Farmers Weekly NZ May 27 2024

C

Spiralling losses sting honey sector

Richard Rennie NEWS

LOSS-MAKING honey returns are sending shockwaves through the industry from corporate board rooms to family-owned enterprises, with beekeepers abandoning hives, businesses liquidated and operations shut down.

The sector faces a mounting toll of liquidations and bankruptcies with honey values reverting to those experienced in the early 2000s.

Jason Prior, owner of Horowhenua-based Down Under Honey, said there had been a mass exodus of beekeepers from the sector in the past year, with some quitting hives for as low as $150 each.

“That really is only the value of the timber work, with no value placed on the bees themselves.

“A few years ago, they would have been worth $600 a hive. But at a cost of about $500 a year to run, it gets to the point it is cheaper to walk away.”

Jane Lorimer, president of NZ Beekeeping, said she has spoken to beekeepers exiting the sector who have accepted $1 a hive, simply to be shot of their operation.

The number of hives held in New Zealand reached a peak of almost a million in 2019 at the height of the mānuka honey boom,

but have been steadily declining, with latest estimates putting them at almost half that today.

With that the number of beekeeping enterprises has also fallen, now back near 2019 levels, with a significant slide in large scale operators. The number of those holding 500 or more hives has plummeted by 30% in the past two years.

“The industry is still in a bad way. Exporters have been saying things are picking up, but I can still see a couple of years before we start to improve.”

Like Prior, she said returns for table honey of only $4-$5 per kilogram are well below the $8 per kg breakeven value required. Those prices are similar to 2009 returns.

Mānuka honey, which has propped up the sector’s higher value returns over past years, is also under extreme price pressure.

Prior said any beekeeper wanting more than $10 a kilogram for high-grade Mānuka is unlikely to get a call back from any interested processors at present.

High UMF grade honey was struggling to sell in a constrained consumer market, particularly in China and Europe.

“It is just fortunate the Arab markets are buying at present,”

Prior said.

At the corporate level, Comvita revised downwards its revenue

page 3

Faster finishing the wave of the future

Finishing Speckle Park-cross cattle in two years is the aim of Southland farmers Gavin and Kylie Tayles, at Riversdale, pictured here with their farm manager, Troy Dolton, left. The Tayleses rear and finish 200 crossbred steers and heifers annually into the Speckle Beef prime programme, a new brand managed by Neat Meat for high-end restaurants and specialty butchers.

LIVESTOCK 44-49

SECTORFOCUS

Statisticians probe why last year’s provisional sheep count was out by 700,000.

NEWS 3

Always Clement weather on the West Coast

When Paul and Abby Clement bought a farm on the West Coast they didn’t know much about the region and faced a baptism of fire.

DAIRY 22-32

Fonterra’s proposal to exit its consumer brands leaves farmers with questions.

NEWS 4

Laurie Boniface is retiring after decades tutoring the country’s wool classers.

PEOPLE 20

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ISSN 2463-6002 (Print) ISSN 2463-6010 (Online)

Contents

1-15

News in brief

Milk positive

Milk prices finished the dairy season on a high, up 3.3% in the latest GTD.

Farmers are really good at assessing risk, and they do it ever y day. It’s almost natural. You don’t even think about it

16-19 People

Focus

Farmers

Estate

20

21

. 22-32

33-36

37-38

39-41

41-43

50-55

56

COHESION: Western Bay of Plenty group Wai Kōkopu adviser Alison Dewes is calling for greater cohesion between catchment groups and local councils to keep focus and momentum. STORY P14

The final auction before the end of the New Zealand dairy season saw prices lift to settle at US$4239/t. Prices were up across all products aside from cheddar, which remained unchanged.

Developing leaders

A new study looking at the state of food and fibre sector governance has highlighted the need for collaboration to develop leaders.

AGMARDT has released the report Pathways to Governance, which it said highlights the challenges and opportunities for food and fibre sector governance. It shows the need for strategic support at all stages of governance development and the need to move beyond traditional training methods to include practical experience.

Crop value down

The latest SunGold kiwifruit licence tender round has closed with values considerably down on last year’s auction prices.

The annual bidding round was for 153 hectares of restricted licence for growers wanting to cut over their crop from Green to SunGold, and a further 104ha of unrestricted SunGold plantings. The latter settled at $424,000 a hectare compared to last year’s value of $608,695 a hectare, excluding GST.

Farmer guilty

A Taranaki dairy farmer has been placed on four months’ home detention and disqualified from being in charge of animals for 18 months after failing to provide adequate feed and welfare to his cattle. Ray Ernest Nairn, 56, was sentenced in the New Plymouth District Court on May 21 after pleading guilty to eight charges under the Animal Welfare Act.

Rob Hewett has been a fixture in the boardrooms of farming companies and co-ops for almost two decades He talks with Bryan about the importance of good governance, how a board interacts with management and how market evolution is tackled by NZ exporters

Wake-up call for those counting sheep

Neal Wallace NEWS Livestock

STATISTICIANS are looking into how last year’s provisional sheep count was out by 700,000 head.

Stats NZ’s final census analysis revised the nation’s provisional 2023 sheep flock tally from just over 25 million announced in December 2023, to a final figure of 24.3 million announced this month, following further analysis and checking.

The figures are compiled from Stats NZ’s annual Agriculture Production Survey, and used by Beef + Lamb NZ and the meat industry as the basis for their forecasts and planning.

“The first look is quick and at a national level, which feeds into BLNZ and the Ministry for Primary Industries,” said Stuart Jones, Stats NZ Environmental and agricultural statistics team manager.

“After that we have a more thorough check and identify any duplication as it goes through our systems and processes.”

He concedes the 700,000 discrepancy was larger than usual.

For the 2022 year the provisional number was 25.3 million, which was eventually revised to 25.1 million.

Continued from page 1

and profit expectations for the current financial year. It pointed to prolonged weakness of consumer demand in China, including the cancellation of that country’s second largest retail festival, the 6:18 festival.

Its target of $50 million net earnings within the 2025 financial year has been termed “unachievable”.

Revenue has been pared back to $211-$218m for 2024 from a midpoint of $230m. With that, net

A recent meeting between Stats NZ and BLNZ concluded both have confidence in the 2023 sheep numbers.

BLNZ is confident the data is consistent with its regional breakdown and its Farm Economic Survey results.

Jones said Stats NZ is looking to improve the accuracy of its data by challenging it with other sources, but ultimately it is up to farmers to fill in the census.

Among other uses, the data assists with primary sector and government projections and planning, forming policy in

profit is also forecast down and back at a mid-point of $25.5m, previously set at $32.5m.

The sector is also increasingly littered with shutdowns, sales and liquidations of processors.

These extend from the liquidation of Oceania Natural in mid-2019, Mānuka Honey NZ in October 2022 and on through last year to include the liquidation of NZ Mānuka Apiculture, Honey Science Mānuka, Apiforce Limited, and Auckland Trading (formerly Tahaaroa Honey).

Meantime food giant Nestlé has

areas such as health, education, trade and migration, Treasury projections and providing farm input and output information.

Stats NZ concluded that a farmled boycott of the 2022 census saw 0.29% of forms not returned, but BLNZ say the low survey returns, which have averaged about 69% in 2022 and 2023, could be an issue.

“We would always like higher rates of course, and the nonresponse rate does increase our sample errors, but these are still within acceptable limits as per the design of the survey thanks to the tens of thousands of farmers who

just announced its intention to sell Egmont Honey, an operation only acquired in 2022 as part of a $375m health brand deal. Egmont’s maximum strength mānuka had sold for as much as $1000 a kilogram.

In other corporate moves King Honey has also reportedly closed its Tauranga branch, while the Perry Group has closed the Three Peaks beekeeping operation within the Mānuka Collective.

The shift in fortunes is a postcovid hangover for the sector, which surged ahead during the

NUMBERS

GAME: Last year’s provisional sheep count was out by 700,000 head.

did fill it out,” Jones said.

A BLNZ spokesperson attributed the revised sheep numbers to complexity in accounting for the timing and change in stock numbers from the conversion of sheep and beef farms to forestry, and to low census return rates.

December’s provisional data reflects total sheep numbers as at June 30 that same year, with the number of ewes calculated at 63% of that total.

BLNZ use these provisional figures along with the revised numbers for June 30 2022 for its mid-season update.

pandemic as consumers sought wellness products that could be purchased directly online.

Karen Kos, CEO of Apiculture NZ, said prices remain flat, but she has heard from some exporters

At a cost of about $500 a year to run, it gets to the point it is cheaper to walk away.

Jason Prior Downunder Honey

A BLNZ spokesperson said the discrepancy does raise questions about available animals for processing for the rest of this year.

A BLNZ spokesperson said the discrepancy does raise questions about available animals for processing for the rest of this year.

“There is heightened uncertainty in actual sheep and beef cattle numbers at present due to afforestation, and when the sheep and beef cattle capital stock leave farms that have been sold into forestry to go to processing,” the spokesperson said.

From July 1 2022 to June 30 2023, the mutton slaughter was actually 217,000 lower than in the same period for the previous year, so does not provide an answer for the recent decline in ewe numbers.

“One possibility is that these ewes are still on forestry blocks while tree seedlings are obtained to be planted, [so] the ewes are not owned by the farmer who sold to forestry and may have missed the inventory count.

“If this is true, then a bigger ewe kill could occur next year as forestry planting catches up and ewes are processed.”

that demand is starting to pick up overseas.

“But it is like the rest of the primary sector, we are dealing with increased costs and it’s taking its time to work through.”

She said last year’s low production of only 12,000 tonnes may help see some of the previous surplus product exit the system sooner.

The industry is hosting an intensive seminar in Hamilton on June 18 to focus on the national honey strategy and aiming to address industry challenges.

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Sell-down will come with a sweetener

Hugh Stringleman NEWS Fonterra

THE prospect of a return of capital of up to $2 a share from Fonterra’s proposed divestment of the Australian and consumer businesses should go down well with farmer-shareholders.

They will be asked to vote on a major sell-down of as many as 17 plants in Australia, New Zealand and southeast Asia plus all consumer brands, including Anchor, Mainland, Anlene and Anmum.

Such a capital return, four times the recent ex-Soprole payout, would be consistent with Fonterra’s flexible shareholding

approach and help lock in suppliers.

The assets Fonterra proposes to divest are worth more than $3 billion, approximately $2 a share for Fonterra’s 1.6bn supply shares (FCG).

This should quickly boost the share market prices of the farmer-only FCG shares and the unitholders in the Fonterra Shareholders Fund (FSF).

As farmers sniff an opportunity, FCG shares have already risen 60c from $2.40 to $3.

Pitched right, Fonterra should be able to reassure farmers that the asset divestment won’t affect farmgate milk prices, Jarden’s head of research Arie Dekker said.

That is because milk prices grow out of the returns received

for reference products, like milk powders and milkfat products, and because new owners of the consumer brands and plants will continue to use Fonterra ingredients.

Australia has been a difficult market for Fonterra for a long time.

Arie Dekker Jarden

A convincing argument will be the execution of the current strategy and the benefits that flow from concentrating on the core business of New Zealand milk.

Dekker said Fonterra’s balance

Few standouts in first bull auctions of season

Hugh Stringleman MARKETS Livestock

THE 2024 bull selling season opened with mainly South Island auctions and some expectations among vendors and agents that prices would be lower this year compared with 2023.

The early results show that sale averages have been lower, although the largest falls in averages also incorporate lower top prices, without so many standouts.

Hazlett’s stud stock agent

Callum Dunnett said the bulls he has seen so far have looked particularly good and the breeders have set high standards.

“My clients are still looking for bulls, that’s for sure, but they do want to see values drop, because their lamb returns are back.

“So far in the south averages are back $1000 to $1500, but a few

higher-priced stud transfers can inflate the averages.”

Leading the way in the first week was the Knauf family at Kerrah Simmentals, Wairoa, who sold Lot 1 for $34,000, called Kerrah L070. He was bought by Glenbrae Partnership.

The Kerrah average was $7912, with 71 out of 73 sold, compared with $8285 last year.

Jon Knauf said the $34,000 sale was a very exciting time in today’s market.

Penvose Angus vendor Graeme Duncan, Wedderburn, said 38 were sold out of 41 offered and the clearance was pleasing considering the sale had 10 more bulls this year.

The average paid was $7542 and the top price was $18,800 for Lot 3, Penvose 22116, sold to NZ Pastures, the big South Island farming corporation.

Opawa Simmentals, Albury, had a full clearance of 21 bulls

averaging $6600, with a top price of $10,250.

Angus NZ president Mike Smith at Kincardine Angus, Queenstown, sold 15 out of 16, averaged $7933 and had a top price of $15,000 paid by Alton Devery, Pikoburn Angus, Tuatapere for Kincardine 22-224, a stud transfer.

Glendhu Shorthorns, at Heriot, had a top price of $18,500 paid for Glendhu Reiko 236, sold to LongView Shorthorns, Northland. The clearance was 13 out of 14 and the average price was $7050.

Gold Creek Simmentals at Matawai, near Gisborne, had a top price of $17,000 paid by online bidder Garry McCorkindale, Glenside Simmentals, Lawrence, South Otago.

Ruaview Angus and Simmental, Ohakune, averaged $6600 over both breeds, selling all 16 Angus and six out of 10 Simmentals.

The top-priced Angus bull was Ruaview LB 2239 at $9500,

sheet is already strong and he does not think that the directors and senior management team will want to recklessly invest after the divestment.

Without the divested assets, the core business of NZ milk collection and processing followed by NZMP ingredients sales, should generate close to $1bn a year earnings, net profit of around $580 million and earnings per share of 36c.

Dekker has been advocating a sell-down of non-core assets, especially in Australia, since the big change in Fonterra strategy first announced in 2019.

“Australia has been a difficult market for Fonterra for a long time and while chewing up capital it hasn’t generated the best results.”

It would be difficult to retain

the Australian milk collection and processing while selling just the consumer and foodservice businesses, he said.

Trade buyer interest should emerge, in the same way that Tip Top was sold to a Nestlé subsidiary. Equities analysts at Craigs Investment Partners view capital return as the likely outcome of the divestment given that Fonterra is in a comfortable balance sheet position.

Forsyth Barr senior analyst Matt Montgomerie said Fonterra proposed to get rid of its “problem child”, the consumer businesses, and the only averagely performing Australian division.

Consumer brands have been subject to impairments in recent times.

purchased by Mark Gray of Taihape, and the top Simmental was Ruaview Monty, sold for $8500 to Spring Rock Farm, Masterton. Glenwood Angus, Taieri, sold 12 out of 14 bulls with an average of $6562 and a top price of $10,000 paid for Gladiator T19. At the same sale Loch Lomond South Devons made a top of $6800 for Quade 2234.

Puketoi Angus, Ranfurly, sold 16 out of 19 bulls offered, averaged $5900 and had a top of $9000. Coleman Farms Charolais, Kaikohe, sold 13 out of 14 with a top price of $6500 paid for Coleman Farms Tom T112. Leafland Simmental, Mosgiel, sold 12 from 17 with a top price of $13,000 for Lot 1, Leafland 220021.

LEADER: Kerrah Simmentals made the best price of the early bull sales with $34,000 paid for L070 by Glenbrae Partnership.

Commissioner calls for major land use shifts

Richard Rennie NEWS Land

THE Parliamentary

Commissioner for the Environment is urging New Zealand to take land use change out of the “too hard” basket, and make it a reality sooner than later.

The latest report from commissioner Simon Upton’s office says changing management practices on land while keeping the use the same will no longer suffice in the nation’s most vulnerable catchments.

Titled Going with the Grain: changing land uses to fit a changing landscape, the report lays out the environmental challenges facing NZ. It presents some pathways to try to reduce further damage that could impact further on this country’s environment, economic success and international standing as a quality food producer.

It also highlights the integral role farmer catchment groups should have in initiating the changes it foresees.

The report points to almost third of the country’s catchments

needing major land use change, due to them exceeding critical contamination parameters for nitrogen, phosphate, sediment or E coli.

Large tracts of the central

North Island account for the greatest contamination, caused by sediment and accounting for over half the contaminated catchment area.

Meantime E coli contamination is so rife it may not be useful to try to prioritise areas for action.

The commissioner has thrown a wealth of established research into the report, including FAO workings that place the true economic cost of NZ’s food production at $14 billion, a figure likely to increasingly impact consumers’ decision making when purchasing that food.

Adding momentum to the need to shift land use is climate change, in some cases already necessitating those shifts. The commissioner highlights the impact of elevated sea levels as an example, where even in a conservative lift of half a metre could result in a loss of 10% of low-lying Waikato dairy farms. Ironically, however, climate change may also aid the necessary shifts in land use.

areas of NZ that are environmentally degraded.

Forecasts for NZ are relatively positive in economic terms for climate change, with improvements in primary sector productivity of 1-10% estimated.

Upton wants pines taken out of ETS

Richard Rennie NEWS Emissions

STORING carbon in trees cannot continue to be New Zealand’s “get out of jail” card for the country’s emissions, says Parliamentary Commissioner for the Environment Simon Upton. The commissioner’s wideranging report on the need for major land use change in NZ to preserve environmental and economic integrity also takes a hard look at the need for Emissions Trading Scheme reform to prevent the unintended consequence of vast tracts of NZ being planted in exotic forest.

Upton refers to 2019 modelling he commissioned that calculated NZ will require 5.4 million

hectares or 50% of pasture land be converted to forests by 2075 if all emissions are to be priced the same and forests can be used to offset them.

One option he proposes is revenue from methane emissions be retained in the catchment they are generated within, and used to help fund future mitigation/ environmental efforts.

He advocates for a “cap and trade” on methane in the pastoral sector rather than a levy or tax, given that the short-lived gas does not have to be reduced to zero.

This could be combined with matching the gas’s short life to fast-growing exotic forests to sequester it.

This view is supported by a recent OECD review of NZ’s economy that also identified the

risk of forestry expanding to also absorb longer lasting carbon.

That report noted Kazakhstan was the only other country in the world other than NZ that allowed 100% emissions offset using forests. The OECD report proposed longer lived native forests could remain in the ETS, to match absorption of the longer lived carbon dioxide emissions.

“A price on methane as proposed would enable farmers to choose between a menu of options, including on-farm mitigation, using afforestation as an offset, simply paying the price or destocking.”

More profitable landowners, such as dairy farmers on productive land, are likely to choose from the first three options, where they exist.

Meantime, elevated temperatures open up options for the new land uses required.

Research completed by next year should help provide insights to land use opportunities under climate change and the economic impacts of those shifts.

The empirical record of how we use the land and what that means for environmental quality will not be able to be as easily sidelined as it once was.

Simon Upton Parliamentary Commissioner for the Environment

With considerable sympathy for farmers’ situation, the commissioner acknowledges the more complex, fragmented policy landscape they have to navigate, one where regulations on emissions, water quality and biodiversity do not fit together, and sometimes pull in different directions. This is also complicated by environmental impacts proving hard to measure and act on,

irrespective of farm boundaries, making attributing their cause difficult.

After several years of proven success, catchment groups will welcome the commissioner’s recommendation that they be included more in dealing with the problems.

The integrated, catchmentspecific approach recommended here echoes that long pushed for by farmer advocacy groups. This would, however, be subject to them having access to more inexpensive, high quality environmental information, and being underwritten by central government.

AgResearch senior scientist Warren King said these groups would need to retain their current local focus but would have to sit between national and regional regulations and landowners’ property rights.

“To be effective they would need to represent the interests of all stakeholders in the catchment, be appropriately resourced over the long term, supported by rural professionals, and supported by scientist who act as ‘knowledge brokers’ to connect data and expertise as required.”

If they do not have sufficient unproductive land to afforest to offset their emissions, they may choose to purchase offsetting from other landowners. Meantime less profitable operators may choose to exit farming entirely, with

productive farmers paying them to have their land afforested. However, the commissioner also notes a cap-and-trade approach will continue to result in the conversion of hill country to forests.

SHIFT: Simon Upton, Parliamentary Commissioner for the Environment, says simply changing management practices but continuing with the same land use will not suffice for some

UNWORKABLE: Modelling in 2019 calculated that NZ will require 50% of pasture land to be converted to forests by 2075 if all emissions are to be priced the same and forests can be used to offset them.

Price cuts on NZ lamb rile British farmers

QUESTIONS are being asked on both sides of the planet about the low retail price of New Zealand lamb in United Kingdom supermarkets.

UK sheep farmers are criticising the Morrisons supermarket chain for selling NZ lamb at cheaper prices than local product, and some NZ farmers are questioning why their lamb is being sold cheaply in the UK or promoted as either NZ or UK product.

Morrisons is trialling NZ lamb in 39 stores and a spokesperson said it is cheaper than the British product.

