Farmers Weekly NZ July 12 2021

18 Zespri mulls post-vote options Vol 19 No 27, July 12, 2021

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Labour remains a challenge Neal Wallace & Richard Rennie

T

HE primary industry needs at least 15,000 workers but employers who are already struggling to recruit staff will now find it even more difficult, with new government policy slashing immigration and forecasts that regional depopulation will accelerate.

Employers consistently rate sourcing labour as their biggest challenge, but information supplied by the Government and producer groups reveals the success of recruitment campaigns have at best been average.

Of the 575 registrations for GoDairy, only 35 found jobs; millions of dollars of this season’s apple crop was lost as fruit was left unpicked and Marlborough grape growers say they are short of 1000 pruners.

Kiwifruit was more successful, recruiting 3500 staff for the harvest.

Among the vacancies for next season, dairy still needs up to 4000 workers, the meat industry 2500 and kiwifruit will require 5000 new workers within three years.

Professor Paul Spoonley of Massey University is warning of labour market implications

for regional centres from an aging population, especially horticulture.

He says in the next 10 years the number of those aged over 65 will exceed those under the age of 14 in both Nelson and Hawke’s Bay. “Rather than having a large youthful base, many of the regions and communities will become old-dominant,” Spoonley said.

The labour shortage could be exacerbated by government policy reducing access to overseas labour, a move Immigration Minister Kris Faafoi says is aimed at lifting wages, reducing pressure on services and infrastructure and encouraging businesses to invest in new technology.

“We would expect to see sectors respond to labour shortages by increasing wages or offering improved conditions, and that has not been evident across all sectors to date,” Faafoi told Farmers Weekly.

But wages are already increasing, with entry-level meat workers earning $23/h and second in charge dairy managers $80,000 a year, a 25% lift in two years, and the kiwifruit industry made the living wage of $22.75/h its minimum pay rate.

In the first half of the year, 2013 Recognised Seasonal Employer

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STOKED: Bay of Plenty local Stacey Marino has made the transition from part-time seasonal worker to full-time staff member of Kiwifruit Investments, upskilling along the way.

Staying local paves career path A love of being outdoors prompted her to head into orchards, thinning fruit and taking her to her present role that includes the highlyskilled task of winter pruning.

She is now studying her Level 4 horticulture production certificate at Toi Ohomai Institute of Technology and picked up her latest job with Kiwifruit Investments, a kiwifruit management company.

NZ Kiwifruit Growers Incorporated chief executive Colin Bond says the sector’s campaign to attract more locals

Richard Rennie richard.rennie@globalhq.co.nz EASTERN Bay of Plenty mum Stacey Marino is one of the 3500 additional locals recruited by the kiwifruit industry in the past three years through a concerted locals-focused campaign.

The 38-year-old full-time orchard supervisor kicked off her career as a seasonal kiwifruit contractor, but has upskilled as she moved into her full-time role.

“I thought I’d go into the packhouse and see what it was like. I loved it and it grew from there,” she said.

(RSE) workers were granted access and a further 300 a month will arrive until next March.

As part of that agreement, employers are paying them the living wage.

Despite low unemployment, Faafoi says 17% of the labour force work part-time and want more work, but admits getting people to relocate to the regions is difficult.

over the past three years has been a success, but he fears the supply of local labour has now run dry, while crop volumes are set to surge.

“By 2026 the sector will require 28,000 seasonal workers for harvest, an increase of 5000 employees from 2021,” Bond said.

Like many in the horticultural sector, he is urging the Government to carefully consider migration plans in its latest major review and the role seasonal migrant workers play in a country facing an increasingly dire shortage of working-age staff.

“Part of the challenge is understanding what it will take for people to move to where there is work, as well as targeting those people in a position to want and be able to move,” he said.

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NEWS

34 Newbie bags top award First-time entrant Jake Jarman won this year’s FMG Young Farmer of the Year title in Christchurch earlier this month and he hopes his achievement will inspire others to enter the competition.

REGULARS Newsmaker ��������������������������������������������������� 34 New Thinking ����������������������������������������������� 35

30 SPECIAL REPORT: Risks of an aging population A leading demographer admits she finds the latest headlines on labour shortages exasperating, having spent over a decade highlighting the issue to local bodies, industry groups and employers throughout New Zealand.

Editorial ������������������������������������������������������� 36 Pulpit ������������������������������������������������������������� 37 Opinion ��������������������������������������������������������� 38 World �������������������������������������������������������������� 41 Real Estate ���������������������������������������������� 42-45 Tech & Toys ���������������������������������������������������� 46 Travel ������������������������������������������������������������� 47 Employment ������������������������������������������������� 47 Classifieds ����������������������������������������������������� 48 Livestock ������������������������������������������������� 48-51 Weather ��������������������������������������������������������� 53

5 Win-win wool deal Thousands more Kiwi homes will be carpeted in wool following a landmark agreement between Wools of New Zealand (WNZ) and leading retailer Flooring Xtra.

28 Farm business manager wins award

Taupō farm business manager James van Bohemen was awarded the 2021 Rabobank Business Management prize for up-and-coming farmers.

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FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

3

Store lamb prices hit new high Neal Wallace neal.wallace@globalhq.co.nz SOME lines of store lambs hit $200/head in sale yard auctions last week, which commentators believe could be on the back of an Affco winter lamb contract which peaks at $10/kg.

The contract is limited to the North Island and is for supply in August and September, starting at $9.10/kg in mid-August and peaking in late September at $10/ kg.

AgriHQ senior analyst Mel Croad says this year’s winter contracts have progressively increased from $7/kg to this new high, which has slowed the flow of lambs to processing plants as farmers try to take advantage.

“The taps have been turned off dramatically due to the contracts out there,” Croad said.

“It was only April-May that the farm gate price was under $7/kg, now they are averaging $8.30/kg in the North Island and $8.15 in the South Island.”

Affco has increased the stakes with its latest contract.

It coincides with a flush of feed after widespread rain through parched North Island areas, prompting buyers to purchase lambs originally destined for processing but retained as store to supply late season contracts.

AgriHQ reports at least three pens at the Feilding store sale last week hit $200/head, while the 9000 lambs sold at Stortford Lodge last week averaged $5/kg and prices at Temuka were $40/head or $1.28/kg higher than the same time last year.

“Instead of filtering through to processing plants, they are being sold as stores to get the maximum return, which is turning the tap off the supply to processors,” she said.

Silver Fern Farms chief executive Simon Limmer says a rapid decline in the national lamb kill last month is creating

IMPACT: A rapid decline in the national lamb kill last month is creating challenges meeting year-round supply commitments.

Instead of filtering through to processing plants, they are being sold as stores to get the maximum return, which is turning the tap off the supply to processors.

Mel Croad AgriHQ challenges meeting year-round supply commitments and could lead to killing space issues later in the coming months.

“June statistics show that the national lamb kill is down 25% on last year, which puts the longevity

of these important campaigns at risk,” Limmer said.

“If this hole is being created by lambs being held over for later supply, we would have some concern around availability of processing space at that time, and lambs falling out of specification for key markets.”

Croad says this season differs to 2019 when lamb prices hit $9/ kg in November on the back of purchases by China, which faced an outbreak of African swine fever.

“Back then one market was driving it to secure protein for domestic consumption and it happened at a time of the year our own supply was ramping up so there was a short life-span because lamb started to flood processors,” she said.

Prices quickly fell as a result.

This year, Croad says prospects

are for lamb supplies to stay tight into September with strong demand in China, the UK, Europe and the US as foodservice reopens and the covid-19 vaccine is rolled out.

A backdrop to this is two months of high export volumes of lamb from Australia.

Its combined exports for May and June were 53,000 tonnes compared to a five-year average for that period of 45,000t.

Alliance Group livestock spokesperson Murray Behrent says global demand and pricing is expected to remain strong till at least the end of the calendar year, which means companies will have to offer competitive pricing.

“Pricing is being driven by a range of factors, including pressure on supply volumes and the covid-19 vaccines rollout, which is allowing countries to ease

lockdown restrictions and reopen the important foodservice sector,” Behrent said.

“The global improvement in lamb pricing is continuing across our global markets, ahead of last year and is considerably ahead of the five-year average.”

Store lamb prices are reflective of the global supply and demand.

His confidence is tempered by possible volatility in global markets because of the pandemic, foreign exchange levels and the ongoing supply chain issues.

Limmer says global demand is driven by the recovery of foodservice and importers look to reintroduce lamb to menus.

“Our ability to supply product for the recommencement of restaurant trade is important to secure our space on menus, which are generally set six months in advance,” he said.

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FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

SFF embraces sustainability Neal Wallace neal.wallace@globalhq.co.nz THE country’s largest meat processor says it is walking the talk on sustainability by launching a line of zero carbon Angus beef, phasing out coal use and committing to a regenerative agriculture (RA) future.

Silver Fern Farms (SFF) chief executive Simon Limmer says the moves are in response to consumer demands and, in the case of regenerative agriculture (RA), is about measuring and quantifying many existing farm practices.

Product that meets RA production standards and zero carbon beef will command premium prices.

“We recognise the connotation of regenerative agriculture can be challenging for farmers but if the market adopts the concept and we can apply product that meets that market expectation, then we have to go out and get it,” Limmer said.

He says for some suppliers it will be a case of measuring and quantifying existing management and practices through the NZ Farm Assurance Plan-plus scheme.

There are eight principles: reducing a farm’s carbon footprint; improving soil health; improving plant and insect biodiversity; improving water quality; conserving and restoring natural water bodies; improving the health and productivity of farm eco-systems; having the highest standards of animal welfare; and ensuring farmers and rural communities are nurtured, developed and sustained.

Limmer describes regenerative agriculture as a broad range of land-use practices which focus on regenerating topsoil, while also improving water quality, building plant biodiversity and respecting animal welfare.

“These practices can be adopted

LOOKING AHEAD: Silver Fern Farms chief executive Simon Limmer says its commitment to a regenerative future is in response to consumer demands.

Shareholdersuppliers taking part in this programme will be rewarded for producing a premiumquality beef product with attributes the market desires and will be recognised for the stewardship role that they have played by managing and protecting woody vegetation on their own farms.

Simon Limmer Silver Fern Farms over time to ultimately produce nutrient-dense food with a lower environmental impact

and positive social outcomes,” he said.

“It is a holistic approach to farming that focuses on outcomes measurement and continuous improvement rather than inputs.”

SFF will partner with Lincoln University and Duke University (US) to research regenerative farming practices, red meat eating quality and optimal human nutrition outcomes.

It will also support a group of suppliers to complete the Savory Institute’s Land to Market Accreditation course, which is also an accreditation body for RA. SFF has worked with AgResearch and Toitū Envirocare to complete a lifecycle assessment of its 100% Angus beef programme and will later this year launch Toitū Net Carbon Zero Certified Beef into the US market.

That assessment required the measuring of greenhouse gas emissions from production,

shipping and consumption of 100% Angus beef in the US. From that, SFF has worked with suppliers to measure, report and reduce their emissions.

Limmer says the programme will reward farmers for the carbon sequestered on their farms, much of which they are not currently given credit for.

“Shareholder-suppliers taking part in this programme will be rewarded for producing a premium-quality beef product with attributes the market desires and will be recognised for the stewardship role that they have played by managing and protecting woody vegetation on their own farms,” he said.

Limmer says the company is listening to its consumers.

“Consumer concerns are increasing with respect to soil health, emissions, biodiversity, agricultural intensity, water quality, and the resilience and sustainability of the current food system,” he said.

The company intends phasing out coal use by 2030 and this year will invest in co-funded projects with the Energy Efficiency and Conservation Authority to halve its coal consumption at its processing plants by 2023 and cut it by two-thirds by 2025.

It has made some progress already, with greenhouse gas emissions this year 13% lower than last year and 20% lower than three years ago.

Coal will be replaced by electricity and biomass, smart lighting, hot water system management and overall water use reduction.

Limmer says the lack of alternative biofuels will be a challenge for its South Island plants.

SFF co-chair Rob Hewett says while these initiatives will stretch the company, it presents an opportunity fulfil its vision of being “the world’s most successful and sustainable grass-fed red meat company”.

TIPS FOR winter grazing crops Minimise the impacts on the environment and your animals.

After grazing plant a catch crop. Where soil conditions and farm management allow, consider planting a fast growing crop straight after grazing such as greenfeed oats. It can help reduce nitrogen losses.

Leave an ungrazed and uncropped buffer zone around critical source areas. Critical source areas are parts of the paddock that can channel overland flow directly to waterways (e.g. gullies, swales, very wet areas, spring heads, waterway crossings, stock camps and vehicle access routes).

Look after your stock. Provide loafing areas, adequate feed, shelter and clean fresh drinking water. This could also be a good place for your stock during adverse weather events.

For more information and useful resources visit: www.beeflambnz.com/wintergrazing

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FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

5

A win-win deal for consumers and farmers Annette Scott annette.scott@globalhq.co.nz THOUSANDS more Kiwi homes will be carpeted in wool following a landmark agreement between Wools of New Zealand (WNZ) and leading retailer Flooring Xtra.

Other independent retail stores are also in the partnership mix with WNZ in its bid to get affordable wool carpets into NZ homes.

Starting this month, WNZ will manufacture and supply wool carpet to Flooring Xtra’s 61 stores and independent flooring retailers across NZ. Priced competitively compared with synthetic carpets, it will mean New Zealanders have a genuine choice between a synthetic product or a natural product direct from WNZ’s 730 farmer-grower shareholders, WNZ chief executive John McWhirter says.

The wool carpets will be available at more than 100 outlets across NZ. “The agreement with Flooring Xtra represents a win-win for consumers and farmers,” McWhirter said.

“We firmly believe carpets don’t have to cost the earth.

“Our goal is to grow the consumption of strong wool in the market by making wool carpet affordable to most Kiwis.

“We can achieve this by utilising modern high-volume manufacturing operations,

without impacting on quality and taking costs out of the supply chain.”

This will be the first growerowned NZ carpet brand to have grown its own wool fibre and supply a finished product to the NZ market, creating a strong branded connection with consumers.

McWhirter says one of the key barriers to increasing sales of wool carpets in the past has been affordability.

“A 48-ounce 100% wool carpet now only costs 5% more for an average house lot, which makes it an extremely compelling

COSY DEAL: Wools of NZ chief executive John McWhirter says a 48-ounce 100% wool carpet now only costs 5% more over synthetic for an average house lot.

proposition for Kiwis to choose wool over synthetic carpet,” he said.

As WNZ embarked on its blueprint to help turn the sector’s fortunes around, it was quickly identified that carpet accounted for 53% of the strong wool clip.

This meant that entering the carpet market and creating an affordable range of quality wool carpets would be the fastest way to fix the excess wool production.

Wool is one of the safest, sustainable and most eco-friendly carpet fibres available.

It is 100% renewable, biodegradable and grown in NZ, with a carbon footprint 14 times lower than synthetic.

Its environmental attributes are increasingly in step with consumer and government expectations.

“Taking control of the value chain moves our grower shareholders from essentially commodity traders and price takers to brand owners and price makers,” he said.

Like other NZ wool product manufacturers such as Icebreaker, the carpet is manufactured overseas.

“Manufacturing in NZ is expensive relative to overseas, so adding value offshore enables us to offer a competitively priced product with a robust margin,” he said.

“Our European-based manufacturer also serves as a great launching pad to service

PICK ME: Wools of NZ is taking responsibility for getting branded woollen products to the consumer while capturing greater returns at the branded consumer end of the market.

the market in the Northern Hemisphere.”

WNZ chair James Parsons says carpet moves significant volumes of wool and this is an example of taking responsibility for getting branded woollen products to the consumer rather than relying on others to do it.

WNZ is seeking to capture greater returns at the branded consumer end of the market so it can reinvest in demand-creation activities.

He says the launch of WNZ carpets provides a platform for other strong wool branded products as well as the potential for a rollout into other overseas markets “We believe that NZ overproduces wool by about 40,000 bales, about 6% of production, and this in turn lowers price,” Parsons said.

Taking control of the value chain moves our growers from commodity traders and price takers to brand owners and price makers.

John McWhirter Wools of NZ “The goal is to turn this around.”

WNZ is a 100% NZ growerowned supply, sales and export marketing company, with 730 grower shareholders representing 14.5 million kilograms of annual strong wool production.

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FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

7

Call to diversify and integrate Annette Scott annette.scott@globalhq.co.nz NEW Zealand agriculture is missing the opportunity to diversify and integrate and come up with one good story.

Sectors are pushing their own barrows and not achieving maximum potential as an industry, Foundation for Arable Research (FAR) chief executive Alison Stewart says.

Speaking at the Primary Industries New Zealand Summit, Stewart urged collaboration.

“We do not work in a cohesive world; when are we actually going to agree to come together?” she asked.

“We are all in these sector silos and we are missing the opportunity to diversify and integrate and come up with one good story.

“The arable sector is resilient, sustainable and profitable – up to a point.

“But if we want our industry to grow and thrive, we need to improve profitability across the board, even more so now with looming environmental legislative challenges ahead that will certainly eat into every grower’s bottom line.”

Stewart says FAR has been proactively looking for value-add opportunities for its growers over the past five years.

FAR has worked with several companies and agencies to develop commercialisation pathways for several crops, including sunflower and oats, and is currently exploring specialty grains such as durum wheat, spelt and quinoa.

Plant-based protein crops, including soya bean, pea, hemp, chickpeas and lentils, and plantbased milk, such as oats, hemp, almond and soy, are growing opportunities for NZ arable farmers.

However, she says, the arable opportunities going forward are

NEEDS SUPPORT: FAR chief executive Alison Stewart says it is difficult to see what the future journey looks like without the true nature of the financial health of the industry.

It’s important NZ gets its head around that now because arable, horticulture and pastoral will need irrigation to sustain the success of agriculture in the future, not bloody regen agriculture.

Alison Stewart FAR highly reliable on infrastructure.

“It’s important NZ gets its head around that now because arable, horticulture, and pastoral will need irrigation to sustain the success of agriculture in the future, not bloody regen agriculture,” she said.

Success is dependent on

identifying and developing valueadd market supply and demand, having NZ-owned germplasmunique attributes, with ability to fit into existing arable rotation.

Low environmental footprint, biosecurity and food safety with processing capability in NZ and export potential with acceptable returns to growers are key drivers of the future.

She says there are no rewards without risk – some initiatives will succeed, some will fail, but that is the reality of new product development A new crop with a higher gross margin of additional revenue from growing existing crop will add to the profitability of the crop rotation and continue to make arable an attractive and viable land use option for NZ. “Growing the crop is not the problem, it’s how to get value out of it,” she said.

“We see these plant protein reports and nobody has ever

talked to the arable grower to see how it would work on-farm – that annoys the hell out of me.

“Get real – is $400 a tonne for pea protein or oat milk an acceptable return to growers?

“Why would one of my growers produce seven tonnes of that when they can grow 12 tonnes of milling wheat and feed barley and get $420 a tonne – it just doesn’t make sense.

“But it does make sense to talk to us and see how we can collaborate and work as a cohesive world and stop missing potential opportunities.”

Stewart says arable ticks the boxes for being commodity and for the domestic market – the two lowest ticks you can get.

“We need to move out of that space,” she said.

“But the sector almost takes pride in operating under the radar.

“It frustrates me, they don’t want to share knowledge, they are

so innovative they are their own worst enemy.

“We can have a good story in our own silo, but we can have one good whole industry story if we all get out and work together.

“There is a huge opportunity to integrate crops into livestock – we have farmers, absolute exemplars of crops and livestock farming.”

Stewart urges arable growers to get more open in sharing their successes.

“It is difficult to see what the future journey looks like without the true nature of the financial health of the industry,” she said.

“We need to understand that to make good decisions. It is very hard to make judgements and take up opportunities in the future if you growers are not sharing your farming performances.

“We need you to open up and share, to progress opportunities for you as growers and as an industry.”

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FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

TB programme makes headway Colin Williscroft colin.williscroft@globalhq.co.nz OSPRI plans to begin a pest control operation this winter on a block of land it believes is a source of the current TB outbreak in Hawke’s Bay. Chief executive Steve Stuart told a farmer meeting in Putorino, one of three held in the region last week, that it has made an arrangement with the owners of the Waipunga block, north of the Waitara Valley on the NapierTaupō road.

That arrangement will allow Ospri access to the land to undertake ground and aerial control operations to tackle pests on that piece of land.

“It’s a very significant block for the outbreak in Hawke’s Bay because we think some of the source infection comes from that block,” Stuart said.

Ospri will work with the landowners through a trust in a co-management arrangement to eradicate pests from their land and at the same time bring back the biodiversity values of that land.

“That will help deal with the possum problem and the TB problem in Hawke’s Bay,” he said.

“It’s a win-win situation for both parties and we’re both very much looking forward to working together on that.

“We hope to be in there this winter, so we’re working with the landowners now to see if we can achieve that.”

The arrangement with the Waipunga block owners is for access over 10 years.

Whether that arrangement can be reciprocated with other landowners currently denying

Ospri access for pest control remains to be seen, as Stuart says every group of landowners is different.

“The thing we’ve learned over the past few years is that we have to work with them to find win-win situations,” he said.

He says Ospri is working with a number of others in the area on the same basis.

Despite the optimism over access to the Waipunga block, there is still uncertainty over whether the operation will go ahead.

We hope to be in there this winter, so we’re working with the landowners now to see if we can achieve that.

Steve Stuart Ospri Just before last Christmas, the Māori Land Court rejected a bid for an injunction to stop Ospri conducting 1080 pest control operations on land in the block.

Ospri was not part of those proceedings, as the case involved trustees making decisions on behalf of the landowners.

That decision has been appealed and will be heard next month.

Stuart says Ospri is subject to judicial proceedings like everybody else but at the moment it is still planning on going ahead with the arrangements to get the

pest control operation under way this winter.

In the meantime, Ospri, having decided that infection numbers were not coming down as fast as it thought they should be, has commissioned Landcare Research to undertake an independent review to check that nothing is missing from its plan to tackle the Hawke’s Bay TB outbreak.

“It’s good practice when you’re two years into an infection like this to get independent people to come and have a look at it,” he said.

“Are we doing this right? Is there anything that we are missing?

We need to make sure that we’re on the right track, that there’s no holes in the programme.”

The results of that review are due in about eight weeks’ time.

Changes have already been made to a “proof of freedom” model that maps the probability that infection will not return.

Stuart says despite the model being very successful in the past, when Ospri had the Hawke’s Bay situation reviewed one of the recommendations made was that more weight needed to be placed on surrounding areas outside the buffer zone.

“Not enough account was being taken of the risk behind the buffer zone. The area in behind was heavily infected and the possums were coming out through the river gullies that were conduits,” he said.

“The model has now been changed to build that in. It’s a small tweak but in this case it’s an important one.”

Stuart says significant progress has been made working with forest owners to make sure they are doing appropriate pest control

PROGRESS: Ospri chief executive Steve Stuart is optimistic pest control on an important block of land will get under way this winter.

on their land.

He says at the start of the Hawke’s Bay outbreak many owners of forestry blocks in the region were outside the tent when it came to pest control on their blocks. Now most are inside the tent.

Ospri’s general manager for service delivery in the North Island, Dan Schmidt, who is responsible for the Hawke’s Bay TB response operation, says from 2019 up until now there has been about 23,000 hectares completed of aerial pest control, 122,000ha of ground control and another approximately 60,000ha of surveillance done.

He says the plan for 2021-22 is to complete another 36,000ha of aerial control, 187,000ha of ground control and to do surveillance on another 41,000ha.

Stuart says the three meetings within Hawke’s Bay, the other two being in Te Pohue and Patoka, have been a great opportunity for farmers to hold Ospri to account.

“It’s been good for us to hear what their views are,” he said.

“Some of the things I’ve picked up are around the pace of delivery and making sure we do what we say we’re going to do.

“They want to hear from us more often, which is good, but the thing I find most interesting is that a lot of farmers turned up and they’ve had their say.

“I didn’t always like what I heard but we’ll go back and reflect on that and make sure we do it better next time.

“We’re committed to eradicating TB in this area. There’s a few years to go yet but we’re on the right path.”

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News

FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

9

O’Connor reflects on trade talks Nigel Stirling nigel.g.stirling@gmail.com JUST weeks out from Damien O’Connor’s biggest assignment as Trade Minister, the backdrop was not especially encouraging.

Open warfare had broken out in the British media between UK Trade Minister and free-trader Liz Truss and her more protectionist Cabinet colleagues over what the UK was willing to give away in trade negotiations with Australia, which were coming down to the wire.

Backing the National Farmers Union (NFU) was Environment Minister George Eustice fighting for a long 15-year transition for British farmers to adapt to tarifffree Australian imports.

NFU president Minette Batters mounted her own campaign, warning of apocalyptic outcomes for UK farming if the door was opened to Australia or New Zealand.

Six weeks later and the picture looks very different.

Australia and the UK have an inprinciple trade agreement and NZ and the UK aim to have the same by the end of August.

The terms of the Australian deal are encouraging for NZ, particularly the record-setting five-year phase out of tariffs on dairy products entering the UK. Midway through his two-week stint in MIQ isolation in Auckland, O’Connor reflected on his face-toface meetings with all the major UK and EU players.

Interestingly, O’Connor found the split in the British government over the UK-Australia trade deal to have been overhyped – encouraging news for NZ as it sought to replicate or even improve on that deal in its own talks.

“I think the differences were overstated. My discussions with Liz Truss and George Eustice were very useful,” O’Connor said.

“Eustice, as the representative for the agricultural and primary base, was more cautious and he raised issues of concern.”

“But he understood the need for the UK to reach out and begin

building trade relations with the wider world.”

Eustice’s embrace of relationship building looks like a nod to the outsized importance NZ and Australia suddenly has to Britain’s post-Brexit trade strategy.

It is desperate to join the Comprehensive and Progressive TransPacific Partnership (CPTPP), which has the potential to open up huge new markets for the UK in Asia.

Truss began negotiations to join last month.

As original signatories, Australia and NZ can veto applications.

Agreement to welcome its membership bid would be one explanation for the surprising ease at which the UK agreed its in-principle deal with Australia and would now appear to be a significant tailwind for NZ in its own talks.

O’Connor warned against expecting an exact replica of the Australian deal but is adamant NZ will stick to its guns – eventual elimination of tariffs on its most important exports is the bottom line.

“We do not expect to get exactly the same as anybody else in any agreement, but we hope to get the opportunity for progress and growth for our exporters and importers,” he said.

“We want the phase out of all tariffs … the question is how long.”

Most eagerly anticipated is dairy access where Australia has set the standard with an outstanding deal.

But British negotiators will be under pressure not to give as much to the dairy exporting powerhouse of NZ. O’Connor says shutting NZ dairy products out was difficult for the UK to continue to defend when it already had duty-free trade with the European Union, which ranks ahead of NZ as the world’s largest dairy exporter.

“We certainly point out those facts in negotiations,” he said.

“I think we are seen as a bigger threat, but there is a mix of different product lines and we will be working though those to

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SUCCESSFUL: Damien O’Connor’s trip last month to London and Brussels was arguably his biggest test as Trade Minister since taking on the job nearly a year ago.

We do not expect to get exactly the same as anybody else in any agreement, but we hope to get the opportunity for progress and growth for our exporters and importers. negotiate the best deal we can.

“The (Australian) deal on the face of it is a good deal and we are certainly aspiring to have something as beneficial but not necessarily the same,” he said.

A top priority for O’Connor’s meeting with Batters was to soothe fears about NZ imports flooding the British market.

“There is a concern about the cumulative effect of trade agreements that the UK might end up signing,” he said.

“In terms of some of our

BRIDGES

agricultural products, British farmers feel a bit exposed but I was able to reassure her about the reality of the volumes and that no one in NZ aspires to be a low-value exporter into what we consider is a high-value market,” he said.

“I think she took the points on board.”

Asked if British farming leaders were under-selling the potential of free trade agreements to their rank-and-file, O’Connor was diplomatic.

“I certainly highlighted the opportunity for UK farmers to look offshore and export to places other than the EU,” he said.

“That is a shift in focus they will have to work on.”

He also travelled to Brussels to meet his counterpart EU Trade Commissioner Valdis Dombrovskis.

Trade talks with the EU have been stuck for over a year, largely due to the poor state of the agricultural market access offer

from the Europeans.

The EU’s trade deal with the South American trading bloc of Mercosur had heightened sensitivity towards new agreements, which was making life difficult for NZ negotiators.

“The agricultural sectors in particular are overly sensitive to what they see as value loss through competition,” he said.

Nonetheless, Dombrovskis had promised a new market access offer soon.

The last time the EU’s offer to NZ was made public was in the middle of last year.

Then the EU offered to create quotas for NZ for a mere 0.02% of its cheese market and 0.03% of its butter market.

O’Connor wouldn’t comment on his expectations for the new offer.

“These are technical and challenging areas, but the indications that we received from Dombrovskis have flowed through into negotiations and that is encouraging,” he said.

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News

10 FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

Mixed signals on forest cap Richard Rennie richard.rennie@globalhq.co.nz

UNDECIDED: Agriculture Minister Damien O’Connor maintains the option of a cap on exotic forest plantings is still under consideration.

I think there was also a fair bit of push back from farmers themselves too.

Phil Taylor Forest Owners Association as the Government also sought to use exotic forests as the first response to NZ’s carbon emission reduction goals.

O’Connor had said the consent requirement was likely to kick in

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if new forest plantings were to get over 40,000ha in area each year.

