Rural News 21 April 2020

NEWS

MANAGEMENT

An opportunity to tell the real story of NZ food. PAGE 10

Grower urges people to eat their vegetables. PAGE 18

Go early, go hard. PAGE 5

HOME DELIVERIES RISE Lockdown lifts demand PAGE 9

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Mark Townshend says post-Covid-19 the sector should be able to grow production, lure people back to rural areas and attract new staff.

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TO ALL FARMERS, FOR ALL FARMERS APRIL 21, 2020: ISSUE 699

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Govt hits pause button PETER BURKE peterb@ruralnews.co.nz

CALLS FROM many people in the farming sector for a pause or a slowing down of the Government’s environmental reforms seems to have been heeded.

However, there is a clear indication that these will still go ahead in the future.

Agriculture minister, Damien O’Connor told Rural News the Government has made clear that its immediate priorities are around Covid 19 and getting ahead of the virus. As a result

of this, the programmes around water quality improvements and commitment to climate change obligations have been set to one side until the Covid-19 challenge is dealt with.

O’Connor says NZ’s trade figures are still pretty strong and there are still people who are looking to buy food and fibre.

“We have a reputation, which is underpinned by food safety and environmental integrity. What we have been trying to do is back up our international reputation, which is going to eventually give us an advantage as we move forward,” he explains.

“Given this, we cannot ignore the realities of that integrity of our environmental social, food safety and animal welfare standards – they are the realities of the world we trade in.”

O’Connor says the environmental issues will be put to one side for the moment.

However, later on, the Government will again engage with sector leaders to find a solution that is pragmatic and beneficial to us all.

Meanwhile, Climate Change Minister, James Shaw says Federated Farmers have been complaining about the reforms before Covid-19 came to NZ.

Speaking on TVNZ’s Q & A programme last week, he claimed there were other voices in the farming community who are saying the opposite.

However, he failed to name who these ‘voices’ were.

Shaw also claimed that while the world needs feeding – particularly in the light of Covid 19 – there will be increased demand for the highest quality, clean sourced food.

“Therefore, the environmental story we have to tell around our food production becomes more important rather than less,” he claimed.

DairyNZ’s Sharon Morrell says the

environmental issues have been widely talked about by farmers for some time.

She says it appears that farmers are not so much ignoring the reforms – but looking for ways to prioritise them.

She says one option being touted is reintroducing task force green.

This is a long-established government run programme, whereby out of work people are paid more than the unemployment benefit to work on disaster relief work or environmental projects.

Morrell believes such a programme may help accelerate some of that environmental work.

Support local Andrew Currie, who farms near Methven in inland Canterbury, is one of New Zealand’s very few quinoa growers. He says the post-lockdown environment will be very different. “New Zealand farming will be the strength of our economy. Some people will need to change occupation to more rural orientated jobs.” Currie is one of only three commercial quinoa growers in the country, the only one in the South Island, and the only one trying to do a breeding programme of golden, white, red and black quinoa varieties. He is calling on his colleagues to band together to help market their product. Currie believes, if there is any good to come out of the current COVID-19 emergency, it may be renewed support for locally grown produce.

The full story on Currie’s operation will run in our May 5 issue.

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RURAL NEWS // APRIL 21, 2020

NEWS 3 ISSUE 699 www.ruralnews.co.nz

Farmers see red over Easter shutdown DAVID ANDERSON

NEWS ���������������������������������������1-11 OPINION ����������������������������� 12-13 CONTACTS ����������������������������� 22 AGRIBUSINESS ����������������14-15 MARKETS ��������������������������� 16-17 MANAGEMENT ��������������� 18-28 ANIMAL HEALTH ������������������� 19 MACHINERY AND PRODUCTS ���������������������� 20-22 RURAL TRADER �������������������� 23

HEAD OFFICE Top Floor, 29 Northcroft Street, Takapuna, Auckland 0622 Phone: 09-307 0399 Fax: 09-307 0122 POSTAL ADDRESS PO Box 331100, Takapuna, Auckland 0740 Published by: Rural News Group Printed by: Ovato Print CONTACTS Editorial: editor@ruralnews.co.nz Advertising material: davef@ruralnews.co.nz Rural News online: www.ruralnews.co.nz Subscriptions: subsrndn@ruralnews.co.nz ABC audited circulation 79,553 as at 31.03.2019

SHAREHOLDERS AND suppliers of Alliance Group are upset that the country’s biggest meat processing company did not work during the Easter holiday period while other companies did.

Farmers around the country are experiencing long wait times to get livestock killed as the meat processing sector deals with drought in many parts of the country and slower processing caused by Covid-19 social distancing in place at meat plants.

These problems have been further exacerbated by several winter grazing contracts being cancelled in Southland – and other parts of the country – leaving farmers with nowhere for their animals to winter and now needing to be killed.

In normal years meat plants do not operate over holiday periods such as Easter. However, this year, with the huge backlog of stock to be killed, most meat processing companies – except for the Alliance Group – chose to work over Easter.

“It’s bloody disappointing to hear that Alliance did not kill over Easter, especially when other companies did,” an Alliance supplier told Rural News.

“Over the years, we farmers have dug in their pockets to help the cooperative out and at a time when we need them, they have let us down big time. Many other Alliance suppliers are pretty annoyed as well.”

In a statement to Rural News, the chief executive of Alliance Group David Surveyor confirmed the Easter shutdown.

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deserved time with their families over what has been a hectic time for them,” he said.

“Our focus has been on keeping Alliance Group’s plants running as smoothly as possible despite the challenging circumstances. We have bedded down the new run modes and are now making incremental increases in processing capacity for farmers.”

Surveyor paid tribute to his workforce who he said “have worked tirelessly to manage a whole range of challenges and ensure we are safely operating our network”.

He added that Alliance would be lifting beef and sheep processing

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capacity and there would be further opportunities to lift capacity as workers get used to the new configurations.

In contrast, suppliers of Silver Fern Farms have gone to some lengths to praise the meat company’s workforce who did kill over the Easter break. A number of farmers have even made special video tributes to honour SFF workers.

Meanwhile, SFF chief executive Simon Limmer – in an update to suppliers last week – thanked farmers for their patience as the company worked on its new processing capability during the lockdown.

“Our teams have turned their atten-

tion to how we can rebound from the current Level 4 processing constraints and return to normal operating levels – or close to normal – knowing that COVID-19 may continue to impact our business,” Limmer explained.

“We are acutely aware that you need direction from us on how long it will take to get stock processed and when we will catch up on the processing backlogs.”

Limmer said SFF had taken several actions to lift current processing levels, including: operating daily overtime and Saturday kills for the foreseeable future; investigating the option of putting on additional chains in some plants, dependent on recruitment, the ability to train and extending the season; and keeping night shifts running longer.

Meanwhile, Limmer conceded that there will continue to be wait times for getting stock killed for some time yet.

He said the current wait time for North Island beef sheep was 2-3 weeks, with the estimated time when capacity will match supply being the first week of May. The South Island beef kill has a 4-6 week wait time, with kill capacity not matching supply until the second week of June.

ANZCO chief executive Peter Conley said the company had operated over Easter.

“To help farmers get stock off farm, especially as feed becomes more challenging in many parts of the country, ANZCO operated its beef plants on three of the four days of the Easter weekend,” he told Rural News.

Conley says the company’s processing sites are operating with new strict controls in place.

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RURAL NEWS // APRIL 21, 2020

4 NEWS

Fieldays fudges over refunds MARK DANIEL markd@ruralnews.co.nz

WHILE THE wider agricultural sector comes to grips with the uncertainty of Covid-19, one prominent organisation is hanging onto its customers’ money for an event it is unlikely to deliver.

The New Zealand National Fieldays Society (NZNFS) has ‘postponed’ this year’s annual event, scheduled for June.

It is also currently hanging on to the site fees paid by exhibitors at the start of the year.

Many exhibitors, who have approached Rural News, report business has reduced to a trickle since the implementation of

the Level 4 lockdown and they are struggling with cashflow. They say they need the refund of their site fees. They claim it is unfair to have paid for an event that is not going to take place when it was scheduled – if at all.

NZNFS says it is holding onto the money to stabilise its own business.

“The ramifications of seeing National Fieldays disappearing will have a profound effect on the greater agricultural industry, but also those who form a key part of the event,” chief executive Peter Nation told Rural News.

“There could be job losses over a wide arena – such as marquee hire

Many exhibitors report business has reduced to a trickle since the implementation of the Level 4 lockdown and they are struggling with cashflow and need the refund of their site fees.

Fieldays chief executive Peter Nation claims the organisation is holding onto exhibitors’ money to stabilise its business and create a framework for moving forward.

companies, stand fitters, caterers and many other service providers.”

This same problem is facing many other NZ businesses and raises

questions about whether it is morally right for NZNFS to hold onto its

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Even if the Level-4 lockdown is eased in the coming weeks, lesser restrictions – even when lowered to Level 1 – still forbid the gatherings of more than 500 people.

This will mean that Fieldays this year is effectively not postponed, but in fact cancelled.

NZNFS say it is reviewing the situation on a three-monthly basis and looking at the possibility of rescheduling the event for later in the year.

However, if the delay pushes the event into spring, farmers will be in the midst of calving or lambing, and unlikely to attend. If it is held even later in the year it would clash with harvesting operations.

The NZNFS position contrasts poorly with that of the Central District Field Days (CD), who at one week’s notice cancelled the event and immediately refunded 100% of the site fees paid by exhibitors. This move generated much positive PR for CD and a huge sigh of relief from its exhibitors.

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press, the NZNFS stance was that it will review the possibility of holding the event before the end of the year and if this should not happen, it will consider a refund.

Interestingly, by that point it is likely site fees for the 2021 event will be due.

