Developments

Tractor and equipment sales continue to grow

The first half of 2021 has got off to a superb start for sales of farm equipment. Tractor and Machinery Association of New Zealand (TAMA) president Kyle Baxter said there had been substantial sales increases across all tractor horsepower segments and equipment compared with the same time last year. Mr Baxter said the big increases reflected a continuing catch up in on-farm vehicle investment as farmers looked again to the future. “It’s fantastic to see the confidence continue across all of the sectors, and in turn this confidence flowing into wider economy. “This significant increase isn’t an accidental one, nor a blip, it requires sustained customer and supplier confidence over a 12-month period in that the required product is ordered and arrives into the country to meet current demand.” The overall increase in actual units delivered across New Zealand was 35%. This represents an additional 450 tractor sales compared to the same period of 2020. Sales in the under lifestyle 50hp sector increased over 40% while sales numbers in the 60-80HP segment, which are predominately delivered into the horticulture sector, increased around 50%. “Not to be left out of the rising market, sales in 100-140HP segment are up more than 30%. Tractor deliveries into the larger end of the market, focused on 180-250HP cropping and contracting tractors, increased by more than 50%.” Whilst the market remained strong and looked set to remain so for the rest of 2021, there were several challenges impacting the market, Mr Baxter said. “We are hearing from our members that ongoing production stoppages in global factories due to Covid lockdowns and community outbreaks continue to affect manufacturing timeframes. Europe continues to be a rapidly changing space by the day, as one country announces a ‘return to normal’ date, another country announces new control measures to help stem the spread of the virus.” Global logistics dominated many of the discussions TAMA members were having with their suppliers and customers. With no relief in the short to medium term horizon, the increased shipping times looked set to continue well into 2022. “Almost every point of the logistics supply chain is affected. Delays of an extra 90 days in receiving a container load of equipment from Europe are not uncommon. Reduced air cargo space, due to fewer flights globally, is also adding to the cost of air freighting spare parts and causing delays in getting urgent spare parts into the country. “The cost of shipping a container here has increased drastically. This, coupled with importers of agricultural equipment generally only able to ship one to four machines per container due to their size, is driving up the freight cost of each item shipped.” Mr Baxter said while strong commodity pricing was fantastic for the New Zealand agriculture industry in terms of the export value of […]

DairyNZ supports next generation Overseer for farms and environment

Industry good organisation DairyNZ endorses further redevelopment of Overseer to continue its role helping optimise farm systems to protect water quality, farm viability and economy. DairyNZ strategy and investment leader Dr David Burger says science-based management and modelling reviews, such as the recent Government report into Overseer, helps improve nutrient management for the environment and farm businesses. “Overseer is vital in helping farmers, the sector and councils understand farm management, particularly nutrient and greenhouse gas losses to the environment. Therefore, we must have a high level of confidence in it as a tool,” says DairyNZ strategy and investment leader Dr David Burger. “It’s pleasing Government is committed to supporting Overseer and a re-development, while looking at other tools to improve nutrient management and on-farm outcomes.” Dr Burger said DairyNZ research shows nitrate leaching measurements from farm system experiments are generally well-aligned with Overseer predictions where actual climate data has been used on dairy land. “Along with this on-farm science, DairyNZ has contributed to improvements to the Overseer model, such as including plantain and updating the wetland and riparian modules. Our research and experience with farmers tells us Overseer is an important tool for helping dairy farmers manage nitrogen and reduce losses from farms. “Falling back on input controls or reliance on risk factors is not an adequate substitute for output modelling, especially when we have an increasingly sophisticated range of nitrogen management options that Overseer enables farmers to model,” says Dr Burger. “Farm systems are complex and there are a range of ways farmers can reduce their footprint. Overseer allows farmers to model different options in the context of their farm system – enabling innovation and flexibility. “Looking ahead, we support the Government’s commitment to examine a wider range of tools to support nutrient and sediment management at farm and […]

