Category: Radio New Zealand

Source: Radio New Zealand

The Department of Conservation (DOC) is on the lookout for one of the world’s most endangered wetland birds, and asking local farmers and landowners to help.

The native kakī or black stilt birds mostly call Mackenzie Basin’s braided rivers and wetlands home, but conservation staff expected they could be on the move following the recent storms that affected South Island riverbeds.

Spring marked mating season for the endemic bird considered “nationally critical”, a DOC classification for birds considered the most severely threatened and facing an immediate high risk of extinction. It was a taonga species for Māori.

Kakī were vulnerable to habitat loss, changing or unseasonal weather and predators.

DOC asked farmers and the public to report any sightings of the black bird with notable red legs, that may be on the hunt for a new riverside home.

Recovery programme lead, Claudia Mischler said they were mostly found around the Mackenzie Basin, but had been spotted in South Canterbury’s Waimate and as far north as Marlborough.

“There’s a lot of time and energy that goes into trying to save this species,” she said.

“We’re only at about 150 adults in the wild at the moment, so there’s actually fewer kakī out there than there is kākāpō and Kiwi, so they are incredibly rare.”

Conservation staff would seek out kakī nests as part of the recovery programme, then take the eggs into captivity where they were incubated, hatched and later released from captive breeding aviaries, in efforts to protect the young against common predators, stoats, ferrets and hedgehogs.

Mischler said historically the birds had been forced onto farmland when rivers had flooded, as they always sought still water where they could find insects to eat.

“Anywhere there’s water that might last for a while is fair game, that includes just muddy, freshly ploughed paddocks or just paddocks with short grass.

“Basically you’re just looking for a very beautiful, totally black bird with a long bill and red pinky, long legs loitering around the edge of the water.”

She said finding them was not always easy.

“Sometimes it just feels like looking for a needle in a haystack when we’re out there trying to find these pairs in these nest, so the more eyes on the ground we have out there the more useful it is for us… they’re pretty special.”

Mackenzie locals were encouraged to keep an eye out for any leg tags on the birds, but any sightings would be welcome at twizel@doc.govt.nz.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

The head of Fonterra says it has been difficult for its brands to compete in global markets after shareholders voted in support of the the sale of its major brands, including Mainland and Anchor, to French dairy giant Lactalis.

More than 88 percent of the votes cast at a special meeting backed the $4.2 billion sale to French dairy giant Lactalis.

The deal includes multi year contracts for Fonterra to supply Lactalis raw ingredients.

It is estimated farmer shareholders will get an average tax free payout of about $392,000.

New Zealand First leader Winston Peters’ has strongly criticised the decision and threatened more regulation for Fonterra.

The sale to Lactalis is the final step in Fonterra’s transition to a slimmed-down New Zealand-based supplier of raw ingredients and high-value products to other manufacturers.

Fonterra CEO Miles Hurrell told Morning Report they were up against multinationals in large countries that have greater populations and can get products out to markets quicker.

“We are sub-scale down here in the south Pacific and as a result [of] our small population, you’re always going to be hand-strung by what you can grow at.”

Hurrell said the consumer business is about seven percent of Fonterra’s total milk. He said the sale gives Fonterra the ability to put more of its milk into high-value ingredients.

“When you deal with multinationals that have very deep pockets and a global reach far beyond ours, and at the same time as they’re growing in certain markets, you grow with them,” he said.

“Yes, you’re not talking directly to the consumer on the supermarket shelf, but you are talking to multinationals that have a range of products in a range of categories, far beyond what we ever would have. It gives you better insight, I’d argue, in growing with companies that are growing faster then what we would ever grow at.

“For us, it’s about getting closer to those multinationals.”

Addressing concerns that Lactalis could cut Fonterra out of the deal in 10 years time for cheaper milk, Hurrell said it’s “simply not going to happen”.

“They’re not spending $4 billion on these brands to try and dumb them down, remove the good quality milk that we make in New Zealand and put some inferior pricing. You wouldn’t spend this kind of cash on these brands to do that to it.”

It is estimated the sale proceeds would be worth about $4.5b to the economy, with farmer shareholders receiving an average tax-free payout of about $392,000 if the sale went ahead.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

At 106 metres long and 30 metres wide and with room for up to 120 cows, the Livestock Improvement Corporation’s new methane research barn is the largest facility of its kind in the Southern Hemisphere.

The multi-million dollar build is the latest in several programmes the farmer co-operative is leading to help reduce methane emissions.

