Rural News 18 May 2021

ANIMAL HEALTH

MACHINERY & PRODUCTS

AGRIBUSINESS

Urgent need for facial eczema research funding. PAGE 26

Proposed ATV solution may not be the answer. PAGE 29

Musical chairs at SFF board.

PAGE 16

TO ALL FARMERS, FOR ALL FARMERS MAY 18, 2021: ISSUE 726

www.ruralnews.co.nz

Nothing sinister!

MISSION IMPOSSIBLE PETER BURKE

SUDESH KISSUN sudeshk@ruralnews.co.nz

THE RESERVE Bank of New Zealand’s (RBNZ) controversial involvement in the new owners of the Van Leeuwen Group dairy farms has been defended.

The Companies Office shows that NZ Central Securities Depository holds 45.41% of the New Zealand Rural Land Company (NZL) shares. Its sole director is RBNZ senior executive Stephen Gordon.

NZL Director Christopher Swasbrook says there is absolutely nothing sinister about NZ Central Securities Depository holding the shares in NZL. “It’s simply a custodian of other people’s shares,” he told Rural News.

NZL recently announced the purchase of 14 dairy farms, owned by the Van Leeuwen Group, which went into receivership last month. Shareholders

are set to vote next week (May 24th) on the deal.

The company purchased its first farm in March this year; a 456ha dairy property for $10.3 million. The farm has been leased to Fortuna Group with an annual rental of $515,000.

Swasbrook says NZL provides an opportunity for local and overseas investors to acquire an interest in high quality New Zealand rural land.

“We have seen how hard it is for

locals to come up with the now sizeable amounts of capital and lay their hands on productive rural land,” he says.

“We provide all investors, irrespective of size, an opportunity to do that.”

He says NZL will always be majority New Zealand-owned as foreign investors are restricted to only holding 49.9% of the company.

The NZL board is chaired by Rob Campbell and includes former Fon-

terra executive Sarah Kennedy and Swasbrook, one of the founders of NZL. NZ Rural Land Management, the external manager of NZL, has a board comprising Richard Milsom (also one of the co-founders of NZL), Fonterra’s first woman board member Marise James and independent chair Shelley Ruha. NZ Rural Land Management is 50% owned by Allied Farmers.

• Milking It – page 3

No feed, less stock!

Banks Peninsula farmer Hamish Craw normally carries 3,500 stock units on his property, but he is now down to fewer than 2,000 as the district’s worst drought in decades continues to bite. Banks Peninsula is one of the areas worst hit by a drought that is spreading along the east coasts of both islands. Craw says his farm has now been more than 16 months in moisture deficit, apart from “a bit of a lucky break” with about 60mm of rain over Christmas. However, this only gave a little short-term relief. A few light showers in early May have made little difference. – See more on the growing dry around the country on pages 8-9.

peterb@ruralnews.co.nz

AGRICULTURE AND Trade Minister Damien O’Connor is off to Europe soon to try and breath some life into free trade talks between NZ and the UK, and NZ and the European Union.

He will be the first New Zealand cabinet minister to head to the northern hemisphere since the start of the Covid-19 pandemic.

As Rural News went to press, the final details of his trip were still being organised, but sources in Wellington suggest that meetings with top EU officials – including President Ursula von der Leyen, Trade Commissioner Valdis Dombrovskis and Agricultural Commissioner Janusz Wojciechowski. He’s also likely to have talks with ministers and officials in London.

While NZ is engaged in talks with both the UK and EU, the parties are dealing with what could be described as the easy bits of the agreements and have yet to lock horns on the real issue of concern to NZ – access for our primary exports.

The EU’s Ambassador to NZ, Nina Obermaier, believes that negotiators from both sides are very optimistic that a high quality agreement will be arrived at in the not too distant future, but declined to be more precise.

Speaking at a function in Parliament, Obermaier noted that in the last round of negotiations, which TO PAGE 4

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RURAL NEWS // MAY 18, 2021

NEWS 3 ISSUE 726

www.ruralnews.co.nz

VLG to continue milking SUDESH KISSUN sudeshk@ruralnews.co.nz

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THE VAN Leeuwen family looks set to continue milking cows on their 14 South Island farms, despite them been placed into receivership last month.

Under a new deal, the New Zealand Rural Land Company (NZL) is paying $114 million for the properties, which will be leased back to three farming groups involving the Van Leeuwens for annual rentals of nearly $6m.

NZL shareholders will meet on May 24 to vote on the deal.

Chairman Rob Campbell says it has entered into conditional agreements with Van Leeuwen Group and associated entities (VLG) and their major lender to acquire dairy assets in South Canterbury and North Otago totalling 6,350 hectares.

“Over the past four months NZL has, through its manager, undertaken extensive due diligence on these assets and the incoming tenants. NZL considers that, based on its due diligence, the acquisition represents an attractive purchase,” he says.

Three farms will be leased to Sus-

Aad and Wilma van Leeuwen and family look set to continue milking cows on their 14 South Island farms, despite them been placed into receivership last month.

tainable Grass Dairy Limited, whose directors include Aad Van Leeuwen and Wilma Van Leeuwen Junior and two independent directors, retired ASB executive Mark Heer and former chief executive of Crop and Food Research, Paul Tocker.

Five of the farms will be leased to Performance Dairy Limited, whose board includes Heer, Tocker, Aad Van Leeuwen, Wilma Van Leeuwen and Dion Van Leeuwen.

The final six farms will be leased to Performance Livestock Limited, gov-

erned by a board comprising Heer, Tocker, Aad Van Leeuwen and Rodney Van Leeuwen.

Campbell says, following due diligence, it is satisfied with the depth of New Zealand dairy farming experience that each tenant entity has and with their respective governance arrangements.

The leases are each for an initial term of 11 years, with two 12-year rights of renewal.

NZL will finance the purchase of farms through a mixture of debt and

cash: $71 million in cash and a new loan from Rabobank.

While the company has set an internal policy of debt being no more than 30% of the value of NZL’s total assets, its latest acquisition will take total debt to 42.6% of total assets.

Campbell says should NZL acquire any of the additional assets, this debt level may increase further.

The Van Leeuwen Group was placed into receivership by Australian-based funds manager Merricks Capital. It had refinanced VLG under a $140 million deal two years ago.

VLG is considered one of the largest dairy farming operations in the country, comprising 10 dairy platforms and four support blocks with 8,000ha under management, milking approximately 10,000 cows. It also includes one of the world’s largest robotic farms.

New Zealand Rural Land Company is a NZX listed company (NZL.NZX) which invests in high quality rural land in New Zealand. The company has an external manager, NZ Rural Land Management, which is 50% owned by NZX listed Allied Farmers (ALF.NZX).

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ALLOWING ONLY 125 skilled agricultural machinery operators into New Zealand next season falls way short of what’s needed, say rural contractors.

Last week, the Government announced that of 5,000 exemptions to border controls, 125 mobile agricultural machinery operators would be allowed.

Rural Contractors NZ chief executive Roger Parton says while the 125 exemptions will help, a recent

Published by: Rural News Group Printed by: Inkwise NZ Ltd 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

survey of his members showed a need for 400 experienced operators as an absolute minimum.

Parton released extracts from the survey which shows shortages of skilled machinery operators forced many rural contractors to work very, long hours and face a lot of stress.

He says some contractors say they are considering leaving the industry because the 2020/21 season was so stressful due to the lack of skilled workers, compounded by having to

manage inexperienced staff.

“What the Government must acknowledge is there are limits to how many people we can recruit and train to competently drive a $500,000-plus machine – and then be happy doing so, living and working remotely for only a few months a year.”

Parton says many farmers are largely dependent on contractors to provide them with the feed they need to get stock through winter

and adverse weather events like the drought in many regions this year or to help ensure crops can be produced and harvested.

Rural Contractors NZ is seeking an urgent meeting with MPI to discuss the latest decision and see what, if any, discretion may be able to be applied, given the risks posed by the announced border exemption for only 125 skilled machinery operators. @rural_news facebook.com/ruralnews

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RURAL NEWS // MAY 18, 2021

4 NEWS

We’re not a pushover!

PETER BURKE peterb@ruralnews.co.nz

BEEF+LAMB NZ chair Andrew Morrison has fended off criticism that his organisation is too cosy with government and won’t speak out against it.

In recent weeks, there have been growing calls for the industry good organisations – Beef+Lamb NZ and DairyNZ – to be more vocal against some of the government reforms that are affecting farmers.

But Morrison says people should judge them on the outcomes, not the outbursts.

He says right now an entity of 15 farming groups are working together to have a mature conversation with government around what is the best way to achieve some of these reforms so that they don’t impact negatively on the primary sector.

BLNZ chair Andrew Morrison concedes that industry groups have not got the message out to farmers that they are engaging strongly with government to get the right policy settings.

“None of the sectors are selling each other out to get a result.

This is about an aligned agreement about what is the best way to construct policy, and throwing rocks doesn’t work – it just gets people offside,” Morrison told Rural News. “You can have heated, mature debates, but you still have to be

respectful.”

Morrison says the new order is about the primary sector and key government ministries building trust with each other – something which he believes has been missing in the past. He says it’s about assuring officials that they have practical solutions which will achieve the policy

outcomes of government and also work on farm.

“We have to be the trusted voice of reason and convince people about our arguments based on reason and also on emotion.”

Morrison says there is no point in making statements which make producers feel good – when in fact they are antagonising others. He says the messaging has to be more sophisticated than it has been in the past.

Morrison concedes that they have not got the message out to farmers that they are engaging strongly with government to get the right policy settings.

“When things ,go wrong we just don’t roll over. We have some pretty heated debates.

Our key message is thriving rural communities, valued by all New Zealanders,” he says.

Morrison says people have to understand that

Mission impossible FROM PAGE 1

have just concluded, a lot of progress had been made. However, no finality was reached on any individual chapter or specific area.

“I think what we have done in these last ten rounds is deal with the low hanging fruit in terms of issues and these have been harvested and now we are coming to the issues that require a bit more discussion,”

she told Rural News.

“We knew that in advance, and there are no surprises. It is more than just agriculture, but of course there is an understanding that in order to land this agreement, NZ expects a revised market access offer from us around the sensitive issues of beef and dairy.”

Obermaier says the reason for being reluctant to predict a time frame is because any

FTA has to be finally approved by the 27 individual states that make up the European Union.

She says, at some stage, the negotiators will come up with a draft agreement that will be put to the member countries.

“Then it will be about finding a balance between NZ’s expectations on access and our own sensitivities,” she says. @rural_news

SECTOR BEEFS UP COLLABORATION BEEF+LAMB NZ and the Meat Industry Association (MIA) say they intend to continue to work more collaboratively.

This is one of the key take home messages from a just released report on the red meat sector, which canvasses issues facing the sector.

It notes the resilience of the sector during Covid, the success with M. bovis and the challenges around securing new free trade agreements.

The report also has commentary on climate change and other environmental matters.

MIA chief executive Sirma Karapeeva says her goal is to work much more closely with B+LNZ. She says this is because the issues both organisations are facing are not things that one agency on their own can have the energy, the resources or the space to deal with. Karapeeva points to issues such as climate change and the raft of environmental reforms.

“There are some pretty hard dead-

they are working with a government that has a majority of 28 seats and, in essence, could enact

lines and we need to collectively focus on these,” she told Rural News. “There is now a maturity of the relationship between the two organisations and we realise we need to work together to achieve something for the industry as a whole.”

Karapeeva acknowledges that to win arguments, these need to be backed by hard science. She says, to that end, they are engaging experts from research organisations and universities to produce key reports. For example, they have just completed a lifecycle analysis report on sheep and beef products.

