Passionate, professional and committed Vol 17 No 20, May 21, 2018
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Is Fonterra delivering? Vol 17 No 20, May 21, 2018
Budget gets tick Richard Rennie email@example.com
HILE not catching a windfall the primary sector has harvested some gains in the Coalition Government’s first Budget with science, research and forestry the biggest winners. But the $85 million committed to frontline Mycoplasma bovis response might prove to be only a deposit for a disease likely to require a truckload more to deal with it, Federated Farmers vicepresident Andrew Hoggard said. “We still have a lot of changes that are obviously needed to Nait and systems around it so I imagine there will be even more money required yet.” Significant sums are likely to be required for farmer compensation. And the additional $9.3m allocated to biosecurity will barely register. National’s agriculture spokesman Nathan Guy described the amount as paltry and half what National invested last year. The Primary Industries Ministry also got $38m more to aid a department Agriculture Minister Damien O’Connor described as under increasing workload and under-funded. But Hoggard welcomed the $5 million over four years for Overseer software investment. Developed as a tool for nutrient budgeting it has evolved as a
regulatory gauge for determining farm nutrient losses. “It will, however, depend what that money is being spent on. I can only hope they are consulting with farmers on making the system more user-friendly. At present you almost need a degree to use it yet it has a big impact on how we are going to farm in years to come.” The Overseer investment was also welcomed by the Fertiliser Association chief executive Dr Vera Power. “It is important Overseer has the ability to evolve. There is a huge amount of work already under way to make it an easier tool to use. But more needs to be done to make sure it is reflecting farm systems.” Overseer has faced criticism for its inability to always account for new mitigation methods on farms, including the use of nitrogenabsorbing plantain grasses. That investment could dovetail well with the extra $15m over four years allocated to the Sustainable Farming Fund. The fund has been severely oversubscribed in recent years with last year’s round allocating funds to only 28 of the 86 projects applied for. Ballance science and strategy manager Warwick Catto also welcomed the $15m injection. “That fund has pretty much been flatlining for the past few years so this will be positive. “The cost of cleaning up catchments like Taupo and Rotorua is proving very expensive at hundreds of dollars per kg of nitrogen. The SFF is a far better
The spending • $15m Sustainable Farming Fund over four years • $5m Overseer over four years • $9.3m Biosecurity over four years • $85m M bovis frontline response • $38m MPI funding over two years • $245m Forestry over 10 years • $1 billion – R&D tax incentives over four years • $100m Green Investment Fund
GET IN THERE: With $1 billion available in tax incentives for research and development the big challenge for the primary sector is to keep feeding the innovation pipeline, ANZ rural economist Con Williams says.
way to go to help drive behaviour change based on research rather than bear the expense of trying to clean catchments up afterwards.” Forestry has been promised $245m over 10 years under the Billion Trees programme as part of the Provincial Growth Fund. It includes $13.5m for native tree plantings over the next two years. Forest Owners Association chief executive David Rhodes said the
funding appeared to have a mix between indigenous and exotic plantings. However, he cautioned the ability of native podocarps to fix carbon is only about a third that of mature pine trees and carbon sequestration needs pines to do the heavy lifting. ANZ rural economist Con Williams said the budget did not contain any significant surprises but the research and development tax incentives
should be welcomed by the sector. “The big challenge for the sector is to continue to feed that R&D innovation pipeline. There is also the Green Investment Fund and from a primary sector perspective we may see more investment around mitigation of greenhouse gases. If we can get a few more tools in the toolbox, it would be good.” But the full cost of Mycoplasma bovis remains the elephant in the room.
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WEATHER OVERVIEW A much windier pattern is with us for this week and it brings significant weather to both islands with the South Island most exposed to extreme conditions. Winds this week will mainly surge from the westerly quarter producing a mix of mild nor’westers and colder sou’westers. Generally speaking the east of both islands will be warmer than average most days but colder than average conditions might remain around Southland, Otago and the West Coast. Heaviest rain will be on the West Coast and will fade as it moves up the North Island’s western half. There is a chance of a polar southerly this coming Friday/ Saturday (one to watch, not yet locked in). The final week of May looks more settled.
5 Video bull sale set to expand The top-priced Angus bull at the first national online video auction looked bulletproof on paper and as just as impressive in the flesh, PGG Wrightson genetics specialist Cam Heggie said. Butter prices likely to keep going up ����������������������������� 4 Experts to analyse Fonterra from all angles ���������������� 20 Don’t invite everyone to party ������������������������������������� 22
Rain Wetter than average in Southland, the West Coast and Taranaki with surrounding regions like Central/ western Otago, Nelson, Whanganui and Waitomo all potentially wetter than usual too. Eastern areas in both islands remain drier than average across this week.
Temperatures are bouncing all over the place across this week. Warmer than average at times for many in the east (mainly north of Christchurch) but colder than usual for the southern half of the South Island. Might be colder everywhere by Saturday.
Westerly quarter winds will surge up and down New Zealand with gales at times. Winds will be strongest through the Southern Alps and Cook Strait/Central areas. Generally westerly quarter winds surging from nor’west to sou’west and back again, over and over.
Pasture Growth Index Above normal Near normal Below normal
NZX PASTURE GROWTH INDEX – Next 15 days
Rain, heavy at times on the West Coast. Snow, heavy at times in the Southern Alps might lower to just 300m a few times. Gales at times next seven days. Chance of a nationwide Antarctic southerly by this Friday or next weekend.
For further information on the NZX PGI visit www.agrihq.co.nz/pgi
The pattern over the coming week is dominated by strong westerlies and this will surge to warmer nor’west with rain helping bump up pasture growth but then colder sou’west changes which, further south in the South Island, might bring snow to lower levels and certainly a bigger drop in temperatures. WeatherWatch. co.nz still expects better than usual pasture growth in many areas but some in the east (where it’s becoming drier) and in the south (colder) might notice a slow down now/soon.
SOIL MOISTURE INDEX
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48 Lamb yard prices soar
Confidence is pushing South Island lamb prices to levels well above the five-year average for this time of year while seasonal competition in the North Island has bumped prices higher than expected.
This product is powered by NIWA Data
For more weather information go to farmersweekly.co.nz/weather
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FARMERS WEEKLY – farmersweekly.co.nz – May 21, 2018
Disease reaches ‘crisis point’ Annette Scott firstname.lastname@example.org MYCOPLASMA bovis has reached crisis point and it’s time the Ministry for Primary Industries handed it back to farmers and supported them to manage it, Mid Canterbury dairy farmer Frank Peters says. The Peters family last week had 450 of their 1400-cow herd trucked to slaughter after just one cow tested positive for the cattle disease, now running rampant across the country. Peters believes a lack of knowledge about M bovis is the biggest threat the disease poses to the dairy industry.
Bill passes its first reading A BILL designed to protect financially stressed farmers has passed its first reading in Parliament. In the name of NZ First MP Mark Patterson, the Farm Debt Mediation Bill will require independent debt mediation before a receivership can start. Patterson made reference to the financial threat faced by farmers with herds infected with Mycoplasma bovis as a motivating factor. “This Government has dedicated $100m but we are yet to fully comprehend the full scale and impact of the outbreak. “The potential economic loss is massive and when the individual farmer faces the spectre of creditors at their door we have to do the right thing to help alleviate the situation,” Patterson said.
More effort needs to go into educating farmers about the symptoms and science behind the disease because more education would lessen a lot of the fear associated with it. “People don’t need to be scared of it. What we need is it to be studied in a New Zealand herd so we can learn how to keep it out.” With the disease now spread from one end of the country to the other it’s too late to try and eradicate it. “Instead, switch to helping farmers self-manage it. Farmers aren’t being given the recognition they deserve for their ability to manage diseases. “You’ve got to give us some credit. This sort of thing is not new to farmers,” Peters said. Events of recent weeks demonstrate eradication is no longer a short term option, Federated Farmers dairy chairman Chris Lewis said. “It’s crunch time. “It’s so big now, it’s gone so far. New strategies are needed. “We need to contain it, test for it and have a good management plan based on all current testing and all available information so MPI can form co-governance with industry for eradication management on a much longer term. “The question mark is how long that management plan is and do we eradicate whole herds or individual animals?” Lewis said. ASB rural economist Nathan Penny suggested M bovis is now more likely to become a managed disease because it is in other major dairy exporters. Longer term the most significant impact might be the potential to reduce NZ industry productivity via increased animal health costs and lower production of infected animals. Reserve Bank governor Adrian Orr said M bovis will certainly affect prices and the marketing capability of the NZ agricultural
It’s crunch time. “It’s so big now, it’s gone so far. New strategies are needed. Chris Lewis Federated Farmers story but it is too soon to tell whether it’s a financial security risk. Agriculture and Biosecurity Minister Damien O’Connor said a meeting last week with farming leaders focused on helping farmers through the next few weeks. “We all committed to make a decision about the next steps in the M bovis response within the next couple of weeks. We talked about phased eradication and long-term management. “It is a difficult choice that we will make together once we receive more advice from the Technical Advisory Group,” O’Connor said. The ministry gave $307,000 to Rural Support Trust to help farmers and $7.8 million of funding has been committed for farmers struggling with feed issues. O’Connor promised affected farmers an initial compensation payment within two weeks. “MPI has committed that farmers whose animals are culled due to presence of the infection will receive an initial payment for the value of culled stock within two weeks of a completed claim being lodged,” O’Connor said. Over the next few weeks farmers who are not under MPI controls are allowed to move stock but they must adhere to National Animal Identification and Tracing requirements. DairyNZ has committed 10 extra staff to advise farmers on preparing their compensation claims.
KNOWLEDGE GAP: Mycoplasma bovis-infected property owner Frank Peters says farmers are not being given the recognition they deserve and a lack of knowledge is the biggest threat the disease poses to the dairy industry.
Nait fix to start now Annette Scott email@example.com A CRUCIAL fix to the National Animal Identification Tracing system is set to get under way as a matter of urgency. Agriculture and Biosecurity Minister Damien O’Connor said 23 of the 38 recommendations from the Nait review can be implemented promptly and management agency OSPRI will start work to action them immediately. “Nait has let us down in a time of great need as we manage the Mycoplasma bovis outbreak. “This is why it’s crucial we fix the system.” The 23 changes include the Nait number being assigned to a particular location, not a person.
The Nait interface will be improved to make it easier to enter information and a mobile app will be developed for use in the field. The performance of accredited agencies will be better managed, particularly those providing information to Nait on behalf of farmers. “I’ve asked officials to take a tougher approach to Nait compliance and the Ministry for Primary Industries will work with OSPRI to do this. “Farmers need to play their part by ensuring they meet their legal Nait obligations, especially with moving day upon us. “We need a modern and robust animal tracing system to keep our primary sector and economy safe,” O’Connor said.
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FARMERS WEEKLY – farmersweekly.co.nz – May 21, 2018
Farmers Weekly sold to GlobalHQ NEW Zealand’s number one weekly farming newspaper Farmers Weekly has been bought by one of its founders and is to remain in its home town, Feilding. The NZX board has approved the sale of Farmers Weekly to GlobalHQ, a new enterprise owned by Feilding agri-publishing identities Dean and Cushla Williamson. NZX has owned the Farmers Weekly since 2009. The Williamsons and their former business partners, Leggett family, established Farmers Weekly in 2003, following the closure of the only weekly farming title at the time, NZFarmer. Today the Farmers Weekly newspaper, supported by a new website and twice-weekly email newsletters, is recognised as the leading source of primary sector news, market insights, commentary and opinion. Williamson said with the fragmentation of NZ’s media landscape, Farmers Weekly’s formula is even more relevant and important to farmers and provincial NZ than it was when he set it up 15 years ago. ”The NZX team has grown
the brand, adding more market information and developing the online offering including electronic newsletters and video.” He said he and Cushla are looking forward to working with the Farmers Weekly team to extend that enterprise culture even further. “This a really exciting time to be re-entering the publishing business. “We are planning to invest in and grow Farmers Weekly to ensure it delivers what the sector needs across a range of channels.” GlobalHQ plans to continue a close working relationship with NZX, receiving market reporting and insights from the AgriHQ team. Most importantly, the announcement provided security for Farmers Weekly staff of 15 based in Feilding. “The staff are doing a brilliant job. We’re looking forward to working with them all and we’re proud to be keep Farmers Weekly in its Feilding home town,” he said. The Williamsons have deep roots in NZ agriculture.
RETURNING: Cushla and Dean Williamson will be back at Farmers Weekly on July 1.
Their family has farmed in Manawatu for generations and they live on and run a 120ha sheep and forestry block 10km north of Feilding. Cushla, a trained school teacher and qualified journalist
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BIGGER butter and anhydrous milk fat prices plus a boost from the New Zealand dollar exchange rate have finished the 2017-18 dairy season on a high note. The latest Global Dairy Trade auction’s 1.9% index increase overall contained a 5.8% lift for AMF and 2.4% for butter. Other increases included 4.4% for cheddar, 3% for skim milk powder and 0.2% for whole milk powder. On the down side were lactose minus 3.5% and rennet casein minus 6.1%. ASB rural economist Nathan Penny said the combination of good GDT prices and the weaker NZD had pushed dairy prices in NZD terms to their highest level this year. Penny will revise his forecast farmgate milk prices for this and next seasons when Fonterra makes its first 2018-19 prediction next week. “There is clear potential for our forecasts to move higher. “While the sharp move in the NZD could partially reverse we are more confident that butter prices will rise further and potentially take other key dairy prices like whole milk powder with it.”
Westpac senior economist Anne Boniface said the $6.55/ kg milk price is now expected to remain firm until the final wash-up. Her own prediction for the new season is $6.40, the third consecutive season of $6-plus payouts, emphasising the stability of dairy prices. For the past 18 months the GDT price index has moved within a band from 935 to 1096 or a deviation around the 1000 level of plus 9.5% to minus 6.5%. For the last GDT of this season the index at 1065 was only 2.2% lower than May 16, 2017. Boniface expects this remarkable stability in prices to continue, enhanced by a lower NZD as the new season rolls on. The AgriHQ milk price forecast for 2017-18 was unchanged at $6.32, a figure analyst Amy Castleton thought probably underestimated the non-GDT prices obtained by Fonterra and hence Fonterra’s $6.55 prediction. Her forecast for next season is $6.58 and the spot price (if the whole season’s production was sold at today’s prices and exchange rate) jumped 39c to $7.28.
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FARMERS WEEKLY – farmersweekly.co.nz – May 21, 2018
Video bull sale is set to expand Alan Williams firstname.lastname@example.org THE top-priced Angus bull at the first national online video auction looked bulletproof on paper and as just as impressive in the flesh, PGG Wrightson genetics specialist Cam Heggie said. Produced by Te Mania Livestock from Parnassus in Canterbury, the two-year-old Te Mania Matrix fetched $35,000, well ahead of the next most expensive animal. “He is a very classy, stylish bull. There had been a fair bit of talk about him,” Heggie said. Te Mania principal Tim Wilding was a happy vendor. “It was a great price and a thrill to top the sale. “He’s going to a good home, keen on carcase data like we are. We all want to breed a better animal.”
The bull was bought jointly by Kauri Downs Stud from Waikato and Stokmans Angus from Rotorua. They will share his breeding services. Wilding said having the top sale bull was a triumph for his son Will because it was his first mating programme after returning home as stock manager. The bull was bred using semen from an Australian sire over one of the stud’s own Angus heifers. “We will have three or four similar bulls in our own main onfarm sale in June, all by the same sire and from our breed. “My father would have been proud as he started breeding from heifers 50 years ago and we’ve made good genetic progress since then.” The Angus, Hereford, and Shorthorn breeding societies took part in this first national online
BULLY FOR BEEF: Te Mania Matrix made the top price of $35,000 at the National Bull Sale.
video sale. Buyers had earlier been able to inspect the animals in the flesh before gathering at the Palmerston North Convention Centre. They were shown video of the sale offerings walking, filmed about three weeks earlier, and were then shown a still photo before bidding began. There were some minor glitches, such as delays in the video displays but overall the sale was a success, Heggie said. He believes enough was achieved to bring vendors and
SARDINES: It was standing room only, and not much of that left, at the National Bull Sale’s first video auction. Photo: Aaron Davies
buyers back to the format next year with a possibility some other breeding societies, notably Charolais, Simmental and South Devon, which sat this one out in a wait-and-see approach, might come in as well. “I didn’t talk to many people there who were uncomfortable with how it went but the breed societies will get together for a debrief and we will as well.” Heggie reported 24 Angus bulls sold at an average of $11,854. After the Te Mania winner, second top price was $27,500 paid by the Carruthers’ Netherton Angus for a bull from Ranui Holdings. “It also had very good data and in the flesh and was so quiet that they could have walked him into the sale,” Heggie said. Third top price was $18,000 for Storth Oaks, bought by Motere Station. About 20 Hereford bulls sold at the video sale, at an average $8607 each. Top price was $22,000 for bull offered by G J and D A Chamberlain of Cheviot and bought by P and L Barnett. “It was a lovely bull, good coloured and well-marked and a good carcase.” Second-top price was $17,000 from R J and M A Burrows Trust and bought by Koanui Stud. “They were the two best Hereford bulls in the sale and deserved the top money.” A small offering of Shorthorns, with just five sold, averaged $7400
Photo: Mike Williams
with a top price of $11,000. Wilding is keen on the national sale for the profile and support it gives the Angus breed but admitted to being apprehensive about the new video format, saying it was not his preferred way.
He is a very classy, stylish bull. There had been a fair bit of talk about him. Cam Heggie PGG Wrightson “We like to run our bulls one at a time in front of buyers as that gives them a last-minute look.” He’d like the bulls to be a bit closer to the sale venue so buyers can go for a last look rather than being well away as was the case in the Manawatu venue. One of the most encouraging features of the sale for him was that the underbidder on the $35,000 bull is a commercial farmer. “The national sale hasn’t got a huge commercial following but this shows that the commercial breeder is also putting a lot of effort into genetics.” Commercial farmers are the bread-and-butter buyers at Te Mania’s onfarm sale. “We get a lot of repeat buyers,” he said.
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FARMERS WEEKLY – farmersweekly.co.nz – May 21, 2018
Vodafone takes Farmside WE’RE IN: Sheep and beef farmers are determined to be part of the solution for environment issues, B+LNZ chairman Andrew Morrison says.
VODAFONE New Zealand has bought the remaining 30% stake in BayCity Communications, trading as Farmside, for $3 million from TeamTalk. In June Vodafone bought 70% of Farmside for $10m with a right to buy the other 30% for $3m within three years. Vodafone has no plans to make major changes with staff and operations to still be based in Timaru. All the services Farmside offers to rural customers will continue. The ownership change is effective from midnight on May 31.
StockX appoints two
Meat sector sets out green plan A NEW blueprint to lift the environmental performance of sheep and beef farmers has been unveiled by Beef + Lamb New Zealand. Its Environment Strategy lays out a progressive, long-term vision for the sector based around four priority areas – healthy productive soils, thriving biodiversity, reducing carbon emissions and cleaner water. B+LNZ identifies two key goals – every sheep and beef farm having a tailored and active environment plan by the end of 2021 and the sheep and beef sector as a whole moving towards carbon neutrality by 2050. Over the next three years B+LNZ will roll out environmental initiatives to support sheep and beef farmers including establishing a Collaborative Catchment Communities programme to help communities work together to target water quality, greenhouse gas emissions, biodiversity and soil health issues. It will also invest in developing a new generation farm plan that encapsulate the four priorities, develop new tools and technology, provide support and advice and do research. “As a sector we have an opportunity for our sheep and beef farmers to be world-leading stewards of the natural environment and sustainable communities,” chief executive Sam McIvor said. “Sheep and beef farmers have made meaningful improvements to their
environmental performance and lowering emissions and they deserve credit for these gains. “However, farmers know there is more to be done – not just extending the good work already under way but also taking new and different approaches. “This includes adopting new management techniques that better connect actions to the environmental outcomes and more onfarm monitoring and measuring that gives farmers confidence their actions are reaping benefits and allow the wider community to better understand the contributions farmers are making. “This strategy has been developed in partnership with sheep and beef farmers. “This blueprint is about supporting sheep and beef farmers to manage their properties to improve freshwater, helping them to continue to reduce emissions and provide habitats that support biodiversity and protect our native species. “We will also be working hard to ensure land use is closely matched to soil potential and capability. “That will mean soil health, carbon content and productivity will improve while minimising soil erosion and loss to waterways. “We will equip our farmers with the knowledge and tools to best manage their resources and make changes as required.” B+LNZ will also use money from the Ministry for the Environment’s Freshwater Improvement Fund to work with farmers
in four priority catchments to scale up individual actions. B+LNZ chairman Andrew Morrison said the sheep and beef sector has made major productivity and eco-efficiency gains since the 1990s and is now producing more from less. “We’ve reduced sheep numbers from 57.9 million to 27.6m and beef cattle numbers have declined 23%. “Absolute greenhouse gas emissions from sheep and beef farms are 30% below 1990 levels while the sector’s contribution to GDP has doubled to $5 billion. “GHG emissions per kilogram of saleable product have dropped by 40% and nitrate leaching per kilogram of saleable product has declined by 21%. “New Zealanders are concerned about the declining natural environment and there is no question our climate is changing. “It’s a concern shared by farmers. “Consumers are expecting more and disruptive technologies are challenging our existing systems and processes. “But every challenge brings an opportunity and this Environment Strategy aims to turn today’s challenges into tomorrow’s opportunities. “Agriculture is inextricably linked to the natural environment, which means how we farm today will directly affect what’s left for tomorrow. “Our sheep and beef farmers fully understand this and are determined to be part of the solution.
ONLINE livestock marketplace, StockX, has appointmented two new directors. They are New Zealand Business Hall of Fame member and promient agribusinesswoman Mavis Mullins and former trans-Tasman manufacturing business Candida Stationery chief executive Frank Janssen. “The attraction of such significant talent to the StockX governance team is in line with our growth plan of incorporating the right people at the right time as we continue with our marketplace development. We look forward to the depth of knowledge and skills they will bring to our board” StockX managing director Jason Roebuck said.
A2 Milk sales up 65% A2 MILK Co is expecting annual revenues about 65% higher than last year. The milk and nutritional powders distributor expects sales of between $900 million and $920m for the year ended June 30 compared with revenue last year of $549m. A2 told the NZX third quarter sales, covering January, February and March, were $660m, a 70% lift on the same time last year. The latest figures include the impact of seasonal sales from key Chinese selling events, chief executive Geoff Babidge said. Trading margins for the second half of the year are expected to be broadly similar to first half trading, where the Ebitda margin to sales was about 33%. The marketing spend for the year will be well up on last year as the firm develops distribution channels in the United States and China. Those costs will be offset by throughput efficiencies and currency movements, Babidge said.
FARMERS WEEKLY – farmersweekly.co.nz – May 21, 2018
Free-trade talks decision coming Nigel Stirling email@example.com NEW Zealand’s long courtship of the European Union for a free-trade deal faces a moment of truth this week as the bloc’s trade ministers decide whether to approve the start of negotiations. The EU first agreed to consider beginning talks four years ago but it has been a long and tortuous process to get much further and negotiators remained in the starter’s block. Progress has not been helped by a popular backlash in the EU against free trade and globalisation more generally. A massive deal with Canada was almost tipped up in 2016 when legislators from the Belgian province of Wallonia threatened to withhold support. In May last year the European Court of Justice put the EU’s trade agenda back on track when it ruled agreements can be ratified without having to go back to national and regional parliaments in the bloc’s 28 member states for all but a narrow range of issues. Instead, agreements will be signed off by the European Council, representing member state governments and the European Parliament. On Wednesday NZ and Australia will become the first countries to be considered for new negotiations since the ECJ’s landmark ruling. The antipodean pairing are two of only six World Trade Organisation members not to have or be in negotiations for preferential trade agreements with the EU. Trade sources last week were confident EU ministers will give negotiators the green light to finally begin formal talks with NZ. Prime Minister Jacinda Ardern’s visit to European capitals last month is understood to have shored up support for at least beginning negotiations.