Lactating dairy cows emissions could be cut by up to 5% of the government’s reset 2050 biogenic methane target of 14 – 24 percent below 2017 levels as a result of the research, according to estimates.

What is methane and why is it such a challenge for agriculture?

Country Life spoke to LIC’s senior scientist Dr Lorna McNaughton to learn more.

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Methane is produced by bugs in the rumen digesting plant matter. The rumen is the largest of the four-chambered stomach in ruminant animals like cows and sheep.

“Contrary to popular belief most of the methane is in the cows’ breath,” Dr McNaughton explained.

Though it has a shorter life than carbon dioxide, methane is “more potent”.

The greenhouse gas accounts for more than 70 percent of New Zealand’s agriculture emissions and 43 percent of New Zealand’s total greenhouse gas emissions.

Since 2020, Dr McNaughton has been working to see if there is genetic variation in how much methane an animal produces, and if so, how that can be exploited to create “more climate-friendly cattle”.

The work to date has largely focused on methane traits in bulls – all of LIC’s Jersey, Holstein-Friesian and Holstein-Friesian-Jersey-cross bulls get measured.

“There’s usually as much variation within a breed as between breeds.”

The “early stage research” focused on measuring how much methane they emit.

“We have a nifty little machine called the green feed. It’s like a giant fan on wheels and it’s also got a big treat box on top of it.”

Animals put their head in and their EID (Electronic Identification) tag is read – if they haven’t eaten in a while, it will drop feed for them to eat and measure the amount of methane in their breath over a three to five minute period.

Animals are allowed to visit five times a day and the data is then collated and averaged.

“It’s really important we measure the feed intake alongside methane because a lot of the variation in methane is just how much they eat. We want to make sure that by selecting for lower methane we’re not selecting for animals that just don’t eat very much and therefore could have negative impacts on productivity.”

They’ve developed a “daughter population” of 400 heifers from these bulls, and have seen a difference in those from high- versus low-emitting bulls.

Dr McNaughton said they hope to know by late 2026 if they can release a methane breeding value.

“It’s looking very promising at this stage,” she said.

The research is now shifting to see if a low emitting animal is also a highly productive animal and if it impacts fertility.

The new barn will help by allowing the team to measure methane emissions from milking cows.

“Genetics is a big numbers game so we need to start investigating how we can get cow measurements.”

Earlier this month the government announced new, lower methane reduction targets of between 14 to 24 percent below the 2017 levels by 2050 – and dropped plans for a farmer emissions tax.

Dr McNaughton pointed to other tools being developed to help address methane emissions, including different feed types and commercial methane inhibitors.

“If genetics is an option it’s nice for the farmers in that they’re not having to make on-farm management changes. They’re probably going to be enough of them coming down the pipeline for other challenges.”

LIC has also been involved in work around breeding more heat-tolerant cows, after the “slick” mutation was discovered in a Caribbean-based beef breed named Senepol.

It gives cattle a short, sleek hair coat which significantly improves their heat tolerance.

“We know they’re more heat tolerant. On hot days they’re about half a degree to a degree cooler in terms of rumen temperature.”

Dr McNaughton said the challenge was trying to bring in the Senepol’s slick genes without bringing in the beef characteristics.

They hope to have slick genetics available for farmers in 2029.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Alastair Reeves’ father taught him that farmers can use genetics to solve problems.

The Waimai Valley farmer is carrying on the line of Romney sheep his father started breeding in the 1950s.

“They’re still here probably because they are fit for purpose. They suit our environment, they’re hardy, they produce meat, they produce wool and that’s essentially what’s paid the bills over the last six years so that’s a testament to the breeders that have gone before us,” he told Country Life.

But Reeves has also turned his eye to new sheep traits sought after by the modern farmer.

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He and his wife Ann run the 800-hectare farm, finishing bull beef and running a sheep genetics business. Their children are the fourth generation on this bit of whenua, north of Raglan.

“Dad had a huge focus on ezcema tolerance. He was one of the first breeders to start doing that.

“That was just an issue within Waikato and the Upper North Island, that’s just spreading down the country now.

“What we learned with the whole eczema trait is that genetics can actually solve problems.”

Another trait he’s begun breeding for is low methane – a greenhouse gas produced in the rumen, part of the four-chambered stomach of ruminant animals like sheep and cattle.

Reeves said methane emissions are a complex issue facing the sector.

“All I know as a geneticist is I’m here to produce the best genetics for my clients. I want those genetics to make them as profitable as they can receive.”