“I totally agree that science is going to be very important in supporting our evidence and positions,” Karapeeva says.

“But we can’t employ so many different people. We have to look at creating good, strong policy in Wellington and then tap into the wide network of scientific experts in NZ and through that network, also tap into some international experts.”

whatever policy they want. He says individuals in farmer groups have their own ways of work-

ing, but they all have the same goal of working together and to influence ministers.

THE UK SITUATION IN TERMS of the UK FTA negotiations, an official report on the 4th round of talks contains such phrases as “chief negotiators provisionally agreed the outline of the whole agreement” and “both sides are working towards an agreement that will liberalise trade and promote shared values such as openness and sustainability”.

However nice and diplomatic these may sound, the reality is that the two sides still have to thrash out a deal on the ‘sensitive’ issue of agricultural trade.

UK’s High commissioner to NZ Laura Clarke says she’s pleased that the two parties have

had another productive round of FTA negotiations over the last few weeks, which she claims is a testament to the real momentum on both sides to agree an ambitious deal.

In past negotiations of this type, and in a non-Covid environment, NZ politicians and officials would have been heading to Europe on a regular basis, building relationships and lobbying potential supporters. The challenge for Damien O’Connor will be to effectively move into political speed dating mode and make his time count to get a satisfactory outcome on the FTAs – especially for agriculture.

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RURAL NEWS // MAY 18, 2021

NEWS 5

Farmers let down by Govt MIQ restrictions SUDESH KISSUN sudeshk@ruralnews.co.nz

FARMERS WILL continue to apply pressure on the Government and hope for a change of heart on the need for skilled overseas workers.

Earlier this month, the Government declined an application by the dairy sector for 500 skilled workers from overseas.

Federated Farmers immigration spokesman Chris Lewis says the Government is set to deliver its budget this week, aiming to grow the pie and reduce debt.

“For that they would need the economy to grow, but how can you with your biggest export

sector facing a worker shortage,” Lewis told Rural News.

He says farmers will continue to advocate on the issue, hoping the Government realises how worrying the situation is.

Federated Farmers and DairyNZ applied in March for 500 overseas workers after an industrywide survey to gauge the level of worker shortage.

The industry had agreed on the number of hours of work per week, to pay workers a minimum wage of $25/hour and pay managed isolation and quarantine (MIQ) costs.

Lewis says while there is anecdotal evidence of more workers needed in

Fed Farmers immigration spokesman Chris Lewis says there are 1290 vacancies for farm workers on the Farm Source website alone.

the industry, the sector settled for a bare minimum 500. He points out that on the Farm Source website, there are 1,290 vacancies for farm workers, with more vacancies posted on Facebook

where young people hang out.

Lewis says the sector will continue to have robust discussions with Agriculture Minister Damien O’Connor and the Government on the

issue.

DairyNZ chief executive Tim Mackle says having the Government application declined is disappointing and essentially lets farmers down, just as the sector heads

into its peak period.

“We have real concerns for this season, including animal welfare, farmers working longer hours, increased stress and mental wellbeing issues,” says Mackle.

“DairyNZ continues to work hard to resolve long-term workforce issues. However, we have an immediate workforce crisis this season, due to Covid border closures.

This decision is a blow to the sector.”

DairyNZ is pushing the Government to process the residency applications of those farm workers already in the country.

A recent joint DairyNZ-Federated Farm-

ers labour survey emphasised that farmers are short staffed, with 49% of respondents stating they are currently short staffed and 58% of them experiencing increased stress levels.

National’s agriculture spokesman David Bennett has accused the Government of setting up the dairy sector to fail.

“The dairy sector has provided evidence of large scale skill deficiencies and the need for migrant labour,” says Bennett. “However, the Minister of Agriculture ignores this advice and instead focuses on tightening the Government’s grip on the dairy industry workforce.”

CAPITAL REVIEW A ‘COP-OUT’ NORTHLAND FARMER Bruce Hayes is labelling the timing of Fonterra’s latest capital structure review “a cop-out”.

Hayes, a third-generation dairy farmer who is giving up milking cows at the end of this season, believes that Fonterra not freezing the share price before releasing details of the capital structure is irresponsible.

“They were always going to risk downward pressure to the share price,” he told Rural News.

This is bad news for farmers like Hayes, who are exiting the dairy industry on May 31.

Following the release of Fonterra’s capital structure review details, Fonterra’s share price nosedived from $4.56/share to $3.46 early last week.

By Thursday last week it had recovered slightly to $3.76.

Hayes claims Fonterra is manipulating the immediate share price from here on and will financially benefit from its own restructure announcements.

“The timing to release the restructure details four weeks out from the share compliance date of June 7 will first and foremost affect the exiting farmer’s ability to get a fair price when cashing in their wet shares once this date rolls over,” he told Rural News.

“Furthermore, on June 1 the exiting farmer will cease to be a co-operative member.”

Hayes says that means these farmers facing the biggest and most immediate depreciation of

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share capital, “will not have a voice at the table through the upcoming consultation process.”

Fonterra has a policy where exiting shareholders can sell onethird of their shares annually over three years, but Hayes points out that there is little chance of the share price recovering.

With Fonterra imposing a cap on the Fonterra Shareholders Fund and suspending share trading in the Shareholders Market, farmers don’t have the option of transferring any share capital to the Fund

and ride out the downward pressure in share price.

Hayes says Fonterra must honour its constitution and allow exiting farmers to leave with their “un-manipulated” fair share value.

He wants the co-op to freeze the share price at $4.59 (the preannouncement price) for the duration of the consultation and vote, just as they did for the last capital structure review and remove the temporary cap on the Fonterra Shareholders’ Fund.

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RURAL NEWS // MAY 18, 2021

6 NEWS

More trouble for Synlait SUDESH KISSUN sudeshk@ruralnews.co.nz

EMBATTLED CANTERBURY milk processor Synlait has taken another hit, with key customer and shareholder a2 Milk issuing its fourth earnings downgrade.

Synlait’s share price plunged 20c after a2 Milk trimmed its full-year earnings guidance 20% to between $1.2 billion and $1.25 billion. a2 expects underlying profit margin to fall from between 24 and 26%, to between 11% and 12%.

It is also writing down the value of between $80m and $90m worth of stock.

Synlait’s fortunes are closely tied to a2 Milk, which owns 19.8% of the milk processor and is its biggest customer for packaged infant formula

and base powder.

In a trading update this month, a2 Milk says steps taken to improve profitability through the Daigou and e-commerce channels had been ineffective.

The Daigou channel is an unofficial trade route whereby Chinese students and tourists snap up large amounts of A2 branded products to then on-sell them in China.

The company was battered by the Covid19 pandemic as it wrestled with the effects of closed borders, declining infant births in China and excess supply of its premium infant formula brand. All of which, combined to curb demand for its products throughout the pandemic and led to multiple earnings downgrades.

Delivering its half-year

results, six weeks ago, Synlait chairman Graeme Milne says the revised demand forecast received from its cornerstone customer and shareholder a2 Milk Company was “sig-

nificant and sudden”.

The knock-on effects of this demand-change continue to play out in real time: Synlait’s sales of consumer packaged infant formula fell 16% to

end to a2 Milk’s woes. Its share price shed $1.39/ share and slumped to a new three-year low last week. The company has had a wild ride on the sharemarket. It was once

18,085 MT and infant formula base powder production dropped 61%.

Milne says it continues to take a conservative view on the recovery.

However, there’s no

NZ’s largest dairy company, with a market capitalisation of $9 billion.

It is now valued at about $4.6b. @rural_news facebook.com/ruralnews

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Farmers welcome sale of loss-making China Farms. PAGE 3

AGRIBUSINESS

MANAGEMENT

NEWS

Sheep milk demand soars.

Precision tech helps farmer get it right. PAGE 31

State of the art accommodation opens at BoP kiwifruit orchard.

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NEW CHAIR COMPACT ALLR0UNDER Coull takes reigns PAGE 16

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TO ALL FARMERS, FOR ALL FARMERS OCTOBER 20, 2020: ISSUE 712 www.ruralnews.co.nz

OCTOBER 13, 2020

Payout lifts

ISSUE 457 // www.dairynews.co.nz

GOOD NEWS PETER BURKE

SUDESH KISSUN sudeshk@ruralnews.co.nz

THE FORECAST milk payout for this season has gone up by 40c and Fonterra farmers can thank Chinese consumers.

The co-operative last week announced a new range of $6.30 to $7.30/kgMS with a new midpoint of $6.80/kgMS. The revised forecast comes just a month after Fonterra announced its annual results.

BNZ senior economist Doug Steel told Rural News that he’s not surprised by Fonterra’s announcement, as “underlying tones” in the dairy markets have been improving in recent weeks.

In the latest Global Dairy Trade (GDT) auction, the price of flagship whole milk powder price topped US$3,000/metric tonne. The New Zea-

land dollar has also stabilised.

Steel says a stable NZ dollar and strong demand for WMP normally provides upward pressure on the payout.

However, he says the wide range of Fonterra’s forecast payout means “anything could still happen”.

“There’s a wide range of possible outcomes, we are seeing so much

Crisis looms Growers are warning of looming “significant price rises” for fruits and vegetables thanks to the Government’s refusal to allow overseas workers into the country for harvesting and packhouse duties.

Pukekohe’s Hira Bhana and Co Ltd say their business grows a lot of spring crops and needs overseas labour to supplement permanent workers like Taniela Vaioleti, (pictured) who was helping harvest lettuce on one of their farms last week. Growers fear that unharvested crops will lead to shortages and price hikes.

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uncertainty lingering around...anything could still happen, but for now we are seeing better prices.”

Steel says New Zealand’s close attachment to China, especially in terms of selling them dairy products, is paying dividends.

“They were first in, first out of Covid and the strong demand for

WMP there gives us hope going forward.”

Fonterra chief executive Miles Hurrell says the stronger 2020-21 milk price forecast is largely being driven by improved demand in China. He says at a $6.80 milk price, more than $10 billion would flow into regional New Zealand.

peterb@ruralnews.co.nz

NEW ZEALAND’S sheep and beef farms are already close to being carbon neutral and Beef+Lamb NZ believes this strengthens calls for the formal recognition of on-farm sequestration.

A study led by Dr Bradley Case at Auckland University of Technology (AUT) estimates the woody vegetation on New Zealand sheep and beef farms is offsetting between 63 and 118% of their on-farm agricultural emissions.

B+LNZ chief insight officer Jeremy Baker says the study was initiated as a result of a report last year, which showed that there were about 1.4 million hectares of woody vegetation on sheep and beef farms.

He says they wanted to understand how much of that was still sequestering carbon and at what level.

“The problem with the ETS scheme is that it is based on planting pines and is very much for the short term and gives a quick hit for carbon sequestration,” he says. “Whereas natives take a lot longer to sequester because they are slower growing but they are there for a longer period and they are also biologically and ecologically more secure.”

Report author Bradley Case says there is a strong case for farmers to get credit for the sequestration happening on their farms.

– See more page 5

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RURAL NEWS // MAY 18, 2021

NEWS 7

Hawke’s Bay struggles Marlborough burns with drought NIGEL MALTHUS

“IT’S JUST a bitch.”

That’s how one farmer in Hawke’s Bay summed up the drought that is affecting much of the region.

Rural professionals say the actual drought is worse now than it was a year ago. AgFirst’s Lochie MacGillivray says there is concern now in some areas about the lack of water for stock with streams not flowing and dams dry. He says very badly hit is Porangahau, on the coast south east of Hastings.

“The poor buggers – they missed out on the November rainfall, they got no spring and they only briefly got past the stress point for soil moisture in September,” he

Lochie MacGillivray

ers have told him they are flat out moving stock to other regions in the west not affected by the drought.

