Southland farmers gain breathing space in water consent battle, Fonterra calls for stronger controls in Gene Technology Bill, and Spring Sheep secures new investors to boost China exports.

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Southland farmers gain breathing space in water consent battle

Southland farmers have been granted a reprieve from costly resource consents after a court stayed controversial Water and Land Plan rules until the Government completes promised legislative changes.

The court decision puts on hold rules that would have required more than 3000 Southland farmers to apply for resource consents at a cost of between $10,000 to $30,000 each. Federated Farmers Southland president Jason Herrick welcomed the stay as a pragmatic decision that saves farmers from an impractical and expensive box-ticking exercise with no environmental benefits.

At the heart of the dispute is Rule 24 of Environment Southland's Water and Land Plan, which allows incidental diffuse discharges from farming activities as a permitted activity. The rule came under fire when Forest & Bird and Fish & Game took the case to the Environment Court, which questioned whether it complied with Section 70 of the Resource Management Act.

Environment Southland challenged this interpretation through the High Court and Court of Appeal, arguing that without Rule 24, thousands of farmers would need resource consents to continue farming lawfully. The regional council subsequently requested an adjournment from the Environment Court until the Government completes its promised amendments to the RMA.

Environment Southland's general manager of strategy, policy and science Rachael Millar explained that Rule 24 was designed to allow incidental diffuse discharges like animal urine as a permitted activity, provided farming activities are managed under other plan rules. A Court of Appeal decision last year determined the rule didn't meet Section 70 requirements, prompting the council to take its concerns to the Government.

Agriculture Minister Todd McClay announced in October that the Government would address Section 70 in its second RMA amendment bill, providing certainty on discharge rules. Environment Southland has expressed support for the Government's proposed changes.

The appeals on Rule 24 will remain on hold until the Amendment Bill becomes law, after which the council will work with the court and appellants on a suitable way forward.

 

Fonterra calls for stronger controls in Gene Technology Bill

Fonterra has called for significant changes to the controversial Gene Technology Bill, warning it lacks adequate controls while still backing the overall direction of the legislation that would end New Zealand's GM-free status.

After announcing an 8% interim half-year profit rise on Thursday, Fonterra chief executive Miles Hurrell voiced qualified support for the bill, saying gene technology held promise for agriculture and would allow New Zealand to control its own destiny. However, the dairy cooperative's submission to Parliament highlights several critical concerns that could impact farmers and export markets.

Fonterra has told MPs that stronger controls are essential to prevent genetically-modified cows from entering the national dairy herd undetected, and warned that GMOs could threaten organic farming because materials like GM ryegrasses would be difficult to contain to specific areas.

A key concern highlighted in Fonterra's submission is how the bill currently allows gene technologies approved by Australian regulators to be automatically introduced to New Zealand without local regulatory approval. This would mean techniques like SDN-1, also known as Crispr technology, would be entirely excluded from regulatory oversight despite New Zealand's top 20 markets requiring approval assessments for milk from SDN-1 modified cows.

The dairy giant emphasised the need for regulated traceability requirements to verify that milk isn't sourced from genetically modified animals. Fonterra also criticised the bill for directly imposing an overseas jurisdiction's classification system without provisions for New Zealand regulators to review or for public participation in the development process.

Select committee hearings continue with the Government wanting the legislation to become law before year's end.

 

Bulk milk TB test trial aims to revolutionise on-farm testing

New Zealand is leading the world in trialling an innovative bulk milk test that could significantly improve bovine tuberculosis testing for dairy farmers nationwide.

The trial, launched in collaboration with Ireland-based Enfer Group, is testing a new system called Enferplex which screens for TB directly from bulk tank milk samples. New Zealand is the first country to attempt using this technology in a national TB management programme, with experts saying it could substantially reduce on-farm disruption for dairy farmers.

Bulk tank milk samples are now being collected from every dairy herd throughout the country, with targeted on-farm follow-up testing planned for selected farms between April and June. These follow-ups will include herds showing positive results with the Enferplex test, as well as neighbouring herds that tested negative but are within proximity of positive results.

The programme aims to direct on-farm testing more precisely by using early screening to identify potential hotspots without compromising New Zealand's well-developed TB eradication efforts. Officials caution that screening tests typically produce some false positives, which is why follow-up testing using standard skin and blood testing protocols remains essential.

Farms selected for follow-up testing will be contacted by AsureQuality testers to schedule visits. These tests will count as routine herd tests with standard results processes, though herd status won't change based solely on the bulk milk screening results.

If successful, the trial will provide data needed to register the test with MPI, potentially creating a more efficient pathway to target TB testing resources where they're most needed while reducing unnecessary farm disruptions across the dairy sector.

 

Spring Sheep secures new investors to boost China exports

Spring Sheep Milk Co has secured new investment to strengthen its Chinese market position, with sales to China doubling compared to last year despite recent industry challenges.

The government-backed company, half-owned by Pāmu in a joint venture with SLC Group, has taken on new investors from New Zealand, the US, and China to grow the business while maintaining 90 percent Kiwi ownership. Spring Sheep chief executive Nick Hammond says the Chinese investors bring crucial retail capability and premium dairy expertise that will help secure pathways for sheep milk into China.

One Chinese investor has worked with Spring Sheep for several years, representing a deepening of an existing relationship. The second investor brings substantial retail presence in China along with expertise in premium dairy markets. Both are injecting cash and expertise to boost in-country marketing for the company.

The company currently has 16 suppliers mainly based in the Waikato region, with one supplier operating two farms in Taranaki. Spring Sheep isn't opening up for additional suppliers next season, with any growth in volume expected to come from existing farmers.

The announcement comes after a financially difficult 2023/24 season for sheep milk farmers. Competitor Maui Milk told suppliers in early March to cease milking immediately, citing uncertainty about the future.

 

Innovation and sustainability lead the way at regional farming excellence awards

Healthy and Fresh in Auckland and Andre and Natalie Meier in Bay of Plenty have taken out the top honours at their respective regional farming excellence awards, with both businesses showcasing innovation in sustainable production systems.

Peter and Michelle Pan of Healthy and Fresh were named Regional Supreme Winners at the Auckland Ballance Farm Environment Awards in Ellerslie. Their 28ha operation in Karaka features 15 greenhouses spanning 60,000 square meters, including New Zealand's largest hydroponic farm for leafy greens. Their cutting-edge hydroponic nutrient film technique system ensures efficient water and nutrient use, applying just 5% of typical outdoor farming nutrient requirements.

Meanwhile, Andre and Natalie Meier were announced winners of the Bay of Plenty Share Farmer of the Year category at the region's Dairy Industry Awards. The couple, who are in a 20% equity partnership with Bruce and Gill Cameron across two properties at Otamarakau and Otakiri, have previously tasted success in the awards programme with Andre taking home the 2020 National Dairy Manager of the Year trophy.

The Pans have placed environmental sustainability at the heart of their business model, planting more than 100,000 native trees and shrubs along riparian areas to stabilise soil and reduce erosion. The judges recognised Healthy and Fresh as a standout operation employing advanced growing techniques to mitigate climate risks and ensure consistent supply of high-quality produce.

Similarly, the Meiers have prioritised sustainability and innovation on their 267ha operation milking 760 cows. They've simplified their farm system to overcome weather challenges and changed to a once-a-day milking system which has significantly improved production results. The couple cite diversification, business size and solid infrastructure with shared machinery and resources as key strengths.

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