Farmers Weekly NZ September 22 2025

Dawn clears dark outlook for Alliance

REJECTION of a $250 million capital injection from an Irish meat company would leave Alliance Group shareholders with few options and make insolvency a real risk, an independent assessment of the deal warns.

The report by Northington Partners released to the cooperative’s shareholders this week concludes that the $250m offer by Dawn Meats for 65% of the company is the best and only option to meet Alliance’s strategic and financial requirements.

Alliance chair Mark Wynne said while the report is stark, it is also supportive of the deal.

“Their assessment is very black and white,” he told Farmers Weekly.

“It’s very clear if there is a no vote the alternatives are very ugly and most likely require us to go through a process that could result in insolvency.”

Wynne said banks require Alliance repay its debt.

Over the past few years the meat company has been unable to fully repay annual working capital, which has accumulated to about $200m of debt.

“If it’s not the Dawn Meats proposal then someone else is going to have to pay it back.”

The Northington report is blunt:

“If shareholders vote no, Alliance has a very limited and unlikely set of alternatives.

“It can pursue asset sales, site closures and large cost reductions, it can attempt to raise capital from shareholders or other investors, or it can go into insolvency.”

Northington values Alliance at a midpoint of 61c a share and the Dawn Meats offer at a midpoint of $1.18/share, a 93% premium.

If approved by farmershareholders, the Alliance Group Ltd would be 65% owned by Dawn Meats and 35% by Alliance Co-operative, which would in turn be wholly owned by farmer-shareholders.

The Northington report considers as reasonable the cooperative holding two of five directorships on Alliance Group, with veto rights for a number of major decisions.

Shareholders have expressed regret at having to source outside capital, a view shared by Wynne, but he said Dawn Meats offers more than cash.

“They bring capability especially in beef, a complementary geographic footprint and deep customer engagement.

“The reason I think we will get a yes vote is that not only does it solve our balance sheet issue, but it brings a great partner to the table.”

Some shareholders believe the

Green clean-up help extended

Ben Ayers, left, and Tom Smythe have been part of the Enhanced Taskforce Green initiative, working in flood-recovery crews in the Tasman region. Their roles have now been extended to December thanks to additional government funding. Photo: Tim Cuff

Bounded by two rivers, Mangere Falls Farm, run by Rob and Mandy Pye, has pulled in a slew of awards for its environmental work. ON FARM 10-11

Farmer claims regional council consent processing more litigious.

Ben Anderson wants to build a hedge against the weather.

Neal Wallace NEWS Production

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1-11

News in brief

Jobs to go

More than 100 staff from Tokoroa’s local plywood manufacturing plant are set to lose their jobs as the company looks to source supply from overseas.

Carter Holt Harvey is looking to close its Tokoroa-based plant and import ply from overseas, with the loss of up to 119 fulltime jobs. This follows OJI Fibre Solutions cutting 130 jobs after it closed the country’s last paper-making machine at the neighbouring Kinleith site in June.

GDT down

24-27

SMASHED: Alistair Young, chair of NZ Avocado Growers Association, says the losses in the valuable Katikati growing district are likely to be as high as 80% on many orchards.

Global Dairy Trade prices fell marginally in the latest auction as buyers in southeast Asia and the Middle East took up the slack in prices from the previous GDT auction. The GDT price index fell by 0.8% and the all-important whole milk powder prices also fell by that amount. Products contributing to the holding pattern were skim milk powder, down 0.3%, butter down 0.8% and anhydrous milk fat down 1.5%.

Stock movements

New livestock movement restrictions are being introduced to parts of central Otago to deal with infected possums that are spreading bovine Tb to livestock.

The new movement control area covers 110 properties in Tarras, Lindis Valley, the upper Manuherekia and the top end of Ida Valley and comes into effect on October 1. There are 15 herds infected with bovine Tb in New Zealand, of which a third are in the Otago region.

Big plans

Scott Technology plans to double its annual revenue by 2030 and it has forecast record earnings in FY2025 in the range of $30.5 million to $31.5m.

The listed company gains about 22% of its earnings from automated and robotic technology in meat processing. Scott installations are in meat plants owned by Alliance, Silver Fern Farms, AFFCO, ANZCO, JBS, Cargill, Tyson and others.

‘Common sense’ wins after ag subject snub

Gerald Piddock NEWS Education

THE government’s U-turn on keeping agriculture and horticulture as high school subjects shows that common sense has prevailed, Massey University’s Head of the School of Agriculture and Environment Paul Kenyon says.

The original decision on September 11 – in terms of which agribusiness would not be a curriculum subject in high schools from 2028 – did not give a lot of thought to the pathways for young people going from high school into university education, he said.

“They forgot that students make decisions on high school subjects where they are going to get credits. If the students perceive they are not going to get credits from ag and hort-based courses, they wouldn’t choose them.”

It would have driven young people away from those subjects and with New Zealand being primary industry led, it needs its best and brightest going into that sector, he said.

“We don’t want to cut that pathway off.

“Also, having ag and hort in high schools, it exposes a lot of students who otherwise wouldn’t

Continued from page 1

$40m proposed to be distributed to shareholders is too low, especially given that Alliance has not paid competitive prices for stock this season.

Wynne said provided livestock targets are met the proposal is for the co-op to pay two $20m tranches at the end of the 2026 and 2027 financial years.

These would be a mix of dividends and rebates based on livestock supplied in the previous two years.

have thought about going into those industries.”

The decision was reversed on September 16, after the Ministry of Education (MoE) reviewed and revised its advice and “acknowledges the strong feedback received from educators, industry and communities”.

“This reflects the subject’s specialist scientific nature and the conclusion that it would not be adequately covered through other science subjects or the primary industries subject. The subject will be developed alongside other science disciplines to maintain curriculum coherence and support progression from Year 11 science,”

the MoE said

“We have also confirmed that agribusiness will remain integrated within Business Studies at Years 12 and 13. The Ministry will work closely with subject associations to ensure agribusiness is clearly visible and valued within the subject.”

Kenyon was pleased the decision was reversed so fast. If the MoE had instead decided on a long consultation process, it may have dissuaded some teachers considering becoming a speciality primary sector teacher because of the uncertainty around the original announcement.

It could have meant three years

It has been a difficult 18 months for Alliance and Wynne conceded they have lost suppliers and not been competitive in the livestock market due to financial covenants imposed by their banking syndicate.

Initial feedback from shareholders indicates support for the capital raise, he said.

Alliance will post a profit this financial year but Wynne acknowledges the new entity will have to perform to win back the loyalty of some shareholders.

“We will have to walk the talk

of potential new teachers being lost between now and 2028, he said.

“We need a pipeline of enthusiastic, well-trained teachers so that our high school kids get the appropriate education and are enthused by it and see the opportunities within the primary industry and want to enter the primary industries whether that’s at tertiary level, or straight into the industry.”

and prove to shareholders that we do what we intend to do.”

He said the co-operative has spent the past 18 months extracting costs and rebuilding every aspect of the business.

“We will be in a much better shape once we address our financial issues.”

The proposed new board would be chaired by Thomas Moran, the current chair of Kerry Group, with the other two Dawn Meats appointees Niall Browne, the company’s current chief executive, and Sean Breen.

The announcement and reversal came just weeks after Kenyon announced the creation of courses for teachers to upskill them so they can teach ag and hort subjects.

There will be eight short teaching courses with the first set running as a pilot in October. They will cover subjects such as soil and environmental science, agronomy, horticulture, animal science and agribusiness.

If shareholders vote no, Alliance has a very limited and unlikely set of alternatives.

Report

Northington Partners

The Co-op directors on the Alliance board would be Jared Collie and Wynne.

The Co-op board would be Collie, Wynne, Ross Bowmar and Matthew Iremonger.

They are targeting both teachers with little to no background in the primary sector, and those with knowledge gaps.

The courses will meet the huge demand from students wanting to learn about the primary sector, Kenyon said.

They were co-developed with the New Zealand Horticulture and Agriculture Teachers Association and funded by the TR Ellett Trust.

Kenyon believes that demand would have been impacted if the original curriculum proposal had gone ahead.

Within the central-lower North Island alone, Kenyon said, he has been told there are more Year 12 and 13 students studying agricultural subjects than in some of the more traditional science subjects.

“There’s clearly growing demand and that’s clearly a combination of young people seeing and hearing how important agriculture and horticulture is for our economy and therefore making that choice.”

Association treasurer Kerry Allen said across the country there are 351 schools that teach ag and horticultural science either as a unit or achievement standard. Out of that, nearly 100,000 students took it in the past eight years and 11,000 last year.

A series of 24 roadshow meetings begin on September 29 ahead of a Special General Meeting and final vote in Invercargill on October 20.

The result will be announced the following day.

Before that meeting a webinar will be held involving Wynne, Browne and Alliance chief executive Willie Wiese.

Approval requires two thresholds be reached: 75% of shares voted to be yes and more than 50% of the total number of shares in Alliance to be in favour.

TEACHERS: The original decision by the Ministry of Education could have meant three years of potential new ag teachers being lost between now and 2028, Massey University’s Head of the School of Agriculture and Environment, Paul Kenyon, says.

Case highlights council forestry shortfalls

Richard Rennie NEWS Forestry

THE lawyer for a Manawatū forestry company found not guilty after multiple prosecutions by Horizons Regional Council says the case highlights how major flaws in council process and interpreting national regulations cause significant cost and disruption to forestry operations.

Barrister Fletcher Pilditch KC defended forestry company John Turkington Limited (JTL), charged with multiple breaches of the Resource Management Act during forestry operations in northern Manawatū. The allegations spanned forestry activities between 2019 and 2020.

All up, the company faced 20 charges for breaches across three sites but was either found not guilty or had charges dismissed for lack of evidence.

While welcoming the court outcomes, Pilditch told Farmers Weekly the case highlights some significant shortcomings in both the investigation process, and in how councils are applying national environmental standards for forestry.

“In many cases those prosecuted may just choose to plead guilty. The cost of the fine is usually significantly less than the cost of defending the charges in court because of the cost of lawyers and expert witnesses.”

The prosecution of JTL highlighted the dilemma faced by forestry companies as they harvest forestry in areas where historically foresters were encouraged by local government to plant trees to the edge of waterways to prevent erosion.

The difficult but necessary task also now has the National Environmental Standards for Plantation Forestry (NESPF)

demanding a light footprint at harvest to minimise waterway damage in the process.

Many of JTL’s charges concerned earthworks’ impact on waterways and use of machinery near those waterways.

While the NESPF permit their use, subject to companies doing their best to minimise damage, Pilditch maintains Horizon’s staff lacked the skills to properly interpret the site and the efforts JTL had made to minimise damage.

“They were dealing with a company of very good standing, respected in the industry, even used by council themselves to demonstrate procedures, but there

TESTED: JTL legal counsel Fletcher Pilditch

KC said Horizon’s prosecution was a heavy handed approach to resolving new forest standards when alternative pathways for resolution existed.

was no trust they had made the efforts to minimise harm to the environment, which they had.”

He said that lack of understanding could have been better addressed through other enforcement options available to the council including abatement and mediation, allowing parties to fully explain operations and methodology, and gain a common understanding of the impact of the new national regulations.

That process could have also given all parties the opportunity to air issues through the Environment Court, which could then issue a ruling in the matters in issue and would have helped

everyone’s understanding.

“Instead, they charged the company with criminal offences, so of course the shutters come down, all dialogue stops at that point.

“Prosecution should really be the last resort.”

Pilditch believes the case highlights several missed opportunities for a better outcome, and lessons for the council.

