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This factsheet describes the key things you'll need to think about if you're considering growing wheat on your whenua. It includes:
- whenua requirements, like drainage, slope, fertility
- climate requirements, like temperature and rainfall
- management requirements, like when to plant and harvest, and how to treat pests
- economic information, like operational costs, workers required, potential profit
- compliance information, like legislation and levies to be paid.
You can use this information to help inform conversations with whānau or consultants. However, you will still need to do further due-dilgence from a qualified advisor before making land use decisions. They can help you understand:
- what works best given the natural characteristics of your whenua, along with your local climate
- how to work sustainably with your whenua, and
- what to do next.
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About this factsheet
The information in this factsheet is based on research conducted by the National Science Challenge, Our Land & Water funded programme Whitiwhiti Ora in 2022 and 2023, and includes land data from a range of sources. The economic data is based on data from a case study in Canterbury, Te Wai Pounamu and is current to June 2023. If your whenua is in a different part of the country, your numbers might vary.
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You will need to consider the characteristics of your whenua if you're thinking about growing wheat. These include:
- soil drainage
- slope
- soil fertility
- soil depth
- temperature
- rainfall.
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Drainage
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Wheat grows best in deep, well-drained, fertile soils. The soil should not be prone to waterlogging and have good nutrient retention. We recommend soils with few stones - less than 5%.
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Slope
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Growing wheat is suited to flat or very gently rolling whenua. This is to help with the access and operation of large machinery. Recommend 3-7degrees slope to reduce risk of erosion and meet machinery requirements.
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Depth
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Wheat needs a soil depth of at least 100cm to grow well. Their seminal root system absorbs nutrients and water from deep in the soil layers, and their nodal root system draws from the upper soil layers for nutrients and water in the later growth stages.
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Fertility
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For good wheat growth and grain yields, various nutrients are required. This includes:
- Phosphorus - to stimulate root growth.
- Potassium and sulphur - to contribute to the grain yield and quality.
- Nitrogen - carefully managed to achieve high yields and quality.
- Boron, iron, magnesium, and zinc - in smaller quantities to produce premium grain.
It's important to test your soils before planting your crop. Many companies offer this service. This will help you understand the current fertility of your block and nutrient requirements.
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Climate
Wheat doesn't like to be wet and needs hot dry temperatures for the grain to form and to grow.
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Temperature
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In Aotearoa, wheat is planted in either autumn or spring. Autumn wheat needs cold temperatures for flowering to occur and for grain to form (vernalisation). Both autumn and spring wheat need temperatures within 15 - 23°C to mature and dry the grain. Wheat requires GDD greater than 1000, no frost (less than 0°C) 15-Sep to 15-Nov. Heat stress may occur during flowering. There needs to be no more than 3 sequential days with temperatures greater than 25°C from 1-Nov to 31-Dec.
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Rainfall
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Wheat needs an average annual rainfall of 800 - 1000mm. Too much rain can lead to rot and too little rain can affect the growth of plant shoots and grain production.
Wheat needs regular rainfall throughout the growing season and dry period after the grain has matured.
If you're thinking about growing wheat on your whenua, check the rainfall and rain intensity in your region. This is important while your wheat is growing and before harvesting.
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Wheat needs to be managed throughout its lifecycle. You will need to consider the following if you are thinking about growing wheat on your whenua:
- planning - what species of wheat to plant and when
- planting and maintenance
- harvesting
- storage
- managing pests and diseases
- environmental risks and impacts.
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Planning
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Wheat is an annual crop, meaning you will get one crop over a 12 month period.
When planning to plant wheat, you will need to consider your geographic location and the types of wheat suited to this location and your intended market. Different varieties of wheat will grow better in the North and South Island due to the climate. For advice on what types of wheat suit your whenua, talk to your local seed merchant.
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Planting and maintenance
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You will need machinery to prepare your whenua for planting wheat.
Wheat seeds germinate when the temperature and moisture conditions on your whenua are favourable. In Aotearoa, this can be anytime between March - October depending on what variety of wheat you are growing.
Your crop will grow for 4 - 6 months before it's ready to be harvested (December - February). When the plant starts dying and the grain has dried out sufficiently, harvesting can begin.
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Harvesting
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Harvesting wheat is done using large machinery called a combine harvester. This process is usually contracted out.
After harvesting the wheat plant from the ground, the grain is separated from the chaff which will be left out to dry on top of whenua. The grain is then transported by truck to either a silo on farm or the mill where it is processed.
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Storage
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After harvesting your wheat, the storage of your crop is very important. This ensures your crop doesn't start sprouting or going mouldy and can get to international and domestic markets in the best possible quality.
The mill will take a test sample of your crop to determine moisture levels and protein. Your wheat crop will then be unloaded into bulk silos and stored until they are ready to mill. A cool store may hold your milled wheat for longer periods until it is distributed to market.
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Managing pests and diseases
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Wheat can be affected by fungal diseases and pests like rust and aphids. You will need to consider using pest management methods, such as:
- counting the number and species of pests weekly
- monitoring crops to assess plant health
- making the environment attractive to insects that can eat pests
- targeted use of fungicides and pesticides.
