Rural News 8 October 2013

pasture problems

palm kernel Feds fact-finding mission dispel a few myths on PKE. page 22

How much do we really know about the way our pastures roots grow? pages 36-37

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october 8, 2013: Issue 547

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Dairy creaming it! p e te r bu r k e peterb@ruralnews.co.nz

A SENIOR market strategist at Westpac predicts the Fonterra payout could go higher than the forecast $8.62. Imre Speizer last week told a farmers’ seminar in Taranaki he also expects the kiwi dollar to go as high as 86 cents against the US and 92 cents against the Australian currencies, and that interest rates will rise in the next six months. He told Rural News that Chinese consumers’ demand for milk products could prompt a higher payout. People there are buying milk products and that trend will firm up milk prices. The high payout will have a trickledown effect on the New Zealand economy, prompting more spending, he predicts. But he also notes dairy farmers are increasingly cautious. “Farmer borrowers have become a lot more conservative in the years from 2008 onward and are… paying debts rather than spending. “I think we will see a continuation of

Bid! PGG Wrightson auctioneer Jonty Hyslop takes offers for one of 145 Hereford bulls knocked-down for firm prices at one of several South Island sales held last week. See story p5

IDEATION-DON0327

that, but maybe some spending as well.” Speizer says any rise in the kiwi dollar against the US dollar is unlikely to affect the dairy industry because the milk price and exchange rate move in harmony up and down, a phenomenon unique to the dairy industry. “In other words they are both moving with global cycles. We are in a global upturn now, seeing commodity prices – particularly dairy – rising and the kiwi dollar rising with it. In other words, dairy exporters are insulated.” But not so with, say, seafood and

flowers: they don’t have a global cycle, Speizer says. Sheep and beef prices do, but not to the same extent as dairy. “Dairy farmers should be happy longterm with the present system. If we had a fixed exchange rate they’d be better off now, but would have been badly hurt when the milk price dropped.” Rising interest rates will chiefly affect residential properties, Speizer says. The high dairy payout will have some buffering effect, but the high interest rates could affect farm prices. • GDT jumps – page 3

Imre Speizer

Spinning is winning AN AVALANCHE of trade and biosecurity issues dogging MPI in recent months has benefited one sector – public relations and communications. MPI is reported to have spent $250,000 on communications consultants since its creation last year. The bill includes $33,000 for help to manage the fallout over Fonterra’s false botulism scare. Figures provided to Fairfax under the Official Information Act show Senate Communications has been paid $175,579, Catchphrase Communications $30,791 and Network Communication Group $13,794. Senate was paid $33,834 to help stretched MPI staff dealing with the presumed discovery of botulism bacteria in New Zealand milk powder earlier this year. And the firm was paid $18,572 to develop communications for the Primary Growth Partnership. The $30,791 paid to Catchphrase was for aquaculture projects. Also, MPI paid thousands in associated costs such as photocopying, mileage, internet, media monitoring and taxis. MPI, formed in April last year, has at least 18 communications staff. But the ministry still needed outside consultants to write speeches, write and edit website text and articles and answer media queries. • New boss – page 3 @rural_news

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Rural News // october 8, 2013

news 3 issue 547

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Brand rehab begins pam tipa

Ex-soldier to head MPI PETER BURKE

pamelat@ruralnews.co.nz

peterb@ruralnews.co.nz

News ������������������������������ 1-22 Markets �������������������� 24-25 Agribusiness ����������� 26-29 Hound, Edna ������������������� 32 Contacts ������������������������� 32 Opinion ����������������������� 32-35 Management ����������� 36-43 Animal Health �������� 44-48 Machinery and Products ������������������ 49-57 Rural Trader ���������� 58-59 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

NEW YORK management consultant McKinsey is being used by Fonterra to help rebuild the brand after the botulism contamination scare in August – a false alarm. Fonterra chief executive Theo Spierings says it is too early to comment on what the financial impacts of that scare will be on the cooperative “but as soon as we know the markets will know”. New chief financial officer Lukas Paravicini says the only contingency provision on the books at this stage is $14 million for the 2012/13 year. Spierings says this was to deal with some of the initial impacts. Meanwhile, Spierings says they have been working with McKinsey because they are world-class in rebuilding reputation after events such as this. Spierings will be back in China in late October as part of that rebuild. A plan is now laid to begin restoring the co-op’s reputation and to lift it to a new level, also considering customers, the public and government, Spierings says. Fonterra chairman John Wilson told Rural News that when the board’s review of the food safety recall is complete it will hold a Sky broadcast for Fonterra

Fonterra’s new chief financial officer Lukas Paravicini, chief executive Theo Spierings and chairman John Wilson present the 2012/13 financial results.

farmers to brief them on key findings. The board is doing its own review in addition to the now-completed operational review at management level, and the ministerial inquiry. “We are looking at what happened, how it was dealt with and most importantly we are looking at what the lessons are from that – what we can do in the future. “What is critical is what comes out of this… the way we operate and are we operating right for the next century? This is about what tomorrow looks like rather than what yesterday looked like. “The review is looking at operating

platforms and behaviour on top of those operating platforms – how we operate as people, how we deal with science and, importantly, how we look across the entire supply chain. “New Zealand is in this great position where we are respected widely and globally for being producers of high quality product off our farms, with good science and good regulation. “We’ve got to have a look and ask, ‘is this best-in-class for the next century?’. That to me is the critical thing we must do over the next few months. It is not about trying to deal with it all today, it’s about being thoughtful.”

GDT hits another high

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

GLOBAL DAIRY prices rose again last week, driven largely by higher demand for wholemilk and skimmilk powders The GDT Price Index rose 2.4% above the last sale two weeks ago. The average winning price was US$4980/ tonne compared to US$4880/tonne in the previous auction. SMP prices rose 3.9%, taking the average price to US$4491/MT. The WMP index went up 2.3% to US$5208/t.

Fonterra last month revised its 201314 milk price forecast to a record $8.30/ kgMS. Westpac chief economist Dominick Stephens says if prices continue to rise there may be another upward revision. “This will go down as the biggest upside surprise on the milk price since 2008,” he says. “At the start of the season, global milk prices were extremely high and the

New Zealand dollar was below 80 cents against the US dollar, so Fonterra was being paid roughly $9.00/kg for milk. “But we expected milk prices to fall over the season as New Zealand supply recovered from drought, emerging market economies slowed, and the New Zealand dollar rose. All of these things came to pass, but milk prices simply defied gravity.” @rural_news

A FORMER NEW Zealand Army major-general and SAS soldier is the new head of the Ministry for Primary Industries. Martyn Dunne (63), now New Zealand High Commissioner to Australia, was previously chief executive of the Customs Department. Dunne first enlisted as a territorial soldier and quickly rose in rank. His assignments included leading the New Zealand peace keeping force in East Timor. Primary Industries Minister Nathan Guy and Food Safety Minister Nikki Kaye applaud the appointment saying Dunne has an outstanding record of service in the military, the public service and as a diplomat. Guy says Dunne’s appointment signals a fresh start for MPI and he looks forward to working with him on important issues like biosecurity and doubling our exports by 2025. “His previous experience with customs in dealing with border security will be important, as will his experience on trade issues and his leadership skills.” Kaye says Dunne’s experience in trade access will be valuable as MPI strengthens its capability in food safety and market assurance to exploit opportunities in new and emerging markets. “This is an important role, given that primary industries remain the backbone of New Zealand’s economy. They make up 70% of our exports and generate $32 billion in earnings a year.” The appointment also pleases Federated Farmers, whose vice-president William Rolleston says Dunne will bring a new dimension to the leadership of the MPI. – Editorial p32

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Rural News // october 8, 2013

4 news

Progress on irrigation starts to flow a n d rew swa l low andrews@ruralnews.co.nz

AFTER TWO years of little news, the proposed Hunter Downs Irrigation scheme in South Canterbury is back in the headlines with Government funding and farmer meetings. Meanwhile, another sizeable scheme in the area, Rangitata South, is on the home stretch of delivering water to 14,000ha of thirsty ground some 15 years after it was first mooted. Water take consent applications for the 40,000ha Hunter Downs Irrigation scheme were lodged with Environment Canterbury in October 2006, granted in April 2010, and appealed to the Environment Court in May 2010. In September 2011 agreement with all appellants was reached and consents signed in November 2011. Then it all went quiet, until last month the scheme landed a $640,000 MPI Irrigation Acceleration Fund grant, held an open day and late last week held three farmer meetings. The scheme is a joint venture between farmer-owned company Hunter Downs Irrigation (HDI) and Meridian Energy. Local deer and dairy

farmer Andrew Fraser, who chairs HDI, says the time from the appeals to these latest developments was spent organising the right company structures and governance. “Now we’re looking at a capital-

command area have irrigation from bores they may augment from the scheme. Feedback from last week’s farmer meetings will be used to narrow down the proposals and start running more

“We’d like to have the [pond] linings complete and the commissioning fully finished by the beginning of December and everything finished by Christmas.” raising to do the final feasibility studies, alignment and costings,” he told Rural News. Potentially the scheme could have a command area of 60,000ha, with 40,000ha watered, running north from Waimate to the Pareora River and from the foothills of the Hunter Hills down to the east coast. “We would still like to reach 40,000ha but we are aiming for 20,000ha initially. “We need 20,000ha for us to get across the line,” says Fraser. Most of the uptake will be for new irrigation though some farms in the

detailed costings and engineering feasibility studies. “It will probably be a good 12 months before we’re able to take the next step.” By that time farmers further north in the region, between the Orari and Rangitata Rivers, hope they’ll be getting regular water through the Rangitata South scheme. “We’d like to have the [pond] linings complete and the commissioning fully finished by the beginning of December and everything finished by Christmas,” said Colin Dixon, general manager of Rooney Earthmoving which has built the scheme.

Still lining: Some Rangitata South farmers are getting impatient for water.

However, he stressed that timeline is dependent on extended periods of high flow down the Rangitata: the scheme can only take water above 110 cumecs. Last week the flow was about 90 cumecs. Dixon acknowledges some scheme members are impatient for water, having invested “horrendous” amounts in ponds and pivots onfarm, but says whether the scheme is behind schedule is debatable. “There are different schools of

thought on that. Some people said it would be two years, some people three. Three years would take us to February 2014… [River flows permitting] it will be completed by then.” The chairman of the farmer company committed to buying the scheme and taking the water when completed, Ian Morten, is looking forward to that day. “Naturally, if it gets hot and dry in ten days the [scheme members] will get impatient.” @rural_news

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Rural News // october 8, 2013

news 5

Buyers after extra days in milk AND REW SWALLOW andrews@ruralnews.co.nz

DAIRY FARMERS went home from one spring bull sale last week confident their purchases will mean extra days in milk compared to if they’d bought elsewhere. The sale was Shrimpton’s Hill Herefords, the leading herd in Australasia for short gestation genetics, a claim acknowledged by LIC bull acquisition manager Malcolm Ellis. “When we went looking for short gestation beef genetics we found they’re all in one place, here!” he

told the audience as an introduction to the sale. The shortest gestation length(GL) breeding value of the bulls offered at the sale was -7.5 days, indicating the calves it sires will, on average, drop just under three days earlier than the breed average. Across 25 cows, producing 1.5kgMS/day at $8.50/kgMS, that’s worth nearly $1000 in extra milk. And the earlier the cow is calved, the more likely she is to get in calf in good time the following year. While the -7.5 GL bull didn’t make the top sale on the day, one very close

to it – at -6.9 – did, going for $3600 to a dairy farm at Coldstream, Mid Canterbury. That bull also had a very low birthweight score, at 0.9, indicating extreme ease of calving. This is another key trait for the dairy sector that Shrimpton’s Hill owners, John and Liz McKerchar, have been targeting for over a decade. “It was a very good sale,” John told Rural News after the sale. “There was a definite premium paid for the better the bulls were for short gestation.” All but one of the 146

bulls offered sold and the average, at $2332, was $350 above last year’s. McKerchar acknowledges that because they’re selecting for easy calving and short gestation, the bulls’ growth rate EBVs aren’t as high as some in the breed. However, they are mostly breed average or slightly better and in chasing calving ease and gestation length, they’ve been careful to not completely ignore other traits. More on short gestation length genetics in next week’s Dairy News. @rural_news facebook.com/ruralnews

More to be done to win over China SU DES H KI SSUN sudeshk@ruralnews.co.nz

MORE TRADE visits are needed to salvage the New Zealand brand in China, says Infant Formula Exporters Association chairman Michael Barnett. Speaking to Rural News after a visit to China with 10 infant formula exporters, Barnett says the NZ brand has been damaged and must be rebuilt. And it’s the small and mediumsized exporters who need help to recoup their Chinese businesses, he adds. “Fonterra can do their own thing; they have a big budget and big balance sheet. It’s the small

and medium sized exporters that need help.” Barnett reiterated that smaller infant formula exporters were “collateral damage” in the false botulism scare involving Fonterra whey protein concentrate. “Fonterra have made errors. The small exporters don’t even use Fonterra products yet they are suffering.” Barnett wants more trade delegations to visit four Chinese targets – customers, consumers, retailers and testing agencies. The trade delegations must include Government ministers and MPI officials. Barnett says some people in China still didn’t know that tests on Fonterra’s WPC80 returned false positive.

“I was quite alarmed some people we spoke to were aware alarm bells had gone but not many knew that it was a false alarm. “We need to get the message out that New Zealand has been exporting dairy products for over 100 years to the US and Europe. When we thought we might have a problem with our product, we have come out openly and have not tried to hide it.” Barnett says some infant formula makers have each been losing up to $2 million a week since the false Fonterra botulism scare broke early August. Contracts worth up to $30m have also been either stalled or put at risk. @rural_news

Last week’s bull sale at Shrimpton’s Hill Herefords was ‘a very good sale’, according to owner John McKerchar.

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Rural News // october 8, 2013

6 news

TAF architect eyes board directorships SU D ES H KI SSUN sudeshk@ruralnews.co.nz

OUTGOING FONTERRA chief financial officer Jonathan Mason is eyeing directorships in New Zealand. US-born Mason, who last month stepped down after nearly five years with the co-op, says he loves New Zealand and plans to live here. Earlier this year, he joined the boards of electricity company Vector and kiwifruit trader Zespri. Mason also serves as a trustee of the University of Auckland endowment fund and on the university’s business school advisory board. “I’ll stay in New Zealand. I love living and working here,” he told Rural News. “I’m looking at taking on a variety of other directorships.” And he plans to study New Zealand history in his spare time. He joined the co-op at the height of the global financial crisis in 2008-09 and is credited with guiding the co-op through expensive borrowing rates. In

structure will continue 2011 he was named CFO to evolve. “One chalof the Year and recoglenge with TAF is that nised for his groundif Fonterra was really breaking approach to successful and its share changing Fonterra’s price rose higher, then capital structure and it would prevent farmintroducing TAF. ers from joining FonMason says when terra. TAF is a work in he joined the co-op it progress,” he says. faced “very expensive Former Nestle execborrowing rates”. The utive Lukas Paravicini co-op’s debt ratio was Jonathan Mason has succeeded Mason, high (60%) and it faced whose legacy is invaluable, says Fona strong redemption risk. Mason led Fonterra’s bond issue terra chief executive Theo Spierings. “Jonathan joined us in 2009, in the overseas, raising money at long-term fixed interest rates and using the cap- midst of the global financial crisis. He ital to refinance debt. The debt ratio led our finance team through those difficult times, and the cooperative is now 39%. About one-third of Fonterra farm- emerged from the crisis in a strong ers (based on milksolids production) position. He then helped to deliver opposed introducing TAF. Some farm- our new capital structure with the ers feared it would lead to the co-op successful implementation of TAF. becoming privatised. But Mason says He dedicated himself to building and farmers now realise a strong co-op strengthening our finance function and team.” and TAF can exist side by side. He predicts the co-op’s capital @rural_news  facebook.com/ruralnews

Wool processing costs could be halved FARM-TO-SCOUR COSTS could be at least halved for some Wools of New Zealand growers through the company’s new farm-to-scour service agreement with Wool Services International (NZWSI). Wools of New Zealand chief executive Ross Townshend believes the arrangement could save some wool growers up to 30c/kg. “This is entirely voluntary,” he told a roadshow in Wellsford, announcing the agreement with WSI. “The last thing we want to do is inflict on you a mandate to do that. A lot of you have a relationship with stock and station, brokers, whatever and you are free to stay with them. “We think we can genuinely deliver a saving of about 30c a kg on the directto-scour model. That is worth having; it is not mandatory for us but it’s worth having.” Through the arrangement Wools of NZ can maintain farm identify and integrity all the way through logistics, which was a key to high end markets, particularly in UK and Europe. “This is about doing things smarter and more efficiently at home. We will be offering some plans though WSI: we have

a weekly spot price, a monthly scheduled price and in time we will be moving into more specific contracts with Wool Services.” These will include supply to particular specifications in addition to similar contracts through Wools of NZ. The agreement “provides the ability for us to cherry pick,” says Townshend. “We can put all our wool through the Wool Services model or hold some of it back for Wools of NZ models. They can deal with some of the commodity end stuff. We frankly don’t have a huge structure to do that yet. But as we build our value-added side, we can cherry pick in some part of this.” Townshend says this latest strategy is to build process capability. WSI will provide all back office logistics to move wool efficiently from farm directly to the scour and ultimately to market. It was better to use WSI’s established systems “rather than reinventing the wheel at significant cost”. Michael Dwyer, NZWSI chief executive says the partnership with Wools of New Zealand made fundamental commercial sense. – Pam Tipa

Rural News // october 8, 2013

news 7

$6/kg for lambs wool seen as achievable pa m ti pa pamelat@ruralnews.co.nz

ACCREDITED FARMERS may be able to get up to $6/kg for lambswool through a Wools of New Zealand’s contract with Camira in the UK. Wools of NZ’s chief executive Ross Townshend told Rural News last week they were still negotiating with Camira, but believe the price will settle at about $6/kg. The lambswool is used in premium furnishing fabrics; a ‘story’ traceable back to the farm is a big marketing advantage. “The contract will go out as a first option to shareholders and as a second option to people prepared to commit their wool to us and pay a wool market development fee,” Townsend told a Wellsford roadshow, the first of a nationwide round of Wools of NZ briefings for farmers. These are intended to update grower shareholders on company progress, and attract further nonshareholder growers.

The company is about to hit the market with Camira lambswool contracts for the third year, Townsheld says. They started with 200 tonnes; and the expectation for 2014 is much higher – they expect to supply about 470 tonnes. Confirmation of growth is expected soon from the Camira board “but we are optimistic of about 25% year on year on year”. “In order to be a supplier of lambswool you need to be accredited,” he says. “Wools of NZ accreditation is effectively an extension of the meat company accreditation with a few more boxes to tick about wool harvest issues. “We are also looking to build in a three-year exclusive relationship with Camira as a sort of cornerstone for the business. Part of the modelling for Camira and Wools of NZ, and for suppliers, is to build in a nice steady trend without volatility and with some safety valves.” Camira Fabrics UK development director Cheryl Kindness told the

roadshow their new range of wool-felt upholstery fabric, Blazer, is made from Leneve (Wools of NZ brand) traceable wool. Blazer is in the market now and others are in development as they wanted to take Laneve to a broader portfolio. “Blazer is our second-largest growing portfolio; we constantly need more and more of this lambswool.” The eco label and traceability of Laneve is very important. For certification Camira needs to trace right back to the beginning of the raw material supply chain, whether it is fibre or the dye. Many customers including companies or government tenderers ask if the product has this traceability certification. “We say ‘yes’ and they buy it. They don’t ask any further questions, they just buy it.” Vegetable matter in the wool had to be zero, because it causes imperfections during dyeing. Kindness says some money from the wool and fabric sales is gifted to the New Zealand Whale and Dolphin

Trust to help protect the Hectors dolphin. She presented a $10,000 cheque to the trust while in New Zealand. The dolphin story “had massive resonance in the UK designer market and a lot of product is sold on that story. So it’s not just about giving a cheque to the dolphins,” says Steven Parsons, Wools of NZ’s UK market development and innovation manager. Wools of NZ chairman Mark Shadbolt says the relationship with Camira encapsulates what the company is aiming for. “We started small but we started with a spectacular company that

Ross Townshend

gets right out there to the consumer. That tells the story of what Wools of NZ is endeavouring to achieve on a far greater scale. This is a stepping stone into the future; this fabric shows the diversity in what we produce.”