“In the recent trial in 2023 the council witnesses responsible for the inspections that led to the charges had next to no experience in forestry harvesting. This was ultimately fatal to the prosecution case.”

Pilditch hopes the council learns from this and ensures that when inspecting and investigating they bring appropriate expertise with them.

He said the failure to do so in this case resulted in lengthy and costly litigation for everyone, including ratepayers and taxpayers.

“Presently there is a disconnect between those rules [NESPF] and how councils manage and interpret them.

“Prosecution is not the best place to come to a common understanding and work forward with that.”

New green standards have muddied rules: Horizons

Richard Rennie NEWS Forestry

HORIZONS Regional Council says the new National Environmental Standards for Plantation Forestry have bought challenges for all parties involved in the JTL prosecution.

In a written response to Farmers Weekly questions, Horizons regulatory manager Greg Bevin noted JTL’s charges were the first time the National Environmental Standards for Plantation Forestry

(NESPF) had been tested in court.

He said the NESPF bought challenging, ambiguous standards with it that are “open to interpretation”.

This was problematic for both forestry operators and regional councils.

“It there is no clarity around what is required, operators and councils may have differing interpretations around what is and is not compliant with the standards.

“If this cannot be resolved, as happens with other pieces of

regulation and legislation, courts may be left to make a decision on correct interpretation and create case law for others to follow in the future.”

He said in the JTL case the court had to determine if forest harvesting techniques had “minimised” disturbance on waterway margins. This had come down to the harvesting methodology chosen, as opposed to the extent of environmental impact associated with harvesting.

“The standards [of the NESPF] do not stipulate what actions

are considered enough to have ‘minimised’ disturbance, or how extensive any minimisation should be.”

JTL counsel has argued Horizons had other options than prosecution at hand to help it interpret the new standards, including abatement and mediation.

Bevin said all cases considered for prosecution were assessed on evidential sufficiency and whether it was in the public interest.

“Horizons conducts a review after every prosecution to

determine if there are any lessons learnt which can be applied in future.”

Horizons conducts a review after every prosecution to determine if there are any lessons learnt which can be applied in future.

Greg Bevin Horizons

Red tape roundabout infuriates farmers

Neal Wallace NEWS Regulation

REGIONAL council processing of consent applications is getting more litigious, says a farming leader – while a cabinet minister has told councils they need to acknowledge the Resource Management Act is changing.

Associate Environment Minister Andrew Hoggard is also calling for councils to show common sense and pragmatism.

“It’s not about letting them get away with doing something, but councils know the system is changing and it is going to be very different in the future and not a monumental legal process.”

Federated Farmers board member David Birkett said Environment Canterbury is being pedantic in processing consent applications and some of the information sought is not consistent with the RMA.

He knows of one Canterbury applicant seeking to renew a 17-year gravel extraction consent that has taken three years and cost $250,000. A decision is still to be made.

His catchment group has for two years been discussing the best way to renew 600 water consents but has still not had an answer.

“This is the sort of shift we’re seeing.”

Birkett and Hoggard were responding to reports that councils are more demanding, litigious and adversarial when considering consent renewals.

Hoggard singled out

Environment Canterbury and Horizons Regional Councils, and Federated Farmers said

Environment Southland has also adopted a more heavy-handed approach to compliance.

Ashburton cropping farmer

David Clark has unwittingly become the public face of Canterbury farmers claiming difficulty in dealing with ECan.

“It has struck a chord because so many are facing the same problems,” he said.

Clark said ECan requires him to dissect his Overseer and Farm Environment Plan line by line, relitigate 2009 baseline soil data, and model two different sets of rules for the council as his farm has been found to straddle two nutrient management zones.

The two zones would limit the

area of winter feed on each block and lock Clark into lengthy return periods of specialist vegetable seed crops rather than a flexible farming system.

Clark’s anxiety was heightened when an ECan official told him his consent application renewal process could become a publicly notified hearing.

“That was pretty confronting for a family farm,” said Clark.

He is seeking the renewal of a farming land use consent issued in 2017.

His farm achieved an A-grade environmental audit in 2024 and had been on track to meet all zone nutrient reduction targets.

Despite that, Clark has had to employ an environmental lawyer

RAGE OF CONSENT:

Federated Farmers board member David Birkett says farmers are finding regional councils increasingly difficult to deal with.

and consultant to meet ECan’s requirements, incurring costs he said will be of no benefit to the environment.

He has found ECan litigious, adversarial and with an approach he described as “we’ll say no unless we’re forced to say yes”.

“ECan is no longer fit for purpose,” he said.

“The culture of the organisation is toxic driven by activist councillors elected by urban Christchurch.”

The council relies on nutrient data from Overseer, which Clark said struggles to handle multiple arable crops with different growing patterns.

Alastair Taylor, Overseer’s chief customer officer, said seasonal and crop variation issues were fixed in 2022-23. He said he has offered to assist ECan staff to understand and use the system.

Clark has had phone calls and messages from up to 80 farmers and his Facebook post has been shared more than 900 times and attracted over 200 comments.

This week’s poll question:

Is getting a resource consent harder than it used to be?

Have your say at farmersweekly.co.nz/poll

Rules are rules: regional councils defend their stance

Neal Wallace NEWS Regulation

THERE is no such process as renewing a resource consent, says Environment Canterbury consent planning manager Henry Winchester.

“Every application to undertake an activity requiring consent must be processed in accordance with the processes in the Resource Management Act [RMA],” he said.

“While there are some protections for existing users while new applications are

processed, and consideration of investment in an activity, there is no such thing as a consent renewal under the RMA.”

Winchester was commenting on claims by Canterbury farmers that the regional council has become litigious and adversarial when assessing resource consents, even for existing activities.

While appreciating the process can be frustrating, applications, even for existing activities, must be considered against the current state of the environment and relevant legislation, he said.

Winchester said Ashburton farmer David Clark sought

consent to include winter grazing and dairy support, which could increase nutrient losses over what was previously authorised and occurred. He said supporting modelling was not adequate to show the new ventures would operate within nutrient loss limits.

The council’s establishment of nutrient management zones was based on science and followed a community planning process and must apply to all consents, Winchester said.

He said water quality in the Hinds Plains zone is considered degraded while the Ashburton catchment is considered at risk.

Winchester acknowledged issues using Overseer in complex farming systems, but the council no longer solely relies on its numbers when considering consents. Instead it favours specifying what farm systems are authorised.

Horizons was singled out by Associate Environment Minister Andrew Hoggard for slow processing of consents, but a council spokesperson said in the past year it had 361 applications lodged of which 230 were granted and 75% were processed within the statutory time frame.

“We had a lack of senior staff, and one team leader was on a

secondment during this time, which may have had an impact.”

Local Government NZ regional chair Daran Ponter saids councils have not become more litigious and adversarial but have rules and processes to follow.

Expectations may have been elevated that there are pending changes to the RMA, but those will take 18 months to implement.

“We are up against farmer expectations that regional councils have received that message and will start making changes that reflect that.”

Councils cannot ignore their current legal processes.

Keeping in shape mentally and physically helps you put the best into the farm so the farm can give the best back to you.

Sam Whitelock Farmstrong Ambassador

Green clean-up help extended in Tasman

Fiona Terry NEWS Weather

APROGRAMME which has employed job seekers to help clean up trees after the Tasman floods has been extended through to December after the government provided additional funding for the project.

Minister for Social Development and Employment Louise Upston confirmed a further $300,000 in funding during a recent visit to the Tasman region.

The money enables the Enhanced Taskforce Green (ETFG) programme to be extended beyond its original end date of October 10, to operate instead through to December.

The news was applauded by those gathered at Echodale Pear Orchard at Ngātīmoti where she made the announcement. The 22 hectare orchard was hammered during both flood events in June and July, with 15ha swamped by the Motueka River.

Up to 5000 pear trees were destroyed by the force of the water and in places silt and debris left behind was a metre high.

“Enhanced Taskforce Green programme was activated in

July, enabling MSD to employ local job seekers to assist farmers and growers to recover from this event,” said Upston, who acknowledged the devastation the flood events had caused for so many. She thanked those from ETFG assembled for having volunteered to be part of the initiative and praised them for how much hope they’d given to those they’d helped.

“Extending the programme until December 2025 will support these job seekers with the cost of living and give them work experience and the opportunity to transition to seasonal horticulture work without returning to benefit,” she said.

Your boss for the next three days is a little old lady with tears in her eyes who’s just so rapt that you’ve come to help ...

Ben Ayers Enhanced Taskforce Green

MSD had no problem finding crews, with 60 jobseekers quickly raising their hands for the 18 places, and 60 properties registering as requiring support.

For Echodale Orchard’s manager Charlton Malcolm, the assistance has been invaluable.

“We’ve had two crews from Taskforce Green and that’s definitely helped a lot. They’ve cleared debris and also replanted willow along the river to help provide protection from future erosion.”

It will take at least four years for any replacement fruit trees to be as productive as those destroyed. In the meantime the harvest will be impacted significantly, and costs from the hire of heavy machinery and additional labour to help with the clear up have been mounting.

Malcom predicts that total recovery – including replacing infrastructure like pumps, sheds and irrigation – will cost around $600,000.

“It’s been a real relief to get the extra help from Taskforce Green. It’s saved us a huge amount of money. They’ve been absolutely brilliant and done heaps. Not having to deal with the paperwork to employ the extra help I’d have needed has been a massive advantage. MSD made it all very simple. It’s also meant my own staff have been able to get on with the orchard work – because this is typically a really busy time

now that the trees are going to blossom.”

An early campaigner for the deployment of ETFG was Rural Support Trust chair Richard Kempthorne, having quickly assessed the need among the farming community.

“It’s fantastic to have the extension announced because it’s clear that, as well as the programme has worked to date, and as much as the crews have done, there’s still a lot more to do.

“I’m so pleased and appreciative of the government that the news gives certainty for the people going forward. They’re tremendous teams, they’re really enjoying working together, and they are so appreciated.”

MSD engaged Whenua Iti Outdoors to deliver the ETFG programme, train the crews, supervise their work, and transport them on farm.

Jobseeker Ben Ayers said the opportunity to be part of the crew has been a joy. A beekeeper by trade, he’d been desperately looking for work for three months.

“I signed up straight away and it’s been the best job I’ve ever had in my life. Whenua Iti has been great and I’ve loved the work. To turn up to a workplace, and your boss for the next three days is a little old lady with tears in her eyes who’s just so rapt that you’ve come to help – and she brings you the best scones you’ve ever had in your life – is amazing. And that’s happened multiple times!”

At Debra and Brett Robinson’s farm near Tapawera, their entire 32ha was flooded. All that was spared was their home and the garden immediately surrounding it. What remained as the water subsided was sand, stones, logs and other debris, up to 3m deep.

“Taskforce Green were just incredible,” said Debra, who’s lived at the property for 40 years.

“They were so uplifting and they made a fantastic job of clearing up and getting rid of it. Nothing was done roughly, it was always finished beautifully and with care. We went from handshakes at the start to hugs all round at the end. Having them here was very cool.”

DEPTH: Echodale Orchard manager Charlton Malcolm shows Louise Upston the height at which floodwaters swept through the orchard in the Motueka Valley.

Photo: Tim Cuff

DAMAGE: Social Development and Employment Minister Louise Upston inspects damage caused at Echodale Orchard with manager Charlton Malcolm, left, and David Garcia from Enhanced Taskforce Green.