DairyNZ North Island lead consulting officer, Rob Brazendale, agrees that the actual drought is worse than the one a year ago. He says last year it rained in mid-April and May with the result that there was a flush of pasture growth.

“But it’s starting to get cooler and we are probably not going to get the big flush of pasture growth that we had last year, even if it rains,” he told Rural News.

“The good thing to balance that is that we had a decent spring and farmers were able to conserve more feed and have better stocks of supplement,” he says.

Brazendale says despite the dry conditions, most dairy farmers in the region are continuing to milk on as the milk price is good and, unlike last year, supplements are available and at a reasonable price.

He says, at this stage, he’s not aware of any herds being dried off. @rural_news

SEDDON FARMER and Marlborough drought committee member Warwick Lissaman says total destocking and going fishing may seem like the best option for some of Marlborough’s drought-hit farmers.

“But as an industry, we can’t do that. As a whole community, we can’t do that. We have to fight through,” he told Rural News.

Speaking following a recent wellattended drought meeting at Ward, Lissaman says farmers’ needs varied case by case. For some, it’s about personal support and relationship issues, and for others very much just animal feed and water.

He adds that some have too many animals for the feed they have, and some have feed but no water because stock water dams have had no infill for two years.

Farmers are facing extremely low pasture growth rates – zero to five kg of dry matter per hectare per day – so can’t “just fiddle” with the stock numbers, he says.

“You can’t just come down to 50%

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told Rural News. “They need a lot of rain to get back to normal soil moisture levels and that seems unlikely in the coming weeks,” he says.

MacGillivray says stock water is becoming a scarce commodity in that area and in Northern Hawke’s Bay it’s been ugly. He says north of Napier, the hills are looking green, but unfortunately for them it’s been a slow autumn.

The local Rural Advisory Group (RAG) has been meeting to monitor the situation and Rural Support Trust has also been conducting a survey to determine the worst hit areas. MacGillivray says he’s not aware of farmers having problems getting stock killed at this stage, but truck driv-

and still make it work.”

Lissaman says many farmers were at between 40% to 60% of their expected stock numbers at this time of the year, but will still be short of feed if there’s no rain-fed growth in May and June.

“You can’t de-stock the whole East Coast region by 80% for example and place those animals anywhere, to then bring them back. There just isn’t anywhere for them to go.”

For Marlborough, the worst-hit area is the Flaxbourne River catchment around Ward.

Lissaman says his own farm, near Seddon, is on the cusp of the really dry area. However, he says the drought hit home to him about a week ago when he realised some of his driest slopes had gone a grey colour, meaning the dry grass cover was now so thin that he was seeing the soil underneath.

“I haven’t had to graze those areas and I still haven’t grazed them but they’ve gone grey without me grazing them.”

In a normal summer they would go golden or bleach to white but then go green when the rains came, he says.

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RURAL NEWS // MAY 18, 2021

8 NEWS

Farmers urged to act DAVID ANDERSON

AS THE autumn dry begins to really bite along most of the South Island’s east coast, farmers are being urged to act now to mitigate the impacts heading into winter.

Farmers in South Canterbury are being pressed to act quickly as the region deals with the early stages of a drought.

“A big dry has begun to really bite over the past couple of months,” Federated Farmers South Canterbury president Jason Grant says. He’s urging farmers in the region to get in touch with their farm consultants or Rural Support Trusts if they need assistance.

Beef+Lamb NZ (B+LNZ) southern South Island extension manager Olivia Weatherburn told Rural News that farmers across her region are utilising resources available, feed budgeting and taking stock of their feed demands by filling these where they can.

“Many in Otago have

also been looking at alternative grazing options off farm,” she added.

B+LNZ’s lead extension manager Mark Harris says with no significant rain in the forecast and cooler temperatures, the window of opportunity to build pasture covers before winter is rapidly closing.

“I’d really encourage anyone affected by on-going dry conditions to make use of the feed planning and feed coordination services,” he says.

“Having a third party discuss your options with you can often help clarify your thinking and help with the critical decisions that need to be made going into the colder months.”

Harris adds that a feed planning service is open to all livestock owners and this helps farmers complete a feed plan.

This can be accessed by phoning 0800 BEEFLAMB (0800 233 352) or 0800 4 DairyNZ (0800 432 479 69).

“A feed coordination service that connects farmers who are short

Banks Peninsula, like many parts of the South Island, is experiencing the dry and now is crunch time – heading into winter – with the decisions farmers have to make getting harder.

show the power of having a third party cast an eye over the situation and guide decision making.

“It is important to try and limit the impact of these extremely dry conditions to this year and try and protect the performance of capital stock

of feed with available sources of supplement, such as silage and hay is also available.”

Harris told Rural News that in addition to drought support tools and resources, there are also case studies on B+LNZ’s website which

FUNDING EXTENDED AN EXTRA $900,000 of government funding has been made available to help farmers around the country Agriculture and Rural Communities Minister Damien O’Connor says the current largescale adverse event classification has now been expanded to include Mid Canterbury, South Canterbury, and Otago.

“Autumn has got off to an

extremely dry start in multiple regions along the east coast of the country,” the minister said.

O’Connor added that MPI was working with industry organisations, councils and Rural Support Trusts to monitor the impacts of the dry conditions and assess the need for additional support.

“The new funding will ensure feed support services can continue

and that extra wellbeing assistance will be available to more farmers affected by drought.”

Meanwhile, O’Connor says the current support for the Northland, Auckland, Waikato, Gisborne, Hawke’s Bay, Wellington and Tasman regions, as well as the ManawatūRangitīkei, Tararua and Nelson areas, will remain in place until June, when it will be reviewed.

next spring.”

Meanwhile, in Canterbury and Marlborough, drought support barbeques run by the Rural Support Trust – in collaboration with a number of other organisations, including B+LNZ – have been well attended.

B+LNZ northern South Island extension manager Briar Huggett says more than 120 people attended a recent barbeque at Little River on Banks Peninsula and another in Marlborough was similarly well attended. She says more of these events are in the pipeline.

“A lot of organisations like B+LNZ are putting a lot of time into supporting these events,” Hug-

gett adds. “Generally, farmers in the affected areas have been making really good decisions, but it is now crunch time heading into winter and the decisions are getting harder to make.”

DairyNZ farm performance general manager Sharon Morrell told Rural News that some regions across the South Island are experiencing dry conditions, including North and South Otago and northern Southland.

“Farms in these areas are managing conditions well, although are observing lower pasture covers heading into winter,” she says.

“Good growing conditions in spring means farmers are going into

this period with more supplements on hand and they are able to source purchased feed more readily than last year.”

Morrell is encouraging farmers to focus on next season and not compromise cow condition and pasture cover targets.

“Drying off cows and using supplementary feed as required will benefit next season.”

She advises that a national free feed planning service is available for farmers who need help doing a feed budget through winter.

“Dairy farmers can contact 0800 4 DairyNZ (0800 4 324 7969) for more information.” @rural_news facebook.com/ruralnews

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RURAL NEWS // MAY 18, 2021

NEWS 9

HONEST, HARDWORKING, NZ MADE LEGENDS Hamish Craw says his Banks Peninsula farm has now been in moisture deficit for more than 16 months.

Stock cut as dry bites NIGEL MALTHUS

HAMISH CRAW’S farm on the rugged north-east slopes of Banks Peninsula normally carries 3,500 stock units, but it is now down to fewer than 2,000 as the district’s worst drought in decades continues to bite.

Banks Peninsula is one of the worsthit areas of a drought, which is spreading along the east coasts of both islands.

Craw says his farm has now been more than 16 months in moisture deficit, apart from “a bit of a lucky break” with about 60mm of rain over Christmas. However, this only gave a little short-term relief.

A few light showers in early May have made little difference.

“There’s a tinge of green on the more shady faces but when you look over on the sunny faces it’s still brown,” Craw told Rural News.

His farm totals 420ha in several blocks between Little Akaloa and Okains Bay. Craw has 1,170 ewes and 60 head of cattle on farm, having sent away his hoggets and cows for grazing, and sold down all his trading cattle. This leaves him well down on stock and having to repurchase when the drought eases.

Craw is preserving what little green he has on his lower slopes by concentrating the remaining stock on a 90ha block

of high ground that will be too cold to graze in winter. This will give the lower and warmer slopes the best chance of reestablishing some growth when the rain finally comes.

Like many famers on the Peninsula, Craw is depending on bought-in feed. He is feeding out 675kg of hay and 500kg of grain daily. One truck-and-trailer unit of hay lasts just 23 days.

As the Banks Peninsula drought facilitator for Federated Farmers, Craw is in weekly contact with MPI (Ministry for Primary Industries) and other agencies.

He has helped organise farmers into support groups to help with issues such as feed budgeting.

“Everyone is probably aware that their feed budgets don’t look too good going into winter. We have dry [conditions] through May, without real growth; it’s making a big hole in their feed budgets,” Craw told Rural News. “I am aware there’s some people that are finding it pretty difficult.”

He says the important thing is to make sure farmers all keep in contact.

“We’ve had really good support from Banks Peninsula Transport who’ve organised a lot of feed,” Craw says. “They’ve made sure they’ve got barley, baleage and hay stocks on hand, so when farmers ring up, they’ve got them.”

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WORSE THAN BEFORE! the Rakaia River. It includes Banks Peninsula, which Litchfield says is the worst affected, with all feed now being brought in.

“There’s no reserves on the Peninsula at all because they’re into their second year of continuous drought.

“Parts of North Canterbury had some recovery rain and good a good spring and have now gone back into drought, but Banks Peninsula didn’t get that. It is definitely the worst, but let’s not minimise how bad it is in the North Canterbury area as well.”

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NORTH CANTERBURY farmers are struggling through “dire drought conditions worse than the previous threeyear drought,” says the province’s Rural Support Trust chair, Gayle Litchfield.

There is no sign of any rain coming and it would probably be too late now anyway, she told Rural News.

“Crops that have been planted for winter feed haven’t struck. Some farmers are already 80% of the way through their winter feed that they had stored.”

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RURAL NEWS // MAY 18, 2021

10 NEWS

Meat industry’s logistical nightmare PETER BURKE peterb@ruralnews.co.nz

MANY OF the country’s meat coolstores are either packed to capacity or nearing full capacity due to the shortage of containers.

This comes as the pressure goes on meat processors to deal with farmers trying to get rid of surplus stock as drought starts to bite in many parts of the country.

Meat Industry Association (MIA) chief executive Sirma Karapeeva told Rural News there is a question as to whether there will be enough coolstore space to hold inventory if the container crisis doesn’t ease up. She says her organisation is talking to the Ministry for Primary Industries (MPI) about seeking approval for additional storage space.

“But I also understand that there are number of companies that have been working collaboratively to help each other out with coolstore space, so that is a positive and pragmatic

NZ’s meat exporters are caught up in a global problem around the availability of containers and disrupted shipping schedules.

approach to this issue.”

Karapeeva says while there has been no talk within the industry about leasing cool storage space in key overseas markets, she wouldn’t be surprised if individual companies were going down this track.

She believes the availability of containers and disrupted shipping schedules is unlikely to be resolved anytime soon and NZ is just caught up in a global problem.

“There are containers, but they are not in the right place at the right time,” Karapeeva told

Rural News. “And because the way the shipping lines have got their schedules, they are either missing ports and are unable load on containers, or they are actively choosing to bypass certain ports in order to keep something that looks like a schedule.”

This view is backed up in a recent report by the Ministry of Foreign Affairs and Trade (MFAT), which notes that in addition to the effects of Covid-19, the grounding of a ship in the Suez Canal has exacerbated the problems. MFAT pre-

dicts that there will be a further escalation of global sea freight disruption affecting NZ exports to Northern Europe until at least June. There have also been reports of disruptions in Chinese ports.