Rural News // october 8, 2013

8 news Heavyweights to woo Chinese AGRIBUSINESS HEAVYWEIGHTS will be part of a China Business Summit being held next week in Auckland. Fonterra chief executive Theo Spierings and Anzco chairman Graeme Harrison will speak on a session titled ‘Restoring trust with China’. Synlait director Ruth Richardson will be part of a panel discussion on doing deals and raising capital in China. The day-long summit will be opened by Trade Minister Tim Groser.

Organised by the Auckland Chamber of Commerce and NZ Inc, the summit will also discuss protecting the NZ brand and regaining confidence of Chinese consumers. Chamber chief executive Michael Barnett says the annual summit will have a special focus on the recent false botulism scare. Barnett expects about 200 people to attend. @rural_news

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Guy bids an una cálida bienvenida to South Americans pe ter burke

PRIMARY INDUSTRIES Minister Nathan Guy has

laid a plan for a South American government and agricultural trade delegation to visit New Zealand next year. Guy is just back from the ‘Inter-American’ agricultural conference in Argentina, essentially a meeting of agriculture ministers of the US, Canada and the South American nations. He told Rural News he was the only agriculture minister invited from outside the north-south American group. The conference focused on water and natural resource issues but a lot of interest was shown in New Zealand research of greenhouse gas emissions from farm animals. “New Zealand set up the global research alliance in 2009 and 39 countries signed up to that. Thirteen of those countries are in Latin America. We have [spent] $45 million on this work at Massey University and it’s cutting edge stuff. In the meetings I had with other

ministers they were keen to engage and learn from us.” Guy told the conference New Zealand will spend $800,000 on two new Global Research Alliance projects in Latin America – “two regional livestock greenhouse gas research projects, one on dairying in the Andes with Peru, Ecuador, Bolivia and Colombia, the other on trees on farms in Central America with Costa Rica, Panama, Nicaragua and Honduras.” Guy also visited Uruguay and Paraguay, both large beef producers but relatively small in dairying and sheep and looking to develop these industries. He sees opportunity for New Zealand to help these countries develop better pasture species and

Nathan Guy

animal genetics. “We’ve got opportunities with our New Zealand technology – electric fences, electronic ear tags or weighing machines.” Guy has invited the agriculture ministers of Argentina, Uruguay and Paraguay to New Zealand, and says they are “keen to bring a trade delegation and high ranking officials with them.” @rural_news facebook.com/ruralnews

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Rural News // october 8, 2013

news 9

All claim win from One Plan judgement PETER BURKE peterb@ruralnews.co.nz

FEDERATED FARMERS and Horticulture New Zealand are talking up the outcome of the High Court decision on Horizons Regional Council, despite having lost – technically at least. Andrew Hoggard, Feds provincial president for Manawatu Rangitikei, says they got a good outcome that vindicates their appeal and the cost to the federation’s members. From the standpoint of pastoral farmers they got a good outcome from Justice Kos, Hoggard says. “From the start, Federated Farmers accepted pastoral farming was part of the One Plan. Our appeal was never about overturning the plan because parts of the One Plan were already operative,” Hoggard told Rural News. “Justice Kos’ interpretation, expressed in his ruling, is that the One Plan allows exceptions from the fixed nitrogen (N) loss limits. This is positive for our farmers and gives them assurance they will be able to continue farming because unachievable N loss limits will not now

be applied to their farms.” Hoggard says Federated Farmers wanted, effectively, in the 2010 decision version, good management practices to minimise N loss, faecal contamination and sediment. “Justice Kos has agreed with us on this so it is a huge step forward from the unimplementable Environment Court version. Justice Kos has given us a clear pathway for making the One Plan workable. We hope Fish and Game will accept this and will not seek leave to appeal.” Costs incurred by all the parties affected by the One Plan probably now total tens of millions of dollars, Hoggard says. Meanwhile, Horticulture New Zealand is confident it can move on and help build a better regional plan for growers in the central North Island, despite failing to convince the High Court to uphold its legal challenge to the plan. HortNZ resource management and environment manager Chris Keenan says the decision is a comfort to the region’s growers – a practical framework for them to work with.

“Justice Kos has given us a rational interpretation of this plan, codified in a High Court decision. A key aspect of the court’s decision is the ruling that

the One Plan does not meet the requirements of the National Policy Statement for Freshwater Management. Horizons Regional Council has

already informed the Government that it has given effect to the NPS.” Another key ruling is that all growers will be able to get a licence

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to operate even if they cannot meet the leaching targets proposed in the plan. “So nobody goes out of business over this.”

Andrew Hoggard

Rural News // october 8, 2013

10 news

Tatua tops dairy payout with ‘stunner’ PAM TIPA pamelat@ruralnews.co.nz

WAIKATO DAIRY processor Tatua produced a ‘stunner’ 2012/13 final farmgate milk price of $7.40/kgMS, Westland a respectable $6.34/kgMS and Fonterra came in behind with a farmgate milk price of $6.16/kgMS – including a dividend of 32c per share. Fonterra chairman John Wilson says while

$5.84 is not huge compared to the last few years it was important to reflect on the last 12 months. This time last year Fonterra was selling milk powder at $2600 a tonne (currently about $5000/t.) In the second half of the year production was down 9% on the previous year. “That’s a dramatic number. That means the final number of 1.463 billion kgMS was 2% down on the prior year,” he told

an Auckland media briefing to announce the result. But far greater flexibility was available to farmers through TAF, advance payments in the drought, a 1:40 bonus issue which was another 17c/kgMS available for farmers if they decided to sell that share and a successful supply offer where 20% of its farmers were able to participate. Fonterra chief executive Theo Spierings says

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the combined impact of the drought and the reshaping of Fonterra’s Australian business saw the cooperative’s normalised EBIT (earnings before interest and tax) of $1 billion for the 2013 year fall 3% short of last year. Strong EBIT growth was experienced in Asia, Africa, Middle East and in the Soprole business in Chile. However, this was offset by a weaker second half from NZ Milk Prod-

ucts and a 37% decline in normalised EBIT in Australia and New Zealand (ANZ) as Fonterra made changes to its Australian business. Earnings per share were up 7% to 44 cents after taking into account the bonus issue, and on a normalised basis were up 9% to 47 cents per share. Tatua’s payout for the 2012/13 season is $7.40/ kg, described as “stunning” by Federated Farmers member and Tatua shareholder David Fish. The company has also declared a pre-tax retention of $1.17/kgMS. Tatua had revenue of $229.7 million and earnings (before payouts to farmers and retentions) of $107.4 million in 2012/13. The prices for its bulk ingredient products rose steadily throughout 2012/13 and its product mix is favourable versus milk powder, David Fish. “Demand for our products remained firm throughout the year and our product mix returns were favourable,” the company says. However it says if its product mix continues to return lower

Rod Quinn was happy with Westland’s performance given the tough year.

than milk price, “it will be more difficult to match the financial performance of milk companies in the coming year.” Westland Milk’s 2012/13 payout is $6.34/kgMS, with a retention of 30c, a 7% increase on the initial season opening budget. Chief executive Rod Quin says this is a satisfying result given the tough farming and trading conditions. In spite of a major flood in South Westland then one of the worst droughts “in living memory for most of the Coast”, milk volumes from shareholders were up 5.7% at 621 million litres, and milk purchased from other dairy processors contributed a further 68 million litres. Turnover remained steady at $535 million, with a high New Zealand

dollar dampening the high market prices in the second half of the season. Westland ended the financial year with a slightly lower equity to assets ratio than last year at 49%. This reflects the cooperative’s recent investments, particularly in the development of new plant for the manufacture of specialist nutritional products such as baby formula. “The results confirm Westland’s strategic decision to move from being a manufacturer of quality ingredients, to that of being a supplier of valueadded nutritional products, which return higher prices for the company and better results for shareholders,” Quin says. @rural_news facebook.com/ruralnews

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Rural News // october 8, 2013

news 11

Five-way battle for three Fonterra seats SU D ES H KI SSUN sudeshk@ruralnews.co.nz

Heyden and current chairman John Wilson. Wilson, a Fonterra board appointee, was a member of the CAP. It was

THREE UNSUCCESSFUL 2012 Fonterra board candidates have thrown their hats back in the ring this year – and at least one of them is guaranteed to win. Michael Spaans, Waikato, Donna Smit, Bay of Plenty, and Eric Ray, Te Aroha join sitting directors Malcolm Bailey, Fielding, and Ian Farrelly, Te Eric Ray has thrown his hat into the ring again, but not Awamutu, in the gone through CAP. race for the three chaired by businessman board seats. The resigBill Falconer and included nation in May of former another board appointee, chairman Henry van der John Spencer. The ShareHeyden leaves a vacancy. The five candidates will holders Council appointed its chairman Ian Brown next month embark on a and independent Cathy week-long series of meetQuinn. ings nationwide. Next The returning officer month, voting papers, candidate profiles and results for Fonterra board elecfrom the candidate assess- tions, Warwick Lampp, says the panel last month ment panel (CAP) will be interviewed prospective mailed to farmers.

worldwide, is looking forward to the meetings. He will tell farmers why Fonterra needs a director with manufacturing exper-

tise. Ray has been milking 110 cows on a family farm since 1990. Smit, a fierce critic of TAF, and her family, own

Bailey has been a director since 2004 and is chairman of Dairy Companies Association of New Zealand (DCANZ).

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candidates. “The results of the panel’s assessment and profiles of the candidates will be sent to Fonterra shareholders with the voting papers on November 1.” The roadshow meetings starting on November 10 will give shareholders “opportunity to meet candidates and ask questions”. Ray, who has worked in dairy processing plants

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“The panel asked for two referees but none of my bosses are around, they have all died.” Four of the candidates – Spaans, Smit, Bailey and Farrelly – took part in the CAP process. Ray, 73, confirmed to Rural News he did not undergo the CAP process, which is not compulsory. “The panel asked for two referees but none of my bosses are around, they have all died.” Ray, who skipped the CAP last year, says he had issues with van der

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Rural News // october 8, 2013

12 news

A question of when; not if pa m ti pa pamelat@ruralnews.co.nz

SKYROCKETING WHOLEMILK powder prices contributing to Fonterra’s forecast record payout this season will eventually drop, says chief executive Theo Spierings. “But the question is when,” he says. Since Spierings made his comments wholemilk powder (WMP) prices climbed last week 2.3% higher to an average of

US$5208 (NZ$6298) in the Global Dairy Trade event. The forecast farmgate milk price of $8.30/ kgMS is fantastic for farmers and New Zealand, with billions flowing into the economy, Spierings said at the release of Fonterra’s annual results. But it puts pressure on Fonterra’s profit and loss in the meantime. It is a matter of time before WMP prices come down. “We don’t know

how long this will take,” he says. He has never seen such volatility nor such a big gap between WMP and other milk products. “But that’s happening right now; we have to deal with volatility,” he says. The long-term strategy is to increase earnings and decrease volatility by driving more milk volume into higher value uses. Fonterra has to move into longterm supply agreements, paediatrics, food service and all the way up to con-

sumers brands. That’s the name of the game, he says. “I am very much focused not on dairy but on nutrition.” However the wholemilk powder prices are driving up the costs of its food service and consumer brands. In emerging markets Fonterra had overall 11% volume growth last year after years of 2-3% growth. They did not want to stop that momentum. If they passed on the escalating cost of WMP to those

markets it would mean a 50-60% price increase for some products. Competition is rising: “Australia is turning the wheel. If you go into emerging markets with a massive price increase way above inflation you are going to see negative volume growth. And that is why we say we drive the strategy and that means we are facing headwinds.” But the prices would not stay there. “I have had 30 years in dairy; I have

been a customer for a long time of Fonterra. If all WMP is the price it is now I would consider, as a customer, going to skimmilk powder – if I were recombining in, say, Saudi Arabia or South East Asia. “So people have choices – in the end milk is water, lactose, protein, fat – and you can make

Theo Spierings

choices. People will start using different combinations, different specifications for their products. So the high WMP price is not here to stay, but we are quite surprised it is staying here for so long. It is very good for New Zealand and for the farmers but it will level out.” Fonterra chairman John Wilson says the forecast $8.30 farmgate milk price (plus a 32c dividend) is the best estimate to date. If changes influence that during the year, they will update. Volatility is here to stay because supply and demand is now closely tuned globally and impacts such as production, demand and weather are transparent. Farmers needed to manage that volatility on farm, Wilson says. It’s Fonterra’s responsibility to give the best information so farmers can make those decisions. “That’s why you see us updating regularly when we have a view.”

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Rural News // october 8, 2013

Role aims to increase trade p e te r bu r k e peterb@ruralnews.co.nz

MIKE PETERSEN is finding his new role as New Zealand’s Special Agricultural Trade Envoy “hugely stimulating and rewarding”. He’s been in the role only a few months but has already visited Australia and taken part in the latest round of Trans Pacific Partnership (TPP) talks in Brunei. New Zealand is the only country to appoint a farming leader to an an official role in relations with trading partners – a role in place for many years. Petersen says given the role agriculture plays in the New Zealand economy, having a farming person in this unique role is critically important. “I have met all the key negotiators from the TPP countries. When you go there as a farmer and talk to them about the reforms

we have done in New Zealand, and how we have transitioned away from a sector reliant on government support to one that has nearly none, they like to hear that story. They want to know how it could be applied to their economy.” Petersen says a lot of other countries have asked him about his role – especially the Australians. “An agriculture ambassador can open doors. It certainly gets the attention of other countries and their key political and negotiating people. It’s a unique role and I think for New Zealand, with such a big footprint in agriculture, it’s entirely appropriate.” Petersen says in his short time in the job he’s already learned a lot. He doesn’t represent only the meat industry, but also dairy, horticulture and wine. At the TPP negotiations he had to get his

head around a range of issues including the impacts of sugar prices. “I’ve talked to the Australians about our ambitions for a high quality comprehensive TPP agreement and we’ve urged them to advocate for the same. “The TPP talks in

Brunei, which I attended, were really important. We take it for granted here in New Zealand that everyone thinks like we do and that our view will prevail. But the reality is that’s not the case. “In Brunei there were hundreds of people and most of them were there

advocating against the TPP; so it’s important we are there and our voice is heard and we reinforce our position.” One of Petersen’s goals is to try to integrate our agriculture sector much more with the world – especially given on-going food security issues.

“I think we are really hard on ourselves in the sector, yet we are looked upon in awe by other countries. They are looking to see how they can replicate what we doing here in New Zealand. Too often we underestimate what we have to offer in that regard.”

news 13

Mike Petersen

A chance to ‘whey in’ on Fonterra PEOPLE WANTING to make a submission on stage one of the Government inquiry into the whey protein contamination scare have until next Monday (Oct 14) to do so. The Department of Internal Affairs, secretariat for the inquiry, says stage one will review the regulatory framework governing food safety in the dairy industry and the recognised practices that apply in New Zealand, including a comparison with other comparable jurisdictions. Stage two will investigate the incident that originated at Fonterra’s Hautapu plant in 2012 and developed in 2013. But DIA says this part of the inquiry is suspended until after completion of the MPI’s compliance investigation. The inquiry chair, Miriam Dean QC, says it is largely ‘inquisitorial’ in nature, indicating it is unlikely to include public hearings. This inquiry is said to be unique – arguably a ‘fast track’ version of a Royal Commission. Special legislation was passed by Parliament a few weeks ago to enable it to operate. It is empowered to subpoena individuals and organisations. The intention seems to be to get the truth as quickly as possible and not let anyone dodge giving evidence. Dean QC is the past president of the Bar Association, a former partner at Russell McVeagh and experienced as a director. The other panel members are Tony Nowell, a director of Food Standards Australia New Zealand and a former chief executive of Zespri, and Dr Anne Austin, founder of the dairy food safety authority in Victoria. Professor Alan Reilly, head of the Irish Food Safety Authority, will peer review reports. The Inquiry is required to produce an interim report within three months, but the final report will not be completed until MPI has finished its own ‘compliance’ investigation into the scare. – Peter Burke

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Rural News // october 8, 2013

14 news

Fledging milk company continues growing p e te r bu r k e peterb@ruralnews.co.nz

MAORI DAIRY company Miraka says it’s glad to be launching its new UHT product in China next year rather than now.

Chief executive Richard Wyeth returned recently from Asia and China where he met with the coop’s partners including Shanghai Pengxin. Miraka is in a multimillion-dollar joint venture

with Shanghai Pengxin to produce a branded UHT milk product for the China market. The co-op is building a new plant near Taupo to produce the UHT milk, some of it from raw milk from Shanghai Pengxin

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farms in the central North Island. Wyeth noted Shanghai Pengxin’s executives were concerned about fallout from the Fonterra botulism scare, but Wyeth sees no long-term impacts. Other customers he met in China were largely seeing ‘business as usual’ and product is now moving freely across the border. “They are happy to move forward so we were able to sell some product while we were up there and that was certainly good. The only other issue is the end consumer – the people buying the product off the supermarket shelves. “It will take a bit longer

Miraka chief Richard Wyeth

for them to work through and have confidence in the New Zealand brand. But I don’t think there is any long term damage.” Wyeth says other dairy companies such as Fonterra and Open Country were in China at the same time: he saw John Wilson at Shanghai airport as he headed home. Because Miraka doesn’t yet have a ‘branded product’ in China, the impact of the botulism scare is less, Wyeth says. “It’s more the perception of New Zealand branded products, so it doesn’t impact so much on us as a commodity producer to the extent it would on a company put-

ting consumer products directly into China. “The concern for us as we move into UHT branded products is that they are being sold and marketed in China as being produced in New Zealand.” Wyeth also visited Vietnam where Miraka’s shareholder Vinamilk is located. Vinamilk, Vietnam’s largest dairy company, is “quite comfortable, … it’s business as usual”. Vinamilk has recently built a large, impressive UHT

plant using state-of-theart technology – “as good as anything you’d find anywhere in the world,” Wyeth says. “It has 14 UHT filling lines, and to put that in perspective we are putting in two at Miraka and as well they have capacity in their plant to double that.” Vinamilk is producing the UHT milk for its domestic market. Wyeth hopes for opportunity for Miraka to produce extra UHT milk to sell in Vietnam.

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High milk prices not all good Miraka chief executive Richard Wyeth says while the high farm gate price for milk is good news for farmers, it may impact negatively in the longer term. He believes the challenge for people who buy the WMP and use it as ingredients in consumer food products is that they may not be able to pass on the increased costs to the end consumers and that will put a ‘squeeze on their margins’. “The pricing looks to be reasonably steady for full cream milk powder at over $5000 a tonne. If it remains at $5000 for the next two months, I think you may see prices go even higher and that’s going to

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be really challenging for our end customers. “The long terms impact is that it could potentially lead to people substituting other products instead of our dairy products,” he adds. Wyeth says the price issue started on the back end of the drought and is also because there is a two-tier market, with China paying the top dollars and the rest of the world finding prices at the $5000 a tonne too high. “I think the reason for China paying those prices is that they basically ran their inventories down quite low when prices were at $6000 a tonne last season.