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Turning a profit from growing wheat can be affected by many factors. If you are considering growing wheat, you will need to think about:
- the industry - like The New Zealand Grain & Seed Trade Association Inc. (NZGSTA), Foundation for Arable Research (FAR), and the export market
- requirements - like scale, jobs, equipment, and infrastructure
- costs - like variable costs and production costs
- returns - like yield and operating profit.
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The industry
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In 2022, New Zealand grew about 100,000 tonnes of milling wheat and about 250,000 tonnes of feed wheat for stock. Even though there is potential to increase the amount of wheat grown in the South Island to meet the needs of the North Island, transport is so expensive that it is cheaper to import it from Australia. So, some 70 percent of the wheat used in flour production in New Zealand is imported, mainly from Australia.
New Zealand Grain and Feed Market Situation
The New Zealand Grain & Seed Trade Association Inc. (NZGSTA)
The New Zealand Grain & Seed Trade Association Inc. (NZGSTA) represents 80 members engaged in the grain and/or seed trade in New Zealand. Members of this association pay an annual subscription that is based on their revenue. Collective benefits to members include access to research and development, marketing, processing and distribution networks, advice, and support services.
New Zealand Grain & Seed Trade Association Inc
Foundation for Arable Research (FAR)
The Foundation for Arable Research (FAR) leads research and development for arable crops including wheat. For example, in 2021, FAR undertook a project funded through the MPI Sustainable Food and Fibre Futures fund, to assess the opportunity for farmers to supply the growing local demand for high-end durum wheat flour. Currently, most of the high-quality wheat used in New Zealand is imported from Australia where it can be grown more cheaply and on a larger scale.
Read more about locally grown durum wheat could lead to a new industry in pastas and breads.
United Wheatgrowers (NZ) Ltd
United Wheatgrowers (NZ) Ltd is a wheat grower-driven organisation whose main activity is managing a disaster relief insurance scheme for all wheat growers and administering a Quality Assurance Scheme.
United Wheatgrowers (NZ) Ltd also works co-operatively with The Grains Section of Federated Farmers of New Zealand and together have confronted and successfully challenged many issues relating to the business of wheat growing over the last 30 years.
Federated Farmers Arable
Federated Farmers Arable focuses on developing sensible policies to influence local, regional, and central Government, wider industry, and community groups. They include things like biosecurity, fire permits, seed certification, review of the Plant Variety Rights Act, and promotion of the arable industry. Members of Federated Farmers New Zealand pay an annual subscription based on the size of their farm and role in the industry (for example, farm owner, contract or share milker, farm manager, etc).
Export market
New Zealand has a very small feed and grain export industry. New Zealand produces approximately 296,000 tonnes of feed wheat for animal consumption, and 81,000 tonnes of milling wheat used domestically. The core focus is on providing wheat for the local market.
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Requirements
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Scale
Wheat can return a profit from a small or large-scale enterprise. Turning a profit from growing wheat depends on several factors, like:
- your location - access to the market, or infrastructure
- your production practices - modern machinery and equipment or smaller scale efficiencies
- the market demand and access to the market
- your operational efficiencies - larger farms may benefit from economies of scale.
Equipment and infrastructure
There are various tools and equipment needed for growing and harvesting wheat. These include:
- tractors and other field machinery, for example, combine harvesters
- ploughs
- bins
- silos
- transport
- seeders
- drying systems
- cultivators, and
- irrigation systems are seen as key to maintaining yield.
It's estimated that you'll need to grow at least 5 hectares of wheat to offset the costs of setup and management of the crop. Contractors could be used to undertake the sowing, tillage, and harvesting if you are farming on a smaller scale.
After harvesting your crop, there are specific requirements around the storage and conditioning of grain. Proactive farmers have invested in on-farm drying systems for drying grain and seed crops harvested in high-humidity weather. Seeds with high moisture levels will spoil during storage.
Jobs and people
Your people and labour requirements are seasonal, based on key milestones, like planting. You'll need a mixture of unskilled labour, as well as specialists. The specialists will help you with:
- managing the crop cycle,
- pest management techniques,
- harvesting and,
- post-harvest management.
The peak demand for labour and specialists by wheat farmers is during planting and harvesting times. Contractors may be used.
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Costs and returns case study
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Case study - Canterbury Wheat Farm
Here is an example of a wheat farm in Canterbury, let's imagine it had 10 hectares of milling wheat grown last year.
It yielded 87 tonnes of wheat, bringing in a revenue of $52,200.
It had $30,000 in expenses, and the farm made a profit of $22,200.
It took 7-8 months for the wheat to be ready for harvest and then sold (time to commercial yield).
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Costs
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Operational costs
The estimated operational costs to grow wheat are around $3,000 per hectare per year. This depends on factors, like:
- scale of the operation
- level of mechanisation
- specific farming practices
- regional and locational factors
- market conditions.