MFAT’s report says that there has been severe congestion at Los Angeles and Long Beach ports on the west coast of America. Singapore has also been badly hit with the usual turnaround time of two days being pushed out to between five and seven days.

Finally, it says container freight rates have soared

to historical highs.

Karapeeva says the situation is quite dynamic and changes quickly.

“Certainly, staff at the processing companies are working very hard to stay in touch with the shipping lines to make sure they have a little visibility of what’s coming down the line,” she explains.

“Some of the bigger companies are better placed to manage these challenges than some of the smaller companies, because they might have long standing relationships or might have alliances with other companies such as the Kotahi Alliance.

“The feedback I have from some of the small guys is that it is a weekon-week situation – this week they might be fine and next week the situation might get worse.”

The situation is not just confined to overseas issues. Karapeeva says problems at the Port of Auckland have added an additional pressure point and that is putting strain on the Port of Tauranga to take up the slack.

Carol Ward says Zespri is concerned at the level of spread of unauthorised Gold 3 in China.

ZESPRI TO TRY CHINA TRIAL AGAIN NEXT MONTH, New Zealand kiwifruit growers will get a chance to say yes or no to a Zespri proposal for a one-year trial to grow SunGold kiwifruit in China.

The aim of the trial is to try and control the amount of illegally grown Zespri Gold 3 in China.

Some years ago, a New Zealand based Chinese national illegally sold cuttings of Gold 3 to growers in China and now it’s estimated that there is about 4,500 hectares of the fruit throughout that country.

Zespri’s chief Innovation and sustainability officer Carol Ward says the organisation is concerned at the level of spread of unauthorised Gold 3 in China and has been looking at ways to try and stop this.

“We have been working with our experts and advisors up in China to understand what is required to be able to stop this,” she told Rural News. “We have tried legal and political routes and had commercial discussions. But we have not been able to [reduce] that spread of Gold 3 in China.”

Part of the problem appears to be the fact that the Chinese see growing kiwifruit as a pathway to reducing poverty in rural China. Ward says all the advice from their experts, and from their Chinese partners, suggests that they should work with the Chinese on this issue and build a commercial partnership with their growers.

Ward believes this will give Zespri the best opportunity to bring a quality, Chinese fruit to the market under the Zespri brand.

The idea of a trial is not new. Last year, Zespri drew up a proposal to stage a three-year trial. However, the board of Kiwifruit NZ – which regulates the industry – noted that while the proposal met the standard of core business for Zespri, it posed risks to growers. But it did not reject the idea outright.

On that basis, Zespri has now modified the plan, which they hope will win the support of growers.

“What we are saying is that the risks highlighted

by KNZ are really valid and what we want to do is put in place processes and actions that reduce and mitigate risks,” Ward explains.

“So that the growers recognise we are stepping into this in a very controlled and cautious way.

What we are asking the growers for is a one year trial – the first of three years – and limiting this to 200,000 trays.”

Ward says Zespri has talked about the issue a lot with growers and is releasing an information booklet which details the trial and asks for their support. A vote on issue will take place in June.

– Peter Burke

RURAL NEWS // MAY 18, 2021

NEWS 11

Farmers and industry doing their best despite multiple challenges PETER BURKE peterb@ruralnews.co.nz

BEEF+LAMB NZ chief executive Sam McIvor says the word he’s getting from the meat exporters is that one of their most time consuming tasks is logistics.

He says they are using every tool in the box to deal with the issue and it is a major focus of their respective businesses.

One of the challenges, posed by the logistics problems, is having product in market for special occasions – such as cultural festivals. The Chinese New Year, Christmas and Easter are some of the larger ones. McIvor says getting the supply chain issues right is critical.

“But I think, to be fair, globally everyone is getting a little more tolerant of the fact that if a product doesn’t turn up tomorrow, so be it,” he told Rural News. “But there is also the risk that if people don’t have the product when they want it, they will switch to an alternative and may not come back to the original one. So yes, there are risks about our ability to supply customers and what that might mean over time.”

McIvor notes that NZ’s meat industry is still

in the middle of its busiest time of the year for processing stock. And with some areas hit by drought, farmers are having to talk to their processing companies as soon as they can to book space.

“But unlike last year, when about 70% of the country was in drought, it’s not that bad this year – which does provide some options,” he says.

For example, farmers on the west coast of the North Island are saying they have had their best season ever. So, I think there are probably options other than slaughter.”

McIvor says farmers are getting better at managing climate change by investing in better stock classes and making early decisions. He says productivity in the sheep and beef sector has increased massively resulting in the same number of lambs being produced from fewer capital stock.

“During the dry period we don’t have the same pressure now on our farm systems.”

McIvor believes that farmers are also taking a much more holistic approach to their farming operations. Taking on board the needs and views of customers, who are focusing on products

that take into account climate and environmental issues.

He notes the empha-

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RURAL NEWS // MAY 18, 2021

12 NEWS

Ag sector pushes for better UK trade deal SUDESH KISSUN sudeshk@ruralnews.co.nz

Crewther says it understands that the market access offers that the UK has made to date, fall short of the ambitions for the agreement.

“The dichotomy between the UK’s political rhetoric and its reported offers for agriculture is deeply disappointing,” says Crewther.

This month, Trade and Export Growth Minister Damien O’Connor said that New Zealand and the United Kingdom have agreed to rapidly lift the tempo of talks.

LIFTING THE tempo of trade talks with the United Kingdom is one thing, but it’s the final deal that matters most to New Zealand’s agricultural sector.

The NZ International Business Forum (NZIBF) says a comprehensive market access package remains the key to unlocking a successful outcome.

“Trade negotiations are successful when they lead to more trade under better trade rules,” says NZIBF executive director, Stephen Jacobi.

“That depends on opening markets by eliminating tariffs and non-tariff barriers.

“The work to broaden inclusion and address sustainability and other important issues of mutual interest stems from there.”

New Zealand Stephen Jacobi says trade negotiations are dairy companies successful when they lead to more trade under better trade rules. also want a UK trade deal that ing the process, with a After a meeting with comprehensively removes view to working towards UK Secretary of State agricultural tariffs. agreement in the coming for International Trade, Dairy Companies months.

Liz Truss, O’Connor Association of New Zea“I also emphasised says both countries are land (DCANZ) executo Secretary Truss that committed to accelerattive director Kimberly

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we still have a significant amount of work to ensure the market access outcomes, particularly for agriculture, reflect the ambition we have jointly set for the FTA – an ambitious, comprehensive deal that removes tariffs,” O’Connor said Teams will now intensify talks, with chief negotiators meeting monthly and the next formal rounds of talks scheduled for early June and July.

Jacobi acknowledges that good progress had been made in negotiations and there is “plenty of good will” on both sides.

“That good will now needs to be extended to

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exchanging realistic and commercially meaningful market access offers – including in agriculture,” he says. “The UK has thus far not delivered this expectation and needs to do more so the negotiation can move into its final phase.”

Dairy exporters are worried of being locked out of any free trade deal.

DCANZ rejects any suggestion that dairy is a sensitive area for this negotiation.

It noted that the UK is one of the world’s largest importers of dairy products and these imports largely come from the EU, the world’s largest dairy exporter, on duty free terms under the

UK-EU bilateral trade agreement.

“At the heart of this negotiation is the question of how the UK chooses to treat New Zealand,” says Crewther.

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RURAL NEWS // MAY 18, 2021

NEWS 15

Sheep and dairy numbers fall DAVID ANDERSON

CLIMATE CHANGE activists, who believe NZ is going to hell in a handcart due to the methane emissions from the country’s livestock population, will be delighted to learn that these numbers have fallen dramatically.

Latest figures released

by Statistics NZ show that both our sheep flock and dairy cattle numbers have declined in recent years.

Sheep numbers fell by 3% in the year ended June 2020. Stats NZ figures show that there were 26 million sheep in total – a fall of 800,000 from the previous year and a far cry from the peak flock of 70 million sheep in 1982.

The most recent drop in sheep numbers is blamed on the 2020 drought, which caused feed shortages. Hawke’s Bay recorded the largest decrease, with the total number of sheep falling by 12% (346,000) from

Latest figures released by Statistics NZ show that both the country’s sheep flock and dairy cattle numbers have declined in recent years.

the previous year to a total of 2.5 million as at June 2020, according to agricultural production statistics manager Ana Krpo.

“While the fall in sheep numbers during this period is related to the 2020 drought, there has been a general decline in the flock for almost 40 years,” she

adds. “During the past 10 years alone, sheep numbers have fallen by 6.5 million or 20%.”

The total value of sheep-meat exports was $4 billion for the year ended June 2020. However, wool export values have plunged dramatically in recent years. In 2012, wool exports were worth $880 million, but

that almost halved to just $460 million in 2020.

News that the country’s milking herd in June 2020 was down 7% (400,000) to 4.8 million – from its peak in 2016 – should have the people at Greenpeace doing cartwheels.

Stats NZ figures reveal that there was a total of 6.2 million dairy cattle as

NEW BOSS FOR RURAL WOMEN NZ “Our rural communities are an integral part of the social Ha and economic fabric of New ll Zealand.

“Women play a key role in these communities whether as primary producers, community influencers and connectors, entrepreneurs, educators or in the myriad of other essential professional and social roles they hold.”

O’Brien took up her appointment at RWNZ earlier this month.

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human resources management, facilitation and organisation development provide her with a strong background to lead our team through the next phase of our development,” O’Brien says she’s looking forward to building on the strong legacy of RWNZ and working to provide the best possible platform for rural women to raise and progress issues that are important to them.

“The total number of beef cattle dropped consistently for the 10 years between 2006 and 2016,” Krpo explains.

“Since then, good beef prices between June 2016 and 2020 has seen NZ’s total number of beef herd increase by 10% (350,000) to 3.9 million.”

Total beef cattle numbers have steadied in recent time, with little change between the June 2020 beef cattle herd and previous years. Just over two-thirds of all beef cattle are farmed in the North Island.

NZ’s total beef exports were worth about $3.8 billion for the year ended June 2020, up from $3.3 billion in the year before.

W 5,

RURAL WOMEN New Zealand recently appointed Gabrielle O’Brien as its new chief executive.

“Gabrielle brings a wealth of experience from her previous general management roles in membership based organisations both in the charitable sector and most recently at the New Zealand Law Society,” RWNZ president Gill Naylor says.

“This experience combined with her earlier background in

of June 2020, down 1% (61,000) on the previous year. The four larg-

est dairy farming regions are Waikato (1.8 million), Canterbury (1.2 million), Southland (683,000), and Taranaki (555,000).

“Despite a smaller dairy herd, the export volume has remained relatively steady in the past five years,” Krpo says. “The annual value of dairy product exports increased to almost $16 billion in 2014 when international prices were high, before falling back to almost $11 billion in 2016, and returning to $16.6 billion for the year ended June 2020.”

However, while the nation’s dairy herd has declined our beef cattle numbers are up from 2016.

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RURAL NEWS // MAY 18, 2021

16 AGRIBUSINESS

Musical chairs at SFF board DAVID ANDERSON

IT IS out with the young and in with the old at the board of meat company Silver Fern Farms Cooperative (SFF).

In a move that looks akin to musical chairs, former chair Rob Hewett has replaced his successor Richard Young at the head of the co-op’s board table. Young stood down from the role at the conclusion of SFF’s annual meeting earlier this month. However, he will see out his remaining two-year period as a farmer director.

SFF’s board has now appointed Young’s predecessor Hewett to step back into the chairman’s role – the job he relin-

quished two years ago Hewett will also continue in role as co-chair of parent company Silver Fern Farms Limited.

