Well 2009 has finished in typical governance style, with a number of farmers getting phone calls followed by abatement notices from Regional Council about spraying of Manuka and Kanuka up to 5yrs ago, as reported in various farming papers.

The silly thing about it is that the control of the “Effects” of the use and development of land including biodiversity and what ever else is mentioned in the RMA , is a District Council function as per sec 31. Meaning Horizons have made utter pratts of themselves once again. Honestly talk about the Key Stone Cops. Of course all this could have been averted 10/12 yrs ago if our District Councils had of stood up and told Regional Council to pee off when they (Horizons) first muscled in on the role and functions as identified in sec 31 of the act. In the current District Council Plan, clearance of scrub etc is permitted, end of story.

That is not to say that Horizons do not have a role to play in the protection of soils , sec 30 of the act , it is just that it is subservant to sec 10 of the Local Govt Act (LGA) 2002.

2010 started off in the same vein with Central Govt passing the equally hated National Animal Identification and Traceability scheme into law, (NAIT) which will cost farmers approx $3 per hd of cattle and deer, for electronic tags to trace stock from farm to customer. This is despite the old status card system being proven to work with the successful prosecution 12 months or so ago of the Northland farmer who sent stock to the works which ended up some how in the market place , within the withholding period of the product used.

The big fear I and others, including Federated Farmers have is that this scheme will quickly move to include sheep and become another tool in Central Govts armory to impose even more overly restrictive rules and  regulations adding even more cost and destroying wealth on our industry.

My view and I am sure others hold the same , is that NAIT is not about traceability to the market, but about on farm animal welfare issues. I qualify this by quoting AFFCO,s CEO who made the statement, I am informed, during their round of preseason shareholder and supplier meetings. NAIT is coming wether you like it or not, and will not return one cent more from the market place.

I also attended 2 of the consultative meetings held around the country, was astounded by some of the b…s..t the presenters used to sell the proposal. All of which I am sure those who attended would have recognised. I also noted the vocal presence of local SPCA officals. 

NAIT is about on farm animal welfare issues, look out if your stock losses appear to be abnormal. You will have to reconcile tag purchases against stock sales and look out if some office walhar in Wellington decides your deaths are too great when matched to the National average. Get the picture? And who will be the worst effected?  Yes, you guessed it, the back country hill country  farming country which does not easily add itself to Barn type monocoddling of stock seen on our lowland intensively farmed country.

Believe you me , I smell trouble coming. Overly restrictive rules and regulations, adding cost and destroying wealth.

Chuck in this Twin Lamb Scanning trail that has been run in Southland, Otago, Canterbury and the Wairarapa Hill Country, on slope over 20%, aspect (southerly) and considering Animal Welfare issues and we are in trouble. The horrible thing about it is that those farmers on slope over 20% have not realised just how easy in terms of angle 20% plus is . Get a protractor out and assess it for yourself.  All these regulators are now waiting for is a big storm, that will cause large scale lamb losses, (which our overseas markets will find abhorent, with wide spread media coverage both here in NZ and in the Market, I bet your boots will be the UK.)  on the southerly faces and in will come regulation . Add the erodability of the northerly facing country and believe you me our lowland farmers are sleep walking into oblivion thinking us hill country farmers are the only ones in trouble. For you see it is whole regions which will feel the effects of this nonsense, including  urban centres, sending thousands of people to larger Urban cities in search of work bringing even greater pressure on essential services including Law and Order. This nonsense is not only restricted to Land .I read (NZ Herald) recently that the Fishing industry has woken up to the fact that there is no science to the allocation of species Quota. Again here we have subjective nonsense adding cost and destroying wealth.

Central Govt has been telling us for 30 yrs that they do not want us, and since 1983 they really ramped up the anti. Chuck in Maoridoms wordly view and their bible the RMA, a couple of constutionally suspect pieces of legislation. The Treaty of Waitangi Act 1975, and the Principles of the Treaty of Waitangi  1989. Add to the mix the deliberate lie that our economy was so destitute that we had to sell of our state assets at bargain basement prices through the 1980’s and 90’s. Just look at the profits being repatriated now to foriegn owners, and the state of our economy as a consequence. Its Fiji here we come, and a dollar valued to suit. Include woeful monatry policy relying on high interest rates to control a rampant Auckland property market, resulting in a overvalued dollar , destroying market returns of both manufacturing and agriculture based industries sending many of them relocating off shore  or simply closing their doors. Who is to employ these people, many of whom who can afford to have moved to, you guessed it, Oz .