“The blunt commercial reality is that NZ lamb is cheaper to source, and therefore cheaper to sell, than British lamb,” a spokesperson said.

“We will remain 100% British lamb on all our butchers’ counters, and the NZ lamb will of course be clearly labelled so customers in these trial stores will see the difference and can make a choice.”

In NZ, the Meat Industry Association said NZ lamb is priced

more cheaply than British due to UK retailers treating it as a loss leader.

“Ultimately, the retailers set the price of in-store lamb in the UK and they base their decisions on a range of factors including seasonality and demand,” said MIA chief executive Sirma Karapeeva.

“Many retailers promote lamb as a loss leader to bring shoppers into stores to buy other products,” she said.

It is really disappointing to see these false claims promoted by the NFU.

UK shoppers have traditionally supported domestic farmers by paying premium prices.

Karapeeva said the UK sheep flock has been declining while lamb exports to the European Union and United States are rising, heightening demand and increasing UK lamb prices.

Given NZ’s supply chain costs, Karapeeva said, it is challenging to

make direct price comparisons.

The BBC reports that National Farmers Union (NFU) board chair David Barton described the Morrisons move as “disappointing” at a time when the British livestock industry is under pressure, most recently from wet weather.

He said that NZ lamb is “produced to potentially lower standards”, a claim Beef + Lamb NZ roundly rejects.

“NZ upholds high animal welfare and environmental standards, making it an ideal partner for providing safe, nutritious, and high-quality lamb to UK consumers,” said Alex Gowen, BLNZ regional manager, UK & Europe.

“NZ and the UK share common values and a commitment to rigorous production standards and robust regulatory and quality assurance frameworks, so it is really disappointing to see these false claims promoted by the NFU.”

The Morrisons trial is in response to customers requesting year-round access to lamb “at an accessible price”.

“We do not intend this move to mean a reduction in the

overall volumes of lamb that we buy directly from British farmers.”

Karapeeva said the move by Morrisons will expose more UK consumers to NZ lamb.

“Morrisons has stated that one of the factors behind its decision is that it is cheaper to source NZ lamb than British lamb, which is a reflection of how efficient NZ farmers are at producing lamb even when transport is taken into account.”

Karapeeva noted that the price of NZ lamb in the UK has been steady for the past six months at $9-$9.50/kg while volumes for the first quarter of this year were 57% higher and 48% greater by value.

Data provided to Farmers Weekly reveals sheep sold through UK saleyards in recent months have been making between £4 (about $8.34) and close to £6/kg. An online search of UK retailers shows Tesco-branded whole lamb leg joint selling for £28/kg and described as “produced in the UK or NZ”.

The same retailer is selling Tesco-branded lamb chops for nearly £19/kg, similarly described as “produced in the UK and NZ”. Lamb stocked by Sainsbury’s is similarly described as either British or NZ, with chops selling for £15.44/kg, lamb rump £15.83/ kg and whole leg £14/kg.

It’s been a while since we’ve heard from some of our shareholders – can you help us connec t?

Despite our best efforts, we’ve been unable to contact around 85 shareholders about options for their Ravensdown shares.

We’ve published a full list of “missing” shareholders on our website at ravensdown.co.nz/trying-to-connect

If your name is on the list it means there’s a good chance we don’ t have your current contact details or you may have missed a letter we sent to you in November 2023

We’d love to hear from you so we can update your details and discuss your options

Head to ravensdown.co.nz/trying-to-connect, contact our Customer Centre on 0800 100 123 or email customer.centre@ravensdown.co.nz

Neal Wallace MARKETS Exports

CUT: It’s UK farmer against NZ farmer as British supermarket chain Morrisons undercuts lamb prices to lure in customers.

Alex Gowen Beef + Lamb NZ

Zespri cargo culprits were not Kiwi mice

Richard Rennie NEWS Exports

CONFIRMATION by Zespri that the mice discovered on board its first shipment of SunGold kiwifruit to Europe were not of New Zealand origin has been met with some relief by post-harvest processors here amid a looming insurance issue.

While unable to provide any further details, Zespri confirmed to Farmers Weekly that the DNA of the mice discovered on docking in Zeebrugge, Belgium, was not of NZ origin.

The chartered refrigerated ship the Crown Garnet docked in late April with 1.2 million trays of early season, high value SunGold fruit on board, the first for the season. Prior to NZ the ship, owned by Cool Carriers, had departed from South America. The kiwifruit was loaded in Tauranga.

The head of one post-harvest processor told Farmers Weekly it was perplexing to try to understand how the mice would have been from NZ, given the widespread infestation across all 16 holds, and the multiple pack house sources that made up the load.

New Zealand Kiwifruit Growers Incorporated CEO Colin Bond

confirmed the industry is working on estimates of the crop being valued at $30 million wholesale value, plus an addition $4m in costs incurred in fruit disposal and efforts to determine infestation levels.

The load is now destined to be used as biofuel feed stock.

“The communication from Zespri so far has been very good. The question will be how will the insurance policy cover that cost, and how long will it take to resolve,” Bond said.

He said given the time likely to take to resolve any insurance claims, the episode is likely to have a direct impact on forecasts for this season’s grower payments.

At $34m, the cost equates to a worst-case loss of 30c a tray to SunGold growers.

“We are very aware of just how long this may take,” Bond said.

Longtime maritime law specialist

Pauline Davies of Auckland solicitors Fee Langstone said losses from vermin infestations are uncommon in this part of the world, and this was the first time in 40 years of practice she had heard of such an instance.

Early shipments in chartered ships had experienced some losses through early ripening when shipped with apples, but now the fruits are not carried together.

In a written response to Farmers

We are very aware of just how long this may take.

Weekly she said when a ship is chartered specifically for a cargo there are a range of distinct contractual arrangements.

Broadly, these include a bill of lading subject to international convention, known as the HagueVisby rules.

These require an overriding obligation on the carrier to use due diligence to make holds and cargo spaces of a ship “fit and safe” for the carriage of the cargo described on the bill of lading.

Zespri has confirmed the ship had a pre-loading survey completed to check for rodent

infestation prior to departure from Tauranga.

Failure by the carrier to ensure a “fit and safe” vessel with the cargo damaged as a result gives liability on the part of the shipping company. The shipping company cannot rely on any of the defences that might otherwise be available to it, unless due diligence can be demonstrated.

In terms of insurance claims, she said, the cargo insurer will first be asked to make good its client’s losses.

“Whether and to what extent it does so will depend on the terms of the relevant insurance policy. Most marine cargo policies do not, for example, cover purely financial losses such as loss of profits; they only cover the loss of or damage to the goods themselves.

“The result will be a cargo owner will have losses for which it is compensated by insurance, and other losses for which it is not.”

Once losses are established, any third party believed to be at fault for causing the loss can be asked to reimburse the loss, with the cargo owner’s insurance company taking over the rights of recovery its client would have otherwise had.

She said when such cases go to court they often have an insurance company on one or both sides of the civil action.

MATERIAL: NZKGI CEO Colin Bond said the $34 million cost and value of the SunGold cargo was a material amount in terms of a per-tray loss.

Colin Bond NZKGI

SELECTIVE: Kurt Livingston, export sales executive for Hawke’s Bay-based Fern Ridge Fresh, says buyers in export markets are more selective this year in terms of what apples they take and the prices they pay.

Slim pickings as size hampers apple season

Gerhard Uys NEWS Horticulture

APPLE growers and exporters say smaller than expected apple sizes this season are causing challenges, with medium-sized apples flooding the market and putting local growers in competition with exporters from other countries.

Kurt Livingston, export sales executive

for Hawke’s Bay-based exporter Fern Ridge Fresh, said this season’s apples are smaller than in previous years.

“There’s been a lot more of the mediumsized profiles,” Livingston said.

He said growing conditions this summer were good, but the industry still suffered a hangover from two previous wet seasons.

December, when fruit was forming on trees, was wet.

Every market has different size and variety preferences, but when there are only smaller apple sizes available in markets that demand larger ones, it presents challenges, he said.

New Zealand differentiates itself in the “ultra competitive commodity landscape” by growing large “premium varieties” that are “semi-exclusive and have a brand attached to them”, he said.

Because of this exporters and growers expect price premiums, but cannot get them this season because traditionally larger sized apples now fall in the medium-sized category, he said.

These apples are less sought after and “slower to move”.

The market is also flooded by fruit from competitors, he said.

It’s very different economics in terms of land and labour. We can’t really compete, we have to grow bigger apples.

Paul Paynter Nelson apple grower

The United States, for example, had a bumper crop of around 140 million cartons, and exported surplus fruit to Asia when local markets were flooded.

NZ relies on Taiwan to take Fuji apples, but this market was oversupplied with cheap Fuji apples from the US, he said.

“The market has been quite full this year and buyers are more selective than usual.”

There are also market concerns about ongoing black spot disease, Livingston said.

Nelson apple grower Paul Paynter said he believes there was root death in many trees after waterlogging in soils following excessive rains from Cyclone Gabrielle.

The smaller apples most growers picked this season were the consequence, Paynter said.

“If the oxygen level in the soil drops below about 3%, roots die. We think there’s been some degree of root death. If it’s compromised in terms of its nutrient uptake then probably [trees are] going to grow smaller apples.”

Paynter said as growers now supply smaller apples into, for example, Asia, they compete head to head with South African exporters who traditionally supply smaller apples at lower prices.

South African growers pay labourers the same for a day’s work that Kiwi growers pay workers for an hour, he said.

“It’s very different economics in terms of land and labour. We can’t really compete, we have to grow bigger apples,” Paynter said.

Paynter said the NZ Queen variety, sold locally as NZ Rose, is the economically most important variety out of Hawke’s Bay.

This variety appears to have suffered the most and grew significantly smaller fruit, he said.

He is also concerned about phytophthora, and that there will be ongoing tree health issues from this disease after continued waterlogging.

Crunch time for catchment groups

Richard Rennie NEWS Environment

AS A number of catchment groups face an end to their funding over coming months, an advocate is hoping initial government enthusiasm for them will extend to continuing support for the groups.

Since 2022 the government has ploughed over $47 million into the groups throughout New Zealand, with some larger groups set to continue to receive funding through to 2026.

However, the majority are rapidly running out of time and cash, with June approaching as the month when funding is likely to stop.

Alison Dewes and John Burke are technical and restoration advisers to Western Bay of Plenty group Wai Kōkopu, covering 35,000 hectares of land that extends from Lakes Rotoiti and Rotoehu down to the heavily degraded Little Waihī Estuary at Pukehina, near Te Puke.

Moving forward, it is going to become a case of determining how we can fit alongside regional councils, complement the on-farm advisory services in MPI and help reinforce the messages coming from industry.

The group has worked with a range of horticultural, dairy, drystock and local Māori landowners across all sectors to provide a cohesive pathway for repairing waterways and looking into how to best optimise their systems given the multiple challenges facing farmers in the catchment.

“We know that by 2040 we will be facing around 0.3m of sea level rise along some areas of the Bay of Plenty coast, along with

nearly double the hot days, and a significantly higher frequency of difficult weather,” Dewes said.

“That, coupled with changes to our landholdings, means it is good to plan ahead and take advantage of the good things that might arise as well.

“To do that, though, it’s important to be cognisant of the risks and opportunities that come with the natural characteristics of the land, if it is low lying, steep, erodible, and ask if the right land use is occuring in the right places on our farms.

“Moving forward, it is going to become a case of determining how we can fit alongside regional councils, compliment the onfarm advisory services in MPI and help reinforce the messages coming from industry, especially around emissions, welfare, and biodiversity enhancement.

“Nothing really has been cemented in yet, and there is a real risk we lose momentum with groups that are doing a lot of good from a farmer led level.”

A report on NZ land use by the Parliamentary Commissioner for the Environment, Simon Upton, cites catchment groups as a good local institute to put control of central government policy into.

He noted when working properly the groups can get good buy-in on potential solutions requiring collective action, share good practice across peer groups and balance cultural, social, environmental, and economic impacts.

However, he also noted they are not a panacea, and they need to be well resourced and do risk being captured by vested interests and biased in favour of the status quo.

Mandy Bell, the co-founder and chair of Wai Wanaka, said the final steps in forming a national Aotearoa NZ Catchment Community group are in play to give a more unified voice.

“This will mean we can take a shared message to Wellington, and back out of Wellington too.”

She said things are dependent upon how the government’s budget allowances play out, but

there have been constructive discussion with government officials on the direct, connected role farmer-led catchment groups can play.

The Wai Kōkopu group modelled what was required to improve the estuary and slow the flow from the lakes to the sea.

On the surface, it appears the catchment would require around 3000ha of erosion-prone land to change from pastoral to trees. It would take the reinstatement of around 900ha of wetland near the estuarine areas and 70km of riparian retirement area, with precise pest and weed control.

From 2025 the group intends to have a year-on-year scorecard of progress covering regulatory and market-driven performance indicators linking on-farm progress to catchment progress towards resilience for the future.

“Good things take time –especially when complex systems are involved,” Dewes said.

Alison

is calling for greater cohesion between catchment groups and local councils to keep focus and momentum.

Maersk, Kotahi sign up for another 10 years together

THE renewal of a partnership between freight manager Kotahi and global shipping company AP Moller-Maersk is being hailed as providing New Zealand exporters with certainty.

The two parties have renewed their current partnership for another 10 years, which they say provides NZ international trade with stability and resilience, too.

Kotahi chief executive David Ross said after shipping disruptions from the covid pandemic and geopolitical events, the partnership with Maersk provides exporters with a proven supply chain through which goods can get to markets around the world.

“The magnitude of this

agreement is big, even by global standards, with an estimated $160 billion value of primary export products given greater certainty and capability around delivery to market,” he said.

In the past 10 years the partnership has shipped 1.8 million TEU (20 foot equivalent units) or 23 million tonnes of NZ cargo to markets, the majority being primary industry products including dairy, meat, seafood, horticulture and forestry.

NZ is small in the scheme of global trade, which became apparent during the major shipping delays and disruption caused by port and shipping congestion during the pandemic.

Ross said Maersk responded by providing extra shipping capacity and containers for NZ exporters because of the partnership with Kotahi.

“If the partnership did not

exist, I doubt that would have happened,” he said.

Ross said that response and the freight service and capacity offered by this partnership renewal should give exporters confidence.

He said global supply chains face major changes in the coming years from geopolitical tension and climate change.

This partnership will ensure NZ is involved as those challenges are confronted and changes occur.

Maersk is aiming to be carbon zero by 2040.

Kotahi was founded in 2011 by Fonterra and Silver Fern Farms and in 2014 signed its first longterm agreement with Maersk and the Port of Tauranga.

Maersk, in partnership with Waikato-Tainui, recently opened a $140m 18,000m sq cold store facility at Ruakura, which can house nearly 30,000 pallets in both cold rooms and blast freezers.

COHESION:

Dewes

Alison Dewes Wai Kōkopu Catchment Group

Neal Wallace NEWS Transport

There are more reasons for farmers to read the

Farmers Weekly

than any other newspaper.

They’re the same reasons more advertisers use

News. Insights. Analysis. The Farmer’s Voice. Opinion. Special Reports. Features. People Stories. Technology. Dairy Focus. Sheep & Beef Focus. Horticulture Focus. Arable Focus. Ag&Ed. AgriStars. Federated Farmers News. World News. Real Estate. Livestock. Marketplace. Jobs. Sale Yard Reports. Market Snapshot. Weather. Advertisements and Catalogues.

“ I read it every Monday. It keeps you right up to date with what’s going on currently. You get a lot more depth and balance through Farmers Weekly.”

Chris Dillon Ardlussa arable farmer, Southland Federated Farmers Immediate Past President and member of the Arable Executive

From the Editor

Craig Page Deputy editor

ALL eyes will be on Parliament this week when Finance Minister Nicola Willis unveils the coalition government’s first Budget.

Budgets have historically been something of a lottery. Vast sums of money are traditionally thrown at health, education, housing and crime, but many would argue at times there have been few tangible results from the cash windfalls.

Housing Minister Chris Bishop has already announced $140 million will allocated in the Budget as new funding for 1500 new social housing places to be provided by Community Housing Providers (CHPs), not Kāinga Ora.

Much of the pre-Budget talk this year has predictably been about tax cuts, although questions remain how they will be funded given Prime Minister Christopher Luxon has vowed to get the country’s “books back in order”.

Luxon reaffirmed his commitment to tax cuts in his pre-Budget speech earlier this month, saying the government would provide cost of living support to “low- and middle-income families”.

The tax cuts come as significant reductions have already been made in the public service, which has resulted in hundreds of job losses.

“I acknowledge that the savings programme has been difficult for those affected,” Luxon said of those cuts.

“But, above all else, the first priority of government must be to achieve the best possible outcomes for the money we collectively spend on behalf of taxpayers –the best hospitals, the best schools and the safest streets.

“This year, we will deliver income tax relief to low- and middle-income working New Zealanders for the first time in 14 years. I’m proud of that,” he said.

While tax cuts will inevitably hog the headlines come Thursday, there will be plenty of interest in where else the government throws its financial support.

From a rural perspective, rural health funding, regional roading and biosecurity are just some of the areas that need attention.

Smaller groups and organisations whose very survival relies on continued government funding will also be keeping a close eye on the Budget.

Last week Farmers Weekly spoke to catchment group advocate Mandy Bell, who is involved in attempts to form a national Aotearoa NZ Catchment Community

group and give a more unified voice to the initiative.

It’s a nervous time for several catchment groups, who soon face an end to their funding.

Tax cuts will hog the headlines, but there will be plenty of interest in where else the government throws its financial support.

Since 2022 the government has contributed more than $47m to groups throughout the country.

Some of the larger groups have funding confirmed until 2026, but most are running out of cash, with funding expected to stop in June.

Bell said their future is dependent upon how the government’s Budget allowances play out.

A report on New Zealand land use by the Parliamentary Commissioner for the Environment, Simon Upton, cites catchment groups as a good local institute to put control of central government policy into. However, he also noted they are not a panacea, and they need to be well resourced.

In the lead-up to last year’s election, National made its play to win back the rural vote by vowing to get Wellington out of farming and empower farmers to chart their own course.

Thursday would be the perfect time to start that process.

Letters of the week

Our loss on Saturdays

Sallie Moore

Central Hawke’s Bay

LOSING Saturday deliveries of newspapers and parcels from the end of June doesn’t seem that significant. Just another loss of service to the rural community, something we should be used to by now.

What do we lose without a Saturday newspaper? (On Saturday, that is. It will probably turn up on Monday with Monday’s paper.) Well, let’s list a few: information about church services, advice of and late changes to social or sporting events from farmers’ markets to garage sales, births, deaths and marriages, council notices, interesting supplements and various public notices. All fairly peripheral, you may think, and little that’s important to the business of farming.

There is, however, one outstanding entry that is only available on Saturday and fairly useless by Monday: the weekly listings of livestock sales.

For some farmers, livestock sales are a vital part of their forward planning and budgeting. Having the leisure of a Saturday morning to decide which, if any, sales they want to attend or instruct their agent to, is important.

Sales early in the week with unexpected attractions would be missed entirely for Monday and could mean inconvenient rearranging of appointments for Tuesday or Wednesday.

Perhaps newspapers – and livestock firms – could change the listings to the Friday paper and everyone would be, if not happy, at least not deeply annoyed at the loss of the Saturday delivery.

One farmer I spoke to said without the Saturday paper – on Saturday – it was hardly worthwhile paying over $700+ for daily delivery. Another rural dweller but not a farmer said the utter delight of relaxing with the Saturday paper without the guilt of getting ready for work is worth the annual delivery charge. Without Saturday’s paper on Saturday she will also be cancelling her subscription.

Newspaper content is available online; however reluctant people are to sacrifice the pleasure of sitting down with a bulky newspaper once a week, they will have to embrace their computer or their phone for the bare information they need, making the end of Saturday deliveries another nail in the coffin of print media.

Best letter WINS a quality hiking knife

Send your letter to the Editor at Farmers Weekly, P.0. Box 529, Feilding or email us at farmers.weekly@agrihq.co.nz

In

my view ...

We’re keeping a close eye on the bird flu

Andrew Hoggard

Hoggard is minister for biosecurity

NEW Zealand has never had a case of high pathogenicity avian influenza, but we are closely watching events overseas and preparing.

Our neighbours, including Australia and the Pacific Islands, remain HPAI-free, and we are monitoring disease spread, particularly towards the Ross Sea region.

This is an evolving situation, and as information emerges about the distribution of HPAI in Antarctica, we hope to gain a better understanding about the likelihood of it reaching New Zealand through wild-bird movements.