Photo: Tim Cuff

Yearling Angus bulls break through

$20,000

Hugh Stringleman MARKETS Livestock

STOKMAN Angus, Rotorua, made the top price for the yearling bull sale season so far with $27,000 paid for Stokman Fair & Square V288. He was sold to Blair and Jane Smith, Fossil Creek Angus, Oamaru.

Stokman Stud sold 114 out of 122 bulls catalogued and averaged $7044, compared with $5337 last year, with the bull market lifting for all sellers and buyers this year.

The Stokman sale also featured two bulls at $20,000 and four transfers at $15,000, to Turiroa, McFadzean Cattle, Maranui and Puketi.

Lot 111, Stokman Resilient V321, was sold for $7200 and the proceeds donated to the Greenlea Helicopter Service, Rotorua.

Totaranui Angus, Pahiatua, sold 77 out of 79 yearling bulls offered and averaged $5871 this year compared with $4453 last year.

The top price was $21,500 paid by a commercial farmer for Lot 10, Totaranui V299, in the top 25% for calving ease direct and great growth rate EBVs.

McFadzean Cattle Co, Masterton, sold 28 of its Super Angus and Meat Maker bulls for an average of $6357, with a top price of $20,000 paid by George Fountain for Meat Maker 4436, Lot 5.

In the Cruizy Calves yearling bulls the average price of $6184

over 46 bulls was nearly $2500 ahead of last year and the top price was $9000 made three times.

Turihaua Angus, Gisborne, had a full clearance and a top price of $12,500 paid twice, by Limestone Valley for Lot 1 and by Whareopaia for Lot 5.

The 26 yearlings averaged $8923, compared with $7908 last year, and the eight two-year-olds averaged $6187.

Shadow Downs Hereford, Waverley, had a full clearance of 57 bulls, 15 yearlings and 42 twoyear-olds, averaging $3173 and $4343 respectively, with a top price of $7400.

Kairaumati Herefords, Thames, sold all 30 18-month bulls averaging $4240 and 15 out of 18 yearlings averaging $3520 with a

top of $5500. There was a transfer to Horizon Herefords at $5000.

Mangaotea Farm, Taranaki sold bulls from four breeds; 2yo Herefords averaging $4710, 2yo

Murray Greys $4800, 2yo Angus $4700, 2yo Jersey $3493, yearling

Angus $4880, and yearling Jersey $2156.

Charwell Herefords, Whakatane, sold 58 of 61 two-year-olds averaging $3986, all 20 18-month bulls at $3265 and 10 of 24 yearlings at $2149.

LIC joins Sharesies to streamline trading benefits

Hugh Stringleman

MARKETS Genetics

LIVESTOCK Improvement

Corporation is to join Fonterra on the Sharesies platform to streamline share trading for more than 10,000 farmer-shareholders.

In the Sharesies Business arm, companies can connect and engage with shareholders, raise capital, and deliver employee share schemes.

Sharesies co-chief executive Leighton Roberts said the cooperative model is a hallmark of the primary sector and functions

best when members are engaged. LIC’s farmers can easily buy and sell shares when out in the field on the Sharesies app, he said.

LIC chief executive David Chin said he wants to improve the customer experiences and ensure the co-operative is easy to deal with.

Farmers will adapt to new technology and they will be able to trade on the Sharesies platform by the end of the year, he said.

Among other functions LIC share trading can be done on a mobile device, provide alerts when the share price reaches a pre-arranged interest level, view holdings for

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S1 Roller door 3x3m, PA door, int wall

Covertek 407 paper to enclosed bay roof

multiple farms under one log-in and switch between LIC and other personal investments such as shares, savings or Kiwisaver under one log-in.

Roberts said in the past 12 months some 80% of Fonterra (FCG) buy orders have been traded on Sharesies.

4 bay open front lean to 3.3-4.2m high, 4.2m bays 9m deep + 900mm extended front

Zinc corrugate cladding

Barge flashing

RELOCATING: Stokman Fair & Square made the top money of the yearling bull sales season so far and will travel from Rotorua to north Otago.

FMP undersubscribed as farmers wait and see

FORECASTS of lower but still rewarding farmgate milk prices did not prompt much interest from dairy farmers in Fonterra’s Fixed Milk Price options for September.

Only 90 farmers applied for one or more of the four ways of locking in prices this season and next.

In fact, one option did not attract any applications. No one was interested in locking in a minimum price of $9.20/kg milksolids after the premium and service fee were deducted.

Fonterra offered a standard FMP of $9.93 net for 15 million kilograms and only 1.47 million kg were applied for; therefore all applications were successful.

About one-third of the milk price range option covering 3 million kg at $9.40-$10.50 was applied for and therefore successful.

The two-season offering of $9.31 for 3 million kg attracted 0.58 million kg of applications, all successful.

Earlier this year the FMP offers attracted 300 to 500 applications at net prices of $9.63 to $9.93.

In August 600 applications were received across all four options based on a standard FMP of $10.10.

Fonterra farmers know that the final farmgate milk price for the 2025 season will be confirmed on Thursday, September 25 at $10.15, give or take 5c. It appears that FMP offers in the 2026 season are not so attractive below $10.

Most milk price forecasts are currently around $9.75 to $10; Fonterra’s own forecast is a midpoint of $10 within a range of $9 to $11.

ASB senior economist Chris

Tennett-Brown said his own $9.75 forecast has upside risk despite the fall in Global Dairy Trade prices early in September.

“We need to wait and see where prices and production go over the next few key months.

“Meanwhile, we will continue to review our cautious $9.75 forecast, which is not too far below Fonterra’s mid-point and below where milk price hedging has been available for farmers.”

ANZ agricultural economist Matthew Dilly said his forecast is $10, pending the revision due from Fonterra on September 25.

Agriculture keeps sunny side up

Staff reporter NEWS Trends

RECORD milk prices and increased revenue from sheepmeat and beef have seen farmer confidence rise to its second highest level in the past decade, according to the latest Rabobank Rural Confidence Survey.

Following net readings of +44% in the last two quarters, farmer confidence in the broader agricultural economy crept marginally higher to a net reading of +46%.

The latest reading has only been bettered once over the past 10 years (+54% in quarter two, 2017) and marks the fourth successive quarter of elevated farmer sentiment.

The latest survey – completed early this month – found 51% of New Zealand farmers are now expecting the performance of the broader agri economy to improve in the year ahead (up from 48% in the previous quarter) – though the number expecting conditions to worsen has also risen, to 5% (from 4% previously).

Rabobank chief executive Todd Charteris said he is pleased to see strong farmer confidence extending into a fourth successive quarter.

“The cyclical nature of farming means it’s rare for farmer sentiment to stay elevated for such an extended period. We have to go all the way back to the 2013/14 season for the last time we had four consecutive quarters where confidence was at such lofty heights,” he said.

It’s rare for farmer sentiment to stay elevated for such an extended period.

Todd Charteris Rabobank

As was the case in 2013/14, Charteris said, a record milk price has been the catalyst for the latest extended spell of strong farmer sentiment. The red meat sector confidence is also soaring off the back of an ongoing wave of high commodity pricing for beef and sheepmeat.

RISK: ASB senior economist Chris Tennett-Brown says his $9.75 forecast has upside risk despite the fall in Global Dairy Trade prices early in September.

Hugh Stringleman NEWS Dairy

Avos are toast as high winds smash crop

Richard Rennie NEWS Horticulture

ABATTERING ram of westerly winds has left western Bay of Plenty avocado growers counting the cost of export crop losses last week.

Spring’s arrival has brought unrelenting westerly winds, slamming the western BoP hard, with gusts up to 100kph being recorded in Katikati, a prime avocado growing district.

Some local growers are reporting the worst winds they have suffered for at least 20 years, with many suffering losses as high as 80%.

This comes as the industry enters its export crop harvest period, which extends from now to Christmas.

Alistair Young, chair of the New Zealand Avocado Growers Association, has suffered at least 70% losses on his Katikati orchard on fruit that had been due soon to be harvested for export.

He said the district reported wind speeds well over 100kph, with damage reports throughout the BoP.

Options to use the fallen fruit are being explored, and they may include offering ripe fallen avocados to food charities.

losing a lot of flowers that appear alongside the crop they have also lost.”

The crop losses come in a year when the season’s estimates are back on last year’s record 41,000 tonnes at 35,000t, or about 6 million trays.

With about 50% of fruit consumed locally, the sector has been putting greater focus on developing export markets in past years, and performance has been particularly strong in China.

NZ Avocado CEO Brad Siebert pointed to a consistent doubling of exports to China over the past few years since exports to that market became possible in 2018.

“Those volumes have gone from 96,000 trays the year before last to 200,000 trays last year, and we expect to export 400,000 trays this year,” he said.

Siebert took issue with recent reports of avocados reaching record low prices of 19c in parts of NZ. Woolworths had reportedly been selling them for $1-$1.20 each, to record demand.

About 55% of the country’s avocados come out of the BoP, with the remainder largely in Northland, which has not had as strong winds.

Young said while some growers in Katikati have suffered up to 80% losses, the losses through the entire BoP are probably nearer 30%.

We really only have one option and that is to go in and mulch the whole lot, and sooner than later otherwise we will have hectares of guacamole to deal with.

Weather Watch forecaster and director Phil Duncan said the high winds being experienced are unlikely to abate much in the coming weeks, given the spring equinox’s approach.

But under the industry’s Good Agricultural Practices (GAP) programme, growers are unable to harvest the fallen fruit for retail sale.

guacamole to deal with.”

“We really only have one option and that is to go in and mulch the whole lot, and sooner than later otherwise we will have hectares of

Young has been in contact with the 100-plus growers affected and has been impressed with their ability to get on and deal with the losses.

“But there is also an impact upon the next crop, with many orchards

“August has in fact only seen a slight increase in volume on last season, and the past four weeks have had quite a reduction in volume.

“It could be the pricing strategies some outlets have chosen to take, but the reality is fruit volume locally is pretty stable.”

“It is a little early for these winds, however, by about a week or so.

“What is also notable is that this spring is proving to have a colder start, almost more like what you would have seen 20 years ago or so.”

Alistair Young NZ Avocado Growers Association

SMASHED: Alistair Young, chair of NZ Avocado Growers Association, says the losses in the valuable Katikati growing district are likely to be as high as 80% on many orchards.

Progressive farm ahead of the game

PREMIUM beef production from an environmentally progressive farm has won Northlanders Rob and Mandy Pye a series of awards and recognition in recent years.

Mangere Falls Farm, in flat to rolling country about 20km inland from Whangārei, was the supreme winner of the Ballance Farm Environment Awards for 2025 in Northland.

Mangere Falls beef production was one of five national finalists in the Silver Fern Farms Plate to Pasture Supplier Awards in 2021 and again in 2025, for the Upper North Island, Waikato, Bay of Plenty and Northland.

Seven SFF regional Plate to Pasture awards have also been awarded to the Pyes’ farming business.

The Plate to Pasture Farmer Conference is rich in content with considerable detail about the markets and customers, Mandy said, and the couple have attended three events.

The Pye family business is on 335 hectares total farm platform (325ha effective) with the 260ha home farm at Kōkopu and 75ha support block at Puwera, about 25 minutes away.

The home farm is leased from Mandy’s family and is bounded by two rivers, the Mangere and the Wairua, with 6km of riparian fencing and cattle exclusion completed about three years back.

The Pyes have planted more than 22,000 native trees over the past seven years to help improve native

biodiversity and bring back more native bird life.

“The river boundaries bring a huge responsibility to care for the waterways and make sure that what runs off our farm is the best quality possible,” Mandy said. She lived on what was the

Savill family farm in childhood and returned 20 years ago with Rob, when they were both school teachers.

