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Rural News 5 August 2014

Page 1

ABRIBUSINESS

ANIMAL HEALTH

There’s no other farm like the Clevedon Valley Buffalo Farm. PAGE 26

Sequencing bull genomes could eliminate hereditary diseases. PAGE 40

RURALNEWS TO ALL FARMERS, FOR ALL FARMERS

AUGUST 5, 2014: ISSUE 566

www.ruralnews.co.nz

Meat outlook rosy P E TE R BU R K E peterb@ruralnews.co.nz

A BRITISH meat marketing research specialist says he’s more optimistic than ever about the future of the meat industry. Richard Brown, from Britain, is a partner in GIRA Euroconsulting, which publishes extensive meat market and industry reports. He is also a sheep, beef and arable farmer. Brown told Rural News at last week’s Red Meat Sector Conference in Wellington that his optimism is based on people worldwide wanting to eat the meat farmers produce and pay a price that turns farmers a profit. Farmers in turn can then re-invest in their businesses. Brown says it appears at last that prices for premium meats such as beef and lamb are not being driven by those

of cheaper meats such as chicken and pork. “There will be a growing separation between premium meats and premium cuts, away from everyday, relatively lowpriced meats. But people who like eating fresh meat are going to have to pay more than for a ham and cheese roll. “This will advantage New Zealand because you grow grass well. You have a good image and should be able to sell premium meats all over the world. In China, where people are concerned about impurities in meat, New Zealand

lamb compared with local lamb should be a benefit.” But though New Zealand has done well in marketing its lamb, it could learn from Denmark’s marketing of pork. Danish pig farmers are well organised and work well with processors, dealing effectively with challenges, Brown says. “There is a lot of friction between processors and farmers in New Zealand and this is unfortunate.” Farmers need to know more about the pressures on the meat industry. Some farmers say supermarkets are

UP BEET! This monster beet is seen by Dr Jim Gibbs of Lincoln University as the equivalent of New Zealand’s wheat. He says we don’t have the land area to grow large quantities of feed grains, but beet can be grown virtually anywhere in the country and is especially good for finishing beef cattle. See pp 36-37 for more details.

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SILVER FERN Farms (SFF) is just weeks away from an online launch of its best consumer-branded lamb cuts into China via Tmall, the world’s biggest internet shopping site. Tmall and its partner Taobao account for 80% of e-commerce in China, the two sites getting 100 million hits a day. SFF’s general manager sales and category management, Grant Howie, told Rural News the launch is part of the co-op’s China ‘value creation’ strategy to build sales of branded product, formerly sold in high-end supermarkets. “We focus on building our brand story as an integral part of the product, so wherever our product goes it has to [carry] that brand story about New Zealand and SFF. The consumer retail pack selling here in New Zealand is going into China. “We are fast building relationships with big online shopping platforms and the biggest in the world is Tmall… think eBay, plus the US online channels and treble it, that’s how massive they are. “You can go there and [even] buy fresh cherries from Central Otago. So our retail pack of lamb, and soon beef and venison, will go on that platform. It will be one of our key channels to the top end of the Chinese market.” TO PAGE 3

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their worst enemy – correct in terms of perception, but “unfortunate that farmers feel their ultimate trade customer in reaching the consumer is an enemy. That is unhelpful and… needs to be resolved by more imaginative strategic thinking by retailers and a better understanding of their business by farmers.” “McDonalds is a world class retailer with a good way of looking at their supply chain and recognising everyone has to make money. They don’t screw their partners to death in the same way many food retailers do.”

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RURAL NEWS // AUGUST 5, 2014

NEWS 3 ISSUE 566 Welfare chief debunks

www.ruralnews.co.nz

factory farming ban PETER BU RKE

NEWS ������������������������������ 1-19 WORLD ������������������������ 20-21 MARKETS �������������������� 22-23 AGRIBUSINESS ����������� 24-27 HOUND, EDNA ������������������� 28 CONTACTS ������������������������� 28 OPINION ����������������������� 28-31 MANAGEMENT ����������� 33-38 ANIMAL HEALTH �������� 39-44 MACHINERY AND PRODUCTS ������������������ 45-50 RURAL TRADER ���������� 50-51 HEAD OFFICE Top Floor, 29 Northcroft Street, Takapuna, Auckland 0622 Phone: 09-307 0399 Fax: 09-307 0122 POSTAL ADDRESS PO Box 331100, Takapuna, Auckland 0740 Published by: Rural News Group Printed by: PMP Print CONTACTS Editorial: editor@ruralnews.co.nz Advertising material: davef@ruralnews.co.nz Rural News online: www.ruralnews.co.nz Subscriptions: subsrndn@ruralnews.co.nz ABC audited circulation 81,232 as at 31.12.2013

peterb@ruralnews.co.nz

POLITICAL POSTURING by the Labour Party to ban factory farming by 2017 is puzzling the chairman of the National Animal Welfare Advisory Committee, the government’s chief advisor on animal welfare issues. Labour’s Trevor Mallard recently floated this idea and the Greens and Mana parties lent support. However, Dr John Hellstrom told Rural News it’s not exactly clear what they mean. Pig and poultry farming are getting lots of attention, but Hellstrom believes even bigger welfare issues surround intensive dairying. For example, lameness caused by cows having to walk long distances to milking is more pressing. And bad weather also affects many animals. “A lot of farms are now providing decent stand-off facilities and so on, but still many farms haven’t and that’s a serious concern. “And with the big move of dairy into the south, provision of decent shelter hasn’t caught up with places people are

Pig and poultry farming may gain a lot of attention, but more concern should be shown over intensive dairy issues.

farming in. NAWAC has concerns with intensive dairying – not that they can’t be resolved, but that they exist now.” Hellstrom is impressed by the standard of NZ cow houses; they are far better than in the US and Europe – “new and purpose built with good planning.” He believes, as time goes by, the new models will be even better. Problems arise with cows being “knocked around a bit” during mechanical failures in robotic milking machines and stall sizes too big or small. But generally in a shed you see a lot of contented animals, he says. “From the evidence we have seen, well managed 24/7 dairy sheds can pro-

vide high levels of animal welfare. We are considering whether animals farmed this way should have opportunity to spend at least some time outdoors.” Hellstrom says a great example of animal welfare is the cow house trial at Massey University, where cows are housed at night but graze on pasture during the day. ‘Free range’ poultry is myth, he says, and plenty of data shows free range poultry or pigs have serious welfare issues. Some farms are very good and others bad. On some large, free range poultry farms where hens may go out to forage they seldom do because they have food inside and it’s warmer.

NZ not to blame NEW ZEALAND bears no blame in the kerfuffle over Britain’s Tesco supermarkets discounting New Zealand lamb against fresh lamb from Wales. Complaining Welsh farmers are blaming New Zealand companies for this. But UK meat marketing expert Richard Brown says Tesco is to blame for incorrect timing: they should have run it during the first quarter of the year when local product was in shorter supply. “If Tesco doesn’t want the angst of local farmers it needs to think through its position and not do things perceived as damaging to the local industry. “It’s an aggressive campaign by Tesco, bringing an aggressive response from the people it damages most.” “As a specialty meat, lamb needs marketing in less of a commodity manner… more imaginatively, to help encourage consumers understand that lamb is a premium meat deserving premium status because of its flavour and texture.”

Huge potential for high-value NZ meat in China FROM PAGE 1

Howie says the cuts available will be the same as seen in New Zealand supermarkets: “Stir fry – which we believe will be the most popular there because it suits the Asian way of cooking – lamb rumps, venison medallions, diced venison and minced beef.” The cuts will come with recipes because to be successful they need to show consumers how easy it is cook the product. “So we’re developing Chinese

recipes as a big part of the selling proposition to Chinese consumers who want to know it’s authentic New Zealand product you and I would want as consumers here. “Packaging will exactly replicate what you see in the New Zealand supermarket – English on the front and instructions on the back in Chinese. It’s important they see and believe this is the product a consumer would buy at a supermarket here.”

Chinese consumers will have the product delivered to their doors by New Zealand Focus, based in Shanghai and distributing through a national network. It specialises in selling branded New Zealand products to China including honey, beverages, dairy products and now meat. Before committing to this venture SFF did a lot of consumer research and this is ongoing, to better understand the Chinese consumer market. “The growth we’re getting in the high-

end consumer market is very, very large and our biggest challenge is forecasting how much we can sell. “We are talking multiple container loads of these branded retail packs…. We have used New Zealand as our test market to get all our processes and systems in place. China gives us the opportunity to scale-up for significant value.” World’s largest on-line market – See page 9


RURAL NEWS // AUGUST 5, 2014

4 NEWS

Avoid the Miraka ‘mistake’ P E TE R BU R K E peterb@ruralnews.co.nz

A MAORI business leader cautioned the Red Meat Sector Conference attendees against the “Miraka mistake” of underestimating Maori’s business intentions and energies. Craig Ellison, project director for Tuhona Whenua – the Red Meat Coalition – was referring to the Maori-owned Miraka Dairy Company, near Taupo. Ellison told conference goers not to underestimate the ability of Maori to do something big when they want to and believe in it. Maori have the ability to band together, find the capital and have the ‘smarts’ to make good business decisions, he said. Miraka was set up not just because it was a good idea, but also in response to “some negative commentary about the capability of Maori” by a farming leader at a Federation of

Craig Ellison warned RMSC-goers not to underestimate the ability of Maori to do something big when they want to.

Maori Authorities Conference. The decision to launch Miraka was made minutes after that speech, Ellison said. Miraka is up and running because people have said “hey we can do it”. “People have seen Miraka and the massive opportunities there are.”

People who want to do business with Maori need to understand that their way is different from the Pakeha way. “The difference between Maori and non-Maori entities is multiple ownership: often there is a committee of trustees or a board that makes the decisions.

You don’t just rock up to the owner and say ‘let’s do this’ and it happens. “You have to sit down and convince all those owners that doing it is the right thing. Getting an answer may take many meetings, hence my concept of 1000 cups of tea.”

Ellison believes the so-called ‘divide’ between Maori and non-Maori farmers is artificial: everyone wants the same outcomes in sustainability, increased yields and fair returns. “Everyone wants a smarter industry and Maori are no different [except] their farms are larger, they have a range of owners and they focus on free cashflows rather than capital gains.” Every Maori farm is different Ellison says, but all are keen to move their operations beyond the farmgate and up the value chain. Some want to run, others to walk and some to just dip their toes into the water to see what might happen. Ellison points to the Mangatu Incorporation as one Maori group that has moved up the value chain with its company Integrated Foods. It sells about 250,000 lambs a year in consumer packs to customers online and via retail outlets.

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Answer is blowing in the wind MAORI ARE looking to make greater use of technology on their farms to improve productivity. He pointed to a trial now on some East Coast farms owned by Potikirua ki whangakoena (PkW) and involving NIWA, Callaghan Innovation and Beef + Lamb NZ. Weather stations with remote monitoring is using NIWA science to yield better information to help management and decisionmaking. This is similar to what Landcorp have on their properties. Ellison says the trial has many and varied benefits. “For example, some of the PkW farms have beehives for manuka. The prevailing and forecast wind [affects] the placement of these hives. If the wind is blowing the bees away from the manuka into the clover that’s a bad result. “So a forecast can help manage the positioning of the hives on a day-by-day basis which can be valuable in production of manuka honey.”


RURAL NEWS // AUGUST 5, 2014

NEWS 5 Record payout coming from fert co-op A N D R EW SWA L LOW andrews@ruralnews.co.nz

FERTILISER, FEED and agri-technology co-op Ballance Agri-Nutrients last week reported record annual revenues, profit and distributions for the second year running. “It’s a nice way to leave the company,” chief executive Larry Bilodeau, who retires in September, told Rural News. He says strong supply relationships saw product sourced competitively all year and sustained focus on keeping fertiliser prices low, plus buoyant dairy and recovering drystock and horticulture, helped drive volume to 1.55m tonnes compared to 1.33m tonnes last year. No particular nutrient drove the growth though some pent-up demand for capital fertiliser, notably potash, probably was a factor as prices eased. “And of course potash is especially important in dairy.” Bilodeau estimates dairy accounts for about 55% of Tauranga-based Ballance’s fertiliser sales. “That’s not changed as much as you might think. It’s probably come up a little bit but it’s almost within the margin of error.” Last week’s cut in forecast dairy payouts (see pXX) “will impact a bit” on the coming year’s figures but with farmers well aware of the long-term importance of fertiliser it will not be drastic. “It’s been plus or minus 15% over the years. It won’t be as good as last year but it’s not going to be terrible either.” New efficiencies converted record revenue of $921m – up from $878m – into record profit of $93.5 million, ahead of last year’s $92.6 million. However, $4m of one-off restructuring costs related to decommissioning its Whangarei plant – Ballance now supplies

Northland from Tauranga – put the group trading profit at $89.5m. “What’s gratifying is… a net cash position at year-end while keeping up investments in our operations and in research and development,” noted Bilodeau, reflecting on a $28.3m cash positive yearend compared to $6 million of net debt the year previously. Ballance’s year-end equity ratio* was 70.9%, similar to last year’s record 71.2%. Kapuni, Ballance’s urea plant in Taranaki, had $21m spent on maintenance and capital improvements during a onemonth shutdown, $10m went into feed business SealesWinslow “to boost feed production and distribution capability”, and “several million” went into improvements at distribution centres. Bilodeau says returns from fertiliser, feed, or “farm tech” aren’t split in the financials yet. Ballance chairman David Peacocke says the co-op’s performance and strong balance sheet mean it can pass more profit to shareholders and retain a smaller share for reinvestment. “Demand lifted during the year with forecasts for a high dairy payout, improving red meat returns, more maize crops and farmers moving to improve pastures after drought conditions. We capped off the year with good autumn conditions which saw demand reach a peak, driving an upturn in year-end sales.” Peacocke says the co-operative’s combined approach to fertiliser, feed and farm technology is getting results onfarm, with nearly 1000 new shareholders signing. “They like our whole-of-farm approach to nutrients and our expert, science-based advice”. * total assets less all current and long term liabilities divided by total assets

Zespri will bounce back PAM TIPA pamelat@ruralnews.co.nz

ZESPRI’S AFTER-TAX profit was up $9.6 million to $17.2 million following the provisions for Chinarelated issues in last year’s accounts, chief executive Lain Jager says. The company’s total revenues fell from $1.56 billion to $1.35 billion in the 2013-2014 financial year to March 31 as Gold volumes bottomed out at 11 million trays following the impact of Psa, he told the annual meeting. Overheads remained flat at $66.7 million from 2013 to 2014, but would have decreased by 5% without costs of $3.7 million related to China and the SFO investigation. “While we expect Zespri’s profitability will continue to grow in parallel with the growth of the Gold and 12-month businesses, over the next several seasons we must bear in mind that the Kiwifruit Industry Strategy Project is considering the issue of Zespri commission arrangements,” Jager said. “This may have a material impact on Zespri’s revenues.” Zespri’s key responsibility is to develop demand ahead of supply as Gold volumes grow rapidly through these next five years. The company is investing heavily in pro-

cesses, systems and people to support the industry’s growth. Reflecting on the year, Jager said strong grower returns were delivered in 2013. Average Green per tray returns increased 13% from $4.62 to $5.23, the highest returns in a decade. Average Green per hectare returns were $42,659. In the Green Organic

category, average Green Organic per tray returns increased by 14% to $7.07 and per hectare returns increased by 18% to $40,989 a hectare. The focus is to build genuine organic demand in the key markets of Japan, Europe and the US. Average Gold returns, driven by extremely short volumes, were at record levels of $12.91 a tray, though, lower yields off

newly grafted Gold3 hectares meant per hectare returns fell by 11% to $90,813.4 Gold3 was well accepted by the markets in 2013 and has been even more favourably received in 2014 off the back of a very strong taste year, he said. The conventional Green crop Hayward will make up about half of production by 2018.

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RURAL NEWS // AUGUST 5, 2014

6 NEWS

Cut your cloth accordingly – Fonterra SUD ES H K I SSU N sudeshk@ruralnews.co.nz

FONTERRA IS maintaining its advance payments to suppliers over the next two months despite slashing its forecast payout. The co-op will pay $5/kgMS for milk supplied in July and August, matching what it paid farmers same time last year. Fonterra chairman John Wilson told Rural News this will help cashflows on the farm during the winter months. However, he admits the $6/kgMS opening farmgate milk price for the 2014-15 season will bring cashflow challenges for farmers. Wilson joined other dairy industry leaders in urging farmers to be cautious and budget accordingly. The advance rate is a schedule of payments farmers receive throughout the season for their milk; rates posted last week on Fonterra Fencepost website shows farmers will receive $5/ kgMS. However, the payment will drop to $4.48/kgMS during the peak production months October and January. From February, the advance rate returns to $5/kgMS.