We know that early detection of HPAI in New Zealand is key to responding effectively and managing any impacts on biodiversity, agriculture and trade. We have strong surveillance systems in place, and strong

measures on the pathways that can be managed – including some of the world’s strongest import health standards to manage commodities that could carry HPAI.

As with any known pest or disease threat, we are preparing for the possibility of HPAI arriving here.

Biosecurity NZ is focused on response options that represent the best approach to mitigate the impact on primary sectors, especially poultry, protect our native species, monitor any possible spillover events, protect human health, and help the sectors to report and contain spread while keeping themselves safe.

NZ has solid plans in place to minimise any impact on our export trade, and work is under way within the poultry industry. For example, the Ministry for Primary Industries and industry recently consulted on a proposed animal products notice that would allow exporters to establish a

WILD:

We don’t need to be alarmed about the situation in the US, where an isolated spillover event led to dairy cattle being infected.

biosecure compartment that can be certified to be free from particular diseases to protect these exports.

To mitigate the effects should HPAI arrive here, MPI is working closely with a wide range of agencies, including industry groups, veterinary professionals, regional councils, organisations that support birds and wildlife – including wildlife hospitals and rehabilitators, Fish & Game,

relevant agencies

Forest & Bird, and healthcare providers.

NZ is also part of networks that monitor the spread of this disease globally, and we are talking regularly with colleagues in other countries about HPAI behaviour and responses. This includes regular contact with the United States Department of Agriculture, the US Chief Veterinary Officer, and the Centres for Disease Control and Prevention.

Veterinarians and poultry industry organisations have been alerted to the signs of HPAI infection in both poultry and wild birds.

While we should be vigilant, we don’t need to be alarmed about the situation in the US, where an isolated spillover event led to dairy cattle being

Symptoms

Key signs of possible bird flu

In poultry – lethargy, reduced appetite, droopy head, darkened and/or swollen comb/ wattle, panting, nasal secretions, unusual drop in egg production, bleeding disorders, a silent poultry shed.

• Wild birds – sudden sick or dead birds.

Waterfowl – involuntary movements, lack of coordination, blindness, trembling.

infected. But it is a good reminder around practising good on-farm biosecurity and recording animal movements.

HPAI has not been detected or reported in beef cattle to date, and information from the American Veterinary Medical Association is that most dairy cattle recover in two to three weeks.

Given our huge dairy exports, it’s key to note that pasteurised milk remains safe. And that no unpasteurised dairy products are imported from the US. It is also important to note that most of the world has been living with this for more than five years, which has enabled Biosecurity NZ to develop strategies on the management of HPAI.

Early detection is crucial. If you see sick or dead birds, please report this to the Exotic Pest and Disease hotline 0800 80 99 66 with as much information, and images, as possible.

Public and farmers align on enviro regs

Ben Hancock Hancock is an agricultural business/ economics & environmental specialist at Beef + Lamb NZ

THE debate over an urban-rural divide is a well-trodden path.

From a recent piece of work I’ve been involved with at Beef + Lamb New Zealand, I believe there’s strong alignment between the public perception of environmental regulation and what the sector has been asking of the government.

BLNZ has consistently raised concerns about the significant administrative and financial burdens placed on farmers, and about what these prescriptive, one-size-fits-all rules will achieve.

Recent announcements by the government about changes to some of the environmental regulations introduced over the past few years have been welcome.

My role as part of the BLNZ team is to provide insights for the sector’s advocacy. This supports the organisation’s continuing advocacy for the government to create enduring policy solutions that strike a balance between being workable for farmers and helping to provide consumers, markets and the public with reassurance of good environmental stewardship.

Public trust and confidence is important in giving our sector

licence to operate, and we want the public to share our pride in the sheep and beef sector.

BLNZ regularly commissions data and analytics experts Kantar to survey the public on perceptions of the red meat sector.

This has in recent years shown an upward trend in NZ public pride in our sector, with the public well aware of the sector’s contribution to economic growth and jobs, not to mention our reputation globally.

Building on this, we recently added new questions to the regular survey, designed to provide a snapshot of public perceptions of the scale of the need for environmental management rules, as well as the amount of rules farmers are required to deal with.

We wanted to find out the public’s view of the need for environmental regulation, in order to understand whether respondents felt farmers are environmentally responsible stewards of the land.

Respondents were presented with a broad range of statements on the need for environmental regulation, and could select as many options as they felt represented their perception of the sector.

Farmers can be heartened by public perceptions of them as both proactive participants in their environmental management and as stewards with a long-term view.

Kiwis also see regulation is required but the largest response was for this to be practical and workable and not jeopardise farmers’ livelihoods and rural communities.

Our report on the cumulative impact of environmental policies, released last year, showed that the disjointed rules introduced by previous government were going to put farmers under immense financial difficultly and in fact stymie environmentally proactive farmers.

It is encouraging to know the public don’t want this to happen. They want some progress, but the rules need to be pragmatic.

Respondents were also asked about the amount of environmental regulation placed on farmers.

BLNZ and other farming groups have for some time been calling for a pause, reassessment and simplification of environmental regulation.

Around 80% of respondents felt they had enough information to form an opinion on the amount of regulation farmers faced – possibly helped by recent mainstream media coverage of this issue.

Results showed public support for the sector’s contention that environmental regulation has overshot the mark, with more respondents stating there is too much than not enough – nearly 40% reported there was too much

or a little too much environmental regulation, with only 22% saying there was almost not enough or not enough (see figure 2).

The responses to these questions indicates that the public is willing and supportive of some rollback to the environmental rules, but they are still wanting to know that progress will be made.

As a sector, however, we need to bear in mind that 22% were looking for some more rules and that there was also fairly strong support for some rules and for independent monitoring.

While the government’s policy rollbacks are important to ensuring farmers have practical and enabling rules to work within,

ONE MIND: Alignment of respondents’ views on the need for environmental regulation on beef and sheep farms.

Source: Kantar, November 2023.

our sector will still need to show environmental progress and continue to bring the public along with us.

Any policy changes that create public perception of avoiding all environmental responsibility, letting bad practices undermine the good work of most farmers and creating negative impacts on the environment, could shift the weighting of support for more government intervention.

The public support in this survey is encouraging for those of us who are engaging with and representing farmers and rural communities and working to get policy changes, as it shows we’re not in this alone.

Biosecurity Minister Andrew Hoggard says the

are monitoring disease spread, particularly towards the Ross Sea region.

A lot is riding on brands about-turn

Alternative view

Alan Emerson

Semi-retired Wairarapa farmer and businessman: dath.emerson@gmail.com

THE news that Fonterra is wanting to sell some of its iconic brands, including Anchor and Mainland, came as a bolt from the blue. In my view it sets out a new and different direction for the cooperative.

One thing about our dairy industry is that it is dynamic. Change can and does happen at pace.

I’ve followed New Zealand’s dairy industry and the politics driving it for a while now. I can remember when the industry was the Dairy Board and a multitude of small and medium-sized dairy companies.

They became two, New Zealand Dairy Group and Kiwi, and then one, Fonterra.

The vested-interest politics driving it were considerable and it took the cool heads of then minister of agriculture Jim Sutton and Opposition spokesperson

Shane Ardern to get some sense into the debate.

Fonterra became a reality. It wasn’t smooth sailing by any means with some of the massive egos involved, but it’s a different animal now and far better for it.

It also appears to be a more consultative organisation.

I’ve crossed swords with Fonterra over the years and make no apologies for doing that. It has had, in my view, some crazy schemes.

For a start it wanted to be the world’s milk producer, collecting 30 billion litres by next year. The reality is that it collects about half that amount today and profitably so.

I’m sure dairy farmers can remember the $700 million Beingmate debacle, where a carried-away board put millions into an offshore enterprise that achieved nothing for the local industry.

Back then the board obviously knew more than Credit Suisse, which cautioned against the deal.

Add to that the China Farms and Sanlu shambles and you’d be forgiven for thinking the Fonterra board’s oversight back then was cursory at best.

I was critical of the Fonterra Chinese shambles, which encouraged the co-op to take an injunction out on one of my stories in Farmers Weekly. It achieved little, common sense won out and the losers were the Fonterra shareholders who footed the bill.

So now we have a different animal with a more enlightened approach.

Divesting assets isn’t new for Fonterra as it sold Tip Top to the world’s third largest ice-cream manufacturer, Fronerie, in 2019.

There was little fuss at the time

considering will mean dealing with competitors, says Alan Emerson. Has that been fully considered and are the risks manageable?

and the new Tip Top still uses milk supplied by Fonterra.

Considering the Fonterra balance sheet was interesting.

Its debt in July 2023 was $4.04 billion, down from $4.85bn the previous year. The co-op’s cash reserves took that net debt to $2.2bn.

It is estimated that Fonterra’s consumer business could fetch between $2.5 and $3.5bn. Contacts from the finance industry believe the figure could be considerably higher.

The business is sound. The S&P credit rating is a healthy A-, sales revenue has increased to approximately $24bn and profit continues to increase.

I obviously haven’t seen any business case for the brand sale but I’ll accept it has been done and is detailed – but there are some questions.

A meat pie for a try

Eating the elephant

Phil Weir

Phil Weir is a Waikato sheep and beef farmer and AgFirst agribusiness consultant. eating.the.elephant.nz@gmail.com

AFEW weeks ago I wrote about Christmas coming in early May in Waikato. As expected, Santa delivered in spades. While the ducks were mostly safe, the duck hunting experience was fantastic. The opportunity to sit

in a small, dilapidated hut for 48 hours with your best mates is something to cherish.

At one point during opening weekend when walking from the maimai to the ute (carefully hidden some distance from the pond), I reflected that part of the joy of duck shooting is the opportunity to share our family farm with others.

It’s awesome to see how genuinely therapeutic a day in the countryside can be for urban people with increasingly busy lives. Sure, farming is hard work at times. But Kiwi farms, our workplace environments, are of the highest order. The green grass, the smattering of natives, cattle and sheep – they certainly leave open-plan offices and water coolers in the dust.

With duck hunting behind us, attention turns to more important, winter matters: kids’ sports. Sport has long played a massive role in underpinning rural New Zealand. On winter Saturday mornings in the Weir house, three children go three different ways representing club or school

in different sports, at different venues and at individual times that seem to be always a little too close together.

I love clubs. They bring people together. They are the foundational space where mahi happens together to achieve something.

The juggle for parents and the co-opted grandparents is real, but when Saturday afternoon on a winter’s day comes around and children are proudly speaking of their participation, perspective hits. Perspective hits because at that point, the conversion of a try into a meat pie, a goal into a Gatorade or over-zealous cheering into a Sally Lun inevitably overcomes all of the challenges of the week before or ahead. The overriding impulse in these moments is to stop and think “How good”.

Children’s sport often introduces

What plans does the co-op have for the money earned from the sale? Will it be used to pay down debt or are other options being considered?

options being considered and if so, what?

Announcing the proposed change in direction, Fonterra CEO Miles Hurrell made the following statement: “By selling the consumer business and focusing on ingredients and foodservice, Fonterra can better utilise its milk supply in highvalue areas, enhancing returns for farmer shareholders and unit holders.”

For a start, any business-tobusiness deal of the size Fonterra is considering will mean dealing with competitors. Has that been fully considered and are the risks manageable?

With some of the experts suggesting Nestlé is a likely purchaser, where would that leave Fonterra?

Currently the global consumer business represents some 19% of the group’s operating earnings and 7% of the New Zealand milk solids.

With any impending sale, will Fonterra be able to guarantee that the milk supply for those sold entities will continue to come from local suppliers as happened with Tip Top? My understanding is that it will.

What plans does the co-op have for the money earned from the sale? Will it be used to pay down debt or are there some other

The market’s initial reaction was certainly positive, with both the suppliers’ shares and those of the unit holders going up in short order.

Going forward won’t be easy. For a start, dairy farmers will demand a detailed business case so that they can make an informed decision. The brands Fonterra is selling could be described as iconically Kiwi. Will NZ consumers continue to support them if they are overseas owned?

The media is concentrating on that one point and Fonterra needs to broaden the debate.

Finally, we live in a dynamic world and things can change quickly. It is encouraging that our largest company is considering all its options in an open and transparent manner – that it intends concentrating on its strengths instead of trying to be something it isn’t.

ALL: The conversion of a try into a meat pie, a goal into a

or over-zealous cheering into a Sally Lun overcomes all of the challenges of the week before or ahead, says Phil

the young ones to life as part of a club. Clubs come in many forms. Some of those most important to me are the Pirongia Junior Rugby Club, the Harapepe Field Sports Association (my duck shooting club) and Nuffield Alumni – the latter the spark for this column. I love “clubs”. They bring people together. They form around a shared interest and are the

foundational space where mahi happens together to achieve something.

There’s something else about clubs I love – something that both teaches kids more than a book ever can and humbles many an adult: clubs are underpinned by volunteers. The cleaning, the

Continued next page

CLOSE COMPETITION: Any business-to-business deal of the size Fonterra is

CURE

Gatorade

Weir. Photo: Wikimedia Commons

Has McBride’s board thought this through?

The braided trail

Keith Woodford

MD at AgriFood Systems

kbwoodford@gmail.com

ON MAY 16, Fonterra announced a proposal to divest itself of all production and marketing of consumer goods. This took most people linked to the dairy industry, including me, by surprise.

If the proposal is fully implemented, Fonterra will in future only produce ingredients. Some of these ingredients will be sold to foodservice entities and the rest will be sold as commodities.

In marketing language, Fonterra will be exclusively a business-tobusiness entity with nothing that is consumer-facing. Fonterra calls it a step-change but it is more than that. It is a U-turn.

All of Fonterra’s brands would be divested.

Fonterra’s New Zealand and international brands include Anchor, Fernleaf, Mainland, Chesdale, Fresh’n Fruity, De Winkel, Perfect Italiano, Western Star, Anlene, Anmum and others.

TipTop used to be Fonterra’s icecream brand but that was sold in 2019 at a time when Fonterra had balance-sheet problems.

The proposed divestment also includes the sale of three consumer processing plants in NZ, nine processing plants in Australia and five plants in southeast Asia.

Fonterra has laid out what it calls the “in scope” products it proposes to divest. Although these are mainly consumer products,

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cooking, the reffing, the coaching is all given voluntarily.

When you see people participating at the club you realise how liberating the feeling of contributing is. It’s when the farm workers and truck drivers who are often directed all day become “the boss” or “the expert”, and those who are tired from giving directions all week happily pick up after others.

It is this contribution that often gives meaning to many and makes

the in-scope products also include small quantities of foodservice products and commodities that are produced in the processing plants that will be up for sale.

In the first half-year of 2023/24, these in-scope products earned $2.7 billion revenue with EBIT earnings, net of depreciation, at $190 million. Note that these are just half-year returns.

Fonterra estimates the value of the assets associated with in-scope products at $3.4bn.

Some 15% of Fonterra’s total milk supply is currently allocated to in-scope products. More than half of this milk is sourced in Australia. Australia-sourced milk is particularly valuable for consumer products because it has 12-month supply whereas New Zealand supply is seasonal.

In recent years, Fonterra has been explicit that it is no longer “taking on the world”. It therefore divested itself of South American operations in Chile and Brazil, where it had been purchasing and processing locally produced milk. It also sold off its China farms plus its part ownership in Beingmate. It also sold off its 50% interest in European company DFE Pharma for $554m in January 2020.

In 2022, there was even talk within Fonterra about selling its Australian milk supply and milk processing operations.

However, Fonterra then reported in September 2022 that not only would Australian assets be retained, but that these Australian operations, using both Australian and NZ milk, were of considerable importance in achieving 2030 targets. It seemed that matter was settled.

Until now, Fonterra’s divestment policies have related primarily to reducing the processing of milk produced in other countries. However, Fonterra’s latest plan is to no longer itself convert any of its NZ milk into consumer products.

Of course, Fonterra’s milk has to be converted eventually into consumer products, but it will be someone else who does all of this. This “someone else” will purchase at least some Fonterra brands and processing plants, which will then

Aotearoa’s rural communities tick.

For most, volunteering comes at a cost, whether financial or with time. But it is this work by volunteers that makes our communities work.

So hats off to those of you who volunteer your time in whatever form it may take.

Times may be tough throughout the economy, but your work is priceless and regardless of what the budget for the year ahead says, I won’t be skimping on the odd meat pie or Sally Lun on a Saturday.

be owned by that “someone else”. The reason Fonterra is now making a U-turn is linked to a change in thinking within the board. This change of philosophy first took root back in 2018. Prior to that the board had been fractured between those who thought Fonterra should “stick to its knitting” and those who thought Fonterra should “take on the world”.

By 2018 it had become obvious that, in trying to take on the world, Fonterra, was making many mistakes. Farmers were unhappy.

Between 2014 and 2017, Leonie Guiney was an outspoken director advocating a change of strategy but she was out-manoeuvred by the majority of the board, whose support she needed to be re-elected.

In 2018, after a year in the Fonterra wilderness, Guiney was re-elected by farmers in preference to board-nominated directors. That sent a very powerful message to the board from farmer shareholders.

That year, 2018, was also when Peter McBride came onto the Fonterra board following five years as Zespri chair, where he had received praise for his ability to bring that industry together through some rocky times.

With Fonterra chair John Wilson retiring on account of ill health in late 2018, and John Monaghan taking on the role in what he always said would be a shortterm commitment, the path was clear for McBride to take over as Wilson’s long-term successor in 2020.

There is no doubt that under McBride, the board has come together as a cohesive governance group, which had not been the case previously. There is also no doubt that Fonterra has regained the support of its farmer shareholders in a way that had never been evident prior to this.

My assessment is that Fonterra’s farmers will now support Fonterra’s latest strategic plan to divest itself of consumerfocused operations, based largely on the credibility of McBride, plus enthusiasm for capital disbursements.

However, I am not convinced that the full implications have been recognised. There is a possibility that the cohesiveness of the current board has led to incomplete recognition of

long-term risks and counter perspectives.

The starting point is to recognise that Fonterra has struggled mightily throughout its history with the consumer side of its business. The McBride-led board has been the first one to openly recognise at least the partial source of this weakness.

In its latest announcement, Fonterra opines that “Fonterra is not the highest-value owner of the consumer and associated businesses in the longer term and a divestment could allow a new owner with the right expertise and resources to unlock their full potential.”

There is a possibility that the cohesiveness of the current board has led to incomplete recognition of long-term risks.

That is a remarkable statement.

It is saying that Fonterra itself does not believe that Fonterra has either the right expertise or resources to take the consumer business to its full potential.

There is no way the Fonterra of five to 10 years ago, with its arrogance, would have made that statement.

This raises the question of why Fonterra could not buy the expertise that it lacked. The answer is that buying the right expertise does not work if the company does not have the right culture to make a particular strategy work. Quite simply, innovative marketers were never going to feel comfortable with the Fonterra corporate culture.

Way back in 2004, Fonterra appointed Sanjay Khosla as head of Fonterra brands. Khosla did an amazing job in just over two years in sorting out the plethora of Fonterra’s brands. But that was the last time that Fonterra had a specialist marketer of renown driving the consumer business.

Khosla then went on to transform Kraft, where the culture aligned much better with marketing of fast-moving consumer goods (FMCG).

Some of us realised early on that Fonterra would struggle with being both a manufacturer of ingredients and also an FMCG marketer. Accordingly, dairy farmer and Lincoln colleague Marvin

Pangborn and I wrote an article for the Dairy Exporter in 2007 suggesting that the way ahead could be a two-company model.

With this model, consumer goods would be in a separate company, which would have shareholdings held both by Fonterra and external investors, and with a governance team who understood the essence of a FMCG business, and with management structured accordingly.

Fonterra’s directors of that time were not receptive. In my opinion they did not understand the distinct governance and management culture needed for long-term FMCG success.

In 2015 I penned another article, outlining the same concept of a two-company model in which “Fonterra Processing” would hold a shareholding in the second company alongside external investors.

Times have changed again since then, but in a situation where divesting the consumer business is the only option on the table, it does need to be looked at again.

The risk with a 100% businessto-business focus is that Fonterra becomes dependent on firms that are purchasing its ingredients. That is fine in a static world, but in a changing world, success for Fonterra becomes dependent on the success of firms that buy its ingredients.

There is also a key risk in that Fonterra may react too slowly to changes in consumer markets, where its ingredients have to end up, given that it will have no direct sight into those consumer markets.

Perhaps most importantly, once Fonterra focuses only on ingredients and sells its consumer assets, it is a strategy that can never be reversed except at very great cost.

This leaves me attracted to a new version of the two-company model encompassing the current Oceania segment of Fonterra plus existing southeast Asian facilities.

This second company would probably be best headquartered in Victoria, with shares held by Fonterra and external investors. It would be publicly listed and it would have its own board. It would draw on both Australian 12-month fresh milk supply plus NZ-sourced ingredients.

