, 427kg, making $2.76/kg. Redbodied Hereford-Friesian R1 heifers, 273kg, made $790, and a pen of Hereford-Friesian weaners, 98kg, $510.

Steer and heifer prices eased by around 5c/kg at last Wednesday’s prime sale, but the cow market was firm.

Heavy prime steers in the 500head yarding traded at $2.86$2.90/kg, medium $2.82-$2.85/kg, and lighter types $2.75-$2.82/kg.

The best of the prime heifers sold at $2.80-$2.85/kg and medium lots $2.76-$2.80/kg. Lighter heifers earned $2.65-$2.75/kg, and beef cows sold well at $2.08-$2.44/kg.

BAY OF PLENTY BAY OF PLENTY August started in similar fashion to July’s end at RANGIURU last Tuesday, with moderate numbers of cattle in mainly small lines.

Beef and beef-dairy R3 steers, 421-487kg, returned $2.91-$3.06/ kg, with similar heifers, 505-520kg, earning $2.95-$3.00/kg.

R2 steer numbers were limited to Hereford-Friesian, 387kg, $2.97/ kg and Friesian, 374-417kg, $2.81$2.89/kg, but more action in the heifer pens saw Hereford-Friesian, 408-437kg, return $2.79-$2.83/kg.

R1 Hereford-Friesian steers, 178-226kg, made $730-$825, with Angus-cross, 190-201kg, returning $715-$750. The biggest section by a country mile was the R1 heifers, and prices were just there. Hereford-Friesian heifers, 166-211kg, returned $675-$740, while small beef lines, 202-261kg, managed $715-$835.

Boner cow numbers are seasonally low, and those offered made good returns at $1.89-$2.01/kg.

Nearly 200 calves were offered last Wednesday and a good crowd gathered in the undercover yards.

Good quality bulls sold readily enough, with top HerefordFriesian making $200-$220, and Friesian, $120-$155. Lighter lines proved to be harder work, and Friesian bulls were buyable at $20$50. Heifer prices were consistent with the previous week, and the better lines made $115-$160, and the remainder, $70-$85.

WAIKATO A few days of decent frosts and

paddocks that are wet underfoot brought more cattle to FRANKTON last Wednesday. R3 Hereford-cross, 483-576kg, returned $2.82-$2.91/ kg. Hereford-Friesian, 500-510kg, managed similar returns at $2.83$2.92/kg. The only pen of R3 heifers, Angus-Hereford, 547kg, made $2.77/kg.

R2 Angus steers, 448-477kg, lifted to $3.08-$3.35/kg, with lighter Hereford-cross, 392-397kg, softening slightly to $2.64-$2.81/ kg. A line of R2 Angus-Friesian steers, 408kg, came back 20c/kg to finish at $2.82/kg.

The R2 heifers remained fairly steady on the whole, with Angus, 344-394kg, making $2.89-$3.05/ kg. Hereford-cross, 308-460kg, garnered $2.27-$2.98/kg. R2 Angus-dairy bulls, 385-466kg, made $2.81-$3.00/kg.

R1 Angus-Hereford steers, 194267kg, remained strong at $765$900.

Angus-Friesian, 196-237kg, were well received at $805-$830. This continued through the heifers with traditional, 173-260kg, all ranging from $690-$930. Hereford-cross bulls, 152-190kg, were snapped up for $490-$630. Their heavier Friesian counterparts, 209-276kg, managed $680-$850.

Hereford-cross steers, 118kg, made $625. Traditional heifers, 91101kg, were well received at $435$460, while Hereford-Friesian, 86-128kg, returned $465-$550.

Autumn-born R1 bulls remained steady, with Hereford-cross, 114131kg, garnering $470-$635. Their Friesian brothers, 91-134kg, made $490-$590, and 171-209kg, $675$680.

KING COUNTRY KING COUNTRY TE KUITI offered up the smallest sheep yarding seen for some time last Wednesday, Carrfields agent Carl White reported.

The best of the prime lambs sold to strong demand and achieved $145-$154, with second cuts earning $120-$130, and third, $100-$110. The prime ewe market was outstanding, and any ewes with cover sold for $110-$120, with plainer types earning $80-$90, and the lighter end, $50-$70. Empty 2-tooths were all prime types and made $100-$120.

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The store lamb pens filled just one row, with the majority longer term types. The best of the bunch made $80-$100, with small lines at $60-$75.

