Farmers Weekly NZ December 18 2017

11 The lady is a legend Vol 16 No 50, December 18, 2017

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The Ministry for Primary Industries will not be split under the new Government but will instead serve as an overarching body for four portfolio-based entities focused on fisheries, forestry, biosecurity and food safety.

32 Works are now flat out Silver Fern Farms, the country’s biggest beef processor, expects this month’s cattle kill to be a record for December.

Market Snapshot ����������������������������������������� 28

10 Clear goals set farm’s agenda Mid Canterbury foothills farmers Chris and Anne-Marie Allen have very clear goals for their sheep and beef farm and are keen to share their story.

12 Eaters pay for meeting

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Primary exports to grow 8.5% ������������������������������������ 4 Rural NZ urged to get creative ����������������������������������� 4 It’s time to act against Canada ����������������������������������� 5 New bodies will stay in ministry �������������������������������� 6 Horse legend Jackie rocks on ����������������������������������� 11 Eaters pay for meeting standards ����������������������������12 Parsons: B+LNZ now more relevant ������������������������14

Farming is now open to scrutiny

A

6 New bodies will stay in ministry

Job

EDITORIAL

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

NOTHER year has come to an end and, to be honest, it’s been one of the most challenging and intriguing I’ve experienced as a rural journalist.

The election put farming under the microscope. Water use, nutrient management and the state of the regions in general were all major talking points.

We have a new Government that will no doubt steer our industry in a slightly new direction. It’s up to our sector to engage with it and be part of the decision-making as this term progresses.

Biosecurity has been an unwelcome word in many of our stories this year, mostly for the wrong reasons.

As an export nation with a reliance on tourism, keeping the nasties at bay will always be a challenge but it is one we must meet.

The weather has been just downright strange.

About six weeks ago I had neighbours who couldn’t get a tractor onto paddocks for fear of them sinking and within a couple of weeks they were parched. Extreme weather appears to be the new normal and farming in this new environment will be challenging.

There have been positives, of course. The milk price has returned to a level that has brought confidence back to the dairy sector and meat prices are pretty good too. Horticulture continues to thrive.

It has also been great to see the way rural people have become more open, both to nonfarmers and to each other. We’ve opened our farmgates to show what life on a farm is really like.

We’ve also opened our hearts to each other to shine some sunlight onto the issues of depression and well-being that have perhaps gone unheard in the past.

Through all these ups and downs there are those – some known and some less well-known – who work tirelessly to make our industry what it is. We’re telling the stories of a few of those Land Champions in this issue.

Finally, thanks for reading. I hope we’ve informed, challenged and helped make you better farmers in some small way.

Have a safe and happy Christmas.

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News

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

3

MPI stops killing cattle Annette Scott annette.scott@nzx.com THE Ministry for Primary Industries has put a halt to culling any more dairy herds infected with the cattle disease Mycoplasma bovis following the latest outbreaks.

After five months of containment in the South Island the disease had now been detected on a farm in Hawke’s Bay. The Hastings farm was one of four more infected properties announced by MPI last Tuesday with the other three all from the same farming enterprise at Winton in Southland.

It would be premature now to kill another herd – anywhere.

Geoff Gwyn MPI The disease was also strongly suspected on a farm near Ashburton.

MPI response director Geoff Gwyn said the new outbreaks were not good news.

But the good news was the indication all the properties linked to the initial source of the van Leeuwen group of farms in South Canterbury.

All the cattle movements were before July 21 when the disease was notified.

The Hastings and Ashburton properties were identified through MPI’s tracing programme with the Winton enterprise identified through the industry milk testing programme.

Gwyn said there was lot of uncertainty as MPI continued to analyse what the latest outbreaks

meant for the wider response.

“Our investigators are building a picture of stock movements onto and off these farms so we will not be making hasty decisions on next steps.”

Meantime, the eradication of further cattle was not an immediate option.

“It would be premature now, given these latest outbreaks, to kill another herd – anywhere.

“It may still be the right strategy once we determine the implications of these latest finds but right now we don’t know for certain so we’re holding off,” Gwyn said.

“The key is less about geographics and more about relationship to the initial infected properties.

“The bad news is we don’t know at the moment just how far and wide these relations are.”

Federated Farmers Hawke’s Bay president Will Foley said farmers were absolutely shocked to learn Mb had arrived in their region.

“We were thinking we were so far away it would be quite unlikely to get to us.

“Now there is a whole lot of questions on how the response let this happen to us in Hawke’s Bay but really this situation may not be as new as some may believe.

“The lack of information has had people jumping to conclusions that the horse has bolted and that has created a lot of anger and frustration.

“The meeting with MPI can’t come soon enough for us all to learn more,” Foley said.

Southland Feds president Allan Baird said farmers in the region had now had their worst fears realised.

“There is a lot more vigilance and farmers are stepping up their biosecurity.

“It is clear there needs to be a longer term strategy approach now than just going out and killing animals,” Baird said.

Gwyn said an international advisory team that had assembled in Wellington last week had delivered encouraging news.

“This included disease and risk assessor experts and epidemiology experts from Australia, Canada, America, the United Kingdom and NZ and their view was this response was the most extensive response work seen internationally.

“It’s good to have that tick in the box.”

The advisory team had reviewed the pathways report on the potential source of the disease to NZ and while it was planned to release the report before Christmas, the review had identified areas that required further attention and that had delayed the release.

“It will still be publicly released but that won’t happen now until into the new year,” Gwyn said.

Meantime, the culling of 4000 cattle from the seven infected

van Leeuwen properties was complete.

“But no one is packing up the tent and going home,” Gwyn said.

“While we could say the South Canterbury region is in holding mode the focus goes on Hastings and Southland and we will have a team of 30 staff working right through the holiday period.

MPI had public meetings scheduled in Winton on Tuesday December 19 and in Hastings on Wednesday December 20.

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News

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

Primary exports to grow 8.5% Richard Rennie richard.rennie@nzx.com THE strongest growth in primary sector exports since the white gold milk powder boom of 2014 is expected next year, Ministry for Primary Industries projections show.

However, this time the growth in value would come from a far broader range of primary products returning higher values, with almost all sectors upbeat on returns.

In the December MPI Situation and Outlook for Primary Industries report, MPI analysts attribute the predicted 8.5% increase in export earnings to a broad and robust demand for dairy and forestry, an improving red meat demand and continuing expansion in the horticultural sector.

In 2014 primary produce exports had an 18% jump in earnings but dairying contributed three-quarters of it.

This time the mammoth dairy sector still contributed the most to the forecast increase, despite $250 million of shine coming off MPI’s

SOLID BASE: Gains in primary sector exports next year should be sustainable because they are spread across all sectors, Agriculture Minister Damien O’Connor says.

September forecast because global prices had softened.

The sector was still expected to be up $2.2 billion to $16.84b, providing 68% of the increase.

The 2014 figure of $17.8b earnings for the dairy sector was a reminder of just how huge the surge in milk powder prices was, driving dairy farm payouts to

an industry record of $8.40/kg milksolids.

The optimism of the report stems from a continued upbeat prediction for weather, despite sweltering, dry conditions lately.

The report said NIWA expected normal soil moisture levels and meteorologists continued to predict a break in the dry spell as wetter northeasterly conditions

prevailed later in summer.

The New Zealand dollar had weakened in the post-election environment, down from its two-year July high of US75.6c to US69c, significantly moderating the fall in dairy prices.

The Food and Agriculture Organisation’s food price index was at its highest point since 2014, bolstered by sustained high red meat prices and dairy continuing to hold its own.

Beef was expected to perform at the same level as a year ago and tight sheep meat supplies here and weaker production in Australia had helped underpin the $300 million increase in sheep meat returns.

That was paralleled by horticulture where strong demand for Gold kiwifruit was being matched by growth in pipfruit and wine production, to push the sector to $5.4b earnings.

Agriculture Minister Damian O’Connor said the growth in the primary export sector was encouraging and, being spread across all sectors, the gains were expected to be built on a sustainable foundation.

“Despite a decline in cow numbers there has been some better value for exporters. The forestry sector is on pace for a third consecutive year of strong export growth with exceptional demand from China,” he said.

The figures for dairy also showed encouraging signs the industry’s value-add approach was starting to work with infant formula expected to exceed $1b in earnings for the first time. UHT and yoghurt products were also forecast to touch $1b in earnings for the first time.

Forestry exports were expected to equal the horticultural sector with a value of nearly $5.7b in 2018.

After a dip following last season’s abysmal honey harvest the coming year was expected to have that sector also back on track earning $350m in exports.

The other primary exports sector with its range of processed products, honey, cereals and animal exports would earn almost $2.7b. Processed foods now accounted for a quarter, $770m, of that after being worth only $300m only four years ago.

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NOT A BOOT CLEANER: A hedgehog made with shearing handpiece parts

by Terry Hawkins of Kimbolton.

Rural NZ urged to get creative FARMERS across the country are being urged to get creative and enter the New Zealand Rural Sculpture Awards.

Community leaders in Kimbolton have got together to form an arts trust to host the inaugural event in April.

Kimbolton Arts and Sculpture Trust chairman Tony Waugh said his group was calling for entries from farmers, artists and others with a connection to the land.

“We are looking to provide an incentive for anyone who works land or has something to say about the NZ landscape to leave their worries about making ends meet behind and engage with bigger ideas.”

Waugh said northern Manawatu villages would work together to create an annual festival to showcase the sculpture competition.

“We want to be a more engaged, creative community and so we are starting with ourselves – getting together with neighbours to make

something happen.

“The next layer is to be a catalyst to encourage others to make sculpture and art.

“We know there are a lot of talented people in the regions.

We hope that by giving them support and encouragement it will become more normal for rural people to describe themselves as creatives – artists, sculptors, musicians and poets.”

Waugh said research showed self-expressed creativity was one of the most powerful sources of human happiness.

“It seems to us that providing a platform for creativity is a positive alternative to being focused on problems.”

There were a number of categories with one just for farmers and another for school pupils.

The entries would be showcased at a festival in Kimbolton on April 28.

MORE:

Further information at ruralart.nz

News

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

Time to act to put stop on Canada Nigel Stirling nigel.g.stirling@gmail.com CANADIAN subsidies helping to drive down global skim milk powder prices are illegal and the Government should waste no time in challenging them at the World Trade Organisation, former Trade Minister Todd McClay says.

McClay was still taking advice from officials on a possible WTO case until his National-led government was dumped after September’s general election.

“I have no doubt in my mind that Canada is breaking WTO rules and they need a very strong message sent to them that we will be going down the route of WTO action unless they change this behaviour, which is harming our farmers.”

It is more than a year since a coalition of international dairy industries called on their respective governments to

challenge Canada’s new Milk Class 7, which, they said, breached a WTO ban on export subsidies.

The major dairy processing bodies of New Zealand, the United States, Australia, Argentina, the European Union and Mexico followed up with another letter in June urging action but as yet no government has initiated a case.

In NZ the incoming Government had its hands full carving out a new position in the Trans Pacific Partnership talks and was yet to comment.

But McClay believed the threshold for a WTO case had been met and the Government should not hold back.

“There is now evidence that Canada is dumping skim milk powder in a number of markets where we do well with more than 100% increase in volumes and it is starting to have an impact on prices.”

Dairy Companies Association

chairman Malcolm Bailey estimated close to 100,000t of SMP had found its way on to world markets that would not have happened without the new Canadian pricing system.

While considerably less than the nearly 400,000t in the European Union’s intervention stocks, Bailey said it was having a disproportionate impact on the global market for SMP. While the Europeans’ objective was to turn a profit from its stockpile, Canadian exporters were selling heavily subsidised SMP for as much as US$300/t below the world price and creating chaos.

“We believe the rational behaviour and expectations in the market around Europe are quite different to the tactics being followed by the Canadians.”

Returning last week from Ottawa and Washington DC Bailey said US dairy groups were

5

TACTICS: Canadian farmers and processors feign surprise when confronted with allegations of illegal export susbidies, Dairy Companies Association chairman Malcolm Bailey says.

backed up by agriculture and trade officials who also expressed support for a legal challenge.

That was despite President Donald Trump’s well-documented antagonism towards the WTO dispute settlement body’s record of adjudicating on the US’s trade disputes.

“They are well briefed on the problem and the importance of resolving it and they really do want to join a WTO dispute to sort it out.”

In Ottawa, by contrast, Canadian farmer and processor groups feigned surprise when confronted by allegations of

illegal export subsidies.

That appeared to be a deliberate tactic.

“My conclusion is that there is an orchestrated approach of just pushing people back and continuing to buy time while their increase in milk production is cemented in place by investment in milk processing.”

In August Chinese company Feihe International confirmed it would invest C$225m in a dairy plant in Ontario that would turn Milk Class 7 milk into the base materials for 60,000 tonnes of infant formula to be exported to China annually.

Kiwi plan to cut subsidies gets the chop Nigel Stirling nigel.g.stirling@gmail.com A PROPOSAL by New Zealand to rein in the galloping use of agricultural subsidies has sunk without a trace at global trade talks.

NZ’s proposal was one of several on the table to tackle farm subsidies ahead of the World Trade Organisation’s 11th biennial meeting of trade ministers in Argentina last week.

Returning from the meeting Trade Minister David Parker expressed his disappointment that no progress was made.

“We’re pretty disappointed that on agriculture the conference wasn’t ready to agree to cap the subsidies that major countries give their agriculture sectors, which distort world markets and disadvantage not just our farmers but subsistence farmers in developing countries.”

Progress expected on fishing subsides and subsidies for consumers of fossil fuels also crashed and ministers were unable to even agree on a concluding statement that would have reaffirmed several of the core principals of the 167-country organisation.

The meeting in Argentina came after several small wins at the previous two WTO ministerial meetings in 2013 and 2015 when members agreed to ban subsidies for agricultural exports.

However, the organisation had come in for heavy criticism from the United States since the election of President Donald Trump who believed it unfairly favoured competitors such as China.

Given that criticism the Government’s agricultural trade envoy Mike Petersen said it was an achievement that the WTO had survived to fight another day.

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remained vitally important to NZ as the best means of tackling global agricultural subsidies, which, for the top nine countries, had increased by US$250 billion between 2001 and 2014 and were on track to hit US$1 trillion by 2030. NZ’s proposal heading into the Argentina meeting was for a fixed monetary cap set above current subsidy limits.

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“There was certainly some concern going into this meeting that the WTO could blow apart.

“The fact that it has stayed together … is frankly a victory.”

However, he said the patience of the rest of the membership was not unlimited and countries needed to act quickly to come up with new proposals.

“It makes the next meeting in two years’ time very important because if they went through two ministerial meeting cycles where they failed to agree any outcomes then people would really question the value of the WTO.” Petersen said the WTO

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News

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

New bodies will stay in ministry THE Ministry for Primary Industries will not be split under the new Government but will instead serve as an overarching body for four portfolio-based entities focused on fisheries, forestry, biosecurity and food safety.

Agriculture, Biosecurity, Food Safety and Rural Communities Minister Damien O’Connor announced the changes saying a driving factor behind the decision not to split the ministry was the importance of maintaining its status as the competent authority to provide consistency and certainty to international certification agencies and trading partners.

“We had the unfortunate incident when MPI was formed that the competent authority was not recognised by our overseas trading partners, meat sat on the wharves in China,” O’Connor said.

“We believe that maintaining the Ministry for Primary Industries as the competent authority to deal with those certification issues will remove the risk of that occurring again.”

The changes would cost $6.8 million to establish the four

It’s nothing more than a pointless rebranding exercise.

Nathan Guy National units and $2.3 million in annual operating costs.

That money would be taken out of the Primary Growth Partnership Fund.

The Government was still reviewing the funding of the PGPs. There would be no job losses at the ministry and some staff would move into more specialised roles or work across the new portfolios, O’Connor said.

The ministerial portfolios had been split between O’Connor, Fisheries Minister Stuart Nash, Forestry Minister Shane Jones and Associate Agriculture Minister Meka Whaitiri.

O’Connor said the Government was looking to derive more value from agricultural products and would set up a primary sector council to help with strategic

COMFORTABLE: Federated Farmers president Katie Milne says the Government has taken a pragmatic approach to reorganising the Ministry for Primary Industries but farmers want to see value, particularly in biosecurity.

planning by the middle of 2018.

“We can’t continue to increase the volumes without adverse effects on the environment.

“We’ve got to increase the value from each and every one of those areas,” he said.

“We’ll be looking for new, visionary and strategic thinkers across the industry – people who can show some new vision for agriculture, horticulture and New

Zealand as a producer of food.

“We should have a stronger focus on better value products from this country, better branding, better appreciation and better integrity behind those products that we sell.”

Federated Farmers president Katie Milne said moving to four portfolio-based units in the ministry was a pragmatic approach.

“We certainly didn’t want to see the upheaval and expense of a total carve-up of MPI. “This course avoids wholesale disruption, preserves the ministry’s status as a competent authority for trading partners and certification agencies and allows staff to get on with their jobs during the refocus,” she said.

Milne was also pleased the cost of the move wasn’t as much as it could have been.

“Nevertheless, this is money taken from the Primary Growth Partnership Fund so farmers will want to see value from the exercise in terms of more responsive and innovative business units, particularly in biosecurity.”

National’s agriculture spokesman Nathan Guy called the move wasteful and ill-conceived.

“It’s nothing more than a pointless rebranding exercise.

“We put these three agencies together in 2011 and it’s a complete waste of money to pull them apart again.

“The worst part of it is, though, that the money is essentially being fleeced from the Primary Growth Partnership Fund – used for essential research and development – to pay for bureaucracy.

“It’s just a waste of taxpayers’ money which would have been better invested in growing our primary industries,” Guy said.

– BusinessDesk and

staff reporters

Land Champions

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

7

Star trio already land champions Annette Scott annette.scott@nzx.com THREE Young Farmers Club members have been recognised as future primary industry leaders by their national organisation.

The Young Farmers excellence awards went to Prime Minister’s Award winner Sarah Tait, mental health advocate Sam Robinson, both from Mid Canterbury, and Hamilton’s DairyNZ high flyer Zach Mounsey.

The annual awards, in their second year, recognised the talent in rural communities and highlighted the outstanding young leaders in the organisation, Young Farmers chief executive Terry Copeland said.

Robinson, from the Methven club, made an impact on the mental health and wellbeing landscape for rural youth when he courageously shared his own near fatal battle with depression.

His biggest hurdle, he said, was facing reality, coming out in the open and fronting up to friends.

The young over-achiever and former Mt Hutt College head boy had been a smart high school student driven by his future career prospects – until he stumbled on his own expectations.

The once confident young man, now 27, began to experience depression in 2008. He hit rock bottom in 2016.

He ditched all he once strived for, tertiary qualifications and a career in farming and abandoned all his friends.

It was a gutsy story that solicited huge support nationwide.

Using his own experience Robinson, a Lincoln University student, set in motion a positive chain of events that led to young people speaking up and Young Farmers taking a leading role in highlighting and working on the issue.

Fellow Methven club member and PGG Wrightson agronomist

OPENING UP: Sam Robinson’s personal story raised mental health as an issue for young people.

We are extremely proud of the role our organisation continues to play in developing the primary industry’s future leaders.

Terry Copeland Young Farmers Tait was recognised for the Empty Plate Project she initiated earlier this year to encourage young people into the agri-food sector.

Tait invited 5000 Canterbury students to take part in a competition by describing global

Better

BUSY LAD: Zach Mounsey was already in leadership roles while studying at university.

food security and NZ’s role in it.

The 26-year-old who grew up on a Mid Canterbury farm and had worked on farms in Western Australia, England and Chile, now spent a lot of time talking in schools and promoting her project to youngsters.

The inspiration for the project had come from a study trip she made to Columbia as part of her scholarship.

Struck by the hunger she saw she came up with her idea with a vision it would reinforce agriculture’s role in food production. Tait also represented NZ at a food security conference in Canberra last year.

Passionate about Latin America and the role the NZ agri-food sector could play there she was

SHOWING THE WAY: Sarah Tait is inspiring young people to choose careers in the primary sector.

now completing her master’s degree on primary industry opportunities for NZ in Latin America.

Mounsey, from the Hamilton City club, had numerous achievements and awards to his name including studying some of the world’s most complex issues as a Ministry for Primary Industries delegate to Argentina in 2015.

The 27-year-old sharemilker with an equity stake in the family farm had excelled as a strategist and economist in varied roles in the dairy industry.

Now the technical assistant to DairyNZ chief executive Tim Mackle, Mounsey previously held roles in public trading and finance with Fonterra.

His leadership abilities had been to the fore from an early age and included being Federated Farmers sharemilkers’ section delegate in Otorohonga-King County before going on to become chairman at the same time he was at university.

Mounsey was a Kellogg Rural Leadership Programme graduate and in 2015 was the NZ delegate to the Global Youth Agriculture Summit.

Copeland said all three awardees were without doubt outstanding in their fields while showcasing a wide variety of talents.

“We are extremely proud of the role our organisation continues to play in developing the primary industry’s future leaders,” he said.

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

Land Champions

Giving new life to old dogs Richard Rennie richard.rennie@nzx.com IT IS no easy thing for a working dog to retire from the daily business of herding, heading and retrieving stock on the farm.

Then again, nor is it easy for the owners of these dogs when it comes time to retire them.

Often they find they have little choice but to have them put down and wear the inevitable sense of guilt that goes with balancing economic necessity against the staunch canine loyalty working dogs inevitably deliver.

But Natalie Smith has spent the past few years not only providing a fulfilling retirement option for those hard working dogs but a valued option for their owners who can’t keep them and are loath to see them put down.

Smith established the Retired Working Dogs Adoption Network five years ago and since then has found new homes and given a new life to more than 200 dogs.

They are canines often too old to farm but not old enough to give up or be given up on.

The self-professed dog lover worked as a veterinary nurse in Pahiatua and found the toughest part of her job was seeing those old dogs being put down as they faced the end of their working life.

