PGP project suggests meat industry ready to co-operate, says Barber

Allan BarberYesterday’s announcement of the Red Meat PGP Collaboration Programme for Greater Farmer Profitability at a total investment of $65 million is fantastic news for the whole industry, says meat industry commentator Allan Barber. The key words are ‘collaboration’ and ‘farmer profitability’, he writes.

The first of these has usually been notable by its absence, while the second combination of words has only been evident at irregular intervals.

Half the funding will be made available from the Ministry for Primary Industries (MPI)’s Primary Growth partnership fund, while 30 percent will come from farmers through Beef & Lamb New Zealand Ltd (B+LNZ) and Meat Board reserves and the balance from six meat companies, two banks and Deloitte.

B+LNZ’s contribution is contingent on levy paying farmers voting in support of the proposal at its annual meeting on 8 March. Although nothing is ever certain, it would be a shock if this support wasn’t forthcoming, because the programme represents a significant step towards fulfilling the objectives of the Red Meat Sector Strategy conducted by Deloitte and completed nearly two years ago.

The aim of the programme is to lift the performance of all farmers to match that of the best performers which was identified in the strategy as the best way of improving industry profitability. There is a significant gap between the top and bottom performers in farming methods and profitability. If this gap can be closed the gains for the sector and New Zealand are enormous.

The participation of the six meat processors – AFFCO, Alliance, ANZCO, Blue Sky, Progressive Meats and Silver Fern Farms – is as meaningful as it is welcome. These are the key sheepmeat processors which is recognition that it is the sheep meat sector in particular where the greatest gains are to be made. However, the focus behind the farm gate shouldn’t obscure the fact that there are substantial gains to be made from greater collaboration in the market place.

A striking aspect of yesterday’s press releases by Ministry of Primary Industries, B+LNZ, Alliance and Silver Fern Farms (SFF) was the difference in tone between the statements by the two meat companies and the enthusiasm with which Beef & Lamb is greeting the opportunity.

The tone of SFF’s press release was less than enthusiastic, emphasising the need for a levy vote in support before the programme could begin and the care taken to ensure this programme did not cut across SFF’s Farm IQ programme which was the first project out of the blocks.

In spite of a first sentence which confirmed SFF’s support for the collaboration programme, the main impression from the statement was that the company was a somewhat unwilling participant and would be guided by the farmers’ decision. If this happened not to be supportive, I was left with the feeling SFF would not be particularly upset.

In comparison with Keith Cooper’s guarded support for the programme, Alliance chief executive Grant Cuff was positively euphoric, stating:

“This new coordinated collaborative initiative will enhance the knowledge and capability in the sheep and beef sector and help improve farm performance, productivity and profitability.

“New Zealand can make significant gains in its export earnings by ensuring all parts of the value chain collaborate so suppliers are using the best available farm and business management practice and tools.

“This initiative is an important step in the implementation of the Red Meat Sector Strategy. We’re supportive of any steps to lift the industry’s game and improve on-farm profitability.”

After my recent call for a sheep meat strategy, I am cheered by this progress. Admittedly, results won’t happen immediately, but it provides an investment over several years during which industry participants will work together for the collective good.

This must be one of the best possible outcomes for an industry which is noted more for its divisiveness than its potential to cooperate in the interest of a better future for all the parties.

Allan Barber is a meat industry commentator who writes a number of columns on the topics. He has his own blog Barber’s Meaty Issues.

Transformational change (and how to make it)

One farmer who has made transformational change to his farm business is Marlborough farmer Doug Avery.

In an inspirational and entertaining presentation at the Red Meat Sector Conference, he talked of working “smarter and harder” and the need to “lift yourself up above and see what’s going on around you.”

The tipping point that made him see that he needed to change was sustained drought in the region, over a period of eight years,  which meant that Bonavaree Farm and the Avery family were facing a very uncertain future. In 1998, Doug Avery attended a seminar where Lincoln University pasture Professor Derrick Moot proposed using lucerne as a primary grazing pasture plant. Using that idea started change.

In 2004, with the area still gripped with drought, the NZ Land Care Trust answered a call for help from Avery and a few other farmers. A six-pronged attack on failed systems was engaged with science and the help of funding from the Sustainable Farming Fund and others. This saw the transformational change of the operation from one of failure to one of success.

Having run the emotional gamut of the ‘Three Ugly Sisters’ – envy, anger and blame – Avery realised, when he started looking, that there were some things he could control and others he was concerned about – climate change, weather and the value of the dollar – that he had no control over at all.

Avery realised three things: that the farm business could run 44 percent less sheep but only produce five percent less product; also, that a one percent increase in soil carbon can increase water holding capacity by 144,000 litres per hectare; and, finally, “how much time do we spend telling our story?”

Change of mindset

A change of mindset was also needed, he decided. He would work in what he calls the influence circle, become proactive not reactive, move to solution and enquiry (away from blame and excuse), he would influence thinking and adapt his business systems to the changing climate.

Better practice influenced the systems in place at Bonavaree, says Avery. The year was broken down into three periods: the risk period from mid-December to mid-February where they farm as little as possible; the recovery period from mid-February to late winter, when crops are grown on summer-fallowed land and ewes and hoggets are mated on lucerne and the system charges back into life; and the revenue period, from late summer till mid-December.