READY: New Zealand negotiators are digging in for tough talks with Europe over a free-trade deal.
While no trade negotiations are easy the NZ side is digging in for a tough fight once talks begin. A draft of the EU’s negotiating objectives from September last year said the talks should aim to dismantle tariffs on goods trade having equal effect on both sides and as a general rule take not more than seven years. But for sensitive agricultural goods longer transitional periods or other arrangements should be considered. It seems likely EU negotiators will seek to classify beef as sensitive and deserving of special protection. Breaking open access to European beef markets has been a top priority in recent years for the United States, Canada and South American trading bloc Mercosur but has run into
fierce opposition from Irish and French farmers in particular who claim caving in to such demands will undermine local food standards and devastate farming communities.
New Zealand will be seeking to improve on access to what is a lucrative but extremely protected market.
NZ will be seeking to improve on access to what is a lucrative but extremely protected market. While returns at $14.21/kg in the year to September 2015 were nearly double the average return
of $7.39/kg for all other beef markets, exporters were limited in their ability to take advantage of higher returns by annual quota of just 1300 tonnes, which also incurred a 20% tariff. In its most recent trade deals Brussels has pushed hard for protections for food names with links to European places such as Parma ham or Feta cheese. One insider said while NZ will be reluctant to trade away the rights of its own food producers to use the names they did give its negotiators some leverage. “They have a range of offensive interests that they want to progress and if they want those things satisfied they will have to satisfy us as well.” Further headwinds could also come in the form of complications arising from Brexit talks.
The EU and Britain are at loggerheads negotiating the terms on which they will trade with each other after the latter’s scheduled departure from the single market at the end of 2020. If no agreement can be reached both sides will face the same high tariffs as other countries without preferential trade agreements with the EU and UK face in selling there now. EU farm exports previously bound for the UK will be trapped in its domestic market. Farmers Weekly’s insider describes this as the “disaster scenario” resulting in a backlash against countries seeking new access to the EU market. “We would still have our EU rights of course for current access but new access would be really hard to negotiate.”
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10 FARMERS WEEKLY – farmersweekly.co.nz – May 21, 2018
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CARRY ON: Primary Sector Council chairman Lain Jager suggests the deer industry will carry on as now for the next 20 years rather than spending the big money needed to become the next kiwifruit.
VENISON could become the next kiwifruit but getting there will be a tough mountain to climb, Primary Sector Council chairman Lain Jager says. Speaking at the Deer Industry conference in Timaru Jager, the former Zespri chief executive, compared the deer industry model to the highly successful kiwifruit industry, looking at whether
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venison could become the next kiwifruit. The two have a lot in common but venison lags on several counts. “Being small is your opportunity but it is your challenge,” Jager told more than 200 farmers and industry representatives. Both are niche products with virtually no domestic market and some pretty tough competition when it comes to international brandfixing, marketing and innovation. New Zealand is on the edge – distance to market, land costs, labour costs, exchange rate, scale constraints, capital constraints, population density and infrastructure are all limiting factors. “There is reason to believe that what you have is sustainable but there is choice for a more prosperous future. “Being different isn’t good enough – it’s being sustainably different,” Jager said. “You are served well by DINZ and the Passion 2 Profit programme is a good, strong starting point but you are not spending enough and don’t have enough value in place to capture required investment.” The basis of competition is in the value-added space where factors that make a product different are valued by consumers and that is difficult to do. “Value-added is hard, otherwise everybody would be doing it.” While the deer industry has reasonable profitability venison is not well known and its productivity is not a strength relative to competitors such as sheep or beef. “While this creates opportunity to differentiate – meat is tough to differentiate, especially in a tiny category and as a result you have inadequate investment in innovation and market development. “Investment and activity must align with scale and the challenge there is if you make the investment can you capture the value? “If you believe in your product and what makes it the best – with a collective determination – maybe.” To grow the deer industry needs increased investment in innovation, consumer insights, product formats and packaging, genetics, productivity and quality. The investment mechanism must mitigate against freeriders and be able to be leveraged with scale. “You will need to build some barriers to entry by aligning innovation and marketing investment with ownership of genetics, product formats, brands and channels. “That is a big mountain to climb – tough, but possible.” Deer farmers have a choice – to continue on the current road, which should continue to deliver an economic equilibrium with sheep and beef or to take decisive action to grow volume and value. “To climb this mountain you need collective determination, a really good competitive product and an industry structure than enables investment and captures the value of that investment. “You will need to innovate faster than the competition in the areas of productivity, quality, consumer understanding and product development and to invest heavily in sales, marketing and market development.” Jager suggested the deer industry’s most likely future would be continuing on the same path for the next 20 years. “But that is not all bad, your current industry is not a bad one.”
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FARMERS WEEKLY – farmersweekly.co.nz – May 21, 2018
Deer farmers won’t need a prod Annette Scott firstname.lastname@example.org THE launch of a deer industry Environmental Management Code of Practice leads the way for pastoral farming in New Zealand. Deer Industry NZ launched the code at its annual conference in Timaru, making it the first for a NZ pastoral industry. DINZ chairman Ian Walker said the document brings together and updates all the good advice that’s gone before and now provides farmers with a clear path for putting it into practice in a way that will satisfy regulators. A lot has changed since the industry’s environment awards were launched 20 years ago. “And it would be fair to say that with the change of government last year that policy direction isn’t going to change any time soon with regional councils now working to put the amended National Policy Statement for Freshwater Management into effect. “Many of you will be all too familiar with that process in your own patch as you come to grips with new rules being put in place by the councils. “It’s no longer good enough to just go out and change a few
GET IT DONE: Deer Industry New Zealand chairman Ian Walker says it’s realistic to have all deer farmers operating with a farm environment plan by 2020.
things on your place in the hope that you’ll be complying with any new restrictions on things like nutrient or sediment loss. “It takes good planning, good advice and good documentation. “You need to show you’re doing the right thing.” Deer love playing in water and creating muddy wallows so
farmers have had to be creative to improve their farm environment. Many novel and practical ways to do that are detailed in the code. It is intended to keep the deer industry at the forefront of efforts to improve water quality. “While we strongly encourage farmers to adopt it, we won’t have to do much prodding.
“Most farmers are already highly motivated to have a great environment on their farms,” he said. Walker said the NZ Deer Farmers’ Association published a landcare manual in 2004. It was updated in 2012 and the code builds on it. “While many farmers have fenced off their waterways and retired erosion-prone areas, regional councils, customers, visitors and our fellow New Zealanders want proof that we take our environmental obligations seriously. “That means having farm environment plans that show we are doing our best to protect soil and water and ensuring streams, rivers and lakes stay clean. “That’s where the new code comes in. It provides deer farmers with practical answers to the environmental challenges they face. “It’s practical, up-to-date and most importantly for farmers who don’t like too much reading, it’s very concise.” DINZ believes it is realistic to have all deer farmers operating with a farm environment plan by 2020. Outgoing association chairman David Morgan described the
It’s no longer good enough to just go out and change a few things. Ian Walker DINZ code as a fantastic resource that’s practical and easy to follow. “Good environmental management goes hand in hand with good animal husbandry. “Deer that are healthy, well-fed, not stressed and given the room to act like deer are a lot easier on the environment than a poorly managed herd,” he said. “I’ve noticed on farms that are actively making changes to improve the environment that they don’t have to wait long before they start seeing results.” Morgan said it is hard to put a price on the pride deer farmers feel when they see a healthier stream or more bird life appearing on their property.
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12 FARMERS WEEKLY – farmersweekly.co.nz – May 21, 2018
Farmers crowdfund water upgrades Tim Fulton email@example.com FARMERS on spring-fed creeks and riversides in central Canterbury are part of a national crowdfunding drive for riparian planting The Million Metres project wants to raise $56,000 by the end of July so Selwyn dairy farmers Nathan and Jamie Fridd can plant 875 metres of natives. The Fridds are in a group of 30 landowners raising money online for native planting. Million Metres project leader Georgina Hart, whose group is managing the fundraising, said about half of its projects are on private land but that will soon increase with 15km of planting planned for the margins of Northern Wairoa River in Northland. Despite Selwyn being a focus of national dirty dairying attention, this is the first time Million Metres has crowdfunded riparian planting in the area. The Fridds’ farm borders Silverstream, the confluence of three lowland waterways feeding into the Selwyn River near Springston, south of Christchurch. The couple want to revitalise the area for swimming and fishing by planting 2040 native trees and
HELP WANTED: Nathan and Jamie Fridd are crowdfunding to help clean up the Selwyn River.
other plants. At least eight farms in the spring-fed country around the Fridds’ farm are doing their own fencing and riparian projects. The couple especially want to see reduced bacteria flowing into nearby Coes Ford, a popular swimming spot blighted by high bacterial readings and low flows in recent years. The Water and Wildlife Habitat charitable trust and Environment Canterbury will help the Fridds turn a waterway that was previously managed like a drain into a thriving, living stream. The plan is to reshape banks
into a more natural shape and use boulders, wood and gravel to recreate pools and riffles. Water and Wildlife expects to see more native fish and more spawning trout at the site. It expects plants growing by the water will be shaded by the grasses and tall forest. The shade will cool the water and stop problem water weeds, removing the need for diggers in the stream. Million Metres, backed by Sustainable Business Network firms, government agencies and organisations, estimates the Fridds’ planting will cost $64 a
metre, including planning and labour. The $56,000 fundraising goal includes the costs of preparing the site for planting, the plants and planting and maintenance to ensure the plants thrive. Fifteen percent of the money raised goes to Million Metres to help cover website administration and fundraising support costs. The site is due to be planted in spring 2018 or autumn 2019 if funding allows. Maintenance will be done over three years to give the best chance of survival Farmers and environmental
groups agree the health of the Selwyn and its catchment has declined over the past 30 years. Million Metres says the river supported a run of brown trout from 25,000 fish in the early 1960s but carries only about 500 today. Climate change, water takes and land intensification have contributed to this, including a loss of habitat in spawning areas such as Silverstream. Canterbury dairy farm owner Tom Mason is one of DairyNZ’s environment leaders, a group helping farmers improve water quality and interact more with councils, environmental groups and schools, among others. The Fridds and neighbouring farmers are doing a great job but they could probably do just as well on a lot less than the Rolls Royce Million Metres budget, he said. The key is to get fencing and the buffer of rank grass in the right place as part of a stock exclusion policy. The Fridds will get a good result but it will take a lot of resources. “You can have 90% of the result with 10% of the effort.” The Canterbury Water report for Silverstream said easy gains include buffering potential entry points, hot wire and long grass, complete fencing of drains and wider buffers in some places.
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FARMERS WEEKLY – farmersweekly.co.nz – May 21, 2018
Scales to be patient on new asset buys Alan Williams firstname.lastname@example.org SCALES Corporation will consider offshore investments to complement existing core New Zealand businesses, managing director Andy Borland says. The NZX-listed holding company should later this year bank $151.4 million from the sale of its Coldstore operations, if and when approval is received from the Overseas Investment Office. Scales is always keen to add to its “fantastic” Mr Apple orchard, packing and export business but that is more likely to be on an incremental basis rather than bigger scale acquisition, Borland said from China. Mr Apple is already by far the biggest part of the group, by capital invested and earnings. It is about a third of the way through the selling season, with all the apples picked and packing continuing. There has been a good crop and the selling season is tracking as expected. Scales also has a food ingredients division, notably the Meateor pet food subsidiary, and it will also be looking at linked investments and new areas. “We’ll be patient. There’s no preferred way to do it but we have a wonderful opportunity to reset the group to provide very good returns to shareholders. We’re pretty excited about a new path for our 120-year-old company. “We don’t need to wait for the OIO but that will be a big moment for us,” Borland said. The Coldstores sale will give Scales a “fairly significant” gain over book value. China has been a key to Scales’ apple export growth and Borland was there presenting at an Alibaba Global Fresh forum with about 20 other international chief executives. Alibaba provides an opportunity for very big growth through e-channels, he said. “The normal retail supermarket sales growth is 6% to 8% but through e-channel is 27% to 30%. That’s what we’re seeing and we want to be at the leading edge of that.” Scales Corp’s 15% owner China Resources supports the group’s initiatives in the Chinese and wider Asian markets. Over the last decade Borland and his board have nursed Scales back from a difficult position and seem committed to preserving a strong balance sheet. That is highlighted by the latest December 31 balance date showing a ratio of interestbearing debt to total assets being just 13.5% with borrowings of $46m to total assets of $342m. Settlement of the Coldstores sale will pay down the debt and put more than $100m cash in the bank. Sharebrokers Craigs IP said in a research note that Scales will have capacity for a merger/ acquisition deal in the $220m range. Borland said that is a mathematical capability but the funds could be deployed in different ways, such as two or three deals of $30m to $40m each. That indicates a continuing careful approach to retaining balance sheet strength. CraigsIP suggested organic growth opportunities in the existing businesses could be financed from existing cashflows. The Coldstores business is being sold to Emergent Cold, a global cold chain company. The OIO process is expected to take several months. The assets being sold do not involve sensitive land, Borland said. The sale is effective on June 1 so Scales will continue to operate it but Emergent Cold will take the earnings from then and pay Scales interest on the purchase price. If the OIO turns down the application, ownership reverts to Scales. Scales had been talking to Emergent Cold “for a while” and was also developing its company
refresh strategy to focus on the best agri-business assets it can add value to. The Coldstores business provided a return on capital of about 11% compared to about 20% for the other group businesses. Scales has set criteria for new investment, serving to its strengths of operating fully vertical agri-business with an export focus and adding value through the Chinese market. To this, Borland adds businesses with capable and passionate management.
GROWTH: Scales Corp’s refresh strategy involves focus on agri-business assets it can add value to, managing director Andy Borland says.
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FARMERS WEEKLY – farmersweekly.co.nz – May 21, 2018
Hemp farmers are ready to plant Annette Scott email@example.com CROPPING farmers could be reaping their share of a lucrative global hemp seed market as early as next season. The Australia and New Zealand Ministerial Forum on Food Regulation approved a recommendation in April 2017 by Food Standards Australia NZ to allow the sale of low tetrahydrocannabinol (THC) hemp seed for food products for human consumption. But there were still some legislation changes required to allow the growing of hemp for food products. Now the Government is amending the Food Regulations and Misuse of Drugs (industrial hemp) Regulations and the grain and seed industry is optimistic farmers could be planting hemp crops this spring. The Ministry for Primary Industries and the Ministry of Health last week opened public consultation on amending regulations to allow the sale and use of the seeds. MPI food safety head Bryan Wilson said an increasing number of overseas regulators are allowing hemp seed to be used in foods,
given it is highly nutritious with omega 3, 6 and 9 fatty acids. Hemp is a plant that contains extremely low levels of THC with the seeds containing only trace amounts, meaning they are safe to eat. Only hemp seed oil can be sold in NZ and initial conversations with food businesses have shown there is wide support to broaden the range of foods that can be made from hemp seeds. “The hemp industry believes that the production of hemp seed foods will stimulate regional economies, create jobs and generate $10-20 million of export revenue within three to five years,” Wilson said. The prospect is exciting news for cropping farmers, Grain and Seed Trade Association general manager Thomas Chin said. “There are exciting opportunities in potential economic contribution to NZ agriculture,” Chin said. “Hemp seed for human consumption is an important new cropping option for farmers that will create new export opportunities and generate new employment.” It gives farmers an alternative high-value broadacre annual or rotation crop option and
CASH CROP: Farmers can earn up to $5500 a hectare for hemp seed crops.
will boost investment in the infrastructure needed for the harvest, processing, storage and distribution of hemp seed. The global market for hemp seeds is worth about $1 billion and its legalisation could eventually generate up to $20m in exports. That could translate into as much as 2000 hectares of crop potentially generating a return to farmers of $4500 to $5500 a hectare in the medium to long term. Chin said the NZ climate and
soils favour industrial hemp seed production and NZ has the added advantage of world-leading agronomic research and cropping expertise in other seed crops such as ryegrass and clover. Many other places including Europe, Canada and the United States already permit hemp seed in a range of foods. “Depending on getting Cabinet approval for the new regulations farmers will hopefully be planting the crop this coming spring in order to bring in the harvest in
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February next year,” Chin said. “Hopefully, this next sowing season opportunity will not be missed as it will put NZ further behind Australia as a competing producer and supplier of hemp seed. “Hemp seed as a crop can play an important part in future crop rotations with returns equal to or greater than existing break crop options.” Public consultation on the regulation changes is open until June 20.
16 FARMERS WEEKLY – farmersweekly.co.nz – May 21, 2018
Workshy threaten big investment Richard Rennie firstname.lastname@example.org
GOOD MONEY: Kiwifruit pickers are well paid but many unemployed are not work fit, Apata Group managing director Stu Weston, who pays workers bonuses just for turning up, says.
KIWIFRUIT growers’ failure to find enough pickers this season is not because of low pay, Apata Group managing director Stu Weston says. The post-harvest company boss took exception to claims of low pay being responsilbe for the sector grappling to find another 1000 staff to harvest this season’s bumper crop. Calls to pay more are well intentioned but simplistic with an incorrect conclusion, Weston said. “I wonder if the public understand what this does to costs as it ripples through the economy.” Many pickers were now on well over $20 an hour and capable of earning more than $1000 a week. “And we even have good pickers on $30 an hour. “The economic argument to
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just pay more presupposes some elasticity of supply which just is not there. It is in fact quite inelastic. “For years we have been told to pay more and the net effect is zero.” In his packhouses, which account for about 10% of the country’s crop, he goes as far to encourage staff to just show up. “We will say ‘here is the minimum rate but we will pay you extra if you continue coming at the end of the week, month or season’. “However, what every packhouse finds is the guys who were always going to turn up will. For the target market for this bonus it does not make a scrap of difference.” There is also the problem of having to tap a source far from work fit when it comes to physical work. “A lot of people cannot get over the fact 120,000 people are still unemployed and ask ‘how could you not get them working?’” He likened it to trying to get an unfit person onto a rugby pitch for 80 minutes of intensive playing. “With this seasonal work you go from zero to 100kmh overnight and workers need to be up for that and most simply are not.” Weston said the stars had aligned this season with highquality fruit and high volumes and fortunately the weather had co-operated for the first half of harvest, helping ease the impact of the picker shortage. “So there will not be any dramatic television footage there of bereft growers looking at rotting fruit falling to the ground.” However, things are unlikely to get better in coming years as greater volumes of SunGold crop come on stream, he said. With 700ha a year going into the ground over
coming years, about half that would represent a net gain in area or an extra five million trays a year. “The problem is Green is a May crop and SunGold an April crop so, by changing from Green to SunGold, compresses the season more and more into a very finite time window.” While the call for more SunGold was coming from Zespri, Weston had no beef with what the marketer wanted to achieve.
For years we have been told to pay more and the net effect is zero. Stuart Weston Apata Group
“Zespri is just there to give us feedback from the market and they are telling us SunGold is going nuts out there and the opportunity is there if you want it. “Of course, Zespri wants to see us succeed at this.” The implications of the labour shortage the planned expansion are significant. “Every morning I wake up and know my whole business with $70 million of infrastructure and assets only works when people turn up. “Why would I spend another $40m to expand when no-one is there to work it?” Already he is forced to run only three-quarters of his usual peak shifts and even those are not fully staffed. So the industry’s numbers for planned expansion are frightening. The 700ha a year extra means his company will be required to invest $80m in plant and equipment, about 10% of the total new investment required throughout the industry. “So, the industry is looking at the thick end of $1 billion investment to cater for it with no certainty over labour supply to work it.” An increase in Recognised Seasonal Employer scheme numbers would help get over the seasonal hump each year. But the challenge is also to get more locals engaged full time in the industry and the year-round jobs are there. “No one argues putting them to work picking is a great idea to transition them from unemployment but to go straight into hard seasonal picking – what a way to put them off.”
18 FARMERS WEEKLY – farmersweekly.co.nz – May 21, 2018
Time to get shearing act together Alan Williams firstname.lastname@example.org WITH other options disappearing farmers and the shearing industry must work together to strengthen the shed-handling preparation of crossbred wool for the market, sector leader Renata Apatu says. “There’s no good news out of Primary ITO so it comes back to the industry,” he said after this year’s Wool Classers Association annual meeting and field day in Christchurch, where he was a guest speaker. It and farmers have to take ownership of industry training and make it work. One of the country’s biggest sheep farmers at his family-owned Ngamatea Station in western Hawke’s Bay and Campaign For Wool chairman in NZ, Apatu is also a qualified wool classer who says he’s waiting for a shearing course when one is available. The latest shearer training operator, Te Ako, recently ended its involvement after Primary ITO withdrew its contract. Apatu is talking to major shearing contractors in the central North Island about changes needed to make the industry more sustainable. More pay for shearing and improved working conditions
ALL OVER THE PLACE: Shearing training is in disarray the shed handling of crossbred wool preparation must strengthen, farmer and Campaign for Wool chairman Renata Apatu says.
such as better light and ventilation in wool sheds look like being necessary to make it easier to attract workers. “In terms of pay and conditions, I’ve been lagging in that. I put my hand up. We have to do better. “That might be hard to take for farmers in the depressed crossbred market but a major concern on sustainability is
getting the wool out of the shed. That is the reality.” Association chairman Bill Dowle told the annual meeting the loss of Te Ako’s programme is another blow to industry training. “We desperately need someone to get this going and stay there for the long period. “It is difficult enough getting some of our handlers to take up
the theoretical side of training without the changes that keep happening.” Without this happening, he believes the industry could disappear, especially with low crossbred wool prices but he urged participants to persist and ensure proper standards of preparation and presentation of what is a great fibre. “Perhaps we should be talking more of the discount for poor preparation and presentation, rather than the bonus from the good.” Ngamatea Station produces about 1000 bales of wool a year and for the last three years has had a supply agreement with United States rug maker Delos though Apatu says the business is still fully exposed to the weak crossbred wool market. Two qualified wool classers are always in the shed at shearing time. He is one of them, following the example of his mother. The family link with wool is part of the heritage driving his passion for it. Wool classing is a crucial part of producing a high-grade fleece for market though he’s not sure it adds a price premium. “I’d like to think so but we don’t have a second, unclassed clip to compare it with. “But I stand by it as it provides a
tick in the catalogue so that buyers know it is properly prepared and the pen stains, black wools and raddle marks are taken out and means they can bid with some confidence.” If there is a premium for Ngamatea wool it is probably from the volumes its produces, he says. It is also important to spend time in the shed to understand the work of shearers and handling staff. Apatu says he doesn’t know if he’s on a sinking ship or leading a renaissance. “When I’m on the farm and dealing with low prices I can get despondent but when I’m out on the Campaign for Wool and seeing what is being done round the world, it is very lifting.” While there are a number of small initiatives in the crossbred sector it still needs to provide an emotional link with consumers, in the way fine wools have prospered. Further out, there are earlystage initiatives towards breeding sheep without wool and sheep without wool on the bellies and breaches. The latter development would reduce wool volumes by about 30% but take away the more costly and time-consuming part of management.
