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Anawai Beef + Lamb New Zealand Hawkes Bay Monitor

Farm Program

Community group meeting handout

15/11/2012

Farm Update

Covers

Following a September cover outlook with covers holding above 2000kgDM/ha through to Autumn

Colin has found and introduced 400 grazing Steers. These are included in the above outlook

Pasture losses are reading at a good level our target is between 15% and 22%. However this should

also be subjectively assessed. Are some blocks over grazed and some under grazed?

Stock Movements

Purchases

Aug/Sept

– 145 Weaner Bulls

– 51 Autumn born R1 Bulls

– 74 Yearlings

– 562 SIL ewes

– 264 Ma Hinds (Total wintered at year end will be 1237, 83 short of target 1320)

Oct 500 Angus grazing steers @400kglwt have been introduced

Stock sales this season

6 R1 Stags @ 55kgcwt

75 2yr Stags @ 57kgcwt

42 Out of season wks lambs (born may) @ 18kgcwt

334 Old season lambs @19kgcwt

15 yearling bulls @ 127kgcwt

J A S O N D J F M A M J J A S O N D J F M A M J

500

1000

1500

2000

2500

3000

3500

4000

kgD

M/h

a

Cover Target Min.(Feasible) Min.(Not Feasible)

J A S O N D J F M A M J

Cover

500

1000

1500

2000

2500

kgD

M/h

a

J A S O N D J F M A M J

Pasture Growth

20

40

60

80

kgD

M/h

a/d

Target Actual Forecast Budget Actual Forecast

Jul 12 Aug 12 Sep 12 Oct 12 Nov 12 Dec 12 Jan 13 Feb 13 Mar 13 Apr 13 May 13 Jun 13

Cover Actual 1595 1714 1989 2107 2303 2359 2196 1925 1806 1811 1762 1618

kgDM/ha Target 1250 1350 1397 1595 1896 2000 2200 2103 2010 1912 1800 1496

Potential Pasture Growth Actual 7.9 14.7 24.6 34.0 41.7 35.3 23.2 17.3 23.5 23.4 18.4 10.5

kgDM/ha/d (incl N) Plan 7.9 14.7 24.3 33.7 41.8 35.6 23.1 17.2 23.5 23.4 18.4 10.5

Demand Actual 12.7 14.8 16.2 19.9 26.3 26.8 25.6 23.8 24.6 19.9 17.4 16.1

kgDM/ha/d Plan 12.6 14.9 17.0 19.7 21.5 22.5 21.5 20.1 21.3 20.0 17.5 15.9

Effective Area Actual 1394 Gross Margin Actual $946447 Conversion Efficiency Actual 30.33

ha Plan 1394 $ Plan $738490 kgDM Eaten/kg Product Plan 31.68

Pasture Loss Actual 21.5 Gross Margin Actual 678.94 Gross Income Actual 4.57

% Plan 26.9 $/ha Plan 529.76 $/kg Product Plan 4.33

Product Actual 220.0 Gross Margin Actual 10.2 Gross Margin Actual 9.0

kg/ha Plan 193.6 c/kg DM Plan 8.6 c/kg Potential DM Plan 7.1

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There are 1115 additional cattle on this spring

Crop establishment spring 2012

Area planned Progress

Lucerne 16.5ha Sown

Chicory/red clover 3.7ha Sown

Plantain/red clover 25.8ha Decision was made due to the wet conditions of the

paddocks to postpone establishment until Autumn with

a December spray out and summer fallow

Titan rape 22.6ha Sown

Kale 23.3ha Sown

Swede 13.3ha Sown

Titan rape (rosewood) 20ha Sown

Action taken to date following the community groups feedback

• + 1 labour unit employed John Hallgarth

• Staff assigned blocks for responsibility

• Weekly staff planning meetings to be held on Fridays

• Bulls integrated and Grazers taken on – Opening up the closed stock policies, introducing

greater flexibility and introducing spring pressure.