“We grow our stock at fast rates to finishing weights before the summer dry,” he said, adding that ewes wean fat and the ewe weights are heavy.

Precious water was conserved by using summer fallow, which intercepted the weed cycle, storing water and creating a water reservoir. Organic matter was built into the soil by stopping tillage. Plants were used that could tap water from deeper layers and also create rapid animal growth and performance. Finally, animals were made for performance, using designer genetics.

Results

The results today speak for themselves. “Lots of wonderful lambs that grow like mushrooms”, and “hogget scanning gone from 40 percent to 165 percent”.

Today, Bonavaree has 1,500 hectares owned and 280 ha leased which will be wintering 13,000 stock units this year (5,000 sheep, 1,650 cattle), growing 90 ha of lucerne for seed and the family is retiring an increasing number of natural areas production. The property has six full-time staff and lots of busy contractors.

Better practice

Better practice for Avery is about using quality contractors, rather than trying to purchase expensive machinery and do it himself, using smart systems like Farmax, inspiring the young who learn by what they see, working with good value chains and smart brands, growing top crops and lambing onto top quality feed, he said.

Reminiscing to the start of his transformational journey, Avery said: “I always wondered why somebody didn’t do something about that, then I realised I am somebody.”

His message for farmers looking to create resilient businesses is to create relationships, manage the soil and water “more crop from every drop”, look at the plant selection for sites and purpose, manage feed supply and demand, work with the natural forces of the local climate, collaborate with science, agency and industry, engage in processes which create financial reward and to create a culture of excitement and fun in the work place.

Bonavaree is now looking to build on its successes through improved management structures, more measuring and collaboration through FarmIQ, better feed conversion in the rumen, improved plant mixes and genetics (plant and animal) and enhanced native plantings and over lay business, says Avery.

Doug Avery has received a number of award for his work at Bonavaree including the 2008 Green Ribbon from the Ministry for the Environment, 2010 Lincoln Foundation South Island Farmer of the Year, 2011 Marlborough District Council Farm Environment Award and the 2012 New Zealand Land Care Trust Ambassador title.

Hickson Fed Farmers Agribusiness Person of the Year

Congratulations to Craig Hickson, managing director of Progressive Meats who last week was named the 2012 Allflex/Federated Farmers Agribusiness Person of the Year.

Five “exceptional nominations” were received by Federated Farmers, according to president Bruce Willis. Hickson was picked out from the five by judges Andrew Newman, Cr Hon Christine Fletcher and Waikato University’s Professor Jacqueline Rowarth.

“Craig is a hands-on farmer but the name of his company pretty much sums up his philosophy,” said Willis at the Auckland gala event where the award was presented to Mike Petersen, chairman of Beef + Lamb NZ Ltd in Hickson’s stead. Hickson himself was away in Australia representing the industry at LambEx 2012 and talking about questions Australian lamb producers should be asking their processors.

“[Hickson] runs a mixed 1,200 hectare sheep,deer and beef farm in Hawke’s Bay and in addition to Progressive Meats, is a member of the Meat Board. Craig is also a director of Ovation New Zealand and a number of other meat companies.”

Hickson has been an Meat Industry Association council member since 2003 and is also a Board director for Beef + Lamb NZ Ltd, Ovita Ltd, Lean Meats Ltd, Te Kuiti Meats Ltd, Progressive Leathers and Venison Packers.

An associated award, the Ravensdown/Federated Farmers Agribusiness Personality for 2012 went to agricultural scientist Dr Doug Edmeades, who was also a finalist for Agribusiness Person of the Year.

 

2012 Landcorp Agricultural Communicator of the Year

Steve Wyn-Harris (left) receiving his award from Landcorp chairman, Bill Bayliss.

Congratulations to Steve Wyn-Harris, a Hawke’s Bay sheep and beef farmer and farming commentator, who has just been announced as the 2012 Landcorp Agricultural Communicator of the Year.

Wyn-Harris started his farming career in 1985, when he bought 180 hectares in Central Hawke’s Bay, adding several other blocks over the years, so he and his wife now have 350ha. The properties carry high performance breeding ewes, including a Coopworth sheep stud that uses the latest technology such as sire referencing, AI and gene identification. Bull beef makes up 40% of the stock carried and 15% of the property is planted in forestry and areas of amenity and native plantings are scattered over all the farms. He has won a number of farming awards over the years, most recently last year when the farm took out the East Coast Balance Farm Environment Supreme Award.

He took out this year’s award as a broadcaster with his own local radio show and a regular on the national Farming Show. He is also a longstanding columnist and has been contributing weekly columns for many years and currently appears in NZ Farmers’ Weekly.

The Award is administered by the NZ Guild of Agricultural Journalists and Communicators (NZGAJC) and recognises excellence in communicating agricultural issues, events or information. regarded as the premier award for agricultural communicators, it is also the most valuable prize on offer. Landcorp provides a prize of $2,500, which is part of a funding package of $7,500 in sponsorship for the Guild. The additional funding assists with administration costs, including the award dinner.

Guild President, Jon Morgan, said Steve is a worthy recipient of the award this year. His columns, comments, presentations at conferences cover an extensive range of topics, but his style remains the same, relaxed, whimsical and often humorous. “He is widely respected as an excellent farmer, but has that rare gift of communication that crosses all areas of rural life.”