She attributed the start of the network to an old dog, Todd, that arrived at the clinic one day for his last visit.

“He was coming in to be put down but I could tell he really was not ready to go yet so I adopted him.

“He got another five good years of life after we took him in. He ended up on my parents’ lifestyle block, rounding up dad’s chickens.”

He was the lucky first for what were initially local dogs from the strong drystock region to be rehomed.

But thanks to Facebook the

He was coming in to be put down but I could tell he really was not ready to go yet so I adopted him.

Natalie Smith Dog rescuer

WORKED UP: Kayla Groves of Totally Vets with Cilla, Natalie Smith with Jake and Helen Sheard, also from Totally Vets, with Jack.

supply of dogs and the demand for them expanded rapidly to encompass both islands and other eligible dogs.

Thanks to her connections with the SPCA she had also learnt of other dogs that might be in need of a new home.

She had even travelled as far south as Otago to collect a dog and take him to his new home.

“That one ended up being something of a road trip from Mosgiel to Ekatahuna, just me and the dog.”

Her contacts through her new job as a sales representative for Royal Canin pet food meant vet clinics would also often contact her about dogs needing new homes.

She had also developed a strong

foster home network for dogs to be looked after until they were put in a permanent new home.

“We also include young failed dogs that for whatever reason are not suitable to remain as farm dogs. The foster homes take them and the old dogs in and retrain them.

“Sometimes these dogs have never had anything to do with cats or kids or never been inside a house. They go out on trial for a month to the new owner to see how they integrate as a trial run.”

Smith got a particular buzz out of helping the failed dogs find their place in the world, rather than being the ones that got taken down the back of the farm and didn’t come back.

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for the dogs would be a lifestyle block dweller with a small number of animals who needed a dog that knew how to manage itself around stock.

“And that also gives that dog a purpose.

“They love to keep working as long as they can.

“Even if they are failed dogs on the farm they usually still have the discipline and obedience that makes them great to have around.”

Some would even move sideways to dairy farms, with the twice daily routine of milking enough to keep them busy, without the constant pressure on aging limbs of steep terrain and large mobs of hill country stock to manage.

Ever humble, Smith acknowledged the commitment of the foster home network for helping spread the successful initiative nationally.

She also enjoyed strong support from her employer Royal Canin that supplied quality dog food to the foster homes scattered around the lower North Island.

She also enjoyed help from an expanding network of supportive vet clinics including Totally Vets in Feilding that offered pro bono vet work as required on the dogs.

Contrary to what many of their owners might believe, many of the dogs took well to retirement in cities and towns.

“Some of the homes these dogs end up living in are absolutely fantastic.

“They might take a couple of days to settle in then, before you know it, they are sleeping in front of the fire.”

Many of the urban owners also enjoyed having an old dog with a history and roots in rural New Zealand.

With its huge drystock farm catchment the lower North Island was proving a fruitful source for the dogs and left Smith assured she might well have a sideline job for life with the network, poised to be registered as a charitable trust.

“I am very fortunate to have a very supportive network of people around me to help give these dogs a longer, better life than they may have had before.”

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10 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 18, 2017

Land Champions

Clear goals set farm’s agenda Annette Scott annette.scott@nzx.com

PRIVILEGE: Smart technology rules at Annadale for Chris and Anne-Marie Allen who acknowledge it is a privilege to access water, savouring every drop from their irrigation storage pond.

Photo: Annette Scott

MID Canterbury foothills farmers Chris and AnneMarie Allen have very clear goals for their sheep and beef farm and are keen to share their story.

Their business strategy was tightly aligned to their goals, measuring the impact of their farming footprint as they increased farm productivity and continued to develop best practice management strategies.

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“Farming is our livelihood so we need to be passionate about how we use our resources and be willing to share our knowledge as we tell the good story in meeting the needs of our customers,” the couple said.

Chris was an advocate for environmental awareness and best practice onfarm. He was the Federated Farmers national spokesman for water and the environment and a member of the Ashburton zone committee for water management.

He and Anne-Marie had built key relationships with local and regional government bodies as they continued to improve their Annadale farming operation through integration of sustainable precision farming techniques.

“Managing water is a big issue and it is a case of walking the talk before you can talk the walk – it’s speaking with a practical voice,” Chris said.

“And farmers need to tell the story of what they are doing and why they are doing it – that’s what the customers and general public want to hear.

“If we don’t tell our own story nobody else is going to tell it for us,” Anne-Marie said.

The Allens are nearing the end of extensive irrigation development but their passion for increasing productivity is more than equalled by their passion for using water as best they possibly can.

“I have a real passion for the Ashburton River, to make sure it’s there for our livelihood. We are very reliant on it to run a successful farming business and we need to ensure it stays that way for future generations,” Chris said.

Getting involved in decision-making processes was the best way to get the right decisions.

“If you are not involved and helping make the decisions then someone else with a lot less local knowledge will make them for us and they may not necessarily be the right decisions for now or for future generations.”

Irrigation for the Allens was about precision rainfall. “The right amount at the right time in the right place for what the crop needs – that’s what drives us. We don’t use more than we need and it’s all part of precision agriculture.”

The winners of the Silver Fern Farms (SFF) Plate to Pasture 2016 award, a competition that recognised the lengths farmers went to on their farms to meet the needs of consumers, had a great story to tell.

A story backed by their passion as food producers as they continued to increase the productivity of their farm with an increasing number of tools and smart technology to help them minimise soil and nutrient losses, all closely aligned with reducing their farming footprint. There were no silver bullets – instead carefully thought out farm plans and best management practices.

“We are on a journey of continuous improvement, looking to reduce our environmental footprint, investing in precision to make sure we are meeting market expectation,” Anne-Marie said.

“Our mission is to grow the best we possibly can in the most environmentally friendly way – telling that story along the journey.”

The importance of using science to inform industry advocacy and action was crucial for the Allens to underpin the environmental claims of their farming system to the public, consumers and to the export markets.

“Our goals are clear – enjoy life for family and the farming team, to be financially viable to enable further development, in particular of water and riparian management that are key areas of importance to consumers.”

Annadale was a flexible farm system reliant on attention to detail and careful management of resources for its success.

The 360ha operation ran 1800 breeding ewes brought in as annual draft ewes, 400 hoggets, finishing 5500 lambs and 700 R1 and R2 cattle.

Average rainfall was 800mm, assisted by 350mm of irrigation while also coping with a 100-day winter.

Land Champions

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

11

Horse legend Jackie rocks on Alan Williams alan.williams@nzx.com JACKIE Hill’s first pony was young and spirited and often took off, leaving her standing at the side of the road facing a long walk home.

But it was going to take a lot more than that to put her off her love of horses and what became a passion for dressage.

Jackie was 12 when she was introduced to Gypsy, when she went from Christchurch to the country near Geraldine to stay with her sister and brother-inlaw while her parents travelled overseas.

Now, at 78 she’s still horse mad and after a lifetime competing at shows and a couple of decades officiating in various roles at the Canterbury A&P Association’s equestrian group, she’s been declared a Show Legend.

Jackie had no idea what was about to happen as she worked away in the office above the main ring at the showgrounds near the end of the mid-November show when a committee member came up and asked her to come and meet someone.

“We went down and round and when we went out to the ring I thought something was up and then they let me know, just before

the award.

“It was so unexpected and overwhelming and still so exciting.

“My family knew but hadn’t let on. That’s a bit of a worry.”

Show Legend is a big deal at the Canterbury A&P and Jackie’s still chuffed at the award.

She competed, mainly in dressage, till her mid-60s, was ringmaster at the Canterbury show for several years and was a judge for dressage and showjumping for a long time, judging all-round New Zealand and in Hong Kong.

In recent years she’s been taking the equestrian entries and sorting them out, making sure entrants are qualified to be riding at the show and are in their correct grades.

As a girl, Jackie lived fairly close to the Riccarton racecourse in Christchurch. Her father was keen on racing so she went with him to the stables and to the races and that was that.

By the time she was five she wanted a horse.

“My parents weren’t that keen so they bought me a rocking horse instead and I rode that to death.”

Later, when she went to live with her sister for a time she found an ally in her brother-in-law who was also keen on horses.

SURPRISE: Jackie Hill wasn’t told of her award till just before she was named as a Show Legend.

bike, carrying the saddle.”

After she outgrew Gypsy her brother-in-law organised a bigger pony for her, for showjumping.

The interest in dressage came after her marriage when she and husband Geoff bought land at Yaldhurst, with room for a horse.

“I loved training the horses and

“He wrote to my parents while they were away and said I’d need to have a pony to get to school and that’s when I got Gypsy.”

When her parents returned Gypsy went with her to Christchurch.

“We kept him near the racecourse and I remember riding there and back on my

it was a lot of work getting them up to standard. It was exacting.

You needed a lot of patience and I loved it.”

As a competitor, Jackie “won the odd ribbon at the odd show” but enjoyment was her main focus.

She had four horses through her dressage years. One of them, The Governor, she rode till he was in his 20s.

Geoff is keen on horses too.

They’ve raced a few over the years, with one of them winning nine races.

With friends they did a lot of horse-trekking, mainly up through the Clarence and Molesworth areas of the upper South Island.

Nowadays they ride occasionally, mainly at Christmas when they go to see their son Richard who farms at Flock Hill in inland Canterbury.

“We’ve a grand-daughter who is riding, hunting and jumping in the ring so I go and watch her and enjoy that. I’m as keen as ever. I just love going and watching the show horses.”

Becoming the Show Legend isn’t a retirement ticket for this great enthusiast.

“I’ll keep on going back to the show and I have to be there next year because my godson Tim Black is coming in as president.”

“

Every cow has its own personality.

This year we had friendly Junior born, we’ve got 101 who’s the Queen, we’ve got Ardie Savea with a hairstyle, we’ve got 166 who needs a scratch every time you see her.

Chris and Siobhan O’Malley – 2017 Sharefarmers of the Year

Real Farming in Action Chris and Siobhan O’Malley switched careers to dairying and have never looked back. Taking out the 2017 Sharefarmer of the Year title, they talk to Craig Wiggins about the keys to success in a dairy career.

Watch the latest short video on the O’Malleys’ approach to healthy and responsible calf rearing.

The bond they form with their calves flows through to adulthood and the O’Malleys are set on rearing happy cows. “We look after them and they look after us in the same way.”

Watch our real farming stories on Farmer’s Voice farmersweekly.co.nz/farmers-voice

”

Land Champions

12 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 18, 2017

Eaters pay for meeting standards MIKE and Sharon Barton, at Tihoi on the western shore of Lake Taupo, believe they have pioneered the future of beef farming in New Zealand.

Few farmers could claim to reframe the NZ farming business model while trying to survive under a nitrogen cap that keeps livestock numbers the same as in 2004.

They have been forced to add value to their beef and now believe the rest of NZ might need to do the same.

Since 2004, when their livestock numbers were essentially capped in perpetuity, farm costs had risen 48% and beef income had risen only 20%, much of the increase during the past year of good export prices.

To help bridge the gap the Bartons launched Taupo Beef in 2009, now called Taupo Beef and Lamb, with an environmental standard backed by Waikato Regional Council.

It was the first regional council accreditation nationwide and was possible only because all farms in the catchment were capped and audited annually for compliance to their nitrogen limits.

A number of Taupo catchment farms now supplied livestock under wholesaler Neat Meat’s Harmony label in North Island supermarkets and meat retailers, to local restaurants and a new relationship with a small Japanese retail group.

By paying a premium for the meat consumers were contributing the costs of protecting Lake Taupo, which

already had some of the purest water in the world, even though they might never see or use the lake.

Some of the former adversaries during Taupo environmental hearings were now the best customers. They also suggested the Grown Right Here tagline.

NZ farming for the past 50 or more years had intensified and properties had been merged to combat declining real returns but that could not continue indefinitely, Mike argued.

“Because eating is the final agricultural act, we have effectively challenged the consumer to seek out food that protects Taupo water quality at premium prices they are willing to pay.

“We cannot continue to occupy the commodity space. Instead, we must establish brand values that pay the costs of environmental, biodiversity and greenhouse gas limits.”

It would take a generation to fully convert the consumers, especially older ones who grew up with cheap meat and no environmental consequences, he believed.

A NZ brand with environmental guarantees was also needed because the bulk of production was exported and consumers would not cope with 16 different regional brands.

“How do you certify the behaviour and the environmental impacts of farmers in Kaipara and those in Taupo or the Rangitata River catchment in Canterbury to be meaningful to consumers around the world?”

The Bartons’ Glen Emmreth Farm carried 2000 stock units, all

VALUES: Mike and Sharon Barton have forged a new way of farming to encourage consumers to pay the costs of environmental limits around Lake Taupo.

beef, on 128ha effective, including an 8ha lease block.

On an all-grass system with no imported supplements, CharolaisAngus heifers were brought in as weaners and finished as rising two-year-olds.

The business had received several awards, including supreme award in the 2014 Ballance Farm Environment Award in Waikato region and the supreme award for the greatest single contribution to a sustainable NZ in 2015, from the Sustainable Business Network.

Mike also received the Queen’s Service Medal for services to farming and the environment in the Queen’s Birthday Honours 2014.

At a recent Beef + Lamb NZ field day in Northland he said the lake protection legislation was gazetted in 2012 after 12 years of negotiating and catchment science.

Every stream in the catchment had been fenced and planted since the 1980s and while that stopped E coli, phosphorus and sediment from entering the lake, nitrogen leached down through the soil profile until it moved horizontally into the lake, taking perhaps 80 years to do so.

Native and exotic forest and unimproved land accounted for 80% of the area in the catchment and farming only 20%.

Yet the unimproved land and forests leached 3kg/ha/year versus 17kg from sheep, beef and deer farms and 45kg from dairy farms.

It was not because the farms used excessive nitrogen fertilisers but from livestock urine.

Something had to be done because 93% of the manageable or man-made nitrogen entering the lake came from farming.

There were 105 farms in the catchment at that stage, four of them dairying.

The solution agreed by all stakeholders through the Environment Court was to reduce the amount of nitrogen reaching the lake by 20% through buying back close to 30% of farms and converting them to forestry.

Four dairy farms remained, plus 73 sheep, beef and deer farms with the balance converted to forestry or shut down.

The remaining farms were capped at their 2001-2004 livestock numbers in perpetuity with the option to intensify taken away.

Letterof theWeek

Powered by FW - The New Zealand Farmers Weekly is published by NZX Agri Global HQ. PO Box 529, Feilding 4740. New Zealand Phone: 06 323 6393 Fax: 06 323 7101 Toll free: 0800 85 25 80 Website: www.farmersweekly.co.nz EDITOR Bryan Gibson bryan.gibson@nzx.com

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The Bartons changed from breeding cows to younger, faster-growing and more efficient heifers, stocked at 15-16su/ha.

“We grow the animals every day of their lives to reduce their lifetime emissions footprint,” Mike said.

“If they are not gaining weight they are still peeing but not making money.”

They had been able to increase the carcase weight production per hectare to 320-350kg and lift the meat returns through branding and promotion but the premiums were not yet paying the full costs of protecting the lake.

“Farmers have never before asked consumers to pay the environmental costs of producing meat so we can’t expect them to pay it all immediately.

“But we have started the conversation with consumers so that over time, as environmental costs increase, we hope to get them to contribute more.”

Barton said the whole of NZ agriculture would need to travel that path becaise farming with environmental limits was not possible on commodity returns.

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Land Champions

14 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 18, 2017

Parsons: B+LNZ now more relevant Hugh Stringleman hugh.stringleman@nzx.com WHEN interviewed, James and Janine Parsons were preparing a picnic lunch to take to their Tangowahine, Northland, farm the following day where they would shear the hoggets.

A conventional farming story but its familiarity belies some extraordinary achievements for the young couple.

Firstly, James Parsons had about three months to go to complete his nine years as a Beef + Lamb New Zealand director for northern North Island, the last four of them as chairman.

When he announced his March 2018 retirement in November, at the ripe old age of 40, he was also the longest-serving director.

In this writer’s primary sector experience, which coincided with James’ age, not many producer board chairmen did all their own shearing while in office or afterwards.

Secondly, registered nurse Janine was going to help on the farm on her day off from work as lactation adviser for new mothers at the Whangarei District Health Board.

That would be after getting three young boys, Corin, 12, Matthew, 10, and Joseph, 7, off to

AT HOME: Retiring Beef + Lamb New Zealand chairman James Parsons at the family’s home near Whangarei with wife Janine and three boys, from left, Corin, Joseph and Matthew.

school at Maungatapere Primary before travelling 20km to the farm.

For most of the nine years James was a B+LNZ director he worked a 40-hour week on board activities while still actively farming, perhaps more when chairman – which in practice meant Janine did a large share of the farm work.

That was often lonely and physically tiring on the then family farm at Broadwood, south of Kaitaia.

They had not kept a record of the nights that James spent away from home.

But Janine did admit that the five months James spent overseas

on his Nuffield Scholarship in 2008 were the worst.

His subsequent report into supply chain structure gave him farmer recognition for a comprehensive win over incumbent Tom Mandeno when James first contested the northern seat on Meat and Wool NZ. Relocating to Maungatapere certainly addressed the isolation.

Thirdly, James had spent the day in Bay of Islands for a Top Energy board meeting, for which he is a director, including slipping away at lunch time for the final River Run Suffolk ram sale at Waimate North.

The Parsons bought the stud from Peter and Shona Cook and would run it at Tangowahine alongside the Ashgrove Coopworth stud they acquired in 2014 from David Hartles.

Registered sheep now number 340 Coopworth ewes and hoggets, plus 90 Suffolk and Sufftex.

The Parsons have in total 2000 ewes and hoggets, 60 beef cows and 30 replacements and carry about 220 dairy-beef bulls on 478ha.

They employ a farm manager, Ed Long and his wife Juanita, who live on the property.

Now the sole remaining Coopworth stud owner in Northland, James had spent two weeks since his third annual November Ashgrove sale delivering the 61 rams sold at an average of $1345 around Northland.

For sheep farmers in the north, buying rams from the chairman and having them delivered facilitated a first-hand briefing on the state of the industry.

On becoming chairman in early 2014, succeeding Mike Petersen, James renewed his faith in the industry by selling up at Broadwood and taking on a bigger, steep hill country farm 100km south at Tangowahine.

Tangowahine was benchmarked

in the top 10% of NZ sheep and beef farms for productivity and docked 153% lambs off steep hill country this season.

Yet James had some improvements in mind, plus growing the size of the stud when his board duties ended.

“It has been hard on Janine and the boys but for me it was a wonderful blend of farming and travel for industry governance.

“I could be doing something very practical and rewarding on the farm in the morning and be chairing a meeting Wellington in the afternoon.

“That’s why many farmers make good directors – they have thinking time when out on the farm.

James had been innovative throughout his farming time and perhaps a little too eager for optimum profitability.

“We probably could have done better if I had been a follower of proven technology and not so innovative.

“For instance, if we didn’t have the recorded sheep, electronic animal identification wouldn’t be needed, in my view.

“Good farming consists of doing the basics well with excellent timing, which has been hard to do when I have been off the farm for much of the time.”

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Phone 0800 224 782 or go to www.nzfarmlife.co.nz Congratulations to our UBCO 2X2 BIKE winners Canterbury sharemilker Paul Hurst, Rangiora, and Otago sheep-beef farmer James Hill, from Teviot, near Roxburgh.

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Wishing you a Merry Christmas and a Happy New Year from our team.

If you have been unable to sell your farm then we would love to help you to get your property SOLD. Just call 0800FARMTEAM for action.

SOLD

FOR SALE LOCATION, LOCATION

• Situated on Rangitikei Line west of Palmerston North is this outstanding 176 hectare parcel of land.

• Exceptional soils that are currently used for dairy farming and growing maize crops, but would suit a number of uses.

• Deep lead irrigation bore in place to supply top quality water for up to 70 hectares of land for crops.

• Current dairy infrastructure in place including a modern herringbone dairy and 400 cow feed pad.

• Would have a host of uses from market gardening, dairy or beef production, along with growing silage and crops.

• Very good road access with central laneway system.

• Call Les to inspect.

OUTSTANDING DAIRY RUNOFF

• Your chance to buy some of the Manawatu’s best soils that have previously been used for dairy farming.

• Situated on Roberts Line is this prime 68 acre property. Has previously been run as part of a larger dairy unit and has very good soil fertility.

• This block would grow maize, run young stock or winter cows.

• Has high pressure water to stock troughs and very good fencing.

• Cattle yards adjacent to the road with good load out facilities.

• Great chance to purchase now as our vendors are retiring.

• Price $1,250,000.

• Call Les to inspect.

GENUINELY GOOD DAIRY FARM

• This property consists of 116 hectares in five main titles and is situated on Hansens and Rangitikei Line, Newbury, Manawatu.

• Very well farmed with soils that would grow anything.

• Centrally located 30 aside herringbone dairy, with adjacent feed pad and silage bunkers.

• Featuring four family homes, main set in established gardens.

• Very good well water supplied via a 50mm main line to stock troughs.

• The farm is currently running a dairy herd and is currently consented for 400 cows and supplying Open Country Dairy.

• With outstanding soils, great location and potential to subdivide this is a great opportunity to grow your farm business or land bank.

• Asking $6,250,000. Call Les to inspect.

OPPORTUNITY TO GROW

HUKAVIEW

SCALE PLUS SOME

• Situated south of Whanganui is this 175ha farming opportunity.

• Features a 20 aside herringbone dairy and 300 cow yard with adjacent feed pad.

• The herd is split calving and milked all year supplying Open Country.

• Exceptional bore supplies water to stock troughs, dairy and houses.

• Large machinery shed, large silage bunker.

• There are two three bedroom family homes set in their own treed surrounds.

• Your chance to buy this farm with a flexible takeover date and take advantage of the coming season.

• RV 3mil, price reduced to $2,995,000.

