Rural News 29 August 2023

US targets NZ lamb!

value and 543% in quantity since the early 1990s.

US SHEEP farmers have set their sights on New Zealand lamb imports, claiming NZ sheep meat is decimating their industry.

R-Calf USA, which represents cattle and sheep producers in US domestic, international trade and marketing issues, is taking its case to US lawmakers in Washington.

A petition – representing sheep farmers from 15 states – was sent to US Trade Ambassador Katherine Tai this month. It seeks relief from lamb and mutton imports, which the group claims has decimated the US commercial sheep industry.

The 33-page petition describes the importance of the US sheep industry to America’s rural communities, environment, and economy. The petition claims imported lamb and mutton –primarily from Australia and New Zealand – have increased 2363% in dollar

It claims that Australian and NZ lamb are not subject to the more stringent production standards required of US sheep producers. One example it cites is widespread use of 1080 for predator control, while the chemical has been all but banned in the US.

Meat Industry Association chief executive Sirma Karapeeva says that the US receives only 9% of NZ’s total sheepmeat export volume.

“While there was an increase in the volume of sheepmeat exports in

A BRIDGE TOO FAR?

Wairoa Mayor Craig Little says the roads into his town are so fragile that another storm could take them out at any time. Following Cyclone Gabrielle, the town’s access to the outside world is hanging by a thread due to the state of the highway between Napier and Wairoa. Wairoa was cut off for three months when the Waikare bridge (pictured) was washed away, it has just been replaced by a single lane Bailey bridge. Little says the problems with fragile infrastructure are putting the economic viability of Wairoa and the region at risk. – See more pages 6 and 7.

2021-22, the US still only accounted for 9% of New Zealand’s total sheepmeat export volume,” she told Rural News. “The export volume over the last 12 months (2022/23) is very similar to previous years.”

Karapeeva also points out that given the scale of the US market, there are opportunities for growth in North America for both New Zealand and US lamb.

However, R-Calf USA chief executive Bill Bullard says farmers have been wary of Australian and NZ lamb imports for over a decade. He says

R-CALF USA began warning the US cattle and sheep industries that its sheep sector was the ‘canary in the coal mine’. “Where the sheep industry is going, so will go the cattle industry,” Bullard claims. “Since the early ‘90s, US lamb production had been declining drastically. But at the same time, lamb imports from Australia and New Zealand were exploding year after year.

“We cried wolf! But no one listened. Instead, they said we were a bunch of radicals trying to establish relevance in a world when globalisation was king, and every new free trade

agreement was touted as America’s next economic saviour.”

According to Bullard, the US sheep industry has declined 62% since 1980. With now only five million sheep, the number of full-time American sheep producers has fallen 60%.

“Our goal is this: to stop the ongoing destruction of our domestic sheep industry and to provide an opportunity for it to re-establish a dominant market share position so American consumers no longer have to rely on foreign supply chains for this important protein.”

SUDESH KISSUN sudeshk@ruralnews.co.nz

Schools bag carpet plan

DAVID ANDERSON

RURAL SCHOOLS around NZ are backing a new initiative to help them install wool carpet.

The move follows controversial plans by the Ministry of Education to fit almost $8 million worth of nylon carpet in up to 760 small or rural schools around the country.

NZ carpet company Bremworth will offer a subsidy of at least 30% on the cost of the wool carpet for each school. For a school needing 400sqm of carpet, this would equate to more than $10,000.

The company is also calling on the Government to provide a cash alternative to the synthetic carpet, to further help schools access wool without needing to fundraise.

Meanwhile, some rural school principals are refusing the Ministry of Education offer to install the synthetic carpet at no cost to the schools.

“We are told to teach the kids about sustainability, yet the Government isn’t actually practising what they preach,” says Cheryl Barbara, principal

of Rotherham School in North Canterbury.

She says the offer to provide synthetic carpet is inconsistent with the sustainability doctrine the Government wants taught to students and is insulting to the rural sector.

“As a principal of a rural school, I can tell you that it goes against our rural values and is highly offensive to our wider farming community, which has been struggling over the past few years.”

Barbara says rural schools are about supporting their local community.

“I don’t think there would be any rural school in New Zealand that would want to be using plastic carpet, to be honest.”

She says it is heart-warming to see a local company like Bremworth offering to do what they can to help get wool back into schools.

Under the programme, schools that are due to replace their existing flooring can apply to carpet manufacturer Bremworth for a product subsidy equivalent to at least 30% of their flooring needs to help make wool

carpet more accessible to New Zealand schools.

Bremworth chief executive Greg Smith says the decision to use synthetic carpet fibre flies in the face of the Government’s commitment to reduce the amount of plastic in our lives.

“Bremworth is doing what it can to help small Kiwi schools like Cheryl’s access New Zealand wool – a highperforming renewable and bio degradable fibre.”

Smith adds that the Ministry needs to amend its current offer to allow schools to take the cash equivalent for the plastic tiles, which they can then put towards wool carpet.

He says any schools wanting to apply for a prod uct sub sidy can contact

Fonterra share price warning!

A DIEHARD dairy co-operative champion and Fonterra shareholder is warning that the co-op could face a takeover bid if its share price continues to plummet.

Lloyd Downing, Morrinsville, claims that the co-op’s share price could drop below $2/share.

“I have been warning Fonterra directors about this,” he told Rural News

“One of them said to me, ‘oh farmers won’t allow a takeover’… I replied, look at what happened to Westland Milk.”

Hokitika-based Westland Milk was bought by China’s Yili Group in 2019 after it ran into high debt and failed to deliver a competitive milk

price to farmer shareholders.

Downing says some farmers, like him, are now questioning whether the new capital structure for Fonterra is working.

However, Jarden head of research Ari Dekker doesn’t believe Fonterra will face a takeover bid anytime soon.

“The co-op will not be subject to a takeover offer,” Dekker told Rural News. “The share price has been impacted recently by a 50 cent capital return.”

Fonterra’s share price has been having a rollercoaster ride in recent years. Five years ago, the co-op’s share price was around $5.40/share. Last week, it was sitting at $2.50/ share.

Fonterra farmers need to buy shares before they can supply milk. Farmers who bought their shares at around $5-$6 each five years ago have seen their value halved.

In recent days, Fonterra shares have fluctuated by 20c. The share price rose when it announced a strong earnings guidance but lost the gains when the co-op announced another drop in its forecast milk price for the season.

The co-op also announced a $50 million share buyback scheme, which it hopes will prop up the share price.

Dekker isn’t surprised by the share buyback, which will run for 12 months. He says $50m isn’t a meaningful amount of capital for the co-

operative and the balance sheet is in solid shape. “While value can be difficult to gauge, the gap between the Fonterra share price and the price units trade at does support the case to buy back Fonterra shares at these sorts of levels,” he says.

Dekker points out that buybacks can be used when there is surplus capital “but Fonterra is probably also trying to signal that it views the shares as a bit undervalued”.

Dekker says the earnings outlook is currently robust for Fonterra, in contrast with the trajectory on milk price. He says the strong earnings guidance should provide some value support for the shares.

– Sudesh Kissun

Bremworth chief executive Greg Smith says using synthetic carpet fibre flies in the face of the Government’s commitment to sustainability.

HWEN not dead but on life support – van der Poel

and not reflecting the progress the dairy sector has been seeking.

DESPITE HIS strong condemnation of the Government’s latest agriculture emissions pricing plan, DairyNZ chair Jim van der Poel doesn’t believe that He Waka Eke Noa (HWEN) is dead.

DairyNZ has rejected the Government latest proposal as lacking detail

Van der Poel says HWEN is a partnership between Māori, the Government and industry and its plan for the primary section was submitted to the Government, who came back with their own proposal.

“The steering committee has done its

job, but we’ve agreed on going forward,” van der Poel told Rural News. “However, a lot depends on what the new government – to be formed after October 14 general election –decides.” Van der Poel says HWEN will continue to work with the new government on emissions pricing for the agriculture sector.

He points out that

both main parties –Labour and National – have committed to meeting the targets of the Paris Climate Agreement.

