MANAGEMENT
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RURALNEWS
ANIMAL HEALTH Gong for animal ethics research
PAGE 32
TO ALL FARMERS, FOR ALL FARMERS
DECEMBER 2, 2014: ISSUE 574
www.ruralnews.co.nz
Time to get realistic P E T E R BU R K E peterb@ruralnews.co.nz
THERE MUST be realistic expectations about what can be done to improve the environment, warns a local government leader. Taranaki Regional Council’s director of environment quality Gary Bedford says public expectations, especially in large urban areas, are getting ahead of the science and a degree of realism needs to be taken. Bedford says for many reasons, including some election slogans, it seems easy for people to think, ‘Yes we must have a clean environment where we can swim in the rivers every day and the sun will always shine and there will be no pollution’. “But the reality is that those expecta-
tions come with a cost in the real world if you want to achieve them. They also require an understanding of processes in the real world and the techniques, methods, science and engineering that’s required to deliver these. Currently, we have the expectations running ahead of what can be delivered for a sensible cost.” Bedford says policy development in New Zealand today appropriately allows
for a great deal of public participation. But there is a downside: not everyone is fully informed and often the public don’t understand the implications of what they are demanding. “So if you have councils developing policies based on what people want, that policy development or those expectations can run ahead of what the real world can deliver in science and engineering. So be careful about what you
wish for, you may get it.” In all this the internet is a “doubled edged sword”, Bedford says. It’s very easy for a group to whip up a campaign on social media without getting the facts right. “The ability to communicate more widely and more speedily is all good stuff, but also it means disinformation and poor information can be spread.” @rural_news
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GUY AT THE MOVIES Primary Industries Minister Nathan Guy last week visited the plush Roxy cinema in Wellington, where he outlined a three-year push to double primary sector exports by 2025. The event was a meeting of the agribusiness ‘boot camp’ group. The halls of the cinema were decked out with posters of famous and not-sofamous movies. Details about the day on pages 6-7.
No silver bullet! FARMERS WILL support any agreement between meat processors on a moratorium on new plants, says Beef + Lamb NZ chairman James Parsons. However, Parsons says the agreement must be backed by a large majority of the processors and be beneficial to farmers. He confirmed support for a June discussion document that proposes a 12-year moratorium on new beef and sheep processing chains, including expansion of existing plants. BLNZ has not taken a position on the proposal; Parsons is leaving the decision to directors and management of meat companies. He says the proposal is not a silver bullet for meat industry woes but has the potential to “derisk” issues of over-capacity. “A meat company which rationalises capacity at a plant won’t face the prospect of another company setting up a new plant down the road,” he says. On the other hand, Parsons says some farmers would not see the over-capacity as an issue, given droughts over the last few years. “The last thing farmers would want is to have stock waiting to be killed.”
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Helping grow the country
RURAL NEWS // DECEMBER 2, 2014
ISSUE 574
www.ruralnews.co.nz
NEWS ������������������������������ 1-16 WORLD ������������������������������ 17 MARKETS ��������������������� 18-19 AGRIBUSINESS ����������� 20-21 HOUND, EDNA ������������������� 22 CONTACTS ������������������������� 22 OPINION ����������������������� 22-25 MANAGEMENT ����������� 26-29 ANIMAL HEALTH �������� 30-34 MACHINERY AND PRODUCTS ������������������ 35-41 RURAL TRADER ���������� 42-43
HEAD OFFICE Top Floor, 29 Northcroft Street, Takapuna, Auckland 0622 Phone: 09-307 0399 Fax: 09-307 0122 POSTAL ADDRESS PO Box 331100, Takapuna, Auckland 0740 Published by: Rural News Group
Bull roaring to go this year PETER BU RKE peterb@ruralnews.co.nz
IT’S A great year for sheep and beef – bull beef in particular – according to a farm consultant in the Rotorua region, Peter Livingston from AgFirst. He told Rural News that while the level of sheep and beef in the region has fallen markedly because of the huge swing to dairying, this season has been a good one for sheep and beef farmers. Farmers heavily focused on beef production are having one of their best years ever, he says. “The real beef traders have had large swings in profitability over the past decade or so, but those who have been smart traders this year will probably have one of their best years ever. “The irony is that when the number of beef calves drops, the prices go high. I guess that is just a supply and demand thing. At the moment, those bull beef farmers who have stuck to their game and done the job well are looking at margins well in excess of $600-$700.” The deciding thing is how they trade rather than the sort of animals they have, he says. The type of animal is important, but trading margin is the key thing. In the past, there’s been a bias towards the big white animal for bull beef but that is changing. “There are
not as many straight Friesian animals anymore because the national dairy herd has tended towards crossbreds. The idea of some beef-cross bulls going across crossbred cows has got a lot of merit – as long as the animals can grow quickly and convert feed efficiently.” Livingston believes the Angus, as a breed, has made a lot of advances over the last few decades and is probably the preferred beef animal and the one used by many dairy farmers. But he says there are other issues. “Recently dairy farmers who might have reared 40-50 beef calves and sold them in November for a bit of cashflow
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NEW 'MILK VALLEY'
Editorial: editor@ruralnews.co.nz Advertising material: davef@ruralnews.co.nz Rural News online: www.ruralnews.co.nz Subscriptions: subsrndn@ruralnews.co.nz ABC audited circulation 81,188 as at 30.06.2014
Oceania staff Elle Li, Becky Dockerill and May Chen enjoy the official opening of the Future-Milk Valley South Canterbury factory. See story page 4
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have now tended to get more cows in calf with AB and retain heifers to sell to other farmers or for export. “It probably needs a rethink as to how we make sure the number of beef animals we have on the ground each year to be reared and taken through to slaughter is handled.” Another issue in the Rotorua region is the lack of good winter grazing land for heifers and cows. The area once had plenty of good grazing land but this has been gobbled up by dairy conversions, pushing dairy grazing back to ‘fringe’ areas.
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NEWS 3 WRONZ to step up?
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pamelat@ruralnews.co.nz
THE WOOL Research Organisation of New Zealand (WRONZ) is exploring whether it can pick up some industry-good activities proposed under the defeated wool levy. The levy was rejected in a nationwide referendum of wool growers in October, but several industry players at that time supported the need for expanded leadership and education for wool. Chairman Derrick Millton says WRONZ members have been advised of a meeting on December 11 and will look at some of the organisation’s rules, and whether its role can be expanded. “It is a possibility that WRONZ can be involved in the education to a greater degree, or alter the funding of education, and also alter some of the advocacy and collaborative stuff we do for the wool industry because we are already a pan-sector group. “We are keen to at least have a discussion over this. It is a collaborative process and the outcome of the meeting [of members] will be taken on by the board. The possibility of WRONZ taking an expanded role was suggested by an industry player just as the levy, which would have raised $4.6m a year, went to the vote in October and was rejected. Wool sales and marketing company Wools of NZ opposed the levy at the time as creating “another structure in an already cluttered industry”. At that time, Wools of NZ chair Mark Shadbolt said there was a need for some industry leadership activities and additional training and tech transfer. He suggested WRONZ could broaden its mandate to take on some of those activities.
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RURAL NEWS // DECEMBER 2, 2014
4 NEWS
Waitaki Valley the new ‘Milk Valley’
@dairy_news facebook.com/dairynews
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between New Zealand and China.” Todd McLay, New Zealand’s Associate Minister of Trade and Foreign Affairs, picked up the bilateral Kiwi-Chinese cooperation theme, saying the previous week’s visit by China’s president Xi Jinping “marked an auspicious time in China and New Zealand’s relations.” This year $11bn of goods will be exported to China and two-way trade already exceeds the $20b goal mutually agreed in 2010.
e ge n
“So it is the only dairy company in China that reaches three continents,” visitors heard. In Chinese, the word Yili means “for the benefit of everyone”, visitors were told, and Yili’s president Pan Gang stressed the contribution of the Glenavy factory to the local economy and New Zealand’s tax take. “My colleagues and I call it the milk valley of the future,” he said through an interpreter. “Yili Oceania is a great sign and leading symbol of the cooperation
push more milk to Oceania, rather than Fonterra, as there would be less capital available for cooperative shares, he suggests. On Fonterra’s plans, Johnstone says Oceania will likely get in ahead: its second whole milk powder dryer, an infant formula canning line and UHT liquid milk and lactoferrin facilities would “probably precede” any expansion of Studholme. “But there’s plenty of milk in the region for us all,” he said.
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in China,” the day’s Chinese speaking compere said through an interpreter. The firm is the official sponsor of China’s Olympics team and has a branding deal with Disney. In 2012 it started extending outside China, planning its factory at Glenavy; in 2013 it signed a partnership with DFL in the US, and with an Italian dairy company; now its Glenavy factory is commissioned and a $400m expansion plan’s been announced (see panel above).
by 2015, “generating export revenues in excess of $700m”. This year Oceania will collect about 165m L from 48 suppliers using 70% of the plant’s capacity in its first year. Johnstone told Rural News they expect “close to 60” suppliers for next year, giving a 25% increase in supply. “We have a list of interested farmers but we will always take more expressions of interest.” If anything, a lower payout would
s
7
THE RACE for milk is further hotting up. Last month came Fonterra’s news of two big dryers at Studholme. And now Yili confirms $400m more plant at its Oceania Dairy 20km from Glenavy. “We anticipate the first phase of the expansion project will commence in early 2015 and [finish]… in 2019,” says Oceania chief executive Aidan Johnstone. Oceania expects to be handling at least 630m L of milk from local farms
198
WE’VE ALL heard of Silicon Valley in California. Now China’s biggest dairy company appears to have similarly named the Waitaki Valley. Opening its Oceania factory at Glenavy in the far south of Canterbury, last week, Yili said it was the “Opening Ceremony of Future-Milk Valley”. After a Maori welcome as the day’s line-up of dignitaries filed in, suppliers, staff and a melee of reporters from New Zealand and China heard how Yili is a household name in China and the only Asian dairy company in the world’s top ten, with sales in 2013 of US$7.67bn. Founded in 1956, over the past decade it has grown 22.4% a year as it pursues its mission “to be recognised as the world class health foods group”. Yili has five business units – liquid milk, icecream, infant formula, yoghurt and raw milk [powder] – and at least 10 million brands, visitors were told. Those brands include market leaders in China in icecream, children’s milk and organics, though yoghurt is its fastest growing category. “One in six kids drinks Yili products
McLay stressed two-way investment is the “key” in the relationship, rattling off examples of Chinese investment in New Zealand which now accounts for at least half the total overseas investment in New Zealand. Meanwhile New Zealand Government and business investment in China has increased by “over 10% in the past year,” he said, citing Fonterra’s $615m Beingmate joint venture and continued investment in farms in China. Zhang Fan of China’s embassy in Wellington said the Yili opening “signals the strong commitment of Chinese companies to make significant investments in New Zealand and mirrors the strong enthusiasm of a lot of Chinese companies to make inroads into New Zealand”. Speaking on behalf of the farmers supplying Yili, Wilma van Leeuwen said Yili’s development was the result of long and ultimately successful negotiations, and stressed the need for “both parties to be justly rewarded”. “We see this as a long standing partnership. To be successful both parties want to be looked after.”
ce
andrews@ruralnews.co.nz
Race for milk hots up in Canterbury
in
A N D R EW SWA LLOW
RURAL NEWS // DECEMBER 2, 2014
NEWS 5
Cool it or lose it – threat NEW ZEALAND is bowing to international pressure by introducing new milk cooling rules for dairy farmers. Most farmers must upgrade farm milk chillers to comply, costing $5000 to $100,000. The new MPI regulations require farmers to
hold milk at 6oC or cooler until the tanker collects. Present rules allow milk to be cooled to 7oC within three hours of milking and until collection. In Australia milk must be cooled to 5oC within 3.5 hours of milking; in China to 4oC within two hours of milking. In the EU, milk col-
lected daily must be kept at no more than 6oC if not collected daily. The deadline is August 1, 2016 for new farms and those upgrading cooling systems. Enforcement on all other farms starts January 1, 2018. Fonterra food safety technical adviser Tim
Johnstone last week told farmers at a Smaller Milk and Supply Herds (SMASH) field day that the regulations aim to satisfy international markets. “That’s the big one essentially driving the new regulations”. New Zealand’s rules for raw milk storage are not
as stringent as those of its major trading partners China, Russia, Australia and the EU; standards are on par with the US. Johnstone says during audits of New Zealand farms, overseas regulators question why our milk cooling is out of line with the rest of the world.
“We’ve been getting away with… arguing that our milk quality is above everyone else’s.” Paul Donderwinkel, director of Matamata refrigeration company Centigrade, says there won’t be a “one size fits all” solution; rather, daily milk volume on each farm
will determine the cost, “on average $5000 to $100,000,” he told Rural News. Corporate farmers are more amenable to the new rules than are family farmers, the latter being “a bit more reluctant to embrace the proposed regulations.” – Sudesh Kissun
Ingredients business vital to Fonterra’s future success SU DES H K I SSU N sudeshk@ruralnews.co.nz
FONTERRA’S INGREDIENTS business is an “aircraft carrier” that allows the co-op to visit global markets efficiently, says chief executive Theo Spierings. He told the recent Fonterra Shareholders Fund annual meeting that ingredients make up half of earnings before income tax (EBIT) but the importance of the ingredients business is sometimes downplayed. “I strongly disagree; it is the aircraft carrier for us to go to the world in an efficient way. If we don’t have our ingredients – our highly efficient operations around the country doing commodities – we don’t have the scale to go from New Zealand to those faraway markets where we can make money. “Should we put beautiful planes on the aircraft carrier, with food service products Anmum and Anlene? I think we should. But if we leave the aircraft carrier behind, our planes have nowhere to land and that won’t be a beautiful picture in the market.”
Theo Spierings
In the 2013-14 financial year Fonterra’s total revenues reached $23.3 billion; ingredients brought in $16b. Of the total normalised EBIT of $503m, ingredients made up $269m. Outside investors barred from holding shares in Fonterra are able to invest in units in the Fonterra Shareholders Fund that gives them access to the economic rights they would have received if they were allowed to
own a share; dividend to unit holders is based on the co-op’s net profit. Last year the co-op’s earnings per share was 10c, compared to 44c the year before. Spierings says this was disappointing but explained that high milk prices impacted earnings. While Fonterra raised prices and cut costs, these measures failed to fully offset the high milk costs. Fonterra is continuing to streamline brands and focus on key markets to lift returns, he adds. “We cannot go everywhere; we are in 93 countries with 60 brands. We have to focus to win; we have decided to focus on eight markets and five brands.” Fonterra remains a company with corporate social responsibility and sustainability. The five major brands are NZMP, Anchor, Anlene, Anmum and Farm Source. Fonterra’s main markets are New Zealand, Chile, Sri Lanka and Malaysia, totalling 100 million. Spierings says these four markets won’t help the co-op reach its target of 2 billion customers. The co-op has added four markets: China, Indonesia, Brazil and Australia.