Young was elected as a SFF farmer director in late 2013.

The West Otago farmer was the former chair of meat sector ginger group of Meat Industry Excellence (MIE). He was then appointed chairman of Silver Fern Farms Cooperative – which jointly owns a 50% stake in Silver Fern Farms Ltd with Chinese-based Shanghai Maling Aquarius – in 2019.

Ironically, MIE strongly lobbied against SFF selling the 50% stake to Shanghai Maling,

Former chair Rob Hewett has replaced his successor Richard Young at the head of SFF co-op’s board table.

with Young – along with fellow MIE-aligned directors Dan Jex-Blake and

Fiona Hancox – labelled sell outs by the ginger group in the wake of the

deal being done. Hancox retired as a director at the recent annual meeting, while Jex-Blake still remains on the board.

Speaking after the meeting, Young said he was standing down as chair to “…facilitate transition to the next generation of Silver Fern Farms Co-operative leaders…”

He added that it was a good time to “bow out” and let the next person take it on for a longer period.

However, the co-operative board has now reappointed Hewett as chairman after he was reelected as a farmer director. Gabrielle Thompson, who was previously a board-appointed director, was the other farmer

director elected.

“Over the next three years there will be significant managed transformation in our board composition as several of our farmer elected directors come to the end of their maximum terms as allowed for in our constitution – myself included,” Hewett says.

“While the constitution does allow for term extensions for directors who have reached their maximum term, it is the clear intention of the co-operative board to manage succession proactively.”

Hewett claims SFF’s board is very focused on the importance of developing the next generation of governors.

“I am particularly pleased at our recent election with the high calibre and good number of candidates that put themselves forward for public scrutiny.”

He added that the election of Thompson as a farmer director will free up a board-appointed director role, which the board will be looking to fill later this year.

In March, Silver Fern Farms posted a $65.4 million after-tax profit for the year ending December 31, its second-strongest result of the past decade, while Silver Fern Farms Co-operative posted net profit of $32.4 million. @rural_news facebook.com/ruralnews

ONE-STOP FUEL STORAGE SHOP FUELCHIEF HAS expanded its range with the recent purchase of the Ashburton-based Sebco fuel storage business.

As the manufacturer of the well-known Sebco ‘Diesel Station’, Fuelchief managing director Joe Deck says the acquisition brings a valuable ‘Made in New Zealand’ addition to its business.

“Sebco’s range of products have become the benchmark for diesel and AdBlue storage on farms across New Zealand and we wish to thank Ed and Leah Harrison for their efforts over the past 14 years making their products what they have become today,” Deck says.

“The Sebco range of products are designed for on-farm or on-site fuel storage coming in sizes from 500 litres to 9500 litres and are proven and trusted by thousands of customers since 2007.”

Deck says Sebco’s products have robust polyethylene construction and components, so they won’t degrade, rot or rust – even in the most

demanding locations.

“The smart thinking and unique bunded designs lead the market with features such as condensation control, spill containment, stowage, weather and dust proof design, access control, night light, pump and metering options and safety compliance that others envy,” he adds.

Based in Christchurch, Fuelchief has more than 40-years’ experience in the bulk fuel storage industry. The company is a manufacturer and distributor of a wide range of fuel tank products, along with fuel management systems and accessories.

Deck says the company has also expanded into overseas markets – including Australasia and the Pacific.

“Including the range of Sebco products means that Fuelchief now has it covered for all safe and legal storage requirements of diesel, petrol, AdBlue, oils, chemicals and fertigation products.”

Fuelchief’s Joe Deck (left) shakes hands with Sebco founder Ed Harrison on his company’s recent purchase of the Ashburton-based fuel storage manufacturer.

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RURAL NEWS // MAY 18, 2021

AGRIBUSINESS 17

Fonterra’s top brass out to sell capital restructure plans SUDESH KISSUN sudeshk@ruralnews.co.nz

FONTERRA’S BOARD and management are on the road to discuss capital structure options with farmer shareholders.

Last week, the annual Fonterra network conference in Auckland, heard from the co-operative’s board and management.

Over the coming months, farmers will have the chance to share their views through a series of

to legislation by Parliament will be needed.

He notes that DIRA enabled Fonterra to be formed so that an efficient co-operative of scale could lead New Zealand into global markets.

McBride says Fonterra’s board has spent a significant amount of time looking at a wide range of options, including staying with the current structure.

It has a preferred option: a “Reduced Share

features, McBride adds.

“This would make it easier for new farmers to join the co-op and give more flexibility to existing farmers who may want to free up capital or who are working through

succession.

“We believe this is a more sustainable proposition over the longer term than the alternatives we are confronted with.”

McBride says this is the board’s current think-

ing, but they are open minded about adjusting that direction based on farmer feedback on any of the options. He says the co-op’s capital structure needs to be addressed urgently.

Fonterra chairman Peter McBride says the co-op’s capital structure needs to be addressed urgently.

McBride says the board believes the best option for the co-op is to move to a structure that reduces the number of shares a farmer would be required to have and either removes the Fund or caps it from growing further, to protect farmer ownership and control. meetings and webinars.

Fonterra says if the appetite for change remains, the board will do further work to refine the preferred option or options and have a second round of consultation.

Any changes to the co-op’s capital structure require 75% approval from voting farmers. A farmer vote will take place around the co-op’s annual meeting in November.

If the preferred outcome is to buy back the Fonterra Shareholders Fund, it would also require the approval of 75% of votes from voting unit holders.

Fonterra chairman Peter McBride says it has been talking to the Government about the proposed changes. As some aspects of Fonterra’s current capital structure are reflected in the Dairy Industry Restructuring Act 2001 (DIRA), changes

Dr. Abi Chase

Standard with either No Fund or a Capped Fund”, which has unanimous support among the board and management.

McBride says the board believes the best option for the co-op is to move to a structure that reduces the number of shares a farmer would be required to have and either removes the Fund or caps it from growing further, to protect farmer ownership and control.

Under this option, the minimum requirement for farmer owners would be one share for every four kgMS supplied to the co-op, compared with the current requirement of one share for every kgMS supplied. At the other end of the scale, farmers could hold shares up to a maximum of four times their milk supply.

Farmers will be encouraged to share their views on these and other

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RURAL NEWS // MAY 18, 2021

global agribusiness research analysts sharing market outlooks

18 MARKETS & TRENDS

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Pricing holds firm Dairy

MILK SUPPLY volumes boosted almost 10% in March 2021 YOY. Milk flow strength is a mix of favourable weather in February and March, in combination

with weak production comparables for last year, as milk production took a hit with hot weather.

We anticipate New Zealand milk collection for the current 2020/21 season (ending 31 May

Spring has sprung in the US so how will this impact on NZ beef farmgate prices?

2021) to land around 2% higher than the prior period. Global commodity prices remain in a holding pattern at elevated levels. Chinese purchasing has remained robust, fuelled by the rising cost of locally produced milk and ongoing economic recovery against a backdrop of a better than expected

finish to New Zealand’s season.

Beef

RABORESEARCH EXPECTS farmgate prices to hold steady during May, with the reduced competition from Australia assisting New Zealand product in finding a home with the change in seasons in the

US. Farmgate prices showed signs of life and nudged upwards for April 2021. Cattle slaughter in Australia continues to remain low following rain and low livestock inventory.

East coast kill rates for the first four weeks of April 2021 were down 30% YOY and down 35%

on the five year average.

Lower production volumes have flowed through to export volumes, which were lower by over 10% for March 2021 YOY. New Zealand farmgate returns have benefited from less competition from Australia in key markets particularly the US. US demand for man-

ufacturing beef has lifted in line with the changing of the seasons, with some warmer weather bringing out the barbecues. These dynamics will continue over the next month, helping to maintain New Zealand farmgate prices.

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Strong demand from China will ensure firm farmgate prices for lamb through May.

new level for March 2021.

New Zealand shipments of lamb to China reached the highest level for any March, with 23,445 metric tons of lamb exported. Export volumes for M arch 2021were 27% higher when compared to 2019 export volumes and 57% higher than the prior four year average.

A quiet European and UK market post Easter,

with lower Australian supplies, has resulted in more product being directed towards New Zealand’s largest sheepmeat market in order to meet demand.

Upside potential for farmgate returns remains over the coming months.

Prices are likely to see some upside as we move through into the seasonally tighter supply period and procure-

ment pressure continues to build particularly in light of recent store lamb demand.

We expect the continued strong demand from China, in combination with lower competition from other export markets, to ensure firm farmgate prices through May 2021.

Climate

NIWA IS forecasting

near-average or aboveaverage temperatures for most of New Zealand through to the end of July 2021.

The east coast of the South Island is likely to have average temperatures over the coming three months.

Rainfall levels are anticipated by NIWA to be near-normal for the top of the North Island. The remainder of the country is likely to receive below-normal or near-normal rainfall levels through to July 2021.

NIWA is forecasting near-normal soil moisture levels in both the north and west of the North Island, with belownormal soil moisture likely for the east coast of South Island.

currencies during the month, on the back of a softening in treasury

yields. The NZ$ also received support from strong data suggesting

that the Chinese economy is growing strongly and on rising commodity prices. However, economic uncertainty remains elevated and divergences in economic growth both within and between countries are significant”.

The Reserve Bank left interest rates unchanged at 0.25% at its April meeting.

We expect the NZ$ to trade at around USc 71 to USc 72 in coming months before a modest rise towards USc 74, 12 months from now.

Exchange rate

THE NZ$ rose 2.6 cents against the US dollar in April and was trading at USc 71.57 on May 5.

The US$ itself retreated against most

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RURAL NEWS // MAY 18, 2021

20 OPINION EDITORIAL

EDNA

Reach out!

AS THE dry begins to really bite around different regions of the country, farmers really need to take action to mitigate its affect – both on their livestock and themselves – especially heading into winter.

Farmers in Otago, Canterbury, Marlborough and Hawkes Bay are all being impacted by different stages of drought. It is important for those dry-affected farmers to reach out and talk.

As they say, a problem shared is a problem halved. B+LNZ’s Mark Harris advises: “Having a third party discuss your options with you can often help clarify your thinking and help with the critical decisions that need to be made going into the colder months.”

Drought-affected farmers can also tap into the help and support offered by the likes of Fed Farmers, Beef+Lamb NZ and DairyNZ. A feed planning service is open to all livestock owners. This connects farmers who are short of feed with available sources of supplement, such as silage and hay. It can be accessed by phoning 0800 BEEFLAMB (0800 233 352) or 0800 4 DairyNZ (0800 432 479 69).

Another important source of assistance is the various Rural Support Trusts around the country. These were specifically established to help farmers through adverse events – such as droughts. The trusts are manned by farmers and people who understand farming.

Recently, the Government announced an extension of the current adverse event declaration, with another $900,000 of funding – including extra financial support earmarked for the Rural Support Trusts.

A number of Rural Trusts are planning events, such as woolshed barbecues, so farmers can get together, share a yarn and know that they’re not on their own. Remember it is good to get off farm – even in the midst of a drought – so farmers should take advantage of attending these events when they come up.

As the old advertisement for a telephone company once advised: “It’s good to talk”.

Meanwhile, we will leave the final word to North Canterbury Rural Support Trust chair, Gayle Litchfield, who has some sage advice for those farmers experiencing tough times due to the dry – be kind to yourself and to your neighbours.

Hold on; it will rain again!