• Call Les to inspect.

• Situated on Kakariki Road in the Hukanui District is this very well laid out and run 174ha dairy farm.

• Currently running a 300 cow milking herd of Holstein Friesians.

• The farm has produced up to 139,000kgs of milk solids on a consistent basis off the 114ha effective milking platform.

• Bore supplies high pressure water to all stock troughs and dairy.

• Top quality 32 aside herringbone dairy. Fully equipped with modern electronic Waikato plant with cup removers in-bail feeding and 480 cow circular yard.

• Great opportunity to secure one of the best farms in the Hukanui District.

• Call Les to inspect.

• Your opportunity to own this quality large scale dairy farm.

• Situated in the northern Horowhenua is this 1100 cow property.

• Has produced up to 600,00kgs/ms from the 425ha effective milking platform.

• Facilities include a centrally located 60 bail rotary dairy with in-bail feeding and a protrak system.

• Five houses including a substantial main home set in its own private location.

• Our vendors are looking to retire and have priced this property to sell at $16,250,000 Land and Buildings.

• They would consider selling their quality herd so call Les or Tim on 0274495547 to inspect.

RECENT SALES WANT MORE PRODUCTION?

YOUR CHOICE OF LIFESTYLE

D

D

L O S • • • • • • • •

Self contained 192ha dairy farm in the Manawatu.

Milking 2.2 cows/ha, herd wintered on, and maize silage grown.

Well laid out with a great mix of soils.

Modern facilities include a 40 bail rotary dairy built in 2010 with bail space for removers and automation.

Five bedroom family home set back off the road and a one bedroom self contained staff cottage.

Produced up to 960kgs ms/ha and 440/cow.

Own this top shelf dairy farm now for 1st June 2018.

Call Les to inspect.

L O S

• Situated in the Huranui District near Palmerston North City is this superb 209 acre farm in two titles.

• Currently being run as a beef/lamb finishing block, this farm could be used as a dairy runoff or for cropping.

• There is good track access to paddocks.

• This property features a full range of very good support buildings.

• The property has good drainage with Tile/Novaflo in place.

• A reticulated water system delivers high pressure water to troughs.

• There could be opportunities for future subdivision as part of the property is within the “Subdivision nodal zone”.

• Your chance to own an excellent rural property with a range of uses.

• Call Les to inspect.

Sallan Realty

Google ‘Sallan Realty’ Your Farm Sales Specialist

OUTSTANDING 300 COW FARM

D

L O S

• Kairanga is a finite area and if you want to farm and live close to the city, on the best soils, then this farm is for you.

• This outstanding property is 105ha in five titles.

• Currently run as a dairy farm that is producing well from the Friesian herd and currently supplying open country.

• This property is pretty much self contained with the help of 28ha lease block right next door.

• Maize crops grown on farm cut about 25 tonnes per annum.

• Facilities include a centrally located dairy with 400 cow feed pad and a very nice four bedroom family home.

• If you want a top property in a great location then this is your chance, so call Les to inspect.

LES CAIN 0274 420 582

Licensed Agent REAA 2008

Get your SOLD on with us Ongarue Back Rd, Taumarunui Sold for: $2,900,000 + GST Area: 315ha Katie Walker

756 Whangaehu Valley Rd, Masterton Area: 586ha Blair Stevens

2198 Wharekopae Road Area: 689ha Simon Bousfield & James Bolton-Riley

2286 SH 3, Mahoenui Sold for: $3.85m plus GST if any Area: 337ha Brian Peacocke

142 Mclachlans Road, Rakaia Area: 184ha Mike Preston

Sallan Realty

o s 1016 Aotearoa Road, Waipa Sold for: $3,800,000 + GST Area: 289ha Peter Wylie

160 Monckton Road Sold for: $9,170,000 + GST (if any) Area: 171ha (subject to survey) Stuart Gudsell & Sharon Evans

565 Te Awa Road, Oueroa, Central Hawke’s Bay Area: 352ha Andy Hunter & Sam Twigg

Maori Road, Waimate Area: 179ha Michael Richardson

901 Pigeon Bay Rd and Manuka Bay, Banks Peninsula Area: 500ha Ben Turner

260 Makaroro Road, Tikokino Area: 704ha (more or less) James Parsons

47 & 100 Goodwin Rd, Aka Aka Sold for: $47,837 per ha Area: 148.82ha Adrian van MIL

Douslins Gully Road, Havelock Sold for: $4,100,000 Area: 392ha Andy Poswillo

1027 Otama Valley Road, Wendon Area: 172.8ha Derek Ayson & Nigel Moore

599 Kaweora Road, Opunake Area: 138ha John Blundell

Moki Road, Taumarunui Sold for: $600,000 Area: Area: 139.011ha Peter Peter Wylie

426 Pukeatua Road, Taumarunui Sold for: $2,150,000 + GST Area: 357ha Katie Walker

169 Davidson Road, Matamata Sold for: $7,400,000 + GST (if any) Area: 121ha Sam Troughton

1048 Courtenay Road, Kirwee Sold for: $3,092,000 Area: 113ha Gareth Cox

245 Bleakhouse Road, Darfield, Canterbury Area: 108ha Ben Turner & Mike Adamson

1790 Elsthorpe Road, Elsthorpe Area: 557ha (more or less) Mike Heard & Hadley Brown

46 Mitchells Rd, Bankside, Canterbury Area: 231ha Ben Turner & Mike Adamson

493 Ram Paddock Road, Broomfield Area: 843.1426ha Peter Crean

418 Te Hau Road, Gisborne Sold for: $7,525,000 Area: 1199ha

Puketarata Rd, Otorohanga Sold for: $8.735m + GST if any Area: 166ha Brian Peacocke

758 Hackthorne Road, Ashburton Area: 119.7441ha Chris Murdoch

927 Koranga Valley Road Sold for: $7,039,000 Area: 1438ha

Main Drain Road Rangiotu Area: 118ha Les Cain

314 Puketutu Road, Matamata Sold for: $7,200,000 Area: 121ha Sam Troughton

99 Pehiri Road, Warenga-O-Kuri Sold for: $2,755,000 Area: 367ha James Bolton-Riley & Simon Bousfield

James Macpherson & Simon Bousfield

Simon Bousfield & James Macpherson

d l o James Macpherson & Simon Bousfield

Owairaka Valley Rd, Te Awamutu Sold for: $3.5m plus GST if any Area: 118ha Robert Stuart

1526 Ararua Road, Ararua Sold for: $2,450,000 + GST (if any) Area: 306.6564ha Scott Tapp

136 Mount Palm Road, Culverden Area: 125.9920ha Mark Clyne & Dean Pugh

684 Maunga Road, Dannevirke Sold for: $6,200,000 Area: 540ha Tony Rasmussen

1031 Sharlands Road, Dunsandel Area: 242ha Gareth Cox

188 Waihakeke Rd, Carterton Area: 169ha Blair Stevens

2152 Puketitiri Road, Rissington Area: 837ha Duncan McKinnon

100 Oakleys Road, Ashburton Area: 186.5626ha Chris Murdoch

1233 Kereru Road, Maraekakaho, Hastings Area: 848.38ha Doug Smith & Paul Harper

Kawakawa, Northland Sold for: $1,350,000 Area: 240ha Lin Norris & Alex Smits

1078 Tangowahine Valley Rd Sold for: $1,345,000.00 Area: 99ha Catherine Stewart

1/136 Burns Road, Te Awamutu Sold for: $5.985m plus GST if any Area: 96ha Howard Ashmore

1/1052 Maungakawa Road, Cambridge Area: 107ha Alistair Scown

374B Horsham Downs Road, Hamilton Area: 135ha Mike Fraser-Jones

Honikiwi Forest, 1753 Honikiwi Road, Otorohanga Area: 394ha Warwick Searle

Jobson Rd, Manutuke, Gisborne Sold for: $2,200,000 Sold Area: A rea: 294ha

595 Wilden Runs Road, Tapanui Area: 327.8ha Craig Bates & Dave Hardy

204 Paratu Rd West, Matamata Sold for: $3,900,000 + GST (if any) Area: 96ha Neville Jacques

418 Scarborough Rd, Pahiatua Sold for: $3,525,000 Area: 99.76ha Jared Brock & Phil Wilson

2943 Pehiri Rd, Rere, Gisborne Sold for: $6,100,000 Area: 834ha

157 Rotongata Road Sold for: $3,850,000 + GST (if any) Area: 101.934ha more or less Stuart Gudsell & Sharon Evans

512 Nicholls Road, Flemington Area: 283.1087ha Pat Portas & Bevan Pickett

Simon Bousfield & James Bolton-Riley

2398 Puketitiri Rd, Rissington Sold for: $1,380,000 Area: 101ha Duncan McKinnon

684 Lookout Road & Mill Road, Onga Onga Area: 1129ha (more or less) Mike Heard & Hadley Brown

All companies in this composite advertisement are Licensed under the REA Act 2008

Phone Shirley on 0800 85 25 80 for more information

LK0090738Š

Real estate agents are judged on results. We’re happy to be judged on the same basis.

We deliver more buyers, better service, greater support and extra value.

22

farmersweekly.co.nz/realestate 0800 85 25 80

Real Estate

TENDER

1 2

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2 |

IMPRESSIVE WAVERLEY DAIRY FARM

350-368 Lennox Road, Waverley, South Taranaki Tender Closes 4pm, Wednesday 20 December 2017 at McDonald Real Estate, 274 High Street, Hawera (Unless Sold Prior)

Located south of Waverley on the Lennox Road is this impressive, large, well set-up and presented dairy farm.

LK0090830

3 |

|

TENDER CLOSES WEDNESDAY!

6 / 487 Weedons Weedons Road, Rolleston 6/487 Road, Rolleston 4 |

THE NEW ZEALAND FARMERS WEEKLY – December 18, 2017

3

Peaceful picturesque Peaceful Picturesqueprivacy!

Privacy!

Set within 5.5ha of tranquil, expansive lawns and mature easy care grounds, the backdrop is set for the perfect retreat from the bustle of the city or for downsizing from the family farm. At the centre of this offering is the magnificent 4 bedroom, 3 bathroom home – perfect for those seeking a rural lifestyle only 20 minutes drive from city.

Currently milking 650 cows, this farm has previously milked over 800 cows, with production being around 280,000kg milksolids and featuring an excellent 50 bail rotary cowshed with in-shed feed system and Protrac drafting system, 3 good homes, ample farm support buildings and reliable water supply.

Viewing

By Appointment Only

Rarely do farms of this size and quality come onto the market in Waverley and this one will impress! This dairy farm is a credit to the current owners and is extremely well set up with excellent races, well subdivided and fenced.

If you are after size and scale with all the bells and whistles this is the one for you!

This opportunity comprises the architecturally designed home built to exacting standards, quality sheds, fencing, soils and irrigation, water rights to 2035, superb shelter and is divided into 6 paddocks with a good set of stock yards with cattle crush and heavy vehicle access. It is currently fattening 20 beef cattle. ___________________________________ You will be amazed at what has been thoughtfully developed in its current tenure. Viewing is by Internet www.oneagencyres.co.nz private appointment and it is being sold plus GST (if any) on the land. These unique settings are Contact Mike Goatley 0272495561 highly sought after and rarely become available. So do not delay, contact Mike Goatley today to mikegoatley@oneagencyres.co.nz set your time to view.

Rodney Perrett M 027 241 3979

Peter McDonald M 027 443 4506

___________________________________

Price by Negotiation Internet www.oneagencyres.co.nz Contact Mike Goatley 027 249 5561 mikegoatley@oneagencyres.co.nz

TAMAKI FARMS

318HA (785AC)

NEW LISTING

North Otago Duntroon 156.5 Hectares Price By negotiation

Production, Presentation With Reliable Irrigation. Gentle to rolling contour, 150 hectare milking platform (green zone), majority pivot irrigated. 54 bail rotary with DeLaval plant, ACR’s plus grain and molasses feed. Milking 480 cows, producing 220,000kgMS. Four bedroom home and two single bedroom units. 4-bay calf rearing shed, 5-bay implement shed. Situated 40km from Oamaru. | Property ID DU2569

Contact Merv Dalziel 027 439 5823

0800 200 600 | farmlandsrealestate.co.nz

Dannevirke

Triple S Dairy Farm — Scope, soils & self-containment are the key to this 318ha (freehold) 40ha (leasehold) unit.

• 306ha milking platform • 52ha runoff attached • 40 bail rotary cowshed • Host of support buildings • Modern 331m2 homestead • 2x 3 bedroom homes • 2x 1 bedroom employees accommodation • Very strong silt loam fertile soils • Very reliable rainfall

FOR SALE BY TENDER Tender closes 4pm Thursday 25 January 2018 (If not sold prior) For Farms (NZ) Ltd, 138 High Street, Dannevirke

Craig Boyden M: 027 443 2738 O: 06 374 4105 E: craigb@forfarms.co.nz

Jerome Pitt M: 027 242 2199 O: 06 374 4107 E: jeromep@forfarms.co.nz

Land is the biggest asset to any farming business so it pays to stay up to date with the market.

All 10 minutes from Dannevirke.

ID FF2530 Property ID FF1299

LK0068450©

www.forfarms.co.nz

LK0090600©

We welcome your inspection by appointment. www.forfarms.co.nz

THE DESTINATION FOR RURAL REAL ESTATE

Connect with the right audience at

farmersweekly.co.nz/realestate

ljhooker.co.nz

FOR SALE

$14,400,000 475 Ha

240 Muddy Creek Road, Omakau Central Otago

FOR SALE

$9,600,000 278 Ha

Satinburn Dairy Farm includes an irrigated dairy platform plus an area of land available for dairy support. A feature of the property is the future irrigation development potential for platform extension.

Over all Satinburn is an “A Grade” property.

Omakau is a well serviced locality in close proximity to Alexandra.

This location also has the added benefit of easy access to lakes, rivers and mountains for a wide range of recreational pursuits.

• Near new four bedroom homestead plus two new three bedroom brick houses • New 64 bail rotary cowshed • Modern irrigation system with significant on farm irrigation storage • New pastures fully cultivated • New infrastructure • Large calf rearing facilities • Fully enclosed five bay concrete floor workshop/implement shed • Current Fonterra supply zone with significant growth potential Opportunity knocks here ………..

The owners instructions are to sell and will meet the market!

521 Racecourse Road, Omakau Central Otago Wildon Dairy Farm is an exceptional well developed dairy farm.

Improvements include: • Substantial four bedroom homestead, with two additional three bedroom homes • New 54 bail rotary dairy shed • Large calf rearing facilities • Two woolsheds and covered yards • A variety of implement and hay sheds.

• Separate additional 121ha irrigated grazing block available for purchase.

The irrigation system on the milking platform includes four centre pivots, fixed grid sprinklers and k-line enhanced by two on farm irrigation storage dams.

Omakau is located approximately within an hour of Queenstown International airport and Wanaka. Central Otago is an unrivalled adventure playground no matter the Season.

This location has recently experienced considerable development and with that represents fantastic investment possibilities.

Highly motivated vendors who have another opportunity Inspect Now! This is not one to be missed.

Geoff Norris

Geoff Norris

027 380 9965 gnorris.dunedin@ljh.co.nz Dunedin 03 470 1370

027 380 9965 gnorris.dunedin@ljh.co.nz Dunedin 03 470 1370

Licensed Real Estate Agent REAA 2008

FOR SALE

$2,000,000 121 Ha

Licensed Real Estate Agent REAA 2008

Racecourse Road – Grazing Exceptional Growth Potential Racecourse Road comprises of 121.894ha, more or less, and is located approximately 4kms from Omakau. Currently utilised as a grazing dairy/support property, is subdivided into 16 paddocks and has further huge development potential.

Investment in the expansion of irrigation storage and the upgrading of existing irrigation infrastructure will stimulate further intensive land use.

Paddock improvements on the grazing block include an upgraded stock water system along with the addition of new cattle yards to accommodate a more intensive dairy support land use. Commitment from Fonterra to collect from the Omakau area is significant from a future land use perspective.

Omakau is a well serviced locality that also has the added benefit of easy access to lakes, rivers and mountains for a wide range of recreational pursuits.

This property represents an outstanding opportunity to step into farm ownership, or an attractive proposition for someone looking to increase existing land holdings.

Be sure not to miss out on this opportunity.

Geoff Norris 027 380 9965 gnorris.dunedin@ljh.co.nz Dunedin 03 470 1370

Licensed Real Estate Agent REAA 2008

Wayne Graham Realty DN Ltd Licensed under the 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.

RURAL rural@pb.co.nz 0800 FOR LAND

Property Brokers Limited Licensed under the Real Estate Agents Act 2008

Well located dairy

Dairy support/wintering - 169 ha

FINAL NOTICE

WEB ID MOR01751 AUCTION MORRINSVILLE 184C Kuranui Road View By Appointment AUCTION 11.00am, Tue 19th Dec, 2017, (unless sold prior), This property has been faithfully farmed by the same Property Brokers, 78 Studholme Street, Morrinsville family for over 80 years and it comes to the market for the first time in excellent heart. The property has always looked a picture with its long road frontage on prestigious Kuranui Road. Several farm options present themselves for this property. A total of 117 hectares Peter Lissington over two titles, contour being approximately 78 ha flat Mobile 027 430 8770 with balance rolling to medium hill. Milking 340 cows peterl@pb.co.nz through a 30 ASHB shed, producing 107,000 kg/MS average over the last three seasons on a low-cost system, leaves excellent scope for incoming owners.

Aidan Cowley

WEB ID AR59200 TINWALD 221 Boundary Road View By Appointment A rare opportunity to purchase your own 169 hectare run-off with the option to include an adjacent lease of an additional 118 hectares. Currently run as a single unit, the 287 hectares is set up for a simple management system. Reliable ground water and a Paul Cunneen mixture of soils make this operation ideal for dairy Mobile 0274 323 382 support and wintering. Includes a modern four bedroom Office 03 307 9190 home and is only a couple of minutes from Lake Hood.

Chris Murdoch

BY NEGOTIATION

Mobile 0274 342 545 Office 03 307 9191

4

Greg Jopson

Mobile 027 486 2547 aidan@pb.co.nz

Mobile 027 447 4382 Office 03 307 9176

2

168 Range Road Woodville

WEB ID PR59114

WOODVILLE 168 Range Road This 161 ha dairy farm along with a 40 ha support block with renowned superior soils is situated in the heart of Woodville dairy country.

Supplements are harvested within the dairy business with a very limited amount of PKE imported.

• 133 ha dairy platform milking 355 cows • Multiple titles providing options • 36 aside HB shed with auto cup removers • 5 year average production 117,956 kg/MS • 49 paddocks on platform, 20 paddocks on runoff • 9 bay calf rearing and implement shed

• Support sheds and ample water • Consents in place • Large five bedroom character home with a covered swimming pool, spa and entertainment area • Second tidy three bedroom plus office character home on the runoff Options abound for the astute operator to take this well located dairy business to another level.

A 56 ha lease block located nearby may be available to the successful purchaser.

www.propertybrokers.co.nz

BY NEGOTIATION + GST (IF ANY)

VIEW By Appointment Phil Wilson

Mobile 021 518 660 Office 06 376 5478 Home 06 376 7238 philw@pb.co.nz

Jared Brock

Mobile 027 449 5496 Office 06 376 4823 Home 06 376 6341 jared@pb.co.nz

5 1

Classifieds

ANIMAL HANDLING

ANIMAL SUPPLEMENTS

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

APPLE CIDER VINEGAR, GARLIC & HONEY. 200L - $450 or 1000L - $2000 excl. with FREE DELIVERY from Black Type Minerals Ltd www.blacktypeminerals. co.nz

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).

MORE FAMILY TIME With our robots working for you, you’ll have more time to spend with your family.

Put our robots to work for you

Call Grant Vickers on 021 704 691 to find out why!

ATTENTION FARMERS DEMOLITION. Country Villas, houses, buildings, commercial, industrial. Any area. NZ. Please phone 027 405 2391. 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

CONTRACTORS GORSE SPRAYING SCRUB CUTTING. 30 years experience.

Blowers, gun and hose.

No job too big. Camp out teams.

Travel anywhere if job big enough. Phone Dave 06 375 8032.

DOGS FOR SALE

MORE TIME FOR HUNTING With our robots working for you, you’ll have more time for hunting.

Put our robots to work for you

Call Grant Vickers on 021 704 691 to find out why!

DOGS WANTED 12 MONTHS TO 5½-yearold Heading dogs and Huntaways wanted. Phone 022 698 8195.

NEED QUICK CASH during holidays? No one buys or pays more! 07 315 5553.

FERTILISER DOLOMITE, NZ’s finest Magnesium fertiliser.

Bio-Gro certified, bulk or bagged. 0800 436 566.

FOR SALE

SELLING DURING holidays.

Huntaways, Heading, Handys.

Guaranteed. trial. Deliver Northland to Southland. 07 315 5553. Mike Hughes.

WINDMILLS for water pumping. Ferguson Windmills Company. www.windmills.co.nz sales@windmills.co.nz Phone 09 412 8655 or 027 282 7689.

FREIGHT FREE

PUMPS

SAVE ON YOUR INK and TONER print cartridges.

Special pricing for our compatible value packs when you purchase all four cartridges. FREIGHT FREE. Visit us at: www. nzconsumables.co.nz or call us 0800 800 857. NZ based and 100% kiwi owned with 30 years industry experience.

HIGH PRESSURE WATER PUMPS, suitable on high headlifts.

Low energy usage for single/3-phase motors, waterwheel and turbine drives. Low maintenance costs and easy to service. Enquiries phone 04 526 4415, email sales@hydra-cell.co.nz

RAMS FOR SALE

GOATS WANTED 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.

WILD CATTLE and goats wanted. 50/50 mustering.

Portable yards available.

Phone Kerry Coulter 0274 944 194.