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Helping grow the country
RURAL NEWS // DECEMBER 2, 2014
6 NEWS
Agribusiness leaders tasked with challenge Trying to determine how primary producers can achieve the Government’s goal of doubling New Zealand’s exports by 2025 was the focus of a meeting of the agribusiness ‘boot camp’ group in Wellington last week. Rural News senior reporter Peter Burke was also at the meeting attended by the chairs and senior managers representing 80% of New Zealand’s primary exports; his report follows: AGRIBUSINESS LEADERS have summer homework assigned by Primary Industries Minister Nathan Guy, who is trying to determine how producers could double exports by 2025 – a goal of the Government. Guy spoke about this to 40 members of the agribusiness ‘boot camp’ group, and special guests. He outlined his vision for the next three years, centring on the 2025 target. The group comprises chairs and senior managers representing 80% of New Zealand’s primary exports; they are seen as the sector’s leaders. (The meeting was held in the beautifully refurbished and famous Art Deco Roxy movie theatre in Wellington.) Guy finally asked the group to determine the three biggest obstacles and opportunities bearing on a doubling of exports by 2025 and to report at the next meeting in February 2015.
Guy says his vision is for New Zealand to be a world leader in premium, value-added products in demand world-
people and for science to make New Zealand a world leader in environmental sustainability. A pathway to this, says Guy, is New Zealand increasing its competitiveness to match other world producers. “We are already the most productive and innovative producers in the world. But that doesn’t guarantee us anything in the future. The world is changing fast, it doesn’t owe us a living and resting on our laurels will get us nowhere. Other countries are intent on the same success, competing strongly for trade deals and investing heavily in R&D.” Guy believes there is huge potential for NZ companies to collaborate more. He referred to producers’ need for a “social licence to operate”, this being “the ability to produce our products sustainably, bringing the community with us and earning their respect and understanding”. “We also need to tell a better story Primary Industries to Kiwis about the importance of the Minister Nathan Guy primary sector to the New Zealand outlined his vision for the sector to boot economy. We are too reactive, and the camp attendees. challenge is to get the positive stories out there on issues like environmenwide. And he wants the primary indus- tal sustainability. People need to know tries to be a highly desirable career that we are good stewards of our land choice for the best and brightest young and sea.”
Guy says environmental performance across the sector is no longer a ‘nice to have’ – it’s a necessity for the New Zealand public and our global consumers. The biggest challenge is attracting young people to make a career in agribusiness. Without top people New Zealand won’t be competitive or increase the value of produce. “Young people won’t want to work in an industry they think is dirty, degrading to the environment or cruel to animals. We need to sort out the poor performers because they will drag our reputation into the mud. “My challenge to boot camp attendees is to form a working group to work with me and my officials to help deliver practical solutions. One idea might be a New Zealand ‘primary sector skills fund’ from which the industry pays for high profile scholarships to top up the Government’s tuition subsidies and student loans. Or ‘primary sector ambassadors’ who can talk up our industry in the classroom and create stronger partnerships between schools and industry.” Guy says the primary sector’s increasing sophistication, e.g. new technologies such as robotics, will offer wider employment opportunities.
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NEWS 7
Tell New Zealand’s great story GREG MUIR chief executive of Tru-Test, agrees the biggest challenge to the primary sector is attracting the right people. Train the right number of people in the right skills, he urges. Boot camp members are involved in the education and science sectors, contributing to the training of people to meet industry needs. “But agriculture is not good at telling good-news stories about the sector. There are outstanding stories about technology and farming across New Zealand; you have to dig deep to find these. “How do we publicise this? The Fonterras and Synlaits get all the publicity, but there are [many]
relatively small, nonetheless important contributors to the New Zealand ag scene doing an amazing job.” Muir points to huge employment opportunities in the sector in a wide range of occupations including banking and technology. “There is a joke going around that the farm in the future will have two things: a farmer and a dog. The farmer is there to feed the dog and the dog is there to stop the farmer interfering with the machinery. That’s a take on where technology is going, but in reality we do require vast numbers of people in the countryside to make farming work.”
Craggy Range’s Stephen Smith believes the NZ primary sector is underselling its achievements.
Steve Smith, cofounder of the international award-winning Craggy Range winery, says
New Zealand is underselling its achievements in the primary sector. In marketing wine he tells,
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as part of the story, about the land, the place and the people. New Zealand has an amazing environment for producing agricultural products and could become the world’s greatest natural food producer. Smith says New Zealand wine plays a huge role in helping to promote other primary products. “It’s a great item to lead the food and beverage sector because it sits on dinner tables in homes and restaurants with the name New Zealand on it. If we can [relate] that to all our other great agricultural produce it’s got to benefit everybody. We are lucky in having a product that works like that.” Smith says consumers
Tru Test’s Greg Muir agrees that the biggest challenge facing the sector is attracting the right people.
want to know a lot more about food products, an important aspect of marketing. “When I talk to consumers the world over I talk about New Zealand as the youngest country in the world – the last place to be settled, a place where our vines breath the purest air in the world. They love that. “I don’t necessarily talk so much about the product. Anyone can tell a wine story, I’m telling a story about New Zealand, a
place that’s unique…. The more I can tell it, the more benefit I can get for the wines.” Craggy Range recently won first place in the New World Winery category in the US Wine Enthusiast magazine’s Wine Star Awards. Craggy Range was up against producers from Brazil, Canada, South Africa and Chile. Smith says they are only the second winery to win this award in almost 20 years. – Peter Burke
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RURAL NEWS // DECEMBER 2, 2014
8 NEWS
Faster traceability major focus SU D ES H K I SSU N sudeshk@ruralnews.co.nz
FONTERRA CHIEF executive Theo Spierings says more work is needed to improve its traceability credentials.
The co-op is able to trace products back to its factories within 48 hours, but Spierings says this is still not best practice: the ideal would be three hours and the co-op is working to implement
this by 2017. He made the comments at the Fonterra Shareholders Fund annual meeting in Auckland last month. The fund represents investors who bought units in
Fonterra shares, given up by farmer shareholders. Fonterra was stung in August last year by the false botulism scare involving 38 tonnes of WPC80; eight global wholesale customers
who used the product were forced to recall food including infant formula. Spierings says traceability “was probably one of the biggest problems” it had with WPC80. “We had 38 tonnes in the end going to 40 markets with different customers; we were unable to trace it back and provide information within a short time. Right now we do it within 48 hours, but that’s still not best practice; it has to be within three hours.” Spierings points out that the media, consumers and customers want answers in three hours, but this standard will demand upgrading systems and capabilities including those of staff. The co-op’s new head office under construction in Auckland will house a dairy excellence centre that will help connect with consumers and customers through social media, improving traceability. “Our commitment is to have three hour
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traceability by 2017; this requires investment in systems, people and capability. It’s easily said, not easily done.” The false botulism scare impacted Fonterra’s business in the lucrative Chinese market. As the scandal broke, Spierings and chief financial officer Lukas Paravacini went to China to apologise to Beingmate, its biggest WPC customer in the country. Spierings says during the WPC80 crisis, Fonterra and Beingmate started talking about a global partnership. Fonterra this year announced it was buying a 20% stake in Beingmate for $600 million. The co-op hopes to use Beingmate’s infant formula sales networks to boost sales of its Anmum brand. The deal connects Beingmate to Fonterra’s global milk pools; it gets whey from Europe and infant formula from the Darnum plant in Victoria and New Zealand. @rural_news facebook.com/ruralnews
Euro milk pool expansion FONTERRA IS looking at more investments in the growing milk pool in Europe. Chief executive Theo Spierings says it is looking for more partners in “the green belt of Europe”— Ireland, southern England, northern Germany and Poland. “We believe that’s where the milk growth will take place.” Last year the co-op announced a joint venture with Netherlands-based A-ware Food Group to build a new cheese plant and dairy ingredients plant in Heerenveen, northern Netherlands. A greenfield site is being developed where A-ware will operate a cheese plant and Fonterra will operate a dairy ingredients plant alongside it. Milk supply in Europe is expected to grow when EU quotas come off next year. Spierings says growth in Europe means extra cheese. “Extra cheese means whey and we can use that whey,” he says.
RURAL NEWS // DECEMBER 2, 2014
NEWS 9
Lift NZ’s organic standards – farmers GA R E T H G I L LAT T
DISILLUSIONED FARMERS are looking for an internationally acceptable national organic standard due to a rise in international rules incompatible with the New Zealand farming system. Fonterra’s certified organic milk suppliers have fallen from 112 farmers in 2011 to between 50 and 70 this year, according to industry sources. Other organic producers are also concerned about having to comply with more rules. Industry sources say while some producers have made changes to their operations, some claim that illogical standards make organic farming too hard. For example, Fonterra chased new markets in China and Korea which didn’t have their own organic standards, adhering instead to the US Department of Agriculture National Organic Programme (USDA NOP) standard. Farmers quitting organics have complained about bans on Tanalised posts and giving calcium borogluconate to downer cows, and restrictions on administering magnesium oxide. Sources say these rules arose either from ‘incompatible sensibilities’ or differences in farming methods between
Organic producers are calling for NZ Standard, rather than adhering to international codes.
to deliver value to top-end markets. NZ accreditation agencies spend a lot of time and hundreds of thousands of dollars being audited themselves.” NZ’s organic standards should be publicised more in our offshore markets, farmers say, especially given our clean green image and the amount of money we spend on promoting our organic produce. A prominent formerly certified organic Waikato dairy farmer, Mike Moss, says it makes sense to have a New Zealand code. “We’re currently farming to a system designed in Washington when we could be farming to our own.” Hoare says moves to internationalise New Zealand’s organic standards (via the International Federation of Organic US and New Zealand. certifying bodies, says Brendan Hoare, Movements 2009 global organic market James Millton, the owner of the chair of Organics Aotearoa New Zea- access scheme) have not advantaged NZ Gisborne biodynamic vineyard Mill- land (OANZ). exporters because of export market proton Vineyards and Winery, says EuroHe says certifying bodies spend a tectionism and the nature of regulapeans disapprove of galvanised steel lot of time and money gaining approval tions in the NZ market, i.e. differences fenceposts because of their carbon foot- from the national and regional certify- in assurances for organic and certified print and toxicity to soil organisms. This ing agencies in NZ’s export markets. organic produce. limits suppliers to American and EuroMoss wants to work within the “BioGro and AsureQuality are two pean customers to concrete or hard- of only eight international bodies in system and supports most of the conwood posts for fences and trellises. the world able to accredit licensees to ditions, but says there are points where Keeping up with global standards every standard in the world. We are you need to draw a line. Other farmers and regulationsis a headache also for world class and we have to be, in order are supporting an NZ standard for a dif-
ferent reason, seeing it as a way of raising the quality of the industry’s produce. Millton says organic farmers should be able to handle a stricter code given the challenges farmers have already coped with. “The things we’re dealing with in organics now will happen in conventional agriculture in 10 years. It would be good to see New Zealand have the strictest standard in the world; it would make the world better for the next generation.”
CORRECTION IN THE article ‘Fonterra’s tough organic rules’ in Rural News, Issue 573, November 18, p19, the sentence: “Ridings and his wife Madeline have long campaigned against palm kernel, palm oil and the use of GM feed in New Zealand.” It should have read “Moss and his wife Madeline have long campaigned against palm kernel, palm oil and the use of GM feed in New Zealand.” We apologise for the error.
RURAL NEWS // DECEMBER 2, 2014
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ELORA
FEDERATED FARMERS is undergoing a ‘strategy refresh’, as revealed to Rural News by president William Rolleston at the national council meeting in Wellington last month. It involves discussions with all provincial presidents, assisted by a management consultant. This is the first formal meeting of Rolleston and the new board with the national council since the annual conference in July. Rolleston says they had “two good days of looking quietly inwardly at their strategy”. “A strategy refresh is always appropriate when you have a new chief executive and chairman. The
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More leadership needed PRIME MINISTER John Key and Labour’s agriculture spokesman Damien O’Connor addressed the national council meeting O’Connor says the primary sector needs leadership, not leaders. There are many leaders in the agribusiness sector, but overall it lacks leadership and cohesion. NZ needs people to ask the hard questions about what the country is doing, what it needs to do and how to achieve this. “New Zealand is a small country with valuable but limited resources and huge opportunities for success. But as a society we have become a bit more selfish and have decided to [exploit] our own individual opportunities and have lost sight of the broader vision. The National government is happy to be market led, but not be market leaders.” O’Connor says traditionally people have looked to governments to show necessary leadership, but he says to be fair this shouldn’t all come from government. He suggested the Feds had a role to play in this. Meanwhile, John Key warned delegates that a bottom line for the public is that farmers’ can only increase produc-
federation is in good heart, but what we are looking at how we can work better as a team across the provinces. We have many capable people spread across the country and we need to be well coordinated with our messaging and how we service everybody.” Rolleston says the ‘refresh’ is not a radical shift in the organisation. The present staff structure is appropriate and
tion as long as they don’t harm the environment. He says this is a challenge for farmers and one the public won’t buy excuses on. “In recent years Federated Farmers have taken a responsible view of that issue. Dairy companies such as Fonterra have been in the forefront of that by encouraging farmers to fence 23,000km of waterways that have dairy cows next to them. It will be compulsory to do that come 2017 and I am confident farmers will get there before then anyway.” Key believes the public understand the importance of agriculture and for the most part are hugely supportive. But he says they won’t be if they see farmers trashing the environment. However, Key says the public also need to realise that farmers are spending their own money to improve their environmental footprint. “The people who argue that farmers don’t do their bit in caring about the environment need to get out onfarm and have look at what farmers have to do now compared with what they had to do six years ago. Regulations have toughened up,” he says.
has been built up over a number of years, he says. The refresh identified key policies for attention, including water, climate change, health and safety, and science and innovation. Human capability is a big issue, Rolleston says. “That comes into our science and innovation slot. Is the right training being done, do we have the right capabilities in science and are we producing the right
graduates? “In the schools a lot of teachers don’t understand agriculture or science and where they fit into society. “We need to up that messaging so that young people can see there are worthwhile careers in farming and agribusiness.” Agriculture is becoming technical and the sector needs to make sure that it has skills to stay ahead of the world.
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RURAL NEWS // DECEMBER 2, 2014
NEWS 11
Down she goes – Fonterra next? THE COUNTRY’S second-largest dairy company Westland has cut its payout for the coming season and it’s expected Fonterra will make a similar call this month. Last week, Westland Milk Products reduced its predicted payout for the 2014-15 season by 40 cents/kgMS. The company blames the cut on a continuing global oversupply of dairy products and the impact of a relatively high New Zealand dollar. Westland chairman Matt O’Regan advised shareholders, at last week’s annual meeting, that the predicted payout was now at $5-$5.40/kgMS.