• Plantain rather than Chicory is to be planted on the Elsthorpe country

• Work being done on a formalised winter grazing plan

• Working on a formalised Animal Health Plan

• In the process of engaging a fertiliser rep for a fertility plan with an independent review by

Agfirst to follow.

Discussion points

Is the stocking plan next winter aggressive enough?

Did we miss opportunity this past spring?

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J A S O N D J F M A M J

Pasture Cover

500

1000

1500

2000

2500

3000

3500

4000

kgD

M/h

a

Target Target Range Plan

J A S O N D J F M A M J

Pasture Cover

500

1000

1500

2000

2500

3000

3500

4000

kgD

M/h

a

Target Target Range Plan

Key targets 2012/2013

Covers

Cover levels will be reviewed monthly with actions planned monthly to optimise proactive decision

making

Winter rotation targets of

98 days breeding stock

84 days bulls hoggets and finishing heifers

30th August target cover of between

1300-1500kgDM/ha.

Below which we will be restricting early

season growth and above we will have

challenges keeping spring/summer control

30th April target cover of between

1700-2100kgDM/ha

To ensure we have sufficient cover to carry

stock through winter and hit the late

winter/early spring target

Discussion points

What are the key targets to monitor this coming year?

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Winter Grazing Plan Developed

Key principles

• 3.5 day shifts (avoiding weekend shifts)

• Paddocks in multiples of 4ha

• 98d winter round – breeding stock

• 84d winter round – bulls, hoggets and finishing heifers

• Deer in forestry on silage pad

• Out of season ewes set stocked

• All systems will be allocated a set area. Rotation length targets will be relatively inflexible,

flexibility will be in days per shift for individual breaks/paddocks

Subdivision requirement

• 19.8 km of new fencelines and existing fencelines to reinstate

• 87 paddocks are required excluding rosewood (planning yet to be completed)

• Troughs will be centralised wherever possible to allow further subdivision

• Permanent or 5 wire fences will be used between systems with lower cost internals

Subdivision and water system development schedule

2012

7 wire, 2 electric – 4.9km (3.3 km Elsthorpe hill country, 0.9km lucerne blocks Maraetotora country,

0.7km bull block Maraetotora country))

Deer fencing – 2.8km (Maraetotora country)

2013

7 wire, 2 electric – 7.5km (2.5km Elsthorpe hill, 2.7 lower Elsthorpe country, 1.1km Maraetotora

lucerne, 1.1km Maraetotora bull blocks)

2014

7 wire, 2 electric – 4.6km (Elsthorpe hill)

Discussion points

Order of priority for subdivision and water schedule

Mob sizes vs paddock size – If we reduce one we need to increase the other

to meet winter rotation length targets. What is the optimum?

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Benchmarking & Performance Summary - Anawai AgFirst Accounts Analysis

Abreviations are defined in the glossary of terms found at the end of this report

