MANAGEMENT Ewe Hoggart Awards toast top sheep breeders. PAGE 28
MACHINERY Taranaki contractors really know their stuff. PAGE 34
RURALNEWS
NEWS WorkSafe already getting offside with farmers – report.
PAGE 10
TO ALL FARMERS, FOR ALL FARMERS
JUNE 16, 2015: ISSUE 586
www.ruralnews.co.nz
Not if, but when! PAM TIPA pamelat@ruralnews.co.nz
MILK PRICE recovery is more likely in 2016-17 than this season, says Rabobank director of dairy research Hayley Moynihan. The recovery is a question of when not if, Moynihan told Rural News. “The timing of the recovery will depend on how much of that price improvement is seen in the 2015-16 season and how much is seen in the following season,” she said. “Rabobank still expects it will be largely a 2016 recovery therefore a dramatic lift in this season’s milk price is unlikely but recovery should be seen in 2016-17.” Moynihan says production lifts are
still being seen in Europe, the United States and the tail end of the New Zealand season was much stronger than initially expected. “The rate of increase is starting to slow slightly but it is still increasing.” This is contributing to the delay in price recovery. The European Union is boosting production after the lift on quotas, as predicted. Those countries which geared up for the removal of quota have seen strong increases in production but lower
prices are curtailing their enthusiasm. “So production is growing but not as strongly as it could be if we were in a higher milk price environment.” Synlait announced its forecast milk price for the forthcoming 2015-2016 dairy season at $5.50 kgMS. “Despite the small recovery in commodity prices we saw earlier this year, the market has not delivered the stability we had hoped for,” said John Penno, Synlait managing director.
“We’re very aware of how financially tough this current season is for our suppliers. We are confident commodity prices will recover over time and our 2015-2016 forecast milk price assumes we will see the beginning of this recovery from the current low prices.” “The global oversupply is being met by soft demand across the board. This creates a lot of uncertainty in an already volatile market, so it will remain a fragile environment for the immediate future.”
A CHIP OFF THE BOSS'S LUNCH Prime Minister John Key pinches a chip from the lunch of Mark Hohneck, who was getting it for his boss on the Diesel Performance Solutions site at Fieldays. The PM visited many of the sites on the first day of the show, and was repeatedly asked to pose for photographs and selfies, which he willingly did. Key spent much of the first day at Mystery Creek in the company of Ministers Nathan Guy and Steven Joyce. Key was there to officially open the Fieldays. More on what the PM had to say about farming on p3.
FULL OF SURPRISES KPMG’S IAN Proudfoot says the biggest surprise for him when compiling the latest Agribusiness Agenda was the discussion on what the future dairy industry might look like. He didn’t expect to have the level of conversation fundamentally about how much milk Fonterra will end up collecting. “It’s a conversation that has definitely come up in the last 12 months and I think it’s from seeing well-capitalised companies come into the industry with the potential to change the industry,” Proudfoot told Rural News. “It comes from real concerns about whether Fonterra is adding value, and the general answer is that there is a lot more they could be doing.” Proudfoot says the other surprise for him was seeing broadband climb the list to second equal – indicating it is a core issue for the sector. “We can see the productivity opportunities in technology, its environmental potential and what it can do to strengthen our communities. If we can get rural broadband right, we can transform the rural environment, create new jobs and generate more wealth.” Proudfoot points to a growing realisation of the need to inspire young people to make a career in agriculture and to help them understand the sector. – Full report coverage pages 6 and 7
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RURAL NEWS // JUNE 16, 2015
ISSUE 586
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More innovation needed – PM PETER BURKE peterb@ruralnews.co.nz
PRIME MINISTER John Key says the lower dairy payout brings an even greater need for innovation in the primary sector. Opening the 47th National Fieldays at Mystery Creek, Key noted that the theme of the event – innovation – was appropriate and critical for New Zealand to keep its place as a leading producer of primary products and for the economic survival of many people. The PM says NZ is now using science to do many things better, such as producing more and better lambs from fewer ewes and improving their survival rates. “All sorts of businesses here at Fieldays are geared to basically improve the productivity and profitability of what is happening on farm. If you walk around the 1000 displays here, a lot of them
have an innovation or science bent. NZ productivity on farm has been dramatically rising and businesses are becoming a lot more productive. It’s one of the reasons why they are able to cope with a higher exchange rate.” Key says everyone knows dairy is going through a tough time, but last year dairy farmers were looking at an $8.40/kgMS payout. “It feels a bit tough now when our poor old dairy farmers are looking at a payout that’s got 4 in front of it. That shows why it is so important we keep innovating on farm because we can’t stop the cycles of commodity prices and the variation of exchange rates. “But it’s at the toughest of times that we have to keep investing on farm and using that research and new techniques to make sure we lift profitability in what we are doing. Dairy farmers are probably feeling a bit nervous at the
moment, but I am told things are going to recover.” Key says the news that Fonterra is to shed staff and that its performance is being questioned is healthy – inasmuch as it’s the [farmers’] right to challenge the board and make sure they [the farmers] feel comfortable with its directions and decisions. But Key says it’s not for him to make a judgement as he is not an owner of Fonterra. He sees a lot of good things coming out of Fonterra. He is also impressed with the efforts of the other primary sector groups, and he singled out kiwifruit as a sector that is picking up. “It wasn’t that long ago that PSa was wreaking havoc in the kiwifruit industry. Today we are seeing kiwifruit doing immensely well,” Key says. @rural_news facebook.com/ruralnews
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 81,188 as at 30.06.2014
Tough times ahead? Europe’s largest dedicated cropping event was held in the UK, last week, with dozens of new tools and techniques unveiled. But it wasn’t all good news for farmers visiting Cereals 2015 who were warned legislation and resistance would likely leave them with few if any effective fungicides for wheat and barley in as little as a decade. More in Rural News’ July 2 issue.
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RURAL NEWS // JUNE 16, 2015
4 NEWS Agribusiness sector future prospects looking bright PETER BURKE peterb@ruralnews.co.nz
MPI’S DIRECTOR of sector policy Jarred Mair says despite the short term downturn, the fundamentals for the New Zealand primary sector remain very strong. In its latest Situation and Outlook for Primary Industries (SOPI), MPI predicts export revenue from the primary sector will rise from their estimated low for 2015 of $35.2 billion to $41.3b by 2019. Mair puts this confidence down to population growth in our key export markets in South East Asia and says it could also be helped when the TPP is finalised. He adds that NZ is in a strong position because of its largely grassbased production system and its reputation as producer of quality food.
While dairy accounts for 40% of primary exports, Mair says NZ is not overly dependent on it as the country has a strong mix of other primary products. Though the Chinese market is challenging, South East Asian markets are strongly resurgent and there are new opportunities in Africa. “Where there are big impacts in a global sense we will be exposed because we are predominantly an export nation. We are in a transition period, moving from a commodity base to higher value product, be that through ingredients or consumer products.” Mair says this is probably the biggest trend MPI has seen in the last two years and one that will continue for the next two three years. – Full report on SOPI page 8
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Zespri chief executive with examples of red, green and gold kiwifruit.
Back where it belongs! THE KIWIFRUIT industry is just about back to where it was before PSa, says Zespri chief executive Lain Jager. He says this year will have seen a recovery of gold kiwifruit to 32 million trays, almost the same as in the days before PSa and triple the low of 11 million trays in 2012. Jager told Rural News at Fieldays that the recovery is tremendous news for New Zealand kiwifruit growers, who have seen land prices recover and a huge sense of optimism in the industry. Zespri operates at a significant competitive disadvantage costwise relative to its main southern hemisphere competitor Chile, Jager says. “That means we can’t be the lowest cost producer, so we have to brand our product, position it at a premium level in the market and focus on quality and taste. That gives us the opportunity to have great fun
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with innovative marketing programmes around the world.” On innovative marketing, Jager says Zespri is tremendously pleased with the marketing they have developed with McDonalds restaurants in Mexico. “That’s a fantastic position for us because it’s about health and kids having fun and we are hugely excited about that.” A Zespri strength is the close relationship between growers and the marketing arm of the company, Jager says. This is vital to building a strong brand producing a premium product and securing good prices for growers. “The Zespri brand is now the fifth strongest brand in fruit globally. That’s remarkable because it’s only been in the market since 1998, so it’s still a new brand. But it is strongly supported by growers with promotional funds: this year 77 cents/tray for green kiwifruit and over $2 a tray
for gold. “Growers are investing in promotion and support of that brand and that means consumers can recognise our quality through the brand. It’s all part of the value proposition that says ‘here’s a premium, healthy fruit and this is what Zespri means in health and vitality’. This is giving us recognition and excitement in the markets and powering our growth.” Jager says Zespri spends $20 million on R&D each year, half of which goes on plant breeding. It is now developing a new variety of red kiwifruit and test marketing it in Australia and Singapore. “Red kiwifruit is very challenging commercially because it’s small. It’s a short-storing variety but we know consumers want red kiwifruit. We are working with Plant and Food Research to breed bigger, longer-storing, vibrant highly flavoured red kiwifruit.” – Peter Burke
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RURAL NEWS // JUNE 16, 2015
NEWS 5
Fonterra to wield the axe FONTERRA IS set to cut hundreds of jobs from head office as it undergoes a major review of operations. Meanwhile, there’s not a lot of inventory of milk products globally and buyers will have to come back, says Fonterra’s chief executive Theo Spierings. He can’t promise that will happen in the next month but it will happen at some stage, Spierings said in an interview with Radio NZ last week. He said a business plan will go to the board this week, then to farmers. His management team is also heading an ongoing, wider business plan that will lead to “trimmed sails and an aligned crew” and “we will win this race”. The ongoing review of Fonterra begun in December is led by Fonterra’s own talent with outside consultants with a global view, he said. Fonterra needs more people selling in market and fewer people in support and group functions. That would have “consequences” but was part of trimming the sails. Spierings was asked whether the co-op’s marketing took full advantage of the appeal of New Zea-
or the Middle East can have a big impact, as can weather in production regions. While he was concerned about demand, Spierings said Europe’s production had only increased about 1% since quotas were lifted and the US was scaling down. “There’s not a lot of
inventory around. People have to come back… the demand will come back. I am not going to say it will lift in the next month but it will come back.” Meanwhile all the cash Fonterra can find will be assigned to the balance sheet and hopefully will end up in farmers’ hands, Spierings said.
Fonterra chair John Wilson and PM John Key at Fieldays last week.
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land’s pasture based systems. He said Fonterra’s milk commands a 20-30% premium in markets because of its appeal, but more of that is needed. Spierings says the coop’s review is looking at everything. In the last four years Fonterra has increased it milk production by 22%, 80% of which came from within New Zealand and 20% from outside. Fonterra had a 10-12% return on capital from its global business; if it could run that at 13% it would have a very strong performing business. Spierings was questioned on whether farmers were pushed too hard to boost production, raising their cost structure, and whether the focus should have been on value added premium products. But Spierings said they require scale to “have a ticket to the game”. Volume and value must both be boosted. In this financial year 26% of milksolids were sold on GDT, an increase of 40%; that should lead to a stronger milk price, he said. However China was playing a waiting game, Russia was locked up and the Middle East had geopolitical troubles. Fonterra needs a clear eye and view of the markets because change in Russia
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RURAL NEWS // JUNE 16, 2015
6 NEWS: AGRIBUSINESS AGENDA
Primary sector’s shortcomings outlined The New Zealand primary sector is lacking in a whole lot of key areas, according to the latest KPMG Agribusiness Agenda. These include the lack of a long term vision for the sector, quality broadband, a pan industry strategy to get more and better qualified people into the sector and a failure to understand the implications of the new regulatory environment – especially on health and safety. Peter Burke reports. KPMG’S LATEST ‘Agribusiness Agenda’ cites a number of problems for the New Zealand primary sector. The 68-page report, by firm’s global head of agribusiness, Ian Proudfoot, for release at National Fieldays, points to the need for NZ to get closer to its consumers, that many New Zealanders don’t understand the meaning of ‘primary industries’, and that more work is needed to establish strong NZ brands. It also says that developments in the dairy industry were top of mind for the 300 people who contributed to the report. Proudfoot says it’s time for a conversation about the future of the primary sector – no more putting it off. “Without some simple and engaging communication that explains what the primary sector does, how it does it, and how the community benefits, there is little prospect of making progress on
the key issues for the industry. “Without an engaging vision for the industry, it is challenging to ensure consistency of policies and initiatives throughout government. A vision can make it easier to attract talented people and farsighted long-term investors to the industry.” Each year, respondents to the KPMG ‘Agribusiness Agenda’ are asked to rank the top issues facing the primary sector. Not surprisingly biosecurity is at the top of the list and food safety is second equal with the need for high speed broadband in rural areas. Broadband has jumped four places in the last 12 months and is seen by industry leaders as critical to the sector. Proudfoot says people expect NZ agricultural businesses to deliver value from 21st century markets, yet we’re only providing them with 20th century communication services.
“Fast connectivity in rural areas not only supports economic growth. It enhances healthcare delivery, overcomes isolation and enables the unemployed to develop skills and become productive. In my view it was not surprising the issue rose up the priority ranking in this year’s survey.” Proudfoot says a consistent view is that greater intervention is needed by national and local government to overcome a fundamental market failure and secure greater public benefits than are now being achieved by current rural broadband initiatives. On food safety, the report refers to the need for NZ to be proactive in setting standards, which must be regularly reviewed to retain global leadership, deliver a competitive advantage to our companies and preserve consumer trust. “In food safety, NZ cannot afford an
Report author KPMGs Ian Proudfoot.
average performance. Our economic prosperity relies on the trust we earn from being ahead of our competitors. Premium consumers are increasingly
focused on the link between illness and residues and chemicals in their food, making it critical we fully understand what we are selling,” says the report.
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RURAL NEWS // JUNE 16, 2015
NEWS: AGRIBUSINESS AGENDA 7
The people problem RANKED SIXTH in importance by industry leaders is the need to develop future leaders. KPMG’s Ian Proudfoot says the primary sector needs people from a diverse range of backgrounds – including app developers and consumer experience experts, as much as scientists and farm labourers. “There is no silver bullet for attracting people into a primary sector career given the low profile the industry has in schools and the historic perceptions of those who influence career choices. “The recurring theme of our discussions was that the issue is too big for any single organisation to address [by itself]. “There is an urgent need for a well-designed, carefully messaged and widely communicated panindustry career awareness initiative. It must explain what the primary sector is, what it produces, who it sells to and what it contributes to New Zealand. It must be clear that the industry offers a huge diversity of career options – jobs that require
DAIRY SECTOR COMES UNDER THE SPOTLIGHT
Special agricultural trade envoy Mike Petersen (left) and Fonterra director Michael Spaans were some of the 200-plus guests from the ag sector who attended the launch of KPMG’s Agribusiness Report at Fieldays last week.
many different skills, with ambition and a desire to succeed as the only common attributes.” Proudfoot says any strategy must lift the engagement with schools and universities, especially in cities where young people gain only limited insight into the primary sector and are presented with few obvious pathways into careers.