“New Zealand would always have a commitment to the Paris Agreement, regardless of who the government is, and therefore agriculture would always have to be part of the solution.”

But he adds that it must be fair and equitable and work, and DairyNZ won’t support something that destroys the sector.

Van der Poel blasted the Government’s latest emissions pricing plan, saying that it shows little understanding of the challenges dairy farmers are facing this season.

“Dairy farmers are facing significant pressure right now, with business viability under threat,” he says. “The issue of emissions pricing is of huge importance behind

the farm gate, and we all need to keep our farmers top of mind.”

He says the sector will continue to work with government to seek a workable solution – but that no deal is still better than a bad deal.

DairyNZ acknowledges the issues the sector raised in December have been considered but the latest announcement lacks the detail the sector needs to provide confidence in the next steps towards implementation.

For example, how revenue will be recycled has not been detailed.

“It is also not appropriate to announce emissions pricing without some sort of guide around cost – farmers need to know the detail, to be able to plan,” says van der Poel.

@rural_news facebook com/ruralnews

CHANGE OF HEART

DAIRYNZ CHAIR Jim van der Poel won’t be retiring from the industry lobby board, as earlier planned.

Instead, the Ohaupo farmer is seeking re-election for another three-year term. After his re-election three years ago, van der Poel indicated he would step down from the board this year.

Van der Poel and Dairy Holdings chief executive Colin Glass are due to retire by rotation this year, Glass has indicated that he won’t be seeking re-election.

Van der Poel told Rural News that with Glass leaving the board and a new chief executive starting soon, he consulted with the board and it agreed that it would be helpful for him to stand for another term.

Molasses and mineral intake tubes for dietary requirements with front facing conveyor with side shift. Teaser rollers placed at door to break up clumps. 2 speed main gearboxes. Full chassis for strength.

SUDESH KISSUN sudeshk@ruralnews.co.nz

DairyNZ chair Jim van der Poel claims the ag sector partnership is not dead.

Thumbs down for ag emissions plan

GOVERNMENT MOVES

on an emissions reduction plan for the primary sector has gone down like a lead balloon with a range industry organisations.

Agriculture Minister Damien O’Connor recently announced a number of measures: including plans to measure and price agricultural emissions at the farm level, confirmation of the split-gas approach and a commitment to set the price at the lowest level possible to meet reduction gains.

O’Connor claims the Government has listened and is being flexible in taking a balanced approach. He says in his meetings with sector leaders, they have reiterated their commitment to taking a collaborative approach on agricultural emissions through the sector partnership He Waka Eke Noa (HWEN).

“We have shifted farmlevel emissions reporting

requirements into quarter 4 of 2024; emissions pricing won’t start until two years from now in quarter 4 of 2025,” O’Connor says. “Work will also get underway to allow scientifically validated forms of on-farm sequestration into the ETS, which can help reduce the cost to farmers.”

O’Connor says overseas customers have set high reduction targets on emissions, which he describes as a tectonic shift in our export markets.

He believes that means that NZ farmers will have to reduce their emissions in order to sell to these people.

“The reality is our agriculture sector will have to adapt over the coming years and reduce emissions.”

But the announcement drew a sharp response from National’s agricultural spokesperson Todd McClay who says Labour is out of touch with farmers and has given up on the rural sector.

McClay claims that the

WHAT PARTNERSHIP?

FEDERATED FARMERS president Wayne Langford has joined the chorus of opposition to the Government proposal.

He describes it as completely tone-deaf to the reality rural New Zealanders are living with. Langford says at a time when farmers are struggling to keep their heads above water and are looking for support, they’re instead being weighed down with more uncertainty, complexity and cost.

“Farmer confidence is at an all-time low, and this announcement is going to do nothing to help restore it. It will only erode it further.”

Langford says Feds agreed to try and work with the Government and other sector partners to develop a plan to reduce emissions in a way that is cost effective and fair for farmers. But he says what the Government have come back with is not a plan that’s been designed in partnership with the sector.

“It’s the Government’s plan and we have serious concerns about the impact it will have on our farmers.”

The Meat Industry Association (MIA) and Beef + Lamb NZ (B+LNZ) have also weighed into the debate. They say the arbitrary deadline set by the Government for pricing agricultural emissions is not justified, given the sector’s progress in reducing emissions and the scale of issues that still need to be addressed.

MIA chair Nathan Guy says while the Government has moved on from the “blunt” processor levy, it has taken a long time to reach a decision that doesn’t meaningfully advance critical issues.

B+LNZ chair Kate Acland says there is no sound rationale for pricing when the sector is making good progress towards meeting emissions reduction targets.

Government has failed to make any progress on agricultural emissions over the last six years.

“They have reheated their tired, old plan which risks closing down up to

20% of sheep and beef farms by requiring farmers to pay for emissions from 2025,” he says. “This is Labour’s fourth agricultural emissions plan in 18 months. While

Labour will sacrifice the economy, National has a plan to meet our climate change targets and keep farmers in business through innovative new technology.”

PETER BURKE

Agriculture Minister Damien O’Connor has got offside with the ag sector with the Government’s latest emissions reduction plan announcement.

Fragile road threatens

“THE ROADS into our town are so fragile that another storm could take them out at any time.”

That’s how Wairoa

Mayor Craig Little describes the predicament that Wairoa is facing following Cyclone Gabrielle. He says the town’s access to the outside world is hanging by a thread due to the state of the highway between Napier and Wairoa.

Little points out that the town was cut off for three months when the Waikare bridge was washed away, which has just been replaced by a single lane Bailey bridge.

He told Rural News the problems with fragile infrastructure are putting the economic viability of the town at risk. Little

believes there is a 100% chance of Wairoa going down the gurgler if infrastructure issues aren’t properly resolved.

“Any company or potential investor coming to town and looking at those roads and the connectivity would likely think twice,” he adds.

“There is little or no

tourism happening at the moment and any downturn in the rural economy will put pressure on retail in the town.”

Little says that horticulture is a sector that could work well for the district. He believes there is a lot of suitable land available, and fruit grown in Wairoa ripens ear-

lier than fruit grown in Hawke’s Bay.

He says the Tātau Tātau o Te Wairoa Māori

Trust has developed a significant horticulture operation around Wairoa, but they are having second

thoughts about expanding until the uncertainty of infrastructure – especially roading is resolved.

According to Little, most of the roads that service the town were built before the era of larger trucks and the advent of these has put pressure on the existing network.

The horror and power of Gabrielle is clearly visible in both the township and in the rural hinterland. People are still living in temporary accommodation and there are red stickered homes all around Wairoa. In the rural areas, water

still ponds in what were paddocks of maize, which have been destroyed. Silt covers pastures and homes and sheds are gone or beyond repair. Fencing remains a massive problem.

“Everyone is feeling it. Sheep and beef farmers are struggling to repair fences,” Little says.

“They have probably got kilometres and kilometres to fix and at the moment. Myself, and others, are just putting up hot wires to keep the cattle in, but that doesn’t keep the sheep in – so there is long way to go yet.”

A long slow road ahead!

I’VE DRIVEN up State Highway 2, the east coast road between Napier and Wairoa, many times but nothing had prepared me for this latest trip.

It now takes at least two and a half hours – an hour longer that it used to.

The first thing that strikes you is the number of traffic lights on the road. I encountered at least nine sets on the journey, not to mention other ‘stop-go’ signals by workers. It was a case of oneway traffic to get around a series

of slips, bridges and washouts that workers were busy repairing.

It was ‘interesting’ watching other vehicles, especially large logging or stock trucks almost tip-toe around these fragile repairs. One sensed that even a heavy shower of rain could set off another slip or washout.

Confronting was the sight of the crumbled remains of the Waikare bridge. The force of nature is stark and now there is just a single lane Bailey bridge to get through. Only one big truck is allowed on

the bridge at any given time.

This road is Wairoa’s lifeline south to Napier. This is the road that takes the primary produce and logs to markets south. It takes people to Napier airport, to their banks (there are none in Wairoa) and to major health facilities – as well as family and friends.