While the exact financial position of National Fieldays is unknown, it’s safe to assume that the pre-paid site fees for the 2020 event will run into many millions of dollars. The organisation has already received a payment in excess of $161,000 for 23 employees under the Government’s wage subsidy programme.

When asked directly

by Rural News if the organisation will refund exhibitors who have already paid a spokesperson for Fieldays replied: “We are currently working with exhibitors individually to assess what they wish to achieve of exhibiting either in Fieldays Online and/or a future event and will then work through the process of a refund if it is required.”

RURAL NEWS // APRIL 21, 2020

NEWS 5

No dividend despite SFF’s record profit SUDESH KISSUN sudeshk@ruralnews.co.nz

DESPITE MAKING a record profit of nearly $71 million, meat processor Silver Fern Farms Ltd has delayed paying any dividend.

The meat company’s joint owners, Silver Fern Farms Cooperative and China’s Shanghai Maling, have requested that a dividend be deferred until the economic situation becomes clearer.

Farmer-owned SFF Co-op, made up 6,200 ordinary shareholders and 15,800 rebate shareholders - reported a net profit of $35m for the financial year.

Co-op chairman Richard Young says it is taking a conservative approach to the current operating environment.

Since SFF Ltd’s balance date of December 31, 2019, the market has fundamentally changed, Young says.

“Market dynamics are changing daily, making scenario modelling of short and medium-term financial impacts difficult to accurately determine.

“Liquidity and cash flow management will continue to be critical in maintaining optionality in managing Silver Fern Farms Limited’s relationships with all stakeholders in uncertain times.

“We remain confident that SFF Ltd is in a strong financial posi-

tion. With cash on hand in the business, they will be equipped to respond to the pending rise in consumer demand post Covid-19 disruption.”

Young says both shareholders requested SFF Ltd “to defer the dividend payment until the outlook for the global operating environ-

Fed Farmer’s national president Katie Milne says farmers are still worried about processing times at meat plants.

The figures SFF CO-OP ●● Net profit $35m ●● No debt ●● Total shareholder equity$304m SFF LTD ●● • Net profit of $70.7m ●● Total revenue- $2.6 billion ●● Dividend payment deferred at request of two shareholders SFF Co-op and Shanghai Maling

ment becomes clearer”.

“As we come through the current crisis and enter a ‘new normal’ SFF Limited’s board will gain more clarity around business impacts, thus determining dividend payment options.”

Young says the SFF Co-op board will inform its farmer shareholders of any dividend decision when it is made.

Meanwhile, SFF Ltd chief executive Simon Limmer says the company’s achievements in 2019 have set it up well to meet challenges posed

by Covid-19.

“Silver Fern Farms

SFF co-op chair Richard Young says the board will inform farmer shareholders of any dividend decision when it is made.

is robust enough to withstand the global disruption caused by Covid-19,” Limmer says.

“Our financial stability provides a platform to execute our strategy, develop our people, support our farmers, and feed New Zealanders and the world with sustainable, naturally delicious red meat.”

For financial year ending December 31, 2019 SFF Ltd achieved revenue of $2.6 billion, capital expenditure rose $3m to $32m over the course of the year. Total shareholder equity is at $571m up from $501m at the end of December 2018.

Limmer says last year’s performance is important for its 7,000 staff.

“Keeping our people

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safe and employed under the current environment is paramount to us. They are fundamental to the recovery. We are taking our responsibility seriously around how important our role is in the recovery of our country.”

Limmer notes that the company came into 2019 facing an uncertain international geo-political and trade environment.

However, the impact of African swine fever on Chinese pork stocks drove global consumer demand for protein and countered any downsides of Brexit and USA-China trade issues.

He says 2019 was a China story.

“With customers in China looking to beef and lamb items to fill some of the void left by the culling of pigs, it set a positive benchmark for other markets to follow and they responded accordingly.”

Worries over kill time delays FEDERATED FARMERS president Katie Milne says farmers are still worried about the processing times at meat plants.

While things are moving, farmers are concerned about the longer wait times.

However, they are applauding the work carried out at meat plants under Covid-19 lockdown rules.

“It has been a great effort by those at the plants to keep throughput going under new distancing protocols,” Milne told Rural News.

“Some worked over the Easter holidays which was unheard of previously….

I can’t thank them enough for going the extra mile to help keep things moving as we come into winter.”

Beef + Lamb New Zealand (BLNZ) and the Meat Industry Association (MIA) recently released their latest assessment of processing capacity across the country: the potential impact on waiting times for farmers due to COVID-19.

The COVID-19 meat processing protocol, which requires physical distancing between plant employees to prevent the spread of the virus, has reduced the industry’s processing capacity by

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approximately 50% for sheep and 30% for cattle.

The assessment shows further delays in lamb processing in the South Island in April and May with processing being pushed back at least a further week: farmers expecting a four-week wait before the protocol would now face a five-week wait.

By the end of May that extra week backlog should be cleared. In the North Island, the analysis does not forecast further delays on top of what farmers are currently experiencing.

Milne says farmers are also concerned around supplies of parts and components for machinery that may break down.

“Restocking of parts and efficient back loading are still an issue as things deemed nonessential can’t be carried.”

Gypsy Day, coming up on June 1, also remains an issue.

“We are working things out make sure this can go ahead safely,” says Milne.

A taskforce comprising Federated Farmers, Ministry of Primary Industries, DairyNZ and other stakeholders are working on Gypsy Day measures.

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RURAL NEWS // APRIL 21, 2020

6 NEWS

Is rural health being short-changed?

PETER BURKE peterb@ruralnews.co.nz

THERE’S CONCERN about the number of Covid-19 tests per head of population been lower in rural than urban areas.

Chairperson the Rural GP Practice Network, Dr Fiona Bolden told Rural News that this could lead to the underdiagnosing of the virus in rural areas and it potentially taking off.

She says there are more people currently working in rural areas than in urban centres –such as farmers, orchardists and those in processing facilities who are classed as essential workers.

Bolden says access to Covid-19 testing in rural areas has improved since

KNUCKLING DOWN BOLDEN SAYS rural GP’s are knuckling down and getting on with the job.

She says some money from government has helped and at least recognises the issues they face. But there are big changes in the way they are having to do things.

She says virtual consultations are one of these and some elderly folk are finding this hard to cope with.

“Some of them have real difficulty getting their heads around that and it’s particularly hard for people who have few issues around memory,” she told Rural News. “It’s a case of managing that in a very careful and thoughtful way.”

Bolden says mental health issues are yet to really surface in rural areas. She says people are still very tied up in survival mode trying to deal with Covid-19 and the lockdown. She says some areas have tried to put in more counselling services in anticipation of what might happen in the future.

“But at the moment we haven’t begun to see the demand which is sitting out there.”

the lockdown. She is based in Whangamata and says there is now a Community Based Assessment

Centre (CBAC) in her area as well as the one at Thames. There also some mobile testing taking place for people who have difficulty accessing CBAC’s.

“Right now, the CBAC’s are just open

Rural GP network chair Dr Fiona Bolden says there are concerns about the number of Covid-19 tests per head of population been lower in rural areas than urban regions.

during normal hours, but there are some rural practices that are designated testing centres so people could still get tested in those centres and they may have weekend opening.”

Bolden says a big worry for her and other leading rural health pro-

fessionals – such as Professor Ross Lawrenson of Waikato University and Associate Professor Garry Nixon of the Dunedin School of Medicine – is the way the number of known cases of Covid19 are being made public.

Bolden says, for example, in the case of the Waikato

District Health Board (DHB) there is just one figure for the whole of that district.

“We need to get more clarity around where people are being tested.

Waikato has a huge rural area, but we only get the figures for the whole Waikato DHB – it is very hard to know which cases relate to specific rural areas because we need to know this is terms of our health planning. We are trying to push for the figures to be broken down into individual territorial local authorities.”

Bolden says it may be acceptable for some DHB’s to give the overall number, but she believes rural practices need to get data which relates to their communities. She says at the moment there is a problem in some areas with large numbers of people coming to pick and process fruit and vegetables and the poten-

tial need for them to be tested.

“With those big gangs of workers coming into districts you absolutely need to have good eye on what’s going on,” she explains.

“Unless you are looking at the specific numbers in different areas and number of tests that have been done and where the positive tests are, you can’t really pick up whether you are doing enough testing in these areas. Also, you need to know what the incidence is within the community.”

Bolden says if you don’t do the work in the community you are never going to manage this.

“It’s all about what happens in the community at a community level. If you don’t actually address each community properly and specifically you are in danger of missing the boat altogether,” she says.

WOOL SECTOR REMAINS IN LIMBO PAM TIPA pamela@ruralnews.co.nz

THE WOOL industry is in limbo waiting to see what the world outlook is like “once countries start resuming normality of some description”, says Federated Farmers meat and fibre chairman Miles Anderson.

When you think the crossbred wool industry has hit the bottom; it just gets worse, he told the Rural News.

But a lot of industries are in the same boat right now, he says.

“People unsure what the future holds for their particular industry because of the coronavirus around the world.

“Hopefully the wool industry will kick back into gear once the lockdown is finished and sales etc can resume as normal. Fingers crossed that prices lift because certainly it is costing people substantial amounts of money to get their sheep shorn compared to the wool cheque that they are getting.”

Even before the lockdown one member told him it cost them

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$26,000 to shear their sheep and they only got $18,500 for the wool.

“That was a direct reflection of what was happening in China at the time, the fact that the demand for wool at the sales had dropped.

“Who knows what is going to happen in the future? Every time I think it can’t get worse it does.”

He still hopes something comes out of the Wool Action Group – a subgroup of the Wool Working Group. A report from

that group was due to be released by the Minister for Agriculture Damien O’Connor in March but has been delayed by the Covid19 crisis.

Anderson says for the industry to survive it needs collaboration.