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20 FARMERS WEEKLY – farmersweekly.co.nz – May 21, 2018
Experts to analyse Fonterra from all angles and exporter while leaving room for domestic competitors and to facilitate new entrants. A fundamental principle was open entry and exit to and from the cooperative for dairy farmers, many of whom have chosen to leave and contract their milk supply to other processors. Fonterra’s milk market share is down to 82% and approaching the 80% threshold at which the DIRA was to expire, leaving the dairy industry to be scrutinised by market competition. O’Connor’s review team is tasked with questions:
FONTERRA’S founding legislation, the Dairy Industry Restructuring Act 2001, will be re-examined this year from the grassroots upwards. Agriculture Minister Damien O’Connor wants a comprehensive review of the DIRA to focus on environmental issues, land use and how to achieve the best outcomes for farmers, consumers and the economy. When it was formed Fonterra collected 96% of milk with the rest shared between fellow co-operatives Tatua and Westland. The DIRA enabled Fonterra to exist as a near-monopoly processor
DIRA review by examining Fonterra’s performance, its hybrid co-operative structure, its offshore investments and the volume-to-value strategy pursued by outgoing chief executive Theo Spierings. First up are arguments by two longtime critics of Fonterra’s performance, Geoff Taylor and Arie Dekker. Next week Fonterra’s performance as a co-operative will be examined with some responses from veteran Fonterra senior executive Alex Duncan and in following weeks its case for changes to the DIRA and the Spierings strategy will be looked at.
• Has the DIRA done its job and should it be rescinded? • Does Fonterra have effective and sustainable factory gate competition? • Do farmers have adequate farmgate competition for their milk? • Has Fonterra evolved in the best interests of farmers and the NZ public, especially in adding value to dairy products? • How should the dairy industry and its environmental effects be regulated in future? In a series of weekly articles Farmers Weekly will kick off the
Rivals are doing better Hugh Stringleman email@example.com
The farmers’ share
Average dairy company total payout (inflation-adjusted), NZ$/kgMS $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 2017
? Pass ? Fail HOW MUCH: TDB partner Geoff Taylor finds Fonterra’s calculations hard to believe.
value beyond what could have been expected from a NZ-based commodities and ingredients processor,” TDB decided. After projecting earnings and milk market shares ahead to
$12 $8 $4
Source: Dairy NZ
Revenue/kgMS and FGMP
Dairy company payout (inflation-adjusted)
Payout v return
FTER 17 years under special legislation it is not clear Fonterra has created value for its farmer-shareholders and the New Zealand economy, analyst TDB Advisory says. “We have not seen evidence of increased returns above the milk price with Fonterra’s returns to farmers and shareholders behind those of its now higher-growth and higher-returning competitors,” the analysts said in the NZ Dairy Companies Review. Returns have consistently been below its weighted average cost of capital (WACC) of 8%, indicating the company has failed to provide its shareholders with an adequate risk-adjusted return. In the second edition of its dairy industry review, TDB said a collective comparison against three other NZ dairy companies now made it possible to evaluate Fonterra’s performance overall. It was done on a number of parameters. Open Country Dairy was used as the commodities producer, Synlait as the ingredients producer and A2 Milk Company as the consumer products comparison. “Banded together they provide a comparator for the industry that suggests Fonterra’s global volume-into-value strategy has not resulted in additional shareholder
2020, TDB also argued the three competitors would outperform Fonterra without investing in riskier offshore assets and while paying higher milk prices to farmers. “Given the lack of evidence of an adequate risk-adjusted return for Fonterra’s supplier shareholders it seems reasonable for them to ask how much capital is employed in the consumer and food service segments and whether an improved return could be achieved by separating these segments into a transparent business that has to compete for its farmer capital rather than be protected within the processing co-operative company.” TDB said over the past three years, on average, the combination of OCD and Synlait had earned about the same per kilogram of milksolids as Fonterra but Fonterra
had the higher-value consumer and food service business. When A2 Milk was added, for just the 2016-17 financial year, the combined threesome outperformed Fonterra by 79c/kg MS to 51c. Moreover, Fonterra’s investment into added-value products should show rising revenue per kilogram of milksolids relative to the commodity value but that was not apparent over the past five years. It was from those comparisons TDB found Fonterra had not fulfilled its promise nor justified the expectations of its special legislation. The report pointed out the landscape of the NZ dairy sector had changed considerably since the Dairy Industry Restructuring Act (DIRA) was passed in 2001. During the life of Fonterra total NZ milk production grew from 12b litres annually to a peak of 21.5b in 2015-16. At formation Fonterra had 96% of the milk supply or 11.5b litres
and in the latest season it was estimated to have collected 82% of 21.3b litres, or 17.5b. Fonterra’s increased volume, therefore, was about 6b litres or 52%, over the 17 seasons. To be able to process all the milk it was obligated to collect under the DIRA and facilitate its drive towards higher-value products and make overseas alliances and purchases, Fonterra spent $15b of new investment. That compared with about $3b spent by its competitors to be able to process what is expected to be about 4b litres in the new season. According to company reports and the TDB analysis of cashflow, Synlait spent $475m, OCD $460m (not including the Horotiu plant construction) and Westland $420m. TDB said the three co-operatives had higher debt ratios than the publicly owned companies, which might be partly because of shareholder-supplier payments ranking behind bank debt for the co-ops. Fonterra’s capital expenditure included offshore investments in Sanlu, China farms and Beingmate, Australia, for whey processing in Europe and the United States, and smaller stakes in Russian and Lithuanian distributors. TDB said it is not possible from
Continued next page
FARMERS WEEKLY – farmersweekly.co.nz – May 21, 2018
Review will scrutinise the co-op Hugh Stringleman firstname.lastname@example.org THE review of the Dairy Industry Restructuring Act, after 17 years, is likely to provide an outside look at the effectiveness of Fonterra, First NZ Capital research head Arie Dekker said in a note in January. He wrote the note following the announcement a review would be done by the incoming Government. More specifically, the DIRA review would likely look at the success of the New Zealand dairy industry in increasing the value generated from milk production and how farmers’ returns have fared over the period. Dekker said the Government’s announcement indicates it will focus on the extent to which farmers, consumers and the NZ economy have benefitted from the regulatory structure. “And whether the right regulatory, capital and other incentive structures are in place to optimise returns for the NZ economy.” In a note to FNZC clients interested in Fonterra Shareholders Fund units he published a graph of the inflation-adjusted average dairy
Fonterra’s disclosures to unbundle the investments into ingredients manufacturing, such as milk powder plants, and consumer and food service value-add plants. The latest annual accounts said consumer and food service earnings made a return of 47.2% on capital, which implied a capital base for that business unit of about $1.3b. TBD partner Geoff Taylor said
If Fonterra was allowed to pay a higher milk price to defend its volumes we would expect a continuation of the premiums being paid by competitors. Geoff Taylor TDP Advisory frankly he found that hard to believe. “To retain shareholder and investor confidence Fonterra needs to disclose what real returns on assets were generated from the value-add products.” Within the workings of the market regulator concerning the highly efficient processor and the farmgate milk price it was suggested Fonterra would need only $8b of assets to turn all its milk into commodities. “In the absence of any other unbundling disclosures I am therefore led to assume Fonterra has $10b of assets for consumer and food service products, which
Fonterra ? Pass ? Fail company total payout over the past 20 years. The graph line moved around within a band of $5 to $9/kg without an upward trend as farmers and the Government would have hoped from the performance of Fonterra. “It is hard to argue that the creation of a national champion in Fonterra has led to a sustained, material upwards impact on the farmgate returns received by farmers over the last 20 years. “Partly, this reflects the nature of the (commodity based) farmgate milk price that dominates farmer payout. “But partly it reflects the inability for the NZ industry, particularly on the weight of a doubling of milk volumes over that time, to lift the mix of its output to value-add sufficient to flow through into better cooperative payouts.”
means nowhere near 47% return on that capital,” Taylor said. Nor did he believe Fonterra is making a true 11% return on capital overall, which it said in the 2017 results was better than Friesland Campina’ s8.8% and Arla’s 7.4%. “They get there by not including brands, goodwill and equity accounted investments (in the capital). “But if they spent $700m buying into Beingmate and half of that is goodwill, that is my real money and I would like to know what is the true return.” That is why TDB believes the real returns of about 7% are below the WACC. TDB looked at the revenues of all the dairy companies in relation to the kilograms of milksolids they collected and processed. High revenue per unit of milksolids indicated more specialised and higher-value products and so not surprisingly Tatua came out on top with $22.16/kg MS. Fonterra was next at $12.60, followed by Synlait at $11.69, Westland at $10.60 and OCD on $8.73, which was only 60c ahead of the commodity-only value of $8.13, used as a reference for deriving the farmgate milk price. Tatua also had the highest fixed assets per kilogram of milksolids processed and it would be very difficult for the other companies to make the investments needed to match Tatua’s premium product output. For example, Fonterra farmers would need to stump up a further $675,000 on top of their current average shareholding of $880,000 a farm.
Farmers had increased milk supply but not derived any material benefits from the push into value-add, Dekker said. He suggests there are overlapping concerns in the milk volume versus value issue and environmental matters concerning the dairy industry. It is premature to suggest an outcome from the DIRA review will be that environmental concerns will lead to a shrinking milk pool. But Dekker wrote his note before Environment Minister David Parker said that might have to happen in some regions where nutrient limits are adopted. Through new regulation the Government might try to get the industry to boost value-add rather than just chase more volume. “The possibility of a shrinking milk pool is not immaterial for Fonterra’s embedded asset base and food service and consumer ambitions,” Dekker warned. If Fonterra relies more on its offshore milk pools then access to capital from its shareholder base will be an issue. The difficulties it faces overseas, especially in Beingmate, are in turn making it seemingly more attractive to supply an independent processor.
EXPERT: Arie Dekker is institutional research head for First NZ Capital. He was previously employed as an equities analyst for Todd Group and Craigs Investment Partners. Dekker has covered Fonterra since 2011.
Slicing the dairy pies Westland, 3%
Synlait, 4% Tatua, 1%
Miraka, 1% Oceania, 1% Tatua, 1%
Sources: DairyNZ, company annual reports, TDB Advisory analysis
Tatua had invested almost three times that of OCD per unit of production but Tatua also had operating costs to produce its higher-value products about seven times those of OCD, TDB said. “When the regulated cost of milk is added it shows just how different OCD, as the low-cost commodity processor, is from the higher-value model adopted by Tatua, with both being profitable.” TDB looked at the milk price differences between companies over the three seasons from 2015 to 2017 and found, on average, Synlait paid 4c/kg more than Fonterra’s regulated farmgate milk price, OCD 6c and Miraka, until recently, offered 10c more. “If Fonterra was allowed to pay a higher milk price to defend its volumes we would expect a continuation of the premiums
being paid by competitors.” TDB also expected more longer-term supply agreements, fixed-price contracts and toll processing. Stranded assets will become a factor in milk pricing and those with spare capacity will fight harder, which will result in greater variation between companies. The market values of Synlait and OCD, added together, are $15/ kg MS processed, compared with Fonterra’s $6/share. That suggested significantly higher forecast growth rates of volume and profitability for Fonterra’s competitors. However, Synlait, OCD and A2 Milk had not paid dividends, opting instead to re-invest their earnings into and so have low debt to asset ratios. By contrast, Fonterra paid a steady 40c/share, or 6% return on capital.
Geoff Taylor is a director of TDB Advisory, a group of qualified and experienced financial and economic advisors. He left Fonterra in 2002 after being global head of corporate finance and treasury for the NZ Dairy Board and participating in the establishment of Fonterra. He is a former director of other dairy companies and has provided advice to those companies. The statement of independence attached to the TDB Dairy Companies Review fully discloses the extent to which TDB and its directors are involved in the dairy industry. It also said TDB has no conflict of interest that could affect its ability to provide an unbiased report. The report was not commissioned or sponsored by any entity and no dairy company had any input. The dairy company information is all publicly available.
22 FARMERS WEEKLY – farmersweekly.co.nz – May 21, 2018
Don’t invite everyone to party Richard Rennie email@example.com CONFUSING collaboration with co-operation is putting the brake on New Zealand agriculture’s ability to adopt and adapt to evertightening expectations coming from society over the sector’s social licence to farm and global market demands. Nuffield Scholar and Ballance sustainability manager Rebecca Hyde spent her scholarship year unpicking the key differences between two words that are often interchanged but quite different in terms of how groups relate to each other when acting on issues like environmental protection. Her study found ultimately the success of one over the other requires having the right people engaged in the collaborative process with respect, an ability to understand multiple viewpoints and the motivation to create and drive a movement. It also requires strong facilitators to manage the inevitable differences in a group, having a clear, unbiased focus on what the ultimate outcome of the group’s purpose is. For Hyde, the definition of collaboration involves a group working as a single, unified party towards a common goal, beyond the individual interests of the parties making up that group. “When groups only co-operate they tend to retain their particular alliance to their sector or interest – as soon as you hear references like ‘this suits us’, you know it’s cooperating, not collaborating.” Hyde’s prompt for the Nuffield
DIFFERENCE: Co-operating is not the same as collaborating, Nuffield scholar Rebecca Hyde says.
study on effective collaboration for environmental gains came from her home farm experience with the Hurunui-Waiau Regional River Plan working group. As a group no firm resolutions on the issues of water quality and use have yet been made despite running for over four years and her experience with it reinforced the need to ensure the right type of people are on such groups. “We tend to run these sort of groups with an open invite for anyone to come along. But to work you need to first identify all the affected parties that should be collaborating then make sure you specify the people you want on board, with the right combination
of influencers and information providers. “An open invitation is an invitation to have people who will inevitably feel a strong alliance to one sector or one view and are unlikely to hold to that common vision, whether it is a cleaner river or improved lake water quality. She laments the lack of a collaborative primary industry goal around environmental improvement in NZ despite large industry bodies like Beef + Lamb NZ and DairyNZ having their particular plans for sustainability and environmental protection. Interestingly, she believes when left to their own devices farmers are quite capable of developing a collaborative plan with their
community to achieve a certain goal. “But then when the industry body steps in they will typically say ‘No, sorry, this does not work for our sector’.” As a country rapidly approaching 90% urbanisation the need for sector collaboration is critical. Non-government groups are becoming increasingly capable and organised in opposing or disclaiming rural sector efforts in the environment. “If we are not collaborating it is only easier for them to gain traction if we don’t have a united voice.” She attributes part of the reason for the lack of collaboration to NZ’s culture of both co-operative farmer groups serving their particular members’ interests first and individual farmers being quite competitive in a less regulated, unsubsidised environment. In her Nuffield travels Hyde saw a variety of truly collaborative primary sector groups that provided some ideas for similar structures at home. In the United Kingdom the LEAF (Linking the Environment and Farming) group was born from a desire among farmers to show consumers what they are doing to protect their environment around a common vision for a world where we farm, live and eat sustainably. Consistent messaging and leadership since forming in 1991 has had the group’s brand become a certification and used by Waitrose supermarkets on vegetables. In Ontario the Grow Ontario
Together group was formed, partly to deal with phosphate losses into Lake Erie. That study highlighted to Hyde how fortunate NZ is with a single-government, non-state system. “For farmers somewhere like Ontario it was a challenge to see the outcome of your positive efforts when you are only one state of five.” She did, however, see the value of having an effective facilitator in a group and the demands such a group put on someone in that role. She was also impressed by Danish efforts to create an Agriculture and Food Council. Farmers pay into it, on top of their individual sector levies. Spreading the industry’s human resources across all agri sectors had reduced the skills pressure in a country with a relatively small population of 5.7 million. It also helped change the perception of farming in Denmark. Consumers trust Danish brands and environmental issues are being front-footed before a largely urban population. Like NZ, Denmark has a history of co-operative farming structures and the pooling of resources across the entire sector has delivered a truly collaborative approach to dealing with the sector’s challenges. Hyde hopes her work will be noticed by the industry and acknowledges some of that attention might come from the sector recognising it is standing on a burning platform that will prompt change as farming’s social licence to operate continues to diminish here.
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“We have a large range of developed, tested and trialled, high-performance manuka varieties designed and tailored for specific regions as well as eco-sourced varieties suitable for planting at or near their source. MFNZ is providing wrap-
around services to ensure greater planting and growing success.” There is no maximum limit on the size of the proposed plantations. Larger plantations will be assessed more favourably. Landowners will need to cover the costs of packing and
dispatching the seedlings from the nursery, site preparation including pest and weed control, fencing if required, planting costs and post-plant monitoring. Interested landowners should contact MFNZ to register their interest by May 23.
Now you can receive a midweek email update from Farmers Weekly editor Bryan Gibson who will set the scene for the news of the week. Enjoy reading this and our usual Friday night update where you can catch up on the top stories and read our virtual publication before it hits the printing press.
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FREE manuka seedlings are being offered to landowners. Forestry New Zealand is partnering with Manuka Farming NZ on the offer. Manuka Farming general manager Stephen Lee said landowners must commit to
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24 FARMERS WEEKLY – farmersweekly.co.nz – May 21, 2018
Living the dream brings reward Only six years after making a career switch from rural valuation to dairy farming Dan and Gina Duncan have won the New Zealand Dairy Industry Awards Share Farmer of the Year title. They took the stage with mentors Wynn and Tracy Brown, who won the inaugural Responsible Dairying Award. Hugh Stringleman explains the connection.
ORTHLAND sharemilkers Dan and Gina Duncan from the Pouto Peninsula have won the top dairy industry award, more than 20 years after Northland farmers last won the national honours. They were named as national winners out of 11 regional finalists at the Dairy Industry Awards on Saturday, May 12, in Invercargill. The previous time that was done by Northland entrants was in 1996 by Bruce and Julie Paton, of Mata, just south of Whangarei when the contest was named the Sharemilker of the Year. The Patons gave advice to Dan and Gina before the national event. Gerard Boerjan from Hawke’s Bay-Wairarapa is Dairy Manager of the Year and Simone Smail from Southland-Otago is Dairy Trainee of the Year. Wynn and Tracy Brown, of Matamata, won the inaugural Responsible Dairying Award, sponsored by Fonterra. Perhaps that is no coincidence given the Browns’ industry standing and environmental achievements the Matamata farm was Dan Duncan’s first dairying job in 2012-13 as a trainee after a career change aged 26 from rural valuation. The Browns have a reputation for giving young people an excellent start in dairying, which the Duncan family knew about. Six years on Dan and Gina, also a qualified rural valuer, have two young sons, Lachie, 3, and Brock, 4 months, three employees and 1020 cows run in three herds milked through two dairies. Their ascent to the national
title has been spectacular and the judges attributed that to passion, professionalism and commitment. “They are a friendly, outgoing couple who are working on an exceptionally challenging farm,” head judge Kevin McKinley, from DairyNZ, said. “They epitomise living the dream. They left secure jobs as registered valuers and made the career change to dairy farming and they’re excelling at it. They’re the complete package. “Nothing has come easy for them. They’ve had to work hard,” McKinley said.
They’ve looked for opportunities where people are considered important. Kevin McKinley DairyNZ “When they first began their career they sought out employers they thought would be good mentors and role models for them. They’ve looked for opportunities where people are considered important.” After a start in the industry with the Browns, the Duncans moved to a 620-cow contract milking position in Tokoroa for three seasons though Gina continued to work as a valuer in addition to farm work. Against plenty of well-meaning advice they decided in 2016 to apply for and take the large Pouto sharemilking job on the remote 460ha farm 50km south of
Dargaville on a no-exit road. “This job in Northland offered an opportunity that the Waikato couldn’t in terms of growth,” Dan said. The farm is owned by Pouto Topu A Trust, which has 2868ha in three farms and forestry. They were warned not to take cows north because of theileria so they bought two herds already on the farm, owned by the trust and the previous sharemilker, and built the numbers up from 960 to 1020. Cow values were subdued following two low milk payout years and the sharemilking job has spanned two $6-plus seasons since, plus the prospect of a third to come. Milk production in the first season was 285kg/cow milksolids, pasture eaten 9.35 tonnes DM/ha and supplements 235kg/cow DM of palm kernel. This year milk output has been 311,000kg MS, compared with 275,000kg. One of their herds containing 280 heifers, late calvers and special needs cows is milked once-a-day all season and the remaining cows went OAD for the mating period, then twice-aday until Christmas, then back to OAD. Isolation is a big challenge with long car trips even to get Lachie to pre-school. Fortunately, the employees all have long associations with Pouto and are housed on the properties. The Duncans also won three sectional awards: The PrimaryITO Interview Award, the Ravensdown Pasture Performance Award and the Westpac Business Performance Award. The Browns run 700 cows on
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QUICK LEARNERS: Just six years after starting in dairy farming Gina and Dan Duncan have won the Share Farmer of the Year title.
STALWARTS: Tracy and Wynn Brown, who were mentors to Gina and Dan Duncan, have won the inaugural Responsible Dairying Award.
their 360ha farm plus 30ha leased land near Matamata. They are past supreme winners of the Waikato Farm Environment Awards, in 2010, and have been involved with that award series as well as the dairy industry awards for many years. The new responsible dairying award recognises dairy farmers who are demonstrating leadership in their approach to dairying, have proven results and are respected by their farming peers and their community. Dairy Industry Awards chairwoman Rachel Baker said the Browns met all the criteria for the award through their vision, guiding principles and actions. “Responsible dairying is a way of conducting a farm business where actions and results demonstrate responsibility and sustainability.” “The management and performance of people, farming system, finances, animal care and ecosystem are all important pillars of responsible dairying and Wynn and Tracy demonstrate these through their actions on a daily basis.” The Browns have proven results in leading and managing their teams with three Share Farmer of the Year finalists from the past two years coming from their farm. The couple aim to improve, contribute, add value and give back to their community and are
involved in various ways with Wynn the deputy chairman for the Piako Catchment Farmer Engagement Group and an LIC Shareholders councillor. Tracy is chairwoman of the DairyNZ Dairy Environment Leaders Forum, a trustee of Dairy Women’s Network, a farmer rep for the Dairy Environment Leadership Group and a member of the Dairy Industry Strategy Dairy Tomorrow Working Group. “We lead by example. We are passionate about industry and are involved with lots of different aspects of it and encourage our staff to do the same,” the Browns said. “Sustainable farming is about walking the walk not just talking the talk. It’s about what you do when no-one is looking. “It’s also about not just living for the here and now but about thinking for the future and those that will come after you.” Runners-up in the Share Farmer national honours were Chris and Sally Guy, of Papakura, South Auckland and third were Steve Gillies and Amy Johnson, of Putaruru. Runner-up in the Dairy Manager section was Will Green of Canterbury and Jamie McCrostie of Southland was third. Donna McKinley from Central Plateau was Trainee runner-up and Quinn Youngman, from Mercer, North Waikato was third.
THE NZ FARMERS WEEKLY – farmersweekly.co.nz – May 21, 2018
Water data must flow quickly The basics of monitoring irrigation water use are working but the data should be kept up to date for immediate use, thus ensuring more effective use can be made of it by local authorities, a report from the Auditor General’s office says. That could also mean water is used more effectively and waste is cut. Richard Rennie reports.
Many water users provided data annually, introducing a time lag and potential for errors.