Yet even six months after Cyclone Gabrielle and all the work that’s been done, it is still at best a very tenuous and fragile link that could disappear at any moment.

– Peter Burke

PETER BURKE peterb@ruralnews.co.nz

Wairoa mayor Craig Little believes there is a 100% chance of Wairoa going down the gurgler if infrastructure issues aren’t properly resolved.

The crumbled remains of the Waikare bridge with only a single lane Bailey bridge as a temporary replacement.

Now is the time for better infrastructure investment

LEADING WAIROA farmer and businessman, Fenton Wilson says if ever there was a time to demonstrate the need for NZ to get its roading infrastructure into the 21st century, it’s now.

Wilson is a fifth generation sheep and beef farmer in the district and was a former chair of the Hawke’s Bay Regional Council. He’s now on a number of other company boards.

He told Rural News that businesses operating in Tairawhiti are facing increased costs to get their products to market because of the poor and unpredictable state of the roading network. He believes if the roads were better, the price of products would be lower.

Wilson describes Cyclone Gabrielle as “hugely confronting”, coming on the back of Covid and a series of uncertain years – including other storms.

“We’ve had two years of rain this year already,” he told Rural News

“My rain data shows

that we have had at least 100mm of rain a month –sometimes more – which is well above our average rainfall. You just start to take a step forward and the quad bike is stuck in the mud again. Just after Gabrielle, we got another 100mm of rain and that broke the camel’s back, up our valley.”

However, six months on from Gabrielle, Wilson says the glass is start ing to become half full again as the recovery pro gresses. He says while the grass is starting to grow, the district is still a bit wounded, bruised and battered, and there are still farmers strug gling to get fences up and machinery on their farms.

“But I think there’ s a reset coming and that people will farm differ ently following what has happened as a result of Cyclone Gabrielle,” he adds.

“We will all have a better appreciation of land classes in our busi ness and those with an aversion of trees of any sorts might have to rethink how they do stuff.”

Wilson says it’s all

UNHELPFUL POLITICS

WAIROA MAYOR Craig Little says the succession of recovery Ministers who have resigned or left has not made his life easy.

In the middle of a crisis, gone are Meka Whaitiri, Stuart Nash and Kiri Allen. The latter Little describes as a wonderful lady who was most helpful. He says not having someone to ring for help from has made life harder for him.

“We have had good relations with Ministers, but sometimes I feel the voice of Hawke’s Bay gets drowned out,” he says.

On the positive side, Little says Kieran McAnulty in his roles as Minister of Local Government, Emer gency Management and Rural Communities has been good. He describes him as being very approachable but adds that he’s a ‘busy boy’.

Little says regardless of who wins the election, it will take time for any new Minister to come to grips with the issues the district is facing. He’d like the Wairoa District Council to have the authority to deal with flood protection because he believes they can get it done quickly and cost effectively.

Peter Burke

about having viable, profitable and resilient businesses.

the future, given the excellent young farmers coming through the

PETER BURKE peterb@ruralnews.co.nz

Former regional council chair and local farmer Fenton Wilson believes if

–

NZ business passage to India won’t bring home an FTA

make the concessions necessary to get a deal over the line,” he says.

A LARGE New Zealand trade delegation is in India this week – but don’t expect any major trade deals.

The 50-strong delegation want to deepen ties with the Indian business community rather than seeking trade deals, says NZ International Business Forum executive director Stephen Jacobi.

Jacobi, who is part of the trade delegation, told Rural News that a free trade agreement is not on the agenda at this time.

“We have explored this quite thoroughly, but it has become clear that neither side is willing to

“Now we are focusing on what can be achieved in the absence of an FTA.”

Jacobi says the prospect of NZ getting special access for selected sectors like sheep meat in India is also out of the question.

“I think it could be possible to pursue cooperation on a sectoral basis, but this would be unlikely to lead to a general reduction in tariffs,” he notes.

“India is only interested in doing deals with partners with which it already has substantial relations and where it sees a clear advantage to

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its national interest.

“NZ is a very small market seen from India,” Jacobi adds. “What we need to be doing now is deepening our understanding of India and the role NZ can play in India’s continuing development story. That will hopefully unlock different co-operation possibilities including in agriculture.”

Earlier this year, the Australia-India Economic Cooperation and Trade Agreement was announced. While it’s not a comprehensive free trade deal, it provides some Australian producers with a first-mover advantage in one of the world’s fastest growing economies.

The agreement reduces tariffs on nearly 90% of Australian sheep meat, wool, horticulture, seafood, fruit, infant formula, and wine.

The Australian deal excludes dairy but Jacobi believes NZ dairy sector can eye a co-operation deal in India.

“During our five years of FTA negotiations India has made clear it could not contemplate liberalisation of the dairy sector,” he says.

“India is, however, the world’s largest dairy producer, with a sizeable dairy processing industry. That should give rise to various co-operation possibilities, even without an FTA.”

At the recent Meat Industry Association red meat sector conference in Auckland, Agriculture and Trade Minister Damien O’Connor claimed that the meat sector wants a deal with India, even if it comes at the expense of NZ dairy farmers.

But O’Connor says the Labour Government wants a comprehensive trade deal with India. The minister will accompany the trade delegation to India.

Jacobi says the mission is a business-led delegation, the initiative of five business organisations brought together by the India NZ Business Council.

SUDESH KISSUN sudeshk@ruralnews.co.nz

NZ International Business Forum executive director Stephen Jacobi.

Meat exporters face tough times

DAVID ANDERSON

MEAT PROCESSOR and exporter Alliance Group concedes it is facing tough global market conditions with both weaker demand and pricing.

In its latest newsletter to supplier/shareholders, chief executive Willie Wiese says, like all red meat exporters, Alliance’s livestock pricing reflects what prices it can capture in global markets.

“Weaker market conditions are being driven by persistently high inflation levels reducing consumers’ discretionary

than anticipated following Covid-19 and consumers there are more cautious with their spending,” Wiese explains. “Recent information out of China suggests the current slowdown in demand will continue through the short to medium term, which has led to us diversifying some products into other markets.”

He adds that the situation is also compounded by Australia producing increased volumes of sheep meat and beef.

“We are doing everything we can to mitigate

ALLIANCE SAYS China is key to any stability in the lamb market.

“Prices look like they have settled but demand for volume remains subdued as consumption is slow to reach pre-Covid-19 levels. The China ripple effect, compounded by ongoing record volumes out of Australia at levels significantly lower than New Zealand, is continuing to undermine New Zealand prices.” Meanwhile, the company says mutton markets remains weak on the back of low demand from China.

“We are continuing to pursue diversified options into Taiwan, Malaysia and North America but negative market sentiment remains. Large mutton volumes out of Australia continue to disrupt all markets.”

On the venison front, Alliance says that game season negotiations have concluded with prices marginally improved on last season.

“Demand is strong for the key five week production period that covers September-early October shipments.

Death by a thousand cuts?

SOUTH CANTER-

BURY farmers are worried about continuing to farm their land, with a local council bringing in rules around the Sites and Areas of Significance to Māori (SASM).

Local Fed Farmers chair Greg Anderson describes the new regulations as “death by a thousand cuts”. He says farmers are worried about how the proposed regulations will impact on what they can do with their land.

Timaru District Council (TDC) has identified the first 4000 property owners in the region whose land fits into the five categories of the SASM regulations –including cultural landscapes, land-based places, sacred land, waterways

and sacred areas.

Under the Resource Management Act, councils must recognise and provide for the relationship of Māori culture and traditions of ancestral lands, water, sites, wāhi tapu (sacred place or site), and other taoka (treasure, especially items of historical cultural significance) through their district plan.

“We’ve already got SNAs, outstanding landscapes and biodiversity rules and now with SASMs. It is driving the farming community mad,” Anderson says.

He is critical of the TDC who involved local rūnanga in developing the policy but did not consult the farming community.

“TDC did not involve landowners at the start of this consultation process in helping identify these

sites.”

The lack of farmer consultation is confirmed on the council’s website, where it describes the process on how SASMs were identified.

