Rural News 3 Sept 2013

animal health

machinery

Tips on teatsprays to minimise mastitis. page 41

Simple machine impresses Southland contractor. page 50

Rural NEWS

research Farm managers are having to deal with a whole new level of complexity.

page 34

to all farmers, for all farmers

september 3, 2013: Issue 545

www.ruralnews.co.nz

Directors in the gun A N D REW SWA LLOW andrews@ruralnews.co.nz

DIRECTORS OF Ravensdown look set to face pointed questions from shareholders at the fertiliser cooperative’s annual meeting later this month. Whether rumours of a vote of no confidence in the chair or board come to fruition, remains to be seen but several shareholders Rural News spoke to said they would be attending to make

sure the board gets the message it must do better. “I will be going to the AGM because it’s a really disappointing result,” Mid Canterbury cropping farmer David Clark told Rural News. “Shareholders were told all the advantages of going into Australia and how it would help spread our debt and costs etc, and now we seem to be getting exactly the same arguments for why we’re getting out… They’ve come

“They’ve come out of Australia like a heading dog that’s touched the electric fence!” out of Australia like a heading dog that’s touched the electric fence!” Ravensdown last month announced pre-tax profit of $6m, down from $52m

Leadership needed

in 2012, and, for the first time in the cooperative’s 35-year history, no rebate. That bitter pill was made harder to swallow by rival Ballance Agri-Nutrients announcing a $93m profit and record $65/t rebate. “There’s got to be a lesson to the directors that they’ve failed in comparison to the competition,” says Clark. “They’ve cost me a huge amount of money. They’ve taken it off my balance sheet to prop up Ravensdown’s.” Ravensdown described shareholder equity in the company of $358m as “solid” when it announced this year’s result. Last year share capital was shown as $285m in the annual report. Except in case of death or exit from farming, share capital is locked into Ravensdown for five years, a period some shareholders say is too long, arguing that it prevents them switching to a competitor and doesn’t keep the board on its toes. to page 4

The 'i's have it! Hew Dalrymple pictured with a second pair of eyes looking over his – and brother Roger’s – farming operation, near Bulls, Manawatu. Actually the word is ‘i’ – as in smartphone technology. See more about Dalrymples’ use of technology on-farm along with the savings and results, on page 24.

p e t er bur k e

A LACK of leadership in agriculture challenges New Zealand’s primary sector, says Chris Kelly, recently retired from heading Landcorp. He spent 13 years in the role, overseeing a transformation: a rise in assets from $450 million to $1.6 billion, and many significant changes in how the business is run. He told Rural News that farming is a disparate business in which the individualistic nature of farmers shows through. And he sees a great need for more high-level leadership. He recalls the days when the minister of agriculture used to be the deputy prime minister. That’s not to say Nathan Guy isn’t doing a good job, Kelly quickly adds, because he is and is very keen on his role. “We have different bodies like DairyNZ, Beef+Lamb NZ and Fed Farmers, but New Zealand lacks a coherent strategic plan and it’s no better illustrated than in the meat industry where they try to form together and talk and fall apart again and so on and so on. “Another challenge is this emerging issue of environmental sustainability; we ignore that at our peril. This has been no better illustrated recently than by the Fonterra debacle.” @rural_news facebook.com/ruralnews

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Rural News // september 3, 2013

news 3 issue 545

www.ruralnews.co.nz

Minister backs MPI over botulism botch-up case su desh kissu n

News ������������������������������ 1-19 World ������������������������ 20-21 Markets �������������������� 22-23 Agribusiness ����������� 24-27 Hound, Edna ������������������� 28 Contacts ������������������������� 28 Opinion ����������������������� 28-32 Management ����������� 33-38 Animal Health �������� 39-43 Machinery and Products ������������������ 44-50 Rural Trader ���������� 50-51 Head Office Top Floor, 29 Northcroft Street, Takapuna, Auckland 0622 Phone: 09-307 0399 Fax: 09-307 0122 Postal Address PO Box 3855, Shortland Street, Auckland 1140 Published by: Rural News Group Printed by: PMP Print Contacts 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 81,232 as at 30.06.2013

sudeshk@ruralnews.co.nz

PRIMARY INDUSTRIES Minister Nathan Guy is backing his ministry’s handling of overseas test results on Fonterra’s whey protein concentrate. Guy denies MPI held back the overseas test results from Fonterra, as hinted last week by the co-op’s chief executive Theo Spierings. Fonterra took the rare step of halting trading in its units on the New Zealand and Australia stock exchanges and publicly demanded MPI release the results. Minutes after Fonterra’s media release, MPI confirmed the bacteria found in WPC80 wasn’t the botulismcausing clostridium botulinum. Guy says he knew about Fonterra’s efforts to get the test results out of MPI earlier. The test results arrived from the

US on Thursday and MPI briefed journalists on the results at 4pm that day. Guy last week told Rural News that preliminary results received two weeks ago said the tests were likely to be negative. “But [that was] not confirmed and MPI rightly waited until the final results Nathan Guy arrived [before it went] public.” At a media briefing last Wednesday, Spierings claimed information had been leaking for four or five days. Fonterra was getting an increasing number of questions from its key multinational customers and other authorities asking the co-op to comment on strong indications the test was a false positive, he says.

“The rumours were getting stronger and stronger and we are a listed company and at a certain point in time we have to disclose what we know and do not know.” After asking for information for three days, and following discussion with the Fonterra board and disclosure committee, the co-op decided to halt trading and make a public statement, Spierings says. Guy says MPI, as a regulator, has played an important role since the botulism scare broke on August 2. A 40-page report last week by MPI, detailing the tracing and verification of potentially contaminated WPC80, will go far to appease international trading partners, he says.

But there are many unanswered questions. “It doesn’t answer all the questions; [many] questions still need to be answered in the inquiry.” Guy says the negative result is “great news” and will help restore confidence in New Zealand dairy products among our trading partners. But he agreed a lot of work was needed to re-open trading links. Foreign Minster Murray McCully visited Sri Lanka and China recently. Last week, Fonterra chairman John Wilson was also in Sri Lanka. Guy says ministers and MPI officials will contact and visit trading partners to relay the test results. New Zealand dairy products are still banned in Russia and Kazhakstan. China has stopped accepting some forms of milk powder. Small exporters of New Zealand infant formula also face difficulties sending infant formula to China.

MIE continues ‘building’ peter bu rke peterb@ruralnews.co.nz

A LEADER of the Meat Industry Excellence (MIE) group, John McCarthy, says the group is in a phase of building into a solid organisation, hence relatively quiet of late, but doing lots of work behind the scenes. Other similar groups have failed in the past because their people have rushed and tripped up, not learning to walk before they run, he says. MIE is determined not to do this. “The facts are this industry in 2007/08 had 27 million lambs, now we are down to 15 to 16 million and it’s going to take a lot to turn this thing around,” he told Rural News. “We’ve got to make

sure we do it right…. All the news from the farming sector… reinforces the need for reform of the meat industry.” The scandals in dairying make clear that New Zealand shouldn’t become a ‘one horse town’ totally dependent on dairying, McCarthy says. “There is a need for a strong red meat sector. We don’t want to have all our eggs in one basket and [the botulism scare] is proof of a need for a red meat sector strategy.” McCarthy says the meat companies have developed their reactions to groups such as MIE to a fine art. “They engage, pay lip service then nothing happens: everything goes away and it’s back to trading the way they were. There is a pattern we have to break.

“It’s understandable behaviour by the meat companies: there is conflict and tension over their rights to trade as individual companies and the shareholder expectations of some of these companies.” MIE believes in a collaborative approach able to generate returns at procurement and in the market place. “There is no doubt the multiplicity of players in the market results in ankletapping on price and this does not result in a stable platform. It’s always a haphazard platform because you are always looking over your shoulder at what your competitors are doing. Are they going to trip you up or undercut you?” McCarthy says a NZ Inc approach is needed, but getting individual compa-

nies to come under a collective banner is challenging because they can’t be forced to. MIE is looking at strategies to effect the changes the group is advocating.

Clarification The second case of internal parasites confirmed as resistant to Zolvix (monepantel) is on a goat farm in the Lower North Island, not a sheep farm, as Rural News suggested August 20. We apologise for the error. For more on Zolvix and parasite management this spring, see Animal Health, starting p39

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Rural News // september 3, 2013

4 news Ravensdown AGM to face tough questions from page 1

“If they hadn’t had that money locked up they’d have never gone into Australia and done what they’ve done,” argues South Canterbury farmer Jeremy Talbot. But Ravensdown chairman Bill McLeod says the five-year clause is essential to make share capital secure. “If we didn’t have that banks would probably consider it not as equity, but as debt,” he told Rural News. And while with hindsight Ravensdown’s Australian venture was a mistake, the main reason the venture failed was the market for fertiliser in Western Australia shrinking from 1.7mt to 1.1mt. “There were some other issues over execution and product quality but the big thing is the market shrank by that amount. One of our competitors there lost $72m this year.” In September last year, after two years losses from the venture (there was a modest profit in the first year) an action plan to increase market share and sales was devised but by January this year it was clear that had failed so “decisive action to pull out” was taken, says McLeod. “Talking to our field staff and shareholders, the consensus I’m

SUDESH K I SSU N sudeshk@ruralnews.co.nz

David Clark

getting is they’re disappointed, but there’s a surprising amount of support. We had a go, it didn’t work, and we did the right thing and got out. People are saying ‘don’t stop innovating or trying these things, it’s just we’ve got to get it right’.” Clark credits new chief executive Greg Campbell, who joined Ravensdown in January, for “getting on and taking the hard decisions.” “He’s being really up front and making the changes: no excuses, no BS, just putting things right.

“We still support Ravensdown with our fertiliser purchases but it needs to stick to its knitting. It was set up to supply high quality fertiliser to New Zealand farmers at competitive prices and that’s where the focus has to be.” The annual meeting will be at Ashburton on September 23. McLeod says the board is considering extending to September 6 the deadline for prior resolutions, owing to the late announcement of the financial result and early meeting date.

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Fonterra and AgResearch at loggerheads

“Everything went together so easily!”

FONTERRA AND state-owned AgResearch are at loggerheads over initial tests on potentially contaminated whey protein concentrate (WPC80). Fonterra says the false botulism scare was triggered by test results from AgResearch indicating the presence of toxin-producing Clostridium botulinum. The co-op’s chief executive Theo Spierings says it “definitely had some questions” about the false positive result, but would not say whether it would take legal action against AgResearch. Fonterra went first to AgResearch for independent testing, in one of its two laboratories capable of testing for the bacteria. “On the basis of the results we received from the AgResearch tests, we had no choice but to alert regulators, and announce a global precautionary recall with our customers,” Spierings says. Then last week MPI said comprehensive tests in the US found no traces of the suspected botulism bacteria in the affected WPC80. AgResearch refuses to divulge specific details of the tests as its contract with Fonterra is bound by a confidentiality agreement. But AgResearch stands by its test results. “We have reviewed our work and are confident in the work our experts carried out and reported to Fonterra,” a spokesman says. “Both the Government and Fonterra are conducting investigations into the issues and we are involved in these inquiries. We have also sought to discuss the concerns raised directly with Fonterra and we are engaged with MPI regarding these developments.” The botulism scare has disrupted

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dairy trade in key markets China, Sri Lanka and Russia. Eight companies who used the contaminated WPC80 were also caught up in the scare. Nutricia, the manufacturer of Karicare infant formula, was forced to recall some products. Spierings believes Fonterra acted correctly in initiating a precautionary recall. “Food safety remains our number one priority,” he says. While expressing relief at last week’s negative test results, he said the co-op was thoroughly reviewing the incident. He acknowledged the confusion and anxiety caused by the complexity of the precautionary recall and apologised for it. “The past few weeks have been very difficult for parents in a number of countries, as well as for our customers, farmers and staff. “For me, as Fonterra’s CEO and as a father of three children, I believe that in initiating the recall we took the right decision and did the right thing at the most critical moment. Given the same circumstances, and with food safety always front of mind, I would do the same again.”

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Rural News // september 3, 2013

news 5

Few unskilled jobs in primary sector p e ter bu r k e peterb@ruralnews.co.nz

FEW ‘UNSKILLED’ jobs are on offer in the primary sector, says Kevin Bryant, head of the newly formed Primary Industry Training Organisation (Primary ITO). And there are few jobs that don’t require basic literacy skills. “In some other sectors where we work, such as water and sports turf, if you are not in training you’re not going anywhere. So strong is the training culture in those sectors, and in agriculture and production horticulture, that there are no jobs you could genuinely call ‘unskilled’,” he told Rural News. “Some have a limited range of skill requirements; most have a wide range of skill requirements, but few have no skill requirements.” Many people are still leaving school with few or no qualifications, so the ITO is helping them with basic literacy and numeracy skills, Bryant says. The Primary ITO annually issues about 4500 NCEA certificates to people who did not gain them at secondary school. “There are a lot of people like that. But as sophistication increases in primary industries, people will need more wideranging skills to be successful. Even those who have been in the industry for a while are finding that technology advances in the workplace [are requiring them] to learn that stuff.” The Primary ITO last week officially came into being, with a new logo and operating as one entity embodying the

Nutricia ‘wheys’ its options pam tipa pamelat@ruralnews.co.nz

NUTRICIA IS “considering its position” on compensation over the Fonterra food safety recall, says general manager Nutricia ANZ, Corine Tap. Meanwhile, it is pleased the independent MPI tests have confirmed what Nutricia’s own testing has shown all along – that there was no Clostridium botulinum in the whey product supplied by Fonterra. Its first priority is to rebuild the trust of consumers in its Karicare infant formula brand which was subject to an extensive precautionary recall in New Zealand. Karicare stage 1 new baby infant formula and Karicare Gold+ stage two infant formula were affected. Nutricia’s testing has always shown no botulism contamination of any Karicare products, Tap says. “Indeed, all our testing – includ-

Nutricia ANZ general manager Corine Tap.

ing additional testing since we were made aware of the issue – showed no evidence of botulism present in any of the products. We have always been confident that all Karicare products on the shelves are safe.” However, safety was the number one priority. “Given the informa-

tion supplied to us by Fonterra at the time, we had no choice but to initiate a precautionary recall of the two Karicare products affected by the Fonterra ingredient contamination.” Tap says Nutricia is working with Fonterra and MPI to ensure this does not recur.

Kevin Bryant

former Agriculture ITO and Hort ITO which merged a year ago, but continued to operate under their original brands. Two years ago there were seven ITOs in the primary sector; now there are two. Merger talks continue with the remaining pair – the Primary ITO and the NZITO, which looks after training in meat, dairy and fish processing. Bryant says the Primary ITO has 11,000 students, mainly in face-to-face learning, but some on-line and some doing correspondence lessons. Their training ranges from basic induction for new entrants to management courses. The curriculum covers 26 sectors and 20 subsectors. The new ITO has 186 staff, most teaching. @rural_news facebook.com/ruralnews

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Rural News // september 3, 2013

6 news

A legacy of success at SOE P E T E R BUR K E peterb@ruralnews.co.nz

RECENTLY RETIRED Landcorp chief executive Chris Kelly believes New Zealand agriculture faces a big challenge in the need for on-farm improvement. “I often describe our animals genetically as formula-one racing cars [running on] 91 octane fuel. We just can’t feed them enough,” he told Rural News. “I was in China recently where they import New Zealand bred cows. At home, these cows on average are producing about 350kgMS/year, whereas in intensive systems in China they’re producing 1000kgMS. So the potential is there in the whole area of nutrition.” Kelly has been responsible for a technology revolution at Landcorp: local broadband, weather stations on farms, huge improvements in genetics, and such technology as Farm IQ and Milk Hub, to name a few. The emphasis has been on gathering data to improve decision making and increase profitability. But interestingly, Kelly points out that while most farms, herds and flocks have got bigger, some advantages of being small have been lost, to the disadvantage of farmers.

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“We’ve got Landcorp not only working together, but also becoming more outward facing where people visit our farms and we do joint ventures.” “We are tending to average things and are finding that the larger farms tend to have a decrease in productivity, because of our inability to measure individual animals. By weighing individual lambs we find some growing at 50g/day and others at 500g/day – and they are in the same mob and getting the same feed. “With cows it’s the same – some producing 50% less than their cohorts in the same herd. I think as we get back to measuring individual animal performance again on a large scale we are going to see a big lift in productivity.” Heading a major culture change in Landcorp is what Kelly sees as his big achievement as leader. Outsiders are certainly in awe of what he has achieved, and he is regarded a highly intelligent, likeable strategist who has transformed the company. His great communication skills and

openness with media and others is something most other government agencies in the primary sector could well emulate, but probably won’t. “When I joined the company we were a very siloed business,” Kelly says. “We had three regional offices and we treated every farm as an individual stand-alone unit. We didn’t swap things and make use of our critical mass. “Now I talk about Landcorp as being one farm with 137 paddocks all working together. I think people underestimate culture in a company. It’s hard to change but when you get it right it’s an enormously powerful tool. We’ve got Landcorp not only working together, but also becoming more outward facing where people visit our farms and we do joint ventures.” Kelly says the SOE is unashamedly doing some ‘industry good’ work by passing on the results of some trials it is running on its farms. Landcorp wants to have a role as an industry leader and help lift the game in agriculture. Plenty of new technologies exist to

Retiring Landcorp chief Chris Kelly packs up his briefcase as he exits the SOE after 13 years at the helm.

improve farming, he says, but Landcorp’s problem is getting highly qualified staff to use them. He is passionate about education and is on the board of the new Primary ITO. “But finding those talented people and, importantly, convincing them that life as a farmer is a good life, is quite a challenge. Nothing gets me wound up more than careers advisors saying, ‘young Johnny is bright so he should be a doctor or a lawyer, but young Eric is not so bright so he should go into agri-

culture.’ That really upsets me.” Kelly leaves Landcorp in a great state and poised to move upwards and onwards. He has played a huge role in developing the relationship with Shanghai Pengxin and others and has set high benchmarks and shown outstanding leadership. Thankfully his experience will not be lost to the primary sector. He’s doing contract work for Landcorp and is a director of a number of companies. Retirement does not seem to be an option.

Rural News // september 3, 2013

news 7

Industry leaders at fault for ag sector’s ‘people failure’ P E T E R BUR K E peterb@ruralnews.co.nz

THE PRIMARY sector has failed to secure its fair share of young talent in recent decades; now insufficient people are available to replace those retiring. That disturbing fact appears in a report by KPMG on people capability in farming. It recommends the industry takes a leadership role in talking to schools to promote agriculture and in working with the New Zealand Qualifications Agency to see whether primary sector needs can be addressed via the curriculum. KPMG’s head of global agribusiness, Ian Proudfoot, told Rural News that careers advisors in schools don’t see the potential and career opportunities agriculture offers. Farming and its many associated industries are still identified with labouring-type work: careers advisors just don’t know or understand how agriculture has evolved – how sophis-

ticated and challenging it now is. Proudfoot sees this as an industry problem: farming leaders have not engaged with teachers to the extent they should have. “And I also think teachers themselves are not comfortable with their background knowledge about the agri-

KPMG’s Ian Proudfoot

cultural sector and the issues.” He says a comment noted during the survey used to compile this report was that if teachers are given content about agriculture and training on its delivery, then they quickly become comfortable with it and start talking about it to students.