Overall, however, irrigators and councils have been given a thumbs-up for having the meters installed in good time and getting to grips with the volume of data the regulations have brought. The regulations were introduced in 2010 but did not take full effect until late 2016 when all water takes of five litres a second or more were required to have certified meters. It appears early fears about councils being unable to handle the volume of data the meters produce were largely unfounded while compliance by irrigators has generally been well met. That is despite 400 large-scale water users having to be nudged by Environment Canterbury to get
on board with meters only days before they became compulsory in 2016. While 45 received abatement notices ultimately only one was issued an infringement notice. But when it comes to the data being collected by councils, the report’s criticism focuses on councils needing to work more closely with permit holders to encourage a shift to more automated data logging and ultimately more efficient water use. Many water users provided data annually, introducing a time lag and potential for errors. The office recommends a review of the Resource Management Act’s water data rules to require automated logging updates. Environment Canterbury already has 80% of its permit holders logging water use daily. Marlborough District Council phased out manual recordings in 2014, replacing them with automated data-loggers. While finding all councils generally have good systems for collecting comprehensive data the office also recommended greater integration of other land use information alongside the water data, which, in turn, could be used to give irrigators a better understanding of how their system interacts with the dynamics of the entire water catchment-land use area. In a relatively short time some councils have developed smart tools for helping achieve that. Marlborough District Council developed eWater, an online tool that shows the complete information for each water permit
LEADERSHIP: The pressure is now on the Government to set up a national data framework to monitor water use, Irrigation New Zealand chief executive Andrew Curtis says.
in what is one of the country’s larger irrigation regions. Information includes property maps, water sources, land use type, all available online to permit holders and council staff. Environment Canterbury uses the data to set up water management groups, aimed at encouraging permit holders to work co-operatively to more efficiently use fresh water. The water management zone committees include all water users and interested parties, with water metering data supplied openly to more effectively ration water over
low flow and dry periods. The data has also provided the council with a foundation for information events on water use and irrigation efficiency. The report notes the lack of timely nationwide data, with current information based only on permit and allocation data rather than actual use data. It wants better co-operation between councils to paint a clearer picture of the country’s water use patterns. Irrigation NZ chief executive Andrew Curtis said with 99% of water users in the six regions
that account for 90% of irrigation consents having meters, the pressure is now on the Government to take the lead on establishing a consistent national data management framework and reporting system to monitor water use. Last year’s agricultural census data also reported a significant drop in the amount of surface or border-dyke irrigation, down by half since 2012 to account for only 10% of applied irrigation water, compared to UN data showing worldwide 86% of irrigated land uses surface irrigation.
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OR the past few years irrigators have been required to use meters recording how much water they have used and give the data to councils. Until now what councils have done with that information has varied. A recent report from the Auditor General’s office intends to help raise the bar on the use of that information, pushing councils to analyse and use it more effectively for understanding water use now and into the future.
26 FARMERS WEEKLY – farmersweekly.co.nz – May 21, 2018
Budget is all about people
HE Budget day lolly scramble usually leaves out the chewy milk bottles with not a lot for farmers and rural people. This year was a little different. Two of the first news releases into my inbox on Thursday announced new funds for the Mycoplasma bovis response and for the management tool Overseer. The news on M bovis seems to be getting more frightening by the day. The Ministry for Primary Industries has a tough task tracking a bug that is very difficult to test for and using stock records that are often incomplete. There’s been a lot of mud thrown as this response has unfolded but I think everyone can agree more money in the pot to fight the disease and keep farmers in business is welcome. The Government is keen to improve water quality in New Zealand and that’s a great goal to have. Of course to do that you need to be able to accurately measure what nutrients leach through soils into waterways. Many have been saying for some time now that Overseer isn’t quite where it needs to be to get the job done so funding an upgrade there is also welcomed. There’s also a lot more money for research and development and for the Sustainable Farming Fund. Add all this to the previously announced regional development fund and there’s a bit to celebrate. Of course, Budget day isn’t all about businesses it’s about people. Many farmers and rural people will be looking for announcements that help their children, their health and their communities. They want to prosper but they also want to be safe and happy. As always when a finite pool of money is dished out there will be winners and losers and we’ll pick over that in the coming days and weeks. A few dollars left in the back pocket for some lollies wouldn’t go amiss, though.
A solution to M bovis issue OVER the weekend I was lying on my deck pondering whether it would be me or the pain of my sciatic nerve injury that would win the moment when … slam, dunk and kapow I had a magic moment of inspiration regarding the Mycoplasma bovis outbreak. At the risk of looking townie foolish I want to present my idea. Taking into account that the bug appears to be already spread far and wide and it has no detrimental effect on either meat or milk production or end product quality or sales and that it is present in the herds of our major competitors then why not manage the issue in a more controlled, unemotional and less destructive manner? The fact is, from an
outsider’s perspective, the situation and the response couldn’t be worse. To continue culling complete herds, including those animals with a natural resistance, is both ridiculous and bizarre. Clearly the bureaucrats are chasing their tails and that’s not a good sign. Who is to say the infection won’t return with the new replacement stock, if the farmer can afford them? Then what? Do it all again? My suggestion is based on the premise the pathogen has already spread far and wide and will be with us for a long time. Why not simply quarantine the individual farms concerned, followed by an effective, science based, practical protocol to micro-
manage and eventually rid the farm of the pathogen. In this case a quarantine would work because it is in the best interest of all concerned, including neighbours and freight carriers, to make certain they and the farm concerned follow due process. Immediately on notification, the farmer would ring-fence the entire farm (two-wire electric) to create a no contact zone for the neighbours’ stock. Chances are it’s a bit late but it’s being proactive for a minimal outlay. Production would continue along with cashflow and equity as the affected stock are culled within sound, normal stock management and financial parameters. Animals showing resistance would be bred from, instead
of thrown out with the baby water. All vehicles entering and leaving the farm would have their wheels sprayed with that magic formula. There would be no need for litigation, which can only ever complicate and divide the issue while an individual farm quarantine would hugely reduce the cost of government subsidies required to replace stock, which, realistically, would have to be replaced again and again until there are no winners. For the first time there would be a sound, longterm plan to build on, which would put order to this highly emotional and seemingly chaotic mess. Phil A Long-Taylor Pukekohe
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FARMERS WEEKLY – farmersweekly.co.nz – May 21, 2018
We told you what would happen David Broome
HE recent Nait review could have cut to the chase by speaking to farmers on living with Nait and meat industry commentator Allan Barber who publicly raised concerns over two years ago about Nait’s apparent lack of urgency in fixing issues. Of course, the Nait review started in 2016 and well before Mycoplasma bovis gathered its terrible head of steam. Parliament seems to be worried about M bovis implications, having plucked New Zealand First’s Farm Debt Mediation Bill from the filing cabinet and passing its first reading unanimously in a little over 24 hours. Having had a hand in writing this Bill with Ron Mark it was refreshing to see the National Party genuinely open up to the concept. This was Parliament at its best and being an amendment to the Receiverships Act it does two things. First, it requires debt mediation before any receivership involving agricultural debt can begin. Secondly, it removes the $200,000 financial compensation cap from the Banking Ombudsman Scheme. At least it will now go to a select committee for refinement and given the composition of Parliament, it stands a very good chance of being enacted. This is a genuine coup for NZ First and a feather in the cap for Mark Patterson MP. Another thing about M bovis has been the slow realisation that it goes far beyond being just a dairy issue. About one-third of all calves taken onto sheep and beef farms come from dairy farms with beef from dairy cattle providing over 50% of our beef exports. Which takes me back to Nait. Federated Farmers has come in for stick over its 2011 submission on the original legislation. Yes, Federated Farmers did write
“It is the view of the federation that a national, compulsory Nait scheme is not needed in NZ at this time.” But that needs to be read in the context of the whole submission and of course, Nait’s limited bovine and cervine focus. It also added “The federation does, however, support the development of commercial, voluntary traceability systems with price signals from processors and markets driving stock procurement.” If you cast your mind back almost 10 years, you’ll recall large claims were made about what Nait would achieve for farmers. There would be a major increase to value-add and returns, biosecurity would be massively enhanced and there would be major onfarm productivity gains. This was all quantified in 2009 with a claim on the Nait website that there would be economic benefits of $141 billion 20 years after introduction.
With the benefit of experience, the federation’s submission lodged seven years ago has been vindicated.
With the benefit of experience, the federation’s submission lodged seven years ago has been vindicated. The federation said at the time that for Nait to be truly effective as a biosecurity measure it needed all at-risk animals to be in from the get-go. Anything less was a Swiss-cheese solution that created unacceptable gaps. In this respect M bovis has been a scary wake-up call for the sum of all fears – footand-mouth disease. If that did strike then Nait as it is would be
as useful as mammary glands on a bull. The federation also, correctly, took issue with the claims about value-add. Exporters are showcasing the back story of Kiwi farms but that’s not from Nait traceability but due to commercial advantage. It’s also fair to say this tends towards the high-end and not in a Kuala Lumpur McDonald’s. Federated Farmers even anticipated the traceability mess that’s landed Nait in hot water. Bearing in mind this was written in 2011 it wrote “Research on comparable systems shows unacceptably high error rates and commensurate lack of confidence, both by farmers and by markets. “In one example, an analysis, in Australia, showed that at least 20% of cattle do not have lifetime traceability. Should similar problems occur in NZ, the effectiveness of the Nait will, rightly, be called into question.” That’s exactly what happened. Nait always seemed to be more about the low-frequency tag than an easily implemented, intuitive farm management solution. The wake-up call has pointedly come from a disaster as opposed to heeding what commentators like
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BACK TO BASICS: If Nait is to be fixed it needs a first-principles reappraisal.
Barber tried to warn Nait about several years ago. NAIT broke the cardinal rule of sales: the customer is always right. While very late in the day, Ospri chief executive Michelle Edge’s recent comments about fusing Nait with an electronic animal status declaration might show Nait is at last getting it. More is needed because the glaring hole in Nait is its zero integration with dairy herd management systems. While farmers don’t begrudge Nait, they begrudge a lack of integration that forces wasteful and unproductive double entry. If this and other issues are to be
fixed then Nait needs a first principles reappraisal. David Broome is a Wellington public affairs consultant and was formerly chief of staff to NZ First leader Winston Peters and a former strategic communications general manager at Federated Farmers.
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28 FARMERS WEEKLY – farmersweekly.co.nz – May 21, 2018
Fert tax would increase run-off Alternative View
I WAS more than a little disturbed to read the front page of Farmers Weekly telling me it was highly likely farmers would be in line for another tax, one on nitrogen fertiliser. I don’t like taxes full stop, especially punitive taxes as a tax on nitrogen would be. Two main reasons were given for the tax. The first, according to Local Government NZ regional sector chairman Doug Leeder is that Environment Minister David Parker wants regional councils to implement plans to improve water quality. I’m sure Parker is well aware that according to the Land and Water Aotearoa report, released just last month, water quality is improving. So what’s the immediate problem? Leeder’s position was supported by Landcorp environment head Alison Dewes who told us the Government could do something like a tax on nitrogen fertiliser as something of a proxy tax on intensive farming. That it would affect all farmers be they intensive or extensive seemed beside the point. Dewes said the Government has to look good within one term so it will not be looking for any complex policy that takes time to develop. She likened a tax on nitrogen
fertiliser to tobacco tax. That’s extremely simplistic. Tobacco use has a massive cost to the health system. A tax on nitrogen would cost both the economy and productivity. The cost of all this to farmers would be $4500 for an average 147ha dairy farm. It would also mean less money spent locally and more given to central government. The quote I took most exception to was Dewes claiming a tax could also prove invaluable for upgrading and adding more horsepower to regional plans to be developed and ultimately enforced. It begged the question as to why a Landcorp employee would be advocating greater taxes on the entire farming population. Further, the science doesn’t add up. For a start, what’s the correlation between reducing nitrogen and reducing profitability? There was research done some years ago on nitrogen reduction but the author and farmers involved pointed out a change in the Overseer version used at the end of the research in comparison with the beginning had made a significant difference in the reduction in nitrogen leaching. In addition, the Lincoln Dairy Farm manager said nitrogen application is an important tool in grass management and keeping cows in good condition. Federated Farmers environmental spokesman Chris Allen told me nitrogen is an essential element for growing food. It didn’t matter if it came out of a bag, from animals, people, ducks, chicken litter, clover or gorse – it was still nitrogen’.
not apply nitrogen and suffer production losses or apply nitrogen, pay a tax of $150 a tonne and maintain production. Of course, a farmer has other options – to not use nitrogen and not pay tax on fertiliser but to substitute poor grass production with imported palm kernel or other supplements that aren’t taxed. Another option would be to fertilise with chicken litter and avoid the tax. Iniquitously heavy palm kernel use and chicken litter will increase nitrogen runoff but would be tax-free under the nitrogen tax proposal. It makes a mockery of the nitrogen tax argument. As has been argued ad nauseum with the Emissions Trading Scheme, taxes on inputs don’t work. As horticulture is a heavy user of nitrogen would a government encourage a tax with the direct consequence of increasing the price of fresh vegetables? One answer is to boost research into Overseer as the Government has committed to. Landcorp isn’t profitable now so why is it suggesting taxing all farmers. Finally, I asked the Government if there was any plan to tax nitrogen fertiliser. Agriculture Minister Damien O’Connor assured me there wasn’t. Parker told me it wasn’t policy at the election and isn’t now. Why then would you promote a nitrogen tax?
OOPS: A tax on nitrogen fertiliser could promote increased use of palm kernel and chicken litter.
Putting a tax on nitrogen won’t solve anything. Farmers are spending a fortune improving water quality.
He said everyone wants the same things with water quality but people need food. A tax won’t achieve anything. As Parker has noted, the most polluted waterways are in urban areas, mainly in Auckland. In addition, there are many factors governing water quality and nitrogen is but one. Putting a tax on nitrogen won’t solve anything. There are too many
other issues that will influence water quality. Further, as I’ve written on previous occasions, farmers are spending a fortune improving water quality. Through the two farmer-owned fertiliser co-operatives it is easy to see a $10 million spend on research aimed at improving the environment. That’s a considerable commitment from the 25,000 farmer shareholders. Ravensdown has just had a considerable environmental win after a $1.5m investment aimed at reducing the environmental impacts of effluent discharge. It looks good. Thinking through the issue logically, if farmers don’t use nitrogen their pasture production will suffer. So, a farmer has a choice – to
Your View Alan Emerson is a semi-retired Wairarapa farmer and businessman: firstname.lastname@example.org
Radically revamp rates and taxes Yeah Right
BASHING people over the head with a blunt instrument is generally frowned upon. But that’s what all forms of government are doing to us with taxes and rates. Not only that but while we’re reeling they are continually dipping into our pockets and going deeper every time. At the same time the Government is talking tax reform – it has set up a tax working group – it faces clamour for more regional petrol taxes to fund various projects that are getting a bit rich for ratepayers. Now it’s asked the Productivity Commission to take a look at local body funding.
Local bodies are stuck with one source of funds – us. They could collect it in property taxes known as rates or they could follow the British example and introduce a poll tax, a charge on every person in a council area. Councils have tried special rates targetted at things like the number of dunnies in a dwelling or on separate buildings like sleepout and self-contained flats, which, in one area famous for its high pensioner population, became known as the granny tax because it would capture granny flats. That latter council abandoned the idea as its reputation for granny bashing started to grow. Over the years councils have tried various things like differential rates where adjustments are made to urban or rural, commercial or industrial rates to supposedly ensure fairness and special rates so only the beneficiaries of particular things like water supplies, sewage treatment or flood protection pay for it. I do have some sympathy for councils. They were forced by governments, for no good
reason but because it didn’t fit with their ideological principles, to shed many of their incomeearning assets such as trading departments for gas and electricity and things like forests. At the same time those same governments were increasingly absolving themselves of responsibility for what might be called social services and foisting them onto councils. Also at the same time those national politicians were criticising councils for putting the rates up. They have also in the past been allowed to charge developers for the extra demand, and therefore costs, the people in their houses will put on infrastructure and services. These charges were known as development contributions but were often fudged or accepted in kind, such as land for park, or dropped altogether in a bid to encourage population growth. And of course we also pay the Goods and Service Tax on council rates. A tax on a tax. We also pay a tax on a tax when buying petrol. As I write this petrol
Fart Fert tax Water tax Fuel tax has topped $2.25 a litre in many places, just a cent off its record high price. I’m mystified about petrol prices. Here in Feilding the prices are always dearer than nearby Palmerston North, Bulls or Sanson, just 15 or 20 minutes drive away. I often note when going south I can get petrol in Levin up to 25c a litre cheaper than in Feilding. There seems to be no rhyme or
reason but that’s another story. The point is when we buy petrol at the moment the cost of the stuff is about 60c a litres. On top of that the fuel companies add 50c profit. The rest pretty much goes to the Government one way or another. Some is used for Accident Compo and the biggest bit supposedly goes to land transport though
Continued next page
FARMERS WEEKLY – farmersweekly.co.nz – May 21, 2018
Advice says sheep can move M bovis Steve Wyn-Harris
IT SEEMS the genie is quickly escaping from the bottle with this Mycoplasma bovis incursion. Looking at the latest map of the infected and restricted properties overlaid with the Notices of Direction, those to be issued and then the forward traces it is difficult not to be pessimistic about our ability to eradicate this bloody disease. The Primary Industries Ministry and Agriculture Minister Damien O’Connor are taking plenty of stick and hindsight will show they got a lot of things wrong but they are damned if they do and damned if they don’t. The worst response would have been to not try to eradicate this disease in the first place. Being difficult to detect is a big handicap for any response measures. When it was first found in July last year in Oamaru, it was a shock our biosecurity had been breached with yet another unwanted organism and this time in our own sector. At that point most of us would have hoped it could be contained to the dairy industry and within a small area. It was unwelcome news to find out in December it was also in
governments throughout my lifetime have been accused of syphoning it off for all sorts of pet projects or to make the books look good. On top of the nearly 70 cents the government skims off we add another 30c or so, depending on price fluctuations, for GST. We pay the GST on the $1.10 the fuel companies get and on the taxes the government takes. I’d have thought using petrol as a quick fix to cook the books was something governments should no longer be able to get away with. It seems counterproductive. Our productive sectors, including farming or even especially farming given the distances stuff has to travel to get to and from farms, need any competitive advantage they can get. Thus I reckon cutting the price of fuel rather than regarding it as a goose that keeps on laying golden eggs should be the aim of the Government.
Southland, which turned out to be the original source, and up here near Hastings, this time on a bull beef unit which is when those of us with dairy bull beef realised it could now be any of us. The calves we grow to finishing come from a wide range of farms and regions including Canterbury, Southland and Waikato, where the latest confirmed case has appeared. It’s been a bloody difficult time and challenge for those many farms and people who have had the bacteria confirmed on their property or those who are suspected of having it because of associations and stock movements with confirmed cases. The rural support trusts and other groups are working to help these people but one can only imagine the distress of seeing a herd of cows with decades of careful breeding being sent to slaughter. Our thoughts are with these folk. I have a sheep stud here which has been bred for nearly 50 years and it would be heartbreaking to be in that same boat. Here are examples of how I’ve tried to get my own biosecurity intact. I did have contracted calves from Southland for autumn delivery but the source farm had reared calves in a previous year with milk from a farm now confirmed with M bovis. This line of calves had tested twice as clear so they were then allowed to be moved. However, if I took the calves I could have come under a Notice of Direction if things changed on the rearing property. Even though
I know we are told we should encourage cars to get off the road but I’ve yet to hear a politician say fuel taxes are intended as a tool to change behaviour and stop couples going for a Sunday drive, to get mums and dads to stop taking their kids to Saturday sport or to force commuters onto public transport. However, I have heard economists and others suggesting taxes are needed to force farmers to change their behaviour in regard to the environment. That’s why farmers are now faced with the prospect of water taxes and a fert, not fart, tax as they are taken into the Emissions Trading Scheme. I’m inclinded to believe these taxes are aimed at getting farmers to fit in with the ideology of various groups because they’ve had to come up with ways to spend the money like promises to use it to incentivise compliant behaviour.
WARY: Steve Wyn-Harris refused to take dairy beef calves even though they had twice been cleared of M bovis in a bid to protect his stud sheep business.
These publicised practices are not eliciting any public sympathy towards our sector and making this look like a self-inflicted wound.
MPI says sheep are not involved in transmission I had conflicting advice from AsureQuality. Perhaps the sheep themselves might not be a potential vehicle for transmission but dirt on their hooves or a ute backed up to my race might be. I would have then had to advise my 35 ram clients this coming December that my property was now under a NOD and I wouldn’t have been surprised if some of them, practising good biosecurity measures themselves, politely
This oddly, puts green groups in bed with pure monetarists. They advocate the same thing – using money as a hammer to make farmers do as they are told – but for different reasons. However, in all this the one thing that must be done is to keep in mind the economic viability of the tax victims and the threats posed by continually rising taxes and rates. It was dogmatic adherence to an ideology that caused the former National Party politician Max Bradford to deregulate the electricity industry so prices would be subject to competition. Prices shot up and wiped out the advantage our producers and exporters gained from cheap electricity. Now its the Labour-New Zealand First coalition in league with the Greens having a go. It’s odd that we have a working group looking at
declined further rams from me. I would have honoured my bull purchase contract if I had to but in this case another farmer was more than happy to take these cattle instead. We have had a great autumn and I have a stack of feed but haven’t gone onto the market to buy bulls, preferring instead to feed the heck out of the ones I have. This might be a factor with others as well and contributing to the lower store markets. But more likely it is the seasonal schedule decline while the cow kill is under way, the fact traders are more attracted to the sheep pens with the positive outlook for sheep meat and that the cattle store market has been overheated for a couple of years and is now more rational. I have been annoyed to hear about a black market operating for cows and calves, which has
taxes and the commission at rates. I suspect both these inquiries will end up with a bit of tinkering here and there – some for sound reasons and some for ideological ones. I had hoped when I heard the new Government’s representatives talking abut a bold new future and completely new way of doing things they meant it. They should have rolled the taxes and rates into one inquiry that started from ground zero. The sensible approach would have been to assume councils and government had no money coming in then work out how they could and should get enough to carry out their essential services while not robbing us blind and leaving the productive sector with enough in the coffers to keep on producing. Still, all this is being handled by politicians and bureaucrats so I’m sure it will be all right on the night.
made tracing the disease almost impossible. I must be naive as I didn’t know it was happening. I hope those doing this to avoid tax are taken to task. And, like everyone I know, I’ve gone to great lengths to ensure my Nait records have always been accurate other than the odd farm death not being taken off and now hear that as a sector there’s been a large amount of non-compliance. Both these publicised practices are not eliciting any public sympathy towards our sector and making this look like a selfinflicted wound. I suspect a lot more on M bovis will come out over the next couple of weeks and how we are to deal with it will change.
Your View Steve Wyn-Harris is a Central Hawke’s Bay sheep and beef farmer. email@example.com
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From the Ridge
30 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – May 21, 2018
Buy smarter rather than buying bigger DISRUPTIVE ideas are needed to bring the future technology of farming to the farmgate with producers needing to stop buying big tractors in favour of smarter technology with huge potential in agriculture for automation. Existing farm machinery is not fit for purpose, Harper Adams University head of robotic agriculture Professor Simon Blackmore said. And the more he analysed the systems, the more critical of it he became. “We should ban the tractor and ban the 36-metre sprayer,” he told the Agriculture and Horticulture Development Board food and farming futures conference. Big machinery is damaging the soil and crop protection
technology needs to become more flexible and efficient. And with robotic weeders, which target chemicals only at the weed, he suggested instead of banning chemicals such as glyphosate, the sprayer that wastes it should be banished. He believes the people who will benefit most from disruptive technology will be small family farms. “A lot of smaller farms and small fields are not as efficient as larger farms. “If we have smarter technology they can be,” he said. Precision farming can also cut down on farm waste, harvesting fruit and vegetables only when they are in a saleable condition. Rothamsted Research science
innovation, engagement and partnerships director Angela Karp emphasised the importance of testing technology with farmers to make sure it is wanted and has real applications onfarm because making assumptions can lead to doing a lot of unnecessary work for a product that will not sell. “You can be quite wrong about your assumptions. It is finding that out early enough,” she said. “Design tests. Is it desirable, is it useful, is it viable?” Rothamsted is also opening opportunities to work with farmers and their ideas about technologies needed on farms. Blackmore is speaking with start-up businesses about bringing new technologies onto the market.
GET RID: Ban tractors and 36m sprayers, Professor Simon Blackmore says.
“The big technology manufacturers are not interested. “We are talking about disrupters,” he said. “Robots will be very disruptive but have significant benefits.” Board chairman Peter Kendall said farmers can learn from Dutch attitudes as the industry looks to drive productivity. There seems to be a push back when speaking to farmers about increasing productivity because they think it means more hours. But, on a recent visit to Holland, he found the focus was on making
Minister provokes row over remedies THE row over the use of homeopathic treatments for livestock and pets has been reignited in Britain after the Department of Environment, Food and Rural Affairs said it has no evidence homeopathy is a risk to animal welfare.