“The growers in the industry need some kind of pathway forward. We were hoping that the report will provide a blueprint perhaps.” @rural_news facebook.com/ruralnews

RURAL NEWS // APRIL 21, 2020

NEWS 7

Pig-headed butcher ruling causing issues NIGEL MALTHUS

THE COUNTRY’S pork producers say relaxation of the COVID-19 lockdown rules might still not be enough to prevent an animal welfare crisis on the country’s pig farms.

They say pig farming is geared almost entirely to domestic consumption, depends on weekly throughput with no spare capacity, and unlike red meat has no established export market to take up the slack.

With the forced closure of restaurants and independent butchers, they are hurting, says NZ Pork chief executive David Baines.

“50% of our normal market has been taken away,” he told Rural News.

While butchers have been allowed to process carcasses for supermarkets, they are not classed as essential businesses for public shopfront retail.

An April 7 decision to allow contactless home delivery with online or phone ordering offers some relief, but Baines says it remains to be seen whether that will alleviate the surplus of pigs onfarm.

“For some butchers, it will not be financially viable to only operate on a home delivery basis and we will be closely monitoring the supply chain over the coming weeks to assess the impact,” said Baines.

“That’s why independent butchers, like dairies, should be allowed to open so long as they can take the necessary precautions to prevent the spread of COVID-19.”

Baines points out that butchers normally use whole-carcass pigs rather than a carton product.

He says the country’s six pork abattoirs, already constrained by social distancing and fewer staff, are under further pressure because of the need to break the carcasses down – whereas that would have been only 24% of their normal

throughput.

However, he says NZ Pork was encouraged by the level of co-operation throughout the supply chain to move pigs and the willingness from small goods processors to use local product, he said.

New Zealand’s total pig meat consumption is 62% imported, most of it processed into bacon and ham and injected products, Baines explains.

“We’ve gone to them and asked them to put their imports on hold and use our New Zealand production instead.

“A couple of the big ones in particular have been very understanding and very co-operative. But that’s come at a significant cost to the industry because one of the attractions for imports is that it’s considerably cheaper than our New Zealandproduced product.”

NZ Pork is also looking at developing export outlets, but that requires country to country agreements. Baines says MPI is working as quickly as possible to develop a pathway for product to go to Singapore, where there is strong demand.

Jason Palmer, who manages a 500-sow operation at Dunsandel producing around 250 pigs a week, says he is living “week to week” and working closely with wholesalers as he tries to keep moving pigs through his system.

“It’s not a welfare issue yet, but we’re trying to put measures in place to avoid that situation,” he told Rural News. “We are very reliant on our pigs going out the door every week.”

Palmer says he knew of farmers having to hold pigs back for up to a week but was not aware of any who had yet had to destroy pigs on farm – which would be the worst-case scenario.

Baines said some farmers had decided to dispose of animals on farm, such as those at the end of their productive life

which might otherwise have gone to be processed as low value ‘choppers’.

“But that’s not a wel-

fare-driven decision. It’s a commercial one.” @rural_news facebook.com/ruralnews

Pork NZ chief executive David Baines says relaxation of the COVID-19 lockdown rules might still not be enough to prevent an animal welfare crisis on the country’s pig farms.

RURAL NEWS // APRIL 21, 2020

8 NEWS

Lockdown likely to lead to more farmer engagement - BLNZ PETER BURKE peterb@ruralnews.co.nz

BEEF+LAMBNZ CHIEF executive Sam McIvor says the Covid-19 pandemic will likely mean that his organisation will

end up engaging with more people than it has done in the past.

He says the pandemic has forced the red meat industry good organisation to think differently about how it does busi-

ness with farmers.

“Already there are some positive outcomes with farmers listening to podcasts and participating in webinars.”

McIvor says some people, especially those

with young families, are too busy during the day to attend events and field days. But they are now interested in joining online discussion groups in the evening when the children are in bed.

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He says after the Kaikoura earthquake, which put BLNZ’s office in Wellington out of business for a few days, the organisation instigated a business continuity plan that made provision for staff in NZ and overseas to work remotely from home, which was again implemented before the Level 4 lockdown.

“We were prepared for the lockdown. As the Government made decisions, we were actually ahead of them in moving our people to work remotely and – by and large – so far it has worked well.”

McIvor says a significant part of BLNZ’s business is regional and extension programmes – a lot of which normally involve face-to-face contact with farmers at large conferences through to workshops, field days and network groups.

“So not being able to

Beef+Lamb NZ chief executive Sam McIvor says the Covid-19 pandemic has forced the red meat industry good organisation to think differently about how it does business with farmers.

do that is a major disruption to our business and naturally affects farmers as well,” he told Rural News.

“We know that farmers learn best from other farmers and there is a social aspect to that, which is really important as well. Right now, they are not only dealing with Covid, but also a lot of regulatory and climate change issues as

well. So, the ability to sit down and talk to others is a really important aspect for farmers and all of sudden that face-toface tool has been withdrawn.”

As part of its planning, McIvor says BLNZ has been creating new ways of getting information to farmers during the past two years. Last year, more than 9000 farmers TO PAGE 9

US MARKET A ‘NIGHTMARE’

www.mcintosh.net.nz 0800 622 276

THE US meat market is becoming something of a nightmare for NZ meat exporters with situations changing – in some cases – on a daily basis.

Beef+LambNZ chief executive Sam McIvor says globally the meat market is in a very fluid situation. He says while the Chinese market has picked up, the situation in the US remains challenging.

McIvor points to the fact that many meat processing plants in the US have closed down. A plant, which produces about 5% of pork in the US, is one of these – due to the fact that 300 staff had tested positive for Covid-19. Meanwhile, a large beef processing facility in Colorado has also closed down for the

same reason and a US meat industry leader there says: “meat supply is perilously close to the edge”.

McIvor says the situation in America is tumultuous and unpredictable. He says the problems range from a lack of containers to problems at some ports and disruptions to supply chains.

“We still know the fundamental supply and demand is still good for red meat, it’s just how things change and operate in the short term.”

McIvor says NZ processors are doing a good job but will have to monitor and track their product carefully to ensure it gets to market. He says this will require agility. - Peter Burke

RURAL NEWS // APRIL 21, 2020

NEWS 9

MPI’s hotline runs hot PETER BURKE peterb@ruralnews.co.nz

MPI HAS received hundreds of calls from businesses in the food and beverage sectoring wanting to ensure that what are doing to comply with Covid-19 requirements is correct.

Director general Ray Smith says these calls are coming in via their 0800 number and MPI is providing a lot of support in that area. He says the volume of calls is so great that, on occasions, it has taken longer than they would like to get back to

people.

“We have continued to run our verification process. Several thousand businesses have either been contacted by phone or visited directly as we take a look at the safety practices that they have put in place,” Smith told Rural News.

“One thing we can say is that everybody has taken a step up and treated this seriously on behalf of their employees, the families of those employees and the communities that those people live in to make sure that they don’t con-

tribute to any disease spread.”

Smith says employers know that their staff may be going home to family members who might be more vulnerable, and they don’t want them to bring the disease back from the workplace.

“We have been delighted with what we

have seen so far.”

He says it’s been terrific to see that all the key institutions in the primary sector, such as the likes of Fonterra and the various industry good organisations, are working individually and collectively to find solutions for working in the Covid19 environment and

making a point of sharing this information with each other “That’s tremendous for NZ and if we keep doing that, the country will come out of this in a very strong position.

We have got the ability to turn something, which is pretty terrible into something positive,” he says.

MPI director general Ray Smith says the primary sector has worked individually and collectively to find solutions for working in the Covid-19 environment.

SMITH PRAISES STAFF SMITH SAYS he’s pretty proud of the way the MPI staff are going at the moment given the challenges they face.

He says his staff have spent a lot of time talking to business, industry and local government leaders to understand their needs and what support MPI can give them. Smith says for many rural areas the drought and the flow-on effects of are worrying for many regional communities.

“We have been working hard to establish good feed budgeting systems for farmers who are struggling and are not quite sure where to turn to next.”

Smith says MPI have been referring these farmers to DairyNZ and Beef+LambNZ where someone will talk to them and help them with a feed budget. He says they have also been giving advice to farmers on animal welfare issues.

“A lot of work is being done with the meat industry to make sure we head off problems in the future in what are quite uncertain times,” he told Rural News. “What I observe is that everyone across the industry, including MPI, are talking on a regular basis and offering support so that nobody feels like they have to do it on their own.”

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listened to BLNZ’s podcasts, and videos, which McIvor says have been used to help spread important information out to farmers.

“On-line is the new way with webinars replacing field days and, in many, cases reaching out to more people,” he adds. “For example, we streamed our AGM live the other week and about 100 farmers tuned into that and engaged in discussion, which I suspect they may not have done at a face-to-face meeting.”

McIvor believes that the experience gained by the use of technology during Covid-19 will make businesses, including BLNZ, think about how their operations may run in the long term – what is required and at what cost.

And while he is happy working from home, McIvor says – like many – he misses the camaraderie of the office.

“I do enjoy going to work for the people and the social interaction. There is something in being in the physical presence of people. I know that quite a few of my staff, some who may live by themselves, the social aspects of the office play an important part of their lives. That is something that we are grappling with at the moment.”

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RURAL NEWS // APRIL 21, 2020

10 NEWS

An opportunity to tell the real story of NZ food PETER BURKE peterb@ruralnews.co.nz

AGRICULTURE MINISTER Damien O’Connor says the Covid situation has brought people back to the realities of food preparation and sourcing suitable produce.

He believes this is an opportunity for farmers – and others in the sector

“I think the primary sector have respected the opportunity they have been given.”

– to sell the story of how we produce our quality food.

O’Connor told Rural News that he’s proud of the way that the agri sector has adapted to the new set of circumstances.

He says they have had to meet the new health requirements in various workplaces – be it in an orchard, packhouse, food processing or meat processing plants. O’Connor says it’s great to see Agriculture minister Damien O’Connor believes the Covid situation is an opportunity for farmers – and others in the sector – to sell the story of how NZ produces our quality food.