LEASE LAND WANTED A MANAWATU AND Rangitikei sheep and beef farmer is looking at leasing land. 027 452 0723.

PROPERTY WANTED HOUSE FOR REMOVAL wanted.

North Island.

Phone 021 0274 5654.

WILTSHIRE & SHIRE® rams and ewes for sale.

Hardy, low input, easy care meat sheep. No dagging. No shearing.

No dip, drench or vaccine since 1989. Deliver all over NZ. www.organicrams.co.nz Email: tim@ organic-rams.co.nz Phone 03 225 5283.

classifieds@nzx.com – 0800 85 25 80

POWER CABLE

NO STAFF WANTED

We could save you hundreds of $$

We need no one to help us milk 600 cows in Southland.

HOMES FARM SHEDS SUBDIVISIONS PUMPS

Put our robots to work for you

Call Grant Vickers on 021 704 691 to find out why!

FOR SALE CLASSIFIEDS ADVERTISING

WANTED TO BUY

Do you have something to sell?

SAWN SHED TIMBER including Black Maire.

Matai, Totara and Rimu etc. Also buying salvaged native logs.

Phone Richard Uren. NZ Native Timber Supplies. Phone 027 688 2954.

classifieds@nzx.com

The first issue of Farmers Weekly for 2018 will be out on the 8th January.

2018 / 2019 Season

Booking deadline is Wednesday 3 January, 12 noon.

Put our robots to work for you

Our office will reopen on Wednesday 3rd January.

Call Grant Vickers on 021 704 691 to find out why!

For advertising enquiries, please contact Debbie on 0800 85 25 80 or email classifieds@nzx.com

1

5 Rust arrival timing good farmersweekly.co.nz

Nigel Stirling

I

nigel.g.stirling@gmail.com

NDUSTRY minnow Taylor Preston has grabbed the chance to be the first New Zealand meat exporter to Iran in nearly 20 years.

The breakthrough shipment followed strenuous efforts over the past couple of years to restore access to a market that in the early 1980s took one in every four sheep processed in NZ. Primary Industries Minister Nathan Guy cleared the way for a resumption of the trade when he concluded a veterinary agreement with his Iranian counterpart in Tehran in February.

However, NZ’s largest exporters remained wary and were yet to dip their toes back in the market.

Taylor Preston chief executive Simon Gatenby admitted there had been hoops to jump through before the export order – initially only 50 tonnes – could get on the water.

They included a requirement for two officials from the Iranian Veterinary Organisation to be present at the company’s Ngauranga plant near Wellington during slaughter and processing.

The government officials would be there to ensure meat bound for Iran was processed according to its veterinary and Halal standards.

The first NZ shipment to Iran since 1998 would comprise frozen carcases separated into six primal cuts.

“We will get to know the customer and he will get to know us and know the rules with a simple and easy specification to

REASON TO SMILE: Simon Gatenby has secured a deal for the first shipment of lamb to Iran in 20 years. Photo: Mark Coote

get into the market.”

However, the customer – an established Iranian importer of NZ primary produce who Gatenby would not name for commercial reasons – had also expressed interest in higher-value lamb cuts and beef.

“We are very keen for that to happen because it represents an increase in value and we think the opportunity is there for both chilled and frozen to a higher level specification.”

Iran emerged as a white knight for the industry in the 1980s as it searched the world for new

markets to deal with a surge in subsidised sheep meat production at the same time as demand from Britain slackened.

Iran imported well over 100,000 tonnes of sheep meat a year from NZ between 1983 and 1986.

Gatenby said the dynamics of the sheep meat industry had changed out of all recognition since that time.

“Back in those days we had 60m sheep. The national kill this year will be a touch under 19m lambs and I am not sure NZ needs a new market that would take tens of thousands of tonnes a year.

They are very keen to do business with NZ. Tim Ritchie Meat Industry Association “We want a steady, high-value market that will absorb some volume without putting pressure on price.”

Meat Industry Association

chief executive Tim Ritchie said Iran tapered off in the early part of the 1990s as oil prices fell and technical barriers emerged and shut off completely by 1999 as result of international sanctions.

But the lifting of sanctions in 2015 following a deal for Iran to rein in its development of nuclear weapons had cleared the way for the Government to reach an agreement on veterinary protocols earlier this year.

About 100,000 tonnes of meat, mainly beef from Brazil, was imported into Iran each year.

Now sanctions were lifted Iran wanted to lift its imports of lamb, Ritchie said.

“Given the previous trading relationship and NZ’s reputation for quality product they are very keen to do business with NZ.” But despite its potential and the removal of obstacles to the trade resuming NZ’s largest sheep meat exporters remained on the sidelines.

Following a trip to Tehran with Trade Minister Todd McClay earlier this year Silver Fern Farms chairman Rob Hewett said he shied away from making an immediate commitment.

It would take time re-establish contacts in the Iranian market and he did not expect any sales this season and could not guarantee a resumption next season either.

Alliance chairman Murray Taggart said his co-operative had its hands full in India and Brazil and was in “no rush” to establish itself in another new market.

“Also, there are challenges in dealing with Iran that there aren’t in some of these other markets.”

Continued page 4

Unique opportunity for Lower Order sharemilker

PRIDE • PEOPLE • PERFORMANCE

Country Manager

If this sounds like you please forward your CV to email debbstaggart@gmail.com for consideration by 21 December 2017.

All applicants will be notified their CV’s have been received and then again with the next stage for the application.

• Lots of spot prizes • Bouncy castle • Go karts • Face painting • Hot and cold food • Plenty of vendors.

BYO (no glass allowed) EVENTS: • Bull riding, calf riding and steer riding • Steer wrestling • Barrel racing • Bronco riding • Bareback riding • Rope and Tie • Team roping

What Grasslands is looking for: • You must have demonstrated excellence in recruiting, developing and leading a large team of people to achieve outstanding results • We are seeking someone that is focused on delivering consistently high standards of execution across a group of farms. Our focus is on excellence in execution, not on changing the system • The successful applicant must have had multiple years of experience in senior management roles, delivering to expectations within the agriculture industry • You will need to have had experience in preparing and presenting formal presentations for a range of stake holders LK0090850©

The business is located 5km from Mayfield on 309ha with a 60 bail rotary and rectangle yard. Our target is 650,000kgms and irrigation is delivered via pivots.

It is important to us that we function as a team and everyone is valued for the skills they contribute.

A great family day providing entertainment to all ages. Come and join us!

Reporting to the CEO, this role will be responsible for leading our farming operations in Canterbury and Southland which today involves 13 farms and 12,000 cows. The Country Manager will also work closely with the CEO in implementing Grasslands growth strategy.

Our business milks 365 days a year with three calvings – autumn, spring, summer. We target to calve 1000 in a 12-month period with peak number of 1150 in November/December.

The person needs to be open minded and willing to work with the current systems and practices. We welcome suggestions and ideas for changes that would improve the system and outcome for all those involved. This person needs to be able to navigate through a 365-day milk operation while managing a skilled team who ensure good dairy and animal health practices are achieved.

When: 29th December – Starts 8am Where: Broadlands Rd opposite Centennial Drd

Canterbury Grasslands is a pioneering business, passionate about sustainable pasture-based dairying and delivering strong financial returns.

With a clear farming and growth strategy already in place, we are now looking to appoint a Country Manager who would be responsible for leading all New Zealand operations.

Our 365-day dairy operation seeks a lower order sharemilker who is exceptional in the following areas: • Feeding cows with a nutritionally balanced diet • Managing a skilled team • Care and attention to stock health and wellbeing • Management of feed allocation and feed contracts • Maximisation of milk production by minimising dried off periods • Clear communication with owners, contractors, your own team members and other professional associated with the business • Kind and respectful to all those involved in the business • Attention to detail with record keeping • Operating within compliance requirements

The girls are of Holstein Friesian descent and accuracy with calving records is paramount. There is five houses which are modern and warm with easy care sections.

TAUPO RODEO

What Grasslands has to offer: • An experienced Board of Directors with a cross section of skills that covers large scale farming, agribusiness, strategic development and financial management • The opportunity to progress your career within the wider Grasslands Group, which also encompasses operations in Missouri, USA • Grasslands is actively growing its New Zealand footprint, and the role will truly be a dynamic one as we add more farms.

• A competitive remuneration package that will ensure you are properly motivated to achieve results for yourself and the business.

To find out more about this position, please contact Zach at 001 417 354 0772.

To apply, please email your CV, covering letter, and referee details to office@grasslandsllc.com by 26th January 2018.

Watch from the large hill alongside the rodeo arena. You won’t miss a thing. The main performance (open events) are after lunch.

GATE PRICES: • Families – $30 • Adults – $15 • Children – $5 • Under 5 free • Eftpos available at event Presale adult tickets at Finn MacCuhals Irish Pub at $10 each LK0091112©

Vol 16 No 19, May 15, 2017

Iran trade resumes

2419FW

I wish all readers of Farmers Weekly a happy Christmas and a relaxed 2018. Thank you all for your advertising support which has made the Employment pages so successful.

LK0091072©

Mamaku (flat, summer safe), approximately 12 minutes from Rotorua.

3-year average milk solids 153,000kgs. Winter approx for 480 cows. Low input grass based system.

Good house is provided.

Federated farmers contract. Attractive $$$ kilograms of milk solids.

Contract for right applicant.

Email: headwaterfarms@hotmail.com

For friendly & professional advice CALL 0800 843 0987 Fax: 07 843 0992 Email: power@thecableshop.co.nz THE CABLE SHOP WAIKATO www.thecableshop.co.nz

With our robots working for you, you’ll have more time for romance.

Call Debbie

0800 85 25 80

Employment EXPERIENCED CONTRACT MILKER

Prices include delivery to your door!

MORE TIME FOR ROMANCE

STOCK FEED MOISTURE METERS Hay, Silage dry matter, grain. www.moisturemeters.co.nz 0800 213 343.

25

LK0088147©

THE NEW ZEALAND FARMERS WEEKLY – December 18, 2017

CHECK OUT our Facebook for more details – Taupo Rodeo Club

26

livestock@nzx.com – 0800 85 25 80

Livestock

TE KUITI LIVESTOCK CENTRE

TE KUITI LIVESTOCK CENTRE JANUARY 2018 LIVESTOCK SALES (please note change of date for some sales)

Te Kuiti Bullock Fair – Wed 3rd Jan 12 Noon start 600 2½ year Steers

SALE TALK

Tuakau Heifer Sale

A jockey is riding the favourite in a big horse race one day and is well ahead of the field.

Thursday 4th Jan 2018 at 12 noon A/c OJ & M Cathcart 15th Annual Heifer Sale

Suddenly he’s hit on the head by a turkey and a string of sausages.

www.carrfieldslivestock.co.nz

• 820 x 15-month heifers Comprising of approximately: 330 x Angus, 260 x BWF, 230 x Exotic Lines of heifers suitable for breeding and/or fattening.

Te Kuiti 15mth Exotic Steer Fair Thurs 4th Jan – 12 Noon start 800 15mth Sim, Char, Sth DevX Steers Te Kuiti 15mth Traditional Steer Fair Fri 5th Jan – 12 Noon start 700 15mth Ang, Ang/HfdX Steers

Tuesday 9th Jan 2018 at 12 noon

Te Kuiti 15mth Hfd/Frs, Ang/FrsX & Bull Fair – Mon 8th Jan 12 Noon start 1100 15mth Hfd/Frs, Ang/FrsX Steers 150 15mth Frs & Beef Bulls

Comprising of: • 200 x 2-year steers • 1250 x 15-month Angus, Angus Hereford & Exotic steers Straight beef steers sourced from all over the North Island.

But then he’s struck on the head by a bottle of sherry and a Christmas pudding.

Thursday 11th January 2018

This time, despite all his best efforts, he can’t regain the lead and only manages to finish second.

LK0091070©

All enquiries to Craig Chamberlain 0275 320 253 Dave Anderson 0274 981 201

Your source for PGG Wrightson livestock and farming listings

A/C H A Tucker Ltd 30 Ang & Sth Devon x steers A/C Client 50 Hfd/Frsn x steers A/C AC Masters & Son 30 Char & Hfd/Frsn x steers A/C Tanum Farms 39 Hfd/frsn x steers Te Kuiti 15mth Exotic Steers Calendar change Thurs 4 Jan 2018 12pm start A/C Belvedere P/S 23 Char x steers A/C Stephen Scott Trust 20 Char x steers A/C Marokopa Stn 100 Sim & Sim x steer Station lines of hill country steers Oct /Nov born Te Kuiti 15mth Exotic Steers Calendar change Thurs 4 Jan 2018 12pm start A/C Larry Summer Trust 80 Ang steers A/C Maniapoto Training Agency 45 Ang/Limo x steers Te Kuiti 15mth Hfd/Frsn Steer & Bull Calendar change Monday 8 Jan 2018 12pm start A/C BJ & MJ Needham Family trust 50 Hfd/Frsn x steers A/C WC Holmes 240 Hfd/Frsn x steers A/C ST & BV Meads 26 Hfd/Frsn x steers A/C Mangaokewa Farms 12 Hfd/Frsn x steers A/C Stephen Scott Trust 20 Hfd/Frsn x steers A/C Angela Reed Family Trust 34 Hfd/frsn x steers

He immediately goes to the stewards and complains that he has been seriously hampered.

Key: Dairy

Beef

LIVESTOCK ADVERTISING NIGEL RAMSDEN 0800 85 25 80

Sheep

Other

STORTFORD LODGE MA EWE FAIR – HASTINGS

PGG WRIGHTSON LTD Te Kuiti Bullock Wednesday 3 Jan 2018 12pm start A/C B A Murphy 100 Sth Devon x steers

w e h av e t h e s h eep fo r yo u

Using all his ability, he manages to steer his horse back into the lead as he goes over the last fence and into the run-in.

Tuakau 15-month Dairy Beef Steer Fair Comprising of approximately: • 600 x Hereford/Friesian • 100 x Angus/Friesian

LK0091071©

Te Kuiti 2th Ewe Fair Fri 12th Jan – 12 Noon start 7400 2th Ewes comprising: • 3250 2th Romney Ewes • 750 2th Perendale Ewes • 1700 2th Romdale Ewes • 1700 2th Coopworth Ewes

He somehow manages to keep control of his horse and pulls back into the lead once more, only to then be hit by a box of Christmas crackers and a dozen mince pies.

Tuakau Steer Fair

Te Kuiti 15mth Heifer Fair Wed 10th Jan – 12 Noon start 450 15mth Ang. Exotic, Hfd/Frs, Ang/Frs X heifers

THE NEW ZEALAND FARMERS WEEKLY – December 18, 2017

Te Kuiti 15mth Heifer Calendar change Wednesday 10 Jan 2018 12pm start A/C Maniapoto Training Agency 20 Ang/Limo x heifers A/C Belverdere P/S 23 Char x heifers A/C Stephen Scott Trust 20 Char x heifers Te Kuiti 2th Ewe Fair Friday 12 Jan start 12pm start A/C Maikaikatea Stn Ltd Capital Stock - (Farm Sold) 350 2th Romney ewes, Waimai bred for 20years High eczema tolerant flock been running on the hills at Mokauiti Valley Flock scanned last 3year avg =175% A/C D Ralph - (Capital Stock) 125 2th Coopworth ewes Flock scanning avg last 3years = 195% These sheep are only being sold due to change in farming policy A/C Ardrossan Farm Capital Stock - ( Farm Sold) 500 2th Highlander ewes Last 3years avg 185% scanning Flock been running on the hills in the Mahoenui basin A/C H A Tucker Ltd 400 2th Romney ewes A/C F J Barclay Ltd 300 2th Romney ewes A/C LP & A MacLachlan 220 2th Romney ewes Eczema tolerate A/C Rivendell 100 2th Romney ewes A/C Client 200 Coopworth ewes Eczema tolerant A/C C R & A Hooper 80 Coopworth ewes Eczema tolerant A/C DM Cooper 80 2th Romney ewes A/C Nikau Trust 120 2th ewes

Freephone 0800 10 22 76 | www.pggwrightson.co.nz

Friday 12th January 2018 - 10.30am PGG Wrightson will offer the following outstanding 2th and mixed Aged Ewes on behalf of the following Clients A/c Pareroa Partnership (GR Smith) Omakere 275 Romney 2th Ewes Annual line Roundaway bred.

Top pick sires A/c PW & SM Allport Waipukurau 200 Romney 2th Ewes Pure Bred Hollycombe sheep Top pick for over 50 years A/c Kiwikawa Farm Ltd Taihape Road 600 Romney 2th Ewes Annual line by top pick Kiwitahi sires A/c Otaka Farm Partnership (P Matthews) Waipukurau 1000 4th 5yr Romney Ewes (Capital Stock) Roundaway and Wairere bred Ewes To be sold in age groups

Further enquiries Don McGregor – 027 445 7629

KAUROA (RAGLAN) & WEST COAST JANUARY LAMB & EWE FAIR Thursday 11th January 2018 12 Noon Start 5000 Sheep Comprising 3000 Lambs 1000 Top Romney Wether Lambs 1000 Good Romney x Wether & Ram Lambs 500 Med Romney Wether Lambs 500 Suffolk x & S Dorset x Male & Ewe Lambs 500 Romney & Coopworth Ewe & Wether Lambs 2000 Ewes 1000 Top 2th Romney Ewes 200 Top AM 5yr Romney Ewes 400 Top AM Romney 6yr Ewes 300 Top MA Coopworth Ewes

Special Entries Include A/C Everest Ventures Ltd (Raglan) 450 Top 2th Romney Ewes (Romney Development Group Bred- F.E.Gold Rating)

A/C Raglan Golf Club (1 Earmark) 200 Top 2th Romney Ewes (Bred By K. Abbott-Supreme Romneys)

A/C BL Millward 150 Top 2th Romney Ewes (K.Abbott Rams) (All of the Above 2th Ewes are Bred By Very High Eczema Tolerant Rams)

A/C Mrs ME Hayes 200 A.M. 5yr Romney Ewes

A/C Aramiro Station 300 Romney & Suffolk X Lambs

ANNUAL ON FARM LAMB SALE

A/C Waiteika Station 400 Romney Wether Lambs

Drysdale & Ferndale Station Lilburn Family Turakina Valley, Hunterville Tuesday 9th January 1pm start at Drysdale Offering 6000 Shorn W/F C/O Lambs 700 Black Face Lambs Genuine hill country station lambs, renown for their shifting ability Rebate commission payable to outside agents by prior arrangement with Auctioneers

Contact Paul Peterson PGG Wrightson Hunterville 027 444 9176 or 06 322 8332

Helping grow the country

A/C Percy & Mahood 500 Romney Wether Lambs The Above Entries are Annual Drafts from the Raglan, Waingaro & Te Akau Coastal Hill Country & Highly Recommended for Their Shifting Ability & Facial Eczema Tolerance.

Enquiries to: PGG Wrightson

Chris Leuthart 07 825 8410 or 0274 936 594

NZ Farmers Brent Bougen 07 848 2544 or 0272 104 698

Livestock

THE NEW ZEALAND FARMERS WEEKLY – December 18, 2017

Fairlea Texels

STOCK FOR SALE 1 YR ANG BULLS X 90 430avg/kgs 50 x STATION BRED 1YR ANG HEIFERS 360kgs Ideal for Breeding, Draft Numbers Suitable 1YR FRSN BULLS 350-450kgs

Meaty Muscle Makes Money

Our office will reopen on Wednesday 3rd January.

STOCK REQUIRED

I wish all readers of Farmers Weekly a happy Christmas and a relaxed 2018. Thank you all for your advertising support which has made the Livestock pages so successful.

PUKETORO STATION

Call Hugh & Helen Winder on 0800 328 877

1808 Makino Road, RD 9, Feilding 4779 Ph: 06 328 8710 Fax: 06 328 8712 Mob: 027 226 5784 Email: fairleatexels@xtra.co.nz

*Suftex first-cross rams also available

Open Day and Sale – 20 January 2018

2754 Ihungia Road, Tokomaru Bay at 12 Noon

6200 Sheep / 750 Steers

Full Details on our Website or Facebook Central Livestock Limited

Puriri Heights Wiltshire

Learn more about the breed Meet breeders and share their knowledge View quality Dorper sheep Ewes and rams will be available for purchase via a Helmsman auction (held between 2 and 3pm)

Easy care self-shedding sheep Run on extensive, hard, coastal hill country.