Last year, newly planted area amounted to 22,000ha, well below the 1992-96 average of 75,000ha a year.

In the meantime, the forestry sector is taking a wait-andsee approach on whether the Government will still follow through on the requirement.

Taylor says it was likely the Government was putting the move on pause, recognising the “heavy lifting” in carbon absorption had to be done by exotic forests in the short-term, at least.

“I think there was also a fair bit of push back from farmers themselves too,” Taylor said.

“Farmers recognised this could be the thin edge of the wedge if regulations were to control how much area they could choose to put into trees on their land.”

Choosing to limit tree plantings will only mean pressure will be greater in other areas of the economy to absorb carbon, possibly at a greater cost.

“So, the Government is in a difficult situation here. Policy settings will be critical in terms of what Climate Change Commission recommendations are adopted. Putting the forest limitations on hold is a sensitive step backwards,” he said.

The proposed limitation was intended to be enforced on land-

use classifications (LUC) 1-5.

The Bay of Plenty was particularly vulnerable to the limitations, accounting for about a third of Central North Island’s 550,000ha of exotic forest.

Almost half of the BoP’s forested area is in LUC 4 and 5, compared to the national average of 75% of forested land on LUCs 6 and 7.

Of 58,000ha of new forest plantings done nationally in the past decade, 40% was on improved farmland, but the rest was on unimproved pasture and scrub country.

The total exotic forested area in NZ is near a 10-year average of 1.73 million hectares, still well below the 2003 peak of 1.827m ha.

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PUTTING a cap on exotic forest plantings is still an option on the table for the Government as it considers its response to the Climate Change Commission’s recommendations.

Last year in the lead up to the election, Agriculture Minister Damien O’Connor undertook to make resource consent a requirement for landowners seeking to convert over 50ha of higher-quality land into forestry.

The decision came amid mounting concern that greater areas of farmland were being lost to forestry, some to unharvested carbon forest plantings.

But Forestry Minister Stuart Nash signalled recently that the Government plans to back away from planting restrictions.

He told a primary production select committee when asked by committee member David Bennett that the restraint would not be put into play now.

He told the committee the Government would instead be aiming to integrate forest land legislation into the emissions reduction plan, to be developed by year’s end in response to recommendations from the Climate Change Commission (CCC).

But O’Connor maintains the cap may still be in play.

He says the Government was taking a “big picture” approach to climate change, including discussions around requiring resource consent for the conversion of highly productive farmland into forestry.

“This proposal is still active and is currently being considered for the forestry chapter of the emissions reduction plan.

“I am a strong proponent of the right tree in the right place and this proposal is one tool still very much in the mix,” O’Connor said.

The Government announcement last year to limit forestry area had Forest Owners’ Association head Phil Taylor claiming officials had risked painting themselves into a corner,

News

FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

Forestry extends an olive branch Annette Scott annette.scott@globalhq.co.nz PRODUCTION trees have potential to be farming’s biggest friend, Forest Owners’ Association president Phil Taylor says.

“I could be seen to be here to wave the olive branch to the farming sector,” Taylor said in opening his address to the Primary Industries NZ Summit.

“I believe we have an opportunity to work together going forward, to diffuse the angst forestry and other primary industry sectors have surfaced over the past four years.

“Forestry is open to engage with any other sector to see us prosper over the next 30 years and beyond.”

He says the integration of forestry and farming is important to primary industries, it is powerful for economic and environmental reasons.

“Forestry is a major economic force in our economy and it is a major environmental plus for many farmers,” he said.

“As a nation, and a planet, the challenge of the climate change target net carbon by 2050 is the debate – forestry for some has become the change point.

“The arguments of trees versus food production are misleading and detract from opportunities to improve the sustainability and profitability of the wider farming sector.

“Forestry, in a number of guises, will have some valueadd complement by land-use and protect farming for food producers, not threaten it.”

Not only do plantation forests provide an offset for farmers’ greenhouse gas (GHG) emissions, but they are a valuable farm production option as well.

The harvesting of woodlots on farms is currently accounting for up to 40% of NZ pine harvest.

“Many farmers will be doing well out of their investment in planting decades ago, with record strong prices and a significantly favourable international supply and demand imbalance,” he said.

Trees can be used not just for

timber, but also to deliver carbon lockup, erosion control and water purification as well as for shade, fodder, and food crops.

“Trees will be a major part of New Zealand’s developing bioeconomy and already there is an escalating appetite for wood to use in milk driers to supply an $8 billion milk powder export market,” he said.

“Dairy farmers may become competitors with their own companies because of the need for wood chips in cow standoff pads.”

Taylor says there is common ground across the primary sector on issues such as biosecurity, health and safety, labour availability, more indigenous biodiversity and an objective, timely and science-based regulatory system, which includes access to CRISPR gene technology.

He acknowledges the forest industry relies heavily on its exports of logs to China, but says most of the primary sectors’ exports are in the same boat.

MUTUALLY BENEFICIAL: Forest Owners’ Association president Phil Taylor says forestry is a major economic force in our economy and it is a major environmental plus for many farmers.

All three of the dairy, meat and wool and seafood industries are nearly 40% reliant on China for their export markets.

The Forest Industry Transformation Plan would not only see more products, such as biofuels and innovative engineered wood products, but more sawmills producing more timber for domestic and export, thus reducing the reliance on the log market.

He signalled though that this transformation is likely to lead to future concentrations of plantation forestry in some regions to get the maximum benefits out of transport, infrastructure and skills.

Taylor says the role of permanent carbon-only forests

should only be on erosion-prone or remote land, which could not be productively used for either farming or timber harvesting.

“It makes no sense to me to plant on good productive land, there is plenty of sub-land to plant forestry,” he said.

He cautioned if the Climate Change Commission’s reliance on 380,000ha of exotic trees being planted before 2035 is not met, then the Government of the day could need to cut livestock numbers to balance the GHG books.

“Undershooting the Government’s 2050 net carbonneutral target is not an option and if trees are not planted more difficult choices will be required,” he said.

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News

12 FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

Group targets water security Colin Williscroft colin.williscroft@globalhq.co.nz A NEW steering group chaired by former New Zealand special trade envoy Mike Petersen is looking at how to improve water security in Hawke’s Bay, although not everyone is convinced about the motivation of those behind the project.

Petersen says the issues of water security and the health of the Tukituki River, its tributaries and its people are becoming more urgent given the effects of recent droughts and the impact of climate change in the area.

He says the Tukituki Water Security Project will examine options for solving those two key issues: water security and restoring the health of the river and its people.

He adds there are no predetermined outcomes and the work is not a rerun of previous water projects in the region.

All of those involved with this project have a strong desire to ensure that future generations of Hawke’s Bay citizens can benefit from this work to make the region one of New Zealand’s best living environments.

Mike Petersen Tukituki Water Security Project Rather, it is a rescoping of the needs of the catchment and a genuine assessment of how that goal can be feasibly met using a range of measures, including the potential for water storage.

“The project will rescope a strategy for water security, which is being led from the bottom up, with the aim of first addressing

catchment needs from the effects of climate change and improved environmental outcomes,” Petersen said.

He says the group is made up of a small number of interested Hawke’s Bay citizens, including sector leaders, commercial interests and iwi, that have come together to progress water security for the local and wider region.

“All of those involved with this project have a strong desire to ensure that future generations of Hawke’s Bay citizens can benefit from this work to make the region one of New Zealand’s best living environments,” he said.

Central Hawke’s Bay farmer Andrew Wilson cannot see how the proposed project – and what he sees as its aim of an increased water supply for farmers wanting more access to irrigation – stacks up.

From the research he has done, it will only be intensive farming operations that will be able to afford to pay for water from any new scheme that might be established.

Wilson is concerned that those intensive farming operations will bring with them greater potential for nitrate leaching.

He adds that currently only a handful of farming businesses – all of them dairying – have access to the vast majority of irrigated water in Central Hawke’s Bay. Wilson says intensive dairy farming systems in Hawke’s Bay on light gravels apply on average 4500-5000 tonnes of irrigated water per hectare a year.

That compares to average household use in small towns in the region of 300-400t, so 10ha of irrigated dairy land could supply entire towns.

Wilson says that shows a need to socialise the cost of irrigation across urban areas, which he is against.

He is also unsure where water storage would be located as a recent Hawke’s Bay Regional Council study that explored possible locations for suitable sites could not find any.

Clint Deckard, a former member of the Tukituki Leaders

ASSESSMENT: Mike Petersen says the Tukituki Water Security Project aims to address water security and the health of the river and people in the area.

Forum who resigned from it last year citing concerns over the forum’s composition and processes, questions whether the make-up of the steering group is representative of the whole community.

He says it looks to be stacked with big irrigator supporters, although they are being slicker with their messaging than other groups in the past, putting more emphasis on potential environmental benefits.

Petersen says the project and the work of the governance group is at an early stage and from the outset there has been a shared desire and commitment between iwi and community to get it right.

The project group has engaged advisory firm Lewis Tucker to complete the rescoping and revalidation of the business case for the Tukituki project.

It will undertake a full review, including looking at the environmental footprint, water demand, the project structure, total project costs, capital structure and suitability of the consents.

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Petersen says the steering group has recently begun a process of engaging with the wider Hawke’s Bay community and all stakeholders to build support.

“Support from local tangata whenua has been strong and an early priority is engagement with hapū in person, where possible,” he said.

“Once there has been extensive engagement with the wider community, we hope that a consensus can be formed to

take forward water security for the Tukituki catchment as a key regional priority.

“We are confident that this project will also complement the important work that Hawke’s Bay Regional Council is doing to ensure water security for the wider Hawke’s Bay region.

“We look forward to keeping the community updated as we work collaboratively to develop a solution that has water security and restoring the health of the river and its people at its heart.”

Steering group members Mike Petersen – Chair, Tukituki Water Security Project, Waipukurau Liz Graham – Chair, Heretaunga Tamatea Settlement Trust Alex Walker – Mayor, Central Hawke’s Bay Hugh Ritchie – Livestock and cropping farmer, Otane Ian Walker – Chair, Centralines Sarah von Dadelszen – Sheep and beef farmer, Waipukurau Sam Robinson – Sheep and beef farmer, Flemington Denis Hames – Central Hawke’s Bay businessman and recently retired Findex partner, CHB

News

FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

Towns rally for Howl of a Protest

MOTIVATION: Laurie Paterson says Groundswell is seeking the scrapping of the freshwater, SNA, biodiversity and ute tax policies, and changes to immigration, climate change and CPLA policies.

Neal Wallace neal.wallace@globalhq.co.nz MORE than 40 towns and cities from Kaitaia to Invercargill will reverberate to the sounds of tractors and utilities on July 16, as farmers and tradies protest multiple government policies.

Howl of a Protest is organised by pressure group Groundswell NZ, which says it is standing up for farmers, food producers, contractors, tradies and councils against what they claim to be a host of unworkable rules imposed by central government.

Organiser Laurie Paterson cannot say how many people will participate but says interest in the movement and the protest is growing with people frustrated by the deluge of government policy.

“They are sick of the avalanche of unworkable rules being dumped on them and the idea is to make a statement,” Paterson said.

They are sick of the avalanche of unworkable rules being dumped on them and the idea is to make a statement.

Laurie Paterson Groundswell NZ He says elected local body representatives are telling him they have similar concerns with government policies.

The list of policies they oppose range from freshwater, significant natural areas (SNAs), indigenous biodiversity, immigration controls, climate change, Crown Pastoral Lease (CPLA) reforms and the tax on utilities to fund electric vehicle subsidies.

Groundswell is seeking the scrapping of the freshwater, SNA, biodiversity and ute tax policies, and changes to immigration, climate change and CPLA policies.

Paterson says central to the success of the protest is to “be in the news for the right reasons not the wrong ones”.

“We want to be sensible persuaders, not a bunch of rednecks,” he said.

He hopes tradies will signwrite their utes to show the public the variety of users and businesses that require them.

Paterson is also urging protesters to engage constructively with their urban cousins and explain the shortcomings of the policies that they oppose.

He believes they will find support.

“A number of urban people are not happy with what is happening,” he said.

Contact us Editor: Bryan Gibson Twitter: farmersweeklynz Email: farmers.weekly@globalhq.co.nz Free phone: 0800 85 25 80 DDI: 06 323 1519

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14 FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

GDT prices ease across the board

DIP: NZX dairy analyst Amy Castleton says her milk price forecast had dropped 15c following the GDT result and trading on the futures market over the past two weeks.

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GLOBAL Dairy Trade (GDT) prices dropped 3.6% in aggregate in the latest auction, the biggest fall since mid-March.

Analysts say the market reacted to news of New Zealand’s strong end to the milk production season and hesitancy from buyers to pay the recent premium commodity prices.

The GDT index fell 3.6% to US$3924/tonne average across eight products and six contract periods.

The index is now 10% below its recent high in early March, but still 22% higher than this time last year.

Prices have fallen in each of the past six twicemonthly auctions, during the three months of New Zealand low season for milk production.

Whole milk powder prices (WMP) dropped 3% in the latest auction, skim milk powder (SMP) minus 7% and cheddar minus 9%.

Butter and anhydrous milk fat (AMF) prices dropped 3.2% and 0.9% respectively, as milkfat products fared better than protein products.

Westpac economist Paul Clark says despite WMP prices falling below US$3900/t, it’s are still 20% higher than last July.

He says the current bank forecast of $8/kg milksolids for the new season did incorporate some easing back of WMP prices.

However, ASB economist Nat Keall says his prediction of $8.20 in the farm gate milk prices was now threatened on the downside by the fall in global dairy prices.

“Prices are moving lower a shade faster than we had previously anticipated and the fact the fall comes despite the fall in Fonterra’s volumes on offer is a bearish sign,” Keall said.

“The contract curve also now has a sizable downward slope, showing prices falling substantially for later dated contracts.

“This suggests prices have lost a bit of momentum as we head deeper into the new season.”

NZX dairy analyst Amy Castleton says her milk price forecast had dropped 15c to $7.81/kg following the GDT result and trading on the futures market over the past two weeks.

The reworked forecast was down 22c from the one NZX sent out in mid-June.

The GDT price movements were partly in reaction to Fonterra’s news of a 1.5% milk collection increase in the dairy season ended May 31.

It is only the second small seasonal increase in milk production in the past seven seasons, since peak milk for Fonterra back in 2014-15.

That peak was 1614 million kg milksolids, while last season the tally was 1539.

The 80m kg gap is equivalent to one billion litres and about a 5% reduction over the past seven years.

Fonterra says in its capital restructuring discussion document that further reductions could result in 100m to 250m kgs (6 to 16%) less milk by 2030.

Against this backdrop, which has serious implications for processing capacity and profitability, the market latched on to the recent strong autumn production.

Fonterra’s May intake was 7.7% ahead of May 2020 and April was 11% higher.

The Dairy Companies Association of New Zealand reported that seasonal production in 202021 was 1947m kg, which therefore disclosed that Fonterra collected 79% of the total.

The national tally the previous season was 1896m kg, so NZ milk production in total rose by 2.6% in the 2021 season.

News

FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

15

Water reforms get mixed reaction Gerald Piddock gerald.piddock@globalhq.co.nz RURAL and urban councils across New Zealand are mulling over the implications of the Government’s proposal to take responsibility of drinking water, wastewater and stormwater infrastructure out of local governments’ hands and give it to four new entities.

Local Government Minister Nanaia Mahuta says the proposal would save ratepayers thousands of dollars. It would also ensure the $120-$185 billion the Government is investing in services can be made.

At present, 67 councils provide most of the country’s Three Waters services, a system that is in too many cases ineffective, inefficient and not fit for purpose.

The four entities would encompass: Northland and Auckland; the centre of the North Island, including Tauranga and the Bay of Plenty; the east coast down to Wellington and the top of the South Island; and the final entity covers the rest of the South Island.

Local Government New Zealand (LGNZ) president Stuart Crosby says it supported amalgamation of water entities provided it was voluntary.

If it proceeds, the four new entities would be put in place next year, but they would not be operational until July 1, 2024.

He says the reaction among the country’s councils was varied.

“Some have said ‘yes, we understand it’ and are prepared to be part of that, others want more information and some have been opposed to it from the get-go,” Crosby said.

“LGNZ’s position is that we do accept there is a case for change, but we also respect from each individual 67 authorities that their view could be yes or could be no.”

That variance also ran along urban and rural lines. Urban councils – with the exception of Auckland mayor Phil Goff – were generally supportive of it.

Smaller rural councils have a range of issues to consider from the proposal.

REDUCE COSTS: While the Government’s proposed water reforms have been met with mixed reactions, Local Government Minister Nanaia Mahuta says the proposal would save ratepayers thousands of dollars.

Some have said ‘yes, we understand it’ and are prepared to be part of that, others want more information and some have been opposed to it from the get-go.

Stuart Crosby Local Government NZ Some questioned whether it meant the end of their councils, given the three waters services and rates generated 30% of its income. Others wondered what, if any, influence it would have in being part of one of the four new entities.

“How can I have any influence over these big authorities when I’m a Clutha of the world? Having influence is a big concern,” he said.

Crosby says ensuring iwi voices are properly heard in this proposal will also be a major challenge for the Government.

Kāpiti Coast District Mayor K Gurunathan labelled it a possible “turd degree burn for ratepayers”.

“My main concern with the proposal is that ratepayers who have invested heavily and proactively in our water services and are well-positioned for the future because of it will end up bearing the costs of an entity that will need to prioritise failing infrastructure in other areas over work in our communities,” Gurunathan said.

Waimate Mayor Craig Rowley questioned the accuracy of the data being used by the Government to justify the proposal.

“We firmly believe the data in their model is not suitable particularly for rural New Zealand,” Rowley said.

He was also concerned about the proposal’s costs. Waimate ratepayers currently paid around $430 a year for water delivery.

“Under the new proposal this would go up to $1640,” Rowley said.

He says the council will go over the data more closely in the next few weeks and eventually be in a position to present options to the district’s ratepayers.

Christchurch mayor Lianne Dalziel was lukewarm towards the proposal, saying it was difficult to yet see a compelling case for change.

“Until we get the full package and have all the pieces of the puzzle in front of us, it is difficult to judge whether it is in Christchurch’s best interests to be part of the new entity,’’ Dalziel said.

Auckland Mayor Phil Goff also questioned what value the proposal had for Aucklanders.

Far North District Mayor John Carter says the Government makes a strong case for reorganising three waters services.

However, the council needed time to do due diligence on it.

“We need to understand the data and our position, including

what is best for the people we are elected to represent,” Carter said.

Likewise, Marlborough Mayor John Leggett says councillors will look closely at the proposal.

“From what we have seen so far there appears to be economies of scale and benefits for ratepayers and residents in the proposals.

The numbers presented by the Government look appealing from a cost-to-ratepayer and infrastructure investment point of view,” Leggett said.

“But it’s important that our council thinks hard about what is best for our community for the long-term – that is the priority.”

Waikato District Council Mayor Allan Sanson welcomed it, given that long-term plan modelling had shown the future unaffordability of Three Waters services.

“Our council has received a pack of information about the proposals, which we will be working through to form a view,” Sanson said.

Further details on the proposal are due to be released in mid-July.

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News

16 FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

Dairy demand set to stay Gerald Piddock gerald.piddock@globalhq.co.nz STRONG demand for dairy looks set to continue as the global economy resumes its rebound from the effects of the covid-19 pandemic, Fonterra chief operating officer Fraser Whineray says.

That demand included the co-operative’s China market, which took about one-third of its milksolids, he told about 100 farmers at the Smaller Milk and Supply Herds group’s conference at Lake Karapiro, near Cambridge.

“The bits that we’re attached to are doing pretty well economically,” Whineray said.

This was aided by the Chinese government, which had recommended children, elderly and pregnant women increase their daily dairy consumption from 300-500g, as a way of increasing their daily health during the covid-19 pandemic.

“That’s only 200g but there’s lots of people,” he said.

Yoghurts and probiotic products were a key component of that, with a six-fold increase of probiotic sales in China last year.

“That might have been only 3.5 tonnes, but when those things sell for $3 million a tonne, it does make a difference,” he said.

He says kiwifruit’s vitamin C qualities saw it in a similar position also with Chinese consumers.

The pandemic tightened up the shipping supply chain, turning it into a maritime traffic jam as more people stayed home and spent their money on consumer items.

There’s good strong demand, even for the humble whole milk powder.

Fraser Whineray Fonterra “It’s all happening in this global simultaneous splurge and that’s put shipping well beyond what its capacity is,” he said.

It had pushed the spot price costs of sending items from China to the US and China to Europe up six times.

Fortunately, he says, Fonterra was part of a group of New Zealand exporters that shipped one-third of the country’s container traffic through global shipping giant Maersk.

“That supply chain won’t relieve

for a while – what it needs is for people to stop spending money on goods,” he said.

The pandemic still presented both risks and opportunities for the dairy industry, reflected in the strong opening forecast for the new season, generating about $14.5 billion across the entire dairy sector.

“It’s great to see that income coming in for New Zealand,” he said.

He did caution farmers, saying the season was long and conditions can vary.

“There’s good strong demand, even for the humble whole milk powder (WMP),” he said.

He rejected claims by people that it was a commodity.

“Less than 2% of the world’s milk is in WMP. It is actually a stunning niche, which New Zealand owns. It involves a lot of intellectual property that is still being developed and it is very difficult for our customers to replicate that at scale,” he said.

NZ’s WMP flavour profile gave it a unique point of difference because of the country’s pasturebased farming system. He says that and its lower carbon footprint gave it a differentiation.

Increasingly, large customers were questioning the carbon footprint of dairy products and its

BRIGHT OUTLOOK: Fonterra chief operating officer Fraser Whineray says the outlook for dairy markets looked positive.

animal welfare credentials. Farm environmental plans (FEPs) and its co-operative difference milk price payments helped Fonterra answer those questions.

“That’s why you’ll see New Zealand skim at $300 a tonne higher than European skim even when you put them through the same lab, they test the same,” he said.

“That’s almost 10% – why would they pay that premium? A lot of it is to do what is happening here

and our low carbon position.”

NZ dairy production and agriculture are revered by many of Fonterra’s Asian customers and saw it as a very pure place to source high-quality nutrition from and was highly trusted, thanks to 50 years of Anchor billboards.

Whineray believed the image these people had of NZ was based on those billboards.

“When they did come here, they couldn’t believe the poster was real,” he said.

News

FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

17

Red meat exports holding steady NEW Zealand exported red meat and co-products worth $877 million during May, according to the latest analysis from the Meat Industry Association (MIA).

Overall, exports to China totalled $344m, down 14% compared to May 2020. Sheepmeat exports to China reduced by 12% to 21,610 tonnes and beef by 23%, to 16,134t.

However, sheepmeat exports to almost all other major markets increased, particularly to the US, with a 156% rise to 281t, worth $41m. Sheepmeat exports to the US have rebounded from very low levels at this time last year due to covid-19.

Overall, sheepmeat exports were up 1% to 36,193t, with a value of $369m.

MIA chief executive Sirma Karapeeva says that overall exports were very similar to the same period last year.

“We are seeing red meat exports return to more typical levels. There are changes in destinations, which reflect global demands and this underlines the ability of the industry to be agile and service markets with the strongest demand,” Karapeeva said.

“Chinese import data shows that overall meat imports into China from all countries declined slightly, compared to May 2020. This could be as a result of reported decreases in domestic pork prices in China and the larger volumes of meat imports in previous months.”

Beef exports to most markets, including China, were down year-on-year, with an overall drop of 6% to 45,710t, worth $358m. However, beef exports to the US increased by 3%, to 16,755t and there was a significant increase in demand from Switzerland.

Beef exports to Switzerland increased 647% to 605t. This was against a smaller than usual amount of beef exports to the country last year, but still significant, as in recent years beef exports to Switzerland have averaged just under 400t per month.

“Switzerland is a market that applies significant barriers on a number of agricultural imports including meat,” she said.

“However, it is a market where there are opportunities for growth and a report recently produced for the New Zealand International Business Forum identified Switzerland as the highest ranked candidate as a potential free trade agreement partner.”

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FAVOURABLE conditions have seen Fonterra’s latest Global Dairy Update report a 1.5% lift in New Zealand milk production across its farms for the 2020-21 season compared to the previous season.

Last season’s milk collection was 1539.2 million kilograms of milksolids.

The report’s release and new production data saw shares and units in Fonterra’s Co-operative Group and Shareholders’ Fund rally from $3.35-$3.76 and $3.65-$3.91 respectively.

Settled, warm and dry weather across May saw Fonterra’s milk collection climb 7.7% to 75.3m kg MS, particularly in the North Island where its milk production climbed 28.6% to 38.6m kg MS. The full season collection for the island was 908.3m kg MS, 3.9% ahead of last season.

Fonterra’s South Island milk collections for May was 8% down for the month compared to last season, collecting 36.7m kg MS. Collections for South Island began to drop off more quickly during the second half of May than in recent seasons.

The heavy rain in the last weekend of the month caused flooding in some areas, with disruption to collections as a result. Its full season collection was 630.9 million kg MS, behind 1.8% on last season.

Total New Zealand dairy exports increased by 19.8%, or 52,355 tonnes, in May compared to the same period last year.

OUTLOOK: Meat Industry Association chief executive Sirma Karapeeva says that overall exports were very similar to the same period last year.

Contact your rural retailer or a Corson Maize Agronomist on 0800 4 MAIZE (62493) or visit corsonmaize.co.nz

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News

18 FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

Zespri mulls post-vote options Richard Rennie richard.rennie@globalhq.co.nz ZESPRI intends to scale back its ambitions to run commercial trials with Chinese growers after failing to gain sufficient support from New Zealand growers to push ahead with the programme.

The kiwifruit marketer required 75% grower support to undertake a programme with Chinese growers that included low volume commercial trials using Zespri protocol and marketing. A grower vote netted 70.5%.

The programme was an exercise aimed at working with Chinese growers who have planted unauthorised SunGold kiwifruit, originally sourced illegally from plants supplied out of NZ. The SunGold (G3) area in China has expanded rapidly and largely through the Sichuan province, to cover more than 4000ha. It is expected the area of unauthorised plantings will eclipse the 7500ha in NZ within two seasons.

Chief grower, industry and sustainability officer Carol Ward says Zespri could continue to run its research and development programme in China that has been under way for some years, without the commercial element attached.

“The problem is not going away and is only likely to increase. We are concerned about the impact of the volume of this G3 fruit on our retail space,” Ward said.

While grown out of season to NZ’s SunGold fruit, the Chinese variety is still expected to impinge on about 30% of the NZ-grown fruit still in market when the local variety is harvested.

Zespri’s own estimates are that the Chinese growers could have between 30-90 million trays of class one equivalent fruit in the market over the coming five years.

“We will have a multi-pronged attack from here. We can run a small R&D programme without the commercial trial. We will also continue to build relationships with central and local government authorities and the Chinese industry and talk to NZ authorities on our options,” she said.

MOVING ON: Zespri chief grower, industry and sustainability officer Carol Ward says the marketer intends to continue working closely with Chinese authorities, while respecting growers’ vote on the China trials.

Photo: NZTE

Perhaps it was a case that those who were against it did not have a chance to see what has happened up here. Had they done so, that could have made a difference.

David Mahon Investment advisor China has been viewed as a growing area that could provide a good volume of fruit to help growers maintain year-round shelf space in overseas markets. At present, Italy is providing the bulk of off-season SunGold fruit.

“Year-round supply means we can spread our marketing investment across a broader time period and the same would apply if we were growing in China. The

question now is how to do it,” she said.

She says it was encouraging to see acknowledgement coming out of China about the value of plant variety rights, backed by strengthened consumer brand and patent protection rules.

Ward says it was unfortunate more growers in NZ had not been able to visit China to appreciate the scale of the plantings that have gone in the ground there.

Beijing-based trade and investment advisor David Mahon says the Chinese had reacted positively to the grower vote, despite it not getting the required 75% support.

“It showed the majority of kiwifruit growers supported the proposal and they (China) do not see it as a defeat at all, more as an issue that has to be resolved,” Mahon said.

He says it was accepted that many companies required 75% support for major decisions to get over the line and the vote was not far short of it.

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“I still think the strategy is correct. Perhaps it was a case that those who were against it did not have a chance to see what has happened up here. Had they done so, that could have made a difference,” he said.

He says the Chinese respect the decision that has been made.

They appreciated growers’ caution about making such a move, in contrast to some of the more rushed decisions other NZ companies have made with respect to their China investments.

“The media coverage here has been more about how NZ growers have confirmed their relationship with China,” he said.

Mahon says next steps will need to be thought through carefully by Zespri.

“Unless there is some way of managing it, the damage will be considerable to SunGold fruit sales from NZ. But there is a way,” he said.

“If you are a domestic-based business with a strong local

partnership you can enforce your rights with greater strength.

“And there is an opportunity for growing fruit out of season, as is done in Italy, but not at the volume capable here.

“If NZ does not do it, the Chileans will.”

He maintains growers who voted against the trial in China have voted “against something that has already happened”.

The area of SunGold fruit in the ground may even eclipse NZ’s by next year.

United States company Driscolls has successfully managed to establish a successful berry growing business in China and aims to triple its fruit production by 2025 in response to enormous local demand.

Company executives have cited China as having the potential to be as big, if not bigger than the United States for fresh berry consumption.

“So lots of companies can and are doing it,” he said.

News

farmersweekly.co.nz – July 12, 2021

19

HONEST, HARDWORKING, NZ MADE LEGENDS

GROWTH: A surge in protein demand and imports from China saw imports reach alltime highs in the first quarter of this year.