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people doing the right thing.

“I think the primary sector have respected the opportunity they have been given and are supporting our objective of trying to get ahead of this virus.”

O’Connor’s been following social media and reckons most of the comments he’s seen are pretty sensible and endorse the general direction that the Government is taking.

“While there are anomalies around retail outlets and distribution of fruit and vegetables, we accept they are not perfect,” he says.

“We are trying to ensure that the production that comes from the primary sector does get

to the customer – be it domestic or overseas.”

O’Connor says no one wants to see wastage of food at all in the area of vegetable production and says it is terrible to see food not fully utilised. He acknowledges that the restrictions under Level 4 lockdown have put pressure on some commercial growers.

He concedes that Covid-19 has added to the pressure that farmers had been feeling with the drought and general financial pressure.

However, O’Connor believes that rural people – many of whom live in isolated places – are possibly coping with the lockdown better that those in the larger cities.

Nine AboutFacts P Fertilisers Regarding Meeting Water2025 Quality Limits TenBasic BasicFacts Fertiliser You Must Know and Adopt2025 to Meet Water Quality Limits: Dr Bert Quin

Fact ofsoluble solubleP Pfertiliser is by far largest causecause of P run-off andand leaching, andand thetherefore decline of in the thedecline qualityinofthe Kiwi waterways.

FactA. 1. The The overuse overuse of is the by far the largest of P run-off leaching, quality of Kiwi waterways.

Fact 2. Once you have Olsen P levels that are more than a third of the P retention (ASC), application of additional soluble P is very prone to loss to the

Fact B. True RPRs maintain high production as well as soluble P, but are far, far less susceptible to run-off and leaching. And RPR is cheaper! environment.

Fact 3. If you want to build up your soil P in an environmentally-protective way, simply apply RPR. It does not get leached or lost directly in run-off, but

Fact C. Quinfert Algerian RPR isforthe only low-cadmium, internationally- recognised true RPR available in New Zealand. releases P in a sustained fashion plants.

Fact 4. There is nothing to lose and everything to gain. RPR-based fertilisers are even cheaper than super-based products as well! Added sulphur bentonite

Fact D. It doesn’t meet the industry-backed Fertmark 30-minute citric acid solubility test, introduced about 40 years ago. (sulphur 90) is far more efficient than the excess sulphate in super.

Fact 5. Following 1-4 above will greatly reduce P run-off and leaching. This should be done before anything else, and the situation reassessed before

Fact E. So what. This test is not used anywhere outside NZ. It has been widely criticised as not being fit for purpose, given the knowledge spending huge amounts of money! that exists today, because it gives artificially low solubility tests for RPRs that contain free lime or dolomite.

Fact 6. It is nonsensical to give in to pressure to install expensive mitigations riparian strips, excessively large wetlands and ‘phosphorus walls’ when you have no idea of their long-term effectiveness and maintenance costs, and before you have established whether changing to sustained-release RPR is all Fact F. Quinfert Algerian RPR contains 7% free dolomite. This is a plus. But the dolomite consumes citric acid, meaning the Fertmark test you need to do! gives an artificially low solubility result.

Fact 7. in any case simple fenced-off 3-metre wide grass riparian strips are essentially as effective and vastly cheaper than more complex strips. Both reduce bacterial and sediment losses. Neither will have any significant long-term beneficial effect (on a whole -farm basis) on soluble P and nitrate-N loss.

Fact G. In agronomic trials, and in the ‘Watkinson Dissolution’ proposed replacement Fertmark test, Quinfert Algerian RPR at least matches But grass strips can be harvested in summer to be fed out, to improve P and N cycling. the performance of other true RPR’s as a maintenance P fertiliser.

Fact 8. In a nutshell, for maintenance of P levels any genuine RPR (not an RPR/Boucraa mix please!) can be used. Just check the Cd content. For low fertility situations or low rainfall, use a blend of RPR and high-analysis soluble P. Fact H. If you want your P to be available in 30-minutes, use straight super, TSP, DAP or MAP. Fact 9. For N, rather than granular urea, use prilled urea, sprayed immediately prior to, or during, the spreading with urease inhibitor. Use of N can be literally cut in half with big savings.

Fact I. If you want a licence to farm from 2025 however, I strongly recommend that you start using RPR. It’s as simple as that.

Fact 10. Potash is more efficient, and must less likely to cause metabolic problems, if applied in small doses 4 times a year, adding up to 50-60% of the total annual amount you are using now. Easy to mix with your prilled urea. Leaching of anions like nitrate will be minimised as well.

For more info. email Bert Quin on bert.quin@quinfert.co.nz, or phone 021-427 572, or visit www.quinfert.co.nz For more info, email Bert Quin on bert.quin@quinfert.co.nz, or phone 021 427 572, or visit www.quinfert.co.nz

RURAL NEWS // APRIL 21, 2020

NEWS 11

Ag exports a ‘Godsend’ PAM TIPA pamelat@ruralnews.co.nz

PRIMARY PRODUCT prices will fall further this year but remain at reasonable levels before some improvement in 2021, according to BNZ senior economist Doug Steel.

However, the falls – so far this year – have not been as much as might have been expected, he says.

“The defensive qualities of NZ’s food-heavy export mix may well be a Godsend for the economy as a whole during the current turmoil. If nothing else, it is easy to imagine a new-found appreciation for where our food comes from,” Steel told Rural News.

From a NZ agriculture point of view, selling into world markets – even

with challenges and at reduced prices – is considerably better than conditions faced by a lot of other sectors, he says.

“This does not mean agriculture will come through the world’s ills unscathed, but we do think this places agriculture to be one of the better performing sectors through this crisis.

“And the country will be better off for it,” Steel adds.

“If there is a silver lining to any of this, it could be that the most challenging of times often generate the best ideas. Good ideas to do things better ways. It comes from necessity.

If so, when the dust has settled, we may see productivity lift and with it better medium-term prospects.”

However, Steel warns

BNZ senior economist Doug Steel believes agriculture will be one of the better performing sectors through the Covid-19 crisis.

there’s no doubt the world is entering a recession with lockdowns common.

He cites as an example the nearly 10 million additional people in two weeks in the US seeking unemployment benefits “completely dwarves anything we have seen before”.

“Declines in world economic growth are typ-

ically negative for primary product prices. Reduced incomes tend to lower demand ultimately pulling prices lower,” Steel explains.

“True to form global food prices have generally fallen this year, but encouragingly not by as much as some might have expected.”

Other markets like equities or industrial

products have been hit harder.

Any price improvement in 2021 would be based on the virus being brought under control and some economic stability and recovery starting to appear later in the year.

“Obviously this remains a big unknown. China offers some hope here as it gets

on top of the virus and starts to relax various lockdown measures. This should see China’s economic recovery building, albeit likely slowly, on the tentative signs we have seen to date.

“Recent positive sales for the likes dairy and kiwifruit into China is encouraging.”

Steels says it is possible following massive drop in near term economic activity, we see a decent bounce relatively quickly.

“Not back to normal, or where activity was previrus, but simply off the lows seen during strict lockdown.

“We think activity levels are likely to remain below pre-virus levels for quite some time. Associated with this, we expect a sharp rise in the unemployment rate and for it

to remain elevated for some time.

“Food related product prices are expected to hold up better than most.

It’s a cliché but people have to eat. Food is one of the ultimate necessities.”

There are concerns about consumers’ ability to pay – partly offset by government interventions.

Consumer spending is likely to be more focused on necessities rather than luxuries.

Food service has been seriously curtailed with the closure of restaurants and cafes in many countries. Meanwhile, more food is bought at supermarkets, then prepared and eaten at home.

Restaurant reservation numbers around the world will provide an early sign of recovery.

EYEWATERING ONION EXPORTS ONION GROWERS are celebrating being able to export to Indonesia again after clarification of its new import rules.

Onions NZ chief executive, James Kuperus, says this follows months of negotiations over the exports which returned $28 million in 2019.

Kuperus says with the support of key figures such as Director General Horticulture, Indonesia, Prihasto Setyanto and the Indonesian Ambassador to New Zealand, Tantowi Yahya, the regulations have been clarified and exports have resumed.’

With the $28m in exports to

Indonesia in 2019 in total, our country’s onion exports rose to $172 million in 2019 – up by $83 million on 2018.

Trade between Indonesia and New Zealand is equal, with exports/ imports worth $1.1 billion to each economy.

Apatu Farms joint managing director, Paul Apatu says Onions NZ has been very proactive, working directly with Indonesian government officials, and various links in the Indonesian supply chain.

“The strategy is to grow the Indonesian market, along with other markets across the world.

We’re pretty confident that longterm, international demand for New Zealand onions will grow,” says Apatu.

“We were pretty nervous that there might be some international supply chain disruptions as a result of COVID-19, but reports are that things are currently going pretty well.

“On a global basis, demand for onions is high and we’ve seen export markets making decisions to secure supplies, long-term.

New Zealand’s horticulture industry is now worth more than $6 billion to the country’s economy.

• • •

COVID-19 UPDATE Corkill Systems is an ‘essential service’ for dairy farmers in these challenging times and is open for any urgent business or repair work.

– Steve Corkill, Corkill Systems Ltd

0800 10 7006 www.corkillsystems.co.nz

or small

Dose them all MONTHLY

RURAL NEWS // APRIL 21, 2020

12 OPINION EDITORIAL

EDNA

Ball dropped REPORTS THAT the Alliance Group – the country’s biggest meat processing company – did not operate during the Easter holiday period defies belief.

It is even more astounding given that other meat companies around New Zealand did work, at least for some period, during Easter.