Dairy farmers celebrated on Farm Worker Appreciation Day

Today is Farm Worker Appreciation Day (August 6), where Kiwis are encouraged to pay tribute to the dedicated workers on our farms. DairyNZ general manager responsible dairy Jenny Cameron says Farm Worker Appreciation Day provides the opportunity to celebrate the success, dedication, and contribution of our farmers. “Our farmers undertake a lot of work on farms throughout the country, every day of the year. It’s not an easy job, but it’s an incredibly important and rewarding role our dairy farmers play for New Zealand – caring for animals and the environment, while providing around 140 countries with highly nutritious food,” says Ms Cameron. “This year they have also been faced with many challenges, including natural disasters, and a workforce shortage worsened due to COVID-19 border restrictions, while many of our international employees on farm continue to be separated from their families.” The on-farm success of our farmers results in around $20 billion in export value, while employing around 50,000 people on and off farm. Dairy farmers nationwide have also fenced waterways, 100 percent of stock crossing points have bridges and culverts, while thousands of farmers are carrying out extensive planting alongside waterways. “While our farmers are lucky to have a unique lifestyle and are supported by great communities, they also work in remote locations, with early starts, through all conditions to look after their animals, their people, and their land,” says Ms Cameron. “Their hard work and commitment provides us with safe, high quality, environmentally efficient products, while contributing to New Zealand’s local communities, and regional and national economies. “So, today, I encourage us all to thank the farmers that work on our farms. Let’s celebrate the work that they do every day of every year, especially during the extra challenges presented in the past 18 months.” Dairy sector statistics: […]

Lincoln gene lab trio recognised with Primary Industries award

The work of three members of Lincoln University’s Gene-Marker Laboratory to help breed healthier and more resilient, and ultimately superior livestock, has been recognised in this year’s Primary Industries Awards. Lab director, Professor Jon Hickford, principal researcher, Dr Huitong Zhou, and lab manager, Freeman Fang, were given the Science and Research Award at the ceremony on 6 July. The judges said they were impressed with the holistic approach of the Lincoln University team who brought a highly professional genetic approach to the business of farming. “Their genetic program was impressive as was their relationship with farmers. This guaranteed a practical result from a highly specialised scientific process.” The lab’s main research focus is genetic variation in ruminants, particularly in sheep but also cows, and its association with economically important traits. It has developed test for genes which underpin milk, meat and wool production, and make livestock resilient to disease and environmental challenges, identifying superior animals. It tests for diseases such as foot rot, environmental resilience traits such as cold tolerance as well as improved intra-muscular fat content in meat, and for A1 and A2 milk in dairy cattle. Professor Hickford has worked at Lincoln University since 1989, teaching science and agriculture degree programmes, and has delivered 11 commercial gene-marker tests to market. “With these technologies, we have instituted programmes for the eradication of dermatosparaxis in white Dorper sheep in Australia and NZ, for the eradication of Microphthalmia in Texel sheep in Australia and NZ, and for the eradication of Gaucher disease in Australian Southdown sheep,” he said. “I share my research findings about wool, genetics, and breeding with farming groups and sheep and cattle breeders in NZ and Australia and am committed to making my research accessible to the younger generation.” Lincoln University alumna Emma Boase, who holds a Bachelor […]

Visa extension gives dairy farmers some certainty

DairyNZ says the Government decision to extend Essential Skills visas provides some welcome certainty for farmers and employees who have their futures at stake. Many workers and their employers have been living under a cloud of uncertainty since COVID-19 border closures, and today’s announcement should provide some relief to some of those affected. DairyNZ chief executive Dr Tim Mackle said the changes are a positive as they will help resolve short-term pressure on some farms. “It’s great to see the Government is listening and recognises the pressures dairy farmers and other sectors are under,” said Dr Mackle. “However, it’s important to note this decision doesn’t add more workers into our workforce, so there’s still a gap between what we have and what we actually need. It’s about helping us hold onto the valuable migrant workers we already have.” Since the closure of the border due to COVID-19, farmers have been crying out for dairy farm staff, with almost 50 percent of farmers reporting unfilled vacancies on farms. “There are plenty of jobs on farms for Kiwis and migrants but at this time the reality is, not enough Kiwis are applying for jobs. This is despite a recent survey showing 87 percent of farmers had made changes to make their business more attractive to staff, so we need our valued workers from overseas as well.” From 19 July, Essential Skills Visa holders will be able to apply for a longer visa, enabling them to remain in their current role. The application process for Essential Skills visas will also be simplified for workers remaining in current roles. Dr Mackle said while that’s a positive step, more needs to be done to ensure sufficient staffing on farms throughout the country for the wellbeing of staff and farmers, and animal welfare. “This is where […]