TARANAKI TARANAKI The wet weather of late unfortunately had some effect on the market at TARANAKI (Stratford) last Wednesday, with most sections losing some of their power, New Zealand Farmers Livestock agent Stephen Sutton reported.

Demand was solid enough for R2 steers, and lines of quality falling in a 375-460kg weight range were subject to keen interest, as per head prices are perceived to be acceptable levels. Most traded at $3.10/kg for the heavier lines, with lighter types making up to $3.30/kg. Prime steers mainly traded at $2.90/kg, while lesser quality dairy-cross lines sold for $2.75-$3.00/kg. The heifer offering featured forward types, and good enquiry saw most trade at $2.75$2.85/kg for 380-410kg. Empty Friesian heifers mainly fetched $2.50-$2.60/kg.

R1 steer prices showed some softening, though on the other hand heifers sold freely, with prices lifting. The steers sold to a top of $850-$900, with most lines making $3.80-$4.00/kg. Few heifers sold under $650, with top lines making $800, and most trading at $3.00-$3.40/kg.

POVERTY BAY POVERTY BAY Just over 1000 cattle sold at MATAWHERO last Tuesday.

Quality R2 steers were chased, and sold to similar levels posted at other yards. Two large Angus steer lines, 440-467kg, made $3.22$3.27/kg, with other traditional lines 400-525kg, mainly trading at $3.00-$3.15/kg.

Angus and Simmental-cross R2 heifers, 360-430kg, made good values at $2.90-$2.94/kg, though lighter exotic, 300-305kg, returned $3.00-$3.05/kg. Two lines of R2 Hereford bulls, 405-500kg, were especially strong at $1660-$1850, $3.70-$4.10/kg.

Over 300 heifers featured in the R1 pens, with prices reflecting some resistance to the early sale.

100

Angus, 200-225kg, returned $750$890, and Hereford, 190-220kg, $720-$770. A top notch line of Hereford topped the section, with 265kg, selling for $1002.

Steer numbers were limited, and two lines of Angus, 180220kg, returned $835-$905, while Hereford bulls, 220-320kg, made $1100-$1240.

Buyers keen to get their hands on vetted-in-calf cows paid handsomely for the better lines, with Angus-cross making $1250, though this was bettered by the top run-with-bull line at $1260.

The store lamb trade is slowing right down through the North Island, and this was particularly evident on Friday, wheree only a little over 300 store lambs were yarded.

It was difficult to read much into the sale given the small numbers, but heavy and medium ewe lambs were $97-$110. Only two lines of male lambs were offered, the heaviest at $116, and a mediumlight line at $104.

The better prime lambs made $124-$131, but the next cut could only manage $101-$109. A single line of prime ewes were $103.50.

HAWKE’S BAY HAWKE’S BAY The first of the ewes with lambsat-foot made an appearance at STORTFORD LODGE last Wednesday, albeit in small numbers.

There was plenty of action in the lamb pens last Monday, and the line-up included some huge lambs, with mixed sex topping the sale at $175. Ram lambs sold on a firm market at $133-$153, with ewe lambs of similar weight making $130-$150.

Ewe numbers dropped to 375 head as scanning is finished, and lambs are hitting the ground on lower country. The offering mainly consisted of very good to heavy types, with the bulk making $103$145.

Cattle numbers were respectable enough at 72, and high yielding Charolais-Friesian steers, 786kg, sold to $3.02/kg, with Angus, 649-657kg, fetching $3.00-$3.03/ kg. Local trade beef heifers, 452467kg, made $2.87-$2.94/kg, and Murray Grey, 537kg, returned

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Markets

$2.96/kg. Well covered dairy heifers sold to good demand, with 526-572kg earning $2.94/kg.

A big line of South Devon-cross cows met keen interest, and bids were pushed to $2.24/kg for 585kg.

Ewes with lambs-at-foot were a month behind last year, and just two small lines were sold, but it was the start. Good and mediumgood Romney, with very healthy black-face lambs made $86 and $76 all counted.

Low volumes of store lambs should be expected from now until the end of the season, and 2730 filled pens last week.

An extra player on short term lambs has shaken the market up recently, and heavy cryptorchid and males sold for $130-$149. Ewe lamb prices firmed, with buyers returning to the market, and particular strength was shown for medium-good to good lambs at $104-$128. Medium lambs made $100-$114.

Breeding ewes continue to trickle in, and a line of 60, scanned triplets, sold for $120, with other high scanning lines making $142$149.