Woman ignored KPMG SAYS the primary sector is overlooking the potential of half the population – namely women. Ian Proudfoot says in the past many women have been business partners in name only and have confined their contribution to work around the home. “It’s becoming increasingly recognised that when you are running a multifaceted business that has a range of demands, the female partners in the ownership couple can bring a lot to the table in terms of running that business.” Proudfoot says it’s great to see programmes such as the Dairy Women’s Network or the Agri Women’s Development Trust now helping equip women with the skills to be a full partners in a business.

The report also highlights a perception – an image – of the industry as portrayed to the public. Television advertising depicts farmers as slightly ‘goofy’, and even Country Calendar tends to feature niche or specialised operations that “don’t truly depict the day-to-day realities and challenges for the majority of operators in the primary sector”. This lack of interest in agriculture is reflected in universities, where only 1% of students graduate in agricultural related subjects, the report says. Meanwhile the science community is aging and struggling to attract and retain sufficient people to meet future needs. New Zealand is on the verge of a ‘retirement wave’ that will bite in the next few years. Many science institutions now have to recruit overseas people with requisite skills and experience. The report highlights that young people taking up university studies are

looking for ‘soft options’ and many see agriculture as ‘too hard’. Proudfoot notes that the perceived “anti-social hours” and “hard work” are resulting in young people turning to arts studies involving project and group work, “whereas science degrees still require labs and quite a large time commitment”. “So for [students] trying to fund [themselves] in a degree programme and having to work part-time, the challenge of managing part-time jobs and working in labs can prove too much, so they tend to look at courses with shorter contact hours and they take those easy options.” The ag sector’s challenge is to convince young people about the opportunities on offer. And it must challenge a widely held perception that the primary sector is ‘unsexy’, that companies are not go-ahead and that a business working in a rural area to page 8

8/28/2013 12:00:50 PM

Rural News // september 3, 2013

8 news

Frustrations at lack of meat promotion pam ti pa pamelat@ruralnews.co.nz

B+LNZ IS “frustrated” that meat companies are not meeting it dollar-for-dollar in promotional work; but given the industry fragmentation foreseen if B+LNZ pulled out, promotion may fall through the cracks, says B+LNZ director James Parsons.

B+LNZ has moved “We are continuing looking at this: away from generic is that the space for Beef+Lamb promotion to joint promotion with comto be in or should we just leave it panies. They aimed up to the meat companies?” to progressively bring this up to a 50% should we just leave it up and to be honest, as an contribution from to the meat companies?” organisation, as a board, the meat companies, but Parsons says he believes we are continuing looking had only got up to 30%. promotional work is at this: is that the space “That has been a really important, and if for Beef+Lamb to be in or real frustration for us,

B+LNZ pulled out, a lot of companies would not step into the breach. “That’s their fear of free-rider behaviour. You’ve got a fragmented industry, so you’ve always got one or two players who will say they are not actually in there.” It was difficult to get around this. In answer to farmer B+L farmer director James Parsons says the meat industry needs a circuit breaker.

concerns about returns to farmers, Parsons says all the figures showed there had been gains but “it is a matter of how much was being captured back at the farmgate”. He spent five months on a Nuffield Scholarship looking at the question and

concluded “of all the productivity gains made, we hadn’t banked them, we had traded them away”. “That’s why there is definitely a need for a better structure in the meat industry in the way we transact business.”

B+LNZ farmer meetings quiet

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“We’re in the process of signing contracts and getting work programmes organised.” “Beef+Lamb NZ is concerned we don’t lose that capability. Invermay researchers play a big part in our genetics work so it’s important to us we don’t lose them.” That said, it would be inappropriate for B+LNZ to try to dictate to AgResearch what it does, she added. On the technology front, it was noted that in some cases sheep and beef farmers are limited to what they can use because their internet connections are not fast enough. Munro gave an update on Beef+Lamb’s Red Meat Profit Partnership project, which has Government PGP funding. “We’re in the process of signing contracts and getting work programmes organised.” Not discussed was industry restructuring, a sign farmers are getting better informed about what their levy body does and doesn’t do, Munro says.

‘People failure’

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IN THE northern South Island, last week, director Andy Fox has still to hold his update meetings, but in the central South Island director Anne Munro had held two out of three scheduled update meetings for the region when Rural News spoke to her, The third, at Ranfurly, was on Thursday evening. About 25 farmers attended each of the Fairlie and Oamaru gatherings, she said, where discussion topics included technology and AgResearch’s relocation of roles from Invermay to Lincoln.

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may have zero or limited access to fast broadband and social networks. Otherwise, “young people will simply opt for a job in the city.” The industry must work harder to promote long-term careers in agriculture and employers must invest in professional development for staff to retain them, Proudfoot says. People management skills in the primary sector must be improved; evidence suggests little of this has happened in the past 20 years.

Rural News // september 3, 2013

news 9

Customers remain unfazed claims Fonterra SU D ES H K I SSU N sudeshk@ruralnews.co.nz

FONTERRA’S RECENT botulism scare has not dented customer confidence, says chairman John Wilson. Demand for Fonterra products remains strong on Global Dairy Trade (GDT) auction, he says. “The feedback we are getting from customers is they want to see Fonterra doing exactly what it has done,” he told Rural News. Fonterra achieved its highest-ever monthly revenue from the GDT auction in August, selling 109,664 metric tonnes, worth $685 million. Its August GDT sales volume was up 27% on the same time last year, and revenue up 107%. Higher forward contract prices for Fonterra commodities secured on GDT prompted the co-op last week to raise its 201314 season forecast payout by 30c to $8.12/kgMS. It comprises a milk payout of $7.80/kgMS and a forecast dividend payout of 32c/share. Wilson points out that the botulism scare – found to have been a false alarm in new tests ordered by MPI – was handled well by the co-op, but there may be room for improvement. “With hindsight, we could have had more fluent management and our messaging could have been bit more clear,” Wilson says. “But everyone must understand

it was a complex recall involving multi companies which had used the whey protein in multi products.” Fonterra’s board is reviewing the way the bot-

John Wilson

ulism scare was handled by the co-op. Wilson says the reviews will ensure “if the same situation arises, we can do better”. But Wilson points out GDT customers remain confident in the co-op’s ability to supply safe, quality commodities. Forward sales contracts for October to January remain strong. “Current market views support commodity prices remaining at historically high levels longer than previously forecasted.” Federated Farmers Dairy chairman Willy Leferink says “a rollercoaster month to forget” for Fonterra has ended on a high with the payout announcement. “It has been a hellishly tough month for Fonterra but this revision underlines that the fundamentals of the New Zealand dairy industry remain strong. New Zealand-

Westland ups price INDEPENDENT MILK processor Westland Milk has lifted its forecast payout by $1 to $7.60—$8/kgMS, The co-op says a strong start to the season and continued high international milk prices has resulted in the increase. It will also pay farmers $5/kgMS as advance rate. Chief executive Rod Quin says the 2013-14 season has started strongly with milk flows up 5% on budget. “The mild winter means we have come into spring with cows in good condition and plenty of grass [so] our farmers are well set up for a productive season. While it’s early days yet there is real promise….” Westland is New Zealand’s second biggest dairy co-op with 300 shareholders on the West Coast and 34 in Canterbury. Turnover is $600 million.

ers should rejoice that the immediate financial damage from the recall, and market access issues elsewhere, will not dent the economy. With an eye

to the future… we cannot afford a repeat of this month’s problems, but right now, this confidence in the dairy industry is a huge relief.”

While Fonterra has lifted the farmgate milk payout by 30c, it has not increased the advance rate of $5.50/kgMS to farmers. With only four weeks

into the co-op’s financial year, there were a number of uncertainties, Wilson says. Fonterra will this month provide an update

on its business performance and its 2012-13 annual results. @rural_news facebook.com/ruralnews

Rural News // september 3, 2013

10 news

Bailey to chair red meat profit partnership PA M T I PA pamelat@ruralnews.co.nz

HIGH PROFILE agribusinessman Malcolm Bailey has been appointed chair-

man of the Red Meat Profit Partnership. Bailey is a former Federated Farmers president, a former Special Agricultural Trade Envoy for

the Crown and a current director of Fonterra. He is also a Westpac NZ Ltd director, chairman of the Dairy Companies Association of New

Zealand and a member of the Food & Agriculture International Trade Policy Council (IPC), based in Washington DC. Bailey says: “The Red

Meat Profit Partnership (RMPP) provides an opportunity to achieve a step change in farm productivity and sector performance. We have a

strong consortium of private sector interests co-investing with the Crown and the challenge of helping steer this group is exciting.” The RMPP, which is in the final stages of contract negotiations with the Crown, will invest in projects intended to build capability and make the red meat sector more profitable, confident and productive. $64 million will be spent on the project over seven years: $19.3 million from sheep and beef farmers through B+LNZ, $13 million from industry and $32 million from the Crown. The participating meat companies are Alliance Group, ANZCO, Silver Fern Farms, Green-

Malcolm Bailey has been appointed chairman of the Red Meat Profit Partnership.

lea, Blue Sky Meats and Progressive Meats, two banks – ANZ and Rabobank, business services firm Deloitte, and industry-good organisation Beef+Lamb New Zealand. Half of the RMPP activities will be funded by this private sector consortium, the other half by the Crown.

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IT’S NOT tail-end farmers who are the main focus of the $64m Red Meat Profit Partnership – but lifting the middle farmers into the top end, says Beef+Lamb NZ director James Parsons. The $64m Red Meat Profit Partnership has just appointed former Feds’ president Malcolm Bailey as its independent chairman and a general manager is being sought. The seven-year-old grouping has six red meat-industry participants, plus others, in a Primary Growth Partnership (PGP) agreement with the Crown. Parsons told a recent farmers’ briefing at Wellsford that a B+LNZ comparison of data from 1991-2009 shows many more farmers are losing money, but a lot more farmers are making more money. “The big idea behind the Red Meat Profit Partnership is, how can we tighten that curve up but also shift it to the right?” he says. “People say, ‘why are you mucking around with the people at the bottom who will never change?” But the main focus is on how to lift the middle group to the top end and perhaps the topenders even higher. The tail-enders will still have the same opportunities as anyone else to lift their game. However for some it was a lifestyle choice. Parsons says B+LNZ has traditionally operated in the production space. “The theory has been if we can help farmers boost production, they’ll boost their farm business and therefore profitability. But I think we’ve neglected some of these other areas…. If you are not managing your finances prudently you can undermine your gains. If you are not good at your people and some of this other stuff you are not going to have great profitability.” Parsons says six meat companies have agreed to join the partnership; usually they are competing strongly. This needs an independent chairman and a general manager, now being recruited. The Red Meat Profit Partnership will have four pillars: financial, production, people and compliance, risk management and environment. @rural_news

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Rural News // september 3, 2013

12 news

TPP talks encouraging – Petersen

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THE OUTCOME of the 19th round of the Trans Pacific Partnership (TPP) talks in Brunei is “encouraging”, says Mike Petersen, involved in his capacity as New Zealand’s special agricultural trade envoy. Petersen spent three days there last week and met negotiators from the 12 countries involved. The meetings followed a formal ministerial session earlier in the week. Talks with Brunei were held ‘behind the scenes’. Petersen sees partici-

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pants willing to do a deal, as reflected in the amount of work done towards this. He set up many of the meetings before the talks and talked one-on-one with United States, Canadian, Australian and Japanese negotiators, and with the New Zealand team. “There was a big Japanese presence in particular because it was just their second formal negotiating round. There was a lot of interest by them, particularly by Japanese consumer groups. About 200 media people were at the talks.” The message from New Zealand was clear regarding the outcome of the TPP, Petersen says. “We expect a new generation of trade agreements which adhere to the high level principles signed by the founding partners of the TPP at the initial Honolulu Declaration. “That means we expect a high quality agreement with tariffs reducing to zero, preferably over a short time. We are happy to be creative about how we can help in the transition period, but tariffs must come down to zero and it must be across all items.” Tariffs cost each New Zealand sheep and beef farm $18,000 a year just to get their products into markets, Petersen

Mike Petersen

says. Kiwifruit orchardists pay about $40,000. “[We need to] knock that cost down; that’s a huge amount off the bottom line for sheep and beef farmers.” Petersen told Rural News a successful TPP agreement will set the tone globally for trade

reform – a big call, but in the short time Peteresen’s been in his new role he’s fielded calls from people in other countries not involved in the TPP wanting to know what’s happening. @rural_news facebook.com/ruralnews

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Rural News // september 3, 2013

news 13 One Plan saga flows into elections PETER BU RKE peterb@ruralnews.co.nz

Customer reception to SunGold has been positive, seen here at the Zespri Baseball Tournament in August in Kumamoto, Japan.

Ray of sunshine?

TWO FORMER staff members of Horizons Regional Council are standing for the council in the upcoming local body elections – a move which may revive the One Plan debate. A former senior executive of the council who played a major role in the development of the controversial One Plan, Greg Carlyon, is

standing in the Palmerston North City constituency, and Alison Russell who headed up the compliance group is standing in the ManawatuRangitikei constituency. Russell is up against two sitting councilors, chairman Bruce Gordon and farmer Gordon McKellar. Also standing in that constituency is well-known farming leader Shelly Dew-Hopkins, making for an interesting election. In the Tararua constituency, sit-

ting councilor John Barrow is being challenged by Andrew Day. Carlyon says it’s pure coincidence another former staff member and Day are standing. He says there is no formal alliance between the three or any other candidates, but there is likely to be common ground. Carlyon says though he lives in Marton he is standing in Palmerston North because that’s where he works and spends most of his time.

PA M T I PA pamelat@ruralnews.co.nz

POSITIVE SIGNS are emerging on Zespri’s Psa-V recovery pathway as the new SunGold variety heads towards surpassing peak sales of the old Gold within a few years. Zespri’s recently commercialised SunGold – also known as Gold3 – is enjoying solid sales in 2013 and a great reception from consumers around the world, the company says. About 70% or 2282ha of Hort16A, the old variety which proved highly susceptible to Psa-V, has been regrafted to Gold3. Overall about 4000ha of Gold3 (SunGold) has been licensed in New Zealand now, a Zespri spokesman told Rural News. A projected 50 million trays sales by 2018 surpasses the record volume of Zespri Gold (Hort16A) of 22.5 million in 2008. Zespri president of global sales and marketing Dan Mathieson gave growers an update during a recent visit to New Zealand and spoke about the growing level of confidence customers have in SunGold. The new variety is juicy with a refreshing sweet/sour taste, he says. There’s been a positive response in Japan, Asia, Europe and North America. “With an increased volume, we’re now able to transition from Hort16A (Gold) to SunGold in more key markets and sales are going well,” says Mathieson. With volumes expected to reach 50 million by 2018, Zespri is looking to broaden the market mix for SunGold and promotions are underway in Asia, Europe and developing markets. Overall Zespri gold volumes are down this year due to the changeover from Gold to SunGold and the effects of Psa. Zespri has allocated fruit across markets to create a platform on which to build when volumes recover from 2014 onwards. Most of this year’s SunGold crop was sold in Japan – an important and long-standing market for Zespri Gold – and large allocations went to Korea and China. Customers, distributors, wholesalers and retailers are being ‘educated’ about the new Gold variety. SunGold has a different shape and taste profile to the original Gold. “New products are always challenging but we have confidence in the market appeal and supply chain performance of SunGold,” says Mathieson. “The fruit quality has been good this year and if we continue to get it right, we have every faith in the success of this variety.”

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Rural News // september 3, 2013

14 news

Golden harvest puts industry back on track SU D ES H K I SSU N sudeshk@ruralnews.co.nz

THE WINE industry is seeing the first signs of renewed interest in new

vineyard development, showing there is new optimism in the industry, says New Zealand Winegrowers chairman Steven Green.

Five years ago the New Zealand wine industry suffered a supply imbalance as producers made more wine than they could sell. Grape prices slumped and

vines were ripped out. But a record 345,000 tonnes of grapes were harvested this year producing 250 million litres of wine. The 2013 crop is up 28% on

the small 2012 harvest but up only 5% on 2011. Green says New Zealand’s reputation as a premium producer will be enhanced by the

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NZ Winegrowers chair Steven Green says NZ’s reputation as a premium wine producer will be enhanced by the ‘golden harvest’.

“golden harvest”. “While this represents a big step up from the light 2012 vintage, the increase is demand-driven,” he says in NZW’s 2012-13 annual report. Green says feedback from wineries indicates they harvested in line with sales projections. However, for some wineries sales are still likely to be constrained by a shortage of grapes in the year ahead. Demand also drove higher grape prices, forecast to average about $1600 per tonne. Combined with the larger crop, this gave growers their best year since 2008, allowing vineyards to start ‘catch-up’ capital spending and repay debt. But Green cautioned that finding the right balance between supply and demand is tricky. “Wineries need enough stock to build markets, but not so much as to get ahead of demand. To the extent permitted by nature,

growers respond to signals from wineries in dialling up or down production volumes. “If, as expected, wineries have a successful 201314 sales campaign, many will see scope to extend production further in 2014 and that message will be passed back to growers. “Beyond that we are seeing the first signs of a renewed interest in new vineyard development, a signal of new optimism in the sector.” For the New Zealand wine industry, the recovery is well under way from the 2008 supply imbalance, Green says. “We have a vintage of marvellous quality to sell. The sales prospects for the year ahead look positive.” But he cautioned that if the industry is to learn from the recent past, new plantings must be marketled and demand driven. He says it’s clear there are still challenges for growers and wineries, and supply discipline remains essential.

In the top 10 NEW ZEALAND is the world’s eighth largest wine exporter by value. While production is relatively small, high priced premium wines place New Zealand in the big league, says Steven Green. Major growth opportunities are now seen outside the traditional markets UK and Australia. Growth potential abounds in the US and Canada.

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Rural News // september 3, 2013

16 news

Genetic base mergers heading for farmer vote PA M T I PA pamelat@ruralnews.co.nz

FARMER APPROVAL is required for a Beef+Lamb NZ proposal to merge

three of its genetic bases. The plan to form the new entity, Beef+Lamb Genetics, will go to levypaying farmers in November, says B+LNZ director

James Parsons. The proposal will amalgamate Ovita, Sheep Improvement Ltd (SIL) and Central Progeny Test (CPT) into Beef+Lamb

Genetics. Funding for the five-year programme will be $8.8m with B+L providing about $2.9m of that. The proposal will not require a change to the

B+L farmer levy in the coming year. It will remain at 60c per sheep and $4.40 on cattle, excluding bobby calves. The present financial year

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The vote on merging genetic bases will go to farmers in November.

ends in September. Parsons outlined the background to a farmer briefing at Wellsford. The NZ Meat board has $18 million in reserves, he says. B+LNZ can apply to use some of the interest generated by those reserves on research and activities. They must be capital expenditure items. B+LNZ plans to apply for $2.3 million for B+L Genetics. The meat board has been funding Ovita for some years. “We’ve teamed up with AgResearch to develop genomic selection tools for sheep farmers, mainly used by ram breeders,” Parsons says. “In laymen’s terms, you can take a DNA sample from a lamb at docking time or when a stud breeder tags a lamb; they get a DNA sample off to the lab and they come back with some predictions on what the genetics of that animal are.” Traits sought include for fertility, higher yield and they are event working on facial eczema resistance. “They haven’t quite cracked that one,” Parsons says. The information enables breeders to predict those traits and make genetic selection earlier rather than waiting two or three years until progeny are produced. “There’s some exciting stuff coming out of that Ovita programme.” B+LNZ has been putting in $2 million a year and the Government matches it dollar for dollar but the five year term on that is coming to an end. The Government is likely to approve another term. But B+LNZ also has two other sheep genetics programmes, SIL and CPT, which it funds at $450,000

each, with no Government contribution. “We plan to put all those together and leverage those with the Government and rebrand it Beef+Lamb Genetics NZ.” “I do a bit of a straw poll with farmers on whether they realise this is what they own and fund; most of them aren’t aware of it.” With Sheep Improvement Ltd about 85% of rams sold in New Zealand are run through that genetic engine to work out breeding values, he says. With CPT, rams from different farmers’ management systems are put in the same environment and over the same ewes to see how they perform. “That powers up the predictive values about SIL. The plan is to put those together and get a lot more synergies with the work with Ovita, SIL and Central Progency Test, and leverage a lot more funding out of the Government. “With that programme, Beef+Lamb Genetics, because we’ve put them all together in a five year commitment, that tips us over the threshold to require a farmer vote.” One farmer questioned B+LNZ involvement, saying the work in genetic gain was being done by the breeders themselves, by private enterprise. But Parsons said that was not correct: 85% of the rams sold in New Zealand are owned by SIL. “It’s a five year programme totalling $8.8m with B+LNZ funding about $2.9m. I reckon whatever way you look at it that’s not bad in terms of leverage. Genetics gains in sheep have been phenomenal. No ram breeder can do that stuff on their own.”