This came at a time when farmers around the country are experiencing long wait times to get livestock killed, as the meat processing sector grapples with drought in many parts of New Zealand and a delay in killing capability due to the Covid-19 social distancing requirements now in place at plants.

This has been further exacerbated by several winter grazing contracts being cancelled in Southland and other parts of the country leaving farmers with nowhere for their animals to winter and now needing livestock to be killed.

With the huge backlog of stock, why did the Alliance Group chose not to work over Easter? It has left many farmers – and others in the sector – questioning the company’s logic.

Alliance Group chief executive David Surveyor has claimed the company did not process over Easter to give workers ‘time with their families’ over the holidays.

No one will deny that meat workers deserve quality family time. However, this year is an exceptional period in the country’s history, with Coivd-19 reducing killing capacity and the pressure on farmers due to the reasons outlined above. And those workers would have been duly compensated with appropriate holiday penalty rates.

Surely Alliance Group could have clearly explained the situation to its workers, many of whom live in areas impacted by drought, and got them onside?

Its action – or more correctly, lack of action – over Easter begs many questions: Did the company not want to – or couldn’t afford to – pay the penalty rates its workers would rightly deserve for working over a holiday period?

Does the company not have a good enough relationship with its workforce and/or unions to get agreement to work over Easter?

Were Alliance’s management and board unaware of the dire situation on farms around the country?

Alliance farmer suppliers deserve proper answers. The co-op has dropped the ball badly and needs to front up, quick smart.

RURALNEWS TO ALL FARMERS, FOR ALL FARMERS

HEAD OFFICE POSTAL ADDRESS: PO Box 331100, Takapuna, Auckland 0740

“That darned bull you’ ve named in honour of Ashley Bloomfield has just taken advantage of my lack of PPE!”

THE HOUND Really?

Do the right thing!

Pig-headed

Bugger!

Your old mate understands that the professional moaners at Bitch&Complain (Fish&Game) have been granted more than $280k in the government wage subsidy during the coronavirus lockdown period. However, as your canine crusader understands it, to qualify for this subsidy a business has to show a 30% decrease in revenue for any month between January and June this year – compared with the same period last year.

This begs a couple of questions like: how is a lobby group like Fish&Game classed as a business?

And just how has F&G’s revenue dropped by 30% over said period? Have fishing licences stopped coming in? Perhaps it can be measured by the fact that Bitch&Complain has dropped its anti-farming press releases and media stunts by 30% since this time last year? Let’s hope so!

The Hound is picking up a lot of negative feedback around the traps about the arrogant stance of National Fieldays organisers.

It’s obvious, due to the Covid-19 outbreak and the cancellation of mass gatherings, a big event like Fieldays (due to be held in June) seems a remote, if not impossible, prospect of taking place. However, despite this Fieldays is deliberately procrastinating about refunding those customers who have already forked out huge fees for this year’s event. It is also putting heat on those exhibitors who have not paid yet – telling them to pay up now or miss out on securing a site for the 2021 event. Compare this with Central Districts Field days, which had to cancel its event with less than one week’s notice yet still refunded 100% of exhibitor site fees immediately. Surely, in these troubled times National Fieldays should be doing the right thing and refunding its exhibitors.

Your canine crusader understands that the Government’s decision to not allow butchers to operate during the lockdown period is going to cause some major animal welfare issues on many pig farms around the country.

Despite numerous pleas from the pork industry for a relaxation of the rules, which has seen the nation’s butcher shops have closed down, the Government and its officials have remained pigheadedly stubborn on the issue.

Although after some pressure, it reluctantly bowed a little by allowing independent butchers to make home deliveries. However, NZ Pork reckons it’s debatable whether this move will alleviate the surplus of pigs on farm and the resulting issues this will cause. Just why independent butchers, unlike dairies, aren’t allowed to open – so long as they can take the necessary precautions – is beyond your old mate.

Your old mate is informed that a well-known machinery editor rather enjoys going to general auctions on a Saturday morning, while his better half does the weekly grocery shopping. Around six years ago, our hero bid on a box of 100 medical face masks – he thought they’d be ideal for DIY and weed spraying – which he picked up for $5, or 20 cents each. However, when our Welsh mate went to collect his booty, he discovered that he’d actually bid on a carton containing 100 boxes – so 10,000 items! A couple of years later, he sold about 20 boxes at a fundraiser for a $1 each – with the remainder going to the dump.

Fast forward to March 2020 and face masks now cost $4.50 each.

So that carton our man picked up at that auction a few years back, at today’s prices would be worth $45k. As they say: ‘Bugger’!

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RURAL NEWS // APRIL 21, 2020

OPINION 13

Coming out of the crisis TODD MULLER

A FEW months ago, I penned a column where I noted the challenging conversations farmers were having across dinner tables up and down the country because of the Government’s proposed freshwater reforms.

Now, barely six months later, so much of New Zealand is closed with the exception of our farms and hospitals. The tough, painful and fearful kitchen table conversations are occurring in many houses across the country.

We are still in the highly fluid part of the crisis, where only hard choices sit in front of us. The ‘stay home, save lives’ strategy will slowly morph into the ‘safety first, but slowly restart’ phase.

A tougher period lies in the months ahead.

By September, we may be tens of billions more in debt, we will have a Government that is having to spend more in order to rightly support those who have been impacted by the coming recession. And we will have an economy with the tap turned squarely off on two big foreign earners, international tourism and international students. Together these two sectors earn about $23 billion per year, about the same as all meat and dairy exports. More debt, more spending, and less income.

Whatever our national strategy was just a few months ago is now wholly inadequate. What is the new plan for our country?

How do we rebuild after this crisis?

I start by asking the

simple question; what do we do best in the world, and can we still be the best when the global lights come on?

Our capacity to produce diverse food products – be it dairy, meat, kiwifruit, wine at scale – with sublime quality assurance gives us a strong platform to build from.

So how can we amplify and leverage that advantage for us all?

There will be a call from many to stop all regulatory constraints on agriculture throughout the economic recovery. That would be a mistake. Firstly, we must expect our global consumers to be more health and compliance conscious after the pandemic, not less so. Our provenance of healthy and sustainably produced food will come under more scrutiny not less.

Secondly, this Government has had a failure of political process not of concept. Building on the previous Governments efforts to improve sector capacity to farm within limits was not a flawed strategy, rather it was their inability to execute that was their downfall.

In the case of Essential Freshwater reform, it allowed the conversation to be deliberately and inaccurately framed in the context of a collective failure to date, and a petulant disregard for sector feedback. It deserves our criticism, but let’s not be duped into thinking that somehow going back in time when there was a light touch approach is going to be our future.

The agriculture sector will be best served by a nationwide acceptance that the nation’s eco-

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nomic stimulus needs to include strategic water storage and distribution infrastructure.

Access to water is a critical enabler of economic, social and environmental improvement.

It can act as the battery for a low emissions future that is less reliant on fossil fuels, it can release

the productive capacity of thousands of hectares that are water stressed.

Partnered with good farming practice, it can materially improve the biodiversity of our rivers.

It can give our communities surety that potable water will be available into the future. The time has come.

These are the types of big ideas we will need to consider to recover our country. We need many more.

I hope that through the fog of uncertainty, we can start these conversations at our kitchen tables tonight.

• Todd Muller is National’s agriculture spokesman

Todd Muller says the recovery from Covid19 needs to include strategic water storage infrastructure.

RURAL NEWS // APRIL 21, 2020

14 AGRIBUSINESS

Meat industry stalwart signs off PETER BURKE peterb@ruralnews.co.nz

A MAN who has spent more than 40 years in the meat industry says the best thing that happened to the industry in NZ was the UK joining the European Union in 1973.

Tim Ritchie, who has just retired as Meat Industry Association chief executive – a position he held for the last 11 years.

He says Britain joining the EU forced NZ to look at the world as its marketplace and not just rely on what was essentially a single market. It also forced us to move away from primarily sending frozen lamb carcasses to the UK.

After completing a Bachelor of Agricultural Science degree in marketing and economics at Lincoln, Ritchie spent four years with Treasury before joining the then Freezing Companies Association and the NZ Meat Exporters Council – now MIA. Richie told Rural News this meant the NZ meat industry had to move from being a commodity supplier of meat to producing specialty packaged cuts, which could be sent to new, high-end markets.

Ritchie has been one of the people responsible for leading and oversee-

ing the industry’s change for more than four decades. He was doing this right up to his last day at work – with a significant role in determining how meat processing plants will operate in a Covid-19 environment.

After completing a Bachelor of Agricultural

Former MIA chief executive Tim Ritchie has spent 40 years working in the NZ meat industry.

WELL TRAVELLED TIM RITCHIE has had an amazing career – working in senior roles for the meat industry in London and Brussels – as well as NZ. He has travelled extensively on trade missions to open up new markets for NZ meat.

Ritchie says the MIA has carved out an important role for itself and works closely with government agencies – such as MPI and MFAT – in gaining and retaining market access.

“It’s broadened out and matured,” he says.

Ritchie – along with wife Deb –a have farming interests in the Wairarapa and he plans, among other things, to write a book about White Rock Station where he is a part owner.

He also has overseas travel plans at some stage in the future. However, also expect to see Tim Ritchie continue to be involved, in some way, in the primary sector.

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Science degree in marketing and economics at Lincoln, Ritchie spent four years with Treasury before joining the then Freezing Companies Association and the NZ Meat Exporters Council – now MIA. He was there four years before embarking on a career which saw him working for Towers International and then a move to Waitaki International, both in NZ and overseas. Working for Waitaki in London Ritchie describes as the highlight of his career “There as a 30 something year-old my job was to manage the Waitaki operation in the UK and Europe,” he told Rural News. “That’s when the butchers’ shops were disappearing – or their importance was reducing, and the supermarkets were coming on the scene.”

He says that tradi-

tionally butcher shops in the UK had bought whole frozen lamb carcasses from meat importing companies – such as Borthwicks.