While methane reduction boluses and vaccines are in development, Reeves sees these as another ongoing expense for farmers.

Genetics is a “green way” of mitigating the impacts of methane, but one that he says takes time.

“If we can reduce the methane and at the same time improve the productivity of our livestock, that would be a really positive thing and so that’s what we’re trying to do.”

In 2020, Waimai Romney became one of the first flocks in New Zealand to methane test its rams, running 192 rams through AgResearch’s Portable Accumulation Chamber (PAC) trailer.

Since then, they’ve cut methane emissions by 3.2 percent while improving productivity.

Over the past 10 years, they’ve also been developing their own breed – the Waimai Charablack. It’s a mix of the French Charolais – which has good marbling and makes “lovely” eating – and the Hampshire, an “old traditional breed”.

They’ve focused on good growth as well as a good “marbled lamb product” equivalent to the “wagyu of lamb”. Alastair said this meant farmers could get premium prices, adding value to the same quantity of lambs.

Reeves said there had been a lot of changes on farm since his father and grandfather’s day.

It had been a tough couple of years for the sector, with farmland being converted to forestry putting pressure on rural communities, especially hill country and sheep farmers.

But there were positive signs too, with wool prices improving and strong global demand for protein, and in spite of the challenges, Reeves still loves what he does.

“It’s a phenomenal product. It’s grass-fed and the world wants it.”

Learn more:

• You can learn more about the farm here.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Technology company Halter has replaced around 30 tall transmission towers vital to its virtual farm fencing systems, after they were knocked down by last week’s storms.

By Labour weekend, there were 70 South Island farms affected by disruptions to the virtual, fence-less systems for livestock, mostly in Canterbury, Southland and Otago.

The system works by cows wearing collars that took information like the animal’s location, temperature and weight, and sent it to nearby transmission towers – that were up to nearly 10 metres tall – so farmers could view and control the “breaks” or boundaries in the paddock from their cell phones.

Director of communications, Colin Espiner said it was working with the three remaining farms still experiencing connectivity issues, after repair crews got to work over the long weekend.

“We had around about 70 farms impacted in total, mostly in the South Island, and of those we probably lost around about 30 towers, just being smashed by the sheer force of the gusts of wind.

“We jumped in a couple of trucks in Auckland and drove all the way down to Southland with replacement gear for the farmers that have been impacted over the long weekend, and helped get them set back up again.”

The storm threw areas Canterbury, then Southland and Clutha into a state of emergency, as thousands lost power, slips cut off roads and highways, and many faced widespread damage from falling trees and buildings.

Was your farm affected? Let us know monique.steele@rnz.co.nz

Espiner confirmed outages did not result in virtual fences dropping out, and said there were multiple “fail safes” for when power and cell networks went down.

“When those things happen, the farms have the option of either just holding in place, so the cows remain within their virtual breaks – or if the farmer wants to move them, he or she can simply switch to manual mode and then he or she can move the cows the old fashioned way.”

He said it had been a “pretty wild spring”, so when there had been recent outages, the systems would switch to battery back-up mode so farming could continue as normal.

“So when the power goes out, the entire Halter system switches to battery mode, and we have battery backup for at least two to three days. So in most cases that can bring the farm through.”

Espiner said the data that was essential to farmers was in most cases automatically backed up for a certain amount of time after the system went down.

“We can hold their data for I think anything less than about 20 hours worth of outage, it doesn’t actually have a major impact.

“I’m pretty happy that we actually managed to get almost all of those farms back up within those 20 hours.”

Espiner said for those who had lost data, it may only be one heat lost, but its algorithms could help catch them up.

“So in most cases, farmers won’t have lost any crucial data from our mating systems.”

He said twelve farms in affected regions were mid-mating on the day of the storm, and 23 were scheduled to start in the next couple of weeks.

“In some parts of the country, it is mating season, and Halter obviously helps farmers know when the cows are going to be in the heat as well, so it’s really important for us to get the data back online for them really quickly because they need that data in order to spot when their accounts are going to be in heat and cycling.

“We really prioritised them because that data is just essential for them in order to make informed decisions about mating.”

More than 1,000 farms nationwide had Halter’s virtual fencing and pasture management systems in place.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

One week since a wind storm tore through the country’s south, some Clutha district farmers say the financial hit could be harsher than they originally feared.

Suzie Roy said after a week without power – trying to hold her stock in with kilometres of boundary fencing flattened by falling trees – she had learnt her insurance would only cover building damage.