The argument that homeopathy endangers animal health is spurious, unsubstantiated and wrong. Peter Gregory Homeopathy Faculty Farm minister George Eustice was asked a parliamentary question by Conservative MP David Tredinnick about whether Defra has any evidence to show homeopathic vets are a risk to animal welfare. Eustice said Defra does not have any evidence. However, Eustice said it should be noted
homeopathic treatments are not subject to the same level of detailed efficacy and safety tests as conventional medicines. Homeopathy Faculty veterinary dean Peter Gregory said Eustice’s answer drove a coach and horses through the stance taken by the Royal College of Veterinary Surgeons (RCVS). RCVS released a position statement in November that said homeopathy is not based on sound scientific principles and to protect animal welfare it regarded such treatments as being complementary, rather than an alternative to conventional treatments. “The argument that homeopathy endangers animal health is spurious, unsubstantiated and wrong,” Gregory said. “In light of the secretary of state’s statement I call on the Royal College to look again at its position on the use of complementary medicines in veterinary practice.” In response, RCVS said it remains the college’s position that while there is no
DOUBTFUL: The Royal College of Veterinary Surgeons says while there is no evidence homeopathic remedies are harmful there is also no evidence they work.
evidence that homeopathic medicines and treatments are harmful in and of themselves, there is also no recognised evidence base regarding their efficacy and homeopathy is not based on sound scientific principles. “As per our statement of November 3, we believe that the risk to animal health and welfare does not come directly from the use of homeopathic medicines or treatments but from their use preventing or delaying the use of medicines or
treatments that do have an evidence base and are based on sound scientific principles. “For these reasons we would reiterate that while homeopathic products can be used, it should be on a complementary basis to conventional medicines and not as an alternative.” More than 18,000 people have signed an online petition in support of veterinary homeopathy since the RCVS published its position statement.
Quick, get on the Fone and get a farm FIFTY new, part-time starter farms are to be made available to new entrants in Scotland. The Scottish government said more than 1000ha of public land will be let out as part of its programme to support young people who want to get into farming. Forestry Enterprise Scotland, Scottish Water, Highlands and Islands Enterprise, East Lothian and Highland Councils will all
release land across Scotland this spring with the hope it can accommodate 50 new farmers. The policy is to offer small farms for a defined period with the intention that successful applicants will be able to build their business experience and capital in that period then move on to a bigger unit at the end. Rural affairs secretary Fergus Ewing said one of the
primary barriers to attracting the next generation is the availability of land so the Farming Opportunities for New Entrants (Fone) programme seeks to develop the opportunities that are available. “With the average age of Scottish farmers at 58 years, attracting new entrants to farming is vital for the longterm sustainability of the industry,” he said. “New entrants drive
innovation and best practice, improve efficiencies and contribute towards the overall economic vitality of the sector.” Fone chairman Henry Graham said “This recent area of land to be released is in addition to the 1400ha that have been let to 35 new entrants on the National Forest Estate since the beginning of the Starter Farm Programme.” UK Farmers Weekly
farming more sustainable and enjoyable. “This does not have to be backbreaking.” At every farm he went to in Holland he was not shown the garden or the house. “They showed me the business,” he said. “The mindset was this is first and foremost a business and I know my numbers.” So British farmers need to accept the numbers and acknowledge they can do better if the industry is to become more productive. UK Farmers Guardian
Eustice coy on veto if food standards drop BRITISH Farming Minister George Eustice has refused to guarantee the devolved regions will be able to veto the entry of hormone-treated beef or chlorinated chicken to the United Kingdom after Brexit. He was pressed on the issue by MPs on the Welsh Affairs Select Committee who asked him several times whether Wales would be in a position to block food imports produced to lower standards during the course of any future trade negotiations. Though he acknowledged there would need to be a role for Scotland, Wales and Northern Ireland in trade talks, he would not be drawn on the specific question of a veto. “When it comes to the devolved administrations, there is clearly going to need to be some kind of mechanism to engage with them, not least because after the passing of the European Union Withdrawal Bill, these key elements of EU law will become UK domestic law,” Eustice said. “It will be unlawful to have hormonetreated beef and it will be unlawful to have chlorine-washed chicken and if we wanted to change
this we would need to repeal that legislation before we would be able to do any trade deals along those terms. “In such a situation there will be a role for both Westminster and probably the devolved administrations as well. “The issue about the way in which devolved administrations will be engaged in trade deals is one which is still being discussed with the Department for International Trade. Eustice also defended the government’s rejection of a Labour amendment to the Trade Bill, which would have ensured EU food safety standards were included in any future deals the UK signed. He told the MPs it was important to face the future rather than cling to the past. “To have an amendment which says we want to hang on to this bit or that bit of EU regulation for eternity is the wrong way to go,” he said. “We have to learn as a country to take responsibility for things ourselves and not always think we need the EU to tell us what to do. “This is a cultural shift for us as politicians but also for our civil service.” UK Farmers Guardian
THE NZ FARMERS WEEKLY – farmersweekly.co.nz – May 21, 2018
Farmers must not be ignored
GET IN BEHIND: Farmers have to showcase the work they are doing to increase public understanding and get behind the British brand for the food they produce, National Farmers Union president Minette Batters says.
the National Health Service, infrastructure and housing. “My plea to Michael Gove is to take a commercial look at this and view it as a business proposition because it has to be, otherwise you are not doing justice to the environment, farmers, consumers, Britain and the government. “We are all losers if you do not have a commercial business focus to deliver this green Brexit.”
Farmers are valued for the work they do but we are an industry which is often under attack. Minette Batters National Farmers Union The Wiltshire beef and sheep farmer said the sector needs to be far more joined up on the image of rural Britain, adding “You have a government consultation at the moment where they refer to rural as upland. “Rural Britain is 70% of the United Kingdom and it is not just about the uplands. We have to make the case for the whole country and not allow this division of upland is rural and lowland is not.” The industry is guilty of talking a lot of jargon noone understands and there
is a need for slightly softer messaging on the work farmers do but with the power of a non-governmental organisation, she said. “Farming is well understood by farmers but not by other people. “This matters when it comes down to talking about what we are delivering. “Most people have no idea about the 30,000km of new hedgerows we have planted, the 27,000km of grass margins we have created, the 2700km of actively maintained stone walls. “When I speak to members of the Cabinet they do not know that.” Vocalising British farming values, including high-quality and standards, is also critical in negotiations around trade deals and organisations, including the NFU and Agriculture and Horticulture Development Board, must show a united front. “We need to get behind one British brand identity. We cannot keep on with these little ad hoc messages which are competing. “There is a lot to be learned from the Republic of Ireland where retailers will tell you they get one message but out of the UK they get various messages because it is so fragmented. “UK sovereignty means we must have a British brand identity which I believe must be underpinned by British farm assurance. This will be our unique selling point.” Addressing recent criticism of AHDB by farmers she said “If we got rid of it today
we would be reinventing it tomorrow. “It is about making sure it is fit for purpose and ready for new challenges. “It is an arm’s length government body so everybody is slightly constrained by the framework they have found themselves working in. “I think we need a real, ambitious look at what it is going to be doing in future.” Mudslinging within the industry also had to stop, Batters said, highlighting calls from some corners to end the use of chemical fertilisers. “We would halve our production. “It is a sad state of affairs when others (in the industry) come along and try to rubbish conventional farming. “Throwing other farmers under the bus is something I find abhorrent.” She urged the government to allow farmers to be empowered to design and deliver agricultural reform. “I do not think farmers are focused on the money. “The issue is having an enabling environment in which to run a business and a government which is ambitious about having an enhanced reputation for British food. “We have every think tank in London wanting to engage with us and most will never have even set foot on a farm. “Trust farmers, work with farmers, see farmers as the solution and it will drive the change,” Batters said. UK Farmers Guardian
agrievents AWDT Understanding Your Farming Business 3 full-day workshops and an evening graduation ceremony run over four months Greymouth: 16/05/2018 Fox Glacier: 17/05/2018 Contact: email@example.com or 06 377 4560 Website: To register for the programme go to http://www.awdt.org.nz/programmes/ understanding-your-farming-business/ AWDT Wahine Maia, Wahine Whenu 3 full-day workshops and an evening graduation ceremony run over four months Masterton: 22/05/2018 Contact: firstname.lastname@example.org or 06 377 4560 Website: To register for the programme go to http://www.awdt.org.nz/programmes/uyfb-wahinemaia-wahine-whenua/ Wednesday 13/06/2018 to Saturday 16/06/2018 National Agricultural Fieldays Venue: Mystery Creek Events Centre, Hamilton We look forward to seeing you at Fieldays from Wednesday, 13 June to Saturday, 16 June, 2018. Gates open daily Wednesday to Friday 8am to 5pm and Saturday 8am to 4pm. Fieldays Tickets: Adult General Admission 1 Day – $30.00 Child* (5-14 years) General Admission 1 Day – $15.00 *A child is 5 years to 14 years. If you are 15 on the day of the event you are classed as an adult Child (under 5 years) – Free Should your important event be listed here? Phone 0800 85 25 80 or email email@example.com
SHOWCASING the lengths farmers go to producing healthy and nutritious food while nurturing Britain’s extensive landscapes has never been more important as the country prepares to take back sovereign control of its agricultural affairs. Adding her name to the list of big-hitting supporters of Farming: The Backbone of Britain campaign, National Farmers Union president Minette Batters said the industry is gaining more public support year on year but it is absolutely crucial to promote the industry with a united message. “If we look back, I think we can all say we should have done so much more. “Farmers are valued for the work they do but we are an industry which is often under attack. “We have been very reactive in the past and we need to be far more proactive so this sort of campaign is very important.” While the industry is sometimes maligned, despite farmers’ efforts to communicate with the public it is the minority who are most critical and it is important not to engage in online vitriol that gives the anti-farming brigade oxygen. “I was speaking to a farmer who said she had put a video of her son on Twitter putting some sheep out in a little trailer and she had about one million likes then six people went for her and said her children should rot in hell so she took the video down. “We have to be careful not to let a few people undermine our image because we have a very good one should keep pushing those positive messages. “It is all about showcasing what we are doing onfarm.” It is crucial for industry to reposition itself in the eyes of policymakers where there had been little focus on food. “If we are not producing food, we are not farmers,” she said. “This has to be better understood across Government. We have to have a thriving, profitable, agricultural sector if we are going to do any of the environmental work.” She called on the Department of Environment, Food and Rural Affairs to see agricultural policy reform as a commercial business opportunity to deliver its green Brexit, with farmers being trusted to deliver key aims. Failing to keep the farming industry’s role at the forefront of ministers’ minds would risk financial support being swallowed up by other public sector priorities, such as
bayleys.co.nz Contributor to realestate.co.nz
FARMERS WEEKLY – May 21, 2018
farmersweekly.co.nz/realestate 0800 85 25 80
TRANSFORMING REAL ESTATE INTO REAL ADVANTAGE FOR SALE
WAITARERE FOREST WAITARERE BEACH, Levin, SNI Region
FELTON ROAD FOREST FELTON ROAD, Mossburn, Southland
Boundary lines are indicative only
1,763HA PRODUCTIVE AREA MIXED AGE CLASS
IMMEDIATE HARVEST VOLUME FREEHOLD LAND IN SOUTHLAND
Waitarere Forest represents an outstanding opportunity for purchasers looking for a high performing yet simple to manage forest.
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DEADLINE EXPRESSIONS OF INTEREST Friday 1 June 2018 at 4.00pm
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Felton Road Forest represents a great opportunity for a purchaser to secure a first rotation forest in the heart of Northern Southland. 125km to South Port and numerous processing facilities located in close proximity, means this forest is well positioned to take advantage of both domestic and export markets. With freehold land and trees available the successful purchaser will have options post-harvest so call today for further information.
+ 134 ha freehold land + 98.7 ha forest 19 - 25 years old + Ground based harvesting + Metal on site + Post 89’ land with ability to earn carbon credits + Available as Cutting Right only if required + Inventory Available DEADLINE TENDER Friday 8 June 2018 at 4.00pm JEREMY KEATING 021 461 210
www.propertyconnector.co.nz/212842Q28 CBRE (Agency) Limited, Licensed Real Estate Agent (REAA 2008)
THE DESTINATION FOR RURAL REAL ESTATE Land is the biggest asset to any farming business so it pays to stay up to date with the market.
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farmersweekly.co.nz/realestate 0800 85 25 80
FARMERS WEEKLY – May 21, 2018
CHOOSE THE FARM’S FUTURE
• Situated in Konini, Pahiatua is this quality 66 hectare dairy farm with excellent soils. • Very nice four bedroom family home set in lovely grounds. • Current dairy infrastructure includes a modern herringbone dairy with a 300 cow yard. • Currently supplies Open Country, has produced up to 1220 kgs/ms/ha consented for dairy farming. • Shedding includes machinery shed and calf rearing facilities. • Your opportunity to own this outstanding dairy farm. Call Les.
• Situated due North of Foxton Township and North West of Foxton Beach is this premium 110 ha of flat to gently undulating sand-flats. • Planted in 25 year old pine trees which are currently being harvested and expected to be ready for you to de-stump and develop into permanent pasture at your leisure. • Two good driveway accesses and 7-8 wire post and batten road and boundary fencing. Great Wylie Road access and golf course views. • Your chance to own this great investment opportunity. For sale by Tender closing Wed 30th May at 2pm (if not sold prior). Call Les.
OUTSTANDING DAIRY FARM
BELLA VISTA OLIVES
• Situated in the farming district of Konini south of Pahiatua is this 153ha property in five titles, can be split into three properties. • Modern 30 aside herringbone dairy positioned in the middle front of the property, which suits a split herd system. Consented for intense agriculture and some of the best river silt soils in the area. • Excellent race system and upgraded effluent system. • Two well maintained family homes set in their own grounds. • Truly a turn key operation, with a June 2019 settlement available. • Plan your next step into a top operation. Call Les to inspect.
• Situated only minutes from Foxton Village is this quality 2.75 hectare lifestyle property with excellent sandy loam soils. • There are 600 mature olive trees on the property planted in 2002 with this seasons crop still to be harvested • Large modern five bedroom family home with outstanding indoor/ outdoor living featuring an in ground swimming pool. • With the fifth bedroom set up as a separate unit this would be great for extended family or Air B&B. • Call Tina on 022 697 2479 to inspect.
DAIRY FARM WITH OPTIONS
• Situated on Rangitikei Line west of Palmerston North is this 91 ha parcel of land with option to purchase the adjoining 40 ha. • Exceptional soils that are currently used for dairy farming and growing maize, but would suit a number of uses. • Deep lead irrigation bore to supply top quality water for up to 70 ha. • Current dairy infrastructure in place including a modern 30 aside herringbone dairy and 400 cow feed pad. • Very good road access with central laneway system. • Call Les to inspect.
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Situated at Makomako, midway between Palmerston North and Pahiatua, is this fantastic dairy run off. There are 115 acres of very good volcanic soil of which 75% is mowable, with high pressure water to the stock troughs. Facilities include a two stand woolshed, good cattle yards. Currently used as a dairy run off to winter cows, run replacements and grow silage and hay. Great chance to own very productive land in the Tararua District. Call Les to inspect
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Licensed Agent REAA 2008
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HISTORIC TYNESIDE- ATTRACTIVE SCALE, LOCATION AND BALANCE 1052 Te Wharau Road / Ruakiwi Road, Carterton, Wairarapa Tyneside has been farmed by the Duffy family since 1946 and presents an opportunity for those looking for a smaller sheep and beef unit in a desirable district being 20 minutes equidistant to Carterton and Masterton. Tyneside is 335 hectares that is well balanced with around 40 hectares that is fertilised by truck and the balance mainly medium hill on a mix of mudstone and limestone soils. Subdivided with permanent fencing into 33 main paddocks and 15 holding paddocks there are around 320 effective hectares. An oak lined driveway leads to the large character 1920Â´s four bedroom Tyneside homestead, set in mature grounds including a tennis court. Other buildings include an older three-bedroom cottage, four stand woolshed, covered yards, stables, hayshed, and central cattle yards. A second block, Moons, is located 5km from Tyneside on the Ruakiwi Road. Moons is 155-hectare hogget block with around two thirds effective grazing land, the balance is a mix of attractive bush and some scattered scrub. There is a set of combination sheep and cattle yards and it is subdivided into six paddocks, with natural water sources and dams. Moons has a real X-factor and features a 100-foot waterfall and hunting opportunities. The vendorsÂ´ intention is to sell the whole property, as one, or separately offers will be considered for each block individually. Sound like you? - give Blair a call today to arrange an inspection - a detailed property report is available.
FARMING, BEES AND HUNTING 724 Ruatiti Road, Raetihi - www.nzr.nz Ref: RX1482703 A versatile 371 ha property to be offered by way of auction in two options. The Farm Block - A 290ha farm currently operating as a dairy support block and with all the attributes to keep it status quo or further develop into a solid fattening/ breeding unit. The Recreational Block - A 81ha block offering potential as a lifestyle or recreational hunting block with an option for beekeeping. An older style villa is set amongst mature gardens and overlooking the trout filled Orautoha mountain stream. Auction (unless sold prior) 11am, 14th June 2018, 1 Goldfinch Street, Ohakune.
371 Hectares Auction nzr.nz Ref: RX1482703 Jamie Proude 06 385 4466 | 027 448 5162 firstname.lastname@example.org Juliane Brand 06 385 4466 | 027 515 5581 email@example.com NZR Central Limited | Licensed REAA 2008
490 hectares (335ha & 155ha) Video on Website nzr.nz / RX1456847 TENDER Closes 4pm, Thurs 14 June 2018 NZR Office, 16 Perry St, Masterton Blair Stevens AREINZ 06 370 9199 l 027 527 7007 firstname.lastname@example.org NZR Real Estate Limited | Licensed REAA 2008
farmersweekly.co.nz/realestate 0800 85 25 80
FARMERS WEEKLY – May 21, 2018
New Zealand’s leading rural real estate company RURAL | LIFESTYLE | RESIDENTIAL
66 Colebrook Road Total Area - 11.6993 Hectares • 4.02ha G3 Gold • 4.36ha Haywood Green • Gold canopy ranging from mature to just grafted • Property is all on pergola with strip males • Good shelter and underground drainage • Braemar water and toilet facilities • Handy to Edgecumbe and 5km from the coast pggwre.co.nz/WHK28203
Trees, Bees, Beefies and Hunting!
Whakatane $4.98M Plus GST (if any)
Stewart Morrison B 07 307 1619 M 027 442 2833
• 375ha (more or less) - what more could you want? Whakatomotomo Rd, Pirinoa • Plant more trees, add more hives, graze stock or go hunting - all bases are covered • Approx. 23ha in three woodlots planted 1993, 1999 & 2003 plus another 33ha planted 2011, 2013, 2016 • Two levelled beehive sites with more options available and a good set of cattle/sheep yards • Excellent quad bike access with the balance of the property steep to rolling grazing, giving plenty of scope for investment and income pggwre.co.nz/MAS28242
South Wairarapa AUCTION Plus GST (if any) (Unless Sold Prior) 11.00am, Tuesday 12 June Pirinoa Hall, Lake Ferry Rd, Pirinoa VIEW 11am-2pm, Thurs 24 May Flagged at Whakatomotomo Rd
Bevan Edwards B 06 370 1889 M 027 204 2895
PGG Wrightson Real Estate Limited, licensed under REAA 2008
New Zealand’s leading rural real estate company
Lifestyle / Grazing Block 9.799 hectare grazing/lifestyle block Set on a stunning elevated site on the edge of Palmerston township is this lovely four bedroom brick home master bedroom with en-suite plus office, double attached garage, another two car garage and workshop plus additional carport. Surrounded by beautifully maintained established gardens and large sweeping lawns. Water is supplied by town supply scheme. The property is in two titles so has the option to be sold as one or the house title plus a separate bare land block with building platform.
pggwre.co.nz/DUN28240 PGG Wrightson Real Estate Limited, licensed under REAA 2008
COASTAL SANCTUARY WITH INCOME POTENTIAL
95 Wyuna Bay Road, Coromandel
AUCTION Plus GST (if any) (Unless Sold Prior) 2.00pm, Thursday 14 June
Paul Thomson B 03 470 0332 M 027 435 3936
• Spacious open plan living and family room • Harbour coastline reserve boundary • 3 bedroom home and separate 2 bedroom studio • Land 4021 m2, dwelling approx. 244m2, studio approx. 87m2 • Privacy, space, views, income potential / Robyn Stewart
Licensed Salesperson Mobile: 021 448 975 Office 07 866 8900 www.richardsons.co.nz www.richardsons.co.nz/RC4311
High Producing Gold Kiwifruit Orchard
www.drench.co.nz farmer owned, very competitive prices. Phone 0800 4 DRENCH (437 362).
ANIMAL SUPPLEMENTS APPLE CIDER VINEGAR, GARLIC & HONEY. 200L - $450 or 1000L - $2000 excl. with FREE DELIVERY from Black Type Minerals Ltd www.blacktypeminerals. co.nz
ATTENTION FARMERS www.gibb-gro.co.nz GROWTH PROMOTANT $5.85 per hectare + GST delivered Brian Mace 0274 389 822 07 571 0336 email@example.com MANUKA SITES REQUIRED in the North Island. Top dollar paid to land owners. Proven performers with sound experience in the industry. Interested in building long term relationships. Contact 027 826 6278 or email: firstname.lastname@example.org
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5-MONTH-OLD Heading pup, very well bred and well grown. Phone 06 388 0212 or 027 243 8541. BUY BACK ANY DOG we Sell*, 30 Day Exchangeable Trial. Shipped to you NZ wide. Trade ins welcome. Forty dogs in stock. $500$2500. 07 315 5553. Hughes Working Dogs. HEADING BITCH 12 months old. Plain eyed under basic command. Keen on cattle. $800. Phone 06 322 9855. HUNTAWAY PUPS, 8 weeks. Well bred from working parents. $350. Phone 07 825 6850. Waikato. SMITHFIELD PUPS from old working lines. Bob tail and long tail available. $400 each. Phone Hayden 027 255 7217.
NATIVE FOREST FOR MILLING also Macrocarpa and Red Gum, New Zealand wide. We can arrange permits and plans. Also after milled timber to purchase. NEW ZEALAND NATIVE TIMBER SUPPLIERS (WGTN) LIMITED 04 293 2097 Richard.
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.
GRAZING WANTED URGENTLY REQUIRED. Grazing for at least 6 months for 19 in-calf Beef cows due approximately September. Manawatu district preferred but will consider elsewhere. Phone 06 362 7893 after 5pm. Genuine enquiries only please.
LIVESTOCK FOR SALE
12 MONTHS TO 5½-yearold Heading dogs and Huntaways wanted. Phone 022 698 8195.
B R O O K L A N D SIMMENTAL, LBW, short gestation, bulls, suitable for beef and dairy. EBV’s available. Phone 06 374 1802. HEREFORD HEIFERS PTIC to angus bull and BVD tested $1400 ono + GST, Southland. Phone 027 296 2750. NILB LIMOUSIN BULL sale. 7 June 2018, 1 pm. View 16 R 2YO bulls from noon. 234a Te Tuhi Road, Matamata 3471
BUYING NZ WIDE. Running, Handies, fully broken. No trial or breeding required! No one buys or pays more! 07 315 5553. Hughes Working Dogs. TRAINED HEADING dog or Huntaway wanted. North Island. Phone 027 800 6769.
HOUSE FOR REMOVAL wanted. North Island. Phone 021 0274 5654. BOOK AN AD. For only $2.10 + gst per word you can book a word only ad in The NZ Farmers Weekly Classifieds section. Phone Debbie Brown on 0800 85 25 80 to book in or email email@example.com
PUMPS 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 firstname.lastname@example.org
WANTED TO BUY
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.