He said advance payments to shareholders will also be adjusted to reflect the lower dairy prices and, therefore, the lower cashflows into the business. “This will be unwelcome news for shareholders, but not unexpected,” O’Regan says. “At our October shareholder meetings we warned suppliers that the high level of in-market stocks held by dairy customers was producing downward pressure on prices, especially in the area of bulk milk powders where most of our business is still conducted.” Many bank and indus-
Back to basics SU DES H K I SSU N sudeshk@ruralnews.co.nz
FONTERRA ANTICIPATES farmers reducing supplementary feed and cull cows as the low payout squeezes cashflow onfarm. Co-op chairman John Wilson says he expects most farmers to revert to more traditional farming systems in response to the low payout. “It is likely they won’t feed as many supplements, particularly bought-in supplements,” he told Rural News. “Therefore stocking rates will probably come down when there is feed pressure; so there will be a bit more culling. “This is what they did a few years back when the payout was low; it’s the old adage: stick to the grass curve, that’s where you make your money.” Fonterra’s board will meet next to review the milk price payout; it has cut the forecast by 70c to $5.30/kgMS. Wilson says farmers need a clear indication of pricing, especially when cashflows are tight. He says demand is growing pleasingly in line with predictions. “But over-supply – after high prices, good weather, low grain prices and risk heightened by geopolitical uncertainty in Europe and the Middle East – is delaying the return to the predicted rebalancing of supply/demand and therefore pricing.”
try commentators have been picking a fall in this season’s dairy company payouts for some time. O’Regan says the inventory position for many of New Zealand’s dairy customers is a reflection of some overstocking earlier in the year following supply concerns due to
drought, food safety and regulatory changes. “These concerns are not significant at present and in-market inventory is slowly being consumed. But customers are generally comfortable with their inventory positions into the first quarter 2015, so we do not expect a sudden
uplift in demand.” O’Regan conceded the payout drop will be a challenge for many farmers and budgets will be tight. “The company has systems and processes in place to offer every support it can to shareholders who might struggle financially,” he says.
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14 NEWS
Miraka grows at Fonterra’s expense at quadrupling the plant’s capacity within five years, requiring more milk. Shanghai Pengxin International chief executive Gary Romano told Rural News it can provide more milk to Miraka. He says while Miraka has enough milk to process at the moment and a waiting list of farmer suppliers, his company was willing to send more milk to the factory; this may mean switching supply from Fonterra. “We are happy to supply Fonterra but we can always look at sending more milk to Miraka.” China Mengniu Dairy Company is one of the largest dairy processors in the world and the owner of the biggest UHT brand in China. Romano says Mengniu already has international partners, and its agreement to join with Shanghai Pengxin and invest in Miraka is a huge accolade for the company, the industry and the country.
SU DES H K I SSU N sudeshk@ruralnews.co.nz
CORPORATE FARMER Shanghai Pengxin is not ruling out switching milk supply in the North Island from Fonterra to independent processor Miraka. Shanghai Pengxin owns the 13 former Crafar farms in the North Island; three of the farms supply the Maori-owned processor, the others supply Fonterra. Shanghai Pengxin and Miraka last week announced an agreement with China’s largest dairy firm Mengniu that would fast-track expansion of the Taupo plant. Miraka will supply branded UHT milk to the dairy giants for the Chinese market. The deal means Miraka’s plant, which can produce 240 million UHT packs annually, will reach capacity within two years, a year earlier than anticipated. The company is looking
Shangai Pengxin’s Gary Romano.
“We have enjoyed a productive relationship with Miraka and are delighted that their innovation and commitment to quality has led to this acknowledgement by a world leader in dairying. This… will deliver tangible
benefits to the Taupo region, to the New Zealand dairy industry and the economy and will benefit closer economic and cultural ties with China.” Romano says the deal is a winwin for all players. “For North Island dairy farmers, there are more options to supply milk; for Miraka shareholders, this means extra profit and for Pengxin and Mengniu, it means quality New Zealand milk for its UHT brands in China.” Miraka chairman Kingi Smiler says a $27 million UHT extension to its plant was commissioned in January this year, supported by a long term contract with Shanghai Pengxin. Shanghai Pengxin also owns 13 dairy farms in the South Island and supplies Synlait; it is also awaiting OIO ruling on an application to buy the Lochinver Station, near Taupo, and develop farms.
Slow uptake THE UPTAKE of precision agriculture is gradually improving, says Massey University’s professor of precision agriculture Ian Yule. Different things are happening at different rates and an example of high uptake is auto steering that enables an operator to put a machine in exactly the right place easily. Yule says devices to put fertiliser and spray in the right place are now commonly used, but the uptake of yield mapping is low, yet this technology offers significant benefits to farmers. Precision agriculture can increase production by more efficient use of inputs, and it is important to target areas of a farm that are performing poorly. “The old adage ‘right place, right time’ is the starting point for getting things right…. I don’t necessarily think precision agriculture is the whole answer, but if you take a measure and you don’t manage it effectively, then I think you are wasting your time.” Yule says there is lots of evidence that the level of management on an average farm is not maximising productivity; precision agriculture can make a difference in such cases. In dealing with nitrogen leaching into soil, housing cows indoors off the pasture is an option. – Peter Burke
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RURAL NEWS // DECEMBER 2, 2014
NEWS 15
Protectionist policies feeding world’s growing hunger problem – expert PA M T I PA pamelat@ruralnews.co.nz
THE USE by developing countries of highly protectionist policies for their agriculture industries is counter-productive to reducing hunger, claims Professor Peter Warr, director of the Poverty Research Centre in Australia. Developing its own agriculture was important for a country to reduce hunger, the agricultural economist told the Rabobank F20 summit in Sydney. But those that also used heavily protectionist policies were reducing hunger at a lower rate than those that didn’t. Food security is back on the world agenda after a spike in world food prices in 2007-08, says Warr. The price of rice tripled, the price of wheat and corn doubled. The “real” price of commodities had come down dramatically over the last century, but volatility is a worry to food importing countries. Asia has two thirds of the world’s hungry people but it is also making the most progress on hunger. Over the
last 20 years worldwide the number of hungry people in the world has declined by 150 million, but 850 million are still hungry. Sub-Saharan Africa is the worst performer. Increasing agricultural infrastructure and increasing domestic output by protecting local industry against imports are two policies operating throughout Asia in varying degrees. Progress on reducing hunger varied greatly in Asia. China has a higher proportion of undernourished than India
but the rate of decline was similar in both countries. Thailand and Vietnam had dramatically reduced undernourishment. Thailand has gone from 44% in 1990 to about 8%. Vietnam was similar; for Indonesia and the Philippines the progress has been much slower. “Indonesia and the Philippines are the two countries who have used protectionism as a way of stimulating their agriculture; it has not worked,” Warr says. His statistical analysis of the causes
Key points ❱❱ Two thirds of the undernourished people in the world are in Asia. ❱❱ Hunger has declined faster in Asia than the rest of the world. ❱❱ Undernourishment is significantly reduced by increasing agricultural output within the country itself.
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of undernourishment show it is not the rate of growth of GDP in a country but the rate of growth in the agricultural component of GDP that is the important factor. Lower food prices reduce the rate of undernourishment. Some poorer farmers in protectionist countries may get higher prices and some benefit but more poor consumers are affected negatively. In Indonesia, for instance, urban people, farm labourers and even 51% of producers of rice are net buyers – only when they produce enough for themselves first do they have something to sell. “When the price of rice goes up that hurts all those net buyers; it benefits only net sellers,” he says. “There are two ways of stimulating agricultural output. Improve agricultural productivity: that improves food security unambiguously as it increases the availability of food without raising the prices. And there is protecting the agricultural sector: that is Indonesia’s policy – they have banned the import of rice forcing up the domestic price by
Professor Peter Warr says protectionist policies do not help reduce hunger.
40%, reducing the food security of all those net buyers. “There is nothing wrong with the goal of food self-sufficiency but the effect depends on how you try to achieve it.” If your methods result in rising domestic prices you worsen food security. @rural_news facebook.com/ruralnews
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RURAL NEWS // DECEMBER 2, 2014
16 NEWS
Farming seen as sexy again, but New Zealand lags behind PAM T I PA pamelat@ruralnews.co.nz
FARMING IS becoming ‘sexy’ again for young people overseas, but New Zealand has not caught up with this trend yet, says Southland dairy farmer Michael Horgan. “Talking to my colleagues in the States, Netherland and Australia, a lot more young people are putting their hand up to be involved in various agricultural enterprises – the technology and onfarm. “We are lagging behind a bit. We need to get the good stories across, not only in the media but also directly from farmers,” he told Rural News. Getting the farming ‘story’ out is high on the list for farmers from all sectors and countries, says Horgan, who
was chosen for the Rabobank 2014 Global Farmers Master Class in Australia this month, with 40 other farmers from around the globe. “Despite the diversity – some were growing coffee, or soya beans, fruit and nuts, I am milking cows, there were grain farmers and pig farmers – we all had a similar level of passion and were facing similar problems,” says Horgan who with his wife Maree and two of their six children manage a 4500-cow dairy operation. “After we met each other, I doubt the conversation stopped for the next 12 days. The object of the master class was the future of farming and the need to feed the world as we approach 9 billion people by 2050 with limited resources.
“That connection between the process of farming and consumers was highlighted, and farmers as price takers rather than a price makers. Many in the food chain clip the ticket in a more extravagant way than farmers achieve in pricing our product. By getting our story across to the consumers they might be more sympathetic to providing the farmer with an equitable price in the value chain. “It is important we are rewarded adequately otherwise we are not going to encourage succession – another issue. Unfortunately in this nation where our economic advantage comes from the land we have very few young people coming out of university with their hand up to become involved.”
Southland dairy farmer and Rabobank 2014 master classs attendee Michael Horgan says farming is seen as sexy again overseas, but not in NZ.
Last year out of 26,000 graduates only 180 had an agricultural bent, says Morgan, largely because they are discouraged by an education system that does not teach the economic advantage agriculture provides to New Zealand. “Also everybody thinks ‘who wants to be just a farmer’? We’ve let ourselves down by not informing people about the privilege we have on
the land and the responsibility we have in feeding the world. Agriculture is crying out to attract people.” The master class culminated in the 40 farmers attending the Rabobank F20 Summit where 600 participants from government, industry and academia looked at food security. “When you look at that population of 9 billion by 2050, we will need far more resources to pro-
vide that level of production,” says Horgan. “Someone has to come up with smart ideas in the next 30 years on managing water, soil and our environment. “We need the next generation to feed the world so there is opportunity; colleagues in agricultural entities across the country are looking for good passionate people and they will assure them of a future.” Facebook and Twitter also provide new opportunities to get the message across and farmers need to be more passionate, show more enthusiasm and counteract misinformation. “We need to secure the chain of connection from soil to consumer, so we must be in the hands of other people in the pro-
cess who also have passion. We need to provide a quality product but we need to be rewarded for effort and not just be price takers. Unless farmers are rewarded we won’t encourage people to come and work on the land.” Horgan says there is “genuine concern” about meeting food production requirements to keep up with global population growth. “It will put New Zealand in a good position provided we don’t end up as price takers. Some of the regulation governing agriculture is stifling and increases cost. “We have to avoid making things too complicated. We have to have a realistic environment to operate in and enjoy what we’re doing otherwise we won’t get the result the world needs.”
RURAL NEWS // DECEMBER 2, 2014
WORLD 17
Global food crisis looming large WE’VE HAD a global financial crisis, and we now see a looming global food crisis which only innovation and technology will avert, says Berry Marttin, a Rabobank Group Netherlands executive board member. The ‘Arab spring’ was kicked off by a drought resulting in rising food shortages and prices, he told the Rabobank F20 Summit in Sydney, Australia last
month. This event attracted farmers, agribusiness people, academics and others associated with the agriculture in 20 countries to discuss global food security challenges and solutions ahead of the G20 summit in Brisbane. Marttin said the countries with the world’s best soils were not the highest producers. Instead “farming is about creating the right environment so it can
prosper”. The need is for good government policies, access to finance, technology, innovation and education: these are what truly make a difference to farming activity. The US, Europe, South America, Australia and New Zealand were the biggest producers of excess food – but the average age of farmers was 55. The industry has not promoted itself well, and that
included agricultural schools. A global survey by Rabobank of farmers showed a key issue was the need to attract the best young people. “If you are bright and have ideas on things, you would not go and work for the farm,” he said. Yet farming may offer the challenges these youngsters were looking for – managing people, managing systems and using exciting equipment
and technology. “The image is wrong.” Half of the farmers “did not have the guts” to discuss succession with their family. Regarding sustainability, farmers were not against it; the question was how to do it. By 2050 we must double world food production to accommodate population growth and a growing middle class, Marttin says. – Pam Tipa
Aussie/China FTA welcomed
IF YOU CAN MILK, FEED OR STORE IT.
AUSTRALIA’S NATIONAL farmer lobby has welcomed the free trade deal with China – but not everyone is happy. The National Farmers Federation says the FTA announced last month cements Australian agriculture’s place in the world’s biggest market. President Brent Finlay says the deal recognises agriculture as one of the nation’s economic pillars, generating millions of export dollars. But not all farmers are celebrating; though dairy, red meat and growers have won large-scale tariff reductions, sugarcane and grain growers are crying foul. Canegrowers Australia chairman Paul Schembri says the exclusion of sugar in what looks like a tradeoff is an unacceptable outcome – “a lost opportunity for our industry and for China’s sugar importers”. “Yes, sugar is traditionally difficult in trade negotiations, but there was no good reason for this to occur.” China is keen to protect its sugarcane farmers, who strongly oppose imports. Among Australian grain growers there are mixed feelings about the FTA. GrainGrowers Australia says it makes good gains for some Australian grains but not all. Australia’s premier grain industry, wheat, remains subject to an out-of-quota tariff of 65%, and withinquota tariff of 1%. Exports of Canola will remain under a tariff of 9%, and maize exports are excluded from concessions under the deal. “Wheat and canola continue… to be non-negotiable for China,” says Cheryl Kalisch Gordon, manager trade and market access, GrainGrowers. The NFF says the FTA must provide for better outcomes for sugar, rice, cotton and some grains. “These products will be in high demand in China over coming years and must be included in the review arrangements after three years,” says Finlay. But he acknowledges the FTA is an outstanding achievement which, “based on our own growth and the New Zealand experience could conceivably [triple our] agricultural exports to China within the decade”. “The landmark agreement will see the elimination of tariffs on Australian lamb, beef, horticulture and dairy products to China.” says Finlay. China is already a major trading partner: Australian farm exports doubled 2009-2013 to at least $7 billion.