Fonterra slashed its opening forecast by $1 citing strong production globally, a build-up of inventory in China and falling demand in some emerging markets in response to high dairy commodity prices. The co-op also announced a dividend range of 20-25c/ share. Wilson says the forecast payout is based “on the best information in front of us”. The season has a long way to go and things could either way, he says. “There is a lot of volatility in the global dairy markets and farmers need to be cautious.” Federated Farmers dairy chairman Andrew Hoggard agrees farmers will need to watch costs closely and “cut their cloth accordingly”. “It means getting back on the computer to re-forecast farm budgets…. One thing for sure is the margin between operating costs and revenue has appreciably closed up.” Fonterra shareholders council chairman Ian Brown says most farmers had already been taking a cautious approach after seeing the recent GDT results. But no one expected the milk forecast payout to drop by $1, he says.

Fonterra chairman John Wilson concedes the opening forecast for 2014-15 will bring cash flow challenges for farmers.

“A drop of this scale was not expected and will have a significant effect on all farmers’ cashflows and budgets. Volatility is a constant in our industry, [seen] in the difference between last year’s forecast and last week’s announcement. Farmers must remember this is a forecast only… but a timely reminder of the

importance of cost management.” Hoggard recommends farmers talk to their bank manager, farm consultant and accountant. These days we can’t burn the chequebook, but some may be deleting their online banking apps, he adds. He also spoke about the impact

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of the payout on local communities. “Given half of what we get paid is spent locally, this will impact the towns but the cities are not immune.” However, Hoggard says it’s not all doom and gloom and the payout will “progressively lift as the season unfolds”. “We are in a season of two halves. The first half isn’t flash but after half-time and the market equivalent of a few oranges we’ll be back on form. This is not the death of dairying.” DairyNZ economists estimate the reduced payout could cut national income by $1.8 billion this dairy season – an average per farm loss of about $150,000 (based on 2013-14 milk production). DairyNZ chief executive Tim Mackle says for many farmers $6/kgMS is a break-even payout, meaning little capital spending or principal payments will take place in 2014-15. “While it is unclear where prices could be at the end of the season, volatility requires farmers to be prepared to react to changes quickly,” says Mackle. “Look at where the fat can be trimmed and where efficiency gains can be made.”

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RURAL NEWS // AUGUST 5, 2014

NEWS 7

Forecast drop no surprise

On the bright side... FONTERRA’S GDT price index has declined 16% since the start of the season on June 1. While the lower prices are impacting the forecast payout, it means improved returns from the co-op’s value-added and branded products; these businesses use milk as a raw product. Fonterra chief executive Theo Spierings says the increase in dividend payout reflects expectations for improved returns on its value-add and branded products, given volume increases and lower input costs. “As we continue to drive for growth in our consumer and foodservice businesses, during the first half of the current financial year we expect reduced cost of goods arising from lower dairy commodity prices to have a positive impact on returns. “In light of the volatility, our dividend estimate is based on zero ingredients stream returns at this early stage in the season.” Spierings says the co-op anticipates some recovery in global dairy prices. It will update its business performance on September 24.

A N DREW SWAL LOW andrews@ruralnews.co.nz

FONTERRA’S CUT forecast was not a surprise, says US dairy market analyst Bill Bailey and he says the cooperative did a good job looking at supply and demand factors. But some news stories have been less balanced, focussing on China’s withdrawal from the market. While important, Bailey says increasing global production is also a key factor that should be recognised. EU production quotas end in April and the USDA is forecasting a 3.1% increase in US milk production next year, though Bailey questions that figure. “The key to an increase in production of more than 3% is a larger number of cows in the US herd. The present herd is only marginally larger than in 2012 – there’s no number available for 2013 – so that means an increase in produc-

tion will rely on increased per-cow output,” he told Rural News. “While that will happen, it will be less than 3%. So, for the first time in a long time, I think USDA has overestimated production…. “Certainly lower feeding costs, which have dropped to about 40% of the cost of milk production in May, compared to 51% last year, will help push up production. And corn prices have continued to fall, reaching levels not seen for several years. But the serious water shortages in the key producing state of California have kept production increases small, despite excellent [dairy] ingredient prices.” In May 2014 Californian production was only 0.9% above 2013, he points out. Another factor not widely reported here is the burgeoning domestic demand in the US, evidenced by a curl of

US-based dairy analyst Bill Bailey says Fonterra has done a good job at looking at supply and demand factors.

butter making the front cover of Time last month. “Butter prices are through the roof, 40% higher now than last year at this time, based in increased demand,” says Bailey. “So, attention will shift to domestic demand with the export market a residual

claimant. This is an important shift because the [US] industry had looked at export markets as important for the past several years. “Increased domestic demand will trump export markets any day. “I am optimistic about greater growth in US produc-

tion, but I don’t see that happening until 2016. A relief to water-short areas (California), lower feeding costs, reduced cattle prices – beef prices are at their highest level ever, bidding cows away from dairy – will eventually enter into the expansion equation, but not in the near term.”

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RURAL NEWS // AUGUST 5, 2014

NEWS 9

MIE plans not pie-inthe-sky – McCarthy P E TE R BU R K E peterb@ruralnews.co.nz

MEAT INDUSTRY Excellence (MIE) chairman John McCarthy says he saw an irony for him in the recent Red Meat Sector Conference. The conference themes of ‘stable procurement and market cooperation’ have been pushed by MIE for the last 18 months, he says. The conference organisers didn’t offer MIE a speaking slot, but had they done so it could have led to intelligent discussion of the subject. “It’s no accident the themes of this year’s conference are aligned with MIE principles; equally it’s no accident good news stories have

increased about the red meat sector,” McCarthy told Rural News. “We pose a threat to the reputations of all the sector participants who have staked their careers, and in some cases their life’s work, on preserving the status quo. In my view, it is the wrong path. “The status quo is a slippery slope and more of the same will not reverse that trend. We should not, however, underestimate the breadth of the forces potentially aligned against us.” McCarthy presents the analogy of a ‘pie’ to illustrate the overall dynamic of the red meat sector. He shows this pie divided into three slices: the first represents the supermarket

chunk; second, the processors/exporters; third, the biggest slice worth the most – yet returning the least – is the farmer stake. He says his analogy makes nonsense of historical expectations of farmers believing the industry will “fix our problems”. “They won’t. They can’t. They are essentially in competition to maintain and grow their slice of what is now a shrinking pie.” McCarthy says the meat industry needs to change, but the challenge will be turning the perceived threat MIE poses to the status quo into an opportunity everyone can buy into. “My message to the grassroots is simple.

Don’t be fooled. The good news stories, the predicted increases in prices for the coming season are red herrings. “The fundamentals remain. Unless we change the structure of our industry model, in five years there will be another meeting in Gore or Fielding, another MIE will be formed and the status quo will once again pay lip-service to the need for reform.” McCarthy believes this year will be “make or break” and where MIE goes is up to farmers. He says farmers can remain at the behest of the rest of the industry – suppliers of raw commodity into various profit centres, essentially wage slaves on

farms. “Or they can get behind the cooperative model to drive the synergies and opportunities in scale and size and take control of their futures.”

MIE chair John McCarthy believes this year will be ‘make or break’ for red meat sector.

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“The big question is ‘what is the split going to be for a conventional in-store visit to the hypermarket or supermarket, versus how much of those goods can be bought online and delivered directly to the home?’ “This is not unique to China, but the extent to which it’s been adopted in China is extraordinary.” Any company wishing to sell into China needs to have a strategy for online sales, Boyd says.

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Helping grow the country


RURAL NEWS // AUGUST 5, 2014

10 NEWS

Westland wipes $1.50 off forecast range A N D REW SWA LLOW andrews@ruralnews.co.nz

HOKITIKA DAIRY co-op Westland last week wiped $1.30-1.50/kgMS off its forecast, leaving its Coast and growing number of Canterbury suppliers expecting $6.00-6.40/ kgMS this season. Its board met at the

same time as Fonterra’s but announced its revision the morning after its larger counterpart, chief executive Rod Quin citing lower international prices and the strong New Zealand dollar. “The market has continued to decline as customers limit their purchases due to higher

inventories in their supply chains, and growth in milk and dairy product supply from Europe and the US. “We have to consider whether we’re at the bottom of the price cycle, and here the signs are slightly more encouraging. There are indications that customers are buying more than in previ-

ous months to refill their supply chains.” Quin later told Rural News he expects to see China back in the market “in a more material way” in the next four-six weeks. “But we’re not building hope of an upside into our current forecast. We’re saying it’s time to be conservative with budgets.

Customers still have a reasonable volume of product in the supply chain and they have more choice from other [suppliers].” While some industry commentators have speculated a weakening New Zealand dollar will offset lower global dairy prices and therefore bolster payouts, Quin cautioned that

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Westland chief executive Rod Quin.

as of last week, declines in the dollar had been small and the currency remained over-valued. “Westland’s response is to [keep growing] its capacity to produce higher value nutritional products such as infant formula.” A recently announced $102 million nutritionals dryer at Hokitika will be commissioned in one year. Westland started new season collections on July 22 and saw the season making a good start, said Quin. “We’re getting strong milk flows – 150,000-200,000L/day already –much stronger than at the same stage last year.” Cool, sunny weather had helped dry things out and though rain was setting in again it was warm so Quin hoped it wouldn’t have too much impact. Federated Farmers West Coast president Katie Milne said the payout forecast cut was expected, but would add to stress levels at a busy time of year. “It’s frustrating but everyone was wised up to

it coming. We’ll just have to look at budgets and talk to the bankers and work our way through it. Hopefully it will go back up again as quickly as it’s come down.” Though the West Coast has been a low-cost production area, increased use of PKE and grain has seen costs creep up on some farms as they’ve pushed production, often to cover rising overheads, particularly where irrigation has gone in, Milne says. “Those feeling they’re a bit close to the wire will have to be talking to their banks about significant changes or letting the leash out a bit further. This will have added a lot of pressure for those who are close to the [breakeven] line.” While a few farms were calving already, most wouldn’t start until this or next week, she said. “For the last fortnight we’ve had a marvellous run of weather which was much needed: June and the first week of July were a bugger.”

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FEDERATED FARMERS West Coast Dairy chair Renee Rooney put a positive spin on Westland’s announcement saying farmer-shareholders would appreciate the early ‘heads-up’ on the current season and confirmation of a final payout range of $7.50 $7.70/kgMS for 2013/14. “Of course we’ve got retentions on top, but it is set to be a good payout and Westland’s supplier communication has been pretty good.” Dairy farmers nationwide would be tightening their belts with an immediate impact on rural economies, she

predicted. “That will ultimately ‘trickle up’ to our larger urban centres. It is safe to say dairy farmers will be sitting on their wallets, focussing only on what we need,” she added, rattling off some statistics. “Westland pumps about $450 million into the West Coast economy and [at least] $100 million into Canterbury. Some 2.3% of all jobs on the Coast and the top of the South Island hinge on what we do. Each of our cows generates $3599 for these regions too.” Signs the New Zealand dollar was easing TO PAGE 11


RURAL NEWS // AUGUST 5, 2014

NEWS 11

Zespri tidies up Chinese connections PA M TI PA pamelat@ruralnews.co.nz

DEALING WITH the consequences of non-compliance issues in three of its 53 markets in recent years was “not good enough,” says Zespri chairman Peter McBride. In China, Zespri is working hard to rebuild it operation and distribution, he told the annual meeting. Zespri’s sales in China and Japan are at weekly records. McBride says the board had strengthened its compliance framework with

former Fonterra chief financial officer Jonathan Mason leading this work. External professional advisers were also engaged to ensure the company is compliant wherever Zespri kiwifruit is sold. Independent partners are being audited in direct sales markets and “tough choices” will be made to end relationships if partners are putting Zespri at risk. “We now have four import partners in China. We have a new market manager, a newly cre-

tighter and much more transparent. “We have also worked hard to build the right relationships in China, recently culminating in our appointment to the advisory board of the APEC China Business Council and the New Zea-

land China Council. We have made positive change across the business and I assure you our focus remains fixed on getting it right.” McBride said Zespri is in the top three fruit brands in major markets, including the number-one

fruit brand in the main cities in its key growth market of China. The global fruit business is almost exclusively a commodity trade. But with New Zealand “a relatively high-cost producer, far from our markets, exporting almost 100%

of what we grow, we will not survive if we seek to compete on a commodity basis”. Adhering to a strategy of a premium-quality, branded position will deliver long-term sustainable wealth to New Zealand kiwifruit growers.

Zespri chairman Peter McBride.

ated government relations role and have several new team members in key positions,” McBride added. “The links between New Zealand and our China operation are now

Growers asked about strategy THE KIWIFRUIT Industry Strategy Project’s draft proposal will go out to growers and shareholders in the next few weeks ahead of the first growers’ meeting on August 21. They can have input into the strategy and will vote on a final proposal by the end of the year. The strategy maps the long-term future of the industry and is led by academic and businessman Neil Richardson who has previously said the New Zealand kiwifruit industry must not be lost to overseas interests. McBride told the annual meeting

that when the industry structure was established in the 1990s, they agreed to the principle of cooperation. “That principle still guides the industry in its decisionmaking today, albeit decisionmaking sometimes surrounded by robust and passionate debate. “The Kiwifruit Industry Strategy Project is to cement that principle for the future and ensure our long-term success.” He said the biggest risk to the process is grower apathy, so he urged all growers to get involved.

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were welcome and would help Westland’s exports. “What’s happening is a blip but we need to suck it up and get on with farming. “Welcome to the life of an exporter.” Westland and “big brother” Fonterra’s investment in new facili-

ties was another positive and Rooney said as long as you farm sensibly for the medium term you wouldn’t lose your shirt, but highly leveraged dairy farmers would feel this. “If you haven’t already, you should be talking to your bank, accountant and farm consultant. “Prioritise what

you really need to be productive and compliant, which includes a Feds membership,” she said, pointing out that Feds’ submission resulting in the recent waiving of earthquake rules applying to farm buildings had saved every farm with buildings several thousand dollars.

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RURAL NEWS // AUGUST 5, 2014

12 NEWS

Ewe flock rebuilding will pressure slaughter volumes P E TE R BU R K E peterb@ruralnews.co.nz

BEEF + Lamb NZ’s chief economist is predicting a slight rebuilding of the national ewe flock, resulting in a drop in mutton

and lamb slaughter in the coming season. Andrew Burt told the Red Meat Sector Conference to expect other minor adjustments in the sheep sector in the coming year.

“The current view is that the number of ewes mated will be back a bit on last year as a result of drought impact and the higher number of ewes slaughtered in the season. But we will see a slightly

improved lambing percentage coming back from the drought-affected figures last year. “It’s primarily a climatic situation, so the slightly fewer ewes mated and the higher lambing

percentage would just about offset each other so we’ll have only slightly more lambs born – all being equal.” Burt says though few ewe hoggets were mated this year, overall the pro-

Andrew Burt reckons the number of ewes mated will be back a bit on last year.

portion of lambs from ewe hoggets is only about 4-5%. Lambs for slaughter are expected to decline 2-4%. “The current market signals a little rebuilding or rebalancing of the national flock: it will be a younger ewe flock, a lot of the older ewes having been being slaughtered. This might help productivity in the next two-three years.” He expects many farmers to retain older ewes in the process of rebuilding. As for how all this affects farm incomes, Burt says BLNZ is still finalising the numbers. “From what we’ve seen it varies from region to region. For example, for the East Coast last

year was tough with the drought, but this year was favourable – better but not exceptional. In other regions last year was normal and this year will be the same.” Burt says the international lamb and beef markets are strong because of the ‘China factor’ and adjustments are being made worldwide to deal with this. “China has put pressure on other markets. It’s raised prices and now everyone is shuffling the pieces adjusting to the new normal in sheepmeat prices.” Burt has heard that US demand for lamb may increase but this may apply more to volume than price.

Elders sale now complete ELDERS NEW Zealand’s sale to South Island-based Carr Group has now been completed. The deal was announced in June and Elders managing director Stu Chapman and Carr directors Greg and Craig Carr have since been meeting Elders staff and clients, discussing what the merger will mean. “The feedback we have received from Elders staff and current clients has been overwhelmingly positive,” Chapman says. “The rural sector is encouraged about the 100% New Zealand ownership and is keen to embrace a new Kiwi brand.” Carr Group managing director Craig Carr says he’s looking forward to the one entity. “It will be good to join forces with Stu Chapman to create a robust rural business. We will continue to look for synergies across the combined group and we are working on growth plans.” Carr says Elders staff he’s met have been “encouraging and supportive of the sale”. The business will continue to trade under the Elders brand for the foreseeable future with Stu Chapman continuing as managing director.

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


RURAL NEWS // AUGUST 5, 2014

NEWS 13

Electioneering the red meat sector P E TE R BU R K E peterb@ruralnews.co.nz

‘NONSENSE’ WAS how some industry leaders at the Red Meat Sector Conference labelled politicians’ comments during a debate at parliament on the Sunday evening prior. Politicians from National, Labour, NZ First and Greens sought to impress attendees, but their patter prompted shaking of heads and murmurings of “bullshit”. Political journalist Colin James was referee as the speakers waded into topics such as water and trade. The Greens’ Stefan Browning claimed the country was “headed the wrong way” on free trade deals and said more needed to be done in such deals to better secure the “livelihoods of farmers and families”.