“How we how we move forward, with 200 kilometres of fencing that needs doing, and 75 percent of our trees on 1600 acres down?” she said.

“It’s quite daunting looking at it at the moment when the damage is just fresh and it’s going to take months, well, years, to get everything done.”

Others were facing a similar hit.

Michaela and Phil Swanson said their farm, which had been “smashed”, would also need extensive – and unfunded – fence repairs.

“Unless you’ve got specific fencing insurance, they [the insurers] are not going to help. I mean, how many farmers know that you’ve got to do that?” Michaela Swanson said.

At community meetings, authorities stressed there was assistance available, including hardship grants from MSD and the Rural Women New Zealand adverse events fund.

Insurers urged farmers to take photos of the damage and lodge their claims as soon as possible.

Phil Swanson said the government needed to stump up more.

“We spend millions of dollars on catastrophes overseas. And there’s what, $150,000 in a mayoral relief fund. Which goes into what? Bureaucrats’ pockets? Cups of tea and biscuits? Where’s the help for our people, our nation?” he said.

This week, logging crews had been out in force across the Clutha district and were asking residents not to attempt to clear trees themselves.

Graham Hunter said he was concerned there were not enough people to get through the enormous workload, and believed the government should consider sending in extra crews.

At the current rate, he said, he was worried the trees he had grown for 30 years would rot where they lay before contractors could reach them.

He estimated they would take a month to clear.

“And that’s just on our place. How many people here [at this meeting]? Probably 200… so that’s the depth of it. Just so much work. It’s hard to see how it’s going to happen.”

Hunter said one week on from the storm, the adrenaline had worn off and he was beginning to face the fallout.

“It happened on Thursday, and Friday was horrible. Saturday was just a bit numb, totally numb. Every day that passes you make a wee bit of progress. Reality has sunk in now.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Retailers in rural New Zealand could be set for a boost if farmers vote on Thursday to go ahead with the sale of Fonterra’s consumer businesses to France’s Lactalis.

ASB economists earlier said the deal was expected to deliver a tax-free capital return of about $3.2 billion to 8000 shareholding farms throughout New Zealand.

“The average return (to shareholders) would be around $392,000 if the sale goes ahead, and we estimate around 60 percent of shareholding farms could receive at least $200,000,” ASB chief economist Nick Tuffley said.

But what will they do with it?

Mike Jones, chief economist at BNZ, said the extra cash flow for farmers would give them options.

“I think we will see a mix of retiring debt, addressing deferred maintenance, probably having a good look at expansion, whether it’s extra land or herd size… and probably a bit of a smattering of discretionary spending in there as well. But overall I think it’s probably going to depend on the age and stage of the participants receiving the money.”

He said farmers were likely to be prudent. “It’s not going to all go on gold-plated utes and tractors.”

But he said, in combination with strong conditions in the primary export sector generally, it was likely to be a boost.

“We’re just starting to see some evidence of a little bit of extra spending and investment. If you look at things like farm sales, tractors, fertiliser imports, rural building consents, all of those areas are starting to show a little bit of growth just in the last two or three months, that wasn’t there before. You wouldn’t say things are roaring away by any means, but there’s definitely some growth that’s coming through. And I think kind of that in collaboration with lower interest rates doing their work as they do throughout the economy is certainly going to help us.”

He said a lot of the money was likely to stay in the regions.

Economist Cameron Bagrie said he expected more spending than debt repayment.

“If you look at the $3.2 billion, it’s going to get ploughed into the economy in some shape or form. That’s about 0.7 percent of GDP. So, if you’re talking about a sizable injection that’s going to hit rural New Zealand, then that will proliferate through to the city centres as well.”

He said tractor sales were already up 13 percent on a year earlier, and that sort of import activity helped boost port cities.

There were many factors working for farmers, he said, such as the lower New Zealand dollar, higher commodity prices and higher payout.

“It looks like the icing on the cake will be subject to approval, this $3.2 billion, which is going to get redeployed into farmers.”

He said there was more optimism in rural New Zealand than in other parts of the country. “Auckland in particular is really struggling.”

But Infometrics chief forecaster Gareth Kiernan said farmers were notoriously conservative about spending so it was likely many would prioritise debt repayment.

“It’s a capital payment effectively rather than an income payment, I’d expect them to probably be cognisant of that and any spending they do undertake is probably going to be more in that sort of capital area rather than rushing off down to the shops to buy a new lounge suite.”

But he said it would help lift activity. “Give it 12 months, 18 months, I think it does help add a bit of momentum to those provincial economies because some of that capex will flow through into more economic activity. But you’re pretty muted in the first instance and I think it will be selective spending.”