“So they are still building those inventories up and demand is still quite strong. “If they don’t get the inventories built up in the next two months then I think you will see prices stay quite high. If prices do come under $5000 a tonne you will see the balance of the world come back in because they are not buying currently and their inventories are running down.” Wyeth says with the large milk flows coming out of New Zealand, one might have expected to see prices go down, but so far this hasn’t happened – especially for full cream milkpowder.

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Rural News // october 8, 2013

news 17

Back from the brink

SADLY, SOME of those who managed the drought best paid a price for doing the right thing. So says Taihape vet Paul Hughes, who’s been monitoring the drought and how farmers have managed the situation. Some farmers who destocked early, fed the remaining stock grain and did all the right things ended up having some ewes with bearings. Hughes has previously seen problems with stock having bearings and, while this year the problem can be linked to the drought, the numbers have actually been higher in the past. Overall he reckons farmers in the district have handled the drought well. He says there was no justice in what happened. “Post drought what happened was that we had an absolute miracle. In July we grew 23kgDM – twice the average and 40% higher than we’ve ever grown before,” Hughes says. “So we suddenly bounced out of a severe feed shortage and we were back almost to a platform from where we could get back to normal. Farmers have done well post-drought, though some have been criticised in the media for not being used to droughts and not reacting quickly enough. “While that’s true in some situations, there is always a big variety of responses. I think, in general, the district handled the drought proactively.” Hughes says about 3000 tonnes of maize was brought into the district; people fed sheep, destocked or grazed them out. He says everyone was then a little bit caught out by the mild winter.

Fraser Gordon says the main lesson he learnt from the drought was being proactive.

ing percentage of about 125% -- pretty good for that year. “This is the 40th year I have been farming and this is the best lambing I have ever had. My ewe losses would have been less than 1% so that has been an upside. All the stock we’ve retained are doing well – healthy and no tailenders.” Gordon’s main lesson from the drought was the need to be proactive and make decisions at predetermined milestones. “You can’t delay things.

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SIX MONTHS ago Taihape sheep and beef farmer Fraser Gordon was – like many in his area – waiting for rain. Back in April the pasture was brown and he was cutting willows he’d deliberately planted for feed for his capital stock. Today he’s almost embarrassed by the fast growing pasture due to the late autumn and winter rains and the “kindest winter” in a lifetime, he told Rural News. Gordon is Federated Farmers Meat and Fibre chairman for Manawatu/ Rangitikei district and watches closely what’s happening in the region. It was a challenging time for farmers there. Some rain has fallen in other parts of the North

ce

peterb@ruralnews.co.nz

Gordon leases most of his farm to his daughter and son-in-law and drought prevented them from mating the 500 hoggets they normally do. But they’ve seen a small bonus: because the hoggets haven’t been shorn, they have a full fleece and this could yield an extra $1.50/kg. The other challenge for the couple is that they destocked during the drought and will now have to restock. This means keeping extra ewe lambs or buying in store stock. Gordon himself has done well, the savior being the fodder willows he fed to his stock for three months as the pastures browned off. He credits the fodder trees with saving his capital stock and the good scanning rate of about 130% for his twotooths. He expects a lamb-

Island, but the Taihape region has missed out. Ironically, Gordon’s farm is called ‘Wairere’ (‘flowing water’) but for seven months just 280mm of rain fell – half the average. Then in autumn it all changed. “When the rains came we were worried it would quickly get too cold with frosts, especially on the high altitude stations around Taihape. We had very few frosts, but the rainfall of late has been patchy and has varied from district to district. Some got up to 68mm, other places missed out completely.” He’s had enough rain to get him through the winter and the grass has grown in months when it normally wouldn’t. July and August saw double the normal growth of about 24kgDM/ ha.

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Rural News // october 8, 2013

18 news

New UHT plant rising p e te r bu r k e peterb@ruralnews.co.nz

MIRAKA DAIRY company’s new $27 million UHT plant is on schedule to produce milk for China early in the new year. Miraka chief executive Richard Wyeth told Rural News they expect to start commissioning the plant in January and to start commercial production in late February. Full production will be reached at the start of next season. The UHT unit is part of Miraka’s wholemilk processing plant about 25 km north-west of Taupo. The new plant stems from a joint venture with the Chinese dairy company Shanghai Pengxin. The UHT plant will source some

of the extra milk required from four Shanghai Pengxin farms in the central North Island, and Miraka will take on some extra local suppliers. Says Wyeth, “We are looking at the plant being able to manufacture 60 million litres of milk into 250 million packs of UHT – 240 million packs a year. “We are currently doing 240 million litres through the powder plant so the UHT project will take us up to 300 million litres for the year. UHT is scalable so we can easily add two more lines and move from processing 60 million litres to 120 million relatively quickly.” UHT requires more storage than WMP, Wyeth says. With UHT the plant takes in 60 million litres of milk and simply reprocesses that

and the volume is the same, whereas with WMP the storage requirement is much less. So a large part of the new complex is for storing UHT finished product. UHT has been around since the 1970s so the technology is “reasonably well understood” and is a robust manufacturing process. “The Tetrapak equipment we are installing for the filling lines is pretty standard across the world. It’s interesting to see the equipment that was in the Vinamilk plant, which I saw on my recent trip to Vietnam, is the same as we are installing here.” Miraka plans to employ 38 staff to run the UHT plant, effectively doubling existing staff numbers. @rural_news facebook.com/ruralnews

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Aussie dairy rivals in takeover tussle sudesh k i ssun sudeshk@ruralnews.co.nz

AUSTRALIAN DAIRY processor Bega Cheese keeps pursuing rival Warrnambool Cheese and Butter, despite the latter having rejected its takeover offer. Warrnambool’s board last month asked shareholders to reject Bega’s bid saying it was inadequate and didn’t reflect fair value. However, Bega Cheese executive chairman Barry Irvin says the offer is still on the table. “We’ll still be dispatching our offer to Barry Irvin Warrnambool shareholders,” he told reporters. “We’ve said right the way through that the offer has no minimum acceptance. So we’ll be delighted if we’re able to successfully merge the companies, but equally we’ll be delighted if we just grow our shareholding in WCB and continue to pursue that bid into the future.” Bega, already holding 18% of its target, is offering 1.2 Bega shares plus A$2 cash for each WCB share it doesn’t already hold. Investors welcomed the tilt, sending WCB’s shares up A$1.26 to a record $5.77. However, WCB has strongly resisted past takeover bids, including one in 2010 by rival processor Murray Goulburn, which owns 17% stake in the Victorian processor.

Both WCB and Bega retain a large number of farmer shareholders after their listings on the ASX. Farmers are keen to see consolidation in the industry. WCB, whose profits fell 50% last year, has been the subject of constant takeover speculation, largely due to the presence of Bega and Murray Goulburn on its share register. WCB chairman Terry Richardson wrote to shareholders asking them to reject Bega’s offer. He says Bega’s offer does not fully reflect the strategic value of WCB. “Among other things, WCB believes the potential synergies from a combination of Bega and WCB are materially higher than set out in Bega’s bidder’s statement.” He claims Bega’s offer is timed to exploit recent gains in Bega’s share price. “The timing of Bega’s Offer is highly opportunistic and fails to reflect the value of a number of recent business improvement initiatives undertaken by WCB.” Australian dairy farmers are backing Bega’s bid. United Dairy Farmers of Victoria president Kerry Callow says farmers had welcomed Bega’s bid for WBC, arguing the deal would give the target scale without lessening competition. Callow says Bega executive chairman Barry Irvin is a trusted figure.

Rural News // october 8, 2013

world 19

New ag minister a welcome appointment Barnaby Joyce

AUSTRALIAN FARMERS are welcoming the appointment of Barnaby Joyce as the new Federal Agriculture Minister. The colourful former Queensland Senator enters the cabinet as an outspoken critic of foreign investment. Joyce has publicly opposed foreign investments in the agribusiness sector, particularly the proposed GrainCorp takeover by US food company Archer Daniels Midland and Indonesia’s plans to buy a million hectares of grazing land in the Top End. National Farmers Federation president Duncan Fraser is looking forward to working with Joyce. “The NFF has had a strong and constructive relationship with the coalition in opposition, and we will continue that with the coalition as they form the Government,” Fraser says. Joyce’s appointment was something of a surprise. The Coalition’s

agriculture spokesman during its time in Opposition was NSW MP John Cobb, who has missed out on a ministerial appointment. Prime Minister Tony Abbott says that wasn’t because Cobb had done a poor job, but because of changes within the National Party, which saw Joyce elected as the Nationals’ deputy leader. Assisting Joyce as the parliamentary secretary for agriculture is Tasmanian Liberal Senator Richard Colbeck, who takes over that role from another north-west coast Tasmanian, Labor’s Sid Sidebottom, who lost his seat on September 7. The agriculture portfolio will include responsibility for fishing and forestry. Says Fraser, “Reprioritising Australian agriculture on the national agenda will be the focus for the NFF, and this will continue to underpin all our work with the new Government, be it on poli-

cies affecting farmer productivity, profitability and access to markets, or the agricultural workforce and the natural resources on which our farmers rely. “Agriculture’s importance to Australia’s society, economy and environment is evidenced by the fact that it crosses so many ministerial

portfolios.” Fraser says its immediate priorities are ensuring the Government’s promised commitments to agriculture – including the pledge to cut red and green tape, invest A$100 million in agricultural research, development and extension, and reinstate native title funding

– are enacted quickly, so that farmers can reap the benefits. “On the many other issues and policy decisions affecting Australian farmers, we will continue our role as farmer advocate and watchdog: ensuring that the Government and the Opposition are held to account.”

KESTÄVÄ (IT’S FINNISH FOR TOUGH)

Red tape chokes Aussie farmers AUSTRALIAN FARM businesses are struggling under a growing and unnecessary regulatory burden, the National Farmers’ Federation (NFF) says. A NFF paper, ‘Red Tape in Australian Agriculture’, outlines the impact of excessive, overlapping and inconsistent regulation, unwieldy approval, licensing and reporting requirements and heavy handed regulators on the Australian farm sector. The paper comes as the World Economic Forum releases its global competitiveness report for 2013-14, which shows Australia has slumped to 128th position, out of 148 countries, for the burden of government regulation – down from 96th last year, and 68th the year before. “Every day, farm businesses battle through a myriad of hard-to-understand, complex or duplicative regulations, making it difficult for farmers to get on with the job of producing food and fibre while also remaining profitable and competitive,” NFF president Duncan Fraser says. “The World Economic Forum figures are alarming – in just two years, Australia has slipped 60 places and is now ranked in the bottom 20 countries, drowning under ever-increasing red tape. “Of course, red and green tape are not new issues. As our paper shows, unnecessary regulation is a huge cost burden for farmers. In 2007, it was over A$22,500, or 14% of average net farm profit. We can only assume, given the extraordinary rise in the amount of regulation passed by the former Government, particularly in their last term, that this figure has increased significantly. “One of the most concerning examples of onerous regulation is environmental law – particularly getting approval to change land use and farming practices.”

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Rural News // october 8, 2013

20 news

Now it is all in the clouds STORM CLOUDS rolled across Canterbury at record speeds earlier this month, causing huge damage and highlighting the need for fast communications to obtain new parts, locally and overseas, for damaged irrigators. Cloud computing has also been receiving a lot of press, but what exactly is it and how can it help, especially in times of storm damage? Put simply, cloud computing means using the internet to access computer programs, and store or share files and information with others. So, for example, if you back-up your laptop to the cloud, you will be in a lot less difficulty if you drop the laptop in a puddle. Cloud computing also allows you to access free or paid programs via the internet without the hassle of having to run them at home. Facebook and Xero are great examples of cloud based

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programs. One often-asked question about cloud computing is, where is my data stored? In simple terms,

Cloud computing enables farmers with upturned pivots to take photos in the paddock, have these uploaded to the web automatically and share them immediately with an insurance and/or irrigation company. most of the time it is far more secure than on your laptop in the back of the ute. There are plenty of cloud backup options, some listed on our website

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(www.rippedorange.co.nz/ ruralnews). Cloud computing gets a lot more interesting and useful when you start using it for sharing information and collaborating. It enables farmers with upturned pivots to take photos in the paddock, have these uploaded to the web automatically and share them immediately with an insurance and/or irriga-

tion company. They could work together on the parts needed then share the information and measurement with overseas suppliers before you get home.

Keep up with the latest stories from Rural News by following us on:

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ruralnewsgroup.co.nz/rss

Visit us at www.ruralnews.co.nz to see the latest stories

For more information on file sharing and collaborating go to www.rippedorange.co.nz/ruralnews Onae barrier to internet and cloud is rural broadband speed, but file sharing does work at slower speeds – it chugs away in the background. To check your speed, go to www.speedtest.net In the city you should get about 8-12 MB download and 0.7 MB upload; anything slower starts to impact video conferencing and document sharing. This will get better with the rural broadband initiatives, but it will take time. Your mobile might be quicker in some places, and smartphones have as much computing power as most PCs. Another benefit of cloud computing is allowing you to access information onthe-go. There are some great mobile apps including OneNote, SkyDrive and mapping and weather applications. Next month we will explore these in more detail. For more information on the above, including helpful tips and videos, visit www.ruralnews.co.nz • 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.

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Rural News // october 8, 2013

22 news

Feds find comfort after PKE tour a da m f r i c ker

SENIOR MEMBERS of Federated Farmers Dairy have visited palm kernel processing plants in Indonesia and Malaysia to judge for themselves whether palm kernel expeller (PKE) is a safe source of stockfeed for Kiwi dairy farmers. Dairy chair Willy Leferink, dairy vice-chair Kevin Robinson and group chair

Waikato Chris Lewis are now reporting back to Federated Farmers on what they saw on a fiveday tour of palm plantations, kernel crushing mills and port facilities near Kuala Lumpur, Malaysia and Lampung, Indonesia. The tour was facilitated by importer J. Swap Stockfeeds Ltd and commodity trader Ameropa. Leferink, Robinson and

Three members of Federated Farmers Dairy Section have been to Malaysia and Indonesia to inspect palm kernel expeller (PKE) processing and storage facilities. Left to right, Willy Leferink, Kevin Robinson and Chris Lewis.

Lewis agree the biosecurity risk posed by PKE was overstated, but are recommending to MPI that junkmetal screening be done by New Zealand importers. “It would still be wise to further develop technical skills in [screening for] metal contamination,” says Leferink. “I’m proposing self-management by New Zealand importers [to screen PKE before

sale] and maybe some sort of import licence. The onus should be on the importer and I think the cost should be minimal. I know Swaps already put their PKE through magnetic screening.” Such screening would add another layer of safety to PKE; magnetic screening was done at all the plants the tour party visited and J. Swap already screens all its PKE in New Zealand, but not all importers do and it is now not mandatory. Lewis and Robinson say they were impressed by the quality of plants they saw and that although poorer quality facilities no doubt existed, the fact MPI had recently done a comprehensive audit report identifying approved facilities for export gave them confidence. In June MPI released

Left to right, Stephen Swap, J.Swap Stockfeeds; Willy Leferink, Federated Farmers; and Alloy Wong, Sungai Budi Group, look inside a PKE screw press that crushes the palm kernels to extract oil, leaving PKE.

audit reports that showed good biosecurity systems in the two main PKE-supplying countries, Malaysia and Indonesia, but recommended “some tightening… to ensure New Zealand’s standard is met”. Deputy director-general, compliance and response, Andrew Coleman said the reports concluded any biosecurity risk from PKE imports is “very low”, but tougher import rules will be enforced sooner to ensure PKE from unapproved plants cannot be shipped to New Zealand. Leferink also observed that economic logic prompted importers to source PKE from larger suppliers to fill a 32,000

“Palm is a versatile feed; it’s safe to feed. The chance of contamination in transit is different from the safety of the product itself. But it would be beneficial to shorten the distance between mill and ship, and as we saw at [Sinarmas’] facility – where they had their own wharf next to their crushing mill – all they needed to do was increase their storage capacity and they could fill a ship on their own. Lewis says all the companies the tour party visited had been “very open” and complied with all requests, at one point even stripping down a screw press on the spot.

tonne ship with the fewest-possible port visits and charges. Smaller mills could not supply the volumes the New Zealand market – now consuming 1.6 million tonnes of PKE per year – needed. The Sinarmas palm oil mill in Lampung was a good example of an ideal source – producing 1200t of PKE a day, able to store 18,000t of PKE and with its own deep-water wharf adjacent to the factory. “It’s important we get to full boatloads of palm kernel so the boat doesn’t have to go to several ports to collect a full load,” says Leferink. “So ideally a boat goes to one port and loads up. The opportunity for contamination between mill and ship is very small.

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Rural News // october 8, 2013

beef market trends



 

 



 

















  

 

BEEF PRICES

















NI

LAMB PRICES Change

c/kgCWT











n/c

5.70

5.70

5.70

n/c

5.71

5.71

5.71

Local Trade - 230kg

-5

4.60

4.65

4.45

Mutton

MX1 - 21kg

n/c

3.20

3.20

3.30

P2 Steer - 300kg

-5

4.35

4.40

4.25

SI Lamb

YM - 13.5kg

n/c

5.68

5.68

5.71

M2 Bull - 300kg

n/c

4.15

4.15

4.00

PM - 16.0kg

n/c

5.68

5.68

5.73

P2 Cow - 230kg

n/c

3.15

3.15

3.30

PX - 19.0kg

n/c

5.68

5.68

5.75

M Cow - 200kg

n/c

2.95

2.95

3.10

PH - 22.0kg

n/c

5.68

5.68

5.76

Local Trade - 230kg

-5

4.45

4.50

4.45

n/c

3.18

3.18

3.15

Last Year

5yr Ave

86,426

Jul

129,288

82,808

95,399

23,153

58,383

23,620

24,104

109,579

187,671

106,428

119,503

11,179

22,924

11,998

12,950

1,023

6,382

1,226

1,731

26,982

41,453

27,236

28,465

10,114

14,094

9,794

9,035

22,522

37,422

19,609

26,231

5,295

25,691

5,188

6,125

-33%

-60%

-42%

-51%

-84%

-35%

-28% -40% -79%

Jun

1000s

Change

Jul

Jun

Lamb NI

+6%

677

639

541

594

Lamb SI

-45%

290

530

277

274

Lamb NZ

-17%

967

1169

818

868

Mutton NZ

+84%

202

110

160

212

  

Export Market Demand









 



Last Season This Season

 





Change

         

  

Export Market Demand



Change

  

 













1.82

1.34

1.79

NZ$/kg

+8

7.77

7.69

5.75

8.62

 Last Year

5yr Ave

 

+2

2.00

1.98

2.06

1.74

NZ$/kg

+11

5.32

5.21

5.45

5.12



 











Procurement Indicator







2Wks Ago

-5%

81.8%

86.4%

79.86%

80.2%

% Returned SI

-3%

78.0%

81.0%

73.4%

73.6%

Last Year

5yr Ave





Change



























 





Last Year 5yr Ave

74.6%

75.4%

99.1%

71.3%

% Returned SI

-1%

73.4%

74.8%

99.1%

70.3%

      

 





















3 Wks Ago





  



2Wks Ago



-1%







% Returned NI

 





% Returned NI

Change





3 Wks Ago









Procurement Indicator

























Last Year 5yr Ave

1.82





2 Wks Ago

n/c

2 Wks Ago





Last Week

UK Leg £/lb

Last Week

95CL US$/lb



Last Year 5yr Ave







Total Monthly Kill

             



MX1 - 21kg

NZ Slaughter

Total Monthly Kill Change

Mutton

 

5.68

PX - 19.0kg

Cows NI



5.66

5.68

PH - 22.0kg

Cows SI



5.66

5.68

3.60

Str SI



5.66

n/c

3.50

Str NI



n/c

PM - 16.0kg

3.55

Bull SI

  

YM - 13.5kg

3.45

Bull NI



NI Lamb

3.50

Cattle NZ



4.35

Last Year

3.40

Cattle SI



4.30

4.65

2 Wks Ago

-5

Cattle NI



4.35

4.60

Last Week

-5

1000s   

4.30

Change

c/kgCWT

M Cow - 200kg

NZ Slaughter 

Last Year

P2 Cow - 230kg

SI



2 Wks Ago

-5

M2 Bull - 300kg





-5

P2 Steer - 300kg

Last Week

    











lamb market trends



Market snapshot

       

 





















Venison Prices



 

















Change



 Beef  & venison prices are reported as gross (before normal levies & charges are deducted). Lamb & mutton prices are reported nett (after levies & charges are deducted). 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

n/c

7.15

7.15

7.50

8.39

SI Stag - 60kg

n/c

7.50

7.50

8.00

8.80

Check out our websites BREAKING NEWS MANAGEMENT STORIES MARKETS & TRENDS MACHINERY REVIEWS COMPETITIONS AND MUCH MORE...

www.ruralnews.co.nz

Rural News // october 8, 2013

news

price watch



BEEF

WOOL PRICE WATCH Change

26-Sep

19-Sep

Coarse Xbred Indic.