China’s impact on meat exports THE beef trading environment is becoming increasingly dynamic with current fundamentals looking to offer opportunity for the New Zealand beef industry.

The Beef + Lamb NZ Economic Service team has examined the key influences in China that are impacting, or have potential to impact, demand for NZ sheepmeat and beef exports.

Findings show global red meat trade headlines are increasingly dominated by demand and supply patterns emerging from China, which has become a key driver of global trade flows and prices for meat protein.

China was the largest importer of both beef and sheepmeat in 2020, buying $36 billion of imported meat, 47% of the global total.

Both sheepmeat and beef exports to China accounted for 5% of the total NZ merchandise revenue in 2019-20, with 50% of sheepmeat and 36% of beef exports shipped to the China market.

The importance of China as an export destination for NZ sheepmeat and beef means that the supply chain, including farmers, processors and the NZ domestic market, is sensitive to changing demand and supply patterns in this market.

The Economic Services team says interpreting China is challenging as not only is it incredibly dynamic and developing rapidly, but information and data collection on market trends is scarce.

A surge in protein demand and imports from China saw imports reach all-time highs in the first quarter of this year, with retail prices for sheepmeat up 9.4% and beef up 4.1% on last year, the highest since April 2010.

While the outbreak of African swine fever is seemingly the most significant factor for the surge, there has also been a shift of more consumers into the middleupper income brackets, with the increased wealth leading to greater consumption of higher-quality meat proteins.

Into 2021, demand has also been supported by the Chinese government’s focus on economic growth post-covid and the recovery of the foodservice sector demand as the covid vaccination rolls out.

A tightening of global supplies

of both beef and sheepmeat are contributing to the optimistic demand outlook for China and key markets.

“There is plenty of speculation regarding who can fill the emerging gap between global beef supply and Chinese demand in 2021,” the Economic Services team said.

Limited supplies of both beef and sheepmeat from Australia were expected.

What has been unexpected for global beef trade is the drop in production from Brazil, evident in the first quarter of 2021, and the sudden 30-day suspension of Argentine exports, including China.

Argentina and Brazil together accounted for 61% of China’s beef imports in the first quarter of this year.

The US is now constrained by the Chinese requirement for cattle to be free of ractopamine, a feed additive widely used in the US to support grain prior to finishing.

US beef exports are also at the higher-quality end and will not fill the gap left by the lower cost South American beef, of which there are still unanswered supply questions that may minimise China’s supply shortage.

There are reports of Brazil importing lower cost beef from Paraguay to meet its domestic market requirement so it can continue to supply the higher-value export market, while Argentine beef producers are understood to have negotiated with the Government for a portion of beef exports to resume under a new quota system.

“But the timeframe and potential impact this will have on beef supply remains unclear at this time,” they said.

“It is clear that the beef trading environment is becoming increasingly dynamic and currently the fundamentals of the market favour exports offering opportunity for NZ beef farmers and exporters.”

Historic highs for NZ lamb and mutton farm gate prices, combined with tight global supply of sheepmeat, are driving optimism for this sector.

While farm gate prices for beef are yet to respond in a similar pattern, the uncertainty around future supply for 2021 is expected to result in strengthening winter prices and a strong start to new season pricing for beef farmers, the team reported.

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News

FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

21

Mitigating GHG emissions Hugh Stringleman hugh.stringleman@globalhq.co.nz

FOOTPRINT: Michele and Kevin Alexander, Waiotu Farms, have made farm system changes after computer modelling by AgFirst Northland on Farmax.

We have been able to reduce fertiliser applications by 30% and provide proof of placement.

Kevin Alexander Farmer would bring the annual GHG emissions down from 10,675kg/ha to around 10,300, a 3.5% reduction.

The property has a wealth of environmental capital by way of remnant native podocarp forest left by the previous owners, the Wilkinson family.

The Alexanders are planting new native seedlings and creating wetlands to minimise their GHG footprint.

From previous work undertaken for the NZ Agriculture Greenhouse Gas Research Centre, Journeaux says farm modelling showed that reducing the stocking rate by 10% would bring about reductions of GHGs from 3-8% on four different farms.

The change in earnings for those farms varied considerably: 12% and 14% positive and 3% and 4% negative, depending on the strategy implemented by the farmer.

Replacing nitrogen

fertiliser with bought-in feed reduced GHG by 11% but chopped earnings by 18%.

In-shed feeding with higher cow numbers, or the same, increased GHG emissions and earnings.

Growing maize instead of using palm kernel could reduce GHGs without harming earnings.

Limiting fertiliser to 100kg N/ha/year reduced GHGs by 5% but reduced earnings by 12%.

A shift to once-a-day (OAD) milking showed a small increase in GHG emissions and a 21% improvement in earnings. This was one of 14 scenarios for OAD – all have differing results depending on how the transition was managed.

He says a reduction in stocking rate was the key tool available at present for reducing GHG emissions.

“Reducing stocking rate has a direct correlation with reduced methane but it usually has a negative impact on farm profitability and requires a much higher standard of grazing management,” Journeaux said.

“If pasture quality declines, then production will decline even further.”

Reducing stocking rate accompanied by increased per animal production, to maintain or improve profitability, will still reduce GHG emissions.

“But it will be to a lesser extent, given that the

remaining animals need to eat extra dry matter to achieve the higher production level,” he said.

Journeaux says the expertise of the dairy farmer and the genetic quality of the cows played an important part, as farming under reduced stocking rate requires a higher level of management and the cows must be capable of higher production.

His advice to the conference-goers was to know their GHG emissions and benchmark them against others.

Farmers needed to understand the basic drivers of GHG emissions and the effects of various farm systems changes and landuse changes.

The basics of forestry as an offset needed to be understood, but expert advice was essential before a decision was made. Farmers also need to understand that forestry is a relatively shortterm solution.

If a farmer was willing to trade off reduced profitability with improved environmental outcomes then the costs and benefits need to be clearly understood.

He advised all farmers to keep an eye on sector-wide efforts such as He Waka Eke Noa but if they looked like falling short of agreed targets, then the Government has reserved the right to put farming into the Emissions Trading Scheme (ETS).

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PWS 2125

CHANGES in dairy farm systems can mitigate greenhouse gas (GHG) emissions but only in a limited way, AgFirst Waikato consultants Phil Journeaux and Nico Mouton say.

They told the New Zealand Holstein Friesian Association (NZHFA) annual conference in Whangarei that Farmax modelling of possible farm systems changes did reduce GHGs by 2-10%, excluding any forestry moves.

Options include a mix of reducing cow numbers with various changes in per cow productivity, reducing the replacement rate, reducing the nitrogen fertilisers and/ or supplementary feeds, planting pines and planting kiwifruit.

Mouton says changes in land-use were particularly relevant in Northland because Fonterra’s supply farms were going down by 2530 annually, mostly because of conversion to horticulture.

The NZHFA conference participants visited one Northland member’s property where changes are under way after five different computer models with AgFirst and Farmax.

Kevin and Michele Alexander of Waiotu Farms at Hukerenui have made changes to optimise performance, establish the best economic output, limit surplus nitrogen loss and gain a greater understanding of the GHG output.

They have reduced stocking rate to 2.2 cows a hectare and resown 75% of pastures with winter/early spring active perennial ryegrass and clover.

They also strongly contribute in summer and autumn.

Calving date has moved forward 10 days and they are considering taking a further 10 days.

The Alexanders have invested in a Kverneland TL Geospread fertiliser spreader and a John Deere tractor with a GPS auto-track system.

“This has allowed us to reduce fertiliser applications by 30% by way of accuracy and recording,” Alexander said.

Figures can be shared with Ravensdown fertiliser co-op, seed merchants and the mechanic and proof of placement generated for the regional council.

They also introduced forage oats for autumn and winter feeding, with careful regard for soil structure and run-off and will continue with maize silage.

According to AgFirst and Farmax, the combination of changes on Waiotu Farms

corsonmaize.co.nz 0800 4 MAIZE (62493)

News

22 FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

Arable must plan for GHG targets Annette Scott annette.scott@globalhq.co.nz THE Government has committed to reaching net zero emissions of long-lived gases by 2050.

It has also committed to reducing biogenic methane emissions by between 24-47% by the same year.

But New Zealand Agricultural Greenhouse Gas Research Centre (NZAGRC) director Dr Harry Clark says current policies do not put NZ on track.

He says it is already too late to meet these targets.

Speaking at the Foundation for Arable Research (FAR) conference at Lincoln, Clark focused on what domestic greenhouse gas (GHG) reduction targets mean for the arable sector.

NZ’s emissions profile is unique, agriculture is big, the only other country anything like NZ is Ireland, with 28% of agricultural emissions,” Clark said.

He says NZ at 48% is unusual for a developed country, other countries have an easier pathway than NZ, at least initially.

“The stepping stones to targets are a challenge for the whole of society, not just a sector,” he said.

“That will mean change across the whole of society if we are going to meet targets.”

Reducing long-lived gases by 63%, or 50.6 tonnes, by 2035 does not reflect the stern task ahead.

“We cannot keep kicking the can down the road and keep planting trees, it’s not enough,” he

We are feeding more people with less emissions, that’s a very positive news story – we are very efficient and getting more efficient, but we still need to drive emissions down.

Dr Harry Clark NZAGRC said.

Clark says predicting how agricultural emissions will change for the arable sector is difficult because of other environmental policies putting a break on agricultural activities.

“Emission per unit of product is reducing but food production is increasing,” he said.

“We are feeding more people with less emissions, that’s a very positive news story – we are very efficient and getting more efficient, but we still need to drive emissions down.”

Up to 2030 it is very much about existing policies, business as usual.

Beyond 2030, efficiency improvements continue but it is not business as usual.

New technologies are needed and pricing will continue to play an important role.

“You can’t imagine what you

FALLS SHORT: NZAGRC director Dr Harry Clark says current policies do not put NZ on track to meet its greenhouse gas reduction targets.

don’t know – finding out your GHG on-farm is the critical first step because you will need a plan to manage them down because that is required,” he said.

“Come 2025, you will be paying a price.”

Mitigation options include lower-emitting land-use such as cropping.

“Plant-based products have lesser emission per unit of food than livestock, so what can we do?” he asked.

“New technologies are being

developed but a lot of these are in the future, still under development, so I have no nice silver bullet for you.”

He says people will vote with their wallet despite the kind of emissions, so for the arable sector there are some big opportunities.

What should cropping farmers be doing now?

• Know their annual on-farm methane and nitrous oxide emissions and benchmark.

• Understand the basic driver of these emissions as a

precursor to understanding and developing farm strategies to reduce on-farm GHG emissions; look at land-use options and the implications for business profitability.

• Know what is happening in the wider sector around meeting GHG emissions and understand what is needed to meet freshwater regulations and how this will impact on GHG emissions.

“Forestry is complicated if you are considering that, only about three people in NZ understand the accounting,” he said.

“You really do need to understand the rules and know what you are doing about GHG in everyday work on the farm and you have to address that in an integrated manner.

“At policy level there is still a lot to integrate – GHG, water, biodiversity.

“It’s a convoluted process and difficult for the farmer; so far it’s not integrated well at policy level.

“It’s hard to get a soundbite for industry going forward with the amount of unknowns – we know the problem, we don’t actually have a plan.

“We don’t have the technology, we don’t have the political will in NZ climate policy.

“A target backed by policy is at least a start. We can see a lot of hot air but hopefully we develop a plan that will move forward on a level of optimism.

“But I think by 2030 we are already too late.”

GHG reduction solutions brewing Richard Rennie richard.rennie@globalhq.co.nz SEAWEEDS, synthesised methane inhibitors and “kowbucha” are all likely to provide a cocktail of solutions to dairying’s greenhouse gas (GHG) issues in the next decade.

Fonterra head of science Dr Jeremy Hill says farmers are likely to be offered a suite of solutions to lower their emissions, all of which the co-op is contributing to.

The pastoral sector is required to achieve a 10% reduction in GHG emissions by 2030, and a further 24-47% reduction by 2050.

“To hit that longer-term target of 24-47%, that will need quite major reductions to our systems. If we want to retain a leading position, it pays to have multiple means to achieve those reductions,” Hill said.

While there has been some wellproven reduction in sheep GHG emissions using genetics that is now being applied to cattle, the species represent an expensive step up for researchers.

“They are super expensive when you get into cows, requiring many animals and chambers/facilities to measure effectiveness,” he said.

Collectively the solutions appear to lend themselves well, but individually all still have a significant level of trialling and development to ensure they will

meet Fonterra’s four parameters.

“It has to be good for the planet and good for the farmer in that it is cost effective and practical, and good for the cow and good for the milk,” he said.

Hill says Fonterra’s approach in making these parameters the first principal requirements differed from a more research-based, solutions approach often adopted by researchers.

Vaccinations have long been touted as something of a silver bullet solution, but he says they remained challenging because they required methanogen bacteria to bind in the animal’s rumen, not in its bloodstream.

“You need to get antibodies expressed to such a level they can pass into the rumen. Achieving that consistently high level of antibodies, that will be a big breakthrough and will have global consequences for cattle,” he said.

Nations like India, which already have large-scale cattle vaccination programmes for assorted diseases, offer an appealing outlet for such technology.

Fonterra intended to give this technology a “big push” over the next five years, capitalising on the significant increase in global vaccine production capacity resulting from the pandemic.

Trials are now under way on the methane inhibitor Bovaer in conjunction with Dutch

company DSM. The compound has achieved 15-20% reductions overseas in ration-controlled dairy environments, but needs to be proven in NZ’s free-range pastoral systems.

Proving it suitable in a pastoral environment would also give a major green light to vast tracts of the global cattle trade also running stock pastorally.

Looking inwards, Fonterra is assessing its extensive library, comprising 50 years of dairy cultures used for cheese and yoghurt production that may be capable of being used as a GHG inoculum in cows.

A number of patents have already been sought for this and Hill says researchers were relatively confident the so-called “kowbucha” strains would be safe in milk and on cows, given that was where they had originated.

“But if you are going to modify rumens with this, you want to look at long-term results. We would require four seasons of production to study it,” he said.

Red seaweed is also being researched as a natural methane inhibitor.

When mixed at a rate of about 1% into cows’ diets it has been proven to reduce methane emissions. However, issues of ozone depletion, palatability, animal health and milk composition impact all

OPTIONS: Fonterra head scientist Dr Jeremy Hill says ultimately farmers will have a suite of GHG-reducing solutions to help achieve targets.

also have to be addressed.

The final tool Fonterra hopes to offer suppliers is a closely guarded “novel science” technology that Hill has previously said has huge potential but is still under development.

He did not expect farmer suppliers would be required to subscribe to any one particular solution when they were commercialised.

“You would instead just ensure they hit the target required. How they get there, that will be based on the technologies available,” he said.

It has to be good for the planet and good for the farmer in that it is cost effective and practical, and good for the cow and good for the milk.

Dr Jeremy Hill Fonterra

News

24 FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

Roundtable to weigh beef goals implement progress towards the goals.

The newly formed New Zealand Roundtable for Sustainable Beef THE Global Roundtable for (NZRSB) comprises farmers, Sustainable Beef (GRSB) has processors, customers, industry adopted goals that include and research organisations; a reduction in the net global the current chair is Whangara warming impact of beef by 30% Farms general manager Richard by 2030.

Scholefield.

Two further goals announced The GRSB says it acknowledged in late June under the headings of that beef industries in member land use and animal welfare are countries had a key role in less specific. mitigating climate change.

They are to ensure the beef The first goal is to reduce by value chain is a net positive 30% the net global warming contributor to nature and impact of each unit of beef by to provide cattle with an 2030, on a pathway to climate environment in which they can neutrality. thrive, through the increased “GRSB members will adoption of best practices. implement and incentivise The worldwide organisation climate-smart beef production, says its members will lead and processing and trade, while safeguarding and building upon the carbon stores in soil and landscapes,” GRSB executive director Ruaraidh Petre Building Your Farm and Family Futures said.

Presented by Family Business Central & Along with greenhouse gas Whanganui and Partners.

(GHG) emissions Workshop #4: Wednesday July 21, 1pm – 5pm

COLLABORATION: NZ Roundtable for Sustainable Beef chair Richard Scholefield urges all beef farmers to get involved.

Hugh Stringleman hugh.stringleman@globalhq.co.nz

Agrievents

How to have the Family Conversations

We have more to do on greenhouse gases and biodiversity and to consider how the GRSB 30% goal lines up with requirements from the Government.

Richard Scholefield NZ Roundtable reduction, the grasslands on which cattle are farmed have potential to sequester 54-216 million tonnes of carbon annually by 2030.

Petre says Roundtable members were committing to investing in research and development of climate-smart practices, tools and knowledge.

Investment had already been made in analysis of carbon sequestration and now members would look at how to manage and more effectively measure that process.

Under the second goal,

GRSB members would pursue practices to restore grazing lands, conserve forests, oppose illegal deforestation and increase native vegetation and biodiversity.

For the third goal, concerning animal welfare, GRSB members will encourage adoption of best practices in disease prevention, treatment measures, cattle handling and appropriate genetics.

Scholefield says an earlier publicised GRSB goal was to reduce premature cattle deaths below 10% and that NZ was already well below that level.

The NZRSB board would meet soon to discuss the new international goals and how they could apply to NZ. “For instance, deforestation is not an issue here, rather afforestation and its effects on our beef industry,” Scholefield said.

“We have more to do on greenhouse gases and biodiversity and to consider how the GRSB 30% goal lines up with requirements from the Government.”

Elected chair earlier this year, Scholefield is very enthusiastic

about the collaborative approach among the Roundtable stakeholders and encourages every beef farmer to read about its aims and objectives and get involved.

“We have representatives from all along the supply chain and they leave their agendas at the door,” he said.

He says next a beef sustainability and verification proof of concept trial involving Whangara and three other farms with 500 cattle in total will be expanded to cover 10,000 cattle.

The aim is to establish a sustainability framework and certification along the supply chain.

Land and Environment Plans were and are still central to Whangara’s policy development and decision-making, having evolved during eight years association with McDonald’s restaurants and its flagship farms programme.

“We haven’t finished but we now look back and see how far we have come and what positive changes have been made,” he said.

Dairying opportunity in Tasmania

regarding the Farm, the Business, the Family.

For more information go to: https://www.whanganuiandpartners.nz/

Hugh Stringleman hugh.stringleman@globalhq.co.nz

resources/building-your-farm-and-family-futures Wednesday 04/08/2021 – Friday 06/08/2021 The Horticulture Conference Wellness in all aspects of our lives – health including mental health, our relationships, work, and the environment in which we live and grow our food – is increasingly seen as a must, not a nice to have. The Horticulture Conference brings together People, Land and Innovation under the imperative of Growing Wellness.

Venue: Mystery Creek Events Centre 125 Mystery Creek Rd, Ohaupo Wednesday 10/11/2021 – Friday 12/11/2021 The New Zealand Agricultural Show 2021 The New Zealand Agricultural Show brings a touch of tradition to the city and celebrates all that is great about rural life.

Venue: Canterbury Agricultural Park 102 Curletts Rd, Hillmorton, Christchurch Show office for general enquiries: 03 343 3033

Should your event be listed here?

Phone 0800 85 25 80 or email adcopy@globalhq.co.nz

LK0107420©

Email: info@theshow.co.nz

COMPASS Agribusiness is seeking A$20 million from New Zealand and Australian wholesale investors to recapitalise dairy farming assets in central Tasmania.

It is forming Tasmanian Farming Trust with $36m of farmland assets, partly funded through debt and by capital from eligible new and existing investors.

The minimum thresholds are A$500,000 for approved Australian wholesale investors and NZ$750,000 for NZ investors.

Three irrigated farms are already part-owned and under management

by Compass and a fourth neighbouring farm in the Derwent Valley will be purchased by the trust so its present owner can become an investor.

In total the farms are running 2400 cows and producing about one million kilograms of milksolids annually, contracted to Fonterra Tasmania at a forecast milk price around $7/kg MS. In the information memorandum, Compass is projecting annual trust income of A$7m, expenditure of $5.36m and earnings after interest, tax, depreciation and amortisation of $1.53m.

Projected returns on equity are 8-11%

SIMILAR: Compass Agribusiness managing director Guy Blundell says Tasmanian dairy farming asset values are about 70-80% those of similar irrigated farms in NZ.

annually, plus anticipated capital growth of 5%.

Compass NZ managing director and founder Guy Blundell, of Arrowtown, says the company had $200m of assets under management in NZ and Australia.

It is now restructuring the ownership

of the Tasmanian farms, in which Compass has an existing 5% stake and making an investment offer to attract approximately A$9m of new capital.

The balance of $11m capital in the trust will come from existing investors.

Compass also intends borrowing $17.5m, using the four farms as security.

Blundell says Tasmanian dairy farming asset values are about 70-80% those of similar irrigated farms in NZ. Dairy farmland is around $28,000$29,000/ha and there is no requirement to buy dairy company shares.

The trust would own 1023ha of land in total across the four farms, containing 685ha of milking platform.

Land and water, including developments, will cost $29.5m to purchase, livestock $5.3m and plant and machinery $957,000.

Stamp duty will be $1.3m, legal and professional fees $150,000 and the establishment fee for Compass of $359,000, or 1%.

Compass also stands to earn a management fee of 1.5% and a performance fee of 20% of total returns over 8% annualised pre-tax return on equity at the end of the planned seven years life of the trust.

The offer will close at the end of the month.

News

FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

25

A2 Milk appoints new CMO A2 MILK is hardly out of the woods, with its stock still down 65% on the year, but news it has snagged a new chief marketing officer from Danone looks to have cheered investors.

The shares are up 3.1% to $7.23 after lifting 5.7% last Friday on news it had hired Edith Bailey away from the competition. She is slated to take up the position later this year.

It “looks like a good hire”, Fat Prophets head of research Greg Smith says, noting Bailey comes with the right experience from Danone and in the infant nutrition category in key markets for A2 – China, Australasia and South-East Asia.

Market-darling A2 Milk has fallen out of favour after delivering a series of profit warnings over the past year as covid-19 severely restricted its daigou or cross border trade into China.

The milk marketing firm now expects annual sales of $1.2 billion to $1.25b in the June year versus the $1.8b to $1.9b it forecast in September last year.

It has also said an immediate recovery is not expected but it is heavily investing in the brand as part of its approach to addressing the situation.

KNOWLEDGE: Newly appointed Edith Bailey comes from Danone and has experience in the infant nutrition category in key markets for A2 – China, Australasia and South-East Asia.

The company is due to announce its full-year result at the end of August.

Jarden director of equity research Adrian Allbon says a key factor in the result will be any

change in the level A2 Milk invests in marketing to support its brand and replace its former daigou activity.

Bailey’s most recent role was consumer marketing director for

Australia and NZ, with Danone Nutricia’s Specialised Nutrition division.

According to A2 Milk, she was responsible for leading the development of the overall portfolio strategy for ANZ Specialised Nutrition, including the acceleration of the innovation pipeline and capability.

“A step in the right direction and A2 will need to keep innovating to improve its position in a market where competition is rising,” Smith said.

He says while it’s not “a silver bullet by any means” it’s been well received by the market and particularly those investors that have been ‘fishing’ around the lows in recent weeks.

Allbon says the appointment looks good on paper in terms of supplementing industry knowledge and given the company still needs to replace outgoing chief executive for Asia Pacific Peter Nathan in time for his departure.

NZX senior dairy analyst Amy Castleton says Bailey’s extensive experience “suggests she’ll be a good fit for the company and help improve their prospects”.

She “seems like she could help turn the company around from where they currently are”.

Harbour Asset Management director and senior research analyst Øyvinn Rimer also said her background looks highly relevant for the role at A2 Milk.

A step in the right direction and A2 will need to keep innovating to improve its position in a market where competition is rising.

Greg Smith Fat Prophets The company may have also scored some points when it said the Overseas Investment Office has given it the green light to buy a 75% interest in Mataura Valley Milk, located in Southland.

That move gives it the opportunity to participate in nutritional products manufacturing, provides supplier and geographic diversification, and strengthens its relationship with key partners in China.

– Business Desk

Honest Conversations.

Join us to discuss the issues that matter most to you in this country.

Visit act.org.nz/events for more information

NORTH ISLAND TOUR DATES Wednesday 14th July

Thursday 15th July

Monday 19th July Tuesday 20th July Wednesday 21st July Thursday 22nd July

Friday 23rd July Saturday 24th July

Tuesday 27th July Wednesday 28th July Thursday 29th July Thursday 5th August Friday 6th August Authorised by David Seymour, ACT Party Leader, Parliament Buildings, Wellington

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News

26 FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

Peers recognise industry achievers A COLLABORATION that will reduce emissions and accelerate green hydrogen infrastructure, a company that has taken New Zealand honey to the world and an initiative to boost farmer mental wellbeing by taking them surfing have been recognised by their primary industry peers.

Food and fibre sector achievers have been recognised at the 2021 Primary Industries New Zealand Awards (PINZ), with seven winners named from 65 nominations.

A favourite with many of the more than 500 farmers, growers, foresters and fishers present was the winner of the Team award.

Steven Thompson from Bayley’s Rural Real Estate started helping farmers get out on the ocean waves as a way to leave the stress of their busy roles behind them for a few hours. Surfing for Farmers now boasts a team of 50 volunteers and has spread to 16 regions, with nearly 3000 farmers taking part.

“For most farmers it is their first time on a surfboard. Steven says when farmers come out of the water it’s like a reset for them,” judges noted.

The Innovation and Collaboration award went to Ballance Agri Nutrients and Hiringa Energy. Their $65 million investment will see construction of four wind turbines nearly as tall as Auckland’s Sky Tower.

This wind generation together with hydrogen energy will replace use of natural gas to produce urea at Ballance’s Kapuni site.

As judges noted, this will not only accelerate implementation of green hydrogen infrastructure

STANDOUT: Malcolm Bailey was recognised for his leadership, winning the Outstanding Contribution to the Primary Industries award.

From having hives in dense mānuka serviced by helicopter, to world class processing for a quality-driven, highly discerning marketplace, the company has taken a natural NZ product to international recognition and acclaim.

PINZ judges in NZ but use of low-emission fertiliser will help build on NZ’s reputation for producing lowemissions food.

It was a sweet night for the True Honey Company, named winner

of the Primary Industries Producer award. Judges said True Honey has taken the highest grade NZ mānuka honey to the world’s most exclusive markets.

“From having hives in dense mānuka serviced by helicopter, to world class processing for a quality-driven, highly discerning marketplace, the company has taken a natural NZ product to international recognition and acclaim,” the judges said.

Malcolm Bailey, Frances Clement and Emma Bose were all recognised for their leadership.

Bailey, for Outstanding Contribution to the Primary Industries, was described by judges as “the complete package as a primary industry leader”.

The former Federated Farmers president has also served on the Fonterra Shareholders’ Council and on the board of Fonterra. He

NEW TALENT: Winner of the Emerging Leaders Award was Horticulture NZ’s people capability manager Emma Bose.

was a special trade envoy over a period of international trade disruption and currently chairs the Red Meat Profit Partnership and the NZ Dairy Companies Association.

Clement, NZ Pork’s policy and issues manager, took out the Primary Industries Champion award, to recognise a genuine “good bugger” who has championed their rural community and their industry.

“Frances stood out for her 25-year commitment to the NZ pork industry, making significant improvements across the board for our country’s pig farmers and, as a result, NZ in general,” the judges said.

Boase, Horticulture NZ’s people capability manager, won the Emerging Leaders award, particularly for her efforts attracting new talent to the sector.

The Science and Research

Celebrating arable farmers Annette Scott annette.scott@globalhq.co.nz METHVEN cropping farmer David Grant has been crowned the 2021 Arable Farmer of the Year.

Grant was recognised for his commitment to the industry at the Federated Farmers arable industry awards in Christchurch.

Feds arable chair Colin Hurst says his work with the Foundation for Arable Research (FAR) and in innovation and information sharing made him an outstanding candidate for this year’s award.

The Arable Farmer of the Year Award recognises a member who excels at arable farming, acknowledging the standard of excellence they set for the industry.

“Success in the arable industry typically flies under the radar in New Zealand, that’s why Federated Farmers created this award to acknowledge a farmer who balances production and profit requirements against environmental, sustainability and other compliance requirements,” Hurst said.

Grant crops a 750ha property at Methven in a self-described “traditional system”, taking in

herbage crops, cereals and seed crops.

The operation also winters 800 cows and up to 3000 finishing lambs.

Grant has served for 13 years as a board member for FAR NZ and FAR Australia.

He is innovative in developing and using new technology and willingly shares knowledge with other farmers, conducting trials on his property, including some complex multi-year trials.

Fellow Mid Canterbury grower Graeme Bassett won the Biosecurity Farmer of the Year, recognising a member who is focused on protecting their property from the risks posed by unwanted pests, weeds or diseases, and has done biosecurity related advocacy work on behalf of all growers.

Bassett was one of the first farmers to put procedures and protocols in place, including processes for contractors coming onto farms with seed contamination being a key priority.

Grain Grower of the Year went to Southlanders Morgan and Karen Horrell.

The Horrells farm at

Wendonside in Southland and grow wheat, barley, milling oats, peas, ryegrass seed and forage brassicas.

They achieve constantly strong crop yields across the board using a no-till farming system.

South Otago growers Craig and Anna Whiteside won the Seed Grower of the Year award.

The Whitsides crop a large-scale operation, including cereals, peas, vegetable and herbage seeds, and use 5% of the farm for their own trials of new crops.