Labour costs can be significant, especially when you're first setting up your farm. Some other examples of costs that you'll need to consider are:
- seeds or sets
- fertilisers
- pesticides and herbicides
- agrochemicals for wheat cultivation
- skilled and unskilled labour
- permits, licenses, or certifications
- compliance with regulations and food safety standards.
Costs to consider
There are some costs you will need to consider, and these will change wth the amount produced. Here are some examples:
Type of cost
Variable factors
Wheat seeds for planting
Wheat variety, quality, and quantity
Fertilisers and soil amendments
Quantity and type of fertiliser
Pest and disease management
Control measures and treatment
Irrigation
- Water usage fees
- energy costs for pumping water
- maintenance and repairs
- additional infrastructure
Labour
Wages, benefits and labour requirements at different stages of production
Harvesting and packaging
- Labour costs
- packaging materials
- grading
- sorting
- packaging
Storage
- Electricity or cooling costs
- monitoring equipment
- post-harvest handling and storage
Marketing and distribution
- Transportation
- packaging
- promotional materials
- marketing channels like wholesalers of vendors
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Returns
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Yield (and time to profit)
Maximising the amount of good quality wheat grown will increase the profits you earn. You will need to secure a pricing contract for your crop before you sow. The prices paid to growers per tonne vary between years and according to your location. For example, in November 2023, the Ruralco Seed Team is paying Canterbury growers $435 per tonne for feed wheat and $600 per tonne for milling wheat.
Factors that can contribute to higher wheat yields include:
- crop management
- variety selection
- planting density
- nutrient management
- weed control
- harvesting at the right time.
Read more the Grain Report from Ruralco Seed team.
Revenue
Returns from wheat farming are influenced by a variety of factors, including:
- market conditions
- yield
- quality
- production costs
- pricing strategies
- events beyond your control, for example weather conditions or market fluctuations.
Things that can create better returns include:
- efficient practices to maximise yield and production.
- market demand and pricing
- quality and grading
- Cost management
- Storage and post-harvest handling
- Value-added opportunities
To help you make informed decisions and maximise returns, it's important for you to:
- stay informed about market trends through research.
- maintain good relationships with buyers.
- regularly assess your farm's production and financial performance through tracking costs.
Operating profit
To estimate your operating profit, you'll need to look at the amount of money generated from selling your wheat, minus your production costs. Some factors may affect your revenue and influence your farm's operating profit. These include:
- farm size or the size of your wheat crop area
- yield - the quantity of wheat sold
- market conditions and fluctuations
- production costs and efficient farming practices
- pricing strategies
- weather conditions.
You will need to consider your production costs, which can include:
- labour
- seed costs
- fertilisers
- irrigation
- pest and disease management
- machinery maintenance
- storage
- packaging
- marketing costs.
These costs can be affected by having efficient farming practices and effective cost management.
Each farm will have factors specific to them and different market dynamics. Keeping accurate records of your production and financial records can help you see where improvements could be made and increase your operating profit.
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Using this information safely
You should talk to agricultural experts, industry associations, and experienced wheat growers in your region to get:
- more precise information and insights tailored to local conditions and market dynamics, like expected wheat yields
- valuable guidance on the optimal property size and practical advice based on their experiences
help analysing your financials and assess a timeline of when your farm may be profitable.
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You will be producing wheat for the domestic market. Some certifications and registrations may make your wheat more appealing to buyers.
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Quality Assured New Zealand Grain (QAgrainz)
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The New Zealand Crop Quality Assurance Scheme, branded QAgrainz, requires growers to register with the administrator and commit to keeping relevant traceability information for auditors. This information can be kept in any form but must detail the activities that have taken place in the crop production. Growers are required to fill out an application form, binding them to the conditions of the scheme, and pay $250 + GST to obtain a QAgrainz number.
Quality Assured New Zealand Grain
Organic wheat production will enable you to supply a high-value market. For example, NZ BioGrains Ltd (Ashburton) is certified by Bio-Gro as producing organic products.
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Food Act 2014
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You must comply with National Programme 1 requirements under the Food Act 2014. This includes:
- following safe food practices, like checking for pests and using clean water
- registering your business with either your local council or MPI
- getting your business verified.
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Resource Management Plan 1991
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You will need a freshwater farm plan, either now or by 2025 if your whenua will have:
- 20 hectares or more of arable and/or pastoral use, or
- 5 hectares or more of horticultural use, or
- 20 hectares or more of combined uses.
These plans identify actions to manage and mitigate risks of on-farm activity to freshwater. They must be certified and audited, then recertified every 5 years.
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Certifications and registrations
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You can choose to get certified with New Zealand Good Agricultural Practice (NZGAP) for a yearly fee. Some retailers and wholesalers only take crops from an NZGAP-certified supply channel.
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Here are some resources for further reading.
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Data sources
Here are the data sources that helped to create this factsheet.
Data source
Format
Provider
Webpage
Fronteirs
Webpage
NZ Flour Millers Association
Webpage
EOS Data Analytics
Webpage
Kialla Pure Organics
Webpage
ECOCROP
PDF
Specseed
Webpage
The Foundation for Arable Research (FAR)
PDF
PGG Wrightson
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