• Low input • No pampering • Fertile • Free moving Available from late December Ewe lambs – approx. 400 Ram lambs – well grown 2th Rams Cull ewes Rams tested for brucellosis

1pm at Edendale Café 88 Sandy Knolls Road, West Melton, Christchurch

Rachel and Brook Johnstone 764 Port Waikato-Waikaretu Road RD5, Tuakau • Ph: 09 2329875 puririheights@gmail.com Website: www.puririwiltshire.com

w w w. c e n t r a l l i v e s t o c k . c o . n z

BUYING OR SELLING A DAIRY HERD? Contact Farm Source Livestock for specialist advice and expertise that will help you achieve optimal results, including: • • •

• • • •

Tailored marketing program Access to Fonterra’s extensive farmer network Fonterra farmer exclusive: Earn valuable Farm Source Reward Dollars on all sales and purchases

THIS WEEKS FEATURE: Q 889 – 47 Fsn/FsnX Aut calv cows, BW 74, PW 105, 12/4 calv, very good. $1750 Call Brian 027 244 0845 Q 897 – 66 Fsn Aut calv cows, BW 68, PW 78, 10/3 calv, G3 profiled. $1800 Call Brian 027 244 0845 Q 870 – 110 CRL FsnX wnr hfrs, BW 128, PW 139, top class. $1000 Call Hamish 027 432 0298

Check out NZDorperbreeders LK0091107©

The Ewes docked 150% to the Ram and will be presented in very good condition - July Shorn The Cattle will be sold at the conclusion of the Sheep 1.5% Rebate by arrangement. (Sign Posted) from Tokomaru Bay Lunch & Light refreshments provided Contact: Shane Scott 0274 956031 for further enquiries

A Financing Solution For Your Farm E info@rdlfinance.co.nz

Dorper Sheep

2nd Annual On Farm Sale Tuesday 9th Jan 2018

750 Perendale 2th Ewes, 500 Coopdale 2th Ewes 200 Romney 2th Ewes, 250 Romdale 2th Ewes 1200 Pere 5yr Ewes, 600 M/a Pere Ewes 200 4th Pere Ewes, 200 Coopdale 4th Ewes 2500 Terminal Bred M/S Lambs (30kg) 200 2 Year Angus Steers (500 to 520kg) 550 1 Year Angus Steers

www.dyerlivestock.co.nz

Ross Dyer 0274 333 381

For more information contact: Jim McPhee 021 453 406

2018 Autumn calvers

Herds 1st June 2018 delivery

Central & Southern NI 260 FrFrx C/O Cows BW100 PW139 RA96% Young well-bred cows DTC 3/3 $1900 200 Jrsy C/O Cows BW75 PW58 DTC 20/3 Even Line from 800 winter milk herd $1850 58 FrFrx C/O Cows BW78 PW100 DTC 5/3 $1800 43 Fr 3-5yr old C/O Cows DTC 1/3 $1800

Central & Southern NI

Northland 68 FrFrx C/O Cows BW90 PW105 VIC to Sim DTC 20/3 (42 days) $1950

Very good Sharemilker’s herd on hard farm $1875 190 Fr cows 1st Feb delivery BW50 PW 76 DTC 28/7 Will be sold VIC $1800 R2yrs 180 Fr hfrs BW92 PW85 RA100% DTC 24/7 $1650 250 FrFrx A2-A2 heifers also available Canterbury

Lines to suit (breed, Due date, BW/PW) $1800

500 FrFx BW68 PW71 RA96% DTC 1/8

Herds 1st June 2018 delivery

420 FrFrx BW74 PW81 RA89% DTC 26/7

North Waikato 430 Friesians BW64 PW62 RA91% DTC 10/7 41 years of breeding. Over 200 x 2 & 3yr olds Low SCC $2000

0800 548 339 NZFARMSOURCE.CO.NZ/LIVESTOCK

424 Friesians BW 68 PW87 RA100% DTC 19/7

Assorted lines available of C/O mixed breeds

Northland 260 Frsn/FrsnX BW61 PW69 RA90% DTC 20/7 OAD herd long steep walks, will shift well $1750 200 XBred BW71 PW84 RA88% DTC 20/7 Pick 200 from 270 2-4yrs 400ms $2200 152 BW115 PW138 RA100% DTC 20/7 OAD herd, years of breeding $1750

LK0091013©

McNeil Farming Limited

1YR ANG & EXOTIC X HEIFERS COWS WITH CALVES AT FOOT BREEDING EWES

LK0091016©

For advertising enquiries, please contact Nigel on 0800 85 25 80 or email livestock@nzx.com

27

Very low SCC 200 x A2-A2 $2250 Good even line $2100 280 XBred BW59 PW65 RA82% DTC 25/8 150 x 2 & 3yr cows, comp split from 610 $1900 110 FrFrx BW88 PW114 RA71% DTC 1/8 Managers own cows good for top up $2100 190 XBred BW42 PW64 RA65% DTC 5/8 Tidy Herd $1850 Otago Southland 500 Jersey Herd BW49 PW50 RA84% DTC 5/8 A2 70-80%, DNA tested, CRV history $1900 Philip Webb: 027 801 8057

Paul Kane 027 286 9279

Central & Southern NI Dairy Coordinator

(North Waikato/ Northland)

Richard Van Wynbergen 027 4456056

National Dairy & Live Export Coordinator

South Island Dairy Coordinator

www.carrfieldslivestock.co.nz

LK0090070©

The first issue of Farmers Weekly for 2018 will be out on the 8th January.

livestock@nzx.com – 0800 85 25 80

MARKET SNAPSHOT

28

IN PARTNERSHIP WITH

Grain & Feed Last week

AGRIHQ 2017-18

Prior week

Last year

Canterbury (NZ$/t)

6.40

6.19

AS OF 07/12/2017

AS OF 07/12/2017

MILK PRICE COMPARISON

353

327

NI mutton (20kg)

4.50

4.75

2.90

378

283

SI lamb (17kg)

7.00

7.10

5.30

Feed Barley

388

383

271

SI mutton (20kg)

4.70

4.80

2.85

232

Export markets (NZ$/kg) 9.46

9.50

7.74

6.5

Maize Grain

443

443

367

6.0

PKE

267

265

231

US$/t

WMP GDT PRICES AND NZX FUTURES

272

* 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.

Prior week

Last year

6.0

4.5

Wheat - Nearest

208

212

214

Corn - Nearest

189

195

199

South Island 1 7kg lamb

7.5 7.0

395

399

ASW Wheat

382

398

277

Feed Wheat

327

321

263

Feed Barley

359

359

239

Ex-Malaysia

110

117

NZ venison 60kg stag

6.5

294

PKE (US$/t)

Nov 17 Feb 18 NZX WMP Futures

6.5

5.0

CBOT futures (NZ$/t)

APW Wheat

2000 Feb 17 May 17 Aug 17 C2 Fonterra WMP

7.0

5.5 Last week

3500

North Island 17kg lamb

7.5

INTERNATIONAL

Australia (NZ$/t)

2500

271

UK CKT lamb leg

4000

3000

5.30

382

Waikato (NZ$/t)

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

7.10

353

PKE

Oct 17 Dec 17 AgriHQ Seasonal

6006.0 500

5.5

400

5.0

300

4.5

OctOct

110

DecDec

FebFeb

5‐yr ave NZX DAIRY FUTURES (US$/T) Nearby contract

Prior week

vs 4 weeks ago

WMP

3000

2935

2900

SMP

1720

1730

AMF

6370

Butter

4800

Last week

Prior week

Last year

Last week

Prior week

Last year

1730

Urea

520

520

460

Coarse xbred ind.

2.97

3.14

4.09

6350

6450

Super

297

297

310

Nth Isl 37m

2.95

3.15

4.00

4800

5240

DAP

783

Sth Isl 35m

3.25

3.30

4.50

704

704

$/kg

350

2900

c/k kg (net)

3000

250

2800 Mar

Apr

May

Jun

THE Santa Rally appears to have arrived with most markets rising. December is traditionally the best month of the year for markets with the S&P500 averaging a gain of 1.62% in December and showing a positive result 75% of the time. However, 2017 has already been exceptional for markets. The NZX50 has had 11 consecutive months of gains and for the year to date has climbed more than 20%. Could this December buck the trend and see a negative result or will the NZX50 continue to climb higher?

EBOS Group announced long-time chief executive Patrick Davis would step down from the position in March next year, surprising the market. However, chairman Mark Waller said the company had been working on a succession plan and chief financial officer John Cullity will take over.

This seemed to start a trend with fellow NZX50 components, Metro Performance Glass and a2 Milk both announcing that their respective chief executives were stepping down. Metro Performance Glass’ chief executive and executive director Nigel Rigby will step down on March 31. The board has not named a successor. Jetstar boss Jayne Hrdlicka replaces Geoff Babidge at a2.

Market commentary provided by Craigs Investment Partners

14464

18504

S&P/NZX 50 INDEX

8324

S&P/NZX 10 INDEX

7864

Dec 14

Dec 15

Dec 16

Feed barley

4 weeks ago

Sharemarket Briefing

S&P/FW AG EQUITY

150 Dec 13

NZ venison 60kg stag

4.5

600

NZ$/t

US$/t

3100

Coarse xbred wool indicator

5.5

CANTERBURY FEED PRICES 450

S&P/FW PRIMARY SECTOR

This yr

(NZ$/kg)

3200

Latest price

Last yr

AugAug

NZ average (NZ$/t)

WMP FUTURES - VS FOUR WEEKS AGO

Feb

JunJun

WOOL

* price as at close of business on Thursday

Jan

AprApr

FERTILISER

Last price*

2700

Last year

7.00

Feed Wheat

7.0

Aug 17 AgriHQ Spot Fonterra forecast

Last week Prior week

NI lamb (17kg)

Milling Wheat

7.5

5.5 Jun 17

Slaughter price (NZ$/kg)

$/kg

FONTERRA 2017-18

$/kgMS

SHEEP MEAT

DOMESTIC

$/kg

MILK PRICE FORECAST ($/KGMS) 2017-18

Sheep

c/kkg (net)

Dairy

PKE spot

300

2.5 Oct Oct

Dec

Dec

Feb

Feb

Apr

Apr

Last yr

Jun

Jun

Aug

Aug

This yr

Dollar Watch

Close

YTD High

YTD Low

Auckland International Airport Limited

6.74

7.43

6.02

Fisher & Paykel Healthcare Corporation Ltd

13.59

13.88

8.50

Meridian Energy Limited Spark New Zealand Limited The a2 Milk Company Limited Fletcher Building Limited Ryman Healthcare Limited Mercury NZ Limited (NS) Xero Limited Contact Energy Limited

2.94 3.69 7.94 7.67 10.20 3.39 29.50 5.53

3.02 3.97 9.00 10.86 10.69 3.60 35.50 5.85

2.57 3.32 2.06 6.73 8.12 2.94 17.47 4.65

Listed Agri Shares

3.5

400

5‐yr ave

Top 10 by Market Cap Company

500

5pm, close of market, Thursday

Company

Close

YTD High

YTD Low

The a2 Milk Company Limited

7.940

9.000

2.060

Cavalier Corporation Limited

0.390

0.810

0.270

Comvita Limited

7.450

8.850

5.150

Delegat Group Limited

7.800

7.860

5.650

Foley Family Wines Limited

1.490

1.560

1.200

Fonterra Shareholders' Fund (NS)

6.390

6.430

5.880

Livestock Improvement Corporation Ltd (NS)

2.300

2.610

2.100

New Zealand King Salmon Investments Ltd

2.220

2.450

1.220

PGG Wrightson Limited

0.590

0.620

0.490

Sanford Limited (NS)

8.270

8.350

6.700

Scales Corporation Limited

4.530

4.550

3.210

Seeka Limited

5.750

5.930

4.300

Tegel Group Holdings Limited

1.170

1.460

1.050

S&P/FW Primary Sector

14464

15031

9307

S&P/FW Agriculture Equity

18504

19583

10899

S&P/NZX 50 Index

8324

8324

6971

S&P/NZX 10 Index

7864

7864

6927

THE kiwi recovered This Prior Last NZD vs strongly but greater week week year United States currency USD 0.6992 0.6841 0.7040 strength is just a matter of EUR 0.5929 0.5799 0.6754 time, Westpac strategist AUD 0.9108 0.9095 0.9560 Imre Speizer says.

By the end of next year GBP 0.5202 0.5076 0.5656 New Zealand’s official Correct as of 9am last Friday interest rates will have lost their advantage over US rates, given expected central bank moves.

“The differential will be at zero by then and it hasn’t been at zero since 1999.’’

This will show up in foreign exchange rates with Westpac expecting a US$0.63 rate for the kiwi at year-end.

Inflation isn’t evident in the US but is expected to emerge in the early months of next year. This is expected to bring market pricing on interest rate moves more in line with Federal Reserve indications of three rises, plus another two in 2019, following the hike last week.

Speizer expects a US$0.67 rate going into the second quarter next year, from Friday’s level of nearly 0.70.

The kiwi picked up 2.4% against the US$ last week, recovering from what he said was an oversold position through the election period and formation of the new Government. The appointment of Adrian Orr as RBNZ governor helped, adding about US0.5c to the kiwi.

Echoing the lift against the big dollar the kiwi also picked up against sterling and the euro by more than 2% during the week.

It should fall against them next year as it falls against the US$.

Alan Williams

Markets

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

CANTERBURY FEED WHEAT

NI SLAUGHTER STEER

SI SLAUGHTER STAG

($/KG)

($/KG)

2-YEAR HEREFORD-FRIESIAN STEERS, 470-555KG, AT TARANAKI

($/KG)

($/KG LW)

5.50

382

10.60

Cattle & Deer BEEF Slaughter price (NZ$/kg)

Last week

Prior week

Last year

NI Steer (300kg)

5.50

5.65

5.40

NI Bull (300kg)

5.40

5.55

5.15

NI Cow (200kg)

4.10

4.35

4.00

SI Steer (300kg)

5.50

5.55

5.20

SI Bull (300kg)

5.25

5.30

4.70

SI Cow (200kg)

4.20

4.30

3.80

US imported 95CL bull

6.82

7.08

6.16

US domestic 90CL cow

6.75

6.75

5.92

Export markets (NZ$/kg)

North Island steer (300kg)

6.5

$/kg

6.0 5.5 5.0 4.5 4.0 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)

10.15

10.15

8.10

NI Hind (50kg)

10.05

10.05

8.00

SI Stag (60kg)

10.60

10.60

8.10

SI Hind (50kg)

10.50

10.50

8.00

New Zealand venison (60kg Stag)

11

$/kg

10

NZ venison 60kg stag

9

8 500

400 7 300

6 Oct

Oct

Dec Dec 5‐yr ave

Feb Feb

Apr Apr Last yr

Jun Jun

Aug Aug This yr

$59-$70

$130-$148

Medium blackface mixed sex lambs at Stortford Lodge

Heavy mixed age ewes at Stortford Lodge

Continuing dry is hurting markets

S

ALES are winding up to Christmas as vendors look to offload as much as they can before the two week break between sales. Very dry conditions are pushing more to sale and coupled with no processor space, markets have shown significant decline this week. A splash of rain in some areas brought light relief but plenty more is needed to change the state of play.

NORTHLAND NORTHLAND Another week of hot, dry conditions in Northland resulted in a big drop off in demand for store cattle, which was notable at WELLSFORD last Monday.

The yarding was mainly 2-year, 18-month and 15-month cattle, followed up by a decent number of weaner’s. There was no differentiation between prices for 2-year beef and beef-Friesian, and one line of top quality Hereford-Friesian, 509kg, managed $2.96/kg, though $2.76$2.84/kg was more common for the best cattle. Lesser sorts traded at $2.65-$2.70/kg, while Friesian, 408-410kg, returned $2.44-$2.49/ kg. Heifers generally traded at $2.54$2.63/kg.

A glimmer of strength shone through in the 1-year steer pens as Hereford-Friesian, 293-347kg, traded at $3.05-$3.13/kg. Heifer quality was more mixed and again HerefordFriesian dominated, with 318-348kg making $2.60-$2.68/kg, though a couple of smaller lines managed to crack $3.00/kg.

Northland is one of the few areas that still have good grass covers and the KAIKOHE sale last Wednesday still had a grass market feel to it, PGG Wrightson agent Vaughan Vujcich reported.

Around 600 head were presented and the market mostly held the

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START ‘EM YOUNG: Celia Davis with pet sheep Socks and Todd Haakma with pet Newbee at the recent Tapawera Boys’ and Girls’ Agricultural Club show.

Photo: Susan Fenemor More photos: farmersweekly.co.nz

previous week’s levels, though 2-year heifers were slightly harder work.

Beef and beef-cross 2-year steers traded at $2.80-$2.88/kg, while the heifers mainly fetched $2.60-$2.70/kg.

Most of the action was in the 1-year pens, and good beef and exotic steers sold to $3.00-$3.40/kg, with lighter, quality lines reaching $3.70-$3.80/kg.

Heifers ranged from $2.70-$3.00/kg for similar breeding, while beef bulls traded at $2.80-$3.00/kg and Friesian, $2.70-$2.80/kg. A line of Angus sold as service bulls for $3.10/kg.

Weaner prices reflected solid demand and early born Friesian bulls made $610, and the remainder $450$550. Hereford-Friesian sold for $500$560, with the heifers trading at $525.

Angus-Friesian sold for $480-$490.

Cow prices were similar to the previous week as heavy lines earned

$1.80/kg and lesser Dairy-cross, $1.55$1.65/kg.

COUNTIES COUNTIES Store cattle numbers were back at TUAKAU last Thursday, with a yarding of around 500-head presented to a small bench of buyers, Kane Needham of PGG Wrightson reported.

The yarding included a pen of 543kg Hereford-Friesians, which sold at $2.76/kg. Bidding was cautious in the 15 to 18-month steer section.

Hereford-Friesians, 366kg, earned $2.89/kg, and 320kg Angus, $2.95/ kg. Hereford-Friesian weaner steers, 115kg, fetched $620 and Friesian weaner bulls, 124kg, $530.

In the heifer section, a pen of Hereford-Friesians, 347kg, traded at

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Markets

30 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 18, 2017 $2.67/kg, with Hereford-Friesian 1-year heifers at 315kg making $2.98/kg, and 275kg Angus $2.95/ kg. A pen of Hereford-Friesian weaner heifers, 115kg, earned $550.

Dry conditions and a shortage of killing space also affected last Wednesday’s prime sale, where the market for steers, heifers and cows eased by at least 10c/kg, but most bulls sold up to recent rates.

Heavy steers in the yarding of 600-head traded at $2.80-$2.83/ kg, good- medium $2.77-$2.79/ kg, and lighter types $2.72-$2.75/ kg. The best of the heavy prime heifers earned $2.73-$2.77/kg, and medium $2.70-$2.73/kg. Lighter beef heifers returned $2.67-$2.70/ kg and dairy-types $2.10-$2.40/ kg. Beef cows sold at $1.90-$2.15/ kg, and heavy Friesians $1.75$1.93/kg. Medium cows returned $1.60-$1.70/kg and lighter boners $1.40-$1.55/kg. Heavy beef bulls made $2.90-$3.05/kg, and medium types $2.70-$2.85/kg. Lighter beef and dairy-type bulls fetched $2.40$2.50/kg.

About 2500 ewes and lambs were presented at last Monday’s sheep sale. Prime lambs sold reasonably well, with the heavier primes $135-$158 and medium $115-$130. Lighter prime lambs earned $105-$115. Store lamb numbers were light. The best stores made $75-$90, mediums $60-$70, and lighter lambs $30$35. The ewe market softened, with heavier ewes trading at $90$105, medium $65-$80, and lighter ewes $50-$60.

WAIKATO Results of the current dry weather pattern were felt at FRANKTON last week, with an easing for most in both sales.

With the continuing dry season and buyers cautious the market eased for most weaners last Tuesday. Hereford-Friesian bulls did buck the trend with the majority steady, and a few good types lifted.

Heifers continue to be sold in the outside pens, where Angus made $370-$440, and HerefordFriesian eased to $365-$510.

A highlight in the bulls was a line of Angus, 92kg, which were well sought after making $505. Anguscross, 98kg, eased to $440-$450, while Murray Grey, 108kg, were steady at $428.

Hereford-Friesian were steady, with 118-119kg returning $615$660, and 100kg, $570-$610. Some 105-107kg lines lifted to $600-$615.

Friesian bulls eased, with 155kg earning $470, and 127kg managed $445-$450, which was repeated for 101-103kg lines.

Two-year steers eased at Wednesday’s sale with AngusFriesian, 436-441kg, making $2.53-$2.54/kg, and HerefordFriesian, 430-443kg, $2.64/kg.

Heifers continued this trend with Hereford-cross, 423-456kg, softening to $2.41-$2.53/kg, and Hereford-Friesian, 446-467kg, eased 20c/kg to $2.51-$2.58/kg.

Two-year Hereford bulls, 453kg, were also back albeit still with reasonable returns at $3.27/kg, while Jersey bulls, purchased for future servicing, were steady at $2.17/kg for 451kg, and 346-386kg, $2.37-$2.40/kg.

One-year cattle were consistent on recent results, with AngusFriesian steers, 275-323kg, earning $2.62-$2.89/kg, while HerefordFriesian 226kg, had the highest $/ kg return making $3.45/kg. DairyBeef heifers, 357-423kg, were steady at $955-$1060.

In the autumn-born 1-year steers beef-cross, 401-427kg, managed $2.54-$2.57/kg, though beef-Friesian, 416-427kg, went one better at $2.53-$2.70/kg.

Prime cattle were something of a game of two halves, with steers steady as Hereford-cross, 601-603kg, earned $2.75-$2.78/ kg. Heifers eased, with HerefordFriesian, 497-531kg, softening to $2.47-$2.69/kg. Bulls also came back as Hereford, 566-643kg, traded at $2.74-$2.86/kg.

After weeks of high temperatures an extra layer was needed at the TAUPO sale last Thursday, where 470 cattle were penned. Of that total a number of off-bred weaner heifers made the journey back home as they did not meet expectations, leaving 409 sold.

Quality cattle sold well at current market levels, and included 2-year Angus-Friesian steers, 392-426kg, $2.93/kg, and 1-year heifers of same breeding and 289-312kg at $2.88-$2.94/ kg. The Angus-Friesian heifers bettered the usually dominant Hereford-Friesian, which sold to $2.81-$2.87/kg for 266-335kg.

Two-year Hereford-cross heifers, 438-448kg, sold more in line with results from other yards at $2.57$2.65/kg, while Hereford-Friesian weaner heifers, 104-113kg fetched $420-$490. Bulls of same breeding made a big premium over other breeds as 108-111kg traded hands at $620-$645, while Hereford-

cross, 104-105kg, returned $480$495.

Friesian and at 220-350kg sold for $2.45-$2.75/kg.

BAY OF PLENTY BAY OF PLENTY The hot dry weather continues over much of the country and RANGIURU volume lifted to 840 as sellers use the last two sales of the year to take pressure off at home.

The best steers could achieve was $2.85/kg, though most traded at $2.52-$2.70/kg for mainly beef-Friesian. Values were similar for heifers as Hereford-Friesian, 456-588kg, sold for $2.59/kg, and one small line of higher yielding Devon, 570kg, $2.75/kg. A good yarding of Hereford bulls sparked some interest and sold better than the steers at $2.72-$2.85/kg for 540-607kg, while the better Jersey lines, 473-476kg, returned $2.54$2.58/kg. Boner prices eased and Friesian, 455-518kg, earned $1.56$1.64/kg.