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Rural News // september 3, 2013

18 news

60% LEAF IN Change needed or meat 60-90 DAYS * industry in ‘death grip’ 15 tDM/ha. Beef+Lamb farmer director James Parsons says the meat industry needs a circuit breaker.

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THE MEAT industry is almost locked in a death grip and needs a circuit breaker, says Beef +Lamb NZ farmer director James Parsons. Some big players could be reporting more losses this year and he wouldn’t be surprised to see one of the meat companies go broke. But he says farmers need to directly tell meat company managers and executives about their concerns and it was surprising how few did so. Parsons made his comments in response to farmers’ heated expression of concerns during a recent B+LNZ briefing at Wellsford. Mainly beef farmers at that meeting were vocal about returns at the farmgate remaining stagnant despite the push for increased profitability over the past 20 years. One farmer also said the meat companies “are actually fighting us as farmers”. They outbid them for “good cows” at the saleyards, cut their heads off and they’re gone. “So here we are supplying them and they are fighting against us,” he said. Parsons said as he fronted B+LNZ meetings he often ended up having to comment on the meat companies, although he was not their spokesman – so “don’t shoot the messenger”. He said meat companies had over-capacity issues; they had to meet the orders from their customers and it created “a vicious circle”. “You’ve got third party agents, a whole lot of people doing all sorts of different stuff – all exacerbating the problems. We are locked into this model, this system of doing business in terms of the way our supply chain is structured that drives a lot of those behaviours.”

“We need to pull ourselves out of that system into a new one where we have incentives in the right places that stop some of those behaviours.” He said human nature is such that we will always work the system to get maximum benefit for ourselves, and he would not make a value judgment on individuals. “We need to pull ourselves out of that system into a new one where we have incentives in the right places that stop some of those behaviours. The big issue we are all grappling with is not what we need to do, it is how we get there. “You’ve got a very fragmented meat industry, low profitability – I suspect there will be more losses this year by some of the big players…. “Then you get one or two of the big companies who try and

do something responsible but the others come in and chop them off at the knees and try to steal some of their suppliers. “So you are almost locked into a death grip in the meat industry and that’s where there needs to be a circuit breaker – be that tradeable processing rights or amalgamation of some of the entities or it might be that one of them goes broke.” Parsons said B+LNZ is pushing for change and talking to meat companies. But individual farmers also had influence. “It is amazing how many farmers don’t tell their meat companies. Not just your drafter who might drive in the gate… let’s get on the

phone to either the chief executive or the marketing manager of the meat company and start grilling them about some of this stuff. Put the heat on them, because, I tell you what, there is nothing a meat company dislikes more than a supplier who moves on, if they know the reasons why. “That’s the fastest way to get their attention.” He also advised them to align themselves to a company which has a similar philosophy and set of values. “There’re quite a few to pick from.” Meanwhile he said farmers should still take opportunities available to make improvements behind the farmgate. “Evidence shows there are people who can still make money. If we are shifting the blame we can fall into this place of paralysis.” @rural_news facebook.com/ruralnews

8/28/13 10:55 AM

PH 0508 726 726

www.sammachinery.co.nz

SAM, the name behind New Zealand farmers for over 50 years KingSt11910_RN_B

Rural News // september 3, 2013

news 19

Inquiry will find answers – Kaye p e ter bu r k e peterb@ruralnews.co.nz

FIND OUT what happened and restore and build confidence in New Zealanders and its trading partners. Those are the outcomes Food Safety Minister Nikki Kaye wants from the ministerial inquiry into the whey protein contamination disaster. The issue is a wake-up call for New Zealand, she says, but better, stronger food safety systems will result. The inquiry will be in three parts, the last two looking at regulatory, legislative and best practice requirements; Part A will be wider and is likely to draw on material and evidence from other investigations by Fonterra and MPI. Kaye told Rural News she sees parts B and C as an independent check

on our food safety systems and the whole supply chain, including processes for testing and reporting. She expects this part of the inquiry to be completed within three months. “The reason Minister Guy and I put a threemonth deadline on that is that we recognize all those farmers and food businesses out there can’t wait and have this lingering. We’ve got to get on and restore confidence in our trading partners and New Zealanders.” Given that New Zealand exports millions of food products each year, there always have been and will be quality assurance issues because “you can’t have a perfect system,” Kaye says. “I’m hoping the second part of that inquiry will [set the event] in the context of comparable jurisdictions and [show] where we have been in our food

safety systems and what is the error rate. I want… advice on where there needs to be strengthening. I am working on areas where I think we can do better but I am not prepared to say until we have the evidence.” Currently the Food Bill, which contains some changes, is before a select

committee and Kaye has written to the chair about possibly delaying the bill pending the outcome of the various inquiries, then perhaps making changes. An event such as this must be seen in perspective, Kaye says. It is disappointing but the inquiries will get to the bottom of the problems.

“There will be a check on our food safety systems because we have high standards. We then need perspective and context in respect of what other countries do and the potential natural error rate: that’s the balance we are trying to achieve. “My role as Minister for Food Safety is obviously

@rural_news facebook.com/ruralnews

Sharing 108 years of hindsight.

Devil in detail WHILE PARTS B and C of the inquiry will be completed within three months, the duration of Part A is less certain. Miriam Dean, QC, is to chair the Part A inquiry; two other members are still to be appointed. A secretariat will work in the Department of Internal Affairs (DIA), not in MPI. Venue and timing will be for Dean to decide. Food Safety Minister Nikki Kaye says the reporting deadline for Part A will depend on the duration of MPI’s compliance investigation of Fonterra. MPI indicated last week that their investigation could take three-six months.

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BALANCE AGRI Nutrients has appointed Richard Hopkins chief financial officer, succeeding David O’Reilly who recently retired. Chief executive Larry Bilodeau says O’Reilly made a significant contribution to the business in his 24 years of service and has left Ballance in good hands with Hopkins. Under O’Reilly’s guidance Ballance has evolved and grown to become one of New Zealand’s ‘top 40’ companies, Bilodeau says. “When David started we were a relatively small business with revenue less than $100 million, and almost two decades later he has helped our revenue grow much closer to $1 billion. I thank him for his immense contribution and dedication to the co-operative.” Hopkins has been with the co-operative since 2011, joining as business development manager. “We are fortunate that we have such a strong candidate within the business and with Richard’s depth of knowledge we expect him to be a very capable successor to David,” Bilodeau says. Before joining Ballance, Hopkins was the director of corporate finance at Westpac Institutional Bank. He is Master in Business Administration and Finance and BSc (Hons) in chemistry.

to see that we have high standards and to understand and be able to present the fuller picture of how we sit compared to the rest of the world. The inquiry is an opportunity to show that.”

That’s what works out here.

Nikki Kaye

Rural News // september 3, 2013

20 world

Woeful Wallabies make Aussie politicians look good! ST E PHE N CO O K E

the farmer – or the current Labor Government, at first led by Prime Minister Kevin Rudd, before backroom factions deposed him and installed Julia Gil-

FORMER ALL Black Richard Loe likes to discuss rugby with beleaguered Australian guests on his radio farming show. Yet, despite another insipid performance in the Bledisloe Cup, I’d rather defend the Wallabies in a pub full of Kiwis than talk too much about our political Kevin Rudd parties. It’s much less depressing. lard, only to switch their Australians will vote allegiance back to Rudd in a new government in June. this Saturday, and the And you thought the voters are in an unenviWallaby scrum was a mess. able position. They must It seems the country is choose between the Libleaning towards the devil eral-Nationals coalition they don’t know because – notionally the friend of

polls suggest Tony Abbott will be named Prime Minister. This bloke would not be elected against any other government (fair dinkum, puddles have more depth) but the electorate has signalled they want a fresh start after years of chaos caused by the minority Government Gillard was forced to cobble together to govern. Abbott has made his party a small target. He has offered little policy, instead harping on about the Government’s failings – perceived and real. Labor is also offering little

in the way of real policy, apart from that concocted on the run (a Rudd trademark). While in power, the Labor Party launched the National Food Plan, to try to boost farmers’ fortunes, and the Asian Century White Paper, to strengthen ties with the Asian economies on our doorstep. White papers are good for headlines, but little detail has appeared. The Opposition hasn’t released any agricultural policy. Opposition ag spokesman John Cobb says he has been in constant discussion with the nation’s peak farming body, the National Farmers Federation. The NFF says they are

It’s not just on the waiting for details. I know rugby field that we’re who I believe! One area critical to the getting smashed by you blokes. growth of Australian agriLabor did not achieve culture is free trade agreeany FTAs during six years ments with our Asian neighbours, like those helping fuel the New Zealand dairy industry’s growth. Our biggest dairy proTony Abbott cessor, the co-op Murray Goulburn, has in power. As the Coalition previously publicly called has not revealed any policy for the Government to detail there’s no telling “get off their bum and do something in Malaysia and what they plan to do. Neither party has inspired China.” the Australian electorNew Zealand good ate. There’s more leaderimported to China attract ship in our national cricket tariffs of 0-7% and this team recently thrashed 3-0 will fall to 0%. Austraby the Poms than in our lian exports to China curmajor parties. rently attract a 10-15% Some voters will tariff. China has lifted its choose along party lines, imports from 309 billion even though those partonnes in 2001 to 3831 bilties are treating them lion tonnes last year.

Rural News 17x3 Dairy News

like mugs. Those looking for policy are also being treated like mugs. It’s a sad state of affairs and it may take some lateral thinking to get the country out of this mess. The Wallabies called on Robbie Deans to make them a world force and his failure to do so doesn’t mean we shouldn’t try again. Murray Goulburn managing director Gary Helou last year publicly praised your former PM Helen Clark for signing the world’s first FTA with China. Seems she got things done. Australia needs to put in a call. We need her more than the UN does. I can see the slogan now: All the way with Helen, eh! • Stephen Cooke is editor of Dairy News Australia, published by Rural News Group.

Notice of Elections Fonterra Co-operative Group Limited Board of Directors, Shareholders’ Council, Directors’ Remuneration Committee and Fonterra Farmer Custodian Trust Notice is hereby given that the following four elections will be held concurrently in 2013 for Fonterra Co-operative Group Limited. Board of Directors: Shareholders’ Council (14 Wards):

Directors’ Remuneration Committee: Fonterra Farmer Custodian Trust:

Election of Three (3) Directors Election of One (1) Councillor in Wards 3, 6, 8, 9, 12, 15, 18, 21, 24, 27 and 30, an extra Councillor in Wards 31 and 32 and Two (2) Councillors in Ward 33 Election of Two (2) Members Election of One (1) Farmer Custodian Trustee

Invitation for Candidate Nominations Nominations are called for candidates to stand for these four elections. Fonterra shareholders are eligible to stand for all four elections. Nomination forms and candidate handbooks can be obtained from the Returning Officer. Nominations must be received by the Returning Officer by 12 noon on Friday, 13 September 2013. Elections for Shareholders’ Councillors To ensure a more accurate representation of Shareholders (based on the number of farms and Milk Solids produced) an extra Shareholders’ Councillor will be added to Wards 31, 32 and 33. These terms will be for one year by which time a complete ward boundary review will have taken place and appropriate amendments to existing wards implemented in time for the 2014 election cycle. In the case of Ward 33 where there will be two vacancies (one due to retirement by rotation and one via an extra position) both terms will be for one year. The term for Ward 8 will be two years. Further details on this will follow in the coming weeks. Elections will be held in the following 14 Wards for the Shareholders’ Council: Ward 3 Northern Wairoa Ward 6 Hauraki Ward 8 Hamilton Ward 9 Morrinsville Ward 12 Cambridge Ward 15 South Waikato Ward 18 Otorohanga Ward 21 Coastal Taranaki Ward 24 Southern Taranaki Ward 27 Southern Manawatu Ward 30 Northern/Central Canterbury Ward 31 Mid Canterbury Ward 32 Southern Canterbury Ward 33 Otago Warwick Lampp, electionz.com has been appointed as the Returning Officer for the 2013 Fonterra Elections. For further details, call the Election Hotline on free phone 0508 666 446 or contact the Returning Officer at elections@electionz.com. Warwick Lampp Returning Officer – 2013 Fonterra Elections Email:elections@electionz.com Election Hotline: Free Phone 0508 666 446

Rural News // september 3, 2013

world 21

UK food campaign jumps into fast lane A CAMPAIGN by UK farmers to promote local food is moving into top gear. Banners alongside motorways throughout the country are asking motorists to buy British produce. Spearheaded by the National Farmers Union and the National Pig Association, the campaign follows a similar successful scheme of banners on farmland nationwide. Organisers say the aim is to erect banners near prime locations. So far at least 130 banners are on display. Key motorways such as the M25, M6, M4 and M1 will carry the message for up to eight weeks. NFU president Peter Kendall says banners that went up last month drew

“a fabulous response”. “Many people reacted positively to the message we are trying to get across, which is to back British farming wherever possible. “Now these banners are being taken to a whole new audience, and we hope the message continues to resonate and ensure more British food ends up on more British plates.” The campaign also has the support of the Red Tractor, a food assurance scheme which covers production standards developed by experts on safety, hygiene, animal welfare and the environment. Backed by farmers and retailers, the Red Tractor logo appears on food packs.

Aussie sheepmeat exports surge AUSTRALIAN FARMERS are exporting record volumes of sheepmeat, thanks to a lower exchange rate and strong demand. In its mid-year projections, Meat & Livestock Australia says a forecast reduced supplies from New Zealand for 2013-14 is also helping its farmers. Good rain across southern Australia during winter has also boosted the industry. MLA chief economist Tim McRae says the outlook of lamb and sheepmeat producers remains positive for the rest of this year. “Record export volumes due to the increased slaughter rates during the past year are likely to continue, due to the A$ hovering around US90¢ and the forecast reduced supplies from New Zealand for 2013-14,” he says. The US, China and Middle East remain the key lamb export markets for Australia, accounting for 66% of export volumes in 2013. Exports to the Middle East are forecast to increase by 10% to reach 56,900 tonnes swt, while exports to China are forecast to increase 22% to 36,000 tonnes swt. The US remains the highest value market with 38,100 tonnes swt. While the growth in export markets has been considerable throughout the past decade – with 51.5% of lamb produced in 2013 exported – demand through the Australian domestic market remains strong and is still the largest single market for Australian lamb. The forecast for live sheep exports remains at 2 million head, down 12% on 2012 due to the suspension of trade to Bahrain. Kuwait remains the key market for Australian live sheep and is expected to import 820,000 head in 2013. McRae says the seasonal conditions into spring will be crucial in determining the timing and volume of lamb supplies during the first half of 2014. However, the tough breeding season of 2012-13 is expected to reduce overall lamb supplies and put upward pressure on prices, with the main impact anticipated in early 2014, he adds.

Red Tractor Assurance head of marketing and communications, Richard Cattell, says in the summer holidays many people will be travelling around the UK. “It’s a great time to showcase our banners on motorways… to encourage people to trust the Red Tractor logo and what it stands for – traceability, animal welfare, food safety and environmental protection.”

Rural News // september 3, 2013

beef market trends

Market snapshot Meat c/kgCWT

Lamb - PM 16.0kg

North Island

South Island

Change c/kg

Change c/kg

Last Week

Last Week

+10

5.58

+10

5.58

+5

4.70

n/c

4.35

Steer - P2 300kg Bull - M2 300kg

n/c

4.50

n/c

4.15

Venison - AP 60kg

+15

7.20

+10

7.40

BEEF PRICES

LAMB PRICES Change

c/kgCWT NI

+5

P2 Steer - 300kg

Jun

Jul

Aug

Sep

Oct

Nov

South Island 16.0kg M Lamb Price $6.5

$5.5 5yr Ave Last Year This Year

$4.5 Jun

Jul

Aug

Sep

Oct

Nov

5.56

5.46

5.46

4.30

PM - 16.0kg

+10

5.58

5.48

5.48

P2 Cow - 230kg

n/c

3.65

3.65

3.70

PX - 19.0kg

+10

5.60

5.50

5.50

M Cow - 200kg

n/c

3.55

3.55

3.60

PH - 22.0kg

+10

5.61

5.51

5.51

Local Trade - 230kg

+5

4.80

4.75

4.40

Mutton

MX1 - 21kg

n/c

3.25

3.25

3.30

P2 Steer - 300kg

n/c

4.35

4.35

4.20

SI Lamb

YM - 13.5kg

+10

5.58

5.48

5.41

M2 Bull - 300kg

n/c

4.15

4.15

4.00

PM - 16.0kg

+10

5.58

5.48

5.43

P2 Cow - 230kg

n/c

3.10

3.10

3.30

PX - 19.0kg

+10

5.58

5.48

5.45

M Cow - 200kg

n/c

2.95

2.95

3.10

PH - 22.0kg

+10

5.58

5.48

5.46

Local Trade - 230kg

n/c

4.50

4.50

4.40

n/c

3.13

3.13

3.15

Change

MX1 - 21kg

NZ Slaughter

Estimated Weekly Kill 3 Wks Ago

Mutton

Last Year 5yr Ave

1000s

Jun

Jul

Aug

Sep

Oct

Nov

33.4

38.8

34.0

36.7

Lamb NI

-8%

141

152

158

145

19.4

23.7

16.9

15.1

-9%

129

141

132

135

Cattle NZ

-16%

Lamb SI

52.8

62.5

50.9

51.8

+3%

Lamb NZ

-8%

270

294

290

280

Bull NI

6.9

6.7

7.2

7.3

-28%

19

26

24

36

Bull SI

-55%

Mutton NZ

1.0

2.2

3.1

2.0

Str & Hfr NI

-7%

15.5

16.7

16.6

16.1

Str & Hfr SI

+19%

6.9

5.8

6.3

5.8

Cows NI

-29%

11.0

15.4

10.2

13.4

Cows SI

-27%

11.5

15.7

7.5

7.3

NZ Weekly Lamb Kill

450

Last Year

300

This Year

150

NZ Weekly Beef Kill

80

0 May

Last Year

60

Jun

Jun

Jul

Aug

Sep

Oct

Last Week

2 Wks Ago

n/c

1.92

1.92

2.13

1.81

NZ$/kg

+16

5.40

5.24

5.78

5.33

Last Year

$1.80 Jul

Aug

Sep

Sep

Oct

Nov

Procurement Indicator

Oct

Nov

n/c

1.82

1.82

1.34

1.75

+22

7.98

7.76

5.77

8.49

£2.50

$8.0

Change

3 Wks Ago

% Returned NI

-2%

83.3%

84.9%

74.41%

76.3%

% Returned SI

-3%

76.9%

80.2%

69.2%

69.7%

$7.5

5yr Ave Last Year This Year

$6.5 $6.0 Jun

Jul

Aug

Sep

Oct

£1.50

70%

Last Year This Year

Jun

$8.0

Aug

Oct

Procurement Indicator - South I.