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RURAL NEWS // DECEMBER 2, 2014
BEEF MARKET TRENDS
MARKET SNAPSHOT
BEEF PRICES
NI
Change
P2 Steer - 300kg
n/c
M2 Bull - 300kg
Last Week
2 Wks Ago
Last Year
6.30
6.30
4.55
6.10
n/c
6.10
4.65
-15
6.35
6.50
PH - 22.0kg
-15
6.36
6.51
5.91
Local Trade - 230kg
n/c
5.85
5.85
4.45
Mutton
MX1 - 21kg
n/c
3.80
3.80
3.60
P2 Steer - 300kg
SI Lamb
YM - 13.5kg
n/c
5.40
5.40
4.32
-10
6.33
6.43
5.76
M2 Bull - 300kg
n/c
5.40
5.40
4.18
PM - 16.0kg
-10
6.33
6.43
5.78
P2 Cow - 230kg
n/c
3.90
3.90
3.15
PX - 19.0kg
-10
6.33
6.43
5.80
M Cow - 200kg
n/c
3.90
3.90
2.95
PH - 22.0kg
-10
6.33
6.43
5.81
Local Trade - 230kg
+5
5.20
5.15
4.35
n/c
3.25
3.25
3.40
Last Year
5yr Ave
-7
2.92
2.99
2.07
1.90
NZ$/kg
-22
8.16
8.38
5.55
5.44
Last Week
2 Wks Ago
Last Year 5yr Ave
n/c
2.08
2.08
1.93
1.83
NZ$/kg
-2
8.35
8.37
7.97
8.41
Change
2Wks Ago
3 Wks Ago
Last Year 5yr Ave
% Returned NI
-2%
79.0%
80.6%
76.5%
73.6%
% Returned SI
-0%
77.2%
77.7%
75.3%
76.5%
2Wks Ago
3 Wks Ago
Last Year
5yr Ave
% Returned NI
+3%
77.2%
74.6%
82.05%
75.0%
% Returned SI
+2%
66.2%
64.4%
75.4%
68.6%
UK Leg £/lb
Procurement Indicator
Change
2 Wks Ago
Procurement Indicator
Last Week
95CL US$/lb
Change
Change
Export Market Demand
Export Market Demand
MX1 - 21kg
Mutton
Slaughter
5.90
PX - 19.0kg
3.50
5.88
3.50
6.48
4.90
5.86
6.33
4.90
6.46
-15
4.90
6.31
PM - 16.0kg
4.90
Last Year
n/c
-15
YM - 13.5kg
2 Wks Ago
n/c
NI Lamb
Last Week
M Cow - 200kg
Slaughter
Change
c/kgCWT
P2 Cow - 230kg
SI
LAMB PRICES
c/kgCWT
LAMB MARKET TRENDS
Venison Prices
Change
Beef & venison prices are reported as gross (before normal levies & charges are deducted). Lamb & mutton prices are reported nett (after levies & charges are deducted).
Last Week
2 Wks Ago
Last Year 5yr Ave
NI Stag - 60kg
-20
7.00
7.20
6.85
7.46
SI Stag - 60kg
-20
7.20
7.40
7.20
7.87
1 Tag
2 Register/activate
Tag your cattle and deer before 6 months old, or before they move off farm – whichever comes first.
Register animals within 7 days of being tagged to activate their NAIT tag.
RURAL NEWS // DECEMBER 2, 2014
NEWS
BEEF
PRICE WATCH WOOL PRICE WATCH Change
20-Nov
13-Nov
Coarse Xbred Indic.
+1
5.26
5.25
5.62
Fine Xbred Indicator
+3
5.49
5.46
5.73
Lamb Indicator
-
-
-
-
Mid Micron Indic.
-
7.96
-
7.72
Beef prices reached the top
Indicators in NZ$
With slaughter numbers on the rise, it appears that beef prices may have reached their limit. A blast of hot windy weather on the east coast of the NI and continuing dry conditions on the east coast of the SI have seen more farmers choose to offload stock, and plants are starting to fill up. Much to the relief of processors. With US imported prices under pressure, processors are likely to be quick to reel in prices, with declines expected in early December. SI prices may be slower to decline, as they let the wide gap close up between North and South Island schedules.
US imported beef market under pressure The pressure has come on US imported prices, and while some downturn was expected, reports suggest it has gone lower than expectations. The volume of bids from end-users is very low; some analysts report this is a combination of both weaker demand in the foodservice sector at present and that some have already secured sufficient inventories for the Dec/Jan period and have stepped out of the market. This comes on the back of continued large quantities of imported beef from Australia and growing supplies of NZ product. The end result was a 5-7c/lb drop in 95 and 90CL prices respectively last week. While analysts predict this will stabilise into the new year and that short domestic supply will keep lean beef prices at above historical levels, in the short term the market has to focus on absorbing the large volumes of Australian product, and soon to be large supplies of NZ product. The implications for operating prices in NZ will be dependent on how long it takes plants to fill capacity. But, once slaughter numbers rise, a correction is on the cards.
DAIRY Dairy prices fall further at latest GDT A further decline in global dairy prices at the latest GlobalDairyTrade auction saw prices hit a 5 year low. This comes even following a reduction in forecast auction volumes. Whole milk and skim milk powders both fell between 5-6%. Most economists have the milk price pegged between $4.70-$4.90/kgMS. This latest decline is likely to have Fonterra revising their payout down in December.
Whole Milk Powder Cheddar
Last 2 Wks
Prev. 2 Wks
Last Year
+17
3675
3658
4861
-245
3105
3349
5590
-199
3232
3431
6015
-129
4879
5008
5468
13-Nov
Last Year
Overseas Price Indicators Indicators in US$/kg Fine Xbred Indicator
20-Nov
n/c
4.13
4.13
+1
4.31
4.30
4.64
-
-
-
-
-
6.25
-
6.38
4.73
Indicators in US$/T Butter
Last 2 Wks
Prev. 2 Wks
Last Year
-125
2450
2575
4600
-88
2550
2638
4950
n/c
3850
3850
4500
Change +88
Skim Milk Powder Whole Milk Powder Cheddar
Overseas Price Indicators
Change
Coarse Xbred Indicator
LAMB
Store lambs are starting to move in greater volumes both through the paddock and the saleyards. NI paddock prices last week remained at the $3.00/kg level for 27-28kg lambs, however this is under pressure, particularly with the east coast starting to feel early dry conditions. Similar weighted lambs at the saleyards last week were making $3.00-$3.20/kg. With lamb schedules falling and numbers yet to really flow, the market has yet to really find its level South Islands’s run of on-farm store lamb sales kicked off last week with 6,000 offered at Banks Pennisula. While most were estimated to be making between $2.80–2.85/kg, it was the short term types that were making the higher cpk rates, as processors try to get some numbers flowing. Paddock prices last week sat between $2.70– 2.90/kg for 28–30kg mainly mixed sex lines.
Skim Milk Powder
Lamb Indicator
Volumes of store lambs gaining momentum
Butter
Change
Mid Micron Indicator
There has been a noticable retreat in lamb prices in both islands this week with the range down to $6.50-$6.70/kg gross in the NI and $6.25-$6.50/kg gross in the SI. With slaughter rates increasing steadily each week in both islands, prices are expected to decrease week on week from here. Average slaughter rates are lighter in the NI, as growth rates have been slow, however with prices on the decline and feed on the east coast starting to turn, farmers have chosen to offload the tops of their drafts. Similarly in the SI, lambs are not maturing as fast as other years and with the absence of those off the early country, slaughter numbers have been slower than normal to come out. Processors have subsequently been active at the first round of the on farm store lamb sales.
Indicators in NZ$/T
Lamb schedules begin downwards slide
DAIRY PRICE WATCH Last Year
2900
2813
4000
CURRENCY WATCH vs. NZ Dollar
Last Week 2 Wks Ago 4 Wks Ago Last Year 0.787
0.787
0.823
Euro
0.628
0.631
0.619
0.611
UK pound
0.502
0.502
0.489
0.508
Aus dollar
0.913
0.904
0.893
0.891
Japan yen
92.76
91.11
84.91
83.29
Aug
Oct
Nov
Dec
Jan
UK Pound
Sep
0.789
Euro
US Dollar
US dollar
3 Record movements Record all farm-to-farm movements for animals on and off your property within 2 days.
0800 624 843 www.nait.co.nz
RURAL NEWS // DECEMBER 2, 2014
20 AGRIBUSINESS
Rural broadband boost underway – on paper at least! PA M T I PA pamelat@ruralnews.co.nz
POLICY WORK on the $150m extension to the Rural Broadband Initiative (RBI) announced just before the election is now being carried out, says Communications Minister Amy Adams. The new funding includes a $100 million contestable fund for further extension of broadband services into rural areas outside of the Ultra-Fast Broadband footprint and a $50 million Mobile Black Spot Fund, Adams explains. She told Rural News it is too soon to know what form the improved services will take and/or the price for these services. “A range of possible options will be looked at including how the provision of internet to those in remote areas could be improved or supported.” When she announced the deal, Adams said it would extend the number of rural customers which could access faster broadband. It will be financed by a
three-year extension of the Telecommunications Development Levy – the levy on telecommunications companies. RBI is a government initiative launched in 2011 to bring faster broadband to 252,000 rural households. Through RBI, Vodafone is building new wireless towers and upgrading existing ones for fixed wireless broadband ser-
vice and improved cellular coverage for rural areas. Chorus is bringing new fibre to 799 rural schools and the 154 RBI wireless towers. The latest update shows upgrades are now available to 230,000 households. However, questions have been asked by Labour’s telecommunications spokesperson Clare Curran and analyst
Slow uptake TELECOMMUNICATIONS CONSULTANT and analyst Jonathon Brewer says for the first year of service RBI wasn’t great and that didn’t help the uptake. “That said, today I think RBI Wireless can be an excellent product,” he told Rural News. “RBI Wireless can be a faster, more reliable option for rural users who are on an ADSL cabinet installed before 2007.” However, he says smaller providers outside of RBI claim to have thousands of customers between them. “There are local and regional options from more than 20 small wireless ISPs that can offer better service at the same price as RBI,” he claims. Brewer analysed broadband in New Zealand looking at the cost compared to recommendations from UNESCO and another UN organisation, ITU – that it ideally should cost no more than 5% of the median income of a country.
Jonathan Brewer about the uptake, particularly of wireless RBI. Both believe it is low, but say it’s hard to get figures. In answer to questions from Curran in Parliament in July, MBIE Minister Steven Joyce said the uptake for the RBI package fixed line, which includes fixed wireless, is 22.6% -- about 57,000 rural homes and businesses. The wireless Rural Broadband Initiative has only about 6000 users Adams told Rural News for the Chorus fixed line upgrades, out of 72,068 households 57,375 had taken up the service at June 30, 2014 (79.6% uptake). At least 100,000 households will be upgraded under that programme. Labour’s communications spokesperson Clare Curran says there’s a low awareness of RBI and she believes there should be much stronger marketing. While she applauds the extension of services announced before the election, she hopes it is a truly contestable fund with smaller internet service providers having a fair chance. Curran says
she hopes it is not just a “slush fund” for the bigger players – Chorus and Vodafone – to further extend their RBI services, some of which she claims are “substandard”. She believes smaller internet service providers can often provide specialist services designed for individual communities, which many rural areas need. However, Adams says the Government is satisfied with the uptake rate given the roll-out is continuing. She adds that consumers in a number of areas now have added choices of providers and services, and access to better mobile coverage. “As competition increases across the New Zealand broadband market we are seeing larger data caps and a variety of packages at different price points becoming available. Adams says in addition to wireless broadband, new cellphone towers have increased mobile phone coverage in rural areas and are available to retail mobile providers.”
RURAL NEWS // DECEMBER 2, 2014
AGRIBUSINESS 21
From the Coast to the back of beyond! TO NY H O P K I N SO N
CHANGING FARM jobs is usually no big deal other than meeting new bosses and learning how they farm. Scott Devescovi’s path, from attending school in Buller, contract milking then share milking on the West Coast, with spells away, has been an interesting and contrasting one. “I started milking cows while I was still at college and went full time when I left. Sometime later I saw an ad for a cattle musterer on Kenmore Park Station near Alice Springs and I went there for two years.” Mustering was done on bikes assisted by helicopters. They mustered only cattle; there are no sheep
Brahman and Beef Shorthorn. The three breeds suit the higher temperatures. “The highest temperature while I have been here was 45oC,” said Devescovi. Bulls are out all year and there are usually two musters a year where all new calves are marked and recorded. Stock from the station go in one of two directions: finished bullocks up to four years old are sent to Port Augusta, near Adelaide, for slaughter, a journey of 1700km. Good two-year-old steers go to Darwin for export to feed lots in Indonesia, sometimes with young ‘mickey bulls’ that missed being marked at mustering time. Exports through Darwin were 230,000 head
has working holiday experiences – www.napperbystation.co.au – where backpackers or passersby can join the staff for as long as they wish. “I went for the experience as I have always enjoyed working with livestock and I still get an adrenalin rush with these animals. We get the odd
few mavericks but our cattle are reasonably quiet as they see us around the farm a lot and I just love the remoteness of living out here.” He comments that that you learn a lot of skills as if something breaks you have to fix it as it is a long way from town for someone to come out.
Devescovi still likes working with the big cattle numbers but yearns for some West Coast rain on Napperby. Scott Devescovi’s path from NZ’s West Coast to the Northern Terrority is an interesting journey.
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At 500, 000 ha, Kenmore Park Station is half the size of Fiordland National Park.