“TDC has worked closely with local

rūnanga, Arowhenua, to identify SASM. Rūnanga used a wide range of information from historic maps, oral histories and document archives held by agencies such as Te Rūnanga o Ngāi Tahu and NZ Heritage to identify

areas that are culturally significant to Arowhenua Rūnanga,” it says.

“Sites that were identified include for example, sites in which mana whenua lived/camped and gathered kai, burial sites, battle grounds, sites of

spiritual significance and that is of importance to ancestors. These were looked at closely and their extents mapped and then how these SASM could be protected into the future.”

Anderson claims that

farmers are reasonable people and if any had rock art, a pa site or a burial ground on their properties most would go out of their way to look after these sites.

“But TDC is trying to bring in heavy-handed rules, which leads to needing resource consents to carry on farming and costs money,” he adds. “Then you have to consult with the local rūnanga and get a cultural report done, which again, all costs money.”

Anderson says while farmers will still have existing use rights, meaning if they have cultivated a paddock before or farmed in a certain way they will be able to continue.

“However, if you want to change or tweak your farming regime then you have got problems.”

DAVID ANDERSON

South Canterbury farmers are worried about continuing to farm their land due to new rules around the Sites and Areas of Significance to Māori.

No penalty for minor milk downgrades –Fonterra

FONTERRA IS no longer docking farmer milk cheques for minor milk quality downgrades, until further notice.

The co-operative says this is to help cashstrapped farmers, who are also facing feed shortages. This means Fonterra farmers can bring average feed costs down by including a bit more palm kernel expeller (PKE), which can impact milk fat composition and previously risked penalties. However, the co-op has asked farmers to be prudent in their use of PKE.

In an email to farmer shareholders two weeks ago, Fonterra Farm Source group director Anne Douglas says the suspension of minor downgrades will remain in place for as long as overall Fat Evaluation Index (FEI) levels are at a manageable level. She said Fonterra’s manufacturing team remains confident that product quality is not being impacted.

Fonterra introduced the FEI grading system in 2018, saying it would help farmers supply milk with the right fat composition. It said this was done to ensure that the co-op can continue to manufacture products that meet customer specifications and provide the best return to farmers.

A minor downgrade is the first step in the milk quality framework for milk that doesn’t meet Fonterra Farmers’ Terms of Supply.

The first two minors incurred in a month do not incur a financial deduction, but any subsequent minors attract a 5% deduction from the milk payment for that day.

For FEI a minor downgrade is a result between 9.01 - 11 (category C), incurring a 5% deduction. A major downgrade is between 11.01 – 16 (category D), incurring a 20% deduction.

Any results over 16.01 are given a reject milk quality rating.

The FEI downgrade system involves two tests: A rapid low-cost screen provides daily results to the farmer. The confirmatory test is more precise and is used to confirm downgrades.

Fonterra says there will be no confirmatory testing for category C results until further notice.

“We’ve made the decision due to several factors, but most significantly because of the ongoing adverse climatic conditions across the country,” Douglas explained. “The reduced level of feed availability resulting from these conditions and the economic conditions on farm.”

She says Fonterra is confident that the

changes won’t impact product quality right now.

Fonterra has also undertaken to provide

shareholders at least seven days’ notice before reintroducing minor downgrades.

Anne Douglas says the co-op’s manufacturing team remains confident that product quality will not be impacted by the suspension of minor downgrades.

SUDESH KISSUN sudeshk@ruralnews.co.nz

Real estate slump bites into PGW’s annual result

PGG WRIGHTSON

(PGW) reported its second-strongest trading

performance in recent years – with all its business units, except real estate, making solid contributions.

The result was bet-

tered only by last year’s record result. While revenue rose 2% over last year to reach $975 million, EBITDA fell 9% to $61m and net

profit 28% to $17.5m.

PGW acting chair, U Kean Seng, noted that the resilient performance of the rural service company in volatile market condi-

tions was the most pleasing aspect of the result.

“Strong operating performance was generated by most business units with livestock, wool, and

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water all experiencing solid demand. Rural supplies and Fruitfed Supplies again experienced a standout performance,” Seng says.

“The exception was our real estate business which continues to operate in difficult market conditions.”

PGW chief executive Stephen Guerin told Rural News that the last financial year was challenging for the real estate team.

He expects the number of listed properties to rise in spring but says there won’t be too many buyers.

Gurien puts the lack of buyer interest down to high interest rates, stricter regulatory requirements, softening

commodity prices, and uncertainty regarding the outcome of the general election in October 2023.

“The real estate market has experienced one of the toughest years in some time with all contributing to negative sentiment,” he added.

Guerin says on the positive side, PGW maintained its market share and increased share in some regions.

The real estate business is part of the Agency Group, which also includes livestock and wool. Operating EBITDA was down 26% to $16m while revenue held up at around $188m.

Guerin says the livestock business achieved a solid performance in a difficult market.

COMMITMENT TO IHC CALF SCHEME

PGG WRIGHTSON has recommitted to continuing its support for the IHC Calf & Rural Scheme.

“This is a partnership that has flourished over four decades and continues to make a significant difference in the lives of some of New Zealand’s most vulnerable individuals and their families,” says Peter Newbold, general manager of PGG Wrightson Livestock.

He says PGW has recently renewed its sponsorship for the IHC Calf & Rural Scheme, committing to another three years.

“This renewal extends the legacy relationship with the IHC to a remarkable span of at least 44 years,” Newbold explains. “Such commitment showcases a dedication to creating positive change that stands the test of time.”

Launched in 1982, the IHC Calf & Rural Scheme has grown to be one of New Zealand’s most successful charitable programs.

“Through the years, this rural donation scheme has raised over $41 million for IHC, funds that have made a transformative impact on the lives of those it serves,” Newbold adds. “We’re proud of our long association with this fantastic cause.”

SUDESH KISSUN sudeshk@ruralnews.co.nz

PGW chief executive Stephen Guerin says the last financial year was challenging for the company’s real estate team.

Seeing the farms for trees

THE SCALE of beef and sheep land purchased for forestry is higher than first thought, according to a report on land-use change.

Commissioned two years ago by Beef + Lamb NZ to track the amount of land purchased for afforestation and taken out of pastoral farming, the report from consultancy firm Orme & Associates shows that 63,582ha was purchased by forestry interests in 2021. This compared with 37,950ha in 2020 and 7000ha in 2017 – showing a significant upwards trend in conversion.

B+LNZ chief executive Sam McIvor says the report will be “alarming” for farmers, rural communities and wider New Zealanders already concerned about the conversion of food producing sheep and beef land into carbon farming.

“This takes the total to more than 200,000ha of sheep and beef farms bought over the last five years,” he says.

“This scale of change is far more than what is recommended by the Climate Change Commission (25,000ha per year to meet the net zero by 2050 target) and will

have a negative impact on rural communities, food production and export income, which affects all New Zealanders.”

MPI’s Afforestation and Deforestation report, focusing on larger scale planting, also supports B+LNZ’s findings. Afforestation for 2023 was estimated to be 88,000ha in 2023, with 16% set aside for permanent forestry – though the impacts of Cyclone Gabrielle will likely muddy these numbers.

Uncertainty over policy changes led to a decrease to 36,000ha in 2022, but McIvor says this figure is likely to

increase because there is a backlog of applications sitting with the Overseas Investment Office (OIO).

“New Zealand is one of the only countries in the world that allows fossil fuel emitters to offset 100% of their emissions,” he says.

“B+LNZ is not antiforestry; there is absolutely a place for it and for offsetting. We know many farmers are interested in integrating trees into their farms, but there is a need for some balance.”

McIvor says B+LNZ also recognises the unique circumstances of some Māori landowners

MVM LOSSES CONTINUE

SUDESH KISSUN sudeshk@ruralnews.co.nz

THE A2 Milk Company (a2C) efforts to return its Southlandbased subsidiary Mataura Valley Milk to profitability remains a work in progress.

However, a2C has delivered a strong result for the 2023 financial year – on the back of success in the China infant formula market. It recorded double digit growth in revenue and earnings for the year ending June 30, 2023. Revenue jumped 10.1% to $1.6 billion.