80%

Last Year This Year

$7.5

5yr Ave

Jul

Aug

Sep

Oct

Nov

Procurement Indicator Change

2Wks Ago

3 Wks Ago

% Returned NI

-1%

70.2%

70.9%

98.0%

70.1%

% Returned SI

-1%

68.9%

70.2%

96.2%

69.0%

110% 100% 90% 80% 70% 60% 50%

Last Year 5yr Ave

Last Year This Year

Jun

60%

$7.0

This Year

Jul

Aug

Sep

Oct

Nov

80%

Nov

South Island 60kg Stag Price

$8.5

Last Year 5yr Ave

Procurement Indicator - North I.

90%

$7.0

Last Year

£2.00

Procurement Indicator - North I. 2Wks Ago

North Island 60kg Stag Price

$8.5

Last Year 5yr Ave

NZ$/kg

This Year Jun

2 Wks Ago

£1.00

$3.5 Aug

Oct

UK Leg £/lb

Jun

5yr Ave

Jul

Sep

Demand Indicator - UK Leg Price Last Year 5yr Ave

95CL US$/lb

This Year

Last Week

Change

$2.00

Jun

Aug

Export Market Demand

$2.20

Last Year

Jul

This Year

Demand Indicator - US 95CL Beef

$4.0

Last Year 5yr Ave

-18%

South Island 300kg Steer Price

$4.5

3 Wks Ago

-14%

Change

$3.7

2Wks Ago

Change

Cattle NI

Export Market Demand 5yr Ave Last Year This Year

Estimated Weekly Kill

Cattle SI

0 May

$4.2

Last Year

4.27

20

North Island 300kg Bull Price

+10

YM - 13.5kg

2 Wks Ago

4.50

2Wks Ago

NI Lamb

Last Week

4.65

40 $4.7

Change

c/kgCWT

4.70

1000s

$4.5

Last Year

4.50

NZ Slaughter 5yr Ave Last Year This Year

2 Wks Ago

n/c

North Island 16.0kg M Lamb Price

$5.5

Last Week

M2 Bull - 300kg

SI

$6.5

lamb market trends

Procurement Indicator - South I. 105% 95% 85% 75% 65% 55% 45%

Last Year This Year

Jun

Jul

Aug

Sep

Oct

Nov

70%

Last Year

$6.5

Venison Prices

This Year

$6.0 Jun

Jul

Aug

Sep

Oct

Nov

60% Jun

Aug

Change

Oct

Beef & venison prices are reported as gross (before normal levies & charges are deducted). Lamb & mutton prices are reported nett (after levies & charges are deducted). Note: Freight is paid in the North Island but not by all companies in the South Island.

Last Week

2 Wks Ago

Last Year 5yr Ave

NI Stag - 60kg

+15

7.20

7.05

7.40

8.02

SI Stag - 60kg

+10

7.40

7.30

7.75

8.34

Rural News // september 3, 2013

news

price watch WOOL PRICE WATCH

BEEF

Change

22-Aug

15-Aug

Coarse Xbred Indic.

+7

4.56

4.49

3.48

Fine Xbred Indicator

+14

5.07

4.93

4.71

-

-

-

4.83

-19

7.47

7.66

8.80

Killable cattle numbers limited

Indicators in NZ$

Numbers of killable cattle have significantly dried up over the past 4 weeks and slaughter rates are subsequently suffering. Export prices are well above last years levels as a result. Last week average prices were $4.50/kg and $4.70/kg for North Island bull and steer (respectively) and $4.15/kg and $4.35/kg for South Island bull and steer (respectively). Prices are not expected to climb significantly, as meat companies acknowledge that they need to maintain margins. The local trade market is hot with prices reaching up to $5.00/kg (freight paid) in the North Island last week. The average price for local trade was $4.80/kg in the North Island and $4.50/kg in the South Island.

Positive indicators from the US

300 Aug

A reduction in US cow slaughter for the remainder of 2013 will add a positive note to expectations for the New Zealand beef price in the coming months as the overall supply of cow grinding beef will be limited. Lower feed costs and good pasture growth are expected to result in producers holding on to stock to obtain higher margins. A short-term lift in lot-fed cattle for the remainder of 2013 will also be positive for the grinding beef market. The higher supply of fat trim from the lot-fed cattle is likely to place downwards pressure on the fat trim (50CL) prices. This will boost the demand for 90 and 95CL imported beef from New Zealand.

LAMB

Lamb Indicator Mid Micron Indic.

Wool Indicator Trends

600

CXI

550 450

Prev. 2 Wks

Last Year

-273

4980

5253

3608

-6

5754

5759

3608

-94

6125

6218

3577

-30

5444

5475

4379

Whole Milk Powder Cheddar

Dairy Prices Trends SMP But.

WMP Ched.

4,000

350 Oct

Dec

Feb

Apr

3,000 Aug

Jun

Coarse Xbred Indicator

500

Oct

Dec

Feb

Apr

Jun

Whole Milk Powder Price (NZ$)

7,000 Last Year This Year

Last Year

6,000

This Year

5,000

400

4,000 300

3,000 Jun

Jul

Aug

Sep

Oct

Nov

Overseas Price Indicators

Fine Xbred Indicator Lamb Indicator Mid Micron Indicator

Jun

Jul

22-Aug

Last Year

15-Aug

-3

3.58

3.61

2.82

+2

3.98

3.96

3.81

-

-

-

3.91

-29

5.86

6.15

7.11

Indicators in US$/T Butter Skim Milk Powder Whole Milk Powder

Change

Sep

Oct

Nov

Last 2 Wks

Prev. 2 Wks

Last Year

-125

4025

4150

2925

+100

4650

4550

2925

+38

4950

4913

2900

+75

4400

4325

3550

Cheddar

Wool Indicator in US$

500

Aug

Overseas Price Indicators

Change

Dairy Prices in US$/Tonne

450

5,500

400

4,500

SMP .But

WMP .Ched

3,500

300

Spring like climatic conditions throughout NZ have resulted in continued good demand for store lambs. However in the North Island many farmers have reached their capacity and the demand higher for the heavier weight ranges as buyers look for a quick turnaround. Prices are expected to stabilise in the short term, with a 30kg lamb, irrespective of sex making between $2.85-$3.00/kg across the country. Lighter longer term lambs are meeting buyer resistance as concerns over cutting teeth kick in.

Skim Milk Powder

Last 2 Wks

Change

5,000

400

350

Store lamb market stabilised

Butter

7,000

LI

500

Coarse Xbred Indicator

Lamb prices are continuing their steady rise with prices increasing by 10-15 cents last week. In the North Island the average schedule price was $5.70/kg gross (including wool/pelt, presentation etc) and in the South the average is $5.60/kg gross. There is a large variation in prices received depending on various contracts and individual companies’ weekly capacity. Prices will continue to increase in the short term as the numbers of lambs dries up and companies need to secure supply to fill chilled orders.

FXI

Indicators in NZ$/T

6,000

Indicators in US$/kg

Lamb prices still steadily firming

DAIRY PRICE WATCH Last Year

CXI

250 Aug

Oct

Dec

FXI

Feb

LI

Apr

2,500 Aug

Jun

Coarse Xbred Indictor in US$ Last Year This Year

350 300

Dec

Feb

Apr

Jun

Whole Milk Powder Price in US$/T

5,500

400

Oct

5,000 4,500 4,000

Last Year

3,500

This Year

3,000 250

NZ lamb exports spike higher in July

Jun

Despite the drought induced offload of lambs earlier in the year, it seems reasonable numbers have been wintered, with export volumes unusually spiking higher in July. As regions came out of the drought, low stocking rates resulted in high lamb growth weights and this has flowed through to higher export volumes. July lamb exports were 4,000 tonnes higher than last July and over 2,000 tonnes up on 5-yr average levels, with China taking the lions share. Season to date NZ has exported over 54,000t more lamb than last season. On this basis we could see total lamb export volumes punch over 300,000t for the first time in three seasons.

DAIRY New Zealand milk production is currently idling in low gear ahead of the anticipated spring growth. Dairy product prices are mixed; while the latest GDT results trended lower, it is considered that levels held up well against the increased new season offerings and in the face of early news on the whey protein contamination (WPC) incident. Restrictions and implications from the WPC incident are still being assessed and addressed in the market.

Andrew Wood Palmerston North

Bill Hodgson Dunedin

Aug

Sep

Oct

Nov

2,500 Jun

CURRENCY WATCH vs. NZ Dollar

Last Week 2 Wks Ago 4 Wks Ago Last Year

US dollar

0.783

0.808

0.807

0.813

Euro

0.587

0.606

0.607

0.647

UK pound

0.503

0.517

0.524

0.512

Aus dollar

0.868

0.881

0.873

0.779

Japan yen

77.53

78.87

80.06

63.89

Euro

0.68

Mixed results for dairy prices

Jul

Jul

Aug

Sep

Oct

US Dollar

0.85 0.80 0.75

Last Year This Year

0.70 Jun

Jul

Aug

Sep

Oct

Nov

UK Pound

0.54

Last Year

0.52

0.64

Nov

This Year

0.50 Last Year

0.60

This Year

0.56

Jeremy MacAvoy Ashburton

Jun

Jul

Aug

Sep

Peter Young Hawke’s Bay

Oct

Nov

0.48 0.46 Jun

Jul

Aug

Sep

Oct

Nov

Rural News // september 3, 2013

24 agribusiness

Brought to you by

Farmers with the real smarts The Dalrymple brothers, Hew and Roger, farming just out of Bulls, have a second pair of eyes looking over their property. Actually the word is ‘i’ – as in smartphone technology. Peter Burke reports on the technology in use and the savings that result. FOR SIX generations the Dalrymple families have farmed in Manawatu and slowly built their land base. The current 2200ha freehold plus 200ha leased property is diverse – forestry, cropping, horticulture, sheep and beef trading and some specialised stock business, mainly managing dairy heifers prior to export to China and elsewhere. Roger runs the sheep and beef, Hew looks after cropping. This year they’ll plant at least 450ha in maize, 30ha in potatoes, 10ha in onions, 40ha in squash, 120ha in barley and 14ha in wheat. Lamb trading numbers vary each year, usually about 25,000, plus up to 10,500 cattle and about the same in dairy heifers.

They also contract-finish, making it a big, complex operation. To better manage and improve profitability, with 12 staff, Dalrymples have turned to technology to make the difference. It began with the advent of self-steering tractors and, with that, yield mapping. Says Hew, it was about gathering hard data. “Once you measured it you could do something about it and at first it was water. We initially got into irrigation but now there is precision irrigation so you can adjust each nozzle on the irrigator, and now there’s a combination of systems. If you know that a certain patch of ground is dry so you can put a hand-held GPS around it and put those coordinates in the computer and, bang,

that will always be considered a ‘red zone’. The irrigators can do any portion in a whole paddock and any one of those nozzles can be turned on or off automatically by the computer.” The technology allows multi-programmes to be set up in the computer to match seasonal changes and individual crop requirements so water is used strategically and not wasted. And it can be used to supply liquefied nutrients to crops. Hew says precisionsteering tractors and drills also help achieve cost savings by greater precision. And such technology is easier on the staff who have to drive the tractors, reducing stress and tiredness. “Our testing shows an

immediate saving of 10% on fuel so that transfers to everything. That’s a minimum; it’s closer to 12% or 13%, an immediate saving on repairs and maintenance and staff time, and less wastage of seed and fertiliser. “It’s dead accurate; there’s no over- or undersupply anywhere. You can dial up exactly how much fertiliser you need, you don’t have to get an extra tonne just in case. It raises the bar and we can programme different seeding rates into our latest drill. With this, each planter turns itself off when it gets to the end of a row so you avoid overlaps to within 6cm at the end of the row.” Hew takes pride in a job well done. “I love it. I look at it and say ‘isn’t that great’ and I feel good.”

Hew Dalrymple uses technology to continually improve farming performance.

He has done a lot of land contouring, using technology to set correct levels on new drain networks or replacement drains. And the brothers are always on the lookout for something new. A mechanical weeder is on Hew’s wish list. “We can get a tool that will – let’s say that’s a row there – enable the weeder to go sideways as you drive down between the

plants. It’s exciting to me because farming is getting more resistant to chemicals because plants like to stay around. So mechanical weeding is another tool in the arsenal.” And using infra-red measurement in plants, the fertiliser rate can be altered by a machine as it moves down a row of plants. “A device on the front of the machine will read the fertiliser needs

of an individual plant and the exact amount required will be applied by a device at the back. We are doing research work on our farm with Massey University,” Hew says. And a smartphone gives the brothers fingertip control of this technology, so they can monitor just about every aspect of what’s happening on their property at any time – even from overseas. ASB3811/RN/WORM/18X7

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Rural News // september 3, 2013

26 agribusiness

Sorting your rams and your rows NEW ZEALAND farmers lead the world in efficiently turning pasture into milk, meat and wool. And our technical skills and innovation are undisputed, e.g. developing new grass types and electric fencing. But in computer innovation, farmers sometimes get left behind – more

likely to be sorting stock in the yards than sorting rows in a spreadsheet. Using computers for on-farm business decisions is crucial as we make use of data for many tasks, such as managing data from eartags and running milking machines. The challenge is to make those decisions quickly and effi-

how technology is changing and how this could be applied on your farm. If you are spending time entering data twice or taking information from one system to another, then there is almost always a better and faster way. For example, Microsoft Excel should be a

ciently. Mastering a spreadsheet, sharing files via the internet or navigating a city using a smartphone may not be as technically stimulating as building a seed drill, but you need to be able to do it. This column will give practical advice and grow a wider understanding of

S K C A T S

pivot tables, download a quick sheet here: www. rippedorange.co.nz/pivottable Next month, we will explore the world of Cloud Computing, which has nothing to do with weather forecasting – but all to do with working together and saving time. • David Jackson, of Canterbury, studied at Lincoln University and has had several years agribusiness experience. He now helps people make the most of technology. Ripped Orange is a technology training company.

Hello ‘Mr Chips’

e g a l i s f o

pam t i pa pamelat@ruralnews.co.nz

THE RETURN OF Mr Chips to New Zealand ownership by the Balle Bros Group is a solid vote of confidence in our potato industry, says Potatoes NZ chief executive Champak Mehta. “Not only does it consolidate the existing value chain, it also lays the groundwork to explore valueadd opportunities, especially for export to selected overseas markets: a win-win situation for NZ potato growers,” Mehta told Rural News. Mr Chips is a leading processor of fresh and chilled potato products, including 30,000 tonnes per year of french fries and chips. It is back in New Zealand hands, following its sale last week by Melbourne-based Simplot Australia to Pukekohe-based Balle Bros Group. Balle Bros Group managing director Dacey Balle says Simplot, owner since 2008, has been an excellent custodian but the move to local ownership is positive for the New Zealand potato industry. “This purchase is in line with our strong belief in the New Zealand potato industry and our commitment to growing the value created by the industry,” Balle says. “It’s a great fit with Balle Bros Group as we look to add more processing value to our own potato crop, and also to assure the positions of the committed grower-suppliers from South Auckland, Waikato, Hawkes Bay, Manawatu and Canterbury,” No changes will be made to arrangements with these suppliers, now will changes be made to the 130 staff or management, a spokesman said. The company has a large processing plant for potatoes in Auckland and a smaller one in Christchurch. Balle says his company knows the Mr Chips business well, having been a supplier since 1981 and a shareholder from 1993 to 2010. “This experience gives us confidence in the existing management team headed by Auckland general manager Alastair McCredden and his team of 130 people in Auckland and Christchurch.” Mr Chips was set up in Tauranga in the early 1980s, becamde a public company in 1993 then was bought by Simplot Australia in 2008. Today it has processing capacity for 80,000 tonnes of potatoes, exporting about 40% of finished goods to Australia.

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Rural News // september 3, 2013

agribusiness 27

francis wolfgram Finance Matters

NZ Dairy Market Product

GDT Auction 3 Mth 6 Mths 20/08/2013 Change Change

Change in 2013

NZD/Tonne

Whole Milk Powder(WMP)

6,415

4.1%

40.7%

56.3%

Skim Milk Powder(SMP)

5,542

3.1%

27.2%

33.0%

Butter Milk Powder(BMP)

5,871

9.2%

25.7%

28.2%

CHEESE

5,478

-11.6%

23.5%

24.3%

Trade Weighted Index (GDT- TWI)

6,186

3.0%

30.7%

42.6%

US corn prices are up a whopping 9.8% over the fortnight; as a heatwave with hot, dry weather throughout the US Midwest threatens to erode crop yields. Corn production will be 2.2% below Price This Price Last Change the government’s forecast on Aug 12. The U.S. Department of Agriculture has cut its cornIssue Issue crop forecast three times in as many months, $2.802 $2.797 0.166% predicting production of 13.763 billion bushels down from 14.14 billion expected back in May. $3.448 $3.472 -0.691% The corn price has had many knock on effects and has lead feeder cattle prices lower; as inves$1.892 $1.873 0.991% tors worried that high-priced corn may curb feedlot demand for young cattle. On the flip $10.370 $10.470 -0.955% side, live cattle prices are being supported as the number of cattle placed in U.S. feedlots fell to a $5.005 $4.555 9.879% five-year low in July as the smaller cattle herd and expensive feed resulted in fewer cattle to $6.668 $6.495 2.656% draw from. The high corn price has also pushed hog prices higher.

US Agricultural Commodity Prices Commodity

Units

Live Cattle

USD/Kg

Feeder Cattle

USD/Kg

Lean Hogs

USD/Kg

Greasy Wool

USD/Kg

Corn

USD/ Bushel

Wheat

USD/ Bushel

As we move into spring; a clearer picture of how dairy prices will play out over 2013 emerges. The initial surge at the start of the year due to supply issues from the summer’s drought got dairy prices off to a flying start. The last three months’ prices have been more subdued, but this levelling off had been expected. Fonterra achieved its highest ever monthly revenue through GDT auctions in August; selling 109,664 metric tonnes, worth NZD 685 million. The flying Kiwi dollar has had its wings clipped during 2013, a high of 86.41 cents against the US dollar on April 11 to close at 77.98 cents on the August 27. The combination of higher prices and a lower dollar mean higher payout forecasts. Fonterra recently raised its 2014 farm-gate milk price to $7.80kg; this added to the 32cent dividend due on Fonterra shares will bring the total cash payout to $8.12 – which will be a new record.

rural news agri shares index Code

Company

Prices as 26/08/2013

Prices as at 12/08/2013

Change

Change in 2013

ALF

Allied Farmers

$0.017

$0.017

0.00%

-43.33%

ATM

A2 Corporation

$0.720

$0.700

2.86%

33.33%

DGL

Delegat’s Group

$4.000

$4.050

-1.23%

36.05%

HNZ

Heartland Bank

$0.87

$0.86

1.16%

27.94%

FSF

Fonterra Shareholders Fund

$6.880

$7.100

-3.10%

-2.87%

FFW

Foley Family Wines

$1.350

$1.350

0.00%

12.50%

LIC

Livestock Improvement Corp.