+2

5.17

5.15

3.67

Fine Xbred Indicator

+5

5.33

5.28

4.65

Lamb Indicator

-

-

-

-

Mid Micron Indic.

-

7.37

-

8.55

Earlier start to beef schedule decline

Indicators in NZ$

The seasonal decline in beef schedules happened a couple of weeks earlier this year compared with last season and five year averages. Companies have been above the odds for beef since autumn, and in the face of a much weaker US market and now a higher dollar, they must be slicing considerably into profits. Last week a 300kg export steer was making $4.60/kg in the North Island and $4.30/kg in the South. Bull slaughter is still very low and remains below historical levels season to date. A 300kg export bull is making $4.30/kg in the North Island and $4.15/kg in the South.

Australia renew focus on US Australia is repositioning themselves to target gaps in the US beef market over the next year. Increasing demand for manufacturing beef imports, an expected favourable exchange rate and a 3% lift in slaughter rates has Australia well placed to lift exports to the US, according to ABARE’s latest commodity report. Stronger demand and prices from other markets diverted a lot of Australian beef away from the US this year. However the latest forecasts suggest Australia look set to up export volumes by over 11% or 23,000 tonnes to 230,000t. Despite Australia looking to renew their US focus, chances are there will be plenty of room for NZ beef. US analysts are already expecting a 15% drop in US beef cow slaughter in 2014, which will underpin import demand.

LAMB Early start to new seasons lambs As the end of the season arrives, the flow of old season’s lambs through works is steady. Prices vary from $5.80-$6.00/kg (gross incl wool/pelt and presentation) in the North Island and $5.60$5.90/kg in the South. A small trickle of new seasons lambs have started appearing at some works, a testament to the favourable growing conditions to date. Supply is expected to take off in the next couple weeks. Christmas chilled contracts are not proving hard to fill, but some are predicting that by the end of October lambs will become harder to source.

Slightly higher export lamb kill on cards With the 2012/13 season at a close, reports suggest that the export lamb kill will be slightly above the forecasted export crop of 20.5 million. Up to the end of August the kill stood at almost 20 million, and with estimated September flows looking slightly above last season, we would expect to see the total kill lifting closer to 20.8 million. As long as this is an adjustment to the margin of error in the original forecast, it is a positive, but it may also represent a higher percentage of ewe lambs slaughtered as a result of drought, that would normally be kept as replacements.

DAIRY PRICE WATCH Last Year











Indicators in NZ$/T Butter Skim Milk Powder Whole Milk Powder Cheddar



Last Year

-4,840

0

4840

3898

-5,780

0

5780

4078

-6,181

0

6181

3883

-5,487

0

5487

4557

 





Prev. 2 Wks







Last 2 Wks

Change

 







  









 

















  













 

 











Last Year

Overseas Price Indicators Indicators in US$/kg

26-Sep

19-Sep

-6

4.26

4.32

-3

4.39

4.43

3.80

-

-

-

-

-

6.08

-

6.99

Fine Xbred Indicator Lamb Indicator Mid Micron Indicator

3.00

Indicators in US$/T Butter









Last 2 Wks

Prev. 2 Wks

Last Year

-4,688

0

4688

3400

-5,013

0

5013

3238

-4,450

0

4450

3800

Change -3,925

Skim Milk Powder Whole Milk Powder Cheddar







Overseas Price Indicators

Change

Coarse Xbred Indicator



0

3925

3250













 

 







 













 



  

 

















  







  











 











Currency impacts venison prices A good flow of venison is finally being presented for slaughter in both islands. Market conditions are still only average as competition with excess product from Poland and Spain combines with a continuing struggling EU economy. Currency movements towards the end of Sept resulted in one of the larger players reducing schedule prices by 10c/kg; a movement very rare at this time of year when the chilled supply season is in swing. Contract suppliers are reaping the benefits as spot prices are struggling to take off.

CURRENCY WATCH vs. NZ Dollar

An increase in demand from China is impacting the dairy product market as their domestic production is 5-6% lower than a year ago. Buyers are looking to make up the difference with imports. This is resulting in a tightening of supply from New Zealand and Australia and a strengthening of the WMP price around the $5.000 per MT mark. Good demand from Russia is aiding a upwards trend in butter prices.



0.828

0.838

0.777

0.834

Euro

0.615

0.619

0.587

0.645

UK pound

0.516

0.522

0.501

0.513



Aus dollar

0.887

0.886

0.869

0.798



Japan yen

81.84

83.14

76.38

64.68

Euro



US Dollar



US dollar

DAIRY Chinese demand boosts dairy prices

Last Week 2 Wks Ago 4 Wks Ago Last Year

  











UK Pound













 

 



Jul

Aug

Sep

Oct

Nov

Dec

  













Rural News // october 8, 2013

26 agribusiness

Dairy man jumps on asparagus bandwagon THIRTY FIVE years ago Geoff Lewis left his parent’s small dairy farm to seek his fortune in the sheep and cattle industry. Today Lewis has added a dairy farm to his business, but asparagus growing has propelled him to prominence as a highly

regarded grower using technology for maximum profit. “When Liz and I got married, I went and managed a coastal sheep and beef farm and forestry block north of Foxton. My employer there was keen to diversify. In the late

1970’s the catchcry was ‘diversify’ and there were goats, deer, kiwifruit – all embryonic. “MAF had an advisory office supporting diversification by farmers so we investigated and decided perhaps asparagus was a good option for the free-

Geoff Lewis’ Tender Tips asparagus business has grown from strength to strength over the years.

draining sands of the west coast.” Lewis decided it was a good way to go. “Once I learned the trade, Liz and I thought we would invest in it on our own. We purchased a small property behind Foxton and planted 10ha of asparagus. It was also a time when the canning industry was in its heyday.” Manawatu had a canning factory, Hawkes Bay had several. Some product was also frozen. “Eventually our own operation became too big for me to manage with my job so in 1986 I decided to leave my job and become a fulltime asparagus grower,” Lewis told Rural News. About then his father died, so Geoff and Liz leased the farm off his mother and converted it to asparagus. “Processed asparagus was seen then as the main market for the crop grown

Around 65% of the asparagus crop is sold in New Zealand and 35% exported mainly to Japan.

in New Zealand. Today, processing is a minor part of the industry and fresh production is to the fore. We have a fresh packing operation and about 65% of our 300 tonne crop is sold in New Zealand and 35% is exported to Japan. “That’s changed. It was the other way around, but the Japanese industry has shrunk somewhat and we are now focused more on the domestic market.” Lewis has his own nursery to grow asparagus plants. He buys in the seed, some from New Jersey, USA, and some

from New Zealand. “There is a plant breeder in Canterbury – Dr Peter Falloon – who is one of only six asparagus plant breeders in the world and he is a major supplier of seed to us. We precision drill the seed in our nursery – generally up to a million or so plants and that’s grown there for a year.” At 10 months of age these plants are dug, sorted and replanted in the final beds, where they will be for about 15 years. No harvest is taken for a further two years; the first

harvest is in the third year but only for about 30 days. “The second year we’ll harvest for about 60 days and the third year for about 90 days. “After that we run through the normal harvest time which is midSeptember to Christmas – about a 100 day harvest.” Lewis says it’s important not to over-harvest the young plants as they need time to establish. Asparagus is not a gross feeder and doesn’t require large amounts of fertilizer. The chief requirement is free draining soils. ASB3811/RN

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agribusiness 27 The Samoan connection runs deep DURING THE height of the harvesting season – from now until Christmas – growing and packing employs up to 120 people, including a few from Pacific islands. Lewis was one of the first to bring Pasifika to New Zealand under what is now known as the RSE scheme, whereby they can work here in horticulture for up to seven months in any year. The employer pays half their air fare Geoff Lewis with the high-speed asparagus grader.

Technology, automation the saviours THE TENDER Tips packhouse is a hive of activity in the season’s full swing. Asparagus comes through for washing, grading and packing, then off to supermarkets and, of course, Japan. Setting Geoff Lewis apart from many in the industry is his commitment to innovation. For example, when a Japanese customer in 1994 expressed concern about the use of methyl bromide to kill pests in the crop he hired a Crop and Food Research expert and, with government funding, devised a ‘non chemical’ solution which gained MAF and now MPI approval. Essentially it uses warm water and time control to kill insects in the crop “Our last project was high speed grading,” Lewis says. “We couldn’t get accuracy with our other computerised grader so in a research project with Massey University we developed a high speed grader very accurate in weight measurement. “Because we are selling small 80 gram bunches to Japan, if we send one over and it happens to weigh 90 grams we have given away 10 extra grams of weight we won’t get paid for, and we must pay the air freight on it. So accuracy in weighing for export is important.” One of Lewis’s sons works in the field of ‘mechatronics’, a design process involving mechanical, electrical, computer and control engineering. He’s looking at mechanical harvesting which could revolutionise the industry. “Currently all asparagus is harvested manually with a long knife. In 6km of rows per hectare, if you have 100ha of asparagus, you have 600km of rows to harvest daily. “So you can understand the distances the pickers have to travel to harvest the crop. But it is difficult to automate. [Automating] it will save an awful lot of walking and bending down.”

Party time! THE TENDER Tips packhouse, packed with innovative technology, has other uses. For example, from the retail shop customers can watch packers in action. It has great feel, and Geoff Lewis reports amazing feedback from customers. Booklets and recipes are offered for sale. At night, when the grading machines are quiet and the radio is turned off, the packhouse becomes a bandroom where Lewis and three mates rehearse their ‘Gravel Trax’ country rock band – without annoying the neighbours. The band plays at local pubs and functions and recently took the stage at the HortNZ conference in the Wellington Town Hall, to the delight of fellow growers. Elsewhere the packhouse displays country memorabilia, e.g. saddles, saws and small farm implements.

and helps with accommodation; the workers pay their rent and living expenses. No government subsidy applies, but the government helps facilitate. Lewis points out most Pasifika have a subsistence lifestyle, growing vegetables and fishing. Their cash-earning opportunities are limited, so the RSE scheme helps them generate cash. Lewis’s have employed people

only from Samoa and when the earthquake and tsunami struck in 2009 it posed challenges. Many people were killed and 3000 lost homes. “My staff from Samoa were in the field working here when the tsunami struck and I contacted my farm manager who was out in the field with them. Many were from the district of Aliepata and from the badly hit village of Lalomanu, which was completely

destroyed,” Lewis says. “We discovered the relatives of our staff were ok…. That night I promised them that if anybody had lost their homes I’d replace them.” Lewis launched a local fundraising campaign to replace houses lost by three of his staff. $25,000 was raised and in the following January he and people from Levin district went to Samoa and rebuilt the houses.

Rural News // october 8, 2013

28 agribusiness

francis wolfgram Finance Matters

Future looks good – dollar and markets holding which bodes well for the NZ bull kill coming up in November. Indonesia recently announced NEW ZEALAND’S primary exporters are enjoying buoyant trading condi- changes to its beef import policy, which tions despite slower economic growth in place of import quotas allows beef imports once local Indonein China and other emerging markets. sian beef prices rise above This slowdown, however, has not a certain level. The curimpacted the underlying consumer rent level of high prices in demand for protein-based foods in their market has led to an these economies. It has also been increase in NZ beef offset by recoveries in our export orders to Indotraditional export marnesia. kets such as the Meanwhile, beef United States supply out of Canada and Europe. Will commodity prices keep increasing? has been limited and growInternational supply and inventories of agri- ing Chinese demand is absorbing the cultural commodities remain tight, Australian beef supply. In the US, cow slaughter is down especially in meat and dairy, underpinning continued support for our key about 15% on year-ago levels, as the export products. There are good signs improvement in pasture conditions and for beef exports as the uncertainty over expectation of a rebound in calf prices the supply of US beef has supported an are encouraging farmers to retain their improvement in demand for NZ beef, herds. Prices back home have finally F RA N CI S WO L FG RAM

cracked the 400c/kg mark with the North Island bull indicator averaging 407c/kg for the first week in September – 3% higher than in the same week last year. Beef + Lamb NZ forecasts the 2013 lamb crop to be 24.4 million – down about 2 million head (-7.7%) on the previous season. If confirmed, after this year’s lambing is complete and numbers tallied, this would be the lowest NZ lamb crop since 1955. September kill figures will also show how many extra lambs were killed out of the replacement flock due to drought conditions. Better growth indicators in the UK and stabilisation appearing in Europe make good reading for an improvement in export demand; lamb exports to China are also continuing to push higher. Chinese consumers are acquiring more taste for lamb products, trending away from cheaper frozen meat to more expensive cuts, adding to over-

all returns. This is all positive for lamb few months moving into the end of the prices, expected to rise well above the year However, the complete picture for previous session numbers. Dairy prices have been stable over dairy prices in 2013 is expected to be the last few months; the wholemilk bright. With dairy already accounting price has increased only 0.5% since the for at least 25% of our merchandise exports, elevated start of August as opposed to a decrease prices year-onof -8.3% since the start of year will give a May and an increase worthwhile boost of 55.1% for 2013 as a to overall annual whole. merchandise Fonterra has export receipts. increased its forecast The 0.2% rise in farmgate milk price for How will the currency GDP for the second the 2014 season by 50 affect prices? quarter of 2013 was weak, cents to $8.30/kgMS. The but this figure was heavily affected by increase, plus an estimated the drought and did not fully represent dividend of 32 cents per Fonterra share amounts to a forecast cash payout the economic outlook. Leading indicaof $8.62. Increasing production supply tors suggest the stage is set for stronwill eventually result in dairy auction ger growth in the second half of 2013; prices retracing part of their recent exporters will hope the Kiwi dollar gains and prices are likely to consoli- doesn’t hitch a ride on the back of this date near current levels over the next growth and erode overall returns.

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agribusiness 29

Massey dairy farm heads for big changes pete r bu r ke peterb@ruralnews.co.nz

MASSEY UNIVERSITY has completely revamped its No 1 dairy research farm to try to find new ways to farm more sustainably and profitably and produce high quality milk. It will also seek to reduce the workload on staff and to meet new environmental standards being set by regional councils, especially in sensitive catchments. The new project was launched last week, with Massey vice-chancellor Steve Maharey saying he hopes what will be done on No 1 Dairy Farm will help people deal with the nationwide debate on dairying. This includes how the issues of productivity, profitability and sustainability are balanced in way that allow dairying farming to continue into the 21st century, with the whole community’s backing. The major changes being made to No 1 dairy include reducing the size of the milking platform by nearly 40%, reducing cow numbers from 360 to 240 and changing to once-aday (OAD) milking. Some of the land taken from the original milking platform will be planted in trees, some used as feed for cows and the rest for riparian plantings. Other land will be used for crops such as Lucerne for feeding cows. The farm is just across the road from the main Massey campus and backs onto the Manawatu River, noted for claims that it is being polluted by dairy farms upstream and local

council sewage systems in its lower reaches. Assistant vice-chancellor Stuart Morriss – who has overall responsibility for the project – says the interrelationship between agriculture and the environment has been the focus of huge attention over the years. “In recent years the Horizons Regional Council One Plan has heightened that awareness for many people in the region about the challenges of farming in a sustainable manner financially, environmentally and socially. The sort of environment we have on the No 1 dairy farm is similar to the ones faced by many farmers in the priority catchment zones. “Also No 1 dairy’s proximity to a large urban area and a waterway provides opportunities to research a number of issues.” Morriss says the project is as much about people as it is about technical farming issues. In respect of people, the move to OAD is to see if people can work just 40 hours a week. It is recognised that many are turned off the dairy industry because of the long work hours. The university plans to talk to farmers, policy makers, schools and the public. But in its quest to find new systems, Massey University will look to use a wide range of technologies to monitor everything on the farm. This will include individual stock performance, pasture performance, weather, water, N leaching and animal health and welfare. Just about every department in the university is likely to have

a role in the farm. It will also work with partners such as DairyNZ, Fonterra, Federated Farmers and local councils, all of whom had representatives at the launch.

No 1 dairy farm will not be a ‘demonstration farm’, but will remain a research farm for teaching purposes, but Massey is keen to get ideas and feedback flowing from inter-

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Rural News // october 8, 2013

32 opinion editorial

edna

Smart appointment NEWS THAT Martyn Dunne, currently New Zealand High Commissioner to Australia and a former head of the Customs Service and senior army officer, has been named head of the Ministry for Primary Industries (MPI) is good news for the primary sector. Dunne will take up his three-year term on November 18, succeeding Wayne McNee who left in July to join LIC. Scott Gallacher has been acting director-general since McNee’s departure. Primary Industries Minister Nathan Guy believes the appointment signals a fresh start for MPI. Federated Farmers has also welcomed Dunne as the new director-general, rightly noting that he “brings a completely new dimension to the leadership of the MPI”. DairyNZ also welcomed his appointment. Chair John Luxton says MPI has a vital part to play in enabling the primary sector to make the most of the opportunities to grow our export value. The State Services Commission says Dunne has been high commissioner to Australia since 2011, following six years running the Customs Department where he oversaw a strengthening of border protection. Dunne’s professional background and high-rank military role, and his experience in trade access, customs and international relations make him a good choice to head the country’s most important government department. This is a very important role, given that the primary industries remain the backbone of New Zealand’s economy, accounting for at least 70% of New Zealand’s exports generating annually about $32 billion. MPI has been criticised in recent years, not least for its role in introducing the kiwifruit wasting disease PSA and for the muddled paperwork that stalled meat exports on China’s wharves this year. The ministry has undergone a lot of change since it was formed from the merger of the Ministry of Agriculture and Forestry, the Ministry of Fisheries and the New Zealand Food Safety Authority. It now needs a sustained period of stabilisation and consolidation. Let’s hope Dunne’s leadership at MPI will bring the ‘fresh start’ Minster Guy has called for as well as the stability New Zealand’s primary sector needs.

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

“Hello – Council Consents Department? – You’re not going to believe this, but I’ve just discovered that row of trees you won’t give me a permit to drop, was actually blown over in last week’s storm!”

the hound

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

Underarm?