NZ MADE BOOTS
Visit www.lastrite.co.nz for more quality products Workman Safety Boot is another heavy duty construction boot for the tough jobs. Thick full grain leather upper, with a stitched and screwed construction insole to mid sole secured to a rugged JB Cleated replaceable sole.
Heavy Duty Yardmate Boot – Great heavy duty boot, perfect for farmers, heavy industrial workers, builders, fencers etc. With an upper constructed from thick full grain leather, an insole and mid-sole which are brass screwed and stitched.
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Southland Alliance Group is New Zealand’s only major red meat co-operative, owned and supplied by skilled and passionate Kiwi farmers. We’re committed to being a global leader in procuring, processing and marketing the world’s best quality red meat products. By putting farmers at the heart of everything we do, we understand what’s important to our people throughout the entire supply chain.
Friday Friday 8th 8th June June 1.30pm 1.30pm on on farm, farm, Pahiatua Pahiatua
The Co-op procurement growth strategy is centred on adding extra value to our farmer suppliers. We now offer many new benefits both directly and through our business partners. These include access to information around international market trends, yield improvement advice, financial offerings, video imaging analysis and other technologically advanced tools. As a part of the Alliance team, we can offer you an opportunity to work in a technology-focused, top end finished product environment, where you can add real value to your farmer clients. Because Alliance is 100% NZ owned, the co-op direction is transparent, providing genuine job security. To support the growth of Alliance’s business, we now wish to appoint a Southland based Cattle Specialist to join our Livestock team. The purpose of this role is to provide overall management of Alliance’s Prime and Manufacturing cattle category to achieve agreed regional volumes. You will build strong relationships with suppliers, plus work closely with our cattle farmer key account clients. Strategic planning, procurement and leading your peers to deliver on regional plans will be your focus. Competencies required to be successful include: • An eye for cattle and a good understanding of livestock farming systems • Some experience with category or product management – any ag industry • Ability to influence peers in a positive and productive manner If becoming a senior member of the Alliance team is your goal, this role will be a great steppingstone in your career path. To discuss this role in confidence, please phone Deb Francis on 021 224 5000. Otherwise, send your CV with covering letter via www.agrecruit.co.nz by Thursday 31 May.
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Have something to sell? Advertise in Farmers Weekly
Cattle Specialist Southern Region
36 36 BULLS BULLS Totaranui Angus sale bulls avg
2018 Breed avg
Angus Pure index
Self replacing index
600-day weight EBV
•• BVD BVDtested testedand and vaccinated vaccinated •• C10 C10status status •• Carcase Carcasescanned scanned •• Independently Independently assessed assessed •• i50k i50k
www.totaranuistud.co.nz www.totaranuistud.co.nz Email Emailfor foraacatalogue: catalogue:email@example.com firstname.lastname@example.org
We specialise in agri-business
DOGS FOR SALE
DOLOMITE, NZ’s finest Magnesium fertiliser. Bio-Gro certified, bulk or bagged. 0800 436 566.
CRAIGCO SHEEP JETTERS. Sensor Jet. Deal to fly and Lice now. Guaranteed performance. Unbeatable pricing. Phone 06 835 6863. www.craigcojetters.com
50 PURE BRED SUFFOLK ewe hoggets. MACHINERY. 4F Clough plow. 3F R&G plow. 10ft American line discs. 20 run Duncan drill. New Holland hay baler. Flail mower. UFO single drum mower. Bamford Wuffler. Back blade. Special 24 springtine cultivator. 8m wide tine harrows. Heavy and light chain harrows. 1200L trailed pasture sprayer and water blaster. Cambridge roller and seed box. Contact John Cowper (retiring) 06 327 3729.
Daimien Daimien&&Tally Tally 06 06376 3768400 8400 Pierre Syben
Pierre Syben 027 625 9977 027 625Crooks 9977 Mark PGG Wrightson
Mark Crooks 027 590 1452 PGG Wrightson Chris McBride 027Carrfields 590 1452
Chris McBride 027 565 1145 Carrfields 027 565 1145
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
email@example.com – 0800 85 25 80
FARMERS WEEKLY – May 21, 2018
firstname.lastname@example.org – 0800 85 25 80
FARMERS WEEKLY – May 21, 2018
LONGVIEW SHORTHORNS FOR SALE
STOCK REQUIRED STORE LAMBS 28-36kgs
10 Bulls and 35 In-Calf Heifers
SIL & RWR 1YR & MA EWES 18MTH FRIES BULLS 400-480kgs
18MTH A. AX STEERS 380-430kgs HEIFER CALVES 230kgs+
KAIKOHE SALEYARDS – Wed 30 May, 11.30am Please call for a catalogue
a/c Woodvale Holsteins, M.Wood,
Shane and Dot Dromgool BAY OF ISLANDS, NZ
Tuesday 29th May 2018, 11.30am at
P: 09 401 9633 M: 021 0295 2030 or 021 181 2922 E: email@example.com Carfields agent: Neil Miller 027 497 3492
Rongotea Selling Complex 180 – 200 Friesian & pedigree Friesian cows
View video of Bulls on Facebook @ Longview Shorthorns - Bay of Islands www.dyerlivestock.co.nz
Ross Dyer 0274 333 381
Friesian bull (out 23/12)
A Financing Solution For Your Farm E firstname.lastname@example.org
VIC due from 1/8 AB 3 weeks, tailed
0800 85 25 80
POLLED & HORNED HEREFORDS
Cows come forward in good condition.
Sale catalogues available on request
from agents. Buyer rebate available
with prior arrangement. Selling companies:
SATURDAY 26th MAY 2018
Bulls for sale by Private Treaty until 10th June
NZ Farmers Livestock in conjunction with Brian Robinson Livestock Ltd. Enquiries:
M a h i t a h i , S o u t h We s t l a n d
David & Robert Scott
Wayne & Maggie Williams
GLACIER HORNED HEREFORDS
Karangarua Phone David (03) 7510898 or Robert (03) 7510797
Phone (03) 7510826
Phone (03) 7510864
Anita Erskine, Westwood, Papatotara, Tuatapere RD 9691 Phone: 03 226 6713 Email: email@example.com (Or PGG Stud Stockman Callum McDonald 027 433 6443)
All bulls’ blood tested negative for BVD and vaccinated, TB C10
LIVESTOCK ADVERTISING 0800 85 25 80
DAIRY COWS & HEIFERS FOR SALE
COMPRISING OF: •
200 in-calf Fsn and FsnX cows
BW 60, PW 117, R/a 70%
DETAILS: Calving from 20 July to LIC Nominated 4 weeks
Tailed off Hfd and Fsn bulls – out on 5 Jan, HB shed
TB C8, vaccinated for lepto, BVD clear
PAYMENT TERMS: 14 days from auction. Catalogues available from auctioneers or online.
Steep to rolling contour, cows in All cattle dryed off end April, and blanket dry cow treated, cows in great order
FARM SOURCE LIVESTOCK AGENTS: Pat Sheely 027 496 0153 or Kelly Higgins 027 600 2374
230 Fsn capacity herd, 530ms/cow, calv 25/7, CRV bred, top farmer, BW 20, PW 38, R/A 82%, $1700. Jack 027 823 2373
137 Fsn content of 400 cow herd, BW 55, PW 60, R/A 87%, calv 20/7, 390ms/cow, $1700. Jack 027 823 2373
107 Fsn/FsnX in-calf hfrs, BW 75, PW 80, in-calf to Jsy from 25/7, well grown, $1250. Trevor 027 283 8389
90 R 1yr Fsn hfrs, BW 90, CRline, well grown, $800. Mike 027 674 1149
120 computer split of 500 Jsy/JsyX herd, BW 80, PW 90, calv 27/7 to LIC PSS, well farmed herd, $1600. Ben 027 702 4196
EARN FARM SOURCE REWARD DOLLARS ON ALL FARM SOURCE LIVESTOCK PURCHASES & SALES* T&Cs apply. See nzfarmsource.co.nz/rewards
firstname.lastname@example.org Stuart Robbie 027 8484 408 Donald & Marlene Robbie 06 376 7250
RANUI Bull Sale
3.00pm Thursday, 7th June Karamu, 662 Rangitatau East Rd,Wanganui • • • •
120 Fsn herd, owned & bred LIC 40 yrs, poor recording, 25/7 calv , hard farm, $1350. Brian 027 244 0845
Fully Guaranteed Service & Semen Tested TB Clear C10 EBL & BVD Tested & Vaccinated Free Delivery (NI)
DAIRY COWS & HEIFERS FOR SALE •
12 noon, On Farm Tiraumea
MACHINERY: 10.30am Silvercut Disc Mower 380s, 3m rototiller, Swather rack stock crate, Hooper Hyd Tandem Discs, Kuhn teddar, Duncan6 furrow plough, Giltrap6f plough, Giltrap cntr feed M90 wagon, 4m power harrows, 60t Mobile feeder, Vicon RV 126 Belt baler, International tractor, 100hp Fiat motor+rovatti, Eff pump, Massy Fergusson 35 dsl tractor, Giltrap M90 10cube side feeder, Massey Ferg 7614 plus fel, 25,000lt molasses tank, Bobby pen, Hatzenbichler 3m roller, 165 Ferg, Deutz-Fahr 150hp Agrotron tractor, BVL mixer wagon, Hooper off set 3m discs, 1000lt towin fert, plus other sundries
Bull Sale – 5th June
GREAT AUCTION OPPORTUNITY BEST 200 COWS BEING SOLD FROM 770 HERD FULL RANGE OF FARM MACHINERY DATE: Thursday 24 May, 2018 ADDRESS: Te Kopia Road, Waikite Valley, South Rotorua START TIME: 10.30am (machinery sold ﬁrst) VENDORS: Bella Ridge Farms Ltd - D/C no 78775
Selwyn Donald 0274 378 375 Brian Robinson 0272 410 051 Neil McDonald 0272 188 904
See www.shorthorn.co.nz to view bulls for sale
Emmet McConnell 0274 437 671 Malcolm Coombe 0274 326 104 Richard Trembath 0274 993 992
190 R2YR ANG HEIFERS – SIC ANG 15 Dec 450kgs
All bulls are semen and service tested Scanned for carcase Independently inspected Cow herds run under commercial conditions
• • • •
Bulls displayed on concrete Hard surface in sale ring. Feet visible BVD Tested Antigen Clear & Vaccinated 3-year Guarantee for soundness & fertility
“Internationally proven from sea level to snow line” Enquiries to: Lin Johnstone Phone: 027 445 3213 Lindsay Johnstone Phone: 027 445 3211 email@example.com PGG Wrightson Agents Callum Stewart Ph: 027 280 2688 Ken Roberts Ph: 027 591 8042
Sale Catalogue online: www.ranuiangus.co.nz
“Doc,” says Steve, “I want to be castrated.” “What on earth for?” asks the doctor in amazement. “It’s something I’ve been thinking about for a long time and I want to have it done” replies Steve. “But have you thought it through properly?” asks the doctor, “It’s a very serious operation and once it’s done, there’s no going back. It will change your life forever!” “I’m aware of that and you’re not going to change my mind — either you book me in to be castrated or I’ll simply go to another doctor.” “Well, OK.”, says the doctor, “But it’s against my better judgment!” So Steve has his operation, and the next day he is up and walking very slowly, legs apart, down the hospital corridor with his drip stand. Heading towards him is another patient, who is walking exactly the same way. “Hi there,” says Steve,”It looks as if you’ve just had the same operation as me.” “Well,” said the patient, “I finally decided after 37 years of life that I would like to be circumcised.” Steve stared at him in horror and screamed, “Shit! THAT’S the word!”
THE NEW ZEALAND FARMERS WEEKLY – May 21, 2018
firstname.lastname@example.org – 0800 85 25 80
FROM THE NOTED COUNTRY CALENDAR DIRECTOR RICHARD LANGSTON AND HIS CREW
Maungahina ANNUAL BULL SALE:
Sale date 7th of June 1pm
at Maungahina Homestead. 111 years breeding.
FRIDAY THE 1ST OF JUNE 12 noon
38 BULLS INCLUDING:
A hill country classic.
Maungahina Storm (sons in Sale) 7TH ANNUAL ON PROPERTY BULL SALE @ 3PM GISBORNE.
JUNE 5TH w w w. h a i n . c o . n z
SAM, GEMMA, LILLA & TOM HAIN SID & MERRAN HAIN
Lot 44 Wairarapa Angus Bull Walk Thursday the 17th of May
35 polled Hereford bulls - 5 Horned Hereford bulls - 14 Charolais Bulls - 15 Speckle Park Bulls - 8 pure breed elite yearling Speckle Park Heifers - 10 commercial Hereford/ Speckle Park 20 month Heifers Elite Speckle Park Embryo and Semen Packages
Enquiries and viewing welcome, contact:
13 Bulls available for sale
Neil & Joan Kjestrup 06 372 2838
Rod & Sam Kjestrup 06 372 2495
Check us out on Facebook: KayJay Angus
Ph Mark or Bruce Mckenzie: 027 415 8696 or (06) 377 4836
Email: email@example.com www.maungahina.co.nz
Tuesday 4 July 2017 Phone 07 894 6030, Taumarunui th
Inaugural Rauriki Charolais Bull Sale 20 R 2 Charolais Bulls
20 18 Th ur sd ay 7t h Ju ne at 1.oopm on farm nds Waitangi, Bay of Isla Contact John & Joss Bayly Ph: 0274 743 185
The bulls will be penned at the selling complex for inspection on sale day. Contact: Simon: P 06 858 8045 M: 027 636 3243 Wendy: P: 027 280 3471 email: firstname.lastname@example.org
BULL SALE RESULTS 2018
‘On Farm Video Charolais Bull Sale’ is Tuesday 29th May at 11am Viewing 9-11am
35 GENUINE HILL COUNTRY BULLS ON OFFER Monday 28th May 2018 at 1pm Contact: Paul and Claire Grainger 07 878 6458 – 027 209 1959 email@example.com
Annual Bull Sale Alan & Val Park
973 Troopers Road, Te Kuiti
ALL BULLS BVD TESTED AND VACCINATED TWO SEASON FOOT GUARANTEE
Farmers Weekly will be launching Bull Sale results e-Newsletter from the 25th May. Contact Nigel on 06 323 0761, 027 602 4925 or firstname.lastname@example.org to sign up or feature your sale results and receive weekly updates today.
Check bulls on www.shorthorn.co.nz (refer to “Sale Catalogues”)
On-farm Sale Est 2003
❱ Agent enquiries and inspection always welcome ❱ Can be used as a terminal sire. Will make off spring quiet ❱ BVD tested clear and vaccinated ❱ Tb status C10
KIA TOA CHAROLAIS
email@example.com – 0800 85 25 80
FARMERS WEEKLY – May 21, 2018
3 Capital Lines of incalf heifers
For over 80yrs Hingaia bulls have been standing up to the demands of the industry
Buying or Selling Dairy Herds or support Stock?
On-Farm Clearance Sale Farm Sold 799 Makomako Rd, Pahiatua Supply No 46855 Date: Wednesday 23rd May 2018 Start Time: 11.30am
FRN/FRNX Well grown 135
We specialise in both on farm sales and auctions.
Vendor: ROC Dairies Ltd David & Louise Powick Comprising of: 125 Frsn/Xbred 2 - 8yr in-calf Cows BW78 PW111 RA82% 25 Frsn/Xbred Sound Older cows 25 Frsn/Xbred younger carryover cows VIC, 6 weeks AI to Frsn, DTC 1st August 2018 Tailed with Hereford, Bulls out 2nd Jan Compact calving, only 17 I/C to Hereford.
With 60 Dairy agents from Kaitia to Bluff and everything in between.
All enquiries to: Graham Brown 027 271 4722 or Sam Arends 027 343 3529
Constitution Fertility Longevity Soundness Balanced EBVs
BW 86 PW 91
105 BW 17 PW 118
147 Hingaia Road, Te Awamutu - 3.30pm
Phone: 03 230 4308 or 027 230 4308
INSPECTION AND VISITORS ALWAYS WELCOME
Annual Bull Sale Tuesday 29th May 2018
for our extensive listings Alternatively contact: Paul Kane 027 286 9279 (North Waikato/ Northland) National Dairy & Live Export Coordinator
Richard Jolly 147 Hingaia Road, RD4, Te Awamutu 3874 Mobile: 027 499 7159
Andrew Jolly Mobile: 027 562 7740
Philip Webb: 027 801 8057
Andy Transom, PGG Wrightson Ltd Mobile: 0275 965 142
0800 85 25 80
Central & Southern NI Dairy Coordinator
PETER & CAROLINE FOSS
R.D. Aria, King Country Ph/fax (07) 877 7881 firstname.lastname@example.org
Sound well fleshed sires, Excellent temperament Fully breedplan recorded on Commercial hill country 20 Bulls Catalogued
ON FARM SALE JUNE 6 AT 1PM
27TH ANNUAL SALE
at Kairuru,28Reporoa (midway Rotorua – Taupo) R2YR BULLS
26th March at 1:00pm
See for yourself the quality of bull we sell at Hingaia
GET THE WHITEFACE ADVANTAGE
Yearling bulls are also available in September
“A balanced breeding programme for all environments”
Contact your local Carrfields agent
Details: Top quality, high producing, handpicked, low input herd, farmed at the base of the Tararua Ranges 20kms west of Pahiatua. With BWs up to 147, PWs up to 358 and a 3-year average per cow of 460/ms, SCC 148000, these cows will perform anywhere. Dried off 11/5, Blanket dry-cowed with Orbenin All herd test, and herd records available on the day or contact the Carrfields agents listed below. Payment: 1st June 2018 unless prior arrangement has been made with Carrfields Livestock. Delivery: Immediate, or 31st May by arrangement
A personalised purchasing arrangement to suit your needs
BW 84 PW 102 DNA tested
ANNUAL SALE THURSDAY 7TH JUNE 1PM, TE KUITI SALE YARDS
BULL OPEN DAY ALL ENQUIRIES WELCOME WEDNESDAY 30TH MAY 1 - 5PM
KEVIN & JANE MCDONALD (REPOROA) 07 333 8068 • 027 451 0640 JEFF & NICOLA McDONALD 021 510 351 • kairuruNZ@gmail.com
Red, White & Roans of our world
• 750 Cow herd selection pressure • Extensive performance recording • Balanced performance figures • Bulls health, service and semen tested
SALE DATE: Thursday June 14th, 2018 @ 1.00pm 66 Rising Two Year Bulls On farm auction Fred, Chris, Jennifer Chesterman & Family @ 811 Maraetotara Road, RD12, Havelock North 4294 Ph: 06 874 7844 or 06 874 7728 Mobile: 0274 888 635 or 0274 777 637 Email: email@example.com
BULLS WITH SCALE – TEMPERAMENT – SOUNDNESS – CONSTITUTION – FERTILITY
2nd Annual Bull Sale 13th June 2018, 1.30pm
On Farm Bull Sale
Held under cover on farm 2354 Rangiwahia Rd Rangiwahia, Manawatu
Thursday 31st May 2018 Ngakonui – 12 Noon Lot 4 – Springdale Thor 555 Lot 1: Raupuha Ace 16663
Rangatira 13-38 Rangatira 13-118 Kaharau 11-831 Kaharau 12-40 Kaharau 13-179 Springdale Clarion 244
Lot 3 – Springdale Latitude 572
13 in-calf R2yr heifers 13 heifer calves ENQUIRIES AND INSPECTION WELCOME
Catalogue available online at: www.springdaleangus.co.nz or www.agonline.co.nz
Registered Polled Herefords
Ian & Karenne Borck – RD 4, Taumarunui Ph/Fax: 07 895 3452 – Email: firstname.lastname@example.org www.springdaleangus.co.nz – or your local agent
Lot 4: Raupuha Lockyer 16654
Come and join us at our on-farm sale: Friday 1 June 2018 at 10:00am
26 R2yr Polled Hereford Bulls
HILL COUNTRY BRED FOR HILL COUNTRY FARMERS
Contact Russell Proffit Enquiries and inspection always welcome email: email@example.com 2033 State Highway 3, RD Mahoenui, 3978 phone: 07 877 8977 or 027 355 2927 www.raupuhastud.co.nz
7 heifer calves 7 bull calves
Registered Speckle Parks
LIVESTOCK ADVERTISING 0800 85 25 80
Selling Agents: PGG Wrightson Callum Stewart 027 280 2688 Alex Stewart 027 461 1215
www.agonline.co.nz or www.herefords.co.nz Enquiries & Visitors Welcome Murray & Fiona Curtis 06 328 2881
• • • • • •
Sires of sale bulls:
THE NEW ZEALAND FARMERS WEEKLY – May 21, 2018
A quality OAD herd that will shift extremely well Enquiries to Bruce ph 027 441 0924
MORRINSVILLE DAIRY COMPLEX
Monday 28th May - 10am start A/c K Robertson - Paekaka Rd, PioPio Signposted at Paekaka Rd, south of PioPio
SPECIAL ENTRIES Thursday 24th May – 11:00
GOOD SOLID HERD On A/c Apex Farming 100 FrsX Dairy Cows BW 65 PW 80 RA 89% A2A2 Tested, Lepto Innoc, calving 22/6 onwards. Young cows in good condition. Contact Jono Wright 027 801 3052
32 Lots comprising: 4 R2 Ped SP Bulls, 1 14mth SP Bull, 14 R2 3/4 SP Bulls, 2 14mth 3/4 SP Bulls, 1 14mth 1/2 SP Bull, 10 20mth 1/2 SP Heifers - VIC to Ped SP Bulls.
COMPLETE HERD DISPERSAL
2018 Bull Sale 7 June 11.30am 312 Tutaenui Road, Marton
Agent in charge Richard Bevege 0274 539 824 Stud Stock Agent Brent Bougen 027 210 4698
45 Quiet Meaty Bulls
View Catalogue: www.angusnz.com
EDWARD SHERRIFF 06 3276591 or 021 704778
For further information please contact our vendor Katherine 07 877 8111 or 021 723 525 or Facebook - Kaha Speckle Park
MORRINSVILLE DAIRY COMPLEX
HIGH PRODUCING CRV FRIESIAN HERD
Monday 28th May 12 Noon
ON FARM SALE
EARLY CALVING COWS
Tuesday May 29th 12 Noon A/c R & T Pastoral - 355 Keith Rd, Waerenga BW 25 PW 37 RA 87%
A/c JRS Dairying 60 Frs/FrsX 2-8 Yr Cows. The complete July calving content of this herd are on the market. BW 86 (up to 217) PW 126 (up to 395). 485 MS/Cow on System 3, 1500/Ha DTC 3/7 to 18/7 IC to AB Frs. TB C10. EBL Free, M Bovis Bulk Milk Test Negative. These cows are in great condition.
OREGON angus 30 BULLS
Tuesday 5th June 2018 – 3pm
We are priviliged to offer for auction this well farmed capacious 300 cow Friesian herd. The herd has been in the family for close to 50 years and Ambreed bred with Pedigree for 30 years. These cows constantly produce between 500-530Ms/Cow on a System 3. There is no limit as these cows will produce according to feed level. DTC 25/7. This Spring calving herd only comes to market as the dairy platform goes all Autumn Calving.