He then roundly attacked past and present Federated Farmers Dairy chairs whom he claimed don’t believe there is any need for urgent action on water. “I hope the meat sector overall doesn’t follow the same line because that would devalue our markets,” he added. Richard Prosser says NZ First didn’t support free trade, but supported fair trade. “The US Marines combat manual says ‘always cheat, always win; the only fair fight is the one you lose’.” Prosser says NZ First favours bilateral agreements. And we must sell high value products, getting away from selling carcases – a reference to our selling lamb carcases to China. Damien O’Connor, Labour’s agricultural spokesman, also

From left Stefan Browning, Damien O’Connor, Richard Prosser listen as Nathan Guy speaks.

jumped on selling carcases, saying we were doing that in the last century and are still doing it, and is this ‘progress’? “The issue for all agricultural sectors is to negotiate access for the safest, highest-value food in the world bar none. We can produce the finest pasto-

ral based protein in the world, but if it sits on a bottom shelf in the UK what does that do for our image?” O’Connor also claimed the dairy sector had no strategic plan, yet should have to retain world markets. Because New Zealand farmers are not subsi-

dised, as are others, ours are in a fragile situation, he said. Finally, National’s Nathan Guy claimed his party has one of the world’s best trade negotiators in Tim Groser, whose efforts in negotiating many FTAs are praiseworthy. “We have talked a lot about China, but in the red meat sector we also need to look at other historical markets important to you – namely the US and Europe.” Neither should we forget new and emerging markets such as Latin America and the ASEAN countries. “We have negotiations underway with Korea and India, but Russia may take more time.” Guy sees greater collaboration between government departments on trade issues and industry.

Politicians fail to cut it! THE POLITICIANS may have thought they scored points against each other but many failed to impress meat industry leaders. Progressive Meats managing director Craig Hickson the next day introduced two speakers saying, “It’s nice to hear from two people who know what they’re talking about.” Hickson told Rural News some of the politicians misrepresented the industry in talking about a reversion to the lamb carcase trade. “That is simply not supported by the facts,” he explained. “There has been a slight increase in the carcase trade in comparison to other years, but the net return to New Zealand has been higher. Only 6% of lamb is sold in carcase form now. I started in this industry 40 years ago and then we were 95% carcases and 5% cut.”

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RURAL NEWS // AUGUST 5, 2014

14 NEWS What about us say contractors AGRICULTURAL CONTRACTING lobby Rural Contractors New Zealand (RCNZ) has welcomed news that Government plans to increase caps to overseas season workers for the horticultural sector, but believes a similar scheme is also needed in the rural contracting sector. “There is no doubt the horticulture sector is an important and valuable part of New Zealand’s economy and the Government is right to

make provisions for that sector,” RCNZ president Steve Levet says. “However, we need similar provisions for the rural contracting sector as there is a gap between rural contractors’ needs for trained, agricultural machinery operators and unemployed New Zealanders who can do this work.” Levet says the rules around employing temporary, skilled people from overseas prepared to work for 6-8 months each year need

to be simplified – as do the regulations restricting people who have previously worked here in past seasons coming back to New Zealand to work. “Contracting is a seasonal business and one that uses sophisticated machinery that requires technical skill to operate productively. Part of this shortfall is met by bringing in skilled operators from overseas.” Levet adds that political parties of all persuasions need to under-

stand that a dire shortage of suitable agricultural machinery operators means rural contractors rely on employing skilled people from overseas on a temporary basis each season and have done so for many years. He says RCNZ will continue to work closely with the Government, political parties and officials too both ensure that locals have to lobby for changes to the rules around engaging overseas seasonal workers.

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THE US dairy industry is threatening to end support for the proposed trans-Pacific trade agreement (TPP) if Japan and Canada stall on their pledges of comprehensive market access for US dairy products. Both lobbies have also expressed concern about the dominance of Fonterra in international export markets and want this perceived advantage looked at as well. The National Milk Producers Federation (NMPF) and the US Dairy Export Council (USDEC) together sent a message intended to underscore the need for comprehensive market access in all dairy tariff lines into both countries’ markets. They say this is needed to ensure TPP negotiations result in a high standard trade agreement that can be held up as a model for future agreements. Said USDEC president Tom Suber, “It is unacceptable to have such sizable, sophisticated economies refusing to undertake the necessary openness they agreed to upon entering TPP.” NMPF president and chief executive Jim Mulhern says he wants to see strong outcomes on market access with Japan and Canada. “Our industry remains prepared to match the level of ambition of those countries. To be successful, any eventual TPP agreement must result in more open dairy markets in Japan and Canada.” The two groups also say it is import the talks address the lingering impacts of New Zealand government dairy policies that have intentionally advantaged Fonterra at the expense of other competitors. “It is vital that TPP address serious non-tariff policies by the New Zealand government that have uniquely advantaged the largest dairy exporting company in the TPP region and the world,” the two groups say in a letter to US Trade Representative Michael Froman and Agriculture Secretary Thomas Vilsack. The letter says it’s clear Japan and Canada are standing back from ambitious trade goals the US obligated itself to undertake upon joining TPP negotiations. “The US dairy industry has been a leading and longstanding advocate for comprehensive market access and the inclusion of Japan and Canada in the TPP,” the letter says. “Should Japan and Canada not commit to minimum standards and basic market-based principles as many other TPP countries have done, we would need to reexamine our support for a TPP.”

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


RURAL NEWS // AUGUST 5, 2014

NEWS 15

Farmers warned to clean up their act SUD ES H K I SSU N

Waikato Feds president Chris Lewis (inset) says farmers must minimise their impact on the environment.

manager Patrick Lynch says it realises the court order put the farmer in a difficult situation. “Cows are calving and the dairy shed, where effluent collects, needs to be used at this time of year. However, council officers inspected the property recently and confirmed that a robust

sudeshk@ruralnews.co.nz

FARMERS MUST minimise the impact of their business on the environment says Waikato Federated Farmers president Chris Lewis. Just as restaurants are forcibly closed by councils for serious hygiene related breaches, farmers must realise they can be ordered to stop milking until environment related issues are sorted. Lewis made these comments as a Thames farming company was ordered by a judge, Jeff Smith, “not to commence milking” until a new dairy effluent system was in operation on its Kopu farm. The farm has since upgraded its effluent system and begun milking. The farm was found guilty of discharging milk vat waste and large volumes of dairy effluent directly into farm drains. It was fined $47,250. Lewis says if Waikato Regional Council documents presented in court are correct, then the offending was “extremely damaging to the environment”. “Like any business, the council can shut you down if you have a bad grade and not allow you to open only until the premises are clean enough,” he told Rural News. Lewis says most farm-

ers are law-abiding business owners but are let down by a few careless operators. “As in any profession – police, doctors, law-

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yers and accountants – there are one-percenters who let the team down. Like the other professions, this minority group of farmers gets the headlines.” Tuitahi Farms Ltd farm was inspected by Waikato Regional Council officers after a monitoring flight in September 2013. The officers discovered unlawful discharges including milk vat waste and large volumes of dairy

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effluent going directly into farm drains. The drains flow a short distance to the Waihou River which flows to the Firth of Thames. The council prosecuted under the Resource Management Act. The judge’s order arose from conviction on four environmental offences and a fine of $47,250 for offending which had “long term and insidious” effects on the environment. Waikato Regional Council investigations

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RURAL NEWS // AUGUST 5, 2014

16 NEWS Drought forages viewed PRACTICAL USE of forages in regions prone to drought is the topic of one successful project in the last SFF funding round, says Mansell. Though some farmers know about various forages, eg lucerne, plantain, clover, etc, to improve the flexibility of farming systems, there’s less knowledge on how to use them, she says. This North Island East Coast project looks at the new forages available and how

to apply them in a practical sense. The project is called ‘Future forages and their role in dryland systems’ and could benefit farmers in other parts of the country also experiencing increasing climate variability. Other topics successful in this year’s round include sustainable land use intensification and environmental mitigation in the Ruataniwha plains,

widening the range of bee forage plants for pollination security, building leadership capacity in dairy women, diminishing canker infections in apple orchards, release of a new coddling moth parasitoid, improving parasite resistance and foot quality in angora and dairy goats, an N-leaching under lucerne trial in Taupo and sustainable farming systems in North Canterbury.

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$8 million on offer for ‘grassroots’ projects PAM TIPA pamelat@ruralnews.co.nz

THE SUSTAINABLE Farming Fund is definitely “grassroots” with farmers leading successful projects in the agricultural sector, says Kathy Mansell, MPI director growth and innovation. The fund begins a new round of applications on Thursday (August 7) with $8 million to allocate to projects with environmental, economic and social benefits in the primary sector. This approach differs from the usual funding rounds for research organisations: the projects must be lead by a “community of interest” such as farmers, says Mansell. Applicants can be from diverse areas and may be a group just formed on an issue, such as water quality. Recognised entities may be contracted by MPI as part of a project or may be partners in a project, says Mansell. Partly this is because partners in a project, other than MPI, must provide at least 20% of the funding through cash and in-kind contribution. MPI is finding the most successful projects get roughly 50% contributions, showing commitment from the other parties. The fund is set at $8 million a year, however in each funding round the allocations will vary from one to three years. On a rolling basis MPI allocates about $3 million a year. “It is a grassroots fund so a community of interest determines there is a particular issue they are trying to respond to to solve that problem,” says Mansell. “The range of projects is varied: it could be sustainable land management, developing a niche crop,

adapting to climate change, beekeeping, organic systems, arable systems – anything in primary industry except wild fisheries. “Generally the projects need to be applied research or some form of field trials with demonstration sites to prove some form of new technology. Or an opportunity to identify something new where the knowledge could be transferred to other parts of the country. “One community will prove something and that can be extended to other farming situations.” All sectors have equal opportunity to apply, she says. Successful projects closely meet the criteria and can demonstrate a higher likelihood of success. All three criteria – economic, environmental and social – must be in the mix. The significance of the problem is taken into account. Commercial organisations cannot leverage this particular fund. “We need definite evidence there is an ability to deliver so they need somebody with the technical and project management skills to ensure the project can be driven forward. “We also want to see the project can make a different in the community and to whom, and how far that can be extended. It might be regional or the best ones might have a national ability to extend change. Risky projects might get less than those whose level of risk can be managed.” Value of the overall investment by all parties will be taken into account. “We are also looking for innovation,

MPI’s Kathy Mansell

asking what’s the new area, new skills, new opportunity that the project will provide. “We also take an overarching approach to ensure we are getting balance across sectors… dairy, sheep and beef, arable, horticulture, forestry, apiary, aquaculture, viticulture and land management. It is common to have every sector in every funding round.” The maximum grant is $200,000 per annum up to three years. “An increasing number of successful applications are at the higher end of the spectrum – towards the $600,000 threshold. However a project might apply for less funding because they are doing feasibility work. They prove some sort of concept, then may come back for a subsequent funding round.

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RURAL NEWS // AUGUST 5, 2014

NEWS 17

Oceania factory readies to open STANDING IN front of the milk powder dryer of Oceania Dairy Ltd’s new factory at Glenavy, Shane Lodge has a feeling of deja vu – but with a difference. During his 30 years in the dairy industry Lodge has seen new plants built for Fonterra and New Zealand Dairy Ltd. But this time the owners are Chinese, reflecting the changing face of the global dairy industry. Rabobank recently released the findings of its annual global dairy survey and Yili Group, the owner of Oceania, was for the first time named in the top ten companies in the world. Yili Group took over Oceania Dairy in April 2013 and immediately set about constructing the new Glenavy plant capable of 47,000 t of infant milk powder per annum at full

production. The ownership change resulted in a new position for Shane Lodge as the quality and compliance manager at Oceania. He has overseen the construction of the Glenavy factory site from grass land to new plant. “It has been fascinating to witness the interaction and harmony between people representing the world’s largest milk powder export country and the biggest milk powder consumption country,” he said. “It has been a huge effort to turn around the site to a nearly completed factory in less than two years and this is a great reflection on the new owner.” Lodge has also worked directly with local supply farmers to lock in the contracts for milk that will supply the new fac-

tory. The confidence provided by Yili’s ability to absorb local production has helped recruit farmers Lodge says. “We are proud to be the earliest supplier to Oceania Dairy,” local dairy farmer Ard van Leeuwen said. “Oceania is establish-

ing a world-class plant here and that provides local farmers with more choice and opportunities.” Van Leeuwen says the new factory and its ownership by Yili is a boost for the local economy. Meanwhile, a key aspect of Lodge’s role is ensuring outputs from the

new Glenavy factory meet the milk powder specifications of New Zealand and China. “As the world’s largest milk exporter, New Zealand is ideally positioned to work with China to meet the country’s insatiable demand for milk,” Lodge adds.

Oceania’s Shane Lodge

$35k for rural regions CASH FOR Communities during autumn raised $35,000 to help rural communities nationwide. During March, April and May, PGG Wrightson with Ballance Agri-Nutrients donated $1 per tonne of fertiliser sold, giving the cash to schools and charities selected by farmers who bought the product through PGW. Some 850 farmers registered for the scheme; money is tagged for 170 rural community groups. $14,000 will go to schools, $11,000 to rescue helicopter services and $9000 to St John. Clubs and groups around New Zealand will also get some. Stephen Guerin, PGG Wrightson general manager retail, says this reflects a “genuine commitment by farmers and suppliers to support organisations that need assistance to survive in rural communities. Funding is increasingly difficult to source so every bit makes a difference.” The top three recipients were the BayTrust Rescue Helicopter ($3411), Lakes District Rescue Helicopter ($2326) and Westpac Rescue Helicopter Canterbury ($1957). Cash for Communities will be on again in spring. www.pggwrightson.co.nz

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RURAL NEWS // AUGUST 5, 2014

18 NEWS

Sniffing out trouble inside the country’s borders PA M TI PA pamelat@ruralnews.co.nz

NEW INCURSION dogs for biohazards (those that have crossed the border and entered the environment) are now in training by MPI biosecurity detector dog teams. Their first job will be to help eradicate a weed pest, white bryony, a plant with a distinctive smell which smothers everything from forest to pasture. The weed has been isolated to a small area and it’s hoped the dogs will sniff out any remaining plants. A display by a potential incursion dog, a springer spaniel called Boston, was held during an open day briefing about MPI biosecurity detector dogs at its headquarters near Auckland Airport. Detector dogs are used at airports, for cruise ships, cargo and at mail centres to sniff out biosecurity risk material. The incursion dogs for beyond the border are new. “It is very different for us, because it is in the wider environment,” says Brett Hickman, MPI manager of detec-

tion technologies, which includes the dog team “It is not indoors, it is not at the airport so it’s a different set of skills. The training team is loving having something different to do with the dogs. It is a next layer for us… if unfortunately something does get in, we do have another dog team which can go out and find it in the field.” In the incursion demonstration, Boston, in training for only two weeks, sniffed out a blue-tongued lizard. Most MPI border detector dogs are beagles or Labradors but Hickman says for incursion dogs they will use any that will work in the environment. MPI detector dog deployment manager Vanessa Smith told Rural News the border biosecurity detector dogs pick up risk goods every shift they work at the airport: in the busy pre-Christmas time they may find at least 100 items a shift. Much of the offending is ignorance or a mistake, Smith says. People don’t realise souvenir items may contain risk materials, or often there are food items such as orange peel tucked inside chil-

dren’s gear. Dogs suit cruise ship work because they are efficient, says Smith. They are much quicker and more efficient than asking all passengers disembarking for a day’s outing to open bags. Passengers from cruise ships often bring fruit from the ship to eat during the day, risking incursions such as Queensland fruit fly. The dogs will go straight to hidden food items. The detector dog team now has about 50 dogs and two recent puppies. A beagle, named Clara by the Primary Industries Minister Nathan Guy, was hand-reared by staff because her mother died of leukaemia. In her first week on the job she detected plant material concealed on a person coming through immigration, whose visa was revoked. Training of dogs starts with a few odours and others are added. Dogs are taught not to jump on people because some from other cultures object to being touched by a dog. The dogs are in a high reward environment (tiny dog biscuits) because

Minister for Primary Industry Nathan Guy greets a biosecurity puppy with kennel manager Kirsty Ansell at Auckland International Airport late last month

they make frequent finds, so motivation is high, Hickman says. Although young dogs such as Clara may seem ‘hyper’ they are well controlled and the team is looking for this high energy and keenness to do the job. “Some dogs don’t make the grade. We want the best, we don’t want dogs that are mediocre.” Being a dog handler is “hard yakka” and some handlers don’t make the grade either. It is a partnership between dog

and handler and important to get a good match. The dogs must get used to crashing noises, different sounds and people patting them. From about eight weeks to 14 months they go into puppy walking programmes with members of the public similar to guide dogs. They get used to kids, going to cafes, malls, going up and down escalators, noisy places and all sorts of environments.