Over 100 R2 bulls ventured to the yards, making up 40% of the small yarding. Prices for 425-457kg came off the highs of $3.23-$3.25/ kg set a few weeks back, though they still made good returns at $3.06-$3.15/kg. A lighter line at 327kg managed $3.27/kg, with lines split between local and Cambridge buyers. Specially advertised beef bulls also sold to strong demand, and at 447-458kg returned $3.14-$3.20/kg.

R1 cattle numbers are starting to gain some momentum, with a few more specially advertised steers coming forward. Angus, 220-268kg, sold for $920-$1120, to average $4.14/kg, and Charolaiscross, 274kg, $1055. Friesian bulls, 225kg, made $785, while heavier Friesian and beef-cross both fetched $710.

A small yarding of sheep returned consistent prices at DANNEVIRKE last Thursday, while feeder calves also made an appearance last week.

Approximately 1400 sheep were yarded, with the majority in the store lamb pens. Prices varied little between sexes, with cryptorchid lines making $85-$110, mixed sex $89-$102, and ewe lambs, $79$112.

The only other section of significance was the prime ewes, and as a general rule all ranged from $20-$120, with medium types earning $103.

Feeder calf action also got underway last week, and prices were consistent with other sales.

Big Friesian bulls made $200$225, and medium, $130-$170.

Hereford-Friesian heifers sold for $100-$200, and Angus-cross, $190$200.

MANAWATU MANAWATU RONGOTEA sale last Wednesday saw a lift in prices across all lines in the cattle pens, and a big increase in the number of feeder calves as spring calving moves into full swing, New Zealand Farmers Livestock agent Darryl Harwood reported.R2 Friesian steers, 385kg, returned $2.60/kg, with bulls, 480kg, making $2.62/kg. The heifer pens were busier, and the better Hereford-Friesian sold to $2.89/kg, with most other lines of beef and

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 7, 2017 beef-Friesian, 375-435kg, making $2.48-$2.64/kg. Dairy, 303-426kg, fetched $2.23-$2.46/kg. Demand was strong in the R1 pens, with Red Devon steers, 322kg, a highlight at $930, with heifers, 317kg, making $900. In the bull pens, Friesian, 137-200kg, sold well at $660-$745, Hereford-Friesian, 124-225kg, $616-$730, and Anguscross, 150kg, $610. Crossbred lines traded up to $750 also, while Jersey, 180-225kg, returned $505$550. A sizeable offering of feeder calves drew out a good number of buyers. Top Friesian bulls made $250-$280, medium $180-$220, and small, $80-$120. The best of the Hereford-Friesian achieved $250-$290, medium $185-$230, and small $120. The heifer pens featured Hereford-Friesian at $250-$300, with medium types making $180-$220, and small $120-$260. Weaner pigs sold for $40-$127, ewes with lambs at foot $65, and mixed sex lambs, $45$100.

Cows dominated Monday’s FEILDING sale as calving lifts cull numbers, and prices across the board eased. Quality was also not up to recent weeks, which also played its part, and Friesian, 510-560kg, averaged $1.84/kg, with 580-680kg sitting at $1.90/kg, One line of younger Jersey cows, 525kg, sold for $2.25/kg, which matched the heifers, 427-443kg, at $2.21$2.29/kg. Hereford-Friesian cows, 640-679kg, returned $2.10-$2.13/ kg.

Over 350 Feeder calves was also evidence of calving in full swing. Values were firm, with good Friesian bulls earning $170-$290, and medium $170-$240, while the top Hereford-Friesian returned $325-$375, and medium, $160$280. Angus-Friesian fetched $210, and Charolais-Friesian, $385. In the heifer pens, Hereford-Friesian made $160-$205, Angus-Friesian $100-$125, and Charolais-Friesian $245.

Prices had a firm tone across both the lamb and ewe pens.

Very heavy- weight, shorn males achieved $194, with over 200 lambs selling at $170-$190. For the rest of the heavy lambs, and the bulk of medium types there was little price difference, with all trading at $123-$160.

Ewe throughput was similar to the previous week, and prices showed some firmness. Top lines sold for $121-$134, medium, $90$120, and light, $64-$84. Just over 600 2-tooths were also offered, with varying results.

As usually happens during August, sale entries start dropping away to seasonal lows. With a hogget fair scheduled for the following week, lamb entries were much reduced at Friday’s sale. The scanned-in-lamb ewes offered continued to sell to firming demand in spite of relatively later lambing dates and sold up to $180 for scanned mixed age ewes.