He says sector leaders need to get into schools and tell students their career stories, and companies need to support teachers to incorporate primary sector themes into the curriculum. School camps need to become farm stay experiences, and urban farms developed to enable every kid to gain industry awareness.
ONE CONCLUSION of the business leaders interviewed for the ‘AgriBusiness Agenda’ was a drop in confidence in the overall primary sector, caused mainly by the current woes of the dairy industry. The report notes that the scale of the decline in milk prices this year has shaken the belief of many that a step change had occurred in commodity prices, driven by insatiable demand for milk products from consumers in emerging markets. Proudfoot says the key
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8 NEWS
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DESPITE THE gloom that hangs over the dairy industry at present, the Ministry for Primary Industries is predicting a much brighter future for the primary sector in four years. In its latest Situation and Outlook for Primary Industries (SOPI), MPI predicts export revenue into the primary sector will rise from its estimated low for 2015 of $35.2 billion to $41.3b by 2019. The report says the current dairy market volatility will continue in the short term and predicts export earnings from dairy to remain much the same for this and next season, before lifting by 2017, with this trend continuing over the following two years. Earnings for meat and wool are estimated to be $8.7b this year and to move only marginally upwards by 2019. Earnings from horticultural exports are expected to rise due mainly to growth in exports of kiwifruit and wine. Forestry exports will lift from their present $4.6b to $5.3b by 2019. The report acknowledges the challenge to the sector with dairy exports dropping 22% and forestry 10%. But it points out while overall export
earnings for 2015 will be down by 8% to $35.2b, the situation is less dire because of growth in meat and seafood exports. Of MPI’s priorities, biosecurity and food safety are predictably at the top of the list. The report notes that MPI has increased its staff in China to five to enhance market access and that it has established new positions in Indonesia and Dubai. Two more staff are learning Mandarin in preparation for working in China. The SOPI report covers all the industry sectors in some depth and gives a good insight into MPI’s view of their future. In the meat and wool section, MPI predicts an ongoing decline in sheep numbers from the present 28.9m to 28.7m by 2019. Over the same period, lamb exports are forecast to increase slightly to $2.2b while beef will drop slightly to $2.7b. Wool exports are expected to increase from $7.81m to $8.53m by 2019. MPI says sheepmeat prices have been suppressed by softer international prices and the drought in New Zealand, while beef prices, which peaked this year, will soften in response to growth in world supply. Dairy now earns 40% of NZ’s pri-
mary export revenue and the report notes the well-documented reasons for the price drop last season and predictions of the same again this season. It also notes how much NZ now depends on China, which now takes 21% of our dairy products – way ahead of our number-two importer the USA, which takes just 8%. MPI believes the present problems will persist in the short term, but this will change in the long term. It points to the relaxation of the one child policy in China and says the consumption of dairy products there and elsewhere Asia remains well below global averages. MPI says while local dairy production in China is expected to increase to 48m tonnes by 2024, consumption will be 63m tonnes a year. The rapid rise in the export of gold kiwifruit is boosting the sector’s export earnings. In 2014, kiwi gold earned $198m, but by 2019 this will have at least trebled to $682m. Conversely, green kiwifruit exports, which earned $612m in 2014, are expected to increase to only $643m by 2019. However, while total exports of gold kiwifruit will be up, MPI predicts the price per tray will fall to $13.80 from the high of $17.20 last season.
Check out the latest news and information at www.ruralnews.co.nz
RURAL NEWS // JUNE 16, 2015
NEWS 9
Big boom tipped for sheep milk SUDESH KISSUN sudeshk@ruralnews.co.nz
SHEEP MILK has the potential to become a $200 million industry within 10 years, says Waikato Innovation Park chief executive Stuart Gordon. A new $5 million FoodWaikato wet processing plant opened last week will help grow the sheep milk sector, he says. One of its first sheep milk customers is Spring Sheep Dairy, a joint venture between Landcorp and businessman Scottie Chapman. The company will use the dryer to make value added sheep milk products for export. Gordon says FoodWaikato is keen to help grow the sheep milk industry. “There is a real opportunity to grow the industry to a $200m business. Spring Sheep Dairy is growing markets and supply, we will be manufacturing for them,” he told Rural News. The new plant is expected to inject an extra $38.5m per year in export revenue back into the New Zealand economy from the sale of new, valueadded consumer products directly produced there. The first stage of the plant, a spray dryer, was opened in May 2012, funded by Innovation Waikato Ltd and a Government grant of $3.95m. It cost $12.8m to complete. Gordon pointed to the success of the Hamilton Diary Goat Cooperative, which used the FoodWaikato dryer while build-
ing its second dryer. “There is no reason why the sheep milk industry cannot achieve something similar to dairy goats,” he says. “We try to get people to build markets and supply, at the same time providing bridging manufacturing facilities. We keep them going for three to four years and when they have enough market and supply, they set up their own plant and move on.” Dairy Goat Co-op turned to FoodWaikato when its first 1 tonne/hour dryer reached capacity. Gordon says Food Waikato allowed the co-pop to build its supply and markets and invest in a new dryer while helping with processing goat milk. FoodWaikato’s second stage was largely funded by a $3m equity injection from Callaghan Innovation and is not just limited to milk processing. It allows specialty ingredients such as vitamins, minerals and oils to be wet blended with milk or fruit juice prior to being spray dried. “The functional and regulatory constraint of the plant as it was, meant we were limited to processing liquids in the form they arrived in at the site, which created challenges for many of the target firms FoodWaikato was created to assist,” says Gordon. “Higher value products like infant formula and aged care formula tend to involve mixtures of ingredients, but mixing offsite and transporting to FoodWaikato created regula-
tory, product integrity and processing challenges. “So we have added ‘wetside’ processing capability that now allows the mixing process to be done onsite, meaning Food-
Waikato can now provide a greater level of development and innovation capability to dairy companies – cow, goat and sheep – and to fruit and vegetable producers.
Scottie Chapman, chief executive Spring Sheep Dairy, talks with Steven Joyce and Hamilton East MP David Bennett at the new plant last week.
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ECONOMIC DEVELOPMENT Minister Steven Joyce says high value products will help the country grow its wealth. Speaking at the opening of the new plant at FoodWaikato, Joyce said the new plant will help develop higher value products, dealing with products valued at $20,000/t rather than $2500/t. This makes sense, he says, because 3 billion people – in Southeast Asia, China, South America and North America -- are within one long-distance flight of Auckland. “This is our expanded neighbourhood; our job is to go there and take up opportunities, producing high value products.”
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RURAL NEWS // JUNE 16, 2015
10 NEWS
WorkSafe already getting offside with farmers GARETH GILLATT
OVERLY OFFICIOUS inspectors and difficulty finding the time to do paperwork are coloring farmers’ impressions of WorkSafe NZ, according to farmers.
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farmers rather than enforcing regulations, farmers claim that some inspectors haven’t seen this ‘memo’. One such farmer is David McGaveston, a Nelson sheep and beef producer. WorkSafe brought a charge against him for
not wearing a helmet when he suffered a serious quad accident on his Tapawera drystock farm in September 2014. His quad had flipped on flat-to-rolling ground, breaking his back and crushing his chest and
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abdomen. And he says those weren’t the full extent of his problems. He says he learned that the then local inspector was ‘engineering circumstances’ to bring a charge against him, during a visit by this inspector one or two days after the accident, when he was heavily sedated with morphine. “My wife heard what was going on, grabbed phone and asked him if he any compassion,” McGaveston says. “[The inspector] told her he had every right to interview me and said he could have talked to me in the hospital if he so wished.” All this despite him being the farm owner, having sustained no head injuries and not having before faced a penalty for not wearing a helmet. “He wanted to make example of me.” The couple took on a lawyer and made a formal complaint about the inspector, but McGaveston says it still took over four months and a change of area inspector before they were cleared. “The inspector lost his job because of his treatment of our case and another case. “The new inspector was very, very good.” However, farmers elsewhere have reported interacting with inspectors travelling in nondescript rental cars, which some industry leaders say points to an attempt to regulate rather than educate. Beef + Lamb NZ chairman James Parsons says a farmer at a recent Far North BLNZ field day challenged the organisation to get involved and assist famers with this problem. Parsons says he and other BLNZ senior staff have often engaged with WorkSafe, government ministers and politicians on this issue and will continue to do so. “BLNZ fully supports the Safer Farms goal of reducing farm deaths 25% -- from 17 per year to
13 per year, and to reducing serious injuries.” Parsons says the debate is not about what or why, but is instead about how. “Our offer to WorkSafe and the government is that we develop a code of practice designed by farmers for farmers, and together promote a safety culture rather than a compliance culture built on fear.” Al McCone, of WorkSafe, sees a problem in the best-practice message now being communicated to farmers by some service providers: he says the message makes sense to larger operations with several staff, but not to husband/ wife operations, or those with one worker or even contractors. “If you’re a small operation the only paperwork you need to do is to keep an accident register and make a diary note of your conversations on health and safety with contractors, staff and visitors.” Dargaville dairy farmer Mark Woodcock says he had not heard about the new requirements until two months ago and didn’t know the specifics till he was visited by three WorkSafe inspectors at the end of April. Woodcock says the trio discussed with him, in a very professional manner, the required policies and record keeping. But when he asked them for the specific paperwork, they told him to visit the saferfarms.org.nz website – a rigmarole he says. It’s a challenge, Woodcock says, despite his having a business management degree, experience with computers and being at the younger end of the farm owner demographic. This is especially pertinent given the time constraints of trying to run a farm, Woodcock says. McCone says if anybody is interested in getting a starter kit they can call 0800 030 040 and order one.
RURAL NEWS // JUNE 16, 2015
Farming in denial – O’Connor
NEWS 11
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PETER BURKE peterb@ruralnews.co.nz
LABOUR’S PRIMARY Industries spokesman Damien O’Connor claims there’s been a lot of misunderstanding about what is or is not in the Health and Safety Reform Bill and says that’s no one’s fault. O’Connor is not a member of the transport and industrial select committee which is dealing with the bill, but he’s well aware of the issues and the feeling in rural communities. He’s been approached by farmers upset at some of the provisions in the bill as it stands. “Farmers are certainly concerned without knowing the actual details, so there has been a lot of hype around this,” O’Connor told Rural News. “The question of not being able to put another person on a quad has been the centre of debate and there will no doubt be many other things regarding processes – such as dealing with visitors to farms – that are
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RURAL NEWS // JUNE 16, 2015
12 NEWS
Hayley’s star rises at Rabobank PAM TIPA pamelat@ruralnews.co.nz
THE MARKET downturn in dairy is among foremost concerns for Rabobank dairy research director Hayley Moynihan as she steps into the newly created role of the bank’s general manager Country
Banking. She is sure the bank has the right support systems in place for dairy farmers in its 33 branches, but a first priority will be to ensure the bank stay aligned to farmers needs in all sectors. Moynihan told Rural News the new role of
general manager Country Banking had been created in recognition of the size of the New Zealand business now. She grew up on a dairy farm in Karamea on the West Coast and has spent her entire career in banking and agricultural markets, the last 10
years as an agricultural economist. She worked in the food and agribusiness research and advisory division, most recently as director of dairy research, New Zealand and Asia. Moynihan, B.Appl.Ec., Massey University, and M.Sc (Agr.) University of London/Imperial College,
worked in banking while studying extramurally. Before joining Rabobank’s research team in New Zealand she led Rabobank’s London food and agribusiness corporate credit team. Her previous nine years were as a rural and retail banker at Westpac
THE LONG.
and Trustbank in New Zealand. Moynihan says the new role is a return to banking and the finance side of the business which she looks forward to. “The current challenges facing dairy notwithstanding, New Zealand has one of the world’s most dynamic and successful agricultural industries, with a positive and exciting long term outlook in the global markets,” she says. Subject to regulatory
Hayley Moynihan Rabobank’s new Country Manager for NZ.
approval from the Reserve Bank of New Zealand, Moynihan will start in the role from July 2.
CONCERN FOR FUTURE OF DAIRY FARMING
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A DAIRY farm consultant says he is worried that this season’s low milk price will tip some young, innovative dairy farmers out of the industry. James Allen, of AgFirst, Waikato, says the most vulnerable are new variable or lower order sharemilkers just starting in the industry. Allen did a study some years ago for DairyNZ on the state of sharemilking and is widely regarded as an expert in this area. He says variable order sharemilkers in the 2013-14 season would have had the benefit of the higher $8.40 payout and the resulting retrospective payments. But he says those starting out in the past year and this new season wouldn’t have had the benefit of a good year. “I feel very sorry for them because they have started out with an extremely low profit and in some cases a cash loss this year. My concern is how those guys are going to manage their cashflows to survive. We don’t want to lose good prospective farm owners,” he told Rural News. Allen says the key issue with a variable order sharemilker agreement is that it’s a percentage based agreement and many of these were negotiated well in advance of the season when payout expectations were very good. He says the option of re-negotiating a contract is limited. “There is no harm in bringing the situation up with the farm owner and seeing what capacity there is to renegotiate the contract. Of course, the farm owner is going through the same issues in terms of a drop in payout so they are going to be equally affected,” he explains. “So at issue is the capacity and willingness of the other party to look at some sort of contract renegotiation but there are no guarantees or legal requirements to renegotiate.” Allen says people who go sharemilking need to understand that by doing so they are accepting risk. He says the only alternative to mitigate such risk is to go to contract milking where people are not caught out by the low prices. “Last year many of the contract milkers were feeling quite aggrieved about missing out on the $8.40 payout, but this year they are pretty happy about life.” Allen says the key message is expect more volatility.