There is lots to think about.

ANCHOR’S AWEIGH: Fonterra’s New Zealand and international brands include Anchor, Fernleaf, Mainland, Chesdale, Fresh’n Fruity, De Winkel, Perfect Italiano, Western Star, Anlene, Anmum and others.

Class act as wool tech tutor retires

Laurie Boniface has spent decades tutoring the country’s wool classers. Neal Wallace reports.

LAURIE Boniface pretty much stumbled into the wool industry. Sixty years later he retires having spent 40 of those years tutoring the nation’s wool classers.

When he started his career in 1964 there were 70 million sheep, eight wool selling centres and 32 wool scours. Today there are 25 million sheep, two selling centres and three wool scours.

Boniface’s contribution to the wool industry, first as a buyer and then as a tutor, was acknowledged at the recent NZ Wool Classers Association (NZWCA) professional development day and annual meeting in Mosgiel.

Former NZWCA chair Bill Dowle asked where the sector would have been without Boniface to nurture generations of classers.

A fellow tutor, Richard Gavigan, said Boniface ensured the course survived despite change and fluctuating fortunes.

“He carried the course through tough times and multiple owners and was responsible for ensuring wool classing classes continued because they could well have disappeared.”

One of Boniface’s students, Craig Smith, said the knowledge he acquired from the course has taken him from working in a wool store, to wool buyer and now the NZ manager of international company, Devold Wool Direct.

“The knowledge I learnt from Laurie has got me where I am today,” he told the development day.

Boniface was raised in

Palmerston North and was introduced to agriculture through weekends and holidays spent on relatives’ farms.

He was hooked.

“Farm life was for me.”

An uncle provided a reality check, noting that purchasing a farm was unlikely to be affordable, but he offered an alternative.

Noel Beder, a local wool buyer, was visiting his farm and he introduced him to Boniface as there could be an opportunity.

During school holidays he started working for Beder and in 1964 that led to a job as a store hand.

Boniface started at the bottom of the food chain, making smoko and helping to press the bales. He was forbidden, however, from sewing caps on the bales as that was above his station.

In 1967 he went to Massey University to study for a Diploma in Wool and Wool Classing, a twoyear course.

Returning to work for Beder, he eventually moved into wool buying, a role he retained when the business was sold to Feltex, where he learnt to value wool prior to sale.

After briefly working for another Manawatū wool company, in 1984 Boniface got a job tutoring at Massey University, where he worked under Bill Regnault who headed the wool department and became his mentor, helping him become equally passionate about wool and teaching.

“Teaching was my calling. I loved teaching, I loved the students and

Every job has its ups and downs. I had very few downs.

Laurie Boniface Southern Institute of Technology

imparting knowledge,” he said. Little did he know that during his teaching career he would have six employers.

He taught everyone from young students to farmers, stock and station agents, those in the meat industry involved in slipe wool and visiting international groups. Boniface was also involved in

Sunny shines light on Northland’s acidic soils

SOILS capable of eating concrete held a menacing appeal for Kerikeri High School student Sunny Perry, who decided to make a study of them. Her efforts have resulted in her claiming the 2023 Te Puiaki Kaipūtaiao Anamata Future Scientist Prize, one of the prime minister’s science prize awards, valued at $50,000 to put towards her future education.

Some of these soils got down to an acid pH of 1.8. It’s easy to see how they can corrode concrete.

Sunny’s father Ben, an engineer, had recounted to her the experiences of colleagues who had to deal with the consequences of

the mysterious PASS (potential acid sulphate soils) that are highly acidic, capable of eating into foundations, stormwater pipes and even steel.

The “potential” descriptor comes about due to the soils requiring exposure to the atmosphere for their sulphuric acidity to develop.

Often found in Queensland, the soils are estimated to cover 58,000sq kilometres there, but are significantly less well mapped in New Zealand.

“Having a conversation with Dad about it, I found it interesting that soils can be so damaging, yet we are so unaware of them. I needed a science project subject, and it seemed a really interesting subject to get into,” Sunny said.

While Waikato and Auckland regions have some mappings of the soils, Northland was bereft of much detail, despite its low-lying, swampy areas being among the most prevalent sites in the country for such soils.

In her efforts to identify the soils’ locations, Sunny ended up taking 420 samples from 20 sites

across the Far North region, often drawing curious spectators as she measured out her samples and mixed in the relevant chemicals to determine soil pH.

“Some of these soils got down to an acid pH of 1.8. It’s easy to see how they can corrode concrete and I had glasses and gloves on while doing the tests.”

Stormwater pipes are a common victim of the soils, and knowing what areas the soils are more acidic means authorities can adjust the type of piping they use, from concrete to PVC, for example.

In Australia the soils’ toxicity is such that the flushing of acidic leachate from the oxidised soil profile has increased waterway contamination, damaging fish life and even contaminating ground water supplies. Often such soils may only be planted in rice because keeping them continuously wet prevents them oxidising and releasing their acid content.

Converting them to agricultural use can take years of careful drainage management at a

preached, for two years classing Merino fleeces at Little Valley Station near Alexandra.

He also had a sabbatical in China, where he explained NZ wool to local farmers and the textile industry.

He loved his 14 years at Massey.

“Every job has its ups and downs. I had very few downs.”

When Massey closed its wool division in 1998, delivery of the course was picked up by Woolpro, a division of what was then Meat and Wool NZ, and delivered extramurally.

A year later he had a new employer, Tectra, who he thought would see his career out. It was not to be.

For two years Lincoln University delivered the course before it was picked up by the Taratahi Agricultural Training Centre.

When the centre was placed in receivership in 2018, the role fell to the Southland Institute of Technology and then the NZ Institute of Skills and Technology, Te Pukenga.

judging and recalled an incident while assessing fleeces at the Horowhenua Show.

One white wool fleece was found to be riddled with black fibre so was put in the black and coloured fleece section, much to the anger of its owner.

Boniface eased the tension by offering to buy it on behalf of Massey University, an offer that made the owner extremely proud, not knowing that it was to become a study prop.

“Little did she know it went into the fault and pigmented line of white wool with black fibre running through it.”

Boniface practised what he

Boniface said it was his passion for teaching and for his students that kept him in the industry.

“The students are focused on what they do and that gives me immense satisfaction.”

He concedes he would struggle for motivation if he was still a wool merchant.

“It would be soul destroying dealing with a client and telling them values are unchanged given the knowledge of what it has cost to produce.”

He officially retires late next month, bringing down the curtain on a career notable for more than the change in values especially for crossbred.

subsurface level. When developed, they have proven to have a good soil structure and good permeability.

With the wealth of survey data she gathered, Sunny has been able to put together the first stages of a Geographic Information System (GIS) as a mapping tool to help her predict sites likely to have PASS.

She also modified a sampling

and testing method from Australian testing standards. Her predictions have proven highly accurate, detecting PASS at 90% of the sites where PASS had never been recorded before.

“With more development to my map and further refinement I will have a map that can be used by land developers and councils to show what soils need to be treated and which soils to avoid.”

DISCOVERER: Kerikeri High School student Sunny Perry’s conversation with her dad led her to uncover some of Northland’s most toxic soils, and claim the PM’s Future Scientist Award for her efforts.

Richard Rennie PEOPLE Research

Sunny Perry PM’s Future Scientist Award

SHARING HIS KNOWLEDGE: Laurie Boniface is retiring after 40 years as a wool technology tutor.

Additive a big plus on effluent emissions

Emissions from effluent ponds are the bane of the dairy sector when it comes to methane metrics, but help may be on the horizon from promising Lincoln University research.

ANEW project led by Lincoln University and Ravensdown marks the next step towards providing farmers with a costeffective tool to reduce methane emissions from effluent storage ponds.

Professor Keith Cameron of Lincoln University says emissions from effluent ponds are the second-largest source of on-farm methane emissions from the dairy sector.

“Effluent storage ponds are a crucial part of dairy farms, and we hope to provide farmers with a new technology to reduce their methane emissions using the EcoPond effluent treatment system,” Cameron said.

In the EcoPond system an additive, ferric sulphate, is mixed with the effluent. This inhibits the growth of methanogens and

creates an environment that’s not conducive to methanogenesis – the process through which methane is produced.

“This project will further refine this technology based on encouraging early research results,” Cameron said.

“Lincoln University’s published research shows that treating effluent with iron sulphate can reduce methane emissions by over 90%.”

Professor Hong Di said not only can it contribute to lowering emissions, it will also help reduce freshwater contamination from phosphate and E coli bacteria.

“Although the EcoPond system is not yet commercially available, this project enables the Lincoln University team to build on previous small-scale trials. The researchers will work with farmers to refine the technology, and then

with Ravensdown to develop a commercial, cost-effective version of the technology that farmers can use.”

Lincoln University’s published research shows that treating effluent with iron sulphate can reduce methane emissions by over 90%.

Prof Keith Cameron Lincoln University

The Ministry for Primary Industries is co-investing $2.9 million in the project through the Centre for Climate Action on Agricultural Emissions, with support from Ravensdown.

Cameron said the new funding will enable the research work

to be expanded nationally to measure the potential of EcoPond treatment in different regions of the country and different dairy farm systems.

EcoPond treatment technology will also continue to be tested in different seasons to quantify the benefits throughout the year.

Peter Hancox, manager of the Lincoln University Dairy Farm (LUDF) said an experimental EcoPond unit has been working on Lincoln University Dairy Farm for

approximately three months.

“We have noticed a big change in our effluent pond, it looks very clean, and we no longer have a crust on top of the pond.

“We have also noticed a big reduction in the smell coming from the pond.

“From my perspective, it has been very interesting seeing EcoPond in the development stages on farm and I see this technology having a big benefit on farms in the future.”

Daisy Labs GMO dairy gets the EPA nod

THE Environmental Protection Authority has approved an application from Daisy Lab Ltd to produce dairy-identical proteins using genetically modified organisms in a contained facility.

The EPA’s general manager hazardous substances and new organisms, Dr Chris Hill, said precision fermentation has the potential to offer significant savings in land use, water use and reduction in carbon footprint.

Daisy Lab holds an existing approval to genetically modify two types of yeast in containment – which in this case means in a secure laboratory environment.

“This new approval will allow them to scale up the work

already underway and increase production,” Hill said.

“As part of this approval, Daisy Lab will be required to put in place several controls, which will ensure the genetically modified yeast is contained at all times.”

Following fermentation, the proteins, such as whey or casein, are harvested and purified so all of the genetically modified organisms (GMOs) are removed.

“Similar work is being undertaken internationally and we are confident this work poses no risk to human health.”

The application was made under the EPA’s rapid assessment pathway, which means the decision was provided to the applicant within 10 working days.

Over the past 12 months, Daisy Lab has scaled its process from milligram volumes to the production of prototype consumer

products such as ice cream, yoghurt and cream cheese, using beta-lactoglobulin.

“What sets Daisy Lab apart from our global competitors is that we developed our strains and fermentation protocols with the downstream process in mind,” CEO and co-founder of Daisy Lab Irina Miller said.

“Our fermentation liquid is uniquely suited to be processed using existing industrial dairy equipment, such as decanters, microfiltration and ultrafiltration membranes, and spray-dryers.”

Dr Nicole Freed, chief science officer and co-founder, who worked with the EPA to prepare and obtain approval, expressed her excitement about the future opportunities this milestone presents for Daisy Lab.

“We invested significant time and resources into preparing our

As part of this approval, Daisy Lab will be required to put in place several controls, which will ensure the genetically modified yeast is contained at all times.

Dr Chris Hill EPA

application, and it’s gratifying to see our efforts pay off,” she said. Freed also acknowledged the support received from the EPA in navigating the legislation that regulates genetic technologies in New Zealand.

“This is a crucial step forward for Daisy Lab and for precision fermentation technology in New Zealand.”

TESTING: Lincoln University staff measure methane emissions on Lincoln University Dairy Farm’s effluent pond.

Staff reporter TECHNOLOGY Dairy

OPPORTUNITY: Dr Nicole Freed, chief science officer and cofounder, who worked with the EPA to prepare and obtain approval, is excited about the future opportunities for Daisy Lab.

Sector Focus

Muddy or too dry, it’s always Clement weather

Tony

Benny ON FARM Weather

WHEN they bought a farm on the West Coast and moved over the hill from Canterbury, Paul and Abby Clement didn’t know much about the region and faced something of a baptism by fire, but as their third season there comes to an end, they have no doubt they made the right move.

“We just weren’t familiar with the coast,” Abby said. And after their first, extremely wet, spring on their 123 hectare, 200-cow farm on the coast just north of Hokitika, they wondered what on earth they had got themselves into.

“We had all these issues with the calves and it was so, so wet, then someone came over and said, ‘Your calves have mud fever.’ And we were like, ‘mud fever? Oh, my God, why have we come to the West Coast?’” Abby recalled.

That wet spring was followed one of the coast’s driest summers on record, further testing the couple’s resolve.

“There were a lot of hard lessons in that first year,” said Paul. “We were really learning the hard way but the positive out of that season was we saw the extremes of the property and so we’re – and I don’t really want to test it – prepared for whatever happens next.”

The Clements were attracted to the coast because farms are cheaper there than in Canterbury, where they both grew up. Abby had become a GP and Paul was carving out a career in corporate dairy farming.

They didn’t expect to be able to buy a dairy farm in Canterbury but hoped one day they could perhaps afford a small sheep and beef

block if they still relied on off-farm income.

“That’s what we thought was possible but we knew we had to build a heap of equity so we were like heads down, bums up doing our best to earn heaps and then Paul came across some information about a West Coast dairy farm and we thought we’d find out a little bit more about it,”

Abby said.

“I was just looking at farms on TradeMe,” said Paul. “I’d never considered the West Coast but I just kept seeing these farms coming up in price ranges I thought we could afford.”

Paul grew up in Darfield, Canterbury, the son of a stock agent, and was always passionate about agriculture. He did a B Com Ag at Lincoln University and on graduation went into rural banking.

“I never quite got to probably where I wanted to be in the bank so that probably led me to exit after only a couple of years and in between overseas travel I ended up dairy farming.”

It was when Abby, recently graduated from medical school, took an internship at Hastings Hospital that Paul’s move to dairy farming happened.

At the time he was keener on working on a sheep and beef farm, having had a taste of cattle ranching in Canada, but finding a job in that sector proved difficult.

“I remember going to one interview and he obviously had something against bankers. He said, ‘You’ve been a banker’, and he must just have thought I was a banker wanker so I got booted out the door pretty quick!” Paul recalled.

Until he found a job, Paul and Abby had nowhere to live,

so he started looking for a job in the dairy industry, and the accommodation that would come with it.

“I was really lucky with the role I got. The farm owner, Kynan Thomsen, could see the value I could bring and that was brilliant. He knew I didn’t have any direct dairy farming experience but could see I had a whole lot of transferable skills.”

Within six months Paul had moved into a 2IC role. “Kynan was totally right, he learnt so fast,” Abby said.

They stayed in Hawke’s Bay a couple of years and then had a one year OE, before returning to Canterbury where Abby worked at Christchurch Hospital and Paul joined Synlait Farms. He stayed there 10 years, surviving various ownership, name and management changes in the business and had various roles from management to operations management and contract milking.

I realised that the higher I moved up, the more I was doing a whole lot of things I didn’t actually enjoy.

Paul

Clement Hokitika

Abby meanwhile decided she didn’t want a hospital-based career and entered the three-year training programme to become a GP, and worked in Darfield. While still in Canterbury they had the first two of their three children.

Despite Paul enjoying much success in the large-scale corporate business and learning much of what has made him the farmer he is now, there came a point when he felt that was no

longer right for him and his family.

“I had a change from Synlait Farms and for a short period that was refreshing but I realised that the higher I moved up, the more I was doing a whole lot of things I didn’t actually enjoy. As soon as I realised I didn’t want to do that anymore, it was very easy,” Paul said.

They took another serious look at the West Coast dairy farm that had caught their eye pre-covid and put all they had into buying their dream farm, grateful to Paul’s parents for their financial assistance.

There was considerable back and forth negotiating the sale, navigating covid and bank lending criteria changes and then securing the finance, but by April 2021 the deal was done and Paul and Abby and their daughters Maize, 4, and Izzy, 2, moved to the other side of the Southern Alps and started farming in their own account.

Abby was confident she’d find work as a GP but was eight months pregnant when they arrived so expected to be home on the farm for a while before starting a new job. “And that’s when Paul said

to me, ‘How would you feel about doing the calf-rearing?’,” Abby recalled.

“I was like, ‘Yeah, that makes sense, I’m going to be at home anyway,’ not having had any experience in what that actually involved. I lost all my baby fat,” she laughed.

When calving started, new son Zac was six weeks old and their two pre-schoolers needed to be looked after too. “We would have been able to cope – it wouldn’t have been pleasant – but we had really bad luck and our calves got really sick with E coli that year.”

With E coli rampant in the calf shed and Abby dealing with severely scouring calves most days, it was, said Paul, hell.

“E coli is a bacteria that children can get so I then couldn’t bring my three- and four-year-old down to the shed and I was also juggling a baby that was sleeping, then not sleeping,” Abby said. “The calves were so sick it doubled the workload because they needed so much more care.”

Most of the calves did survive, though, and Paul said it was gratifying this year when they joined the milking herd.

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E coli is a bacteria that children can get so I then couldn’t bring my three- and four-year-old down to the shed and I was also juggling a baby that was sleeping, then not sleeping.

After three seasons they’re finding their feet.

“It’s incredibly different over here, not only the geographic location and climate but also going from my last job, having 12 staff under me, to doing it myself was actually much more of a challenge than I thought it would be,” said Paul.

One of the changes he’s had to embrace is flexible milking. Initially he wanted to stick with twice a day but with the first season’s tough wet spring, followed by unusually dry summer, production was so poor he felt he had no choice but to reduce milking frequency.

In December he went three and two, one day on twice a day, the next on once a day.

“That worked well for the cows but personally I struggled with three and two because I couldn’t

get myself into a routine week to week,” Paul said.

Next season he tried 10 and seven but has now settled on once a day from January, similar to what the previous farm owner used to do. Paul used to hate once a day because he saw it as a loss of production but he’s now embraced it.

“I always knew he did that but what I started to understand was how much better the cows held on OAD. They took a small decline to start with but they held much better through later lactation.”

Once a day is simpler for grazing management and Paul has also learnt it’s important to make the change to OAD before production tails off.

“It’s about the signals you’re giving the cows. Instead of waiting for production to tail off or feed is not great and then going OAD – which gives the cows another signal its perhaps time to shut down – we now go early when feed quantity and quality is good and when you make the change they keep producing.

“Admittedly we’ve had a better season this year in terms of grass growth and climate, but it’s blown me away how much better they’ve done on OAD.”

Paul’s loving the Jersey herd that came with the farm and now he’s been farming on his own account he’s taken a keen interest

in genetics to continually improve it. He’s bought some high BW cows and is using embryo transplants to speed up the process.

“I’m not overly knowledgable in the breeding space yet but I’ve come a long way in a short space of time,” said Paul.

“Paul loves doing embryo transfers and he cracks me up because I call it cow IVF,” laughed Abby. “He tells me now much it costs and he expects me to baulk at that cost and I say, ‘That’s bloody cheap for IVF!’”

He’s registered the herd with Jersey New Zealand and has joined the sire proving scheme and this year has four cows contracted to the breeding company.

“They’ll have input into the semen that we use and if that calf is a bull it has potential to go into a breeding programme.

“I don’t see it as a moneymaking venture, it’s just an interest but if you’re breeding good cows and you’ve got good cows in your herd it’s good for production and productivity.”

The operation is self-contained, with all young stock reared on farm

and the milking herd wintered on grass and baleage.

One change Paul has made is installing meal feeding in the shed, about half a tonne per cow through the season.

While parts of the farm are very prone to becoming muddy, it also has what Paul calls “beach country”, which drains readily and can be used when the skies open.

“It doesn’t matter what the winter throws at us. If it’s terrible obviously feed utilisation will be pretty average but we can have 100mm of rain and cows won’t mark it, it’s fantastic. We’re a bit milder than most so we still

grow good grass in winter as well.”

While initially the Clements wondered if they’d made the right decision leaving Canterbury for a new land which they knew little about, they now have no doubts.

“Paul is absolutely in his element. He’s had some dramas on the farm and works his bloody arse off but he is in his element being a real farmer,” said Abby.

“I can’t see us ever moving away from here. You never know what’s round the corner – but I think we both think that we live in paradise,” agreed Paul.

MORE: Page 24

Abby Clement Hokitika

BIT OF HEAVEN: Maize and Zac Clements on the farm their mother Abby calls ‘paradise’.