There was a big reduction in the number of male lambs offered with only around a quarter of the yarding being males. A new buyer entered the lamb market, acting as a buying agent, and contributed to significant lift in sale prices which was especially noticeable in the medium ewe lamb section probably the biggest section - with the overall market lift around 20 cents/kg in round figures. The top price was $144 for 98 cryptorchids

and 148 shorn ewe lambs sold for $136 but the lighter lamb prices raised the most eyebrows.

Ewes SIL, $107-$180; Lambs; heavy, $118-$144; medium, $103$123.50; light, $79-$119.

The difficult winter conditions are keeping all but those with the coastal feedlots out of the cattle market and buyers were again selective for the better bred cattle in general. The per kilo rate for the better steers traded in a tight range with $1970, $3.06/kg, for 11 R3 Angus and $1880, $3.06/kg, for 12 R2 Angus steers down to $1110, $4.15-$4.20/kg, for the best R1 Angus steers.

Older bulls were almost completely absent with R1 bull numbers up again and easing a little. The older heifers eased again without any standout lines although 20 R1 Angus heifers took the eye and sold for $1070, $3.69/ kg.

Steers; R3, 493-642kg, $1400$1970, $2.83-$3.34/kg; R2, 310615kg, $870-$1880, $2.80-$3.27/ kg; R1, 198-267kg, $645-$1110, $2.94-$4.38/kg; Bulls; R2, 468510kg, $1465-$1540, $3.02-$3.13/ kg; R1, 141-275kg, $635-$950, $3.34-$4.60/kg; Heifers; R2, 347515kg, $890-$1370, $2.56-$3.16/ kg; R1, 193-290kg, $600-$1070, $3.22-$3.72/kg.

CANTERBURY CANTERBURY The feature at CANTERBURY PARK last week was over 320 R1 Friesian bulls, gathered up from three stations in the region.

Overall store prices were steady, and medium-good ewes and males making $114-$118. The better mixed sex returned $106$116, with light-medium earning $86-$106.

A bigger percentage of heavier lambs are selling in the prime pens, with a large portion selling in the $140-$175 range, and very few trading under $120.

Numbers were short in the prime ewe section, and prices steady, with heavier types making $120-$140, medium $100-$115, and light, $70-$90.

Over 320 Friesian bulls was a big ask for auctioneers, but they had done their homework, and there was enough buyers there for realistic levels to be achieved.

Most stayed local, though a unit load went to the North Island. The very top bulls, 310-341kg, returned $925-$1000, $2.93-$2.98/kg, but the bulk sat in the 234-280kg range and achieved $750-$880, with most at $3.07-$3.33/kg. A lighter line at 217kg sold for $770, $3.55/ kg.

Other notable store lines were R2 Angus-cross steers, 431-483kg, $2.96-$3.02/kg, and traditional heifers, 415-426kg, $2.65-$2.72/kg.

R1 Hereford-cross heifers, 159177kg, fetched $670-$705.

The prime steer market regained some ground, with high yielding types selling to $3.05-$3.13/kg, while the top heifers, 500-560kg, returned $2.81-$2.85/kg.

The cattle sale at COALGATE last Thursday took the prize for the smallest yarding this year, with just 23 store and 46 primes.

The sale yards continue to be a good outlet for prime lambs, and again a consistent market saw most trade at $120-$159, with heavy lines earning $162-$175. The top lambs were beaten however by the top ewes, as 14 exceptional

Poll Dorset’s sold to $199. Overall though ewe prices eased $3, with the better end making $110-$155, and medium, $70-$109.

A feature in the breeding ewe pens was 182 hoggets, which were scanned-in-lamb and sold well at $150.

Store lambs traded at $40-$58, though better types were steady, with good ewe lambs fetching $112-$114, and the best of the mixed sex, $94-$115.

A small line of 162kg HerefordFriesian heifers managed $600.

The prime pens had double the number of the stores but still little to take a gauge on, though the dairy cow offering did show improvement, with 493-615kg making $1.88-$1.95/kg. Most heifers were dairy-cross, with 475-480kg earning $2.58-$2.64/kg, though better types made $2.74$2.78/kg, and Hereford-Friesian steers, $2.77/kg.

SOUTH CANTERBURY SOUTH CANTERBURY Wintry and wet conditions had a significant effect on sales at TEMUKA last week, for varying reasons.

The store lamb section was the only one that was unaffected by the weather, with numbers seasonally low at 1430. Medium lines improved to $103-$111 for most mixed sex, while top lines made $115-$126.