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RURAL NEWS // JUNE 16, 2015
14 NEWS Check out the latest news and information at www.ruralnews.co.nz
Better data, more choice PAM TIPA pamelat@ruralnews.co.nz
ONE WAY of getting more choice and better agri-chemical products to market is to improve the data protection for companies, says Agcarm chief executive Mark Ross. This is the protection of information supplied to regulatory authorities in support of registrations of innovative agricultural compounds, new uses and reformulations of existing registered compounds, and reassessments of existing registered products. Ross told Rural News that with a new application for an active ingredient the applicant only get five years data protection for that product. “That is not long enough to encourage new applications or the big companies to introduce new products because they don’t get their money back. They have to do all the research and make sure it works and after that they don’t have the chance to get their money back. “If they bring a product in for, say, cabbages, and they want to use it on Brussels sprouts, they have to put in another application; there is no extension
on data protection. They might do that in year three but they only have two years remaining of data protection. What we are looking for is, when a new application is put in for a product, they get a 5-10 year extension of the five years. “But the government is settling on three years extension so there will be a total of eight years protection but we would like to see that increased to a minimum of a five year extension. “We are hoping a bill will come before the house shortly by which we can lobby for an extension on the protection through the select committee process. “It is all about cost and benefits and if a company is going to introduce a new product, making sure they get their money back. “It will be good for New Zealand, with more products, more choice and more environmentally friendly products available.” MPI aims to have amendment to the data protection rules under the ACVM Act introduced in Parliament by July 1, 2015. The bill will go through select committee for consideration and stakeholders will have the opportunity to make submissions.
RURAL NEWS // JUNE 16, 2015
NEWS 15
Faster path to market for agri-chemicals PAM TIPA pamelat@ruralnews.co.nz
NEW VETERINARY medicines and agricultural chemicals should get to market faster following a new agreement Agcarm has negotiated with MPI. The increasing threats of pesticide resistance are one reason why that is important, says Mark Ross, chief executive of Agcarm, the organisation representing agri-chemical manufacturers and distributors. His organisation hopes current application times of up to six month for new products could be reduced to less than one third of that. This would be good news for New Zealand farming and horticulture, Ross told Rural News. “It will be good for the agricultural industry if we can speed up the process. There were over 100 applications due for processing back in April so they have a lot of catch-up to do,” Ross says. The drawn out processing by the
agricultural compounds and veterinary medicines (ACVM) group at MPI has caused uncertainty and delay in getting products to market, including those with ‘softer’ chemistries, Agcarm says. The ACVM group has a crucial role in providing modern technology to farmers and growers. The uncertainty about timelines adds significant cost to manufacturers. MPI and Agcarm have agreed to an 11% increase in processing fees, and MPI will employ two extra staff – one each for veterinary medicines and agricultural chemicals. The proposal has received Cabinet approval and the fee increase will apply from July 1, the new staff joining immediately. Ross says processing times for new applications are now set at 40 days after pre-screening by MPI, plus onetwo weeks to receive documentation. That adds up to about 60 days. “Reports from our manufacturing members sug-
Agcarm chief executive Mark Ross.
gest applications are [now] taking six months plus, hence the desire for Agcarm to support cost recovery in light of MPI recruiting more staff to speed up the processing times.” Ross says there are no penalties if timeframes are not met by MPI. “Hence Agcarm is keen to see more accountability from MPI in the way of performance indicators and reports on progress. “We are working through that with MPI now. They are agreeable to work-
ing in a better way with industry and keeping us updated on what is happening on the basis we are paying more money to get the application processed. “MPI needs to get new staff and get them up to speed on the processes but the long term intention is to get products to market quicker – to get better products for use in New Zealand to market more quickly. “Also there is resistance building to pesticides so there are other products that will work just as effectively. Pesticide resistance is becoming an issue.” Agcarm in late May held a workshop on pesticide resistance attended by at least 70 from the agricultural sector. “It is still not a major problem in New Zealand but it could be if strategies aren’t put in place to correct it,” Ross says. “That was the idea of the workshop – education, making sure people use products to label rates, use a mixture of products and don’t use the same product from year to year. All those mes-
sages need to get out there.” Agcarm is planning a strategic drive on resistance management, including getting new products to market. “Farmers are the ones who use the products, the fungicides, herbicides and insecticides, and we need to make sure they know what they are doing and give some guidance, which [the product packs have], but it doesn’t seem to be getting out there.” Farmers, orchardists, vegetable growers and grain growers need education on resistance management, that it could be a problem in the future and how to avoid it, Ross says. The lack of a structured process is the main barrier to getting the message out. Volunteers through the science community and the industry are doing their bit. But the government is not much involved yet and there needs to be better coordination between the industries and the government, Ross says.
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RURAL NEWS // JUNE 16, 2015
16 NEWS AGMARDT goes Green RURAL BUSINESSMAN Richard Green of Canterbury has been appointed to the AGMARDT board. AGMARDT is an independent not-for-profit trust that aims to foster and enable innovation and leadership within the agricultural, horticultural and forestry sectors of New Zealand. “We are very fortunate to have Richard join the AGMARDT board of trustees,” says chair
Barry Brook. “He brings a wide range of agribusiness experience to our board and I am sure he will make a valuable contribution to the organisation.” Green is involved in aged care, honey production, marketing and dairy farming businesses. He sits on the boards of Lignotech Developments Ltd, the Foundation for Arable
Richard Green
Research, Canterbury Westland Cancer Society, New Zealand Institute of Primary Industry Management and the Rural Leadership Consortium. Green spent 11 years in the seed industry and was previously general manager international for PGG Wrightson Seeds and sales and marketing director for AGRICOM. Before that he was an agricultural consultant in Otago.
Zespris Carol Ward.
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PETER BURKE peterb@ruralnews.co.nz
DURING THIS month one million Mexican children will get a taste of Zespri Gold kiwifruit when they buy a ‘happy meal’ from McDonalds restaurants in that country. It’s the first time Zespri has developed a relationship with McDonalds anywhere in the world. Speaking to Rural News from Mexico, Zespri’s Carol Ward says this arises from a new marketing partnership with McDonalds in which 400 of the firm’s restaurants there will participate in a promotion that began a few days ago. “McDonalds is looking for happy meal options and they have been including in their happy meals fruit such as sliced apple as an option. This is the first time they have tried kiwifruit in Mexico and so we are delighted to partner and offer a healthy meal option for the kids.” Ward says Zespri’s distributor in Mexico – a product supplier to McDonalds – started it by introducing them to the restaurant chain. She believes it’s a great way of promoting kiwifruit as a healthy addition to the meal and the company is keen to look at similar options in other countries Ward says Mexico is a relatively new market where, this year, Zespri expects to sell 750,000 trays of Sun Gold kiwifruit – up 40% on last year. “This is only the second season we have sold here, so for us there is real benefit in getting over a million pieces of kiwifruit distributed through the happy meal programme. It’s a great way to trial Sun Gold and to bring it to the notice of one million Mexican children.” Ward says the partnership will help establish the Zespri brand and gold kiwifruit, which is largely unknown in this region. This is part of a broader strategy to introduce the new premium product and its health benefits to new markets around the world.
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HELP BEN HORSE AROUND MONGOLIA FURTHER TO our profile about Ben Wilks and his attempts to compete in the Mongolian Derby in early August, (“Horsing around in Mongolia”, page 16 June 2 Rural News): anyone who wishes to help Ben with cash for his big adventure can go to the ‘Give a Little’ page and search ‘Adventures of Ben Wilks’. He can also be followed from now until the start of the race on his Facebook page ‘Adventures of Ben Wilks’ and during the race this will be connected to a tracking device to give instant updates on his progress.
RURAL NEWS // JUNE 16, 2015
NEWS 17
New rural wellbeing campaign
FEDS SUPPORT FEDERATED FARMERS president William Rolleston – himself a doctor – is full of praise for the new Farm-
PETER BURKE peterb@ruralnews.co.nz
FARMERS ARE being encouraged to develop plans for their own wellbeing – not just for their farms. Farmstrong, an initiative supported by rural insurance company FMG and the Mental Health Foundation, provides the means of farmers helping themselves to deal with the stress of farming. It includes seminars by Dr Tom Mulholland who has worked as a rural GP, but is better known for running wellbeing programmes for employers in famous international companies Google and Microsoft. He will also be visiting remote rural areas and offering health checks to farmers. There will also be a farmers’ cycle tour of the country next March. The programme, mainly web-based at www.farmstrong.co.nz suggests what farmers might do to cope better with stress. These include
daily exercise and regular breaks from the farm. FMG chief executive Chris Black says while farmers have plans and systems in place to manage their land, stock and machinery, they generally lack a plan for their personal wellbeing. “The essence of that is if you are strong and resilient mentally, physically and emotionally it’s good for you the farmer because you are the most important asset on your farm. It’s also good for the business,” he says. Putting Farmstrong together involved 400 farmers in a survey and dozens of face-to-face interviews. Black says farmers were found to want more information and advice on how to get off the farm, “not just taking a two week holiday all the time, [but rather] utilising little techniques, ideas and small steps that can make a difference,” he told Rural News. [They saw a need for] different habits on fatigue and
strong initiative. Rolleston says it’s great to see the approach to rural mental health being treated in such a positive way. He believes it will help lift the rural community and be useful in building resilience in the rural areas. “All businesses have stress, but we have too many farmers committing suicide and it’s something we at Federated Farmers have to look at closely.” Rolleston says it’s hard for farmers to get off farms, especially if they are owner operators. He says some farmers do get out, but too often “the boat gets left in one of the sheds and collects bird shit instead of being used”. Dr Tom Mulholland will be the face of Farmstrong Campaign.
“One difficulty is that the best time to go away is when it’s busy on the farm – spring, summer and even autumn. Only in late autumn and early winter do
managing nutrition and those things that add up to make a difference.” Mental Health Foundation chief Judi Clements says farmers can be stressed because they feel isolated and have a difficulty achieving a balance in life because the farm dominates their lives. She says it’s also hard to access mental health support in some rural areas. “We don’t want to diminish the focus on the farm, but we want to
focus more attention on the farmer. We want to be working with them to look after their own wellbeing so they are making better decisions especially in adverse situations such as weather and the lower milk payout, [to give
but if you want to go somewhere warm it is expensive.” Rolleston says some of the many retired farmers would be interested in effectively being a farm locum and looking after a property while the owners took a break. So farmers would have someone they trust running their farm while they took a break.
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their thoughts that create emotions,” Mullholland told Rural News. “So while you can’t necessarily control the emotions, you can control your thinking. Most of the thoughts that make us feel bad aren’t actually true and they don’t help us achieve our goals. “[We need to give] farmers practical tools to deal with these situations,” he says.
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Thoughts govern emotions DR TOM Mulholland agrees that farming can be a stressful occupation and that farmers can’t control such things as the weather and prices for their products. And though schooling may teach us how to read and write, it does not teach us how to manage our emotions. “There’s a simple process and it’s often just explaining to people that it’s
them] bounce-back capability and resilience.” Clements says men need to feel that talking comfortably about problem issues is an ordinary thing to do.
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RURAL NEWS // JUNE 16, 2015
18 MARKETS & TRENDS MARKET SNAPSHOT
BEEF MARKET TRENDS
LAMB PRICES
BEEF PRICES NI
Change
c/kgCWT
P2 Steer - 300kg
n/c
M2 Bull - 300kg
5.40
5.40
4.50
5.40
5.40
4.65
4.50
4.50
3.85
Local Trade - 230kg
n/c
5.35
5.35
4.65
n/c
P2 Steer - 300kg
4.40
n/c
M2 Bull - 300kg
4.40
5.10
n/c
3.80
3.70
n/c
4.15
5.00
3.80
n/c
3.75
5.10
5.00
n/c
Local Trade - 230kg
Last Year
n/c
M Cow - 200kg
2 Wks Ago
P2 Cow - 230kg M Cow - 200kg
SI
Last Week
n/c
P2 Cow - 230kg
5.20
NI Lamb
YM - 13.5kg
5.20
Mutton
SI Lamb
YM - 13.5kg
+3
2.31
+9
2 Wks Ago
Last Year
5yr Ave
7.04
2.20 5.71
1.97
2.28
7.13
5.53
-1% -1%
% Returned SI
2 Wks Ago
7.66
7.68
1.75
Last Year 5yr Ave
1.75
2.18
8.45
2Wks Ago 75.7% 70.1%
3 Wks Ago
76.7% 71.0%
Last Year
5yr Ave
78.83%
77.4%
70.1%
1.99
8.18
69.5%
Procurement Indicator Change +0% +0%
% Returned SI
2Wks Ago
3 Wks Ago
63.3%
63.2%
68.5%
68.4%
Last Year 5yr Ave 71.6% 68.0%
71.7%
66.1%
% Returned NI
Last Week
-2
n/c
NZ$/kg
% Returned NI
Change
3.25
Procurement Indicator
UK Leg £/lb
Last Week
5.76
2.58
Export Market Demand
2.58
5.75
4.83
4.78
n/c
5.73
4.83
-5
5.71
4.83
4.78
NZ$/kg
4.78
3.65
4.83
95CL US$/lb
-5
5.96
3.15
Change
3.15
4.78
5.95
5.16
Change
5.16
-5
5.91
5.15
Export Market Demand
5.93
5.15
-5
MX1 - 21kg
5.13
5.11
Slaughter
5.13
5.11
n/c
PX - 19.0kg
Mutton
Last Year
n/c
MX1 - 21kg
PH - 22.0kg
2 Wks Ago
n/c
PH - 22.0kg
2.92
Last Week
n/c
PX - 19.0kg
PM - 16.0kg
4.35
n/c
PM - 16.0kg
2.97
3.70
Change
c/kgCWT
4.05
Slaughter
LAMB MARKET TRENDS
Venison Prices
Change
NI Stag - 60kg SI Stag - 60kg
n/c +3
Last Week
2 Wks Ago
6.28
6.25
6.50
6.50
Last Year 5yr Ave 6.15
6.20
6.78
6.95
Beef & venison prices are reported as gross (before normal levies & charges are deducted). Lamb & mutton prices are reported nett (after levies & charges are deducted).
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RURAL NEWS // JUNE 16, 2015
MARKETS & TRENDS 19 NEWS
PRICE WATCH Overseas Wool Price Indicators
WOOL PRICE WATCH BEEF: Gaps are appearing in cattle
reports suggest slaughter rates through June will also be steady, with supply drying up rapidly through July. There is hope from exporters that the tight supply may stimulate market demand and we could still see some better pricing as a result.
slaughter numbers across the country. However, the South Island cow kill held up longer than expected, even with Gypsy Day been and gone. Cattle prices have held relatively steady across the country, with procurement competition and the lower US imported beef prices balancing each other out for now. Unless a marked change of direction is noted in US prices, reports suggest processors are intent on preventing margins eroding any further, particularly in the North Island. It will be interesting to see how this plays out given numbers of slaughter cattle are expected to be thin on the ground in both islands until spring.
with the first auction for June seeing lambs wool reach a 10 year high. The price for clean 35-micron wool, that accounts for the majority of NZ’s production, is currently tracking 17% above last years levels, and is at its highest level in over 18 months. Low supply continues to underpin the market, with strong demand from China and a weakening NZD supporting the firmer prices.