Good job

Flying pigs

THE HOUND wonders if the Aussie-owned and controlled publisher of weakly (sic) Straight Furrow will offer a full apology to dairy farmers, Fonterra and its local readers (both of them) after running the unsubstantiated, profoundly wrong and discredited claims of Matamata ‘veterinarian and farm performance consultant’ Frank Rowson during the Fonterra botulism botch-up. It makes your old mate wonder if the Aussies are using their organ to bowl another underarm delivery and run down New Zealand’s farming sector for the benefit of their Australian producers.

THIS OLD mutt hears plenty of stories about young people being workshy – especially in ag sector roles. However, the Hound reckons this view may need to change after what happened when the Rural Contractors Association (RCNZ) recently ran an open day for people interested in working for a rural contactor. Apparently, organisers expected perhaps 20 or 30 people to attend, but were completely amazed when 112 turned up to get more information. One keen bloke even walked the 13km from Invercargill to the open day – because he didn’t have access to a car.

YOUR OLD mate has long opined about the growing rural/urban gap and concerns about how this has set country against town. It’s not just a problem in New Zealand. A new survey in the UK, by the RSPCA’s Freedom Food scheme, has revealed the startling ignorance of the basics of food and farming including which farm animals fly and which ones walk. Many respondents believed you could obtain pigs’ wings. Although 72% of the 1000 people questioned said they had visited a real working farm with animals, one in 10 had no idea where their food comes from.

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

Unlucky strike

Change of tact?

THE HOUND’S thoughts go out to Kihikihi (Waikato) farmer Russell Brown who had nine cows killed by lightning in their paddock during a wild storm last month. Their value: $1500 to $2000 each. Brown said the herd tended to huddle by the fences during a storm with their hind quarters toward the prevailing wind and with no trees in the paddock they may have attracted the strike. The good news is that the local farming community has rallied around the Browns with offers from friends and strangers to replace lost stock.

YOUR OLD mate reckons farmers around the country – especially those with power pylons on their properties – will not be sad that the current chief executive of Transpower Patrick Strange will soon be replaced. The aptly named Dr Strange and his cohorts at Transpower got offside with many rural folk with their proposed ‘land grab’ restricting rural landowners’ building and landscape work within 64m of cables on private property. They’ve even gone so far as challenging district plans in various rural areas to get such regulations embodied in by-laws, which has got right up the noses of farmers.

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 // october 8, 2013

opinion 33 ag twits Rural News’ irreverent and hypothetical look at what’s happening in the farming world Top Bleats view all mikepetersennztradeenvoy: Now that I’ve landed this sweet trade envoy gig, I wonder which sucker I can dump the Beef+Lamb NZ chairmanship onto? ! #anidiotneeded jamesparonsblnz: Dear @mikepetersennztradeenvoy thanks so much for recommending me as the new chair of Beef+Lamb NZ. But can you explain what the flak jacket is needed for? #lambtoslaughter richardyoungmie@ jamesparonsblnz: Congratulations on the new job. The MIE Group demands you now immediately 100% back our plans for the New Zealand meat industry or resign. #letthefunbegin

Reasons for AgResearch revamp chilling AFTER READING Pam Tipa’s piece (Rural News, Sept 17) on Steven Joyce raving about the move by AgResearch to two hubs at Lincoln and Palmerston North, I felt chilled. It was all about money, business and attracting super scientists. But research of itself does not improve New Zealand’s productivity, particularly in the primary sector. The lack of

connectivity between research and farming has been growing rapidly in recent years. The results of research are only useful if they get used by farmers. Much has been written about the time lag between research and uptake, with many quoting 15 years. In recent years the opportunities to pass on knowledge, either to

groups or to individual farmers, have shrunk to very little. Field days are all very well, but they only benefit (if indeed they do) the people who attend them, and there are many who don’t bother because they say they get little from attending. How does the minister envisage the relevant research for farmers living north of Palmerston North, or north or

south of Lincoln, will be promulgated? Are these ‘hub’ scientists going to be leaping into cars and driving around large chunks of the country? Will their research plots provide the necessary climate and weatherrelated results to prove effective over such areas? Scientists are already focused on short-term research, frequently

based on further research of topics already covered, in order to get contract funding to keep their jobs. There was nothing mentioned by the minister in the article about those who might find the research useful, or profitable for their businesses. The word ‘farmer’ never appeared. Sue Edmonds Eureka

eiongardensff: Dear@ jamesparonsblnz compliments from the meat companies on your recent promotion. BTW if you show even an ounce of support of MIE’s daft plans there’ll be more blood on the floor than at one of our processing plants. #dontpushit johnpennosynlait: Why is foreign investment supposedly a bad thing for New Zealand agriculture? Going by our latest result I can tell you this NZer continues to do very nicely out of the foreign investment in Synlait! #iammilkingit jwilsonfonterra: Now that we’ve ridden out the fake botulism cock-up what’s next? Perhaps declare a false outbreak of salmonella, listeria, E.coli or even campylobacter in our products and try to dampen down milk prices? #howtoshootonesownfoot damienoconnormp: Gee it’s really fantastic to have such a humble, modest, unpretentious and retiring type as @davidjesuscunliffe as the new Labour leader. #themessiahhascome davidjesuscunliffee@damienoconnormp: Contact me about anything to do with the primary sector. For it was I who mooted the formation of Fonterra, invented the electric fence, developed the cure for footrot and introduced topdressing into New Zealand. #andontheseventhdayirested thatguynathan@johnkeypm: Sure things have gone a little pear-shaped under my watch with the holdup of meat exports to China, the black grass incursion, the not-botulism scare and the recent voluntary suspension of apple exports to name a few. But is it really necessary to have Steven Joyce holding my hand? #icantfeelmyfingers

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Rural News // october 8, 2013

34 opinion

BCSR a valid tool ro b in boom

SCIENTISTS JACQUELINE Rowarth (Rural News July 16) and Doug Edmeades (Rural News August 20) have criticised Albrecht’s base cation saturation ratio (BCSR) theory being used to make fertiliser recommendations. They cite overseas research showing sufficiency levels (ppm) are better predictors of crop responses than BCSR. Dr William Albrecht, emeritus professor of soils, Missouri State University, wrote at least 400 scientific papers, many published in leading scientific journals during his lifetime and compiled in the Albrecht Papers Volumes I-VIII. Although Albrecht is noted for his balancing of calcium, magnesium, potassium and sodium ratios in the soil, he also studied nitrogen, phosphorous, sulphur and trace elements, looking at the bigger picture of how soil fertility impacted animal health and ultimately human health. He was an outspoken critic of the simplistic NPK approach to soil fertility. With his animal health focus, I believe many of his findings

are relevant to our own pastoral agriculture. Edmeades’ claims that his own research shows calcium:magnesium ratios do not affect legume production flies in the face of Andrew Carran’s research published in the NZ Grasslands Association Proceedings Vol 54 p.78 under the heading ‘Effects of Soil pH and Ca:Mg Ratio on Plant Growth’: “Under the condition of wide Ca:Mg, reliming appears to be harmful and depressions of growth of white clover after liming may occur. Substituting magnesium carbonate for calcium carbonate (lime) at equivalent rates; reduces and ultimately eliminates the depression of clover growth”. Edmeades also claims plants do not need sodium. Not so, according to research by Dr Max Turner of Massey University, who found pasture responses to salt over 30 years ago – and also that the potassium:sodium ratio in pastures – were important for reducing ‘frothy’ bloat. More recent research by Cambridge University scientists Dr Clive Phillips and Paul Chiy

found the application of 100kg of salt to pastures gave milk production increases of up to 10%. The reasons for this they put largely down to increased consumption (palatability) and an increase of the water soluble carbohydrate (sugar) content in the grass. They suggest an optimum sodium level in pastures of 0.4% DM. Sugar beet crops have a particularly high requirement for sodium where applications of 150200kg/ha of salt are common. Edmeades’ other claim that there is no calcium deficiency in New Zealand soils I would also challenge. The marine clay soils of the Hauraki Plains and the Ruawai flats on the Kaipara Harbour, for example, have too close Ca:Mg ratios and will respond to lime even when soil pH is at the normal optimum for pasture. On such soils gypsum (calcium sulphate) can be a better source of calcium because raising soil pH with lime too high can interfere with the availability of some trace minerals. On these soils the calcium has a flocculation effect on the tightly bound clay particles, and such pastures often have calcium levels

too low for optimum dairy cow health and production, and pasture palatability problems can occur until soil and plant calcium levels are raised. There are extreme soils where Albrecht’s optimum ratios are irrelevant. When consulting in England I came across calcareous (chalk) soils which had in excess of 90% calcium in their base saturation. Conversely, in parts of Australia and South Africa there are soils with extremely high magnesium ratios and to try and bring these into line with Albrecht optimums would be near impossible let alone prohibitively expensive. In my view, BCSR is a valid tool in the tool-box for a soil consultant to work with – but certainly not the only one. • Robin Boom is an independent soil consultant sending soil samples to Brookside Laboratories, Ohio, the original Albrecht lab, specialising in the complexities between soil, plant and animal health. email agronomics@xtra.co.nz @rural_news

what about our fences? I READ with interest your article about stock endangering lives on roads (Rural News, September 17). We own a farm and live in a rural area in North Canterbury. Four years ago we renewed our road fence, which was quite long because the old one was not stockproof. My husband dug each post hole by hand for the concrete posts, I hate to think how many as it’s a long, straight piece of road. I’m proud of his work and so should he be – a decent fence we thought. However, since then four cars have been through our fence and damaged it every time. The first two times no one owned up. Two weeks ago an employer phoned to say one of his workers hit our fence, broke off a post and was going to come and fix it in the next few days. We haven’t seen anything fixed yet. Then last Saturday night, yet another vehicle struck our fence, this time breaking off two posts, wrecking a gate and then they backed around and hit another post. Did they come into the house to leave a number or anything? No. As farm owners we are supposed to be responsible for wandering stock, fair enough. But what about the motorists who are damaging our fences and don’t own up or pay up for wrecking them and allowing our stock to get out on the road? Lea Earl North Canterbury

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Rural News // october 8, 2013

opinion 35

Stopping the boats and starting the boats step h en cooke

‘STOP THE boats’ has been the mantra of new Australian Prime Minister Tony Abbott since he was first elected Opposition leader in 2009. He adopted the slogan, like most of his policies, from former Prime Minister John Howard, who tapped into the xenophobic feelings of Australia to win the 2002 election. Howard told the public he would “stop the boats”. He coined the slogan after a boatload of refugees sailed into Australian waters at a time he was behind in the polls. Howard tested the waters, found the members of certain marginal electorates wanted nothing to do with asylum seekers, and used the Stop the Boats rhetoric as a rallying cause. It helped him win the closest of elections. Abbott, who once described himself as the “ideological love-child of John Howard and Bronwyn Bishop” (and this is as scary as it sounds – on all levels) adopted the slogan for the most recent election. However, it has caused his first post-election headache. He now wants

to start the boats. More specifically, he wants to raise the number of cattle exported to Indonesia back to the levels of 2011 when the trade was stopped. Unfortunately his Stop the Boats and

Unfortunately for the Australian beef industry, and particularly cattle graziers on the vast properties of northern Australia, the issue has hampered talks on re-igniting the live export trade.

Howard tested the waters, found the members of certain marginal electorates wanted nothing to do with asylum seekers, and used the Stop the Boats rhetoric as a rallying cause. Start the Boats policies are at odds with each other. Part of his plan to Stop the Boats was to tow them back to Indonesia. But neither Abbott nor anybody from his party thought of telling the Indonesian government about this plan. There was an election to be won. Indonesia has made very plain its displeasure, saying towing boats back into its waters would infringe its sovereignty. It dominated talks with Abbott on his first overseas visit as Prime Minister.

There hasn’t been a diplomatic bungle like this since, well, the former Labor Government banned all live exports to Indonesia in 2011. In one of the worst political decisions in the history of Australian agriculture, Agriculture Minister Joe Ludwig and Prime Minister Julia Gillard stopped all exports as a result of inappropriate treatment of cattle in one Indonesia abattoir. Footage from one abattoir was taken by an animal rights activist and shown on national television. The govern-

ment’s kneejerk reaction to ban all imports The stopped the live Coalition exports to Indonegovernment was sia (worth $320 milseen by producers as a lion) literally overnight. clean slate. Indonesia needs When it realised what it Australian cattle. Its policy had done, Ludwig travelled to Indoneof self-sufficiency can’t be sia with a list of demands (written in realised. Its agriculture minEnglish, mind you). istry began issuing new When Ludwig told the import permits in July Indonesian government he — which might evenwould resume exports if it Tony Abbott tually number 25,000 agreed to his demands, it head of cattle – as a beef shortage was showed him the door. Cattle in northern Australian ports pushing prices 40% higher before the ready to be loaded had nowhere to go. post-Ramadan feasting season. Clearly, the resumption of imports Producers waiting for their annual pay cheque never got them. Northern is critical for both countries. The Prime Minister must realise the cattle were sent to southern cattle sales, depressing prices for Australian cattle error of his ways and place long-term producers nationwide – all caused by governance – and the needs of the Australian beef industry – over short-term the naivety of government. The industry hasn’t recovered politicking. He can’t Stop the Boats and Start the two years later. From a record level of 770,000 cattle exported in 2009 to Boats at the same time. 278,000 sent last year. (Those sent last • Stephen Cooke is an Australian rural year were at much lighter weights by journalist who edits Rural News Group’s Dairy News Australia. Indonesian decree.)

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Rural News // october 8, 2013

36 management

Pasture problems and In this third Rural News preview of papers for the New Zealand Grassland Association conference, Andrew Swallow talks to Ian Scott, a Waikato farmer and veterinarian whose views provoke debate, and Agresearch’s Mike Dodd on research revealing a little of what’s going on underneath our pastures. ASK VETERINARIAN and Waikato farmer Ian Scott what he thinks of new pasture cultivars and, off the record, you’re likely to get a four-letter-word answer. In print, his response is only slightly milder. “I am over new pastures,” he writes in a scene-setting paper likely to provoke debate at the New Zealand Grassland Association conference at Tauranga next month. Plant breeders especially will react. “In the first big drought AR1’s did not perform well. I was told AR37 would be just the ticket, but with well-fed cows, palatability is poor and my deer don’t like these at all…. “In last year’s drought the new

grasses didn’t persist either. My old untouched pastures recovered in the shortest time and re-tillered to a dense, weed free sward but the others…” He leaves the sentence • Location: Tirau, southeast Waikato hanging, but adds: “And • Home block: 58ha milking platform, 42ha don’t talk of over-grazdeer farm, 8ha forestry ing. With 5.2 cows/ha • 50ha run-off: 8ha grazing bulls and calves; and a severe drought, 40ha cropped with maize/annual ryegrass withstanding graz• Oliver Farms: 70 ha (700 deer and calves yr 1) ing pressure is a nec• Off farm: replacements and sale heifers essary attribute, not a • Soil: Tirau ash (volcanic) luxury.” • Production/year: 138,000kgMS; >400 A trials system which venison carcases; 1.5t velvet; 8-10 trophy fails to replicate such stags. pressures is the problem, he says, blasting seed com-

farm details

panies for appearing to spend more on their marketing than testing. His views aren’t just from his own experience: he works with 35 other dairy farmers in Waikato as a consulting veterinarian. That wider sample feeds into

another “challenge” he addresses in his paper: staffing. “I, like many others, am finding that people arriving from overseas, particularly Asian countries, have the attitude, the work ethic and sheer mental agility and skills we need on farm,” he writes.

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Rural News // october 8, 2013

management 37

other challenges aired Conference details The New Zealand Grassland Association’s conference in Tauranga, November 5-7, is the Association’s 75th. Early bird registration, offering a $100 discount, closes Thursday this week (October 10). See www.grassland.org.nz for registration details and event programme.

“This difference appears to reflect that at school our children have been told agriculture has a limited future and careers advisors steer those with the required talent in another direction.” Highly able staff are particularly important in higher input systems where surpluses can turn to shortage in the blink of an eye, he adds. On the buzz topics of sustainability and environmental protection, Scott reflects on the “hard calls” that must be made “as a nation and as individual farmers.” “Should I be penalised for leaching a little too much N/ha when I produce over twice the national average [of milk] per hectare?” he writes, questioning Overseer’s use as a regulatory tool. Talking to Rural News, he said the nutrient management programme’s ini-

tial estimate of losses from his system, including high yielding crops of maize mopping up nitrogen, was 50-60kgN/ ha/year. The maize is grown on a support block with annual ryegrass following “the day the chopper comes out of the paddock”. Cows are wintered on the ryegrass, with maize going back in afterwards so the deep roots mop up any nitrogen lost from the grass root zone during winter. It’s just one example of a string of smart practices he is putting in place to increase sustainability, including integrating deer with dairy grazing to reduce chemical parasite control in deer and boost pasture production for dairy; using high starch maize silage to balance the protein content of grass and reduce urine nitrogen losses; and

installing a covered cow yard with woodchip flooring. The woodchips will be spread on the maize ground helping raise the soil organic matter and recycle the nutrients. It’s also a better option than concrete from an animal welfare point of view. “As a vet I see a large number of cows seriously injured from slips on concrete feed pads.” Storing effluent off concrete in anaerobic ponds isn’t an ideal environmental solution either, he adds. While it makes managing nitrate leaching from land more manageable, greenhouse gases are lost from the pond, which are trickier to measure than leaching losses, let alone capture. Scott’s paper also touches on the challenges of the red meat sector, his involvement with the Lake Okoroire restoration project, and relays more detail on his farm. However, it seems fair to say the real value in it will be the debate it provokes among some of the nation’s top farmers and applied scientists in Tauranga next month, rather than the detail in text itself.

Shedding light on pasture roots HOW MUCH do we know about the way our pastures’ roots grow? Not as much as we probably should, a paper to be presented by Mike Dodd of AgResearch at the Grassland Association Conference reveals. He and fellow Grasslands Research Centre colleague Alec Mackay report on two experiments aimed at shedding a little more light on how ryegrass and white clover pasture responds below ground at differing fertility and compaction levels. “There remains insufficient data on many aspects of root growth in New Zealand pastures, particularly the responses of the relevant pasture species to environment and management factors,” they say. In the first of the two experiments, root mass under a former dairy pasture near Colyton, Manawatu, was found to be about 20% greater in September and November on plots where no phos-

phate or nitrogen fertiliser was applied, compared to where 140kg/ ha/year of P and 400kg/ha/year of N went on. However, from January to July, there was no significant difference in root mass between the treatments, and above ground the with fertiliser plot pumped out 30% more drymatter at 23.2t for the year September 2008 to September 2009, compared to 17.8t without. Both treatments were irrigated. The second experiment reported was conducted on the same Marton silt loam site, from February 2011 to January 2012, looking at the impact of soil compaction on root growth, and whether there’s an interaction with fertility. Dodd told Rural News the findings are consistent with other studies in that in high fertility situations proportionately less of the carbohydrate accumulated through photosynthesis is allocated to root growth.

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Rural News // october 8, 2013

38 management

Mating yearlings to rebuild herds John Petersen has more heifers mated than normal.

THE MOST cost effective way to rebuild herds is from within, and many farmers are looking to breed yearling heifers to do that in the wake of last season’s drought, says

Focus Genetics. “We are seeing strong demand for calving ease yearling bulls which can go over yearling heifers,” says FG’s Daniel Absolom. The firm points to Beef

+ Lamb New Zealand’s economic service annual stock survey which found 20,000 fewer breeding cows in the Lower North Island post drought with Taranaki- Manawatu and

Beauty. Brains. Brawn.

