September 2017

Some of you will have noticed we have received the new bags and while the quality of the print isn’t at the usual high standard, the quality of the cloth is much better. In past years we have had a number of damaged bags and it’s very frustrating when you fill a bag, weigh it, sew it and only when you stack it onto the pallet you find it has cuts in it. So far there has been hardly any damaged bags which makes the baggers job easier and quicker. By using bags made in China we save over $10 per tonne.

After the arrival of a new line of peas last month some whole peas ended up in the calf meal. The issue being the new peas were harder and the crusher had to be tightened up, this wasn’t noticed until after a couple of tonne of calf meal had been made. What surprised me was that the young calves left the whole peas in the feed trough while eating everything else, maybe they also found them a bit hard to break.

We used to have a small sign saying Aoraki Stockfoods at the road side gate. Unfortunately, it blew down a couple of years ago, and erecting a new one at the gate is still on the ‘to do’ list. This year it has been more noticeable that a number of new customers have been unsure of where to go, luckily, we are the only place on Wilsons Road so they don’t have many options.

One of the ingredients often overlooked when growing calves is calcium. We include lime in our calf meal to supply calcium. We use over 50 tonne of lime per season, getting it delivered in bulk before tipping it into boxes from which Shona weighs and buckets it into the mixer. Calcium is required by the calf for bone and skeletal development as well as playing a role in muscle function. Early skeletal development is important as this forms the frame work for the calf to achieve the correct body conformation and structure, calcium is especially vital for heifer replacements.

Prices remain the same for the start of September, we will be doing a price review later in the month and at this stage upward movement in price appears inevitable. Grain prices are currently up by at least $50 per tonne. Though there is some thought in the industry that the prices have now peaked, and the alternatives to grain for older animals - PKE, Soy Hulls, DDGS, and Sunflower Pellets are becoming more cost effective.

Calf Meal prices effective from July 1 2017

High Octane Aoraki Calf Meal 40 x 25kg: $656 + GST ex Feedmill
Low Protein Aoraki Calf Meal 40 x 25kg: $624 + GST ex Feedmill

In the first newsletter for the season I talked about there being reasons for my no show in the off season. One of the reasons is my involvement in a commercial property development in Washdyke, Timaru. During the last 5 years I have been Board Chairman for a group of shareholders who own nearly 3 hectares of commercial land opposite the Pleasant Point turn off on SH1. In 2013 we tried a big box development for the whole site however for various reasons it didn’t get off the ground. For the last couple of years, we have had a change of focus in trying to just redevelop the front part first. It has been a long, slow, arduous journey with plenty of highs and lows along the way. However, we have finally got all the required consents and building is underway. Our anchor tenant will be Robert Harris and although building only started in recent weeks the aim is to have Robert Harris open by the end of November. This timeline is challenging to say the least however most of us like a challenge, otherwise we wouldn’t be farming.