A much bigger offering of prime lambs still managed good values, and nearly half of the 1580 made $130-$139, with the bulk of the remainder at $140-$168, and a smaller third cut, $124-$129.

A larger portion of the 1460 ewes were medium to lighter types, with prices firm. Lesser types sold for $70-$100, medium $105-$117, and the better end, $120-$142.

The first feeder calf sale saw 140 offered, including 100 bulls and 40 heifers. This market got off to a great start, as five main buyers battled it out to secure lines. The best of the bull calves made $200$250, with medium types making $150-$180, and the lighter end, $80-$140. Good heifers traded at $185-$205, and medium, $125$160, with very small calves at $20-$70.

Steer prices were notably back, and Hereford, 523-585kg, managed just $2.77-$2.82/kg, with these prices matched by five very heavy Friesian. No lines sold out of a $2.71-$2.82/kg range.

Hereford heifers lifted to match the steer prices, with 465-593kg earning $2.74-$2.81/kg, while most other prime types made $2.66-$2.76/kg. Boner HerefordFriesian, 385-428kg, returned $2.50/kg, while Friesian improved in price, and 480-520kg managed $2.49/kg. The lighter end mainly traded at $2.24-$2.36/kg.

Dairy cow numbers lifted significantly, and the extra numbers worked against vendors.

Friesian within a 480-580kg weight band were variable, with better types managing $1.90-$2.03/kg, but lesser types $1.80-$1.88/kg.

Angus, 549kg, returned $2.11/kg, and Devon, 631kg, $2.25/kg.

Just shy of 480 cattle were penned last Thursday, and heifers made up the bulk of the R2 section. Angus, 337-392kg, eased to $2.98-$3.03/kg, while beefFriesian, 371-433kg, fetched $2.82$2.93/kg.

Steer numbers were very

47

limited, and heavier lines made $2.77-$2.93/kg, with a lighter line of Angus, 362kg, making $3.19/kg.

An annual draft consignment of Friesian steers made up 70% of the R1 steer section. Prices were respectable but back on last year at $2.74-$2.78/kg for 200-260kg.

Small lines of beef and beef-cross steers, 285-323kg, returned $920$1090, though top dollar went to a line of five heavy Angus, $1245.

The R1 heifer market was the highlight of the sale, with one vendor offering up all but 10 of the section. Red Devon met keen interest and sold well, with 212-254kg trading at $755-$825, pushing the lighter lines up to $3.50-$3.56/kg, while beefFriesian, 173-188kg, managing $720-$765.

OTAGO OTAGO Numbers dropped in most sections at BALCLUTHA last Wednesday.

Top store lambs achieved $100$111, with medium types earning $85-$95, and light, $75.

Heavy prime lambs sold to $130$147 on a relatively steady market, though prices eased for medium types at $115-$120. The third cuts held their value however at $109$115.

Ewe’s made up the majority of the yarding, and continued their solid run. Heavy lines firmed to $120-$135, with medium types steady at $85-$100. Lighter lines eased a notch to $50-$60.

SOUTHLAND SOUTHLAND Numbers were low across all sections at LORNEVILLE last Tuesday, as winter mode continues.

Demand was very strong for the small yarding of store lambs, and prices reflected that. Top lines sold for $95-$107, medium $80-$88, and light, $70-$78. Included in the yarding was capital stock mixed age ewes, scanned-in-lamb, which achieved $156, with other lines harder to place at $120-$140.

The prime lamb pens offered up even less numbers than the store, with around 100 penned. Again prices were strong, and top lines firmed to $125-$145, medium $110-$120, and lighter $100-$108.

Ewes made up the majority of the yarding, and with mutton schedules holding, prices did the same. Heavy types returned $100$110, medium $85-$95, and light $70-$84, with lower condition lines making $50-$60. The best of the rams made $60-$90, and lighter lines, $45-$55.

Action in the cattle pens was very limited, with dairy cows the main feature. Steers were of mixed quality, and 500kg plus returned $2.70-$2.85/kg, while 440kg plus heifers made $2.70-$2.80/kg.

Dairy, 330kg sold for $2.00-$2.30/ kg. Demand for heavy cows is still strong and prices reflected that.

Those 550kg plus sold for $1.80$2.00/kg, with 450-500kg at $1.60$1.70/kg, and 400kg, $1.50-$1.65/ kg.