$5.60

$5.60

0.00%

3.70%

PGW

PGG Wrightson

$0.350

$0.330

6.06%

-23.91%

SAN

Sanford Limited

$4.370

$4.400

-0.68%

2.82%

SEK

Seeka Kiwifruit Industries

$1.900

$1.950

-2.56%

111.11%

TEN

Tenon Limited

$1.370

$1.400

-2.14%

65.06%

WEL

Wool Equities

$1.650

$1.650

0.00%

0.00%

TUR

Turners & Growers

$0.120

$0.120

0.00%

9.09%

RNAI

Index Total

29.197

29.527

-1.12%

11.98%

PGG Wrightson is the largest mover in our index – up 6.06% over the fortnight. PGG has had a good run recently well up from its yearly low of 25 cents on May 31, which was around the time Mark Dewdney took over as CEO. Fonterra units continue to weaken to near alltime lows. However, recent news regarding the 2014 milk price forecast and a dividend due should see the unit price well supported going into the last quarter of 2013. The only two other movers of note were Tennon and Seeka Kiwifruit, down 2.14% and 2.56% respectively. This table is a list of shares linked to New Zealand’s rural industry and is in no way a recommendation to buy or sell any share. You should seek the advice of a trusted financial advisor before entering into any sharemarket investment.

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Rural News // september 3, 2013

28 opinion editorial

edna

Time for farming to reach out A RECENT Agribusiness Agenda report - Vol 1: State of the Nation - suggests a need for much greater understanding of the agribusiness sector by the country’s wider population. “The importance of the primary sector to New Zealand’s economy is not well understood by wider society,” the report says. “We are now predominantly an urban-based population. Many New Zealanders’ knowledge of the rural sector is limited to media reports that predominantly focus on the sector’s issues and failings. “If we do nothing, we risk a deepening ‘them and us’ divide. An important first step is to gain an understanding of why we do agriculture in New Zealand, from our many different perspectives. Then we can search out collective win/win solutions for the key issues facing the primary sector.” KPMG suggests bridging the divide by achieving wider accord on the key issues. It calls on the agri-sector to lead a fact-based conversation about the issues rather than sit by while mainstream media continue to portray agriculture in a negative light, eg dirty dairying, expensive local produce and animal cruelty. Says the report, with most of the population living in urban centres, any direct connection many New Zealanders once had with the land is dwindling. So it requires the collective agrisector to take on the responsibility of educating and informing the wider population about the contribution it makes and the resources it needs to deliver its contribution. “Every organisation and person involved in the industry needs to be prepared to become engaged in these critical conversations. At the end of the day, the outcomes will impact New Zealand’s future prosperity.” It is important the sector does not appear defensive in leading these discussions. The debate must be balanced and based on facts. “Identifying the areas that need sector leadership is not rocket science. They include taking greater responsibility for biosecurity; water management (both usage and quality); attracting sufficient talented people into the industry; managing the sector’s impact on the environment; and creating a stable platform for capital investment.” Let’s begin this much-needed conversation now!

RURAL NEWS HEAD OFFICE POSTAL ADDRESS: PO Box 3855, Shortland Street, Auckland 1140 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

“Last time he was in a dog trial he got six months home detention!”

the hound BS from MPI THE HOUND hears that MPI is in full cry recruiting staff for one of its myriad departments in Wellington. The advertisement beckons all-comers for “these exciting fast-paced roles”. Not surprisingly, the job description doesn’t stipulate that wannabes need know anything about farming. But, desperate to lure people to the capital, MPI says, “Wellington’s windy reputation ensures the air is always fresh and the aroma of great coffee is not far away”. No mention of the ‘aroma’ of bovine fecal matter in the HR department of MPI.

Want to share your opinion or gossip with the Hound? Send your emails to: hound@ruralnews.co.nz

The Roundup touch! FEDS’ SO-CALLED news mag National Farming Review is out, looking like a compendium of junior-high school essays – written by every Feds’ policy analyst. The Hound also notes a front-page photo depicts the hapless former Labour Party leader David Shearer shaking hands with Feds president Bruce Wills. A mate of your canine crusader claims it was not Shearer’s dead fish stunt in Parliament that ended his feckless attempt to be PM, but instead his appearance in this turgid publication: the final nail in his political coffin.

TECHNICAL EDITOR: Andrew Swallow ................... Ph 03 688 2080 PRODUCTION: Dave Ferguson ........................Ph 09 913 9633 Becky Williams ........................Ph 09 913 9634 REPORTERS: Sudesh Kissun ....................... Ph 09 913 9627 Pamela Tipa ............................ Ph 09 913 9630 Peter Burke .............................Ph 06 362 6319 SUB-EDITOR: Neil Keating ............................Ph 09 913 9628 WEBSITE PRODUCER: James Anderson .................... Ph 09 913 9621

Frankenburger A hard man THE HOUND reckons the meat industry here and worldwide won’t encounter much challenge from the world’s first lab-grown beefburger. Professor Mark Post et al at Maastricht University, Holland, took five years developing the burger. The mad professor hopes lab-made meat could eventually help feed the world and fight climate change, though that goal is ten years away at best. No matter, tasters of the fake meat say the 140g patty is “close to meat” in flavour and texture, but not as juicy. (It cost at least $330,000 to develop, with backing from Google co-founder Sergey Brin.)

YOUR CANINE crusader hears all sort of stories about hardy types in farming, but reckons this news story is hard to beat: a ‘hard-core’ farmer waited two hours for help after breaking his neck in a 4m fall – but then mounted his quad and rode home. Bill Paikea fell while stacking hay on a remote Northland farm and was unable to call for help because of zero cellphone coverage. In excruciating pain, he clambered onto the quad and drove 3km over rough farm tracks. The Hound wishes this hard man of the North all the best for his recovery.

Nut job or PR genius? THIS OLD mutt had to giggle at claims by a New Zealand ‘soil scientist’ campaigning to outlaw the plough, and to require warnings on them such as appear on cigarette packets. Says John Baker, a developer and maker of no-tillage drills, ploughing or conventional tillage contributes to global warming, crop failure, soil erosion and eventually famine. Your old mate reckons Baker and his PR team have done a top job in promoting his no-tillage drills by making such nutty claims. As they say: any publicity is better than no publicity.

NATIONAL SALES MANAGER: Ted Darley .......... Ph 07 854 6292/021 832 505 ted@ruralnews.co.nz

WELLINGTON SALES REPRESENTATIVE: Mark Macfarlane .Ph 04 234 6239/021 453 914 markm@ruralnews.co.nz

AUCKLAND SALES REPRESENTATIVE: Stephen Pollard ....Ph 09 913 9637/021 963 166 stephenp@ruralnews.co.nz

SOUTH ISLAND SALES REPRESENTATIVE: Kaye Sutherland Ph 03 337 3828/021 221 1994 kayes@ruralnews.co.nz

TAURANGA SALES REPRESENTATIVE: Tony Hopkinson .. Ph 07 579 1010/021 949 226 hoppy1@clear.net.nz

ABC audited circulation 81,232 as at 30.06.2013

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 // september 3, 2013

opinion 29

Teachers had best get a handle on farming fast! Rabobank 2013 Farm Employee Remuneration survey found pay levels for most pastoral farm positions have kept rising: the average farm worker

struggle to recruit skilled, motivated staff. Many have to bring in overseas workers to fill the gap. It’s astounding that schools and other educators are not more active in encouraging youngsters to look at farming and related industries. And it worries me to hear feedback that some educators still see farming as a second-class career option, and that they encourage only ‘less academic’ students to study agricultural subjects. This is last-century thinking! Many working in agriculture will take upwards progress for granted, and, because there is a worldwide shortage of talent in the sector, they can end up enjoying a global career. RCNZ offers a career path for young people entering our industry, and qualifications to diploma level may be studied for. Plenty of evidence suggests workers in the agri sector are better paid than peers in other sectors. The recent Federated Farmers/

W

IN

WELCOME TO the first of a monthly column I will write in Rural News to update readers on news and views of rural contractors and Rural Contractors New Zealand (RCNZ). RCNZ is the only national association of rural contractors. We have about 450 member companies and represent 2500-3000 workers. We are a powerful, effective and influential advocate for our members and the sector. Agriculture remains the economic ‘engine’ of New Zealand’s economy and rural contractors play a vital part in keeping that engine running. But there is a brake on this engine: the lack of good, talented people being attracted to working in the wider agrisector. With the end of the school year looming, and a new batch of young people thinking about career options, we must debunk a few myths about working in farming I question why more young New Zealanders are not being encouraged to work in the farming sector. The agri-sector ranks as New Zealand’s most productive and innovative; it offers a wide variety of career opportunities for young people. Yet, despite relatively high unemployment nationally, many rural contractors

now earns $5500 more than the New Zealand average annual wage. Agriculture is the backbone of New Zealand’s economy and

has massive growth potential, so we need our best and brightest working in the sector. Schools and educators have an important role

in encouraging quality people into agriculture. RCNZ is happy to help any schools and other educators to better understand that the

sector. • Steve Levet, of Wellsford, is an agricultural contractor and president of Rural Contractors New Zealand (RCNZ).

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Rural News // september 3, 2013

30 opinion Proper research would resolve BCSR debate AS A farmer with an interest in soil management I am always looking for information to deepen my understanding of how to best look after the soil on my farm. Farmers are bombarded with conflicting information and advice. If the experts don’t agree, how are we to know what is best practice? With a growing need to manage our soils and nutrients more sustainably, using the best combination of effective strategies to look after them must surely be a high priority. We are seeing in your newspaper claims and counterclaims regarding the validity of Albrecht’s BCSR theory as a basis for making soil fertiliser recommendations. The current debate was

Need to sparked by an article by JacqueOPINION 21 truth fro decipher Kiwis re line Rowarth and it includes two ad for world y m fiction ploughin g champs independent advisers, namely Robin Boom, who states he has been using BCSR for 23 years and has about 400 clients, and Dr Doug Edmeades, soil scientist and independent consultant. CULTIVATION Tunnelho Boom would like to see uses this put to scientific testing, practices. whereas Edmeades says this This could be achieved would be a waste of money as by taking a range of objective 1.95% there is such a large body of scien- measurements and records from tific work showing Albrecht’s a sample of their client base using theory is pseudo-science. such criteria as: visual soil assessSurely it would be possible to ment (this has been underpinned survey a sample of their clients to by extensive research and the soil ascertain if there are any signifiindicators are linked to economic, cant differences in measurable environmental and sustainability outcomes from their respective performance); production figures; RURAL NEWS //

JULY 16,

ON TELEV ISION and radio, in newspapers or at farmin the pot resear more and g field days, ch more find an ‘ideal’ to the field he couldn conversation advertisements and ratio, and ’t s soils contai that “emph concluded to main streamare about alternatives ning free asis should lime.” agriculture: be placed providing Proponents better way is there a on suffici short-strawe to produce report increa of the system do levels of each ent, but not excess TONY food by a d ‘holistic’ appro HOPK INSON sed yields, ive, more basic cation superphosph cultivars, irrigation, ach? majority of but “in the rather than ate, nitrog Advocates THE WORL cases yield trying to herbicides en, of organic increases D plough attain a favour and are convin production ing champ onships are are due to trebled yields pesticides – almos ced ibeing held associated cation satura able basic t despite much they have the answe from 9.6 to Olds Colleg this crop manag tion ratio ha. To feed rs, 26.1 GJ/ research showi e near Calgar week at which eviden ement the 6 billion consistent Canada. ng no y, Alberta, practices”. tly does not at the 1950 population eviden exist”. level is better quality ce that organic New Zealan food increase would without the above Scientists d’s two contes search A review has less impac , nor that its produ have say they’re required of the constantly doubling ction Albrec tants well settled a of curren for ways than conve t on the environment ht resear into mitories t land. To to achieve them at the ntional metho at Olds Colleg the dorgreater by scientists ch current better feed ds. This same had severa e and have productivity at the nutrition state of debate is l chances University would requir from the occurring in other countr to practice stubble and of Queen land, reduce e even more. Research on ies and has sland, grass groun and publis impac has been featur recent impro t ds. hed Methven’s on the enviro ved ly production ed Science Society in the Soil Murray nment systems and past South Africa in the farming press is compe Redmond and increa efficient ways in shown . The Albrec ting se quality 2007, report of America Journal base cation ht system plough and with a conventiona in ed of product. sooner farme of progress. The , or saturation l 1900 and Malcolm experiments that several of Albrec ratio (BCSR promotes rs start being 2000, popula Between Taylor from Putaruru ht’s were fundam for efficie the conce with a revers tion increased flawed, the nt production rewarded pt of maxim ), plant growt ible plough from 1.7 billion research did entally Temperature um quality food of high h occurring billion and the BCSR not suppo s are in the – ie, meat soil’ with when an ‘ideal and humid yields increa to 6.1 claims and rt low 30oC and milk a balanced for least loss ity is 85%. that “the 5.5 GJ/ha sed from continued ratio betwe of carbon exchangeable Mosquitos to 26.1 – a numerous promo en , nitrogen and phosp 379% increa are base cation and plenty Between result in ineffic tion of BCSR will horus – the 65%, magne s (calcium se. of repelle 1900 needed. better Zealand as ient use of sium nt is of phosphate-band 1950, the use agriculture a whole would . New resour 10% and potass ces and hortic The groun in ased fertilis • Jacqueline benefit. increased ulture”. d is report ers Rowarth is 5%) is achiev ium yields from following ed as sticky Professor of Agribusiness, ed. The In the South heavy rain 5.5 to 9.6 GJ/ha. But goal of the The in Africa includ the Univer the n Waikato. Her region original Farmers’ Weekly ing severe sity of of the 1960s green revolution flooding in attendance research in Researc at Calgary. The – a combi African Large at the South the end of the h has nation of ten days before nearby May, Dr was to reduce 1940s Herds Confer test were the consupported Doug Edme improve ence was forecast fine luxury by LIC. ades uptake of d pas to help dry the plough potassium (AgKnowled out ing area. production t in lucerne ge) with and Firma colleagues n from Bear and systems co-workers Stellenbosch proposed and University the ‘ideal wrote that shown effic “the soil’. system invaria Albrecht ient bly At the same way results s of prog in substantial William Albrec time, increases ress. in input ht, costs which professor of soils at do not transla the Unive te into rsity improved profitability” from his resear of Missouri, sugges ted . BCSR results This is because the require soils ch in pots that plants in recommenda with high chemicals calcium saturation tions for that for optim overlooking are not needed while um growt However, h. some that when are. “A recent case in point research studen Albrecht’s doctor was a recom al t Eugene for a high mendation McLean took rate calcium:mag of lime to correct the nesium ratio on high pH

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profit; cost of production; quality of production/ animal health (eg, incidences of mastitis, somatic cell count, reproductive fertility, nitrate levels in milk, metabolic disorders, bloat); pasture quality and composition; fertiliser inputs. With so much at stake, surely the potential benefit from getting to the bottom of this debate would be well worth the relatively small investment required to see if there are sound grounds to pursue more rigorous testing of BCSR in New Zealand. Bruce Knight Danniverke Abridged: editor • See pg 32 for more. Correspondence on this issue is now closed.

The season is about to start...

ag twits Rural News’ irreverent and hypothetical look at what’s happening in the farming world Top Bleats view all dshearermp: According to Labour’s research unit there’s more chance of Fonterra getting good PR, the Wallabies winning the Bledisloe Cup or MIE actually achieving some real meat industry reform than me ever becoming PM – so I quit. #missionimpossible damienoconnormp: Bugger with @dshearermp gone that means I now have to choose as next leader between the gaggle of gays on my left or self-serving unionists on my further left ! #catch22 rnormangreenmp: Not sure what all the fuss is about with @dshearermp quitting. As far as the media is concerned, yours truly is the real leader of the opposition anyway. #voteforrusty winstonfirstnzlast: We – as in the royal we – understand the Labour Party’s favourite MP… whom we all talk about as the greatest… whom we all revere… and who must be leader… I’m staring him in the face! #maninthemirror shanejonesmp: As the great chief from the north, I should be next Labour leader. While watching blue movies at taxpayers’ expense may have dented my ambitions, I hope it’s not seen as an indelible stain on my political career. #pornfree jwilsonfonterra: This lark as Fonterra chairman has gotten pretty tough over the past couple of months. Yet no matter how bad things get at Fonterra, at least I am not leader of the Labour Party. #poisonchalice richardyoungmie: Being head of MIE and leader of the Labour Party are very similar roles. Both of us lead dysfunctional and divided organisations, we make outlandish and ridiculous claims, achieve bugger all and no one really takes us seriously! #kindredspirits bwillsfedfarmers: I’m guessing the next Labour Party leader will completely ignore Feds just as the past 25 have. Perhaps we should change our name to the Farmers Union to get more traction? #comradesinarms johnkeypm: I just love the Labour Party. Just when you think things can’t get any worse for them – it does! #thegiftthatkeepsongiving

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Rural News // september 3, 2013

opinion 31

NZ’s reliance on agriculture will never wane bru ce w ills

IN LIGHT of the recent botulism scare and having read the Listener editorial (‘A Terrifying Truth’, August 17), the oftquoted words of Mark Twain come to mind: “Reports of my death have been greatly exaggerated”. The shame is that many mainstream publications focus on what we get wrong instead of what we get right. Why not focus on constructive, well thought-out solutions instead? Having just read an email from the NZ Farm Environment Awards Trust, which rewards and acknowledges the great environmental work farmers do, for the life of me I cannot understand why the positive stories are not featured more often. It prompts the question, are farmers getting a fair deal in how they are portrayed in the media and why do we like to focus on the negative? Is it helpful to run around shouting that the sky is falling down because of a

product recall? Not really. And is it a fair portrayal of an industry when only the negative is reported? We must focus on the opportunities available to our nation from being fortunate enough to be in the pastoral ‘sweet spot’. We have soils, water and a temperate climate, whereas many countries do not. This provides a basis to build on, not to demolish. Our biological economy provides the means to create new industries related to information technology, biotechnology and manufactured goods. In fact, the sky is the limit. Some readers may benefit from rereading a Listener column, penned by Brian Easton, from the early 1990’s (June 3, 1991), about the seminal Porter Project. Professor Porter used the words ‘core competitive advantage’, and our primary industries fit that bill because we have the geographical advantage. It does not make sense to turn our backs on the resources made available to us; rather, let us use them to advance on

0%

new opportunities. The point I wish to stress here is, we do not need to have an exclusively ICT and hi-tech economy, or one based on biology. We must in fact have both. Our top three primary exports are growing and we remain on track to double the value of primary exports to some $60bn by the year 2025. As a point of comparison, our top 100 technology companies export around five billion dollars each year so why not work hand in glove to build them? The biological economy is here because of our unique combination of land, water and people. Speak to migrant farmers from Ireland to the Philippines and you quickly see that we are seen as the Silicon Valley of global farming. Making more of that, in all of its guises, is vital to advancing our economy. From grain loaders to precision agriculture to apps, the technology of farming is rapidly changing. We need to be on the same page to feel its true ben-