The news didn’t improve in the store pens as sellers had to meet the depleted market. Quality was very mixed and while a few lines of 1-year steers cracked $3.00/ kg, $2.70-$2.80/kg was more common. A stand-out line of Galloway heifers, 226kg sold to $3.12/kg, and Angus, 255kg, $2.94/ kg, though most other lines trailed well behind those levels.

A big offering of weaners had pockets of strength and the better Friesian bulls traded at $445-$540, and Hereford-Friesian, $540-$580.

Heifers were buy able at $385$450.

The weather also brought in a big yarding of lambs with nearly 1200 on the books. Prime lambs sold freely enough, though more work was needed to coax out bids for the longer term stores. All ranged from $65-$146.

POVERTY BAY POVERTY BAY MATAWHERO offered up over 4000 lambs for their last sale of 2017. Most were part of two consignments – one of 2100 Coopworth-cross from Bay of Plenty and the other 1000 blackface mixed sex hogget lambs.

The majority were also very light types, weighing in under 25kg live weight.The extra numbers were a few too many for the local buying bench and buyers were selective.

Male lines from light to medium sold for $27-$64, while ewe lambs of similar weight made $25$58. The best lines of mixed sex managed $80-$85, but generally most traded at $20-$53.

KING COUNTRY KING COUNTRY Lamb numbers continued to climb at TE KUITI on Friday December 8 as sellers mitigate the risk and offload sooner rather than later.

The yarding of 7000 was a tough ask but considering the current selling environment overall the market could have been worse.

The top prime lambs sold on a steady market at $97-$123, with forward stores earning $89-$93.

While most of these were males, a line of capital stock ewe lambs were also offered and sold for $90.

Interest for medium and longer term lambs waned significantly with just a small bench of buyers active. Medium lambs sold for $70$80, and lighter types, $35-$55.

A small cattle yarding was mainly 1-year, though a small yarding of 2-year On offer 260 Rams HerefordMade up of 200 Terminal Rams Friesian steers traded at • Dorset Down X lambs growing 500 to $2.65-$2.80/kg.

600 grams a day from birth to weaning A consignment • South Dorset Rams for quick maturity of 50 Angus • SIL Recorded and Studfax • Autumn Scan & AngusHereford 1-year Also 60 Halfbred Maternal Rams steers made Merino Ram/Romney Ewe solid values on the current MILK • WOOL • MEAT market as 310Bred to fit the Smartwool Contract 360kg fetched 20-25 micron $2.95-$3.06/ Grown in the harsh Maniototo climate kg. Heifers were mainly Enquiries to: Johnny Duncan 027 327 2372 Angus-cross or Herefordor email: JDuncan.Craigneuk@xtra.co.nz

CRAIGNEUK

LK0088391©

16th Annual on Farm Sale Friday 12th January 2018

HAWKE’S BAY HAWKE’S BAY As the dry conditions continue vendors feeding into STORTFORD LODGE are having to make the decision to offload into a deflating market, with prices back at both sales last week.

Prime ewe prices came back $10-$15 last Monday. Very heavy ewes made $117-$120 but most traded at $70-$107, with a further 200 head earning $50-$67. A small lamb section offered up mixed quality and prices were satisfactory. The better end of the lambs sold for $98-$121, with lighter types earning $76-$102.

Good quality Angus steers were still a highlight and 663-685kg managed $2.95-$3.01/kg to be the best selling cattle yarded.

Very heavy beef steers, 781-800kg, made $2.82-$2.83/kg which pushed them to $2210-$2252.

Friesian-cross were well off the pace at $2.55/kg despite tipping the scales at 793kg.

With local trade full heifer prices came back, and Angus, 543kg, sold for $2.62/kg, while HerefordFriesian, 486-568kg, returned $2.54-$2.56/kg. Prime cow prices eased to $2.01-$2.06/kg.

Store lamb numbers lifted to nearly 8000 last Wednesday and the market made a big correction as buyer numbers were limited, especially for small, long term types.

Just one consignment of 800 Romney wethers was shorn, and these sold for $71-$84, while ram lambs traded at $56-$82. Whiteface cryptorchid prices came back, with good types making $64-$85, and lighter, $47-$65. Nearly all lines of mixed sex were blackface and the medium to good lines traded at $69-$85. Ewe lambs returned $35-$73.

Cattle numbers lifted to 820 head and featured a number of specially advertised lines of top quality traditional and exotic cattle. The buyers were very much local, with just a handful of outsiders registered though taking very few home.

As expected the market continued its downward trend but vendors were prepared to meet it.

Two-year Angus steers traded at $2.85-$2.95/kg for all lines ranging from 415kg up to 578kg. Other traditional and exotic lines made $2.75-$2.86/kg.

One line of Angus heifers had the weight of the steers though sold at a 15c/kg discount, while lighter lines, 317-390kg fetched $2.78-$2.87/kg. A very nice line of Hereford-Friesian, 530kg, topped

the section at $1400.

Specially advertised beef bulls had the usual buyers in their seats and a line of 31 exotic, 450kg, were keenly contested and sold for $3.04/kg. All other lines of significance made $2.78-$2.85/kg.

The 1-year market was hard going though good weight in the steer pens meant most lines still sold in a $900-$1240 price range.

Lighter lines of Angus & AngusHereford managed $3.12/kg and $3.58/kg, though most traditional lines, 347-423kg, traded at $2.93$3.03/kg.

A line of Angus heifers, 320kg, managed $3.06/kg, while two lines of well-presented South Devon sold for $1075-$1110, $2.78-$2.87/ kg.

A line of South Devon cows with top calves-at-foot made great returns at $2010 per unit, while capital stock Angus heifers with calves and run-with-bull fetched $1790.

Friday saw the early ewe fairs with 9900 mixed age ewes offered.

The sale started off with the 2-tooths and while the first line sold exceptionally well at $188, fierce bidding from two corners pushed the second line up to $222.

The competition settled after that initial burst, and most other lines traded at $150-$171, while 4-tooths returned $100-$160.

The 5-year and mixed age markets were variable, and while prices were up on recent years they perhaps were not as high as anticipated. The very good quality lines were chased with the best 5-year ewes selling to $130-$140, and a large portion of the mixed age also managed $130-$148.

Lesser lines looked to be good shopping as most other lines were picked up for $100-$120.

MANAWATU MANAWATU Weaning has now moved into the higher country in areas that feed into the Feilding sale yards, and a whole new batch of cull ewes came to FEILDING last Monday.

A big gallery of buyers gathered for the dairy beef weaner fair last Thursday, though the market was markedly back.

Non-existent space at the processors has seen the market come back $15 per head and the best ewes could achieve was $122, while good types earned $97-$119.

Medium hill country ewes filled more pens and traded at $74-$91, and lighter $35-$72.

There were few true prime lambs which did keep demand solid for those that were offered, and they managed $133-$139.

Most other lambs were forward stores and reflected the Friday market as prices eased to $81$118, while medium primes returned $120-$125.

Demand was solid for ex-sire bulls and the section was split into two lots, with high yielding Hereford making $3.05-$3.06/kg, while most other lines, including Jersey, traded at $2.34-$2.53/kg.

Like most other classes the lack of space meant boner prices eased, and Friesian heifers, 482-494kg, fetched $2.15-$2.17/kg, while cows, 515-625kg, averaged $1.77/ kg.

Pockets of rain helped the market for weaners last Thursday, with a further 1800 offered.

The heavier Friesian bulls were

discounted by $30-$50, though those 110kg and under fell by $70-$115. Weights are improving, and a large number of calves weighed 128kg plus, with most making $525-$580, and anything 110kg and up to that weight, $480$550. A price split for 100kg calves had better types at $435-$450, though lesser lines trailed that by $40 per head. Most calves under 100kg traded at $400-$420.

A slightly larger yarding of Hereford-Friesian bulls came back also, and 110-127kg returned $550$635.

The heifer market was hard going and some lines were passed in. Hereford-Friesian, 100-102kg, made $400-$450, while 120-141kg traded at $470-$580.

With a lamb yarding more than 10,000 head fewer than last week and the South Island having been told lamb sale prices were cheap last week, lamb prices (and lamb vendors) enjoyed a sale price lift of around $10-15/hd at Friday’s sale. The top lambs did not change a great deal but the medium and lighter lambs that were punished last week lifted significantly. With the rain being so localised, local buyers were not particularly active and most lambs left the district.

Ewes, $51-$85; Lambs; heavy, $87-$119; medium, $67-$92.50; light, $44.50-$83.

Cattle prices also enjoyed a firmer day, especially the better traditional cattle. Once again, the yarding was dominated by yearling cattle but the total yarding was also much smaller than last week.

The top older steers sold up to $1825, $3.05/kg, for 20 Angus and 20 heavy Angus yearlings sold for $1660, $3.12/kg. The weekly indicator two-year steers from a regular sold for the same rate as last week.

Bulls, however, continued to ease. Four two-year Angus bulls sold for $1545, $2.81/kg, in a steady market but the top 16 yearling Friesians sold for $1218, $2.54/kg.

Some pens of the yearling heifers definitely looked buyable later in the sale but it’s not easy to find a home for them. The older heifers were held back by a lack of quality and numbers but there were some useful yearling heifers.

Steers; 2yr, 375-599kg, $1370$1825, $2.75-$3.15/kg; 1yr, 132532kg, $380-$1660, $2.71-$3.44/ kg; Bulls; 2yr, 410-550kg, $1110$1545, $2.71-3.44/kg; 1yr, 273479kg, $720-$1218, $2.51-$3.78/kg; Heifers; 2yr, 285-440kg, $590-$970, $2.07-$2.53/kg; 1yr, 173-408kg, $520-$1090, $2.49-$2.89/kg.

WAIRARAPA WAIRARAPA A reduced yarding from 5000 head at MASTERTON on Wednesday was mainly due to around 1000 either sold on-farm or retained, but from the market’s point of view it was a good move.

Values were similar to the previous week as buying power from Hawke’s Bay and local dominated, with Manawatu also active. Top lambs sold up to $78 for a quality annual draft line of Romney-Texel cryptorchid.

Most lambs in this run were whiteface males, though one good line of blackface mixed sex did fit into the mix. Medium lambs traded at $60-$70, though lighter lambs proved hard work again and sold for $25-$35.

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 18, 2017 CANTERBURY CANTERBURY Both the store and prime lamb pens hit the highest levels so far this season at CANTERBURY PARK last Tuesday, while a boost in heifer and steer numbers had prime cattle outnumbering the stores.

Sheep numbers pushed over 12,000 as all classes posted very high volume.

Down-cross lambs sold for a premium, with $99 achieved for the top line of mixed sex. Good strength was shown for the ram lambs with top lines selling to $85$95, and the remainder trading at $58-$77. Mixed sex prices were all over the show as some lines sold above market value and others below. In general good types made $80-$89, medium $60-$77, and light, $53-$60.

Prime lamb numbers lifted to nearly 2200 but tight processor space meant the market lost some ground. Whiteface lines traded at $80-$149, while blackface earned $93-$144.

Ewe numbers shot up again and prices continued to decline with a further $7-$10 removed. Anything in good and better condition made $120-$166, medium $70-$118, and light $37-66.

The prime cattle markets are feeling the pinch from lack of space, and true prime steers traded at $2.80-$2.90/kg irrespective of breed. Through the second cuts, Hereford-Friesian mainly earned $2.68-$2.78/kg, while a small offering of forward store Angus, 480-495kg, managed $3.04-$3.05/kg. Six Angus-cross, 508kg, made $3.06/kg.

While the top heifers sold up to $2.70-$2.80/kg for traditional, exotic and high yielding HerefordFriesian, the general trend for the market was southwards and most local trade earned $2.60-$2.70/ kg. Friesian heifers, 453-474kg, fetched $2.43-$2.50/kg.

A moderate yarding of store cattle sold to a small but determined buying gallery.

Two-year Angus steers, 400449kg, sold for $3.00-$3.03/ kg, while a line of four Hereford heifers, 393kg, managed $3.05/kg.

The real strength was in the 1-year pens, as light beef lines and the odd heavy one sold up to $3.33-$3.39/kg, while Murray Grey, 283-316kg, fetched $3.13$3.24/kg. Light Hereford-Friesian, 280-286kg, sold exceptionally well at $3.34-$3.36/kg, and 333-383kg, $2.90-$2.97/kg. Some lines of

heifers also pushed over $3/kg, but more common was the relatively cheap looking Hereford-Friesian, 348-355kg, at $2.77-$2.86/kg.

Just over 870 dairy beef calves featured at COALGATE last Tuesday and those still in the market were rewarded as prices came back $25-$50 for Friesian bulls and Hereford-Friesian heifers.

A larger portion of Thursday’s bull section weighed in under 100kg and Friesian, 93-99kg, eased to $380-$445, while 101-109kg returned $415-$460. Just two heavy lines managed to push to $500 and $540, with the top line being seven 109kg Hereford-Friesian.

Heifers posted a similar downward trend and again the pens mainly featured lighter lines under 100kg. Hereford-Friesian, 87-99kg, were some of the better selling lines despite the drop in price as they sold for $410-$475.

Heavier lines, 100-107kg, did not lift much further in price from there with all bar one small line slotting into that range.

Steer numbers increased and Hereford-Friesian, 99-101kg, sold for $470-$505.

Store lambs could easily have been sold twice over last Thursday.

The top mixed sex sold to $100, with the lion’s share trading at $90-$97. The remainder sold at respectable levels of $62-$89.

Prime lamb prices did not reflect the very tight space available, and the market was at least steady, with third cuts firming $2-$5. The top lambs sold for $150-$169, medium $120-$149, and the lighter end $90-$119.

A much more manageable number of prime ewes were offered and the market was steady to easing. One line of nine very heavy ewes still managed $248, though $130-$156 was common for the better end ewes, with most other lines trading at $80-$129.

The best price in the prime steer pens was $3.01/kg for two 448kg, but in general high yielding types achieved $2.75-$2.85/kg, and second cuts, $2.70-$2.74/kg. High yielding heifers sold to $2.74/kg, and 483-560kg, $2.65-$2.71/kg.

Dairy-cross, 443-465kg, sold for $2.44-$2.50/kg.

The real highlight was the cow section as strong demand had good beef types selling to $2.19$2.24/kg and 583-588kg, $2.16/kg.

The top Friesian lines made $1.95/ kg, while the majority traded at $1.69-$1.79/kg.

There were very limited store cattle to speak of and these mainly came forward in small lines. One light line of 250kg Hereford steers sold well at $3.44/kg, while early born Hereford-Friesian, 403411kg, returned $2.60-$2.73/kg.

A line of Angus encouraged some excitement in the heifer pens and at 389kg sold for $2.98/ kg, while at the other end of the weight range, Angus-cross, 258kg, sold for $3.33/kg.

Coalgate will change its regular sale day to Wednesday, starting from Wednesday January 10.

SOUTH CANTERBURY SOUTH CANTERBURY Auctioneers had a tough job at TEMUKA last Monday, with high cattle and sheep volumes butting heads with no processor space and very dry conditions.

The first half of the weaned calf sale last Thursday featured 2800 mainly Friesian bulls, with beefFriesian sold last Friday.

Very limited processor space meant prime markets were a hard ask, and lambs eased to $100$148.50, with a small top end achieving $150-$163.

Prime ewe numbers pushed to new heights while prices lost more ground. Heavy ewes made $100$149, medium, $70-$99, and light, $40-$69.

Store lamb prices fell below last year’s level as local demand was very limited. Medium to good lines came back to $50-$86, though values were very similar for the lighter end.

A consignment of medium Romney mixed age ewes traded at $121-$133, and Corriedale, $110$114.

High cattle throughput continued to put pressure on the market, which is declining as a result.

Good Angus steers, 484-506kg, made a premium at $2.95/kg, while the Hereford-Friesian dominant section mainly traded at $2.70-$2.80/kg for the better types, with one line of seven, 694kg, making $2.90/kg. Second cuts earned $2.60-$2.65/kg.

Heifers took a significant dive across the board, with HerefordFriesian losing 20-25c/kg as 478-573kg mostly traded at $2.55$2.66/kg.

The bull market lost the least amount of ground, with Friesian, 547-565kg, easing 5c/kg to $2.57$2.61/kg, and Jersey, 455-511kg, $2.48-$2.57/kg. Hereford-Friesian cows sold on a reasonably solid

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market as 540-635kg returned $1.95-$2.02/kg.

Heavy boner Friesian cows came back 8-12c/kg to trade at $1.80$1.88/kg, but the medium types managed to hold at similar levels.

As the weight dropped further the market continued its downward trend down to $1.60-$1.74/kg. The news was no better for Friesian heifer’s, with 10-15c/kg taken off all weight ranges.

The hard task of finding homes for over 2800 calves was put before auctioneers last Thursday, but by sale end most had been sold as vendors met the market.

Of the 1820 Friesian bulls offered, 70% sold at $400-$460 for a wide weight range of 95-140kg, and those prices were spread right through the weights, with lighter lines of quality calves selling to $460, and vice versa.

Heavy calves suffered the biggest easing as buyers worked to tight per head budgets, with prices $40$50 cheaper for lines 130-132kg.

However as the weight dropped and those per head budgets held the easing was not as pronounced, and 105-110kg calves reduced by just $10-$20 to $440-$460. The margin was even tighter for 90100kg, with these relatively steady to slightly softer at $380-$430.

OTAGO OTAGO With the end of year fast approaching a high volume of stock continued to flow into BALCLUTHA last Wednesday, though prices markedly eased across most classes, PGG Wrightson agent Russell Moloney reported.

Good store lambs sold up to $86, though medium and longer term types were harder to shift, making $70 and $50 respectively.

The prime lambs were easily absorbed though at lesser rates than the previous week. Heavy lambs eased $10 to $130-$135, with a similar movement for medium types to $120-$125. Third cuts however held value at $110$115.

Ewe prices continued to drop as processors focus on lambs, and all types came back $15-$20 with heavy types at $115-$120, medium $95-$105, and lighter, $70-$80.

Cattle also featured last week though sold at reduced levels of around 10-15c/kg. Highlights included 2-year Angus steers, 560kg, $2.72/kg and Angus-cross cows with calves-at-foot, $760 all counted.

NOVEMBER

29, 2017

EYE LIVESTOCK TLE

TARANAKI CAT

2.47

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2.86

2.73

225 - 245KG

310KG

350 - 415KG

400 - 505KG

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1-YEAR STEER BEEF/D AIRY

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STORE CATTL

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Receive comprehensive liveweight-based results from the entire sale even when you can’t make it there yourself. Sign up to LivestockEye reports and keep your head in the game.

And now LivestockEye Taranaki has joined our collection of nine other saleyards we report on.

31

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2.48 1.59 2.75 2.46 2.75 2.54 2.35 1.25

SUBSCRIBE TODAY AT AGRIHQ.CO.NZ/FARMER ph 0800 85

info@agrihq.co.nz

600kg

2.82

25 80

rihq.co.nz

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email info@ag

2398HQV2

Markets

Markets

32 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – December 18, 2017 NI SLAUGHTER BULL

SI SLAUGHTER LAMB

NI SLAUGHTER MUTTON

($/KG)

($/KG)

1-YEAR HEREFORD-FRIESIAN STEERS, 295-345KG, AT WELLSFORD

($/KG)

($/KG LW)

7.00

4.50

3.09

338kg, at Lorneville

Works are now flat out Alan Williams alan.williams@nzx.com

S

ILVER Fern Farms, the country’s biggest beef processor, expects this month’s cattle kill to be a record for December.

“It has changed so quickly since everywhere became dry,” chief executive Dean Hamilton said.

“The third week in November was significantly up, the last week in November busier again and each week in December has had more numbers.

“It’s dry from Dargaville to Southland.”

It was the same for Affco.

National livestock manager Tom Young said King Country was the only place with meaningful rain.

Beef schedules were easing in reaction to United States imported beef prices coming back as buyers there saw the big New Zealand processing volumes.

Lamb schedules were still in the stellar $7kg area.

All the meat processors were flat out.

Suppliers to both Silver Fern and Affco had a one to two week wait to get both cattle and sheep processed.

Rain in many areas last week wasn’t expected to change kill patterns, Hamilton said.

“The rain is a nice reprieve but farmers have made up their minds to get stock away by the end of the year.”

MAKING A KILLING: Silver Fern Farms chief executive reckons the firm’s cattle kill this month will be a December record.

Affco numbers were well up on this time last year with more lambs, prime steers, bulls and cows, Young said.

“We’re getting a huge number of bulls and prime steers.”

Plants in both islands were working overtime and Saturdays to keep up with demand and would be operating over the Christmasnew year break.

“We’re trying to find space for all types of animals, trying to keep all farmers happy and not just focus on one type.”

For sheep meat, lambs were the priority but Affco was processing mutton in both islands.

The manufacturing beef price in the US was down about US20c/lb for bulls in the last three weeks and by

10c/15c for cows, Hamilton said.

That was not unusual for this time of year, with customers there seeing big supply volumes coming through.

For a typical bull, that added up to about NZ$90 a head.

Hamilton’s estimate put prime animals in the mid-$5/ kg range with bulls about $5kg and cows $4kg for manufacturing meat.

Lambs were holding about $7/kg from the tops of $7.30 to $7.50 – helped by strong demand for the Chinese New Year trade for delivery by early February.

Young believed $6.50/ kg was a reasonable target for the schedule once the Chinese peak came off,

though Hamilton thought it might be early to make a call on that.

Easter was a couple of weeks earlier this year and demand for chilled lamb for Britain and Europe would help when the midJanuary market was being framed.

Even then about 40% of the carcase would be going as forequarters and flaps to China and the Middle East, a big driver of the market and typically a bit weaker postChinese New Year pricing, he said.