The farm continued on with drystock cattle trading, not dairying, during their tenure. Rob learned cattle finishing from Mandy’s father, Bruce.

Some 600 finishing steers in total come on to the farm at 400kgLW at different times of the year and spend six to eight months before slaughter at a 650kg target weight, ideally before their second winter but they can be 24 to 30 months of age.

About 50 dairy-beef calves are also hand-reared and then finished to slaughter at a little lighter weights.

Finished cattle target Silver Fern Farms premium contract periods with an ability to be counterseasonal because of Northland’s milder winters.

When they have been shipped, Rob buys in more rising two-yearolds on the same market to ensure his trading margins.

At present the buy-in prices might be around $5 a kg LW, or $2000 a head, while the schedule price plus premiums are up around $2800-$3000.

He favours Charolais, Angus, Hereford and Belgian Blue crosses with Friesian, mostly bought in the paddocks by trusted agents

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The facts

Mangere

• 600 finishing steers 50 dairy-beef

showing videos for prior approval or on bidr.

“We are going further afield for suitable cattle, which I put down to land use change in the north. We are looking for different genetics, better yielding prime cattle.

“Dairy farmers stand to benefit from using good beef genetics, to pass on down the chain to calf rearers and cattle finishers.

“We also have the facilities to do more dairy-beef calf rearing, which our son Daniel would manage, from local dairy farmers keen on using new LIC genetics like Synergizer and Stabiliser.”

The Pyes were impressed with the presentation from LIC on these new genetics at the SFF Farmers Conference in Hamilton in July.

They are keen to compare growth rates of hand-reared bulls with steers, expecting the latter to take 24 to 30 months to finish compared with 20-22 months for the bulls.

“Also, finishing at lighter weights is better for our farm environment and potentially the crossbred bulls have higher yields and still make the 320kg CW target,” Rob said.

Another on-farm trial was cell grazing of BB-cross bulls compared with rotational grazing, but very little difference was measured.

“Cell grazing can be harder on the farm, which has rock and hard pans underneath preventing drainage.”

Most of the riparian zones are fenced with single-wire electric because of the regular annual floods down the Mangere and Wairua rivers.

Now drainage corridors that run in heavy rainfall are being fenced and planted, perhaps including a stock crossing where needed.

All fertiliser spreading and kikuyu mulching is done behind the farm tractor, so crossings and drains are very important for safety.

In rain events the Mangere and

CONSERVATION: This gully in Mangere Falls Farm is typical of those now being fenced, planted and retired from grazing.

Falls Farm Rob and Mandy Pye • 335 hectares (325ha effective)

calves

Hugh Stringleman ON FARM Sheep and beef

WELCOME: Rob and Mandy Pye have opened their farm to iwi, schoolchildren and environmental advisers. Photo: supplied

ENGINE ROOM: The Pyes bring on rising two-year-old steers and finish them at 24-30 months of age. Photo: Hugh Stringleman

Wairua quickly go brown with sediment upstream of Mangere Falls Farm and it is now noticeable that the run-off from the farm is clearer as sediment is slowed down and retained.

“All the land owners in the Kokopu district have a real positive view of environmental care and water quality,” Mandy said.

While the Mangere is overallocated to about 20 dairy farms in the upper catchment, the falls have never run dry in the 20 years the Pyes have lived there.

Tangata whenua have a centuries-old Mangere Falls guardianship and the Pyes value that association and understanding.

The return of fish species and a

possible ladder around the falls are projects for the iwi and local farmers.

The Pyes are SFF shareholders, fully shared, and the consistent and loyal relationship is now paying dividends in priority killing and contract premiums, for which they consign 11 months of the year and maintain their FAP-Plus status.

“Our partnership with SFF means we are rewarded for producing quality beef and for caring about the environment in which these cattle are farmed,” Mandy said.

SFF has provided feedback to the award winners about highend prime beef markets in China and the United States, where Wholefoods is a customer, and

the United Kingdom, including Sainsbury’s.

“Sainsbury’s wants the lower carbon footprint supply that relies upon our environmental efforts on farm,” Mandy said.

Mangere Falls Farm is New Zealand Farm Assurance Programme Plus gold standard with monitoring on carbon sequestration, freshwater quality, land use, nutrient budgeting and a native biodiversity plan.

The latter is targeting unproductive areas of the farm for livestock exclusion, native planting and pest control to encourage birds and freshwater fish species like the giant kōkopu, which the district takes its name from.

Our partnership with SFF means we are rewarded for producing quality beef and for caring about the environment in which these cattle are farmed.

Mandy Pye Mangere Falls Farm

Rob recently joined the Northern North Island Farmer Council of Beef + Lamb New Zealand. As a former primary school teacher he has a fortnightly FaceTime interaction, Farmer Time, with children at Maniototo Area School

in Ranfurly who want to learn about farming in a very different climate from their home.

“They want to know about your farm dogs, what breeds of cattle are best and animal health problems like tuberculosis.

“Next time they want to see me weighing cattle. The aim of Farmer Time is to connect urban kids with country life. Some kids have no idea about the realities of farming or where the meat they eat comes from.”

The Northland and national Ballance Farm Environment Award judges praised the exceptional condition and temperament of the Pye cattle.

They noted that strategic grazing and runoff management reduces sediment and nutrient leaching, safeguarding freshwater quality on their own land as well as contributing to the wider catchment’s environmental health.

The judges were impressed by the farm’s incredible progress, saying this was due to excellent management, strong governance and tireless effort.

They also praised Rob and Mandy’s resilience and adaptability, noting they are continuously improving their systems to meet environmental and business goals.

“Their commitment to passing on a sustainable, thriving farm to future generations makes them true industry leaders.”

• This article was made possible by Silver Fern Farms.

• Outstanding standalone control of key foliar diseases

• More cost-effective than tank-mixed alter natives

• Reduces the need for a follow-up spray

• The proven choice to protect and build barley yields

PREMIUM: Rob and Mandy Pye with a number of their favoured Charolais-cross steers for finishing. Photo: Farm Environment Awards

PLANTING: Six kilometres of river boundary on Mangere Falls Farm have been fenced and planted.

From the Editor

There’s value in doing your homework

Craig Page Deputy editor

ALESSON for the government: it pays to do your homework before playing around with the school curriculum.

The Education Ministry’s plan to scrap agricultural subjects from the secondary school curriculum lasted just five days after anger from within the sector, and a realisation that those subjects have a vital role to play in developing New Zealand’s future primary sector leaders, prompted a very quick rethink.

On September 11, Education Minister Erica Stanford unveiled plans for Year 11-13 pupils that included curriculumbased subjects around science, technology, engineering and mathematics. But those wanting to focus on agribusiness, agriculture and horticulture science were out of luck. They were told it would no longer be a stand-alone curriculum subject and would be taught as an industry-led subject.

The announcement caught schools and

LAST WEEK’S POLL RESULT

the primary sector by surprise.

A feeling of disbelief quickly turned to anger and there were plenty of hastily arranged meetings among those impacted. Plans were underway to take the government to task over the rural snub.

Agri education leader Kerry Allen, the agribusiness curriculum director for the Agribusiness in Schools programme, called the decision naive.

She said agribusiness is “the basis of New Zealand’s economy and while we do need vocational (industry-led) pathways, it is not the only pathway into the primary sector”.

A feeling of disbelief quickly turned to anger.

“It will have a flow-on effect, that being we won’t get some going through into universities and there might not be the academic breadth that they need to be able to run multimillion-dollar businesses.”

But last Tuesday, just five days after the changes were unveiled, the government backtracked.

With Stanford out of the country, it was left to the Ministry of Education to make the announcement, confirming it had reviewed and revised its advice on the future of agricultural and horticultural science.

Pauline Cleaver, Hautū Taupua acting deputy secretary, Te Poutāhū MoE Curriculum Centre, said they received strong feedback from educators, industry and

NEARLY 90% of voters thought the changes to regulations on farmland forestry don’t go far enough to stop the loss of productive farmland. One thought wholesale permanent exotic plantings should be banned outright. “There should be zero permanent exotic plantings! Just right tree right place as part of an integrated farm system.

“Planting for carbon emission offsets is a pipe dream, which does not address the ongoing sources of atmospheric destruction. Also, we are foolish to allow multinationals to plant conifer weed species. It is shortsighted. These trees in monoculture have many well-known negative impacts including soil acidification, biodiversity suppression, high fire risk, reducing water yield from planted catchments, wilding weed spread. Not to mention gobbling up quality farmland and community displacement.

“Why do we allow it at all? It is a mere smokescreen in the name of meeting carbon emission reduction targets. A short-term sham. Planting trees is very good, however, if undertaken for carbon sequestration. Only natives should be allowed, for all the opposite reasons that conifers should not.”

Of those who thought the settings were fair, the main reasoning was around the right to choose and trust in markets. “The market should decide land use, not regulations.”

communities. As a result the Ministry acted to make sure the subject remains accessible, valued and aligned with student pathways into the primary industries.

“This reflects the subject’s specialist scientific nature and the conclusion that it would not be adequately covered through other science subjects or the primary industries subject. The subject will be developed alongside other science disciplines to maintain curriculum coherence and support progression from Year 11 science.”

So in the end common sense prevailed. The anger generated by the announcement clearly prompted the government to look more closely at what actually goes on in schools.

It seemed a staggering decision to cut agriculture and horticulture, particularly as the government has repeatedly talked up the importance of the primary sector to the economy and its ambitious plan to double the value of exports by 2034.

For that to succeed, investment is required at the grassroots level. Wellqualified people are vital to driving primary production and exports – from people getting their hands dirty on farm each day to those in offices and laboratories.

Some in the industry have thanked the government for its change of heart, and its ability to listen to the people.

Chart Title

In reality, had officials done their homework before deciding which subjects to scrap, this sorry saga could have been avoided.

Last week’s question: Do the impending changes to regulations on farmland forestry planting go far enough?

Letters of the week Use Fonterra windfall wisely

Stephen Kalin Stratford

FONTERRA should use the money from the sale of Mainland Group to pay back all its debt and fund more ways to enable sharemilkers and contract milkers to buy their own shares, cows and farms.

The proposed $2 a share should not be given back to the Queen Street farmers and baby boomers, like me, who already have their farms.

That would be a one-generation windfall like Kerry Group in Ireland when it went public, where supplying farmers no longer own their processing company and must take what Kerry dishes out for their milk.

The biggest structural issue facing Fonterra is the average 60-years-plus supplier base and the inability of younger farmers to buy their own properties.

After 40 years dairy farming, as a thirdgeneration farmer, I want to be able to sell up when I decide and not be limited to purchase by corporations and overseas backers.

Fonterra needs to be debt-free like Open Country.

In a bad year for dairy prices, Fonterra needs to be able to support its farmershareholders, out of its balance sheet if needed.

Pests to protein

Stephen Kalin

Stratford

YOUR “Forests a focus in fight against feral pests” article (September 8) raised my eyebrows. “Owners ... encourage recreational hunters,” apparently.

This may be true in some cases, but my experience as a hunter is that many forestry block owners are reluctant, or at best very wary, when it comes to allowing hunters on their property. I suspect the prime reason for this restriction is conditions attached to their insurance policies.

The New Zealand Deerstalkers Association (NZDA) has $10 million liability insurance, so that forest owners can be assured hunters from the NZDA are covered in the unlikely event of damage or loss.

My local branch, Nelson, has harvested over 2 tonnes of valuable game meat over the last few years, from both public and private land, and all donated to local food banks.