OFF TO THE BEACH: While parts of the farm are very prone to becoming muddy it also has what Paul calls ‘beach country’ that drains readily and can be used when the skies open.

OTHER SIDE OF THE ALPS: After three years farming on the West Coast, Paul and Abby Clement say they’re starting to find their feet.

District gets itself a doctor in the deal

WHEN the Clement family left Canterbury to buy their own farm on the West Coast, it wasn’t just cows, land and family life they had to consider but also Dr Abby Clement’s career as a rural GP.

“We were making these decisions about what was going to work for our family but during this time we realised we actually can move regions, why can’t we? My job’s not going to stop it, I’m going to be needed anywhere I go. It was cool that we had that flexibility,” Abby said.

While she was confident her skills would be in demand, she was eight months pregnant with her third child when they made the move so she knew she wouldn’t be able to take a new job straight away.

“I’d put feelers out and the response was, ‘Sweet as, I’m sure we can work something out’,” Abby recalled.

Paul interrupted: “I think you’re understating that, there was huge excitement there was a GP coming to the area!”

It’s no secret that rural GPs are in short supply in New Zealand, especially in districts far away from big cities, like the West Coast, so Abby’s arrival was very welcome. She now works two and a half days a week in the Hokitika clinic as well as half a day working from home for Canterbury DHB and juggles family life and helping Paul on the farm around that.

“I organise myself so that I work part-time because that’s what I can do and if I was working fulltime I would just be too stressed, there would be too many other pressures on me, that I’d end up working 80 hours a week.”

Brought up in Sumner, Christchurch, Abby studied for six years at medical school before choosing Hastings Hospital for her first year house officer experience. After she and Paul had travelled overseas for a year and returned to Canterbury, she chose to become a

of on-the-job training.

“It’s a really rewarding job as well as it works for our life as farmers. So we’re never going to live in a city,” Abby said.

I think it’s important we as doctors also look after ourselves because if we can’t look after ourselves we can’t look after everyone else so when I finish my work for the day, I switch off.

Dr Abby Clement Hokitika

“It’s a highly specialised area, not specialised in that it’s focused on one subject, but you have to know about everything and you have to navigate the tricky situations in brief time slots, every 15 minutes.”

She worked in Darfield, Canterbury, for five years and about the time she and Paul began to seriously think about buying

and the world.

“It put the brakes on everything for a year because I was in the middle of the health system and then we went into lockdown. Everyone else’s view of lockdown was staying at home but my view was getting into hazmat gear, working in a container office for a day and coming home and not being able to touch the kids until I’d stripped everything off and had a shower,” she recalled.

“We got into a honeymoon phase after the first lockdown when we all got to do whatever we liked as long as we didn’t let other people in and that’s the point where Paul and I ended up figuring things out again and organising our move.”

The first season was a baptism of fire but while Paul quite quickly came to love farming on the coast, it took Abby longer to settle in.

“Our move here was really tough for me because a month later I had a baby and then the calf-rearing disasters and moving to a new region, I didn’t have all the social supports in place.

“And then, working as a GP, I

was struggling to figure out how to put myself out there whilst also being a public figure so I’m taking a lot longer to feel really confident. I think I’m finally getting somewhere but Paul, he’s absolutely in his element.”

Abby said the medical practice she’s now part of could easily support at least two more doctors but it’s not just a matter of the current team doing longer hours.

“I think it’s important we as doctors also look after ourselves because if we can’t look after ourselves we can’t look after everyone else so when I finish my work for the day, I switch off. We have some of our highly skilled nurses covering some of the oncall so we can focus on switching off and having work and home life.

“Most rural New Zealand general practices are operating with not enough doctors so the nurses work hard trying to fill the need, doctors are trying their best to be as efficient as we can to provide the services that are needed and then the patients end up having to wait.”

She said the region is a high needs community because of the

UNDERSTAFFED:

Most rural New Zealand general practices are operating with not enough doctors, says Dr Abby

socioeconomics and isolation.

“Historically it’s been really hard to get medical care and reliable access to healthcare here so it’s hard to build up that trust. If you’ve got something wrong, you’re more likely to present a bit later and by then people are sicker and it doesn’t help when you have to book a month in advance.

“We’re working as hard as we can on improving some of those inequities.”

And as she gets used to being a doctor on the coast as well as an important part of the farming team, she’s also starting to appreciate what else the region has to offer.

“It’s quite easy to be stuck in the house with the children but we’ve got an awesome beach down there, there’s all these cool things. We can take the kayaks out, I can go out on my paddle board, I can go for a run. I have an awesome loop which comes down the main farm laneway, then out to the beach, through the creek usually –occasionally I swim with my phone on top of my head – and then back to the house and it doesn’t get old.”

general practitioner, which added a further three years

a farm on the coast, the covid pandemic swept New Zealand

Tony Benny ON FARM Health

Clement, pictured here with husband Paul.

Green handshake for Spanish, NZ dairy

Samantha Tennent NEWS Sustainability

TO DEEPEN their understanding of sustainable dairy practices, a Spanish delegation of agricultural and retail leaders travelled to New Zealand.

Led by farmer directors and the CEO of the Spanish co-operative COVAP, along with representatives from Mercadona, a prominent supermarket chain, the group’s mission was to exchange ideas and experiences with NZ processors and farmers.

The tour, facilitated by Alltech, a leading player in sustainability programmes, aimed to provide firsthand insights into sustainable dairy farming practices and their implementation.

With dairy sustainability forming a cornerstone of COVAP’s branding and market strategy on the Iberian peninsula, the delegation sought to glean valuable lessons from NZ’s dairy industry, known for its efficiency and sustainability.

“COVAP and Mercadona travelling together is a testimony to their strong working relationship. Mercadona recognises that their success depends on the success of their producers,” Alltech sustainability insights manager Nigel Meads said.

“The business model is integral to their sustainability story, and they shared their approach with New Zealand businesses while they were here.”

One of the primary objectives of the visit was to engage directly with NZ dairy farmers to understand how sustainability is achieved on the ground. They visited several dairy farms during their week in NZ and talking with farmers allowed the delegation to witness real-world examples of sustainable practices

TALKS: The Spanish delegation’s discussions with processors and brand owners focused on various aspects of sustainability, including animal welfare, environmental stewardship and economic viability.

and explore potential avenues for adaptation in the Spanish context.

The delegation’s discussions with processors and brand owners focused on various aspects of sustainability, including animal welfare, environmental stewardship, and economic viability. These conversations provided invaluable insights into the holistic approach adopted by NZ’s dairy industry towards sustainability, aligning closely with COVAP’s own sustainability objectives.

During their visit they noted the differences in market dynamics between Spain and NZ. Spain primarily focuses on domestic consumption, a lot different to how NZ is geared towards export, with a significant emphasis on valueadded products.

Despite these differences, both countries face similar challenges, including succession planning, regulatory pressures and sustainability concerns.

The delegation also gained a deeper understanding of NZ’s unique dairy model, characterised by its co-operative structure and integrated supply chain.

The co-operative ethos resonated strongly with COVAP’s own mission, particularly as it operates in a region facing challenges such as water scarcity and limited forage availability.

The visit emphasised how interconnected global dairy markets are, showing that changes in NZ’s dairy sector affect markets worldwide, including Spain. The delegation recognised the importance of staying informed about global trends and best practices to navigate challenges and drive innovation in their home market.

Reflecting on the experience, members of the delegation expressed admiration for NZ’s dairy sector and its commitment to sustainability. They noted the importance of cross-cultural exchange in tackling shared challenges and driving positive change within the agricultural sector.

After a whirlwind week, the delegation returned to Spain armed with newfound insights and inspiration on their path to a more sustainable future for dairy farming.

Milking frequency key for proteins: study

Staff reporter TECHNOLOGY

Farm systems

ONCE-a-day milking can increase or lower the amounts of particular proteins in milk, according to a new study published in the journal Dairy.

The study was conducted by Riddet Institute PhD student Marit van der Zeijden as part of her PhD looking at the comparison between once-a-day (OAD) milking and twice-a-day (TAD) milking.

The study found significant differences in the proportion of some proteins, depending on the milking system used.

“Milk from a OAD milking system contained higher proportions of α s2 casein and κ-casein and lower proportions of α-lactalbumin,” said Van der Zeijden.

This could have implications for milk processing and quality, as gelation and heating properties are impacted by these proteins.

Van der Zeijden said this was the first study to look at protein composition across the whole milking season, rather than a single sample. Most similar studies also examined outputs of cows temporarily switched to once-a-day, rather than cows best suited to the regime.

Bovine milk from cows at two Massey University research farms in Palmerston North were compared in the study, one on OAD milking and one TAD. Both farms were pasturebased feeding systems, with higher dry matter supplementation on the TAD farm.

The cows were also as homogenous as possible, with nine cows from each system selected comprising the same make up of HolsteinFriesian (3), Holstein-Friesian x Jersey cross (3), and Jersey (3).

Van der Zeijden took full-milkings samples at nine pivotal stages of the milking season – three at the beginning of the season, three in

the middle, and three towards the end. Samples were also categorised by the day in the lactation stage the cow was in on the day of sampling (early, mid, and late). The TAD cows had milk from the two milkings combined.

She said many factors can affect protein composition, including the time in the season and the lactation stage of the cow, from calving to drying off time when protein and fat increase as milk yields decrease, and even the breed of cow. Jersey cows have higher protein and milk fat content in their milk as well as a larger casein-to-whey ratio.

Most dairy farms in New Zealand milk twice a day, but OAD milking is increasing in popularity because of its lifestyle benefits.

The research was funded by the Ministry of Business, Innovation, and Employment research programme New Zealand Milks Mean More, and supported by the Riddet Institute.

“...Collars have been priceless in helping catch issues early.”

“We get a health aler t to the app on our phone when a cow’s active minutes are down, or she is not ruminating as much We can do a quicksor t and draft her out when she comes into the shed so we can visually inspect her,” says Justin.

“The system has picked up at least two cows that were having issues that the team wouldn’t have other wise known.“It meant we were able to get ahead of the issue before it became a real problem. One of them had mastitis which we were able to catch early and treat,” says Justin.

Talk to us today about getting collars on your herd www.sensehub co.nz

Sth Waikato farm wins coveted Māori prize

WAIRARAPA Moana ki Pouākani

Incorporation is this year’s winner of the Ahuwhenua Trophy for the top Māori dairy farm.

The Mangakino-based farming operation north of Taupō has 12 dairy units across 4300ha, plus three dairy support units comprising 1900ha and two forestry blocks totalling 6100ha. It entered just one of its 12 farms in the competition – Farm 4. The

property has a milking platform of 300 hectares, milking 980 cows and producing 416,000kg MS.

Wairarapa Moana ki Pouākani Incorporation (WMI) produces about five million kilograms of milk solids from its12,000-cow herd and is the largest supplier to milk processor Miraka.

The farm operates within the top 5% of the industry benchmarks and operates a high care, high efficiency model where its environmental footprint has reduced by 30%. This work is supported by applying the Mauri Compass Model on improving water quality.

WMI chair Kingi Smiler said it was a privilege to win the award and share their journey of confiscated lands, the displacement of their people and the commitment they had made as kaitiaki of their whenua and whānau.

“Along the way we have weathered many challenges, yet here we are resilient and strong. Our story is not just about survival but about innovation and adaptation to ensure we continue to sustain ourselves now and in the future.”

He said the dedication and hard work of the staff at Farm 4 are an example of how the industry can farm better in the environment and still achieve the productivity needed.

“This trophy belongs to us all and serves as a reminder of the importance of major contribution that Māori agribusiness makes to the economy of Aotearoa.”

The Ahuwhenua Trophy winner was announced at a dinner in Hamilton attended by 850 people including Prime Minister Chris Luxon, Kiingi Tūheitia and Royal Consort Makau Ariki Atawhai, Sir Tumu and Lady Susan Te Heuheu, along with other ministers, and diplomats from the United Kingdom, Ireland and the European Union.

Smiler said he was both elated and relieved, adding it was a tough competition being up against

Whakatōhea Māori Trust Board.

He said he takes a lot of pride in winning and it is a reward for all the WMI whānau, as they have a very dedicated team who do a lot of work around strategy, planning and execution, and it is this teamwork that makes these things happen.

“Personally, I like a challenge, and meeting that challenge requires attention to detail.

“It’s great how our team works together and in doing so, that they have managed to achieve this award.”

Ahuwhenua Trophy chair Nukuhia Hadfield said Farm 4, managed by Kim Turner, is a top performing unit in every respect and a deserved winner of the competition. The standard of excellence of the entire WMI operation is a model that all dairy farmers should look at and take note of.

Hadfield said both WMI and Whakatōhea Māori Trust Board exhibit the qualities that make Māori proud.

Both have carried on the fortitude of their tupuna to change their iwi and hapū outcomes from adversity to success and excellence.

Ben Purua was named this year’s Ahuwhenua Young Māori Farmer Award winner, beating fellow finalists Hannah Leigh Speakman and Shayden Noel Te Kiwa Gardiner.

Purua is a farm manager at Waimakariri Lands, overseeing a 540-cow farm near Tirau for Chap and Ashleigh Zwiers and Jack and Tiz Sheares.

An emotional Purua said it had been an honour to represent his iwi, Tainui, on the journey since being named a finalist.

He thanked everyone who assisted him in his journey to become a farmer including his whanau, teachers, wife Nikki and employers.

“I hope I’ve made you all proud and that I can lead the way to encourage you all to go hard and be the best that you can be,” he said.

Helping new trainees step up into a career in dairy

Annette Scott NEWS Training

THE Grassroots Dairy Management Graduate Programme is looking for trainees who are ambitious and motivated to kickstart their dairy farming career.

The programme is recruiting for its next intake of graduates to be selected for the 2025 programme.

Programme chair Kim Grayling said the purpose of the programme is simple – to attract university graduates into the dairy industry and match them to on-farm jobs with reputable farmers, enabling the graduate to quickly expand their learning and fast-track progression.

Places on the 2025 programme are limited to eight university graduates, of any discipline.

skills, animal health, pasture and milk production and industry fundamentals.

“Ultimately, the graduates are provided with a wealth of knowledge and a networking community that they will be able to draw on throughout their career.”

Grayling said with the support of DairyNZ and Rabobank, the voluntary committee of eight farmers organising the programme have enjoyed seeing the success of programme participants, many of whom are now competing at national level events such as the Dairy Industry Awards and Young Farmer of the Year competitions, while also growing considerably in their onfarm roles.

While working in full-time employment, those selected will participate in up to 25 modules and social events between February to November 2025.

These modules are led by subject matter experts alongside a farmer to ensure a practical perspective.

The topics covered vary from people management to banking and accountancy

“The New Zealand dairy industry is in need of young, motivated individuals to lead farms and the committee is hopeful the Grassroots Graduate Programme will play a key role in achieving this and further ensuring the longevity and success of the industry.”

MORE: To apply for the Grassroots Dairy Management Graduate Programme as a graduate or an employer, go to: www.dairygrads.co.nz

2024.

TEAMWORK: Wairarapa Moana ki Pouākani Incorporation celebrate winning the Ahuwhenua Trophy for excellence in Māori farming. From left, WMI management committee member Sonya Rimene, WMI group general manager Anaru Smiler, WMI shareholder Lyn Whata and WMI chair Kingi Smiler.

Photos: Alphapix

TROPHY: WMI Farm 4 manager Kim Turner with the Ahuwhenua Trophy.

Gerald Piddock PEOPLE Awards

Our Strategy

A sharper focus

We’ve looked hard at how we can make the lev y the best investment of ever y New Zealand dair

y farmer.

The state of play

New Zealand dair y farmer s have an earned reputation as producer s of safe, low- emissions, high-qualit y, nutritional protein who uphold the highest standards of care for animal s and the environment

When farmer s thrive, New Zealand does too, and so we take seriously our dut y to suppor t dair y farmer s and the sec tor

Dair yNZ is sharpening its focus to help farmer s meet local and global challenges to remain world-leading

Profitabilit y and sustainabilit y must go han d in hand

The Dair yNZ dif ference

This is where Dair yNZ can do the heav y lif ting

The Dair yNZ difference is our unique position as a credible, science-fir st and independent industr y good body representing all dair y farmer s This means we use our worldclass exper tise to get prac tical solutions into the hands of our farmer s, because that is our mission, and into the hands of decision-maker s – because that is advocac y at its finest

Dair yNZ has pioneered hundreds of prac tical solutions that are now used across the sec tor Our par tner s deliver many of them Farmer s can still access the good work that ’ s been done in the past, but going for ward we will be focusing on what we, as a sec tor, need for the future to remain profitable, sustainable and internationally competitive

Our strategic priorities

Accelerating on -farm produc tivit y

We leverage the power of animal genetic s, forage and workplace solutions to remain at the forefront of on-farm produc tivit y relative to premium dair y producer s

Powering more adaptable & resilient farms

We will work more with farmer s to evolve their farm systems and continue to ensure critical risk s are mitigated so that New Zealand dair y produc tion thrives

Enabling sustainable & competitive dair ying

We continuously challenge our selves to make progress on care for our animal s and environment, which protec ts our market premiums and our reputation for locally responsible produc tion

From 1 June, we will be sharply focused on these three strategic priorities to continue progressing a positive future for New Zealand dair y farming.

Find out more at dair ynz co nz/st rategy

Strategies for success after Learning the hard way

BUYING a farm right before the payout crash in 2014 was an experience best described by Jon Pemberton as character building.

He and wife Birgit had taken the leap from leasing to farm ownership just as the $3.90 low happened and they felt like they were losing a dollar for every milksolid produced.

“It certainly tested our resilience,” Jon said.

“Fortunately we got lucky with a contract from Open Country for a stable milk price, which made a huge difference.

“And instead of buying more cows, we ended up doing about 120 Friesian bull calves for North Island contracts with April delivery, which returned the equivalent of about $5 per kilogram of milksolids when working back from pasture eaten.”

The farm is in Brydone, eastern Southland, milking 370 cows on 139 hectares. They managed to produce 125,000kg of milksolids in that first season, milking 320 cows solely on pasture, but by 2020 they had increased cow numbers and production to 227,000kgMS.

Jon is the fourth generation in his family to be dairy farming and the base of their herd dates back to the late 1940s. He is originally from Canterbury and moved to Southland as a teenager with his parents in 1999. They bought a farm that Jon went on to contract milk and lease before it was sold in 2013.

Jon and Birgit sold most of their original herd to gather funds for their farm purchase. They sent the best cows to Canterbury and kept the rest to begin rebuilding.

Despite the challenges of their first season, they persevered. Making adjustments in the following season, they culled many older cows, resulting in a notably younger herd.

Growing the business further, they also began leasing a 260ha farm at Menzies Ferry in 2021 milking 780 cows.

We saw these bigger cows took 10% more feed but they produced 20 to 30 less kilograms of milksolids. They were inefficient.

Jon Pemberton Brydone

The Menzies herd was put together late in the season as they took over the lease in March so there were limited options to find

good cows. They ended up with some big Friesians with American genetics that do not seem to fit their system, and they have been mating them to Jersey semen to reduce the size.

“In that first season, we saw these bigger cows took 10% more feed but they produced 20 to 30 less kilograms of milksolids. They were inefficient.

“I’m sure if we turned up the supplementary feed tap they would go really well, but it just doesn’t suit the New Zealand system.

“Our perfect cow is about 510kg in liveweight, producing 580 to 590kg of milksolids efficiently.”

They have in-shed feeding and feed 500kg of pellets and 200kg of palm kernel per cow at each farm.

“We run a basic system. They go into a new break in the afternoon and back into it again in the morning. It’s a 24-hour break and that way we can see if there are

any shortages on feed.

“The team are pretty good at checking when they’re getting the cows in, usually they’ll flick me a text to let me know if the cows had enough or not.”

Both farms operate a System 4 to 5 and run identical systems. They treat it as a whole, with all the cows calving at one farm then breaking them up.

“We try to mirror the two farms, so the same feed goes in the same area per cow because the bigger farm is just two herds instead of one, so it’s the same area effectively per herd, per paddock.

“The team transitions between the farms so it keeps it simple and there’s no question about feed, they don’t have to try and gauge it. We run the system so similar, it makes decision making quite easy.”

They start calving on August 1 and he chases a 300-day lactation, usually achieving 290 days.

This season has also had some challenges. They had to cull 90 cows due to staph infections and they are coming off the back of a sexed semen failure that had a huge impact on their calving spread – and both properties suffered from flooding in September.