“Back at their shops, the meat would be thawed out and the butcher would cut off a bit of meat for the customers while they were watching.”

Ritchie says the carcass trade was the business model of Borthwicks and this quickly disappeared with the advent of supermarkets such as Waitrose and Tesco. They wanted well-cut portions of meat neatly vacuum packaged and presented ready for sale on their shelves.

At Waitaki, he developed close relationships with the supermarkets and meeting their demand triggered a whole new way in which NZ meat was to be processed from then on to the pres-

ent day. Back home, further processing became the catch cry and meat industry invested close to $400 million dollars to upgrade plants to meet EU standards and install meat processing facilities to enable specialty cuts to the specifications of the supermarket chains.

The days of a lamb carcass wrapped in a sock net bag and shipped to the UK was at an end.

“It was an exciting time because we were transitioning from an old to a new business model,” he says.

Britain’s entry to the EU also stimulated this change and while NZ fought long and hard and is still doing so to retain fair access for sheepmeat to the UK and the EU, the message was clear, Ritchie says, for NZ to look all over the world for markets.

“We used to be focusing on finding a market for our products,” he adds. “Now we are almost at the stage of rationing products to markets.

Sending different cuts to countries, which will pay a premium for these.”

Ritchie says the other major achievement during his time in the meat industry is the way that NZ set new and high professional standards around halal slaughter.

He says this has been extraordinarily important in us in securing new markets, including China which has a Muslim population of about 23 million.

RURAL NEWS // APRIL 21, 2020

AGRIBUSINESS 15

Lockdown won’t stop learning at Massey Despite the Covid-19 lockdown, staff at Massey University are busy preparing for the next semester – which will involve a lot of on-line teaching. Two examples are husband and wife team, Massey professor of dairy production systems Danny Donaghy and Dr Lucy Burkitt – who is a senior research officer in the school of Agriculture and the Environment.

Peter Burke spoke to them about life in lockdown.

THE COUPLE are hunkered down with their three children in Palmerston North.

They share an office, but when zoom calls come through, one or other has to relocate to another part of the house.

They have never worked in such close quarters before, but Donaghy says it’s working ok.

He told Rural News that they set down strict times for work, but also schedule in coffee and tea breaks and slip out for a walk with their children.

“We try to start early and not let the day slip away and be distracted by the fine weather we have had recently,” he says.

For Donaghy, the lockdown has given him and other academic staff time to prepare on-line lectures for the next semester. Massey University is renowned for its expertise in distance education and the situation that has arisen with Covid-19 is having less of an impact on them as opposed to some other universities.

“We have strong platform to deliver online and have got some really

QUIET ON THE FARMS MASSEY UNIVERSITY has a number of ‘teaching and research farms’ where staff and students run a series of projects.

But during the lockdown, there has been a pause on research on these properties, with only essential staff allowed to work on them during the lockdown.

Donaghy says on the dairy farms where he has a particular involvement, only essential work is being carried out.

This comes down to the basics of feeding and milking the cows.

“No students or teaching staff are allowed on the farms and we can’t ask farm staff to undertake any work which is outside their normal work, which means no research work,” he says.

“But students and staff can access

data that is being recorded automatically from the farms such as daily milk production and animal live weight.

“But all the detailed lab work has been postponed.”

Donaghy says some students who were scheduled to take water, soil or pasture samples can’t do this in the meantime.

He says working from home is fantastic, but he does miss the connections that occur at the office.

“The chance to meet in the corridor, meeting in someone’s office to discuss a new idea or ask a question is something I do miss,” Donaghy told Rural News.

“But during the lockdown, the IT service at Massey has been fantastic – even providing support at weekends.”

HONDA MOTORBIKE DEALERS ON CALL FOR ESSENTIAL FARM BIKE REPAIRS. Husband and wife team Lucy Birkett and Danny Donaghy will continue to teach their Massey University students via online from their Palmerston North home.

good resources at Massey to allow us to deliver online material – so a lot of us are preparing to deliver when semester starts again. We have got some really good materials that allow is to upload short video’s and presentations.”

Donaghy was actually delivering an online lecture at exactly the same time as the Prime Minister was announcing the lockdown. He says everyone became distracted by this and in the end, he called the lecture off until the next semester.

“After that, we rushed to work and grabbed extra computer screens so that we could have dual screens at home which makes it easier to shuffle data around,” he says. @rural_news facebook.com/ruralnews

THE HOUND’S WRONG! tional financial reporting standards as required by law.

The Hound failed to note that the net profit after tax for the half year of $68m, a significant improvement compared to the previous year’s figure of $29m, despite the adoption of IFRS 16 adding $4m to Pamu’s cost base. Even if you strip out the $6m gain on Westland shares the performance has improved year on

Essential Farm Bike Repairs: We know how important it is for you to keep your farm running, and we want to help make things easier. While we remain at Alert Level 4, and for the duration of the pandemic, Honda Motorbike dealers can complete essential repairs on your farm bikes and other farm equipment (generators and water pumps, etc.)

Honda dealers have several safety measures in place during the pandemic and are following all MPI protocols regarding COVID-19.

LETTER TO THE EDITOR

THE HOUND’S item on Pamu’s half year result (Rural News, March 24) was incorrect. The Hound adjusted a half year EBITDAR figure and then compares this to the asset base.

Obviously, any annual return calculation needs to be based on a full year result rather than 6 months. It would also need to include the full net profit after tax which is calculated and reported in line with interna-

The country might be in lock-down, but many of you in the farming community are working harder than ever to provide essential services and supplies to other New Zealanders.

While you’re working hard for everyone else, we want you to know we’re here for you.

year and. But as I have commented on previously, we are always focussed on further improvements in our performance.

Our full year result will provide a full picture of how we have done, and I look forward to The Hound’s analysis and commentary at that time.

Warren Parker Chairman, Landcorp Farming Ltd

If you are in need of essential farm bike repairs to keep your farm running, please call your local Honda dealer to work through repair options and protocols to arrange a repair.

Finally, on behalf of the entire Honda team, we thank you for your efforts. We’ve been proud supporters of kiwi farmers for generations, and in times like this we couldn’t be prouder to be part of the farming community For more information call your Honda Dealer or visit: hondamotorbikes.co.nz

RURAL NEWS // APRIL 21, 2020

global agribusiness research analysts sharing market outlooks

16 MARKETS & TRENDS

Rabobank supports clients from farm to fork in

40

COUNTRIES

100 000

12630

farmers to connect Content supplied by Rabobank - Growing New Zealand Together with worldwide , a Better

Get set for dairy prices fall Prices tumble

The lower NZ dollar will be a welcome respite for New Zealand dairy farmers over the coming months, as it helps to take out some of the bite of falling US dollar-denominated dairy commodity prices.

DURING Q1 2020, USD Oceania prices tumbled by over 10%, with milk powders seeing the biggest decline in prices.

Butterfat prices have held up better, due to less reliance on Chinese buying – being the first and largest market segment to retreat as the virus shut down daily life. SMP prices – only recently recovering from the impacts of inventory accumulation from the 2015/16 downturn– have returned to levels only skimming above 2019 averages.

pretty – particularly over Q2 and Q3 of 2020.

As of April 2020, Rabobank is forecasting for the ongoing fallout of coronavirus on global markets to result in a weak price cycle through 2020, including the key selling season for New Zealand’s corresponding production season.

One of the significant factors we are closely monitoring over the coming 12-month period is the level of Chi-

Hold on for rocky year DAIRY WILL not come out of this economic cycle unscathed. Over the coming 12-month period, we anticipate dairy commodity prices will not be

nese import activity.

With high Chinese milk production, accumulation of dairy inventory, and rising unemployment figures, we remain extremely cautious as to China’s appetite for dairy imports across 2020. We anticipate China’s import requirement for dairy powders to fall by almost 40% year-onyear by volume in 2020 in our milk price forecasts.

Should this not be the case, our forecast would

improve to more profitable territory.

The combination of reduced Chinese imports, supply chain disruptions, consumption pullback, and modestly rising dairy surpluses in export regions will keep downward pressure on global

markets through much of 2020.

Some good news for NZ dairy DESPITE GLOOMY predictions of the market trajectory, there are a couple of factors in favour of New Zealand

dairy farmers over the coming 12 months. These will help to support the farmgate milk price at levels higher those than seen in the Dairy Downturn or the global financial crisis (GFC).

There have been some short-term supportive

forces in global markets.

Milk supply across the export engine has been quite modest – aided by an anticipated sharp drop-off in milk production in the North Island of New Zealand over the final months of the current production season.

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RURAL NEWS // APRIL 21, 2020

MARKETS & TRENDS 17

COUNTRIES

Content supplied by Rabobank - Growing a Better New Zealand Together More specifically in favour of NZ dairy farmers, the value of the US dollar has lifted markedly against the NZ dollar. The lower NZ dollar will be a welcome respite for New Zealand dairy farmers over the coming months, as it helps to take out some of the bite of falling US dollar-denominated dairy commodity prices.

Indeed, WMP prices have fallen by 13% since the beginning of the year, with the weaker currency helping to offset most of the declining commodity price. What’s more, the NZ dollar has moved lower against most competing exporters as well as many key importers (including Japan and China), helping to keep New Zealand product competitive in world markets.

$5.60Kg/MS for 2020-21 season?

WE FORECAST a farmgate milk price of NZD 5.60/kgMS for the 2020/21 season.

This forecast is based on our revised commodity price forecasts through to Q1 2021. We now anticipate WMP prices to average below USD 2,500/tonne over the coming season. We have also used the average New Zealand product mix, as well as a NZ$/ US$ exchange rate of 0.57 cents.

To reiterate: the forecast settings are incredibly complicated. There is, of course, a price range that might be possible across the duration of the season based on currency movements alone.