East Coast regions as evidence of the need to rebuild. This week, October 9-10, Focus is running one of New Zealand’s largest online bull sales, offering all breeds it’s involved in, including Angus, Red Angus, Stabilizer and Simmental. FG chief executive, Gavin Foulsham, says the online format allows a broad range of bulls from across the country to be viewed in one place. “This technology gives farmers more choice from a larger range of bulls…. farmers from Wanganui can now buy bulls in Te Anau without physically being there, so there are no geographical challenges.” When there’s competition for a bull, the online sale offers buyers greater choice, and competition, he adds. “They can set their price and are in control of their auction.” King Country farmer John Petersen was among those forced to cull due to drought but has already

mated more heifers, anticipating the need to rebuild. “Feed got very tight… so we decided to drop our older cows and off loaded our 12 year olds earlier than we usually would have.” He usually calves 90 heifers but this season he has over 100 in calf. “The biggest challenge is getting two year old heifers back in calf. The Stabilizer works really well. They get in calf easily, they’re good yielding and they have good growth weights. We generally calve about 90% vetted in calf, which is good on our steeper country.” He targets low birth weight yearling bulls with superior growth weight for heifers and cows. “These bulls will go over our heifers, but they also have good grunt to move into the older cows, so we can get the best of both worlds out of one bull.” By buying younger bulls he says he also gets earlier genetic gain, and they settle into the sire herd well without fighting.

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CHECK REPLACEMENT heifer weights and nutrition ahead of mating, says Ballance Agri-Nutrients, citing a paper in the Proceedings of the New Zealand Society of Animal Production 2013 which reports 86-92% of dairy heifers not achieving optimal weights. While weighing individuals takes time, it is a lot more accurate than sizing by eye and will allow feed to be tweaked to ensure targets are achieved, says Ballance product manager animal nutrition, Jackie Aveling. “Group average weights are not sufficiently accurate. You will still end up with underweight and potentially underperforming heifers.” DairyNZ data recommends at typical mating age of 15 months heifers should be 60% of likely mature weight. Aveling warns under nutrition and deficiencies of specific nutrients can have a negative effect on the synthesis of hormones essential for reproduction. “Nutrients specific to fertility include phosphorus, protein, selenium, copper, iodine, manganese and zinc. While some of these are adequate in New Zealand pastures others are deficient. Herbage testing can pick up the deficiencies and the results will form the basis of advice on what supplements are needed to balance those deficiencies in the heifer’s diet.” Supplements such as Crystalyx dehydrated molasses blocks can balance pasture deficiencies by providing essential minerals, vitamins, protein and sugar to improve forage digestibility. “Crystalyx trials both internationally and within New Zealand are returning very positive results on both dairy and beef animals,” she says.

Rural News // october 8, 2013

management 39

It all starts here - mating In the past few weeks DairyNZ has run 27 mating workshops around the country, the South Island’s West Coast hosting more than most. Andrew Swallow reports THE TAIL paint should be on and heats being counted on the nation’s dairy farms, even if mating is still weeks away for some, says DairyNZ. That’s one of the headline messages to come out of a series of 27 mating workshops the levy body has run in recent weeks, including six in the South Island West Coast region. “You want to tail paint now and use the period from now to start of

mating to hone your heat detection skills so everything is in place and you’re doing everything 100% when the flag drops for start of mating,” stressed local consulting officer Ross Bishop to a workshop near Lake Brunner late last month. “If you don’t and you have issues when you start AB, you’ll find you’re well behind the [conception] run rate and you’re not going to catch up.”

SAGs and other signs COWS ON heat will often seek out herd mates in a similar mood, and congregate around water troughs because oestrus raises their temperature. It also suppresses appetite, so when their peers are lying down ruminating, the sexually active group, or ‘SAGs’, may be standing, riding each other, and generally being restless. “Identifying those SAGs is an important part of heat detection,” stressed Bishop. When possibly on-heat cows are in the shed, a simple temperature check by placing a hand on the suspect cow, and on the one next to her to see if there’s a temperature differential can also help confirm heat. If in doubt, put the cow out and watch for while, he added. “If she’s going to come into heat, she’ll become part of that [SAG] party pretty quickly.”

The implications of that on next season’s milk production are massive. Even at a $5/kgMS payout every heat missed costs $200 at average production levels, and at $8/ kgMS the figure would be far more, notes Bishop. The first step to getting things right is admitting there might be a problem: 92% of farmers think their herd’s mating results are in the top 50%. Similarly, non-cyclers is rated as the numberone problem by farmers, and heat detection ranked eighth, but research shows heat detection is, in fact, the main problem on 25% of farms.

West Coast dairy farmers get some tail-painting tips.

“Until we realise there are areas in what we do that we need to change, we’re not going to gain any traction,” stressed Bishop. Using two forms of heat detection aid – say, tail paint plus a more sophisticated indicator such as a Kamar, Scratchie, or Estrotect patch – is good practice, as is observation in the paddock, ideally 10-20 minutes twice a day about two hours after milking, by a suitably trained and alert person. Pre-mating is the ideal time to spend with staff responsible for heat detection to ensure they

aren’t missing signs of oestrus, or equally importantly, mis-reading normal behaviours as heats, says Bishop. “Probably the biggest resource you have to commit initially is time: time to identify any gaps in skills and address

those gaps.” Those gaps may include language, literacy, and numeracy, so information gathered about which cows are on heat can be accurately relayed, as well as techniques such as tail painting, positioning of detectors and rec-

ognising signs of bulling. Staff also need to be given “the big picture” about why heat detection is important. Having one or two key staff responsible for the job is a good idea, but the whole team needs to be on board.

Tag •

Tag cattle and deer with a NAIT approved RFID tag before they are six months old, or before their first off farm movement

•

Cattle born before 1 July 2012 and deer born before 1 March 2013 have a three year grace period in which to be tagged, unless they are being moved off farm

•

White tags are for cattle and orange tags are for deer

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

QUAD BIKES CAN

KILL Don’t become a statistic.

TAKE ACTION TO PREVENT ACCIDENTS ON YOUR FARM. Go to: www.business.govt.nz/healthandsafetygroup/quad-bikes

to page 40

Rural News // october 8, 2013

40 management

Rapid resistant weed test offered andrew swallow andrews@ruralnews.co.nz

Grown-out ryegrass samples.

AUSTRALIAN GROWERS are being offered a rapid test for weeds they think might be herbicide

resistant. The QuickTest service is offered by Plant Science Consulting, a commercial plant and seed testing service run by GRDC-funded weed researcher Peter

Boutsalis, Adelaide. Growers dig up the suspect weeds, shake or even wash off excess soil, ensure the leaves are dry, and post them express mail in ziplock bags for testing.

pect weeds, is that results are obtained months before they would otherwise be. Also, growers know the tests are on the actual weeds that were a problem in the paddock

“Every paddock is different and testing each paddock for herbicide resistance gives growers a baseline to know whether a particularly herbicide will work – before the investment is made.”

To make sure your brassica crop gets established what would you do?

When PSC gets the package, the weeds are trimmed and potted until new growth occurs. “Within a week we get new leaves emerging: it is a young plant again,” says Boutsalis. “Once that happens we spray them in an accurate spray cabinet according to the herbicides the grower wishes to test.” All grasses can be tested effectively, as can young broadleaf weeds including wild radish and mustards. “For grass weeds, the QuickTest takes four weeks from the time the plants are received until the results are conveyed to the farmer.” Broadleaved weeds take a little longer. The advantage of QuickTest, as opposed to testing plants grown from seeds collected from sus-

and they don’t have to take the risk of allowing potential problem weeds to set seed. Boutsalis says there are still times when it’s more convenient to seed test, especially if a trifluralin test is required, given the pre-emergent use of the active. Regardless of the test used, knowing the resistance status of weeds on your paddocks and farm is advised rather than relying on resistance test results from nearby. “Every paddock is different and testing each paddock for herbicide resistance gives growers a baseline to know whether a particularly herbicide will work – before the investment is made,” Boutsalis says.

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“Maybe a reward or incentive for the team if they achieve a good result at the end of mating is worth considering.” Bishop’s focus on heat detection was questioned by one workshop attendee, given nearly all farms still use bulls to mop up cows that don’t get in calf to AI, but Bishop stressed more cows in-calf to AI means a greater choice of herd replacements, more days in milk, and a lesser need for bulls. “There are two positions we can take: see the problem and come up with excuses, or work more proactively on our solutions.” Local farmer and Federated Farmers national board member Katie Milne backed up Bishop, saying the better the heat detection, the more chance of getting the following season off to a good start. “I know of someone whose milk production is 30-40% behind this year because their heat detection last year went wrong.” And that’s in a year when good weather has put most farms well ahead.

Rural News // october 8, 2013

management 41

Barn boon for beef and sheep GARE T H G I LLAT T

BUILDING A $125,700 covered cow shelter is not something you expect from sheep and beef farmers but that is exactly what one Northland couple have done, and it’s not just to boost the cattle side of the business. Grant and Christine West normally farm close to 600 cattle, though last season’s drought saw them overwinter 496 this year. They also had 2180 sheep on the 446ha moderate hill country property they farm 43km southwest of Whangarei. With 4.4 sheep for every cattle stock unit they run, sheep and cattle are equally important parts of the operation, but they’ve identified increasing weaned lamb liveweight as a central goal for the next three seasons. If we could wean our lambs heavier we could get them to the works faster it changes the whole farm,”Grant commented to a recent Beef + Lamb New Zealand field day on the property. To achieve that they’re aiming to get more food into ewes, which in turn means better management of Kikuyubased pastures is needed, keeping growth under control to retain quality,

while preventing pugging to preserve future production. “We’ve got to farm our summers!” While pugging prevention has always been a priority, there was no way it could entirely be prevented and every winter about 130ha or 30% of the property would suffer some damage. Confining the area with high yield/ha crops for grazing in winter/spring also wasn’t an option as it would destroy the soil on the clay hills, and the flats flood almost every year. West decided the answer was to get stock off the paddocks completely when conditions were wet by building a covered shelter and setting up an on-off grazing programme for two-year-old bulls and steers. The 30m by 20m structure was finished by the end of June this year, just in time for 120 R2s to go in. West had initially hoped to have a 200-cow barn, but with the many unknowns of a new system he thought going half way, for a start, would be a good idea. Having a roofed structure, instead of an open feed pad, cost extra but saved more in reducing the scale and complexity of effluent system needed, he says.

Reducing pasture damage should boost sheep production, reasons Northland farmer Grant West.

Effluent from the barn is simply scraped off the floor once a week into a covered silo at the end of the structure. Up to three months’ “production”can be stored before digging out into spreaders for use as base fertiliser on maize paddocks. He reckons the effluent’s nutrient value is around $2000 and as it is dry and indoors there is no need for a resource consent or expensive effluent pond system. Stock will always overnight in the shed during winter, and go out to graze

if conditions permit during the day, staying in if not. They get 12kgDM/day as a mix of pasture, grass silage and maize silage. Last season’s drought saw animals go into the barn at 370kg on average, instead of the intended 420kg, so this winter the barn has “partially rebuilt drought cattle.” During July weight-gain was only 0.6kg/day which West attributes to acclimatization to a new feed regime. Through August they did 1.2kg/day. A Farmax model completed by

AgFirst Northland regional consultant Bob Thomson showed West needs two 120-cow barns to eliminate pugging but the one barn alone should boost lamb weights and allow West to increase stocking rate to earn an $25,321/year, giving the shed just over a five-year payback. West says he is very happy with what he has got out of the barn so far – more pasture and less stress – and hopes to expand it in due course. Christine adds that rainy nights aren’t nearly the worry they once were.

Pugging steals 30% Register

HEAVY treading damage can cut pasture growth 30% and have an impact on growth for up to nine months or more, a Beef + Lamb New Zealand study on the West’s property has found. The ongoing and extensive trial saw 60 R2 steers at 420kg put on medium hilly land behind break fences on a 60-day grazing rotation. Pasture growth was 30% lower on pugged areas than it was on non-pugged and regrowth slower for more than 90 days. An estimated 27t more drymatter would have been produced if pasture hadn’t been damaged, research leader Chris Boom says, and that’s without even considering reduced utilisation in wet conditions.

•

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

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42 MANAGEMENT

Top farmers use Last month New Zealand’s leading supplier of pastoral decision support, Farmax, celebrated 10 years since its commercialisation. Rural News relays its impact.

Farmax general manager Gavin McEwen.

YOU CAN’T prove cause and effect, but it seems more than a coincidence farmers using New Zealand’s leading farm

decision support tool make more money than average. In sheep and beef, over the past decade, those

using Farmax made gross margins totalling $425 million more than Beef + Lamb New Zealand’s Economic Service indus-

try average figures, the Waikato-based firm calculates. “And that’s only on sheep and beef farms, not accounting for dairy farm users,” says general manager Gavin McEwen. He’s quick to say Farmax can’t claim all the credit but what is known is that using Farmax, with good advice from consultants and the right motivation, can make a huge difference to returns. One farmer who’s been using Farmax since its launch is Rob Buddo, Hawkes Bay. In that time his sheep and beef operation has grown about 500ha and over 10,000 stock units.

“Through incremental growth, Farmax has helped us double our farming area and financial return,” says Buddo. “Quite simply, it allowed us to challenge the status quo and minimise our risks.” He says Farmax is a key management tool used to achieve his goal of a 5% lift in farm performance every year. After a decade of use, he’s probably one of the most experienced with it. “Farms are massively complex systems and businesses, and no two seasons are ever the same. With its modelling capability Farmax is simply unique in being one of the most powerful pas-

What it does Gavin McEwen told Rural News Farmax formalises the stock production off pasture calculations many farmers and consultants do in their heads. “It formalises that and has the added ability to look at unlimited scenarios and compare them side by side, as well as see if they are biologically feasible in terms of growing that much grass and financially feasible.” Once pursuing a particular scenario the software can be used as a monitoring tool, tracking performance against that production budget, and, to a certain extent, forecasting output. “Farming is inherently variable but with a tool like Farmax you can see a little further into the future more easily. For example, if pasture cover is dropping, it will show what happens next spring. It might be body condition dropping, or running out of feed. It just enables more informed decision making.” Less than 1000 farmers use the software themselves, but with about 80 consultants using it to develop and monitor plans with their clients, many more are using it indirectly. Consultants pay up to $2000/year for the package but that is incrementally reduced the more clients they sign to Farmax’s monitoring service. That costs up to $1700/year based on stock units, which can be billed to the farm or to the consultant. It includes benchmarking performance and in due course could form part of a wider industry benchmarking service, says McEwen. Over the past couple of years there’s been heavy reinvestment in the package and while it remains computer-based, so runs without internet connection, some extra functions are being developed “in the cloud”, ie online, which could potentially be accessible from smartphones down the track. Individual farmer subscription is $500 to $1700, depending on size of farm, including the monitoring service and tutorials on how to use the package. Prospective users of the package may also attend an introductory level tutorial, says McEwen. See www. farmax.co.nz for dates and venues.

Rural News // october 8, 2013

MANAGEMENT 43

decision support Rob Buddo says Farmax modelling and monitoring has helped grow his business.

ture management and feed budgeting tools you can use - we wouldn’t be without it.” Farmax’s analysis shows sheep and beef farmers using its software performed 78% better than industry average over the past decade. North Island hill country farmers, strong adopters of it, grew gross margin 157% on average over the same period. McEwen says Farmax’s goal is to help sheep, beef and dairy farmers capitalise on New Zealand’s competitive advantage in growing pasture. Better use of pasture is something Beef + Lamb New Zealand chief executive

Scott Champion highlights as a priority for the sheep and beef sector. “Tools like Farmax can support better decisions about managing the supply of pasture and the livestock demand, which in turn can help farmers become more profitable – it’s that simple,” says Champion. Encouraging wider use of such tools is part of the Red Meat Profit Partnership BLNZ’s involved in with six meat companies, two banks and a business services firm, he adds. The technology behind Farmax was designed and developed by Crown Research Institute AgResearch, using models

of the biological systems in pastoral farming. The CRI still owns 50% of the firm and has a “heavy involvement” in keeping models up to date with the best proven knowledge, as does DairyNZ, says

congratulated on making the tool one of the preeminent decision support tools used by farmers. “Technology on-farm is being successfully used by the early adopters but it’s going to be mainstream very quickly as farmers continue to adapt to and manage the environmental

McEwen. David McCall, now Dairy NZ’s general manager development and extension, was a lead scientist on Farmax’s development during the 1990s. He says Farmax is to be

constraints and challenges we all face. Farmax is a vital tool that is being used to do this, and DairyNZ’s extension team is committed to its use.” McEwen says even though farmers are doing well at getting more from grass, their cheapest feed, Farmax modelling

estimates there’s still millions of dollars of profit left in the paddock every year. “We can help farmers claw back some of those profits and put it back in their pockets, simply by helping them make better pasture management and farm system decisions.”

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Rural News // october 8, 2013

44 animal health

Privacy waiver call on welfare A N D REW SWA LLOW andrews@ruralnews.co.nz

FEDERATED FARMERS wants the Primary Production Select Committee to consider tweaking the Animal Welfare Amendment Bill so privacy laws don’t prevent getting help to suffering animals and farmers. “What happens at the moment if MPI is called into an animal welfare case is they cite privacy laws as the reason why they can’t contact Federated Farmers or the Rural Support Trust with the farmer’s details,” Feds national board member and spokeswoman on animal welfare Jeanette

Maxwell told Rural News. That can mean the animal welfare issue isn’t addressed as fast as it might be and the farmer doesn’t get the help he or she may need. “Often when there’s an animal welfare issue, there’s a farmer welfare issue as well,” Maxwell points out. The call is part of Feds’ submission on the bill, which passed its first reading in Parliament in August and is now in front of the Select Committee. Introducing the Bill in May, Minister Nathan Guy said the bill would allow enforceable regulations on treatment of farm and domestic animals to be created.

It would also give wider powers to deal with people who breach welfare laws. “The new regulations will be developed to support our 15 codes of welfare and future codes, which cover a wide variety of animals,” he said at the time. Codes currently developed by NAWAC will be given teeth by the Bill, which includes protections for animals being exported and those used in research. “The vast majority of New Zealanders who take great care of their animals will hardly notice the changes made in this Bill. However there will be greater sanctions for

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the few who mistreat animals,” warned Guy. Feds agrees with the need to revise the 1999 Animal Welfare Act in light of the increased number of companion animals and changes to farming practices. Its submission supports the Bill’s goal of making rules clearer and, where required, enforceable. It also supports early targeting of offenders with compliance orders before greater harm is done. The proposal to regulate certain animal welfare standards while retaining codes of welfare

is also welcomed, as is the move to allow the minister/Ministry to set regulations in consultation with experts – without recourse to Parliament. “Animal Welfare is not something to be debated in Parliament, where grandstanding by politicians could occur,” Feds says. However, the Minister must be required to consult with NAWAC and primary industry groups before setting regulations. Submissions to the Select Committee closed last week, and it is due to report on the Bill by

Jeanette Maxwell

Employment law issue too WHEN IT comes to animal welfare issues, employment law can also hinder swift action, says Federated Farmers. In a recent survey of members, employers said they feel the legal system prevents them from ensuring livestock are not abused or neglected. “It is clear from the survey that there is a huge lack of trust in the employment law system,” says Feds’ employment spokeswoman, Katie Milne. “Farmers feel they have been burnt when trying to protect their animals and would now rather ‘pay-out’ staff who’ve neglected their stock; in fear of the legal system letting them down.” Feds wants simpler rules for dismissing staff over animal welfare issues. “When you have a staff member breaking tails, beating calves or dogs and so on, employment law appears to hinder an employer’s rights to mitigate this from happening,” says Milne. “Almost 20% of those surveyed have had to dismiss an employee regarding animal welfare issues and of those, 64% said they paid out the employee because it was easier and less expensive than taking them to court.” The problem with that, besides it costing the employer, is there are no repercussions for the offender’s actions.