RURALNEWS TO ALL FARMERS, FOR ALL FARMERS

HEAD OFFICE POSTAL ADDRESS: PO Box 331100, Takapuna, Auckland 0740 Phone 09-307 0399 PUBLISHER: Brian Hight ......................................... Ph 09 307 0399 GENERAL MANAGER: Adam Fricker ....................................... Ph 021-842 226 CONSULTING EDITOR: David Anderson .................................. Ph 09 307 0399 davida@ruralnews.co.nz

“You do realise, Edna, if we start to float, you’ll be breaking the law banning live animal shipments!”

Want to share your opinion or gossip with the Hound?

Send your emails to: hound@ruralnews.co.nz

THE HOUND Ouch!

Red blooded

Get real

Good wicket

Your old mate was intrigued by a recent ranking of Government ministers’ performance in the media of late. Such things are always very subjective – a bit like the player rankings after rugby games. Given the mainstream media’s fawning, sycophantic love affair with the current administration, one can take these ratings with a large pinch of salt. However, of real interest is the perceived performance – or more correctly lack of it – of agriculture minister Damien O’Connor. He came out with the lowest, poorest rating of all his cabinet colleagues with 4 out of 10. While this was bad compared to the supposedly ‘top’ performing ministers – such as Ardern, Hipkins, Robertson and Little, who either scored an 8 or 9 – what must have made it even worse is that O’Connor rated well behind dropkicks such as Phil Twyford, David Clark and even the disastrous Marama Davidson. Man, that has got to hurt!

Your canine crusader had a good old giggle over the reaction to a recent survey, which found that more than 70% of men in Australia say they’d rather cut their life expectancy by up to 10 years than ditch meat. The survey, commissioned by No Meat May, also found that 47% of Aussie blokes saw eating meat as a ‘masculine undertaking’. While 81% of participants said they care about the environment, 79% said they wouldn’t give up meat to help the planet. These results – predictably – upset the sickly, woke, vegan co-founder of No Meat May, Ryan Alexander, who described the survey as “alarming”. “It shows Australian men are either not aware of any of these facts, don’t believe them, or simply don’t care,” Alexander whined. Meanwhile, this old mutt hopes that Kiwi men are as red blooded as their Australian counterparts.

A mate of the Hound’s reckons recent over-the-top coverage about Lake Hawea station owners Geoff and Justine Ross as the first ‘farmers’ in NZ to have their carbon footprint certified, is an insult to the sector. He points out that the couple – much like Hollywood movie director and Wairarapa-based ‘farmer’ James Cameron – just love to talk a big game and tell farmers how to suck eggs. However, in Cameron’s case, it was recently discovered that the Hollywood mogul’s big plans for replacing evil, carbon-belching livestock with vegetables has now made way for more lucrative dairy grazing. Meanwhile, Ross – who has been farming for all of five minutes and made all his money marketing and selling over-hyped vodka and over-priced craft beer – is now being pimped out by a government-own business, via an expensive public relation firm, as the exemplar of NZ farming.

This old mutt would like to tip his hat to the Government for its move to extend pay freezes for the highly-paid walk-short brigade who infest Wellington – public servants. Public Service Minister Chris Hipkins recently announced that public servants earning more than $60,000 will only be offered pay increases under select circumstances for the next three years and there will be no pay increases for those earning more than $100,000. However, those earning less than $60,000 – about a quarter of the sector – will still see pay increases. And before anyone sheds a tear about this, they might consider that since Labour took office in late 2017 the public service has increased in size by 10,000 people. During this period, the number of bureaucrats earning more than $100,000 has grown by 43%, from 10,519 in 2018 to 15,055 now. Not a bad wicket for a job for life!

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Rural News is published by Rural News Group Ltd. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of staff, management or directors of Rural News Group Ltd.

RURAL NEWS // MAY 18, 2021

OPINION 21

Money won’t buy happiness BACK IN April of 2010, the NZ Herald carried the story of a British man, who they reported had died penniless.

Not only was he totally broke, unhappily, he died alone. He had family too, and for a short season, more ‘friends’ than most people will ever have. But sadly, it all unwound as fulfilment simply eluded him.

It wasn’t the loss of a job, an adverse medical diagnosis, or a nasty prolonged death in the

FARMER’S CHAPLAIN

Colin Miller

happiness, they become exhausted in the futile effort of chasing themselves.” - Andrew Delbanco “If you want happi-

King Solomon had it all… his annual income included 23 metric tons of gold! When it came to things he desired, whatever stuff he wanted, he went right ahead and got it. One could be forgiven for thinking surely he must have been supremely fulfilled – even deliriously happy! Sadly, in reflection he summed it all up with one word – meaningless. family that did it. No! It was winning a lottery that proved his ruin! He later said: “If I could crawl back on broken glass to where I was, I would. The lottery has ruined our lives.”

Dying penniless is no surprise really, not for major lottery winners.

Stats inform us around 70% of winners go broke within 3 - 5 years. So, no surprises there!

Dying alone is sad though, to my way of thinking anyway. I wonder, what happened to all his ‘friends’? Truly shallow stuff indeed.

Another bloke, this time from the US, said: “I was much happier when I was broke.” He had very quickly chewed his way through a tad over $16 million (US) from a big lottery win.

I have some interesting quotes on happiness.

Here are a couple: “As people spin faster and faster in the pursuit of merely personal

ness for an hour, take a nap. If you want happiness for a day, go fishing.

If you want happiness for a year, inherit a fortune.

If you want happiness for a lifetime, help someone else.” - Old Chinese proverb.

I have observed in my life’s journey to date, that personal happiness is definitely desired and sought after by us humans. It’s an intrinsic desire that lays in us. People try all kinds of options to somehow fill the void and grab a hold of it.

I have also observed that ‘things’ just won’t cut it. Any happiness that comes from things is fleeting at best; it just doesn’t last the distance.

King Solomon had it all… his annual income included 23 metric tons of gold! When it came to things he desired, whatever stuff he wanted, he went right ahead and got it. One could be forgiven for thinking surely he must have been

supremely fulfilled – even deliriously happy! Sadly, in reflection he summed it all up with one word – meaningless.

I was in a nation in Asia a number of years ago with a pastor colleague of mine, doing missions work. I sent my friend out to have church

at an orphanage one Sunday morning. The orphanage? Three adults and 35-40 children all living in one, very average-sized, two-storeyed house.

My friend got back later that afternoon to tell me, “They are the happiest bunch of kids I have

ever been with in my life!”

It really affected him!

I wonder what they had that Solomon couldn’t find? Or our lottery winners I mentioned above?

The bottom line is true happiness is really an inside job. You can have mountains of stuff;

the latest in flat screens in every room, the latest phone… two if you want, plus a car for every day of the week. However, if things are not right on the inside, happiness will elude you.

On the other hand, you can have next to nothing, but if all is well

inside, you can enjoy authentic happiness every day.

When it comes to sorting out what’s inside, no one can equal the good shepherd.

God Bless.

• To contact Colin Millar email: farmerschaplain@ ruralnews.co.nz

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RURAL NEWS // MAY 18, 2021

22 OPINION

Industry advocacy far from muted!

AGRICULTURAL ORGANISATIONS are often at the pointy end of criticism.

We exist to act in the best interests of our farmers – as individuals and the sector’s future as a collective. That can be a hard balancing act.

To secure a future where the sector thrives and supports our communities and the New Zealand economy, we have to advocate with government.

We all know dairy, sheep and beef sectors have seen their fair share of regulatory changes in recent times. That’s tough and we all know it brings challenges which are confronting and not always welcome.

In the face of significant proposed change, we have advocated clearly for policies that work on the farm. Are we going

to win them all? No. And have the outcomes been perfect? No. But we have achieved better outcomes than what might have been foisted upon us. We have successfully removed rules and enabled farmers more time to adapt or provided greater flexibility.

Our teams do advocate hard for rules that are practical for farmers.

It takes a range of tactics – firm conversations, aligning our positions so we are also fighting for the same thing, working constructively behind the scenes, and thumping the table when needed.

We are aligned on nearly all things. Sometimes we do have a different point of view, but these situations are rare and we work hard to get on the same page.

We all pushed hard

Farm industry bodies claim they exist to act in the best interests of their farmers.

was parked, fencing rules removed and the 190kg nitrogen cap timeframes shifted out.

More recently, Federated Farmers, DairyNZ and Beef + Lamb NZ were part of the Southland Advisory Group which delivered a one-year delay in the wintering regs.

We continue to work on having impractical rules adjusted – pugging rules

on the freshwater regulations – and we haven’t finished, there is a long way to go, including fixing the low slope map for stock exclusion.

Action for Healthy Waterways was DairyNZ’s largest submission – contributing economic modelling and scientific analysis to push back on the rule changes. The proposed DIN measure

and sowing dates are firmly in our sights.

Climate change advocacy also successfully landed the science-based split gas approach which means methane doesn’t have a net zero target.

This is a huge win for farmers, as a net zero target would have had real ramifications.

Preventing agriculture from going into the Emis-

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sions Trading Scheme was a win thanks to a joint industry-led initiative, He Waka Eke Noa. Otherwise, the sector faced a $70 million per year tax at processor level. This involved huge work between our three organisations.

Currently, we are constructing an alternative framework to measure, manage, reduce and price emissions whereby any money raised by farmers goes back to farmers and farming communities.

Yes, we do work with government by being at the table – constructive conversations, backed by credible science and expertise, deliver results.

Change is constant in farming and it’s what we do. However, we don’t support change for the sake of it, or when it doesn’t make practical sense.

To help support you through these changes, we’re working hard to get farmers tools and guidance.

For example, DairyNZ’s Step Change is geared at helping support farmers to be more profitable, reduce emissions and improve water quality.

Over the next four years, Beef + Lamb NZ will roll out a new free farm plan to help farmers easily and cost effectively meet their business, consumer, environmental and regulatory needs.

We know not every farmer will agree with us on everything, but it’s vital we all work together at such a critical time.

– Andrew Morrison, Beef + Lamb New Zealand; Jim van der Poel, DairyNZ; and Andrew Hoggard, Federated Farmers

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RURAL NEWS // MAY 18, 2021

24 MANAGEMENT

Routine change leads to new challenge DAN SCHMIDT’S family came to New Zealand in 1896 and settled in Southland where they established a sheep farm.

However, 125 years later, while the Schmidt’s are still in Woodlands, just east of Invercargill, the sheep are gone and have now been replaced by dairy cows. In 2000, the family converted their sheep farm to a

dairy farm and in 2007, a second farm was converted.

Dan’s father did the first conversion and then when they got the second farm at Wakapatu, near Riverton, he helped get the farm back on track after some issues during the conversion phase.

“It was a lot of work to do the conversion phase, setting the farm

up for a different type of farming,” he explains.

However, Schmidt says the thing about dairy farming is once the farm is set up, there’s an element of routine and he’s not great at routine.

“Getting up at 4am, 9-10 months a year is not for everyone,” he adds.

“Also, my wife is a townie and didn’t want to go back down to Southland

“Getting up at 4am, 9-10 months a year is not for everyone.” to work on the farm, so I made a choice. That’s not to say I won’t go back to farming again one day.”

In the meanwhile, Schmidt’s latest challenge is at Ospri, helping farmers eradicate bovine tuberculosis (TB) from their herds in the North

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seas working holiday in the UK, Schmidt got a job at DairyNZ and then with Ministry of Primary Industry (MPI) on the Mycoplasma bovis programme. He says the principles behind disease control in the M. bovis programme are quite similar to that of bovine TB – ‘find, contain, control’ – but adds that some aspects of the work are quite different.

“For example, the M. bovis rules for compensation are quite different from the TB compensation, so that changes the support we can put around the farmers as well.”

Schmidt says the other area that is different with the bovine TB eradication programme is the aspect of vector control, otherwise known as possum/ pest control.

“It’s a major challenge that we just don’t have with the M. bovis programme,” he explains.