PACK in the Northern Territory because of Johnes disease. He returned to the Coast where he herd managed and then contract milked for a season and at age 27 went back to Australia, this time to Napperby Station where he has been for two years. The station is 220km northwest of Alice Springs in the Northern Territory. Size has another meaning here: the station is 5000km2 (500,000ha), about half the size of Fiordland National Park. The station is owned by Roy and Janet Chisholm who live and work on site. Roy is a former chairman of the Northern Territory Cattlemans Association. The back boundary is a two hour drive from the homestead and there are 27 water points. To check them all – the ‘bore run’ – entails driving 500km. The bore pumps are powered by solar or diesel. Cattle numbers are 15,000, mainly Santa Gertrudis and some Brahman and Droughtmaster, a breed developed in north Queensland by crossing
in 2013 and numbers are expected to be 700,000 in calendar year 2014. Most go to Indonesia and some to Vietnam to feedlots. The station is divided into about seven paddocks with seven sets of stock yards situated to reduce stock movement for drafting. “There are a lot of native grasses and buffalo grass.” Is there much rain? “Not a lot only 11 inches (275mm) annually.” They regularly have to cull camels, abandoned in the outback during the expansion of roads and train tracks. They increase in number and eat valuable grass. “They also are a problem when they walk through fences, sometimes taking out a km of fence just like that,” says Devescovi. The farm workers eat a lot of camel meat usually from younger animals. Staff are five permanents and part-time workers for mustering and others from the local aboriginal community when needed. Napperby Station also
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RURAL NEWS // DECEMBER 2, 2014
22 OPINION EDITORIAL
EDNA
A bad joke YOU KNOW there is something seriously wrong with the priorities in the country’s education system when we have only 100 agricultural science graduates – compared with 120 in acupuncture – in one year. If this wasn’t so serious it would be a joke. Ministry of Education data tell us that of the 25,000 domestic bachelor graduates in 2013, only 350 graduated in a primary sector-related discipline. Too few high-achieving school leavers take agriculture-related studies at bachelor degree level. As a rural-economy nation, our primary sector should be the natural place for our best and brightest people. As Associate Primary Industries Minister Jo Goodhew opines on the page opposite: “We need to do more to encourage and promote the sector as an attractive and fulfilling career option for our talented young people.” The head of Massey University’s Institute of Agriculture and Environment, Professor Peter Kemp, believes rightly that careers advisors had better be told to think it out again, i.e. cease encouraging only less ‘able’ students towards the industry, and instead change the narrative to ‘only if you are bright enough is a career in agribusiness for you’. Channelling bright, young people towards a career in the wider, primary sector is vital to our nation’s future. Currently there are 350,000 people employed in New Zealand’s primary sector, and by 2025 this number will be closer to 400,000. To get anywhere near achieving the Government’s goal of doubling exports by 2025, the primary industry must have the right people with the right skills. Only the best and brightest will do. Goodhew and Kemp agree the industry’s message must emphasise that ‘doing agriculture’ doesn’t mean just farming. There’s also banking, marketing, advisory, engineering and food, to name a few. Agricultural science, farm management and agribusiness are all key fields in the primary sector. Promotion of primary sector industry has to start in our schools – the younger the better. Goodhew is 100% right when she says: “If we want to attract talented, young people into the primary sector we need to make them, and their parents, aware of the opportunities (and salaries!) available there.”
RURAL NEWS HEAD OFFICE POSTAL ADDRESS: PO Box 331100, Takapuna, Auckland 0740 PUBLISHER: Brian Hight .............................................. Ph 09 307 0399 GENERAL MANAGER: Adam Fricker ........................................... Ph 09 913 9632 CONSULTING EDITOR: David Anderson .......................................Ph 09 307 0399 davida@ruralnews.co.nz
“If Air New Zealand is not going to land here now, how will we get stuff sent to us by air?”
THE HOUND
Want to share your opinion or gossip with the Hound? Send your emails to: hound@ruralnews.co.nz
Recycled?
Interesting
Familiar look
THIS OLD mutt reckons the Feds are doing the kind of recycling these days that would make even the Green Party happy. First, the Feds’ former spin doctor David Broome’s departed recently to work for the serial grump (and possibly the shortest man ever to try wearing a double-breasted suit) Winston Peters, then the farmer lobby recycles another old name. It has dug up Don Carson from his proverbial rural communications grave and appointed him (he was once the head of Radio NZ rural and the old Wool Board’s spinmeister) as its new PR man.
YOUR CANINE crusader notes an interesting development in the upcoming director elections for Silver Fern Farms: MIE Group-endorsed candidate Fiona Hancox is standing against former MIAG (remember them?) man Herstall Ulrich, who ousted previous PPCS (SFF) chair Reese Hart when he was first elected. However, after six years it seems the meat industry agitators have lost faith in Ulrich’s ability to effect change and are now looking at backing a new horse.
MEANWHILE, A mate of the Hound reckons he was struck by the similarity in appearance of Dawn Sangster (incumbent director on Alliance Group board and seeking re-election) and SFF candidate Fiona Hancox. “Could they be sisters?” his mate queried. “Or is this just the standard, South Island farmer’s wife’s (hairdo and necklace) look?” Your old mate could not possibly comment, but did point out that this is a rather sexist inquiry, as no mention was made of the similarity of looks between any of the male candidates.
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Missing his cuddles
Backbencher – again!
THE HOUND understands that at Federated Farmers’ conference the other week, John Key gave a little away about his love life. The PM noted that at the recent G20 summit his wife Bronagh went out on yet another animal excursion. “She seems to have become the international ambassador for pandas, white elephants and other creatures. There’s nothing she hasn’t cuddled apart from me in recent weeks,” he mused.
IT’S TOO not hard to work out Labour’s priorities for the primary sector. Despite all the talking up by Damien O’Connor at the Fed’s recent conference of what Labour has done for agriculture over the years – which is quite a lot – the party’s ‘Little’ man has kept O’Connor out of the inner circle. He’s been consigned to the back bench and unranked in the caucus line-up. This old mutt wonders if it has something to do the vocal West Coaster’s infamous reference to Labour being dominated by “a gaggle of gays and self-serving unionists”.
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ABC audited circulation 81,188 as at 30.06.2014 Rural News is published by Rural News Group Ltd. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of staff, management or directors of Rural News Group Ltd.
RURAL NEWS // DECEMBER 2, 2014
OPINION 23
We need more high achievers J O G O O DH EW
TO ACHIEVE our goal of doubling exports by 2025 we need to ensure industry has the right people with the right skills. Already there are 350,000 people in New
school. Unfortunately, 30% of those students also fail University Entrance and only 28% go on to study an agricultural related discipline at university. Too few high-achieving school leavers take agriculture-related studies at bachelor degree level. In
Associate Primary Industries Minister Jo Goodhew.
Zealand employed in the primary sector. By 2025 there will be closer to 400,000. Earlier this year DairyNZ, MPI and Beef + Lamb New Zealand jointly commissioned a report to forecast the capability needed to keep our primary industry internationally competitive. This valuable piece of work will point us towards the present and future skill gaps. The task ahead will require creative thinking, not just business as usual. Data from Ministry of Education shows that of the 25,000 domestic bachelor graduates in 2013only 350 graduated in a primary sectorrelated discipline. I saw a recent comparison of 100 agricultural science degrees and 120 in acupuncture. We have a lot of work to stimulate interest and uptake in these fields. Agricultural science, farm management and agribusiness are all key fields for the primary sector. Fortunately we have seen gradual increases in student numbers in these fields at all qualification levels (certificate, diploma and degrees) over the past two years. Currently only about 10% of students study agriculture at year 12, and only 2.6% go on to study it in their final year at
contrast, there are at least 6000 commerce graduates each year and we need at least some of them in the primary sector. Our future capability forecast showed that those qualified in management, commerce, engineering or construction would also be in hot demand in the dairy industry. By 2025, businesses are likely to be larger, more productive and using more technology. We are going to need strong business expertise in the sector. As a rural-economy nation, our primary sector should be the natural place for bright young business grads to begin. We need to do more to encourage and promote the sector as an attractive and fulfilling career option to our talented young people. Let’s take time to assess the entire pathway through education to see if it is fit for the purpose of achieving our goal of 50,000 or more. The promotion of the primary sector industry starts at our schools. I attended a function at Parliament last week where I spoke with a group of careers advisors and teachers. There was a consensus among many of them that the message needs to get to the parents and grandparents as much as to the students. If we want to attract talented young people into the primary sector
we need to make them, and their parents, aware of the opportunities (and salaries!) available to them in the sector. The Ministry has teamed up with Dairy NZ to launch the Enterprising Primary Industry Career challenge, to encourage high school students to
identify careers within the primary sector. These industry-government initiatives are invaluable in our goal to help the sector attract and retain talent. • Jo Goodhew is the Associate Minister for Primary Industries. @rural_news facebook.com/ruralnews
More young people like this year’s Massey University top Ag student Monique Mathis are needed.
RURAL NEWS // DECEMBER 2, 2014
24 OPINION
Vigilance essential in busy season WITH SPRING finally (hopefully) here and the grass starting to grow, farmers will be looking to rebuild their supplementary feed stocks by making hay and silage. Many contractors will be cranking out their gear for the hay and silage season and this means all over New Zealand rural contractors are hitting the roads with their tractors, balers and silage wagons. While it would be nice to see all motorists being extra vigilant and patient when approaching rural contractors and their machinery on the road,
$
the reality is this will not be the case all the time. Many motorists, unused to large machinery on the roads, may become frustrated and impatient and take unnecessary risks. This means contractors must be conscious of traffic buildups and allow following cars to get past when and where possible and practicable. Some of our gear can be huge and it may sometimes be hard for operators to see traffic piling up behind. The last thing we want to do is hold up traffic, so operators should ensure motorists can pass in a
safe and timely manner. It’s also worth ensuring that any excess crop or dirt is cleaned off tractors and/or machines before leaving the paddock and hitting the road. Remember, we share the road with other motorists so if we can help to keep the highways and byways cleaner and safer it helps us all. Just like we want motorists to exhibit patience and understanding, so we can all be safe on our roads, contractors need to ensure they and their staff are aware of traffic and compliant with all
the correct transport regulations. Contractors can find and refresh themselves and their staff on all the necessary rules and regulations on the RCNZ website www. ruralcontractors.org.nz Meanwhile, as contracting work begins to wind up it is timely that
health and safety remains top of mind for all – employers and workers. Law changes in the Health and Safety Act and the formation of WorkSafe NZ stress that employers and employees need to know their rights and responsibilities in health and safety in the work place. We need to get to grips with changes to regulations affecting rural contractors, their workers and clients. While work can be challenging at this time of year– needing long and irregular hours at certain times – employees still have a right to regular breaks and rests. Wellrested employees, contractors and others
help make the work environment safe. It can also help you reduce the personal, social and financial costs of accidents. The penalties for getting it wrong, should anyone suffer a major accident at their workplace, are severe and it is important to watch out for your own and your staff ’s wellbeing. Last month I attended Federated Farmers national conference in Wellington. Rural Contractors NZ (RCNZ) is an affiliated member of the federation and the organisations share a close and mutually beneficial relationship. As important and influential
rural lobbies, RCNZ and Feds continue to develop and foster a good relationship, co-operating to achieve the best outcome for the farming sector. A key issue for farming and contracting is doing all we can to ensure the health and safety of our people. It is the responsibility of all contractors, workers, their workmates and the farm businesses we are working for to ensure a safe working environment. Long may this continue. • Agricultural contractor Steve Levet, Wellsford, is the president of Rural Contractors New Zealand (RCNZ).
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RURAL NEWS // DECEMBER 2, 2014
OPINION 25 EX-AGRESEARCHER CONCERNED OVER STAFF LOSSES RE THE concerns raised by Hugh Gardyne and others (Rural News Oct 21) about the staff losses from AgResearch. As a former staff member of AgResearch 19682006, and as a researcher collaborating with current staff, I have insights into the skills and personnel who either left AgResearch recently or have been made redundant. While I don’t know how many in total have left, I have verified the numbers for most of the animal-based staff who have departed since the start of 2013. At least 23 scientists and 15 research associates/ technicians have been made redundant or have left, because of the FPP announcements, from two of the AgResearch campuses. In the animal sciences, the skills lost include those in muscle, lactation and reproductive biology and over 490 years collective experience in molecular biology, protein chemistry, recombinant gene technology, embryology, cell biology and immunology. In most of these animal sciences there is no longer any critical mass and only a minimum of institutional memory as it relates to onfarm delivery. This is a massive loss of talent and knowledge from pastoral agriculture and is essentially irreversible. While there are outstanding scientists left in some areas, such as genomics, the outcomes from these disciplines require other scientists with expertise in how specific genes influence animal function including growth, susceptibility to disease and reproductive efficiency. Even if the haemorrhaging of staff were to cease now it is too late and the reinstatement of these skills will take at least a decade to restore. This is a national tragedy. It’s time for AgResearch, especially the directors and chief executive, to stop pretending business continues as usual and to front up and explain to clients how it proposes to deliver science of the future and in which specific directions it plans to go. In this context, it’s worth noting that a novel scientific discovery today normally takes 15 years before a practical solution can evolve. Ken McNatty Professor, reproductive biology and biotechnology Victoria University of Wellington
Co-ops – NZ’s true shared ownership model IAN MACINTOSH
NEW ZEALAND should play to its strengths as the world’s most co-operative economy and consider the co-operative approach to running services in the community and state sectors. The United Nations’ first ever Global Census on Co-operatives places New Zealand at number one in its survey measuring
the social and economic impact of co-operatives in 145 countries. Government – central and local – could look to the success of Kiwi co-operatives to find the solution to growing and retaining our public assets here at home. While this country’s co-op sector has been traditionally agricultural – other nations have stateowned operations such
as power generation, infrastructure, education and many council services successfully run as co-ops. We have much to learn, from overseas and our own history. The spectre of asset sales to foreign opportunists remains a concern to many Kiwis who might consider local co-operatives where profits are retained in New Zealand to be a better
alternative. Let’s consider the pressing needs of a growing Auckland, the nation’s economic powerhouse, which many claim can’t even boast a reliable power supply let alone an integrated transport system. We know we need to invest in our infrastructure to sustain our collective future. But we don’t want to
lose hold of the assets we’ve created and risk being priced out of our own communities. The cost need not mean privatisation – in part or total – of our assets if we instead consider the proven co-operative business model as the best shared ownership model for New Zealand. • Ian Macintosh is chief executive of Cooperative Business New Zealand.
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RECOMMENDED READING AS WE face the uncertainties of climate change, I recommend a book that is down-to-earth yet optimistic. Grass, Soil, Hope— A Journey through Carbon Country by Courtney White (Chelsea Green, 2014) is a mix of travelogue and science. White begins by explaining carbon in some detail – its ubiquity and importance for all life on earth. But with the atmosphere now overloaded with carbon to the point where life on earth is threatened, CO2 is regarded as something of a villain. Our urgent challenge is to restore carbon to the soil and, on his journey, the author observes different ways farmers are attempting to do this. We will be saved by carbon farmers and gardeners who explore and share strategies that sequester CO2 in soils and plants, thus reducing greenhouse gas emissions. Noeline Gannaway Mt Cook Wellington
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RURAL NEWS // DECEMBER 2, 2014
26 MANAGEMENT
Station key to Landcorp’s success As the origin of many Landcorp stud rams and bulls, Waikite Station in the central North Island is pivotal to the SOE’s success. Peter Burke reports WAIKITE STATION is set in the valley of the same name about 30 minutes drive south of Rotorua. It’s a beautiful area with commercial and lifestyle farms and is popular for its hot thermal pools. The station is 1013ha effective, about half easy rolling country, half flat. Stud animals run on the flat: 1300 mixed age Lamb Supreme ewes, 650 Texel ewes, 180 stud Simmental cows. The steeper country carries 2000 commercial Romney ewes which are put Lamb Supreme rams. There are also 120 commercial cows. Lambs from the commercial flock are sold to Silver Fern Farms on contract with those of other Landcorp farms to supply
UK supermarket chain Tesco to a tight specification, usually at 17kg carcase weight. Lamb Supreme is Landcorp’s terminal ‘breed’, a composite with Romney, Texel and Poll Dorset parentage. Waikite Station manager Peter Strawbridge says it was developed specifically with the consumer in mind. “The Texel on its own probably hasn’t got the body size so that’s why the Poll Dorset was introduced, to give it more body size, including length. The Texel is a short, squat breed and Lamb Supreme’s probably four-five kilos heavier.” That said, Lamb Supreme and Texel progeny can deliver what Tesco wants: lean, high yielding, big animals with no fat, he
adds. Electronic Identification (EID) is used extensively with all stud animals tagged. Sheep offspring are measured at weaning, eight and 12 months. “We also eye muscle scan the lambs to ensure they’ve got depth and width of backsteak and the fat content on it.” The information feeds into estimated breeding value (EBV) calculations for breeding stock. “So if the lambs or the sheep’s progeny don’t stack up we use that information to go back and cull the parents on those EBVs,” he explains. Most rams produced at Waikite go to other Landcorp farms, but an increasing number are sold to private buyers. What
people buy comes down to personal preference and the type of farm they run, says Strawbridge. Most Texel rams go to the North Island East Coast where they seem to thrive in the often dry conditions, something he’s had firsthand experience of: before coming to Waikite he managed Landcorp’s Tutamoe Station, north of Gisborne, where he started with Lamb Supreme rams. “I did this because everyone else was using them but one year I couldn’t get the number of rams I wanted and I borrowed some Texels to make up my numbers and I couldn’t get over the differences in the offspring.” Checks using EID at docking and other key timings proved the Texels
Simmentals produce fast growing calves that suit high value markets, says Waikite Station manager Peter Strawbridge.
were performing better in that environment and feedback from the finishing farm where his lambs were sent confirmed the advantage continued. Strawbridge says com-
mercial farmers coming to Waikite to buy rams can be highly critical, but he’s committed to breeding quality stock, working with Landcorp’s Focus Genetics subsidiary.