RURAL NEWS // AUGUST 5, 2014

NEWS 19

Bowling them over in India P E TE R OWE N S

LEADING NEW Zealand sportsmen for many years followed a familiar path when their glory days were over. Some became sales reps, some bought into menswear businesses, some managed pubs. Not so former New Zealand cricketer Geoff Allott and his company Quality New Zealand Ltd (QNZ), exporting NZ lamb to India. Its shareholders and promoters include former New Zealand cricket captains Daniel Vettori, Brendon McCullum and Stephen Fleming — all with strong connections to India via cricket. Allott saw India, with its rapidly expanding middle class, an excellent market for top quality NZ produce. He knows the country and is pleased to have other former players with Indian connections in the new company. NZ-registered QNZ has offices in Christchurch and Mumbai and a head office in Bangalore. Its main focus is the fast-growing middleclass market with money to spend and a desire for

quality food, for which NZ is well known. Like other expanding middle classes, such as Singapore, the Indian middle class sees an increase in protein as important, notably sheep meat. Allott says the company saw the market for sheep meat as top-end. It developed business relationships with quality Indian restaurants and hotels, all eager to add NZ lamb to their menus. All roads led to the Alliance Group, the two companies agreeing to send the first major shipment of frozen NZ lamb to India. Now on its way is a container of lamb – French racks, legs and shanks – bound for top restaurants and hotels. All the meat is branded as Alliance Group ‘Pure South’, launched last October to the Indian food and hotel industry at a function at the New Zealand High Commission in New Delhi. QNZ’s India chief executive, Geoff Thin, says his company knows it will take time to firmly establish a market for sheep meat; the NZ High Commission event was the

Aussie wheat looking good NATIONAL AUSTRALIA Bank (NAB) says the 201415 wheat season is off to a good start in most growing areas in Australia following autumn rain. However, the bumper 2013-14 crop means production will still be 3.8% down on last year. Grain prices in Australia are currently above world prices due to concerns about the impact of a dry spring. NAB predicts prices will ease 1.8% in local terms in 2014-15 as a falling Australian dollar mitigates steeper international falls. The bank forecasts the Australian dollar will fall to US85c by the December quarter and Australia’s official interest rates will remain on hold until late next year.

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

right first step. Alliance Group marketing manager John Rabbitt says his company knows it must keep a high standard to secure an Indian

market. Alliance knows global exporting, he says. Over time its markets have numbered 65 countries.

Current and former NZ cricket captains Daniel Vettori, Brendan McCullum and Stephen Fleming are helping promote QNZ lamb in India.

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RURAL NEWS // AUGUST 5, 2014

20 WORLD

New Zealand lamb production irks UK red meat producers UK’S BIGGEST supermarket chain is under fire from farmers for promoting lamb from New Zealand. About 60 farmers protested at Tesco’s stand at the Royal Welsh Show (July 21-24), accusing the retailer of selling New Zealand lamb at the height of the British season despite

its claims that it supported UK farmers. The National Farmers Union is unhappy with Tesco’s decision to heavily promote end-of-season lamb from the southern hemisphere despite it being the middle of the prime season for British grass-fed, spring-born lamb.

UK media report Tesco selling two 300g packs of New Zealand lamb chops for £6 – a saving of 30%. New Zealand leg steaks were also on offer at £4 for a 270g pack usually priced at two steaks for £7 or three for £10. Only premium British lamb was on sale. A Tesco spokesman

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says the supermarket plans a half-price promotion of British lamb soon, but could not say when. “We sell more British lamb than any other retailer, and we are proud to sell and promote British lamb to our millions of customers. “We know it is a great product and we want to sell large volumes at the peak of its season.” NFU livestock board chairman Charles Sercombe, who took part in the protest, says livestock farmers are angry and frustrated with some retailers. “Some are promoting an end-of-season product many view as inferior, over Red Tractor-assured, fresh lamb produced in the fields, valleys and hills of England and Wales. “We’re highlighting Tesco for failing on commitments by their outgoing chief executive Philip Clarke at the NFU conference last year that Tesco should be the best supporter of British farmers and that it wished to shorten the supply chain. We will keep the pressure on all retailers. The independent Beef & Lamb Watch results just out highlight those retailers who aren’t backing British farming.” UK farmers export

UK farmers are unhappy with Tesco’s for promoting New Zealand lamb.

Numbers don’t back claims JUNE SURVEY data shows big UK retailers are now displaying more British beef and lamb than at this time last year. But the gaps between retailers are evident and the timing of the survey (late June) has pinpointed retailers slow to stock bigger quantities of British lamb. The figures, released by Eblex –

100,000t of lamb a year – 33% of their production – mostly to Europe where it is seen as a premium product. Yet retailers import 100,000 tons, mostly from New Zealand. NFU president Meurig Raymond says the UK was

the organisation for beef and lamb levy payers in England – shows most retailers are stocking UK beef. But only three retailers – Aldi, Budgens and Morrisons – stock 100% UK lamb compared to the same time last year. Tesco stocked 54% UK lamb, down from 69% last year, Sainsbury’s 46% (53% last year) and Marks and Spencer 68%, (70% last year).

self-sufficient in lamb last year and lamb numbers are higher this year. “Promoting New Zealand lamb over British, and Tesco’s attempts to justify this, misleads consumers about the seasonality of lamb and sends a signal to

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farmers that Tesco is not prepared to promote the benefits of food produced in the UK.” He says clearly-labelled home-grown lamb should get pride of place in retail outlets, so consumers can easily find it.


RURAL NEWS // AUGUST 5, 2014

WORLD 21

Falling Aussie cattle numbers lift beef prices AUSTRALIAN CATTLE numbers have fallen, but the tightening supply is pushing farmgate prices up. Meat & Livestock Australia forecasts that by June 2015 the Australian cattle herd will have fallen to 26.1 million head – the lowest in 20 years. MLA spokesman Tim McRae attributes this to wide, severe drought in the key cattle regions of Queensland and NSW. In turn, the national cattle slaughter has continued at rarely seen levels for 18 months, cutting the numbers available for processing or exporting in coming years, says McRae. “The sustained high adult cattle slaughter levels of the past 24 months, combined with near-record live cattle shipments, have eroded the production capacity of the Australian herd heading into the second half of 2014. But with the inevitable tightening of supply, prices for Australian cattle are forecast to increase into next year, bringing them back in line with global cattle and beef prices. “The limiting factor in a price turnaround for the Australian market will be seasonal conditions for

the remainder of 2014 and the northern 2014-15 wet season.” On the live export front, the strong demand for cattle is expected to hold, with shipments for 2014 tipped to exceed 1.1 million head, on track for their highest level since 2003. Beef and veal exports, driven by surging female slaughter and production levels, are also tipped to reach 1.1 million tonnes swt, matching the 2013 record level. Export demand, particularly through Asia, had helped to alleviate some supply and price pressure in the southern markets. In 2015, the competition for a smaller volume of Australian beef is likely to intensify, says McRae. “With the emergence of China, record prices for manufacturing beef in the US and improved market access agreements into Japan and Korea, the global competition for Australian beef is extremely strong heading into the second half of 2014.” The US market is forecast to be Australia’s largest export beef market in 2014, surpassing Japan for the first time since 2003. However, after two years of drought still to be

broken, and an uncomfortably high Australian dollar, the Australian cattle industry still faces

some major production and competitive issues. @rural_news facebook.com/ruralnews

Australian cattle numbers are dwindling and the national herd is at its lowest for 20 years.

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Supply and demand projections The Australian cattle herd is estimated to have declined 8.8%, as at 30 June 2014, to 26.7 million head. After a rapid start to the year, slaughter is expected to ease as the year continues, and reach 8.3 million head, down 0.7% year-on-year. Live cattle exports are forecast to reach 1.13 million head for 2014, up 33% on the previous year, underpinned by strong demand from Indonesia and Vietnam. As during the past 18 months, the drought influenced slaughter has delivered lighter cattle to processors. Average carcase weight for 2014 is estimated to decline 0.7%, to 276 kg/head. Beef and veal production is forecast to decline 1.3%, to 2.332 million tonnes cwt, before declining a further 9% in 2015, to 2.126 million tonnes cwt. Domestic utilisation is expected fall 4.5%, to 708,000 tonnes cwt, with strong international demand likely to strip product from the domestic market in the final few months of 2014.

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RURAL NEWS // AUGUST 5, 2014

BEEF MARKET TRENDS

MARKET SNAPSHOT 

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Change +3

P2 Steer - 300kg

Last Week

2 Wks Ago

Last Year

4.88

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4.52

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4.40

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n/c

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n/c

4.85

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P2 Steer - 300kg

n/c

4.55

4.55

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SI Lamb

M2 Bull - 300kg

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n/c

3.02

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5.98

5.98

5.26

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PX - 19.0kg

n/c

6.02

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n/c

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n/c

5.98

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5.98

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3.00

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5.16

4.70

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3.28

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MX1 - 21kg

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YM - 13.5kg

Last Week

PM - 16.0kg

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M2 Bull - 300kg

SI

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Change

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

2 Wks Ago

Last Year

5yr Ave

+8

2.70

2.62

1.93

1.81

NZ$/kg

+27

6.94

6.67

5.28

5.19

 

 













Change



  











Last Year 5yr Ave

n/c

2.18

2.18

1.82

1.81

NZ$/kg

+19

7.93

7.74

7.76

8.26

       

 





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



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



2Wks Ago

3 Wks Ago

Last Year 5yr Ave

% Returned NI

-0%

77.2%

77.7%

68.9%

73.4%

% Returned SI

-0%

75.7%

76.1%

67.0%

74.8%



2Wks Ago

3 Wks Ago

Last Year

5yr Ave

-2%

68.0%

70.0%

82.83%

77.6%

% Returned SI

-2%

59.1%

61.5%

76.4%

72.1%

  



 

 











 







 

 



 





















 



























  





 



% Returned NI







2 Wks Ago





 



Procurement Indicator



Last Week

Change

 





UK Leg £/lb





 

Export Market Demand

Procurement Indicator

 













Last Week

95CL US$/lb







Change









 





Venison Prices Change



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

Last Week

2 Wks Ago

Last Year 5yr Ave

NI Stag - 60kg

n/c

6.15

6.15

6.70

7.53

SI Stag - 60kg

n/c

6.20

6.20

6.87

7.82

Play your part Record all your stock movements in the NAIT system


RURAL NEWS // AUGUST 5, 2014

NEWS

PRICE WATCH

WOOL PRICE WATCH

BEEF

Change

24-Jul

17-Jul

Coarse Xbred Indic.

+1

5.05

5.04

4.64

Fine Xbred Indicator

-5

5.39

5.44

5.08

Lamb Indicator

-

-

5.31

5.19

Mid Micron Indic.

-

-

6.91

7.86

Competition heats up in both islands

Indicators in NZ$

The rising US bull beef prices have underpinned a lifting bull schedule in the North Island in recent weeks, with last weeks average price between $4.70-$4.75/kg. Reports suggest some companies are aggressively seeking bulls; calling in contracts and seeking lighter weight ranges and rumours of $5.00/kg have also surfaced. There is also indications that recent weeks bull slaughter is higher than previous years. The lack of prime cattle continues to underpin strengthening steer prices with $4.85-$4.90/kg available last week and $5.00/kg on Angus lines. The local trade market continues to dominate in the South Island at $4.75/kg, and with export steer prices steady last week, but still 20cpk below local trade, it appears they have given up the chase.

US beef market in panic mode



       





Whole Milk Powder Cheddar

















-72

4158

4229

5245

-170

4287

4458

5750

-201

4042

4243

6208

-33

5168

5201

5529



 









 



 

 

 











Overseas Price Indicators Indicators in US$/kg Coarse Xbred Indicator Fine Xbred Indicator Lamb Indicator Mid Micron Indicator

  

24-Jul

Last Year

17-Jul









-4

4.35

4.39

-10

4.64

4.74

4.03

-

-

4.63

4.12

-

-

6.02

6.23

3.68

Last 2 Wks

Prev. 2 Wks

Last Year

-188

3713

3900

4550

-213

3500

3713

4913

-75

4475

4550

4375

Change

Butter

-100

Skim Milk Powder Whole Milk Powder Cheddar

3600

3700

4150

   



 













 





 







 





















  

  













vs. NZ Dollar

Last Week 2 Wks Ago 4 Wks Ago Last Year

 



0.858

0.866

0.878

0.807

Euro

0.637

0.641

0.644

0.607

UK pound

0.505

0.507

0.515

0.524



Aus dollar

0.912

0.928

0.931

0.873

Japan yen

87.28

87.62

89.05

80.06

 















US Dollar

 











  May

Jun

Jul

Aug

Sep

Oct

 



UK Pound

















US dollar

Euro

 



CURRENCY WATCH





Indicators in US$/T





 

Overseas Price Indicators

Change



Demand remains firm for store lambs in the NI and the numbers appear to be sufficient to meet demand. In paddock prices seem to have found a level in recent weeks and have remained largely steady with 30-34kg lines trading between $2.95-$3.00/kg and heavier types between $2.80-$2.85/kg. There has been little to no price differential between males and ewes either in the paddock or the saleyards in the last two weeks. Both Stortford Lodge and Feilding had very firm sales last week. In the SI the lack of lamb numbers to trade is resulting in lifting prices, but the activity is very light. Prices are around 15-20cpk behind those in the NI. The SI has seen firm demand and subsequent prices for breeding ewes in recent weeks. Good quality ewes with high scanning percentages are making between $150-$180/hd. Demand in the NI for breeding ewes is steady, with prices ranging between $130-$140/hd. With lambing underway in several regions, this market will soon be winding up and the focus turned to ewes with lambs at foot.

Last Year

 

 



Store sheep markets positive across country

Prev. 2 Wks







Processors are doing their best to keep a lid on lamb schedules at present. A combination of the high NZD, the beginning of the bobby kill season and an increasing focus on cattle slaughter as companies seek to take advantage of the surging US market, contributed to several companies taking money out of their printed lamb schedules in late July. While this did little to actually pull back operating prices in either island, it did succeed in further lowering farmer expectations of money to come later in the season. Export lamb prices in the NI were between $6.10-$6.20/kg gross last week, with the upper end of the range available on larger lines of lambs. In the SI one company that had reduced prices twice in consecutive weeks, was forced to put money back in last week. The majority of export lambs are making $6.00/kg in the SI, with the range between $5.70-$6.10/kg gross.

Skim Milk Powder

Last 2 Wks





Processors keeping a lid on lamb prices

Change

Butter







LAMB

Indicators in NZ$/T





While US beef prices continue their frenzied climb, panic is setting it at high levels as the prospect of a serious beef shortage looks to become reality. With favourable pasture conditions and hay in abundance, analysts are picking the traditional autumn cow kill will not eventuate. The USDA has raised its forecasts for 2014 imports up 12% from 2013, and a further 2% increase into 2015. However the origin of these imports are now becoming an unknown. While the rate of Australian cattle slaughter has continued at unprecedented levels longer than anticipated; there is little doubt that when the end comes, it will put Australia out of the market for a long time, and relief for the US shortage will not be found there. US eyes are being turned to NZ to assess our capability of filling the shortfalls left by Australia. Given supply side fundamentals of the US market aren’t picked to change any time soon, there is a growing chance that these market highs will be sustained through to the NZ bull kill. However consumer demand is the wild card, as the full impact of current prices is yet to be felt by consumers. This may be the factor that limits further upside.

DAIRY PRICE WATCH Last Year













Whole milk powder prices decline again 

.

A&P SHOW

Farm to farm

Mating

Events

Grazing

Gypsy Day

From a sale yard

To find out more go to www.nait.co.nz | info@nait.co.nz | 0800 624 843


RURAL NEWS // AUGUST 5, 2014

24 AGRIBUSINESS

Mixing passion and science a winning formula PA M TI PA pamelat@ruralnews.co.nz

A PASSION for bringing together New Zealand information science to deliver practical information daily to farmers has become a successful business for Wellington mother Bridget Hawkins. It recently won her the Fly Buys Mumtrepreneur of the Year Award and she won the agribusiness section of these awards. Hawkins’ business, Regen Ltd, helps farmers manage disposal of cattle effluent. The company has developed software, Regen Effluent, which turns data including soil moisture, temperature and rainfall into a simply daily recommendation sent to the farmer by text message. Using the same model, Hawkins company is now launching a nitrogen management service, Regen Nitrogen, and a water irrigation service is under development. “How you join all the information science done in this country to make

a difference to farmers day to day is something I have always been interested in,” Hawkins told Rural News. With improved technology, and cellphone and internet speeds, plus the uptake by farmers of smartphones, delivering that information daily by text makes sense, she says. Farmers get key information delivered to their fingertips, whether they are on a tractor or in a milking shed. An agricultural scientist and mother of two teens, Hawkins says when she first started working in the field her youngest child was at kindergarten. The Mumtrepreneur awards recognise the growing number of successful Kiwi women who handle the key challenges of running a business while raising a family. Hawkins grew up on a sheep and beef farm near Taupo, attended Repo-

An example of the Regen Effluent text for the Massey University No4 Dairy farm.

roa College and graduated in agricultural science from Massey University. After working overseas she began a career in the rural sector. She worked for the predecessor to New Zealand Trade & Enterprise, the meat and food industries, then for AgResearch in ag science commercialisation. While doing consulting work she began the work that led to Regen. Hawkins says with her science and ag sector background she exploited opportunities as they arose, not necessarily seeing, early on, the opportunity for her own business. Now she has further aspirations for her business. “What we’re doing can help make

a difference with some of the challenges New Zealand faces, not just in dairying but across the agricultural sector. “With the resources we’ve got we have to show we can farm profitably and sustainably and show urban New Zealand that farmers keep changing and evolving and as opportunities present do things better. “We want to be part of ensuring farmers have got the tools to do things differently.” Hawkins says the Mumtrepreneur awards recognise building a business while being a mother is hard and takes extra determination and commitment. “There are a lot of awards for business itself but they don’t necessarily take into account what else you have to deal with to succeed in your business.” Hawkins has always juggled family and work, following her passion and her goals and presenting a good role model for her children. She needs to travel at

Fly Buys Mumtrepreneur of the Year winner, Bridget Hawkins.

times and attributes her success to the support of her husband Anthony Cox. She says there’s endless discussion and guilt among women about juggling family and work. “There is no right answer, but rather what is right for you or your family and what you can make work. I would never presume to judge anyone else’s choice.” One of the Mumtrepreneur judges, Stephen England-Hall, sees agriculture as the backbone of the New Zealand economy and our international competitive advantage stemming from our clean, green credentials. “Regen’s services provide farmers with a way to increase their profitability while improving their environmental impact.”