GREAT ORDER IC COWS
KEITH & GAE HIGGINS 06 372 2782
Contact Don Allison 0274 515 318
For top producing Friesian cows, this is the sale to attend! Contact Agent in charge Jono Wright 027 801 3052
AT MORLAND 1464 MASTERTON STRONVAR ROAD
Refer to listing # WAI58246
A/c S G Foote Ltd BW 83 PW 114 94 IC Frs/Frsx/Jsyx IC Cows. DTC from 20/7 to PB Hereford. The Spring cows come forward in great order to make room for Winter Milk. TB C10, EBL Free. System 4 feed level, 440MS/Cow, 1620/Ha
On A/c Client to follow 40 Years of Ambreed, 133 x Frs In Calf Cows AB Bred Unrecorded, 340 MS/Cow on System 1. DTC from 18/7, AB 6 Weeks to Nominated Ambreed Bulls. Tailed with Angus Bulls 9x R2 Ambreed In Calf Heifers, all VIC. Contact Wayne Robb 021 712 511
BULL WALK 17TH MAY 1.50PM
BLACK RIDGE ANGUS STUD Annual on farm bull sale
9:30am Thursday 31st May 2018 28 Rising 2-year-old Bulls Come and have breakfast with the bulls. Inspection and enquiries always welcome. Like and find us on facebook
DEAN & TERESA SHERSON
Advertise your stock sales in Farmers Weekly LK0092546©
Long established fourth generation herd OAD for the last ten years A2 profiled DTC 22 July 2018 Free grazing available to 1 July 2018
KAHA SPECKLE PARK BULL & HEIFER SALE
TB C10, Tested & Vac, BVD & EBL Free.
675 Taringamotu Road RD 4, Taumarunui 3994 p: 07 896 7211 m: 027 690 2033 e: firstname.lastname@example.org
• • • • •
195 Jersey cows (RA 98%) BW 108 PW 97 Plus 50 in-calf Jersey heifers BW 140 PW 123
In-lamb Poll Dorset Ewes For Sale “The proven exotic”
Contact your preferred Stock Agent or Michael and Sheryl Vette 06 857 8108 • 027 2100 485
email@example.com – 0800 85 25 80
In-lamb Hampshire Ewes “They weigh like lead”
firstname.lastname@example.org – 0800 85 25 80
SHIAN ANGUS Annual On Farm Sale - Thursday 31st May 2018 @ 3pm
in conjunction with
Please note the new sale date!
Meads Road Taumarunui
9th Angus Bull Sale
41 BULLS FOR SALE Enquiries & inspections are always welcomed
27 RISING 2 YEAR OLD BULLS be held at Vendor’s property. 10.30am Friday 1 June 2018 ToInspections welcome from 9am
Bulls Sired by: • Tangihau Kaino H29 • Merchiston Equate 395 • Turiroa 13740 LOT 1: SHIAN 16-714 • Matauri Ulong JO58 • Libido tested & semen evaluated • Lepto & 10 in 1 vaccinated • Shian 464 • TB C10, BVD tested & vaccinated • Free delivery North Island • Shian 446
Teviot Valley Station, 1205 Teviot Road, Millers Flat, RD2, Roxburgh 9572, Otago. Phone 03 446 6030 or 027 364 1438
Roger Keach 027 417 8641 Callum Dunnett 027 587 0131 Donald Baines 027 328 8781 Brent Taylor 027 333 2421
Contact: Brian & Sharon Sherson 07 895 7686 Rob & Tracy 07 895 6694/ 027 230 8230 Email: email@example.com www.shianangus.co.nz / Find us on
PETERS ANGUS Carrfields LIVESTOCK
FARMERS WEEKLY – May 21, 2018
PGG WRIGHTSON LIVESTOCK
Callum McDonald 027 433 6443 Chris Swale 027 442 5032 Paul Pearce 027 478 5761
Hill Country Specialists
PICTURED: Rangatira 13-4
Annual Bull Sale
Tues 5 June 2018, Midday 735 Matahuru Rd, Ohinewai
All bulls fertility tested and fully guaranteed BVD tested clear and vaccinated twice
Sires of Sale bulls:
Rangatira 13-50 Rangatira 13-4 (son of Cobra) Stern 358, Meadowslea 176 HillcroftAngus
Malcolm & Fraser Crawford: Matahuru Rd, Ohinewai. Malcolm Ph 07 828 5709; Fraser Ph 0272 85 95 87
Annual Bull Sale – 6th June at 2.30pm at Hunterville – LOT 30
Hit the bulls-eye with advertising in the Farmers Weekly. Reaching over 78,000 rural mailboxes weekly we are the ideal space to engage with the right audience for your bull sales.
Selling 50 Angus Bulls
Farmers Weekly also publishes an e-Newsletter while bull sales are on with top sale results from around the country, and other digital advertising options to link to your website and sale catalogue.
With loads of affordable advertising options contact Nigel Ramsden on 06 323 0761, 027 602 495 or email firstname.lastname@example.org to get the right solution for you.
See online – angusnz website – go to catalogue or phone Richard Rowe 027 279 8841 or email email@example.com
THE NEW ZEALAND FARMERS WEEKLY – May 21, 2018
firstname.lastname@example.org – 0800 85 25 80
Your source for PGG Wrightson livestock and farming listings
DAIRY HERD AUCTION
JERSEY/ XBRED CLEARING SALE
FRSN/ FRSNX HERD DISPERSAL
JERSEY HERD DISPERSAL
21523 Waeranga Rd, Pongakawa, RD9, Te Puke Wed 23rd May, 12 Noon Start
Tuesday 22nd May, 11.00am Start On Farm: 6404 S.H26, RD3, Paeroa. T/N 75810 A/C RA & WM Eccles
Tuesday 29th May, 11.30am Start Morrinsville Saleyards A/C Kung Bros
Wednesday 23rd May, 11am Start Morrinsville Saleyards A/C Caerleon Jerseys
165 VIC Frie & Frie X Cows BW/58 PW/78 35 VIC Jrsy Cows BW/72 PW/86 54 VIC Capt Stk Hfrs BW/110 PW/106 Herd Due 17th July. LIC/Ambreed Tailed Hereford Out 19/12/2017 Heifers Due 7th July. Jersy Bull out 23/12/2017 TB C10 – EBL Free – Lepto Innoculated – H/B Shed Due to Herbs retirement and sale of farm, This is an ideal opportuinity to purchase genuine cows from a closed herd of 40 years and from a 3 letter herd code Cows dried off on the 10th Apr and blanket cow treated with Cepravin. Will be presented in great condition. Enquiries and catalogue available from agent Neil Penman – 0275 927567 email@example.com
Comprising 290 Jersey/ XBred Incalf Cows • BW62, PW78, RA63% • DTC 14th July, Incalf LIC Jersey 4 weeks, tailed Jersey (Bull out 24th Dec) • 300M/S per Cow, SCC146,000, Feed System 1 • Flat to Hill Property, H/Bone Shed – Shed Drenched • Owner Milked 40 years • TB C10, EBL Free, BVD Neg, Lepto Vacc Auctioneers Note: This Herd comes to auction as our vendors have engaged a 50/50 Sharemilker. Farmers in search of good working cows that shift are advised to attend this fixture. Delivery: By 1st June 2018. Payment: 14 Days from Saleday Dave Stuart – 0272 241 049 Allan Jones – 0272 240 768
FRSN/ FRSN X HERD DISPERSAL
FEILDING COW SALE
Monday 21st May, 11.30am Start 804 Karakariki Rd, Whatawhata A/C Glen Cunningham SOLD
Thursday 24th May Feilding Saleyards Complex, 11.30am A/C Erewhon Stn, Taihape 135 R3yr Angus Hfrs Up for sale for the 1st time is an outstanding lineup of Angus Hfrs with 100% Te Mania Genetics both on the male & female side. Bull date 12/11/2017 Great opportunity to get top genetics into your herd. To be drafted into manageable lines. Further Enquiries: Simon Luoni – 0275 901 033
LONG EST. HERD DISPERSAL Thursday 24th May, 11.30am Start Paratu Rd West, RD1, Walton A/C BJ & JN O’Brien SOLD
Comprising: 90 Registered Jersey Cows, BW58, PW65 Incalf to nom. AB Jersey 4 weeks tailed Jsy Bulls. Bulls out 1st January. Due 23rd July. Our vendor has owned and milked these cows for 65 yrs. Farm Sold. Genuine cows that will shift. 3 digit Herd Code. Catalogues available. Kent Stove – 07 868 6759 or 0276 645 143 Jason Roberts – 07 888 8993 or 0272 431 429
Comprising: 162 Frsn/ Frsnx Incalf Cows, BW57, PW70, RA75% 38 Frsn/ Frsnx Incalf Heifers, BW103, PW102 Calving 10th July to 5 wks AB LIC Frsn, tailed off Hereford & Friesian Bulls, Bulls out 10th Jan. Current production 75,000M/S (Calved 200 Cows), with all young stock grazed on (375M/S per Cow), with BWs up to 151, PW242. Herd has been dried off, Blanket Dry Cow treated. TB C10, EBL Free, BVD bulk tested neg, Lepto Vacc, H/Bone Shed. Incalf Heifers calving 10th July to Jersey Bull, Bulls out 20th Dec. Catalogues available. Contact Shaan Featherstone – 0276 661 198
FIND US ON FACEBOOK Follow what’s happening out in the field, visit: fb.com/pgwlivestock
HERDS & IN-CALF HEIFERS FOR SALE
Freephone 0800 10 22 76 | www.pggwrightson.co.nz
106 M/A Frsn, X/Bred Cows BW 76
38 Friesian InCalf Heifers BW 82
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RA100% A well grown Line of Heifers brought in from 2 Herds as Weaners. Andrew Leggett – 0220 383 216
16 4-6yr Frsn/Frsn X Carry Over Cows
196 Friesian InCalf Heifers
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66 DNA’D Ambreed Frsn InCalf Hfrs BW 74
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Grain & Feed Prior week
AS OF 21/03/2017
AS OF 01/05/2018
5.5 Nov 17
Jan 18 AgriHQ Spot Fonterra forecast
Mar 18 May 18 AgriHQ Seasonal
What are the AgriHQ Milk Prices? The AgriHQ Seasonal milk price is calculated using GDT results and NZX Dairy Futures to give a full season price. The AgriHQ Spot milk price is an indicative price based solely on the prices from the most recent GDT event. To try this using your own figures go to www.agrihq.co.nz/toolbox
WMP GDT PRICES AND NZX FUTURES
NI mutton (20kg)
SI lamb (17kg)
SI mutton (20kg)
Export markets (NZ$/kg) 9.30
UK CKT lamb leg
* 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.
6.5 6.0 5.0
CBOT futures (NZ$/t)
Wheat - Nearest
Corn - Nearest
South Island 1 7kg lamb
Apr 18 Jul 18 NZX WMP Futur es
5.5 Last week
North Island 17kg lamb
2000 Jul 17 Oct 17 Jan 18 C2 Fonter r a WMP
NZ venison 60kg stag
5‐yr ave NZX DAIRY FUTURES (US$/T) Nearby contract
vs 4 weeks ago
Coarse xbred ind.
Nth Isl 37m
Sth Isl 35m
c/k kg (net)
THE NZX 50 reached record highs last week while the reshuffle of the MSCI index also grabbed headlines. The NZX 50 pulled back on Wednesday after a nine-day winning streak and four straight record-breaking highs, with a number of companies in the index trading at all-time highs. The highly anticipated reshuffle of the MSCI Main Global Index saw the addition of a2 Milk while Mercury was removed. Mercury is now in the MSCI Global Small Cap Index where Restaurant Brands, Synlait Milk and Tourism Holdings are also included. On Wednesday, a2 Milk released a trading update and FY18 outlook. The company is anticipating revenue in the range of $900$920 million for the 12 months ended June 2018. It expects a gross margin flat on the prior year and a lift in marketing spend. The guidance missed expectations and saw a sell-off as the share price tumbled as much as 21% in the day’s trading, however recovered from its lowest levels. Production partner Synlait Milk, which has seen a stellar run recently, was pulled down with a2 Milk after the update. ATM and SML remain the best performing companies on the NZX 50 this year, up 40% and 43% respectively. Market commentary provided by Craigs Investment Partners
S&P/NZX 50 INDEX
S&P/NZX 10 INDEX
4 w eeks ago
S&P/FW AG EQUITY
150 May 14
NZ venison 60kg stag
Coarse xbred wool indicator
CANTERBURY FEED PRICES 450
S&P/FW PRIMARY SECTOR
NZ average (NZ$/t)
WMP FUTURES - VS FOUR WEEKS AGO
* price as at close of business on Thursday
Last week Prior week
NI lamb (17kg)
Slaughter price (NZ$/kg)
6.55 MILK PRICE COMPARISON
MILK PRICE FORECAST ($/KGMS) 2017-18
3002.5 Oct Jul
Dec Sep 5‐yr ave
Apr Jan Last yr
Top 10 by Market Cap Company
The a2 Milk Company Limited
Auckland International Airport Limited
Meridian Energy Limited Fisher & Paykel Healthcare Corporation Ltd Spark New Zealand Limited Ryman Healthcare Limited Fletcher Building Limited Mercury NZ Limited (NS) Contact Energy Limited Air New Zealand Limited (NS)
3.00 12.90 3.49 11.24 6.44 3.14 5.63 3.38
3.01 14.39 3.68 11.70 7.96 3.45 5.64 3.43
2.75 11.92 3.28 10.27 5.74 3.08 5.15 2.86
Listed Agri Shares
5pm, close of market, Thursday
The a2 Milk Company Limited
Delegat Group Limited
Fonterra Shareholders' Fund (NS)
Livestock Improvement Corporation Ltd (NS)
New Zealand King Salmon Investments Ltd
PGG Wrightson Limited
Sanford Limited (NS)
Scales Corporation Limited
Synlait Milk Limited (NS)
T&G Global Limited
Tegel Group Holdings Limited
S&P/NZX Primary Sector Equity
S&P/NZX Agriculture Equity
S&P/NZX 50 Index
S&P/NZX 10 Index
THE currency is doing This Prior Last NZD vs some heavy lifting for week week year an agri-sector facing USD 0.6885 0.6971 0.6877 increasing concerns over EUR 0.5834 0.5847 0.6328 the Mycoplasma bovis AUD 0.9167 0.925 0.9208 outlook for the dairy and beef sectors, ASB Bank GBP 0.5096 0.5152 0.5328 institutional currency dealer Correct as of 9am last Friday Tim Kelleher says. He believes the spread of the disease will be on the radar of the Reserve Bank in its next Financial Stability Report, given the importance of agricultural exports to the economy, even though new governor Adrian Orr has been upbeat about overall prospects. These worries have not affected the NZ-dollar value yet. Its quite rapid fall to below US$0.69 in recent weeks is all due to the strength of the US dollar on changing interest rate differentials. The United States Fed could raise official interest rates two or three times over the rest of the year while the RBNZ maintains the OCR at 1.75%. If that happens “it’s hard to see the dollar above 0.65 at year-end”, Kelleher said. The CBA/ASB group forecasts have been brought down from a US$0.75 year-end forecast to 0.72, still a fair way above Kelleher’s bottom-of-the-range figure. “Money goes where the money goes and if you’re choosing between US 10-year bonds and NZ 10-year bonds, the US has the greater liquidity and NZ has a risk-premium. Where do you go?” The kiwi has slipped below £0.51 but Kelleher doesn’t expect much shift on the non-US currencies. “It’s about the higher US yields.” Alan Williams
FARMERS WEEKLY – farmersweekly.co.nz – May 21, 2018
NI SLAUGHTER BULL
SI SLAUGHTER LAMB
SI SLAUGHTER STAG
R2 HEREFORD-FRIESIAN STEERS, 410-440KG, AT FRANKTON
Cattle & Deer BEEF Slaughter price (NZ$/kg)
NI Steer (300kg)
NI Bull (300kg)
NI Cow (200kg)
SI Steer (300kg)
SI Bull (300kg)
SI Cow (200kg)
US imported 95CL bull
US domestic 90CL cow
Export markets (NZ$/kg)
North Island steer (300kg)
6.0 5.5 5.0 4.5 4.0
South Island steer (300kg)
NZ venison 60kg stag
c/k kg (net)$/kg
500 4.5 400
Aug Aug This yr
VENISON Slaughter price (NZ$/kg)
Last week Prior week
NI Stag (60kg)
NI Hind (50kg)
SI Stag (60kg)
SI Hind (50kg)
New Zealand venison (60kg Stag)
c/k kg (net) $/kg
NZ venison 60kg stag
Dec Feb Dec Feb 5‐yr ave
Apr Apr Last yr
Aug Aug This yr
$2.89-$2.93/kg $125-$140 Finished Beef ox, 680-720kg, at Rangiuru
Good cryptorchid lambs at Stortford Lodge
Store lambs are going gangbusters at sales
here were plenty of happy vendors and grumpy buyers at store lamb sales across the North Island. Lambs are now approaching levels not heard of since mid-2011, buoyed by a widespread confidence from buyers that $8/ kgCW is just around the corner for schedules. Generally it takes a fairly mediocre looking lamb to sell below $100, and even average male lambs can make $120 without bidders breaking a sweat. NORTHLAND NORTHLAND The store cattle market did a U-turn last week at WELLSFORD, as rain followed by a very mild day seemed to bring more buyers and confidence to the rostrum. There was keen interest for younger bulls as some buyers managed to find space to kill older cattle and were able to re-enter the market. R2 steer prices were fairly consistent and Hereford-Friesian had the quality, with 396-439kg firming to $2.73-$2.82/kg, while a line of seven Maine Anjou, 394kg, fetched $2.84/ kg. Other steers of lesser quality still managed $2.58-$2.71/kg. The heifer market also reflected a lift in interest and Hereford, 379-400kg, firmed to $2.65-$2.73/kg. Heavier Herefordcross, 413-487kg, made $2.62-$2.67/ kg, with other small lines also trading in those ranges. Early born Angus & Angus-Hereford heifers, 245-321kg, proved popular as they traded at $815-$860, while eight HerefordFriesian, 306kg, topped the section at $890. The weaner bull market had a much bigger following. Friesian, 252kg, managed $685, with all other lines trading at $575-$635. Steers and heifers also sold on an improved market and features in the steer pens included a line of 10 Angus, 241kg, $820, and Hereford-Friesian, 187-
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189kg, $735-$785. Angus-cross heifers sold to $850 while the top HerefordFriesian made $745-$780 and 168213kg, $600-$610. KAIKOHE offered a medium sized yarding of about 570 head last Wednesday. PGG Wrightson agent Vaughan Vujcich believed that the large number of cattle offered earlier in the year is affecting the market now, with no room available on farms for more stock. Any quality R2 steers managed to sell for a respectable $2.72-$2.82/ kg but lesser types struggled and crossbred sold down to $2.40/kg, with lesser dairy-cross types falling further to $1.80-$2/kg. A feature line of R2 Simmental bulls made $2.60/kg, with good beef heifers also at that level. Lesser heifers sold at $2-$2.30/kg. A consignment of quality traditional
weaner steers and heifers had plenty of weight. The top steers weighed in at 340360kg and sold for $3.05/kg, while the heifers hovered around 300kg and sold for $2.75-$2.85/kg. Other steers earned $2.85-$2.90/kg, while light beef-Friesian heifers struggled at $2.40-$2.60/kg. A nice line of Hereford bulls, 260kg, made $3.60/ kg with Friesian and beef-cross earning $2.70-$2.90/kg. A feature line of capital stock Hereford-cross cows were joined in the pens by their Angus calves. Keen interest resulted in the two lines of 20 head and 14 head making $1210 a unit. Other vetted-incalf dairy cows sold for $1.80/kg, with empty or run-with-bull dairy and beef earning $1.60/kg.
Continued page 46
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46 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – May 21, 2018 COUNTIES COUNTIES About 550 store cattle were yarded at TUAKAU last Thursday, Kane Needham of PGG Wrightson reported. The steer section included a pen of big HerefordFriesian, 640kg, which traded at $2.69/kg, $1720. Other heavy steers, 499kg, earned $2.76/kg, with a 411kg pen making $2.81/kg. Good Angus weaner steers, 229kg, fetched $840 and another pen, 190kg, $730. Hereford-Friesian weaner steers, 203kg, made $810, and 135kg, $630. A pen of Hereford-Friesian heifers, 436kg, earned $2.51/kg, with 374kg selling at $2.56/kg, and 337kg, $2.63/kg. Angus weaner heifers, 212kg, made $650 and 158kg, $575. Hereford-Friesian weaner heifers, 140kg, sold for $510. About 450 cattle were yarded at last Wednesday’s prime sale and the market was firm. Heavy prime steers traded at $2.77-$2.82/kg, medium $2.70-$2.75/kg, and lighter $2.65-$2.70/kg. The best of the prime beef heifers sold at $2.74-$2.78/kg, while medium lots returned $2.68-$2.73/kg, and lighter types $2.62-$2.67/kg. Beef cows earned $2.18-$2.24/kg, and an entry of heavy in-calf Friesian (July calving) sold for $2.04-$2.12/ kg. Well-conditioned empty Friesian traded at $1.72-$1.84/kg, with medium cows making $1.65$1.70/kg, and lighter boners $1.50$1.62/kg. Heavy beef bulls fetched $2.80-$2.90/kg and medium $2.68-$2.80/kg. Prime lambs remained buoyant at last Monday’s sheep sale with the best lambs earning $175-$191. Good-medium primes made $142-$160 and lighter $118-$130. Store lamb numbers were limited. Top stores earned $110-$118, medium $95-$105, and lighter $85-$95. Heavy prime ewes sold at $110-$140, with medium fetching $95-$110, and lighter $75-$90.
WAIKATO A good sized, mainly local buying bench was in place at FRANKTON last Wednesday. The market was solid on recent levels. Hereford-cross steers, 375434kg, were steady at $2.67-$2.79/ kg, while 357-369kg lines softened marginally to $2.52-$2.57/kg. Seven Angus-Friesian, 403kg, were strong at $2.85/kg. HerefordFriesian, 411-442kg, lifted to $2.81-$2.90/kg, while 356-390kg managed steady returns at $2.82$2.92/kg. Angus-Friesian heifers, 332-473kg, lifted to $2.53-$2.65/ kg, as did Hereford-Friesian, 440468kg, at $2.59-$2.62/kg. Friesian bulls, 310-353kg, returned $2.61$2.63/kg, with Jersey, 345-395kg, at $2.19-$2.25/kg. All autumn-born 1-year heifers and bulls, 222-327kg, traded at similar $/kg earning $2.68-$2.70/ kg. Results were solid in the weaner pens, with HerefordFriesian, 181-189kg, fetching $725, $3.84-$4.01/kg, while lighter 115kg made $525, $4.57/kg. Beef-cross heifers, 207-280kg, lifted to $640$850, $3.04-$3.11/kg. The prime market was strong and Hereford and beef-cross steers, 532-568kg, lifted to $1400$1540, $2.63-$2.74/kg, whilst Hereford-Friesian, 545-631kg, maintained levels of $2.63-$2.74/ kg. Beef-dairy, vetted-in calf prime cows, 507-592kg, earned $1030$1230, $2.03-$2.08/kg. Friesian
boner cows, 387-572kg, lifted to $1.63-$1.78/kg, and a line of 12 at 652kg managed to break the $2/kg mark at $2.07/kg. In-calf dairy bred boner cows, 423-568kg, traded at $1.51-$1.65/kg. BAY OF PLENTY BAY OF PLENTY A consignment of 34 well finished ox got the crowd talking at RANGIURU last Tuesday. Most topped $2000. Top honours went to a line of 816kg HerefordFriesian which made $2290, though a higher yielding line of 702kg Devon topped the $/kg at $2.93/kg. All lines 650kg plus traded at $2.85-$2.93/kg, while Angus, 500-512kg, fetched $2.64-$2.69/ kg. A line of nine Hereford heifers, 501kg, also managed $2.69/kg, while Hereford-Friesian, 415442kg, firmed to $2.49-$2.56/kg. Heavier boner cows made $1.76/ kg for 490-575kg, though second cuts, 425-485kg, eased to $1.69/kg. Medium-good HerefordFriesian store steers, 358-380kg, managed $2.68-$2.77/kg, but lesser lines, 351-406kg, made just $2.45-$2.51/kg. The better beef heifers managed $2.46-$2.54/kg, while Friesian, 376-415kg, sold for $2.22-$2.30/kg. Weaner numbers were low and quality mixed. One line of Hereford-cross steers, 229kg, were good shopping at $755, while heavier heifers of same breeding made $820. Prime lambs traded at $97.50$149. Run-with-ram ewes made processor values at $119.50-$121. TARANAKI TARANAKI Cattle volume was at a much more sale-able level at TARANAKI last Wednesday, following the cattle fair. That said though there was still just shy of 400 head penned, which is relatively high given the time of year. Boner cows made up a quarter of the yarding and heavy types were steady as 470-615kg averaged $1.71/kg, while lighter types, 425465kg, firmed to $1.63/kg. Most Friesian and Friesian-cross sold in a $1.58-$1.76/kg range. Vetted-in-calf dairy cows and heifers also came forward in larger than usual numbers, and Friesian-cross cows, 487-502kg, made a premium at $1.78-$1.83/ kg, though lighter lines reflected empty boner prices. In the heifer pens most lines had seen a Jersey bull, and prices were variable as quality was extremely mixed. The store pens offered up something for everyone, though was dominated by small lines of mixed quality. Lesser bred lines were penalized as buyers look for cattle that will winter well. The R2 steer section had a firm tone to it, though only for those lines with potential; lesser crossbred types were very much left alone. Medium and medium-good beef-Friesian pushed to $2.74-$2.83/kg, while lesser quality Hereford-cross varied from $2.39/kg to $2.56/kg for a heavy line of ten. The best that could be coaxed out of buyers for R2 heifers was $2.40-$2.47/ kg for small lines of beef-Friesian. Weaner numbers were low but there was a noted jump in prices for any beef lines of quality. Angus heifers, 149kg, made $500, $3.36/ kg, while Charolais-Angus, 146kg, returned $565, $3.87/kg.