The lone North Island winner was Waikato grower Paul Hunter who took out the Maize Grower of the Year award, recognising a grower with outstanding maize silage or grain yields balancing production and profit requirements against environmental, sustainability and other compliance requirements.

In his 25 years of crop farming, Hunter has constantly been involved and supportive of industry research and development.

He is a member of a group of northern North Island growers who have embraced trying new concepts and he has made his own

award, sponsored by Yashili, went to Professor Jon Hickford, Dr Huitong Zhou and Freeman Fang. The judges said they were most impressed with the holistic approach of the Lincoln University team to bring a highly professional genetic approach to the business of farming.

“Their genetic programme was impressive, as was their relationship with farmers. This guaranteed a practical result from a highly specialised scientific process,” they said.

In the Innovation and Collaboration category, judges gave special recognition for outstanding cultural collaboration to the Tōtara Industry Pilot – Scion, a two-year feasibility project to test the business case for a new regional industry based on the sustainable management of regenerating forests of Tōtara in Northland.

WINNER: Methven cropping farmer David Grant is presented with the Arable Farmer of the Year award by Feds chief executive Terry Copeland.

Photo: Annette Scott

successful three-year conversion from conventional to strip till.

The Champion Wheat Grower for 2021 award went to Craig Muckle who farms at Dorie in Mid Canterbury.

Muckle also won the Premium Milling Wheat award and the United Wheatgrowers (UWG) Bayer Wheat Grower of the Year award.

Judge Richard Grigor said entries in this year’s UWG awards were exceptional and it speaks highly of the industry to be this spoiled for choice to find an award winner.

Bill and Nick Davey of Springdale Farming won the Mauri Mills milling wheat section, while Brian Leadley of Ashburton won the RuralCo Gristing Wheat award.

The Viterra feed wheat section was won by South Canterbury growers Warren and Andrew Darling, with fellow South

Canterbury growers Mike and Lynn Porter taking out the Farmers Mill biscuit wheat category.

The inaugural Agronomist of the Year award went to Kerry Thomas of Luisetti Seeds.

Sponsored by the NZ Grain and Seed Trade Association, association grains and pulses chair Ed Luisetti says the award recognises an agronomist who has an endless knowledge of crop production and goes above and beyond to make sure the best possible crop is produced by growers.

“The agronomist becomes invested, treating each crop as if it were their own and both parties gain enormous satisfaction when the crop performs well and with ever-increasing environmental parameters to be met, the agronomist-farmer relationship is now more important than ever,” Luisetti said.

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News

28 FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

Farm business manager wins award Annette Scott annette.scott@globalhq.co.nz TAUPŌ farm business manager James van Bohemen was awarded the 2021 Rabobank Business Management prize for up-andcoming farmers.

Selected from a group of New Zealand’s most progressive young farmer graduates of the 2019 Rabobank Farm Managers Programme (FMP), Van Bohemen is recognised for his project that demonstrates how he effectively utilised the lessons from the programme in his role as the farm business manager at Pāmu’s Rangitaiki Station, near Taupō.

I hadn’t really aspired to the farm business manager position as I’d envisaged my future would be in a more hands-on farming role.

James van Bohemen Rangitaiki Station Designed for emerging farmers, the FMP focuses on the development of business management skills, with an emphasis on business planning, leadership, people management and self-awareness.

The 8300ha Rangitaiki Station employs 24 staff across a range of enterprises, including sheep, beef and deer breeding and finishing units, and has an intensive bull beef system.

Van Bohemen’s management project included two key focus

areas: people development and business profitability.

“The people component was centered around attracting good people to the station and then working with them to expand their skillsets,” Van Bohemen said.

“As part of this, individual staff development plans have now been developed for each of our staff and this has allowed me to gain a much better understanding of the areas where our employees want to develop their skills and where they see their careers heading.

“In addition, we’ve done some work together as a group to develop the culture of the organisation.

“We joined a local Red Meat Profit Partnership (RMPP) Action Network group, which helps keep team members up-to-date on key industry developments, as well as providing valuable networking opportunities.”

The business focus of the project initially involved analysing the station’s operations and identifying opportunities to make it more profitable.

“Following this process, we made the decision to conduct a farm policy review on our sheep, beef and deer farm systems, which I was given the opportunity to lead,” he said.

“This led us to explore a number of different farming policies focusing on creating a simplified, repeatable farm system that could deliver consistent production and profit.

Van Bohemen says the FMP was a phenomenal course which had changed his mind set on his own career aspirations.

“When I undertook the course in 2019, I was the farm operations manager at Rangitaiki and I hadn’t really aspired to the farm

RECOGNISED: James van Bohemen receives the Rabobank business management award and $2000 cash prize from Rabobank NZ chief executive Todd Charteris at the graduation ceremony in Christchurch.

business manager position as I’d envisaged my future would be in a more hands-on farming role,” he said.

“The programme changed my thinking on this, as it really sparked my interest in some of the softer skills surrounding farm management, like working on the business and working with people, which are so crucial in running a large-scale farming operation like Rangitaiki.

Since then, Van Bohemen moved into the farm business manager role and says some of the lessons from the course have proven invaluable.

“In particular, I found the sessions on people management and succession planning really useful,” he said.

“I’d previously viewed succession planning as something that was only really important in the context of family farming operations, however, the session on this topic opened my eyes to the importance of succession planning for all organisations.”

Rabobank South Island regional manager and one of the judges for the award Michael Dunn says the management projects were undertaken so that participants could put into practice the tools, theories and ideas from the programme and utilise these to make improvements in their own operation.

“James’ management project clearly illustrated what he’d learnt on the programme and how he’d taken the learnings to effect

positive change at Rangitaiki,” Dunn said.

“His presentation highlighted his willingness to challenge the status quo and, by looking at new opportunities and what could be improved, he’s been able to move the dial within the business.”

The Rabobank Farm Managers Programme has been run since 2006 for young farmers from across NZ and Australia.

Previous programmes have seen farmers from both sides of the Tasman joining together on the same course but for the first time, separate programmes were run in both NZ and Australia this year.

The NZ programme was attended by 32 Kiwi farmers representing the sheep and beef, deer, dairy and grains sectors.

Government opens up flood recovery funds Annette Scott annette.scott@globalhq.co.nz FARMERS affected by the Canterbury floods will be able to apply for a chunk of the Government’s $4 million flood recovery fund.

Applications opened on July 9 and the Ministry for Primary Industries (MPI) is encouraging all farmers and growers affected by the May 30 and 31 flooding in Canterbury to apply for support from the new $4m fund.

MPI deputy director general of agriculture and investment services Karen Adair says the fund has been set up to support the region’s recovery from the one-in200-year rainfall event.

“This financial support will help flood-affected farmers and growers across Canterbury to get back on their feet as quickly as possible,” Adair said.

“The clean-up task ahead of primary producers is massive and some are facing significant costs not covered by insurance.”

About 100 of the worst-affected farmers have already been offered grants from the initial $350,000 fund established shortly after the flood.

If those farmers require extra support, Adair says they are encouraged to submit a new application to the now larger fund.

MPI has been working with Federated Farmers, DairyNZ, Beef + Lamb New Zealand, Deer Industry NZ and local councils to determine how the financial support can have the greatest impact.

The grants are targeted at assisting farmers to clear flood debris, enabling pasture and fodder crops to be resown.

“Our highest priority is the clean-up of debris such as shingle,

boulders, trees and silt, to return paddocks to a productive state,” she said.

Applications can be made retrospectively for clean-up work already undertaken.

The size and allocation of grants will be determined once all the applications have been received.

Only farmers with 51% of family income coming from the farm are eligible to apply.

And, only freehold land and land covered by the Crown Pastoral Land Act 1998 is eligible.

Grant applications will be assessed by an independent panel, made up of people who sector groups have helped to select.

The assessment panel, while yet to be confirmed, will consist of people with a strong understanding of farming businesses and rural communities in Canterbury.

“They (panel) will confirm that

UNDER WAY: A $4 million flood recovery fund is aimed at clearing shingle, boulders, trees and silt, to return paddocks, such as this on Darryl Butterick’s farm, to a productive state as soon as possible.

Photo: Annette Scott

grants meet the eligibility criteria and that the allocation process is fair, consistent and transparent,” she said.

“MPI will contribute up to half of the clean-up cost for uninsurable works.”

The panel will be given some discretion to consider exceptional hardship and psychosocial circumstances.

On completion of the fund, a

random selection of applicants will be audited.

Applications for the fund close on July 30.

MORE:

A full list of criteria, an application form and details of how to apply will be available on MPI’s website: https://www.mpi.govt.nz/fundingrural-support/adverse-events/dealingwith-floods/

AginED Ag ED

#

FOR E FUTURIA G R R S! U PR EN E

Volume 64 I July 12, 2021 I email: agined@globalHQ.co.nz I w w w.farmersweekly.co.nz This AgriHQ graph shows the North Island lamb slaughter price.

STRETCH YOURSELF: 1

Southern Paprika has four complexes in Warkworth spanning around 26ha of covered production. How many plants can be growing at any one time there?

2 The business originally started in 1984 on land leased around Matakana growing melons and field capsicums for the domestic market. Why did they progress to undercover production?

3 When are seedlings planted? When does harvesting begin and how long does it continue for?

Have a go: 1

Go to www.farmersweekly.co.nz

2 Find and watch the OnFarmStory of Southern Paprika (SPL) “We need to feed ourselves” and read the article “ Stringing bells in glasshouses”.

3 Where in NZ is Southern Paprika located ?

4 What do they produce?

4 All plants are hydroponically grown using fertigation, what is this? They also use CO2 in their growth systems, why do they do this? What does it do to/for the plants?

5 The company also takes steps to create business sustainability through their practices. Can you describe five things that they do to increase their sustainability?

6 Like a lot of businesses these days SPA has started looking at diversifications. How are they doing this?

Have a go: 1

What is the latest lamb slaughter price?

2 How does this compare to year ago levels and the five-year average?

3 How much has the lamb slaughter price lifted in the past month?

4 When has the lamb slaughter price been at the highest level on this graph?

Jake Jarman, 24, was a first-time competitor and beat six other contestants to take out the grand final in Christchurch. He also won the Agribusiness, Agri Sports and Agri Knowledge awards.

2021

Jake is an Inglewood Young Farmers Club member and has been the fifth generation to work on his family dairy farm. He also worked as a farm systems research graduate with Dairy Trust Taranaki. Joseph Watts, the Tikikino Young Farmers Club member took out second place, with Whangarei Young Farmer Calvin Ball in third.

FARMING SYSTEMS / FARMERS MANAGE COMPLEX FARM SYSTEMS What is a system?

A system is a synthesis of multiple interconnected components and the qualities of the whole system emerges because of these interconnections. A sheep and beef farm is a system that can be depicted in simple terms as a synthesis of animals, pasture, soil and water. Sheep and cattle A simple depiction performance and wellbeing of a sheep and beef farm system. depends on the amount and quality of pasture grown and hence eaten. These aspects of pasture are likewise influenced by the timing and grazing pressure of these animals. This two-way connection is depicted in the diagram as a double arrow.

Pasture and animals and their interconnections depend also on soil and water and the interconnections between these components of the farm system.

Can you describe how soil and water influence grazing animals and pasture on a farm?

If the animals were dairy cows how would the connections between components be different?

What would be components of an apple orchard system?

Sheep and cattle source essential trace elements from eating pasture but also DID YOU source some (Selenium and Iodine) from KNOW? consuming small amounts of soil directly off pasture. Soil structure and fertility influences how well pastures grow. Over grazing in wet conditions can damage soil structure and ultimately limit pasture production and animal performance. Pasture is itself a system, comprising multiple interconnected plant species. These include grasses, clovers, thistles, and pasture herbs like chicory and plantain.

Want to learn more about New Zealand farm and horticultural systems and their management? Check out the Massey University’s Bachelor of Agricultural Science at Massey University.

5 When has the lamb slaughter price been at the lowest level on this graph?

STRETCH YOURSELF: 1

In what months would we expect lamb values to peak if following trends of other years?

2 Processor contracts have been a hot topic recently with some very high value spring lamb contracts on offer. A contract is a fixed price offered by a processor which usually involves some conditions such as a fixed timeframe and having a certain number of lambs. What would be some pros and cons of a contract compared to the ‘spot market’ for a farmer?

3 Confidence in the market has pushed store lamb values to very high levels. At a recent Stortford Lodge sale the average lamb value was $165, $5.00/kg. What is the percentage difference between the same time a year ago when the average was $117, $3.72/kg and this?

If you imagine New Zealand's sheep meat production as a plate of 10 meatballs, Kiwi's would only get to eat half of a meatball!

DID YOU KNOW?

Credit: RNZ https://www.rnz.co.nz/news/ whoseatingnewzealand/446357/who-s-eating-new-zealand

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FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

Special report

Risks of an aging population Richard Rennie richard.rennie@globalhq.co.nz A LEADING demographer admits she finds the latest headlines on labour shortages exasperating, having spent over a decade highlighting the issue to local bodies, industry groups and employers throughout New Zealand.

Former head of demography at University of Waikato and professor of demography at Massey University Dr Natalie Jackson says she spent much of the decade from 2010 to 2020 trying to explain the labour market implications of population aging to about 200 conference audiences in all fields.

“I admit I am exasperated at the lack of awareness and it seems many have found it difficult to connect the dots on this one,” Jackson said.

“People would invariably tell me how interesting it was after I had presented. But at the end of the day the policies seem to be moving in the other direction in regions, based instead on growth that is just not going to happen.

The shortages of labour are going to be systemic.”

Massey professor Paul Spoonley says baby boomers, the first who

arrived in 2010, are increasingly going to dominate many regional and rural communities for the next 20 years.

“And at the beginning of life, the number of births is dropping, in relation to the size of the population. It is now at 1.6 per adult female,” Spoonley said.

Replacement rate is 2.1.

In absolute terms, NZ is also having 2000 fewer births year-onyear and younger age groups will only decline in future.

“These entry and exit figures become increasingly important and begin to change the labour and talent supply available to employers and sectors,” he said.

Areas looking at horticulture in particular to grow the local economy are particularly vulnerable to this aging population.

Spoonley cites Nelson, where numbers of under 14-year-olds drop 11% in the next 10 years, while those aged over 65 will soar by 16%, with 8300 more 65-pluses than under-14s.

In Hawke’s Bay under-14s drop by 17%, while those over 65 will grow 7%. The Bay will have a staggering 18,700 more 65-pluses than under-14s by 2033.

“Rather than having a large

At the end of the day the policies seem to be moving in the other direction in regions, based instead on growth that is just not going to happen.

The shortages of labour are going to be systemic.

Dr Natalie Jackson Demographer

RISE: Professor Paul Spoonley says rather than having a large youthful base, many of the regions and communities will become senior-dominant.

youthful base, many of the regions and communities will become olddominant,” he said.

“What this means is that the older age groups will constitute a more important labour source.

“A quarter of all over 65s already continue to be in paid work, but it also indicates the size of the labour market exit numbers.

They will leave the workforce, leaving a large gap, especially given the size of this generation.”

He points to the other end of the age spectrum where there will be fewer under-14s and therefore fewer to enter the local workforce.

“The size of the entry groups will continue to decline and have significant implications for labour supply,” he said.

“What is staggering is how many more older people there will be compared to the very young in our communities.”

Govt to sector: hire more kiwis Neal Wallace neal.wallace@globalhq.co.nz EMPLOYERS are being told to stop relying on foreign labour.

Economic and Regional Development Minister Stuart Nash recently announced an immigration policy reset, sending

Primary sector labour shortfalls Regions are expected to lose 15% of their working age population by 2033.

What’s currently needed: • 2000 to 4000 dairy workers • 400 rural contractors each year • 170 vets • 250 forestry workers • Horticulture: 5000 in horticulture • 2500 in the meat industry • 1000-plus in viticulture • 5000 additional staff needed by the kiwifruit sector by 2024.

Source: DairyNZ, Meat Industry Assn, HortNZ, Prof Paul Spoonley, Massey University.

a message to employers who have relied on immigration labour to reassess their business without access to foreign workers.

Nash says that reliance means businesses have been able to suppress wages, avoid investing capital in productivity improvements and employing and upskilling New Zealanders into work.

Resetting immigration is designed to ensure incentives are balanced while supporting postcovid-19 recovery and growth.

“When our borders fully open again we can’t afford to simply turn on the tap to the previous immigration settings,” Nash said in a speech announcing the policy.

“That path is a continuation of pressures on our infrastructure, like transport, accommodation and downward pressure on wages.

“Since the borders closed, we’ve seen a reversal in the horticulture sector for example, where there’s been a lift in wages to bring in local workers.”

Nash says the reset will also ease pressure on infrastructure,

…we can’t afford to simply turn on the tap to the previous immigration settings.

Stuart Nash Economic and Regional Development Minister

with migrants responsible for 30% of NZ’s population growth since the early 1990s.

In the past year, 17,000 skilled workers and their families were given border exceptions and in the next 10 months thousands of skilled and critical workers will be given access in managed isolation centres, including 2400 Recognised Seasonal Employer (RSE) workers.

Nash says temporary work visa holders make up almost 5% of NZ’s labour force, the highest share of any OECD country.

Some sectors have been creative in addressing labour

GOAL: Resetting immigration is designed to ensure incentives are balanced while supporting post-covid-19 recovery and growth.

shortages by adjusting wages and working conditions and he singled out NZ Apples and Pears for launching a new “micro-credential”, offering skills development in picking and packing.

“And, as part of the agreement to grant over 4000 experienced seasonal workers border exceptions to come here from Pacific countries, horticulture and wine sector employers are paying their workers the living wage,” he said.

He urged sectors to keep looking for creative and innovative ways to attract local talent and to explore alternative production systems.

“In some cases, I suspect low-skilled jobs will make way for different, higher-valued jobs as industries invest in automation and new delivery models,” he said.

“Let me be clear, there will still be the need for migrant workers where there are no Kiwis to fill jobs.”

Special report

FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

Labour shortage concerns grow Neal Wallace neal.wallace@globalhq.co.nz THEY may have had one of their highest ever milk payouts but dairy farmers are anxious about the human toll of the looming calving season, as the industry grapples with an estimated shortage of 4000 workers.

Federated Farmers board member Chris Lewis says the industry’s reliance on immigrant workers will remain, at least until the Government changes to vocational training is completed, which could be several years.

He believes the Government’s recently announced plans to curb migrant workers is shortsighted and will hinder the country’s ability to utilise high international product prices and demand to repay debt, which is growing at over $80 million a day.

The Government has allowed access for 150 foreign dairy managers and 50 farm assistants, but that is well short of what the sector says it needs.

Lewis is hopeful economic necessity will force the Government to change its position as has happened in Australia, where the primary sector has been issued 10,000 visas for foreign workers.

DairyNZ’s manager of responsible dairy Jenny Cameron says each year the dairy sector needs about 5600 new staff, about 14% of the 40,000 strong workforce, to replace those leaving the sector but recruits just 3000 New Zealanders, with the balance migrants.

“The sector’s focus is always to recruit NZers first and all job vacancies must be advertised in NZ. However, pre-covid if these jobs were unfilled, then employers could look to recruit migrant workers,” Cameron said.

“We are aware that a labour shortage in the dairy sector existed long before the pandemic, but we are currently more short-staffed due to New Zealand’s border restrictions.”

The proportion of migrants needed by the industry reflects the country’s low unemployment rate.

Cameron says dairy workforce turnover is comparable to other sectors, including sheep and beef and forestry (both 16%) and carpentry (14%).

“This highlights the work the sector is focused on doing regarding staff retention, by striving to offer competitive packages and great workplaces where staff can thrive,” she said.

A survey of farmers showed they are making improvements to on-farm conditions to help retain and attract staff, she says.

“The responses showed that 87% of farmers have made improvements to employment conditions in the past 12 months, with 65% of farmers having increased salaries and wages,” she said.

DairyNZ’s GoDairy recruitment campaign attracted 575 people, of which 72 graduated and 35 were employed.

Beef + Lamb NZ chief insight officer Jeremy Baker estimates about 2500 workers shift sheep and beef farms or move into the sector each year, of which about half shift from other sectors.

They tend to be older and more settled, but surveys show farmers still find it a challenge to attract the right people.

Baker says B+LNZ investment in recruitment and career promotion tends to be focused at farm level as opposed to generic advertising.

That includes launching an employment hub that provides farmers with resources on recruitment.

31

HELP WANTED: The impending calving season has many farmers concerned about the ongoing labour shortages, with many saying the Government allowing 200 dairy workers to enter the country is simply not enough.

We are aware that a labour shortage in the dairy sector existed long before the pandemic, but we are currently more shortstaffed due to New Zealand’s border restrictions.

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Special report

FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

Hort pinned by labour crisis Richard Rennie richard.rennie@globalhq.co.nz THE kiwifruit industry has pulled on many levers to try and boost employment options for locals as traditional RSE worker and backpacker sources dried up over the past two seasons.

Typically, overseas workers would form almost 50% of the industry’s 20,000-plus seasonal labour force. But last year RSE kiwifruit workers were sliced back by half to only 2000, as the country also emptied of backpackers heading home under the pandemic shadow.

Over the past three years, NZ Kiwifruit Growers Incorporated (NZKGI)’s Labour Attraction campaign has managed to increase the local labour supply by 3500 staff.

Boosted by support from MPI and the Ministry of Social Development, the sector has invested $100,000, its single largest yearly expense, to get those staff and lifted its portion of locals employed to almost 60% of labour supply.

Much has been spent on orientation sessions for potential staff and promotion, with the body’s KiwifruitJobsNZ providing an efficient social media platform to promote vacancies.

The campaign also included the sector boosting the minimum wage paid to the living wage rate ($22.75 an hour) and providing more flexible working hours to accommodate single parents and retirees. It was the first horticultural sector to

WORRYING: NZKGI chief executive Colin Bond admits there is a sense of panic about where additional workers are going to come from.

make the move and has been quickly followed by most other employers.

However, the coming years have newly appointed NZKGI chief executive Colin Bond admitting there is a sense of panic about where additional workers are going to come from.

Demand surge for staff is significant.

As a sector it will require 28,000 seasonal workers for harvest by 2026, up 5000 from this season.

He admits it has been only thanks to an extraordinary level of cooperation in the industry that growers and packhouses got through this season.

“The volume of crop is coming.

We will be in the very real

situation of having even more demand for staff, and even less supply. It is already too late for winter pruning this year,” Bond said.

The sector’s record 180 million trays this year is likely to be up by another 10 million trays next year and again each of the following two years, as SunGold licenced orchards start to hit their production peaks.

He says NZKGI is advocating strongly for increased RSE access for the 2022 season and beyond, with increased quarantine capacity specifically for migrant labour.

Like most in the sector, he would also like to see a clearer outline of longer-term government policy on RSE numbers.

Outgoing chief executive of Horticulture NZ Mike Chapman says the horticultural sector is pushing to get 14,400 RSE workers for next year.

“If we could vaccinate Pacific Island workers we think we can get to 14,400,” Chapman said.

“Then, the conversation is: ‘is 14,400 enough going forward from there?’”

But he also challenges the concept of the RSE cap and is advocating for it to be scrapped.

“And then we could go employer by employer, identifying what their engagement plans are for New Zealanders and then fill with RSE workers and working holiday staff in a more logical and planned way. Why inhibit economic growth and potential by having an artificial cap?” he asked.

“We seem to lurch from one

season to the next in numbers.”

The apple industry provides the most telling metric about the impact of the labour shortage this season.

The sector was forced to revise estimated losses after the Marlborough storms at Christmas, but that estimate doubled as labour supply shortages hit home.

The volume of crop is coming.

We will be in the very real situation of having even more demand for staff and even less supply.

Colin Bond NZKGI

After the storms, estimates were that the year’s crop would be down 7%, or 750,000, cartons.

But in March this was doubled to 1.5 million cartons valued at almost $100 million, with the additional amount attributable to a lack of labour compelling some orchardists to leave fruit hanging.

NZ Apples and Pears business development manager Gary Jones is concerned how the Productivity Commission has viewed RSE workers as low-paid and low-value migrant workers.

The commission has recommended a reduction in large inflows of migrant staff to encourage the horticultural

sector to transition into greater mechanisation and employment of locals.

The commission received an NZ Institute of Economic Research report titled Picking Cherries earlier this year, which stated there was no proof a large influx of short-term migration to fill labour gaps contributed to increasing NZ’s productivity.

But Jones says the report’s findings were challenged by pipfruit growers.

“Our permanent workforce is far greater, with one RSE full-time equivalent for two New Zealand full-time equivalents. It makes no sense to analyse the need through a simple head count,” Jones said.

The report also suggested some displacement of local workers

by RSE staff occurs, particularly young beneficiaries.

But Jones disputed this and said often those out of work were not in the areas where work was available and relocating them was in itself problematic.

“Putting young, single and often male workers together, you need to be very careful how you move such staff to a new area – and we have had experience with this,” he said.

“The Government is being superficial in its views on redeploying local labour and the value of RSE workers.”

In the meantime, the horticultural sector is nervously awaiting the Government’s decisions about long-term immigration plans and where seasonal workers will sit within that.

Processors lack skilled staff Neal Wallace neal.wallace@globalhq.co.nz MEAT processors will have to forgo further processing cuts due to a lack of skilled labour following Government changes to immigration rules, industry leaders warn.

Meat Industry Association (MIA) chief executive Sirma Karapeeva says the industry is already short about 2500 people, including halal slaughtermen, skilled boners and butchers who have previously been recruited from overseas.

The staffing issue meant plants could not run at full capacity last season.

“What is new now is that it’s been made worse because of covid-19 and the borders being shut, meaning we can’t supplement the workforce with skilled migrant workers as we have previously been able to do,” Karapeeva said.

A government reset of

immigration laws coincides with the industry needing 250 halal slaughtermen alone.

She says there are about 100 New Zealand residents or migrants here on visas who qualify to do the work.

“It is a $3 billion value-added industry and we have no other way of capturing that value,” she said.

The industry cannot employ just anyone to perform that role and this year at the prompting of the Labour Party’s Wigram MP Megan Woods, the meat industry held a recruitment drive among the Christchurch muslim community, who Woods says some of whom were looking for work.

They did not get any takers.

“The industry can train people to do physical work but we cannot do that for religious affiliation,” she said.

Karapeeva says the recent tightening of immigration rules will mean more meat cuts will be exported in a primary or unprocessed form and less edible

offal and other products will be recovered.

The lowest wages paid by the industry are well above the minimum wage, she says, but most jobs were in regional areas, which did not suit everyone.

The mismatch between where the labour pool exists in cities such as Auckland and vacancies in regional NZ, is not easily resolved.

“It’s not as simple as making a job available and people will come,” she said.

Government officials have said the industry needs to adopt more technology, but Karapeeva says some meat processing jobs will always be labour intensive, new technology takes time to develop and has to take account of variability among animal carcases.

“We have made progress but the next wave of automation is a while away,” she said.

To assist with recruitment, the association is launching a recruitment website to promote the many and varied roles offered

NOT CUTTING IT: Covid-19 border restrictions have meant the meat sector can’t supplement the workforce with skilled migrant workers as it has previously been able to do.

by the industry, but the reliance on foreign workers will remain.

She says it is unlikely the industry will be able to recruit enough people locally, so is continuing to lobby the

Government to access those with specialist skills from overseas, an agreement the industry has previously had with the Government prior to the covid-19 pandemic.

Special report

FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

33

MPI helps boost job placements Neal Wallace neal.wallace@globalhq.co.nz MORE than 5000 New Zealanders have found work in food and fibre sector jobs in the past year through the Ministry for Primary Industry’s (MPI) Primary Sector Workforce programme.

MPI director of investment skills and performance Cheyne Gillooly says $1.7 million has been spent on the Opportunity Grows Here website and campaign, an initiative launched last year, which has helped direct 5249 people into sector jobs.

Gillooly could not say if all those recruited were new to the sector, but discussions with industry indicates most are.

Included in the programme are familiarisation and basic skills courses, including partnerships with training centres Telford in Balclutha and Taratahi in the Wairarapa, which have attracted 706 people, of which 184 have moved into jobs.

It has also supported sectorrun taster courses that provide experience in different areas of the food and fibre sector, such as winter pruning courses run by NZ Kiwifruit Growers.

“Our Fit for a Better World – Accelerating our Economic Potential Roadmap launched

last year includes a target of employing 10,000 more New Zealanders in the food and fibres sector over the next four years,” Gillooly said.

“Good progress is being made.”

He says MPI is partnering with the Mount Albert Grammar School Farm’s Landed programme in Auckland, which immerses urban people into the food and fibre sector.

“A key aim is to demonstrate that they have transferable skills and that they can build long and rewarding careers in the sector,” he said.

In addition, Gillooly says a regional workforce skills liaison service has been established to support redeployment into sector jobs and a pan-sector working group is developing a skills and employment dataset to help with planning and implementation of future employment needs.

The core function of Primary ITO is to work with people already employed in the primary industries, but it does receive Trades Academy funding to provide a taster of jobs for young people.

A spokesperson says this allows exposure to the sector for secondary school students considering a career; in 2020 it

Wine region needs help Neal Wallace neal.wallace@globalhq.co.nz THE country’s largest wineproducing region is short of at least 1000 pruners this winter.

Wine Marlborough manager Marcus Pickens says in a normal year they require 3000 pruners but this year due to restrictions on Recognised Seasonal Employer (RSE) numbers, they are at least 1000 short.