Farmer feedback set to shape revised capital structure proposal

With the first phase of Fonterra’s capital structure consultation now complete, the Co-op is drawing up a revised proposal that aims to reflect farmers’ views. A number of changes are being considered to the preferred option initially put forward in the Consultation Booklet in May – including adjusting the proposed minimum shareholding requirement for farmers and enabling sharemilkers and contract milkers to own shares. “It’s a good time for the Board to step back and reflect on the feedback as most farmers will now be busy with calving. Once they’ve come through this particularly busy time of the season, we’ll be ready to consult on the updated proposal,” says Chairman Peter McBride. Consultation has been extensive to date, starting with the initial communication on 6 May and the Consultation Booklet being sent to every farmer owner. Since then: Directors have held 90 farmer meetings, attended events such as the My Connect conference and Field Days as well as leading 7 online webinars and speaking with many farmers directly. Over 5,000 farmers have directly engaged through feedback channels, in addition to discussing the options with each other. Members of Fonterra’s Board and management have also been talking with other groups such as the Co-operative Council (formerly the Shareholders’ Council), the Fonterra Shareholders’ Fund, the Government, major banks and rural professionals. This engagement will continue as the consultation progresses. “We would like to thank our farmer owners for getting involved and approaching the consultation with open minds,” says McBride. “We also want to acknowledge the uncertainty that comes along with us considering changes to our capital structure and the significant challenges that it’s creating for some farmers. The best way to give certainty is to ensure we have a full discussion as a Co-op and get to a quality outcome. “The Board maintains its belief that, in a flat or potentially declining milk environment, making changes early will put us in the best position to provide farmers with more flexibility while protecting farmer ownership and strengthening our Co-op’s financial sustainability.” Summary of farmer feedback Many farmers said that additional information on the Co-op’s business strategy and future performance would help them form a clearer view on capital structure. “In August and September, we will provide further information on our long-term strategy including the types of activities we will invest in, the returns we are […]

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Lincoln alumnus banks Young Farmer title

Banker, and Lincoln commerce graduate, Jake Jarman’s win in the recent FMG Young Farmer of the Year contest highlights the diversity of the agriculture sector. He was competing against, among others, a solutions and development specialist, a farms systems scientist, technical specialist, and regional sales manager. Only two of the competitors were on the pasture side of the farm gate, working in dairy farming. The 2019 winner (no winner in 2020 due to Covid-19) was in a business graduate programme, while a vet was also in the final. Jake is an ANZ Relationship Associate and comes from a fifth-generation family dairy farm, though two of his fellow finalists were from urban backgrounds. “I opted to go down the commerce route for my studies because it’s always been something I’ve found interesting,” he said. He has not strayed too far from his roots in his job though, as he helps customers to start, grow and maintain their rural businesses, and his degree helped in his career and in the competition. “The Bachelor of Commerce (Agriculture) course at Lincoln was great in that it allowed me to learn about a wide range of the agricultural industry,” he said. The compulsory practical work farm placements component meant he also learnt crucial practical skills during his summer breaks. He said the programme also included a whole year looking at one business and having to analyse their financial and physical performance, but then also be innovative in coming up with an investment idea. Field trips to the Lower North Island, Waikato, and Southland were highlights. “I thoroughly enjoyed them because we were immersed in the ag industry for a week, and I was able to learn about farming in all the different regions of NZ.” Jake said the reaction at work to his win had […]