SHEEP:
DAIRY:
Lamb slaughter in the South Island is on its last legs, which is probably a good thing given processors seem intent on dropping prices. However, in the North Island the lambs keep on coming forward to slaughter in much larger numbers than anticipated. This has been driven by many farmers holding on to lambs waiting for schedules to increase, but with winter weather setting in and pasture growth rates slowing, feed supply is under pressure and many have been forced to offload. Some
Change
04-Jun
28-May
Last Year
Coarse Xbred
+15
5.63
5.48
5.25
Fine Xbred
+23
6.57
6.34
5.57
Lamb
+46
7.39
6.93
5.35
-
-
-
7.00
Indicators in NZ$
Mid Micron
Indicators in US$/kg
Change
Coarse Xbred
+5
Fine Xbred Lamb Mid Micron
04-Jun
28-May
Last Year
4.03
3.98
4.51
+9
4.70
4.60
4.79
+25
5.28
5.03
4.60
-
-
-
6.02
WOOL: Wool prices continue to firm,
Dairy prices declined a further 4.3% at the most recent GlobalDairyTrade auction, surprising many, as futures markets had been signalling a lift. With the exception of cheddar, prices for all products declined. WMP and SMP prices declined 3.1% and 1.3% respectively. Butter and AMF recorded significant falls, declining 10% and 7.4% respectively. The fall for these fat products surprised many as butter prices in both the US and EU are improving, and NZ sourced AMF and
butter is trading at discount in comparison, which is unusual for this time in the season. Short-term supply and demand fundamentals remain depressed. Reports suggest that EU milk production from April onwards is set to be significantly increased, particularly out of northen European countries. While farmgate prices are expected to decline on the back of the supply increase, the removal
of production quotas is picked to slow down supply response to price declines. Resultingly global supply through to at least September is picked to remain high. Demand from China remains slugglish, however seasonal import requirements are picked to increase from the fourth quarter of 2015.
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RURAL NEWS // JUNE 16, 2015
20 AGRIBUSINESS
Canadian dairy giant gets tough on animal welfare ALAN HARMAN
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CANADIAN DAIRY giant Saputo has announced a ‘zero tolerance policy’ on animal welfare and will refuse milk from farms showing evidence of animal cruelty. Saputo, of Montreal, says the policy applies to all its operations in Canada, the United States, Australia and Argentina. And with all the zeal of the newly converted, Saputo wants to see its policies made accessible to all dairy producers and participating professionals in the world. Saputo says the implementation of the animal welfare policy follows its recent alliances with the University of Guelph in Canada and the University of WisconsinMadison in the U.S. “Through these initiatives, Saputo reinforces its commitment to bringing industry leaders and dairy farmers together to improve animal care,” it says. Last year, Saputo briefly refused to accept milk from Chilliwack Cattle Co., British Columbia, after the animal welfare group Mercy for Animals (MFA) group
Canadian dairy giant has zero tolerance policy on dairy cow welfare.
produced video evidence of workers “kicking, punching, beating, and hitting cows in the face and body with chains, canes, metal pipes and rakes.” Saputo demanded the introduction of animal welfare practices before the milk flow resumed. The new policy has MFA cheering. “MFA praises Saputo for working toward ending some of the cruelest practices in its global dairy supply chain, such as tail docking and dehorning without painkillers, as well as curbing malicious animal abuse,” the group now says. MFA says Nestlé, Leprino Foods, and Great Lakes Cheese, three of the
largest dairy companies in the world, also recently announced similar animal welfare requirements after hidden-camera footage by MFA revealed horrific animal abuse. “With Saputo’s announcement, the days are numbered for dairy factory farms that beat and drag cows, and mutilate them without painkillers. “It’s now time for Dean Foods, Land O’Lakes, and other mega dairy companies to stop dragging their feet and implement meaningful animal welfare standards of their own.” The new Saputo animal welfare policy invokes core principles and scientific evidence. It
was developed with customers, dairy producers, veterinarians, governmental authorities, universities and other industry stakeholders. The key elements include zero tolerance for any act of animal cruelty, eliminating tail docking in dairy cattle, and ensuring a minimum industry standard for pain control when dehorning or disbudding cattle. Saputo is in the top 10 dairy processors in the world, is the largest in Canada, third in Argentina and fourth in Australia. In the US it is one of the top three cheese producers. It sells products in 40 countries @rural_news facebook.com/ruralnews
BETTER CONNECTIONS PROMISED FASTER INTERNET is helping Waikato dairy farmers to manage their businesses on mobile phones. Spark New Zealand recently deployed 4G via the 700MHz radio spectrum on its Hangatiki site. Waikato region trials of the 700MHz spectrum began in April last year. Trials started in Morrinsville and 106 sites have 4G on 700MHz in Waikato. (Other regions have 44 sites with 4G.) At least 60% of smartphones and some tablets usable on the Spark mobile network can now run on the 700MHz spectrum, easing access to 4G services to share, upload, download and stream content fast and reliably. Morrinsville dairy farmer Bruce Thomas says over the past 12 months access to fast 4G speeds have given him confidence to do more on
mobile. “4G… fast speed has given me the confidence to download and experiment with new mobile apps and software to make our lives easier on our farm.” “In the past I didn’t bother with these apps, thinking they might be waste of time with the type of connectivity we had, but it’s a different story now.” Thomas says he and his sharemilker use many of the apps to do things faster. “We regularly use the Minda Lookup app for real-time access to LIC’s data on your herd. It quickly allows you to identify the animal on the spot and check stats like health and ancestry…. This saves me trekking back to the house to log on to the home computer.” Spark last year bought four lots of the 700MHz spectrum. The 4G system will extend over NZ during
the next three years. Spark Connect’s networks general manager, Colin Brown, says the more spectrum a provider owns, the more capacity it has to carry data at faster speeds on the network, even at busy times. “We invested $158 million to secure four lanes of the 700MHz spectrum ‘highway’…. By adding more 4G lanes we’re adding a whole lot more capacity to our mobile network. “Agribusiness customers can take advantage of new technologies like Machine-to-Machine (M2M) communications to do things like monitor soil and rainfall levels or track herd movements. “M2M technology makes the process of recording, storing and uploading key data to the likes of the Cloud faster, raising productivity and saving cost.”
RURAL NEWS // JUNE 16, 2015
AGRIBUSINESS 21
All the world wants is a better diet pamelat@ruralnews.co.nz
IS THERE a “seismic” shift in food choices and a demand for healthy, chemical free choices with transparency about where the food is sourced? Or is there a need to push the boundaries on all technologies including GMOs to feed the predicted 9 billion world population by 2050? Are the above consumer pressures directly opposed, or will new thinking and technologies help achieve both aims? These were some of the topics explored at the Alltech REBELation Symposium in Lexington, Kentucky, which offered 11 symposia in three tracks (agriculture, business, and food and beverage) and featured 121 speakers. Rural News attended the event courtesy of Alltech NZ. Several key themes emerged in agricultural sessions: the importance of branding; the push by consumers for more knowledge about their food, for health and wellbeing and sustainability; the increasing globalisation of food trade; the need to feed growing populations; and the role of technology in all those areas. Former US Secretary of State Colin Powell recalled his first trip to China 45 years ago as a young officer. He visited different villages and asked families what they wanted in life; it was always a bicycle, a sewing machine and a radio. That was the limit of their aspiration. Now 45 years later the country has brought 400 million people out of poverty. Eastern Europe, Asia and increasingly Latin America and parts of Africa are also reducing poverty. They now want cars, smartphones and computers. “But above all they want a better diet, they want more protein in their diet.” It has created a massive demand for foodstuffs. But he warned that every business from big corporations to individual farmers was a brand, and needed to protect that brand. Jim Stengel, former
global marketing officer at Procter & Gamble, said brands with a higher purpose resulted in three times higher sales. “If you want to start a brand today, it must not only have purpose but an ambitious purpose.” He asked people to look at whether there was a deep sense of humanity in their organisation or business. Empathy was needed to operate with customers. Jerry O’Callaghan, investor relations officer with JBS, a leading meat processing company, said many beef producers in many parts of the world were still sending the product out unbranded, yet it was a precious item on restaurant menus and in people’s homes. In Brazil about threefour years ago JBS began differentiating their product from the mainstream by telling about origin, hygiene standards, sustainability and how the supply comes through the market. At least $20 million was spent last year on marketing the product in Brazil. Brand commands at least a 5% price premium, O’Callaghan said. The Three Boy brand in Brazil has become a symbol of quality. Branded beef needs to become more common to bring out the value of what producers do for the consumer. There is an opening of trade channels between China and Brazil and China and the US. As incomes grow, beef is something people aspire to before they buy new cars or smartphones. “The first thing they want to do is eat something of perceived better quality. Beef is an item that people always aspire to.” With suppliers in Brazil’s north-west, JBS uses satellite imagery to monitor the properties from which they buy cattle: they take pictures every month and superimpose them to detect deforestation. They suspend buying product from such a property until they get paperwork to prove the tree felling was done legally. “That is a cost to our business but it becomes a value to our business… increasing the value of our products,” O’Callaghan says.
Karl Dawson, chief scientific officer at Alltech, said the era for the indiscriminate use of antibiotics and antimicrobials in animal production is over. Resistance to antibiotics is real: 23,000 deaths a year around the world in 2013 can be attributed to antibiotic resistance and four times more antibiot-
Food choice is a key question for world agriclture.
ics are used on livestock than on humans. Every major food company is developing policies to address the issue and the US government plans intervention during the next two years. It affects everyone in livestock production. Walter Robb, co-chief executive in the major
US organics chain Whole Foods Markets, said choices in foods are now in the “court of customer response”. He sees a “tectonic shift” in ideas about the sourcing and quality of food that he has never seen in his 35 year career as a retailer. @rural_news facebook.com/ruralnews
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RURAL NEWS // JUNE 16, 2015
22 OPINION EDITORIAL
EDNA
What’s wrong with simplicity? THE NEWS that Fonterra is to hire international consulting firm McKinsey & Co to see what needs to be changed in the organisation is breathtaking. It seems a lot of people in the co-op are earning a million or more dollars a year, so what don’t such people know and why can’t they fix it themselves? Many were presumably responsible for the co-op’s present structure, so what’s wrong? McKinsey will for a small fee (yeah, right) propose some sort of change to the structure. But we hope they look beyond structure and truly analyse the culture of Fonterra, which is the greatest source of complaints from many of the people who deal with the dairy giant. The word arrogance is frequently used to describe the way Fonterra behaves to external stakeholders and farmers. ‘Fortress Fonterra’ is another expression. The co-op’s communication style gets people’s backs up. They seem to assume a God-like position, which does not fit well with the salt-of-theearth farmers they supposedly represent. Understandably, some Fonterra suppliers are looking sideways towards other companies to which they could sell their milk. Fonterra’s hold on the milk supply is slipping as companies such as Miraka and others show what can be done. They also offer a closer relationship – a whanau approach – which is very appealing to many. In its latest Agribusiness Agenda, KPMG suggests that in 10 years Fonterra may control only 70% of the New Zealand milk supply – down from 85% today. This is not to say Fonterra is bad; in fact it is a great company and NZ Inc. needs a strong Fonterra. But it seems to many that the body corporate has become disconnected from its shareholders. The great work of Fonterra is being undone by poor communications, which is an easy fix. PR spin and new buzzwords such as ‘velocity’ will change nothing and impress no one. The solution is frequent, timely, honest, simple, straight talk. Surely that’s not too much to ask.
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“The bank manager said we couldn’t go to Fiji for a holiday so I thought I’d bring Fiji to us!”
THE HOUND
Want to share your opinion or gossip with the Hound? Send your emails to: hound@ruralnews.co.nz
Well done!
Seriously?
Shallow puddle
Quack, quack
YOUR OLD mate congratulates the agricultural types recently honoured in the Queen’s Birthday honours list. These include CNZM (Companion of the Order) Geoffrey Owen Poole, Wanaka, for services to the meat industry; ONZM (Officer of the Order) Anthony John Hawken, Whakatane, for services to the kiwifruit industry; Nicholas Thomas Nobilo, Auckland, for services to the wine industry; MNMZ (Member of the Order) Beverley May McConnell, QSM, Auckland, for services to horticulture; Donald Gordon McFarlane, Geraldine, for services to agriculture and the community; QSM (Queen’s Service Medal) Moo Lock Glock, Auckland, for services to the horticulture industry; Allan Graeme Derek Spratt, Te Puke, for services to agriculture.
THE HOUND reckons to see what a waste of space the animal activist groups PETA and the RSPCA are, read on. According to an Australian media report, New South Wales farmer Ken Turner had the RSPCA knocking on the door of his Boorungie Station (130km from Broken Hill) acting on a tip-off. He was told People for the Ethical Treatment of Animals (PETA) had complained to the RSPCA that a farm worker swore at sheep during shearing sessions. The group presented footage of ‘verbal abuse’ believed to have been recorded by an undercover operative working at the same station. Apparently the rude words were distressing the flock. “None of [the sheep] actually told me they were offended,” a bemused Turner said on radio.
YOUR OLD mate notes that NZ First leader Winston Peters, was not red-necked or stupid enough to ask some really dumb questions about the proposal of HongKong-based He Run Ltd to set up a new dairy processing factory in Otorohanga. Instead, it was left up to silly old Barbara Stewart, who this old mutt reckons would be out of her depth serving tea in the parliamentary cafeteria, to make a fool of herself. Firstly Stewart claimed foreign dairy companies in NZ like Oceania, Synlait Yili and Yashilia were all bad for the sector (ask those companies’ suppliers. Your mate reckons this proves that the depth of talent in NZ First’s ranks is only puddle thin.
A MATE of the Hound reports how on the opening weekend of duck shooting a farmer and his mates had just finished shooting for the morning, when over the hill came a quad with three people on it – one policeman and two rangers who proceeded to go over the group with a fine-tooth comb. After a while this old mutt’s farmer mate lost his patience. He then pointed out a sign on the road gate the bureaucrats came through, explaining they were entering a multiple hazard area and were required to contact the management on arrival. He also reminded them that it was illegal to carry passengers on a quad, but they could get back on it and take a hike.