Pickens says mechanisation dominates grape harvesting in Marlborough, but experience and the need for visual assessment of canes for pruning, needs the human eye and will remain labour intensive.

Most pruners are predominantly RSE workers and due to covid-19 restrictions, growers have this winter been unable to access sufficient numbers.

Some RSE pruners working this year have been stranded

here for two years, unable to return home and while that has taken a personal toll, Pickens says growers are grateful to have them.

Pickens says RSE workers have underpinned the growth of grape growing and wine making, assisting Marlborough vineyards to exceed 10,000ha.

“We couldn’t have done it without them because we have a small town in Blenheim that is remote and the task is very physical,” Pickens said.

While they employ New Zealanders, he says the work is perceived as a seasonal summer job and without a large urban centre from which to source people, the industry has to rely on RSE workers.

Recruiting unemployed from elsewhere in the country to move to Blenheim is fraught with potential difficulty.

“It is very challenging to take people away from their families,” he said.

had 1070 Trades Academy places, with 1128 students taking part across the year.

“We are also currently working on our Pathways into Primary Industries (PiPI) programme,” he said.

“This concept will involve bringing people into the sector and providing them with choices of pathways into dynamic and rewarding careers.”

RESULTS: MPI director of investment skills and performance Cheyne Gillooly says the Opportunity Grows Here website and campaign has helped direct 5249 people into sector jobs.

Banks low-key on labour risk Richard Rennie richard.rennie@globalhq.co.nz DESPITE an ongoing erosion of rural labour force population throughout most of New Zealand, the impact it is likely to have on primary sector productivity has only gained the cursory attention of rural bankers.

Work by demographers Dr Natalie Jackson and Professor Paul Spoonley has highlighted how some regions can expect to lose as much as 15% of their working age population by 2033, often in regions aiming to boost growth through primary industry development.

The losses also come as the Government’s enthusiasm for migrant labour appears to be diminishing and migrant worker policies receive some tough scrutiny.

ASB general manager for business banking Tim Deane says labour supply was one but not the only factor examined when exploring what risks existed for rural loan investments.

“We will explore all risks and be satisfied about mitigation taken. More broadly, labour issues will not go away. It will drive automation, but that takes time and there is a need to transition.

We are confident that over time you do get more effective with people, for example, running larger herds,”Deane said.

However, he acknowledged that in horticulture particularly automated robotic picking was something still to be cracked.

ANZ managing director for business Lorraine Mapu says labour shortages were an area where there was starting to be some “real concern”.

“But from a banking perspective we are just trying to connect people up, looking at how you could share across the industry.

Talking to clients, some say they are also spending more time on the farm than they used to, making up for staff shortages. There is a

view there that the Government’s latest offering (200 migrant dairy farm workers) is not enough,” Mapu said.

But she says challenges around labour were not a reason for not lending to a client.

“Rural New Zealand has always had an ability to look laterally at challenges,” she said.

Colin Bond, NZ Kiwifruit Growers Incorporated chief executive and a banker for 20 years, most recently in ANZ’s agri department, says the shortage of labour in the coming few years for the kiwifruit sector was his and the industry’s highest priority.

Estimates are the sector will require an additional 5000 staff within only three seasons as new SunGold fruit licenced orchards start to hit their production straps.

“The volume of crop is coming.

We will be in the very real situation of having even more demand for staff and even less supply,” Bond said.

Similarly, Zespri chief executive Dan Mathieson says labour shortages are the single biggest issue facing the sector now and in the near future. Zespri was working with the Government to encourage a more comprehensive policy on how growth would be met with labour to capitalise on it.

Rabobank chief executive Todd Charteris says he was working to

TIGHT: Rabobank chief executive Todd Charteris acknowledges labour issues have moved beyond simply seasonal pinch points.

try and present the Government with the experiences of their farming and orcharding clients.

“Labour issues tend to get highlighted at seasonal pinch points, but it is now right through the sector at all times,” Chateris said.

He believes the Government has made some positive steps in trying to encourage more local workers and dialogue with ministers and the sector was ongoing.

“No one wants to grow produce that does not get used and is ultimately wasted because it cannot be harvested,” he said.

Bayleys national director of rural Nick Hawken says the more specialist the crop, generally the smaller the pool of talent to manage it.

“Access to labour is not a core driver of value in a property, but can definitely be an influencer on earnings and can have an impact on how a buyer may perceive that business’s earnings value,” Hawken said.

“If two comparable kiwifruit assets have the same effective production but are in different geo-locations and access to labour is cheaper (or more expensive) to achieve the production, then any buyer doing their due diligence properly should probably take that cost or benefit into account when determining the final purchase price for a property”.

He sees labour supply in areas with good horticultural growth prospects, like Gisborne, presenting a challenge for the sector.

“At present, in something like kiwifruit, there is an Early Start incentive there which helps mitigate some of that financial cost of accessing labour,” he said.

“This could put a draw on labour in other regions because the early start growers can afford to pay a higher rate. Equally, a loss of the early start could raise some challenges about sourcing staff from outside the region at that higher cost.”

Newsmaker

34 FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

Newbie bags top award First-time entrant Jake Jarman won this year’s FMG Young Farmer of the Year title in Christchurch earlier this month and he hopes his achievement will inspire others to enter the competition. Colin Williscroft reports.

W

HEN Jake Jarman entered the TaranakiManawatū regional heat of the FMG Young Farmer of the Year competition, it was more about giving it a go rather than thinking he was going to win.

After all, it was his first time competing in the event.

However, once he won the regional contest back in January – and with it a place in the grand final – there was no doubt the 24-year-old ANZ relationship associate was going to give it his best shot.

“I’m a very competitive person.

I tend to put a lot of pressure on myself and set myself a really high standard,” Jarman said.

Jarman was in Napier to watch the previous grand final in 2019 (the 2020 event was cancelled due to covid-19) and got some inspiration from seeing James Robertson, who was 22 at the time, come out on top.

“I think it really went to prove that age isn’t a barrier in this competition,” he said.

“It also showed that you could be a rural professional and still be successful, that it takes an allround person.”

However, going into the national final his primary focus was on performing to the best of his ability and being competitive.

He took it a little further than that, winning the agri-business, agri-sports and agri-knowledge awards during the grand final on

his way to winning the title.

“I loved the practical day; the challenge of having to multitask under time pressure and be a bit strategic,” he said.

The competitors are not told what the practical tasks will be prior to the event.

They are given a gear list a fortnight before the final but that’s it.

My fellow competitors certainly didn’t make it easy and, honestly, I feel like it was anyone’s game for the whole three days.

Jake Jarman Young Farmer of the Year “We needed things like a spade, hammer, pliers, tin snips, health and safety things, so you can have a bit of a guess and knowing who the sponsors are helps, but, apart from that, you’re going in pretty blind,” he said.

He’s grateful for the help he received from friends, family and his employers before and during the grand final, including vocal support at the practical day, the group of mates who helped with general study and preparation, and his work colleagues who helped with practicing his presentation.

While his rural roots have

HANDS-ON: Jake Jarman enjoyed the grand final’s practical day.

always been strong, Jarman says there was a time he was planning on studying meteorology.

“I really enjoyed science and maths, but my love of agriculture classes won out,” he said.

He has a Bachelor of Agricommerce and a Masters in Agri-science from Lincoln University and Massey University respectively.

“I opted to go down the commerce route for my studies because it’s always been something I’ve found interesting,” he said.

“When I did my masters we looked at the financial aspect of the farm system change we investigated, which was something I really enjoyed.”

After completing his studies, Jarman headed home to work on the family dairy farm in Inglewood, the fifth generation to work on the property.

“I loved being home and working with my parents; it’s a privilege in many ways to work land that’s been in the family for so long,” he said.

At the same time, Jarman worked part-time as a farm systems research graduate with Dairy Trust Taranaki on its Living Below the Fat Evaluation Index supplementary feeding research project, which seeks to compare alternatives to feeding PKE in an attempt to lower the fat evaluation index of milk.

Earlier this year, Jarman headed back down south, having landed a position with ANZ’s rural lending team in Ashburton.

CHAMP: Jake Jarman lifted the FMG Young Farmer of the Year trophy after entering the competition for the first time.

His job involves working alongside relationship managers, helping customers to start, grow and maintain their rural businesses.

“Since day one it’s been a challenge and a steep learning curve, but I’m really enjoying it and feel like this is where I’m meant to be for now,” he said.

“It’s a really good learning experience; I want to make a positive impact and add some value to the sector.”

As he showed by winning this year’s FMG Young Farmer of the Year title, Jarman’s not afraid of extending himself beyond where he’s been before.

“If you’re not out of your comfort zone, you’re not really growing,” he said.

He says the six other grand finalists pushed him all the way during the grand final.

“My fellow competitors certainly didn’t make it easy and, honestly, I feel like it was anyone’s game for the whole three days.

It’s been a privilege getting to know them and to now call them friends,” he said.

Despite this being his first year competing, Jarman has been involved in Young Farmers since university and has lapped up every opportunity to take advantage of what the organisation offers.

“Young Farmers is a lot about networks and a lot about meeting like-minded people. I’ve been a member of four clubs as I’ve moved around the country, so I have friends in all parts of the country now,” he said.

As for the future, Jarman has his eye on farm ownership and raising a family on the land, just like his parents.

“Having that family environment on a farm would be incredible. I really enjoyed my childhood and the opportunities that came from the farm. I want to provide that for my family when I reach that age and stage in life,” he said.

For now, he’s keen to stay in the rural professional space, save his pennies for his long-term goals and be as involved in the industry as much as he can.

He sees the NZ farming sector as having a great future, although there are challenges, one of which is not everyone understanding the sector’s story and contribution.

“We’re world leaders in producing food and fibre,” he said.

“We’re very fortunate that we’ve got a great launchpad with our pastoral-based production system.

“It’s a great foundation and point of difference. We’ve just got to make sure we stay at the forefront.”

New thinking

FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

35

METHOD: Fonterra bioinformatician Nick Sneddon with the genomic sequencer. Researchers are working their way through Fonterra’s strain library seeking out similarities in genetic patterns to the commercial strains.

Fonterra hunts good bugs Fonterra is banking on increased awareness about mental wellbeing and the brain-gut health relationship to boost sales in its registered probiotics and push along research into other so far undiscovered bacteria that may have positive effects on human health. Richard Rennie visited Fonterra’s Palmerston North Research and Development Centre to learn more about the bacterial success story.

M

ORE than 40% of consumers are now seeking out preventative means to manage their health through food and beverage consumption, prompting Fonterra scientists to double down on work that involves probiotics, the bacteria attributed to helping boost gut health.

While still not approved for health claims, probiotics have nevertheless been linked to positive benefits when consumed, through boosting the populations of positive gut flora. The category continues to grow and the US$57 billion industry is expected to grow at a compound rate of 5.6% a year from 2020-2027.

Fonterra’s head of probiotic research Dr Shalome Bassett says the company already has two commercially registered strains of probiotic bacteria for use in products and efforts are well under way to leveraging off Fonterra’s expansive bacteria library to identify other positive bacterial strains.

The market is segmented into bacterial and yeast strains, with the bacterial sector expected to see its growth continue to come from applications in medical

and dietary supplements.

“The Chinese in particular are very interested in early science being done on probiotics’ role in mental wellbeing,” Bassett said.

The research resonates with a Chinese market whose traditional Chinese Medicine (TCM) values have long recognised the link between the gut, organs and mind.

Chinese authorities recently approved a drug to treat Alzheimer’s disease that contained seaweed extracts that target the gut microbiome, in turn adjusting amino acid levels that irritate the brain.

More than a century ago a UK doctor found he could help heal depressed patients in the notorious Bethlem Royal Hospital by feeding them kefir, a fermented milk drink, and fresh fish, in the first western work identified as a field today known as psychobiotic treatment.

“Fonterra has almost 100 years of dairy culture strains, making it one of the largest in the world at hand and this is a veritable goldmine of bacteria strains for research to discover other bacteria that could sit alongside our two commercial strains,” she said.

The cost and time required to undergo genomic sequencing

to map the DNA of any living species has fallen significantly in recent years, and it is through this process Fonterra hopes to find other related and positive strains of bacteria to commercialise.

Fonterra has almost 100 years of dairy culture strains, making it one of the largest in the world at hand and this is a veritable goldmine of bacteria strains for research to discover other bacteria that could sit alongside our two commercial strains.

Dr Shalome Bassett Fonterra Armed with a desktop-sized genome sequencer and a smaller version no larger than a smartphone, researchers are working their way through the strain library seeking out similarities in genetic patterns to the commercial strains.

“What once would have cost over $1 million and taken a year to do is now only several hundred dollars a strain and can generate useful data in a matter of days.

Our goal is to have at least five new strains discovered for use in clinical trials over the coming year,” she said.

Genomic sequencing is estimated to speed up and fill the discovery pipeline, slicing the usual decade from research to application down by half.

Any discovered strain has to meet three criteria, namely and most obviously be safe to consume, have the ability to be manufactured in volume and to be stable as an additive to food and beverages.

The co-operative’s two registered strains LactoB HN001 and BifidoB HN019 each have specific applications, with LactoB claimed to help meet immunity and digestive health.

BifidoB is claimed to help reduce constipation and certain types of infections.

The research work also contains an element of self-preservation for the dairy co-operative, with scientists picking over bacterial strains that may help reduce bovine methane emissions

and help the industry meet its greenhouse gas (GHG) emissions targets.

Fonterra’s Kowbucha project is looking positive, with researchers working on identifying bugs that may be capable of switching off the methanogens that cause methane production in cows.

Such a discovery contains a quirky level of circularity, given it would be coming from cows themselves. Scientists maintain such bugs are more than likely to at least clear the “safe for cows” hurdle Fonterra has for any GHG mitigating treatment, given their origins.

Researchers are also discovering strong links between proteins and neuro-muscular junctions, the chemical juncture between muscle fibre and the nervous system directing it.

Maintaining these junctions as the body ages is increasingly being linked to protein consumption, also critical for maintaining muscle mass in later years.

“So we may be able to bring several things together into a nutrition bundle, with proteins to help muscles and probiotics for the nervous system and wellness, for the complete package,” she said.

Opinion

36 FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

EDITORIAL Common sense must prevail

T

HE Government’s policy of tightening access to immigrant labour appears to be yet another example of well-intentioned but poorly considered policy, for which this administration is synonymous.

As we report this week, the policy has major implications for the primary sector’s ability to utilise favourable international prices, which are at or close to record highs.

By tightening immigration, the Government hopes to encourage greater recruitment of local workers and take pressure off infrastructure and services, but in doing so it risks blunting the potential of the country’s remaining economic powerhouse.

There are simply not enough contractors, vets, fruit pickers or butchers to further process meat.

Recent efforts to recruit Kiwis into primary sector jobs has been average at best.

Add to those concerns are sobering warnings – largely unheeded for the past decade – that regional workforces are being hollowed out by an aging population, creating a significant risk to growth aspirations.

A defining 86% of New Zealand’s population is urban and far removed from the primary industries, so how realistic is it for someone unemployed in Auckland to move to Gisborne, Motueka or Gore to work on an orchard, forest or meat plant?

Given sectors as diverse as trades and hospitality are all crying out for workers, this leads to the question: have we reached the point where most of those who want work have jobs?

In the face of stiff competition for Kiwi workers, the primary sector has the added challenge of luring people to live in the regions.

To succeed it needs to be united and even more innovative in training and shaping jobs and careers to suit a whole new type of employee.

This is a long-term game and while the Government primes the economy by spreading taxpayer money like confetti, the reality is export dollars are being forfeited with fruit left unpicked, dairy farmers overworked and meat sold in primal cuts because of insufficient staff.

Certainly, tighten criteria for immigrant labour, but the reality is that employers still need access to foreign workers.

Neal Wallace

LETTERS

Sure, let’s blame the wildlife I COULDN’T quite make out the intention of Alan Emerson’s We’re Facing A Pest Crisis column (Farmers Weekly, June 28) – was he being serious or was it tongue in cheek?

The typical woolly idea of Forest & Bird that wild animals have to be eliminated because they are causing emissions was ludicrous.

I wonder if Forest & Bird would have said that about moa? According to scientific estimates from eminent ecologist Dr Graeme Caughley and scientist Les Batchelar, there were several million moa. Landcare Research estimated 250,000 wild deer in New Zealand. So, if all wild animals today totalled 500,000 that would be about 6% of the number of moas.

Emerson seems to believe Forest & Bird’s claim wild

animals can “topple our carbon-holding forest” by “eating seedlings and killing young trees”.

Which begs the question: how does the browsing by seven million moa stack up against the browsing by just 500,000 wild animals?

Anything in the natural world can be a valuable resource.

For example, following the first covid-19 lockdown, the Fiordland Wapiti Foundation – in managing and harvesting the population of wapiti – harvested deer carcases instead of leaving them to waste. The result was top venison mince, which was then distributed to food banks to feed families in need.

Eating wild organic meat is surely sensible and sustainable. Those wild animals are a resource.

Take the humble possum, vilified and demonised by the wacky ideas of the brotherhood of Forest & Bird and the Department of Conservation.

Its meat is of good quality for pet food and even human consumption, and the fur is of value many times that of cross-bred wool. Yet it is left to rot by DoC’s and Ospri’s 1080 drops.

It’s not often realised that any and every carcass killed by 1080 remains for several or more months, a toxic bait and a lethal danger to any creature, including native birds, which scavenge it.

As for eliminating wild animals to combat global warming, Forest & Bird seemed to be creating a diversion away from the human activities of driving

diesel-guzzling 4WDs

around city streets and flying by jet plane to holidays in Bali and the Gold Coast.

By the way, deer and possums don’t drive cars or fly by jet planes.

I am not sure about wild pigs because Forest & Bird and DoC seem to be having nightmares that “pigs do fly”.

Lewis Hore Oamaru

Double standards at its best IN A country such as New Zealand, which superficially at least values free speech, it was unsurprising to read Farmers Weekly regular columnists Alan Emerson and Steve Wyn-Harris offer their woeful opinion pieces on trade with China. I expected such drivel Continued next page

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Opinion

FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

37

A good deal for rural NZ Increasingly, storms, flooding, earthquakes and other natural disaster events are impacting New Zealanders. FMG’s Nathan Barrett explains how the Natural Disaster Response Model came to be and the benefits for clients at claim time.

landslips occur, if your home is insured, then New Zealand’s Earthquake Commission (EQC) is the agency tasked with settling the first portion of your house claim, as well as certain land damage caused by the event.

For thousands of people following the Canterbury

earthquakes, a return to normality was – or still is – an arduous process.

People need to work through a dual claims’ process: one with EQC up to a capped level of damage and one with their private insurer for elements that EQC does not offer cover for, and/or once the claim exceeded EQC’s limit.

The findings of a Public Inquiry into the Earthquake Commission were released in April 2020. It focused on the operational practices of EQC and the outcomes of claims for people, with the aim of making a positive difference for all New Zealanders in the future.

Fast forward 15 months and a collaborative approach later, and the new Natural Disaster Response Model is live. The new model means that if your home is impacted by a natural disaster and you need to make a claim, then all you need to do is contact your private insurer.

Essentially, private insurers will act as agents for EQC. Since the Canterbury earthquakes, FMG has been a strong and vocal advocate for this change. We instigated discussions with EQC and other insurers, recognising that at an already stressful time for our clients’ the road to recovery could be much simpler with a single point of contact.

We were pleased that after the 2016 Kaikoura earthquake FMG and other insurers had a temporary agreement to manage claims on behalf of EQC. We know

from Wyn-Harris who is renowned for his insightful comments on flower arrangements, but I expected more from Emerson.

Few, if any, New Zealanders have an issue with the industrious Chinese people, but their authoritarian regime is an entirely different kettle of fish.

Those who choose to exercise free speech in China seem to simply disappear, along with those with alternative but critical opinions.

If trade relationships are so important to Emerson and WynHarris, why did they write such

abusive commentary about the US political system? It is not so long ago that one Donald Trump was vilified by both your opinion piece writers, without any mention of the impact such comments would have on trade relations with the US. Are both of your writers so foolish as to believe NZ scored a homerun with our ban on nuclear ships entering our ports? The great thing about our Five Eye allies is that all are democracies and who share similar values such as the aforementioned free speech. Try protesting in China about the

Uighurs human rights abuses and see how you get on. Conversely, the streets in the US are abound with people demanding change from their leaders – and rightly so.

Perhaps Emerson and Wyn-Harris should ask the people of Hong Kong and Taiwan their opinions of the threat China poses to those countries.

Yes, trade is important, as are good relationships with all countries, but not at any price. Ask the directors of A2 Milk Company how their trade connection with China is going these days.

Personally, I am very comfortable

The

Pulpit

After more than 20 years in the insurance sector, I understand that enduring a natural disaster and the immediate days after the event is immensely challenging.

COMPREHENSIVE: FMG’s Nathan Barret says the new Natural Disaster Response Model will also cover the smaller, everyday claims like localised landslips.

from many of our clients that this arrangement worked well for them. It also worked well for us, knowing that we could help get our clients back on track.

The new Natural Disaster Response Model is not just for major catastrophes. It will also cover the smaller, everyday claims like localised landslips, once again keeping it simple for you.

As a direct insurer we put immense value on our client relationships and making sure that at claim time we’re keeping it simple and easy. This includes that our claims and assessing teams

with Five Eyes watching over our country and yes, even spying on me if that is what is needed to keep us safe. No doubt death from boredom would be the biggest threat to any intelligence service listening in. I for one will not forget the number of American lives sacrificed over the years to uphold the freedoms we still enjoy. The Battle of the Coral Sea – fought between the US battle fleet and the Japanese during WW2 – and not that far away from our shores, should always remind us it is the US who send their boys to protect us from threats which

are supported to offer the same level of service that you’ve come to expect from us.

Who am I? Nathan Barrett is FMG’s chief product and pricing, underwriting and claims officer.

Your View Got a view on some aspect of farming you would like to get across?

The Pulpit offers readers the chance to have their say. farmers.weekly@globalhq.co.nz Phone 06 323 1519

still exist, albeit from different countries today.

Wyn-Harris suggests NZ uses more effective measures to force change in China’s leadership.

We await with bated breath some more of his usual woke suggestions.

David Seymour doesn’t need me, as a very former Act MP, to comment as he undoubtedly has better things to do than reply to Prime Minister Jacinda Ardern’s men.

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HE 2010 and 2011 Canterbury earthquakes and the 2016 Kaikoura earthquake were both life-altering events for many and sadly, the impacts of all three quakes still resonate today.

In between quakes, the last decade has also been interspersed with other natural disasters, including significant flooding.

Recent events that come to mind include the 2017 Edgecumbe floods, in 2020 there were the Timaru Hailstorms, the once-in-500-year storm that flooded Northland, the once-in250-year Napier floods and the Motueka Boxing Day hailstorm. In June 2021, we saw the Canterbury flooding.

After more than 20 years in the insurance sector, I understand that enduring a natural disaster and the immediate days after the event is immensely challenging.

I’ve also come to understand that arguably just as challenging is the road to putting things right.

There’s the aftermath, the cleanup, the emotional processing of what occurred – and the return to a sense of normality.

As an insurer we hear that it’s this road to normality that can have a significant impact on people – for better or worse. Our claims and assessing team hear first-hand the struggles faced by clients and often and willingly provide support outside the scope of insurance.

When natural disasters like earthquakes, volcanic eruptions, hydrothermal activity or even

Opinion

38 FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

Hats off to PINZ Alternative View

Alan Emerson

I THOROUGHLY enjoyed last week’s Primary Industries New Zealand (PINZ) Summit and Awards in Christchurch. The organisation was impeccable, the venue superb and the speakers were, in the main, impressive.

I’ve been to many primary sector conferences over the years and they’ve certainly changed.

In the early days they were dominated by aged males in three-piece checkered suits and brogues. You could even imagine a tear being shed for the huge subsidies of the past or the fact the UK took whatever we produced.

Today, it is quite different.

This year the event was huge, there were over 550 attendees. It was also culturally and ethnically diverse, with a predominance of younger people, many of whom were women.

It was good to see and the organisation by Federated Farmers and Conferenz was professional.

As with all conferences, some of the speakers were better than others but it was a not-to-bemissed event.

Titled ‘To build a better tomorrow you need to act today’, we were given the information to do just that.

Around a third of the attendees were farmers, with the rest being a mixture of levy groups, local government and commercial entities. MPI were there in force.

AgResearch attended, as did Lincoln and Massey universities.

It was an important conference.

Putting it in perspective, the country has spent the past 18 months devastated by covid-19.

The world as we knew it has gone and changed forever.

Surprisingly, and despite covid-19, the NZ economy remains strong. Export revenue is expected to hit $49.1 billion by June 2022, with it increasing still further to $53.1b by June 2025.

That is a massive achievement and has happened for one reason – and that is the strength of our agricultural exports. Without them the economy and the country would be dog tucker.

The bottom line is that the primary sector is all we’ve got.

The problem is that a lot of our officials, politicians and the media haven’t a clue.

For example, the Ministry for the Environment (MfE) is always willing to cast their pearls to the provincial swine that didn’t have a profile at the conference. If they were indeed there, they didn’t contribute.

Likewise with the Ministry of Business, Innovation and

Employment (MBIE).

Farmers Weekly were there in force but I was unaware of any other media, which was scandalous in my view. If a farmer has a machinery breakdown and an unintentional effluent discharge the media are there in droves, but for a constructive conference on our future as a country, they’re not interested.

The so-called conservation groups were also conspicuous by their absence.

That was a travesty and shows in my opinion the inbred arrogance of much of the Wellington bureaucracy.

Returning to the conference we heard about low-carbon farming, the future workforce of the agricultural sector and the work of Māori Incorporations. There was climate change, He Waka Eke Noa and freshwater quality issues.

Forestry, the future of dairy, animal welfare and the future of new crops were also discussed.

As I’ve said, it was a highly informative discussion.

One of the highlights for me was a panel discussion on regenerative agriculture (RA) – as many of you know, I remain unconvinced.

John Roche is the chief scientist for MPI and, as well as being a highly reputable scientist who is fully aware of the issues facing the sector, his approach is, in a word, droll.

“Regenerative agriculture shouldn’t be a noun but a series of verbs” was his quote, which I

NOTEWORTHY: Alan Emerson was particularly impressed by MPI chief scientist John Roche’s contribution to the panel discussion on regenerative agriculture.

fully supported.

Roche said “there is no actual definition of regenerative agriculture”.

I found that quote interesting as the RA companies I’ve researched all have different definitions of their practices and with that being the case, so should NZ. Grass-fed would be a great start, followed by free beer on fine days.

Professor Nicola Shadbolt’s presentation on climate change was fascinating. She was on the Climate Change Commission and, by their reports, she served the primary sector well.

Her comment that “we’ll have to produce more food in the next 50 years than we have in the last 500” was sobering.

The awards dinner was a huge event and well worth attending.

The food was local and delicious, with the chefs explaining what it was and where it came from.

I had the high country lamb’s

shoulder, which had been cooked for 24 hours, shredded and reconstituted. It was amazing.

The awards reflected our industry well.

In my opinion, no one has served the sector as has Malcolm Bailey, who received the supreme award.

Currently he serves as chair of the Red Meat Profit Partnership and the Dairy Companies Association. His recognition was well-deserved and long overdue.

The other awards recognised excellence in science and innovation and included sheep and beef, dairy, honey, horticulture and pork.

So overall, it was a great event held over two memorable days in Christchurch.

Your View Alan Emerson is a semi-retired Wairarapa farmer and businessman: dath.emerson@gmail.com

Emailer barking up the wrong tree From the Ridge

Steve Wyn-Harris

DEAR Steve, As someone who’s taken action with Oxfam to tackle poverty before, we thought you’d be interested in a new campaign we’ve just launched today.

Will you join us in calling on the New Zealand government to step up our climate action by helping farming reduce pollution?

The unfortunate reality is that large-scale, intensive agriculture is responsible for 48% of NZ’s climate pollution.

In hope and determination, Alex on behalf of Oxfam Aotearoa Dear Alex, I’ve always respected and supported Oxfam in the past, but you are way out of your mandate here buddy.

You are ignorant of my sector if you believe “the unfortunate reality is that large-scale, intensive agriculture is responsible for 48% of New Zealand’s climate pollution”.

The majority of farming in this country is not large-scale and intensive but are family businesses producing high-quality, sustainably grown products and those exports are what has got this country through a very difficult time given tourism is on its knees.

The export dollars farming earns pays for the covid-19 vaccines, the PP gear and countless imports that you and your fellow city dwellers require to live a good life.

Why haven’t you sent out an email getting stuck into the other 52% of NZ’s climate pollution?

Namely, transport, energy and the like?

And how about a call for the tourism sector not to be brought back to life, given we are currently not emitting 10 million tonnes of CO2 equivalent into the atmosphere because no one is flying in or out?

I’m currently planting 7500 native trees around yet another retired waterway. What are you

TRIGGERED: Steve Wyn-Harris was left a bit hot under the collar after receiving communication on helping to reduce farming pollution.

doing to cut your own emissions?

This is an appalling tubthumping exercise by Oxfam to get donations and exposure and you should be bloody embarrassed about this campaign.

In frustration and disappointment, Steve PS: In answer to your question, no.

A lot of life is about luck. Oxfam was particularly unlucky to send their appeal asking for support to pressure the Government to “help farming reduce pollution” out not only to a farmer, but a farmer with a weekly column to fill.

Give them their due, after I followed up with another email

asking if they were going to reply and that I was going to write a piece on this, their media person replied immediately and that was later followed up by an email from my mate Alex.