New agricultural sciences facility for Lincoln University

Lincoln University has opened the first of two new science buildings, marking a significant milestone along a journey that began more than 10 years ago, following the 2010/2011 Canterbury earthquakes. The Minister of Research, Science and Innovation Hon Dr Megan Woods performed the formalities, cutting the ceremonial ribbon to officially open the building that will be home to over 50 staff and postgraduate students from Lincoln University’s Department of Agricultural Sciences, responsible for teaching and research in the animal sciences. During the opening ceremony, Lincoln also acknowledged its elevated profile as a world-ranked land-based university, underpinned by its substantial growth in domestic student numbers and its expanding influence within New Zealand’s increasingly important food and fibre sector. Acting Vice-Chancellor Professor Bruce McKenzie said the new science facility will strengthen Lincoln’s commitment to help drive New Zealand’s transition to a more productive, low-emissions economy. “Lincoln University has always been a chief driver of innovation in agriculture, particularly in the food and fibre sectors, and our new facilities will position us to take an even more prominent role in developing solutions for the most pressing challenges facing the land-based industries. “Our university has been producing primary sector graduates for more than 140 years, and we remain dedicated to attracting and inspiring future generations of tauira; equipping them with the knowledge and skills needed to grow a better future. “It’s appropriate and timely that we deliver a new cutting-edge science facility as a base where our people, including our world-leading researchers, can continue their critical contribution to shaping more prosperous and sustainable communities.” Among the new building’s state-of-the-art facilities is a purpose-built gene marker laboratory where Professor Jon Hickford leads a team specialising in the molecular genetics of ruminants, working to identify genetically superior animals. Professor Hickford’s team is internationally recognised, and recently […]

Construction technology on show at Fieldays

Over the course of Fieldays 2021 some of the latest innovations in next generation construction technology was on show. Synergy had plenty of product demos to elevate awareness around these new and exciting solutions in New Zealand. The positive atmosphere around the live demonstrations was encouraging, and showed that Kiwis are curious to learn more about the latest technology that can maximise efficiency in construction and agriculture. Topcon’s X-53x with the LN-150 Robotic Total Station The latest generation X-53x excavator system on display connected to the Yanmar SV100, and focused on demonstrating the capabilities of the new LN-150 self-levelling robotic total station by Topcon. The beauty of the LN-150 is that it doesn’t rely on satellite tracking or base stations. Instead, it uses optical angles and distancing to measure the prism on top of the cab of the excavator, in combination with IMU sensors within the excavator system, which gives the machine it’s heading and position down to the bucket. This opens up the possibilities in regard to the location of your site, where access to satellites and sky view might be obstructed – working under a building, or a thick bush canopy, for instance. And there was Topcon’s additional pre-release of the slew sensor, which allows you to slew an offset boom excavator more accurately, giving the bucket position left and right. This development has been highly anticipated by the market. On that note, Synergy says a huge thank you to their friends at TransDiesel who supplied them with both the Yanmar excavator, and the Volvo 145 to show off the Steelwrist Tiltrotator. The interactive displays wouldn’t be possible without their help. The Steelwrist Tiltrotator Another show-stopper Synergy had on display was the Steelwrist Tiltrotator. With this amazing piece of technology, they could show the audience some of the latest […]

Fonterra agrees sale of China JV farms

Fonterra has agreed the sale of its two joint venture farms in China, with the sale expected to be completed on 30 June. The farms in Shandong province will be sold to Singapore-based AustAsia Investment Holdings for USD 115.5 million. Fonterra, which owns the farms with a joint venture partner, has a 51% stake in the business and will receive NZD 88 million* in total asset sale proceeds, which includes cash on completion. The sale of the JV farms is unconditional and requires no further regulatory approvals. Fonterra CEO Miles Hurrell says the sale is another important milestone for the Co-operative and aligns to its strategy of prioritising New Zealand milk. “The sale of the JV farms allows us to focus even more on our farmer owners’ milk and follows the sale of our two wholly owned China farming hubs earlier this year. “Greater China continues to be one of our most important strategic markets. We remain committed to our China business, bringing the goodness of New Zealand milk to Chinese customers in innovative ways and partnering with local Chinese companies to do so. We are well placed to continue to grow our business in Greater China,” says Mr Hurrell. Fonterra sold its two wholly owned China farming hubs in Shanxi and Hebei provinces to Inner Mongolia Youran Dairy in April for NZD 552 million. * Based on an USD to NZD conversion rate of 0.714 ENDS

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