From his experience, farmers tend to like the Lamb Supremes more than the Texels, but again he says it comes down to personal preference. “We TO PAGE 27
RURAL NEWS // DECEMBER 2, 2014
MANAGEMENT 27 FROM PAGE 26
want the buyer to get in the pen to look at a good sheep. EBVs mean nothing until they have picked a sheep they like and then we go back to look at the EBVs. A lot of managers will ask me to pick out rams for them. If they want 10, I will put 20 in the pen then pick the best ten based on structure and then look at the EBVs.” A geneticist works with Strawbridge, analysing stud flock EBVs and ranking animals. The top 5% are kept for Waikite, a proportion offered for sale and the remainder culled. A Gallagher TSI drafter is used to split stud progeny into five lines, with a final visual check of each. “We put each lamb up a race and let them all walk past us and we check them to make sure they are structurally 100% sound. We have to do this because EBVs don’t mean anything until you have a structurally 100% sound animal on the ground to sell.”
The same process is used with calves, with birthweight added to the data. As with the sheep, the Simmental bulls largely go to other Landcorp farms and some are sold privately. Strawbridge describes the Simmental as a large, lean, high yielding terminal breed with progeny that suit high value markets. In Europe it’s sometimes used for dairying so an Angus-cross produces calves that grow quickly and well. Commercial calves from Waikite go to other Landcorp farms for finishing and commercial stock always come second to the stud animals. Commercial ewes are the ‘release valve’ if feed gets tight as they take a feed cut first or are sold. “We can’t buy a stud back but we can always buy commercial back.” Scanning for foetal age and singles, twins or triplets also helps allocate feed in a drought, he points out.
Nice to be rewarded PETER STRAWBRIDGE was brought up on a 500ha challenging hill country farm rising to 1000m altitude about 50km north of Napier. After boarding at Napier Boys High, he went to Smedley Station training farm and later Massey University where he did a diploma in agriculture. Since joining Landcorp he’s done a diploma in front line management. His first job was shepherding on Kereru Station, then 10 years at Te Rangi Station, a sheep, cattle and deer property on the East Coast. After that he headed north to Pukekohe where he managed a Hereford stud for two years before going to Landcorp’s Tutamoe Station on the East Coast, which he managed for 12 years. He’s been at Waikite for two years, enjoying the challenge of managing the stud farms with all the extra monitoring, measuring and genetics. “It’s nice to get rewarded by the genetics, and by your own personal management style. It tests how good you are, and what works and doesn’t. Even though you have a
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good genetic pool, the main makeup of breeding is feeding…. Get the feeding right and the genetics are… going to produce very good progeny.” His decisions and practices on Waikite would not differ if it were his own farm, he adds. “If you sit down and do the homework and the science behind it, every feed budget is the same on a commercial property as on a Landcorp property. “You have to get your animals through to a certain weight by the end of winter because when the grass starts growing you don’t want to play catch up. Every farm is a grass factory and you are growing animals whether it is for the freezing works or the store market.”
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RURAL NEWS // DECEMBER 2, 2014
28 MANAGEMENT
Bane of barley endemic in seed Agronomy trials and aeroplanes were among the topics aired during the Foundation for Arable Research’s South Canterbury and North Otago field day late last month. Andrew Swallow reports. borne, but what the discovery means for control here remains to be seen. Plant and Food’s Matthew Cromey relayed the
latest findings on the disease to growers at the Foundation for Arable Research’s South Canterbury field day last month
after a trip to the UK. Besides finding the fungus is seed-borne, modelling by Scottish research institutions
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the fungus is seedborne, as well as spore-borne, Scottish researchers are now trying to determine the importance of seed-borne infection in epidemic development. One implication is it may carry different strains of the disease to new areas, assisting a spread of more aggressive or fungicide resistant strains. Seed treatments don’t appear to be very effective on the causative fungus Ramularia collo-cygni which Cromey compared to endophytes in ryegrass. “Early infection is asymptomatic for a long-time. There’s almost a mutualistic, endophytic relationship. The plant grows better in the presence of the fungus as long as you don’t get symptoms.” It’s when those symptoms emerge, causing loss of green leaf area and a consequent reduction in photosynthesis, that yield loss occurs. What triggers symptoms is the question. “It’s not just a wet season. It’s duration of leaf wetness. Regular drizzly rain and dew means you’re much more likely to get serious disease than if you get heavy rains but not for long.” Once symptoms emerge the plant is riddled with the fungus so controls need to be applied before that. “If you wait until you can see the disease that’s too late. By then there’s probably a huge amount of innoc-
Matthew Cromey, Plant and Food Research.
ulum inside the plant.” Sunlight, as well as moisture, seems to be a trigger for symptoms developing, current thinking being the fungus releases toxins when exposed to ultra-violet light. “It may be why we see disease emerge more rapidly and clearly on upper leaves.” In Europe the disease has become resistant to strobilurin fungicides and while there’s no evidence of that in ramularia in New Zealand yet, FAR is calling for samples from infected crops this year to send away for testing. Cultivar resistance is another possible tool, however New Zealand’s cultivar evaluations generally use comprehensive fungicide programmes so identifying differences in disease susceptibility is difficult, Cromey told the FAR crowd. “But a lot of our cultivars are from Europe so perhaps there’s an opportunity to use their results,” he suggested. Asked if New Zealand seedlines had been tested to see if they’re a source TO PAGE 29
FUNGICIDE TRIALS
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SCIENTISTS IN Scotland have found ramularia, the bane of New Zealand barley in recent years, is both seed and spore-
shows all growing areas in New Zealand are conducive to the disease now and will continue to be as the climate changes through to 2050. “So it looks like there will disease potential here in barley for many years to come.” Having established
FAR IS comparing 18 barley fungicide programmes at its South Canterbury trial site, treating April 11-sown plots of the cultivar Cassia with either two or three sprays. In all but one case the first spray was GS3031, followed by a GS39-49 awns emerging spray no more than four weeks later. The exception is a three spray programme stating GS26, late tillering, with a 0.2L/ha Proline + 0.5L/ha Protek mix, followed by Proline + Acanto at GS30-31 and Proline + Seguris Flexi at GS39-49. New SDHI fungicides Adexar (fluxapyroxad + epoxiconazole) and Aviator Xpro (bixafen + prothioconazole) feature at both the GS30-31 and GS39-49 timings, with a couple of programmes adding a Proline + Seguris Flexi ear spray at GS59.
RURAL NEWS // DECEMBER 2, 2014
MANAGEMENT 29
Crop monitoring on auto-pilot ONLY 10-20 years ago the idea of unmanned planes mapping crops was seen as science fiction or the domain of space agencies, but now it’s commercial reality for just $5/ha here in New Zealand. GHM Aerial Ag’s flying wing traverses paddocks on auto-pilot at about 120m altitude taking near infrared pictures of the crop as it goes. “We just set up the GPS waypoints and it flies back and forth,” explained GHM’s Kris McGillivray. In a maximum flight of 45 minutes it can cover 120ha. Once downloaded and reconciled into a single image of the paddock or farm the pictures can give early warning of sub-optimal crop or pasture growth, often long before a problem becomes obvious to the naked eye, explained McGillivray. A more down-to-earth tool also displayed at FAR’s South Canterbury trials site was Smart Ag Solutions’ Veris MSP3 which maps soil pH, texture and organic matter content in one pass (Rural News, March 18). “Basically the ‘3’ indicates it’s three machines put into one,” explained Smart Ag’s general manager Seaun Lovell. During 12m passes across paddocks a detailed picture of one or more of those characters is compiled, allowing growers to fine-tune inputs such as water and fertiliser according to soil-type, and variably apply lime. “We’re seeing a lot of history showing up on the pH maps, such as where the spreader has done an extra lap round the headland to finish off the load, or where lime was once stored or where fences and treelines have been removed.” Even the FAR trial site had a pH range of 5.2-6.6 before lime was applied to correct it. “That’s a huge variation in one 6ha paddock,” he pointed out.
Main event this week FAR’S BIENNIAL Crops event is on Wednesday this week (December 3) at Chertsey, Canterbury, featuring twelve research talks and a host of exhibitor stands. All speaker sessions are repeated morning and afternoon but with several running concurrently
and only eight sessions scheduled, cropping enthusiasts could have some hard choices to make. Speakers include guests from Australia and the UK and the day wraps up with dinner and a talk by farming commentator Steve WynHarris.
Aerial imaging: Kris McGillivray with the Ag Eagle and a resulting crop image.
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Bane of barley FROM PAGE 28
of disease, as has been found in Europe, Cromey said they have, and they are, although there isn’t a quantitative test to determine amount of infection. “Assure Quality have found quite a bit.” Clean seedlines could possibly delay an epidemic, but would
be unlikely to keep a crop diseasefree as spores from infected grass or other barley crops are thought to “move a reasonable distance,” said Cromey. Seed treatments don’t look likely to be of any use, as the only ones that removed seed infection also killed the seed.
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RURAL NEWS // DECEMBER 2, 2014
30 ANIMAL HEALTH
New lepto videos tell bigger story HALF THE human cases of leptospirosis recorded each year in New Zealand are farmers, a turnaround from 15 years ago when meat workers dominated disease statistics, one of a new series of videos from Massey University warns. The series of seven leptospirosis clips, most about six minutes long, aims to provide information to protect people and
stock from the bacterial disease that hospitalises 50 each year, says the university. Dr Jackie Benschop of the university’s Institute of Vet, Animal & Medical Sciences, says the series is important because so many cases of leptospirosis are unrecorded. It’s estimated incidence is about 43 times higher than the number of notified
cases, due to misdiagnosis or issues with accuracy of lab testing. It is also a complex disease, with multiple strains and hosts and an environmental component. “There is a lot going on and we’re passionate about it,” says Benschop, who is part of a world leading team on leptospirosis disease and diagnosis at the institute.
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The videos detail livestock losses due to lepto, some clinical, such as abortions and deaths, some sub-clinical, such as a 10% reduction in deer weaning weights. “One beef herd I dealt with I think had nearly 50% of cows abort and it just doesn’t stop,” points out Waipukurau vet Richard Hilson on one of the videos. “That same year I had a couple of other herds with the same problem. If conditions are right it’s not uncommon.” From a productivity point of view it’s usually young stock that are affected but often quite a few lambs die before a vet will be called and the disease diagnosed. “Once that’s done “we can stop it quickly,” says Hilson. As a later video explains, antibiotic as soon as possible is the treatment, but prevention by vaccination of livestock is preferable, particularly with dairy cows, as it minimises the risk of human exposure and consequent infection. Increased use of hard and stored feed is suggested as a driver for incidence, due to rodent contamination of feed which wouldn’t happen in grazed situations. There are many strains of the disease which may
Protective clothing such as gloves and aprons help reduce risk of contracting leptospirosis.
or may not be benign, depending on the species infected. Symptoms listed in the videos include abdominal pain, lethargy, and jaundice. “Usually there is little disease in the maintenance host and the bug sets up in the kidneys,” says video compere Ian Johnstone. “Those hosts act as reservoirs and can be a source of infection for other non maintenance species including humans. It can cause kidney infections, abortions and death. This
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tends to occur with infection in a non maintenance host.” Contact with an infected animal’s urine, through cuts, splashes to eyes or lips, or food or drink contamination is the usual route of infection. The university has produced lepto information in the past, including a flyer credited with saving farmer Phil Cregoe in 2009. “I had the pamphlet from Massey and I kept trying to be firm but polite saying… I thought the
meningititis-type state he was in was pointing towards lepto,” his wife Jo said at the time when she recognised symptoms missed by doctors unfamiliar with the disease. The latest video and DVD launch was part of a presentation at Rural Women New Zealand’s annual conference in Rotorua last month. To view the videos or request a DVD hard copy, visit http://www. leptospirosis.org.nz/ @rural_news facebook.com/ruralnews
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RURAL NEWS // DECEMBER 2, 2014
ANIMAL HEALTH 31 Canadian calf truck: researchers found weight loss highest in summer, but calves were more stressed in winter. PHOTO: UNIVERSITY OF SASKATCHEWAN
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Research shows calves check on longer rides A LA N H A R M A N
THE LONGER calves travel on a truck, the more weight they lose, Canadian research published in the Journal of Animal Science shows. A team from the University of Saskatchewan found average weight loss on long, up to 23-hour trips was 4.5%, falling to 1.6% for 11-hour journeys. Calves in compartments where higher temperatures and humidity were recorded had higher weight loss than peers in cooler, dryer compartments on the same trip. Non-highway travel and stationary periods caused the highest temperatures and humidities. The researchers evaluated 2,238
beef calves in 24 commercial loads from auctions or single sources to feedlots between September 2010 and November 2012 in Alberta. Ear tags with devices to record temperature and humidity were used on calves, with similar data loggers fitted in various parts of the trailers: deck, doghouse, belly, and back, as well as on the driver’s and passenger’s mirrors to record ambient conditions. Drivers logged cattle conditions before the journey, at stops and at destination. Calves were weaned 24 to 48 hours before transport and had access to hay and water between weaning and transport. Stress was measured before and after transit through salivary cortisol levels, weight loss and
morbidity. Calves transported in summer lost more weight (“shrink”) than winter movements but salivary cortisol levels were higher in winter. Researchers found that despite elevated stress levels most animals arrived healthy and in good condition. However, because of the stress recorded, the authors suggest further research should be conducted on the relationship between transportation and cattle welfare. “The influence of transport did not result in poor welfare within the study population, but may be of importance for higher-risk cattle.” @rural_news facebook.com/ruralnews
CONTROL THE RISK OF ABORTION STORMS, AND MAKE THE MOST OF HIGH DEMAND FOR LAMBS. CONTROL THE RISK OF CAMPYLOBACTER
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With lamb prices strong, major losses of lambs to abortions from Campylobacter and Toxoplasmosis is simply a risk not worth taking. Both diseases are prevalent on New Zealand farms – and potentially on yours. Protect against disease and protect your profits with Toxovax® and Campyvax4® this season. Ordering Campyvax from your vet at the same time as you’re ordering Toxovax can help protect your flock against the two major causes of sheep abortion. Your vet will help tailor a vaccination plan that’s right for your farm.