Anawai Financials

2011 Benchmarks

2011 2012

Projected

2013 Target

AgFirst AA*

Av

AgFirst AA*

Top 10% Fmx Av

Fmx

Top20%

GFI/ha 884 985 987 1000 774 1029 969 1072

GFI/SU 102.3 101.3 - - 85.44 101.9 - -

EFS/ha 289 386 - 450 313 557 335 539

EFS/SU 33.4 39.7 - - 35 55 - -

GM c/kg pot DM 8.0 9.0 7.2 10.0 - - 9.1 12.1

GM c/kg DM eaten 9.8 13.1 9.9 11.2 - - 10.6 13.6

GFI c/kg pot DM 11.6 12.8 13.0 14.7 - - 13.0 16.3

GFI c/kg DM eaten 14.7 18.6 14.8 16.2 - - 15.2 18.3

FE /ha 574 599 - 550 461 472 634 533

FE /SU 66.3 61.6 - - 50.9 46.7 61.4 49.4

FE % GFI 65% 61% - 55% 60% 46% - -

3.14 3.94 - 2.04 - - 3.04 2.32

% Maintenance P applied 2% 19% - - 64% 71% - -

% Maintenance S applied 3% 120% - - 87% 105% - -

Labour % GFI 12% 11% - - 16% 12% - -

Prepared by: Ben Harker, Farm Management

Consultant, AgFirst Pastoral

Cost of production c/kg of

product

0

200

400

600

800

1000

1200

2011 2012 Projected 2013 Target AgFirst AA* Av AgFirst AA* Top 10%

GFI

FWE

EFS

Discussion points

Is the gross farm income target and operating cost targets a little too

conservative? Our 3 year target base Farmax model suggests $1266 gross

farm income per hectare and our budgeting suggests $650 per hectare is

achievable.

Should we be targeting $1100-1200 gross farm income per hectare and

operating costs of $650 per hectare?

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2011 Benchmarks

Expenditure / SU 2011 2012

AgFirst AA

Av

AgFirst AA

Top 10%

Wages Total 12.32 11.61 13.39 12.04

Animal Health 5.43 4.89 3.55 2.96

Electricity 0.72 0.64 0.67 0.59

Freight 0.79 1.34 0.83 0.69

Stock Food 8.23 11.84 3.31 1.55

Shearing/ssu 9.41 5.84 6.82 6.73

General 0.70 0.70 1.51 1.29

Total 34.23 32.98 24.46 22.18

Vehicle Expenses 4.36 4.00 2.67 2.66

Repair & Maintenance

Fertiliser 1.80 3.88 6.06 6.77

Fencing 6.27 3.68 2.32 1.40

Tracks & Dams 1.92 0.20 1.36 0.75

Buildings 0.16 0.68 1.05 0.83

Other 6.82 1.31 2.24 2.15

Total R & M 19.47 9.76 13.03 11.91

Standing Charges

Insurance 0.85 2.03 0.62 0.60

Rates 4.16 3.80 1.74 1.61

Other 0.61 0.00 0.05 0.01

Total Standing Charges 5.63 5.83 2.42 2.22

Administration Expenses

Total Administration 2.89 2.01 2.78 3.16

Depreciation 2.30 5.94 3.19 4.07

Enterprise Income2011 Benchmarks

2011 2012

Projected

2013 Target

AgFirst AA

Av

AgFirst AA

Top 10% Fmx Av

Fmx

Top20%

Sheep

Sheep & Wool Income $/ssu $92 $99 $100 $119 - -

Total Sheep Income c/kg DM eaten 14.8 20.5 15.9 15.7 16.7 19.8

Total Sheep Income $/ha $514 $589 - - 484 615

Cattle

Cattle Income $/csu $66.25 $62.63 $64.16 $74.05 - -

Cattle Income c/kg DM eaten 9.7 9.8 14.2 14.1 12.9 16.3

Cattle Income $/ha $290 $281 - - 364 451

Deer

Deer & Velvet Income $/ d.s.u. $83 $86 $75 $97 - -

Deer & Velvet Income c/kg DM eaten 14.8 14.4 13.5 18.6 14.1 17.9

Deer & Velvet Income $/ha $186 $376 - - - -

Gross margin (c/kg DM)

Sheep 11.3 16.5 14.4 11.8 - (Breeding) 12.5* 16.3*

Out of Season Sheep 11.7 24.8 1.0 15.1 - - -

Sheep Grazing 22.7 - - - 15.2 23.5

Beef 7.7 7.3 9.5 11.1 - 8.9* 15.0*

Grazing Cattle 9.1 - 6.3 - - - 15.3 26.0

Deer 12.4 10.6 9.8 13.6 - - 8.4 -

Bulls 21.1 13.5 - - 12 19

Stag finishing Clive Grange 14.7 23.5 - - - -

Lamb finishing Clive Grange 18.7 23.0 - - 18 34

Steer finishing Clive Grange 6.4 8.1 - - - -

* Breeding stock benchmark

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AV Pasture cover trend graph AV Pasture growth trend graph