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RURAL NEWS // JUNE 16, 2015
OPINION 23
Too many people are dying on farms THE CURRENT workplace health and safety law has been in place since 1992 and the responsibilities of those in charge of a workplace have not substantially changed since that time. The Pike River mine tragedy and the subsequent independent taskforce report on health and safety in the workplace highlighted that New Zealand is far behind other countries in protecting people at work. Our health and safety performance is twice as poor as Australia and six times worse than the UK. More people are injured and killed in agricultural workplaces than in any other single sector. To bring down the social and economic toll, WorkSafe is working with the sector to better inform businesses of their health and safety responsibilities and how they can meet those responsibilities. Hence more focus on workplace health and safety which adds to a productive debate. In 2010, quads were recognised as causing serious harm and fatal incidents and much research was done to determine the factors behind the injuries and fatalities. The research identified four contributing factors to injuries on quads: ■■ No protection from head injuries. ■■ Carrying passengers on single seat machines. ■■ Children riding adultsize machines. ■■ Using the machine for tasks it was not designed for. Here are some facts about passengers and helmets: ■■ From WorkSafe’s analysis of 355 serious harm workplace incidents investigated over an eight-year period, we know a disproportionately high number of serious injury incidents involve passengers. ■■ Farming sources have told WorkSafe that fewer than one in 100 quad trips would involve a passenger. However, of the 355 incidents examined, 31 (8%) had a passenger
as the victim. In four of these the passenger was killed. Seven of the seriously harmed passengers were children. ■■ ACC claims for farm workplace quad injuries in New Zealand show that five of the 10 most frequent injuries are to the shoulder or above, which suggests the head is exposed to injury in a majority of incidents. ■■ In the eight year period analysed, 40% of fatal farm quad incidents involved a head injury. ■■ Note: the average cost per ACC claim was $594 for those who had an incident on a quad but who wore a helmet. That cost rises 22 times to $13,292 for those who don’t wear helmets. It would be inappropriate to rely on a single set of data. There is US research (A Pilot Study of Fatal ATV-Related Incidents Involving Passengers, August 2014) that concludes that the extent of rider injury in quad incidents is increased when a passenger is being carried. Australian research (yet to be released) into the overall stability and use of quads concludes “… adult sized vehicles should only be used by a properly trained 16 years or older rider, and with no passengers permitted, unless the quad has been specifically designed and manufactured for such use.” Quad manufacturers state that passengers should not be carried on vehicles designed for one person as it affects the handling. Some (Honda and Suzuki are examples) explicitly state that passengers should not be carried on the cargo racks. All manufacturers also explicitly require head protection as a safety measure. Some would say this is simply a case of manufacturers avoiding litigation but these warnings are issued because the manufacturers are aware of the design limitations of the vehicles and are required to advise users of the limitations. The bottom line for quads, and for all
workplace safety, requires the following: ■■ Identify what risks could harm people in the workplace. ■■ Work out how to manage those risks. ■■ Communicate the risks and their management to the appropriate people. In relation to compul-
sory engineering solutions that protect quad riders from human error: engineering solutions have the advantage that they do not require an attitudinal change – they basically force the change on the human. This is a solution, but not the full solution to the overall toll of injuries
and fatalities on farms. The bottom line is that engineering solutions are not available for many of the injuries suffered. • Al McCone is the agriculture programme manager at WorkSafe New Zealand. He was responding to the letter from James Jarden in Rural News, June 2 about workplace health and safety.
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RURAL NEWS // JUNE 16, 2015
24 OPINION
Science suffers as middle managers meddle more and more THE ANNOUNCEMENT that AgResearch will invest $5 million in the new Southern Dairy hub, matching the investment from DairyNZ and supporting the $1.3 million raised by farmers, has
mystified AgResearch scientists. They have been told that at least 80 people, all from science, will be made redundant because of funding shortfalls. This is on top of the losses of
staff already experienced because of the Future Footprint Plan (FFP), estimated at over 60. Because of project completions and a science funding system that makes it difficult to
regain funds once lost, AgResearch is $6 million down this year. This is despite taking on more business managers to direct staff to develop research programmes in specific areas through a
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process of ‘roadmapping’. The problem for research is that managers absorb considerable resources. Estimates published in Harvard Business Review indicate two people for one basic management position and over three extra per senior executive. Highly remunerated ‘business developers’ are not doing the actual work of research; they are managing the performance of the people who are the revenue generators. In AgResearch between 2011 and 2014 there was a 14% decrease in science staff and a 25% increase in management and support positions; the annual reports give the data. Of note is that the work any science group does at AgResearch has always been prescribed by whatever industry or government or the AgResearch senior management team, have seen as the most appropriate. A failure in revenue generation should be sheeted home to management – but it is the science teams that are being affected. AgResearch has said it will continue to invest where it can develop science and support capabilities. The Southland Hub is currently one of these areas. But ‘hot topics’ are susceptible to change, whereas science skills are hard won. The case should be made that the retention of science skills should take prominence. Of further note is that AgResearch will target opportunities for integrated farm systems, decision support tools and modelling of farm systems. These are generally computer-based initiatives which are, admittedly, usually cheaper than field research – but most rely on information which is increasingly out of date. The fact that Overseer, a
widely used nutrient management tool, is calibrated for only four environments is a case in point. The KPMG ‘Agribusiness Agenda’, released at National Fieldays this week, highlighted that New Zealand’s innovation capability is now a priority issue. It expressed oncerns that the capability to deliver the innovation required to compete globally doesn’t exist. The structure of the government-funded system, the competitive funding mechanism (whether from external agencies or within the Crown research institutes), the lack of corporate profitability in order to fund investment, and the challenges of attracting and retaining key people were all emphasised, as was underinvestment in transformational, intergenerational science. Some of these points have been made before, some of them include buzzwords (hot topics), but the overall problem remains. Students are not studying the sciences at school because they are seen to be hard and without reward in the workplace. University graduates from New Zealand are not staying on to do higher degrees – they can earn as much after graduating from a 3or 4-year degree course as they can with a doctorate. The KPMG ‘Agribusiness Agenda’ suggests that “future success relies on ensuring our science system is able to support a high-value add industry”. AgResearch’s decision to invest $5 million in Southland rather than keep science staff is following a hot topic, but the damage in staff loss is likely to have longer term impacts. Science capability is falling below critical mass. • Jacqueline Rowarth is professor of agribusiness, The University of Waikato.
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RURAL NEWS // JUNE 16, 2015
MANAGEMENT 25
Small, but smart making money PETER BURKE peterb@ruralnews.co.nz
PATEA ONCE-A-DAY (OAD) dairy farmers Robert and Verna Bourke are among of the few still making money, despite the low payout and the somewhat bleak outlook for the sector. The couple run 200 cows on their 58ha (eff) property near the Taranaki town immortalised for its Maori Club, which recorded the song Poi E in 1996. The key to success for the Bourkes is their low cost production system, based almost exclusively on feeding grass to their Jersey cows. They graze all their stock on the farm – none are sent off for winter grazing. They cut their own silage and produce some hay, but also buy in a lot of hay. Keeping costs down is part of their strategic plan, says Verna. “Our costs are just $1.90/kgMS, whereas some are at $4.50, $5.00 or more. We are not producing as much as the big fellows, but with costs at $1.90 in a $4.40 payout year we are making money, even though it’s not a huge amount,” she says. Currently they produce 62,000kgMS from their cows on OAD. Interestingly this is the same amount of milksolids they
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were producing 11 years ago before they switched to OAD. “There is too much focus on production these days. All the big boys talk about is their production. However, you can do all the production you like, but if it’s costing you $6 to get that production on a $4.40 payout the answer is obvious,” Verna Bourke told Rural News. “Whenever you go to a discussion group the white board goes up and it’s the production that goes on; what it really should be is profit.” While the Bourkes have looked at expanding their operation they have concluded it would be too expensive and mean extra labour costs. Instead they have modified their dairy shed and fenced their waterways and sensitive areas. This was long before Fonterra started taking an interest in this issue, says Robert. “I have looked at the options of growing maize, shed feeding systems, crops and other bits and pieces, but I would have had to build more infrastructure. Also we couldn’t afford extra labour and so it would have meant more work for Vern and me.” A move the Bourkes don’t regret is moving to OAD. They regret not having done it years ago when their children were
young. Verna Bourke says if they’d done this then, they would have spent more time doing family things such as going to the beach and sporting events. For Robert it’s the lifestyle OAD has created that has made a difference. “Looking back I wonder how I managed to do as much work as I did when I was milking twice a day (TAD). Interestingly the repairs and maintenance budget went up in the first two years of OAD because I had more time do such tasks. Then there is all the paperwork Fonterra requires and that takes time.” Recently, the Bourkes have hosted other OAD farmers attending the annual conference in Hawera. As experienced OAD farmers they were able to show what can be done on a smaller farm where they have both lifestyle and profit. And for the OAD cows there is also less stress. “Those cows on some TAD farms walk two marathons a day. They are like athletes. I also question why Fonterra has farmers producing so much milk and they can’t sell it,” says Verna. “We should be having less milk so the payout can go up. Fonterra have got it horribly wrong.” This season, the Bourkes’ daughter and
Once-a-day dairy farmers Verna and Robert Bourke are among the few dairy producers still making money.
son-in-law will buy the herd and become 50/50 sharemilkers, a move that has pleased the parents who can now stay on the
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RURAL NEWS // JUNE 16, 2015
26 MANAGEMENT Farmers need to make better use of accountants and other professionals
Anna Steele works as an accountant and takes an active interest in farming.
PETER BURKE peterb@ruralnews.co.nz
FARMERS COULD make better use of accountants, says Federated Farmers’ Ruapehu meat and fibre
chair Anna Steele. Steele (36) works as an accountant in Taumarunui and takes an active interest in the family sheep and beef farm south of the town.
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She says accountants are an important cog in the machine for farmers and farmers do not use such advisors as well as they could. “Some of them think of us just as historians who produce end-of-year accounts and tell them how much tax they have to pay or how much they have made or lost,” Steele told Rural News. “Whereas I think we could be much more useful in helping their businesses grow and get better, but not a lot of people utilise us in that way. That needs to change with farmers and other small businesses.” Many farmers plan and budget well, but many could benefit from some help, she says. The nature of farming has changed and is more complex: taxation and other compliance issues now must be met by farmers and that requires specialist advice. Producing regular cashflow reports is one way farmers can avoid ending up with nasty surprises at the end of the financial year. Steele was born on a farm at Mamaku near Rotorua and her parents later moved to a bigger property at Kuratau, on the western shores of Lake Taupo. Then they bought their present farm near Owhango, south of Taumarunui. “I went to boarding school and then to university and travelled overseas and then in my
30s came back here and worked on the farm again, but decided that working fulltime on the farm wasn’t for me. It’s not that I don’t love it, but it is not necessarily where my skills lie and I guess that’s when I decided to go back to university and get a degree in accountancy to match the degree in commerce.” Before coming back to Taumarunui, Steele worked in supply chains – Fonterra, Mainfreight and Maersk, the giant shipping line. Accountancy gives her greater career flexibility, including working in the rural sector which she loves. “As an accountant you can be anywhere – even places such as London – it doesn’t matter. I kind of wanted to have the option of being close to home and being involved in the family business if I could,” she explains. “If I chose not to I could to go to Sydney or Singapore and as it’s turned out I am working here in Taumarunui and am involved with the family farm. Now I am in farming politics and have the best of both worlds.” During the week Steele lives in Taumarunui because the farm is an hour’s drive away. When in town she does town things such as attending client functions and playing squash. At the weekend it’s off to the farm with her dog to help her father. Again it’s the best of both worlds.
RURAL NEWS // JUNE 16, 2015
MANAGEMENT 27 WAIROA SCOOPS AWARDS
Anna Steele grew up immersed in farmer politics.
Steele by name and nature ANNA STEELE grew up with farmer politics: her father Richard Steele was twice the chair of Ruapehu Federated Farmers and was integral in setting up Ruapehu Feds to take control of the fight against Bovine TB in the region. She also was interested in famer politics and saw involvement in this as complementary to her role as an accountant and a farmer. “So I started going to the local meetings here just as member and then when the then meat and fibre chair suddenly resigned there were discussions on who they could get and I saw eyes upon me. “They said I was outspoken and asked if I’d take on the role. I had just come to the meeting with my father to get a free lunch and suddenly this was put upon me. I discussed it with my boss here because of the time factor and with my dad and I thought it was something I’d be interested in so I decided to take it on. And I had to pay for the lunch!” Steele admits that when she took on the role she felt totally inadequate and even now she still does, at times. The challenge is to understand the wider aspects of the role and what’s happening in NZ farming. It’s also harder being a woman in the role. “The difficulty for women is they feel they have to know everything to do something whereas men say ‘she’ll be right and do it’. Women have a different perspective and tend to get involved in detail such as the books. This isn’t only true of
farming; you get the same situation in small businesses where the woman does the books.” Steele agrees with people who say women’s contribution to farming is underrated. A woman can make a huge contribution including acting as a matriarch who ties everyone together and gets people to pull their heads in, in a nice way, when they are out of line. But she sees women playing a much greater role in Federated Farmers than they used to and there are more with professional qualifications being elected to office. “The Ruapehu district, where I live, used to be a traditional male dominated area. But in recent times this has changed and now the provincial president, the dairy chair and I as meat and fibre chair are all women, so things are changing. But you still go to the meetings and there are old stalwarts there, but no one gives me a hard time, they wouldn’t dare. But I have to bite my tongue sometimes.” Of concern in the farming sector at present is that the average age of a sheep and beef farmer is 58. So Steele recognises the challenge to get more young people to make a career in farming. “But how do you get people to see it as viable career job? It is a fabulous career and lifestyle and a great way to bring up kids. All of us who went to a rural primary school have got it over those from the city. We just know things and are very practical.” Also big for Steele is succession planning: she does not see that farm-
ers’ sons would automatically inherit a farm. She accepts this is a complex issue and knows that families need to get good professional advice when putting together a succession plan. “It’s not simple and there is no easy way of deciding and being fair to all parties. You don’t want one to be treated differently. Traditionally the oldest male has taken over the farm, but to me that’s not the fairest or most pragmatic approach. In the world of equality, why should it be the boy? It also depends on their interests and ability.” Steele says she’s a great supporter of Beef + Lamb NZ’s initiative to help farmers improve their performance behind the farmgate. Farmers need to see what costs they can and cannot control and have a plan to deal with these. This comes back to her view that farmers should make better use of accountants. “Farmers are not always great at talking to other people because they don’t want to be judged and they don’t want other people to know their business.” Steele has been in the Feds role for two years and is still contemplating whether she’ll move up the political ranks of the federation. She sometimes questions whether she has the ability to do this, but has been encouraged by many others who feel she can do this. Meanwhile, she is looking at personal development options such as the Global Women leadership programme and has a personal mentor.