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RURAL NEWS // DECEMBER 2, 2014
32 ANIMAL HEALTH
Mellor lands gong for animal ethics MASSEY UNIVERSITY scientist professor David Mellor has been honoured for his work on standards applying to the use of animals in science and teaching. The 2014 National Animal Ethics Advisory Committee (NAEAC) Three Rs Award is based on the principle of replac-
ing and reducing animals used in research, testing or teaching, and refining experimental techniques to minimise pain or distress, explains NAEAC deputy chair Dr Peter Larsen. “Professor Mellor’s development of the ‘five domains’ model has extended our concept
of refinement and provided the animal welfare community with a tool to assess the physical wellbeing of animals and their emotional and mental states. “The model measures animals’ welfare from a much broader point of view and recognises the importance of minimising
negative impacts to animals and promoting positive welfare outcomes.” The award is sponsored by the Royal New Zealand SPCA, whose chief executive, Ric Odom, says it promotes the ‘three Rs’ concept in the scientific community and to the wider public. “Before an animal is
used in research, teaching or testing, the benefits of that activity need to be considered against any harm that animal experiences and professor Mellor’s work has been integral to how that’s considered, in New Zealand and internationally.” The award is coordinated by NAEAC and
Massey University’s David Mellor
made annually to an individual, group or institution within New Zealand that best of embodies the principles of the ‘three Rs’.
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The award was presented to Mellor at a workshop for animal ethics committees in Wellington in November.
Wool team expands PGG WRIGHTSON has appointed W Craig Smith business development manager of its wool team, in Christchurch, servicing fine and strong wool customers. Smith’s experience has included 10 years with a wool merchant and exporter overseeing Japanese markets. PGG Wrightson Wool general manager Cedric Bayly describes Smith as “passionate about the product his whole life, having grown up on the family sheep and beef farm in central Hawke’s Bay”. Smith in June visited Clarence House in London for tea with Prince Charles as part of a Campaign for Wool promotion. He will promote wool as a natural, renewable, biodegradable resource. “He understands that this is a twoway street and as consumers make the move back to natural fibre so farmers will need to grow their sheep numbers to maintain supply.”
Control the risk of abortion storms, and make the most of high demand for lambs.
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RURAL NEWS // DECEMBER 2, 2014
ANIMAL HEALTH 33
Water quality an animal health issue ANDR EW SWA L LOW
MENTION WATER quality and the topics that spring to mind are runoff, leaching and the state of our lakes and rivers, but for livestock farmers animal health should be up there too, says a Feilding nutritionist. Even if you’ve never had a clinical problem pinpointed to water, it’s probable that less-thanpristine troughs and ponds are having a subclinical impact on your stock’s productivity, says Lucy Waldron of LWT Animal Nutrition. “There are major issues with blue-green algae every summer,” she told Rural News. “Media reports generally focus on paralysis and deaths among dogs and human health but the blooms produce a range of neurotoxins that will affect all animals consuming contaminated water.” She concedes she now has a commercial interest in highlighting the problem but a mass of published papers worldwide document cases and causes of such blooms, which are generally bacterial rather than algal. While most focus on risk and incidences in human water supplies, there are several references to stock problems, such as Faulkner and Humpage in a 2005 edition of the International Journal of Environmental
KNOCK OUT OUT KNOCK
Research and Public Health. “The massive waterbloom of Anabaena circinalis on 1000km of the Darling River in Australia in 1991 killed a large number of sheep and cattle,” they note. Waldron says in New Zealand, water troughs which often have little or no flow for weeks are an ideal environment for such blooms to develop, particularly where there are rough concrete surfaces. A pilot survey by LWT on a well-run dairy farm found troughs contaminated with campylobacter and pseudomonas bacteria, as well as aphanocapsa, phormidium and pseudanabaena toxic algae. “Exposure to such water-borne pathogenic bacteria can cause gastric disorders and other diseases, impacting on profitability due to reduced milk production and increased mastitis, calf scours and mortality.” There’s also the risk of milk contamination,
resulting in downgrade penalties or even rejection, she points out. In another pilot survey, LWT treated dams visually affected by blue-green growths with the Credence water sanitiser it is now marketing. The result was 80% were kept clean for at least a year. “This was dependent on the water flow in and out and we’ll be doing new trials on this.” Landholders with groundwater supplies shouldn’t think they’re immune to problems, as rising nutrient content in groundwater in many regions means bore water may develop blooms too, once it has had a chance to warm, Waldron adds. “Bore holes are a major problem due to high levels of N entering ground water now, which encourages pathogens such as Clostridia to grow rapidly…. All farm animals grazing with access to troughs and dams are potentially at risk.” Meanwhile many studies of water off roofs show
Lucy Waldrum
such sources are also frequently contaminated. Waldron says the Credence tablets will be available through vet practices and rural retailers and should cost no more than $1.50 each. Each tablet will treat 1000L to drinking water standard. “That compares to about $3.40 for copper sulphate blocks which typically only treat 1000 litres and have been associated with mineral overload problems, particularly in sheep, and a toxin burst from the algae before they’re killed off.” Credence tablets can also be used in a more concentrated solution as a disinfectant which, once rinsed and diluted, poses no risk to stock. “This is particularly useful for calf rearing, for washing down pens, troughs, and cleaning teats.”
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RURAL NEWS // DECEMBER 2, 2014
34 ANIMAL HEALTH
Theileria established in South Island CHECK CATTLE for ticks and anaemia wherever you are, says DairyNZ, following confirmation of what’s thought to be the first case of Theileria contracted in the South Island. A new strain of the dis-
ease has swept the northern half of the North Island and MPI has concluded that a recent South Island West Coast case was likely contracted in Canterbury or the West Coast.
“We’re concerned there may be infected tick populations in the South Island now,” says DairyNZ technical veterinary advisor Nita Harding. “This latest case was linked to cows being grazed in the
Canterbury area and then brought back to the West Coast.” Harding advises monitoring stock for signs of tick or anaemia, particularly weaned calves. “Cases of Theileriosis are
Nita Harding
usually higher in autumn and spring. However, at any time of year, if animals present with signs of anaemia, a veterinarian should be consulted.” She says tick treatments may reduce tick
load and severity of infection, but again, veterinary advice should be sought as to the most appropriate treatment. “This is a disease that can result in serious illness and death of cattle, and has affected some herds quite badly.” The risk of moving young stock to grazier or run-off properties where tick activity and Theileria may be greater than the home property should be carefully considered. More South Island CHOOSE EITHER: Kiwi ½ COB Ham 4.5-5.5kg or Kiwi Banquet Ham 2.8-3.5kg*
cases are likely now the disease has been diagnosed there, especially in Nelson/Marlborough, where ticks are known to be present. “At this stage, we just don’t know exactly the degree of infestation or location of local tick populations and therefore the level of risk to different regions in the South Island.” MPI has reported about 116 new cases since September.
KEY POINTS ● Regularly check stock for ticks and treat as necessary. ● Beware movement risks. ● Reduce underlying disease or stresses such as trace element deficiency, BVD (bovine viral diarrhoea) and facial eczema. ● Be alert to anaemia symptoms: lagging on walk to shed, raised breathing and heart rate, pale vulva and udder, yellow eyes, listlessness. www.dairynz.co.nz/theileria
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LAND USE changes could help soils mop up methane emissions of ruminant livestock, it seems. Lincoln University scientist Dr Sally Price is hoping to get funding to develop guidelines on how to encourage methanotrophs in the soil. The naturally occurring methane-consuming microbes function at only 5-15% of their potential under pasture or cropped soils, but at 30-50% under shrub land and pine forest, says Price. She believes animal digestive processes in respect of methane emissions are not well enough understood to manipulate so the focus has to be on other measures such as soil management. “Many factors influence the effectiveness of soil methane bacteria, with the soil water content, aeration and disturbance being the greatest variables.” Roots of trees and shrubs break up soil and allow methane to reach the microbes, explains Price. Minimising compaction and incorporating organic residues can also increase soil methane consumption. Such practices benefit soil health in general, so following guidelines to encourage soil methane consumption would lead to better soil, she argues.
RURAL NEWS // DECEMBER 2, 2014
MACHINERY & PRODUCTS 35
Massey replays Ed’s Antarctica trek MASSEY FERGUSON is at it again: its 2014 Antarctica2 mission will bring back memories of Sir Ed Hillary’s 1958 trek to the south pole using ‘Fergie’ TE20 tractors. This month, 56 years since the launch of the Massey Ferguson brand, an MF 5610 tractor (110hp) will make a similar trek. The 5000km return journey will begin at Novo Base late November and reach the geographical south pole about mid December. The aim is to highlight the need for technologies and services to enable farmers to produce more food. During its few weeks on the ice the MF 5610 will clock up as many hours operation as an average year’s work on many farms. Also supporting Antarctica2 are Trelleborg, Castrol, AGCO Finance, AGCO Parts and Fuse Technologies. “Antarctica2 is a bold and exciting mission full of exceptional challenges and we are proud to be part of it,” says Warwick McCormick, vice president and managing director for AGCO-Massey Ferguson. “It reflects the spirit of our brand and our desire to achieve, no
matter how difficult or demanding the path.” The MF 5610 has been prepared by Massey Ferguson at AGCO’s Beauvais tractor plant in France. Expedition ambassador and lead driver is Manon Ossevoort – ‘Tractor Girl’ – who once drove a tractor from her childhood home in the Netherlands to South Africa. Also in the party are seasoned polar explorers Matty McNair (lead guide) and her daughter Sarah McNairLandry (guide and audiovisual support), Nicolas Bachelet (lead mechanic) and Simon Foster (creative director and audiovisual lead). Expedition specialists Arctic Trucks will provide guidance and safety support. “It was my dream to
drive a tractor to the end of the world, and I was inspired by Sir Edmund Hillary’s mission,” Manon says. “My journey has inspired other people to talk about their dreams, so I set about collecting these dreams with the goal of taking them to the South Pole.” The MF 5610 has been cold weather tested under the supervision of Massey Ferguson engineering project manager Olivier Hembert. “The polar environment demands the kind of straightforward, dependable engineering for which MF machines are famous,” he says. “Our tractors regularly work in very low temperatures on farms inside the Arctic Circle, for example.”
Lead driver Manon Ossevoort with a MF5610 during trials in Iceland.
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RURAL NEWS // DECEMBER 2, 2014
36 MACHINERY & PRODUCTS
40 years and still rolling out bales FORTY YEARS of making its Roll-Belt balers, and sales of 235,000 machines, is prompting manufacturer New Holland to affix a ’40-year’ decal to a new variant of this globally popular machine, the company says. The latest generation Roll-Belt is said to “redefine” round baling, with technology that can improve capacity by 20% and density by 5%. New Holland introduced the Roll-Belt variable chamber baler series in 2013, with customised feeding systems like the SuperFeed and CropCutter rotor options. The new ActiveSweep crop processing solution also offers “tailored” baling. Now new Roll-Belt variable-chamber round balers are replacing the BR7000 series, with 20% greater capacity. Many
features will enhance productivity, the company says. “The Roll-Belt baler enables operations to specify the baler that suits their needs,” says Greg Moore, New Holland hay and harvest product specialist. “The standard rotor SuperFeed and professional CropCutter variants enable tailored baling. “The all new pick-up, dual density system and endless belt design will deliver significant productivity gains.” The pick-up is redesigned to boost capacity by up to 20% in silage. Buyers can choose between 1.8m and 2m configurations. The standard heavy-duty, five solid tine bar pick-up with reinforced rubber tines – 10% stiffer laterally and lasting five times longer – maintain pick-up performance
in difficult, uneven and stony terrain, says the maker. The new standard feed-assist roll transfers the crop from the pick-up to the rotor while simultaneously merging the flow of the crop to ensure it matches the exact width of the bale chamber. The folding castoring gauge wheels make changing from transport to field configuration simpler. The wheels swing up and round, and are locked in the transport position without having to be removed. The SuperFeed standard 455mm rotor, with New Holland’s ‘W’ pattern fingers, maintains high throughput of all crops. The CropCutter variant delivers the densest bales, with 15 integrated knives for fine chopping.
New Holland super feed.
The maker’s DropFloor function is designed as a time-saver to be operated from the cab. When large wedges of crop block the rotor, the floor is lowered to provide more space in the feeding
zone and baling can continue. The Roll-Belt baler has four 273mm wide belts which prevent losses and improve tracking performance. The increased belt stability ensures a large
contact area with the crop to improve reliability and bale formation. Endless belt technology ensures the belts are strong as there are no joints. This eliminates stretching for uniform bale formation.
And the belts’ texture makes cleaning easier. New Holland is imported in New Zealand by C B Norwood Distributors Ltd. Tel. 06 356 4920 www.newholland.co.nz
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RURAL NEWS // DECEMBER 2, 2014
MACHINERY & PRODUCTS 37
Topper makes short work of keeping pasture in check GA R E T H G I L LAT T
A 2.7M GLABER mulcher has halved the time needed to maintain pasture quality, says Kaitaia grower and drystock farmer David Foster. He raises bulls and grows kumara on his farm on the western edges of Kaitaia. With a relatively light stocking rate, topping has become a big part of the farm’s day-to-day operations, especially during spring and autumn when grass growth can shoot away on him. “There are times of the year when I’m pretty busy on the tractor.” While many commonly top ahead of the paddock to improve pasture usage, this isn’t a concern on his farm and he tops behind cows to even out residue and allow pasture to recover quickly. Topping after ensures pasture quality is maintained and prevents grass getting too thick. “Sometimes the sward gets too dense. If you top it a few times it puts natural nutrients back into the ground.”