Supply/Demand 11/12

Production stats

WHOLE FARM 2011 Benchmarks

2011 2012

Projected

2013 Target

AgFirst AA

Av

AgFirst AA

Top 10% Fmx Av

Fmx

Top20%

Effective area 1157 1177 1395 1395 1127 1236 1021 597

Paddock numbers 189 198 236 303 83 98 - -

Average paddock size 6.1 5.9 5.9 4.6 14.0 13.0 - -

Stocking rate su/effective ha 8.6 9.7 - - 9.1 10.1 - -

Standardised stocking rate su/effective ha 11.1 9.6 12.2 14.2 - - 10.2 11.7

liveweight wintered/ effective ha 565 583 527 791 - - 615 675

Sheep:Cattle:Deer

% of feed demand 62:20:18 64:15:21 50:31:20 50:25:25

% of income 58:07:20 63:07:21 51:29:20 47:23:29

Kg product/ha 183 152 217 270 - - 195 244

Conversion efficeincy 32.3 36.0 30.9 29 - - 29.5 26.7

Potential pasture production (tDM/ha) 7.6 7.7 8.03 8.6 - - 6.91 7.72

Pasture losses 21% 29% 21% 15-22% - - 21% 20%

N boosts (tDM/ha) 0 0 0 0 - - 0.11 0.19

Total Supply (tDM/ha) 6.5 6.3 7.4 8.4 - - - -

Total feed eaten (tDM/ha) 6.0 5.3 7.4 8.3 - - 5.62 6.46

J A S O N D J F M A M J

5

10

15

20

25

30

35

kgD

M/h

a/d

(gra

zin

g a

rea)