THE WINNERS of this year’s Ahuwhenua Trophy for the top Maori sheep and beef farm, Bart and Nukuhia Hadfield, say they are overwhelmed and proud of what they have achieved. The couple, owners of Mangaroa Station in the Ruakituri Valley, northwest of Wairoa, say they are privileged to have won the award. Primary Industries Minister Nathan Guy announced the winner recently at a function at Whanganui, attended by 650 people including the Minister for Maori Development, Te Ururoa Flavell, the Maori King Tuheitia, and other dignitaries, politicians and agribusiness people. Two other finalists were Paua Station, owned by Parengarenga Incorporation at Te Kao, Far North; and Maranga Station owned by Marty and Janice Charteris at Tiniroto, southwest of Gisborne. Mangaroa Station is 1506ha (1250ha effective) rising to 620m at its highest point. The Hadfields run 6200 Romney Perendale ewes, 2000 replacement ewe lambs and 70 rams. They also run 500 Angus breeding cows and 400 heifers.
Mangaroa Station’s Bart and Nukuhia Hadfield winners of the 2015 Ahuwhenua Trophy.
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more people and we’ll be looking at opportunities and maybe what we have been doing on our farm and might be able to do better,” she says. Also announced at the event was the winner of the Young Maori Sheep and Beef Farmer of the Year. Hannah Wallace (22), from Wairoa, is the first woman to ever win the Young Maori Farmer competition. The other finalists were Taane Hubbard, from Wairoa and Hemoata Kopa from Matawaia, Bay of Islands.
Bart and Nukuhia Hadfield received various prizes to the value of $40,000 while they and the other finalists received prizes to the value of $20,000. Nukuhia Hadfield told Rural News they will continue to reflect on their win and says as a result of this they can’t afford to be “a bit slack now”. “It’s going to help motivate us even more and it has opened up opportunities. We have met many
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RURAL NEWS // JUNE 16, 2015
28 MANAGEMENT
Awards toast top sheep breeders ATTRACTING YOUNG people to sheep farming and transferring expert knowledge and experience were two recurring themes during the recent National Ewe Hogget Awards. Amid other more wellknown industry competitions the Ewe Hogget Awards has good reason
to claim respect and prestige. The competition organisers suggest it represents 29.6 million farm animals across the largest area of farming land in New Zealand focussing on production sustainability of the ewe flock – the most profitable enterprise on sheep and beef farms. Moreover, the com-
petition identifies and rewards farmers who have excelled in what they do. Ian Stevenson, President of the New Zealand Sheep Breeders Association speaking at the event says farming successes often require a blend of academic knowledge and the skill of being a true stockman.
Overall winners and recipients of the Ewe Hogget Competition Cup, Bevan & Wendy Hopcroft, run 2350 CoopworthTexel cross ewes and 650 ewe hogget replacements on their 288ha property at Wendonside in Southland. In addition to the grand prize, the second
time entrants won the Special Awards for Flock Phenotype sponsored by Tru-Test Group, Flock Performance sponsored by MerialAncare and the Composite Breed Award. When asked about their success, in keeping with the dry humour of the evening, Bevan quipped it was down to
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luck before quickly admitting a deep passion for sheep farming, hard work and marbles, squash, rugby or farming being “a bit of a competitive bugger”. Wendy Hopcroft mentioned input from Blackdale genetics. Bevan spoke on the value of the Ewe Hogget Awards for entrants well beyond the monetary prize value including the rigorous assessment process they use to benchmark their own farming practice and the chance to gain insight and mentoring from the expert assessors. One of the three judges who travelled the length of New Zealand, general manager for Paki-iti Farms Ltd, Stewart Morton, says all farmers acknowledged by the Ewe Hogget Awards had put themselves outside their comfort zones, had analysed their farming objectives and production, and farmed within their environment to the highest levels. Year on year he noted a raising of
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the bar of New Zealand’s most elite sheep farmers and seen the benefits to farmers of having a comprehensive regime to benchmark against themselves and peers. This year’s 300 entrants were narrowed to 19 South Island and nine North Island farmers. The shortlisted farmers underwent a stringent on-farm examination and review of farm objectives and record keeping with site visits often beginning before daybreak. The Ewe Hogget Awards Committee and sponsor network is keen to boost entry levels beyond 500 for 2016 and create new interest among potential contestants from the North Island to become the undisputed competition for the sheep industry. Entry is open to sheep farmers of all backgrounds, young and old, those new to farming to those whose families have been farming for generations.
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Overall winners of the 2015 Ewe Hogget Awards Wendy and Ben Hopcroft of Southland.
Ewe Hogget Special Awards conferred: ■■ MerialAncare Flock Performance Award, Bevan & Wendy Hopcroft ■■ Ravensdown Large Flock Award, Fraser Avery, Bonavaree Farm ■■ Tru-Test Flock Phenotype Award, Bevan & Wendy Hopcroft ■■ Overall Best Quality Wool Awards, Pet Michelle (presented by the NZ Romney Association) ■■ Young Achievers Award, Hamish Williams (presented by the NZ Ewe Hogget Committee) Breed Awards conferred: ■■ Romney, Brendan & Prudence Butler ■■ Composite, Bevan & Wendy Hopcroft ■■ Perendale, Allan & Leann Woodrow ■■ Coopworth, Graeme & Raewyn Black ■■ Fine Wool, Justin & Tui Wilson, Nine Mile Pastoral
RURAL NEWS // JUNE 16, 2015
ANIMAL HEALTH 29
TB on the decline, but outbreaks costly SUDESH KISSUN sudeshk@ruralnews.co.nz
THE STIGMA of bovine TB remains huge in rural communities despite a decline in the number of infected herds, says Stu Hutchings, group director of OSPRI. Speaking at the recent Primary Industry Summit in Wellington, Hutchings noted the prevalence of TB was declining; there are only 49 affected herds around the country compared to 1700 in the 1970s. However, having a TB outbreak in the herd brings huge social and financial impact on the farmer. “The stigma of having TB now is huge especially in our rural communities,” he told the summit. There’s media attention to it and there’s been complacency among farmers about it. So, when it does occur, it becomes a significant event.” OSPRI is using farmers to communicate to raise TB awareness in the sector, especially among younger farmers. At the same time it is using data collected by NAIT to good use, by tracking down infected animals and controlling TB. OSPRI is made up of TBfree New Zealand, managing bovine TB, and
NAIT, tracking movement of cattle and deer. Hutchings says while the two organisations do different things, the primary objective is to protect and enhance the reputation of the primary industries and safeguard them from disease. OSPRI’s primary focus now is guarding against bovine TB. Data collected by NAIT is use for tracing animal movements and managing TB. Hutchings gave an example of a TB outbreak two years ago and how NAIT and TB Free worked together to contain it. A cow with undetected TB was moved from Waikato to Northland; the cow had calved and was being milked. She suffered a severe TB infection after calving. Hutchings says the farmer chose to use the infected cow as a milk supply for rearing all calves on the farm. “So then we started to get a huge number of calves affected very early on in their life.” The farmer then sold some of the calves to other Northland farmers; some were given away under the green trading process. This infected six more herds. Hutchings says the
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OSPRI NZ’s Stu Hutchings (right) and farmer Raewyn van Gool discuss TB issues at the Primary Industries Summit.
ability to use NAIT, good investigative TB data and DNA analysis resulted in tracing the outbreak back to the cow. “We were able to patch the process together and resolve the case quickly and now all those herds have been cleared and the situation resolved.” Hutchings says the Northland case highlights the importance of NAIT’s traceability prowess. NAIT was launched three years ago. On a farm NAIT starts with the herd/farm manager’s registration. All cattle and deer are tagged with NAIT approved RFID ear tags; the tagged animals are then registered in the NAIT system. All animal movements are
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then recorded. Hutchings says over the last three years 80,257 farmers have registered with NAIT; they recorded 1.6 million movements made up of 16.4 million animal movements. For one week in March last year, 9761 movements – 165,000 animals – were recorded. In one year, a calf rearing herd in Waikato recorded moving its stock to 1686 locations. Hutchings says the data shows the potential ramifications of any disease epidemic. “So,
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it’s very important for NAIT and TBfree to work together.” NAIT’s three-year transition period, which ends July 1, is allowing farmers to get used to the concept of tagging all their animals and recording their movement. “As we get to the end of the transition phase, we are looking at how to manage compliance and are working through an education process for farmers,” Hutchings says. @rural_news facebook.com/ruralnews
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RURAL NEWS // JUNE 16, 2015
30 ANIMAL HEALTH
Vets help boost farm income A VET-DESIGNED programme is helping farmers to boost their gross farm income. The programme was discussed at the recent New Zealand Veterinary Association Sheep, Beef and Deer Conference in Queenstown earlier this month. Gross farm income increased by $12.37 per ewe for farmers using the StockCARE system, compared to the farms in the same regions in the Meat and Wool Economic Survey. The programme was tested for over three years (2001-2003) and focused on identifying and defin-
ing the key performance indicators of all production systems on each farm. It also monitored farm soil fertility and financial performance. The pilot farms’ cash surpluses increased by 48% compared to 21% in the M&WES survey. Veterinarian Chris Mulvaney, from AgriNetworks in Te Awamutu, who designed the programme, told the conference that StockCARE is designed to help sheep and beef farmers measure what they manage within their business. It is based on the principles of adult learning, change manage-
ment and business improvement. “It is a proven effective programme for farmers committed to improving their performance,” says Mulvaney. “It’s unique in that it has a particular focus on animal production systems as these are the real drivers of farm performance and profitability.” A between-farm comparison was used to identify opportunities for improvement in all the production systems. Each individual farm was compared to the top quartile, average and low quartile for the outcome and key drivers. The farms that make up the
top and low quartiles are the same farms for the drivers. Nutrition, genetics and animal health are the main opportunities for improvement. Mulvaney says the programme has some important points of difference such as incorporating principles of adult learning, change management and business improvement. “Its real strength is in knowing what others do on their farms and knowing what you are doing on your farm is powerful.” @rural_news facebook.com/ruralnews
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MINIMISE METABOLIC HERD RISKS IT’S THE calm before the calving season and a bit of planning now will help herds get through without the risk of metabolic disorders, such as milk fever, which can lead to downer cows or impact future milk production, claims mineral supplier SealesWinslow. These disorders are prevalent just before or after calving, triggered by an inability to mobilise enough calcium. Subclinical cases of milk fever can be hard to pick up, with industry data indicating that for every downer cow it is likely that between 10 and 15 others in the herd will have early stage milk fever symptoms. “It’s estimated that the cost of a clinical case of milk fever can reach up to $1,500 per cow – including lost milk production, reduced fertility, and increased likelihood of culling due to other diseases such as mastitis. Not only is the risk a costly one, it’s also unnecessary,” says SealesWinslow’s Jackie Aveling. She says there is a clear link between nutrients and vitamins, and reproduction and lactation in dairy herds. “Using supplements pre and post calving is a good preventative strategy for metabolic diseases and also sets up cows well for lactation post calving. What’s important is ensuring supplements are readily available well before the calving really picks up from July.” Dehydrated molasses blocks, such as Crystalyx Dry Cow can be used as a sole source supplement, and need to be available to stock for 60 days prior to calving and then throughout the colostrum period. The dehydrated molasses helps to ensure cows get the right intake, and the minerals and vitamins help to improve the general immunity of the cow. Aveling says other options include SealesWinslow’s Cattle High Magnesium Block or the Cattle Winter Crop Block. Both are suitable for farmers who want cost-effective delivery of precalving magnesium supplementation as part of a programmed approach, and will help ensure stock receive the minerals and trace elements they need. Aveling says farmers participating in the trials also commented that cows on Crystalyx were calmer, quiet and settled well into milking.
Tag and register by July 1. The reasons why go way beyond the rules. Yes, you have to, but spare a moment to think about why. When your stock is traceable, NAIT can help swiftly contain a disease that’s moved on to your farm and find the source. It’s a big reassurance for your farm and business. It also helps keep our exports competitive. Tag and register all cattle by 1 July and you’ll do more than just play by the rules. To learn more, visit nait.co.nz/1July
An OSPRI programme
RURAL NEWS // JUNE 16, 2015
ANIMAL HEALTH 31
Treats for training? I AM often asked if I use ‘treats’ to train dogs. My answer is, very occasionally. I’ve mentioned before that I feed my pups twice a day, so whenever they go back to the pup pen after being loose, they are at my feet wanting to get in: warm milk and food is hard to resist. I also find food great for teaching a pup to lie down and wait patiently, learning the command ‘stay’. When a pup is around 7 – 10 weeks old I hold a small piece of something tasty on the ground to coax the pup to lie down. The meat is hidden in my hand and as the pup tries to find it I gently push down on the shoulders. As soon as (and this is important) the pup’s brisket touches the ground I immediately say ‘stay’ and release the meat. Timing is critical. By saying ‘stay’ the moment the pup’s brisket/belly touches the ground it will associate the word with the lying-down action. Saying it while it is in a standing position, with you trying to get it down, isn’t the right time; the right time for easy learning is the exact moment it is in the lying position and not before. Giving the meat at that exact moment rewards the action. Stand the pup up, and repeat all. Do this at least six times in each short training season. After a few times, if you are doing it correctly, you will need only to put your hand
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on the ground and the pup will lie down. If you point with your finger as you do it, the pup not only learns that ‘stay’ is to lie down but also, if you point to the ground, it will lie down. I find both very useful. If you say ‘good girl/boy’ as you release the food, the pup is associating those words with a reward from you for something well done. Later when the pup starts working stock and you want to praise it at the very moment it does the correct thing, those two words will work wonders. Overuse the words and they will mean nothing and you will sound like a cracked record. Once the pup understands that ‘stay’ is to lie down, withhold the food for a few moments. In time you are aiming for: you standing upright, pointing to the ground, ‘stay’ and the pup to lie down, patiently waiting for your approval. Walk backwards a few paces and stand still before walking back to the pup and rewarding it for staying. That is important – reward it at the staying position. If you call it to you, you are rewarding it for coming to you, not staying. When it is lying still don’t keep saying ‘stay’, only say that if the pup starts to stand. It is up to you to be alert and anticipate it getting up; don’t wait until it is up and walking to you; say ‘stay’ before it is up on its feet.