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the end of February. The Bill supports the New Zealand Animal Welfare Strategy released by the minister earlier this year.

Katie Milne

“It does not bode well for livestock this person may work with in the future.” Milne says the issue is about fairness, and half the respondents feel employment law isn’t fair to employers, while just 12% think it is. “There is a big divide here and it needs to be acknowledged. If farmers don’t trust or understand the employment law system then how are they going to protect themselves from employee’s who are not only killing stock in inhumane ways but behaving aggressively to staff and their employer?”

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Rural News // october 8, 2013

animal health 45

Less stress introducing replacements in milk alan h ar m an

TO MINIMISE animal stress in a goat herd introduce replacement does when the herd has kids at foot, European research suggests. Researcher Susanne Waiblinger from the University of Veterinary Medicine’s Institute of Animal Husbandry and Animal Welfare in Vienna, Austria, came to this conclusion after investigating the social behavior and levels of stress hormones in 32 young goats after they were placed in a new herd. Half the animals were introduced during the dry phase when the herd and replacements were pregnant and not in milk. The other half was introduced shortly after parturition/kidding when mothers were nursing kids. Waiblinger found the newly introduced goats experienced markedly less social stress in flocks with lactating mothers and kids. In dry herds, the newcomers were frequently confronted with aggressive social behavior. Goat herds have a strictly hierarchical social structure and changes in herd composition can lead to serious rivalries and increased aggressive

behavior. Reducing stress is important for the sake of the animals, and because stress often results in lower milk production. Waiblinger says the difference in reaction she found may have a simple physiological explanation. “We think the oxytocin system is activated in the presence of kids. Oxytocin is released during childbirth, suckling and other positive tactile contact in mammals and acts not only as a bonding hormone but also calming, pro-social and stress-reducing. Thus, it is less likely that there will be aggression between the goats.” Once the young goats have been

introduced to the herd, they appear to prefer the company of goats of the same age rather than adult and unknown members of the herd. “The social and exploratory behavior in a herd is a reliable indicator of the stress experienced by the animals,” Waiblinger says. “When less stressed, goats are more likely to try to become acquainted with unfamiliar adults. Stressed goats prefer to surround themselves with well known peers. “It will be interesting to see whether it is the presence of kids or the mother lactating, that plays the crucial role in stress reduction.”

Mobile respirator lifesaver RESEARCHERS AT the Vienna vet school have designed a portable ventilator pump for horses, and possibly other large farm animals, for emergency use in the field or transport. A team led by Yves Moens, head of intensive care medicine, worked on the project because of concern over the number of horses that die avoidable deaths due to lack of a suitable mobile ventilation device. The device, described in the team’s report in the Journal of Equine Veterinary Education, is similar to the bellows used to inflate air mattresses and consequently inexpensive and easy to carry and use. A breathing tube is inserted in the animals’ trachea and

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connected to the foot operated bellows. Exhalation is via a second, manually controlled valve. To keep the device manageable by one person, and easily portable, it only provides 2.5 litres of air per pump, compared to the 5-6 litres of air an adult horse needs in its lungs to obtain enough oxygen. However, tests on five anaesthetised horses during castration surgery showed gradual ventilation with the 2.5-litre pump was sufficient to keep the animals alive. “It improves the safety of large animals in the field, both during routine anaesthesia and in emergencies,” says Moens. – Alan Harman

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Rural News // october 8, 2013

animal health 47

Neonics ‘unsustainable’ – Canada CANADA’S PEST Management Regulatory Agency says current agricultural practices related to the use of neonicotinoid-treated corn and soybean seed are not sustainable, but has stopped short of calling for a ban. The insecticides, which are widely used in New Zealand as seed treatments for brassicas and cereals in formulations such as Poncho and Gaucho, were recently banned for most uses in Europe in an attempt to protect bee populations. The Canadian agency proposes requiring use of safer dust-reducing seed flow lubricants; adherence to safer seed planting practices; new pesticide and seed package labels with enhanced warnings;

and updated value information to justify continued use of neonicotinoids on up to 100% of corn seed and 50% of soybean seed. The agency is inviting stakeholders and the public to submit written comments on its proposals to protect bees from exposure to neonicotinoid pesticides from treated corn and soybean seed. It says it is acting after receiving a significant number of pollinator mortality reports in 2012, mainly from corn growing regions of Ontario and Quebec. Areas of high corn production correlate well with the locations of bee mortalities and about 70% of affected dead bee samples tested positive for residues of neonicotinoid insecticides. Neonicotinoid residues were only detected in unaffected

Neonicotinoids in NZ The Environmental Protection Authority says it is not currently undertaking a formal reassessment of the approvals for neonicotinoids in New Zealand, however it continues to review any new information about these substances as it is released, including information from a number of overseas regulators. In May, following the European ban, the EPA told Rural News that New Zealand’s regulations were already as tight as the new European controls (Rural News, May 7). That was despite the EU banning use, even as a seed treatment, in flowering crops such as oilseed rape, maize and sunflower. In New Zealand neonicotinoid approvals include seed treatment of pumpkin, squash, maize, cereals and potatoes, all of which flower though not all are insect pollinated. Neonicotinoid seed treatment is also widely used for forage brassica crops, which can run to flower, and Rural News understands they’re used off-label in brassica and other vegetable crops grown for seed. Several applications to import new neonicotinoid products have been received by the EPA this year, including Bithor for use around domestic, industrial and commercial buildings which was approved September 27. An application to import another neonicotinoid, acetamiprid, is currently being considered. See www. epa.govt.nz

bees in one sample, and at very low levels. “We concluded that the majority of pollinator mortalities were a result of exposure to neonicotinoid insecticides, likely through exposure to contaminated dust generated during the planting of treated corn seed,” the agency says. Unusually warm and

dry weather was thought to be a contributing factor. Measures were implemented to reduce pollinator exposure following the 2012 cases but in spring 2013, despite these and more typical weather patterns, a significant number of pollinator mortality reports from both corn and soybean grow-

ing regions of Ontario and Quebec, as well as Manitoba, were received, the agency says. It acknowledges bee health is a complex issue and may involve a number of additional factors, including parasites, disease and climate. A reevaluation of all uses of neonicotinoid insecticides

is underway in cooperation with the US Environmental Protection Agency. “We are expediting this re-evaluation, which will help us better understand and manage potential risks these pesticides may pose to long-term bee health,” it says.

Canadian bee deaths correlate with seed treatment use.

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Rural News // october 8, 2013

48 animal health

Progesterone test while you milk A Canterbury veterinary clinic is trialling an award-winning on-farm milk progesterone test from the UK this spring. Andrew Swallow reports A NOVEL on-farm milk progesterone test with many applications around mating and pregnancy diagnosis has had a rapid uptake in its first year since launch in the UK. Now, a South Canter-

bury veterinary clinic is trialling the P4 Rapid kits here (see panel). The test was launched in the UK in September 2012 and manufacturer Ridgeway says sales are already at 500 kits of 25

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tests per week: that’s over half a million tests/year. Uptake has been similarly rapid in other countries, such as Finland where they were selling 400 kits/week four months after launch. “Many farmers are either on or moving onto one of our Herd Packages which means they get regular deliveries for a much discounted price and based on their calving pattern,” Ridgeway’s Marcus Hollingshead told Rural News. Most farms’ first use is to confirm dubious bulling behaviour, especially post AI. “If a cow is seen or monitored apparently bulling after already being inseminated this is a simple cost-effective way of making sure that the cow is ‘open’ and not risking infection, a wasted straw or early foetal death by inseminating a cow that may already be pregnant,” he explains. Another popular use is 19-21 days after AI to check for return to cycling. “This is 100% effective. Farmers are wanting to make sure they catch their cows on the very next possible cycle.” Compared to waiting two full cycles until conventional pregnancy diagnosis it’s a very costeffective check to ensure no time is lost getting a cow that hasn’t held reserved.

A third use, and one most users come to once they’re used to the product, is to confirm oestrus before insemination. “This is especially important to users of high cost semen,” notes Hollingshead. Another use is to check return to cycling post-partum. “Not necessarily for all second-plus lactation cows but some show no signs – especially if they’re lame or in restrictive/slippery housing. A weekly test over three weeks on the same day each week will detect anoestrous cows and give a ‘workfrom date’ for those cows that are cycling, but not showing. “Some use that marker and work towards insemination next cycle. Others will test each day from a low indicator and inseminate as soon as.” The test is also being used on cows diagnosed as pregnant but behaving in a way which makes the farmer believe something’s not right. “Low progesterone levels (3-5 ng/ml) continuing after a cow is pregnant are likely to result in reabsorbtion, EFD, or abortion. A cow previously diagnosed as pregnant but showing 0-1 ng/ml levels of progesterone is definitely no longer in calf.” While there are other milk progesterone level tests, Hollingshead says

A P4 Rapid kit containing 25 test tubes and strips.

P4 Rapid is the only lateral flow milk progesterone test available. “It is definitely the only five minute ‘cowside’ test. It was designed by a dairy farmer’s son,

Aaron Bennett, specifically to give farmers quick information that they couldn’t otherwise easily get. “He wanted it to be a practical, store on a shelf,

ambient temperature, use when you want sort of tool: no fridge chemicals etc, just the test and a ¼ inch of well-homogenized milk; not even necessarily clean milk!”

Canterbury clinic trialling here Andrew Bates, of Vetlife’s Temuka branch, has imported a batch of P4 Rapid progesterone heat detection test kits from the UK and has about 10 clients lined up to trial them. Bates told Rural News progesterone tests of milk have been used outside New Zealand for at least ten years, but until the P4 Rapid was launched last year, none had really been suitable for use in the larger and seasonal calving herds typical here. The new kit could change that, he believes, because it is robust enough, and fast enough, to be done on-farm by the farmer or staff while the cow is at the shed for milking. A milk sample is taken at cupping-on, and put into a small test-tube supplied with the kit. Then a test strip is dropped

into it, and five minutes later you have a progesterone reading. A high result means the cow is definitely not on heat, so even if she’s been identified as bulling by other means, a service would be wasted. More importantly, because she’s not been mistakenly served when not in heat, she’s less likely to be missed when she really is. On the flip side, a cow you’re unsure about being in heat from traditional identification methods and which might not have been put up for service can be checked with a test: a high result means the cow is not on heat; a low result means the cow may be on heat and if there are other suspicious signs of bulling, the cow should be served as normal.

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Rural News // october 8, 2013

machinery & products 49

Cultivators get new owners’ overhaul GA RE T H G I LLAT T

THE MERGER of two prominent farm machinery brands, Fairbrother and Hooper, is starting to bear fruit. Longer lasting, better quality discs and cultivators are now ready, after a two and a half year advertising halt, says Hooper sales manager Matt Fairbrother. Hooper Machinery owner Paul Hooper sold his business of 70 years to Fairbrother owner Jim Fairbrother in 2010 for health reasons. Matt Fairbrother says while Hooper machinery was well known for quality products, consistency of

workshop documents was less than ideal and equipment had little stress testing before it hit the field. All the same, “Hooper cultivation equipment is a trusted name in cultivation in New Zealand and we were excited by the opportunities it offered.” Manufacturing processes have had a lot of attention at Fairbrother – seen in their Kinghitter postdriver range – and Fairbrother says they wanted to bring that experience to making Hooper cultivation equipment. Meanwhile they put the marketing of many Hooper products on hold for two years and went back to the drawing board – developing reliable

physical digital plans for machinery. Fairbrother says they also updated some equipment for better compatibility with tractors now available. “We found that as tractors have got bigger and more polwerful we’ve had to make the discs heavier.” The first overhauled product on sale in September was a 4.7m hydraulic disc harrows for which demand has exceeded supply, Fairbrother says. Three have sold and orders are in for two more. Another six smaller disc harrows are out with customers. Improvements include a five year warranty, taper roller bearings, an

upgraded frame, a larger box section, bigger pins, a bigger diameter bush and the use of steelon-plastic wear pads on some moving parts. “We wanted to make them last a bit longer and users have found they are more rugged and able to stand up to a wide range of conditions.” The company also developed an axle with bolts on each end to aid field repairs without welding or cutting gear. Contractors tried the

When you can use a

first machines, first on rocky hill country in Cen-

Hooper cultivator discs back on the market. Jim (left) and Matt Fairbrother.

tral Otago and Dargaville hills, then on flatlands in Canterbury and Waikato. They said the machine was heavy enough to cut through previously untilled soil, while still having the hydraulic compensators and a shorter wheel base necessary to

provide an even cut elsewhere. The company has been working on the Triflex cultivator and Farmer series discs, expected to be released soon; preparing the rest of the stock for re-launch might take

some time. “We will hopefully have gone through the Hooper catalogue by the end of next year. It takes a year to sort it all out.” Tel. 0800 476868 www.hoopermachinery. co.nz

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Rural News // october 8, 2013

50 machinery & products

His Kubota keeps rolling along! A NORSEWOOD farmer whose used Kubota tractor (bought 17 years ago with five years service to its account) refuses to lie down, has relented and bought a new one. Andrew Young is “pretty confident it’s got at least another 10 years in it,” says Kubota marketer CB Norwood Distributors. Young still feeds out

Farm vehicle safety for dairy women

silage and hay with this tractor. “That first Kubota came with the job when I was share milking,” he says. “I got to like it because it is simple and reliable.” Five years ago he bought his second farm, buying another secondhand Kubota, an M9580. Then he had one Kubota for the 80ha dairy farm

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son Jacob (10), who loves The M110GX does the and another for the 170ha mowing, baling and direct tractors, gets to sit there. beef farm/run-off. “It’s also got a quiet drilling of crops. It came He deals with traccab…. You can hardly hear with a Kubota loader, tor supplier Trevor Stedesigned and matched for it running and you can phenson from Firth and easily hold a conStephenson in “It’s the biggest cab in versation in it.” Dannevirke. “The “At Central service has always its class and it has the District Field Days been good and one option of an instructor’s I hopped into of the reasons I got seat.” Young’s son Jacob other brands of the new one was the back-up ser(10), who loves tractors, tractors and none were better for the vice. Trevor’s always gets to sit there. size and visibility.” gone the extra Power and stamile.” bility is said to impress the tractor. The new tractor is a Young. “It’s well balanced. The size of the new Kubota M110GX with 24 I did some topping two to cab was important. “It’s gears. “If you’re mowing three months ago and on the biggest cab in its class a paddock, you have more and it has the option of an steep slopes the traction gears to choose from and it makes it more efficient.” instructor’s seat.” Young’s was good.”

FREE TRACTOR and quad safety workshops for dairy women are being held in the Waikato region. Tractors are involved in nearly 20% of fatal farm accidents, and nearly every farm death in 2012 involved a farming vehicle. The Dairy Women’s Network and farm equipment dealer AGrowQuip are bringing John Deere representatives together to deliver free tractor and quad safety workshops in Waikato. DWN executive chair Michelle Wilson says nobody thinks they are going to have an accident, especially when you have worked with these machines your entire life. “Dairy farming women who have recently started working on farm vehicles, or would like to and want to learn some safety basics, will find this training day a great investment of time – using their learning a lot, including sharing it with family and the farm team,” says Wilson. AGrowQuip chief operating officer Alan Cottington says the company’s connection with John Deere, known worldwide for product safety, has secured product specialist Sarah Ross from Brisbane, and New Zealand territory managers Mark Hamilton-Manns and Ben Suffield to run the workshops. Also leading will be people from HazardCo, Lower Emissions and AGrowQuip. Cottington says for two years AGrowQuip has seen a sales pattern shift away from quads to safer all-terrain vehicles like the John Deere Gator. “We’ve noticed that the larger corporate farm operations are much more safety conscious in their purchasing decisions and are moving away from quads and ATVs,” says Cottington. All workshops run from 10am to 2pm and are free to women who work in dairying and include a barbeque lunch. Tel. 0800 396 748 www.dwn.co.nz

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Rural News // october 8, 2013

machinery & products 51

Plastic diesel tanks out perform steel rivals AS MUCH as 200,000 L of fuel are known to be pumped annually through one of many Sebco diesel stations on farms and in contractors’ yards, says the brand owner, Ed Harrison. “Driving around farms across the country you don’t have to go far until you see a unit on a farm somewhere,” he says. Many of these units have now pumped several hundred thousand litres. “The feedback we are getting from customers is fantastic” says Harrison. “I had one chap ring me to say the Sebco 4800 was the best thing he had ever bought for the farm.” And he

ordered another. Harrison puts this down to manufacturing quality, quality components and how the set-up works. “With the onset of the common rail diesel engine the need for clean fuel is never more crucial. “There are many stories of late model vehicles failing in the injector pumps and having large repair bills due to contaminated fuel dispensed from inferior storage tanks. The old steel tank just does not cut the mustard anymore.” Sebco tests its tank extensively. “We are tracking 15 units through their lifespan. Of those 15 we have

taken two back at five years’ use and conducted invasive testing”. This involves cutting the tank into strips and testing those strips around the circumference. These strips are sent to a lab in Australia where they’re vigorously tested to show how the resin is performing. “The results [showed] there was no breakdown of the material in the five years of use. Sebco will be taking another two tanks at ten years’ service and another two at 15 years’ service for the same testing.” No water or dirt build-up was found in either of the tanks were tested.

How they spend all those hours in their sheds RURAL NEWS long ago discovered a huge sub-culture of people from North Cape to Bluff almost fanatically interested in old tractors and farm machinery. No surprise, then, to note the publication of Tractor Nation – Working the Land in New Zealand by John Wilson. It will provide hours of informative reading but with the size of the subject will yet leave many pondering “Why didn’t he go there, visit soand-so,” and so forth. The author has done a great job in visiting and writing of many people, mainly in the South Island, who spend hours in their sheds restoring relics to objects of beauty of which anyone would be proud. Before-and-after pictures of tractors coming and going show how much lavish TLC will engender pride in the hearts of these specialists.

One tractor historian comments that there had been about 160 different makes and about 2500 models, many reviewed in this book. The 240 pages are full of excellent pictures supplemented with lots of details, which by themselves will provoke a lot of memories of farming in yesteryear to those knowing the machines or someone that did and the part they played helping to bring farming to where it is today. The book is laid out in chronological order from ‘Horses to Tractors’ to ‘The new Millennium: 2000-beyond’. It provides much

Sebco’s Ed Harrison says you don’t have to drive too far to spot one of their units.

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Rural News // october 8, 2013

52 machinery & products

10,000 hours of R&D takes sprayers to near perfection TO N Y H O P K I NSO N

NEW FROM Hustler Equipment Company, Hastings, comes the Katipo range of sprayers with a long pedigree that will please arable farmers and growers, the company says. The innovations are major, as agreed by experts viewing the machines at their unveiling at a new release day at Hustler’s global headquarters. “We started from scratch determined to combine all the feed-

back and ideas from clients over the years, plus our own input,” says director Stephen Currie. “And with 10,000 hours of R&D we believe we have got it right.” The Katipo range come in three sizes: 680L, 890L and 1150L all with ultralow profile to aid filling (respectively 1100mm, 1300mm and 1600mm high). The low profile aids filling through the 455mm lid with built in splash catcher and reduces the risk of injury or splashing while lifting chemical containers

HIGH COUNTRY 4X4 SAFARIS

or checking the tank. The all-galvanised frame shows a complete redesign. It sits on a bottom plate that protects the bottom of the tank from debris and when sitting on the ground between operations. The tanks now sit inside the new frame as opposed to the older frames which required a surrounding bracket to hold the tank. The frame has clevis pins for attaching to the tractor and sliding brackets at the back for altering the height of the booms to suit different crops. The chassis is made from 100x50 RHS, believed to be the biggest in its class. As part of the development the new frame in a jig was shaken at least

60,000 times before it reached a point of disintegration. “There are no ledges inside the tanks to retain any residue liquids ensuring a complete usage or draining between different chemical mixtures,” said territory manager for Hustler Equipment, Hamish Prestidge. A deep sump aids spraying on sloping ground. Another major change is the offset motor under the tanks so the PTO shaft is at a standard length and the pump can be operated while sitting on the ground to aid mixing when filling. The cavity beneath the tank has room for a larger pump. “They come standard with the latest Comet BP110 (110L/min) or a Hartley Currie. Spares and Parts, Hustler Equipment.