“1080 is the best available option to help rid

the country of possums and other pests and this is what we use for aerial operations. There are large areas to cover with steep, and difficult to access terrain. There is no other viable alternative.”

Schmidt says that in order to do aerial operations, OSPRI must get consent through consultation with landowners.

“Sometimes those can be individual private landowners, forestry blocks, Department of Conservation land or iwi trust land, where there can be thousands of beneficial land owners,” he explains.

“We work hard to gain consent from landowners and generally they understand the importance of what we are doing. We’ve gone down from 1,700 herds infected to approximately 30. Although we’re making good progress, there is still some way to go and we won’t stop until the job is done.”

Schmidt says the team he works with are passionate about their work and have great enthusiasm for eradicating TB. “TB is a devastating disease and we see firsthand the impact it has on animals, farmers and their families and rural communities. Our team often must have really difficult conversations with farmers and landowners, and we are under no illusions about the size of the task ahead.”

Schmidt says they work closely with the OSPRI shareholders, Beef + Lamb NZ, DairyNZ and Deer Industry NZ, plus other stakeholders, to ensure they can meet their needs and expectations.

“Ospri is on track for livestock being free of TB by 2026, but we’re always looking at using science and technology and strengthening our community engagement and consultation efforts to support us to reach that goal.”

RURAL NEWS // MAY 18, 2021

MANAGEMENT 25

Managing ewes when covers are low The dry in some regions of New Zealand has resulted in sheep farmers wondering how they will get through the coming winter and the impacts this may have on the number and weight of lambs weaned. Massey University’s Professor Paul Kenyon looks into the issue.

IT IS well established that poor feeding levels and thin ewes in late pregnancy and in lactation results in decreased colostrum and milk production, lighter lamb birth weights and reduced lamb vigour, brown fat levels and bonding behaviours between ewes and their lambs.

Combined, these result in lower lamb survival and lighter lambs at weaning. Therefore, farmers facing poor feeding levels going into winter need to be planning and considering their options.

Information is the key and this needs to be focused on feed availability and predicted ewe demand. Farmers need to determine, even if it just an estimate, current feeding covers and winter supplement reserves, including winter crops, and predicted pasture growth. Ewe information needed includes, ewe body condition, number of fetuses carried and indicators of early versus late lambing ewes, wether this is through mating harnesses or via pregnancy scanning.

The following outlines what farmers may wish to consider during the early- and mid-pregnancy period.

In early pregnancy ewes can be returned to maintenance feeding levels to allow pasture covers to recover – if it is still warm enough for growth.

This can be achieved with allowances in the range of 1.2 to 1.5kg DM per day, depending on ewe size or by grazing down to approximately 700kg DM/ha.

The group of ewes that farmers may wish to feed above maintenance levels

are thin ewes to allow them gain condition. This should be considered in a highly fecund flock, as most ewes will be carrying multiples, and it’s the thinnest 15 to 20% of ewes that likely have the biggest negative impact on overall ewe flock performance.

In late pregnancy, multiple bearing ewes cannot eat enough herbage to meet their nutritional needs. They try to meet this demand by utilising their body reserves. Thin ewes could be in the winter rotation before the majority of the flock, in a truck-andtrailer approach. It may be tempting for some farmers to offer good condition ewes slightly below maintenance levels, as a means of saving feed.

However, farmers need to be careful with this approach if ewes’ loose excessive condition.

If mating harnesses have been used, ewes without tup marks should be sold to save feed. If covers are extremely low, farmers who traditionally breed hoggets should consider not breeding them this year. In mid pregnancy, farmers need to get their flock scanned obtaining information on dry, single-, twin- and triplet-bearing ewes and data on early or late lambing. This – combined with body condition – will allow for targeted feeding for the remainder of the pregnancy period. Farmers may be concerned about the cost of this information. However, Australian modelling has shown that if best practise feeding guidelines in pregnancy and lactation are followed, based on the previously mentioned scanning

Farmers facing poor feeding levels going into winter need to be planning and considering their options.

information, for every dollar spent up to five dollars can be returned. Non pregnant ewes should be sold, saving feed. If pregnant ewes need to be sold, due to low pasture covers, there are three options to consider – late lambing ewes, singleton bearing ewes or older ewes. Late lambing ewes will on average result in lighter lambs at weaning time, which are often less valuable.

Singleton bearing ewes can never wean as much total lamb weaning weight, compared to a multiple bearing ewe that successfully rears more than one lamb.

Mid-pregnancy is the period to utilise winter crops such as brassicas as a means of ensuring ewes are well fed and to save pasture for later in pregnancy and in lactation. In the last few weeks of pregnancy, bulb-based brassicas can limit ewe intake due to their high-water content and should be avoided.

Post pregnancy scanning, if herbage levels are still below where they should be, the amount of feed individ-

ual ewes are offered in the mid-to-latepregnancy period should be based on the hierarchy of need.

Ewes can be divided into four groups. Ewes that need the most feed post scanning are thin first cycle multiple bearing ewes. Followed by better condition, first cycle multiple bearing ewes. Then the first cycle singletons – and lastly – all of the late lambing ewes.

Remember these later lambing, second cycle ewes, which might be 20 to 25% of the ewe flock, are in an earlier pregnancy stage at scanning and therefore can be offered lower feeding levels and pushed a bit harder. Further for these ewes, their late pregnancy period will be in the early spring period, hopefully when pasture covers are rising and therefore, they can cope with being pushed a bit harder in winter.

Whether farmers have their pregnant ewes in two, three or four management nutritional groups in the winter rotation post scanning, should be based on feed availability. When covers are low holding the less

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demanding ewe groups back and focusing any spare feed on first cycle, multiple bearing ewes – especially thin ones – is the optimal approach when using targeted feeding.

Better condition multiple bearing ewes and singleton bearing ewes can be offered slightly lower allowances and be forced to graze down to slightly lower post grazing covers. However, during the last three ewes of pregnancy, post grazing covers and allowances will need to be increased further.

It is also important in the mid-tolate-pregnancy period that farmers consider the order of paddock grazing for their winter rotation. They need to ensure those paddocks that are best for lamb survival and growth are grazed easiest in the rotation. This means these paddocks have the longest time to regain covers prior to set stocking and have multiple bearing ewes in them for lactation performing at a high level. @rural_news facebook.com/ruralnews

RURAL NEWS // MAY 18, 2021

26 ANIMAL HEALTH

Urgent need for facial eczema research funding “Whenever I talk to farmers, FE is always in the three top animal health concerns, but then it competes with the environmental and other concerns and then it drops down the list.”

PETER BURKE peterb@ruralnews.co.nz

FARMERS RATE facial eczema (FE) in their top three animal health concerns, yet there is currently no new research being undertaken to combat the problem.

This is because there is no funding. However, that could all change in the next year or so.

Dr Axel Heiser, an immunologist with AgResearch, is endeavouring to get support for a proposal that would see a range of research projects undertaken to deal with FE. There is a degree of urgency in the matter as the European Union has decided to set very low limits on the use of zinc oxide (ZnO) – because zinc is a heavy metal. Zinc is, arguably, the number one remedy for treating FE in NZ. Heiser says the EU directive will see the amount of zinc that can be used to treat agricultural livestock set at a level that is about 20% of what NZ is currently using for FE control. He

AgResearch’s Axel Heiser is endeavouring to get support for a proposal that would see a range of research projects undertaken to deal with FE.

says while the restrictions are not necessarily based on hard science, there is a lot of controversy in the EU with the use of ZnO in sunscreen preparations and agriculture.

“Whenever I talk to farmers, FE is always in the three top animal health concerns, but then it competes with the environmental and other concerns and then it drops down the list,” Heiser told Rural News.

“Since it is such an

occasional, acute disease, everybody hopes to get away with it and we have a hard time trying to convince government to spend money on it. To me, it is an animal welfare problem and farmer wellbeing problem – the stress it causes. Then there are the market access problems and the productivity problems.”

Heiser believes people vastly underestimate the damage FE causes before it manifests itself physi-

proposal to investigate new ways of detecting and dealing with facial eczema. He says they have developed the proposal with MPI and have been encouraged to proceed with it.

He says because it is seen as an ‘industry good’ project, it will require 60% of the money to come from the ag sector in order to get the balance of 40% from the Sustainable Fibres and Futures Fund (SFFF).

cally. He says it damages the liver, affects an animal’s reproductive capability and causes ill thrift.

“It’s hard to detect and we are not very good at detecting it in pasture – except for spore counts that might overestimate it,” he explains. “In the animals, we basically only see it only when the physical signs of FE emerge.”

It’s against that backdrop that Heiser is trying to put together a funding

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Heiser says they have had strong support from Beef+Lamb NZ and they are talking to DairyNZ. “We will talk in the coming weeks with individual breeders who have declared that they will support us with small amounts of money or inkind support,” he adds.

“Then we will submit it to MPI and – from there – it goes through a one year process of approval.”

Heiser says if they get the funding they will attack the FE problem from all angles. This will include looking at the genetics of the fungus in NZ to see if it is any different to the rest of the world where it is not such a big problem.

He says they want to understand the ecology and the physiology of the fungus to see if it can be

managed. They also want to see if they can introduce a predator or a competitor, which can reduce the number fungi growing in pasture.

“Then we want to find better spore count methods and an early diagnosis for the animals so that we can treat it earlier,” Heiser adds.

“Then work out a way to replace zinc with other treatments. This includes developing a vaccine which protects against the toxicity.”

Breeding animals that have immunity to FE is seen as a solution and one that is working with sheep. However, Heiser says in the dairy and cattle sectors, breeding for traits that mitigate against FE may not be seen as important as other breeding values.

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RURAL NEWS // MAY 18, 2021

ANIMAL HEALTH 27

Change to deal with drench resistance An emerging drench resistance issue has been identified on Beef + Lamb New Zealand’s Future Farm Lanercost in North Canterbury and a holistic plan is being put in place to protect future livestock productivity.

LANERCOST’S MANAGEMENT team was alerted to a problem last spring when lamb weaning weights were below what would have been

expected in an otherwise outstanding season.

Consultant vet Ben Allott looked at a number of possible issues, but parasitism identified

during a post-mortem was deemed to be the most likely cause of poor lamb performance.

“I don’t think drench resistance is limiting pro-

duction here, but poor drench selection decisions could have. But I suspect a wider systems issue is all leading to a parasite challenge problem.”

Allott says Lanercost is on the precipice in that it does have multi-drug resistance Ostertagia and if the system is set up so that there is a contin-

PREVENTING FURTHER DRENCH RESISTANCE THE FOLLOWING management strategies are being implemented on Lanercost to halt more drench resistance: • Sell non-replacement lambs as store.

• Use Faecal Egg Counts to closely monitor worm burdens and extend the interval between replacement lamb drenches for as long as possible. Threshold FEC levels will be determined to trigger a drench treatment.

• Place more rigor around Body

Condition Scoring. This will be carried out around weaning, pre-tup, late autumn and pre-lamb.

• Actively cross-graze using cattle to clean up sheep pastures and viceversa.

• No routine pre-lamb drenching.

Decisions to drench pre-lamb will be made based on FECs. • No long-acting capsules to be used.

• Quarantine drenching all stock coming onto the farm with an appropriate drench. e.g. Zolvix Plus or Startect.

• Maintain a source of refugia (undrenched ewes are ideal).

• Recognise the risk of ‘clean’ pastures or forage crops as a potential breeding ground for resistant worms and take appropriate management action e.g., follow the grazing with undrenched ewes or tail-end two-tooths.

• Include drench resistance in ram selection criteria.

For more information on parasite management go to www.wormwise. co.nz

Drench resistance is controllable with the appropriate management.

ued reliance on drench or chemical input, then the situation will rapidly deteriorate.