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RURAL NEWS // AUGUST 5, 2014

26 AGRIBUSINESS

Buffalo soldiers in the heart It resembles a typical dairy farm but there is no other in New Zealand like the Clevedon Valley Buffalo Farm. Sudesh Kissun reports.

Richard Keast admits buffaloes can be a little intimidating until you get to know them.

NESTLED AMONG Clevedon’s dairy and sheep and beef farms, 40km southeast of Auckland, the 25ha farm is home to the country’s only buffalo herd. Milking is done daily at the farm’s 14-a-side herringbone shed. Milk is trucked to the Clevedon Valley Buffalo Company nearby and turned into mozzarella, cheeses, yoghurts and lassi for local restaurants, the Clevedon farmers market and export to Australia. The farm owns 140 buffaloes, imported from Darwin seven years ago. In winter 40 buffalo cows are milked daily; in summer

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80 cows pass through the shed daily. A run-off block near Ness Valley is used to raise heifers and bulls. Farm manager Richard Keast has been on the farm since day one. He’s a sheep and beef farmer from Omarama, Otago, who moved to Waiheke Island to manage a merino farm. Later, while working on a dairy farm in Clevedon, the farm owner decided to launch the buffalo project. “My ears pricked up when they decided to milk buffaloes,” he told Rural News. “I was trying to figure out how they would do it.”


RURAL NEWS // AUGUST 5, 2014

of Clevedon The first animals arrived in 2007, flown to Auckland in groups of 15-20. In Darwin they were raised for meat so they arrived at Clevedon never milked. Buffaloes are huge, Keast points out. A cow weighs 800-1000kg, a bull as much as 1300kg. Otherwise they are like any other bovine. “They can be a little intimidating until you get to know them. The time you need to be careful is when they have a calf on them; they are very protective of their offspring.” It took Keast about three weeks to train the buffaloes for milking. The buffalo milk production curve is slightly different from the dairy

cow’s. Milk production peaks in September and retreats before peaking again in late summer; milk from buffaloes in late summer is mostly used to make mozzarella. The Cleveland Buffalo Company is happy with progress over the last seven years. But Keast says with the buffaloes’ “large imprint” on the land it is looking at having fewer animals with better milk yields. A breeding programme, using semen from Italy, is underway. Buffalo cows have a 10.5 month gestation, compared to nine months for a dairy cow. Calving is year-round on the farm; a bull is with the cows all the time. Milk solids production

AGRIBUSINESS 27

is double that of a dairy cow. Cleveland’s cows produce 5-13L daily. They eat mostly grass pasture supplemented by maize, lucerne and formulated nut feed from SealesWinslow. No PKE is fed. Buffalo milk is turned into mozzarella, cheeses, yoghurts and lassi products.

A buffalo bull (third from front) grazes among the herd.

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BUFFALO CALVES are notoriously fussy and require hand-rearing, says Richard Keast. Since the cows arrived from Australia the farm has found no product the calves will eat along with milk to help weaning process. “As a result, we were seeing huge checks in growth once the animals moved onto pasture. The calves would leave the shed at 25-30kg then drop to 15kg before slowly building up again once in the paddock.” Then about 18 months ago, Keast started using Fiber Fresh made from lucerne. The calves love it, developing faster without a weaning check from shed to paddock. They also play more once in the paddock, are less often spooked and behave better. Survival rates have risen from 70% to 95% since Fiber Fresh has been fed. Calves are started on fibre in their first week and weaned at about three months. The fibre helps reduce the volume of milk fed to calves relatively quickly. Keast rears 80 calves each year in groups of 10, and milks 50 adult females year-round.

That’s what works out here.


RURAL NEWS // AUGUST 5, 2014

28 OPINION EDITORIAL

EDNA

The politics of slagging FISH & Game NZ’s use in March of dubious survey results to justify slagging dairy farming prompted Rural News to urge farmers to ‘lock the gate’ to F&G members until the parent body shut up. We reasoned that since Fish & Game’s governing body had such low regard for farming, it might want members even to forgo any association with farmers – by declining to hunt or fish on the properties of such scoundrels. A serious call, yes. But we demanded, and we still demand, an end to Fish & Game’s incessant anti-farming carping. Conservation Minister Nick Smith recently fell foul of the lobby; it demanded Smith resign, accusing him of threatening the group’s future. The minister reportedly told the F&G council “Fish and Game sometimes behaves like a rabid NGO,” which it does. But Smith rejects accusations that he told Fish & Game members, at a tense meeting in July, essentially to pull back on campaigning or risk its council being stripped of its statutory powers. In fact he wants Fish & Game to engage more with agriculture and irrigation so as to achieve the highest possible freshwater quality. “While it is right for them to advocate for freshwater, they sometimes get into being anti New Zealand’s most important industry, the dairy industry.” Smith in his defence released a DOC official’s notes of the meeting, including, “F&G needs to work out what it wants to be: a statutory body [with] legislation and a relationship with Government, or an NGO.” Fish & Game is supposed to be an independent body with statutory authority to protect rivers, lakes and streams and the sole agency issuing hunting and fishing licences. Rural News agrees with the Taxpayers’ Union which says, “The Fish and Game council’s campaigning is a gross breach of faith by a statutory body.” Enough is enough! If Fish & Game wants to be in politics, the Government should abolish compulsory licences for trout fishing and hunting, by which the lobby funds its political grandstanding.

RURAL NEWS HEAD OFFICE POSTAL ADDRESS: PO Box 331100, Takapuna, Auckland 0740 PUBLISHER: Brian Hight .............................................. Ph 09 307 0399 GENERAL MANAGER: Adam Fricker ........................................... Ph 09 913 9632 CONSULTING EDITOR: David Anderson .......................................Ph 09 307 0399 davida@ruralnews.co.nz

“No – they still won’t let us bulldoze the stopbank!”

THE HOUND

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

Lack of mana

A good start

Pig of a deal

Ouch

Nostradamus!

THE HOUND has always suspected Mana leader Hone Harawira of not being the sharpest knife in the drawer. And this was confirmed when he accused the Government of putting the welfare of farmers ahead of the Northland communities devastated by the recent floods there. Your old mate reckons Hone is so busy sucking up to the obese German convict Kim Dotcom that he has cut off the oxygen supply to his tiny brain. He seems to forget that farmers are also part of the community, albeit just not part of Hone’s community of losers, whiners and conspiracy theorists.

NEW ZEALANDERS could be forgiven for believing the country’s environment is going to hell in a handcart if all they hear is the doomsday claims made by eco-nazis like the Greens, Mike Joy, Fish & Game, Forest & Bird and talentless out-ofwork actresses. The most recent example was these so-called environmentalists’ negative reaction to the recently announced national water standards. The Hound does not pretend these new standards are a panacea for all our water quality issues, but at least it is a start.

YOUR OLD mate reckons it would be understandable if pork producers felt a little bitter about signing a government industry agreement (GIA) on biosecurity last month. They fought MAF, and then MPI, all the way to the Supreme Court over import health standard changes they believe will lead to disease incursions, losing to an acknowledged difference of scientific opinion. Now, their only option is to get alongside the ministry and minister with a GIA, the principles of which have stunk from the outset: you get a say on your sector’s biosecurity if you agree to cost sharing. It’s not far short of blackmail.

THE HOUND hears that Bryce Johnson and his mates at Bitch & Complain may well feel the cost of their anti-dairying stance in membership nonrenewals this year. Sources tell yours truly that a number of fishers will not be buying F&G licences this coming season because of that body’s anti farming campaign. In fact, one fisherman – who has not bought a fishing licence for the last two years – has come up with a novel idea: instead of a licence he carries around one of F&G’s ‘dirty dairy’ articles in his fishing bag and says he presents that if they ask for a licence.

YOUR OLD mate had a bit of a giggle at the promotional material being sent around to promote Moon Man Ken Ring’s 2015 weather almanac. According to the publicity blurb, Ring’s weather predictions are “eagerly anticipated” and some of the key weather events from 2014 which he “got bang on” were, “Easter would be wet for some, but dry for others”, and “June would be followed by wintry polar blasts”. Gee with predictions like that, who needs the MetService or Niwa? Mind you, the Hound won’t be relying on Ring to provide him with the correct Lotto numbers for Saturday.

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 Tony Hopkinson ......................Ph 07 579 1010 SUB-EDITOR: Neil Keating ............................Ph 09 913 9628 WEBSITE PRODUCER: James Anderson .................... Ph 09 913 9621

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

ABC audited circulation 81,232 as at 31.12.2013 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 // AUGUST 5, 2014

OPINION 29

Conservation surveys entangle landowners in RMA net A conservationist is taking the unusual step of warning landowners not to allow surveys on their land...

MANY LANDOWNERS are allowing surveys of indigenous vegetation and wetlands without realising the consequences. These surveys can be useful for landowners. But if a survey is done by a public agency – for example a council – then your private property information becomes forever entangled in the Resource Management Act (RMA) system and you have no control over how that information is used. Experience from around New Zealand tells us that these surveys lead to zonings/listings in district plans, exposing landowners to unworkable regulations and prosecution, takeover by regional council or government legislation and difficulties in selling your property. My wife Linda and I run a native planting restora-

tion business that helps many farmers undertake environmental projects. But the RMA system does not recognise the past efforts of landowners. I believe it is crucial to have the support of landowners when protecting biodiversity on private land. Unfortunately the RMA has forced councils into conflict against their most conservationminded landowners. It has created a ‘perverse incentive’ whereby some landowners are clearing native vegetation to avoid being caught in the RMA system. An increasing number of landowners are closing their gates to public access, DoC and councils, because they see this as the only way to protect themselves. I’m a member of the Hurunui SNA Group, which consists of landowners who have protected native areas on

RIP Pete FORMER RURAL News Group sub-editor Peter Devlin died in late July. Devlin spent the latter part of his journalistic career, from 2002-2010, helping mould and shape the editorial copy in Rural News Group’s publications Rural News and Dairy News. Prior to joining Rural News Group, Devlin had forged a stellar career as a leading sports journalist and author – working for the Auckland Star and other newspapers. He covered mainly cricket and rugby, including the All Black tours to South Africa in 1970 and 1976. As well as sub editing at RNG, Devlin penned a popular column for Rural News looking back at interesting juxtapositions of sport and farming in New Zealand over the years.

their land. Our current chair is Fran Perriam, a farmer from Greta Valley in North Canterbury, who has two QEII Trust native bush covenants on her

property. As Perriam explains, “Members of our group are those who have left areas of native bush and wetlands on their proper-

ties. We trustingly allowed surveys, but now find ourselves trapped in the RMA system. The more you do to look after your land the more you are picked on

under the RMA.” The Hurunui SNA Group has launched a national campaign calling for all landowners to refuse any more access for

surveys and to support a call for urgent legislative change. • Jamie McFadden is a conservationist and restoration expert in North Canterbury.

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RURAL NEWS // AUGUST 5, 2014

30 OPINION

Farming apprenticeships are already here! KEVIN BRYANT

JACQUELINE ROWARTH’S opinion piece in Rural News July 15 (‘Time to look at farming apprenticeships’) is misinformed and misleading. Firstly, she says “we should be teaching our children what we do”. But many children aren’t staying onfarm, instead pursuing careers in alternative fields. We can’t rely on farmers’ children to fill the skills gap by taking the 48,000 new positions forecast by the MPI report Howarth cites. This is why we run the Primary ITO Trade Academy – to inspire young people to a primary industry career. It’s a partnership between Primary ITO, second-

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ary schools and primary industry employers. Students can achieve the National Certificate in Primary Industries Level 1 and NCEA 2, then a Level 1, 2 or 3 National Certificate in Agriculture or Horticulture. Blending classroom study with on-job learning, this includes field trips in year 11 and regular industry placement in year 12. About 500 students are now in training and more want places, unavailable due to limited funding for the programme. Once young people are ready to enter the workforce, they can enrol with New Zealand Apprenticeships, a government supported initiative via TEC administered by the relevant ITOs. Howarth also says “searching on the Tertiary Education Commission website reveals there are schemes for shearing, sheep farming, beekeeping and horticulture, but not farming, agriculture or anything to do with dairy”. This is incorrect: Primary ITO offers a NZ Apprenticeship in Dairy Farming. The apprenticeships support a staircased approach, catering to all roles in the industry, from entry level to operational. The scheme con-

industry, from assistant to business/operations manager. Our qualifications align with the specific skills required at each level as trainees move up. I agree with Howarth that when staff leave it costs a business to replace them. I also know training pays and trained staff tend to stay in the industry. We have internationally reviewed research showing the significant return on investment (ROI) training provides to a business. The ROI is $3.40 to $1 for dairy farms after all training costs and $4.90 to $1 for sheep and beef farms. This proves the vocational training model works. • Kevin Bryant is former ceo of the Primary ITO.

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higher level management responsibilities, and further education. At June 30 there were 2251 apprentices in our apprenticeship scheme. As well as apprenticeships, the Primary ITO vocational training model for people employed in the primary industries is strong and robust. We’ve been helping people working in the primary industries to upskill since the Cadet schemes began in 1964. We contract AgExcel endorsed training providers to run courses on our behalf, and support and mentor the training advisers who work with our trainees and employers. In 2013 we had 20,344 people in training and 514,550 credits

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OPINION 31

Why Green is not the best colour for water mable. This is disingenuous because of the sheer difficulty and cost of THE GREEN Party recently launched achieving it. New Zealand has 425,000km of its water policy and before looking at what they propose I need to explain waterways which would have to meet those swimming standards, 24 hours what’s been recently gazetted. The National Policy Statement daily, 365 days yearly. The LAWF website states, “rivers for Freshwater (NPS) may not have razzmatazz, but arose from that and streams in (or downstream of ) exercise in consensual collaboration urban areas tend to have the poorcalled the Land and Water Forum est water quality (the highest con[LAWF]. It was the first time indus- centrations of nutrients and bacteria, try, councils, government depart- and lowest macroinvertebrate comments and groups such as Federated munity index [MCI] scores).” This Farmers and Fish & Game have sat is because all our urban stormwater down to openly address water issues systems are designed to use urban streams and rivers to take away all and find solutions. At the heart of the NPS are this run-off. Trying to apply that regional councils, assigned to main- standard to all freshwater bodies tain and improve water quality and is a nonsense. And this is where to raise the lowest water quality to a the Green Party is disingenuous. When the Green Party says national minimum standard. With few exceptions this policy applies to “all water bodies” it really all water bodies whether in town or means only those in the councountry. This was an essential part of tryside because they do not the LAWF consensus and the govern- wish to alarm their core urban ment chose secondary human contact constituency. The Green Party as the national minimum standard. ignores the huge shift in farmers’ All New Zealand’s top water scien- attitudes towards environmental stewardship and underplays quantists were involved. The Green Party claims it advo- tum leaps in management and miticates for the environment and it gation of farm nutrients, the fencing should welcome this important leg- of waterways, riparian planting, the islation, whose intent is to keep New strategic application of fertilisers Zealand’s fresh water the best in the and nutrient budgeting and the effects these world. The Greens often claim 60% of are having on our water is unsafe, but many sites improving water are affected by urban runoff. Now it quality. Instead wants to make all water bodies swim- the Green Party IA N MAC K E NZI E

continues to blame farmers. Farmers like me acknowledge we need to do a lot more work and the vast majority of us are adopting practices and spending tens of millions of dollars a year which, given time, will sort out our contribution. But we are not the sole cause or the sole solution. The NPS may not have the sexy, but implausible, sound bite, ‘swimmable for all,’ but it gives that choice to the community to decide. It is practical, pragmatic and is the law. • Ian Mackenzie is Federated Farmers environment spokesperson.