Farm Facts:

• Owners: Jon and Birgit Pemberton

• Location: Brydone and Menzies Ferry, Southland

• Farm size: Brydone 139ha (123 effective) and Menzies Ferry 265ha (240 effective)

• Herd size: Brydone 370, Menzies 780

• Production 2022-23: Brydone 200,000kgMS, Menzies 401,000kgMS Production target 2023-24: 540 -550,000kgMS

• Production target 2024-25: 580,000kgMS

“Every season has its challenges, sometimes they hit harder than others.”

The next two years are focused on building herd numbers. They have got their six-week in-calf rate to 68%, from 53% after last year’s issues, and are aiming to get back to the mid-70s.

They took things back to basics this year, with four to five weeks of conventional semen, followed by some Wagyu then on to short gestation for a total of 11.5 weeks’ mating.

After being stung in that first season with a low payout, Jon is

Samantha Tennent ON FARM Farm systems

HISTORY: Jon Pemberton is the fourth generation in his family to be dairy farming and the base of his family’s herd dates back to the late 1940s.

always conscious of costs, trying to run a cost-efficient system but without cutting corners.

“We used a few tactics to lift performance. We always strive to hit body condition score targets and it probably helped that all the heifers were together at Menzies, with the 3- to 5-year-olds in a separate herd.

“The older cows are at Brydone where there is less walking.”

He said they also spread their

risk by using a good number of bulls.

Using Wagyu was a new concept but they have decided to keep their calf market simple. The local market can be inconsistent and cause challenges with their limited facilities, so they want to keep it easy with a guaranteed market for calves.

“We’re aiming for simplicity to limit surprises.”

Birgit is in charge of calf rearing, and is meticulous. She has also taken on a new role with Open Country Dairies as their Otago Southland Farm Environment Plan Facilitator after they approached her.

It was great timing as their youngest had started school.

They have three children – Beau, 12, Miriam, 11 and Anja, 5.

Jon has extensive involvement in the community. He is the local representative on Environment Southland where he spends two to three days per week in council as part of the 12 councillor team.

“There is a lot going on in the political space at the moment, with a lot of moving parts, but I am really enjoying being a part of it.

“I’m a big advocate for focusing on outcomes and effects. It’s all about compromise – neither side will get their own way, so it is

We don’t want to overcapitalise on dairy. In 15 years it might be a different picture so we want to keep our eye on the bigger picture and be adaptable.

Jon Pemberton Brydone

about how we can work together.”

He has played a pivotal role in founding Ag Proud NZ, an initiative aimed at advocating for positive farming practices and increasing awareness about the mental health of rural communities.

The organisation focuses on highlighting the efforts of the agricultural sector and fostering stronger connections between urban and rural communities.

And he actively contributes to the Three Rivers Catchment Group, which aims to keep farmers updated on environmental matters and initiatives within the catchment area.

They are lucky to have a good team on farm that allows them to have so much off-farm activity.

“They’re a cohesive team and work really well together. We

EFFICIENT: After

respect each other and we are trying to build leadership within the team,” he said.

The medium-term goal is to find the system that works for them. They ultimately do not want to be running two separate farms, but are still undecided on cow numbers and whether they will operate a closed system going forward.

“We don’t want to overcapitalise on dairy. In 15 years it might be

a different picture so we want to keep our eye on the bigger picture and be adaptable.”

On average they travel to Europe every five years and are heading to Thailand next summer for a family wedding. They will continue to travel and expose the kids to the world.

But for now Jon is really enjoying governance and Birgit is loving getting stuck into supporting farmers.

FAMILY AFFAIR: Jon and Birgit Pemberton with children Beau, 12, Anja, 5 and Miriam, 11. Photos: Natwick

being stung in that first season with a low payout, Jon Pemberton says he is always conscious of costs, trying to run a costefficient system but without cutting corners.

LAND: The Pembertons’ farm is in Brydone, eastern Southland, milking 370 cows on 139 hectares.

SUPPORT: Jon Pemberton says they are lucky to have a good team on farm that allows them to have so much off-farm activity.

Positive numbers as season nears its end

Sector perspective

DURING April, all major dairy regions globally witnessed various dynamics at play. This was comprised by a change of direction in dairy commodity prices on the Global Dairy Trade (GDT) platform. Meanwhile, production results continued to vary across countries as did the international dairy trade movement.

On GDT in April, we were witnesses again to the industry’s volatile nature. While March saw the end to seven consecutive GDT index price increases, April bucked the downward trend with a 2.8% and 0.1% index growth in events 353 and 354 respectively.

Although the following GDT Pulse auctions showed softening in prices for SMP and WMP, May’s first GDT event, 355, had all products’ indices going up (except for lactose), with an overall GDT price index of +1.8% and greater demand coming from the southeast Asian/Oceania region for most products.

New Zealand’s latest milk production figures for March showed a year-on-year -1.2% drop on milksolids basis and a drop of -3.5% on a tonnage basis with 1,752,000 tonnes produced.

This was close to our own NZX milk production predictor, which anticipated a -1.6% decline on a milksolids basis. Looking ahead, the NZX predictor is anticipating declines of -1.1% and -5.3% for April and May respectively – but a 0.6% YoY increase for the full season, subject to on the ground conditions.

On a global production scale,

some regions continue to have some challenges in their production. While the United States witnessed a decline in March’s milk production of -1.1% YoY, the spread of avian flu has posed a slight impact on milk production.

Despite outbreaks impacting 5% to 20% of cows in affected herds, recovery typically occurs within 10 to 20 days, with the affected cows experiencing a milk output decrease ranging from 10% to 20%. The FDA’s confirmation of milk safety post-pasteurisation should alleviate health concerns for consumers.

Uruguay, after reporting YoY growth in its milk production for five consecutive months, has reported its first YoY drop in March with -0.36%. Argentina continues to report YoY drops with a -14.3% YoY decrease in March.

Contrastingly, Europe reported an increase in its February production of 0.5% YoY (Leap Year adjusted) as it approaches seasonal production peak. Australia reported a YoY growth of 2.8% for March, and year-to-date (YTD) 3.1% increase, showing a recovery from its lower-than-normal 2022/23 season.

For trade, New Zealand has seen consecutive YoY growth in dairy trade volumes exported three months in a row, with the latest trade data for March showing an increase of 7.1%, cumulating to 13.1% in the year to date (YTD).

However, the softening of global dairy commodity prices in March – particularly milk powders – saw the value of these exports drop -3.4% YoY and -3.1% YTD. This is largely attributed to weaker demand for WMP by China, whose WMP imports dropped -16% in March.

Despite the drop in value, NZ WMP exports alone rose 21%, with other regions absorbing the supply, especially within the Middle East, where exports were up 121% YoY from NZ in March.

US and Australia’s dairy exports in February increased YoY by 9% and 39% respectively, while for the EU27 + UK and Turkey, exports declined by -4% and in Argentina for March decreased by -1%.

Despite all the diverse elements at play in the dairy industry with a range of production and trade trends and varying commodity prices, NZ is heading to an end of season with positive numbers overall in mostly steady to positive milk production and increasing exports volume.

But if NZ is to stay competitive in dairy on the trade front, it will need to continue diversifying both its product and destination mix to ensure ongoing resilience in the industry.

Cristina Alvarado Alvarado is commercial manager, data and insight at NZX

IMPACT: While the United States witnessed a decline in March’s milk production of -1.1% YoY, the spread of avian flu has posed a slight impact on milk production.

Data tech takes dairy from cow to cloud

Interoperability is shaping up to be an extremely useful development in a sector swamped in red tape.

Sector perspective

Dhaya Sivakumar

Dhaya

Sivakumar is chief information officer for LIC

NEW Zealand’s dairy farmers consistently rank among the world’s best, yet rising demand for farm data is increasingly confining them to the office.

To preserve our agricultural sector’s competitive edge and get our farmers back to their pastures to do what they do best, they need a solution to help their data work as hard as they do.

That’s where interoperability comes in. Think of it like a handshake between spreadsheets – a set of rules applied to raw data, transforming it to achieve desired outcomes.

It involves getting different systems to speak the same digital language, leading to outcomes such as report creation or even activating mechanical responses.

For the average dairy farmer, it translates to reclaiming valuable time spent on everyday administrative tasks such as filling out milk processing forms and

stock reconciliations.

In the future it has the potential to automate manual chores, such as sorting livestock or ordering supplements based on herd health.

By leveraging data interoperability – or data sharing – appropriately, we can quickly ease the compliance burden for farmers.

For large farms, navigating complex compliance and reporting requirements around farm activities such as nitrogen fertiliser applications and animal health records, for example, can be a fulltime job. For time-poor farmers, it can lead to costly consultancy fees or non-compliance fines.

A common thread in this reporting frustration is the sheer quantity of information requested multiple times, across different forms.

Interoperability steps in by ensuring that details entered once automatically populate other relevant reports, software and systems.

It’s not just about compliance, however. NZ farmers are experts at precision farming and have been using data to optimise efficiency on farm for decades – producing almost as much data as they do milksolids.

Everything from fertiliser levels and somatic cell counts, to financial returns and in-calf rates is collected on a regular basis.

This has fuelled an industry wide agri-data boom, with the amount of information collected on NZ farms, and subsequent reporting, set to at least double in the next three to four years.

Yet, relying solely on data and reports in isolation can take us only so far. To truly enhance the sector and deliver convenience to the farmgate, responsible data sharing is crucial.

It’s a no-brainer – by breaking down data silos, where information is trapped in isolated systems, interoperability fosters greater industry collaboration,

promotes innovation and more informed decision making.

It has the potential to improve aspects of the entire supply chain, from paddock to plate.

By leveraging data interoperability – or data sharing – appropriately, we can quickly ease the compliance burden for farmers.

LIC’s MINDA software is already leading the way in this space, allowing farmers to share their animal data with industry partners such as OSPRI, Fonterra, Open Country and several different cow wearable providers.

This gives farmers increased insights into farm systems and animal activity at a glance.

But it doesn’t stop there. By fully embracing and harnessing automation-enabled interoper-

ability, the sky’s the limit for what we can achieve.

In the farms of the future, information collected via cow wearables could communicate directly to the farm’s automation system, triggering a gate to open or a pen to close – quickly sorting animals by condition, saving hours or even days of manual work.

With increased focus on emissions intensity within the dairy sector, milk processors are needing to collect on-farm data to prove their Scope 3 GHG emissions.

This isn’t just theoretical; it’s within our reach. Interoperable agri-tech is already enhancing productivity for farmers and growing this capability is a key focus of LIC.

In a sector so crucial to the New Zealand economy –agriculture exports reached $41 billion in 2022, constituting 63% of goods exports – even small changes can aggregate to unlock

real opportunity,’ says LIC chief information officer

billions in economic benefits.

It’s important to emphasise here that interoperability does not compromise data security. The MINDA platform, for example, simply offers farmers a secure data-sharing platform, giving farmers control over how their data is managed.

Farmers using LIC genetics are already achieving higher rates of genetic improvement in their herds.

Interoperable, open standards for data sharing represent a significant step forward for the agriculture sector, leading to quicker problem solving and improved animal wellbeing.

The sector needs to work together now to optimise this potential within the datasphere for a future of dairy farming that is more data-driven, collaborative, sustainable, profitable and efficient than ever before.

Data interoperability is a very real opportunity. Let’s milk it.

HAVE YOU CHECKED YOUR MIXER WAGON KNIVES THIS SEASON?

DAIRY DATA: ‘Data interoperability is a very

Dhaya Sivakumar. ‘Let’s milk it.’

Share farming pair ace it right out the gate

THE past few days have been surreal for Kali Rangiawha and Will Hinton.

The Manawatū contract milkers are still coming to grips with winning this year’s New Zealand Share Farmer of the Year.

Hinton said he struggled to find the words to describe what winning the award meant for them.

“It’s the achievement of a lifetime. It’s probably the equivalent of earning the green blazer at the Golf Masters Tournament.”

It was the first time they had entered the competition. They did so with the aim of learning more about the process so they could make a serious attempt the following year.

Hinton said they had hoped for maybe a third placing at the awards night at Coronet Peak in Queenstown. When their names were called out as winners, they were gobsmacked.

“I don’t think it’s quite sunk in yet.”

The night was also a great networking experience for the couple, who made lifelong friends with other regional winners. They were also extremely grateful to the awards organisers and sponsors for making the event possible.

It was then straight back to reality for the couple who have just completed drying off the 350-cow herd on the 113ha farm they contract-milk on for Tim and Victoria Gorton.

Hinton believes it was their business structure and complementary skill sets that helped them win the award.

Rangiawha’s strengths lie with animal health, and being able

to spot potential issues in the herd before they became major problems.

“Kali can do anything with the cows and she’s awesome with animal health such as down cows or picking up a cow with mastitis in the shed,” Hinton said.

During mating, Rangiawha can also spot on-heat cows and make sure they are inseminated after milking before returning to the paddock.

Hinton concentrates on pastures, feed, their numbers and planning how the farm is managed.

“We’re just so driven to our goals,” he said.

Their original five-year goal was to look for a 200-cow farm to sharemilk.

That has changed to a 500-cow farm because being parents to three children – Rylan, Billy and Blake–means maintaining a good

work-life balance is critical.

Working on a larger farm will allow them to employ staff and have time away from the farm.

At this stage, they are planning on looking for such a role in the 2025-2026 season and winning the share farmer title will help them as they plan that next step.

Raglan-born Rangiawha had originally been studying towards a nursing degree in Australia before pulling out of that to go farming in Tasmania.

She then came back to New Zealand where she started out as a farm assistant for Tim and Mellisa Parsons.

The following season she met Hinton, who was shearing around the world at the time. Rangiawha decided to go to the United Kingdom to see what farming was like halfway across the world.

Born in the UK, Hinton holds

a BSc Agricultural Business Management from Reading University and a National Diploma in Agriculture from Lackham College.

He built a farming partnership with his dad comprising 500 sheep and 50 cows.

They lived in the UK for a while before deciding they had more chance at farm ownership in New Zealand.

Hinton continued to shear across New Zealand until he got a data analyst role, which transitioned into a consultancy role for FarmRight. He also worked for Rabobank as a data analyst later on in their journey.

Hinton credits Rangiawha’s decision to want to go back to farming when oldest son Rylan was still only a year old for getting them started on their farm progression journey.

At the time, she was hesitant about it, and wondered who would employ her.

“I planted the seed and suggested she go self-employed. I know the pasture and feed and financial side of things, and she was practical savvy and this is when the partnership started

“We had a crack at it and for the first year she ran 160 cows by herself while I was the sleeping partner in the background.

“Kali was out there in the day with Rylan and we just worked in with each other.

“If it wasn’t for Kali, this never would have started,” he said.

They moved to a 700-cow farm management job. The day after Rangiawha gave birth to their second child, Billy, she was back out on the farm, tending to a down cow.

“She’s got no kill switch, which is really inspiring, and it drives me. There’s no excuses driving forward when there’s someone like that next to you,” Hinton said.

It also means they hold each other up to a high standard and strive to keep improving. He doubted they would be where they are today if it was not for Rangiawha being able to that onfarm work while he worked off farm in consultancy.

She’s got no kill switch, which is really inspiring, and it drives me. There’s no excuses driving forward when there’s someone like that next to you.

Will Hinton Manawatū

They have not been afraid to move if the opportunity presented itself and it aligned with their goals. It’s meant they worked on four different farms in the past four years as contract milkers. Across the board they have increased production 17% on each farm.

They plan to stay on the Gorton’s farm for another season because Rylan is about to start school and they want to provide him with some stability for his education. It will also allow them to plan their next step to go sharemilking wherever this may be.

Hinton said he is also looking to continue working as a consultant part time in between assisting Rangiawha on the farm as they look to build their cash reserves for future sharemilking opportunities and eventually, farm ownership.

“The long-term sustainable future for our children is a 400cow farm that is self-sustainable and that can support us, allow us to employ people. That’s the goal and that’s what we are trying to aim for and we want to achieve that by 2035.”

Gerald Piddock PEOPLE Awards

WINNERS: Kali Rangiawha and Will Hinton contract-milk a 350-cow herd on a 113ha farm for Tim and Victoria Gorton in Manawatū.

ON TOP: New Zealand Share Farmers of the Year Will Hinton and Kali Rangiawha with their children, from left, Rylan, Blake and Billy.

FEDERATED FARMERS

Vol 2 No 20, May 27, 2024

Welfare key to live export return

Federated Farmers want to see the return of cattle exports but are firmly of the view that animal welfare and New Zealand’s international reputation must be protected first.

That’s the clear position Richard McIntyre, the organisation’s animal welfare spokesperson, stepped through this week on the Federated Farmers Podcast.

“We want to see the Government give live exports of cattle the green light again soon, but there are a few concerns about animal welfare that will need to be addressed first.

“There need to be assurances that any animal being exported will be safe and comfortable not just on their journey, but at their destination too.”

National, ACT and NZ First all committed during election campaigning to reversing the ban on animal exports – which came into effect last April – and putting in place enhanced animal welfare standards.

Acknowledging many people, including farmers, have concerns about the export of animals, McIntyre says scrutiny of the industry is a positive thing.

“I actually think it’s a really good thing that there’s been a lot of discussion about cattle exports because it shows just how concerned New Zealanders are about animal welfare.

“They want to know that the animals leaving our country are going to have a good voyage and that they’ll be treated well at their destination country too.

“Federated Farmers share those

views. That’s why we’re 100% supportive of the sector-initiated ‘Gold Standard’ animal welfare precautions put forward as a caveat on any shipments from our shores.”

Prior to the previous Government’s ban, live exports were a significant earner for farmers, particularly when domestic market and environmental conditions were unfavourable.

Live exports earned New Zealand around $300-$400m a year, although that jumped to $524m in 2022, with the ban on the horizon.

McIntyre says it’s important for people to understand that no cattle are exported live from New Zealand for slaughter.

“The cattle we export are all for breeding purposes. Some countries do live export for religious slaughter trade, but that hasn’t happened in New Zealand since the 1990s.”

Another concern some farmers have is that New Zealand loses genetics to other countries that compete with us.

“I understand why people have those concerns, particularly after we managed to export kiwifruit cuttings to other countries, which now compete with our kiwifruit growers,”

McIntyre says.

“There’s already a significant trade in dairy semen and embryos both from and to New Zealand.

“So, those genetics are already being imported and exported freely. We’re not enabling another country by exporting our genetics”.

McIntyre was joined on the podcast by Brian Pearson, general

At the end of the day, it’s in everyone’s best interests to see the animals arrive at their destination healthy and happy.

Brian Pearson BeefGen

manager at livestock export business BeefGen.

Pearson, who’s been involved in the cattle export industry for decades, says animal welfare and safety standards have been steadily improving.

“It’s a heavily regulated industry. For example, with stocking densities in the pens, every animal must be

able to lie down and have room to move and stretch out.

“They’ve got to have access to water 24/7, and the cattle are usually fed twice a day.

“Sometimes they’re fed three times a day if we think the voyage is running smooth and we know we won’t be using our feed contingency.

“When there are rough seas, they sit down. There’s space in these pens for them to sit down and rest and the cattle adjust and travel very well.”

Pearson says the cattle are looked after excellently by qualified stockmen, and vets, who care deeply about the animals’ welfare.

“Our current vet is a very, very good vet. She really knows her stuff and she takes great pride in looking after the cattle.

GOLD STANDARD: Federated Farmers animal welfare spokesperson Richard McIntyre backs the return of live exports, as long as some welfare concerns are addressed.

“She calls them ‘her cattle’ when she’s on the boat. She takes ownership of them, and she feels such a responsibility.”

At the end of the day, it’s in everyone’s best interests to see the animals arrive at their destination healthy and happy, Pearson says.

“It’s pretty simple because our clients want their cattle delivered in top-notch condition. They demand excellence.

“They want the animals to come and transition into the systems over there easily, so if we’re not doing this right, we’ll lose our clients.”

McIntyre says Federated Farmers is hoping to see legislation introduced by the Government later this year to get cattle exports going again. Hear the podcast episode on live exports at fedfarm.org.nz

Feds douse FENZ levy increase idea

Federated Farmers are pouring cold water on talk of increases in fire and emergency levies and other changes that will hike insurance bills for rural businesses.

When rural, urban, career and volunteer fire services were merged to form Fire and Emergency New Zealand (FENZ) in 2017, there were forecasts of $400m in immediate savings, followed by ongoing efficiencies.

Unfortunately, those savings have not transpired, Federated Farmers national board member Toby Williams says.

“Instead, the cost of running the organisation has continued to grow year on year.

“Households and businesses are tightening belts and government departments are being required to find savings. It shouldn’t be any different for FENZ,” Williams says.

The FENZ levy applies to property and motor vehicle insurance premiums.

A 12.8% increase in levies from 1 July this year is already locked in, reaping an extra $85m from people who pay insurance in the next two financial years.