Young said light lambs up to 15kg would be a concern if the dry continued around the country. A pointer there was that feed pressure had reduced store market prices to less than $3kg.

95-140kg, at Temuka Friesian Bull Calf Sale

2017 was a year out of the box WHILE the pre-Christmas rush to offload stock is on now is a good time to reflect on the year. It is an impossible task to fit all that has happened into a small space but I will try my best.

Suz Bremner It has been one out of the box AgriHQ Analyst as we have seen mainly positive movements in our industry sectors, from high cull cow and ewe prices to strong store markets and outstanding venison prices. To me it feels like there has not been any let up in activity in the yards over the course of the year and many will be looking forward to a well-deserved break.

Mother Nature threw some interesting weather at us, which affected sales, with near drought conditions earlier in the year then cyclones and heavy rain in early spring, though, as I write this, we have come full circle back to being very dry in many areas.

Looking back to early 2017 we hit the ground running with solid breeding ewe fairs, which reflected positivity in the industry and proved to be well founded later in the year as prime lamb prices reached record levels and those same ewes climbed to new heights in the cull ewe market.

Weaner fairs and calf sales started off steady but soon gained momentum and we saw 2016 records broken. With weaner prices strong, the prices for older cattle pushed even higher though buyers were comfortable in their purchases as high schedule prices provided good margins even at these levels.

The boner cow market started off strong though a flood of cows as milk payouts plummeted in March did temper demand but that was short-lived and lost ground was quickly regained.

And we can’t look over this year without mentioning the phenomenal cull ewe market setting new records with a consistent run of strong prices from August to very recently.

This year has certainly provided plenty to mull over. suz.bremner@nzx.com

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NZ’S #1 RURAL REAL ESTATE BRAND ISSUE 2 - 2017

YOUR GO -TO GUIDE FOR REGULAR, INFORMATIVE COMMENTARY ON KEY MATTERS AFFECTING THOSE LIVING AND WORKING IN RURAL NEW ZEALAND.

Insight s

FROM THOSE ON THE GROUND ———

NEW ZEALANDERS ARE KNOWN FOR THEIR WILLINGNESS TO HAVE “A YARN” AND RURAL KIWIS ARE AMONG THE BEST. SOME OF THE FINEST RURAL DIALOGUE CAN BE HEARD AT THE MID-WEEK STOCK YARD SALES, AT THE LOCAL PUB ON A FRIDAY NIGHT, AT THE FARM SUPPLIES DEPOT AND ON THE KIDS’ SPORTS FIELDS AT THE WEEKENDS. ———

Rural New Zealand likes to know what’s working for others down on the farm, how neighbours feel about the latest commodity prices and, for farm and lifestyle dwellers, the best ways to optimise returns and use of landholdings.

to rural New Zealand. They know and understand that rural blood runs deep and they genuinely want to help transition their clients through the sales or purchase process efficiently and respectfully.

Bayleys Rural Insight acts as an ear to the ground and brings together topical articles and commentary on matters of interest to those who live rurally – whether they’re in the far-flung country backblocks or on the city fringes.

That’s why Bayleys is New Zealand’s number one rural real estate brand – selling more farmland, specialty rural property and lifestyle property than any other agency in the country.

Check out some of our recent sales successes from across the rural network on page 3.

This latest booklet opens the gate to new ideas and current trends across the rural spectrum with 10 snappy articles to read.

Topics include the benefits of protective-use covenants, how the growing demand for Manuka honey could provide an additional income stream, the viability of deer on hill country land, the opportunities presented by a lift in dairy pay-outs and the groundswell of smaller vineyard owners leasing land to the big players.

While Bayleys’ country sales team is kept busy day-to-day marketing and selling farms, horticultural blocks, vineyards and lifestyle properties nationwide, they’re never too busy to have a chat.

Like me, Bayleys’ country agents have a strong attachment

To keep the rural conversations alive, every fortnight or so, a new Bayleys Rural Insight will be released online covering the rural continuum and including dairy, sheep and beef, viticulture, horticulture, emerging sectors and lifestyle property.

You can sign up to receive these insights direct to your inbox by heading to bayleys.co.nz/rural-insight.

It would be great to have you onboard with the Rural Insight community!

Cheers, Duncan Ross Bayleys national country manager

TO STAY UP TO DATE AND IN-THE-KNOW, REGISTER AT BAYLEYS.CO.NZ/RURAL-INSIGHT TO RECEIVE BAYLEYS RURAL INSIGHT DIRECT TO YOUR INBOX.

#1

RURAL REAL ESTATE BRAND IN NEW ZEALAND

Bayleys country

111

SALESPEOPLE

$1,310,432,280

1,003

SALES AND LEASING TRANSACTIONS

OF PROPERTY SOLD OR LEASED

*For the period 1st April 2016 – 31st March 2017.

2

Rural Insight

SOLD

SOLD

SOLD

Boundary lines are indicative only

52 Uretiti Road, Waipu, Northland

SOLD

2002 Hunua Road, Hunua, Auckland

SOLD

2326 Tairua Road, Hikuai, Coromandel

SOLD

Boundary lines are indicative only

157 Rotongata Road, Te Awamutu, Waikato

SOLD

39 Plantation Road, Te Kauwhata, Waikato

SOLD

391 Te Weta Road, Waikite Valley, Rotorua

SOLD

Boundary lines are indicative only

207 Galatea Road, Whakatane, Bay of Plenty

SOLD

99 Pehiri Road, Tiniroto, Gisborne

SOLD

1353 Papaiti Road, Brunswick, Whanganui

SOLD

46 Mitchells Road, Bankside, Canterbury

20 Mangatete Road, Ngakuru, Bay of Plenty

SOLD

30 Gilbert Road, New Plymouth, Taranaki

SOLD

2152 Puketitiri Road, Rissington, Hawke’s Bay

SOLD

Kohekohe Forest, Homewood Road, Masterton, Wairarapa

SOLD

42 Clover Road East, Hope, Tasman

SOLD

877 Waihopai Valley Road, Marlborough

SOLD

228 Reynolds Road, Methven, Canterbury

631 Crawford Road, Gore, Southland

CONTENTS Covenants offer options to protect farm bush ............................................. 4,5

Payout lift opens up dairy opportunities ........................................................ 14,15

Calf rearing comes with caveats .........................................................................................6,7

Growers and farmers face population pressure ................................... 16,17

Deer a profit option in hill country............................................................................... 8,9

Horticulture leads shift in land use..................................................................... 18,19

Manuka honey opportunities ..................................................................................... 10,11

Land use options in South Island open up................................................... 20,21

Bloodstock sector on the up....................................................................................... 12,13

Vineyard leasing an appealing lifestyle option......................................... 22,23 Rural Insight

3

Covenant s OFFER OPTION TO PROTECT FARM BUSH

As farms come under pressure to fence off more waterways farm covenants are providing one means to achieve that while also adding to the property’s aesthetic and sometimes capital value.

B

y far the most popular option for farmers seeking to protect ecologically significant land is the Queen Elizabeth National Trust which now claims over 180,000ha of voluntarily protected land across the country, almost the equivalent area to Stewart Island.

totaling 40ha or 10 percent of their farm covering wetland and hill country bush stands. It also includes land in the increasingly popular Maungatautari Ecological Island Reserve, an area enclosed by one of the country’s longest predator proof fences that stretches 47km around the 3,400ha enclosure.

QEII acting chief executive Paul Kirby says interest from farmers and landowners in placing covenants on their properties is stronger than ever. The organisation is busy placing 120-150 covenants a year on areas of land, with 4,300 covenants now registered with it.

“While it is possible to place a covenant on your property using a council or Department of Conservation covenant, QEII is preferred by most farmers because of the support you get with it.

“There is also a wide variety of landscapes land owners may want to protect. It can be bush, but also archaeological sites including old Pa sites, coastal areas and even bird habitats.”

Long-time Waikato farmer and conservationist Bill Garland is a leading light for farmers seeking advice and views on the benefits of placing land into a Queen Elizabeth Trust covenant.

His own sheep and beef property on the flanks of Mt Maungatautari near Cambridge has five separate covenants

4

Rural Insight

QEII is the preferred option by most farmers seeking to protect ecologically significant land because of the support you get.

That includes a visit every couple of years from the field officer to check the fences, offer advice on pest control and just see how the block is looking.”

QEII support can also include providing up to 50% of the fencing cost, and often councils will provide additional funds for the covenanted land’s protection.

He said having a covenant in perpetuity offers a lot of peace of mind to the landowner wanting to protect the bush that the protection will continue beyond their lifetime.

“They are making a sacrifice to do this, and know that if the farm is sold or passed on, that protection will remain.”

He said whether or not a covenant adds value to a farm can be debated, depending upon site, district and scale.

“In some cases it will improve the farm’s aesthetic value by protecting what is defined as an ‘outstanding landscape’, but may prevent subdivision in the future which you could argue actually detracts from its capital value.”

But in some areas like his in the Waikato having a covenant added to both aesthetic and capital value, bringing a valuable means of helping protect waterway catchments, and an appealing visual bonus.

“It is also helpful that QEII offer some funds to help with surveying the blocks into covenant titles, and with fencing costs for the blocks.”

Bayleys Taranaki rural agent Mark Monckton marketed a 120ha property on the Taranaki coast under contract at present that includes 81ha of covenanted regenerating bush. He said it could be debated about how much value a covenanted title adds to a property, with some buyers putting more significance on it than others.

It can be debated as to the value a covenanted title adds to a property, with some buyers putting more significance on it than others.

“But it does also often mean you have part of the farm already fenced off in more sensitive areas from stock. You do certainly get an improvement on larger hill country units with some of that tougher country fenced off. The assistance you get to fence these areas is often a welcome bonus for doing it too.”

The Taranaki region has something of a surge in farmer interest in covenanting bush areas over recent years. Sixteen new covenants were allocated to Taranaki in the 2015-16 year, out of a national yearly total of about 120.

Paul Kirby said the popularity of covenants in the region have been buoyed by a supportive regional council that is encouraging landowners to protect their special environmental areas.

A number of high profile farms throughout New Zealand also include QEII covenants upon them, including 2015 Ballance Farm Environment award winners John and Catherine Ford who protected 140ha of their Highlands Station south of Rotorua.

“A few years ago people shied away a bit from covenants but they are quite common place now and farmers understand them better than they once did,” says Bill Garland.

Rural Insight

5

CALF REARING COMES WITH CAVEATS

With the beef schedule sitting at near record highs and good prospects ahead for that continuing amid tight global beef supplies, rearing calves for the store market could be an option to consider for spring, or even for autumn born animals.

B

ut as appealing as rearing a few calves can seem, experienced animal health and farming experts caution it pays to do some homework before embarking on what can be the riskiest end of the livestock supply chain.

Dr Bas Schouten has spent the past 40 years advising on how to rear better calves. He admits he can be frustrated by what he sees unfolding on small rural blocks annually over late winter in particular.

“It is easy to think that rearing a few calves on your small block will be a nice interest for you and your children to be involved in. But it comes with some big demands upon your time and your wallet, well before you get to see a return on those calves, and it may be a return that is not what you were hoping for,” says Dr Schouten.

But for anyone seeking a dedicated, large scale operation, opportunities also exist in the market.

Bayleys Waikato rural agent Scott Macdonald had an operation on

6

Rural Insight

the market earlier this year capable of rearing 4,000-5,000 head a year, located close to Hamilton.

With 37ha of land and full-scale rearing sheds, it offered an opportunity for anyone who may have cut their teeth on smaller scale rearing operations.

“No doubt, calf rearing can be a riskier business and experience is important, but the returns are there to match that risk if you want to commit.”

The business included a full outline of procedures and policies for successful rearing, and a guide to buying quality calves for autumn or spring rearing.

The operators of this business found a market for contracted supply of quality weaned bull calves sought by larger beef operators and finishers. The business included its own hydroponic feed growing facility, taking barley seed to feed over eight days.

New Zealand also now has a very robust Animal Welfare Code of Practice, and rearers are advised to keep in mind that this applies as much to them as it does to large scale commercial farmers or rearers.

The Animal Welfare Code of Practice applies as much to rearers as it does to large scale commercial farmers.

Morrinsville veterinarian Richard Mason says the first step in securing quality calves to rear involves knowing you can trust the person selling them to you, and building on that relationship over several seasons.

He also advises spending some time with a calf rearer before embarking on it to see if it is an option.

“And it is a good idea to visit your local vet and get some good advice on hygiene and disease risk. Also make sure you have all your facilities and sheds ready to go before you start, rather than trying to adapt as your numbers grow is also important if you are to avoid disease outbreaks.”

“When it comes to rearing, it’s a business that can turn on a dime if you get disease running through the operation.”

Common calf diseases include cryptosporidium, roto-virus, and leptospirosis. Typically crypto’ and roto-virus will cause wasting and diarrhoea. Cryptosporidium in particular can be a hard disease to eliminate and sometimes persists to the following season in rearing facilities.

“They had also found a niche in the past on-selling calves they have started rearing to small block owners who are seeking calves from a healthy source.”

Sourcing healthy calves was often the biggest challenge for lifestyle and small block owners. Dr Schouten said trust was important knowing that the seller was not just passing on their problem calves.

Where possible calf rearers are advised to source calves from herd vaccinated against roto-virus and bovine viral diarrhoea (BVD), and ensure they had good colostrum intake.

BVD could be contracted in the womb from an infected mother, and resulted in calves being weaker at birth.

Dr Schouten says for small block owners committed to doing a good job, calf rearing can be hard but rewarding work.

“If you can have a relationship with a local farmer who is prepared to offer advice that can make a big difference between succeeding or not.”

Sourcing healthy calves is often the biggest challenge for lifestyle and small block owners.

“Another common mistake is to go the local sale and buy the ‘cheap’ calves on offer, only to find they are sick and either die or just do not do well.”

Once those calves are home, the business remains one loaded with a level of risk, dependent upon keeping disease at bay, and hoping the store beef schedule does not turn against you when it comes weaning time.

Rural Insight

7

A PROFIT OPTION IN HILL COUNTRY Despite challenges around competing land uses and a shrinkage in the national herd, the deer industry is well positioned to fulfil New Zealand’s goal to provide high quality protein products to the world’s most well-heeled consumers.

8

Rural Insight

A

n ANZ agri-report produced this winter highlighted the industry’s continuing tight supply of livestock and growing global demand for venison as a red meat product.

Both were pushing the sector towards returns approaching all-time highs for the 2017-18 year, now cracking the $9/kg schedule price.

Deer Industry New Zealand reports the sector is moving through one of its most stable supply periods ever experienced. This comes after the tumultuous surge in returns and numbers over 10 years ago, followed by a rapid drop in the farmed population, and a spike in farmer returns in 2008 driven by the weaker value of the New Zealand dollar.

Over that time the sector has managed to achieve something rarely seen in the red-meat sector, a level of stability that has the average schedule price at $7.40 a kg.

In the past decade the number of breeding hinds in the sector have declined almost every year, and are now at half their 800,000 peak.

Similarly total slaughter numbers are levelling off at about 300,000 and unlikely to pick back up to nearer 400,000 until 2019-20.

Bayleys rural agent Ben Turner in Canterbury says he has a regular stream of buyers interested specifically in deer units.

“However the challenge for us is finding enough deer units to meet that interest.”

He said Canterbury is more suited than ever to an industry that is showing signs of maturing with steadier, high level returns justifying the investment in infrastructure like fencing and yards on land ideal for deer fattening.

“It is quite possible that some of that hill country where sheep have typically been stocked may prove to deliver a better return in deer, and it’s well suited for that.”

He said with farmers also increasingly challenged over nitrogen losses in Canterbury, deer may also prove a useful additional land use that does not face the same challenges as traditional livestock.

Dan Coup, DeerNZ chief executive says the deer industry has had an ill deserved reputation for price volatility, when in fact the past decade has delivered relatively steady returns, despite variability within the year on schedule prices.

These include wealthier parts of Asia, Scandinavia and North America, with the United States showing the strongest growth to date.

That market’s total volume share stands at 30%, with a value share of 25%, overtaking Germany. While coming off a small base, Canada and Austria have also demonstrated strong growth.

ANZ analysts have reported the success of venison matches the trend for consumers seeking natural grass fed, high quality proteins that are not genetically modified, have no hormone treatments and no antibiotics used.

Being the largest farm source of venison in the world, New Zealand is well placed to meet this with most markets relying otherwise upon sporadic and unreliable sources of wild game over their main consumption periods.

Being the largest farm source of venison in the word, New Zealand is well placed to meet changing consumer trends towards high quality proteins.

Dan Coup says the sector’s livestock supply is likely to remain tight for a couple of seasons yet, as the higher prices encourage farmers to retain stock and build breeding herd numbers.

“We have been through a period where country that may have had deer on it has had them replaced with dairy support units.”

He says there are still a number of farms in Canterbury and Southland hill country with deer farm infrastructure including fences that have gone to sheep and beef in the past.

“As the tone has got more positive for deer farming, the option is there to buy a unit with the fences and facilities there. This may prove cheaper than converting a farm into deer.”

Deer may prove a useful additional land use that does not face the same challenges as traditional livestock.

“We are now at a point where the schedule is at $9.00/kg, and that is before our usual seasonal spring price peak.”

The supply side tension coincides with growing consumption outside of traditional season and markets has done much to put the product in a “sweet spot” for high, sustained returns.

A concerted effort by New Zealand marketers in the field overseas has helped deliver longer term, more sustainable returns to farmers here.

Rural Insight

9

Manuka

HONEY OPPORTUNITIES

Photo credit: Manuka Health New Zealand

Despite being a tough year for Manuka honey harvesting last spring-summer, honey processors are optimistically looking forward to spring time with the hope of a better harvest, and continuing strong returns for the liquid gold crop.

D

emand for areas of previously low value scrub land has continued to reflect the growth in the Manuka honey sector, with rural real estate agents reporting on going interest in more remote scrub country that only a few years ago would have been classed as almost waste country.

The growth in the Manuka sector has been significant in recent years, with value surging by 45% from 2015 to 2016, and only poor harvest conditions last summer slowing that growth rate.

This year’s inaugural Apiculture NZ conference was testimony to the industry’s strong prospects, with over 1,000 delegates attending at Rotorua.

The industry took fright earlier this year with the discovery of Myrtle Rust in a Northland nursery, and subsequent discoveries

10

Rural Insight

through the North Island. However at this stage there are no definitive indications native Manuka stands have been infected by the blight.

Meantime beekeepers and processors are anxiously awaiting a formal definition and testing procedure for Manuka honey from Ministry for Primary Industries to ensure the product retains its genuine high value status on overseas supermarket shelves.

Manuka honey’s contribution to New Zealand’s export value has recently been highlighted by export data showing New Zealand exports more honey by value than any other country, amounting to US$34 million for June alone. Yet the volume exported is only a tenth of China’s, with that market accounting for a third of sales, alongside the United Kingdom.

desirable Manuka friendly properties were fetching, with land prices more than doubling for some properties.

“Those properties that may have typically been worth about $1,500 a hectare are now exceeding $4,000 a hectare, and that is a lift experienced only in the last couple of years, it has come quickly. Premium Manuka properties are now more difficult to source with subdivision of larger properties becoming an option.”

Per hive and payment based on hive yields are evolving between land owners and beekeepers, with more land owners even considering planting Manuka stands specifically for honey production.

Greater awareness among farmers about the need for riparian strips to protect waterways is also creating another ecological and business bonus for them, with Manuka plantings helping preserve those waterways, bring more bees to the area and increase honey volumes in districts.

Farmers are also being encouraged to work with programmes like the Trees for Bees initiative, supported by Federated Farmers, where a variety of plantings were recommended including other natives and flaxes alongside Manuka, to reduce the risk of a mono-cultural, disease prone environment.

Te Awamutu based Manuka Health founded in 2006 has built a global brand for its quality Manuka honey and products, and has been working on fostering strong and productive land partnerships as part of their growth strategy.

Manuka Health has been working on fostering strong and productive land partnerships as part of their growth strategy.

Mark Monckton, Bayleys rural real estate agent for Taranaki said the surge of interest in Manuka had bought the focus firmly back on opportunities within some of his region’s more remote farming businesses.

The surge of interest in Manuka has bought the focus firmly back on opportunities for farming businesses located in more remote areas.

The company is seeking out Manuka landowners to partner with throughout the North Island area, providing healthy hives for placement on land that has a good proportion of Manuka plants upon it.

“We are keen to establish long term relationships that deliver a win:win for the landowner and for ourselves in what is proving to be a growing, high value market,” says apiculture general manager Dave Campbell.

“The districts around Taranaki and Wanganui, areas like the Waitotara Valley and Inland Stratford have experienced a real surge in interest in properties. We are seeing some large players in the industry including Settlers Honey, Comvita, and Tweeddale now holding a lot of country there.”

He said the interest was now reflected in the premiums Rural Insight

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Bloodstock SECTOR ON THE UP

Increased local and foreign interest in New Zealand bloodstock is delivering a welcome boost to provincial towns where horse breeding and training have long been a tradition.

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hat interest has included a recent high profile visit to the Karaka Bloodstock sales from Sheikh Mohammed bin Rashid Al Maktoum’s bloodstock buyer.

The sheikh is attributed with the creation of ultra-modern city of Dubai, and regarded as one of the biggest players in the world of horse breeding and stud ownership.

Ryman Health care co-founder Kevin Hickman has also bought some serious local investment to the industry, as the man behind the boutique stud farm Valachi Downs. Mr Hickman has been consolidating his ownership of prime horse properties in the Waikato region.

Bayleys Cambridge real estate agent Alistair Scown said just as the

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town was growing strongly from new residential investment, the bloodstock sector was also buoying that growth.

“Overall there are about 15,000 people directly employed in the thoroughbred industry within New Zealand, and $500 million is generated in wages and salaries by the sector. Here within the Cambridge district alone we would have several thousand people who owe their livelihoods to the horse industry.”