All this has enabled proponents of Political and land use Change to achieve the outcomes they desire.

It is my view that NZ is or has been deliberately and cynically lead down the road to anarchy. Wake up! Become aware, NZ has to move firmly to the Right. We need strong honest Govt, lead by ethical honest profressional politicians , not the bunch of politicaly expidient socialists we have had for the last 30 yrs .

Thank God that the media is waking up to the subjective interprtation of facts and data  by this bunch of political activists running the IPCC. Again overly restrictive rules and regulations adding cost and destroying/transferring wealth. I cannot believe the arrogance of these people, and they hope still, to get away with it by creating a situation where people are so engrossed  in making ends meet that they do not have the will nor the energy to get up , become informed and start fighting back.
I include all forms of Governance in the above.

Siver Fern Farms.

 My view is that Silver Fern Farms must go. NZ cannot afford to continue to allow this company to destroy wealth. Since 1980 one company has been the bad boy of the meat industry. When NZ and Australia reopened the very lucrative Nth American market for sheep meats. One company did its damndest to undercut other companies in the market place, causing great antagonism toward NZ producers by local sheep farmers, and destroying returns to NZ producers. Through the 1990s  one company set unrealistic schedules for Venison, hyping up the procurement market to unsustainable levels , and encouraging investment in deer farms overly inflating the price of land in the process. All the while driving the smaller independent processors out of business. Once achieved it gutted the Venison schedule, down from $5 to $2 at one stage , destroying wealth, driving many farmers to the wall and causing a massive down sizing of the herd .

In the late 1990’s one company used HKM, the Hawkes Bay Maori Incorporation to illegaly buy shares in Richmond,  a succesful Hawkes Bay based Meat Processor of the time and when found out, again my view, used a dodgy Judge to quite literally make new law to enable this company to keep those shares. Right through the first decade of the 21st century one company has continued to under cut in the market.  (NZ Farming media  reports pre season, with regards to Tescos activities in NZ during their supplier visit) . My view is this company is the one and same, PPCS/Silver Fern Farms. Why do we continue to supply this company? Lets look at the facts. Last financial yr 2008/09 Silver Fern Farms made a reported $5 mill profit. Included in this was $200 mill of wealth destruction capital gleaned from PGG Wrightson , effectively a $200 mill loss. Alliance made a $48 mill taxable profit. It is my guess that the Feds $150 lamb could well have been achieved if Silver Fern Farms were not operating in the Market Place. Instead those Ozy Banks are laughing all the way home.

It is my view that the proponents of Political and Land use Change in NZ are using Silver Fern Farms to achieve the out comes desired. The destruction of wealth.  For it is only with the destruction of wealth can these people achieve the goals they desire and the world is littered with examples.

Alliance I believe will post a even greater profit this year, and as for Silver Fern Farms , it has to go and any improvement will not save it. It is bleeding to death slowly year after year the whole industry, including the NZ economy and the whole Family Farm Concept. It has to go and it is only dumb cockys wealth that is keeping it alive. There is the capacity with in the industry to kill Siver Ferns Farms share , and the Processing industry must realise that it is in every bodys interest to maximise returns to the Producer. And become alot more disciplined in the market place.  We simply have to put more money in NZ farmers pockets thus NZ’s future as we know it , and fast, for all the reasons out lined above.

We cannot go on borrowing $250 mill per week to fund NZ, that money has to come from NZ inclusive through exports, and there is only one place that can generate that sort of income and that is them there HILLs. As Alliances profit points out more money can be returned to farmers pockets fast, if it was not for one company dragging schedules down. 

The question must be asked , Why doesn’t the rest of the processing  industry  simply run them out of bussiness, and to a degree we saw this happen in Febuary with Taylor Prestons Schedule .45c above Silver Fern Farms. I guess the balance of the industry is simply pocketing the dosh.

Where is the Govt in all this . Is it not their role to govern for the benefit of all?