Federated Farmers president Bruce Wills.

efits. The reality is, if we drag our feet, we cannot make the most of our competitive advantage. With the human race growing by two people each second, the world needs the resources to produce, process and distribute food. It is why the biological economy provides our economy’s skel-

eton, a point which was highlighted in a United Nations report several years ago. So let us not shun our pastoral ‘sweet spot’ rather let us build on it to develop the economic resilience our country needs. • Bruce Wills is the president of Federated Farmers

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Rural News // september 3, 2013

32 opinion In defence of William Albrecht... MY RESPONSE to the article by Doug Edmeades (August 20) is to say William Albrecht was one of the greatest soil scientists the world has known. Edmeades assumes that the Albrecht approach almost always results in recommendations for calcium. Maybe, but an Albrecht soil test would have to be one of the most detailed soil tests available for all the elements: nitrogen, sulphur, phosphorous, calcium, magnesium, potas-

sium and sodium calcium added to New (in kg/ha), plus Zealand milk and why is the major trace it needed in metabolic elements boron, disorders in cows? This iron, manganese, is because of calcium/ copper, zinc, selemagnesium balance: nium and cobalt (in not enough of either. parts per million), Edmeades Doug Edmeades and recommendasuggests a “large body tions cover all, not of scientific research” just calcium. shows the Albrecht theory does Edmeades says “calcium not work (but does not cite his deficiency is unknown in New references). I suggest a large Zealand”. If this is so, why is body of scientific research shows

the Albrecht approach does work (see www.kinseyag.com). This man has dedicated his life to Albrecht soil analysis, running seminars and sampling soil in 70 countries. If Edmeades feels he must protect farmers against bogus fertiliser practices, he should first do his homework and produce facts to show the dangers inherent in such practices. Tom McCaughan RD Mangakino

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IN RESPONSE to Jacqueline Rowarth’s ‘Need to decipher truth from fiction’ (Rural News July 16), I offer the following comments. In its ‘Waste not, want not’ report, the London Institute of Mechanical Engineers found 1.2 billion—2 billion tonnes of food was wasted due to poor harvesting practices, bad storage and inappropriate transport. This was the case at the beginning of the ‘green’ revolution so instead of the aforementioned inefficiencies being addressed the focus was placed on increasing production. This had an advantageous financial outcome for the chemical fertiliser and crop protection industries, but unfortunately the green revolution produced at least two adverse outcomes. 1. More food wasted. 2. Soil and water resources became irreversibly contaminated. Has Prof Rowarth personally reviewed the science and the published works of Dr Albrecht? She also quotes Dr Edmeades and colleagues, in the South African Farmers Weekly, as saying “the Albrecht system invariably results in substantial increases in input costs that do not translate into increased profitability…. “This is because the BCSR results in recommendations for ‘chemicals’ that are not needed while overlooking some that are.” In that article Dr Edmeades does not name the chemicals that were “not needed”, but he’s recently published concerns about farmers being misled into applying phosphate fertilisers that are, in his opinion, not needed. He has publicly stated that his analysis of nutrient budgets and soil tests showed that, in his expert opinion AgKnowledge clients had overspent, on average, $6000 per client per year on fertiliser inputs as a consequence of following the recommendations of their respective fertiliser company representatives. On today’s prices that is 17.24 tons of superphosphate and its attendant fluorine and cadmium contaminants per client per year that are applied unnecessarily. Steve Clark Wainui, Auckland (abridged)

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RURAL NEWS put the points made in the above letters to Dr Doug Edmeades. He responded that Albrecht’s theory only relates to the four nutrients calcium, magnesium, potassium and sodium. It does not consider the other 12 essential nutrients. Also, he says calcium deficiency does not occur in New Zealand soils and pastures. Milk fever in cows is an animal hormonal/metabolic problem which can and does occur even though they are ingesting sufficient calcium. While there have been dozens of peer-reviewed papers published in scientific journals refuting Albrecht’s ideal soil theories since he formulated them some 60-70 years ago, Edmeades says a good one to start with is: A Review of the Use of the Basic Cation Saturation Ratio and the ‘Ideal’ soil, by Peter M Kopittke and Neal W Menzies of the University of Queensland and published in the journal of the Soil Science Society of America, Vol 71, March 12, 2007. “It reviews Albrecht’s work and cites 52 scientific references.” In April, Edmeades and 15 other soil scientists supplied an article to the South African Farmers Weekly refuting various claims about soil fertility built on Albrecht’s theories made by one of that paper’s correspondents. See www.farmersweekly.co.za Rural News thanks readers for their correspondence on this issue but declines to publish further letters on it in the near future as views from both sides of the debate have been sufficiently aired.

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Rural News // september 3, 2013

management 33

New ally in grass grub battle? andr ew swallow andrews@ruralnews.co.nz

A NATIVE fly, Ostenia robusta, is being assessed as a possible biocontrol for grass grub after an unprecedented find of its larvae predating the pasture pest last spring. Foundation of Arable Research staff found the fly maggots gobbling grass grub pupa alive last November during a grub collection for another project. Research manager Richard Chynoweth says they couldn’t quite believe what they were seeing. “Grass grub is one of New Zealand’s most costly, and therefore most researched pest insects, but we had no knowledge of this sort of predation occurring.” The grubs were in a paddock of wheat near Southbridge, about 20km southwest of Christchurch, following two years of clover. Between 35 and 50% of grubs per sample were attacked. “They were all at about

25cm below the surface where grass grubs pupate.” With the help of Lincoln University, the maggots – which ranged from 5mm to 18mm – were reared in the lab until they pupated, and two adults were successfully hatched. Only with those two adults was the species identified; as DNA tests on the maggots had failed to find a matching species. A search of the scientific literature about O.robusta and grass grub then confirmed the predation observed was unprecedented. “Larvae of this fly had never been found and studied before, although adult flies were in several New Zealand museum insect collections,” explains Chynoweth. “They had also never been recorded as having any sort of association with grass grub, another native species.” Chynoweth told Rural News there are other flies which predate grass grub,

but these haven’t been found on the Canterbury Plains and they’ve already been dismissed as potential biocontrols. This was because they have very little impact on grass grub numbers, unlike the 35-50% kill seen in the Southbridge paddock. Fly traps placed across mid and central Canterbury last summer to try to catch adult O.robusta drew a blank, but more maggots attacking grubs were found. However, these are yet to be confirmed as the same species. Attempts to catch adults will be repeated this summer with traps set lower than the 1m setting used last year. “Our main aim for this project now is to learn more about the distribution and the biology of this insect and to confirm that last year’s finding wasn’t just a one-off,” says Chynoweth. “Once we have more information about O. robusta we can start to make decisions about

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whether or not it is has potential for use within integrated pest management systems.” The find and subsequent research was reported at last month’s New Zealand Plant Protection Society conference, Napier. “There was a lot of interest and a lot of questions we couldn’t answer. “Why it’s not been found before is one of the big ones, given the amount of research on grass Adult Ostenia grub, but there robusta fly. hasn’t been that much exploration maggots take advantage [of grass grub] at the of, he explains. pupation stage.” “They attack from When the grubs pupate the outside, piercing the they’re immobile for skin and sucking out its about a month, making them vulnerable to attack, insides.” How the adult flies find which appears to be the grass grub infested sites window when the fly’s

Grub for lunch: a maggot of the fly, Ostenia robusta, munches it’s way through a grass grub pupa.

to lay eggs, so the food source for the maggots is on hand, is another question yet to be answered. “It could be some kind of pheromone.” FAR is hopeful a Masters student or two at Lincoln University will take

the research into the fly forward. Depending on the results of that, AgResearch may then come on board to look at developing it into a viable biocontrol, as they have done with the parasitic wasp that attacks clover root weevil.

Rural News // september 3, 2013

34 management

Achieving research and Any farm with several stock classes presents its challenges but as Peter Burke reports, research farm managers have a whole new level of complexity to deal with. MASSEY UNIVERSITY runs two sheep and beef farms, two dairy units, a deer farm and a horticul-

tural unit. It has 2000ha dedicated to teaching and research, mostly close to the Palmerston North

Massey’s sheep and beef research unit farms manager, Byron Taylor.

campus, the exception being the 725ha Riverside sheep and beef unit in Wairarapa. All the farms, bar 200ha, come under the control of a group within Massey called Agricultural Services, including the sheep and beef farm Tuapaka. Acquired by Massey in 1938, Tuapaka’s perhaps best known for Professor Sir Geoffrey Peren’s research there, developing the Perendale sheep which was officially registered as a breed in 1960. It’s a typical hill country farm nestled in the Tararua Range only a few minutes drive from the main Massey campus. The 476ha currently carries 1150 mixed aged ewes, 460 two

tooths, 490 hoggets, 150 breeding cows, 50 rising one-year-old steers and 50 rising one-year-old heifers. What makes Tuapaka unusual is that the top of the farm, 380m above sea level, is part of a huge wind farm across the hills behind Palmerston North. (Unusually, the day this journalist visited, there was hardly a breath of wind to turn the huge threebladed turbines.) Like all Massey’s Ag Services farms, Tuapaka is run on a commercial model, and must return a ‘positive financial contribution’ to the university at the end of the financial year. “We run as close to what a commercial opera-

tion is so we have an effective positive balance sheet but our priority is around research teaching,” says farms manager, Byron Taylor. “As [research] proposals come along we

‘embroid’ them into the farm’s operations and decide the most appropriate time and place for the trials.” When a proposal is first discussed, staff from Ag Services are involved to

determine what additional work will be required by them to help run the trial. Costs over and above normal running costs of the farm are paid for by research groups. “It’s very complex but

Wind prone: turbines across the top of Massey’s Tuapaka farm.

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Rural News // september 3, 2013

management 35

commercial goals we try to keep it as simple as possible. That’s why we work out what we want to do, agree that’s what we want to do and then the

guys will go and implement it. “We don’t get too directly involved in the trial as such. So long as

they have gone through the ethics process and they know what they want to achieve and have got funding to do it…. We’ll

just work out how best we can help and enable it to happen or we’ll show them what the current challenges are in terms of facil-

A scientist’s take on the farm’s role Professor Steve Morris is one of many Massey academics who use Tuapaka for teaching and research purposes. Undergraduates learn about farming systems on it and Massey’s other farms, and do exercises such as feed budgets and the like, but it’s more used by students working on PhD projects. “An example is [now Professor] Paul Kenyon,” says Morris. “He did his experiments on mid pregnancy shearing out here. He looked at lamb birth weight and the effect of mid pregnancy shearing on lamb birth weight. He was collecting lambs at birth and weighing them up in the hills here -

both twins and triplets.” Rebecca Hickson, now a lecturer in animal breeding and genetics at Massey, did her PhD on calving beef heifers as two-years-old on the property. “She was out here for the whole month of September, day and night, recording heifer birth weights and calving ease.” Currently a trial on Tuapaka is looking at beef cattle damage to winter pasture by Angus, AngusFriesian and Angus-Jersey cattle on 2ha plots high on the farm. Morris says GPS trackers show all three mobs walk the entire paddock every day, in some cases covering up to 5km.

“They damaged about 34% of the paddocks with hoof marks; on some of the steeper country it was skid marks.” Pasture growth mid September to November on the damaged pasture was only 22kgDM/ha/day whereas undamaged pasture was producing 40kg/ha/day. When it comes to sheep research, Morris says in the past couple of years there’s been a lack of funding from Beef + Lamb New Zealand. He believes there’s potential to do more and the small number of New Zealand PhD students doing research on the species is “disconcerting.”

Demo

ities and resourcing.” Tuapaka is managed by Phil Brooks, who’s been there 10 years. He says research staff are there at least three days a week, and often all week, collecting data. He’s philosophical and laid back about fitting such work into normal farming operations. “You can’t get set in your ways. You’ve got to be open minded. Some things might look to be pretty wacky, but then you’ve got to think about it and say ‘will it work?’ If you think it might work, you’ve got to make it work. You can’t be negative about anything because otherwise they may go somewhere else and do it.” Brooks says his job is to give advice and it’s up to researchers whether to accept or reject this. An

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The lack of sheep research funding is disconcerting, says Massey Prof Steve Morris.

example this year was feed availability for a winter trial. “They [the researchers] came along and said there was too much there, so the quality was suffering. They wanted us to chew those paddocks out and we said we didn’t believe they were doing the right thing. But we did what they wanted. As it turned out the trial finished early because of a lack of feed.”

Taylor says it is a fine balance for farm staff involved in trials, taking responsibility for their role in them, but not taking ownership to the point where they interfere. Their practical advice can be pretty important, particularly when working towards the top of the farm where it snows at least a couple of times a year and the wind can be so bad it’s dangerous to go up there.

Rural News // september 3, 2013

36 management

Applied nitrogen A paper destined for the New Zealand Grassland Association’s annual conference in November will present a long-term data set which could help dairy farm management in a nitrogen-limited environment. Andrew Swallow reports. OVER THE past decade, what impact on profit would banning nitrogen fertiliser on dairy farms have had? Judging by the findings of a paper to be presented at the New Zealand Grassland Association conference in Tauranga in November, very little, in more years than not. But before regional councils and environmentalists leap to the conclusion that there’s no need for applied nitrogen, there’s a need to look at the bigger picture, the paper’s authors say. “The current implications of reduced nitrogen inputs on milk production, at a farm and regional level, are quite large,” says paper lead author and Dairy NZ [Farm Systems Specialist] Chris Glassey. Though in six of nine seasons from 2002/3 to 2010/11, profit from a dairy farmlet managed with no nitrogen fertiliser at DairyNZ’s Scott Farm, Hamilton, was on par with one where an average of 181kg/ha/year of N was applied, in the other three years the farmlet using urea fertiliser was significantly more profitable, he explains. Also, though profit on the farmlet not using nitrogen was on par with the with-nitrogen farm-

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They aren’t just there to protect water quality at the expense of the region’s economy.” For farmers, the data from the work highlights the importance of paying attention to the ratio between nitrogen price, response and milk price, adds Glassey.

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392kgMS

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$4139/ha

Production

Operating costs

Operating Profitw

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whole discussion about limiting nitrogen. If you take the nitrogen out, to get the same income for New Zealand Inc. we will need to have more dairy farms, so there is a tradeoff here that people have to remember… “Regional councils have to balance all these things.

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let for two-thirds of the time, if farms region-wide adopted such a strategy there would be a marked drop in milk production and overall lower level of economic activity, he points out. “This is an interesting point that hasn’t always been made clear in this

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Analysis of nearly a decade of farmlet data from DairyNZ’s Scott Farm, Hamilton, is presented in the NZGA paper.

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Rural News // september 3, 2013

management 37

not always profitable About NZGA conference 2013 The New Zealand Grassland Association’s annual conference, its 75th, is in Tauranga, November 5-7. The programme features a mix of the latest applied agricultural research papers and a couple of field trips. Early bird registrations are open, offering a $100 discount. See www.grassland.org.nz for more

“We’ve probably put nitrogen fertiliser into the ‘auto-input’ category in many farm systems and just assumed it’s making a profitable contribution. What this data set shows is that in some years – those when the milk price is low and the nitrogen price is high – it isn’t. “That said, at the moment the ratio is favourable and applying nitrogen will add to the profitability of milk production.” The costs used in the profitability calculation (see table) are based on physical records of each farmlet, with 2011/12 prices of inputs used to calculate costs. Hence for nitrogen – applied as urea at $910/t including spreading in 2011/12 – the cost to the farmlet was $1.98/kg of N applied. Today, with urea at $640-650/t ex store, it would be more like $1.50/ kg N applied. For other costs, such as repairs and maintenance, vehicle running costs and depreciation, which couldn’t be allocated per farmlet, industry averages are used. “The same costs were applied across years so the variation in farmlet profitability largely resulted from variation in milksolids/ha and changes in milk price,” the paper states. For the profitability calculation, data for each

farmlet was scaled up to 100ha so that realistic estimates of labour could be made, and the difference in area of the farmlets – the no-nitrogen farmlet was 9ha with replacements grazed-on whereas the with-nitrogen fertiliser farmlet was 7ha – did not affect the profitability result. The 181kg N/ha/year used on the with-nitrogen farmlet grew on average 2.9tDM/ha/year more pasture, an apparent response of 16kgDM per kg of nitrogen applied. Stocking rates were adjusted so that annual feed allowance on each farmlet was 6.2tDM/ cow/year. Pasture management was similar on both farmlets, grazing to 1500kgDM residuals and harvesting any pre-graze covers over 3000kgDM/ha as silage. “Each farmlet remained self contained for feed using this approach,” notes the paper’s discussion section. The no-nitrogen approach reduced options for filling feed deficits, and cow body condition score in winter averaged 0.2 less than on the with-nitrogen farmlet, yet higher summer production saw the no-nitrogen farmlet cows produce 21kgMS/ season more. Based on the research, the authors say Waikato dairy farmers considering changing, for whatever

reason, to a no-nitrogen approach instead of using circa 200kgN/ha/year, should consider the following possible consequences: • Circa 16% less pasture grown • Double the clover but also more weeds • About 17% less milk-

solids/ha • Increased profit if milkprice is <$5.10/kgMS • Reduced profit if milkprice is >$5.10/kgMS. “Profitable production systems can be achieved without N fertiliser applications on well established Waikato dairy pasture,” the paper concludes.

“The relative profitability compared with N fertiliser systems depends on milk price and the costs of applying N. Despite MS production being reduced by 1.07kgMS/kg N not applied, profitability was very similar for these farmlets in six out of nine years.”

Lead author, DairyNZ’s Chris Glassey.

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Rural News // september 3, 2013

38 management Lustre mutation: the lamb on the left has it.

Unusually lustrous lambs wanted IF YOU have any lambs with unusually lustrous fleece this spring, Agresearch wants to hear from you. It wants to investigate what proteins or cellular structure may be special

to their wool, and whether it’s the same as in the lustre breeds. “If you think you have a lamb with an unusual coat please take another look,” says David Scobie, who is leading the lamb quest.

In composites and breeds such as Romney, Perendale, Texel, and in particular Merino, the lambs are easy to spot. But in normally lustrous breeds such as the English and Border Leicesters, and Lincolns, it’s much harder to tell a mutant and a normal lamb apart. It is the second year such lambs have been sought, but last year the only animal found with the mutation was a wether. “Since he is missing rather important pieces of reproductive equipment it’s not the best news for us.” If a lamb turns out to be of the type sought, they’ll buy it at normal commercial rates. In practice that’s prob-

ably a good deal because the lambs are unlikely to make good commercial animals: the silky fleece does not insulate as well as other wool and they have a habit of not surviving cold weather. “The mutation also affects tooth development; their lambs’ teeth may not be replaced as they get older, which means that they have difficulty competing with other sheep for food. “If anyone does decide to keep them I say ‘good luck with breeding them’ because they’re pretty hard to keep alive.” To report a possible lustrous lamb, call AgResearch on 07 834 6627 or email info@agresearch. co.nz.

Stabiliser: it’s hoped better pollination could smooth yield fluctuations.