Features in a small store sale included R2 Friesian steers, 400430kg, $2.58-$2.65/kg, and bulls, 455kg, $2.90/kg. Hereford-cross heifers, 394kg, sold for $2.63/kg, while in the R1 pens, Murray Greycross steers 145kg, returned $670, and their sisters of same weight, $540. Friesian bull calves made $135-$170.

Markets

48 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 7, 2017 SI SLAUGHTER STEER

NI SLAUGHTER BULL

NI SLAUGHTER LAMB

($/KG)

($/KG)

MEDIUM EWE LAMBS AT STORTFORD LODGE

($/KG)

($/HD)

5.45

5.55

6.75

110

high lights

US holding export trump card?

Alan Williams alan.williams@nzx.com

N

EW trade agreements point to the United States being a stronger competitor with New Zealand for dairy and beef exports to China.

Regulatory requirements for the resumption of beef exports, after a decade-long ban, might deter many US milk producers so that threat at least might be blunted, marketing expert Professor Bill Bailey said in an ASB Bank report.

An expansion of dairy exports would also take time because of regulatory requirements such as approvals for dairy processing plants and products but once that issue was resolved shipments from the US, possibly including fluid milk, were expected to be significant because Chinese consumers were positive about the safety and quality of US food products, Bailey said.

That was an issue for NZ because of its reliance on the Chinese market.

Overall, the effect of USChina trade deals on NZ exports could be significant though implementation of the agreements could be slowed down in any fallout from President Donald Trump’s criticism of China over its North Korea policy.

As well as encouraging US exports of dairy and beef, the agreements also opened the door for cooked

THREAT: Once resolved, increased US milk exports to China could seriously affect NZ’s dairy industry.

MUSCLING IN: The United States wants to increase exports to China because of big falls in its milk powder sales, Professor Bill Bailey says.

poultry exports from China to the US with Bailey noting a trade-off link relying on the US accepting food safety considerations on that product.

A question to be answered was if US consumers didn’t buy Chinese chicken, would China respond by limiting US beef sales in China, he said.

The former long-time head of Massey University’s agribusiness school was now

back in the US heading a marketing consultancy group.

The US was already a major dairy exporter to China though there had been restrictions on new processing plant approvals for some years.

Lactose and butter exports had been flat, though whey exports had increased strongly.

What had pushed the US into seeking new trade agreements were a 27% fall in skim milk powder exports since 2014 and a 37% fall in whole milk powder volumes, Bailey said.

But the myriad of rules, regulations and inspections meant it would take time for the agreements to lead to a

real effect on dairy exports.

Beef shipments to China were banned after a madcow disease outbreak in the US 14 years ago. With the new agreement, the Chinese would insist on source and age verification of US beef, replacing what until now had been a voluntary system.

“Will US producers make the record-keeping efforts to benefit from the reopened market or will they put that in the too-hard pile and continue their focus on US consumers?”

Bailey asked.

If the US did chase the Chinese market for beef that could open up the US market further for beef sales from this country. It was already the biggest market for NZ.

$750-$880

$3.73-$3.76/kg

R1 Friesian bulls, 230-280kg, at Canterbury Park

R1 Angus heifers, 200-220kg, at Matawhero

Spring cattle sales ramp up FOR some strange reason the nursery rhyme Rain, rain go away has been going through my head this week – I can’t put my finger on why that would be.

Suz Bremner The year is swiftly passing AgriHQ Analyst us by and we have come full circle to North Island spring cattle sale time. I can just about feel the excitement mounting as sale yards ramp up and most like to get the jump on spring with much of the seasonal sale action happening through August in a typical year.

This year might well prove to be anything but typical and if the first six months are anything to go by for both weather and prices, it has made a very good start on the abnormal. Areas are wetter than they have been in years, after the best autumn in years, while paddock, auction and schedule prices across all sections of the agricultural industry have been best described as astounding.

It stands to reason then that we should expect the unexpected heading into spring sales though after two years of very good cattle prices, hopefully, the unexpected is not a big drop in the market. I don’t believe that will be the case though as all the early signs point to continued high prices and one factor that might well influence that is lower-thanusual cattle numbers.

I say this as a possibility because weaner prices paid earlier were so high and, if the season allows, farmers might be inclined to hang onto their rather expensive cattle to farm them to heavier weights and in turn better margins. That might mean fewer cattle on offer, which in turn will only amplify competition, and so the circle continues.

So bring on the spring cattle sales so we can all see exactly how it will unfold but keep that rain away for a bit please. suz.bremner@nzx.com

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