To counter this problem Horizon has spread its farms across the region from Woodville to Havelock North, and spread its lambing across three months.
Horizon Farming’s general manager Stuart Ellingham, left, and Taurapa farm manager Hayden Rees-Jones, with Ocean Beach in the background.
The six farms run 16,000 ewes, producing 22,000-24,000 lambs on the ground. Of this number 16,000 lambs were supplied to Progressive Meats in the past year.
Some lambs were sold store before Christmas and replacement lambs are also kept. During autumn and winter they trade lambs, this past year trading 5000.
“Our aim is to finish everything we breed,” Stuart says.
Lambing is stretched out, starting on Horizon’s Havelock North farm on August 1.
The last lambs born are from hoggets at Longrange in Central Hawke’s Bay that start lambing on September 25.
Genetics are the same across the company. They use a composite maternal sheep – the Highlander from Focus Genetics and Rob Forsyth’s Perendale Finn-Texel cross rams.
Two of the farms – Longrange at Omakere, and Ratahiwi at Woodville – are for breeding replacements while the remainder of the ewes are mated to Primera terminal sires from Focus Genetics.
When buying in trading lambs Horizon prefers to source genetics similar to their own, Stuart says.
“We have a relationship with a couple of stock agents who we know will source us the lambs we want and we monitor the lambs’ performance and repeat-buy if they perform.”
There are no fancy finishing forages such as plantain, lucerne, summer brassicas or chicory grown for the lambs, just grass and clover.
“Our philosophy is around profit. I am not convinced that these new forages are as profitable as everyone thinks,” Stuart says.
“People are getting too hung up on production and don’t think about profit. They don’t correctly cost out what a crop costs them. Most of the numbers I see do not have the annual costs of replacing the crop.”
And it’s difficult to get persistence with new forages on the east coast of Hawke’s Bay, he says.
“Hence we are keeping it simple and trying to do the basics as well as we can. We have tried brassicas and we have done the numbers. The risks around brassicas are just too high. I think they have a place in the right environment, just not ours.”
The Horizon regrassing technique is a double spray, a summer fallow and autumn regrassing. They use a lot of Base permanent ryegrass and clovers and expect to get five years from a new pasture. They grow 50-60ha of winter kale crops on their colder land. The kale is used for wintering bulls on their farms against the Ruahine Ranges.
Cattle make up 44% of the stock units across the farming business. The cattle policy is based around a herd of 600-700 Stabiliser cows.
All male progeny are steered and finished, and female progeny either used for replacements or sold store. There are two bull operations where 100kg calves are bought in and most finished at 20 months, with the remainder transferred and finished over the second spring at the Havelock North block.
Each year 550 bulls are finished. Another 1500 cattle are traded across the whole business.
“We keep the policy simple. We
target out of season supply on a lot of
our steers, killing pre-Christmas which fits the pasture growth curve,” Stuart says. Their farming policies are about matching their pasture growth rates.
The farm managers measure pasture covers and do a monthly feed budget that is constantly updated over the month.
Stuart says the strength of the business, with its very flat structure, is their
people.
“We have excellent, very focused people with a large attention to detail. They have a plan in front of them and know what they are trying to achieve and they are focused on that.”
Similarly, the animal health programme is kept simple.
“We do a lot of testing so we know where we stand and we have a good partnership with our vets.”
And a note to fertiliser salespeople: don’t even bother going up Stuart’s driveway to sell anything purporting to be fertiliser.
“I have a science-based view on fertiliser – I am a great fan of Doug Edmeades.”
Every two years they soil test using transect lines and engage Ballance to supply their fertiliser. On the environmental front Stuart describes their approach as proactive.
“We’ve planted a wetland at Longrange and have another massive one to do next year. We have three properties with six areas of bush in total protected with QEII National Trust covenants.
“We’re fencing off a lot of waterways and working with the regional council wherever we can.”
They are also involved in the Cape to City project at their leased farm Taurapa, near Havelock North.
Stuart puts the financials and production data from each individual farm into Baker & Associates’ Financial Analysis Bureau each year.
This is a benchmarking database where data from sheep and beef farms is analysed to provide physical and financial benchmarks in the form of key performance indicators.
He says these figures for economic farm surplus targets are the “go to” figures.
“We know where we are and we
target to be in the top 10% of the numbers. It is one of the measures I give my board to show we are competitive and it also gives us an independent view of the business.”
They aim to scan from 175 to 180%, and dock 140% and more across the board. Currently they are at the 136 to 137% level for docking. The culling rate is below 15%, and they aim to keep sheep death rates below 7%.
Stuart got a real kick out of the company’s win, which included $500 and a trophy.
“One of the shepherds came up to me afterwards and said it worked out at $33 each.
“If you think about where this business was and where it has come in five years, it is a real credit to all the people in the business. Everyone has worked very hard and it validates what we do.”
The right stuff
Horizon Farming targets good people and pays them well.
“We look after them well and they tend to stay. We value their input, give them a platform to put their opinions forward and they are listened to,” general manager Stuart Ellingham says.
He does all his own recruitment and everyone on the payroll has a job review each year. Seven of his staff have been with the company for seven years or more.
“We focus on developing all our staff and looking after them and treating them well.
“I think the strategies we have set-up have been right and people we have used have been right. Our decisions are based around low risk, keeping it simple and keeping it profitable,” Stuart says.