He was personable and at pains to point out that they wanted to help farmers to transition to nonpolluting forms of farming and made all the right noises about agriculture’s importance to the economy and food supply.

He supplied links to their past campaigns and to be fair, they have been lobbying and pressuring governments to do more about climate change for quite some years. This is because the effects of climate change have a big impact on the people where

they work. That mollified me to an extent as they weren’t just jumping on the latest bandwagon of let’s get stuck into agriculture.

My beef – pun intended – is their language implying our whole sector is large-scale and intensive. He might be surprised that many farms like my own are so well-planted that the plantings are more than offsetting the emissions. Hardly intensive. And, most sheep and beef farms are offsetting most of their emissions.

These sort of facts are not recognised in their call for action as it doesn’t fit the narrative.

Oxfam does good work and their compassion and empathy for people in countries a lot less fortunate than ours is admirable.

Their business model based on the email I got appears to be based on funding from people they have helped find something to get outraged about.

They got me a little outraged, but not in the way they were hoping.

Your View Steve Wyn-Harris is a Central Hawke’s Bay sheep and beef farmer. swyn@xtra.co.nz

Opinion

FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

39

IN THE THICK OF IT: Jeremy Clarkson gets his hands dirty on his new Amazon Prime show, Clarkson’s Farm.

Surprisingly good farm show Meaty Matters

Allan Barber

WE BOUGHT a new TV last week because I was struggling with the subtitles and match scores on the old one, which also involved a convoluted process for streaming anything not accessed through the Sky remote. After the inevitable delay in personalising the new TV – what the hell’s our password? – we celebrated by subscribing to Amazon Prime and the first programme on the watch list was Clarkson’s Farm, an eight-part series about Jeremy Clarkson’s initially chaotic attempts to run his 1000ha property in the Cotswolds.

Clarkson has been a frequent presence on our screens since his days as the host of Top Gear, a cult programme designed to appeal to petrol heads and people wanting to experience outrageous behaviour vicariously, especially those willing to tolerate British public school humour – having attended one such institution, it was like being back at school, but very funny all the same.

After falling out with the BBC, Clarkson and his mates defected to Amazon to produce a similar programme before he rejoined the establishment as host of Who Wants to be a Millionaire?

I started watching him trying to farm with an equal sense of optimistic and cringe-worthy anticipation, although buoyed by the reviews which were all positive, apart from the po-faced Guardian critic who clearly didn’t

get the joke.

The first episode showed Clarkson justifying his reputation as somebody determined to ignore any advice he doesn’t like, because he rejects the used Massey Ferguson recommended by the dealer in favour of a high-tech Lamborghini tractor, which won’t fit in his barn and has a coupling device which is incompatible with all the machinery it will have to tow. Nor does it fit through the farm gates, but at least he took the advice of his adviser and bought the rest of his implements secondhand.

Taken as a whole, the programme follows Clarkson’s progression from farming ignoramus with more money than common sense to a farm owner who fully appreciates the challenges facing farmers...

The programme has a number of pleasures, not least the Cotswold countryside where I grew up with its stone walls and sweeping views, but more particularly the supporting cast of characters who all know much more about farming than Jeremy ever will. His relationship with Kaleb, effectively his farm manager, is a delight.

Kaleb frequently calls Clarkson a f---ing idiot, despite the fact he is only 21 and has only been to London once, preferring to stay round Chipping Norton and Chadlington. They behave more like an old married couple than boss and worker. Then there is Gerald, the stone wall builder

with an accent so broad I could only pick up one or two words in a sentence, even though I was born and lived in the Cotswolds, and Charlie, the farm advisor, who tries to keep Jeremy’s feet on the ground.

As the episodes progress through sowing crops, regenerating wetlands, buying ewes and rams, lambing during the pandemic, opening a farm shop, completing screeds of paperwork and harvesting, Clarkson finds himself listening to advice and, with encouragement from his partner Lisa and the influence of the rural environment, becomes a more likeable person.

There are many moments of pure humour, like getting his new tractor stuck in the wettest area and being towed back up the hill by Kaleb and his brother in a tractor chain, allowing the sheep to run amok on the way up the lane to a new paddock, ignoring instructions to do a three-point turn at the end of each row, thus leaving large strips of unsown paddock and trying to rebuild the stone wall after knocking it down with his tractor. All these moments are accompanied

by Kaleb, Gerald and Charlie telling him in their different ways how incompetent he is.

Regeneration of suitable parts of his land to encourage flora and fauna, once he has got over excessive use of the digger and caring for his sheep flock, show Clarkson at his best. He is excited by the wildlife and genuinely attached to his sheep flock; he takes great interest in the performance of his two rams, Wayne and Leonardo,

and grieves for one of the lambs that doesn’t survive and Wayne’s death from a twisted gut. This is made all the more poignant by the realisation the cost of shearing outweighs the value of the wool and the income per lamb has plunged during lockdown.

But in spite of these setbacks the lambing percentage is good and he still loves having sheep on his farm.

Taken as a whole, the programme follows Clarkson’s progression from farming ignoramus with more money than common sense to a farm owner who fully appreciates the challenges facing farmers, including catastrophic weather events, paperwork and bureaucracy, market conditions and animal health issues. At the end of the year Charlie gives him the news he has made a profit of £144 before subsidies.

Provided the viewer is not irritated by Clarkson’s wealth and inflated sense of his own self-

worth from previous programmes, this presents farming in an amusing, sympathetic yet realistic light, which goes some way towards encouraging townies to look favourably at the hard work involved in producing food for them to eat.

One is left with the sense Clarkson wants to carry on with his rural lifestyle, possibly because he gets more satisfaction from it than everything else he has made a fortune from. The cynic may say this is because Amazon will commission another series, but that is not yet a certainty.

If you want to enjoy an amusing and sympathetic look at a farming life, I suggest you take out your free seven-day Amazon Prime trial and watch Clarkson’s Farm.

Your View Allan Barber is a meat industry commentator: allan@barberstrategic. co.nz, http://allanbarber.wordpress. com

Opinion

40 FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

EXPLAINER: Land Information Minister Damien O’Connor provides insight into the Government’s Crown Pastoral Land Reform Bill and its role in the high country.

Getting the balance right Hon Damien O’Connor Minister for Land Information THERE’S been much discussion over the past couple of years about the Crown Pastoral Land Reform Bill and how it impacts leaseholders of Crown-owned South Island high country farms.

Now that the Bill has undergone robust scrutiny through the Select Committee process and proposed changes are in the public domain, I would like to provide some clarity around the reform.

The Environment Select Committee considered the Bill and heard submissions over the past few months. Many changes to the Bill have been made taking into account the extensive feedback from leaseholders, iwi, interest groups and the wider public.

It has always been my intent that the Bill achieves the right balance to maintain or enhance inherent values across the Crown pastoral land, while providing for ongoing pastoral farming of the estate in line with leaseholders’ existing property rights. It underpins this Government’s view that ongoing sustainable and responsible pastoral farming is the best way for this land to be managed.

I have heard and recognise the

passion with which leaseholders conduct their stewardship of these iconic properties. I also understand how valued the high country is by iwi and all New Zealanders and this is reflected in the Government’s decision to end tenure review and maintain the land as Crown pastoral leases for future generations.

The process of tenure review has run its course.

Since the process commenced in 1998, many leaseholders who have wanted to, have gone through the process. For those parties to whom a substantive proposal has been put, the process will continue. The remaining will continue to operate their properties as leaseholders with perpetual right of renewal.

The Bill is intended to enshrine best practice and streamline some day-to-day farming activities. It amends the existing regulatory system under which leaseholders are already required to obtain landowner consent for many activities, by classifying activities as permitted, discretionary or prohibited. Low impact farming activities will not require consents. Higher impact activities will require consent from the Commissioner of Crown Lands under an improved process. Some

activities that have major impacts on the values of the high country will not be allowed.

Toitū Te Whenua Land Information New Zealand (LINZ) remains responsible for administering 1.2 million hectares of Crown pastoral land.

LINZ has recently taken a more hands-on approach, including significantly increasing visits to pastoral leases. I have instructed LINZ to continue to build on this important function to maintain a strong and effective connection with leaseholders.

For most leaseholders, the Bill will not change the way they farm, because they already follow best practice to minimise the impact on the environment and manage pests and weeds. And in many cases, that’s been an intergenerational effort.

The changes to the Bill include important safeguards for high country leaseholders. For instance the Commissioner of Crown Lands, in limited circumstances, can consider economic benefits associated with a proposed farming activity. I am also pleased the committee supported the greater use of farm plans for high country stations. Changes requiring enhanced public access to be considered when a

lease is transferred, ensures the expectations of the wider public to have access to these iconic lands can be negotiated with prospective leaseholders.

It has always been my intent that the Bill achieves the right balance to maintain or enhance inherent values across the Crown pastoral land, while providing for ongoing pastoral farming of the estate in line with leaseholders’ existing property rights.

Leaseholders may at times still require consent from both LINZ and their local council under the Resource Management Act (RMA), just as they do now. It’s an important distinction to make, because the RMA applies to all land and is about environmental management, whereas the Crown Pastoral Land Act is about a leaseholder/landowner relationship. Where possible LINZ will ensure that the compliance

requirements align to minimise information requirements on leaseholders.

Under the Bill, LINZ will have a wider range of powers to address situations where leaseholders do not comply with their lease.

These measures will not impact anyone doing the right thing, but they will ensure bottom lines are maintained and that there are appropriate mechanisms to address poor practice.

This Bill is the result of extensive engagement with leaseholders, iwi, environmental and recreational advocacy groups.

The high level of interest in the future of this land was evident in the 3200 submissions received on the February 2019 discussion document leading up to this Bill and the 200 or so submissions received by the Select Committee.

I appreciate the time and effort put in by everyone who gave feedback on the discussion document and the Bill.

These spectacular South Island properties are special places for all New Zealanders. This Bill recognises the place of pastoral farming as a legitimate use of the land, while protecting the importance of the unique values of our high country to New Zealand and all New Zealanders.

World

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

41

Farmers brace for trade impact THE real impact of a free trade deal with Australia will be felt

by British farmers in around 10 years’ time after the removal of direct support payments, industry leaders say.

Prime Minister Boris Johnson announced last month that the UK had signed a free trade agreement (FTA) in-principle between the UK and Australia.

The Government says tariffs and quotas on Australian agri-food goods will be phased out over the next 15 years “to allow farmers to adjust to the new trading environment”.

In the next year or two, we won’t see much difference … 15 years out, you have potentially an enormous impact on an agricultural industry.

Sean Rickard Former economist Farm leaders and economists were asked what this deal will likely mean for the agriculture sector, its high standards and on future trade during a crossparty UK Trade and Business Commission session on July 1.

Former NFU chief economist Sean Rickard predicted that not much would change in the next two years, but significant change would be felt in 10-15 years’ time.

“We know there are always

winners and losers when it comes to trade negotiations,” Rickard said.

“It just seems that agriculture is going to bear a disproportionate cost of this deal, and what worries me is that it’s the templates for deals that will be done with others.

“In the next year or two, we won’t see much difference … 15 years out, you have potentially an enormous impact on an agricultural industry.

“I think the Government is aware of that. When you look at the Agriculture Act, it is not about producing food now. It is about encouraging farmers to do something other than produce food.

“They are preparing to slim down the agricultural industry.

I think that is such a waste of enormous potential and opportunities.”

National Sheep Association chief executive Phil Stocker says Australia is a “highly efficient” agri-food exporter, and the “largest global exporter of sheepmeat”.

Bigger volumes of Australian sheepmeat imports in about 10 years’ time would depress prices, he suggested.

“This is really concerning because it is likely to happen at a time when the Basic Payment is being taken away from farmers,” Stocker said.

Devon beef farmer and cofounder of Ladies in Beef Jilly Greed described the FTA as an “absolute betrayal” by the Government of UK agriculture’s

QUESTIONS: UK Farm leaders and economists were asked what the Australian deal will mean for the agriculture sector, its high standards and on future trade.

high animal welfare and environmental standards.

“This is like Christmas all over for Australia and then stacking up behind are the other big exporters – New Zealand, Brazil and the US,” Greed said.

“Currently, there are about 3700 tonnes of Australian product coming into this country.

“This will increase to 45 times that amount to 170,000t in 15 years’ time.

“The current amount of total imported product is about 240,000t. We are only about 65% self-sufficient. It will have an impact without doubt.”

Former Australian diplomat and trade negotiator at the World Trade Organisation, Dmitry Grozoubinski says three scenarios were possible.

First, Australia could significantly increase its red meat exports to the UK, which would depress prices and mean “Jilly (Greed) and her colleagues are

going to be hurt”.

Second, Australia could continue to target its exports at its most lucrative markets in Asia, North America and the Middle East. Under this scenario, “things stay roughly as they are, which means the consumer benefits are next to zero”.

The most likely outcome was “somewhere in the middle”, Grozoubinski says, where Australian beef and lamb imports increase, offering more options for restaurateurs and packaged foods.

“The impact on farmers will really depend on how much takeup there is from Australia,” he said.

The Government’s own estimates suggest that the UKAustralia deal will increase GDP by only 0.02%, but Australia is expected to enjoy an export boost six times that of Britain from the arrangement.

Farm leaders say they are concerned the Government

has not carried out an impact assessment on the effect of an Australia FTA on the UK agricultural industry.

“In their haste to make headlines, the Government compromised on our standards, our climate commitments and even the livelihoods of our farmers,” Brighton Pavilion Green Party MP Caroline Lucas, who chaired the session, said.

“We will use today’s evidence to make constructive recommendations on how this can be improved, but we urge the government to show some backbone and stand up for Britain in future talks rather than rolling over to make a quick deal.”

“Any deal we sign will include protections for the agriculture industry and will not undercut UK farmers or compromise our high standards,”a spokesperson for the Department for International Trade said.

UK Farmers Weekly

British Govt has questions to answer THE Government committed to protect UK farming standards in any post-Brexit trade deal – and it is adamant this remains the case.

However, farm leaders question how this will be possible if the UK agrees a FTA with Australia, where farming standards are lower than in the UK. Devon beef farmer and cofounder of Ladies in Beef Jilly Greed says Australia has 40% production in hormone beef, a method which is banned in the EU. “They insert a pellet under the ear of the animal and that accelerates growth by anything up to 30%,” Greed said.

On livestock transport, cattle in Australia can travel up to 24 hours without food or water. But in the UK, the Government is

planning to ban live exports and reduce livestock journey times to a maximum of eight hours.

National Sheep Association chief executive Phil Stocker says the maximum journey time for sheep transport in Australia is 48 hours with no unloading, rest or water.

On-farm, Stocker says Australian sheep farmers use “mulesing” on about 60% of sheep.

This controversial method involves removing strips of skin off the hindquarters of sheep without the use of anaesthetic to avoid fly strike and maggots.

“Our consumers here would be absolutely horrified if they knew we were buying products from lambs that had been mulesed,” Stocker said.

RSPCA head of public affairs David Bowles says the charity

CONCERNED: Farm leaders seek answers on how the Government will protect farming standards following its FTA with Australia, where farming standards are lower than in the UK.

has designated six animal welfare differences between the UK and Australia in the beef sector and a couple in the sheep sector.

“The Government said in its manifesto it will not compromise

on animal welfare standards in any free trade agreement. What does that mean?” Bowles asked.

“Does that mean we won’t lower them? Well, that’s fine, but if you don’t have equivalence or conditionality in your FTA, it

means you export your welfare standards.”

“I think the Government is being coy, but a more reasonable way of saying it is disingenuous as to what it has done.”

UK Farmers Weekly

SITTING ON THE

If the chatter around your place has been “will we sell?” or “shall we wait?”, then jump off the fence and be part of Bayleys’ next Country portfolio – there’s no time like the present to secure your future.

Planning for the eagerly-awaited Spring edition of Country is underway now.

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87

FARM, SPECIALTY AND LIFESTYLE PROPERTIES FOR SALE ISSUE 1 – 2021

A LT O G E T H E R B E T T E R

Residential / Commercial / Rural / Property Services

NEW LISTING

Te Karaka Part 1, 2433 Matawai Road

Circa 131ha within 30km of Gisborne Secure your own hill country property, including smaller lots of mature forestry and boasting a range of magnificent potential house sites. Located 24km up Matawai Road north of Gisborne, this 130ha (subject to survey), provides a multitude of opportunities for a range of buyers. Be it grazing and capitalising on the return from harvest of mature pine, or considering more intensive land use - there are many possibilities! An all weather road weaves it's way to the top of the property, providing exceptional access and opening opportunities aplenty, to build that dream home on a seldom found site. Be it views east towards Gisborne and the ocean, or north to uncompromising panoramic views of natural rural landscape, the property offers an extensive range of options for your dream home. Call now, to book your own personal inspection!

Auction (unless sold prior) 1pm, Fri 30 Jul 2021 10 Reads Quay, Gisborne View by appointment Simon Bousfield 027 665 8778 simon.bousfield@bayleys.co.nz Stephen Thomson 027 450 6531 stephen.thomson@bayleys.co.nz

bayleys.co.nz/2752205

BOUSFIELD MACPHERSON LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

Boundary lines are indicative only

Mangawhai 213 Black Swamp Road Landbank, farm or develop!

A once in a lifetime opportunity to acquire a strategically positioned, 50 hectares of land in Mangawhai is now a reality.

Located near to the internationally recognised 'Tara Iti' Golf Course, within a short drive to Mangawhai Central development and surf beaches, make this property a prime prize for those with an eye on the future. Presently Kaipara Council zoned as 'Rural Harbour' provides the potential for subdivision for up to 25 lots.

Rich fertile black peat and condensed sand soils on a flat contour provide a great base for the property’s current use as a dairy support and cropping farm or for horticultural options.

Helensville 1493 South Head Road 3

1

1

2

Tender (unless sold prior) Closing 4pm, Wed 21 Jul 2021 41 Queen Street, Warkworth View by appointment John Barnett 021 790 393 john.barnett@bayleys.co.nz MACKYS REAL ESTATE LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

Farm, game or subdivide!

Well located on the popular South Head peninsula, with two road boundaries and stunning views across the Kaipara Harbour, this beautiful 40 hectare grazing farm certainly boasts the 'X-factor'!

The property has a good mix of flat to undulating contour which has been subdivided into approximately 11 paddocks. Currently used for dairy grazing, it will also suit those wanting quality land for their horses, sheep or cropping. Support infrastructure includes two hay sheds, an all-year round water supply and a set of cattle yards. Other special characteristics include visits by wild fallow deer, ducks and the potential for a further title or more.

Take a virtual tour: www.vimeo.com/566780630

Take a virtual tour: www.vimeo.com/566781069

bayleys.co.nz/1202589

bayleys.co.nz/1202588

Tender (unless sold prior) Closing 4pm, Tue 20 Jul 2021 41 Queen Street, Warkworth View by appointment John Barnett 021 790 393 john.barnett@bayleys.co.nz Jayne McCall 021 606 969 jayne.mccall@bayleys.co.nz MACKYS REAL ESTATE LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008 BAYLEYS REAL ESTATE LTD, KUMEU, LICENSED UNDER THE REA ACT 2008

bayleys.co.nz

AN INVITATION FROM YOUR LEADING EAST COAST

COUNTRY SPECIALISTS

Growth opportunities in farming & horticulture with Equity Partnerships 1pm Tuesday 3 August 2021 at the Cheval Room, Hastings Racecourse, 300 Prospect Road, Hastings, 4120

Bayleys Country welcomes all interested parties to register interest in attending this interactive afternoon designed to introduce the concepts and discuss the opportunities and topics, such as Bank overview - what does a successful equity partnership look like?; Structures and ongoing management; Insights from current Equity Farm owner, and more.

Who should attend?

Farm managers looking for investment and management opportunity Next generation farmers looking to access capital for growth Landowners looking for growth opportunity Investors looking for reliable returns and shared ownership RSVP to moana.panapa@bayleys.co.nz by 5pm Tuesday 20th July 2021 For more information contact your local East Coast Team today.

Havelock North 06 872 9300

Waipukurau 06 858 5500

Wairarapa 06 377 0622

Gisborne 06 868 5188

Residential/ Commercial/ Rural/ Property Services

Parawera 74 Ellicott Road Tender

Great land with even better views The opportunities on this 88 ha property are plentiful and the views are stunning. Ready to move into with a 3 brm home built in 2013. Alternatively, use this opportunity to build your dream home with some of the best views in the Waikato.

Currently being run as part of a larger dairy farming enterprise with the underpass connecting the property to the dairy unit across the road, 74 Ellicott Road is a highly productive property with approximately 62 ha planted in modern rye grass cultivars that have been established alongside a significant maize cropping program. The farm features a woolshed that has been converted to rear calves, 12 ha of pine trees (planted 2019), and a 60m deep-bore that supplies both stock and domestic water. All fenced into 26 paddocks for easy management with every paddock accessed from the central race system.

19km from Te Awamutu and 25km from Cambridge, this fantastic property will suit farmers looking for a block to rear young stock and grow maize.

Tender closes Tuesday 5th October, 2021 at 4.00pm, (unless sold prior), Property Brokers Te Awamutu - 138 Arawata Street, Te Awamutu View By appointment Web pb.co.nz/CBR90957

David McGuire M 027 472 2572

E david.mcguire@pb.co.nz

Parawera 99 Ellicott Road Tender

220 ha Dairy unit With a dairy platform of approx 137 ha on a total area of 219.7 ha of mostly Mairoa Ash soils, this property has plenty of scale and the opportunity to purchase a further 88 ha next door. In the heart of the Waikato, between Te Awamutu and Cambridge at Parawera, this unit is in a prime location and comes with a range of forestry, native bush and ponds.

The 60 bale Westfalia rotary dairy is centrally located with races feeding out in four directions including to the underpass that connects the farm to the property across the road. Water is sourced from the spring fed bush stream and the 40m deep bore located at the dairy. There are plenty of support buildings including the 3-bay high roof feed shed with a further 2 bays of mineral storage, a small lockable implement shed, a 4m x 6m x 50m concrete silage bunker and a 1,995 m2 feed pad. The effluent is managed with a solids separator and lined pond.

Two 3 bedroom dwellings.

Property Brokers Ltd Licensed REAA 2008 | pb.co.nz

Tender closes Tuesday 5th October, 2021 at 4.00pm, (unless sold prior), Property Brokers Te Awamutu - 138 Arawata Street, Te Awamutu View By appointment Web pb.co.nz/CBR87343

David McGuire M 027 472 2572

E david.mcguire@pb.co.nz Proud to be here

46

farmersweekly.co.nz/advertising 0800 85 25 80

Tech & Toys

FARMERS WEEKLY – July 12, 2021

WE ALREADY KNOW YOU MAKE GREAT CHOICES… YOU OWN A JOHN DEERE. You now have even more choice when buying parts.

When it comes to parts for your John Deere equipment, we’re now giving you more choices.

When buying selected parts, you now have options that best suit you and your equipment no matter the age. Whatever your budget you can trust you are getting the right part at the right price to keep your John Deere performing at its best.

Talk to your local dealer about which parts are right for you or visit JohnDeere.co.nz/Parts

TRACTA_J63721_TieredPortfolio_NZ_NZFM

ATV & UTV accessories made here in New Zealand TRAX Equipment specialise in the design and manufacture of quality accessories for ATVs and UTVs. Aftermarket glass windscreens, cab kits, gun racks, and much more. Available through any motorcycle dealer in New Zealand.

0800 782 376 www.traxequipment.co.nz

Travel & Tourism

TOURS BO OK NOW WITH NO DESPOSIT!

VISIT OUR WEBSITE FOR MORE DETAILS ON THESE 2021 / 2022 TOURS KING COUNTRY & TARANAKI | OCT

NORTHLAND | JUNE

classifieds@globalhq.co.nz

MACHINERY OPERATOR

in Whanganui

• Full cultivation and direct drilling set up • Baling and harvesting of grains • H4 licence for cartage between both properties For far less than the price of a new tractor, you could invest in a Private Pilot Licence.

Book a 20-minute trial Flight of Discovery for $69.

NZICPA has several private, self-funding pilot students who fly with us part-time/weekends and pay as they go.

Have a go at flying look around our facility and talk to the instructor about the six PPL theory papers.

Starter packages / part-time and full-time options available.

Both positions are based in Waikari, North Canterbury and can be full time or part time for key seasonal tasks.

Further enquiries phone Ben 027 699 6660

Email enquiries@nzicpa.nz or call us on 06 927 6332 today.

(06) 357 1644

AGRICULTURAL TOURS THROUGHOUT THE WORLD

GENERAL HAND

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• Fiordland, Stewart Is. & Catlins • Best of the Mainland • Far North & Bay of Islands • Gisborne & East Cape • Chatham Islands • Winter Express Trips!

Mahuta is a family-run business in the North Waikato.

It is home to 220 fully-recorded, stud Hereford cows and approximately 800 ewes. Yearling bulls are sold at an annual sale in September.

The farm is run by the owner who is supported by an assistant manager. We are looking for an additional person to help with a variety of aspects of farm work.

3-bedroomed accommodation is available.

Qualities for the successful applicant include: 1. Being reliable and having a good work ethic 2. Ability to work as part of a small team and communicate effectively 3. Ability to work alone and show some initiative 4. Have an interest in cattle

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There will be opportunity to gain extra experience and additional training as part of the job.

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PILOT TRAINING

Next issue – August 9: Booking deadline Wednesday August 4 – 12 noon Contact Debbie: 0800 85 25 80

CANTERBURY & OTAGO | NOV

Attention Farmers!

Promote or find your next adventure in our Travel & Tourism section published monthly.

MARLBOROUGH & TASMAN | MAR

• Feeding of livestock • Administering animal health • Assisting rearing beef and dairy calves

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DRY STOCK ASSISTANT

Travel further with Farmers Weekly

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47

Primary Pathways

Please apply with CV and references to: jvmeallen@xtra.co.nz

Ph 0800 38 38 747 www.farmtofarm.co.nz

Enrolling Now!

Come in and see us onsite on Kahutia Street or call and leave a message on 0508 38 38 38 or email: enquiries@ta.org.nz

Real Estate Partnership Manager

4X4 TAGALONG TOURS

(full time) GlobalHQ is the country’s most innovative multimedia agriinformation hub.

We invest in great people and products, including Farmers Weekly, Dairy Farmer, On Farm Story, Pulse and the AgriHQ suite of data and analysis products.

Sheep & Beef Senior Leadership team Tour 1: Molesworth Station, St James, Mailings Pass & Rainbow Stations

As part of our clients business continuity strategy they are looking for a motivated, enthusiastic person to join the senior leadership team on their 42,000su North Waikato high performing Sheep and Beef property.

The successful applicant will be working in a strong team and looking to take their career to the next level. Good communication skills and clear leadership skills are a must. The ideal person will be able to lead by example with a high level of proficiency in all aspects. A capable team of dogs will be essential.

Dates: Jan 8-11, Feb 20-23, March 13-16, 19-22, 26-29, April 2-5, 23-26

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Other dates available for groups of 6 or more people on request

This is an opportunity to join a professional organisation and develop skills to take on more responsibility within the organisation. This will suit those who are looking to progress to management of large sheep and beef properties.

A comfortable 3-bedroom house is available with both primary and secondary school options at gate.

Ph: 0274 351 955 Email info@southislandtoursnz.com www.southislandtoursnz.com

You will be working at GlobalHQ alongside our brilliant publishing team to build client partnerships and smash budgets using the world-leading Salesforce CRM systems.

Please send your CV with references by the 14th August.

Email: rob@total-ag.com

You will be given full responsibility for the Real Estate and Property portfolio, managing all key property client relationships.

You will take an active part in the strategic marketing and sales of all the Real Estate, Primary Pathways, Tech and Toys and general classifieds sections of our publications and consistently exceed total revenue targets across our print and digital assets.

Solid sales, digital advertising, social and general media knowledge would be an advantage, along with a good understanding of the G Suite cloud computing tools and usual office computer products.

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Noticeboard

ANIMAL HANDLING

DOGS FOR SALE

DOGS WANTED

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Phone 07 573 8512 w w w. e l e c t r o d i p . c o m

HANDY HEADING dog, needs work. $500. North Canterbury. Phone Craig MacPherson 027 739 1218.

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

1 0 - M O N T H - O L D Huntaway bitch, excellent breeding and noise.

4-YEAR-OLD Huntaway dog, fully broken in, a gem.

Phone 027 243 8541.

BUYING DOGS NZ Wide. email: mikehughesworkingdogs@ farmside.co.nz 07 315 5553.

CALF TRAILER MATS SUREFOOT MAT 1.5m x 1m x 24mm $99ea + freight and gst. Phone 0800 686 119.

DOGS FOR SALE WORKING STRONG EYED pedigree Border Collie pups. Working lambs at eight weeks, bred from the finest, international dog trialling lines. Phone Somerton Park Kennel. 03 342 8488 or 021 264 6250.

PURINA PROPLAN WHATATUTU dog sale.

Saturday 21st August.

At Otara Station, 319 Whatatutu Road, Te Karaka, Gisborne. Sales start at 12 noon. Dosing clearance required.

Enquiries and to enter go to: Whatatutu Dog Sale Facebook page.

FARM MAPPING

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FERAL GOATS WANTED. All head counted, payment on pick-up, pick-up within 24 hours. Prices based on works schedule.

Experienced musterers available.

Phone Bill and Vicky Le Feuvre 07 893 8916.

GOATS WANTED. All weights. All breeds.