The New Zealand thoroughbred racing and breeding industry contributes $1.2 billion a year to the economy, chasing hard on the heels of the higher profile wine industry, including exports of 1,613 horses last year valued at $130 million.

The New Zealand thoroughbred racing and breeding industry contributes $1.2 billion a year to the economy, chasing hard on the heels of the higher profile wine industry.

Alistair said in recent years Cambridge has reinforced itself as the breeding capital of New Zealand, and interest in blocks either committed to horses, or suitable for them was proving strong.

“Any block that has good free draining soils and is in a good location in relation to town. The price really depends upon the level of infrastructure found on the block. For example if it is all wire fencing, you may have to allow for installing wooden railings, and of course you would have to look at the quality of buildings, barns and stables on the place.”

Alistair said New Zealand is typically the shop front for the Australia racing sector. Over the last five years New Zealand bred three-year olds have won 45% of derbies and 40% of Oaks races in Australia.

Cambridge’s appeal is shared by its sister town to the east, Matamata where high value thoroughbreds jostle with dairy cattle on some of the country’s most expensive pastureland.

Here too a very successful community of stud owners, breeders and trainers benefit from the superb conditions the district offers, and the wide sales opportunities our horses are earning in Australia and beyond.

The small land footprint such operations require make it an ideal opportunity for younger equine owners to make a name for themselves in the industry. Committing to a block means it could become a land bank, ultimately lifting in value as subdivision opportunities arise.

The small land footprint such operations require make it an ideal opportunity for younger equine owners to make a name for themselves in the industry.

This season also has 13 new stallions coming to stud in New Zealand, with 10 of them in the Waikato.

Interest is also growing from an increasingly wealthy Asian market and the bloodstock industry has recognised this.

This year New Zealand Bloodstock’s sales series will be focusing upon this market, and many Chinese investors will be bought down for the summer sales series.

Rural Insight

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PAYOUT

LIFT OPENS UP DAIRY OPPORTUNITIES

Fonterra’s recent payout confirmation for 2017-18 of $6.75/kg milk solids (MS) plus a dividend of 45-55c/kgMS was greeted with a collective sigh of relief by farmers and rural communities around New Zealand this spring.

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he volatility of dairy payouts is now such that farmers only feel confident when the final payout is confirmed, and in their bank for the season, given that volatility over the past decade has been double that of the 20 years before.

The recent annual AgFirst Waikato-Bay of Plenty dairy farm cost survey highlighted just how vital a payout with a “6” in it was for farmers not only in the study region, but nationally.

Survey compiler Phil Journeaux found the model farm used in the annual survey had incurred an additional $126,000 of term debt as overdrafts were capitalised into loans to cope with the low payout of 2015-16.

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Bayleys national country manager Duncan Ross said this amount has proven a significant figure for bankers seeking to get funds repaid by farmers as the payout takes a swing up. It is almost an additional $1 a kg milk solids of debt for the average dairy farm, but amounts are significantly greater for larger operations.

He describes many dairy farmers facing a “back to the future” season as the improved returns promised get channeled back into debt repayment, to get them back to a debt position they were in over two seasons ago.

“As an industry agriculture still faces some issues around debt, and dairying in particular.

“The rate of agricultural debt growth sped up through the past couple of years, growing 7.5% to July 2015, then 5.4% to July 2016, slowing somewhat this July to 2.5%. A large portion of that has been dairying having to take on board debt to cope with the downturn – banks are going to want to see some of that repaid now.”

Of the almost $59 billion now owed by the agricultural sector, estimates are almost $50 billion is owed by dairying.

This significant upward movement in debt loadings has led to a shift in bank’s expectations on loan amortisations in recent years.

“It had proven relatively easy a few years ago to acquire a loan and only be expected to make the interest repayments on it.

However a shift in attitudes and the last downturn means banks are looking to recover significant levels of debt from the sector, in some cases debt is as much as $40 - $50/kg milk solids.”

He anticipated for some farmers carrying large levels of debt the lift in payout would prove something of a double edged sword.

For some farmers carrying large levels of debt, the lift in payout would prove something of a double edged sword.

“Assuming they can maintain their lower cost levels, great, but the increased profit levels will be sought for repayment on principal, and that comes from after tax income.”

Banks have also been struggling for deposits on a tight local market, further prompting them to try and recoup more principal from large local rural borrowers, in order to lend on to new borrowers.

Duncan noted that despite a tough three years the dairy sector had on the whole weathered the downturn relatively well, with only the most extreme debt laden operations being forced to exit.

“Typically most people have looked at their cost structures and gone back to farm how they farmed 10-12 years ago, with lower

inputs, particularly lower bought in feed levels, and in some cases lower stocking rates.”

This was borne out by the results of the AgFirst survey this year.

Survey data highlighted how dairy farmers had managed to reduce farm working expenses back to 2013 levels.

For 2016-17 they were $3.81/kg milk solids, and for 2017-18 were estimated at a similar level, $3.77/kg milk solids.

The feed cost component of farm working expenses has dropped from almost 36% three years ago to 28%.

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

Duncan says the lift in payout brings the opportunity not only to repay some debt, but for farmers to make some major strategic, even succession, decisions about their farm and family’s future.

“The lift provides an opportunity to assess where you are at, and if perhaps it is time to move your asset. It could be you have a portfolio of farms, this is a chance to soundly evaluate their profitability on a more sustainable payout footing, and decide if perhaps it’s time to quit some of that debt and shore up the balance sheet, or release some of that equity within the portfolio for other investment.”

He said interest in dairy farms remains strong, founded on a belief in the industry’s long term fundamentals. There were also buyers in the market in strong cash positions who were appealing customers to banks wanting borrowers with good equity input.

Interest in dairy farms remains strong, founded on a belief in the industry’s long term fundamentals.

“There is a real silver lining in a decision to sell down and end up in a healthier equity positon as a result. This can enable you to focus on investing in the remaining farm asset, improving the operations you decide to retain.”

Rural Insight

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Growers AND FARMERS FACE POPULATION PRESSURE

The strongest population growth in 42 years for New Zealand has bought some welcome economic growth, but also stands to bring challenges for primary producers in coming years as the country grapples with housing shortages and the need for more land to meet that growing demand.

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tatistics NZ data highlights just how much of that growth is occurring in areas that also account for some of the country’s most valuable, productive farm and horticultural land, now increasingly feeling the pressure with urban housing creep.

To June 2016 New Zealand experienced 2.1% population growth with 97,000 additional people, of whom 70,000 were migrants now calling Aotearoa home.

That was up on 86,000 new people the year before and marked 2016 as the country’s strongest population growth year since 1974.

But it was Auckland, Bay of Plenty and Waikato that claim above average growth rates, with Auckland surging ahead at 2.8%, Waikato at 2.3% along with Canterbury, and Bay of Plenty 2.2%.

That growth has valuable soils around Pukekohe under threat from housing development, and prompted the industry to issue

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a warning to government earlier this year about the loss of the city’s food basket.

While 2,000ha of the land has been protected under Auckland’s Unitary Plan, Horticulture New Zealand is calling for another 6,000ha to be protected, given the high proportion of unique high value vegetable production soil in the district.

Horticulture NZ chief executive Mike Chapman has questioned whether New Zealand wants to lose a level of food security with the land’s loss to houses, and becoming reliant upon more imported products.

Rezoning of land from rural to “country style living” has had growers seen values triple in some cases, threatening the economics of cropping on it. Meantime those growers also face the prospect of Pukekohe’s population doubling over the next 30 years.

some dairy units have gone under the plough been irrigated and developed to grow broad-acre vegetable crops like potatoes.

However, as they move south, growers are also facing the pinch on their options as that region formulates its Plan Change 1, or “Healthy Rivers” plan which has far reaching implications for the sector’s ability to expand in the region.

“Like many regions, the plan will limit the ability of growers to change from a property’s present land use to a new one, requiring resource consent and being able to show the nitrogen losses from that land use will be lower, which is hard to achieve.”

Mike Chapman of Horticulture NZ said losing the land area poses a real threat to the many seasonal and permanent jobs the industry generates, which at present accounts for 60,000 positions.

“We support the Healthy Rivers plan and along with vegetable growers have been active in making submissions, working with iwi and the Waikato Regional Council,” he says.

However he has urged for greater debate about the need to maintain a healthy supply of fresh vegetables at reasonable cost to New Zealanders as the restrictions and supply pressures grow.

There is a need to maintain a healthy supply of fresh vegetables at reasonable cost to New Zealanders as the restrictions and supply pressures grow.

Duncan Ross said with its network of agents specialising in marketing high quality production land, Bayleys’ agents were playing witness to the significant land use challenges plan changes and population growth were bringing.

“As a company Bayleys has an excellent network of skilled people capable of assisting landowners facing these challenges.”

Rezoning of land from rural to “country style living” has had growers see values triple in some cases, threatening the economics of cropping on it.

He said for landowners choosing to exit the Auckland region Bayleys could help establish contacts with developers, while also assisting with potential land options for investment in other regions.

“This is one of the biggest challenges the sector has ever faced, and is even something of a dilemma many growers are going to have to negotiate. We are in a position to put them in touch with the people and the opportunities they may be seeking as they adjust their businesses to these pressures.”

Bayleys national country manager Duncan Ross says the surge in demand for land and its impact upon land values is proving a double-edged sword for growers in the region.

“They face the reality of having properties that have leapt in value by no small amount, effectively making them ‘wealthier’. But that in turn makes the economics of continuing to grow on that more valuable land challenging.”

The pressure on local Auckland land has seen some large horticultural operations expand into “non-traditional” horticultural areas like the Waikato.

Here the value of what would once have been seen as expensive dairy land now pales against the values further north, and

Rural Insight

17

Horticulture LEADS SHIFT IN LAND USE

Generational changes, climate and new market opportunities are all opening the door to significant land use changes throughout parts of the upper North Island. But rather than the wholesale conversion to dairying witnessed in some many districts in the past decade, this time it is the horticultural sector prompting a new wave of land use.

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he Northland region is experiencing one of the most significant horticultural developments witnessed since much of the western Bay of Plenty moved into kiwifruit in the 1980s.

This is coming as pastoral farmers sell up to avocado orchard developers keen to capitalise on the region’s idyllic growing conditions and the availability of quality land.

Avocado orchard developers are keen to capitalise on the Northland region’s idyllic growing conditions and the availability of quality land.

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Bayleys Whangarei real estate agent and orchardist Vinni Bhula said he is witnessing a definitive move to avocado orchards through the Kaipara district, and in the Far North district of Houhora on the eastern coast.

“In both these districts all the properties being developed to avocadoes would be dairy or dry stock farms, largely being taken over by new buyers who are already involved in the horticultural sector.”

He said both parties in the deals are usually in a sound financial position to be making the moves they are, with farmers often seeking a buyer to enable them to exit on retirement, and purchasing avocado growers with properties elsewhere in the region or beyond.

The sandy soils and climate of the Far North region lend themselves well to the subtropical crop, ensuring an earlier start

to the growing and harvest period compared to Whangarei and Bay of Plenty.

“Water supply remains critical and applications can seek as much as 1,500 cum a day, and councils are still trying to understand the aquifers serving these areas.”

Orchardists establishing avocado operations in the region are conscious of the crop’s biannual nature, but he says those that pay close attention to good crop husbandry and tree care can smooth out that contrast to deliver a consistent crop each year.

Jen Schuler Avocado NZ chief executive said there is 3,700ha of land in avocadoes, largely around Northland and Bay of Plenty, but the new plantings in Northland stood to add an additional 850ha to that.

She said the industry sits well alongside the kiwifruit sector, sharing packing and infrastructure facilities, while labour employed in kiwifruit can move into avocados during avocado season.

“Growers can expect to see crops come to about 50% potential in year four, and 100% by year seven, so there is quite a lead up time before we see the full volume come to market.”

She cautioned there was still much being learned about avocado production and husbandry in New Zealand, and there was no perfect way to grow the crop.

“People looking at a block should look back four to five years to get a good idea of its true production, due to that variation in fruit bearing each year.

“People are good at sharing information in the sector on best growing methods, and it’s well worth seeking out as much advice as possible to make the most of any orchard purchase.”

Parts of Waikato are experiencing stronger demand for high quality dairy properties to convert to non-pastoral, horticultural land uses.

Bayleys Waikato country sales manager Mark Dawe said the urban creep of south Auckland has impacted on land values for market gardeners there, representing something of a twin edged sword for them.

“It means that land may now be used for housing, and is under pressure to be built on, but the increase in value also means they can leverage off it to purchase land further south, even in the South Island,” he says.

Traditional dairying land in areas like north Waikato that may have been worth $40,000$45,000 a hectare, have earned a 20% premium for market garden crop land.

This has resulted in traditional dairying land in areas like north Waikato that may have been worth $40,000-$45,000 a hectare earning a 20% premium for market garden crop land.

“But we are also seeing it on a smaller scale, with the likes of strawberry growers on the edge of Cambridge looking further afield as growth in that town spreads into their land areas.”

In the Bay of Plenty the potential for conversion of pasture land to kiwifruit orchards has also just been given another boost, with news that Zespri will be increasing the licensed area it is allocating to SunGold kiwifruit.

The hugely successful fruit has experienced a surge in market demand well ahead of supply, prompting Zespri to increase the area it intended to allocate from 400ha a year to 700ha a year for the next five years, subject to annual review.

Bayleys rural agent Snow Williams said the increased kiwifruit allocation provided pastoral farmers in areas like eastern Bay of Plenty the opportunity to lift their land values considerably by converting to kiwifruit.

“The ability to set up and start earning off orchards is really only three years. Our greatest issue at present is a shortage of listings to meet the demand.”

Rural Insight

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LAND USE OPTIONS IN SOUTH ISLAND OPEN UP

Farmer and investor interest in land on both Canterbury Plains and hill country is shifting beyond traditional pastoral uses as new water schemes start to be commissioned, and farmers look to diversify on their traditional pastoral income sources.

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eantime in Southland that region’s expansive pastoral potential is providing more options to northern farmers seeking succession pathways, and new land use opportunities for existing farmers.

Bayleys Canterbury rural agent Ben Turner said he has noticed a lift in interest among potential buyers considering alternative land uses for properties within the Central Plains Water scheme’s 20,000ha catchment.

There has been a noticed lift in interest among potential buyers considering alternative land uses for properties within the Central Plains Water scheme’s 20,000ha catchment.

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This area is in addition to the 24,000ha already covered under Stage 1 of the scheme. Stage 2 was commissioned earlier this year, and includes 180km of piping being laid underground.

“We are seeing more farmers out there who while not being 100% certain what they will use this water for, know they have a number of appealing options including small seed production, market gardening vegetable crops, and arable. It’s also quite likely there are a number of enterprises we have not even seen before that could be up for consideration.”

Increased pressure on market garden land further north has seen a lift in enquiry in Canterbury in better soil areas.

He recently negotiated the sale of an 80ha dairy run-off near Darfield on quality silt soil that sold for about $40,000 a hectare for market garden use.

“That buyer saw the ability of that land for growing given its proximity to Christchurch and the fact it is now covered by the Central Plains Scheme.”

dairy support are now looking appealing for a re-entry to the deer sector with their facilities in place.

Lorna Humm said other challenges include getting staff who are capable of handling deer, a species “quite different” from traditional sheep and cattle to manage. “And if you were a fencer, there is a real need there for skilled deer fencers through the region.”

With deer returns topping $9/kg, farmers were starting to give the traditional “third” species after cattle and sheep a serious look.

She said the relatively light environmental foot print of deer on hill country also means farmers are interested in the stock class as regional council environmental demands tighten.

In Southland Bayleys agent Hayden McCallum said high land prices in the North Island are creating interest among farmers there about what their dollar can buy in Southland.

“For some they may get twice the land they have had up north for the same money, and it gives them options for farm succession pathways for the next generation of the farming family.”

And the land use options in Southland now include more than the traditional pastoral options, for those located in the right areas.

Land use options in Southland now include more than the traditional pastoral options, for those located in the right areas.

Turner said the environmental standard required by the schemes to gain consent was also accompanied by a corresponding reduction in the demands placed on Canterbury’s valuable underground aquifers.

Stage 1 alone reduced aquifer draw down by 75%, and stage 2 is expected to achieve similar results.

Potatoes NZ director and Canterbury grower David Redmond said demand for cropping land for potatoes is also proving reliable and consistent as growers seek new land to rotate potatoes through.

“This works well for many farmers too who may also be looking for a break crop between cereals or their usual crops. It is a good return to a land owner who does not have to pay for the crop or harvest it, and gets a guaranteed income for the year’s use.”

Meantime further back in the hill country properties that may be suitable for deer farming are getting plenty of lowland farmer interest.

This includes leasing land to tulip growers. The Dutch flower has been part of the Southland economy for many years, growing well on the deep silt loams of Edendale district, with sales of suitable land making $40,000 to $50,000 a hectare in the past 12 months.

“Often the next alternative land use can be for vegetable growing which is usually in a similar part of the region.”

The region has also seen investment into sheep milking in recent years, and while there has been interest in how the venture unfolds, investors and farmers remain watchful until they have a clearer idea of how the market for the land use’s product develops.

“Overall Southland holds its appeal as farmers face more challenging climatic issues, as a region with reliable rainfall and therefore free water, and well priced land that offers good scale for those seeking it.”

DeerNZ project manager and deer farmer Lorna Humm said anecdotally deer units were being snapped up, with farmers buying back country sheep and beef blocks installing deer fencing and trying to get them stocked.

“This is brilliant for the industry which needs more new farmers on board and more area committed to deer. But the challenge is often the shortage of stock.”

The industry now has half the breeding hinds it had 10 years ago and the present 300,000 were unlikely to lift to over 400,000 for at least another year.

Properties that may have once had deer on them, then shifted to Rural Insight

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Vineyard LEASING AN APPEALING LIFESTYLE OPTION

New Zealand wines continue to be positioned in the “super premium” section of supermarket and liquor shelves overseas, and demand continues to grow year on year as the world clamors for a taste of this country’s remarkable Sauvignon Blanc, Pinot Noir and emerging varieties.

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ut the huge growth in global taste for Sauvignon Blanc in particular has put pressure on existing vineyard areas, and leaves wine companies hunting down new areas for grape supply that still fall within the revered “Marlborough” regional distinction.

Options for buying more land are becoming increasingly capital hungry as vineyard prices start to top $300,000 a hectare in the most desirable districts.

Bayleys rural agent John Hoare says the industry is coming up with some innovative and mutually beneficial solutions to sourcing and securing grape supply under tight competition.

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Rural Insight

The industry is coming up with some innovative and mutually beneficial solutions to sourcing and securing grape supply under tight competition.

“We are seeing more smaller, and some not so small, vineyard owners in the region opting to contract their vineyards out to large wine companies on a fixed term, fixed lease payment basis,” he says.

Clive Jones, Nautilus Estate winemaker and New Zealand Winegrowers board member said there remains a strong demand for grower supplied grapes in the region, given the high capital cost to wine companies to invest in new vineyard estates.

The region has a high proportion of 8-10ha blocks which 20-30 years ago would have been classed as economic vineyard units.

“And often having a variety of growers provides the variety of grapes you may require for that particular wine.”

John says today these could be categorised as lifestyle blocks, often located in some of the region’s most desirable grape growing districts.

While leasing was not something his company was currently engaged in he had noticed it becoming more common in the region.

“The lease arrangement becomes a real win-win for both the land owner and the wine company.”

One grower who is in his third season leasing out two vineyard blocks has welcomed the arrangement as a way to help him step out of day to day vineyard management, whilst continuing to enjoy a Marlborough lifestyle and comfortable home among the vines.

“It was a case that I had spent 15 years running the blocks quite happily, but of course we are not getting any younger so this proved to be a good arrangement rather than selling out and still having to find somewhere to live.”

Supplying an established family wine label means he has retained close contact with the wine company, whilst enjoying a payment on the 20th of every month from the company.

John Hoare says a typical arrangement will be a “5 and 5” agreement, with a five year lease and five years right of renewal at the end of it.

Payment will generally equate to about 7% of the land value, and can be calculated a number of ways. Some growers will base payments against the Consumer Price Index, and others against the value paid per tonne for the particular grape variety.

“From an owners point of view it means they do not have to worry about the management of the vineyard, it is a passive income, meaning you may not make quite as much as if you were running it yourself, but for some that is a preferred option.”

With an aging vineyard owner population and the thirst for high quality New Zealand wines growing beyond the traditional markets of United Kingdom, USA and Australia, prospects for smaller vineyard owners to secure a supply outlet remain positive.

With an aging vine yard owner population and the thirst for high quality New Zealand wines growing prospects for smaller vineyard owners to secure a supply outlet remain positive.

“All maintenance, upkeep, spraying and pruning is done and often the rates bill will also be charged directly to the wine company.”

“For people who may have dreamt of setting up a vineyard and having their own label, the romantic notion may have proven a tough one to fulfil. But leasing to a company already processing and marketing can provide far greater peace of mind and a very reasonable return,” says John Hoare.

Typical payments coming through the region in the past season have ranged from $12,000 to $14,000 a hectare depending upon location, grape variety and vine quality.

Bayleys national country manager Duncan Ross said with an aging vineyard owner population growers were seeking alternatives to a complete sell down of their home and vineyard asset.

“And at a 7% rate of return, there is more value for these owners to keep their capital in the land rather than sell up and see it only earning 3% in the bank.”

“The new leasing options will enable people to stay on for a lot longer now that the stress of managing the properties can be eliminated, and they still retain a reasonable income.”

In the past year Sauvignon Blanc grapes have averaged $1,600$1,700 a tonne, and Pinot Noir about $3,000 a tonne.

Rural Insight

23

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140 FARM, HORTICULTURE AND LIFESTYLE PROPERTIES FOR SALE ISSUE 2 – 2017