We are but one of many branches helping put food on the tables of others.

So, if any of your readers would like to convert their “pests” into valuable protein for the benefit of those who struggle to feed their families, do contact the NZDA, or me directly.

This week’s poll question (see page 5):

Is getting a resource consent harder than it used to be?

Can we build a hedge against the weather?

Eating the elephant

WE LIVE in a relatively mild environment here in New Zealand. But most food producers know the feeling of lying awake during a winter storm, wondering how many lambs will be lost by morning. Or sitting at the beach on a hot summer’s day, unable to enjoy it fully because of the nagging thought of how long the pasture will last if the dry continues.

Every food producer has their own version of this story. Weather sits over us like an invisible hand – shaping our yields, shifting our costs and ultimately deciding that year’s bank balance.

Yet not all food systems suffer from the same weather at the same

time. What is damaging for one producer may be ideal for another. Beekeepers prefer dry, settled summers that bring nectar flow, while pastoral farmers rely on rain to keep pastures growing. Kiwifruit growers need cold winters to set strong bud break, while livestock farmers dread extended frosts and poor winter growth. Grain and horticulture often benefit from clear harvest windows, while intensive dairy systems might welcome the same rain those growers see as a curse. Step back and these contrasts look very much like a natural hedge.

Different production systems respond in opposite ways to the same climatic conditions.

Volatility for one producer can be opportunity for another.

Yet the sector rarely views itself this way. Each business manages risk in isolation, rather than thinking of the sector as a whole system – where our diversity across food systems might collectively smooth out negative impacts.

The weather won’t change, but the way we deal with it might.

The same pattern appears when food production is compared to the energy sector. Warm winters reduce chill hours for kiwifruit,

but they also mean lower snow melt and reduced lake inflows – tightening supply for hydro schemes and pushing up electricity prices.

A dry summer that boosts honey flow can, at the same time, leave hydro lakes low and power generation expensive. Drought cuts pasture growth and drives feed costs higher, but those same conditions often coincide with higher spot electricity prices.

In other words, food producers and energy producers are exposed in different, and sometimes opposite, ways to the same weather events.

The tools to manage some of this risk already exist. Energy and finance markets trade in weather

derivatives (contracts that pay out if rainfall, temperature, or other weather hits certain levels), power futures (locking in electricity prices ahead of time), and longterm purchase agreements every day.

What doesn’t exist is a farmer, or food-producer, friendly version of these instruments that recognises the built-in hedges across different production systems. That is where the innovation lies.

So the question for New Zealand is whether we can create our own marketplace for weather risk. It could look like a self-insurance pool where beekeepers, pastoral farmers, kiwifruit growers and others balance their opposite exposures.

It could also link into existing energy markets, where prices already reflect the same weather patterns that drive our yields. These approaches create a slight shift: treating weather as a risk that can be measured, priced, and shared rather than simply endured.

And perhaps that brings the story full circle. The next time I lie awake during a winter storm, the question on my mind doesn’t have to be how many lambs I’ll lose by morning. It could be how the system I’m part of, whether through a self-insurance pool or a weather hedge, will help carry that risk. The weather won’t change, but the way we deal with it might.

Fonterra focus is on growth and innovation

In my view

Peter McBride

McBride is Fonterra chair

OVER the past 15 months

Fonterra has been talking to its farmer owners about the future of their consumer business and testing its value through both a trade sale and the potential of an initial public offering.

The $4.22 billion sale agreement now on the table from Lactalis represents a big decision for farmers. They’ve invested in these brands over a long period of time, so it’s a case of farmers’ heads fighting with their hearts.

Public interest in the sale from outside the farming community is

VALUE: Fonterra’s relative success in recent years comes from an understanding that it can deliver value to farmers through the milk price or earnings, says Peter McBride.

totally understandable. We’ve all grown up with these brands and I know some Kiwis are unsure about them changing ownership. For us, the focus is on growing value and future success. It’s not about losing the consumer business. It’s about focusing Fonterra’s energy and efforts on where we do our best work and enabling the consumer brands that we all know and love to be fostered by a true global consumer giant for mutual gain.

Fonterra’s relative success in recent years comes from an understanding of where we have a comparative advantage that can deliver real value back to our farmers through the milk price or earnings.

By far, we do this best through

our business-to-business (B2B) Ingredients and Foodservice channels, which collectively generate the majority of our returns to shareholders through both the price we pay farmers for their milk, and dividends.

The key components of our strategy are to move more of our farmers’ milk into higher returning products, improve the efficiencies of our operations and be disciplined with our capital.

Fonterra “adds value” to our farmers’ milk by putting an everincreasing proportion of it into our ingredients and foodservice products. This is where we have scale and can achieve efficiencies.

These are specialty dairy formulations you’ll find in premixed protein shakes in the US, the super-stretch mozzarella on a delivery pizza in China, highperformance creams in a range of desserts in southeast Asia.

Through these businesses we sell products derived from New Zealand milk to more than 100 countries around the world. The innovations behind the products are also home-grown. We spend more than $100 million every year on science and innovation to optimise the value from every drop of milk.

Our innovation pedigree includes more than 500 patents and 60

global partnerships –numbers we expect to grow now that some of our largest customers – Nestlé, Mars, and Lactalis – can truly call us a partner, and not a competitor.

We will have much more meaningful relationships with our B2B customers. Their consumer insights will be much deeper than what we ever had. Combined with our century of dairy science, I think we’ll innovate much faster.

The other way Fonterra “adds value” is through a return on our farmers’ invested capital.

The Consumer business consistently delivers a return on capital below our target range and, compared to our Ingredients business, does not make a material contribution to the milk price we pay farmers.

Even with significantly improved performance, Consumer is a riskier business, requires much higher operational expenditure and still is well below our target rate on a market value basis. Given it utilises less than 8% of our New Zealand milk, it’s also not an effective hedge against volatility.

This is not a question of capability or ambition. Our management team includes some of the brightest minds in global dairy. The simple truth is we are not the natural owner of a global consumer business.

To be competitive in a consumer business, you need scale efficiencies, which is challenging in a country of five million people at the bottom of the world. In contrast, think of some of the world’s biggest consumer brands –Unilever, Kraft Heinz, and Danone – globally headquartered with strong regional interoperability. We are not naturally set up to compete with monoliths of this scale, but we can partner with them for mutual benefit. Fonterra farmers will continue to benefit from their success, with Lactalis set to become one of our most significant Ingredients customers through a long-term strategic partnership and milk supply agreement.

This whole process has been about strategy – what Fonterra can be the best in the world at. Then having the focus and discipline to deliver on that.

The hard work of our farmers and global teams over many years has Fonterra in a position of real strength. That gives us choices. We choose to focus on B2B Ingredients and Foodservice because we have a proven competitive advantage and global reach. We are confident this is the best option for our farmers’ futures, and therefore New Zealand.

Ben Anderson

Ben Anderson lives in central Hawke’s Bay and farms deer, cows and trees. eating.the.elephant.nz@gmail.com

IMPACT: Food producers and energy producers are exposed in different, and sometimes opposite, ways to the same weather events, writes Ben Anderson.

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Plant pot start-up gets first products on shelf

Cheyenne Nicholson NEWS Horticulture

THE past year has been one of scaling up for Elisa Harley, the teen who set out to tackle the plastic waste generated by the 350 million plastic plant pots and trays used every year in New Zealand.

Harley’s idea was to create biodegradable pots to be used instead.

“We went from making little pots to big pots, and now over 100 of them are in commercial nurseries,” Harley said.

That milestone followed a sixmonth trial of an earlier formula, and two prototype trials of the full-sized version.

“The nurseries were really happy. The roots start to grow through the walls of the pots, and they’re excited because the whole pot can go straight into the ground with the plant and [the plant can] keep growing.”

The next big hurdle has been

commercial manufacturing, a challenge for any start-up.

Determined to keep production within New Zealand, she finally found a manufacturer in Auckland. She had to make some tweaks to her original design, sacrificing height, but she said it was a sacrifice worth making.

“Once I hit go, in 12 weeks I’ll have [up to] 15,000 Enivo Pots ready to be tested out in nurseries around the country.”

It hasn’t all been smooth sailing. When the project shifted from research into the commercialisation phase, things quickly got more complicated. This saw Harley need to temporarily pivot her original idea of using primary industry residue, and switch to locally recycled cardboard and paper that’s been screened to be food safe.

“Conducting a small commercial run with the original material was too challenging with a commercial manufacturer. Although I must pivot for now, it remains my goal to revisit it. I must remember

Scherer wins Young Grower national title

Staff reporter PEOPLE Horticulture

A BAY of Plenty technical lab manager Phoebe Scherer has won the horticulture sector’s Young Grower award for 2025.

The 29-year-old works for Apata in Tauranga, which services Kiwifruit and avocado growers, and secured the title from six other regional winners in a series of challenges at Lincoln University earlier this month.

The runner up was Steven Rink, the Canterbury regional champion who works as a production manager for Oakley’s Premium Fresh Vegetables in Southbridge, with Amelia Marsden, a kiwifruit manager at Willisbrook Orchards in Brightwater near Nelson, third.

The seven finalists competed in a series of practical and theoretical horticulture modules that tested their vegetable and fruit-growing knowledge and skills.

Scherer enjoyed stepping up to the challenges.

“The science and technical modules were my safe space but others I found much more challenging, particularly the machinery section.”

That included driving a large tractor along a GPS line, just the second largest piece of equipment she had even been in.

the focus is no plastic and local manufacturing, so for now, there is equal opportunity in the new material.”

All this progress has coincided with Harley’s move south to study Industrial Product Design at the University of Canterbury.

“It was a big adjustment, new island, new people, new routine,” she said.

Days often stretch to 12 or 13 hours between lectures and business work, sometimes more if she’s travelling for events that have come with her business journey.

“I think a lot of the success so far isn’t just about the idea on paper, it’s about the vision and the heart behind it. Which is essentially me, I guess, so I need to maintain balance between everything and ensure I look after my passion and the values that are driving the business.”

Reflecting on her journey so far, she shared a snippet of her speech at the 2025 New Zealand Business Hall of Fame, which was a call to

She described the other finalists as friends rather than competitors.

Scherer’s career began with an evolutionary biology degree before heading overseas.

On her return seven years ago, she secured a role in kiwifruit industry in Tauranga which led to a laboratory job and ongoing career progression.

She joined Apata, a specialist service provider for kiwifruit and avocado growers, last year.

Scherer also won the best technical award, Rink the best innovation award and Lydia Goodman, representing Central Otago, the outstanding leadership award.

Goodman is an assistant orchard manager at Central Orchard Management and Packing manager at CentralPac.

action that her story shouldn’t be a one-off.

“My story is a developing success story testifying to the power of intergenerational changemakers. When a young person is empowered to dream boldly. When industry and community then step in to mentor, support and uplift.

TESTING: Teen entrepreneur Elisa Harley is testing her biodegradable plant pots in nurseries across the country.

“Because it was the teachers who didn’t laugh at my ideas, the business leaders who replied to my LinkedIn messages, and the scientists who hopped on Zoom calls. That is what is building both a strong business and, more importantly, a strong young person.”

Picking bib scoops award

Richard Rennie TECHNOLOGY Horticulture

EFFORTS by Ōpōtiki kiwifruit grower and orchard contractor Brett Wotton have earned him some solid recognition from the industry for an innovation saving millions in fruit losses.

Wotton was the recipient of the 2025 New Zealand Kiwifruit Innovation Award for his development of covers for kiwifruit picking bags used during harvest, ensuring picked fruit are better protected with less tissue damage.