China and ‘Other Asia’ segments sales rose 38%. Infant milk formula (IMF) sales were up 8.4% with China label sales up 27.8%. EBITDA was up 11.8% to $219.3 million and net profit rose 26% to $145m.

Mataura Valley Milk (MVM) sales were up 9.2%, however the processor reported an EBITDA loss of $26.5 million, compared to a reported loss of $18.8 million

in FY22. The MVM plant, which started processing milk in August 2018, was built by the China Animal Husbandry Group: a2MC bought a 75% stake in the company in July 2021 with CAHG retaining 25% share.

In its annual results last week, a2C noted that MVM’s net sales for the last financial year reached $114m. It recorded an EBITDA loss of $26.5m, about $4m higher than the previous year.

The company says MVM’s slightly higher EBITDA loss was due to the timing of sales in a volatile commodity and foreign exchange environment; reduced demand from third-party customers in China; increased investment in capability; significant product development trials; and investment to support future nutritional powder production.

“Accelerating MVM’s path to profitability by FY26 or earlier is a key strategic priority for the com-

forestry can and does create jobs and export revenue, carbon farming does not.

“Production forestry, in combination with

carbon forestry, can often be integrated into sheep and beef farms without loss of food production,” he adds.

currently consulting on changes to the Emissions Trading Scheme and must urgently work with the sector to implement limits before it’s too late.”

who can never sell their land, where this is a legitimate instance of where carbon credits from offsetting should be available.

A previous independent report commissioned by B+LNZ found that only Kazakhstan also offer 100% offsetting from forestry in their equivalent ETS scheme. However, Kazakhstan’s landscape makes that more of a theoretical scenario.

Most countries that allow forestry offsetting for equivalent schemes have a 4-10% limit for compliance obligation.

McIvor says that while

pany,” says a2C.

a2C managing director David Bortolussi says MVM has also commenced an on-farm methane inhibitor feasibility study, via a research agreement with Lincoln University.

Bortolussi says MVM is also developing a sustainable packaging roadmap.

Commenting on a2C’s annual results, Bortolussi says he’s proud of what the team has achieved this year.

“Growing sales by 10% while the core China IMF market declined by 14% is a remarkable achievement.

“Our China label IMF sales exceeded English-label sales for the first time, and our total IMF sales were over $1.1 billion, making us a top-3 share gainer in the market overall.”

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And it’s there that the Suzuki DR200SE has proven itself for almost 30 years, consistently outselling other farm bikes in its class. And with this great offer, it’s set to continue.

Strict quality control during manufacture is one thing. But it’s on Kiwi farms where the real testing is done.

Changes needed to lawmaking

JESSICA MARSHALL jessica@ruralnews.co.nz

A RECENT review, released at the end of last month, suggests change is needed in how regulations that impact animal welfare are made.

The Briefing on Animal Welfare Secondary Legislation report from the Regulations Review Com-

mittee report calls for a review of how legislation secondary to the Animal Welfare Act 1999 is made. This would include numerous regulations and codes of welfare.

It follows on from a 21 September hearing with the New Zealand Animal Law Association (NZALA) about its

report, Farmed Animal Welfare Law in New Zealand: Investigating the Gap between the Animal Welfare Act 1999 and its Delegated Legislation.

The committee’s report found a gap between the standards of animal welfare envisioned in the Animal Welfare Act 1999 and the standards

set out in the codes of welfare and regulations made under the Act.

Within the Act, the report states, Section 183A grants the Minister of Agriculture the power to issue codes of welfare on the recommendation of the National Animal Welfare Advisory Committee (NAWAC) and to

recommend regulations to the Governor-General.

Where that has become a problem, the report claims, is when these regulation-making powers allow for the making of regulations that provide for standards of care that do not meet obligations set out earlier in the Act.

Currently, the report claims, only two regulations – made under the Animal Welfare (Care and Procedures) Regulations are made specifically relying on Section 183A. Both relate to the treatment of pigs and both are set to be revoked on 18 December 2025.

A spokesperson from the Ministry for Primary Industries (MPI), one of two agencies charged with enforcing the Animal Welfare Act, told Rural News the Animal Welfare Regulations have set specific requirements for conduct towards a range of animals in specific scenarios, for example, dogs in vehicles, transportation of animals.

“They also clarify who can carry out certain surgical procedures on animals and how they should be done. The regulations allow for better enforcement of low to mediumlevel offending, where breaches of regulation may not meet the threshold for prosecution under the Act,” they said.

Meanwhile, the Royal Society for the Protection and Care of Animals (SPCA), another agency in charge of enforcing the Animal Welfare Act, says it welcomes the recommendations from the committee.

SPCA scientific officer Marie McAninch says the recommendation of a review signals a positive step in the right direction in addressing the current challenges within the animal welfare system.

“SPCA has long been advocating for more frequent reviews of the secondary animal welfare legislation, some of which is fast falling out of date with current science

and best practice,” says McAninch.

“We are so pleased to see this step and look forward to working alongside Government to assist in the process,” she says. “Acting as the voice for the animals, we feel strongly that animal welfare needs to be at the centre of decision making.”

The SPCA has advocated multiple times for a review of all codes of welfare every three years.

“SPCA has taken the initiative to draft several codes of welfare for companion animals because they were not receiving the necessary priority,” McAninch says.

One specific example of missing regulations relates to the permanent chaining of dogs, an area in which there are no enforceable standards.

McAninch says the absence of those enforceable standards has posed significant challenges for Animal Welfare Inspectors in their ability to effectively enforce the Animal Welfare Act.

“Our ability to ensure animals are getting the best possible outcomes in New Zealand hinges on the legal system that surrounds them,” she says.

“This report is another piece of evidence indicating that the animal welfare system needs more oversight. Our organisation agrees that one way to ensure this oversight of the animal welfare system would be the appointment of a Commissioner for Animals in New Zealand, in addition to the continuing work of the Ministry for Primary Industries, SPCA and existing Animal Welfare Committees.”

Animal Welfare Regulations set specific requirements for conduct towards a range of animals in specific scenarios.

Ag sector needs to learn the value of science – Smith

RIDDET INSTITUTE

chair Sir Lockwood Smith says while the NZ economy is based on livestock, there is a need to ensure that we are across all aspects of the future of food.

He says if we don’t, there is a risk NZ will get left behind.

In particular, Smith says, the option of blending proteins from plants and animals is fascinating and one that should be pursued. He adds that one of the traditional problems with plant protein has been the essential amino acid balance in plant proteins. Essential amino acids are required

CARBON ISSUES

by humans for their good nutrition.

“Blended proteins offer a way of fixing that because we get all the essential amino acids from animal proteins,” Smith explains.

He says it’s good to see Fonterra involved with the Riddet Institute, but he’d like to see the meat industry become more involved in long term research. Smith says he’s always had an ongo

ing interest in food products that can be nutritionally enhanced.

“We have to aim for the higher, sophisticated value markets and to do that we need to be able to satisfy our customers,” he told Rural News. “That there is a sound scientific base for sustainability and nutritional value to what we are doing. To me, ongoing science is so important.”

Before Smith entered

PETER BURKE peterb@ruralnews.co.nz

ONE OF the things that troubles Smith is the way the Intergovernmost of the food it produces, all the carbon is accounted for in NZ.

loss of soil carbon, but we have very high soil carbon content ucts in Europe. We can ship products to the UK and the emissions

“We have to aim for the higher, sophisticated value markets and to do that we need to be able to satisfy our customers, that there is a sound scientific base for sustainability and nutritional value to what we are doing. To me, ongoing science is so important.”

Riddet Institute chair Sir Lockwood Smith would like to see the meat industry more involved in long term research.

Death knell?

HOPEFULLY AGRICULTURE Minister

Damien O’Connor has metaphorically penned his own resignation letter with the release of his government’s agricultural emissions policy.

O’Connor has announced plans to measure and tax agricultural emissions at the farm level to meet the Government’s reduction targets. The tax plan could not come at a worse time –when the dairy payout has dropped $1.25kg/MS and sheep and beef prices are at five year lows.