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AVOCADO GROWERS are looking to bumblebees as potential pollinators given the threats to honey bees and consequent rising cost of pollination services. “We know for many crops that bumblebees are much more effective as pollinators,” says David Pattemore, a pollination scientist at the New Zealand Institute for Plant & Food Research and speaker at the Australia-New Zealand avocado conference in Tauranga next week. “They carry more pollen and are better at cross pollination. Each bumblebee does the work of 50 honey bees on kiwifruit, and we are expecting the ratio to be pretty similar on avocados.” Pattemore says the “overall aim” of the Plant and Food research is to overcome the year to year boom-bust cycle of avocado crops. “We believe that providing growers with the ability to manage highly effective bumblebees is an important part of the solution.” In a pilot trial with artificial nesting boxes for bumblebees in five Bay of Plenty avocado orchards last summer one colony grew to 1500, and 33% of boxes were occupied. “That’s right up there with the best studies worldwide,” says Pattemore. Colin Partridge, technical manager of conference principal sponsor Avoco, says if bumblebees prove a viable option it will do a lot to stabilise the industry. “I hope this research will be leading to good results that our growers can implement to increase fruit set.” The three-day conference starts September 9 and includes field trips that will demonstrate the bumblebee nest boxes. Full conference at www.avocadoconference. co.nz

Rural News // september 3, 2013

animal health 39

Problem species: all three cases of resistance to drench monepantel have arisen on goat farms.

Zolvix cases prompt practical messages actives used within the rotation.” developed in sheep,” Bailey says. Novartis Animal Health does have Nor is the firm aware of any andrews@ruralnews.co.nz reports of reduced or failed control a monepantel combination product THREE CONFIRMED cases of of internal parasites with Zolvix in in the late stages of development and aims to bring that resistance to novel drench Zolvix sheep treated with to market as soon as (monepantel) hold messages on the the product, he adds. possible. “The most imporuse of the product on farm, says manBailey says it is too tant message for ufacturer Novartis Animal Health. early in the investigaWhile it hasn’t been directly New Zealand sheep tion of the goat cases involved in the investigation of the producers, and one to comment on the cases, on goat farms, albeit one with clearly highlighted mechanism the parasheep too – technical services man- by these cases, is to sites have developed to ager Australasia, Justin Bailey – told use monepantel now become resistant and Rural News it appreciates the collab- in rotation with any whether it was, in fact, orative approach taken by the organ- other fully, effective drench options that Justin Bailey, Novartis Animal as rapid as it appears isations that have. Health at first glance – given “We are working with them to they may still have.” Bailey stresses the “now” part of what’s now known about the manbetter understand what has occurred agement practices in place. that message. and why.” A paper accepted for publication “It makes no sense to wait until He points out farms where the resistance has been confirmed were every other drench has failed on in Veterinary Parasitology by Massey using monepantel off-label; as it is farm, because continual use of any University’s Ian Scott et al, details not approved for use in goats. Also, one product or active has been iden- the first confirmed case of resistance. Zolvix was administered on 17 the reason they were doing this was tified as a key driver of drench resisseparate occasions over two years to because worms on the farms had tance.” The resistance cases haven’t various stock classes on a 3ha lower, already developed resistance to all changed Novartis Animal Health’s North Island property carrying 20 other broad spectrum actives. breeding goats and their kids, and “It is important to note that advice on the use of monepantel. “This approach has been well 6-10 breeding ewes and their lambs. monepantel is not registered, recomA problem was suspected when mended or promoted for use in goats validated with computer modelling in NZ and there are no recorded cases as likely to extend the useful life not one adult goat became unwell and of resistance to monepantel having only of monepantel, but of all other was found to have an egg count of 5500 eggs per gram (epg); despite having been treated with monepantel at one-and-a-half times the sheep dose a week previously. Tests of other goats treated In light of the Zolvix cases, Rural Bingham said. found them to be shedding an averNews asked Zoetis if there were “That is, as a quarantine age 2700 epg of faeces and a number any cases of resistance to its novel drench; an exit drench after longof them were also off colour drench Startect (derquantel + acting pre-lamb products such Subsequent tests on lambs and abamectin) recorded or being as capsules; and as a knockout goats found monepantel “ineffecinvestigated. drench.” tive against at least two gastroinIt says there aren’t, and farmers Bingham explains a knockout testinal nematode species [on that using Startect in sheep can be drench is simply substituting a farm], Teladorsagia circumcincta confident in its high efficacy. Like routine lamb drench treatment and Trichostrongylus colubriformis,” Zolvix, Startect isn’t approved for with a drench containing a new states the paper. That’s despite the use in goats. active-such as Startect. lambs having been treated with Zoetis declined to comment on “With its added benefit of being 2.9mg/kg liveweight, higher than its use in that species. in combination [with abamectin], the recommended 2.5mg/kg rate, “Startect can be used in sheep this can help to slow resistance and some of the goats with 7.7mg/ whenever a drench treatment to your existing drench famikg – over three times the recomis required, although the best lies. Ideally, the knockout treatmended rate on sheep. places to use [it] are as a strategic ment would be given to lambs late andrew swallow

Startect status unchanged

drench,” Zoetis vet advisor Dr Clive

summer/autumn.” to page 40

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Rural News // september 3, 2013

40 animal health

Super spring sparks worm warning andr ew swallow

GREAT GRASS growth more or less nationwide in the past month could have a nasty legacy later in the spring, warns an independent parasite management specialist. “I fully expect we’ll see a high challenge October through to December,”

Greg Mirams of Techion Group told Rural News. Already faecal egg counts are “popping” due to the impact of the autumn drought then June storm, which lowered ewes’ natural resistance, and growthy conditions since, he says. Consequently, heavily pregnant ewes need moni-

toring to check they’re not succumbing to the current challenge. Even if ewes are coping, they will likely be shedding eggs which on pasture strip-grazed at high stocking rates will be leaving a problem for later in the spring, he adds. “The contamination is monumental and if or

when lambs are grazed on that country they’re going to be sucking those larvae in.” As for which drench to use, Mirams says the emergence of resistance to Zolvix on three goat farms is “concerning” and underlines the importance of following best practice guidelines with parasite

management: quarantine drenching stock coming onto the farm, and using an effective, best for purpose, product thereafter. “The industry has tended to have a shotgun approach, knowing they’ll get a hit somewhere, but we need to get a lot smarter with which drenches we use for what,

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more like rifle shooting.” For example, in grazing calves cooperia is most likely to cause problems so levamisole or albendazole should be used, rather than ivermectin or abermectin. Conversely, in lambs, using “Bz” drenches is less advisable as resistance is widespread. It all comes down to knowing what works on what, and on your farm. “The more information you’ve got, the smarter decisions you can make. “There will be lots of noise from the scientists about this resistance and what’s going on, but from the farmer’s point of view you need to know what’s happening on your farm and see what you can do to

Paul Kenyon

manage it.” That’s echoed by Massey’s Paul Kenyon who’s been involved in researching the Zolvix resistance cases, albeit as a specialist in sheep production rather than parasitology. “If you use a product that’s not 100% effective you’re going to get depressed performance… that will come off the bottom-line [profit], no question. If ewes lose condition because of a worm burden it can affect reproduction and in lambs, if it is bad enough, lambs can lose weight, rather than gain it, and in extreme cases can die.”

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At last week’s international conference of the World Association for the Advancement of Veterinary Parasitology (WAAVP) in Perth, Australia, AgResearch parasite expert Dave Leathwick presented details of the second confirmed case. That was on a small, commercial goat farm running about 70 mixed-breed meat goats which were first treated with monepantel “on a limited basis” in 2009. In 2012, following a positive post treatment faecal egg count, a reduction test was conducted using a dose of 3.75mg/kg liveweight. Mean eggs per gram was reduced by 22%, from 192 to 150. Tests with abamectin, levamisole and albendazole reduced eggs by 68, 64 and 38% respectively. A derquantel plus abamectin combination (as in Startect) was 100% effective. Lambs brought onto the same farm, grazed, then treated showed monepantel, abamectin and levamisole to be over 99% effective against Haemonchus contortus and Trichostrongylus axei. However, against Teladorsagia circumcincta (previously known as Ostertagia) and Trichostrongylus colubriformis efficacy was zero and 7% respectively. Leathwick told Rural News the second case is “almost a mirror-image” of the first, but on a larger scale. Again, resistance developed rapidly and near totally, to Teladorsagia and Trichostrongylus.

Rural News // september 3, 2013

animal health 41

Tips on teatsprays to minimise mastitis Research indicates only 12% of SAVING TIME by mixing teat teatsprays are applied correctly, spray weekly or even less fresays supplier FIL. quently could prove a costly economy in the long-run, warns manufacturer GEA technologies. “We recommend mixing new solutions regularly,” says Trevor Gulliver, business and product development manager with GEA subsidiary FIL in New Zealand. “The trick is to keep it fresh… no more than a couple of days’ supply at a time.” Incorrect dilution changes a spray’s effectiveness so care’s needed to ensure the right amounts of water and solution are used for the time of year and farm/weather conditions. “We can’t stress enough the importance of reading the instructions and carefully measuring the quantities – there is absolutely no room for guess work when it comes to this job,” Spray and mixing containers he says. FIL’s teat spray dilution charts should washed and scrubbed regularly, using only warm water, show different dilution rates and the same jug should for iodine and chlorhexnever be used for idene sprays for early, measuring teat spray mid and late lactation, and detergent. though there’s a case Gulliver says the for maintaining the same rule applies if early season 4:1 diluusing both iodine tion rate as research and chlorhexidene shows it reduces clinisprays: clean equipcal mastitis in the folment thoroughly lowing season and cuts when switchbulk somatic cell count, ing from one says the firm. product to All-over another. application, and FIL business and product development “Use difcleanliness of manager, Trevor Gulliver. ferent conequipment are tainers and mark them clearly, for also key. “You need to ensure good cov- example teat spray only or detergent only, or chlorhexidene or erage of all four teats including the ‘face’ of the front teats, which iodine only.” Gulliver says both actives have often get missed but are the ones their place, with iodine currently most prone to becoming dry and used by about 70% of farms, parcracked,” notes Gulliver.

key points

• Make fresh mix daily or every other day • Ensure correct dilution for season/ risk • Use dedicated, marked containers for mixing • Cover every teat, on all sides

ticularly during early lactation when wet, muddy conditions create an ideal environment for bacteria to flourish. The best products not only kill bacteria, but also improve teat health, and FIL has the only teatspray with Manuka honey in it, which has proven anti-bacterial and healing properties, it says. “The inclusion of Manuka honey helps the spray adhere to

the teat surface itself, thereby improving teat condition generally, ensuring they remain soft and supple.” FIL notes research* indicates only 12% of teat spray applications in New Zealand are carried out correctly, and mastitis costs the industry about $200m/year in lost earnings due to reduced days in milk, milk quality penalties and culling acute or repeat clinical cases. * A Joe, S Cranefield, I Hodge and T Clarke. Summary of problems identified in 200 milking assessments from mastitis problem herds during 2008/ 2009 in two regions of New Zealand (Waipa and South Canterbury). IDF Mastitis Conference 2010.

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Dairy NZ on teat sprays Teatsprays are especially important if cows are in muddy conditions or walking muddy tracks, says Dairy NZ. In such conditions use spring concentrations and new mastitis cases will be halved compared to cows left untreated after milking. If teat condition is poor, consider adding extra emollient, and use good quality water when making up mixes. New batches should be made at least 2-3 times/week. Spray teats in a circular motion to ensure all surfaces of teats are treated.

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Rural News // september 3, 2013

6 June 2013 20 June 2013

569 lambs processed 70 infected 20.8% 337 lambs processed 82 infected 14.4%

Have you reviewed your sheep measles programme lately???

For more information contact your veterinarian, phone Ovis Management on 0800 222 011 or go to www.sheepmeasles.co.nz

Newborn calves at your place? Tag your animals All newborn cattle must be tagged with a NAIT approved RFID ear tag before they are six months old, or before they move off farm – whichever is soonest. Bobby calves going direct to slaughter are exempt. Register your animals Once tagged, you must register all your calves in the NAIT system within one week, or before they move off farm – whichever is soonest. Registration links individual animals to tags in the NAIT system so they can be traced.

To find out more go to www.nait.co.nz or call NAIT on 0800 624 843

42 animal health

Monepantel resistance ‘remarkable, troubling’ MASSEY UNIVERSITY’S Ian Scott, lead author of a paper in Veterinary Parasitology detailing the first case of resistance, says the three cases of resistance to Zolvix confirmed to date are “essentially very similar.” “They involve small goat flocks, with sheep also present on at least one of them. “Each began using Zolvix in 2009/2010 when it became available, with all three struggling to control parasites at that time due to worms being resistant to the triple combinations of the older products.” After two to three years use of monepantel, on at least two of the properties two species of worms

(Telardosagia and Tricholostrongylus) are “effectively fully resistant, ie unkillable,” he says. “The rapid development of such a high level of resistance in more than one nematode is in our experience highly remarkable and certainly troubling, but the reasons for this will need further research. “Goats are likely a factor since we know that goats metabolise anthelmintics more rapidly and most reports of resistance have cropped up in goats first, appearing in sheep often 10 years later.” Many sheep farms in New Zealand are yet to use Zolvix so a resistance problem currently is highly unlikely,

Rats prompt Catlins 1080 drop TBfree New Zealand and DOC are undertaking an aerial 1080 operation over 38,000ha of private and public conservation land in the Catlins area. The “urgent action” is to control “an exploding rat population threatening the endangered native mohua (yellowhead),” TBfree said in a statement last week. It supports ground-based poison and trapping operations in the area. Over the coming year, of TBfree’s planned 1.45mha of possum control operations in South Canterbury, Otago and Southland, 1.4mha will be ground control methods. The long-term aim is eradication of TB from wildlife across one million hectares of the Southern South Island by 2026. TBfree Otago committee chairman Ross Beckingsale says the Catlins control operation aims to minimise the risk of TB spreading to cattle and deer herds. “It is important that we protect the investment and effort put into controlling TB in the area. We can’t afford to lose the gains that have been made as we work towards eradicating TB from wild animal populations.”

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he adds. “Farmers should still consider it as an option. When they do use it, they should make sure they follow best practice, eg Wormwise recommendations, to ensure that resistance develops as slowly as possible. They should also monitor efficacy!” As for goat farmers, any that have been using Zolvix since its release onto the market would be well advised to get their vet to check whether it is still working, he adds. Scott says he and other Massey researchers are hoping to look at the genetics of the worms now resistant to monepantel to identify how that happened.

LIC launch online info service EXTRACT MORE value, more easily, from animal recording is the promise LIC is making for a new online resource it’s launched. The LIC Learning Centre contains 48 interactive audio and video learning modules under four headings: Animal recording service; Tagging management; Farm automation systems; Pasture and farm management. LIC’s general manager of farm systems, Rob Ford, says the Pasture and farm management module provides real tools to improve output and the automation module has “great insights and tips” on getting more value out of Protrack. The best thing about the new Learning Centre, however, is that it’s available 24/7, he says. “Whenever farmers want to find out something, either for themselves or their staff, the information is there waiting. It’s fun, easy to find, and understand, expressed in farmer logic.” The Learning Centre is only accessible with an LIC participant (ie customer) code.

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Rural News // september 3, 2013

animal health 43

No trend in abuse says DairyNZ andrew swallow andrews@ruralnews.co.nz

THE FOURTH conviction of a dairy worker or farmer for breaking cows’ tails in a year has been widely condemned by industry representatives but there is no evidence of a trend, says DairyNZ. That’s despite MPI’s compliance manager for Canterbury/Westland, Peter Hyde, saying there does appear to be a trend, given he can think of four such cases in the past year. Larger dairy farms, with more staff and less involvement of the herd’s owner(s), is a likely factor, as is greater awareness of ill-treatment and consequent reporting, he says. “Owners are checking cows, as they should do because they are liable too if there’s ill treatment.” Dairy NZ team leader for animal husbandry and welfare Nita Harding echoes that. “It’s very much the responsibility of all who manage staff on farms to ensure staff who work with animals have the appropriate skills.” There are plenty of training opportunities offered by Dairy NZ and other organisations, and information on Dairy NZ’s website, she adds. Where she differs with Hyde is over whether there’s a trend. “We don’t have any evidence of an emerging trend,” she told Rural News. Nor is Dairy NZ aware of any particular change on farm that might be causing a problem like the run of tail-breaking convictions. More larger farms shouldn’t be a factor and responsibility for animal welfare remains with the herd owners, even though they may be distant from day-to-day management of the animals in such situations, she says. The MPI statement about the latest case, in which herd manager Kevin Craig Smith (38), was convicted in Ashburton District Court after pleading guilty to wilful ill-treatment of 154 dairy cows by breaking tails and failing to provide treatment, also highlighted his striking animals with a plastic pipe. Harding says a stock stick is a visual tool to

extend the length of an arm when directing cattle, and should not be used to strike animals. “It’s not acceptable to use any force or violence.” Similarly, twisting a tail to direct a cow should never be necessary, she

ciation, released a joint statement condemning such behaviour. “We’ve seen several instances of this unacceptable practice as of late and it defies logic and stockmanship,” said Feds Dairy chairman Willy Leferink. The pain and distress caused would cut cows’ production and make

them harder to work with and the perpetrator would likely lose their career in the dairy industry, he added. “If you are hot-headed and prone to lashing out, can I suggest the dairy industry is not the career for you.” @rural_news facebook.com/ruralnews

Larger farms: staff training and monitoring key, says DairyNZ.

Nita Harding

maintains. “There are other ways to stop a cow backing out of a bail. Put something behind it.” Cattle are creatures of habit and like routine and consistency, she stresses, so allow extra time whenever they’re introduced to something new, be it a change in race surface from mud to concrete, or going through the milking shed for the first time. “It’s just being patient with them.” Hyde says in the Ashburton case the defendant didn’t accidentally break tails trying to force the cows into the milking shed; he deliberately broke them when he lost his temper. “If animal welfare abuse of this nature is detected it will almost certainly result in prosecution.” Suspicions about Smith’s behaviour were raised in April by an AI technician. A veterinary inspection ensued, finding 154 cows among the 640 Smith managed had fractures in their tails that were clearly man-made. During MPI’s investigation Smith admitted to wilfully breaking the tails of a number of cows and said he was “sickened” by what he had done. He will be sentenced on 14 October. The maximum penalty is imprisonment not exceeding 5 years or a fine not exceeding $100,000. In February a Waikato herd owner was jailed for two years and one month for breaking 115 cows’ tails. Following Smith’s conviction, Federated Farmers, DairyNZ and the New Zealand Veterinary Asso-

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Rural News // september 3, 2013

44 machinery & products Confidence in NZ’s farming future powers tractor business THE MAN heading Power Farming Group predicts a new golden era for New Zealand farming. Geoff Maber, managing director of the Morrinsville-based family owned company, says growth in global demand for quality food and an inevitable fall in farm subsidies in Europe and the US will usher in a new era. “The next few decades will be amazing for New Zealand agriculture, driven by a huge population increase in developing countries and growing demand for bio-fuels. I also believe farm subsidies in Europe and the United States are unsustainable at current levels and must eventually come down.