Acting like a protective bib at the top of the bag, the cover prevents the notoriously damaging practice of “rain picking”, where fruit are plucked to fall into bags. While ensuring high picking rates, the practice inflicts bruising that sometimes does not show up until weeks after the harvest, often only as fruit is being shipped.

In 2022 the industry faced major

labour shortages due to covid bans on backpackers. Limited RSE workers meant many orchards were compelled to employ the sort of pickers who used the method.

The result was the industry’s worst ever year for fruit quality, including quality claims nearly triple the 2021 levels and major impacts on final season shipments of Green kiwifruit to Asia and Europe.

Ultimately the quality costs that year were calculated at over $500 million.

Wotton’s bib covers have since been adopted by many harvesting teams in the industry, with EastPack’s orchard management arm Prospa making use of the harvest bibs compulsory.

Wotton had been working on the innovation well before covid’s impact, inspired by a grower workshop in Te Puke he attended back in 2008.

“Post-harvest company Trevelyans had a white board up that showed the difference between a

good picking team and a poor one could be as much as 50c bag.

“I suspected it was actually higher than that.”

Taking his own experience observing the picking teams he employs every year, Wotton could see how a bib across bags would help modify behaviour.

“But it was initially hard to get off the ground. In fact it was a bit like having leprosy when I promoted them because teams could see how they could make more without the bibs to slow their picking down. I lost pickers in droves.”

It was the risk of damage to NZ’s quality reputation for kiwifruit that the 2022 harvest bought that prompted greater interest in using the covers.

He said it was a pity it took multimillion-dollar losses to finally get industry endorsement and use, but he is heartened to see it being used by almost 80% of picking teams now.

Kiwifruit NZ chair and award judge Samantha Sharif said the covers help address what can be a serious quality issue at the beginning of the supply chain.

“The use of these covers supports maximising fruit yields and reduces the incidence of further quality problems at post harvest and in market.”

Wotton said he had not made “a brass razoo” from his innovation, but is happy to see the industry as a whole benefit with improved returns and a preserved reputation for supplying long-life, quality fruit.

AWARD: Brett Wotton and daughter Emily with his innovation award.

TOP GROWER: Phoebe Scherer, left, won the 2025 Young Grower national title. Also pictured is Associate Agriculture Minister Nicola Grigg.

FEDERATED FARMERS

Why Te Mana o te Wai must go

Federated Farmers is calling on the Government to urgently scrap controversial freshwater rules that put river spirits and ideology ahead of practical water use.

Mark Hooper, Federated Farmers board member, says the rules –known as Te Mana o te Wai – have created huge consenting problems for farmers, councils and communities alike.

“The concept of Te Mana o te Wai will require local councils to regulate vague spiritual concepts like the ‘life force’ of water, causing untold issues around the country.

“I’ve never met a farmer who didn’t care about improving freshwater quality, or want to play their part, but this is getting out of control. The rules are totally unworkable.”

Te Mana o te Wai requires councils to regulate not just measurable standards like water clarity, fish life, or E. coli, but also concepts such as the ‘mana’ or ‘mauri’ of water.

“Legislating for vague and undefined spiritual concepts that most New Zealanders don’t even subscribe to will only lead to confusion, inconsistency, and unnecessary costs,” Hooper says.

“That’s why Federated Farmers is standing up, putting a stake in the ground, and calling on the Government to unequivocally rule out the concept of Te Mana o te Wai.”

Hooper says the Government must replace Te Mana o te Wai with plainlanguage law that is clear, certain and enforceable.

He says trying to regulate intangibles like a river’s life force raises huge questions about who decides when that life force is protected.

“If we’re measuring clarity or nitrogen levels, that’s straightforward because we can ask an ecologist to test it and, if needed, get another expert to peer review it.

“But how on earth do we determine when the ‘mauri’ of a river is protected?”

The answer, in many cases, has been to hand that responsibility to local mana whenua – iwi and hapū with historical association to a waterway.

Even the politicians don’t appear to understand what it means.

Mark

Hooper Federated Farmers board member

Hooper says, in effect, this will just grant mana whenua a monopoly on deciding what is, or isn’t, allowed to happen in New Zealand.

“We’ve seen examples where mana whenua groups say mixing two water bodies, like a water race does, may reduce mauri because it mixes two river spirits together.

“We’ve also seen claims that any discharge of treated wastewater into a waterway, despite being scientifically clean, would reduce mauri too.

“These blanket requirements pose

a significant barrier to rational and open debate when one group’s beliefs can override the needs of an entire community.”

Te Mana o te Wai was embedded in regulations first passed under National in 2017 and was made even more complicated by Labour’s 2020 freshwater reforms.

Hooper says farmers and rural communities across New Zealand have had enough of the uncertainty and unnecessary costs it’s created.

“We welcomed the Government’s commitment last year to fix unworkable, expensive freshwater rules – but they need to do the job properly.

“A decision on Te Mana o te Wai is due soon, but, of the three different options the Government has floated, only one of them fully repeals Te Mana o te Wai.”

Federated Farmers believes the only way forward is to repeal the rules and replace them with clear, science-based standards.

“New Zealand needs fair and practical environmental limits that everyone can easily understand and work with,” Hooper says.

“That’s just not possible while the concept of Te Mana o te Wai sits at the heart of our national freshwater laws.

“When you dig into the legal definition of Te Mana o te Wai, it stands out as being a horribly vague, impractical and unworkable law.

“Even the politicians don’t appear to understand what it means.”

Federated Farmers is calling for a

C a n r u r a l m e d i a s u r v i ve ?

Dean W illiamson, CEO of Ag riHQ and publisher of Far mer s Weekl y, opens up a bout the fight to keep r u r a l j o u r n a l i s m a l i ve – a n d w h y h e ’s r e

balanced approach to freshwater management that allows the whole community to consider environmental aims alongside social, economic and cultural prosperity. Where needed, improvements need to be allowed to occur progressively over multiple planning cycles rather than expected to occur abruptly.

Hooper says he assumed the Government would take the sensible step of repealing the concept – but that now looks far from certain.

“Ministers seem to be faltering at the last hurdle on this important issue and looking to do what’s easy rather than what’s right for the country.

“That’s why Federated Farmers is taking this public stand. We’re not afraid to tackle hard issues or speak up when it counts.

“We have a clear message for the Government: the concept of Te Mana o te Wai simply must go. It has no place in New Zealand’s freshwater laws.”

UNWORKABLE: Mark Hooper says farmers and rural communities have had enough of the uncertainty and unnecessary costs created by Te Mana o te Wai.

Farmers urged to turn high returns into better deals

Farmers enjoying stronger returns this year are being urged to strike while the iron is hot and talk to their bank about securing a better deal.

“The rural banking landscape has shifted markedly in the past 12 months,” says Scott Wishart, a director of agricultural loan broker NZAB.

“Stronger returns across dairy and red meat, rising land values, and a lift in Fonterra’s share price have all improved the way banks assess risk in the sector.

“There’s a good chance your overall risk profile looks better to the bank today.

“That makes it a great time to reengage with your lender and work out what those improvements mean for you.”

Speaking on the Federated Farmers Podcast, Wishart said farmers shouldn’t sit back and expect regulatory or political change to improve their banking outcomes.

BENEFITS:

Scott Wishart says many farmers have been with the same bank for decades and that a strong, proactive relationship can deliver most of the benefits without changing lenders.

“Don’t wait for Wellington. The point is to focus on the things you can control, not the things you can’t,” he says.

“The biggest changes always come when farmers take ownership of the process.”

That means presenting your business in a way that makes sense to the bank – acknowledging risks, showing how they’re managed, and clearly linking borrowing to strategy.

The recent parliamentary inquiry into banking was a useful step, but real progress requires farmers, banks and regulators all to evolve, Wishart argues.

For farmers, that evolution means shifting from a production mindset to a business mindset.

“You’ll always hear about someone across the fence getting sharper rates or securing opportunities others miss,” he says.

“Usually, that’s because they understand their business the same way the bank does.”

There’s a good chance your overall risk profile looks better to the bank today.

Scott Wishart NZAB director

Rather than simply hoping the season goes well, farmers need to show they know where the risks lie and how they’ll respond if things turn.

Wishart talks about farmers needing to be “bank ready” –knowing the answers before the bank asks the questions.

“It’s like a lawyer in court,” he says.

“They don’t ask a question without already knowing the answer. Farmers can take the same approach with banking.

“That starts with clarity on strategy: why are you in business, what are you trying to achieve, and over what timeframe?

“Then comes capability – the people, systems, and financials needed to deliver on that strategy.”

Finally, it’s about being upfront about what could go wrong.

“Credit managers are trained to look for weaknesses,” Wishart says.

“Every business has them. The stronger approach is to acknowledge those weaknesses, explain why they exist, and show what you’re doing to address them.”

Farmers might feel confident about the next season or two, but banks think in decades, he says.

“Most banks are applying a longterm stress test rate of around 8 to 8.5% at the moment.

“They want to know what happens

if interest rates are higher, returns are lower, and costs are up – all at the same time.

“If they’re funding you for 20 years, they know there’ll be some tough years in there. They want to be confident your business has enough resilience to survive those downturns.”

Wishart says many farmers leave money on the table because banks are working off outdated information.

“We often see farm valuations that are five years old or financials that don’t reflect recent improvements,” he says.

“Updating valuations, preparing accurate forecasts, and clearly showing risk reduction measures can shift how a bank categorises a client, leading to better lending terms.”

In other cases, farmers can agree performance milestones with their bank, like reducing interest rates once debt is paid down or budgets are met.

Wishart says many farmers have been with the same bank for decades and that a strong, proactive

relationship can deliver most of the benefits without changing lenders.

“But if trust has broken down, sometimes a clean break is needed.”

He says non-bank lenders are also playing a growing role.

NZAB has placed over $500 million into the non-bank market in the past 18 months, often as transitional funding when banks step back.

“While it is slightly more expensive, this type of capital can help a farmer prove their strategy and refinance back to a main bank later.

“With $150 billion of assets expected to change hands over the next generation, we’ll need innovative capital solutions,” Wishart says.

The biggest mistake farmers make, he says, is approaching the bank half-prepared.

“If you present a poorly thoughtthrough proposal and the bank declines it, that ‘no’ can stick,” he warns.

“You really only get one chance to present an opportunity well.

“Do the work first – get advice to help you prepare and plan – before you go anywhere near the bank.”

DON’T WAIT: Scott Wishart says farmers shouldn’t sit back and expect regulatory or political change to improve their banking outcomes.

Farmers risk bankruptcy under RMA penalties

Farmers could be sent to the wall by huge fines for Resource Management Act breaches they can no longer insure against, Simon Davies warns.

“We could see situations where a prosecution is taken over something outside a farmer’s control, and a six-figure fine levied,” the former Federated Farmers Otago president says.

“We’re talking big, big dollars under the recent amendments.

“I’ll be honest, a fine of $100,000 last season would have wiped me out – and I suspect that would be the same for a lot of meat and wool farmers.”

The Resource Management (Consenting and Other System Changes) Amendment Act came into force on 20 August.

It increases maximum penalties for RMA-related offences from $600,000 to $10 million for a corporate entity, and from $300,000 to $1 million for an individual.

It also prohibits any insurance or indemnity arrangements that cover fines or infringement fees under the RMA.

Davies says he has no problem with the changes where there’s clear liability and the farmer could have taken action to avoid a breach.

“But that’s very different from a breach beyond a farmer’s control,” he says.