O’Connor claims that overseas customers have set high reduction targets on emissions, which means that NZ farmers will have to reduce their emissions in order to sell to these markets.

Yet despite all of O’Connor’s – and others’ – talk about overseas customers demanding emissions reductions and a willingness to pay a premium for this, we have yet to see any sign of such premiums or refusals to take our products.

Meanwhile, his claim that the Government has listened, is being flexible and taking a balanced approach is laughable.

Federated Farmers president Wayne Langford rightly described the move as tone deaf. However, to be fair to both O’Connor and the Labour Government they have been completely tone deaf to the agriculture sector for the past six years.

Langford was joined by a chorus of opposition to the government proposal, alongside Beef+Lamb NZ, DairyNZ and the Meat Industry Association.

It appears the much hyped pan sector ‘partnership’ – He Waka Eke Noa (HWEN) – with government on ag emissions has proven to be a joke.

Primary sector leaders were told at 4.30pm on Thursday about the new government policy, which was released at 1pm the next day –despite Cabinet signing it off on the Monday. Great partnership, not!

Sector ‘leaders’ who signed up to HWEN have proven their critics right. They have let the industry down with their weak, meek criticism of government throughout this process, while their claims that it is ‘better to be at the table’ have proven to be as feeble as their representations on behalf of farmers.

If this ag emissions policy does become O’Connor and Labour’s final act to NZ’s agriculture sector, then most will say goodbye and good riddance!

THE HOUND

Tax and spend!

The Hound reckons any claims that Ag Minister Damien O’Connor is in the ‘wrong party’, will have been well and truly dispelled by comments he made at the recent Red Meat Sector Conference. In a political discussion – held at the conference between O’Connor and National’s ag spokesman Todd McClay –the Minister told the audience of 300 meat industry people that we “probably don’t have enough tax in this country… we are going to have to contribute more!” Apparently, O’Connor’s desire to tax New Zealanders more went down with this audience about as well as a fake meat burger! The fact is that Labour wants more tax despite the fact it is now collecting $100 million more a day in tax than when they came to power in 2017!

Sour taste

Your old mate suggests the country’s struggling kiwifruit growers will find the latest pay increases to executives at Zespri very hard to swallow. According to the kiwifruit marketer, the $10 million increase payments to employees - in a year when the kiwifruit marketer’s net profit fell by nearly 34% - is due to the company ‘keeping on top of its game’. The kiwifruit exporter’s annual report for 2023 shows employee remuneration and benefits rose nearly 7% from $140.6m to $150.3m, while net profit after taxation fell to $238.7m from $361.5m in FY22. Net profit before tax was $331.2m in FY23 compared to $505.1m the previous financial year. It looks like chief executive Dan Mathieson got a pay rise. The report shows the top earner in the company had a total remuneration and benefits range of $1.990m-$1.999m compared to $1.880m-$1.889m in FY22. All right for some!

PRODUCTION: Dave Ferguson Ph 027 272 5372 davef@ruralnews.co.nz

Becky Williams Ph 021 100 4381 beckyw@ruralnews.co.nz

Interest waning?

This old mutt had to laugh at a recent summary of the fake meat sector by international food expert Joanna Blythman: “No wonder people are turning their noses up at fake meat... it’s not healthy, it won’t save the planet, and it tastes like burnt dog food”. Blythman’s comments came in the wake of news that sales of plant-based burgers are plummeting. Beyond Meat recently reported that its overall sales have slumped by almost a third. The company was valued at $10 billion in 2019 and is now worth a fraction of that, at less than $1 billion. Meanwhile, sales of fake meat more generally slid in the UK by 6% last year. According to market research firm Mintel, this trend is expected to continue. “Vegetarians and vegans will be pleased that no animal had to die in making these products,” Blythman curtly added. “But that has not stopped shoppers abandoning them in droves.”

AUCKLAND SALES REPRESENTATIVE: Stephen Pollard Ph 021 963 166 stephenp@ruralnews.co.nz

Political con‘duct’

Your canine crusader has some sage advice for once-a-month, super shopper Sam – aka Tauranga MP Sam Uffindell. Next month, when you’re at the supermarket, buy an inexpensive item that will enhance your political career. No, it’s not cheese, but rather a roll of duct tape. It is guaranteed to seal off the mouth and prevent you from making embarrassing gaffes. It can also be applied to the feet to anchor them to the ground so that they don’t stray into your mouth should that duct tape around the mouth perchance fail. Meantime, Sam, if you don’t use the full roll, you can offer it to other MPs – of all political hues – who, from time to time, open their mouths and let the wind blow their tongues around.

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“I’m deciding who to vote for!”

Chickens are coming home to roost!

THE GOVERNMENT

might not control the Chinese economy and global milk prices, but it can control the regulations and red tape it is imposing on farmers.

It is now more urgent than ever to remove these needless costs. Instead, the Government has piled on red tape and regulatory pressure for little practical gain.

Freshwater Farm Plans have been a costly flop, winter grazing rules have created a massive consenting headache, immigration policy makes it hard to find workers.

Meanwhile, changes to workplace relations laws have increased wage bills by around 30-40%. Add on top of this the RMA, SNAs, Ute Tax, uncertainty around emissions pricing… The list goes on.

At a minimum, ACT would cancel the national policy statements on freshwater and biodiversity (including SNAs) – giving the job of local policy back to local government.

We would cancel the Natural and Built Environments Act and Spatial Planning Act, temporarily reinstating the RMA before carrying out property rights-based Resource Management reform. The Ute Tax would be gone and so would the Zero Carbon Act.

These are just the beginning of rolling back the avalanche of regulation Labour has put on farmers.

We would also scrap the Accredited Employer Work Visa (AEWV) that is so restrictive, replacing it with demand-based pricing. This would let employers decide if their need is worth the price instead of clunky bureaucracy.

The chickens have

come home to roost on the Government’s barrage of red tape and regulations. The recent 7.4% drop in GDT adds to existing issues that have dramatically pushed up costs on-farm, while wiping a billion and a half dollars off the muchneeded export revenue generated by dairy.

Before this drop in prices on-farm inflation was already at a 40 year high and two and a half times the Consumer Price Inflation index. Input costs are steadily increasing while commodity prices are going downwards.

This is the reality for New Zealand’s dairy farmers. Their break-even point is generally considered to be about $8.00 a kg, now many will be getting $7.00 a kg if they’re lucky.

If there was ever a time for a government to take the pressure off an industry, it is now. Every new piece of regulation to comply with, equals more time and more cost, and often for minimal change to result.

There needs to be a microscope put on what regulation is coming out of government, whether it is really necessary, or whether actually forcing farmers to comply is going to have a detrimental effect on the industry.

ACT would address this with a new minister and ministry of regulation. The minister and ministry would ensure new and existing regulations meet tough new standards and put red tape on the chopping block.

Labour’s illogical policies have made life harder for farmers and on October 14 voters can put them out to pasture.

Mark Cameron is ACT’s Primary Industries spokesman

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Model farm attracts big crowd

THERE ARE a multitude of ways for farmers to reduce nutrient and sediment loss to waterways, but explaining this is a challenge.

At this year’s Fieldays, Massey University came up with a very simple and effective way of showing what’s possible by building an interactive model showing all the different ways. Lucy Burkitt, a senior research officer at the School of Agriculture and the Environment at Massey, was literally swamped with people – students and farmers interested in the various options.

“The objective was to showcase some of the research we are doing and in particular the mitigation options that are

available to farmers to try reduce nutrient and sediment loss to waterways,” she says.

The model is quite life-like in that it shows a typical rolling hillside complete with fences, animals etc and the different options are clearly shown. A feature, which attracted both young and old, was the option to press a button and set the irrigator in action.

The model shows variable rate irrigation, which Burkitt says is about the precise application of water to try and minimise nutrient loss particularly if the farm has different soil types.

“If there are paddocks closer to a waterway ideally a farmer might apply less water,” she explains.

The model shows fencing, riparian planting and controlled drainage, which allows the water to back up in the soil, resulting in denitrifi-

cation – where the nitrate is converted into nitrogen

gas that cleans the water. There is an example of

wetlands and a wood chip bioreactor. In this

case, water is collected in drains in a paddock and then put through the bioreactor where once again the nitrate is removed.