He attributes most of the improved performance to the Glaber topper’s construction. Unlike many toppers and mulching mowers using a bar and blade, the Uppercut 2700 has a round disc which takes three sharpened blades. This cuts quickly and cleanly on much of every rotation, claimed an improvement on the action of other toppers Foster has owned. “A lot of toppers are really glorified slashers with two big heavy blades on each end of a swing arm which more often than not just knock the grass down. “The Glaber cuts like a hay mower, meaning I can go much faster and do a better job.” Foster also gets good results in reeds and kikuyu. “I mowed an area, mostly kikuyu, and the result was clean even though the pasture came up above the mower to begin with.” He says the design of the plate also ensures that cut grass is spread right across the paddock and
not gathered up into rows. While belt-driven toppers don’t always have the best reputation for reliability, Foster says Glaber has dealt with this by adding automatic belt tensioners next to the spindles to increase the effective lifespan of the belts. Servicing is easy – greasing done via three grease nipples at the back of the mower. While he hasn’t had to replace belts yet, he says getting to the spindles and belts is relatively easy as “the curved plastic cover lifts off after three hand-adjustable bolts are removed”. The Glaber’s domed plastic cover also keeps grass from gathering on the top of the mower, something Foster says will also further extend its life. “With other toppers bits of grass tend to build up on top, which hold the water and eventually rot the deck. But nothing seems to sticks to the plastic cover.” Tel. 06 8733667 http://www.glaber. co.nz/
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David Foster says his Glaber topper allows him to go faster and make a better job of topping his paddocks.
Attack guards against insects YOUNG BRASSICA, fodder beet crops, cereal or new pasture is closely guarded against insect attack a Nufarm product called Attack. The company advises applying Attack at 200ml/ha with the last WeedMaster TS540 spray before planting the crop to give a clean start. And it says Attack is an excellent first choice for protecting seedling crops from Nysius, springtails, leaf miner, aphids, diamondback moth and white butterfly caterpillars. Kaiso 50WG can be added to the Attack or it may be used alone if cutworm is also a problem.
RURAL NEWS // DECEMBER 2, 2014
38 MACHINERY & PRODUCTS
The world’s most fuel efficient tractor
pendent tests have confirmed DeutzFahr’s position as one of the world’s most economic and fuel-efficient tractors. “These tests show conclusively that the series 6 provides excellent performance in fuel consumption in all types of operations, and with just 272g/ kWh it has the lowest fuel consumption in its power category of all other tractors tested by DLG. “That’s because of the Deutz-Fahr power efficiency concept, which is based on a search for the best integration between engine, transmission and hydraulics to optimise tractor fuel consumption and productivity.” The test found that the 6.1L Deutz common rail engine used in Deutz
The Deutz-Fahr Series 6 has the lowest fuel consumption in their class, according to independent tests.
Fahr’s 6160P model consumed significantly less fuel and had an advantage of 2.5% over rivals in the same category. The results gave the series 6 top placing in its power class. It had an average consumption of 272g/kWh in the PowerMix test, which is the lowest consumption in its class ever tested. Whilst this lower than average consumption is largely attributed to the Deutz Tier 4 engine, it was also noted that its efficiency is enhanced by the ZF Powershift transmission, which minimises power loss, and the 5-stage
‘Sense-Shift’ power shuttle system. The following benefits were also noted by the testers: • Suspended front axle and self-levelling cab suspension giving more comfort and exceptional manoeuvrability. Superior lifting capacity (9200kg) and the possibility of up to seven dual action rear remotes with 120L/min oil flow available. • 4-speed PTO system offered as standard with substantial fuel savings offered in ECO mode • Easy accessibility for engine main-
tenance and repairs with unobstructed access to the entire engine. • Excellent driver ergonomics with an airy Guigaro-designed cab and logical control layout. • PowerShuttle ‘Sense-Shift’ system that ensures easier, smoother directional changes, with ability to select more or less aggressive shuttle action in five steps. • Extremely smooth gear changes provided by the ZF transmission, and redesigned gear lever control. www.powerfarming.co.nz
WMSI479-RN
INDEPENDENT TESTING in Germany has shown the new Deutz-Fahr series 6 Powershift tractors have the lowest fuel consumption ever recorded for any tractor in that class, reports the NZ distributor Power Farming. The PowerMix tests by Germany’s DLG (Deutsche LandwirtschaftsGesellschaft) Test Centre near Frankfurt are an internationally recognised measurement method which determines fuel consumption in real working conditions by simulating a range of applications, including field work, transport and PTO and general mixed work. Power Farming’s national tractor manager Brett Maber says these inde-
OUT HERE, IT PAYS TO BE TOUGH AND WIRY. Simon Fuller, Fuller Fencing, Southland.
A WIREMARK® label is the only guarantee that your netting wire is made and tested locally for our unique farming conditions. It’s tried and proven to endure the rigours of livestock and our extreme weather. Look for the label and insist on WIREMARK®. It’s as tough as a local fencer. Call 0800 WIREMARK today.
RURAL NEWS // DECEMBER 2, 2014
MACHINERY & PRODUCTS 39
SUV with luxury on its mind
The luxury brand Lexus has now released a mid-sized SUV.
M A R K M AC FA R LAN E
WE DON’T often get to drive a Lexus at Rural News, and it’s always welcome. We know we are in for something special when Lexus calls. The luxury brand known for its beautifully crafted, high-tech vehicles has recently released a mid-sized SUV called NX300h. It is about the same size as a Toyota RAV4 or Mitsubishi Outlander but the comparisons pretty much stop there. The exterior styling hides its size with dramatic flares and sculpture lines and only when you walk up to it does it give itself away. Our test vehicle, supplied in burgundy, looked elegant and the colour changed in the evening light as the black fleck took the edge off the bright daylight sparkle. Big 18-inch alloys and dramatic lighting clusters add to the masculine roadside stance. Inside, the immediate impression is an edgy, but luxurious cabin, wonderfully comfortable seats that wrap a little more around the shoulders than most and a dashboard in several layers and sections that make sense as heating and music controls are kept well apart. The clock is analogue and almost watch-like in design. I loved it, but my wife thought it didn’t belong. The gauges are bold with the speedometer and economy dials the two prominent gauges – unless the sport dial is pushed in which case the economy gauge is magically transformed into a tachometer and the dashboard lighting changes to red. Very sexy! If you are performance-minded you will want to keep the vehicle in sport mode as the throttle response is increased and the gears are held longer. In normal or eco mode the car feels smooth and quiet but progress is adequate rather than swift. Handling is very good for this type of vehicle and your inputs are overseen by a host of electronics helping with braking, traction control and stability control. On the 4WD models lane departure warnings, blind spot monitoring and rear cross traffic alert are also included. The cruise control is also radar-assisted to help prevent you rear ending someone. The system will keep you at a pre-selected distance and will bring you to a complete stop if needed. The official consumption figures for the 2.5L hybrid engine are just 5.6L/100km (2WD) or 5.7L/100km (4WD). However, Rural News managed only about 7.9L/100km on a fairly new engine. There is also a 2.0L turbo unit with much more power – 175kW and 350Nm – for which the fuel figures are not listed. Pricing starts at about $81,900 for the 2WD model and the AWD limited model is listed at $95,900.
KILLER DEALS
FLEXI-FINANCE • RATES FROM 1.99% * • TERMS UP TO 5 YEARS YOU CALL THE SHOTS
The versatile and compact RX series is a perfect fit for a variety of applications such as vineyard work, loader work and smaller jobs around the farm. • 76hp Common rail turbo • Power steering Daedong engine • 2256kg rear • 24 x 24 Power Shuttle lift capacity transmission • Auto PTO function • 4WD with diff lock TRACTOR AND LOADER • Creep Box
**
KIOTI RX7620 ROPS (76hp)
46,990*
$
+ GST
With a 120L fuel tank and an exceedingly fuelefficient engine, the 4 tonne PX9020 is designed for serious farmwork. • 90hp Perkins Diesel • Air Conditioning engine (cab model) • 16 x 16 Synchro • 2400kg rear transmission with lift capacity creep box • Auto PTO function TRACTOR AND LOADER • Power steering • 4WD with diff lock
$
**
KIOTI PX9020 ROPS (90HP)
53,990* +G GST ST ST
With its ultra-comfortable cab and new Power Shuttle transmission, the PX1002 is the operator’s favourite. Ideal for front end loader work. • 100hp Perkins Diesel • Air Conditioning engine • 2400kg rear • 32 x 32 Power Shuttle lift capacity with Hi/Lo transmission • Auto PTO function • Creep Box • Power steering • 4WD with diff lock TRACTOR AND LOADER
GET SOCIAL
69,990*
$
+ GST
facebook.com/ruralnews CONTACT YOUR LOCAL POWER FARMING DEALER FOR CRAZY KILLER DEALS ACROSS THE ENTIRE RANGE OF NZ’S BEST VALUE FOR MONEY TRACTORS VISIT www.powerfarming.co.nz
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* Normal lending criteria applies. Contact your Power Farming dealer for specific rates and terms. ** All loaders come with 4in1 bucket. Loaders pictured may vary from those supplied. † Conditions apply.
**
KIOTI PX1002 CAB (100hp)
www.lexus.co.nz
www.ruralnews.co.nz
POWER FARMING
RURAL NEWS // DECEMBER 2, 2014
40 MACHINERY & PRODUCTS The Singh family (from left to right). Manpreet, Harman, Balbir, Philvinder, Paramjit and Malachi (at front). Article and pictures reprinted from Case IH Farm Forum, vol. 15.
When one tractor just won’t do SHUTTLING ONE tractor between two dairy farms was a nuisance so the Singh family bought another – a Case IH Maxxum 115X Bronze. Harman Singh and his wife Manpreet run
their family dairy farm at Kamahi near Edendale, while his father Balbir and mother Paramjit look after their run-off 19km away at Longbush. “We needed another utility tractor capable of
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doing all our work. We do our own cultivation and grow 30ha of fodder beet for winter grazing. It has to tow a 3.0m rotorspike with a seeder, and we make 2500 bales of silage every year. We cut it, line it, bale it and wrap it and then we have to pick up the bales.” The Singhs have a long history with Case IH: Balbir bought a new Case International in 1991 and worked it for eight years on their former farm in Waihi. “That farm had steep hill country and the tractor gave us a good run. We replaced it with a Case IH CX80 in 1999.” They still have the CX80. “It’s never given us any trouble.” The Maxxum in the last 12 months has taken the lion’s share of the work and clocked up 600 hours. Balbir likes the length of the hydraulic arms. “Our neighbour borrowed our rotor-spike, and the arms and PTO of his tractor were so short that it was a battle to get it on. Case IH arms are long enough that you can get between the wheels and the implement, so you can attach it without getting covered in mud.” He says the Maxxum is simple to drive so he is relaxed to have the
workers driving it. And the cab is easy to clean out, which is useful on a dairy farm. There’s no lip so mud and dirt can be swept straight out of the cab. The Singhs get good service from the dealer, Agricentre South. When the Maxxum first arrived, Balbir found the steps weren’t wide enough to safely get a boot on. The dealer made the steps wider. Balbir says the Maxxum’s pulling power is good and the cab suspension is another asset. “I don’t know what they do but the seat is very comfortable. I’m six feet six tall so I need space. “It rides over the small bumps well. You have to hit a decent bump to feel it.” The transmission is a 16x16 powershift so, “I don’t use the clutch anymore, even when loading bales on a truck. There’s a shuttle lever for moving from reverse through neutral and into forward. It’s easy for loading and there’s a smooth transition from neutral to moving.” The Maxxum (115hp) is reckoned a good size for the average dairy farm. www.caseih.co.nz @rural_news facebook.com/ruralnews
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RURAL NEWS // DECEMBER 2, 2014
MACHINERY & PRODUCTS 41 Point, park, anchor – three ways to reduce irrigator damages in wind storms.
PRODUCTION ORIENTATED FARMERS... Are you suffering from:
• Surface ponding of pastures? • Hay & silage being tramped into pasture and wasted?
Pugged paddocks can reduce pasture growth up to 60% DON’T PUT GOOD FERTILISER ON COMPACTED SOIL WHICH CAN’T ABSORB IT If your soil can’t support 15cm root growth and good worm population check for compaction. You could need aeration. In dollar terms, what would 20% production increase mean to your yearly turnover?
AERATORS
Useful lessons learned from 2013 wind storms A JOINT study by rural insurer FMG and Lincoln University suggests three actions farmers and growers can take to help prevent storm damage to their irrigators: point, park and anchor. The research, prompted by the September 2013 Canterbury wind storms, saw 100 irrigator owners talk about how they prevented damage to their machines. The outcome is an irrigator advice guide now available free at www. fmg.co.nz
“Irrigator owners will find the guide very useful,” says FMG’s Conrad Wilkshire. “To our knowledge there’s not another one like it. It’s got sound, practical advice on what people can do in the days and hours leading up to a storm, and measures they can take all year to help keep their irrigator upright.” FMG’s research with Lincoln University highlighted the effectiveness of three steps: point the irrigator downward into the prevailing wind; park (make a parking
space for the irrigator) if possible away from any other objects; anchor, i.e. along the parking space install anchor points to tie the irrigator down. The company says the guide is not a ‘how to’ manual, but a starting point for wider research efforts. FMG paid out more irrigator claims than any other insurer following the 2013 storms; 260 claims were lodged at a cost of $7.6m. Its response to the storm claims resulted in client satisfaction in the
region reaching its highest levels ever, Wilkshire says. “[But] we won’t be resting on this. We too have taken lessons from these storms and as a direct result have changed and enhanced our insurance offering to include nominated replacement cover as well as present day value and clients should call and talk to us about these. We also now have much closer ties in the irrigation industry, including suppliers.”
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NEW Nobili mulchers will be available in New Zealand for the first time in two years, says Silvan New Zealand business manager Hayden Mills. While Nobili mulchers have been a hot item on the secondhand market for 30 years, the presence of new models have trickled off in the last three and there has
been no importer as of two years ago. That changed after the National Fieldays when Silvan New Zealand featured three Nobili mulchers on its site and interest was so great that the company started bringing models into New Zealand. Mills says it won’t be the first time Nobili and Silvan have worked together. “Silvan Australia brings Nobili into there and we
use Nobili for grape sprayer fans. We approached them and said that since we’re already dealing with Nobili in Australia we to should be doing the same in New Zealand.” Interest at the Fieldays was high, Mills says. The company presold some of the first container, even though customers were aware their mulchers weren’t likely to arrive for another two months.
Mills says while the Italian machinery maker has 8m wide mulchers available, in New Zealand the 1-3m models are popular. Most popular here are 30-90hp models. Durability is high, says Mills. “Their basic action and heavy construction make them almost indestructible. The paintwork lasts well considering the hard service. www.silvannz.co.nz
Save tractor hours & reduce fuel consumption. Your greatest asset is the soil you farm DON’T DESTROY IT • Independent trial results available •
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RURAL NEWS // DECEMBER 2, 2014
42 RURAL TRADER
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RURAL NEWS // DECEMBER 2, 2014
RURAL TRADER 43 Weatherstations, unusual gifts and science support for over 40 years...
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