Kiernan said the provincial economy should help to improve New Zealand’s overall economic outlook into next year.

“We have been watching the trends in dairy prices and to a lesser extent, horticulture prices over the last probably four months now or so, and they just have been softening a bit. They’re still at good levels but there’s a little bit of caution around that.

“But the fact they’re still high does suggest to us that there will still be money flowing through the provinces.”

Corelogic chief property economist Kelvin Davidson said it was hard to say whether it would mean a boost for activity in the property market, such as in demand for holiday homes in areas adjacent to farming regions.

“I think some farmers are likely to buy property, but others will no doubt pay down some debt, or buy plant and equipment.

“I know anecdotally that farmers in Southland for example have currently got much bigger fish to fry in terms of ensuring consistent milk production without power, and any extra cash they might have may well go to storm clean-up.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

• Fonterra shareholders asked to approve $4.22b sale of consumer brands business Mainland Group
• France’s Lactalis to take ownership of well-known brands Mainland, Anchor
• Farmer shareholders in line for tax-free bonus, pump billions into economy
• Fonterra has multi-year contracts to supply Lactalis
• NZ First leader Winston Peters strongly critical of sale
• Meeting 10.30 AM, 30 October, result expected early afternoon

Fonterra’s farmer shareholders look set to approve the sale of the co-operative’s Mainland Group’s consumer brands business, giving themselves and ultimately the economy a multi-billion dollar payday.

The $4.22 billion sale to the world’s biggest dairy group, French-based Lactalis, was the final step in Fonterra’s transition from would-be global dairy giant in multiple markets, to a slimmed-down New Zealand-based supplier of raw ingredients and high-value products to other manufacturers.

The company pondered a share float of Mainland, but opted instead for what was likely to be a more lucrative trade sale to Lactalis.

Fonterra chair Peter Mcbride had no doubts about the sale.

“The Fonterra board is confident a sale to Lactalis is the highest value option for the Co-op, including over the long-term … [this] gives the board the confidence to unanimously recommend this divestment to shareholders for approval.”

Yes vote for a big pay day

ASB Bank estimated the sale proceeds would ultimately be worth about $4.5b to the economy, with farmer shareholders receiving an average tax-free payout of about $392,000 if the sale went ahead.

Forsyth Barr senior analyst Matt Montgomerie said there was strong support for the deal from shareholders, despite initial apprehension.

“I’ve been around the regions recently doing various presentations, and I think the feel we get is that the vote should pass, and should pass somewhat comfortably,” he said.

The chair of supplier organisation Fonterra’s Dairy Farmers Co-op, John Stevenson, said there had been many robust and emotional discussions about the future direction of Fonterra.

Stevenson said just one of 27 dairy farmers on the co-op’s council voted against selling off Mainland Group.

Among the concerns was a lack of detail about the long-term supply agreements with Lactalis, as well as an emotional appeal about the loss of famous New Zealand brands, including Mainland, Anchor, Kāpiti, and Fernleaf.

“Some of those (consumer) products are good brands because of the New Zealand grass-fed branding around the product,” Montgomerie said.

Because Fonterra produced a significant volume of milk, he said it would be hard for Lactalis to get supply elsewhere, while the broad agreement was along the lines of other large supply agreements.

Increases exposure to global demand

Those opposed to the sale were also concerned Fonterra would be more exposed to the ups and downs of global demand for ingredients.

“It does mean that they don’t have any significant levers to pull in the event of unforeseen circumstances, which in turn, I think means the board will take a more conservative approach to managing capital going forward,” Montgomerie said.

However, he said the potential growth in Fonterra’s Food Services and Ingredients business, particularly in Asia, could offset missed opportunities associated with the forecast future growth in the consumer business.

Fonterra had been allocating more milk away from the commoditised products offered on the global dairy trade, to earn higher returns on products, such as protein concentrates.

The backstory

Fonterra’s plan to sell Mainland followed a strategic review, led by chief executive Miles Hurrell, who was hired to turn the business around following a number of loss-making years.

Saddled with debt, underperforming overseas businesses, and volatile commodity markets, Hurrell oversaw the sale of foreign assets to bring down debt.

The result was the end of costly adventures in Brazil, Chile, China and elsewhere, as well cost-cutting and the sale of non-core assets, such as ice cream maker Tip Top.

Fonterra decided a simplified, stripped-down business was the best option for New Zealand’s dairy products.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand