Hill country farmers are changing their attitudes to their erosion-prone country, says Agriculture and Forestry Minister David Carter. He was flown in a helicopter by Horizons Regional Council to check out flood protection in the lowland area and hill country. Mr Carter went to stopbanks on the lower Manawatu, Moutoa floodgates, Kopane Bridge and Pohangina and Turakina Valley hill country.

He said two hill country farmers he spoke to said there seemed to be a greater awareness of the erosion problem coming from the hills reports The Manawatu Standard. The sustainable land use initiative (SLUI) programme was developed around voluntary whole-farm plans which assess the farms’ physical, environmental and business resources in a structured way. They are funded by Horizons in partnership with the Government on a dollar-for-dollar deal, through MAF’s hill country erosion fund.

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A Manawatu dairy farmer believes he is the only farmer in NZ leaving heifer calves on cows reports The Manawatu Standard. Jeff Williams and his wife Janice have a farm on No1 Line, near Longburn. They recently hosted a field day looking at the biological farming system they use. Mr Williams said biological agriculture works on organic principles but uses modern science and technology as well. It aims to have healthy soil, which is the basis from which all plants grow, and provide for the wellbeing and sustenance for the cows.

About 50 people attended the field day, including dairy farmers, biological agriculture staff and Massey University staff. Mr Williams said he and his wife have 400 cows, of which half calve in spring and half in autumn. This autumn is the first season the Williams’ have kept their replacement heifers, and a few calves being raised for beef, on their mothers.

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Mr Kemp, who uses about 200 bales of silage a year on his 115-hectare farm, has been recyling wrap for about three years, and is surprised that more farmers don’t do it reports the Taranaki Daily.”I thought more farmers would have taken it up. It’s such a hassle to get rid of it. .” He said he recycled the wrap because it meant he no longer had to deal with the mess it made, and because it saved him time. ”The greenies mightn’t like it, but 80 per cent of the reason is the mess.”

Before buying his Agpac bin, he used to throw the wrap in a heap, hoping it wouldn’t blow away. When he went to clean it up six months later, the stinking pile was always full of water. He burned the wrap because he had no other way of getting rid of it.”It didn’t matter what you did, you would still have piles of silage wrap. It’d take a whole  day in spring or summer to clean up. It’s dirty, wet, s….y stuff and it blows all over the place.”

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The rural property market remains constrained with no significant rise in either prices or farm sales in the latest market statistics for the three months to April released today by the Real Estate Institute of NZ. “Though there have been lots of inquiries the slow inactive market continues as buyers are being very cautious,” says President Peter McDonald. The national median farm sale price rose to $1,000,000 for the three months to April 2010, fractionally up on the median of $970,000 for the three months to March 2010, but still down on the February figure of $1,045,000 reports Scoop.

The total number of farms sold in the three months to April was 267, almost the same as the 266 in the same period last year but well down on the 786 farms sold in the three months to April 2008. Though it is effectively the last month in the dairy farm sales season, only 12 dairy farms sold in April and the median price for the three month period fell from $3,600,000 at the end of March to $3,550,000. The average price per hectare for the April dairy farm sales was just $34,766, a further decline on the March average of $36,905, and the February average of $43,970. And the average sale price per kilogram of milk solids fell to $36 from $42 in March and $47 in February.

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A meat industry leader says if NZ processors continue to shun consolidation it is inevitable that a multinational processor will step in reports Rural News. And unless there is consolidation of meat processors here, overseas supermarket chains will continue to take the bulk share of returns. Northland farmer James Parsons points out that a low cost of production is not a competitive advantage “unless you can bank it”.

The Nuffield scholar and M&WNZ director says in the EU supply chain funnel, the power lies with the big supermarkets. In the UK, the big four supermarket chains – Tesco, Asda, Sainsbury’s and Morrisons – have boosted their market shares and collectively hold about 75% of the market. Because of their power in the supply chains, these supermarkets are able to pressure suppliers to discount prices, resulting in lower returns for farmers.

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Sheep and beef producers should pick the companies they supply carefully to avoid becoming casualties of an impending “train crash” in the industry, says the chairman of one of the key players in Rural News. Speaking at a M&WNZ monitor farm meeting in South Canterbury last week, Anzco chairman Graeme Harrison  said average return on shareholders’ funds across the four main companies is “not even the cost of capital”.

Normalised earnings figures – with exceptionals taken out to leave only meat industry activity – for the four largest meat companies over the past five years show combined earnings in 2008-09 were well below the five-year average even though turnover and assets employed increased.Average margin on sales was just 0.7%.“You can all see from these numbers a train crash is coming.”

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The world wants chilled lamb meat but the challenge was to get it to the right markets at the right time, Alliance Group livestock manager Murray Behrent told farmers at a field day last week. While frozen lamb still accounted for 60 to 70 per cent of exports, the aim was to convert that to chilled to maximise returns, he said. “Lamb is a premium product and we want to sell to the millionaires of the world.”

Shelf life had been extended from nine weeks to 11, which meant the meat was on retail shelves for longer, offering more sale opportunities reports The Southland Times. Speaking at M&WNZ’s new Meat the Future field day last week, Mr Behrent said the co-operative knew farmers wanted $100 for a lamb now and were unhappy with returns lower than last year. But if the NZ dollar was the same as last year, farmers would be getting between $112 and $115, because of record prices being achieved in British retail markets.

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Meat companies do “a pretty good job” marketing their product in Europe but are often unfairly criticised for their efforts in what is an extremely sophisticated market, an agriculture academic believes. Lincoln University Professor of Farm Management and Agribusiness Keith Woodford said the EU – including the United Kingdom – took 65 per cent of New Zealand’s lamb by value, paying the best global prices reports The Southland Times.

Companies were getting better returns than for beef, so for lamb to be so well placed in price suggested someone had done something right, Dr Woodford said. “I think they’ve got Europe pretty well sussed but always, of course, they could do a little better.” He told attendees at Meat & Wool NZ’s new Meat the Future field day last week that he expected New Zealand’s meat industry would need restructuring to survive, but did not believe that would lead to a Fonterra-like mega-company. It would probably lead to two large companies – one a co-operative, the other an investor-owner – and maybe some other smaller niche businesses, he said.

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Te Pohue farm manager Peter Procter said years of losing thousands of dollars of stock and having to repair smashed gates and fences had pushed farmers to the point where they will fight back reports The NZ Herald. “I’ve had a gutsful – and so has everybody else who lives on Waitara Rd. It’s come to the crunch … if a dog sets foot on my place it will be dead and hanging on my gate for the owner to come and collect.”

Mr Proctor said he had seen too many shot and savaged livestock over the past few years on the property, off SH5, as illegal hunters target private farms and blocks for their shooting expeditions. “I’ve had poachers leave dogs on the farm overnight which have attacked sheep within a short period of time. I’ve had up to 20 ewes at once killed, and if you’ve ever seen a sheep still alive with half its face peeled off you wouldn’t think twice about shooting these kinds of dogs.”.

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Deer numbers have fallen to levels last seen in 1994 as the sector continues to feel the fallout from record prices earlier this decade.The latest available census, done in 2008, showed a herd of 1.2 million reports The ODT. The kill this year was forecast to fall below 400,000, compared with a peak a few years ago of 750,000. Deer Industry New Zealand (DINZ) chief executive Mark O’Connor attributed the decline to farmers killing capital stock as venison prices fell, a situation from which the industry had yet to recover.

He believed there was a rebalancing occurring in the industry, and those farmers who remained carrying larger numbers of animals would be more productive. DINZ chairman John Scurr, of Wanaka, said the forecast kill was lower than the board would like, but that was a factor of supply and demand which was beyond its control. The sector had been hit by changing land use, and much of its traditional finishing country was now being used for dairying. That meant deer herds were being pushed into the high country foothills. This was despite deer farming being financially competitive with lamb finishing and wool and dairy grazing, he said.

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