In a plan now out for consultation, FENZ proposes a further increase of 5.2% from 2026-2029.

It says it’s to cover things like workforce sustainability, substandard fire station upgrades, and the fact a quarter of its fire engines are “well past their current lifespan”.

FENZ proposes a modest levy drop from 11.95c per $100 of nonresidential property insurance that will apply from 1 July 2024, to $11.51 from 2026.

But offsetting this is a long list of non-residential property that, from 2026, would no longer be exempt from the levy on insurance.

The list includes hazardous substances, fences and retaining walls, water tanks and towers, septic tanks, water reticulation pipes, electrical supply and telecommunications cabling,

Rising insurance premiums are now one of a farm’s most significant costs.

Chris

Dillon Federated Farmers

livestock, crops, silage and hay, transport infrastructure (roads, bridges, paths, etc.) and forests.

“Individual farm circumstances will vary, but Federated Farmers believes the need to insure these no-longerlevy-exempt assets will introduce new costs that significantly outweigh the slightly lower levy,” Williams says.

“Unlike for residential insurance, where the levy would be capped at a sum insured of $625,000 (home) and $75,000 (personal property), there’s no cap proposed for non-residential insurance.

“That’s a double standard, and a subsidy of homeowners by businesses.”

FENZ says it’s interested in making sure homeowners have insurance and don’t under-insure.

But Chris Dillon, who has just stepped down as Federated Farmers Southland president, says the list of assets that would no longer qualify for a levy exemption could well spark farm under-insurance.

“Rising insurance premiums are now one of a farm’s most significant costs.

“We’re already seeing farmers looking for ways to cut premiums, including reluctantly opting for a higher excess,” he says.

In its April 2024 report ‘Up in Smoke’, the Taxpayers’ Union says FENZ costs have blown out by 49% to $737.3 million in 2022/23 – 68% higher than Cabinet expectations in 2016.

Management and support staff have increased by 31% in the fiveyear period while the number of career and volunteer firefighters is up only 5%.

There has also been a large increase in professional fee and consultant expenses, especially in the last two years.

However, the Taxpayers’ Union acknowledges a PwC report that

found the predecessor organisations may have been light on operational and strategic planning functions.

Williams says Federated Farmers wants the setting of a new levy rate to be deferred until cost and performance questions raised in the Taxpayers’ Union report have been addressed.

“We also want to first see that FENZ can demonstrate the same degree of fiscal responsibility demanded of other government organisations.”

Federated Farmers’ concerns don’t end with financial matters.

“We’re worried that, under the new integrated model, fire managers with rural fire expertise are being sidelined and that higher ranking fire managers whose experience is almost entirely urban are running major responses in rural areas,” Williams says.

“The creation of FENZ and increased use of contractors in the forestry industry has reduced expert development pathways for rural fire managers.”

FENZ’s rural firefighting capability concerns are shared by the New

WHY? Federated Farmers is questioning FENZ costs, and a perceived lessening of expertise in fighting rural fires.

Zealand Institute of Forestry, whose president James Treadwell says the people with rural expertise now get called in too late.

“A key with fighting wildfires is to hit it hard at the beginning,” Treadwell says.

“In the first Port Hills fire, they sent in an urban team and one of the first on the scene was quoted in the paper as saying he just didn’t know what to do as the fire got bigger and bigger.

“At Pigeon Valley in Nelson, the person who called it in warned them they wouldn’t get a tanker across the fields because they’d just been ploughed. This wasn’t heeded and it was probably an hour and a half before they got anything useful underway.”

Williams says, under the previous National Rural Fire Authority, key performance indicators (KPIs) enabled meaningful and transparent measures of performance for readiness and responses in rural areas.

“We want a return to those KPIs,” he says.

FED UP WITH RED TAPE?

W E H E A R YO U !

That’s why Federated Farmers handed the Government a 12-point plan to cut unnecessary cost, compliance, and complexity from your business.

S O, H OW A R E T H E Y G E T T I N G O N

1.

2.

3.

4.

5.

7.

9.

10.

11.

12. A l l o w y o u n g f a r m e r s t o a c c e s s t h e i r K i w i S a v e r

We’re making great progress but need your support to maintain the momentum. Our message is louder when we speak as one voice. That voice is Federated Farmers.

Brynderwyn closure puts lives at risk

Northlanders’ lives and wellbeing are in jeopardy from the ongoing closure of the Brynderwyns, Northland Federated Farmers president Colin Hannah says.

Hannah says the State Highway 1 road closure – the gateway to Northland – seems to be going on forever and is creating immense economic and social hurt in Te Tai Tokerau.

“Our government and roading officials need to wake up and sort this mess out once and for all.

“I am far from convinced that NZTA has the ability or interest to build a four-lane highway from Warkworth to Whangārei,” says Hannah.

“I’ve had numerous trips outside the Northland region recently and the alternative routes are the pits.

“The last round trip to Auckland was six hours of travelling time, which makes for a long and expensive day.”

State Highway 1 over the Brynderwyn Hills was due to reopen in mid-May but two slips in April have pushed the reopening back to the end of June. That adds seven more weeks to the originally intended nine-week closure.

Hannah says Northlanders’ link to the outside world has been cut on and off for around 18 months since Cyclone Gabrielle, taking a huge toll on the region.

“If you use the NZIER daily economic estimates, that equates to more than a $2.5 billion hit to the Northland economy, which is a large sum by any one’s standards – and that doesn’t even include the cost of repairing the Brynderwyns.”

Hannah says a respected heavy transport operator has stated how costly the closure is to them and that they have no option but to pass on the costs.

“So, all Northlanders pay for this in one way or another.

“Another operator told me they didn’t mind paying toll charges to go towards building a sustainable and resilient four-lane highway into

Northland. I agree that’s a good idea to help bring about efficiencies in fuel and time and reduce climate change impact over time.

“But the build needs to begin immediately because, right now, we’re without this essential piece of infrastructure and we’re being heavily handicapped.”

Hannah says having a decent main road would allow farmers to get their stock to the works faster, so they don’t lose so much weight in transit.

“That would mean we might even get paid enough to have an occasional visit to town for coffee.”

He believes Northlanders would also take on additional risks and investment if they could get grown and manufactured products to market quickly and reliably, creating more employment.

Hannah says it’s unfortunate that

Flo ck House

I’ve lost count of how often I’ve almost been run off the road by people cutting corners. Sadly, Northland has one of the worst crash and death rates in New Zealand.

Colin Hannah Federated Farmers Northland president

damage to alternate roads, never designed to be state highways, will require a considerable sum to restore them to their original state. That is putting unfair pressure on the Northland Transportation Alliance, while also creating chronic and deathly safety issues on rural Northland roads, which are simply not up to standard, he says.

Northland Road Safety Trust manager Ashley Johnston and Northland road policing manager, inspector Anne-Marie Fitchett, say the 2024 road toll is already too high in the region, with 20 deaths (to May 17) due to road crashes.

Johnston says it is critically important to continually bring focus to the need for safer driving habits, as Northland’s unacceptably high road toll keeps rising.

“Our driving culture in Northland needs to drastically change,” the pair say.

“We can’t keep up the belief that ‘it won’t happen to me’ or ‘I’m an experienced driver, so I can safely speed’. Too many have fallen victim to that attitude in Northland,” Fitchett says.

“Rather than just blaming the roads, let’s adjust our behaviour so we can all be safe.”

ISOLATED: Federated Farmers Northland president Colin Hannah says Northlanders’ link to the outside world has been cut on and off for around 18 months since Cyclone Gabrielle, taking a huge toll on the region.

Fitchett says the hurt to Northland families following crashes is immense and often lasts a lifetime.

“Making good driving decisions relies on a clear head, following the law, and considering the impact of our driving on others.”

Hannah agrees, saying drivers need to take responsibility and buckle up, because not wearing a seatbelt means there’s minimal protection in a crash.

“Similarly, people need to stop driving impaired on Northland roads, slow down, and be courteous to other road users.

“I’ve lost count of how often I’ve almost been run off the road by people cutting corners. Sadly, Northland has one of the worst crash and death rates in New Zealand.

“It needs to change, which will require a better driving culture and a better roading system.”

Come and celebrate 100 years with us.

We will be gathering on 20-21 July 2024 to commemorate the 100th anniversar y of Flock House opening. For anyone with a passion or link to its histor y we would love you to join us

20-21 July 2024 w w

Photo

Karapiro, Cambridge 41 Karapiro Road

Rural opportunity with huge potential

Deadline Sale

3 1 1 1

41 Karapiro Road is situated in a private secluded setting and is nestled by nature. Conveniently located approx 8.5km from Cambridge and approx 6km from Lake Karapiro Embrace the opportunity to make this property your own haven combining the tranquility of rural living with the convenience of nearby town amenities This 3-bedroom home sits upon 25.173 hectares. The effective area is circa 13.17 ha consisting of multiple paddocks and central race system. The property benefits from brand-new high spec post and rail fencing throughout A horse arena, stables, shedding, turnaround, stockyards, weighing and loading ramp make stock management a breeze.

The balance of the property consists of two gulleys, flooded with nature and a plethora of wildlife. The gullies are accessible by track and are ready for you to explore. The creeks encompass two beautiful waterfalls and a number of small ponds.

You decide my future

Our vendor has instructed they want their farm sold this season with settlement early July 2024

• 76 ha (more or less) in one title of all-flat contour with the option to "lease to buy" approx 12 ha (STS)

• Cows are available to be purchased with the farm

• Farm is located minutes to Paeroa township

• Farm improvements include 24 ASHB dairy shed with in-shed meal feeders, 16T silo, 5-bay implement shed with concrete floor, two calf sheds

• Large four-bedroom weatherboard dwelling

Deadline Sale closes Thursday 30th May, 2024 at 3.00pm, (unless sold prior)

View By appointment

Web pb.co.nz/CBL119518

Russell Thomas M 020 4004 0360 E russell.thomas@pb.co.nz

Angela Thomas M 020 4004 0368 E angela.thomas@pb.co.nz

Tender closes 2.00pm, Thu 6th Jun, 2024, Property Brokers, 78 Studholme Street, Morrinsville

View Thu 30 May 12.00 - 1.00pm Web pb.co.nz/MAR182144

Ian Morgan M 027 492 5878 E ian.morgan@pb.co.nz

Chelly Aitchison M 022 697 8779 E chelly@pb.co.nz

Scan for more

Paeroa 244 Rotokohu Road

Lawrence 63 Gunn Road

The sellers have

and

Located at 29A Arrowville Road, Pukekohe on 7.0320 hectares of flat land are four quality broiler chicken sheds, with a total 8528 square meters, running close to 150,000 chickens per run.  The sheds have the latest equipment and strong maintenance programme, which keeps this farm in top order. The office block has the usual amenities, including the generator room and

that has the following motto: quality, integrity, positive attitude, accountability, honesty and prosperity. Chicken farming has proven to be robust, and reliable with consumption surpassing that of beef. An editorial in the Washington Post in 2014, said that chicken consumption throughout the world would outstrip other meat by 2023, this happened years earlier.

If you are considering a change in your life, then chicken farming will change your lifestyle. This would suit a farming family who enjoy rural life and working from home without long extended hours. Even if you are just thinking of a change, then please call and discuss this opportunity. The agent has previously been a chicken farmer and is able to give a complete insight into chicken farming. You are welcome to call and discuss this success story. Owner motivated to sell.

Ashburton 1963 Ealing Montalto Road

Head Auctioneer - Canterbury

and

The Forest Growers Levy Trust is conducting a national round of meetings to discuss the proposal to renew the Forest Growers Levy for

For more information go to https://fglt.org.nz

•

A foundation of skills and background that allows you to learn quickly and provide governance lev of the below areas is also valuable:

The appointment(s) will take effect from the Annual Meeting in November 2024 for an

The OSPRI Stakeholder s Council is responsible for recommending Board appointees to shareholders Stakeholders Council Chair – Dr James Buwalda – is leading the recommendation process

If you are passionate about the success and development of OSPRI and can

experience to contribute as a director please register your

Tour 1: Tour 1 Molesworth Station, St James, Mailings Pass & Rainbow Stations

Dates: Nov 11-14, Feb 3-6, 17-20, March 17-20, 24-27, April 7-10, 14-17

Tour: 2 D’Urville Island & Marlborough Tour

Dates: Feb 19-23, March 24-28

Tour 3: North Otago Tag-along Tour

Dates: March 11-15

Other dates could be available for groups of 6 or more people on request.

HORTICULTURE

food. As seen on Country Calendar. Orders to: 03 322 6115 or info@nzkelp.co.nz

RAMS FOR SALE

WILTSHIRES-ARVIDSON. Self shearing sheep. No1 for Facial Eczema. David 027 2771 556.

WORD ONLY

ADVERTISING. Phone 0800 85 25 80.

SHEEP SCANNING AVAILABLE

OVER 20 YEARS experience. Owner/operator. Three way draft. Marking included. Approved marker supplied. No mileage or set up fee. To identify empty/single/twins and lates if required .65c. To identify triplets please contact me to discuss best economical options. Areas covered Hawkes Bay, Taihape, Wairoa, Whanganui, Wairarapa, Central Plateau. Contact Greg on 027 588 900.

STOCK FEED

BALAGE $75 a bale +GST. Hay rounds 15 equiv. $85. Straw rounds, 15 equiv $60. Unit loads available. Phone 021 455 787.

WANTED TO BUY

WHAT’S SITTING IN your barn? Ford, Ferguson, Hitachi, Komatsu, JD. Be it an excavator, loader or tractor, wherever it is in NZ. Don’t let it rust. We may trade in and return you a brand new bucket for your digger or cash for your pocket. Email admin@loaderparts.co.nz or phone Colin 0274 426 936.

with us Call 0800 85 25 80 wordads@agrihq.co.nz

SALE TALK

Green, the local athletic champion, was not shy about blowing his own horn. Whenever he had a chance, he went on and on about his athletic prowess. Everybody in the club had heard the same stories over and over, and could recite them by heart.

One day he was going on and on again, when a newcomer spoke up. “Green, I will bet you a hundred dollars that I can wheel something in a wheelbarrow from one end of the football field to the other, and you can’t wheel it back.”

Green looked the newcomer over. He certainly wasn’t a hefty sort of guy. He thought of bags of cement, bricks, iron, sand, and concluded that whatever the newcomer could do, he could do better.

“You’re on,” he said, and they shook on it.

Everybody followed them out of the clubhouse and walked to the field, while somebody was sent to borrow a wheelbarrow from the grounds staff. Green and the newcomer walked to one end of the field and drew a starting line.

When the wheelbarrow was ready, the newcomer rubbed his hands, picked up the handles, and said, “Green, my friend, get in.”

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TWIN OAKS BULL SALE

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BELOW SEA LEVEL

J & J Bellamy, Ruawai 021 122 7710

MATAKANA

S & J Paddison, War k wor th • 021 165 3922

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M & S Forsyth, Auck land • 021 185 8222

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G & S Parr y, Waiuk u 020 406 31054

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T Hansen, Taupir i 027 380 1204

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S Mitchell, Hamilton • 03 543 2082

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C & C King, M ok au 06 752 9863

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Faster finishing the wave of the future

Hugh Stringleman MARKETS

Sheep and beef

NEAT Meat founder Simon Eriksen says the future of New Zealand’s red meat industry lies with increasing beef finishing efficiency.

“Over the next five to 10 years farmers need to look harder at changing beef breeds to move their cattle through quicker.

“You cannot afford to hold stock over three winters.

“It is obviously better to get the full value of the animal at 500 days of age rather than 1000 and finish them during their second winter.”

The meat industry also needs to find ways to add value to the greater parts of the carcase that are not top-end table cuts.

Eriksen sees the dairy industry as being an increasing source of beef as the limits go on the expansion of the hill country beef herds.

More than 180,000 stock units have been replaced by trees in the North Island or 20,000 equivalent cattle. With the national kill of 3,840,000 declining this year by 3% that is a total of 115,000 beef cattle missing.

Beef breeds that cross well over dairy cows are likely to see the most growth in the next few years and that is a huge opportunity for the Speckle Park breed.

The dairy industry also needs to find ways of humanely and profitably dealing with 2 million

bobby calves annually, which is an opportunity for the whole meat industry.

It has been a paddock-to-plate journey in the meat industry for Eriksen, one of three brothers in an east coast farming family west of Gisborne.

After Massey and a degree in agribusiness he went OE to London, where he worked on farming wild boars to supply free range pork to Waitrose.

Back home in 2001 he began Neat Meat by supplying Australian beef to Auckland restaurants, forming enduring relationships in the hospitality trade.

Switching to NZ-sourced meats, he moved into differentiated meat types and cuts and then into branded products, being in at the ground floor with Angus Pure.

Simon was joined in the company by Andy Ham and his brothers Will and Tim Eriksen and while the company is much bigger than the three brothers, it will always be a family business.

Neat Meat, along with Mark Hunter, bought Harmony Meats off the Wallace Corporation in 2010, adding organic beef and lamb to the free range pork.

In 2014 they partnered up with Mike and Sharon Barton to introduce Taupo Beef to the stable.

Eriksen and his team now manage 20 meat and poultry brands.

One of the newest is Speckle Beef, now supplied to 60 restaurants and eight premium butchers, and beginning to find export markets around resorts in the Pacific Islands.

Neat Meat also sells Speckle Beef online.

“Speckle Park is the perfect breed where everything comes together – good size and temperament, moderate birth weights, fast finishing with high marbling percentages, distinctive colour-coated, environmentally sustainable, and expressing dominance with these characteristics in the F1 crosses.

“Our development as a company and brand experiences beforehand have culminated in Speckle Beef.

“We workshopped the naming of the brand and initially we sought to exclude the cattle breed name,

Speckle Park grows quality and grazing efficiency by using the dairy-cross resource and getting to market without a second winter.

Simon Eriksen Neat Meat

but now Speckle Beef says it all really – coat colours and marbling as the defining characteristics.”

Neat Meat’s processing partners are Alliance Group at Mataura and Levin and Taylor Preston in Wellington.

Neat Meat offers cattle suppliers premiums for marbling score over the prime price schedules – 20c/ kg extra for scores 2 and 3, 40c for scores 4 and 5 and 60c for 6 and above.

Through the meat companies and livestock agencies it sources reliable finishing farmers who produce mainly Speckle Park F1 steers and heifers.

“The fundamentals of a meat brand are good genetics and good farming with strong and trusted relationships along the supply chain.

“In the evolution of beef brands, Angus Pure was about the breed, Taupo Beef was about care for the environment and Speckle Beef is a combination of everything we have learnt over the 20-plus years of this company.”

Grading and verification are important parts of the whole eating experience for consumers, along with quality and variety of the lesser cuts.

“We have paid the farmer a premium and we need to recover that with the quality and the good story, from paddock to plate.”

The F1 crossing over dairy cows is the way of the future, where verified Speckle Park bulls and semen produce easy-calving, fastgrowing calves that express beef marbling at a young age.

The coat markings are so dominant that cattle with lower percentages of Speckle Park can grow quickly but not express the marbling, which then becomes a waste of time along the value chain.

characteristics.

“Speckle Park grows quality and grazing efficiency by using the dairy-cross resource and getting to market without a second winter.”

Simon Eriksen said he would love to see specialty butchers telling stories about their meats, offering a range of quality alternatives and not confining themselves to stocking just one origin.

“Consumers would have many choices and they will select like they do in wine stores, from the range of pinot noir or chardonnay.”

The restaurant equivalent would be front-of-house staff telling the authentic stories about options on the menus.

Neat Meat in its own words

NEAT Meat brings the best quality produce from the farm to the dining room table. Our point of difference is that we let consumers enjoy restaurant quality meats straight from their door.

Sourcing the finest meats and poultry from our farmer partners, raised with care, and prepared with precision.

With a superb taste and sensational tenderness that leaves nothing behind but clean plates and satisfied smiles!

“Neat Meat’s mission is that all products be delivered in the most convenient, efficient, and sustainable way,” founder Simon Eriksen said.

“It’s the right thing to do, it’s what the customer demands, and it’s a way to pay proper respect to the work put in by our farmers.

“To stay ahead of the game and keep Neat Meat growing, innovation is essential to futureproof our business.”

– Neat Meat website

SPREADING: Speckle Beef is featured in over 60 outlets such as restaurants and specialty butchers, supplied by Neat Meat.

FOUNDER: Neat Meat principal

Simon Eriksen and his team now have 20 meat brands in their stable, including Speckle Beef.

SPECIFICATION: Alliance Group and Taylor Preston have embraced the processing and scanning of premium Speckle Beef.

DESTINATIONS: Speckle Beef-cross cattle carcases await breaking down in the chillers.