“By 2030, four of the world’s ten largest economies will be in our region and Asia’s middle class – the fastest growing in the world – is expected to represent 65% of the world’s entire middle class. That’s about 3.2 billion people on our doorstep with the money to afford a richer, higher-protein diet. The next 17 years will be the best period that we’ve ever seen in farming in New Zealand. “In June we were talking about $7/kg for milk solids and people were saying then that wasn’t sustainable. Now Fonterra has announced $7.50/kgMS and we’ll see that go higher, notwithstanding the current short-term blip

Brett, Geoff and Craig Maber.

regarding contaminated powder.” Maber says dairying is the standout performer, but sheep and beef still have plenty of potential and the demand for meat will increase for the

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FOR POWER Farming Group, the enormous global demand for food from this part of the world will translate into continuing higher sales in New Zealand and Australia, says managing director Geoff Maber. The company is now the largest independent importer and distributor of tractors and farm machinery in Australasia, selling about 2700 tractors annually, operating 14 wholly owned or joint venture retail centres in New Zealand and employing about 380 people. It has a new $20 million headquarters in Melbourne for its Australian operation with branches in Victoria, NSW and Queensland. Its spare-parts operation stocks $50 million of parts in New Zealand and Australia. Staff are trained regularly throughout the year at Morrinsville. Service technicians

number 120 between Invercargill and Whangarei. The company has an annual apprenticeship scheme – the only one of its type in New Zealand, it says. In the last decade the group has grown sales revenue by 75% to just over $380 million. Maber says if the company doesn’t grow its business by 25-30% in the next five years, it will have failed. “In the last few years Power Farming has come of age,” he says. “Our big advantage is we’re local people who have done the hard yards in this country over the last 40 years and who invest back into the New Zealand industry and our local communities. “We’ve now got some of the best brands in the world: Same, DeutzFahr, Kioti, Merlo, McHale, Kverneland, Maschio and Great Plains.”

same reasons as growth in dairying. He predicts returns for sheep and beef will rise 25-50% in the next few years. “The world wants our sheep meat and beef, kiwifruit, horticulture and dairy products. I’m confident of export receipts doubling over the foreseeable future.” He believes the strong increase in demand for our primary products is the main reason Chinese companies are keen to invest here, and dairy farm prices will continue to climb. Meeting the big increase in demand for dairy products must be by more efficient farming and higher production per animal – the biggest challenge the industry will face, Maber says. “Large-scale Kiwi dairy farmers are good at what they do, and are the most efficient in the world, operating on a scale unheard of anywhere else. “We’ve got a thousand

herds in New Zealand with more than a thousand cows each – huge by world standards. “If dairying is to grow to its potential, we’re not going to get there just by increasing cow numbers. The secret to higher production is to feed them better and farm them better, and clever farmers are now realising it’s worth spending 10-20% more on inputs to get a 20-30% more output.” Maber says a lot of credit is due to Fonterra and other dairy companies for the industry’s move away from butter and low-end products to premium products such as milk powder and casein. Currently the New Zealand dairy industry feeds about 30 million people with its products. Maber says conceivably that could double to 60-70 million, but the current demand is 10 times that number, a demand New Zealand will never be able to meet.

Grass needs to be cut cleanly and accurately the correct distance from the ground to grow fresh new leaf. Toppers scalp the ground when cutting at this height needed to achieve this. Whether you are mowing in front of the cows or making baleage, a MAXAM mower is the ultimate!

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Rural News // september 3, 2013

machinery & products 45

No tractor necessary GA RE T H G I LLAT T

A SELF-POWERED, trailed bale wrapper recently re-released by Reese Agri does not need tractor power to operate and uses much less wrap than previously, says sales manager John Norfolk. Remote control completed the improvements to the machine. The company’s patented Heliwrapper tube wrapper moves down a line of bales using 50% less wrap than conventional individual wrappers while wrapping round and square bales, the company says. The company also makes a 3-point-linkage machine proven able to wrap 90 bales an hour and Norfolk says the recently released trailed unit will achieve similar wrapping rates, powered by an 18hp diesel engine. The Heliwrapper can work independently of the tractor with a wireless cabmounted remote control allowing the operator to work the tractor and the wrapper at the same time. An automatic electric start and remote controlled steering reduces work for the operator, and computer controlled automatically adjusting brakes ensure

MS1404

consistent tension is kept on the wrap. The operator may choose the number of wraps. And extra wraps can be applied to the joins. The machine is built on the same heavy duty frame and wheels as the original model. Norfolk says they needed to work hard, and got help, to develop a good automated system. “It was our first foray into this area of the market but Massey University was great in providing assistance.” The self-propelled Heliwrapper is intended as an affordable alternative to “limited affordable” market offerings says Norfolk. “Prices have gone up a lot recently and there’s a bit of resistance from farmers and contractors to that.” He says the locally produced tube wrapper will cost at least 25% less than similar products on the market with the same number of, if not more, standard features than other models on the market. Reese hopes to sell the product worldwide alongside its 3PL mounted, hydraulically powered Heliwrapper. Tel. 06 357 9323 www.reesegroup.co.nz

The Heliwrapper does not need tractor power and uses less wrap.

COMPETITION

WIN A STIHL MS 251 CHAINSAW & SAFETY PACK We have a STIHL MS251 C-BEQ Chainsaw, valued at $1095 and a STIHL Safety Pack including sharpening kit, chainsaw chaps, oils, earmuff and safety glasses, valued at $350, to give away in celebration of the 151st Canterbury A&P Show, to be held Wednesday 13 to Friday 15 November 2013.

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FEATURES Pre-separation air filtration system Tool free filler caps Anti-vibration system STIHL Ematic-System Single lever master control STIHL Quick Chain Tensioning Compensator

Rural News // september 3, 2013

46 machinery & products

Fencing contest rises to new challenge vi vi e nne haldan e

FACED WITH the prospect of missing a year of the Golden Pliers, a group of fencing competitors in May formed an associated body – New Zealand Fencing Competitions (NZFC) – in May 2013.

F

e e r

NZFC is set to organise and run the NZ Fencing Championships in October at the 150th Hawkes Bay A&P Show at Hastings on October 23-25. Speculation has arisen over the axing of the prestigious Golden Pliers and doubles fencing com-

petitions, run at Mystery Creek Field Days for 40 years. Main sponsor Wiremark, owner of the naming rights to the Golden Pliers, stopped sponsorship due to “communications issues with Fieldays,” says Andrew Hibbert, Wiremark sales

Fencers compete in the heats at Fieldays.

ld t v er s o t r l

a a sm und PbPly c i a on 3 ro ions

s 1 it na ew 20d Cond a ” P y n s an

42 e v e r t e r M

wit

and market development manager. NZFC event coordinator Debbie White says the newly formed association is now focused on its future, developing over the past few months “a strong structure, and achieving a

comprima

h

s e m i - va r i a b l e r o u n d b a l e r Comprima F 155 and F 155 XC with semi-variable bale chamber are the first round balers that operate on the fixed chamber principle whilst producing bales of variable diameters that range from 1.25m to 1.50m. Combining the functions of both fixed and variable chambers, the semi-variable chamber is a unique system on the world market. Relying on the new NovoGrip system, the design combines quiet running with high baling pressure. Comprima F155 XC features the X-Cut rotor cutter. Distributed by

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significant amount, thanks to volunteers in our organization”. Three competitions will run in Hawke’s Bay: Bill Schuler Novice Round, the Golden Pliers Singles and the NZ Fencing Doubles Championship. “The Hawke’s Bay Show has been positive and accommodating regarding this event,” White says. “The Golden Pliers and the Doubles competitions are pinnacles of representation for the industry. “It gives fencers the opportunity to pit themselves against the best and to try and topple leaders, such as the 14th time current Golden Pliers champion Paul van Beers.” NZFC has become the umbrella organisation for regional competitions nationwide, organised

and run locally with A&P shows and Central Districts Field Days. “Having NZFC formed and run by fencers… the ones competing… gives us assurance they are in it for the good of the industry,” says Hibbert. “They also value their sponsors and will provide us with regular updates.” White refers to strong support from the industry for the new organisation. Sponsors are Pacific Steel/Wiremark, Fencing Contractors Association NZ, Cyclone, Steel and Tube/Hurricane, Strainrite Electric Fencing Systems, Stihl, Stockade/Paslode and Goldpine. The fencing competition’s location and layout has been designed so spectators can easily view the event. www.fencingcontractors. co.nz

Guarantees to catch grass any time, any weather Why choose a Countax? • Lawn tractors with unrivalled cutting and collection • Cuts and collects completely without clogging, even in the wet • Leaves the perfect striped lawn finish • Tough and durable construction

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Brushes rotate against the forward motion of the tractor, throwing clippings to the rear of the collector’s hopper.

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Rural News // september 3, 2013

machinery & products 47

All the fun of the plough IN A bid to attract young farmers to ploughing, the Waikato Ploughing Match Association is staging a funfilled ploughing instruction day for YFC members over the age of 15. Tractors and ploughs will be provided and instructors/ coaches will guide the newcomers. And it’s all free.

Wear suitable gear, bring your lunch and be sure you know the basics of tractor driving, the association says. Two notable instructors will be Malcolm Taylor, a New Zealand reversible ploughing champion, and John Guy, a New Zealand finalist with a conventional plough. The aim is information and

Try before you buy!

FIRST IN PRECISION GUIDANCE

POWER FARMING has launched a ‘try-beforeyou-buy’ hire scheme for its Deutz-Fahr tractors. Once farmers or contractors get behind the wheel and experience Deutz-Fahr features for themselves, they won’t want to get out, the company says.

“Last year’s trial was well received so we decided to step up the programme this year by extending the range of models.”

Time and venue: 10am2pm, Saturday November 2, at Hamilton. A social time and prizegiving will start at 2.30pm. Entries close September 15. For further information and registration contact:Tel. 07 883 5854 or 07 829 4761.

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A limited hire-option trial last year worked so well it has been stepped up to a full programme, says national sales manager Brett Maber. “Last year’s trial was well received so we decided to step up the programme this year by extending the range of models, reducing the hire price and reducing the minimum hours requirement.” Hire rates are from $32/hour for an Agrotron M600 132hp machine (pictured), to $50/h (or $65/h depending on the hire term) for a TTV630 (224hp), plus a delivery charge. Minimum hire period is 100h/month for four months. Power Farming will cover the cost of scheduled servicing in that time. Daily maintenance is the responsibility of the hirer. Maber says it’s a standard tractor hire arrangement with one big difference: if the client decides to buy the tractor at the end of the hire period, the total hire cost (less the set-up fee) can be recouped by the client. “We’re doing this because we believe in the Deutz-Fahr product and because we know once someone drives these tractors and experiences their fuel efficiency, power and traction, they’re going to want to buy…. It’s a no-risk option. And it’s a vote of confidence by Power Farming in the quality of the Deutz-Fahr brand.” Deutz-Fahr is an award-winning Italiandesigned and European made tractor sold by Power Farming dealers nationwide.

fun. All participants will get better understanding of basic ploughing skills and what makes a good seedbed. Plots will be judged throughout the day and prizes awarded. Conventional and reversible ploughs will be used for instruction and display. The event will be filmed for showing on CountryTV.

Image is sample only and may differ on NZ models.

Rural News // september 3, 2013

48 machinery & products

Flexible sheep weigher/ drafter links with any yard A NEW simple sheep weigher and drafter from Te Pari embodies technology well proven and respected, the company says, but without the full

handling capability of its top-of-the-line ‘super handler’. It will attach to any portable yard system. This Racewell-branded

drafter uses the maker’s ‘magic eye’ and radio remote-control technology, giving “flexible set-up and handling simultaneous weighing and drafting

Tunnelhouses

with ease”. “The four-button radio remote control operates every function of the handler; the ‘magic eye’ optical sensors control the opening and closing of the gates, allowing flexible positioning.”

strong steel frame. Plastic guards cover the working areas, keeping electronics and wires hidden and out of harm’s way. The guards give modern clean lines and are easily removed for service. A notable feature is the

are integrated into the machine, a set of standard load bars is not required. Says Te Pari, “the flow of the sheep is also enhanced and the open crate design allows in plenty of external light

so the sheep won’t suffer from a closed-in feeling. The quiet, fast-acting entry and exit gates on the machine also minimise animals’ stress.” Tel. 0800 837 274 www.tepari.com

“Flexible set-up and handling simultaneous weighing and drafting with ease”.

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Te Pari says if the user needs to interrupt the auto cycle for any reason, he simply puts the machine into ‘hold’ mode, checks or tags the animal, releases it, then resumes auto-drafting with the touch of a button. The design includes a

integration of weigh cells into the main frame. This keeps the weigh cells and electronics above the animals and well away from any dirt build-up around the bottom of the machine where load cells are traditionally located. And because the weigh cells

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Rural News // september 3, 2013

machinery & products 49

Duncan expands its seeder range GA RE T H G I LLAT T

DUNCAN IS widening its popular seeder range with three new Renovator air seeders. In June, the company released the Renovator AS16 and Renovator AS19 to provide medium-large scale farmers with an air seeder option. Based on Renovator Classic’s 6-inch spacing and with a lighter frame, the new units suit tractors of 70-90hp, offering an air seeder option to more farmers, says Duncan Ag general manager Craig McIsaac. Working width is 2.9m and bin capacity 300L, making the 16-run AS16 airseeder so mobile that it comes in both a 3PL

and trailed option, says McIsaac. The 19-run AS19 air seeder has a 700L bin and working width a little over 3m. These smaller drills have many of the features that make the company’s larger drills popular with large scale farmers and contractors, including heavy 25mm coil tyne and Duncan’s reversed T Boot which increases the seed strike rate, McIsaac says. “It helps the drill part stay in the ground while being stronger which means the cost of sowing is less. The drills are good machines that offer good consistent seeding rates.” The machines’ no-nonsense blower

units are known for their performance capabilities. Both drill models come with a footboard, handrail and weigh kit as standard. Tel. 03 688 2029 www.duncanag.co.nz Duncan’s Craig McIsaac pictured with new air seeder.

WO R K H O R S ES

Shed design App unveiled A NEW phone app allows the user to interactively design and customise a steel shed in 3D on a cellphone, tablet or computer. Fair Dinkum Sheds’ free shed designer app enables the designer to set the dimensions, roof pitch and colours, and add or remove walls, skylights, roller doors, windows, and doors including the sliding type. The app shows the building in 3D and lets the user rotate the shed to see every aspect. Then the design goes to Fair Dinkum Sheds for quoting by the company’s local distributor. Fair Dinkum Sheds business manager for Frank Best describes the app as “a real innovation” convenient for people pressed for time or living in remote or rural areas. Compatible with all operating systems, the online browser version of the app suits PC or Mac – “Android and iOS (Apple) operating systems. It can be downloaded from the respective app stores onto a mobile phone or tablet,”says Best. When the design arrives at the distributor’s, it goes into his design and engineering software, which then creates a quote and plans for council approval, “to give [the company] a better opportunity to provide a building to suit exact needs.” Shed options include single roller doors, large double roller doors, remote control operators, windows, glass sliding doors, insulation, whirly birds, personal access doors, skylights and more. “Whether you prefer a gable roof or a skillion roof building they can design and suit to your building requirements and budget.” All engineering is independently reviewed and certified to meet the Building Code of New Zealand. www.fairdinkumsheds.co.nz/designer

Check out our websites www.ruralnews.co.nz www.dairynews.co.nz

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1.95%* 06 370 8240 03 544 5723 03 572 8787 03 768 4370 03 349 5975 03 307 7153 03 349 5975 03 687 4127 03 448 8490 03 489 3489 03 208 9395 03 215 9039

Rural News // september 3, 2013

50 machinery & products / rural trader

Simple machine impresses southland contractor A YEAR ago Southland contractor Darryl Black went searching for a cultivator, but when he tried out several different ones his reaction was always, ‘too many moving parts’. Black, who owns Black Ag Ltd in Balfour, needed a cultivator to work up ex-crop ground. Then John McMillan, sales manager for Advance Agricentre in Gore, suggested he try the Kuhn Optimer+ 4003 trailed stubble cultivator. Black’s neighbour had a stubble paddock, McMillian brought out the Optimer+, they set it up and got busy. Fewer moving parts and sealed bearings sold Black on the Kuhn model, says importer CB Norwood Distributors. Black is said to have tried another brand, “but in 20 minutes it was covered in dirt. It had 30 grease nipples and I could see they had to be cleaned every time it needed grease, so it wouldn’t happen as often as it should.” After running with the Kuhn

The Optimer+ 4003’s lack of moving parts and sealed bearings sold Darryl Black.

Optimer+ for a year, he is still pleased with his purchase. “We like it. It does a good job. I like the setup with discs and T-ring rollers, which break up the clods. In one pass the farmer can go from stubble and be ready to drill back into grain. With two or three passes the ground is

ready for grass.” Models in the Kuhn Optimer+ range have working widths from 3.0m to 7.5m. Black’s Optimer+ 4003 is 4.0m wide, and folds up to 2.5m. The Optimer+ is a shallow working tool that mixes stubble and soil in the

top 10cm for aerobic breakdown. It also has levelling tynes and packs down the soil for a good seedbed. Black’s machine has covered about 500ha, mostly getting stubble ground ready for crops, especially kale. He pulls it with a Case IH Puma 210, usually at 8-10km/h. While it is designed for stubble ground, Black also uses it as a secondary cultivation tool. “We’re probably using it for things it was not designed for, but it’s doing well. We use heavy discs to work up a paddock after cows have wintered over and then come in with the Optimer+ to further break it down for crops or whatever. “In heavily compacted places, say where the cows have camped, it may take two to three passes but with normal discs you’d have to do that anyway. In most places we’ve done a couple of passes and then sowed crops, so it‘s cutting down on diesel. At some stage

we are going to try it out on sprayedout grass.” He adds that the cultivator is easy to use. “You drive up to the paddock, fold out and start. It’s a really simple machine. At the end of the day you fold it up and go home. There are no bearings to grease.” Black says contractors cannot pick the ground they work and his machine has coped well with hillsides and stony ground. “The discs are rubber mounted, and each disc is independently sprung so if they hit a rock it bounces over.” The Optimer+ 4003 is on a two-point linkage and has wheels at half way. “It carries a fair bit of weight so it pushes in. At times we lift it to stop it going too deep. In some soils, you can carry too much dirt on the second pass, so you have get used to the machine and read the conditions. But it’s a simple machine for the average guy.” www.kuhn.co.nz

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Rural News // september 3, 2013

rural trader 51 DOLOMITE

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If you’re not farming for profit, good luck with your hobby. Most deer farmers depend on venison income, yet virtually every stud is focussed on antlers. Where can you get genetics that give you predictable and dependable venison productivity improvement? The DEERSelect central database gives you the answer. With 28 of the top 30 proven sire stags* it is clear that Deer Improvement’s 10 year investment is delivering enormous value to our clients and to the venison industry. It used to be that the only way to improve growth rate was with a terminal sire. Those days are gone. Now you can achieve the yearling weights without the headaches and the inefficiency associated with having to devote nearly half your herd to breeding unimproved replacement hinds. Worried about increasing the size of your females? No problem. Just retain the ones that fit your preference. Anything you regard as too big will be worth good money at spring premiums.

AI or sire stags? Take your pick... • If you want a stag, it’s best to let us know sooner rather than later, as we never have enough. The stags are sold by private treaty and are normally settled into their new homes before Christmas to ensure they’re ready for the rut. • AI generates several sire stags for the price of one 2 year old, but you have to wait a while before they’re old enough to spread the genes through the rest of your herd. Inseminate just 10% of your hinds and your entire herd will improve at the same rate as our nucleus herd at Balfour. For a sire catalogue or more information, give us a call.

*DEERSelect economic index (R-Early Kill) Oct 2012

Bruce McGregor 027 233 2063

Hayden Hughes 027 233 2064

General Manager

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Gerald Johnson 027 687 7085 Upper South Island