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Optional hose reel with reel lock and 90 degree swivelling mount. Available with 30m, 50m or 100m length hose and variety of spray guns and lances to suit farmer’s differing needs.

Comet BP171 (171L/min) if required,” said South Island sales manager for Hustler Equipment, Nigel Holt. The protected Visigauge wet tube level indicator now has 120 degree visibility. On the two larger tanks (optional on the smallest tank) is a MixMax venturi system to ensure complete and continuous mixing of material in the tanks, especially important with the coarser mixes now being

applied. The amount of agitation can be adjusted to avoid excessive foaming. An optional Storagebox foam marker cabin kit is easy to fit and protects the kit from mud and debris. If a foam kit is not attached the box can be used for carrying chemicals. There is a coupling to attach a 5m hose for filling tanks in remote situations e.g. streams or troughs. It has its own filter and is an optional extra.

The pumps come standard with three manual valves for controlling boom sections and/or hose reel complete with pressure lock. These can be changed to electrical valves quickly and/or added to with Hustlers new Slickfit system with a series of valves that can simply clipped onto the present valve bank. Tel. 06 879 7926 www.hustlerequipment. co.nz

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Rural News // october 8, 2013

machinery & products 53

Would-be rural contractors flood field day for work opportunities MY COLUMN last month, about the need for educators to more actively promote the agricultural sector as an exciting and worthwhile career path for our young people, attracted plenty of feedback and comment. It was good to hear from a number of farmers, rural contractors and even school teachers. All agree it’s not only schools, but the sector itself that must continue to push the message about the huge career opportunities in the wider agricultural industry. Agriculture ranks as New Zealand’s most productive, innovative sector. It can also be lucrative: the 2013 Federated Farmers/ Rabobank farm employee remuneration survey

They were hoping 20 or 30 people would turn up, but were blown away by the response when 112 came to see what work the rural contracting industry offered. In fact, one person was so keen to attend he walked 13km from Invercargill to get there. Interestingly, one of the key issues discovered was many who attended had no experience with the equipment, so we need to look at ways to address this, e.g. seeing whether training organisations can develop appropriate courses. Brian and David had met WINZ presentatives a couple of weeks earlier to outline what they wanted to do and why, and WINZ was keen to be involved

It is important that government departments such as WINZ and Immigration NZ understand that rural contractors are struggling to attract enough workers to fill vacancies for the three-to-six month period when they are at their busiest. showed the average farm worker now earns $5500 more than the New Zealand average annual wage. With a steadily growing global population to feed, the agricultural sector is poised to boom, but a shortage of skilled workers may hold it back. Yet, despite relatively high national unemployment, farmers and others in our sector struggle to recruit skilled and motivated staff. This is why Rural Contractors New Zealand (RCNZ) has a key role in developing and attracting quality people into farming. And this is exactly what my fellow RCNZ board directors and southern zones representatives David Kean and Brian Hughes recently did. In August they and others in the southern region held a rural contracting induction and job finding field day to attract people interested in taking some of the 300 or so seasonal jobs that will be available in Southland and Otago this year.

and supported the field day. It is important that government departments such as WINZ and Immigration NZ understand that rural contractors are struggling to attract enough workers to fill vacancies for the three-to-six month period when they are at their busiest. They need to know why rural contractors are often unable to attract New Zealanders to fill these jobs and have to look for skilled and experienced workers from overseas. However, this is difficult as people with these skills are not on Immigration NZ’s skills shortage list. Obtaining work visas can be fraught with problems and employers have to prove there are no suitable workers available for employment in the area. The more we can discuss these kinds of problems with the likes of WINZ and Immigration NZ, the better we can work together to find solu-

for farmers and for those who don’t have the time or the resources to clear up storm damage; they should contact their local rural contractor and ask for help. Rural contractors are experienced in doing

tions to farming’s employment issues. Meanwhile, my thoughts go out to all those farmers affected by the recent storms that lashed the country. It’s been a tough time

this kind of work and have all the necessary machinery and gear to do it. For clean-up help go to the RCNZ website www. ruralcontractors.org.nz and hit the ‘Find a contractor’ channel.

• Wellsford agricultural contractor Steve Levet is the president of Rural Contractors New Zealand (RCNZ), the national association and leading advocate for rural contractors in New Zealand.

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Rural News // october 8, 2013

54 machinery & products

Claas celebrates 100 years FIVE HUNDRED Australasian farmers and farm machinery dealers gathered in Christchurch last month for the centenary of Claas, the world’s largest family-owned farm machinery maker. The event was co-hosted by Landpower, Claas distributor in both countries, and its local dealership, Claas Harvest Centre Canterbury, at the Air Force Museum of New Zealand. A satellite telecast linked the Christchurch event with the Claas factory in Harsewinkel, Germany and 17 other locations including China, India, Ukraine, USA, UK, Poland and Turkey. The telecast, hosted by Claas family members and directors was watched by 12,000 employees at Harsewinkel and other representatives and their families worldwide. New Zealand was first in the telecast, which included several videos on New Zealand and Australian farming. “Landpower and the Claas Harvest Centre network enjoy a strong and enduring partnership with

Claas,” Landpower chief executive Richard Wilson says. “We are proud to represent the brand in this part of the world.” Herby and Pam Whyte set up Landpower (then called Farmrite) in 1975, at first to buy machinery for their farming in Southland. The company has represented Claas in New Zealand since 1987 and in Australia since 1997. Whyte developed a friendship with Helmut and Erika Claas, and now with their daughter, Cathrina ClaasMühlhäuser, “a relationship pivotal to the success of my Landpower chief executive Richard Wilson welcomes guests to the Claas celbusiness,” Herby says. “In ebration. Claas I found a partner… I have profound respect and have to deliver quality products, admiration for.” Landpower represents Claas, expert knowledge, innovation and Amazone and Grimme in Austral- service second-to-none.” August Claas established his asia. The group has 26 Claas Harengineering works in 1913 to make vest Centres in the two countries. “We want to be seen as farm straw balers. He developed a simple machinery professionals, not deal- knotter in 1921 that was the cornerers,” Whyte says. “To do this, we stone of the company’s growth and

success. He then began making harvesting machinery – a long line of combine innovations and developments. The company holds 3000 patents. More recently it has entered the tractor and telehandler markets.

Quad bike safety checks THE DEPARTMENT of Labour says it will step up farm quad inspections during spring. “We have run a quad safety programme for two and a half years, and as spring approaches we will be stepping up our visits to farms to ensure these machines are being operated safely,” says national programmes manager Francois Barton. “Every year, 850 people are injured on farms riding quads and five die. For many injured it was over a week before they could resume normal farming duties. If you can’t work, you can’t farm. “Farms are workplaces and farmers have a responsibility to ensure the health and safety of themselves and their staff. “Farms continue to have one of the highest levels of injury of any workplace in New Zealand. Quads are a major factor in this, but one easily preventable if these machines are respected and used correctly. “Most farming injuries happen on flat terrain, in fine and dry conditions. It’s important not to get complacent when using a quad.” The ministry insists riders wear helmets, are trained and experienced, prohibit children from riding adult quad bikes, and choose the right vehicle for the job, especially when towing a load or carrying passengers. www.dol.govt.nz/quad-bikes/index.asp

Fodder beet from the specialists. for experienced advice on anything fodder beet, nationwide SF Brigadier (low DM% mangel fodder beet): exceptional utilisation SF Blaze (low-medium DM% fodder beet): excellent versatility SF LIFTATM (high DM% fodder beet): high quality and high yields SF SUGATM (very high DM% sugar beet): high harvestable yields

freephone 0508 SEED FORCE (0508 7333 36)

www.seedforce.co.nz

the power to grow

Rural News // october 8, 2013

machinery & products 55 Tunnelhouses

See us at the Gisborne & Hawke’s Bay shows

• Ideal addition to your block • Grow vegetables all year round and reduce your grocery bill • Very affordable and easy to install • Totally NZ made by family business making tunnelhouses for 30 years • Range of models from 2m to 8m long

T/F 03 214 4262 E morrifield@clear.net.nz The 4WD Mitsubishi Outlander is a great all-round vehicle.

www.morrifield.com

M A RK MaC FA R LA N E

Rural News was first shown the top-spec, diesel 4WD version of the new Mitsubishi Outlander and found it a great all-round vehicle, with good performance and a host of luxury extras. The latest drive was the lower-spec LS version with a 2.4L petrol engine, but still with 4WD ability. For a base model (there is an even cheaper 2.0L 2WD version) it is remarkably well equipped. A 6.1” touch screen – which incorporates the reversing camera, cruise control, trip computer, nice 16”

alloys and attractive internal finishes – make this far from basic. The interior is tastefully appointed with pleasant fabrics and the driving position is excellent. It is a great place to relax and watch the kilometres slip by with everything to hand, or to fingertips. The boot holds 1000L with the seats up and the vehicle seems roomy inside. No grumbles were heard from teenagers in the back seat. The base LX has space for five adults, whereas the up-spec XLS and VRX models come with an extra row for a 7-seat capacity. The engine puts out

an acceptable 126Kw and 224nM, but is mated to a CVT transmission. Under load this seems to produce a lot of sound, but not too much forward motion. However, the advantage of this transmission is in helping achieve fuel consumption of just 7.5 L/100km. For an upright vehicle of this size that is remarkably good. There’s a sports mode for those who want to swap their own cogs. The engine is smooth and quiet and, unless really pushing it, performs well. Extracting that bit extra will mean a little extra body roll and the

higher profile tyres on the LX version seeming to lose direction a little. My favourite motoring journalist has a bias towards the comfort the higher profile offers, but in this instance the ride is so good I would go for a lower profile in the hope of better initial turn-in. Prices: from $39,990 for the 2L 2WD LS model, and up to $56,990 for the leather clad VRX turbo diesel version. Warranty is 10 years for the power train, and five years or 130,000km new vehicle warranty and five year roadside assist on all its new cars.

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This is not an offer of securities to the public. PMSL is seeking indications of interest for an investment that will be available only to persons who are selected other than as a member of the public or are otherwise exempt from the requirement to receive an investment statement or prospectus under the Securities Act 1978. No indications of interest will involve an obligation or commitment of any kind. If an offer proceeds, you will only be eligible to invest if you are an “eligible person” (as defined in the Securities Act 1978) or a person whose principal business is the investment of money, who in the course of business habitually invests money, who in the circumstances can be properly regarded as having been selected as otherwise than as a member of the public or who otherwise may receive the offer other than in contravention of the Securities Act 1978. The full terms of the offer will be detailed in an information memorandum that will only be made available to prospective investors who Property Managers Syndications Limited is satisfied meet the foregoing criteria. Prospective investors may be required to obtain independent certification to verify that they meet the criteria for the offer. Property Managers Syndications Limited will be entitled to decline to make an offer to any prospective investor in its sole discretion. *Estimated return of 8% pa pre-tax is based on assumptions to be set out in the Information Memorandum for the investment. This return is not guaranteed.

MS1451

Promotion runs from 1st September until 31st October 2013. $1,000 voucher drawn on 4th November 2013.

www.caseih.co.nz For more information please contact your local Case IH dealer: Amberley 03-314-9055, Ashburton 03-307-8027, Cambridge 07-827-7159, Dargaville 09-439-3266, Gore 03-208-9099, Hawera 06-278-5199, Huntly 07-828-8021, Invercargill 03-211-1333, Kaitaia 09-408-0670, Leeston 03-324-3791, Milton 03-417-8015, Nelson 03-547-3276, New Plymouth 06-758-2274, Otorohanga 07-873-4004, Paeroa 07-862-8783, Palmerston North 06-354-7164, Pukekohe 09-239-1030, Rotorua/Taupo 07-343-1915, Timaru 03-688-2179, Waipukurau/Gisborne 06-858-6041, Whakatane 07-308-5299.

C B Norwood Distributors Ltd

WAVE20859_PPLSRN01

A pleasant way to venture off-road

Exciting New Opportunity

Rural News // october 8, 2013

56 machinery & products

Transmission widens tractor’s appeal TRACTOR COMPANY New Holland has added its Electro Command semi-powershift transmission to the T5 tractor range, saying it expects this feature to increase the machines’ appeal to livestock and mixed farmers, and contractors. Three models are offered, with power ratings of 99-114hp. The range’s “class-leading” common rail technology gives it Tier 4A compliance. And the machines have the maker’s deluxe VisionView cab. “The T5 Electro Com-

New Holland T5 tractor range now boasts a semi-powershift transmission and optional comfort ride cab suspension.

Blenheim gears up for ploughing champs TO NY H OP K I N SON

mand will become the tractor of choice for intensive transport, hay and forage and mixed opera-

No tyre ‘scrubbing’ at headlands THE T5 Electro Command range benefits from New Holland’s Terralock traction management system, CB Norwood says. Once engaged, the system automatically controls 4WD and differential lock engagement via linkage between speed sensors, the brake pedal and the rear linkage. The system will automatically disengage during tight turns at, e.g. headlands. The system prevents ‘scrubbing’ of tyres during turns because the wheels are free to turn and are not locked together; soil scarring is also reduced. This system automatically disengages when speed reaches 15km/h. All T5 Electro Commands have heavy duty braking.

F

e e r

tions, courtesy of its efficient transmission,” says Kyle Baxter, New Holland operations manager for C B Norwood Distributors Ltd. He also expects the T5 Electro Command to suit councils and road maintenance crews because of “an ideal range of working speeds and outstanding all-round visibility”. The Electro Command semi-powershift transmission is a better version of the transmission currently fitted to the NH T6 range. This transmission has 16 forward/reverse, and enables operators to select up to eight gears via up- or downshift buttons on the transmission lever without physically moving it. Range changing is made even easier by three

PLOUGHING ENTHUSIASTS are well ahead preparing for the May 10-11, 2014 New Zealand Ploughing championships at Blenheim, reports the organiser. “The venue is on Hillocks Road at Spring Creek only 5km from the centre of town,” says Graham Gifford, chairman of the organising committee, which expects at least 3000 visitors plus contestants and their supporters. The theme for the finals is ‘Discover Paradise’; such is the Marlborough region, Gifford says. On display will be vintage tractors and machinery, wood chopping, helicopter rides and arts and crafts. “And with about 80 wineries in the area we are hoping to arrange a display and tasting of local vintages.” Visitors needing accommodation should book soon because another big event will run there during the same weekend. The competition will be split into

four divisions: the Case IH Silver Plough division for conventional ploughs; the CRT Fuels division for reversible ploughs; the Mainland Minerals division for vintage ploughs and the Rural News division for horse ploughing. Ploughmen and women are now competing nationwide at various ploughing association events to qualify for next year’s national championships. The winners of the conventional and reversible ploughing divisions will go on to represent New Zealand at the world ploughing championships in Denmark in 2015. The land for the competition is loaned by Marlborough locals Alastair and Louise Campbell at Islayburn and Ian and Jenny Woolley at Twin Creeks Farm. Conventional and reversible competitors will plough green stubble of oats or barley on the first day and grassland on the second day. Vintage and horse competitors will plough grassland on both days. Tel. 03 570 5750

CAMBRIDGE FARM ROLLERS

v o t t l er s r a ba

NEW 10ft Roller with Extension Drawbar & Screw Jack $6700 Vee Ring Roller Seeder Drill with Vee bottom seed box, hydraulic clutch, ext. drawbar, ...................... $18,500 Special rollers made to order, • All prices ex-Factory, Excl GST • Spare parts, Rings and Bearings. Competitive freight rates to the North Island 26"dia rings ................... $85.00 24"dia rings ................... $80.00 Ph: 0800-838 963

ld

sm d y ic rounns aPPl n o 3 io

as 01 dit an new a2nd Con P ” y s

42 e v e r t e r M

wit

buttons on the right hand Command Arc. The gear selected is displayed on the instrument cluster. For slow-speed operators such as growers, an additional clutch pack and reduction gearing provides an additional 16 gears below the standard gearing – 32x32 gears for speeds as low as 280m/ hour. The creeper function is engaged by a switch on the Command Arc. Choose the VisionView cab and optional Comfort Ride cab suspension, and the T5 offers an “unsurpassed operating environment,” says CB Norwood. Familiar to users of the T6, T7 and T8 ranges, this cab suspension counteracts harsh bumps, reducing driver fatigue.

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

www.tulloch.co.nz

0800 88 55 624

AUSTINS FOUNDRY LTD 131 King Street, Timaru www.austinsfoundry.co.nz

WIN A BOOK RURALNEWS GIVEAWAY

Molesworth tells the stories of those who have contributed so much over the years to this highly successful station. Richly illustrated with the sweeping and evocative photography, this book is a must for all those interested in the iconic South Island high country. Rural News has two copies to give away.

DEALERS NATIONWIDE

VISIT WWW.RURALNEWS.CO.NZ TO ENTER

Rural News // october 8, 2013

machinery & products 57

Disc drill a hit with contractors garet h gillatt

A 4-METRE disc airseeder launched at Fieldays by Reese Agri is “a hit” with contractors, the company says. The machine is a disc variant of the Aitchison Airpro airseeder. The new machine gained Reese Agri a finalist placing in the Fieldays innovation awards contest. Sales manager John Norfolk says it has proved as much a hit with contractors testing it as with the Fieldays competition judges. The prototype of the air seeder was tested by contractors in Hawkes Bay, Waikato and Taranaki. “The last contractor who did the trial work for us in Taranaki decided he didn’t want it to go back to the factory so he put a sticker with his company logo on it.” Norfolk says the implement is popular because of its narrow transport width, multi-functionality (up to three boxes) and its ability to hug the ground contours “like no other”. Though the air seeder has a 4m sowing width it folds up to 2.75m and can be towed at up to 40km/h. “It’s easy enough to transport through gates and over farm bridges but at the same time it’s got all the bits there to cover a lot of acreage fast.” Norfolk says a frame consisting of three separate parts gives the seeder excellent contour-following ability, also improved by individually sprung discs that add another 120mm of individual travel. The drill is offered with bins of 1500L or 1000L capacity; an optional 80L bin has individual hydraulically driven fans.

The new disc airseeder is a hit with contractors, says Reese Agri.

Tel. 06 357 9323 www.reesegroup.co.nz

RX Tanks No Tank is built like an RX Tank

The air seeder folds up and can be towed at up to 40km/hr.

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Rural News // october 8, 2013

58 rural trader

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Rural News // october 8, 2013

rural trader 59

Culvert Pipes New Zealand’s CHEAPEST Culvert Pipes! FREE joiners supplied on request.

ONE STOP WATER SHOP 300mm x 6 metre ................................ $410 400mm x 6 metre ................................ $515 500mm x 6 metre ................................ $690 600mm x 6 metre ................................ $925 800mm x 6 metre .............................. $1399 1000mm x 6 metre ............................ $2175 1200mm x 6 metre ............................ $3475 ALL PRICES INCLUDE G.S.T.

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