Early Bird I Wednesday August 21st 2024

Farmers face potential carbon price hike after changes to the ETS, sheep numbers decline as drought and market challenges hit farmers, and Rural Women New Zealand advocated for better HRT access. Welcome to Proud Country's Early Bird - The top things you need to know that impact rural New Zealand delivered to you by 5am, because who doesn’t need better chat beyond the weather! Farmers face potential carbon price hike after changes to the ETS The government's update to the Emissions Trading Scheme (ETS) settings could have significant implications for the country's farming sector. Climate Change Minister Simon Watts has announced changes aimed at creating a more credible market, which may lead to increased costs for farmers and other primary producers. Key to these changes is the decision to reduce the number of available units between 2025 and 2029 from 45 million to 21 million. This substantial reduction is likely to drive up the price of carbon, directly impacting farmers and the agricultural sector. For New Zealand's farmers, who are already grappling with challenges such as volatile commodity prices, weather extremes, and increasing regulatory pressures, a rise in carbon prices could add another layer of financial strain. Higher carbon prices may increase operational costs, particularly for dairy and livestock farmers who have higher emissions profiles. However, the changes could also incentivize farmers to adopt more sustainable practices. With a higher carbon price, investments in emission-reducing technologies and practices may become more economically viable. This could accelerate the adoption of precision agriculture techniques, methane-reducing feed supplements, or carbon sequestration projects on farmland. The government's decision to retain the current auction floor price and cost containment reserve price provides some stability for farmers in terms of price predictability. Nevertheless, the overall trend towards higher carbon prices is clear. While the government suggests that the impact on everyday New Zealanders will be minimal, farmers may face more significant effects that could potentially influence farm management decisions, production methods, and even land use in the longer term. As these changes take effect from the first auction of 2025, farmers and agricultural organisations will be closely monitoring the market and planning strategies to adapt to the new ETS landscape.  For more on this topic, check out Episode 28 of the CountryWide Podcast “How to make or break our future with emissions”, follow the link in the description.Episode 28 - How to make or break our future with emissions? - Country-Wide Magazine Sheep numbers decline as drought and market challenges hit farmers The country's sheep farming industry faces mounting challenges, with drought conditions and low market returns driving a continued decline in sheep numbers.  The latest stock number survey from Beef and Lamb New Zealand reveals a 4.3 percent drop in sheep numbers for the year ending June, bringing the total to 23.31 million. Breeding ewes decreased by 2.9 percent, while hogget numbers experienced a more substantial seven percent reduction. Canterbury and Marlborough bore the brunt of the decrease, with sheep numbers plummeting 12.2 percent. In severely drought-affected areas like Nelson and North Canterbury, flock reductions of 30 to 60 percent were common, with some farmers resorting to selling entire ewe flocks. Market conditions have exacerbated the situation. Reduced demand from China, coupled with increased Australian sheep-meat flooding the market, has caused a sharp drop in prices. This, combined with rising input costs, points to likely losses for many sheep farmers this year. However, the beef sector is not without its own hurdles. Despite strong beef prices, cattle numbers fell 2.8 percent to 3.55 million, primarily due to drought-related destocking in the South Island. Breeding cow numbers decreased across most regions, and fewer older, heavier trade cattle were recorded at the end of June. The sheep and beef sector, which generates approximately $11 billion in revenue for New Zealand and supports 90,000 jobs, is a cornerstone of rural economies. As numbers fall, rural communities are experiencing tangible impacts, including reductions in veterinary services and even school closures. Positive outcomes for dairy sector following nitrogen cap implementation South Island dairy farmers are reporting encouraging outcomes following the implementation of annual nitrogen fertiliser restrictions. A recent analysis has revealed the effects of the 190 kilogram per hectare limit on dairy operations across the region. The research, backed by the Our Land and Water Rural Professionals Fund, looked at 15 dairy operations across Canterbury and Southland. It compared farm data from 2020 and 2023, revealing how producers managed under the new regulations. All farms in the study had lowered their nitrogen fertiliser use below the mandated level. Many had made substantial reductions. While fertiliser use decreased, farmers increased nitrogen input through other means. This included bringing in more supplementary feed and expanding cropping activities. Additionally, clover nitrogen fixation rose on many properties. Despite these adaptations, the overall amount of nitrogen in farm systems still declined, leading to a significant drop in nitrogen leaching from pastures. The reduction exceeded initial expectations, closely tied to how much farmers cut back on fertiliser use. Researchers attribute the better-than-anticipated results to two main factors. Firstly, farmers have become more adept at working within the new regulatory framework. Secondly, they've had to adjust to varying weather patterns. The study also examined greenhouse gas emissions. Results varied between regions. Canterbury farms saw a slight increase in methane due to higher supplementary feed use. In contrast, Southland properties experienced a minor decrease. Both areas recorded lower nitrous oxide emissions. Rural Women New Zealand advocated for better HRT access Rural Women New Zealand (RWNZ) is taking action to address the hormone replacement therapy (HRT) shortage affecting women across the country, with rural women feeling the impact most acutely. The organisation has made a submission to Pharmac, urging for more consistent HRT supply and improved access for rural communities. HRT availability has become a global issue, with New Zealand pharmacies often running out of stock completely. The current practice of dispensing only a month's supply at a time adds to the burden for rural women, who often travel long distances to reach a pharmacy. RWNZ board chair Sandra Matthews, a sheep and beef farmer from Tairāwhiti, says some women drive over 90 minutes to collect their prescription, only to return empty-handed due to lack of supplies. This not only incurs high fuel costs but also takes valuable time away from farm work, family commitments, and community involvement. The issue is particularly challenging during calving and lambing seasons when getting time off the farm is even more difficult. The emotional toll of potentially running out of medication and being unable to obtain more when stocks are replenished is significant. Pharmac is currently consulting on funding an alternative oestrogen gel. RWNZ's submission calls for fast-tracking funded access to this gel, proposing availability from November this year. The organisation also emphasises the need to address the one-month supply limit, considering the unique challenges faced by rural women. The implications of HRT shortages extend beyond individual health. With women making up 50% of the farming industry, the impact on productivity and family life is far-reaching. Many women struggle emotionally and physically without access to HRT, affecting their ability to function effectively in their various roles. Alliance Group Closes Timaru and Ōamaru Butcher Shops Alliance Group has confirmed the closure of its local butcher shops in both Timaru and Oamaru, impacting twelve employees. John Skurr, Alliance's general manager for New Zealand sales, explained the move as a strategic shift to concentrate on core activities. While face-to-face retail operations will cease, Alliance remains committed to serving customers through its online platform. In a nod to changing consumer habits, the online shop will transition to an external provider. This move aims to maintain an effective service for New Zealanders who enjoy Alliance's product ranges, including Pure South, Lumina, Silere, and Handpicked. Skurr acknowledged the dedication of the butcher shop teams, thanking them for their hard work and passion in serving local and online customers. He emphasized that treating affected employees fairly and with respect is a top priority during this transition. For the twelve workers impacted by these closures, Alliance is actively exploring redeployment opportunities within the company.  For rural communities, particularly farmers who supply Alliance, this move signals a renewed focus on the company's core meat processing and export activities. See omnystudio.com/listener for privacy information.