“I have a winter grazing resource consent. What would happen if I was to fall foul of that because stock

potentially prosecutable in such circumstances because the system is outcome-based.

“Insurance offered peace of mind that if there was an unintentional breach – something beyond your reasonable control – you had cover for any fine,” Davies says.

“That’s gone now.”

FMG has advised clients that, under the Statutory Liability Option Benefit if offers, there will still be cover for legal defence costs (lawyers, expert witnesses) and remediation costs, should the court order the farmer to fix environmental damage.

broke through an electric fence and were caught grazing in a critical source area or standing in a stream?

“Storms and bad weather will drive stock through fences and there’s nothing to stop an overzealous council officer from pursuing prosecution.”

Davies says another example would be if a staff member disregarded clear instructions and well-established farm practice and breached a consent condition — even maliciously because they’re in dispute with the farmer or landowner.

“Under the new penalties, I’m

Federated Farmers had submitted in opposition to the size of the increase in maximum fines and removal of insurance cover where the insured person was not at fault.

RMA spokesperson Mark Hooper agrees it’s inappropriate in most cases for an insurance company to pay the fine for a breach of the RMA where the breach was deliberate in intent or was done for commercial gain.

“Many insurance policies exclude cover where a crime is committed, so effectively an insurance company’s own policies achieve the same outcome as the amendment.

“But there are situations in which a farmer or other resource user might be in breach of the RMA through no fault of their own. We think they



should be able to insure against fines in those circumstances,” Hooper says.

One example is when a farmer has relied on expert advice. Suing that adviser for negligence might technically be an option, but it’s often difficult and expensive.

Another example is a rural contractor working in environmentally sensitive areas, where factors outside their control can create risk.

Insurance offered peace of mind that if there was an unintentional breach – something beyond your reasonable control – you had cover for any fine. That’s gone now.

Simon Davies Former Federated Farmers Otago president

“For instance, they might be spraying weeds after being assured by the landowner or an expert that there was no protected indigenous biodiversity, or that the farmer had existing use rights.

“They should be able to insure against that.”

Hooper draws a parallel with the Health and Safety at Work Act.

“The duty under that Act is to

identify hazards and mitigate them. If all practicable steps are taken, but an accident still occurs, the individual or entity is not liable.”

However, under the RMA, even if an individual or entity appropriately exercises their duty of care to the environment, they could still be liable.

The RMA has a low bar to prosecution. For example, councils can prosecute where a discharge of a contaminant to land may enter water, rather than having to conclusively prove contaminants have entered water.

The amending legislation also brings in another fishhook for RMA breaches.

Consent authorities can now consider an applicant’s history of environmental non-compliance, like abatement notices or infringement notices, when assessing new resource consent applications.

Applications can be declined where there’s a record of ongoing or repeated significant non-compliance.

“The core message is for farmers to maintain vigilance on looking after the environment, and check with their insurance company to understand what is or is not included in their statutory liability cover,” Hooper says.

“Consequences for failing to do so just got much more severe.”

FOUL: Simon Davies questions what would happen if he was to fall foul of a winter grazing consent because stock broke through an electric fence and were caught grazing in a critical source area or standing in a stream.

COVER BLOWN: Simon Davies says the hiked fines that can now be levied for a breach of the RMA could be enough to send some farmers to the wall.

Candidates vow to tackle consent chaos

Six farmer councillors are pushing to streamline Canterbury’s consent system, warning bureaucracy is getting in the way of freshwater gains.

John Sunckell, chasing his fourth term on ECan, says the region is drowning in unnecessary consents and needs a communitydriven approach to improving the environment.

“We have 27,000 consents in Canterbury when we need only 5000 to 7000,” says Sunckell, standing in the Mid Canterbury constituency.

“The rest could be wrapped up into permitted activities with good compliance checking built in, and transfer into robust Farm Environment Plans.

“Just one example of the current stupidity: if you want to instigate a

wetland, or restore one, you can’t transfer water from somewhere else to do it.

“There’s too much impracticality.”

Also seeking their fourth term, and resisting an anti-farming campaign from other candidates, are Claire McKay (North Canterbury) and Peter Scott (South). Ian Mackenzie (Mid Canterbury) is seeking a third term, Nick Ward (South) his second, and John Faulkner (North) his first.

All six were involved with the Canterbury Water Management Strategy and have been committed to solutions over the long term.

Sunckell says he’s not arguing for looser standards – just for smarter rules that deliver results.

“We’re not talking about the wild west and allowing poorer performance; we need to be quite clear about the outcomes required.

“But we can’t seem to get across to the people on the other side of the table that piling on more and more rules just makes progress harder.”

The ‘other side of the table’ tends to be the councillors elected by urban Christchurch, some of whom Ian Mackenzie accuses of failing to declare their Green Party allegiances before the last election.

An eight-versus-eight split on the council in its current term has often led to fractious debates and stalemate.

“If urban Christchurch again elects a whole lot of Green activists then provincial Canterbury – and farming in particular – is in trouble because everything turns to custard quickly,” Mackenzie says.

NITRATE ACTION: ECan candidate Claire McKay wants to see better communication to residents on actions underway to reduce nitrate discharges.

John Faulkner is keen to recapture the approach taken during the early days of Canterbury’s Zone Committees.

VISION: Ian Mackenzie’s vision is for a rural regional council for Canterbury –one that gets Christchurch City out of the core issues that really matter to rural areas.

Mackenzie, like the five other farmer councillors we spoke to, sees value in audited Farm Environment Plans (FEPs) replacing most consents – but he has a warning.

“It all hinges on the right regulatory regime.

“The advantage of a consent is that it gives a farmer certainty. While the consents ECan issues are for too-short periods, you can’t change the conditions during the life of the consent.

“The rules around FEPs can be changed at whim by the council.

“In a perfect world, you can have FEPs and fewer consents, but not in a world where you’ve got rabid Greens people fighting to strangle everything with more rules.”

Another issue to be confronted next term is the future of regional councils, with some in the coalition Government suggesting they’ve had their day.

Mackenzie’s vision is for a rural regional council for Canterbury – one that gets Christchurch City out of the core issues that really matter to rural areas: river management, flood protection, land and water issues, weed and pest management.

“Hurunui Wairau was one of the first zone committees out of the blocks and we developed a comprehensive and well thoughtout implementation plan that reflected what the community wanted to happen environmentally and economically.”

We can’t seem to get across to the people on the other side of the table that piling on more and more rules just makes progress harder.

John Sunckell Environment Canterbury candidate

Unfortunately, the committee fell into an “implementation void”, with a lack of resourcing, he says.

“What I’m seeing with the current system is in essence hierarchical,” Faulkner says.

“Policies are coming from top down, but implementation must come from bottom up. There’s a disconnect.

“If we want to achieve the outcomes everyone desires,

landowners have to be at the forefront of the conversation.”

Meanwhile, Peter Scott and Claire McKay favour honest conversations with the community over nitrates in water.

“It can’t be denied there are hot spots, but we need to better communicate to our communities all the things we’re doing to get improvements long term,” McKay says.

“Nobody disagrees with the need for good, fresh water but the expectation that something that’s happened over 50 years in Canterbury can be turned around overnight needs to be confronted.”

Scott agrees legacy nitrates will take time to move through groundwater but actions to reduce discharge, including through Farm Environment Plans, will drive improvement.

“We need a non-statutory approach.

“ECan could use its statutory powers and require a reduction in the number of cows, but that would put a huge hit on the GDP of places like Waimate, Glenavy and Oamaru.

“The better approach is herd homes, stand-off pads, doing cut and carry and the like.

“Streamlining the consent process and removing some of the costs are part of it as well.”

WAIUKU, AUCKLAND

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• 161ha dairy farm

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A rabbit hops into a pub and asks the bartender,

“Could I get a pint of beer and a Ham and Cheese Toastie?”The bartender is taken aback but serves the rabbit his order. The rabbit enjoys his beer, devours the toastie, and then leaves.

The next night, the rabbit returns and again requests a pint of beer and a Ham and Cheese Toastie. Word has spread, and the pub is buzzing with curious patrons. The bartender serves the rabbit, who eats and drinks before heading out.

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By the third night, the pub is packed to the brim. As the rabbit walks in and orders his usual, the crowd falls silent in anticipation. The bartender hands over the pint and toastie, and the room erupts in applause as the rabbit finishes his meal and exits.

But when the rabbit walks in and asks for his usual, the bartender’s face falls. “I’m sorry, my friend,” he says, “but we only have Cheese and Onion Toasties.” The rabbit eyes him carefully. “Are you sure?” he asks. With a grin, the bartender replies, “I wouldn’t steer you wrong. Trust me.”

“Alright,” says the rabbit, “I’ll have a pint of beer and a Cheese and Onion Toastie.” The pub bursts into cheers as the rabbit enjoys his meal, waves to the crowd, and leaves... never to return.

A year later, the pub is in decline. The bartender calls last orders, and as he’s cleaning up, he notices a small white figure hovering above the bar. “Who are you?” he asks. “I’m the ghost of the rabbit who used to visit your pub,” comes the reply.

The bartender’s eyes widen. “I remember you! You made this place famous. Every night, you’d come in for a pint of beer and a Ham and Cheese Toastie. People came from miles around just to see you.”

“Yes,” the rabbit says. “But I also remember that last night when you ran out of Ham and Cheese Toasties. You gave me a Cheese and Onion Toastie instead.”

“That’s right,” the bartender recalls. “But then you never came back. What happened?” “I died,” says the rabbit. The bartender gasps. “No! How?”

The rabbit pauses before replying, “Mixin’ me toasties.”

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ADDITIONAL INCOME. Stock shelter, erosion control, Truffle income, animal fodder, fireproof cork and Natives. 021garden.co.nz Litherland Truffles 021 327 637.

HINO RAINBOW BUS motor and box. Or suit wrecking. 1990’s onwards. Phone 027 440 3699.

MACROCARPA AND PINE TREES. Plantations, Shelterbelts, Farm lots, Big or small, Lower North Island, Good $$$ paid. No obligation free quote. Call Grant 021 246 4329 HSF Ltd. WHAT’S SITTING IN your barn? Ford, Ferguson, Hitachi, Komatsu, JD. Be it an excavator, loader or tractor, wherever it is in NZ. Don’t let it rust. We may trade in and return you a brand new bucket for your digger or cash for your pocket. Email admin@loaderparts.co.nz or phone Colin 0274 426 936.

Here at Farmers Weekly we get some pretty funny contributions to our Sale Talk joke from you avid readers, and we’re keen to hear more!