POVERTY BAY POVERTY BAY Store lambs were given a $14/ hd boost at MATAWHERO for the 2200 that were yarded. Good and heavy male lambs were $139-$150, with similar ram lambs just below at $135-$141. Good ewe lambs weren’t to be out done at $120$128, with the medium and lightend making $110-$111.50. Some mixed sex essentially matched the ewe lambs. Nearly all the prime lambs made $126-$135, and some prime ewes made $107-$124. HAWKE’S BAY HAWKE’S BAY Sheep continue to be the golden child at STORTFORD LODGE, with strong markets at both the prime and store sales. The store cattle sale was harder work, with buyers very selective. A good buyer turnout was greeted with moderate numbers of ewes on Monday. Very heavy types eased to $146-$165, as did heavy ewes at $137-$145. Very good types sold at $130-$165 while mediumgood lines lifted to $124.50- $125. Light-medium to medium ewes $105.50-$117.50, with the lighter end lifting to $81-$98. Very heavy male and ram lambs earned $181-$212, with heavy types of the same sex making $153-$175. Medium-good to good males lifted to $120-$151.50. Five very heavy mixed sex lambs earned $173, while heavy lines fetched $157-$168. Ewe lambs improved to $137$158. A new wave of vendors offloaded store lambs last Wednesday. Numbers grew to nearly 7500 head and included 2000 woolly cryptorchid and ewe lambs from Taupo. Through the bigger pens just one line of mixed sex fell below $105, with heavy male lambs trading up to $135$146. The cheapest cryptorchid came in at $112, with most males ranging from $120-$140, and as the weights dropped away the $/ kg climbed over $4. Good to heavy ewe lambs sold for $119-$134, with medium-good earning $115-$126. Even the lighter lines managed $109-$112. A small mixed sex section sold for $95-$122. A small yarding of run-with-ram ewes were a bit early for most and made $128-$165.50. In the rostrum he market suffered from too many cattle and not enough buyers. All bar one line of R2 bulls weighed in at 352-450kg and sold for $2.67-$2.78/kg on a firm market, with one line of 10, 396kg, selling at $2.92/kg. A special entry of Simmental-cross from Central Hawke’s Bay were also on the Manawatu buyer’s shopping list and most headed south, with 415-459kg making $2.93-$3/kg, and 380kg, $3.13/kg. Better, heavier Angus steers sold for $2.91-$3.01/kg, while 357362kg dropped to $2.85-$2.87/ kg, which was common for other beef-cross lines. The heifer market was hard going as traditional lines, 319-389kg, eased to $2.44-$2.51/ kg. Better quality lines did manage $2.62-$2.69/kg. In the weaner market steers were reasonably steady but heifers good shopping. One line of 13 Angus & AngusHereford steers, 298kg, managed $1000, while 269kg, made $985. Heifers of same breeding and 167210kg made $540-$660. A busy day at the WAIROA cattle
yards last Thursday featured in-calf heifers and cows. This fair always offers top quality hill country heifers and cows. A good crowd of buyers from Gisborne to Hawke’s Bay gathered looking for replacements. Angus-cross heifers with calves-at-foot started the sale and sold well at $1610 a unit. Vetted-in-calf heifers could not reach the $2000 mark and price tags of $1320-$1645 for Angus to an Angus bull were much more realistic. An outstanding consignment of 8.5-year Angus cows to an Angus bull were keenly contested and sold for $1720-$1750, far exceeding last year’s top price of $1640. The rest of the Angus cows sold for $1180-$1350, with other traditional lines making $1115$1405. Exotic lines were limited but sold for $1100-$1150. At the conclusion of the in-calf fair R2 steers were offered, and sold on a sound market. The top Angus lines were medium types which sold for $1240-$1260, with a second cut earning $1165-$1200. MANAWATU MANAWATU The nationwide weaner fair and calf sale season finished up at FEILDING last Thursday with a yarding of just over 2000 head. It was a successful end to a strong season of fairs. On Monday nearly 4500 head had more mixed sex lines than last week and fewer drafted single sex. Heavy male lambs sold at $164$177.50, with mixed sex of similar size and weight earning $154$169. The top mixed sex lines did manage $170-$185. Heavy mixed sex tended made steady returns at $140-$147, though medium types were slightly softer at $120$133.50. Ewe lamb numbers were limited and varied from $119 up to $161. The first of the scanned empty ewes were offered and very good ewes set the buyers back $161-$164 though were limited in number with most medium to medium-good at $106-$119. One line of 235 light types sold for $75. Cattle numbers reduced to the lowest level since the first April sale. Most in the boner cow pens were dairy-cross and of lesser condition so traded at $1.53$1.58/kg, with two lines of better Friesian, 468-598kg, making $1.69-$1.79/kg. Better prime cows traded at $1.82-$1.95/kg while four Angus-Friesian heifers, 440kg, reached $2.46/kg. One line of eight boner heifers, 384kg returned $2.20/kg. The last weaner fair featured good quality hill country calves, mainly in from Taihape and mostly later-born Angus and Angus & Angus-Hereford. Top lines headed to Waikato, while Wairarapa and Hawke’s Bay dominated on the medium type calves. The top Angus steers made steady returns with 260-290kg earning $990-$1080, $3.81-$4/ kg, 210-240kg fetched $825-$965, $3.90-$4.15/kg. Results were very similar for Angus & AngusHereford steers with 250-320kg steady at $960-$1210, and medium types, 180-220kg, firm at $790$870. All lines in the lighter weight ranges exceeded $4/kg. Angus heifers, 220-270kg, returned $785-$1040, $3.50-$3.87/ kg, firming 20c/kg. There was more variance in the lighter lines with 150-200kg trading at $600-
$750, and the better lines up to $4-$4.10/kg, though the balance made $3.50-$3.70/kg. Angus & Angus-Hereford, 200-250kg, firmed to $715-$930, $3.44-$3.81/ kg, while Charolais-cross, 245279kg, looked to be good shopping at $880-$990. There was a rather plain selection of 930 store cattle at FEILDING. The only eye-catching lines were through the R3 steers, where 490-570kg straight-beef types were $2.85-$2.95/kg. Traditional R2 steers, 440525kg, were more or less the same at $2.90-$3.00/kg, while some 385-420kg Hereford-Friesian’s were also $2.90-$2.95/kg. Some 290-340kg straight-beef heifers were $2.85-$3.00/kg, but most were 315-390kg beef-Friesian’s which made $2.60-$2.75/kg. Only two lines of 430-455kg Friesian bulls were $2.75/kg, but some 375-390kg Jersey bulls were $860$1000. Weaner Friesian bulls dominated the rest of the yarding. The 140-165kg lines were $550$630, $3.85-$4.05/kg, but the 190-225kg types made $695-$745, $3.40-$3.60/kg. The rest of the weaners were quite varied, but the better-marked beef-cross steers and heifers were mainly $3.15$3.50/kg, but fell below $3.00/kg otherwise. Around 13,000 store lambs were yarded, selling to a level on seem since the peaks of mid-late 2011. The average per head price jumped $10/hd to $134 on what was only a marginally heavier average weights. There were a few lines of maletype lambs which wouldn’t have looked out of place in the prime sale. These climbed as far as $168.50, but in general these very heavy lines were $150-$164. The rest of the good-to-heavy males were $138-$146.50, while the medium-to-good lines were barely any cheaper at $135.50-$141. Any other male-type lambs made $124-$133.50. The brunt of the lift came to the ewe lambs which weren’t trading at much of a discount to their brothers. Anything good or better made $128-$135.50, though two lines did make as much as $138.50-$145.50. The medium ewe lamb lines were $128-$132.50 and anything light was $94-$108. CANTERBURY CANTERBURY Winter is starting to make itself known around Canterbury, though that had little bearing on prices at CANTERBURY PARK last Tuesday. Demand for prime lambs and ewes continues to grow, and strong schedules are bringing plenty of confidence to the rails. Lamb numbers fell short of 1000 head and extra buying power resulted in an increase of $5-$6 across all weights. Nearly a third of the section made $171-$194, and the balance, $120-$169. Ewe numbers were up slightly on the last sale but at 480 head was still on the low side. The top ewes were expensive shopping at $180-$249, with most other lines earning $130-$179, and a small lighter end, $80-$109. The store lamb section was the least exciting for the day as buyers were selective on low numbers of mixed quality. Prices were variable for the small yarding, but consistently strong compared
to last year but just not quite up to prices seen this year for some types. A highlight was a line of 108 light Merino-cross wethers, which made $100, while heavier male lambs traded at $110-$115. Ewe lambs came forward in small lines and the better types sold for $104-$117. Mixed sex prices were consistent, with good to heavy lines making $102-$130, while most other lines traded at $70-$95. Despite a wet and cold day it as felt there was a bit of turning point in cattle markets, across all classes bar bulls. Prime steers were back on the shopping lists and $2.80/kg was back on the table for heavy types, with Hereford, 595-690kg firming to $2.85/kg, while Charolais, 545-780kg, made $2.80-$2.84/ kg. Second and third lines still have a way to go to catch up and did make up a fair portion of the section. Heifer prices were very consistent and mostly markets firmed in both the prime and store pens. Prices of $2.50-$2.60/ kg were consistent for both prime and local trade types, while lesser lines trailed by 10c/kg. Store numbers swelled to 550 head and R2 Angus steers were by far a highlight as 375-409kg achieved $2.85-$2.95/kg. Prices were variable for HerefordFriesian, with 439-479kg lines looking like good shopping at $2.46-$2.55/kg, compared to 355-356kg at $2.74-$2.82/kg. The heifer market mirrored the prime heifers, and Angus, 367-425kg, sold very well at $2.61-$2.70/kg, while Hereford-Friesian, 326346kg, were not far off that pace at $2.59-$2.66/kg. The weaner pens housed some top quality special entries and that was reflected in their prices. Angus steers, 199-260kg, managed $790$900, with the lighter line nearing $4.00/kg, while Angus-cross heifers from the same property and 157-204kg sold for $550-$685. A consignment of Angus and Simmental heifers also got the attention of those on the bench as they ticked a number of boxes. Angus, 292kg, sold for $860, while Simmental, 300-334kg, were the
FARMERS WEEKLY – farmersweekly.co.nz – May 21, 2018 only weaner’s to push close to the $1000 mark at $920-$1005. A small entry of Friesian bulls were hard to sell and four lines at 126-163kg made just $200-$370. It was a solid sale for the majority last Thursday at COALGATE with just over 3200 yarded, backed by mainly local buying power. Top store lambs softened on recent levels with heavy mixed sex lines earning $100-$112, medium types were steady at $80-$94. Medium and heavy ewe lambs were solid at $84-$93, while male lambs fetched $77-$100. Prime lambs were hot property and prices lifted $7-$9 for the top end. Medium and good types also lifted by similar margins trading at $140-$179, and the lighter end firmed to $120-$139. A single ewe managed top honours for the day at $192, though this was well short of recent top levels. Other heavy lines made $175-$182, with good types steady at $143-$166, medium ewes earned $110-$135, and the lighter end were solid at $68-$106. Rams traded at $60-$116. Scanned-in-lamb ewes are starting to make an appearance. Nine 2-tooths earned $154, and mixed-age lines were picked up for $149-$176. A sizeable bench of buyers were in place for a moderate yarding of just under 700 head. Expectations were met with the majority of the yarding trading at current market values, though some did manage to lift on recent levels. R2 steers regained some ground with small lines of Angus, 345396kg, strong at $2.82-$2.84/kg for most, Hereford-Friesian, 398451kg, earned $2.66-$2.84/kg. Dairy-beef weaner steers lifted with 169-218kg, earning $590$735, $3.33-$3.49/kg. Angus heifers, 250kg, were solid at $785, $3.14/kg. Friesian bulls softened with 207225kg, back at $570-$620, $2.65$2.78/kg, lighter 107-126kg lines were harder going and managed just $280-$300. A feature was a consignment of vetted-in-calf traditional mixedage cows, these were well sought after with buyers from mid and
South Canterbury as well as Marlborough all vying for them. Angus 485-661kg, traded at $1200$1580, and Hereford, 550kg earned $1200. Angus-Hereford run-with-bull, 433-611kg, fetched $900-$1120. The prime market was solid for the majority. Prime steers, 545600kg softened to $2.58-$2.62/ kg, whilst 447-506kg lifted to $2.57-$2.67/kg. Heifers, 410442kg, earned $2.42-$2.61/kg, and 355-400kg returned $2.22-$2.40/ kg. Prime cows, 561-643kg, lifted to $1.81-$1.87/kg. SOUTH CANTERBURY SOUTH CANTERBURY The TEMUKA yards certainly had something for everyone in both the cattle and sheep pens at last Monday’s sale, amounting to another big day at the office. Lambs continue to be the shining light in the sheep pens with prices reaching seasonal highs, though it is hard to fault a ewe market that sells at consistently strong levels. As the season marches on more specially advertised consignments of store lambs are coming forward, and today’s feature was around 1100 half-bred lambs from Lilybank Station, Lake Tekapo. These were keenly contested and four lines of ewe lambs sold two ways for $113-$131, while two very good lines of wethers made $123$134. The buying bench for the mixed sex lines was wider spread and the top cuts made $115-$128, and second, $99-$110. Other good mixed sex lines made $117-$131, while prices lifted for mediumgood types at $98-$119. Lighter lines sold for $75-$106, with most 29kg and under selling over $4.00/ kg live weight. The prime lamb section was the smallest but what it lacked in numbers it made up for in the size of the prices. The return of a buyer to the market resulted in a lift by around $10 per head, with most trading at $120-$168. Prime ewe numbers swelled to just over 2000 head, as three big consignments of finer wool types helped boost volume. A much larger number of ewes sold in excess of $200, with prices very strong through the lighter pens at
$100-$169. Very light lines made $70-$93. Small numbers of scanned-inlamb ewes are starting to trickle in - evidence that this is underway on the early country. This could prove to be a profitable market this year given the high lamb prices, and those offered certainly reflected that as they sold for $178-$181. Prime cattle prices continued to be under pressure due to very limited space, while all bar the lighter end of the boner cows firmed for the second week running. Prime cattle numbers are relatively low but there are still too many for what is required, with processors still full or working through backlogs. This meant soft markets and steers sold to a top of $2.59/kg for 607kg Angus, while Hereford-Friesian, 444-665kg, made $2.51-$2.57/kg. Lighter Angus heifers, 460-568kg, fetched $2.55-$2.67/kg, and good yielding Hereford-Friesian, $2.54-$2.58/kg. Lesser lines made just $2.34/kg. Prime cows were not immune either and while Angus, 625-639kg, managed $1.83/kg, others eased to $1.70-$1.80/kg. A good bench of buyers again came forward for boners, with the firm market the previous week still leaving some room in budgets for the top and second cuts. Nearly all Friesian and Friesian-cross lines traded at $1.20-$1.53/kg, with top lines earning $1.42-$1.53/kg, second cuts $1.30-$1.40/kg, while lighter lines eased to $1.20-$1.33/ kg. Limited numbers of Jersey also fitted into the lower end of that price range. OTAGO OTAGO Store lambs came forward in big numbers at BALCLUTHA last Wednesday, as the year marches closer to the winter months. The store lamb market was solid as it held for another week. Heavy lambs made $110-$120, medium $90-$110, and light, $60-$90. Prime lambs mirrored the store section and heavy lines sold to $140-$180, and medium $120-$140. Lighter lines took a lift, bringing them in line with medium lambs, and few could
be purchased for less than $120. Heavy ewes made a good start, with prices firm at $140-$180, though prices softened for the remainder with medium types making $100-$130 and light, $80$100. Lower condition ewes sold for $50, and rams, $80-$110. SOUTHLAND SOUTHLAND Cows continued to flow with consistency into the LORNEVILLE sale yards last Tuesday, while solid competition for sheep resulted in a steady to firm store lamb market, and improved prime. Heavy store lamb prices mirrored the previous week’s results at $100-$115, while a firm tone for the balance had medium types at $90-$100 and light, $70$85. Improvements were much more evident in the prime pens though as both lambs and ewes lifted in price. Lamb prices were up $5$10 across the board, with heavy types making $150-$172, medium $130-$141, and lighter, $125-$129. A big lift in ewe prices meant the top lines reached $140-$176, while medium ewes realised $108-$136, and light, $80-$96. Very light ewes made $20-$70, and rams, $107$128. Most of the cattle action was in the prime pens, and more specifically the cows. Prices were reasonably steady despite the larger number and those 450kg plus traded at $1.18-$1.25/kg, which was very much in line with the previous week. Lighter types, 420-450kg, made $1.10-$1.20/kg and 380kg down to 80c/kg. Prime cattle numbers were limited as steers, 420-450kg, sold on a steady market at $2.35-$2.50/kg, while beef heifers, 420kg plus, firmed to $2.35-$2.45/kg. A small store section was a game of two halves, as demand was solid for older cattle though there was limited interest for a small entry of weaner cattle. Herefordcross steers proved to be the most popular in the R2 pens, making $2.54/kg for 324kg, while heavier beef-cross, 380kg, returned $3.39/ kg. Beef-cross heifers, 373kg, managed to push to $2.42/kg, while Hereford-cross, 310kg, made $2.29/kg.
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48 FARMERS WEEKLY – farmersweekly.co.nz – May 21, 2018 NI SLAUGHTER LAMB
NI SLAUGHTER COW
SI SLAUGHTER STEER
AVERAGE FOR STORE LAMBS AT FEILDING
high $3.80-$4.00/kg lights Weaner Angus steers,
Lamb yard prices soar Annette Scott firstname.lastname@example.org
ONFIDENCE is pushing South Island lamb prices to levels well above the five-year average for this time of year while seasonal competition in the North Island has bumped prices higher than expected. In the south the spot market price has topped at $7.30 a kilogram and in the north a further lift in the market has levelled farmgate prices at $7.30-$7.50/kg. South Island lambs are making 38% or $2/kg more than the five-year average. On a 19kg carcase that makes an extra $38 a head. While at this time of the year it is normal for price lifts in line with supply, Canterbury livestock broker Peter Walsh said both prime and store lambs are trading in much stronger markets than is usual. The strong market throughout the South Island is largely built on an abundance of feed. “Farmers are not in a position to have to sell so they are targeting the higher weights and when you are getting $140-$150 for top lambs, buyers are not afraid to pay $100-$110 for store lambs.” With sheep numbers historically down the limited lamb supply is also helping strengthen the markets. “Farming is built on
HOLDING STOCK: Farmers don’t need to sell lambs so they are targetting higher weights, Peter Walsh and Associates broker Peter Walsh says.
confidence and the weather and the exports companies have done a good job in building value into the schedules. “Farmers can feed the lambs so they can get the ultimate out them and that is giving confidence industrywide. The unwavering confidence in lamb returns for the rest of the season has drawn another wave of buyers out of the woodwork. Some of them are finishers who have their autumn contracts killed and are now looking for replacements. Large parts of Otago and Southland are very bare on lambs following
the midsummer drought destocking with buyers from those regions pulling lambs back down south from Canterbury. “It’s good for farmers,” Walsh said. The strong market in the north is predominately driven by seasonal supply competition, AgriHQ analyst Rachel Agnew said. “Across the country it is different prices but similar trends forcing stronger markets in both the prime and store markets accordingly for this time of year. “The store markets underpinned by confidence in schedule prices are sending the message to store lamb
buyers that there is a dollar to be made given the schedule trends,” Agnew said. Reports suggest there are still decent numbers of prime lambs around in the South Island, both onfarm and heading to slaughter, but autumn contract prices have begun to leak into the spot market, causing a price spike. There’s the odd instance of the spot market reaching $7.30/kg but it’s more common for $7.10-$7.20/kg to appear on kill sheets. This trend is expected to continue in the coming weeks before flattening out. In the North Island, despite processors trying to hold prices from lifting too early in the season, it appears the competitive pressure is too great. Local trade is also weighing in on the game, offering more than export, Agnew said. “While local trade takes only small volumes they are setting price expectations at the higher level.” The strong store market, particularly in the sale yards, is also competing with the processing space with the North Island lamb supply expected to be tighter for the rest of the season compared to last year and five-yearaverage trends. “The buoyant market reflects the confidence in future schedules and also an awareness that the number of store lambs will only begin to decline in the weeks ahead,” Agnew said. The AgriHQ May outlook forecasts a farmgate lamb price of $7.95/kg for October.
250-280kg, at Feilding Weaner Fair
$1720-$1750 Top 8 1/2-year Angus cows, vetted-in-calf to Angus Bull, at Wairoa Fair
Effect of M bovis felt at some yards AT THE forefront of many farmers’ minds is the now well-known cattle disease Mycoplasma bovis. For some farmers the link is a direct one as the numbers of properties affected is growing Suz Bremner rapidly. Others are standing on the AgriHQ Analyst sidelines, but for how long? It is a disease that affects every single farmer to varying degrees, whether directly or indirectly and we have seen a subsidiary effect in the past few weeks on prices at some sale yards in the South Island. Temuka the previous week was just the start. Unfortunately for this yard, it sits in the thick of M bovis country and so you expect it to be the first one to show implications. Store cattle were very hard to sell with very little inquiry from outside the area because of the M bovis risk. We can’t blame the buyers. If I was in the same boat I would be just as cautious – perhaps looking at other avenues such as lambs instead of risking bringing the disease onto our property. Though, in reality, it is now so widespread it is more a matter of when, rather than if. Even here in the North Island there is talk of cautious bidding on stock that potentially could have come from the South Island. Personally, though, I’m not sure buying onfarm is the answer either, unless one is absolutely sure they can track those cattle right back to their origin. There are still issues such as bull calves being gathered up from a number of farms and tagged under the buyer’s NAIT number. We can’t pretend this has been resolved, no matter how much the Primary Industries Ministry would like us to believe it. I was saddened to hear that there is a black market for cows going on. We really are our own worst enemy sometimes when the determination to get what we want at the cheapest possible price overrides logic. These are worrying times for us as farmers and we need to stand together, not make the situation worse. email@example.com
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