“We also show a detainment bund, which is at the bottom of a slope that allows ponding and for phosphorous to settle,” Birkett adds.

“We are also showcasing good practice with grazing management, which means leaving grass at the bottom of the slope so that it will capture some of the sediment.”

Burkitt says the model has worked well and has helped farmers to better understand some of the options that are available to them to deal with nutrient and sediment on their farm. She believes that the model will enable farmers to visualise what this all might look like.

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PETER BURKE peterb@ruralnews.co.nz

Lucy Birkett and interactive model showing the different ways to reduce nutrient and sediment loss to waterways.

Farmers urged to get behind new FE research project

FARMERS ARE being asked to get their crap – the ovine variety –together and participate in a facial eczema (FE) research project.

Beef + Lamb New Zealand (B+LNZ) is calling on farmers to help out with a three-year study by collecting sheep poo. The organisation says this will help it understand how widespread facial eczema is in New Zealand.

B+LNZ claims the research will help fill gaps in the understanding of FE’s prevalence in NZ and whether a warming climate is having an effect on its distribution.

FE is associated with a toxin-producing fungus, affects pasture grazing livestock and there is no cure. The toxin can cause permanent liver damage resulting in photosensitivity and sunburn. If the animal survives, its production will be limited for life.

B+LNZ’s economic service estimates the annual cost of the disease to the New Zealand sheep, beef, dairy and

deer sectors to be around $332m.

The organisation’s science strategy manager Suzi Keeling says those who volunteer to take part in the research will be playing an integral role in shaping future tools and solutions for FE management.

“To ensure we get an accurate picture of facial eczema from every corner of New Zealand, we are looking for 350 enthusiastic farmers, 22 each from 16 regions around New Zealand, to collect sam-

COLD SNAPS can be challenging for newborn lambs, but an injection of dextrose can be a lifesaver for cold or weak lambs.

Beef + Lamb New Zealand’s senior advisor biosecurity and animal welfare, Will Halliday, says lambs born during a cold snap will exhaust all their energy reserves just trying to keep warm and won’t have the strength to feed. He says they are then in danger of starving to death.

A 20% dextrose mix (ideally warmed) injected straight into the lamb’s abdomen will give it the energy boost it needs to survive but should only be used as a last resort.

Halliday says it is important the dextrose is given before warming the lamb up.

“If you warm the lamb up before administrating the dextrose, it can hasten its death.”

He adds that the ideal candidates for this treatment are lambs that are four or five hours old that have not fed off their mothers. Newborn lambs will typically respond to just being warmed up without the injection, although a dextrose injection won’t hurt them.

Halliday advises that farmers can buy 40% dextrose off their vets and use sterile water (cooled boiled water) or saline to dilute it themselves. He stresses that table sugar is not a suitable substitute for dextrose and should not be used.

• Source: B+LNZ

ples from October to May each year for three years,” she says.

“We want samples collected across New Zealand regardless of whether farms have experienced FE in the past.

B+LNZ will provide instructions, sampling kits and cover the costs to courier samples to the laboratory.”

Those participating in the study would be required to collect samples 16 times, roughly every two weeks, from their mob of sheep each

year of the study.

Keeling says the samples would need to be taken from the same mob of sheep throughout the season, but a different mob can be used each year.

“It’s as simple as taking a walk in a paddock, there’s no need to yard the animals. Just scoop up 10 individual fresh samples from the ground,” she explains.

“In return for the samples, B+LNZ will provide faecal spore count results

as soon as lab testing is completed, access to a monthly updated map showing spore counts around the country and a Prezzy Card at the end of the season if you are able to send all the samples in.”

Farmers can express their interest in participating in the FE research study by registering their details below.

https://www.cognitoforms. com/BLNZGenetics/FacialEczemaThreeYearResearchStudy

Farmers are being asked to help out with a three-year FE study by collecting sheep poo.

Self-propelled sprayer a ‘huge leap ahead’ in weed control

SOUTHERN

QUEENSLAND farmers

Jake and Felicity Hamilton say investing in a John Deere 616R self-propelled sprayer equipped with See & Spray Select has been ‘hugely beneficial’ to their dryland cropping business.

They cite the machine’s simplicity, efficiency and ease of use, but most of all, the potential to offer savings in time and money during chemical application, varying from 70% to as high as 95%.

While the Hamilton family has been farming in the region since 1937, the couple notes that the onset of climate change means they need to adapt their cropping regime to more intense rainfall events that are becoming less regular.

“We’ve been chasing efficiency gains and making improvements over the years with John Deere products such as AutoTrac, which has improved pass to pass overlap and section control with older sprayers to save on chemical,” Jake Hamilton says.

“All of these machines and technologies have brought small gains, whereas See & Spray Select has helped us make a huge leap ahead.”

With an annual rainfall of 570mm at their Krui Pastoral property, the Hamilton’s grow mainly winter crops including wheat, barley, chickpeas, faba and mung beans. The summer is too hot to make sorghum viable.

Over a decade ago, the Hamiltons began to invest in more effi-

EASYCUT MOWERS

cient weed technology as part of a move to integrated weed management (IWM).

This came in the wake of the glyphosate resistance of the mid-2000s. The main aim was to stop weed seed-set at all costs, and the program has worked well.

“We used IWM practices, including high seeding rates to create strong crop competition, an incrop and summer residual chemistry program and optical spot-spraying, while also treating

sparse, hard-to-control weeds such as Feathertop Rhodes grass with a mobile spraying unit on a John Deere Gator,” Hamilton adds.

“For the last decade, we’ve had a pretty strict regime of using residual herbicides over summer to try to keep our weed burden down, but even with that you’re always going to get escapees. That’s where the See & Spray Select really comes in, because we can just go out and hit any of those escapees without having

to spray the whole paddock.”

See & Spray Select integrated camera technology detects green weeds as small as 0.9cm diameter in fallow and triggers a spot treatment application from multiple nozzles to these plants only. The 616R sprayer has increased productivity by not spraying all the time.

The result is less refilling, with a single morning fill allowing the operator to spray all day. With regards to efficiency and ease of use, the sprayer boom folds in 30 seconds and the unit can travel at speeds of up to 55km/h, shortening the travel times between paddocks.

The couple are also quick to add that the See & Spray Select has reduced chemical usage and, in turn, their chemical costs.

“When we’re fallow spraying, we just leave the cameras on all the time, so even if we’re only saving 5 to 10%, that’s still a saving that most businesses would take any day,” Hamilton explains.

Felicity Hamiton adds that the data generated in the cabin also makes it easy to monitor each operation for compliance.

“We have a legal responsibility to document what we’re putting on with the sprayer, at the same time recording weather conditions, the products and applica-

tion rates, so Greenstar makes this so easy,” she explains.

“See & Spray Select have been hugely beneficial to our business, making us more environmentally and economically sustainable – something we need to keep building on into the future.”

CUTTING UP THE ROUGH

VÄDERSTAD, THE tillage, drilling and planting manufacturer, has added the CrossCutter Disc Aggressive to extend the range of products the company offers for ultra-shallow tillage.

The CrossCutter Disc was introduced to the market in 2017 to enable intensive ultra-shallow tillage at high working speeds. The new Aggressive variant is said to be particularly useful in heavy land and hard soil conditions.

• The toughest cutterbar on the market.

• SafeCut & SmartCut systems.

• Front, rear or trailed options - with or without conditioner.

NEW - VENDRO TEDDERS

Working width from 4.6m to 11m

• Rotor construction is of the highest strength and rigidity to allow optimised tine function.

• New Optiturn 3D tines to spread the swath perfectly.

SWADRO TC RAKES

Working width from 6.4m to 9.3m

• Low maintenance, nimble & designed for heavy silage conditions.

• DuraMax Cam Track ensures superior shaped windrows.

The Aggressive differs from the ordinary CrossCutter Disc by featuring sharpened TrueCut cut outs, providing higher penetration capability in challenging field conditions. A further benefit of the new machine is that it will act more aggressively in heavy residues – such as silage maize, heavy oilseed rape stalks or sunflower stubble – helping to speed up the decomposition.