We consider this range to stand between NZ$ 4.80/kgMS and NZ$ 6.00/ kgMS. In summary, 2020 will be bearish for New Zealand dairy exporters and dairy farmers. Assuming a GFC-style crisis, demand growth is likely to remain below trend for 2H 2020.

With heightened uncertainty in the market at present, we anticipate New Zealand dairy pro-

cessors will announce conservative opening forecasts for the 2020/21 season. This will flow through to any advance rate payments and impact budgets, so farmers should plan for this accordingly.

Risks to milk price

THERE ARE, as always, several upside and downside risks that could impact our views on the global dairy markets over the course of our forecast timeframe.

Upside risks ●● Chinese demand, particularly for powders, is stronger than we have baked into our forecasts. ●● The NZ dollar weakens further than our anticipated NZc 57 average over the forecast period. ●● Global economic growth is stronger than we have anticipated across 2H 2020 and into 1H 2021.

Downside risks

●●

●●

●●

●●

The European Commission lowers the price floor for intervention buying.

NZ dollar appreciation (assuming US dollar dairy commodity prices fall significantly across 2020 as we expect).

Re-infection in China, causing supply chain and demand disruption once more.

Global milk supply is stronger than the

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existing modest increase accounted for in current forecasts.

Demand softness is worse than we have anticipated over a longer period, as unemployment rises and economies see large falls in discretionary spending.

Keep a strict eye on budgets

A SEVERE decline in the forecast farmgate milk

price is anticipated for the new season.

The adaptability of farming budgets will be crucial over this next market cycle, with the need for strong financial discipline required for New Zealand dairy farmers to be in a stable position coming out of this cycle.

New Zealand dairy farmers have ridden through a similar position before, most recently

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RURAL NEWS // APRIL 21, 2020

18 MANAGEMENT

Grower urges people to eat their veges NIGEL MALTHUS

A BIG Canterbury vegetable grower is hoping people’s buying patterns get back to normal and quickly after the upheavals of the last couple of weeks.

Robin Oakley says the biggest upset for his business brought about by the Covid-19 emergency was the change in shopping patterns and the way people rushed the supermarkets before the lockdown took effect.

“If there’s a big demand for broccoli we can’t suddenly magic up more,” he told Rural News. “We ran out last week.”

He adds that then for the best part of a week people hadn’t been back to the supermarket, while the broccoli Ltd – a five-generation family busiharvest has had to continue.

Oakley says he was very fortunate ness based at Southbridge. It also has to have very good post-harvest storage leased blocks as far away as Amberley to keep it in good condition. However, and Hororata, with a total of 350ha in he warns that if people don’t return vegetable production.

Oakley sells mostly through superto the supermarkets “sooner rather than later” there was a danger of crop markets in both the North and South having to be left wasting in the pad- Islands, including his own gourmet potato brands. docks.

That puts him in a better position With his wife Shirleen, daughter April and father Graeme, Robin runs than many horticulturalists as only METAREX INOV RURAL NEWS 265W X 200H MMhave been allowed to supermarkets Oakley’s Premium Fresh Vegetables

A family affair: Robin (left), Shirleen, Graeme and April Oakley in one of their broccoli paddocks. PHOTO: NZ FARM ENVIRONMENT TRUST

be open and many growers have found their sales streams have dried up.

Nevertheless, the Covid-19 emergency has come at a bad time.

Oakley says they are in the middle of the main potato harvest and are flat out packing potatoes. They’re also flat out both harvesting and planting broccoli, about to start harvesting pumpkins. There’s also intermittent beetroot harvesting on the schedule.

“It’s the single busiest time of the

year,” he told Rural News.

Oakley says the next potential impact of Covid-19, and the bit that worries him the most, is keeping his workforce healthy.

A week before the lockdown came into place, Oakley implemented his own policies around isolating different groups of workers. Depending on the job they do, where they do it and – in some cases – where the group is isolating at home together.

Each group has its own smoko facilities and toilets, with six new toilets brought on site and handwashing facilities… “albeit set up outside and a bit primitive” … featuring lever taps that can be operated by an elbow.

Oakley admits it was more by good luck than by good management that he has groups he’s been able to keep together who were already in self-isolation together in his farm accommodation.

That includes one group of RSE workers from Vanuatu and a working holiday group who had been travelling together.

Broccoli harvesting requires six or seven people cutting the heads and loading them onto a harvesting belt to carry them into a hopper. There was no way they could do that job while maintaining 2-metre distancing.

Oakley said he was using email and other methods to communicate in a very transparent way to keep all staff very well informed.

“It’s not only about having your people feel safe, it’s a matter of making sure you are doing things that they are safe,” he says. “I think we’ve done everything we possibly can.”

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RURAL NEWS // APRIL 21, 2020

ANIMAL HEALTH 19

Getting hoggets ready for breeding PAUL KENYON

WHILE BREEDING hoggets can potentially increase the number of lambs weaned and income – it needs to be well managed to be successful.

Breeding of hoggets for many farmers will begin in late April early May. Now is the time to consider which and how many hoggets to breed.

There are two basic rules.

Firstly, they need to be at least 65% of their mature weight, which is basically their four-tooth breeding weight – if high levels of performance are to be achieved as a hogget and lifetime performance not negatively affected.

An alternative means of identifying suitable hoggets is only breeding those with a body condition score of 2.5 or above.

Secondly, farmers need to consider what the likely feed availability is going to be on their farm in winter. That’s about accessing covers now, in some regions these may be low due to dry conditions and trying their best to predict covers in the winter. Remember the pregnant hogget is a class of stock that needs to be well fed throughout winter.

Although the temptation may be there to breed many hoggets this year, with the aim of obtaining high lamb prices. However, farmers – in general – should be conservative when deciding how many hoggets should be bred, especially if covers are low.

Using vasectomised rams (teasers) can increase the proportion of hoggets bred and those bred early in the breeding period. Teasers should be introduced 17 days prior to the first day of breeding. A minimum ratio of 1:100 is required to be fully effective.

Hoggets are shy breeders therefore, an ideal ram to hogget ratio is 1:50 with mature rams. Use rams that are not likely to result in large lambs, which would increase the risk of birthing difficulties. Hoggets should be vaccinated to provide protection against abortive diseases.

When planning feeding levels for hoggets remember they need to be gaining approximately 130g/day throughout pregnancy to ensure they continue to grow and to meet pregnancy requirements.

Failure to achieve this will result in disappointing results this spring and at

the following two-tooth breeding.

The Massey University team, with funding from B+LNZ are currently examining the potential impacts of selecting prog-

Are you hitting your target market?

eny born from hoggets as replacement ewes.

• Paul Kenyon is a professor in sheep husbandry and deputy head of the agriculture & environment school at Massey University

When considering to breed their hoggets farmers need to consider what the likely feed availability is going to be on their farm in winter.

Inset:: Paul Kenyon.

Sending animals off to grazing?

The movement must be recorded in NAIT

• Farmer must create the sending movement • Grazier must confirm the movement (or create a receiving movement).* Need help?

Call 0800 482 463 or contact your information provider.

* Failure to record and confirm farm to farm livestock movements in the NAIT system may result in a $400 fine per animal or prosecution. The requirement to record livestock movements within 5 business days in the NAIT system is temporary and will return to 48 hours after the National State of Emergency is lifted.

For advice, contact your local sales consultant Auckland

Stephen Pollard ....... Ph 09-913 9637

Waikato

Ted Darley ................ Ph 07-854 6292

Wellington

Ron Mackay ............ Ph 04-234 6239

Christchurch Kaye Sutherland ...... Ph 03-337 3828

■ BREAKING NEWS ■ AGRIBUSINESS HEADER ■ MARKETS & TRENDS

Ferist et quati aut pedici te vollab imod quamet atur soleniet quiatibu. PAGE 15

■ MACHINERY REVIEWS ■ MANAGEMENT HEADER ■ AND MUCH MORE... HEADER Ferist et quati aut pedici te vollab imod quamet atur soleniet quiatibu. PAGE 23

RURALNEWS TO ALL FARMERS, FOR ALL FARMERS

Ferist et quati aut pedici te vollab imod quamet atur soleniet quiatibu.

PAGE 24

NAIT is an OSPRI programme

ospri.co.nz

RURAL NEWS // APRIL 21, 2020

20 MACHINERY & PRODUCTS

Refreshed, versatile Fastrac 4000 MARK DANIEL markd@ruralnews.co.nz

JCB HAS refreshed the Fastrac 4000 series tractors with heavy duty axles, front differential lock, new tyre options, factory-fitted precision guidance options and a new coupling system for swan-neck drawbar trailers and tankers.

The improvements coincide with the introduction of Stage V emissions-compliant engines in the shape of a new 6.6litre, six-cylinder engine with DPF and SCR to comply with the required standards. In the case of the Fastrac 4220, rated power is 217 hp – that under load rises to 235hp – with oil and filter ser-

JCB has refreshed the Fastrac 4000 series of tractors.

vice intervals have been extended to 600 hours.

Meanwhile, a new auto-stop feature eliminates unnecessary fuel use by shutting down the engine after a period at idling speed.

The new heavyduty axles offer a load rating increase of one third, with more dura-

bility, have load ratings that are one third higher than before. These also have increased durability thanks to larger hubs, bearings and larger kingpin bearings. This should offer major advantages for tractors engaged in high-draft situations or when fitted with new tyre options such as VF

category tyres that help deliver even higher levels of traction in the field.

The front axle is now fitted with a hydraulically engaged differential lock – rather than a limited slip unit – to further enhance tractive effort when conditions are slippery underfoot.

The active suspension

systems help to maintain a consistent ride height and optimal weight distribution over both axles, when one or more implements is attached.

The hydraulic cylinder pressure for the Fastrac 4000’s multi-mode, fourwheel steering system has been increased to maintain a comfortable level of effort required at the steering wheel.