Treat or not to treat; that is the question.
Once it well and truly understands the word, lies down immediately and stays for a minute or two, then you can stop the treat and ‘good boy/girl’ becomes the reward. This is the only training I do with food; I don’t want dogs looking for and expecting it other than at feed time; words of praise or stroking are just as effective.
It winds me up seeing ‘townies’ with treat pouches strapped to their waist dishing out titbits for every command their dog obeys; do they give their child a sweet every single time they ask something of it? • Anna Holland is teaching people dog training. For more information www.annaholland.co.nz or Ph 06) 212 4848 or annaholland@xtra.co.nz
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RURAL NEWS // JUNE 16, 2015
Nematodirus
Tric. Axei
Company
Available through
Active Ingredient (s)
Concentration
Ingredient Dose Rate
Formulated Dose Rate
W’Holding Period (Meat)
Nilvax ® Selenised
Coopers
All major retail outlets
Levamisole and 5-in-1 vaccine
68g/L
1.25mg/mL
26-65kg = 4.0mLs, 66-80kg = 4.5mLs, over 81kg see Note 1
21 days
3x dose rate
No
mature ★ immature ★
★ ★
★ ★
★ ★
Paramectin® Injection
Jurox NZ Ltd
Selected Resellers
Abamectin
10mg/mL
0.2mg/kg
1mL/50kg
49 days
5X
No
mature ★ ★ ★ immature ★ ★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
Exodus 1% Injection
Merial Ancare
Veterinary Clinics
Moxidectin
Moxidection 10g/L
0.2mg/kg
1mL/50kg
28 days
10x
No
mature ★ ★ ★ immature ★ ★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
Product
Safety Margin
Parasite Maturity
Ostertagia
Ovicidal
Haemonchus
Abomasum
2015 RURAL NEWS SURVEY OF TREATMENTS FOR INTERNAL PARASITES OF PRE-LAMB EWES INJECTABLE
Exodus Long Acting Injection
Merial Ancare
Veterinary Clinics
Moxidectin
20g/L
1mg/kg
1ml/20kg
91 days
5x
No
mature ★ ★ ★ immature ★ ★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
Genesis Injection
Merial Ancare
Veterinary Clinics
Abamectin
10mg/mL
0.2mg/kg
1mL/50kg
28 days
5x
No
mature ★ ★ ★ immature ★ ★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
Ivomec Injection
Merial Ancare
Veterinary Clinics
Ivermectin
10g/L
0.2mg/kg
1mL/50kg
35 days
10x dose rate
No
★★★ mature ★ ★ ★ immature ★ ★ ★ 1 ★ ★ ★ 1 ★ ★ ★
1
Abamectin Injectin
Ravensdown
Ravensdown
Abamectin
10g/L Abamectin
0.2mg/kg Abamectin
1mL/50kg
28 days
5X
No
mature ★ ★ ★ immature ★ ★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
Dectomax Injection
Zoetis
Veterinary Clinics
Doramectin
10mg/mL
0.2mg/kg
1mL/50kg b.w.
35 days
15x dose rate
No
mature ★ ★ ★ immature ★ ★ ★
★★★ ★★★ ★★★1 ★★★
★★★ ★★★
Cydectin Injection
Zoetis
All outlets
Moxidectin
10g/L
0.2mg/kg
1mL/50kg
28 days
10x dose rate
No
mature ★ ★ ★ immature ★ ★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
Cydectin Long Acting Injection for Sheep
Zoetis
All outlets
Moxidectin
20g/L
1mg/kg
1mL/20kg
91 days
5x dose rate
No
mature ★ ★ ★ immature ★ ★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
Eweguard
Zoetis
All outlets
Moxidectin Plus 6 in 1 vaccine
5g/L
0.2mg/kg
1mL/25kg
49 days
10x dose rate
No
mature ★ ★ ★ immature ★ ★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
Bayer NZ Ltd
CRT, Farmlands
Moxidectin
2g/L
2mg/ml
1mL/10kg
10 days
10x
No
mature ★ ★ ★ immature ★ ★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
ORAL MOXAM Sheep MOXAM Sel Sheep
Bayer NZ Ltd
CRT, Farmlands
Moxidectin Selenium
2g/L 1mg/ML
2mg/ml
1mL10kg
10 days
10x
No
mature ★ ★ ★ immature ★ ★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
Concur Sheep Himin
Bayer NZ Ltd
Allied Farmers, CRT, Farmlands
Oxfendazole, Levamisole
22.7g/L, 40g/L
4.5mg/kg, 7.5mg/kg
1mL/5kg
10 days
3x
Yes
mature ★ ★ ★ immature ★ ★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
Evolve Sheep Himin
Bayer NZ Ltd
Allied Farmers, CRT, Farmlands
Abamectin, Levamisole, Oxfendazole
1g/L, 40g/L, 22.65g/L
0.2mg/kg, 8mg/kg, 4.53mg/kg
1mL/5kg
21 days
3x
Yes
mature ★ ★ ★ immature ★ ★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
Saturn Sheep Himin
Bayer NZ Ltd
Allied Farmers, CRT, Farmlands
Levamisole, Abamectin
40g/L, 1g/L
7.5mg/kg 0.2mg/kg
1mL/5kg
21 days
3x
No
mature ★ ★ ★ immature ★ ★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
ALLIANCE®
COOPERS
All major retail outlets
Oxfendazole, Levamisole, Abamectin
45.3g/L 80g/L 2g/L
4.53mg/kg 8mg/kg 0.2mg/kg
1mL/10kg
14 days
3x
Yes
mature ★ ★ ★ immature ★ ★ ★
CONVERGE®
COOPERS
All major retail outlets
Levamisole Abamectin
80g/L 2g/L
8mg/kg 0.2mg/kg
1mL/10kg
14 days
3x
No
mature ★ ★ ★ immature ★ ★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
SCANDA® Available in Plain and Selenised
COOPERS
All major retail outlets
Oxfendazole Levamisole
45.3g/L 80g/L
4.53mg/kg 8mg/kg
1mL/10kg
10 days
3x
Yes
mature ★ ★ ★ immature ★ ★ ★
Q-drench®
Jurox NZ Ltd
Selected resellers
Abamectin, Albendazole, Levamisole HCI, Closantel
1.0g/L Abamectin, 25.0g/L Albendazole, 40.0g/L Levamisole HCI, 37.5g/L Closantel
0.2mg/kg Abamectin, 5.0mg/kg Albendazole, 8.0mg/kg Levamisole HCI, 7.5mg/kg Closantel
1mL/5kg
28 days
3x
Yes
mature ★ ★ ★ immature ★ ★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
Troika™
Jurox NZ Ltd
Selected resellers
Abamectin, Albendazole, Levamisole HCI
1.0g/L Abamectin, 25.0g/L Albendazole, 40.0g/L Levamisole HCI
0.2mg/kg Abamectin, 5.0mg/kg Albendazole, 8.0mg/kg Levamisole HCI
1mL/5kg
21 days
3x
Yes
mature ★ ★ ★ immature ★ ★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
Strategik Combo Dual Action Mineralised Sheep & Lamb Drench
Jurox NZ Ltd
Selected Retailers
Albendazole, levamisole
24g/L, 37.5g/L
4.75mg/kg, 7.5mg/kg
1mL/5kg
10 days
3x
Yes
mature ★ ★ ★ immature ★ ★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
Bionic Hi Mineral Capsules
Merial Ancare
Veterinary Clinics
Abamectin, 160mg Abamectin, 4.62g Albendazole, Selenium Albendazole, 26mg Selenium, & Cobalt 120mg colbalt per capsule.
20µ Abamectin, 0.5mg Albendazole/kg/day
1 capsule 40-80kg
128 days
3 capsules
Yes
mature ★ ★ ★ immature ★ ★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
Extender SeCo Capsules
Merial Ancare
Veterinary Clinics
Albendazole, Selenium & Cobalt
4.62g Albendazole capsule, 24mg Selenium, 118mg Cobalt
ABZ 0.5mg/day Se 0.24mg/ day, Co 1.18mg/day
1 capsule 40-80kg
Nil
5 capsules
Yes
mature ★ ★ ★ immature ★ ★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
Ivomec Maximizer CR (for adult sheep) Capsules
Merial Ancare
Veterinary Clinics
Ivermectin
160mg/capsule
20µ/kg/day
1 capsule 40-80kg
126 days
5x capsules
No
★★★ ★★★ ★★★ mature ★ ★ ★ immature ★ ★ ★ 1 ★ ★ ★ 1 ★ ★ ★ 1 ★ ★ ★ 1
Matrix Hi Mineral Oral Drench for Sheep
Merial Ancare
Veterinary Clinics
Abamectin, Oxfendazole, Levamisole
1g/L Abamectin, 22.7g/L Oxfendazole, 40g/L Levamisole, 0.5g/L Selenium & 2.2g/L Cobalt
0.2mg/kg Abamectin, 4.5mg/kg Oxfendazole, 8mg/kg Levamisole
1mL/5kg
14 days
3x
Yes
mature ★ ★ ★ immature ★ ★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
Matrix Minidose
Merial Ancare
Veterinary Clinics
Abamectin, Levamisole, Oxfendazole
2g/L Abamectin, 80g/L Levamisole, 45.4g/L Oxfendazole, 1g/L Selenium, 4.4g/L Cobalt
0.2mg Abamectin, 8mg Levamisole, 4.54mg Oxfendazole/kg
1mL/10kg
14 days
3x
Yes
mature ★ ★ ★ immature ★ ★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
Switch Hi Mineral
Merial Ancare
Veterinary Outlets
Abamectin Levamisole
1g/L Abamectin, 40g/L, Levamisole, 0.2mg Abamectin, 0.5g/L Selenium, 2.2g/L Cobalt 8mg Levamisole/kg
1mL/5kg
14 days
3x
Yes
mature ★ ★ ★ immature ★ ★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
Abamectin Sheep
Ravensdown
Ravensdown
Abamectin
1g/L Abamectin
0.2mg/kg Abamectin
1mL/5kg
14 days
5X
No
mature ★ ★ ★ immature ★ ★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
Combo Low Dose
Ravensdown
Ravensdown
Oxfendazole & Levamisole
45.3g/L Oxfendazole & 80g/L Levamisole
4.5mg/kg Oxfendazole & 8mg/ kg Levamisole
1mL/10kg
10 days
3X
Yes
mature ★ ★ ★ immature ★ ★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
Combo Sheep
Ravensdown
Ravensdown
Albendazole & Levamisole
24g/L Albendazole & 37.5g/L Levamisole
4.8mg/kg Albendazole & 7.5mg/kg Levamisole
1mL/5kg
10 days
3X
Yes
mature ★ ★ ★ immature ★ ★ ★
Moximax Sheep
Ravensdown
Ravensdown
Moxidectin
1g/L Moxidectin
0.2mg/kg Moxidectin
1mL/5kg
7 days
10X
No
mature ★ ★ ★ immature ★ ★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
Trio Sheep
Ravensdown
Ravensdown
Abamectin, Albendazole & Levamisole
1g/L Abamectin, 25g/L Albendazole & 40/L Levamisole
0.2mg/kg Abamectin, 5.0mg/kg 1mL/5kg Albendazole & 8.0mg/kg Levamisole
14 days
3X
Yes
mature ★ ★ ★ immature ★ ★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
Cydectin Oral Drench Vetdectin Oral Drench
Zoetis
Vets, OTC outlets
Moxidectin
1mg/mL
0.2mg/kg
1mL/5kg
10 days
> 10x dose rate
No
mature ★ ★ ★ immature ★ ★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
Startect
Zoetis
Vet Only
Abamectin Derquantel
1mg/mL 10mg/mL
0.2mg/kg 2mg/kg
1mL/5kg
14 days
3x
No
mature ★ ★ ★ immature ★ ★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
Product Comment (INJECTABLE)
3. Prevents reinfection wth Haem
1. Effective against L3 stages.
The Rural News Pre-Lamb Ewe I responsibility or liability for inac
2. Also for use in cattle & pigs, effective against itchmite and inhibited L4 stage Ostertagia. 3. Additives: contain antigens of 5 clostridial diseases and cheesy gland. Effective against inhibited stages of Haemonchus, Ostertagia and Trichostrongylus. 4. Non-irritant injection, prevents re-infection with Haemonchus contortus and Ostertagia circumcincta for at least 35 days and Trichostrongylus colubriformis for at least 7 days following a single subcutaneous injection. Use in sheep that have been vaccinated against footrot is not recommended. 5. Levamisole is a short acting drench. Also contains a 5 in 1 vaccine. 6. Also available with 1.25mg/ml Selenium 7. 1: Includes inhibited stages and BZ-resistant parasites. 2: 1st, 2nd & 3rd instars. 3: AIP Aids in Protection. 8. Injection site is high on the neck, at the base of the ear. Prevents reinfection with Haemonchus contortus for 91 days, Ostertagia circumcincta for 112 days and Trichostrongylus colubriformis for 42 days.
Product Comment (ORAL)
1. Aids in control of dags and blowfly strike in the breech area and reduces pasture contamination from worm eggs for at least 100 days. Effective against strains of H.contortus,O. circumcincta and T.colubriformis resistant to benzimidazole, levamisole and morantal drenches and strains of T.axei and N.spathiger resistant to benzimidazole drenches. 1.Effective against L3 stages. Effective against itchmite and keds. 2. Gives continuous protection against all major species of worms for at least 100 days. 1. Efficacy not yet established.
PROUDLY AVAILABLE FROM YOUR LOCAL VETERINARY CLINIC. Merial is a Sanofi company. MERIAL NZ LTD. LEVEL 3, MERIAL BUILDING, OSTERLEY WAY, MANUKAU, AUCKLAND, NEW ZEALAND | WWW.MERIAL.CO.NZ | BIONIC® IS A REGISTERED TRADEMARK OF MERIAL. REGISTERED PURSUANT TO THE ACVM ACT 1997 | NO. A9646 | ©COPYRIGHT 2014 MERIAL NZ LTD. ALL RIGHTS RESERVED. NZ-14-BIO-104.