Supply Demand

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Stock performance

2011 Benchmarks

2011 2012

Projected

2013 Target

AgFirst AA

Av

AgFirst AA

Top 10% Fmx Av

Fmx

Top20%

Sheep 29 32 28 28 - - 32 28

Out of Season Sheep 39 25 158 27 - -

Sheep Grazing 21 - - -

Beef 37 38 36 34 - - 35 26

Grazing Cattle 17 - 21 -

Deer 61 55 53 46 - - 52 -

Bulls - - 17 17 20.9 19.6

Stag finishing Clive Grange - - 21 22

Lamb finishing Clive Grange - - 23 18 21.6 17.6

Steer finishing Clive Grange - - 26 26

Sheep

Lambing % (ewes only) 109% 108% 116% 140% 127% 133% 127% 146%

Hogget lambing % 0% 36% 55% 56% 61% 77% 49% 59%

Hogget contr. to lambing 0% 11% - - 4% 4% - -

Total lambs/Ewes wintered 109% 119% - - 130% 137% - -

Death,Missing & Killers % 6.4% 6.1% 7.7% 8.0% 4.6% 4.6% - -

2 Tooth Replacement % 18% 20% 25% 25% 24% 29% - -

Ewes To Ram 61 51 - - 77 84 - -

Conventional ewes

Average pre wean GR 222 238 226 270 - - 252 253

Scan index 2.46 2.76 - 2.9 - - 2.8 3

Weaning % 112 127 127 140 - - 127% 146%

Ewe efficiency 43.2 56.6 54.8 64% - - 54 59

Tupping body weight 65 58 55 65 - - 59.9 61

Average birth date 8-Sep 8-Sep 14-Sep 9-Sep - - 7-Sep 16-Sep

Losses scanning to tailing 28.0% 20.4% 20.5% 22.0% - - 26.0% 24.0%

Losses tailing to weaning 2.5% 1.2% 3.8% 3.0% - - 3.2% 2.8%

Out of season breeders

Average pre wean GR 246 236 180 395 - - - -

Scan index 2.14 1.66 2.71 2.2 - - - -

Weaning % 85 99.3 138.9 102 - - - -

Ewe efficiency 36.3 42.3 44.1 68.9 - - - -

Tupping body weight 64.1 62.4 66.9 60.4 - - - -

Losses scanning to tailing 36.0% - 19.9% 19.8% - - - -

Losses tailing to weaning 2.9% - 4.3% 4.4% - - - -

Cattle

Calving Percentage % 80 89% 89% 84% 85% 88% 88% 90%

Death & Missing % 3.2% 4.4% 6.0% 2.3% 2.1% 1.9% - -

Average pre wean growth (kg/day) 1.05 0.96 1.03 1 - - 1.07 1.1

200-day weaning weight 238 220 234 220 - - 244 252

Cow efficiency 35 39 37 37 - - 42.4 43.3

Average birth date 27-Sep 3-Oct 10-Oct 14-Sep - - 3-Oct 15-Sep

Losses 1st July to weaning 20.3% 9.3% 9.9% 11.0% - - 12.0% 10.0%

Av steer growth (kg/day) Anawai 0.60 0.59 - - - - -

Clive grange 0.13 0.59 0.68 0.6

Deer

Fawning Percentage % 73% 60% 80% 80% 83% 80% 79% -

Scanning % - 87% 98%

Deer Losses % 6.4% 4.4% 3.2% 4.3% - - - -

Velvet Weight Kg/hd 7 5.7 - - 3.7 18.6 - -

Average pre wean growth (g/day) 363 331 328 380 - - 336 -

Hind efficiency 67.3 62 37.1 37.3 - - 35 -

Av stag growth (g/day) Clive Grange 180 200 190 220

Conversion Efficiency kgDM/ kg product

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Glossary of terms

* AgFirst Accounts Analysis (AA) Gisborne region

GFI (Gross farm Income) = Sales - purchases + change in capital value

EFS (Economic farm surplus) = gross farm income -

GM (Gross Margin) = Gross farm income - interest on capital - standardised stock costs (grazing, animal health, shearing, velveting, transport)

c/kgDM = cents per kg of total dry mater eaten

Kg product/ha = kg of carcass, wool and velvet per hectare

Scan index = kg lamb weaned per kg ewe mated

Lambing% = weaned lambs over sheep mated

Calving% = weaned calves over cows wintered

Fawning% = weaned fawns over hinds wintered

Conversion efficiency = dry matter intake devided by total production of wool, carcass and velvet

Ewe/cow efficiency = kg of lamb/calf weaned per kg of ewe mated

Hind efficiency = kg of fawn weaned per kg of hind at weaning

SU (stock units) = 1st July stock units

Standardised stocking rate = total stock demand divided by 550 kgDM/SU

Liveweight wintered = liveweight at the 1st of July based on effective area

Deaths and missing = deaths and missing numbers over opening numbers

Pot DM (potential dry matter) = Is the pasture production that would have occurred if the optimum pasture height had been achieved through

the year plus or minus any change in pasture cover from the start to the end of the year

DM eaten (dry matter eaten) = total animal intake derived from pasture cover levels, potential pasture production, pasture losses and animal

performance

FE (Total Farm expenses) = Labour + R&M (maintenance fertiliser + maintenance fencing + tracks and dams + buildings + other) + standing

charges (insurance + rates + other) + vehicle expenditure + shearing costs + feed costs (crops and supplements) + animal Health + ACC +

electricity; and excludes any capital development expenditure

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Thank you to Progressive Meats Ltd and Lean Meats Ltd for putting on the BBQ and catering

Sponsors

We are looking forward to having the New Zealand Deer Farmers Association on board subject to

completion of the memorandum of understanding, which currently sits in Mark Harris of Beef + Lamb

New Zealands court.

Health and Safety – The Owners have taken all reasonable care in making you visit to the property as

safe as possible. They clearly point out that you enter the property at your own risk. The Owners will

accept no responsibility for any incident or injury to any person or property that takes place while

you are visiting the property.

NOTE: B+LNZ requires all employees to wear helmets on quad bikes, we recommend that farmers

wear helmets too. Your decision to not wear a helmet is entirely your responsibility