Prompt service. Payment on pick up. My on farm prices will not be beaten.

Phone David Hutchings 07 895 8845 or 0274 519 249. Feral goats mustered on a 50/50 share basis.

SHED STORED SQUARES $75+gst and rounds. Baleage $75+gst.

Unit loads available. Top quality. Phone 021 455 787.

WORD ONLY ADVERTISING. Phone Debbie on 0800 85 25 80.

RED DEVON BULLS, one and two year olds.

Purebred. Members of RDCBA. Phone 06 762 8803. Taranaki.

RED DEVON BULLS. Waimouri stud, Feilding.

Phone 027 224 3838.

HORTICULTURE NZ KELP. FRESH, wild ocean harvested giant kelp.

The world’s richest source of natural iodine. Dried and milled for use in agriculture and horticulture. Growth promotant / stock health food. As seen on Country Calendar. Orders to: 03 322 6115 or info@nzkelp.co.nz

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48

Farmers Weekly 2021 autumn bull sale results

A bull season for the books THE 2021 autumn bull selling season has come to a close after seven busy weeks. What a season it has been. We have recorded some impressive results, and many vendors and buyers around the country will undoubtedly be pleased.

This season was very different to last year’s chaotic covid19-interrupted season, where many sales had to be cancelled or postponed. Needless to say, this year has not been without its own challenges; many areas experienced extreme drought conditions ahead of the selling season and some were then pummeled with extreme flooding in late May. And, uncertainty still looms for many with the introduction of new regulations and concerns about land conversion.

Of the 3994 two-year-old bulls we recorded on offer this year, 3564 sold on the day of auction.

This is the second highest volume of bulls offered in the past four years; 270 less than 2019 where we documented 4264 bulls being offered. The total clearance rate for the past two years, 89%, is slightly back on what we saw in 2018 and 2019, which were 95.3% and 94.9% respectively.

Average prices have fared very well this year. As depicted in the graph below, the average price (weighted) for the majority of breeds is up on last year. For Charolais, Limousin, Simmental and South Devon, the averages recorded are not only up on last year but the highest recorded in the past four years. With Angus, we see a cyclic but consistent trend over the past four years reflecting the popularity of the breed in New Zealand. Barring a spike in 2019, the average price for Herefords appears to have remained steady.

The trend in price for

2021 autumn bull results by region

Santa Gertrudis and Speckle Park should be read with consideration that data collected for 2018-20 was from a single stud for each and data for 2021 included two stud results for each.

Highest prices also fared extremely well this year. Many studs reported achieving their personal highest priced bull ever.

Two records were also reportedly broken this season. One went to Kaharau Angus’ Lot 6 bull, which sold for an astonishing $106,000.

The other one was for Gold Creek Simmentals R1 bull, which sold for $27,000.

The commercial support this year has been very strong, with many commercial farmers purchasing the top-priced bull sold.

For certain breeds, having either the polled or horned trait is something buyers have to consider when selecting a bull.

Multiple vendors commented that there has been a definite sway towards the polled

traits in the recent years. This movement is potentially due to less husbandry required with polled animals. This change has been warmly embraced by studs, however, the switch to polled animals does not happen overnight. There is a fine line between maintaining genetic progress and selecting for a particular trait.

An interesting aspect of the autumn season was the number of studs we recorded entering the on-farm auction market. We recorded six new studs in total, three of which were breeding Angus, two Simmental and one Speckle Park. This is similar numbers to what we saw entering the market in the 2020 spring bull selling season.

Online auction platforms have continued to play an important role in the bull selling season.

Last year many studs were forced to turn to online platforms as the only way to run their sales during covid. This season we note that the majority of

studs have continued to utilise the technology and run this in conjunction with their on-farm auctions. For most vendors this decision appears to have paid off, as many reported having bulls bidded for or purchased online. Online platforms can broaden a stud’s potential clientele by providing greater flexibility for buyers to place bids and purchase bulls from any location. It is safe to say that online platforms are here to stay and will only continue to develop with time.

Overall, the 2021 autumn bull selling season has been very strong – the quality of the bulls offered and the results they achieved is a real testament to the hard work breeders have put into their cattle. Congratulations to all the vendors, successful bidders, underbidders and everyone involved who made the season run smoothly. Let’s hope the 2022 autumn bull selling season runs just as well, if not better.

2021 Bull Sale Highlights 5

SALES

NUMBER OF BULLS SOLD NORTH ISLAND Angus 1456 Charolais 39 Hereford 349 Shorthorn 54 Simmental 142 Santa Getrudis 5 South Devon 32 Speckle Park 15

11

SALES

2

SALES

12

SALES

14

3

SALES

Highest average 2-year bull prices: • Angus – Kaharau Angus, $15,603 • Hereford – Koanui Polled Herefords, $10,057 • Speckle Park – Maungahina Stud, $9566 • Charolais – Silverstream Charolais, $9098 • Simmental – Kerrah Simmentals, $8640 • South Devon – Burtergill South Devon, $8111 • Shorthorn – Glendhu Shorthorns, $6873 • Limousin – North Island Limousin Bull Trial, $5888 • Santa Gertrudis – Glenrossie Beef Shorthorn and Santa Gertrudis, $5980

Highest 2-year bull prices: Angus – Kaharau Angus, $106,000 Simmental – Kerrah Simmentals, $45,000 Hereford – Limehills Herefords, $41,000 Speckle Park – Maungahina Stud, $22,500 Charolais – Hemingford Charolais, $28,000 South Devon – Burtergill South Devon, $15,000 Shorthorn – Glendhu Shorthorns, $12,200 Santa Gertrudis - Glenrossie Beef Shorthorns and Santa Gertrudis, $9700 • Limousin – North Island Limousin Bull Trial, $7600 • • • • • • • •

SALES

21

SALES

Average weighted stud bull price by breed, $/hd, 2018-21 5

12,000

SALES

3

SALES

6

10,000

SALES

2

8,000

SALES

19

SALES

17

SALES

6

SALES

NUMBER OF BULLS SOLD SOUTH ISLAND Angus 958 Charolais 87 Hereford 339 Shorthorn 14 Simmental 52 Santa Getrudis 1 South Devon 12 Speckle Park 5

6,000 4,000 2,000 0

Angus

Charolais

Hereford

2018

Limousin

2019

Contact PBB about Igenity, a commercial genetic evaluation that is backed by over 100 years of NZ pedigree, performance and genetic data. pbbnz.com

Simmental

2020

Santa Gert.

Sth Devon

Speckle P.

2021

Disclaimer: Santa Gertrudis and Speckle Park data collected for 2018-20 was from a single stud for each and data for 2021 included two stud results for each.

Want to improve money-making traits of your cattle faster?

0800 248 247

Shorthorn

Farmers Weekly 2021 TOTAL OFFERED

TOTAL SOLD

AVERAGE PRICE

STUD

LOCATION

TOP PRICE

SOLD TO

Atahua Angus

Feilding

33

33

$11,924

$19,500

Aywon Angus

Stratford

18

14

$5,585

$9,000

Bannockburn Angus

Fox Glacier

9

9

$5,345

$8,000

Black Ridge Angus

Taumarunui

26

25

$8,520

$20,000

Blacknight Angus

Rai Valley

13

9

$6,166

$10,000

Brackenfield Angus

Blenheim

12

12

$7,333

$14,500

Brookwood Angus

Takapau

26

26

$7,846

$13,000

Colvend Shorthorn and Angus Stud

Ongarue

19

15

$4,526

$7,000

Cricklewood Angus

Wairoa

4

4

$11,000

$12,500

Dandaleith Angus

Dannevirke

30

24

$8,000

$20,000

Merchiston Angus and Atahua Angus

Dandaloo Angus Stud

Masterton

34

34

$8,733

$23,000

Commercial

Delmont Angus

Clinton

29

29

$7,493

$13,500

Elgin Angus

Elsthorpe

26

25

$8,200

$15,000

Fossil Creek Angus

Ngapara

67

62

$7,637

$19,000

Glanworth Angus

Pahiatua

32

27

$8,100

$16,000

Glenwood Angus

Mosgiel

9

8

$8,200

$12,400

Grampians Angus

Culverden

35

35

$10,957

3 x $16,000

Hallmark Angus

Tutira

33

33

$9,772

$48,000

Hingaia Angus

Te Awamutu

38

38

$10,026

$18,000

Kaiwara Angus

Culverden

27

23

$7,068

2 x $10,000

Kaharau Angus

Gisborne

63

63

$15,603

$106,000

Kakahu Angus

Geraldine

84

76

$10,111

$26,000

Commercial

Kay Jay Angus

Masterton

42

42

$11,462

$56,000

Shian Angus

Kenhardt Angus

Nuhaka

38

38

$9,131

$16,000

Waiterenui Angus

Kincardine Angus

Queenstown

12

12

$7,979

3 x $11,000

Leefield Station Angus

Renwick

11

11

$8,045

$13,500

Martin Farming

Nelson

28

28

$7,303

$13,000

Argyle Station

Matai Mara Angus

Tutira

1

1

$8,500

Meadowslea Angus

Fairlie

75

70

$9,300

$32,000

Glen R Angus

Merchiston Angus

Marton

37

24

$7,080

$12,500

Mt Mable Angus

Kumeroa

43

42

$10,809

$18,000

Kauhoura Station

Mt Possession Angus

Ashburton Lakes

23

22

$11,200

$88,000

Hallmark Angus

Nethertown Angus

Middlemarch

25

17

$5,643

$10,000

Ngāputahi Angus

Pohangina

41

41

$9,373

$18,500

Okaka Angus

Taihape

15

11

$4,000

$6,750

Okiwi Angus

Blenheim

3

3

$5,333

$6,500

Oregon Angus

Masterton

34

32

$9,890

$18,000

Black Ridge Angus

Orere Angus

Gisborne

12

12

$11,780

$20,000

Ratanui Angus

Penvose Angus

Ranfurly

36

30

$7,271

$15,500

Creekside Farms

Peters Gentics

Millers Flat

26

17

$5,911

$10,000

Pikoburn Angus

Tuatapere

16

13

$6,844

$10,000

Pine Park Angus

Marton

31

31

$7,400

$12,000

Puke-Nui Angus

Taumarunui

31

29

$8,414

$17,000

Puketoi Angus

Ranfurly

25

21

$7,260

$11,000

Rangatira Angus

Gisborne

48

45

$11,588

$75,000

Quailburn Downs

Ranui Angus

Whanganui

35

35

$8,371

$25,000

Takapoto Angus

Ratanui Angus

Tolaga Bay

17

17

$9,812

$20,000

Dandaloo Angus

Red Oak Stud

Amberley

36

30

$7,450

$20,000

Sudeley Angus

Riverlands J Angus

Cheviot

14

14

$8,095

2 x $10,000

Rolling Rock Angus

Te Akau

20

20

$8,187

$17,000

Ruaview Simmental and Angus

Ohakune

17

15

$7,173

$13,500

Seven Hills Angus

Pahiatua

67

46

$6,539

$11,500

Shian Angus

Taumarunui

44

42

$8,892

$16,000

Delmont Angus

Stern Angus

Pleasant Point

80

76

$11,625

$64,000

Tangihau Angus

Storth Oaks Angus

Otorohanga

94

80

$7,500

$20,000

Whangara Angus

Sudeley Genetics

Leeston

46

44

$8,953

$33,000

Tarangower Angus

Taimate Angus

Ward

69

67

$9,783

$21,000

Commercial

Tangihau Angus

Gisborne

31

31

$14,225

$45,000

Shian Angus

Tapiri Angus

Masterton

15

15

$9,900

$16,500

Tarangower Angus

Mahoenui

39

36

$8,486

$15,000

Tawa Hills Angus

Motu

4

3

$7,166

$10,000

Te Kupe Angus

Stratford

4

4

$8,800

$10,700

Te Mania Angus

Cheviot

149

116

$8,278

$34,000

Te Whanga Angus

Masterton

23

19

$8,100

2 x $12,000

Totaranui Angus

Pahiatua

38

38

$8,113

$13,000

Turihaua Angus

Gisborne

67

63

$9,284

$16,000

Turiroa Angus

Wairoa

50

50

$13,830

$60,000

Atahua Angus and Merchiston Angus

Twin Oaks Angus

Ngaruawahia

50

41

$9,780

$30,000

Whangara Angus

Umbrella Range Angus

Waikaia

29

29

$7,027

$15,000

Waimāra Angus

Waikouiti

26

25

$7,664

$10,000

Waimata Angus

Gisborne

11

8

$8,810

2 x $11,000

Wairere Angus

Ohangai

21

18

$5,900

$9,000

Waitangi Angus

Waitangi

55

53

$8,283

3 x $15,000

Waitawheta Angus

Waihi

24

22

$5,618

$12,000

Te Atarangi Angus

Waiterenui Angus

Hastings

41

41

$8,200

$22,000

Commercial

Waiwhero Angus

Waipukurau

16

14

$5,990

$8,000

Commercial

Whangara Angus

Whangara

27

25

$7,680

$11,500

Woodbank Angus

Kaikoura

58

54

$9,204

3 x $15,000

ANGUS

Hill Brothers Ngahere Te Whanga Angus

Orere Angus

Commercial

Elgin Angus and Tapiri Angus

Toa Toa Farming

Mt Montrose and Pinaki Farm Commercial

Whangara Angus and Turihaua Angus

Whangara Angus, Wairere Angus, Commercial

Kaiwara Angus, Sudeley Genetics, Puke-Nui Angus

autumn bull sale results TOTAL OFFERED

AVERAGE PRICE

TOTAL SOLD

TOP PRICE

IN PARTNERSHIP WITH

STUD

LOCATION

SOLD TO

Hemingford Charolais

Culverden

47

41

$7,860

$28,000

Kia Toa Charolais

Kia Toa Charolais

Te Kuiti

30

25

$6,416

$10,500

Riini Trust

Rauriki Charolais

Waipukurau

20

14

$6,371

$10,800

Glencoe Farming

Silverstream Charolais

Christchurch

60

46

$9,098

$23,000

Campbell Lawrence

$11,200

CHAROLAIS

HEREFORD Capethorne Polled Herefords

Cheviot

13

6

$6,283

Duncraigen Herefords Foulden Hill Genetics

Wyndham

4

4

$6,000

$10,000

Middlemarch

11

9

$4,777

2 x $6,000

Glenbrae Stud

Porangahau

29

23

$8,166

$32,000

Limehills Herefords

Grassmere Herefords

Cheviot

16

11

$6,545

$12,000

Beckenham Hills

Hain Herefords

Gisborne

25

20

$7,815

3 x $11,000

Kairuru Polled Herefords

Reporoa

26

21

$7,000

$12,500

Koanui Polled Herefords

Havelock North

63

61

$10,057

$29,000

Lake Station Herefords

St Arnaud

24

18

$5,000

$10,000

Matariki Herefords

Limehills Herefords

Roxburgh

65

60

$9,950

$41,000

Tawanui Herefords

Locharburn Herefords

Cromwell

40

25

$6,660

$14,500

Idavale Station

Glenbrae Stud

Martin Farming

Nelson

10

9

$7,610

$14,000

Matariki Herefords

Matariki Herefords

Kaikoura

59

58

$8,448

$20,000

Koanui Polled Herefords

Maungahina Stud

Masterton

33

28

$7,844

$16,000

Iona Hilltop and Moana Herefords

Moana Polled Hereford Stud

Dargaville

23

20

$4,390

$7,500

Mokairau Herefords

Gisborne

29

23

$7,391

$10,000

Monymusk Polled Herefords

Te Anau

36

35

$7,288

$14,000

Campbell's Block

Okawa Herefords

Ashburton

52

46

$8,250

$33,000

Haldon Station

Orari Gorge Polled Herefords

Ashburton

30

26

$7,950

$15,000

Earnscleugh Station

Otapawa Herefords

Eketahuna

38

37

$9,489

$23,000

Mokairu Herefords

Riverlee Herefords

Kimbolton

18

16

$6,556

$12,000

Rock-End Herefords

Rock-End Herefords

Aria

24

18

$6,167

$15,000

Te Hape Station

Silverstream Charolais

Christchurch

13

10

$6,950

$10,000

Lochiel Station

Stoneburn Herefords

Palmerston

27

26

$6,738

$15,000

Richon Herefords

$13,500

Hurstpier Polled Herefords

$14,000

B and M Forsyth

Tawanui Herefords

Stratford

17

17

$7,235

Te Puna Herefords

Okaihau

14

9

$4,933

Waiau Herefords

Tuatapere

12

9

$6,388

Waikaka Herefords

Gore

20

13

$5,600

$8,500

Wilencote Polled Herefords

Gisborne

23

20

$9,500

$16,000

$5,888

$7,600

Maniapoto Trust

$4,844

$8,200

Hereheretau Station

LIMOUSIN North Island Limousin Bull Trial

North Island

10

9 SHORTHORNS

Colvend Shorthorn and Angus Stud

Ongarue

Glendhu Shorthorns

Tapanui

9

9

12

11

$6,873

$12,200

Glenrossie Beef Shorthorns and Santa Gertrudis Whangarei

10

10

$6,070

$9,000

Arapata Holdings

Longview Shorthorns

20

19 $9,000

Commercial

Kerikeri

Longview Shorthorns

Morton Shorthorns

Katikati

10

8

$5,500

Raupuha Shorthorns

Mahoenui

11

8

$4,150

Raupuha Shorthorns

Mahoenui

7 heifers

7

$2,250

Turiwhate Shorthorns

Kumara

3

3

Beresford Simmentals

Owaka

16

12

$6,300

Glenanthony Simmentals

Waipukurau

15

15

$6,666

$9,500

Glenside Simmentals

Lawrence

19

16

$7,654

$11,500 x 2

Gold Creek Simmentals

Te Karaka

22 R2

21

$6,800

3 x $11,000

Gold Creek Simmentals

Te Karaka

2 R1

2

$16,500

$27,000

Gold Creek Simmentals

Te Karaka

3 R1 heifers

3

$3,166

$3,500

Gold Creek Simmentals

Te Karaka

4 Semen packages

4

$495/straw

$850/straw

Kaingaroa Simmentals

Lake Ohia

10

10

$4,700

$6,000

Kerrah Simmentals

Wairoa

76

72

$8,640

$45,000

Glenside Simmentals

Leafland Simmentals

Mosgiel

18

10

$7,160

$11,500

Kerrah Simmentals

Lone Pine Simmentals

Roxburgh

21

13

$7,700

$21,000

Overland Simmentals

Opawa Simmentals

Cave

20

17

$6,200

$7,750

Potawa Simmentals

Pio Pio

21

18

$5,594

$12,000

Ruaview Simmental and Angus

Ohakune

12

6

$5,866

$10,000

Foulden Hill Genetics

Middlemarch

SIMMENTAL $9,500 Kirklands Simmentals

Woonallee Simmentals Cribb Farming Ruaview Simmental and Angus

Gold Creek Simmentals

SANTA GERTRUDIS Glenrossie Beef Shorthorns and Santa Gertrudis Whangarei

5

1

$4,500

5

5

$5,980

$9,700

Percy Farming

SOUTH DEVON Burtergill South Devons

Ward

13

10

$8,111

$15,000

Ipura South Devons

Te Kuiti

24

16

$6,050

2 x $10,000

Kaimoa South Devons

Eketahuna

18

16

$6,700

$10,500

Loch Lomond South Devons

Mosgiel

6

2

$5,000

$5,500 $9,000

SPECKLE PARK Aniwaniwa Speckle Parks

Gore

9

5

$6,000

Aniwaniwa Speckle Parks

Gore

2 heifers

2

$11,000

Aniwaniwa Speckle Parks

Gore

6 recipts

6

$3,250

Maungahina Stud

Masterton

15

15

$9,566

$22,500

Premier Cattle Co

$6,950

$16,000 (Angus)

Shian AngusPro

OTHER Earnscleugh Station

Alexandra

82 (Angus, Hereford & Composite)

MARKET SNAPSHOT

52

Market Snapshot brought to you by the AgriHQ analysts.

Mel Croad

Suz Bremner

Reece Brick

Nicola Dennis

Sarah Friel

Caitlin Pemberton

Deer

Sheep

Cattle BEEF

SHEEP MEAT

VENISON

Last week

Prior week

Last year

NI Steer (300kg)

5.90

5.75

5.40

NI lamb (17kg)

8.50

8.30

7.15

NI Stag (60kg)

5.50

5.50

6.10

NI Bull (300kg)

5.85

5.70

5.45

NI mutton (20kg)

6.30

6.20

4.95

SI Stag (60kg)

5.60

5.60

6.10

NI Cow (200kg)

4.50

4.20

4.10

SI lamb (17kg)

8.25

8.15

6.85

SI Steer (300kg)

5.40

5.30

4.80

SI mutton (20kg)

6.40

6.30

4.55

SI Bull (300kg)

5.25

5.15

4.70

Export markets (NZ$/kg)

SI Cow (200kg)

3.20

4.00

3.50

UK CKT lamb leg

Slaughter price (NZ$/kg)

9.12

8.07

US domestic 90CL cow

9.10

8.84

8.23

North Island steer slaughter price 6.50

South Island lamb slaughter price

Oct

Dec 5-yr ave

Feb

$/kg CW

Feb

Apr

Jun

Aug

2019-20

2020-21

Apr 2019-20

Jun

Aug 2020-21

4.50 Jun

Aug 2020-21

Last week

Prior week

Last year

Coarse xbred ind.

2.73

2.64

1.88

37 micron ewe

2.70

2.10

30 micron lamb

-

-

Last week

Prior week

Last year

Urea

799

799

572

1.85

Super

339

339

294

1.90

DAP

1055

1050

750

Grain

Data provided by

MILK PRICE FUTURES

Fertiliser FERTILISER

(NZ$/kg)

Dairy

Dec 5-yr ave

WOOL

Apr

Oct

6.0

5.00

2019-20

7.0 5.0

5.50

Feb

8.0 6.0

5.0

Dec

South Island stag slaughter price

9.0

7.0

6.00

5-yr ave

7.0

10.0

8.0

South Island steer slaughter price

Oct

8.0

11.0

9.0

6.50

9.0

5.0

$/kg CW

$/kg CW

5.00

Last year

6.0

5.0

4.00

$/kg CW

9.47

6.0

5.50

Last week Prior week

North Island stag slaughter price

11.0

7.0

4.50

NZ average (NZ$/t)

Top 10 by Market Cap

CANTERBURY FEED WHEAT

Company

Close

YTD High

Fisher & Paykel Healthcare Corporation Ltd

29.98

36.55

YTD Low 27.1

5.28

9.94

5.04

8.50

420

Meridian Energy Limited (NS)

8.00

410

Auckland International Airport Limited

7.57

7.99

6.65

Spark New Zealand Limited

4.915

4.97

4.37

7.50

$/tonne

$/kg MS

Slaughter price (NZ$/kg)

8.0

6.00

4.00

12.04

North Island lamb slaughter price

9.0 $/kg CW

9.10

Last year

10.0 12.00

Export markets (NZ$/kg) US imported 95CL bull

Last week Prior week

$/kg CW

Slaughter price (NZ$/kg)

William Hickson

Ingrid Usherwood

7.00 6.50 6.00

400 390 380

5.50

Jul-20

Sep-20

Nov-20 Jan-21 Sept. 2021

Mar-21 May-21 Sept. 2022

DAIRY FUTURES (US$/T) Nearby contract

370

Jul-21

Jun-20

Aug-20

Oct-20

Dec-20

Feb-21

Apr-21

Jun-21

CANTERBURY FEED BARLEY

Mercury NZ Limited (NS)

6.585

7.6

5.79

Mainfreight Limited

77.19

80

64.85 12.5

Ryman Healthcare Limited

13.24

15.99

Contact Energy Limited

8.38

11.16

6.6

Fletcher Building Limited

7.25

7.99

5.67

The a2 Milk Company Limited

7.63

12.5

5.42

Listed Agri Shares

5pm, close of market, Thursday

Company

Close

YTD High

YTD Low

ArborGen Holdings Limited

0.285

0.29

0.161

The a2 Milk Company Limited

7.63

12.5

5.42

Comvita Limited

3.47

3.6

3.06

Last price*

Prior week

vs 4 weeks ago

WMP

3850

3940

4100

410

15

15.5

13.75

SMP

2835

2830

2825

400

Fonterra Shareholders' Fund (NS)

3.82

5.15

3.61

Foley Wines Limited

1.64

2.07

1.6

390

Livestock Improvement Corporation Ltd (NS)

1.18

1.2

0.81

Marlborough Wine Estates Group Limited

0.29

0.65

0.24

New Zealand King Salmon Investments Ltd

1.48

1.72

1.43

PGG Wrightson Limited

3.39

3.65

3.11

Rua Bioscience Limited

0.41

0.61

0.37

Sanford Limited (NS)

5.17

5.23

4.3

Scales Corporation Limited

4.75

5.09

4.22

Seeka Limited

5.04

5.68

4.66

Synlait Milk Limited (NS)

3.87

5.24

2.85

T&G Global Limited

2.99

3

2.85

S&P/NZX Primary Sector Equity Index

14267

15491

12865

S&P/NZX 50 Index

12753

13558

12085

S&P/NZX 10 Index

12437

13978

11776

4140

4100

4050

Butter

3500

3460

3430

Milk Price

7.61

7.61

$/tonne

AMF

420

380

7.61

370

Jun-20

* price as at close of business on Thursday

WMP FUTURES - VS FOUR WEEKS AGO

Oct-20

Dec-20

Feb-21

Apr-21

Jun-21

400

4000

350

3800

$/tonne

US$/t

Aug-20

WAIKATO PALM KERNEL

4200

3600 3400 3200

Delegat Group Limited

300 250

Jul

Aug Sep Latest price

Oct 4 weeks ago

Nov

200

Jun-20

S&P/FW PRIMARY SECTOR EQUITY

Aug-20

Oct-20

Dec-20

Feb-21

Apr-21

Jun-21

14267

S&P/NZX 50 INDEX

12753

S&P/NZX 10 INDEX

12437

53

FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

Analyst intel

WEATHER Soil Moisture

Overview The polar change may have stopped on Saturday but the cold air lingers across this week, thanks to high pressure from Tasmania helping to lock it in. This means most of this week will be colder than average in New Zealand, especially south of Waikato/ Bay of Plenty. Expect black ice and frost, but there is some sunny weather on the way for sheltered areas, although coastal clouds may linger in some places like the eastern North Island. Most of NZ leans drier than average this week due to the belt of high pressure. However, a low around northern NZ with some sub-tropical connections will drive in some rain and showers to the northern coastlines (Northland to East Cape).

Boom-bust or rising plane for lamb?

08/07/2021

L Source: NIWA Data

Highlights

Windy in the upper North Island this week due to the squash zone between northern low pressure and high pressure elsewhere.

Gales gusting to 80km/h are possible, mostly in exposed northern coastal areas for a time. Otherwise, winds are light this week for most.

Colder than usual this week by day, due to the high pressure zone locking in last week’s polar changes. In saying that, it’s not an overly dramatic week temperaturewise, but heavy to severe frost is likely well inland (Twizel, for example).

14-day outlook

Severe frost through inland areas of the South Island, with overnight lows closer to -6 to -10degC in places like Tekapo, Twizel and surrounds. Low pressure near northern NZ is worth monitoring Monday to Wednesday, just in case it triggers any highly localised severe weather.

7-day rainfall forecast

0

This week is dominated by high pressure, except for the top half of the North Island, which is on the edge of low pressure. This low pressure zone will slide down between the Far North and East Cape this week, as high pressure dominates elsewhere. This weekend that high slides south of NZ and may allow a wetter set up for NZ – wet nor’easters in the east and another low in the north, potentially lingering through next week, albeit slightly milder.

5

10

20

30

40

50

60

80

100

200

400

High pressure covers most of NZ this week, meaning most regions will be drier than average. A low north of NZ/around northern NZ will be blocked by this high pressure zone and will create a ‘squash zone’ of windier weather. In this squash zone – basically the Far North, Northland, north Auckland eastern Coromandel Peninsula, East Cape and Gisborne – rainfall numbers will lift up. Check your local RuralWeather.co.nz forecast for specific rainfall totals where you are.

Weather brought to you in partnership with weatherwatch.co.nz

AMB prices have increased by the largest degree ever seen for this time of the season. When any market breaks away from the norm, a level of concern starts to creep in and comparisons to previous highs are made. Often the focus lies with where it all went wrong, rather than the potential of a new trend developing.

Plenty of comparisons have been drawn with the current market and the heady heights lamb flew to in late-2019.

Back in 2019, China suddenly threw money at New Zealand product on the realisation they were on the brink of a protein shortage.

Almost overnight they caught other key markets off guard, snavelling up not only lamb, but mutton and beef too. Markets jumped so quickly it wasn’t long before livestock was swarming into the processing plants, filling these buying orders with ease and pressuring farm gate prices.

However, global lamb prices were already on a rising plane before those frantic few weeks in late-2019. Numerous global reports had been released focusing on lifting sheepmeat consumption in emerging markets and the opportunities that existed. AgriHQ data reflects these improvements.

Average export values and farm gate lamb prices have been edging higher yearon-year since 2016. Some of this upside is invariably linked to falling lamb numbers within NZ. After bottoming out in mid-2016 at an annual average of $5.38/kg in the North Island, farm gate lamb prices quietly stepped higher.

There were moments where lifting seasonal production saw prices step back, but it was never for long. The annual lamb price in 2017 was $1/kg higher year-onyear. The same upside was recorded in 2018. By 2019 that average was closing in on $8/kg.