If you’ve got a joke you want to share with the farming community (it must be something you’d share with your grandmother...) then email us at: saletalk@agrihq.co.nz with Sale Talk in the subject line and we’ll print it and credit it to you. Conditions apply

VERMONT ANGUS ALFORD FOREST

ECZEMA TOLERANT ROMNEYS

RAMGUARD TESTING SINCE 1985

• 5 star rating

• Bred on challenging hill country

• Robust functional sheep that survive

• Structurally sound

• Selecting for parasite tolerance and less dags

• No ewes worm drenched, dipped or vaccinated

A/C Woodlands Trust

Date: Monday 29th September, 2025

Address: 430 Waikakahi Road, Taihape

Start Time: 1:00pm (undercover, lunch provided) will be available for online bidding

COMPRISING: 99 Unmated Young Cows & 264 Unmated R2 Hfrs

99 Unmated Frsn/FrsnX Young Cows BW125, PW184

Hand-selected from top herds in Waikato and BOP, blanket dry-cow treated at dry-off Sold in two lots, drafted by breed/colour Cow delivery options A: Immediate delivery (by 10th Oct) with 14 day payment from auction date B: 1st May 26 delivery/settlement (add $500 to the knockdown price), choose start for a 10-week RWB (Hereford) mating period, 10% deposit required, subject to special Terms & Conditions (contact Pat for details)

263 Unmated R2 Frsn/FrsnX Heifers BW115, PW122

Offered in sizable lots by herd code: 56x JFWR, BW201 & PW210

33x JYMY, BW117 & PW123 20x TLXJ, BW121 & PW109

49x GDWX-NXTY, BW96 & PW102 24x MCHX-NTY, BW110 & PW143

73x PRJM, BW89 & PW87 9x VWL, BW-104 & PW-71

• Includes complete lines from reputable herds & selected to meet Woodlands Trust high standards

AUCTIONEERS NOTES:

Woodlands Trust has been supplying quality dairy cows and heifers to the New Zealand market for over a decade. Their long-standing relationship with Carrfields agent Pat Sheely ensures trusted procurement and consistent quality. All cattle have been wintered on crops and will be presented in forward condition, ready for mating.

AUCTION FORMAT:

• Viewing is available on auction day prior to the auction

• Live auctioneer streamed via Bidr, on-site and online bidding available

• Lot information will be displayed live on screen, winning bidders may secure all lots displayed on screen at the time

Payment terms: 14 days after the auction.

Note: If option “B” is chosen for the unmated cows settlement will be 1st May 26. CARRFIELDS LIVESTOCK AGENT: Pat Sheely 027 496 0153

A/C TROY STEVENSON

Date: Friday 3rd October 2025

Address: 437 Patiki Road, Pihama, South Taranaki Start Time: 11.30am (undercover, Gourmet BBQ lunch provided) will be available for online bidding

COMPRISING:

150 young Friesian / Friesian Cross In-Milk Cows – BW140, PW187, RA 100%

DETAILS:

• Strict selection policy all young cows mainly 2–4-year-olds,

• All cows in-milk, milked twice daily in rotary shed

• Herd Tested 17th September 2025 (data updated after)

• TB C10, BVD negative

AUCTIONEERS NOTE:

This 10th annual offering presents a top-quality lineup, the result of a rigorous selection process. Each cow is personally guaranteed by our trusted vendors and comes with a one-week soundness trial. These cows will be presented in strong condition, ready for mating. All are young, sound, and well-prepared. We highly recommend this offering.

PAYMENT TERMS: Deferred Payment, Due 20th January 2026 Immediate Delivery CARRFIELDS AGENT: Brent Espin M: 027 551 3660 OUR VENDOR: Troy Stevenson M: 027

BEXLEY HEREFORDS Yearling Bull Sale

Friday 26th September 2025 at 12.00 noon

To be conducted at Bexley Station, 3715 State Highway 3, Awakino Gorge, Mokau 4376

Registered and Unregistered Bulls comprising of: 34 Yearling Pedegree Herefords, 6 Yearling Herefords, 10 Yearling Purebred Angus, 6 Purebred Registered Speckle Park Top yearlings grown to suit heifer mating, cow mating or beef mating.

VENDORS: Colin & Carol King P: 06 752 9863 | E: ccking@farmside.co.nz

NZFL Stud Stock - Brent Bougen M: 027 210 4698

NZFL Agent - Stephen Sutton M: 027 442 3207

Carrfields Agent - Grant Ross M: 021 174 8403

MACHINERY & SUNDRIES CLEARING SALE

A/c Salvie Noaro Estate

Wilsons Road, Opiki, Palmerston North (signposted from SH56/Opiki Rd)

Saturday September 27th, 11am start. Viewing from 9am (no earlier)

Refreshments available to purchase

130 Lots comprising: 1086 International; Case IH 6X70 sprayer; Case 685XL (IH) x 2; International 454 x 2; International 574 Hydro; Farmall Cub; Allis Chalmers Model G x 2; Hydro 574; International 454 Forklift; used 454 engine; Acto International 3-axle truck x 2; 6 furrow Howard Swing plough; Maschio Power Harrow x 2; Aerota; sub soiler; forklift (bin tipper); new Aitchison seed box; Spreadmaster fertiliser spreader; Tyne Cultivator/21A seed mixer – electric; GEHL Round Hay Baler 1465; 540D Hydro Hay Tedder; Krone Hay Rake; Cultivator/leveller; Gaspardo Seed Drill; 3.5tonne Trailer; Clough side-extension tines; concrete mixer (Honda motor); concrete compactor; Aitchison fertiliser spreader; Case IH Scout 4X4; Suzuki Quad bike; scales; Ford suitcase weights x 12; Toyota forklift with Rotary Head; Mitsubishi 5 tonne truck; Step-deck trailer; Onion topper; AgriSpread fertiliser spreader; Leveller; Cambridge roller; concrete pavers & blocks; fence posts; round & rectangle troughs; large round hay feeder x 2; small round hay feeder x 4; feeder troughs x 4; tractor bonnets & tyres; wooden bins; Makita jack-hammer; plus various workshop sundries. Terms are strictly cash (EFTPOS) unless an existing purchasing client of NZ Farmers Livestock.

To view photos of main items visit: www.mylivestock.co.nz/auction

Enquiries – NZFL agent & auctioneer Richard Trembath 027 499 3992 or email Richard.trembath@nzfll.co.nz

Markets

Rising farmgate prices keep breaking records

Upside is underpinned by export market demand, though exporters are already noting some resistance from key markets.

Mel Croad MARKETS Analysis

CONTINUED upside at the farm gate was always on the cards this spring, though prices have climbed higher than many expected.

A feature of this year has been the strength of export market demand. This has translated into near consistent upside in average export values from March to June as markets stepped up to the plate to secure the supplies they needed. The strength of this demand pushed procurement competition to the sidelines, creating a very stable pricing position.

But since June, export values have traded sideways, even though export volumes have dropped. Over the past three months, New Zealand shipped 53,000 tonnes of lamb – a reduction of 6000t on the same period last year and 10,000t lower than the five-year average for June to August.

Regardless of these flat export conditions, farmgate lamb prices have lifted by $1.05/kg in the

North Island and $1.25/kg in the South Island. The closer we have got to the end of the season, the quicker farmgate prices have risen.

While there has been some subtle support from the exchange rate softness, generally the higher farmgate prices are a reflection of increasing procurement competition, rather than export markets paying more for New Zealand lamb.

AgriHQ is forecasting a return to normal seasonal conditions whereby farmgate prices will start to retreat through to Christmas.

Dangling the procurement carrot is usually enough to bring stock forward, but if it does not yield the desired increase in slaughter numbers, processors will continue to apply pressure until it does.

This can quickly distort market signals, especially if there is no corresponding lift in export values.

For processors to recoup the

additional prices paid on lamb in recent weeks there is an expectation that export values will have to lift further. This could be a tough ask given they are already at a record high.

Exporters are already noting some resistance from key markets. This has been most notable within the European Union and United Kingdom markets as warm summer conditions seasonally reduce consumption.

Regardless, exporters will look to see what else they can draw out of the market to offset this period of heightened procurement pressure.

While targeting sales around the chilled Christmas trade is on the cards, it’s also possible Chinese interest could improve if they look to bolster supplies for their New Year celebrations in February, but there’s no guarantee yet.

On this basis, AgriHQ is forecasting a return to normal seasonal conditions whereby farmgate prices will start to retreat through to Christmas. This shouldn’t be viewed as overly negative; most exporters are fairly confident that despite some seasonal easing in export values, it shouldn’t translate into

Proudly sponsored by

SPACE: A strong start to the new season is a welcome boost that will favour both those offloading new season lambs and those that look to target the early store market to free up space on farm.

significant downside at the farm gate.

AgriHQ’s latest Livestock Outlook report released this week points to lamb prices averaging either side of $10/kg through November, signalling a cracking start to the new season. However, if procurement competition continues to drive prices, it risks the chance that November prices may be lower than currently forecast.

Regardless of what develops over the coming weeks, a strong start to the new season is a welcome confidence boost that will favour not only those offloading new season lambs into processing plants, but also those that look to target the early store market to free up some space on farm. Even as we navigate some seasonal downside, the broader picture remains just as favourable into early 2026.

Cattle Sheep Deer

Weekly saleyard results

These weekly saleyard results are collated by the AgriHQ LivestockEye team. Cattle weights and prices are averages and sheep prices are ranges. For more detailed results and analysis subscribe to your selection of LivestockEye reports. Scan the QR code or visit www.agrihq.co.nz/livestock-reports

| September 15 | 708 cattle

Boner Friesian cows, 495kg

Rangiuru | September 16 | 287 cattle, 41 sheep

Mixed-age crossbred ewes & lambs, most

Store mixed-sex lambs, all

Prime ewes, most

lambs, most

|

Weather

A textbook spring is rolling out

Philip Duncan NEWS Weather

WINDY weather is starting to dry some regions out, while others have had heavy rain at times in recent weeks.

September and October can be “peak crazy” when it comes to our weather, with moments when it can still feel like winter and others like summer is nearing.

From a nationwide point of view we’re in a pretty good set-up, but for some it’s not as ideal as it could be. Here are the main areas of interest:

North Island: Soil moisture

Very similar to this time last year with most places about normal, but Hawke’s Bay leaning drier than average around Hastings and those within 30 minutes’ car drive of there.

Last 15 days rainfall East is driest, with some parts of Wairarapa and Hawke’s Bay only receiving 5-15mm.

West is wettest, with Mt Taranaki, Waitomo, western Waikato and the Kaimai Ranges seeing some of the heaviest rain with over 100mm, some spots over 200mm.

Sunshine hours

Believe it or not, much of the North Island has been a little sunnier/brighter than usual since September started, except in Northland, northern Auckland, Waitomo and some parts of Wairarapa and southern Hawke’s Bay.

Temperatures

This is a key area, especially for dairy farmers, and many places have been average (+/- 0.5degC).

Keep in mind we’ve had several above-normal years, so feeling “normal” likely feels “colder” for many of you.

But based on the stats, only Wairarapa and the inland eastern part of Manawatū dipped below 1degC below normal.

Northland and parts of north Auckland were warmest with some locations 1degC above normal.

South Island: Soil moisture

The South Island currently has a soil moisture map that almost completely matches the historical map.

Apart from one very small part of north Canterbury that leans a little wetter, most places are where they would normally be going into late September.

Last 15 days rainfall

East is drier with South Canterbury the driest (some spots had less than 5mm) and large parts of the Canterbury Plains having less than 10mm.

West has been wet with 150300mm of rain in the past fortnight.

Southland and parts of the Tasman region have had spillover rain with 75-150mm.

Sunshine hours

Southland, Stewart Island, Fiordland, Westland, Lakes District – all have been gloomier so far this month with below 85% of normal sunshine hours.

Canterbury had the most sunshine with 125% of normal brightness (classic westerly).

BY THE BOOK: The rainfall and temperature anomaly maps for a recent 15-day period show a textbook westerly-driven September so far, especially for the South Island. Image: Earth Sciences NZ

Temperatures

The southern half of the West Coast was colder than usual, by between 1 and 2degC below normal, which is notable.

Southland, Otago and Nelson also leaned colder by 0.5 to 0.8degC below average.

Canterbury was closest to normal – with some pockets even a little above normal.

In summary, September so far has been a textbook spring, dominated by westerly quarter winds lifting rainfall in the west and bringing drier weather to the east.

It feels colder/wetter for some due to milder than normal springs over the past decade.

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