JUST THE FACTS, PLEASE WHEN ARE TBFree NZ / OSPRI NZ going to inform the general farming public through the rural newspapers that five herds in Southland are infected with TB? A Southland Times article in midJune said three herds were infected by either possums or stoats. There was no proof given to support that statement. The other two herds must have been infected by herd movement as TBFree didn’t say otherwise. Are all these infections from herd movement? There was no mention by TBFree Southland spokesman Mike O’Brien that trapping programmes had been put in place to

prove TB is in the feral animal population or that special testing areas and 10km movement control areas been put in place around affected farms. Southland was declared TB free in early 2009; that lasted until a cow was transported from the West Coast in April 2010. Southland Regional Council reports traces of anticoagulant rodent poison (1080?) have been found in Southland freshwater fish: is this the tip of the toxin iceberg? Can TBFree also confirm there is now a TB infected herd in the Oamaru area as well? The Hound’s (Rural News, July 1) comment on ‘Sensitive souls’ did not surprise me. The Hound

reported, “the sensitivity stakes of OSPRI NZ must right now be at record highs. Some of these supposed guardians against TB are unhappy this fine publication dares to run letters from people criticising OSPRI NZ, more often than not vehement anti-1080 crusaders questioning the ‘guardians’ methods and use of the poison”. If OSPRI / TBFree and the Government want to try to stop people writing letters against them all they have to do is tell the truth surrounding their use of 1080. Stop the spin doctoring, the truth is all we want. Ron Eddy RD2, Nelson

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MANAGEMENT 33

New modelling steers towards better N responses PASTURE RESPONSE to nitrogen fertiliser will this spring be predictable more accurately by a new computer model unveiled by Ballance Agri-Nutrients. The model is the first product of Ballance’s $19.5 million, seven-year Clearview Innovations Primary Growth Partnership project jointly funded by MPI. Dubbed N-Guru, the decision support software was designed in partnership with AgResearch to improve the efficiency of nitrogen use on pastoral farms. Soil total nitrogen tests are a routine aspect of soil testing and where total nitrogen varies sufficiently across the farm the model can be used to determine variable nitrogen use instead of applying nitrogen at uniform rates. Ballance sales staff are already offering N-Guru as part of a fertiliser recommendation to aid decisions about nitrogen use. Given the low cost of getting total nitrogen tested, and the potential gains, “it’s a no-brainer,” says Ballance’s science manager, Aaron Stafford. “With N-Guru we can now more accurately predict the relative pasture response and confidently tailor our advice accordingly.” For example, if soil tests on a 100ha dairy farm show 50ha has a total nitrogen content of 0.7% based on soil dryweight, and 50ha has total N of 0.3%, that would be sufficient to warrant the use of N-Guru. In the high-nitrogen area the model predicts an extra 7kgDM of pasture would be produced per kg of nitrogen applied, but in the low nitrogen area a 13kgDM/kgN response can be expected. Without N-Guru, typically 30kgN/ha would have been uniformly applied over the farm, producing an average 10:1 response and an extra 30,000kgDM. With the insight from N-Guru, 60kgN/ha could be applied to the low-N area in two applications, and none to the higher-N area, giving a 13:1 response and an extra 39,000kgDM

from the same amount of fertiliser. Converting that extra 9000kgDM to milksolids at 12kgDM/kgMS, that’s another 750kgMS in the vat, which, at $6/kgMS, is worth an extra $4500, Ballance calculates. With the exception of some allowance for effluent blocks, “nearly all dairy farms have been taking pretty much a blanket approach to nitrogen

deliver about a third of the improvement (ie a fifth to two-fifths) in on-farm nitrogen-use efficiency that Ballance is targeting with the Clearview Innovations PGP. R&D manager Warwick

Catto says the co-op has made nitrogen and phosphorus efficiency a high priority in the PGP project, aiming to increase nitrogen uptake efficiency from the usual 10:1 return to 15:1 and to increase

phorous and sediment loss, as well as nitrogen and microbial losses. It takes data files from Overseer, links it to a geo-referenced farm map, soil map and digital elevation model.

phosphate efficiency by 20% while minimising losses. A phosphorus management plan called MitAgator will be available by early 2015. It identifies areas at high risk of phos-

N-GURU AT A GLANCE ● Nitrogen fertiliser modelling package. ● Rates tuned to soil total nitrogen test results. ● Payback depends on amount of variation. ● Block approach for starters, full variable rates maybe later.

Ballance’s science manager Aaron Stafford.

rates on pasture,” Stafford told Rural News. “They’ve known they get more or less response on some paddocks but haven’t known why or how to respond to that…. This is another step forward in our ability to give expert advice, adapted to each part of the farm and firmly based on knowledge gathered from a large number of pasture response trials carried out nationally.” Initially he sees the tool mostly being used to tune rates to blocks of paddocks across farms according to soil type and land use history, but in due course applications may be fine-tuned to individual paddocks, or even variably applied as spreaders cross paddocks using GPS systems and maps. “We are always looking at ways to support farmers in increasing production while making the best use of their fertiliser budget and reducing impact on the environment. “By improving nutrient use efficiency through the strategic and targeted use of nitrogen, the risk of associated nitrogen loss is reduced and the cost benefit of fertiliser-nitrogen application increases.” Development of the N-Guru software is ongoing, based on feedback from farmers. Stafford says he expects it to

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RURAL NEWS // AUGUST 5, 2014

34 MANAGEMENT

Better meeting management good for business

Time and place: venue, room layout, and even the meeting leader’s dress can have a big impact on the outcome of a meeting, says Emma Holderness of The Training Practice.

ANDREW SWAL LOW andrews@ruralnews.co.nz

ARE YOU amiable, expressive, an analyst or a driver? While you might answer “all of the above”, attendees at Beef + Lamb New Zealand’s ‘Making Meetings Count’ workshops are finding out their own communication preferences and, more importantly, are gaining insights into why people communicate differently. “It gives you an idea where people might sit and how they prefer to operate,” explains course

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SUCCESSFUL MEETINGS ❱❱ Intent is clear from the outset. ❱❱ Appropriate venue and layout. ❱❱ Right people present and prepared. ❱❱ Ground rules agreed. ❱❱ Keep on track. ❱❱ Conclude with action points.

Invitation for Candidate Nominations Barbara Kuriger has recently resigned from the Board of DairyNZ Incorporated, effective from the 2014 AGM. The Board therefore invites registered members to nominate candidates to fill this extraordinary vacancy. All members of DairyNZ (farmers paying a levy on milksolids to DairyNZ) are eligible to stand for election. An information pack outlining Director attributes and nomination requirements can be obtained from the Returning Officer. Nominations must be received by the Returning Officer by 12 noon on Friday 29 August 2014.

If more than one nomination is received an election will be carried out by postal, fax and internet voting using the STV (Single Transferable Vote) voting method. Votes will be weighted by annual milksolids production. Voter packs will be posted on 16 September 2014 to all registered levy payers, with voting closing at 12 noon on Wednesday 15 October 2014.

BEEF + LAMB New Zealand central South Island extension manager Aaron Meikle says the ‘Making Meetings Count’ workshops aim to empower levy payers and stakeholders in meetings they attend, be they with the bank manager, farm consultant, farm staff or larger groups such as a ‘Farming for Profit’ steering committee or other industry bodies. “Our primary interest is to support our programmes in

The DairyNZ Annual Meeting will be held in Timaru on Thursday 16 October 2014. Election results will be announced at the meeting. For further details contact the Returning Officer as below. Anthony Morton Returning Officer – DairyNZ Inc 0508 666 337 elections@electionz.com

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Having a “parking lot” on the whiteboard for points raised which aren’t central to the meeting’s success allows them to be acknowledged, recorded, and, if time permits, revisited once core business is addressed. A room’s layout can influence success, so this needs matching to meeting purpose: is it to inform, discuss, decide, solve/resolve, innovate, sell or simply meet? “Don’t try to have all seven of these types of meeting in one hour because it probably won’t work. Often less is more.” Breaking delegates into small groups can help get ideas flowing, and walking meetings are less confrontational, giving participants time to think as they walk and talk. “Maybe you say ‘let’s go down the farm and check those fences’. The environment of the meeting

very much determines how people interact… it can change the energy.” When leading a meeting, Holderness says, roles such as hosting, minuting, logging points on whiteboards and time keeping should be delegated if possible. “Otherwise you end up doing everything and it’s harder to keep the meeting on track.” As a participant at a meeting, don’t be afraid to volunteer for such roles if you can see it will facilitate the process, she adds. “You want the right people there, in the right roles, for the right reasons and at the right times.” Elephants in the room need addressing and hardto-have conversations must be tackled. “Too many end up being ‘nearly’ meetings, not ‘really’ meetings.” @rural_news facebook.com/ruralnews

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nance and strategic planning courses annually, primarily for farmer council members. About 70 have attended. Dan Studholme, who runs a 4500 stock unit sheep and cattle operation near Waimate, South Canterbury, attended a ‘Making Meetings Count’ workshop in Timaru recently. “I found it useful,” he told Rural News afterwards. “In all the sections we went through I got bits to take on board.”

As vice president of his local A&P association, and having recently taken on chairing the region’s BLNZ ‘Farming For Profit’ steering committee, he said understanding different personality types and communication preferences (see main story) was quite important. Meikle says the courses are offered to farmer council members and farmers and other members of BLNZ steering groups initially.

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the regions which are strongly farmer-led. But we know these skills help sheep and beef communities generally. ‘By Farmers, For Farmers’ is our most important principle, and the skills from these sorts of courses help farmers steer the activities of BLNZ in the regions.” BLNZ has been convening the courses since it was formed in 2009 and Meikle estimates at least 300 people have attended. It also runs higher level gover-

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and the host and/or leader. Holderness stresses that the likelihood of success depends on being clear on the intent of a meeting and communicating that clearly at the outset, or even beforehand with an agenda. “If you don’t understand the why… you actually don’t get the outcome you’re after.” Having the intent – the ‘why’ – written large on a flipchart or whiteboard for all to see can help keep things on track, as can agreed ‘ground rules’. “Without agreed ground rules people will do whatever they think is okay and if you have 12 people you’ve probably got 12 different views on what is okay.” For regular meetings revisit the ground rules periodically to check adherence and relevance. “Maybe you call them ‘expectations’.”

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tutor Emma Holderness, of The Training Practice. “If you can work out who is what, then you have a better chance of working out how to influence them.” The work-style assessment is one of many elements in a packed one-day programme starting with a game of ‘human bingo’ – an icebreaker to encourage delegates to find out about their workshop fellows. Later, alternative icebreakers are discussed as ways to get meeting attendees talking and engaging with each other

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RURAL NEWS // AUGUST 5, 2014

MANAGEMENT 35

DIY N tests – cheap and quick A N D REW SWA LLOW andrews@ruralnews.co.nz

HOW GOOD would it be to get readings on nitrogen availability in paddocks without having to send samples away for analysis and for a fraction of the cost? Plant & Food Research has been assessing the suitability of just such a test and last month relayed its findings at the Foundation for Arable Research conference, Palmerston North. The problem with current tests is that typically 90% or more of the total soil nitrogen isn’t immediately available because it is bound in organic matter, and what is plant available, as indicated by a mineralised nitrogen test, can change rapidly because leaching reduces plantavailable nitrogen (mineralisation) from the organic nitrogen pool adding to it, explained Plant & Food’s Matthew Norris. “The numbers you get from the test are not the same as they are [at the time of] side dressing.” Current best practice is to sample and test for total soil nitrogen and mineralised nitrogen at the start of the growing season and then plan fertiliser requirements and timings from those using experience and crop modelling packages. However, a growing number of nitrogen quick

tests are available which use a colour response on a test strip card to indicate the nitrogen concentration of a soil and water solution. Once soil samples have been taken from the field following usual protocols according to crop or pasture situation, a subsample is mixed with a calcium chloride solution, then allowed to settle, which typically takes 10-30 minutes. When the solution is clear, the test strip is dipped into

Matthew Norris

it and allowed a set time – 30 seconds or a minute depending on the brand – to develop colour before reading against a chart converting the colour to a

nitrate reading. Colour can continue to develop over the set time, hence it is important the duration is the same for every test strip. Samples should also be tested soon after removal from the field. “Same day analysis should be quick enough,” says Norris. Plant & Food’s work has been with Merck Millipore’s Mquant nitrate test but Norris says there are several brands available online. “They all use much the same chemistry

so it doesn’t really matter which you go for,” he told Rural News. They’re also relatively cheap, at most $1/test strip in some cases so if time permits many samples can be taken and tested. However consistency in approach and sample preparation is important to get reliable results and those nitrogen concentration results then need correlating to crop needs. Work with such tests on paddocks growing maize in the US has

NITROGEN QUICK TESTS ● Measure nitrate content of soil within 30 minutes. ● Simple and cheap. ● Protocols must be followed. ● Results need calibrating to NZ crops and practice.

shown that results of over 20 parts per million of nitrate mean fertiliser isn’t needed. “Further work is required within our New Zealand context to validate these results.”

Another point he made at the FAR conference was that if there is a large amount of ammonial nitrogen in the soil the test will underestimate plantavailable nitrogen.

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RURAL NEWS // AUGUST 5, 2014

36 MANAGEMENT

Beet becoming NZ’s wheat? More than one hundred farmers turned out recently for a Beef + Lamb New Zealand fodder beet field day to look at BLNZ sponsored trials run by Manawatu farmer Scott Linklater and his brother Paul who runs Agrilink Contracting, and hear from guest speaker Dr Jim Gibbs of Lincoln University. Peter Burke reports. FODDER BEET is New Zealand’s wheat. That’s how Dr Jim Gibbs, a leading researcher from Lincoln University describes the fodder crop which is rapidly gaining popularity among dairy, beef and deer farmers, so much so ‘fodder beet clubs’ are being set up to get best value from the crop. Gibbs says New Zealand farming has always suffered from not having a very high energy feed that

is cost effective for finishing animals, with much of the limited area of cereals grown targeted at human consumption. Price has also been a part of the equation. “There aren’t any other high energy [winter] feeds which historically have been available for us,” he points out. Winter brassicas have filled the gap, but compared to beet they have a narrow window for utilisation and are lower energy.

One of beet’s big advantages is it will grow in any environment from sand dunes at Riverton, Southland, to clay hills at Kaitaia, Northland. The other key point is it provides high quality feed when normal pasture quality is low and not good for finishing cattle. “People have described fodder beet as probably the most exciting innovation in beef finishing in generations and I support that. I think it is a

wonder crop in terms of its suitability for New Zealand but there is nothing magical about it: it’s simply high energy and it’s cheap.” While lamb finishing on it is a possibility, Gibbs believes it will be most benefit in finishing beef because it doesn’t require top quality land, making it very cost effective. “It is already being used extensively in the South Island in all aspects of dairy support from

Lincoln University’s Jim Gibbs is a leading researcher in fodder beets.

heifer rearing right through to winter grazing.” The crop is helping herds achieve body condition score targets which are increasingly recognised as very important to reproduction and subsequent milk yield. “The other advantage that beet offers is that it has a low nitrate leaching profile. It is a particularly low crude protein crop,” he notes. That means stock on it don’t excrete a lot of surplus nitrogen, but nor is the protein so low they start metabolising tissue due to lack of it in the diet. “It’s effectively in a

sweet spot.” Another plus is the flexibility to graze or ‘cut and carry’. Provided it is not particularly wet, it can be harvested with leaf intact and fed more or less immediately once or twice a week, or leaf material may be flailed off and bulbs lifted and stored several months, typically in windrows. High yields and low harvest costs mean beet currently costs about a quarter what grass silage does in the South Island. “That’s what’s really driving the uptake for it it can be grown for 6-10c/ kgDM and harvested for

about 5c/kgDM. It is also a very high ME product that will last for four to five months.” Gibbs notes the 10c/ kgDM growing cost is “pretty generous really” and most crops come in comfortably below that. Concerns about animal health with beet diets are better understood now and simple management protocols should avoid problems. The most important thing to remember is the high energy density. Just as nobody would suddenly start feeding cracked wheat to cows ad-lib, nor TO PAGE 37


RURAL NEWS // AUGUST 5, 2014

Trial attracts great interest A BUS and fleet of cars full of farmers rolled up for the Beef + Lamb field day to view the strip-tillage fodder beet trials Manawatu-based brothers Paul and Scott Linklater are running. Unfortunately, so did the clouds and by the time the crowd was 200 metres into the 5.4ha trial the heavens opened. The hardy hosts and Dr Jim Gibbs from Lincoln University (see main story) persevered from under umbrellas for about 20 minutes, long enough for everyone to get a good view of the trial, before adjourning to a Scott Linklater nearby hall. Gibbs, who is overseeing the trial to ensure it is scientifically sound, says it was set up to look at two establishment methods: conventional cultivation with broadcast fertiliser and whole paddock sprays; or strip-tillage with banded fertiliser and spray applications. Paul Linklater has devised a one-pass machine that will cultivate a previously sprayed out strip of pasture, sow the seed, and apply fertiliser. The trial, coming to the close of its second year, is to assess yield and cost differences between the two systems. Linklaters have proved strip tillage can succeed and while they overshot their target of trimming costs to $1500/ha, strip establishment came in at $2,088/ha, compared to upwards of $2,500 for conventional cultivation Paul Linklater and growing. “Strip tillage showed more vigour through the growth stages but came out even in yield compared to conventional,” he later told Rural News. Scott Linklater, who manages the farming side of things, isn’t disheartened by missing their target savings as they have learned much from the trial, such as leaving a six week gap between spraying and cultivation to let the grass die. “We got a better tilth, better soil compaction and Paul has modified the machine so he’s getting better seed placement and compacting in behind so it’s getting a real good moisture retention. The fertiliser is placed nice and accurately and overall we have been more organised this year.” The trial’s had challenges beyond their control, mainly weather, with a dry season making it hard to hit yield targets, he adds. “But overall we are very happy. This is our fifth year of growing it and we are certainly seeing good stock performance.” In dry summers, getting stock onto beet early is improving performance, especially with cattle. Meanwhile, Paul has been busy upgrading and redesigning the strip-till-drill equipment and a design company has taken up his ideas and incorporated them into a completely new machine which will be ready for use in a few months. “It will handle any type of soil better and will work it up into an even finer tilth,” he says. Individually mounted units mean it will follow the contour better and it is better equipped to cope with hitting rocks. “It’s quite a complex build and we have lodged patents.” The coming season will be used to proof the machine and possibly make tweaks before it goes on sale in about a year. Gibbs admitted to being a little sceptical about strip tillage initially, but there were no statistically significant differences in the crops.

