| 91 Too dependent on overseas pricing structures Hugh de Lacy The big challenge facing New Zealand arable farmers is to develop more exports whose prices are determined by the cost of producing them here, not by Northern Hemisphere seed companies using our farmers as off-season seed producers, according to Steven Bierama, the chairman of the Foundation for Arable Farming (FAR). Steven, says arable farmers are too dependent on overseas pricing structures, and need to develop marketing systems whose prices reflect New Zealand costs rather than those of the importing countries, dominated by Europe and the United States. Steven, together with son Pieter Taco and wife Freda farms Somerton Farm, a 700ha arable property on Thompsons Track, Rakaia. The farm produces wheat, barley clover and grass seeds, along with peas, and leases out land for potatoes and lily bulbs. It also grows maize while winer-grazing cows and trading store lambs. “Arable farming - the production of grain, seed and other crops - is worth $2.1 billion annually to the New Zealand economy, but its performance tends to fly under the radar,” Steven says. “A great deal of our production is based around providing seeds for Northern Hemisphere companies, and we’re subject to the prices they offer. FAR is an arable farming research organisation based at Templeton, south of Christchurch, with a staff of 40, and other research centres in Southland and Hamilton. Formed in 1995 under the Commodity Levy legislation, FAR’s primary role is the funding of research and technology transfer. About 40% of the country’s arable production is exported, bringing in $380 million a year, while local production is worth about a billion dollars, and is intricately integrated with other forms of farming, from dairying, sheep and beef to horticulture and viticulture. “Domestic production is mainly of cereals and grass seed, all of them being commodity products, but in the export market we’re just seed-producers and don’t have a lot of ownership once the products leave the country,” Steven says. “Overseas the seed business is controlled by European and American companies, so our profits are decided outside the country, and it’s that factor the FAR is committed to changing.” Currently New Zealand produces 60% of the world’s radish seed, half the white clover seed and ON FARM » Somerton Station Steven, together with son Pieter Taco and wife Freda farms Somerton Farm, a 700ha arable property on Thompsons Track, Rakaia. 40% of carrot seed, totalling 85,000 tonnes of herbage and vegetable seeds - and 800,000t of grain. The arable industry has 180,000ha of land devoted to it between Cape Reinga and Bluff, comprising 2500 farms employing more than 11,000 people. “As such it’s a vital but largely unsung element in the national economy, and as chairman of FAR it’s my responsibility to see if we can raise its profile to reflect its contribution. Smith Seeds are proud to support Somerton Station 10 JB Cullen Drive, Ashburton Steve 0272415973 Jo 027 336 3932 Wayne 0272474999 Brad 027 900 0410 EXTENSIVELY TESTED, WORLD LEADING CEREALSEED to adding value at the ground level through tailored solutions unique to your farming operations. Discover our award winning range. “To do that we need New Zealanders to have more control of the varieties, especially of seed, that they produce so they can control their own destiny,” Steven says. FAR is funded by levies of mostly about 0.9% of the commodity’s sale value, with the money being collected at the first point of sale for all grain and seed. The farm produces wheat, barley clover and grass seeds, along with peas, and leases out land for potatoes and lily bulbs.
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