Concept developer, Magnus Samuelsson at Väderstad, says even though there is a more aggressive shape than the original machine, it still operates at ultra-shallow working depths of 2-5 cm.

“It will move substantially less soil than a conventional disc,” he explains. “This results in less fuel being used while maintaining a high working speed and still providing an intensive mixing.”

The CrossCutter Disc Aggressive is available in two sizes – the 450mm diameter units are intended for a working depth of 2-3 cm. Meanwhile, the Carrier range of disc cultivators are 510mm diameter units made for a working depth of 3-5 cm with Carrier XL.

Both units can be operated at working speeds of up to 20km/h.

Like the original CrossCutter Disc, the Aggressive can be fitted to the Carrier disc cultivator, with each unit individually mounted to its own rubber suspended disc arm to deliver ground contouring that ensures very even results.

The new CrossCutter Disc Aggressive machines are available for order now.

The CrossCutter Disc Aggressive variant is said to be particularly useful in heavy land and hard soil conditions.

Jake and Felicity Hamilton say investing in a John Deere 616R self-propelled sprayer has been ‘hugely beneficial’ to their dryland cropping business.

Produce exceptional results with the Krone machinery range. Invest in longevity and quality. Invest in the best.

A real NZ safety story

and capable of withstanding the rigours of daily farm use.

BACK IN 1990, Malcolm Gray was an importer and distributor of conventional motorcycle helmets.

Already aware of the increasing popularity of ATVs, Grey was approached by the Honda distributor in New Zealand. The company was keen to encourage the safe use of their machines and the practise of users wearing safety helmets.

At the time, conventional motorcycle helmets were relatively heavy, hot and hard to use while working out on the farm. Grey’s company set out to develop a helmet that was lighter, cooler and offered greater visibility. Importantly, they wanted to develop a helmet that was more comfortable

The introduction of the AgHat led to a marked uptake in use on ATVs. So much so, that the AgHat Max is still with us nearly 35 years later and still offering unrivalled protection that meets and exceeds the NZS 8600(2002) and AS NZ1801 safety standards.

Besides ATV use, the AgHat Max is also suitable for use in the forestry, arboriculture and construction sectors.

Manufactured and assembled in NZ, the heart of the helmet is the critical inner safety cell, made from black imported Styropor from Ohio in the United States. In turn, this is mated with the Polylac/ ABS outer shell that is available in a range of

popular covers. The outer shell is subjected to rigorous UV testing to ensure it remains stable for many years of farm use –

that may include sitting in the back of a ute or on a workshop windowsill.

Bringing the two key components together, a

robust webbing system surrounds the inner shell, before both assemblies are bonded with a hot glue process and oven

curing. A wide range of adjustment, from 53 to 64cm, means the helmet is suitable for all users. At the same time, it allows users to wear their favourite beanie or peaked baseball hat should they desire.

Internally, the helmet incorporates a cleanable liner that stops bugs or parasites, while also absorbing sweat.

Additionally, removable pads allow more comfort during summer or winter wear and are also suitable for use with ear defenders, optional forestry shields and overbrims for sun protection.

The multi-fit AgHat weighs in at only 635 grams, compared to other helmets that might tip the scales at more than 1kg.

Very much a Kiwi product, manufactur-

ing sees the inner cell moulded in Onehunga, the outer shell built in Avondale, with the inner pads made in Morningside, Auckland. These are brought together with the webbing and assembled under the guidance of production manager Kenneth Garcia in Albany, Auckland. They are manufactured and distributed by Forbes and Davies. The company says attention to detail is a key point in the quality of the AgHat, using only the best components.

The helmets are also independently tested, which takes place at Holmes Solutions Testing facility in Christchurch. They are regularly audited by the wellknown SAI Global testing and assurance company.

Besides ATV use, the AgHat Max is also suitable for use in the forestry, arboriculture and construction sectors.

Signs of life in Aussie farm machinery market

times when looked at in snapshot, but not unexpected,” she said.

SNIPPETS

JCB hydrogen power

LORD BAMFORD of manufacturer JCB, after listening to customers and ultimately delivering a solution that will roll out towards the end of the year, wants to promote the benefits of the company’s hydrogen combustion engines. This is despite the murmurings of the anti-ICE and ‘must be electric brigade’ that seems focussed on his age and support of Brexit.

FOLLOWING A couple of bumper sales years when the rolling yearto-date figure for 2022 hit about 16,250 tractors, it looks like things are changing in the Australian farm machinery landscape.

At the recent 2023 Tractor and Machinery Association of Australia annual conference, Melinda Haley from data analysts Kynetec shared her thoughts on the current challenges being encountered by the tractor, combine and baler industry.

With figures to the end of June 2023 falling by around 16%, Haley suggested that the largest factor is still supply chain issues, with shipping quarantine queues being the most prominent.

“Coming off a strong 2022 sales year, we correctly predicted a slowdown in tractor sales into 2023,” she explained.

“It was well known that the record sales that

were driven by the perfect storm of positive climate, commodity prices and the boosted instant tax write off scheme were not sustainable over the longer term.”

Haley added that the sector was now

facing some head winds – namely higher land prices, average commodity prices and lower crop yields; coupled with high agricultural lending, increasing interest rates and the end of the increased instant asset

write off scheme.

“Land prices in the central wheat belt are up between 165-168% in the last five years, interest rates have increased while grain prices have settled to 2020 levels. Certainly, these are challenging

Year to date (YTD), sales of new tractors in the up to 60hp and over 60hp categories are down by 15% and 17% respectively after the busy previous selling period. Baler sales were down 32% on the rolling 12 months, while combines bucked the trend, up by an impressive 78% YTD –with sales increases seen in all states other than NSW. Haley also provided an overview of the Australian farm machinery distribution network, noting that single business outlets had dropped 5%, from 269 to 256. Meanwhile, group business outlets climbed 4% from 394 to 408 – with the total number of outlets remaining static.

“Australian farmers are also experiencing slightly drier conditions than this time last year, with approximately 65% in average conditions or better, however a dry finish is expected,” she concluded.

“Our machines in places like India are running on average for 5000 hours a year,” Bamford explains. “Given there’s only around 8500 hours in a year, these are working for more than half of the time available.

This means they cannot be sitting idle waiting for batteries to be recharged.”

He adds that even if customers could be convinced to buy an electrically-powered JCB excavator that will only work for 16 hours a day – allowing 8 hours recharging time – they would need to buy very expensive, heavy battery packs for a machine that currently costs £120,000 and weighs 20 tonnes. “It just isn’t practical,” Bamford says.

Landpower expands

LANDPOWER HAS commissioned a new complex to be built at Yaldhurst on the north-west fringe of Christchurch.

Located on SH73, the three-hectare site will become a Claas Harvest sales, parts and service centre. It will also operate as the parts, training and demonstration hub for eight other dealerships in the South Island.

These include Claas Harvest Centres in Ashburton, Templeton, Timaru, Waipara and Westland, recently acquired from the Carrfields Group. The complex will include a 420 square metre glass-fronted showroom, 885 square metre administration and training area and a 2584 square metre parts warehouse.

A 1716 square metre workshop with eight service bays and canopy spans the northern face. Outside, the hard stand, washdown, soak-pit, parking and demonstration areas are framed by extensive tree and shrub planting and landscaping.

MARK DANIEL markd@ruralnews.co.nz

Melinda Haley from data analysts Kynetec.

Nelson Bays & Marlborough

Oct 22, 2023

back to Auckland.

BACK UP.

GOOD CALL.

At FMG, we know that more than 20% of our milk spoilage claims are as a result of power loss. It’s this kind of specialised rural knowledge that allows us to pass on valuable advice to farmers to help manage risks. Like making sure you always have a back-up generator on a dairy farm. At the end of the day, if we can help you avoid loss, it reduces stress, lost production and downtime. So why not get in touch with FMG to see how we can help you make some good calls on your farm. Call us on 0800 366 466, or go to fmg.co.nz

We’re here for the good of the country.