MANAGEMENT 37 Researcher upbeat over fodder FROM PAGE 36

should they with beet. “We’ve developed some extremely effective and very practical on farm techniques to ‘transition’ stock from a pasture based diet onto a high input adlib beet diet.” Typically an animal starting from a no-beet background should be allocated 1-2kgDM/day

of beet initially, and only introduced to the crop when fully fed. Over the next two weeks intake of beet can be steadily increased, feeding a fibrous supplement such as cereal straw, meadow hay or possibly bailage or silage at the sametime. The aim is to find the cheapest fibre supplement available.

The crop grows well in both islands but the North has a slight advantage because it’s warmer so the growing season is longer, says Gibbs. A consistent or rising soil temperature of 10-12 degrees for five days is the general rule of thumb for when to plant, he notes. Why it hasn’t occupied large areas of land previ-

ously is probably because it wasn’t realised how high yields could be here, or that it could be grazed in situ. “It is a thoroughly kiwi innovation.... the only other countries that graze it are the ones that have come to New Zealand, seen it happen and gone back and done it.” A fodder beet ‘club’

to facilitate information transfer on growing and using beet is being set up. “We’ll hold seminars and have some onfarm coaching as well. All this will be up and running before the planting season,” says Gibbs. To register interest in joining a fodder beet club, e-mail jim.gibbs@lincoln. ac.nz

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RURAL NEWS // AUGUST 5, 2014

38 MANAGEMENT

Another nail for neonicotinoids? USE OF neonicotinoid insecticides, such as those used in seed treatments Gaucho and Poncho, has been dealt another blow by researchers in the Netherlands. A letter by Hallman and others published last week in the renowned journal Nature details how

increasing concentrations of the insecticides in surface water correlate with declines in insect eating birds. The authors say their findings suggest impact of the insecticides is “even more substantial than has recently been reported and is reminiscent of the

effects of persistent insecticides in the past”. They call for legislation to take into account “the potential cascading effects of neonicotinoids on ecosystems”. Commenting on the discovery in a news article in the same journal, Dave Goulson of Sussex

December, may have missed “the bigger picture” as they are still widely used as seed dressings. The insecticides are used in New Zealand as seed treatments for grass, cereals, maize-sweetcorn, pumpkins-squash and brassicas, and as sprays on

University’s School of Life Sciences says it is “reminiscent” of Rachel Carson’s milestone 1960s novel Silent Spring. Goulson suggests the long-running debate on neonicotinoids, and Europe’s two-year moratorium on its use on flowering crops imposed in

The EPA says it is monitoring international developments and New Zealand has very tight restrictions in place.

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Boron breakthrough for wheat GENES THAT make wheat tolerant to boron have been identified by the Australian Centre for Plant Functional Genomics, Adelaide University. “We now have molecular markers that can be used in breeding programs to select lines for boron tolerance with 100% accuracy,” says project leader Tim Sutton. Where boron toxicity limits yields, genetic improvement is the only effective strategy to address the problem, which occurs worldwide, particularly in drier grain-growing environments. “Boron tolerant lines of wheat, however, can maintain good root growth in boron toxic soils whereas intolerant lines will have stunted roots,” says Sutton. The wheat genome has about six times the number of genes as humans’ which makes identifying genes controlling such adaptations extremely challenging. The ACPFG research is published in Nature. – Alan Harman


RURAL NEWS // AUGUST 5, 2014

ANIMAL HEALTH 39

Theileria likely to get worse before it gets better A N D REW SWA LLOW andrews@ruralnews.co.nz

THE INCIDENCE of theileria is expected to increase before immunity becomes more widespread and cases start to wane, says the New Zealand Veterinary Association. The tick-borne cattle disease causes anaemia and has been on the rise since the novel Ikeda strain was first identified two years ago. Nearly 700 beef and dairy herds have tested positive, about a third of those this year, most cases in the upper North Island. Speaking on the launch

of a 32-page handbook on the disease, immediate past president of the NZVA Society of Dairy Cattle Veterinarians Neil MacPherson said vets are monitoring the situation and are prepared. “Even though there is no vaccine The tick-borne cattle disease causes anameia and has been on the rise. or treatment that has proven 100% effective and at-risk herds, clinithere are measures to successfully treat theileria cal diagnosis and disease management strategies. as comprehensively outThe handbook is “a lined in the handbook.” These include good nutri- hugely valuable ‘readyto-use’ resource which tion of cattle, minimisincludes a section on farm ing stress, herd screening management strategies to to detect affected animals

lessen the effects of the disease. It will be of relevance for newly and previously diagnosed dairy and beef properties.” Predictive modeling of the epidemic indicates cases will rise before starting to decline as herds develop immunity, though in areas where tick numbers are variable or patchy, such as lower Waikato, herd immunity could fluctuate with tick numbers so disease could re-emerge. “Working with farmers to minimise the disease is essential. It will include

identifying and managing affected animals, optimising herd health and implementing general biosecurity measures such as strategic tick control,” says MacPherson. The Veterinary Handbook is a joint effort of MPI, the Society of Dairy Cattle Veterinarians of the

NZVA, and the sheep and beef cattle veterinarians branch of the NZVA. Copies and updates on the disease are available on www.nzva.org. nz. DairyNZ’s Technical Series issue 20 was also dedicated to the disease. @rural_news facebook.com/ruralnews

NZVA’s Neil MacPherson says even though there is no vaccine or treatment that has proven 100% effective there are measures to successfully treat theileria outlined in the handbook

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AREAS OF high tick activity East Cape and Bay of Plenty, where few herds have so far been exposed to ikeda, may suffer greater incidence of the disease, the handbook warns. “Outbreaks in Auckland and Waikato are also likely to continue to be significant,” say the handbook editors Andy McFadden (MPI) and Roger Marchant (NZVA). “Naïve livestock moved into endemic areas such as Northland are also likely to be at risk depending on when the movement occurs and the physiological status of the animal.” The handbook relays three


RURAL NEWS // AUGUST 5, 2014

40 ANIMAL HEALTH

Genome project flags higher production ALAN HARMAN

SEQUENCING THE genomes of 234 bulls whose descendants number tens of millions can enable breeding schemes to reduce or eliminate hereditary diseases and produce milk and beef more efficiently. The international ‘1000 Bull Genomes Project’ says the bulls whose genomes are sequenced and analysed represent four commercially important cattle breeds. Scientists from Germany’s Technical University of Munich (TUM) contributed data on 43 sires of

the Fleckvieh breed, now on every continent from its origin in the Bavarian Alps. Worldwide there are 40 million Fleckvieh dairy cows. Scientists from Australia, Canada, Denmark, France, Netherlands and the US obtained whole genome sequences for 129 Holstein-Friesian bulls with six million daughters on dairy farms and 15 widely used Jersey bulls. Previously published genome sequences for 47 Angus cattle were also analysed. Nature Genetics carries a research report on the ancestors’ sequences.

The scientists say breeders now have a leverage tool to extrapolate the sequence information to the numerous descendants using readily available chipbased DNA microarrays. From whole-genome sequencing of the selected bulls – 28.3 million variants are identified: the researchers began building a database of genotypes. This allows sequencebased genome-wide association studies as well as genomic prediction. As a result, mutations with negative impact on animal health, welfare and productivity can be rapidly identified.

Researchers believe genome sequencing could help beef and dairy farmers increase production.

The researchers now see evidence this approach could help dairy and beef farmers raise production. They tested the usefulness of the database by flagging recessive mutations associated with embryo death and a lethal skeletal disorder. In addition, genome-wide studies identified variants of specific phenotypes, such as high fat content in milk and the curly coat inherited by some Fleckvieh cattle.

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“Whole-genome sequencing of founder animals on this scale is unprecedented for a live-

stock species,” says Ruedi Fries, TUM chair of animal breeding. “Our results provide the basis for indi-

vidualised cattle genetics – one might say ‘personal genomics’ for cows’.”

Surprising variation THE RESEARCHERS note a “perhaps surprising” amount of genetic variation given the selection pressures breeders have applied over the centuries, with a total of 28.3 million variants of the 234 cattle sequenced. “This large number of variants is perhaps surprising given the recent reduction in effective population size in the B. taurus indi­viduals sequenced here,” they say, alluding to the contraction in bulls used since artificial insemination became widely used. The work did not include New Zealand bulls but 72.3%, 43.3% and 55.3% of the chromosomes in the modern Australian, French and Danish Holstein populations, respectively, can be traced back to the ancestors sequenced. LIC’s science leader genetics and genomics Bevin Harris told Rural News’ sister paper Dairy News that the Nature Genetics paper is important in demonstrating what can be done with whole genome sequencing. Harris says LIC will provide germplasm to the project but similar work is underway here. With the help of PGP funding, LIC has just finished sequencing 550 New Zealand sires, though about one year will pass before all that data has been analysed to the

level of the work reported in Nature Genetics. The sequencing is a step forward from current SNP Chip techniques because it details every part of the DNA as opposed to blocks of it, Harris explains. “Now you get the entire three billion pieces of information in the bovine genome in front of you.” With SNP chips, traits are “associated” with the chip and how strong that association is will dictate rate of progress made in selection for the trait. “And sometimes those associations get broken. With sequence data if you’ve got the source of a trait, you’ve got it: there’s no association to be broken, or strength of association to be worried about.” It will mean greater certainty and accuracy in bull selections, but for farmers to reap the benefits they will need accurate records of their herd’s parentage too, Harris stresses. CRV Ambreed’s genetic strategist Phil Beatson told Rural News he too expects the research is “likely to be influential in years to come” given the authors “are a large group of eminent scientists from several key research institutions and universities”. – Andrew Swallow

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RURAL NEWS // AUGUST 5, 2014

42 ANIMAL HEALTH

New home needed for rare sheep RETIRED FARMER David Tuart is looking for a place to keep and graze his flock of rare British sheep. Tuart, 79, lives on a rented property at Mamaku, near Rotorua; he gets $400 a week pension and spends about $100 of this on supplementary feed for the 100 sheep. The severe winter has hampered grass growth, he says. “The winter has been so severe

the grass has not been growing. Soon there will be no more grass to grow and I don’t know what to do.” Tuart’s sheep flock includes Hebrideans, Mohakas, Arans and Goths. He started buying rare British sheep after returning to New Zealand from a work stint in the US. Twenty years ago he had 1000 sheep on his Te Puke farm; he sold the farm and spent most

of the money on looking after the sheep. Rising land prices prevent him from buying another farm. He believes Hebridean and Mohaka sheep may be the future for the New Zealand sheep industry. “These sheep have a muscling gene and produce more meat per carcase weight than any other sheep,” he told Rural News. “They may not produce much

wool but they are super meat producers and we should be farming them.” The sheep are kept on several lifestyle blocks at Mamaku but Tuart says he’s fast running out of pasture. “It will be good if a farmer can help me keep all these sheep together. They will be valuable to the industry one day.” Tuart can be contacted on 027 975 0228.

David Tuart and his rare sheep flock.

Neonics confuse bees

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TINY RADIO frequency tags show long-term exposure to a neonicotinoid pesticide hampers bumblebees’ ability to forage for pollen, Canadian and British researchers say. Nigel Raine, a professor at Guelph University’s School of Environmental Sciences in Ontario, Canada, and Richard Gill of Imperial College London, England, used RFID tags similar to those used by courier firms to track when individual bees left and returned to the colony, how much pollen they collected and from which flowers. Their research, published in the British Ecological Society’s journal Functional Ecology, found bees from untreated colonies got better at collecting pollen as they learned to forage but bees exposed to neonicotinoid insecticide imidacloprid became less successful over time at collecting pollen. “Bees have to learn many things about their environment, including how to collect pollen from flowers…. Exposure to this neonicotinoid pesticide seems to prevent bees from being able to learn these essential skills,” says Raine. Neonicotinoid-treated colonies sent out more foragers, presumably to try to compensate for lack of pollen from individual bees, and they found the flower preferences of neonicotinoid-exposed bees were different to those of foraging bees from untreated colonies. The researchers suggest reform of pesticide regulations, including adding bumblebees and solitary bees to risk assessments that now cover only honeybees. “Bumblebees may be much more sensitive to pesticide impacts as their colonies contain a few hundred workers at most, compared to tens of thousands in a honeybee colony,” Raine says.

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RURAL NEWS // AUGUST 5, 2014

ANIMAL HEALTH 43

UK supermarket supports global parasite project A N D REW SWA LLOW andrews@ruralnews.co.nz

PARASITE TESTING pioneers Techion Group have signed a deal with leading UK supermarket Sainsbury’s to roll out the Fecpak G2 system, not just in New Zealand, but in the UK too. Fecpak G2 removes the need to post parcels of poo around the country for analysis and, crucially, eliminates uncertainty for those who were already doing their own egg counts onfarm (Rural News, June 17). Last week the Dunedin company announced Sainsbury’s will fund 50% of the FECPAK G2 hardware cost of NZ$800, and 50% of the $70/month subscription for suppliers for two years. In the UK meat processors Dunbia and Randall Parker Foods are involved, while Alliance is the processor partner in the project here. “The problem of increasing drug resistance by parasites to the drenches designed to kill them means we have to be smarter on how and when we use them,” says Fecpack founder and managing director Greg Mirams. So it’s important to make use of new technologies to make better decisions. “About 30 Sainsbury’s suppliers in the UK use it as part of the evaluation group and about 15 here – not as many because of the

Talking parasite testing: From right, Phil Hambling (Sainsbury’s), Kevin Brown (Randall Parker UK), Warren Leslie (Farmer), Greg Mirams (Techion) and Lawrence Woodrow (Stock Manager).

seasonality issue. But obviously we’ll start to pick up more now.” By linking veterinary and technical expertise with information generated straight from the paddock (see sidebar) the G2 system allows more informed parasite management decisions, increasing farm profits and lamb performance and reducing treatment costs. Canterbury farmer Tony Plunket, who has already signed up to the project, says it’s an exciting concept. “Testing the old way meant there was too much human error and it was taking too long…. Techion’s system is user friendly and puts accurate information at our fingertips so we can make a decision on the day [as to] whether we need to drench or not.” Another farmer participating is Warren Leslie, South Canterbury. “Animal health is a big expense to me – $6/ stock unit annually – and

I want to make sure it’s money spent wisely, in a sustainable way.” Leslie, who has hosted trials on issues such as tail docking for Alliance, says Sainsbury’s and Alliance’s support for the technology makes good sense. “Getting information and research on available technologies is good, but it’s often a challenge to know 100% whether they work until they work on your own farm system.” Sainsbury’s says it is pleased to support and encourage the rollout of the technology to its sheep farmer producer group to promote efficient, sustainable production while protecting and improving animal welfare. Techion’s initiative builds on a three year EU Parasol Project, started in 2006, with the original Fecpak system which found 74% of users reduced the number of drench treatments in lambs while not negatively impacting

animal performance. Mirams believes the G2 system will achieve even greater results. It has already been evaluated in the UK under the guidance of Dr Eric Morgan, Bristol University. “Our work with the system has shown that Fecpak G2 is highly repeatable in the hands of different farmers in the field,” says Morgan. Alliance general manager Murray Behrent is confident farmers will find the system beneficial and easy to use. “It is high-tech, but Techion have made it simple to get actionable results on a computer, no matter where the farmers are, in a short time.” While Alliance will always do its best in the market for suppliers, the more information and technology it can help them use to gain efficiencies behind the farmgate the better, he adds. “This R&D project helps us do just that.”

Here’s the deal! FECPAK G2 is offered as a hardware plus subscription service – a bit like a mobile phone deal – that allows users to submit samples for analysis over the internet without so much as a pellet of poo going in the post. “Basically you take a traditional dung test, look at it down the microscope and then put it online and a qualified technician reads the image of the sample,” explains Techion managing director Greg Mirams. For those who sent samples away, it will save the time and cost of postage and risk of degradation of samples due to delay between

collection and analysis. “There’s also no danger of the courier losing them,” adds Mirams. For those who’ve been doing their own egg counts it provides Greg Miriam. an independent and auditable check that the farmer, who may only look at such samples a few times a season, is getting counts right. “Effectively it takes away the fear of looking down the micro-

scope and asking yourself ‘do I see what I think I see?’: it’s a confidence issue for those who do their own samples.” Fecpak G2 results are returned online “within hours” and a farmer may opt to make them simultaneously available to his veterinarian, advisor or others in the business. Results can be graphed over time and images of each sample slide are stored, as well as the results, so justification for drench use is auditable with images available for checking later if need be.