ON BRAND: The brand shows coat colour and marbling as de ning

Where do the Speckles come from? Canada

THE Speckle Park beef cattle breed is one of the fastest growing in the world, producing high dressing percentages in first-cross cattle with great meat-eating quality.

First developed in Canada in the 1940s, they are usually polled, of British-bred origin from AngusShorthorn and White Park breeds, and moderate in frame size with strongly repeatable coat colours and patterns.

Speckle Parks are moderate sized and mature cows weigh between 600-850kg and mature bulls over 1000kg. The calves average 3040kg at birth and wean at around 230kg to over 370kg.

In the 1960s the Lamont family of Saskatchewan bred their

“speckled” cows to Angus bulls and the offspring came in a variety of colour patterns, some white with black points, some leopard coloured and some black sided with speckled hips, white top and underline and roan faces.

Over time the Lamont’s selective breeding created highquality carcase cattle with low to moderate birth weights.

They named the progeny Speckle Park cattle.

Calves and weaners achieved premium prices through the saleyards and interest among farmers grew.

Other beef cattle breeders saw them come through the saleyards where they achieved a premium price.

Within a few years a dedicated group of breeders, mainly from Saskatchewan, were breeding Speckle Park cattle.

An association of breeders was

REPLACEMENT: Quick-growing calves are a characteristic of the Speckle Park breed.

incorporated in 1993 and the cattle breed was declared a distinct pure-bred in 2006 by the Canadian Minister of Agriculture, the first and only time this has happened.

Genetics have since been imported into NZ and Australia, where the breed has adapted extremely well. It is now the fastest growing cattle breed in Australasia.

In 2006 Bruce McKenzie from Maungahina, Masterton, and Raymond Matthews, Waiorongomai, Featherston, first viewed the Speckle Park cattle at the Canadian Agribition.

Speckle Park steers had won the Hoof and Hook competition in 2001, 2003, 2004 and 2006 and stood out beside all the other traditional and exotic breeds.

In 2007 Mark McKenzie from Maungahina went to the Canadian Agribiton where Speckle Park cattle took his eye.

Mark found them to be well structured, moderate framed and soft, easy keeping cattle.

In 2008 Maungahina and Waiorongomai formed a partnership, Speckle Park NZ (SPKNZ), with imported embryos and semen from Canada.

Lindsay Jones imported the embryos and formed his own stud, Mainstream Speckle Park, and supplied some of those embryos to the partnership formed between Maungahina and Waiorongomai.

Seventy pure-bred calves over the two years resulted in the best genetics selected from Canada.

Five years later there were enough cattle to be able to dissolve the partnership and split the

numbers between Mark McKenzie at Maungahina and Charlie Matthews at Waiorongomai, which is also has the oldest Romney registered flock.

McKenzie and Matthews were foundation directors of Speckle Park International in 2010, the world breed organisation.

In the 1960s the Lamont family of Saskatchewan bred their ‘speckled’ cows to Angus bulls and the offspring came in a variety of colour patterns.

The role of NZ representation is now filled by Mark Tiller from Aniwania stud near Gore, and Robbie Clark, Parkvale stud, Culverden.

Dressing percentages in the firstcross cattle are in the mid to high 60s.

For many Speckle Park breeders, what they value most about the cattle is their quiet temperaments.

A key to greater weight gains and a safer, low stress working environment is to work with docile cattle, and Speckle Park – managed properly – tick that box.

The calves reach puberty early and females cycle early and breed easily. The cows are also very maternal with good udders. The bulls sexually mature at about 12 months and make good yearling breeders.

Calving difficulties are low because the breed has slimmer front shoulders and when the calves hit the ground they are up and suckling very quickly.

Commercial farmers are increasingly finding Speckle bulls a wise choice for breeding heifers, due to the ease of calving and the increased quality of the carcase.

The breed has high marbling with a perfect fat covering, overlying consistently high-quality and tender meat.

Speckle Park express considerable hybrid vigour in a first cross, and they are widely known for high yields and softness of carcase.

Mentorship from brand champions

SPECKLE Beef is being processed by Alliance Group and Taylor Preston in the lower South Island and lower North Island respectively, partnership manager Grant Bennett says.

A group of 20 cattle finishers and suppliers are mentored and coordinated by Bennett, who has his own Totara Hill Speckle

Park breeding business in Wairarapa.

He charges no fee and takes no cut, ensuring that the farmers receive the full payment from the meat company’s prime beef schedule and the Neat Meat marbling premiums.

“We work with finishers to ensure a year-round supply of Speckle Beef to our restaurants and retailers, taking account of the seasons and weather patterns.

“Sometimes it means moving store cattle that are near finished

and fine-tuning the stock management skills and genetic selections,” he said.

His procurement role is to “work with genuine good buggers” and build trust in the brand and the people behind it. Other livestock agencies are helping with coordination, he said.

He is passionate about the Speckle Park breed, its docility, growth rates and ability to lay down marbling and the right fat cover on New Zealand’s pastures.

“We can tell a better story about the cattle and how we finish them, because genetics are perhaps 40% and the rest is feeding and processing.

“How they marble at a young age and finish before the second winter, with the environmental benefits that brings.”

The Speckle Beef volume should go over 5000 head of cattle annually within the next 12 to 18 months, Bennett believes.

Neat Meat principal Simon Eriksen said Bennett is the founding partner of the Speckle Beef programme and that without his input and cattle genetics it would never have happened.

HERITAGE: Speckle Park cattle strongly display their British bloodlines, having been brought to New Zealand via Canada and Australia.

PREMIUM: Speckle Beef prime cuts have the intramuscular fat content measured and rewarded.

FOUNDATION: Cattle breeders Grant and Charlotte Bennett, Totara Hill, have developed the Speckle Beef brand programme and its logistics.

Breeding that’s doing what dairy farmers want

Hugh Stringleman MARKETS Genetics

KAIPARA dairy farmers

Stephen and Andrea Bracey heartily recommend the use of Speckle Park semen and bulls for the tail end of crossbred dairy cow mating.

For the past six years they have been rearing about 50 Speckle Park-cross calves along side 60 Angus-cross calves, all the female dairy calves, some Jersey-cross calves out of the dairy heifers and some Angus beefies.

The Speckle Park dairy-cross calves stand out for their vigorous feeding, right from the drop, and their quiet temperaments.

Andrea has also been impressed by the growth rates to weaning, at eight months when they sell the heifer calves, and at closeto-finishing, when they sell 18-month-old crossbred steers before their second winter.

Recently she consigned a little older group of 25 steers to Wellsford Saleyards, where they averaged $1250, or $3.20/kg for 390kg LW.

“We would like to finish them ourselves and go for the high yields and marbling levels, but the Kaipara climate, our flats and hills do not allow that. Our dairy replacements have to be the priority.

“Speckle-crosses don’t show up in the saleyards very often, because they sell privately on Trade Me with plenty of demand.”

Mating is a carefully planned season for the Braceys.

The 480 crossbred dairy cows have three weeks of dairy AI followed by 10 days of Ponderosa bull semen from neighbourhood Speckle Park breeders Below Sea Level.

The Bellamy family at BSL have the NZ ownership of Australian ET bull Ponderosa, with semen stored at LIC.

Then both Speckled Park

purebred bulls and Pure Angus Bulls are chosen to run with the tail-enders.

Following the verified progress Below Sea Level has made with lower calf birth weights EBVs, all natural-born purebred SP bulls will be used by the Braceys this year, who need to have calf weights in the range 30-35kg.

Milk powder feeding takes about 12 weeks from birth, targeting over 100kg LW before weaning.

Born in August, 30 of last year’s SP-cross heifers were kept to February and sold privately at around 140kg in the Kaipara region for $650.

Run in two mobs of 50-plus head with the Angus-cross calves, they certainly attract a premium price, Andrea said.

The Braceys used Angus bulls over their later cycling dairy cows for many years but found that the crossbred calves tended to lose weight in feed pinches.

A Speckle bull from BSL was used as a stop-gap measure over the beef cows and the SP-Angus progeny outperformed their pure Angus herd mates.

“You can look at SP-crosses alongside Angus at the same age and they look bigger, but while the Angus are 15kg heavier, the SP-crosses are lighter framed but carry more meat.

“We find that the SP-crosses don’t lose condition as readily and continue to look their best when it comes to sale time.”

Bracey keeps meat from SP-cross steers in the freezer for home eating, with good marbling from a cattle beast that didn’t get to two years old.

“He wasn’t that fat, but he still is good eating.”

Speckle-crosses don’t show up in the saleyards very often, because they sell privately on Trade Me with plenty of demand.

Andrea Bracey Kaipara farmer

Below Sea Level has a herd of 200 recorded Speckle Park cows, built up over 12 years and now one of the largest for the breed in NZ.

John and Jan Bellamy, with their children Cory and Danielle, aim for low-birth-weight calves, early gestation, high fertility and docility.

Intramuscular fat on grass is also a target.

The beef cattle are run alongside a 600-cow dairy herd and around 20 two-year Speckle bulls are sold privately to repeat dairy and beef farming clients each year.

BSL sold 30 females last year and will do the same this year.

Everything is scanned and DNA tested before sale and reports of

how the bulls have performed and the progeny results are eagerly received by the Bellamys from around the country.

BSL has imported semen and embryos from Canada and John and Jan have toured there twice, enjoying the popularity of the breed and the hospitality of the breeders.

On a nearby Ruawai farm BSL has 70 Speckle heifers, 150 calves and about 80 bulls.

“With the imported genetics, we like to rear the bulls to two-yearsold to find out what they can do on grass alone,” Jan said.

Both farms have hard surfaces to stand off all cattle during wet periods, where they are fed silage, and the feet on imported Speckle genetics have coped well with extremes of both wet and dry.

“Speckles are doing what our clients want them to do, which is finish in prime grading within a two-year period,” Jan said.

The best expression of the spotted coats, which clients prefer for their stand-out markings, come from white Speckle bulls over dairy cows.

Counting up the Speckle Park advantages

SPECKLE Park cattle have a very good story to tell to market their farming and beef qualities, finishing farmer Gavin Tayles says.

“In our experience with Speckle Park and dairy crosses, they are easy to rear, have strong sustainability credentials and produce good prime beef from what might have been bobby calves.”

Gavin and his wife Kylie have been increasing their involvement in Speckle Park crosses for the past five years and expect to market close to 200 steers and heifers into the Speckle Beef programme this year.

Up to 80-100 of those animals will be F2 crosses out of once-bred F1 Speckle Park heifers.

They believe Speckle Park is like a dual-purpose breed because of its ability to produce marked calves from dairy cows, strongly identifying those that will be reared for beef and not accidental dairy replacements.

Located at Riversdale in Southland, the Tayleses’ aim is to finish cattle within two years, which is more achievable with the Speckle Park programme.

Until now the limited availability of genetics that offer early maturing cattle means

the Tayleses have elected to take their SP-crosses through a second winter, using fodder beet supplementation.

“With the genetics coming through and some refining of our system we expect to be able to bring those kill dates forward.

“The early depositing of intramuscular fat [IMF] and the Speckle Beef programme make that finishing target more achievable.”

Gavin thinks IMF marbling will possibly be stronger in SPKiwicross compared with SPHolstein Friesian.

There is work to be done on the SP genetics package to tailor the right sires to each dairy breed, in terms of calf growth weights, low birth weights, gestation lengths and IMF scores.

Kylie has found SP calves to be very easy to rear compared with some other beef breeds and their F1 crosses.

She has reared 130 SP-cross calves this year and they are hoping for twice that number next year, bought in from dairy farms in Southland who use SP genetics during the later stages of mating.

The marbling premiums over the prime beef schedule make it worthwhile to commit to

producing Speckle Beef and gear up for larger numbers, Gavin said. They have purchased weaners and 18-month cattle to make up livestock numbers. The capacity of their farm would be around 300 calves reared and finished each year.

In the earlier years the Specklecrosses yielded and IMF-graded better than other dairy-beef crosses in the same year.

“That added confidence for us to keep on the path we are on and grow our numbers.”

The Tayleses are keen on the utilisation of what would be otherwise wasted bobby calves and the environmental sustainability veracity.

“The dairy-beef calf utilises the carbon footprint of the dairy cow and therefore is an efficient way to provide low carbon footprint beef calves.”

Gavin’s experience of the eating quality of the SP-dairy cross beef he said was at least equal to if not better than that from pure beef

SATISFIED: Kaipara dairy farmers Stephen and Andrea Bracey use Speckle Park semen and bulls to tail up mating in the crossbred dairy herd.

PROFITABLE: This line of Speckle Park-cross steers made $3.20/kg LW at about 20 months.

LUXURY: Speckle Park-cross calves enjoy sunshine, shelter, bedding and regular feeding on the Riversdale farm of Gavin and Kylie Tayles.

Promote your sale with the channels that farmers trust

Contact Andrea to discuss how we reach buyers nationwide 027 602 4925

Middle Creek Speckle Parks

Offered at the conclusion of the Sudeley Angus Bull Sale

546 Selwyn Lake Road, Irwell 13th June 2024

Purebred Speckle Park 18mth Bulls

Top genetics / Semen tested The breed offers:

• Great temperament

• Calving ease

• High growth rates & yield

• High meat marbling

• Suitable for any Beef or Dairy operation.

Enquiries welcome: Tom & Kath Power: 022 079 1802

Banks Peninsula Middle Creek Speckle Parks on Facebook

SONS FOR SALE BY THESE MARBLING KINGS.

Proudly sponsored by

Results as wool sticks to its knitting

Market begins to feel a bit more normal as production and sales get the fibre moving.

WHILE red meat markets have reflected market conditions and the season, the wool market has been chugging away steadily in the background. Reduced scouring capacity caused by damage from Cyclone Gabrielle did create some challenges, but the market is beginning to feel a little more normal with the Woolworks Napier scouring plant returning to maximum capacity. Wool is flowing through processing chains again and buyers and growers can trade more confidently knowing wool isn’t going to be sat in storage long term.

This year’s prices have been stronger than last year, with crossbred fleeces reaching fiveyear highs. Fusca’s indicator has the coarse crossbred fleece average at $3.19/kgCL to date this May. This is the strongest it has been since 2019 when the average was $3.11/kgCL. But while this is a positive, increased shearing costs have quickly absorbed this lift. Compared to prices received 10

years ago that were consistently mid to late-$4/kgCL, growers still need significantly more from their wool cheque to even cover costs.

But for now, in an industry that is struggling to find some positivity, this has delivered a renewed sense of enthusiasm.

Approaching winter, the focus has veered away from summer wool and turned to second-shear wools. Pricing for May has been on the rise, notably for very goodstyle second-shear wool. With limited volumes available the market has been in seller’s favour and Fusca’s indicator was at $3.03/kgCL last week. This is 20c/kgCL stronger than in May 2023. Up to $3.44/kgCL was paid on the best fleeces in Napier this month, a recent high.

This could be a tentative sign that the market is getting back on track, however, the improvement also comes on the back of improved fleece quality, which had been hampered by a poor growing season.

The most recent export data released shows that coarse wool exports (36 micron plus) to China have been increasing, albeit slowly. In March, New Zealand exported 1040t of wool to China, the largest volume since May 2023.

Buyers and growers can trade more confidently knowing wool isn’t going to be sat in storage long term.

This has been particularly beneficial for wool prices, as China tends to take the poorer quality fleeces, which in turn has lifted prices for other fleeces. Crossbred oddments are currently at a level rarely seen, commonly at $1.82-$1.92/kgCL.

Across the ditch, a similar lift

in confidence is coming through, although the market remains in a tight trading range. Results hit levels not reached for months at the most recent Australian wool auctions held last week.

The Eastern Market Indicator (Australia’s wool price benchmark) lifted to AU$11.35/ kgCL. This indicator isn’t entirely comparable to NZ’s indicators as although it includes 16-32 micron wool, it is weighted more heavily to the finer wool classes, 23 microns or less, which return a higher premium.

The Australian dollar has also

had a strong influence on prices. The AUD has strengthened by more than 1% against other major trading currencies. This meant buyers making purchases with USD or Chinese yuan had to pay a higher price to secure wool, which they have been happy to do due to a reduced supply of wool on offer. For the third consecutive week, there were fewer than 40,000 bales offered nationally, and demand is beginning to outweigh supply. This is a lift from recent weeks, due to demand outweighing supply, but prices are still AU$1-2/ kgCL behind last season.

FLEECE HIGHS: This year’s prices have been stronger than last year, with crossbred fleeces reaching five-year highs.

Sara Hilhorst MARKETS Food and fibre

Weekly saleyards

There has been some decent rainfall recorded across the South Island, in areas that have been crying out for moisture for months. Unfortunately, it has coincided with the arrival of colder temperatures and there will likely be minimal, if any, growth as a result. Rubbing salt in the wound, the store lamb market at Temuka stumbled under the weight of high supply and decreased demand. Finewool options under 30kg were capped at $53 and some traded as low as $20. Canterbury Park had a more positive sale the following day and crossbred lambs averaged 30kg and $78.50.

Dannevirke | May 16 | 254 sheep

Store cryptorchid lambs

Store ewe lambs

Prime ewes, all

Feilding | May 17 | 992 cattle, 16,889 sheep

R2 Friesian bulls, 376-470kg

R2 dairy-beef heifers, 350-482kg

R1 Friesian bulls, 225-263kg

R1 Hereford-Friesian heifers, 145-231kg

Store whiteface male lambs, heavy

Store whiteface male lambs, woolly, good

Store whiteface male lambs, woolly, medium

Feilding | May 20 | 536 cattle, 2230

Mixed-age ewes, good

Mixed-age ewes, medium-good

Prime mixed-sex lambs, very heavy

Prime mixed-sex lambs, heavy

beef-cross steers, 160-275kg

R1 Friesian bulls, 155-235kg

R1 Hereford-Friesian bulls, 128-235kg

R1 beef-cross heifers, 105-229kg

RAIN ON THE ROOF: Despite coming late in the season, the rain that fell on the roof of Canterbury Park during the sale lifted the atmosphere. A couple of extra buyers strengthened the market, as did a better quality yarding of crossbred lambs. These Perendale lambs from North Canterbury collected $89.

AgriHQ market trends

Cattle Sheep

NZX market trends

Waikato palm

High pressure giant finally lifts anchor

Philip Duncan NEWS Weather

MAY was the month of mountainous high pressure zones. Mostly based south of Australia and also to the east of the South Island, they have kept much of the South Island drier than average – although Cantabrian farmers were pleased to get some rain from the recent North Island low.

Despite that low bringing areas of flooding to the north of New Zealand, it was most likely seen as a net positive for NZ’s farming and growing industry with so many regions in a rainfall deficit lately.

High pressure remains stuck around southeastern Australia even as we turn the page on May and welcome June. But there are changes happening across the ditch with more westerlies coming in for early June and whilst NZ has had a lot of colder sou’westers this winter, a change to more westerly driven weather would be milder.

In fact that giant high pressure zone that set anchor near Tasmania half a month ago has

now finally lifted the anchor and is floating again, and should be centred near northern NZ on the first day of June (Saturday). This placement usually brings in a mix of southwest to westerly quarter winds. Milder westerlies from out of the Australia region can replace the sou’westers from off the Southern Ocean. A small difference in direction with a big consequence and it can be noticeably milder when a westerly replaces a sou’wester.

The movement of this stubborn high has both negatives and positives for us. Positives might be slightly milder weather and a bit more sunshine. Negatives might be areas still in a rain shadow effect in recent months may be no better off. It still limits rain in southeastern Australia, too.

Many parts of NZ look to become drier than usual again in the weeks ahead. The weather pattern in Australasia is showing some signs of change but it all seems very slow, like the atmosphere is made of toffee.

High pressure is still the most dominant feature of NZ and Australia’s weather going into June but the biggest changes (from

a Big Picture point of view) may be more low pressure zones south of Australia (but still maybe not for those in the southeast of Aussie) and some life in the sub-tropics off the coast of Queensland and directly north of NZ in the tropics itself, around Vanuatu, New Caledonia and up to the Solomons.

Until NZ and Australia can shake these powerful high pressure zones, stuck mostly around Victoria and Tasmania, we may still notice a lot of May’s weather carrying on into June.

High pressure also means lighter winds – and that can mean colder nights. A calm, dry, high-pressure zone generally makes for colder nights and milder days, whereas a windy southerly or sou’wester can suppress daytime maximums but significantly lift up overnight lows.

Highlights this week

• Frosts mostly confined to the interior and higher elevations of NZ, especially the South Island

• May’s final week looks chilly with sou’westers

• June might kick off with more high pressure

ACCUMULATION: Rainfall accumulation over seven days starting from 6am Sunday, May 26 through to 6am Sunday, June 2.