“The onus is on us to implement farm management that will halt the progression of drench resistance and ultimately we would like to improve.” Tests have shown some resistance to benzimidazoles (BZs) and levamisoles (LVs), but Dr Dave Leathwick from AgResearch believes this resistance is manage-

able with the appropriate management.

“This is an early warning, and you need to pay attention to it.”

Leathwick says the management team is fortunate they still have the option of drenching as they have effective drenches available to them, which is not the case on a growing number of farms.

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tance. Leathwick says there are very few farms in New Zealand that don’t have resistance of some sort.

“There might be 10% of sheep farms that don’t have any resistance, but that is possibly being generous and in cattle farms there are none. I am sure every cattle farm in NZ has Cooperia resistance.”

The focus at Lanercost is to develop longterm sustainable policies that will enable them to maximise productivity and profitability in their sheep flock without relying on drenches.

The management team on Lanercost will soon be documenting their parasite management decisions on the Future Farm page of B+LNZ’s website.

This will give farmers the opportunity to see what worked, what didn’t, and lessons learnt.

RURAL NEWS // MAY 18, 2021

28 MACHINERY & PRODUCTS

Ag machinery demand buoyant

The Stalkbuster System controls the corn borer problem without needing to use pesticides or biological plant protection agents.

MARK DANIEL markd@ruralnews.co.nz

DEMAND FOR agricultural machinery and equipment has kicked 2021 off to a fantastic start, following the momentum that built during spring and summer of 2020.

The Tractor and Machinery Association of New Zealand (TAMA) is reporting that tractor sales increased by more than 19% across all horsepower sectors for the first quarter – compared to 2020. There was a notable 30% increase in the sub-40hp sector and a near 60% increase in the 150hp-plus sector.

In the 40hp-150hp sector, which covers horticulture and dairy, growth was a more modest 8%. However, this could increase quickly as new equipment arrives in the country.

TAMA president, Kyle Baxter says he’s seeing first-hand how strengthened commodity prices are giving farmers and rural contractors more confidence to invest in new equipment. However, border control issues are a continuing challenge, affecting both the supply of staff and equipment.

“Current border

STALKBUSTER ELIMINATES MAIZE PEST

TAMA president Kyle Baxter says strengthened commodity prices are giving farmers and rural contractors more confidence to invest in new equipment.

restrictions have left many TAMA members short-staffed,” Baxter says.

“We’re looking forward to the second half of 2021, with vaccinations and digital travel passports becoming more prevalent, hopefully allowing a relaxation of border controls to assist with the flow of skilled staff to our members.”

He adds that continuing supply chain ‘challenges’ are also impacting

members.

“Global manufacturing constraints are still a reality, as plants continue to work through local Covid restrictions, but the flow of equipment into New Zealand is increasing steadily,” Baxter says.

“TAMA members who manufacture in New Zealand are reporting growth in customer confidence and a strong demand for their equipment. But, on the flip-side, they are experiencing issues with fulfill-

ing orders for export due to global shipping constraints.”

From a finance point of view, Baxter says the combination of strengthened confidence and commodity prices is resulting in the lending institutions looking favourably at the agricultural industry.

“This appetite to lend to agriculture will certainly help continue to stimulate the sector further as we go into the 2021 season.”

FARM MACHINERY

CORN BORER has become a serious issue in maize growing regions.

According to the Food and Agriculture Organization of the United Nations, the pest causes yield losses up to 50%. The FAO also estimate that the borer’s caterpillar destroys 4% of corn harvests globally.

Borer caterpillars damage corn by chewing tunnels through the corn plant, thereby restricting its water and nutrient supply and making the stems easy to snap. This means the plant is more susceptible to diseases – such as the common corn smut and fusarium infections that can also go on to affect subsequent crops.

To help alleviate the problem, New Holland Agriculture is introducing a new 8-row maize header fitted with the Stalkbuster System. This system controls the borer problem without needing to use pesticides or biological plant protection agents.

Working with header supplier Kemper, the system is integrated into the base frame of the rotary 8-row corn header and breaks up the stubble before it can be flattened by the harvester’s wheels.

Consisting of a swinging gearbox with an integrated ratchet clutch that

swings the specially shaped Buster flail, each row of stubble is broken up individually. The special swinging gearbox ensures optimum ground adjustment for every single row, while a pneumatic pressure system provides for additional soft tracking of ground contours.

If the self-propelled forage harvester needs to reverse, the Stalkbuster units are automatically lifted when the drive lever is actioned, preventing any damage.

The action of the units sees stubble smashed into small pieces down to the ground level, destroying the overwintering habitat for the corn borer.

This also reduces the fusarium risk and lowers lessens any bulky residues for post-harvest cultivation operations.

With a power requirement said to be only 4hp per row, the system uses much less power than traditional post-harvest mulching. It also has the additional benefit that stalks are “chopped’ before they are flattened by the harvester wheels or those of a tractor powering a conventional mulcher, making the process cost effective. www.newholland.co.nz

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RURAL NEWS // MAY 18, 2021

MACHINERY & PRODUCTS 29

Proposed ATV solution may not be the answer DAVID CRAWFORD

RECENT MEDIA releases from Worksafe and ACC, picked up by media outlets, focused on workplace incidents on farms from the use of quad bikes – or All Terrain Vehicles (ATVs).

The story quoted figures stating, “ACC received 566 claims from people injured on a quad bike in 2020, down from 963 a decade ago.” Figures from WorkSafe show that in the decade from January 2011 to January 2021, there were 75 ‘vehicle incident’ fatalities in

more likely to achieve much better outcomes.

Intrigued to find out whether there was a subsidy available for the purchase of helmets, I put the question to ACC. Its answer was “No!” Surely wearing a helmet would be at the top of its safety list?

Time and again, helmets have shown to significantly reduce the severity of impact and potential trauma to the head. They also lessen the overall cost of medical care compared to those in an accident without one.

WorkSafe’s own lit-

From an operational standpoint, I urge ATV riders to exercise common sense, minimise distractions. the agriculture sector.

However, data on its website doesn’t segment different vehicle types, making it impossible to understand whether ATVs, motorbikes, tractors, or another farm vehicle were involved.

Following an Official Information Act request, ACC provided data that shows fatalities are evenly spread across a range of farm vehicles. The onfarm fatality rate from ATV’s no higher than other vehicles.

However, when it comes to prevention, ACC appears fixated on one measure above all other safety actions – Crush Protection Devices (CPDs).

In fact, to enhance the uptake of CPDs since July 2019, ACC has subsidised the purchase cost by providing $180 per unit for up to two ROP units.

With such a great offer, one would expect there to have been a significant rush to fit CPDs. However, my understanding is that take up of the subsidy has been minimal at best.

I believe there are better, more accessible alternatives, which could be implemented first and

erature on ‘Safe Use of Quad Bikes’ states as the Number One rule, “Riders must be trained/ experienced enough to do the job”. ACC recognises the value of training for improved safety outcomes in the Ride Forever Programme for motorcyclists.

That program has been completed by tens of thousands of riders, with a more than 30% measurable reduction in serious injuries and fatalities for riders, compared to those who haven’t undertaken the course.

From an operational standpoint, I urge ATV riders to exercise common sense, minimise distractions. They must also ensure children don’t use a machine designed to be operated by adults.

ATVs need be used appropriately, by approved users who have received training, know what they are doing and always wear a helmet.

Donning a helmet should become second nature, a muscle-memory habit, just like reaching for a seatbelt when you get into a car.

Alongside ensuring ATVs, along with all farm vehicles, are well

maintained.

These steps are likely to lead to far better safety outcomes compared to

the fitment of CPDs. • David Crawford is chief executive of the Motor Industry Association.

David Crawford believes that wearing a helmet is shown to significantly reduce the severity of impact and potential trauma to the head in ATV accidents.

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RURAL NEWS // MAY 18, 2021

30 MACHINERY & PRODUCTS / RURAL TRADER

Is your farm hack safe?

MARK DANIEL markd@ruralnews.co.nz

WHILE THE Takata Airbag recall issue is well known, possibly affecting 100 million vehicles globally, closer to home, unregistered vehicles or those ‘retired’ to a farm hack or paddock basher may still have unmodified air bag systems fitted.

Takata’s airbag systems have the potential to cause serious injury if activated, which can happen with any sudden impact above 15km/h.

Farmers or landowners could also be responsible – under the Health and Safety at Work Act – if an employee is injured by a faulty airbag activation or where the user was too close to the airbag or had equipment resting on the airbag cover.

This situation arises because unregistered

Amazone’s new AutoTS spreading system can increase yields along the borders of the paddock by up to 17%.

Farmers or landowners could be responsible – under the Health and Safety at Work Act – if an employee is injured by a faulty airbag activation.

vehicles cannot be traced by distributors when owner data is gathered from Land Transport NZ. Therefore, if there is no registration there are no owner details available.

If you are using an ex on-road vehicle for onfarm or off-road situations, which does not have a current registration, it is important to be aware that there are

several active recalls on older vehicles for airbag systems. These may have deteriorated and have the potential to cause severe injury in the case of an activation.

If the vehicle is equipped with safety features such an air bag (SRS) system, these need to be either de-activated or monitored for recalls, to ensure they remain in

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• In the event of a rearwards flip there is negligible movement from the flexible joint • The top section of the Flexibar can also be easily removed for transportation inside a vehicle.

For a Quadbar, call me, Stuart Davidson, owner of Quadbar NZ. Phone: 021-182 8115 Email: sales@quadbar.co.nz or for more info go to www.quadbar.co.nz

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a safe condition. Airbag systems contain explosives, so get professional advice about disabling or removing these from vehicles, as incorrect handling can also result in injury due to an accidental deployment of the airbag.

Airbag systems are designed to operate in conjunction with the correct use of seat belts — even if the vehicle being used on farm or off-road and does not have any recall issues. An airbag activation, when not using seat belts, could also result in injury if the user is too close to the point of deployment, for example, a child sitting on an adult’s knee when travelling.

Most vehicle manufacturers have links on their websites to look for any outstanding recalls on their vehicles or you can use the link for the LTNZ Safety Recall site at: https://www.vehiclerecallsafety.nzta.govt.nz/

Better border control – without a passport!

CULTIVATION, SEEDING and fertiliser application specialists Amazone, claims its new AutoTS spreading system can increase yields along the borders of the paddock by up to 17%.

Accurate, tailored fertiliser application plays a critical role in reducing costs and protecting the environment.

The proven, disc-integrated system uses shortened blades for more accurate, flexible spreading along borders.

This allows the machine’s settings to be adjusted to a specific spreading situation – such as a crop edge, boundary or water course, from the tractor cab.

“For example, if a paddock borders onto land with a similar crop, 100% of the application rate can be spread right up to the edge of the field using the side spreading function,” explains CLAAS Harvest Centre product specialist – Amazone, Steve Gorman.

“If the paddock borders a road or public footpath, the boundary spreading function reduces the maximum throwing distance and prevents fer-

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tiliser from being thrown across the border.”

Large-scale field trials, conducted over several years, have compared the performance of AutoTS system to conventional border spreading techniques under real-time, practical conditions.

Comparing calcium ammonium nitrate being spread at 24 metres, over three separate passes, the average yield of the five-metre border treated using a conventional border spreading system was only 68% of the main body of the paddock.

This increased to 85% when using the Amazone AutoTS system.

“This improvement can really add up in small or irregular-shaped fields because they have a higher proportion of border area,” Gorman adds.

The value generated by the AutoTS system, compared to conventional border spreading systems, can be estimated using an Amazone’s online calculator: www.amazone.net/borderspreading-calculator – Mark Daniel

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RURAL NEWS // MAY 18, 2021

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