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RURAL NEWS // AUGUST 5, 2014

44 ANIMAL HEALTH

North American disease control plan backed A DRAFT plan to allow North America to cope with an outbreak of, say, foot-and-mouth disease, without shutting down the continent’s cattle trade has won US backing from the National Milk Producers

Federation. The plan calls for the US and Canada to cooperate in establishing quarantine areas central to disease eradication during an outbreak. Trade could then resume or continue in areas

considered free of disease. The NMPF, representing 32,000 dairy farmers, says Canada is the secondlargest export market for US dairy products, and an outbreak of a highly contagious animal disease such

as FMD in either country could be catastrophic for the US dairy industry. “We fully support the draft plan and see it as an effective tool for dealing with an outbreak,” NMPF vice president for sustain-

ability and scientific affairs Jamie Jonker says. “It would facilitate continued trade between disease-free areas, while safeguarding animal health in both countries.” Jonker says the NMPF

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would like to see the USDA use this approach as a template for other US dairy export markets including

Mexico, China, Philippines, Indonesia, South Korea and Japan. – Alan Harman

New milk replacer suits calves, kids TWO NEW milk replacer products from NZAgbiz will cut the time and cost of raising calves and kids, the company says. Denkavit Supastart calf milk replacer (CMR) is a new version of the original Denkavit whey product and Denkavit Ankid goat milk replacer (GMR) is a new product. Both are whey-based, an “easy-to-digest protein source for young stock”. “Dutch company Denkavit products were a natural choice,” NZAgbiz says. “Denkavit is a global specialist in young animal nutrition and a leader in the compound feed industry in Europe. They also do R&D… in innovative feed specialties to deliver high grade animal nutrition for the first stages of life.” Denkavit raises 500,000 calves and produces 300,000t of animal nutrition product annually. “Its expertise and ability to customise solutions will suit our local New Zealand market and rearing conditions.” Denkavit Supastart contains whey, wheat and soy “which provide a balanced, cost-effective alternative to the dairy ingredients currently used in most other CMR products,” the company says. “Whey does not have to curd before being digested, so young calves can assimilate their feed faster. Young calves (and kids) can be fussy eaters: if their feed does not smell right, or is not the correct consistency, they will avoid it.” NZAgbiz says Supastart gets past this problem straight away because it’s highly palatable, has a pleasant smell attractive to the calf, is easy to mix and suits all automatic feeders and, because it’s slightly acidic, it counteracts gut-pathogens. “Most importantly, it encourages early rumen development which will set up young calves for a healthy and productive future.” Denkavit Ankid suits rearing kids and fattening stock “and because it’s highly soluble it can be used in all automatic feeders”. “Young kids and goats are selective feeders so a product needs to tick all the boxes before they will eat it. Ankid is highly palatable and easily digested, plus it contains natural oregano oil which delivers a protective antimicrobial effect in the gut to further reduce the risk of digestive disorders.”


RURAL NEWS // AUGUST 5, 2014

MACHINERY & PRODUCTS 45

Taking the risk out of machine wash GA RE T H G I LLAT T

AN AWARD-WINNING electronic sensor system will make dairy plant washing much less risky say its inventors. DTexH2o owner operators Graeme and Alison Franklin took home the prize for most viable business at the 2014 Waikato field days. The system uses electric sensors fitted into a natural acetal housing slipped between pipes to measure the conductivity of the liquid running past. As milk is less conductive than water, the

sensor can detect when the liquid passing it is 50% water and sounds an alarm warning the farmer to divert liquid from the vat. Data from the sensors is transferred to a central control box which will trigger an alarm if a microswitch on the vat valve is still engaged. The entire system can be plugged into a threepoint outlet and takes little time to install. It will help farmers harvest all the milk available without any water sneaking through into the vat and also tells the farmer exactly when

Great for work or play A POWERFUL quad capable of 100km/h is also great for towing says the Australian manufacturer, CF-Moto. Launched in June, the 798cc CF-Moto X8 sets records for speed and towing grunt says the company’s general manager Dale Schmidtchen. It is powered by a V-twin liquid-cooled 798cc engine with Bosch electronic fuel injection. The engine produces 62hp. Towing capacity is 450kg, and it can carry 50kg on the front and 100kg on its rear cargo frame. A 3000 pound tow winch increases on-farm functionality. For sports driving the machine can sustain 100km/h. Indicators, horn and mirror included as standard make it suitable for driving in a group. Power steering is standard to improve handling. With 27.5 cm of ground clearance and independently adjustable suspension, the X8 will perform well over rough terrain Schmidtchen says. A push-button transfer switches the differential between 2WD and 4WD to help the operator adjust the machine’s handling to the terrain and tasks. Continuous variable transmission allows the rider to get on with riding after setting the system to either high, medium or low. Warranty is two years or 15,000km. – Gareth Gillatt Tel 09 263 8307 www.mojomotorcycles.com.au

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to turn the tap in order to maximize milk in the vat that would normally be discharged into the waste. Normally farmers take two different steps during wash up. If their farm’s water quality is poor and they are bound by a water exclusion policy then they will stop milk from flowing into the vat as soon as the wash water goes through, potentially wasting 20-100L of milk each time. But if their farm’s water quality is good then the milker will monitor liquid temperature by holding a

hand on the pipe, diverting liquid from the vat when the temperature gets too low, risking water grades if the milker forgot to divert the liquid. Franklin says the system eliminates the risk in both situations by giving the farmer a clearly defined window when they can stop liquid from flowing into the vat without suffering any repercussions. With an average of 30L lost per milking in even normal circumstances Franklin says the average farmer can lose as much as $14,000 a year. So a system

Graeme Franklin.

could pay for itself in well under 12 months. Franklin says a GEA technician he talked to at the show told him he travelled down a similar

path before deciding it couldn’t be done. Fonterra and QCONZ have given the invention their approval and Franklin says he has been

installing water sensor systems in and around Manawatu and Wairarapa for 12 months. Tel. 0800 383 9426 www.detexh2o.com

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RURAL NEWS // AUGUST 5, 2014

46 MACHINERY & PRODUCTS

Canadian drill ticks many boxes ANDREW SWAL LOW andrews@ruralnews.co.nz

e ge n

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❱❱ Width: 9m working, 4.5m transport. ❱❱ 18cm, 24cm & 37.5cm row-width options. ❱❱ Up to 227kg pressure per double disc opener. ❱❱ Stainless steel peg and brush metering. ❱❱ 4760, 5640 or 6520 litre hopper options. ❱❱ Inter-row fertiliser options. this one, and it’s only a mid-size model in their range!” Styles says the big wheels mean a larger footprint, hence lower ground pressure and smoother ride which is good for control of seeding depth and reduced wear on the sturdy axles. “The stub axle isn’t going to break off, which wouldn’t be the case with many drills. They’re just not built to handle the conditions.” Currently he is pulling the Salford with a 1980s John Deere 8440. While it looks a big tractor, it is only 215hp and with 15,000 hours on the clock it is struggling on some of the steeper hills. “I knew the old girl was going to be at her limits pulling this drill. A new, larger tractor is part of the

long term plan.” With the 8840 he’s been travelling at 8-9 km/h with the drill, a comfortable speed for triple-disc type drills. Seed depth and spacing have proven excellent as has accuracy of the Salford designed metering unit. “Calibrate it for your seed rate, and that’s what it delivers.” At 8-9km/h he was covering 8ha/hr so while it was frustrating not being able to get on after it turned wet in early April this year – “with direct drilling you’ve got to have the ground in the right condition” – he’s looking forward to knocking off the remaining area to sow soon. “It’s going to make the spring work a lot easier and we should get through it relatively quickly.”

One man band Norm Styles at the helm of his JD8440.

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Rollit Feeders In v

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u

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At work the Salford 522 making short work of sowing ryegrass and red clover last autumn.

SOUTH CANTERBURY farmer Norm Styles prefers to employ horsepower to manpower, an approach which saw him buy one of the biggest seed drills in the country earlier this year. It’s a 9m Canadian built Salford 522, imported for Styles by local dealership Paul Wilkins Tractors. But it’s not just the width that attracted him to it: its weight means it can direct drill into his sometimes hard Waitohi clay and Timaru silt loam soils – no mean feat over such a wide working width. It also has an aggressive action, Styles having chosen a wider-fluted preopener disc than standard, effectively working a 5cm channel of soil for the following disc openers to place seed into at precisely the depth he sets. Downward pressure on the coulters is adjustable from 18-227kg (90-500lbs) even over the narrowest row spacing of 18cm, which is the option Styles has chosen. The seed hopper holds about 4.5t of seed wheat, enough for him to drill all day without having to fill up, something he couldn’t do with most New Zealand made drills, even though they have much narrower working widths, he notes. Price was another factor in the Salford’s favour. “It was relatively sharp for the amount of machine you get compared to a New Zealand built drill,” he comments. He’s not planning to do any contracting with the machine, so how does he justify such a massive tool

on a property of 400ha, of which about 300ha is cropped? “It’s a good question but I believe in horsepower. You can spend an extra $50,000/year on extra horsepower and machinery if you don’t employ someone and for me that’s better than money spent on a man. Horsepower gets the work done quickly and easily, and it keeps things simple.” The drill has replaced a 3m (10 ft) triple disc Duncan Enviro which he also used as a direct drill. That had the option of putting fertiliser ‘down the spout’ with seed, which is also an option on the Salford, but it wasn’t something he was routinely doing with the old drill anyway. “I’ve been applying fertiliser ahead of the drill for more than ten years and been happy with the results, so why change?” Paul Wilkins, who imported and assembled the drill for Styles, notes most wide drills on the New Zealand market are 8m, and not nearly as heavily built. “This is an altogether bigger structure. I’ve not seen any others up on tractor-size wheels like

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RURAL NEWS // AUGUST 5, 2014

MACHINERY & PRODUCTS 47

Good spraying progress for farmer/contractor AN OTAGO farmer and contractor reckons he is efficiently spraying at an average speed of 12km/h with a new sprayer he bought last September. Macraes Flat farmer-contractor Kent Tisdall bought his Hustler Genius sprayer to replace a truck that had been his spraying ‘mainstay’. Since buying the Hustler, Tisdall has sprayed 200 ha on rolling country at an average speed of 12km/hr.

He is mainly spraying Roundup with Granstar and Verstill to help combat the clover and says the 1000L tank with 12m fully hydraulic folding boom and Raven GPS are going well. “It is simple and easy to use and the GPS is easy to set up and follow,” he explains. “I have also used it for spreading fertiliser”. Tisdall says the induction hopper saves him lugging chemical contain-

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ers to the top of the sprayer. He powers the rig with a John Deere 6930 155hp tractor for his spray work. “The boom seems good and sturdy and the self-levelling follows the contour well. “The boom foldup is excellent especially around the rocks. It allows you to spray at 9m if need be and the auto rate is a good for maintaining the application rate well.”

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RURAL NEWS // AUGUST 5, 2014

48 MACHINERY & PRODUCTS

Co-op model builds platform for growth FARM MACHINERY co-op, Origin Agroup is celebrating its tenth anniversary. Set up in 2004 by a group of independent farm machinery retailers it imports and distributes farm machinery to its member shareholders. Over the past 10 years of operation Origin

Agroup has experienced formidable growth and has firmly positioned itself and its products on the market, the company says. This rapid growth and expansion would not have been achieved by any other business model, says managing director David Donnelly. “Quite simply our suc-

cess is contributed to the fact we adopted a cooperative business model with cooperative principles and ethos which fairly represents the shareholder members and their customers interests,” he says. “Cooperatives are founded on strong values, and we put them into practice every day. With

relationships built on trust, co-ops enable the member owners, customers and suppliers to work together to serve everyone’s needs.” Donnelly believes that trust is the glue that holds the member owners of a cooperative together. “It’s vital to the success of Origin Agroup as we

create and develop longterm relationships with our customers and suppliers from all around the world. “Our objective is to ensure that New Zealand farmers and contractors get the best possible equipment, that the machinery they need will be available when they

Origin Agroup’s David Donnelly.

group is poised for further product and distribution expansion but emphasises the fact that Origin Agroup has successfully been here for the past ten years and will be here for the future. “It was a logical decision to provide the industry with an alternative supply of products and services to the farm machinery market which could look after its retailers with an exclusive range of products more fairly and the co-op structure is a proven business model which achieves this. “We knew 10 years ago that simply starting up a new company to import farm machinery and introduce new products would be difficult, so we needed a point of difference that would benefit both the farm machinery retailer and their customers and the Cooperative model would provide this difference”.

need it, and that they will be well looked after by the members of the Origin Agroup cooperative with service and parts when they need it most.” Origin Agroup imports its products directly from overseas manufacturers on exclusive market distribution agreements; this provides shareholder members and their customers with a competitive range of quality products. Origin Agroup distributes many successfully recognised European brands of machinery which include Pottinger cultivation, seeding and harvesting equipment; Alpego power harrows, rotary hoes, mulchers, seed drills, and sub-soilers; Dal-Bo cambridge rollers and disc harrows; Manip tractor front end loaders; Bogballe fertilizer spreaders; HatzenbichleR air seeders and harrows and Tatoma mixer wagons. Donnelly says the MS1502

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RURAL NEWS // AUGUST 5, 2014

MACHINERY & PRODUCTS 49

Maize grower goes for bigger, wider, stronger discs maize each year for silage, selling mostly to local dairy farmers and some to a customer 25km away. He also works as a salesman for Whyteline Ltd Case IH distributors at Paeroa. “I do all my own ground preparation and planting and leave the harvesting to contractors so time is of the essence,” said O’Brien. He had upgraded his tractor to a Case IH Puma CVT of 230hp to help him do the work in a timely manner. He also wanted a

machine to complement the tractor to get the ground ready for the new season’s planting. He chose a set of trailed offset discs with vertical folding for travelling. His machine has a 4.7m working width with scalloped discs at the front and plain discs at the rear. Both lots of discs are 660mm diameter with 260mm spacing. It hydraulically folds to 3m for travelling. “I have a manual system to alter the cut but

there is a hydraulic option available.” There is also hydraulics on the wheels for depth control and to raise the discs from the ground for travelling. Machines are available for working widths of 4.5m to 5.8m and discs options of 730mm and 810mm diameter plain and scalloped. Tractors with a minimum 200hp are recommended. “The discs are a perfect match for the tractor and I only need two passes to finish the job, and then with a quick pass with a power harrow the ground is ready for planting.” Tel. 09 275 5555 www.farmgard.co.nz

Terry O’Brien with his Razol trailed offset discs.

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ON DISPLAY at the Farmgard site at the recent Waikato field days was a large set of Razol trailed offset discs, owned by Terry O’Brien of Springdale, between Morrinsville and Te Aroha. He has had them for one season and loaned them back to Farmgard for the field days. Razol is a French company that makes tandem and multi-discs, rollers, rippers and subsoilers – built bigger, wider and stronger to make the most of highpowered tractors. O’Brien grows 60ha of

“The discs are a perfect match for the tractor and I only need two passes to finish the job.”

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RURAL NEWS // AUGUST 5, 2014

50 MACHINERY & PRODUCTS / RURAL TRADER

Faster, smarter data is WiFi -ready GALLAGHER SAYS its new TSi 2 Livestock Manager is faster and smarter than its ground-breaking SmartTsi launched in 2008. The only touchscreenoperated integrated weighscale, computer and animal management system on the market, the TSi 2 Livestock Manager has a processor twice as fast as the previous unit. Product manager Dan Loughnane says the company talked at length to farmers in developing the

TSi 2. “It has much more memory and power and this means it can quickly store, analyse and transfer animal data in the yards.” It also locks in animal weights much more quickly during weighing sessions. “For example, the new fast weigh feature is designed specifically for weighing sheep and enables weights to be locked in 2.7 times faster than in standard mode. This allows big increases in stock throughput.”

Another key improvement in the TSi 2 is WiFi connectivity, allowing animal data to be immediately transferred to the web. “This is ideal for farmers who want to quickly send information directly to third parties such as NAIT.” Higher processing speed and memory make it easy for farmers to find information quickly and with minimal fuss. The TSi 2 can store at least one million animal records, allowing the

entire life history of animals to be saved for onfarm viewing. It is supplied with Gallagher’s Animal Performance Software (APS Professional valued at $1378 inc GST). Like the SmartTSi, the TSi 2 is ruggedly constructed. It can be integrated with loadbars, EID readers, auto drafters and other management software. It has an outdoorreadable touchscreen with large buttons and an intuitive user-interface.

The TSi2 Livestock Manager is the only touchscreen-operated, weight-scale, computer and animal management system on the market.

Gallagher marketing manager Mark Harris says the TSi 2 helps farmers take the guesswork out

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RURAL NEWS // AUGUST 5, 2014

RURAL TRADER 51 FLEXISKIN RAINWEAR & RAINWALK SALE! OFFER AVAILABLE 2 WEEKS ONLY! COMFORTABLE, HIGHLY BREATHABLE & LIGHTWEIGHT! $48 valued at

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