In addition, the deck can now be equipped with a new coupling option for slurry tankers and other trailed equipment fitted out with a swan-neck drawbar.

Meanwhile, all models can be supplied with factory-installed ‘steering ready’ electronics infrastructure.

The multi-purpose bale grab is especially designed to handle large and small, square, round, plastic wrapped or straw bales.

SUITS ALL

FRONT END loader and implement manufacturer Quicke has introduced a new, multi-purpose bale grab call the Quadrogrip.

The company says it is especially designed to handle large and small, square, round, plastic wrapped or straw bales.

The Quadrogrip comes with a choice of two different arm lengths – depending on customers’ needs.

The bale grab’s arms extend out from a narrow style frame, reducing the space required for handling and stacking bales. This feature that is especially useful when working inside buildings, close to walls, or when stacking bales on a trailer.

The arms are attached via wear resistant, replaceable plastic skid plates – removing the need for greasing and preventing any grease from contacting any bales or animal feed.

Besides the choice of arm lengths, the machine’s clever design details sees the arms angled slightly inwards to give good grip of the bale. Each arm can also be individually locked, which makes loading or unloading a trailer easier and faster.

RURAL NEWS // APRIL 21, 2020

MACHINERY & PRODUCTS 21

SP mixer wagon offers many feed options A SELF-PROPELLED, twin vertical auger mixer wagon from KUHN dubbed the SPW Intense has been designed with nutritional considerations in mind.

The wagon is said to maintain fibre levels, provide a homogenous mix and ensure good distribution quality ability.

Power for the mixing auger and the milling head hydraulics is provided by a new Tier IV, 225hp FPT engine, featuring SCR technology.

All mixing is carried out a low engine speeds to reduce fuel consumption.

The machine is controlled via an automotivestyle joystick.

Engine speed is managed according to load, with an increase during transport phases to maintain forward speed. The engine compartment is at the rear of the machine, offering load transfer for good traction and a significant noise reduction in the forward-mounted cabin.

Electronic regulation of the milling head adapts to the level of fibre in the forage. There’s 160hp available for 14 to 18 cubic

metre machines and 200 hp for 19 to 27 cubic metre models. The ability to adjust the speed of the mixing augers, coupled with programmable mixing times, allows operators to tailor-make rations for specific groups of animals.

Unloading is carried out using a wide transverse conveyor belt at the front of the machine, offering visibility and even distribution.

In the cab, the KUHN CCI control box – a colour touchscreen – that centralizes all functional data and information relating to weight control.

The control box also manages data concerning machine maintenance, control of the milling head speed, rotational speed of the augers and the discharge conveyor speed.

For feed data management, the CCI can hold 80 rations, comprising up to 15 different ingredients, while also memorising up to 10 lots of specified discharge operations.

Operation traceability is ensured thanks to LIBRAFEED data transfer

by USB plug to the farm’s computer.

The wagon has a fully suspended frame, composed of two independent suspended axle shafts at the front with high clearance and leaf-spring suspension at the rear. This

gives the machine exceptional tractive performance.

For tight environs, a rear steering axle is an option, which significantly reduces turning angles. www.kuhn.co.nz

The wagon is said to maintain fibre levels, provide a homogenous mix and ensures good distribution quality.

WE’RE HERE TO KEEP YOU

GOING

SEE THINGS IN BETTER LIGHT THOSE WANTING more light for working under the bonnet, or around a tractor, harvester, SUV or truck, might want to take a closer look at a pair of new workshop lamps that have been added to Narva’s Advanced Lighting Solutions (ALS) workshop range.

These lamps offer a powerful, adjustable light output supported by a lightweight, sturdy construction and a multitude of accessories to deliver seamless, hands-free lighting across an entire engine bay or vehicle perimeter.

With selectable output/brightness, users can choose from 2 to 4 hours operating time with 3 to 4-hour charging time.

Both units offer adjustable lengths that range from 1.2 metres up to 2 metres, which enables them to fit most vehicle bonnets, using detachable brackets for easy mounting and storage.

The 1,000-lumen model has a detachable light head and battery, as well as a 2-in-1 charge base that doubles as a powerful flood (800lm) and spot (400lm) torch. An optional UV torch charge base provides a powerful UV output that is ideal for air con leak detection.

Meanwhile, the more powerful 2,000 lumen lamp can operate by battery or via its included 5-metre 240V AC cable – so workshop users are never left without light. www.narva.co.nz

WE’RE HERE TO KEEP YOU GOING In these uncertain times any bit of certainty can go a long way. We’re reaching out to you, to let you know that as a key service provider to essential industries we’ll be doing everything in our power to keep you going while playing our part in keeping New Zealanders safe.

Our service department will still be operating and parts are readily available, so be sure to secure your winter servicing requirements now.

All interaction will strictly follow the government’s guidelines for safe practices.

Remember, we’re here to keep you going.

To find out more about these guidelines and how to order and receive parts go to claasharvestcentre.com.

For your local dealer go to: claasharvestcentre.com

RURAL NEWS // APRIL 21, 2020

22 MACHINERY & PRODUCTS

Industry ticks along, with eye on costs As we move into the fourth week of lockdown, Rural News machinery editor Mark Daniel took the opportunity to catch up with some of the key players in the agricultural machinery industry to find out what effect Covid-19 was having on their businesses’ and where things were heading.

Subsoilers

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NEW ZEALAND Manager for AGCO – distributors of the Massey Ferguson, Fendt and Valtra brands to name a few – Peter Scott says he’s generally happy with the levels of business, with sales continuing to be made and stock available on hand.

“Looking forward to the spring, we will have stock available – particularly in things like grassland machinery that saw sales slowed by the prolonged drought,” he says.

“We are getting daily updates about factory closures, production disruption and logistics issues.

We envisage there may be some slippage in deliveries. Today, one shipping company has advised us that they will reduce the frequency of boats arriving in NZ from three to two vessels per month,” Scott explained.

“Our dealers are all independently owned, so are working under the Government guidelines and we are leaving it to them to decide what are urgent and non-urgent jobs.”

Graeme Leigh, general manager machinery for the Power Farming Group, suggested it was a “mixed bag” with indents being a little slow in NZ. However, he says sales are “booming” over the ditch in Australia –

There are some concerns in the machinery sector about urgent air freight parts orders, as there are fewer planes making the trip to the Southern Hemisphere.

“We are getting daily updates about factory closures, production disruption and logistics issues. We envisage there may be some slippage in deliveries. Today, one shipping company has advised us that they will reduce the frequency of boats arriving in NZ from three to two vessels per month.” ability of containers, reduced sailings and the swings in currency against the US dollar,” he added.

“Closer to home, we’ve already seen cost spikes in sending stock from NZ to Australia, with a 40-foot container increasing by US$ 700 – a rise of about 25%.

Our freight forwarders in Europe are telling us that Ro-Ro (roll on-roll off) costs are also likely to rise by up to 15%,” Leigh told Rural News.

“Fortuitously, we operate a policy of forward exchange cover when we place orders on our sup-

after four bouts of good rain and a 100% capital investment allowance introduced by the Australian government.

Leigh reports that some PF supplier factories were closed in Italy and Germany, while the Kverneland factories in the Nordic countries were operating at near 100% capacity. He says some factories were seeing reduced production as they faced logistics problems securing supplies of componentry from outside contractors.

“We have ongoing concerns about rising freight costs, the avail-

plier factories – so at this time we should be able to absorb rising costs.

But we will have to keep a close eye on freight costs.”

Tim Fanning, general manager of CKNZ – the distributor for Case IH and Kuhn products – says the supply chain is being disrupted globally, with all its European and North American factories closed. He says this is likely to lead to logistics challenges.

However, Fanning points out that Case-IH NZ currently holds good stocks to cover the short to medium term. He says

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the current focus is on supporting customers, with the company holding good stocks of parts at its Palmerston North base. There are some concerns about urgent air freight parts orders, as there are fewer planes making the trip to the Southern Hemisphere.

“Our dealer network is working at reduced capacity, but like other businesses in the sector we have MPI approval to supply essential services –to keep machinery running for food production or animal welfare,” Fanning told Rural News.

“Here at CKNZ – and at our dealers – there is full compliance with the Government’s guidelines and protocols around health and safety for staff, customers and their families – alongside that of the general public – while ensuring the country’s farmers can put food on the table for all Kiwis.”

RCHASE ER PU DI AY N PR

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UA300/20s/4BX $4,954 + GST NOW $4,290 + GST

US500/30/HR30TG $5,355 + GST NOW $4,636 + GST

All prices exclude GST and shipping. Offers valid until 31st May 2020.

RSRL2-100RC $4011 + GST NOW $2,590 + GST

LA800/MAX08 $6,621.38 + GST

RURAL NEWS // APRIL 21, 2020

RURAL TRADER 23 CLOSING DOWN SALE! - BUFFALO BOOTS

After 25 years of providing workwear to New Zealand farmers - our rainwear & footwear is the best it has ever been - however we are unable to get the prices &/or sell the quantities we need to remain viable. We have a reasonable amount of stock on hand, but anticipate this will sell quickly.

Thank you to all our customers who have supported us over the years!

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ONE STOP WATER SHOP 300mm x 6 metre .......................... $410 400mm x 6 metre .......................... $515 500mm x 6 metre .......................... $690 600mm x 6 metre .......................... $925 800mm x 6 metre ........................ $1399 1000mm x 6 metre ...................... $2175 1200mm x 6 metre ...................... $3475 ALL PRICES INCLUDE G.S.T.

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We work with our mates at Farmlands, Farm Source, PGG Wrightson and Ruralco to make paying your bill a piece of cake. And between us, if you’re after a sweet deal on pricing, discounts, and rewards*, we’ve got your back on that too.

Give us a call on 0800 496 444 or visit meridian.co.nz/agri *Terms and conditions apply. Visit meridian.co.nz/agriterms