The quick unravelling of the market in late-2019 indicated to some that the good times were over. But many were simply focusing on that rough period, rather than the possibility of it being a blip in a much

Almost overnight they caught other key markets off guard, snavelling up not only lamb, but mutton and beef too.

Regardless, concern that the global bubble could burst is already filtering into the market. It raises the question, have we as an industry moved away from being price takers?

Market dynamics compared to 2019 are somewhat different.

Upside has been steady and sustainable and it’s occurring in our off-season, limiting any ability to push the market over the edge with surging supplies. Overseas demand is broad-brushed too, encompassing all key markets, not just China.

Buoyed by fiscal policy and improved cash positions post-covid-19, global consumers are choosing to spend their money on increased purchases of red meat protein.

While it is inevitable that farm gate prices will ease as processing supplies seasonally lift toward the end of the year, the key will be watching where export values and, therefore, farm gate prices bottom out. An export value holding above $9.50/kg by early 2022 would be the first indication the lamb market is putting covid-19 behind it and is back on a rising plane.

KAAHU GENETICS – OPEN DAY KAAHU WHITE SHEDDING SHEEP

For commercial farmers/non ram breeders – Wednesday 21st July 1pm to 3pm at 154 Whakamaru Road, Whakamaru

1pm – Introduction / Q + A – View sheep ■ Top production SIL recorded ■ Eczema tolerance Ramguard testing @ .33 ■ Worm resistance tested

■ High growth rate with meaty carcasses ■ Low input high output

Phone Murray Sargent 027 392 7242 Email murraysargent@hotmail.com Follow us on Alan Aldridge 027 472 0901

Kevin Mortensen 027 473 5858

Cam Heggie 027 501 8182

LK0107791©

Wind

Highlights/ Extremes

Temperature

Mel Croad mel.croad@globalhq.co.nz

larger, longer-term improvement in the global market for lamb.

It’s difficult to imagine a 2020 without the emergence of covid-19. It clearly derailed the pricing upside the industry had been enjoying for the past four years.

However, the tide has turned in 2021, with a much-improved position for lamb both globally and locally since late April. A portion of this improvement is connected to tight global lamb supplies, centred squarely on NZ. Supply contracts from various meat companies suggest we are heading back towards the heights realised in 2019.

Though these prices involve a much smaller portion of our kill this time around.

54

SALE YARD WRAP

Cold start to hot markets Those on the ground at Temuka reported one of the coldest sale days down at the yards, as a heavy frost and cold temperatures lingered throughout the day. But the cold day did little to keep the heat out of the markets, as prime ewes sold to heights of $234-$308 and prime lambs reached $222-$224.

Venturing into the North Island and one of the feature sales was the monthly Matawhero store cattle sale. Over 1200 cattle was a reasonably big entry for the time of year and later-born traditional R2 steers and heifers were front and centre.

The market was positive and already showed signs of a strong spring ahead. But the big talking point to finish the week was the phenomenal amount of store lambs offered at the Feilding sale yards on Friday.

A capacity yarding of more than 20,000 were penned, as vendors looked to take advantage of the strong store market values that have been a hot topic the past few weeks.

NORTHLAND Kaikohe sale • R2 heifers made $2.60/kg • R1 Angus and Charolais bulls earned $2.95-$2.98/kg • R1 Angus heifers realised $2.98/kg, and beef-cross $2.60-$2.65/kg • R1 Angus steers mostly fetched $3.20-$3.25/kg and good whiteface to $3.40/kg • Good boner cows sold to $2.00/kg and lighter types $1.85/kg Throughput lifted to 780 head at KAIKOHE last Wednesday, PGG Wrightson agent Vaughan Vujcich reported. The market was mostly on par, though enthusiasm was a little more subdued due to cold weather.

The top end of R2 steers sold to $2.98/kg, though most made $2.80-$2.86/kg. R2 beef-cross bulls earned $2.50$2.60/kg. A consignment of 100 cows vetted-in-calf to Charolais bull were offered due to a change in farming policy. Top traditional cows achieved $1600-$1700 and Hereford-Friesian $1400-$1450.

Wellsford store cattle • R2 Hereford-Friesian steers, 363-533kg, were well-contested at $2.83-$2.92/kg • R2 Hereford-Friesian heifers, 379kg, strengthened to $2.82/kg • R1 Angus steers, 264kg, fetched $3.14/kg • R1 Hereford-Friesian steers, 169-188kg, softened to $3.83-$3.95/ kg Throughput swelled to 886 head at WELLSFORD last Monday with a consignment of cattle from further north bumping up tallies. All sold to good demand. R2 Anguscross steers, 436-470kg, managed $2.90-$2.91/kg. Angus and Angus-cross heifers, 328-407kg, achieved $2.78-$2.84/ kg and Hereford-dairy, 359-402kg, $2.69-$2.79/kg. R1 Angus and Angus-Hereford steers, 277-283kg, traded at $2.58$2.67/kg with 148kg at $3.45/kg. Hereford-dairy sold in two bands with better types, 187-223kg, at $3.21/kg while lesser sorts, 188-214kg, earned $2.62-$2.66/kg. Angus and Angus-Hereford heifers, 253-299kg, fetched $2.55-$2.61/kg.

Angus-cross bulls, 177kg, realised $3.25/kg with Friesian, 145-179kg, at $2.79/kg to $2.97/kg. Read more in your LivestockEye.

AUCKLAND Pukekohe cattle • Better weaner steers earned $4.22/kg to $4.44/kg, $570-$600 • Best weaner heifers sold to $3.24/kg to $4.43/kg, $490-$585 Demand for prime cattle was strong at PUKEKOHE on Saturday 3rd July. Prime heifers lifted to $2.85-$2.87/kg, $1550-$1605, and steers $2.84-$2.86/kg, $1475-$2010. Good quality store cattle sold well though lesser types remain difficult to move. Medium R2 steers fetched $2.75-$2.85/kg, $1280-$1550.

COUNTIES Tuakau sales • Hereford-Friesian steers, 613kg, made $2.89/kg • Prime steers reached $3.18/kg • Good cryptorchid store lambs earned $164 • Top prime ewes realised $207 TUAKAU drew a big offering of store cattle last Thursday and the market was steady, Carrfields Livestock agent Karl Chitham reported. The 900-head yarding included 445kg Hereford-Friesian steers at $2.70/kg, while 344kg Hereford-Friesian made $3.23/kg and 180kg, $670. Heifers, 360-410kg, realised $2.68-$2.77/kg and 200-250kg managed $570-$640. Prime steer and heifer prices lifted by 10c/kg on Wednesday. A single Limousin steer, 665kg, made $3.18/kg and other 580-700kg steers returned $2.96-$3.08/kg. Prime heifers, 540-580kg, fetched $2.83/kg to $3.01/kg and heavy cows, 550-650kg, $2.15-$2.30/kg. The top pen of prime lambs fetched $205 on Monday with good to heavy at $174-

$192. Medium-good store lambs earned $138-$158. Heavy prime ewes realised $175-$207 and medium, $155-$165.

WAIKATO Frankton cattle 6.7 • Most R2 Hereford-Friesian steers, 325-493kg, fetched $2.92-$2.98/ kg • R2 red Hereford-Friesian bulls, 390-470kg, held at $2.81-$2.82/kg • Autumn-born one-year Charolais cross steers, 326-355kg, were well-contested at $3.28-$3.37/kg Store cattle numbered 545 head and quality sold to strong demand for PGG Wrightson at FRANKTON last Tuesday. R2 Hereford-Friesian heifers, 399-420kg, eased to $2.74-$2.78/kg. Autumn-born yearling red HerefordFriesian steers, 302--321kg, managed $2.80-$2.81/kg.

Better R1 steers, 189-215kg, returned $600-$800. Heavier Hereford-Friesian heifers, 220kg, returned $700, $3.18/kg.

Eight Hereford-Friesian, 162kg, topped the bull section at $640, $3.95/kg and Friesian, 147kg, traded at $340, $2.31/ kg. Autumn-born weaner heifers, 104-131kg, realised $410$500 with beef-dairy and exotic-cross bulls, 106-116kg, at $500-$545. Friesian, 108-109kg, returned $405-$485. Prime throughput lifted to 92 head. Charolais-cross steers, 589647kg, returned $2.88-$2.92/kg and beef-dairy, 621-822kg, held at $3.02-$3.12/kg. Seven Hereford-Friesian heifers, 490kg, firmed to $2.82/kg. Boner Friesian cows, 456-606kg, traded at $2.02-$2.17/kg. Read more in your LivestockEye. Frankton cattle 7.7 • R2 Angus-cross and beef-dairy steers, 400-470kg, held at $2.78$2.85/kg • Autumn-born yearling Hereford-Friesian heifers, 326-347kg, fetched $2.84-$2.88/kg • R1 Hereford-Friesian heifers, 209-273kg, earned $620-$790, $2.82$3.11/kg New Zealand Farmers Livestock penned just under 290 store cattle at FRANKTON last Wednesday. Some fresh faces and a good online presence kept competition strong.

R3 Hereford-Friesian steers, 513kg, managed $2.88/kg. R2 Hereford-Friesian heifers, 389kg, returned $2.83/kg. R1 and autumn-born weaner pens accounted for 60% of the offering. Beef bred steers, 174-246kg, improved to $2.80$2.93/kg. Beef-cross and exotic heifers, 215-274kg, realised $2.76-$2.81/kg. Heavier Friesian bulls, 253-320kg, held at $685-$865, $2.70-$2.71/kg. Autumn-born weaner heifers, 112-124kg, were consistent at $460-$490. Hereford-Friesian bulls, 106kg, achieved $560 with Friesian, 98-137kg, at $385-$465. Prime throughput lifted to 92 head. HerefordFriesian steers, 502kg, realised $2.86/kg with same breed heifers, 475-511kg, at $2.86-$2.89/kg. Hereford-dairy steers, 570kg, firmed to $2.86/kg. Boner crossbred heifers, 448456kg, improved to $2.60-$2.61/kg. Read more in your LivestockEye.

KING COUNTRY Te Kuiti sale • Prime ewes held at $185-$190 and medium $172-$182 • Top store male lambs made $178-$182 • Top store ewe lambs sold well to $173-$188 • R3 steers mostly realised $2.90$2.98/kg and R3 Angus heifers $2.80/kg A small yarding of ewes was sought after at TE KUITI on Friday 2nd. Capital stock Coopworth ewes made $182$216, and a good line of mixed age 2th to 5yr Romney ewes fetched $238. Approximately 5000 sheep were yarding last Wednesday. Cold weather and a dip in quality eased prices.

Top prime lambs realised $190-$200, medium $165$172 and light $146-$152. In the store pens, mixed-sex lambs ranged from $145-$165. There was around 300 head of cattle penned on Friday. R2 Angus steers, 385-386kg, were secured for $3.11-$3.20/kg and 437kg at $3.05/kg. R2

Hereford-Friesian and South Devon-cross heifers, 315347kg, made $2.88-$2.92/kg.

BAY OF PLENTY Rangiuru cattle and sheep • Prime Friesian bulls, 610kg, traded at $3.16/kg • Prime Charolais steers, 553kg, managed $3.15/kg • Prime Angus and Angus-Hereford steers, 494-570kg, sold for $2.94-$3.05/kg • Prime lambs varied from $143 to $201 with a solitary prime wether $230 A keen crowd turned out at RANGIURU last Tuesday.

Most of the large R2 section were heifers where the main highlight was 50 Angus, 340-464kg, that generally earned $2.79-$2.82/kg. Several pens of Hereford-Friesian heifers, 428-451kg, sold along similar lines at $2.77-$2.83/kg but a few Hereford-Jersey, 441kg, topped the section at $2.88/ kg. Quality R1 traditional steers, 170-226kg, often earned $570-$660 with the most common $/kg rates $3.30-$3.35/ kg. Dairy-beef types were more varied, but the best pens usually commanded $2.87-$2.93/kg. Read more in your LivestockEye.

POVERTY BAY Matawhero cattle fair • R2 traditional steers above 380kg made $3.11-$3.15/kg • Better R2 exotic bulls sold to $2.78-$2.83/kg • R1 traditional and exotic steers, 230-270kg, fetched $805-$900, $3.30/kg to $3.60/kg • Empty mixed-age cows in better condition traded to $915-$955, $2.06-$2.08/kg The market lifted at the MATAWHERO cattle fair last Tuesday despite light weights. R2 cattle made up the bulk of the yarding and the traditional steer average jumped to $3.24/kg. R2 traditional heifers, 340-370kg, fetched $2.60-$2.64/kg with the balance typically, $2.45-$2.55/ kg. R1 traditional heifers were all under 200kg and sold accordingly at $300-$410. Mixed-age cows vetted-in-calf to Angus and due November or December were secured for $1040-$1140. R3 traditional heifers vetted-in-calf to Angus and due early November, $1000. Read more in your LivestockEye. Matawhero sheep • Heavy prime lambs firmed to $200-$224, medium $165-$192 and light $120-$129 • Prime ewes made $176-$205 Store male lambs firmed at MATAWHERO last Friday with the top end to $180-$194, medium $141-$155 and light $110. Heavy ewe lambs held at $161-$171.50, medium $135-$157 and light $112-$121. Top scanned-in-lamb ewes sold to $194-$211 and the next cut $166-$175. Read more in your LivestockEye.

TARANAKI Taranaki cattle • The top end of R2 heifers firmed to $2.78-$2.87/kg • R1 steers above 200kg made $710-$810 with the next cut at $550$650 • R1 Speckle Park-cross heifers, 234kg, fetched $690, $2.95/kg • Prime Hereford-Friesian heifers made $2.84/kg to $2.95/kg There was a yarding of 260 cattle at TARANAKI last Wednesday and the market continued to track upward. A good offering of special entry R3 Hereford-Friesian steers, 592-637kg, sold well with most secured for $3.09-$3.14/kg and 487-514kg Hereford-Friesian heifers $2.92-$2.98/kg. R2 steers were of heavier weights and nearly all lines shifted for $2.91-$3.01/kg. Read more in your LivestockEye.

55

FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021

HAWKE’S BAY Stortford Lodge prime cattle and sheep • Heavy mixed-age ewes held or lifted at $190-$206 • Good mixed-age ewes held at $144.50-$165 • Most light-medium mixed-age ewes eased to $110-$118.50 • Top prime lambs earned $160-$205 • Medium prime lambs were consistent across all classes at $148$150 Ewe throughput increased to just over 990 head at STORTFORD LODGE last Monday and sold to strong interest from buyers. Very heavy mixed-age ewes reached $238. The top end of very good ewes firmed to $181-$189 while the balance held at $171-$179. Medium types also held at $137-$140 with tail end types at $79-$98. Lamb throughput lifted to 120 and included several store type lambs due to a farm sale. All lambs traded on a solid market. Light-medium male and mixed-sex eased to $142-$145 with lighter ewe lambs at $100. No cattle were presented. Read more in your LivestockEye. Stortford Lodge store cattle and sheep • R3 Angus steers, 514-600kg, firmed to $3.30-$3.34/kg • R2 Angus steers, 411-465kg, also firmed to $3.20-$3.26/kg • Five-year Romney ewes, scanned twins to Poll Dorset, reached $227 • Good male lambs came back to $165-$170 • Good ewe lambs also came back to $148-$160 Traditional cattle drew in buyers at STORTFORD LODGE last Wednesday, though tallies were moderate at 375. R3 Angus-Hereford steers, 468-488kg, returned $3.15-$3.21/ kg while beef-dairy traded from $2.64/kg to $2.83/kg. R2 Hereford-Devon steers, 495-543kg, sold well at $3.06-$3.08/ kg and R2 Angus heifers, 325-413kg, firmed to $2.58-$2.64/ kg.

Sheep stretched out from one end of the yards to the other as a total of 13,300 were penned. Breeding ewes made solid returns for the variety on offer. Mixed-age Romney and Coopworth, scanned with triplets, reached $210$213 though lesser mixed-age dropped to $156. Five to 6-year Romney, scanned 172%-176% to Suffolk and Poltex, returned $188.

Lamb values came back $8-$15 for the majority, though top male lambs firmed to $170-$194. Four pens cracked $200 – two ram lamb lines reached $211-$217, and two ewe lamb lines $204-$205.50. Medium male and ewe lambs dropped to $140-$150.

Read more in your LivestockEye.

MANAWATU Feilding prime cattle and sheep • Angus steers, 658kg, were pushed to $3.20/kg • Beef and beef-cross steers, 765-773kg, managed $3.11-$3.12/kg • One Angus heifer, 810kg, reached $2.96/kg • Lighter traditional heifers, 430-550kg, earned $2.67-$2.78/kg Another big yarding of lambs and ewes converged on FEILDING last Monday. Buyers made short work of the very heavy pens that firmed to $200-$228 while heavy pens ranged from $166 to $199. Lines of heavy ewes were low in number and sold for $192-$193 while good types that made up the bulk of the tally traded at $140-$186. The top cut of the heavy traditional cows over 600kg sold well at $2.34$2.39/kg.

Most other traditional and dairy-beef cows, 500-600kg, returned $2.16-$2.24/kg although one Angus managed $2.56/kg. Some 581kg Friesian managed $2.06/kg but the lion’s share of the dairy section was 450-530kg that fetched $1.71/kg to $1.94/kg. Read more in your LivestockEye. Feilding store sale • R3 traditional steers, 480-595kg, lifted to $3.20-$3.35/kg • R2 Friesian bulls, 425-505kg, made $2.90-$3.00/kg • R2 traditional heifers, 350-460kg, were mainly $2.80-$2.90/kg • Store male lamb average eased to $168 • Store ewe lamb average eased to $151 A mixed market met the 1500 store cattle at FEILDING.

In-calf traditional cows, 515-550kg, were $2.20-$2.25/ kg, $1160-$1200. R2 steers often fell short of vendor expectations, but the 360-525kg traditional lines that did sell were $3.00-$3.10/kg. R2 Hereford-Friesian heifers, 375470kg, were $2.75-$2.85/kg.

A big line of 215kg R1 Angus steers made $910, $4.20/kg.

R1 Hereford-Friesian heifers, 180-305kg, were $2.95-$3.05/ kg. A marathon sheep sale was held with 20,000 lambs and more than 3000 ewes yarded. For the male lambs, a few of the heaviest pens were $185-$205, shifting to $170-$180 for good lines, $150-$165 for mediums and $130-$140 for the lights. Ewe lambs maxed out at $185-$188, but good lines were mainly $160-$170, mediums $145-$155, with $120-$135 covering the lighter end. SIL ewes met a steady market.

The better lines were $235-$250, around $180-$210 for medium sorts, the lesser types $150-$175. Read more in your LivestockEye Rongotea cattle • R2 Friesian bulls, 467kg, made $2.53/kg • Better R2 Hereford-Friesian heifers sold to $2.41/kg and 357kg Angus-cross, $2.33/kg • R1 Simmental-cross heifers, 239kg, achieved $2.72/kg • In-calf Hereford-Friesian and Speckle Park heifers realised $1260$1370 Throughput lifted at RONGOTEA last Tuesday, New Zealand Farmers Livestock agent Darryl Harwood reported.

R2 Hereford-Friesian steers, 324-570kg, varied from $2.38/ kg to $2.84/kg and Speckle Park-cross, 455kg, $2.73/kg. R1 Angus-cross bulls, 307kg, achieved $2.54/kg and 158-180kg Hereford-Friesian steers $2.50/kg to $2.91/kg. Autumnborn Charolais steers, 108kg, sold to $590 and 102kg Charolais-cross heifers $510.

CANTERBURY Canterbury Park cattle and sheep • Prime Angus steers, 465-509kg, fetched $3.09-$3.10/kg • One heavy prime Charolais heifer, 690kg, earned $3.08/kg • Prime traditional and dairy-beef heifers over 500kg returned $2.86-$2.96/kg • R3 Angus steers, 452-456kg, fetched $3.01/kg All sections were competitive at CANTERBURY PARK last Tuesday. The best of the higher yielding steers included Simmental-cross and Hereford-Friesian, 638-690kg, that fetched $3.00-$3.03/kg while other lines over 500kg with good yield typically sold for $2.88-$2.98/kg. R2 Angus and Angus-Hereford steers, 321kg, made $2.65/kg. Plenty of medium-sized, woolly Corriedale featured in the store lamb pens and mostly made $143-$152 while similar meat breeds earned $134-$148.

The very heavy end of the prime lambs reached $200$212 with most of the section good and heavy types that earned $146-$199. The top 10% of the ewes were very heavy lines that earned $211-$290 with the balance generally $130-$198. Read more in your LivestockEye. Coalgate cattle and sheep • Prime Angus-Hereford steers, 476kg, earned $2.92/kg • Prime Hereford-Friesian steers, 461-562kg, made $2.72-$2.80/kg • Prime traditional and Angus-Friesian heifers, 501-545kg, managed $2.80-$2.84/kg • R2 Hereford-Friesian steers, 298-348kg, fetched $2.73-$2.75/kg • 300 in-lamb ewes commonly made $218-$258 The sheep pens continued to have a good following at COALGATE last Thursday even if prices at the top end of the prime pens didn’t approach the $300 heights of the previous sale.

Amongst the store lambs, shorn males remained in high demand but the top tier of $154-$170 also included plenty of scanned dry ewe lambs. The balance mostly earned $110-$149. The top prime lambs earned $202-$228 and the balance mostly made $140-$188. The best ewes sold for $269 while other heavy pens earned $195-$258 and good types $150-$189. Friesian cows, 500-556kg, sold well at $1.79-$1.86/kg. Read more in your LivestockEye.

SOUTH-CANTERBURY Temuka prime cattle and all sheep • Good-yielding steers, 565-665kg, reached $2.91-$2.98/kg • Angus-Hereford steers, 528-580kg, returned $2.81-$2.90/kg • Angus bulls, 620-763kg, fetched $2.81-$2.87/kg Most pens were well-contested at TEMUKA last Monday.

Angus heifers mostly sold in two cuts: 517-542kg at $2.73$2.74/kg and $2.63-$2.69/kg for those 488-490kg. The rest were typically heavier Hereford-Friesian, 535-565kg, that returned $2.62/kg to $2.84/kg.

The heaviest Friesian cows, 661kg, made $1.94/kg while the remainder over 525kg generally managed $1.69-$1.76/ kg. Medium-good store lambs often earned $138-$152 with heavy pens up to $176. The top 100 prime lambs sold within a tight range of $222-$224 and the balance was evenly spread out from $152 to $216.

Most of the ewes traded above $160 and included one pen of four that made it to $308 while a good portion returned $200-$282. Read more in your LivestockEye. Temuka store cattle • R2 Angus steers, 446kg, sold to $2.85/kg • R2 Angus heifers, 451-491kg, managed $2.65-$2.73/kg Short-term cattle proved particularly popular at TEMUKA last Thursday.

R2 Hereford-Friesian, 378-414kg, contributed most of the steers and traded at $2.67-$2.78/kg. Angus and AngusHereford heifers, 293-385kg, returned $2.52/kg to $2.68/kg while Hereford-Friesian, 355-488kg, sold along similar lines at $2.54-$2.63/kg with the occasional lesser pen at $2.42$2.48/kg.

R1 steers included 288kg Murray Grey-cross that made $800 while lighter Angus and Hereford-Friesian, 228-244kg, fetched $700-$780. A level of $560-$625 was common ground for 185-226kg Hereford-Friesian and Angus and Angus-Hereford heifers. Limousin-cross featured in the bull pens and the heaviest 264kg line fetched $680. Read more in your LivestockEye.

OTAGO Balclutha sheep • Top store lambs made $130-$150, medium $100-$125 and light $80-$90 A small yarding of prime lambs sold to good demand at BALCLUTHA last Wednesday. The top end made $170-$220 and medium types $150-$160. There was a large yarding of prime ewes and results eased. Heavy ewes traded to $160$200, medium $120-$150 and light $80-$100.

SOUTHLAND Lorneville sale • Top store lambs firmed to $130-$145, medium $115-$125 and light $100-$110 • Better local trade rams made $60-$108 • Prime heifers, 500kg, earned $2.65/kg • R2 Friesian steers, 350kg, fetched $1.86/kg • R1 Friesian bulls, 246kg, realised $2.30/kg A medium yarding of ewes and lambs traded on a solid market at LORNEVILLE last Tuesday. Heavy prime ewes sold to $210-$240, medium $180-$200 and light $120-$160.

Heavy lambs made $185-$200, medium $160-$180 and light $140-$150. R2 Hereford-Friesian heifers, 370kg, fetched $2.16/kg, and 435kg Hereford $2.00/kg. R1 beef-cross steers, 161kg, sold to $400 and 178kg heifers $410. Better R1 Angus-cross bulls, 264kg, realised $635, $2.41/kg.

Charlton sheep • Heavy prime lambs firmed to $170-$187, medium $150-$165 and light $140-$150 • Top store lambs sold to $130-$147, medium $120-$128 and light $88-$105 A large yarding of prime ewes held at CHARLTON last Thursday and heavy types traded at $230-$246, medium $185-$210 and light $150-$180.

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Markets

56 FARMERS WEEKLY – farmersweekly.co.nz – July 12, 2021 SI STEER

NI LAMB

SI MUTTON

($/KG)

($/KG)

($/KG)

5.40

8.50

6.40

R2 TRADITIONAL STEERS, 310KG AVERAGE, AT MATAWHERO ($/KG)

3.24

$2.79-$2.82 high $259-$267 R2 Angus heifers, draft Borderlights Annual Romney ewes, SIL 200%, at 340-464kg, at Rangiuru Temuka in-lamb ewe fair

ACROSS THE RAILS

Policy changes draw breeding ewes Suz Bremner suz.bremner@globalhq.co.nz

C

HANGES in farm policies led a number of breeding ewes to the Temuka sale yards for the annual ewe fair, though volume continues to fall away year-on-year.

Fairs accommodating the scanned-in-lamb and run-withram lines have become a rarity in modern-day livestock trading in New Zealand and Temuka is one of few yards to still hold a standalone fair.

In 2016, the fair was pushed out a month to fit in better with scanning and tallies grew from an average of 4000-5000 over the prevailing five years to 7000.

In 2017, volume peaked at 11,000 but has been steadily declining since then and this year volume was down to 4000 head.

As well as the general reduction in breeding ewe volume, also factored in for 2021 was the very dry autumn, which forced many farmers to offload ewes to the processors earlier, though they were rewarded with good mutton schedules, which were also an attraction.

What this year’s fair lacked in volume, it made up for in price levels, as the market on Wednesday proved to be the best seen over the past 10 years, buoyed by low volume, strong mutton schedules and positive outlooks for lamb.

PGG Wrightson regional manager Joe Higgins says buyers were comfortable bidding up.

“The lamb market is looking solid and that meant buyers placed a couple of extra bids,” Higgins said.

“We could’ve doubled the

yarding and easily sold it as a big crowd had buyers from North Canterbury to Palmerston and plenty of places in between.

“While good processor values underpinned, they really did not get a look in.”

The recent buy-out of Peter Walsh and Associates by Hazlett Limited meant Hazlett offered up 1800 ewes and agent Snow Buckley says that while he thought the fair had potential to be stronger, the results still pleased vendors.

“With all the talk of strong lamb schedules and good returns on ewes sold, my expectations were for a market around $20 stronger.

But by the time the lambs from these ewes are finished who knows where the market will be at,” Buckley said.

He says the quality was very good and a number of lines were purchased in January from genuine breeders and this fair was targeted to sell at.

“Those sellers that bought ewes in January at around $130-$180 all made good margins. But they are genuine sheep from genuine breeders and will benefit any flock going forward,” he said.

Bidding was very consistent and through the age groups most of the lines traded from $230 to $270.

That was a lift of $40-$60 on 2020 results, which had held at around $160-$230 since the lifts seen in 2018. Prior to that, ranges of $100$170 were common, aside from 2011 when the market jumped up to $160-$220, though quickly fell away in 2012 to $100-$150.

Higgins says that the demand for older ewes was notably strong.

“The better ewes were the older lines and there was a lift in competition for the annual draft lines in particular,” Higgins said.

Standout lines included capital stock mixed-age TexelRomney ewes from Bonsall Farm

SOUGHT AFTER: The volume of stock yarded at the annual Temuka ewe fair was down but the quality was good and interest was high.

With all the talk of strong lamb schedules and good returns on ewes sold, my expectations were for a market around $20 stronger.

Snow Buckley Hazlett Partnership in Timaru, which Buckley says were compact sheep with a lower scanning percentage of 145% to a Suftex ram. They

exceeded expectations at $230$236.

Two and three-shear BorderRomney ewes from Hartnett Farms Limited, Timaru, sold in four cuts and were all first-cross. This breed is very popular in the South Island and this offering were scanned-inlamb to Poll Dorset and Cheviot rams at 178% and went under the hammer for $240-$244.

The top price in the younger pens though was $270, which was paid for a line of three-shear Perendale-cross ewes from Riverlee Farm in Mayfield. These were scanned at 175% to Suffolk and Kelso rams.

Westmere Farm Co, Ashburton, offered up annual draft Border-

Romney and Romney and posted great results for the five and sixyear-old ewes.

Border-Romney were scanned at 200% to Southdown and Poll Dorset and sold for $259-$267, while Romney ewes scanned 190% to Border Leicester reached $250$257.

Top price in the annual draft section went to Fourwind Partnership, Sherwood, as fiveyear-old Coopdale, scanned 235% to Suffolk and Suftex, topped the sale at $278. suz.bremner@globalhq.co.nz

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