MAL_Bionic Brand Advert_2014_140x544mm.indd 1
N E W Z E A L A N D FA R M E R 1 0 0 D AY P R O T E C T I O N A
TAPEWORMS: (Monziezia)
MITES (Psorergates ovis)
FLUKES: (Fasciola)
KEY TO SURVEY
BLOW FLY (Lucilla cuprina)
Trichuris
Chabertia
Oesphagostomum
Trichostrongylus
Bunostomum
Strongyloides
Cooperia
Lungs Dictyocaulus
Lge Intestine
Small Intestine
NASAL BOT Oestrus ovis: (Larvae)
RURAL NEWS // JUNE 16, 2015 ★ ★ ★ - 95% to 100% efficacy ★ ★ - 75% to 95% efficacy ★ - 50% to 75% efficacy Blank- No registered claim N/S – Information not supplied N/D – No data N/A – Not applicable
COMMENT ★ ★
★ ★
★ ★
★ ★
★ ★
Note 1: Nilvax dose rates: 20-25kg = 3.5mLs, 26-65kg = 4.0mLs, 66-80kg = 4.5mLs, 81-90kg = 5.0mLs, 96-105kg = 6.0mLs.
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
Also registered for cattle (internal and external parasite control).
★★★
★★★ ★★★
★★★
★★★ ★★★
★★★
★★★ ★★★
★★★ ★★★
Provides at least 35 days protection against Ostertagia circumcincta and Haemonchus contortus and at least 7 days against Trichostrongylus colubriformis
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
Note 8 also applies
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
YES
★ ★
★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
ND
★★★ 1
★ ★
ND
ND ★★★ ★★★1
★★★
★★★ ★★★
★★★ ★★★ ★★★1
NO
NO
Note 2 Registered for sheep and cattle
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
ND ND
★★★ ND
★★★ ★★★
ND ND
★★★ ND
★★★ ND
★★★ ★★★
★★★
★★★
ND ND
ND ND
★★★ ★★★
★★★
★★★ ★★★
★★★ ND
★★★ ★★★
★★★
★★★ ★★★
★★★ ★★★
ND ND
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ND
★★★ ★★★
★★★
★★★ ND
ND ND
ND ND
★★★ ★★★
★★★
★★★ ★★★
★★★ ND
★★★ ★★★
★★★
★★★ ND
★★★ ND
ND ND
★★★ ★★★
★★★ ND
★★★ ★★★
★★★ ND
★★★ ★★★
★★★
★★★ ND
★★★ ★★★
★★★
★★★ ND
★★★ ND
ND ND
★★★ ★★★
★★★ ND
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
ND ND
★★★ ★★★
★★★ ★★★
★★★ ★★★
YES ND AIP 3
Note 2 & 7
★★★ ★★★
Note 4 Note 8 Also effective against itchmite (Psoregates ovis) Note 3 & 4
★★★ ★★★ ★★★ ★★★ ★★★
NO
★★★ ★★★ ★★★1
★★★ ★★★
★★★ ★★★
NO
Note 3 Note 3 ★★
ND ND
Contains minerals Cobalt, Copper, Iodine, Selenium, Zinc.
ND ND
Contains minerals Cobalt, Copper, Iodine, Selenium, Zinc.
★★★ ★★★
★★★ ★★★
ND ND
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★
★★★ ★★★
★★★ ★★
★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★
★★★
★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★
★ ★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
NO
NO
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
2 2
★★★ ★★★ ★ ★ ★ 1 ND
ND ND
★★★ ★★★ ★★★ ★★★ ★ ★ ★ 1 ★ ★ ★ 1 ★ ★ ★ 1 ND
★★★ ★★★1 ★★★
★★★ ★★★
★★★ ★★★
ND ND
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
ND ND
ND ND
ND ND
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
YES
NO
NO
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
YES
NO
NO
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
Contains minerals Cobalt, Copper, Iodine, Selenium, Zinc.
★★★
YES
Dual combination oral drench for cattle and sheep. Available in Plain and Selenised.
Contains minerals Cobalt, Copper, Iodine, Selenium, Zinc.
Note 1 Also contains 0.5g/L Selenium 2.2.g/L Cobalt
Fully mineralised; contains minerals Selenium, Cobalt, Copper, Iodine & Zinc.
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★
Fully mineralised; registered for sheep and cattle.
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★
Mineralised; contains minerals Selenium, Cobalt, Copper & Zinc.
★★★
★★★
★★★ ★★★
★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ★★★
★★★ ND
★★★ ND
ND ND
★★★ ★★★
★★★
★★★ ★★★ ★★★ ★★★
★★★ ★★★
Fully mineralised; contains minerals Selenium, Cobalt, Copper, Iodine & Zinc. ★★
Fully mineralised; contains minerals, Selenium, Cobalt, Copper, Iodine & Zinc.
★★★
★★★ ★★★
★★★ ND
★★★ ★★★
★★★ ND
★★★ ★★★
Note 3 Also effective against itchmite (Psoregates ovis) Note 4. Also available with 0.5mg/ml selenium.
★★★ ★★★
★★★
★★★
★★★
★★★ ★★★
Effective against adult and immature (L4) stages of sensitive strains of parasites including those resistant to levamisole, benzimadazole, macrocyclic lactones and closantel drenches and combinations of these. 2. Also controls itchmites
★★★
1. Effective against L3 stages. 2. Also for use in cattle & pigs, effective against itchmite and inhibited L4 stage Ostertagia. 3. Additives: contain antigens of 5 clostridial diseases and cheesy gland. Effective against inhibited stages of Haemonchus, Ostertagia and Trichostrongylus. 4. Non-irritant injection, prevents re-infection with Haemonchus contortus and Ostertagia circumcincta for at least 35 days and Trichostrongylus colubriformis for at least 7 days following a single subcutaneous injection. Use in sheep that have been vaccinated against footrot is not recommended. 5. Levamisole is a short acting drench. Also contains a 5 in 1 vaccine. 6. Also available with 1.25mg/ml Selenium 7. 1: Includes inhibited stages and BZresistant parasites. 2: 1st, 2nd & 3rd instars. 3: AIP Aids in Protection. 8. Injection site is high on the neck, at the base of the ear. Prevents reinfection with Haemonchus contortus for 91 days, Ostertagia circumcincta for 112 days and Trichostrongylus colubriformis for 42 days.
Triple combination oral drench for cattle and sheep. Contains Cobalt and Selenium.
Dual combination oral drench for cattle and sheep. Contains Cobalt and Selenium. ★★★
Product Comment (INJECTABLE)
Product Comment (ORAL) 1. Aids in control of dags and blowfly strike in the breech area and reduces pasture contamination from worm eggs for at least 100 days. Effective against strains of H.contortus,O. circumcincta and T.colubriformis resistant to benzimidazole, levamisole and morantal drenches and strains of T.axei and N.spathiger resistant to benzimidazole drenches. 1.Effective against L3 stages. Effective against itchmite and keds. 2. Gives continuous protection against all major species of worms for at least 100 days. 1. Efficacy not yet established. 3. Prevents reinfection wth Haemonchus contortus for 35days and Ostertagia circumcincta for 21days The Rural News Pre-Lamb Ewe Internal Parasite Control Survey is compiled from information supplied by animal health companies. Although the information has been checked by our independent animal health advisor, Rural News accepts no responsibility or liability for inaccuracies. The efficacy classifications relate only to where no resistance is present. If a concern exists please contact a veterinarian.
monchus contortus for 35days and Ostertagia circumcincta for 21days
nternal Parasite Control Survey is compiled from information supplied by animal health companies. Although the information has been checked by our independent animal health advisor, Rural News accepts no ccuracies. The efficacy classifications relate only to where no resistance is present. If a concern exists please contact a veterinarian.
R S T R U S T B I O N I C S H E E P C A P S U L E S T O D E L I V E R B E T T E R R E S U LT S A N D A G A I N S T A L L M A J O R PA R A S I T E S .
11/06/14 1:45 PM
RURAL NEWS // JUNE 16, 2015
34 MACHINERY & PRODUCTS
Taranaki contractors know their stuff MARK DANIEL markd@ruralnews.co.nz
THE MORRATTIS know a quite a bit about agricultural contracting. K & G Morratti Contracting was founded 52 years ago by Ken and is now run by son Billy, who
has 30-plus years under his belt. During this time they’ve seen fads become trends. Trends develop into systems and the Morattis’ have changed their game to meet changing demands. Today they offer a range of services – grass
harvesting in bales or pit silage, effluent pumping and spreading, mulching, maize planting and harvesting. Operating out of Inglewood, their territory spreads from Awakino in the north to Hawera in the south, and employs up to 35 people at the height of
Billy Morratti has 30 years contracting experience under his belt.
the season. The geography they cover results in a wide range of weather conditions, influenced by the sea and the mountain. The topography ranges from flat dairy pastures to small paddocks on sidling land with conditions underfoot leaning towards damp a lot of the time. A large part of their business revolves around round bales, which offer a low cost method of conservation for the smaller producers and a way to absorb excess production for the larger, pit silageorientated operations. The favoured brand is Krone from Germany, which currently makes up their fleet of eight units. Asked why the business favours this particular brand, they say it is because the silage produced today is a far cry from the baleage pro-
Morratti Contracting’s Krone baler/wrapper in action.
duced 15 years ago. “Back then the crop was probably only one day away from being hay, whereas today the crops we handle are lusher and wetter and the end product is much heavier,” Billy Morratti told Rural News. “The Krone machines cope with this type of crop much better than other brands we have tried, particularly with short, wet grass, which we see a lot of in Taranaki.” The Krone Coprima CF155 XC that currently leads the charge is somewhat different from other balers on the market which favour rollers or belts. These machines use a rubber/fabric drive belt and slat system that ‘positively’ turns the bale in all conditions, particularly in
The chamber is semivariable from 1.25-1.50m diameter, so will effectively produce bales from 8 to 15-bale equivalents. In practice 90% of the bales produced by the Moratti machines are about 10-bale equivalent. At this size output is about 35-40 bales per hour. Once the bale is formed the system alerts the drivers and the net wrap system applies the required number of layers. Once the rear door is opened a transfer arm transfers the bale onto the wrapper table and the wrapping cycle begins. Twin satellites place six layers of film on the bale, prior to the table lowering the bale to the ground and a trip arm flipping the bale
short wet crops. The need to operate in these conditions is highlighted by the fact that in November 2014 they saw some kind of rain for 28 days on end. At the front end of the machine is a 2.05m wide camless pickup reel. This positively pushes the grass towards the bale chamber and is quiet and low maintenance. The latter point was noted as a great benefit by Moratti, because the undulating ground in Taranaki is notoriously hard on pickups on all types of machinery. The crop then is carried into the bale chamber by a knife rotor using 17 individually spring loaded chopping knives to achieve a nominal chop length of 42mm.
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RURAL NEWS // JUNE 16, 2015
MACHINERY & PRODUCTS 35 ON FARM SAFETY REFORMS COMING... HEALTH AND safety reforms on farm are coming, according to consultants OnFarmSafety New Zealand. The company says from talking to farmers in recent months, it seems many remain confused. “The problem is it all seems too hard and the general perception is that most don’t know where to start; it will involve a lot of paperwork and be very timetaxing,” it claims.
MACHINE WILL APPEAL TO ORCHARDISTS MARK DANIEL markd@ruralnews.co.nz
LANDINI IMPORTER Agtek has recently launched the all-new Rex DT90GE. The GE suffix denotes ‘ground effect’ in a tractor that offers a seat height of 840mm which should allow orchardists to use the unit in canopies with restricted head space. Power comes from a Perkins Tier 3 4cyl 4.4L engine delivering 83hp and 353Nm torque, as opposed to much of the competition that offers only 3cyl units in this class. This engine delivers low end torque and power at reduced engine revs. The Landini built transmission is available with either a 24F x 12R speed synchro-shuttle or 30Fx30R power-shuttle option, for those doing repetitive shuttle actions. In both cases a de-clutch button is included on the main gear lever The new Rex has a much-remodelled operator platform to improve ease of operation and reduce operator fatigue; ergonomic control layout and enhanced driver positioning will make long or repetitive tasks less tedious. The Rex 90GE is available in two options: with either the original factory fitted guards or heavy steel rolled guards, which lowers the tractor and makes it suitable for use in kiwifruit operations.
“You will have to set up some good sound health and safety systems, but it doesn’t need to feel like you’re planning the next Mount Everest expedition. “Your health and safety system needs to work for you, your style of doing business and in a way that gives you peace of mind that you have taken ‘all practicable steps’ to ensure the safety of anyone on your property, including staff, contractors and visitors.”
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up onto its end to await collection. Interestingly, Moratti Contracting has been working with the Krone development team on a system that replaces the normal net wrap with a plastic film applied directly onto the bale and then followed by the normal stretch film. There is a reduction in the time taken to apply the net, but more importantly, the bale diameter is held much tighter during the transfer phase, which results in better stretch film wrap and more air
exclusion from the finished bale. Moratti says the Krone Coprima 155 XC is perfect for the Taranaki area, due to its compact dimensions, moderate weight, and ground following tandem axle system. Quizzed about the impact of the low payout on the business in the coming season, he says farmers will resist buying bought-in supplements and make better use of the grass Taranaki can undoubtedly grow, which will undoubtedly keep Moratti Contracting busy too.
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FROM PAGE 34
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Know their stuff
client to give them the confidence that if there is a serious situation they have taken all the necessary measures required. Every workplace needs a health and safety plan. “If you are a oneman-band, you need to take all necessary precautions to ensure those coming onto your farm are safe and are fully aware of all the relevant hazards they could encounter.”
OnFarmSafety systems and processes are designed to make sure farmers are able to gain good working knowledge on the subject of health and safety, while still having the time to run their business. It starts the process with a full assessment audit of how you currently operate and what you do either informally or in writing. This enables the company to tailor a system specifically for each
INCLUDING LOADER S/L WITH 4 IN 1 BUCKET
4 YEAR, 2000 HOUR • Power Train Warranty 0% interest on finance until Feb 2016. Terms & conditions apply. Minimum of 10% deposit required (or your trade). Total GST to be paid in month 3. Consult your Power Farming dealer for specific terms & conditions. Loaders come with 4 in 1 bucket. Loaders pictured may vary from those supplied. † Conditions apply. Valid While Stocks Last
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PX1002 (100HP) • 32x32 transmission with creep & hi lo • Multi wet disc clutch/powershuttle • Auto 4WD
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RURAL NEWS // JUNE 16, 2015
36 MACHINERY & PRODUCTS
Humble beginnings sees business grow and grow on Duals for more traction, stability, flotation, towing power, versatility.
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Ph/Fax 07 347 2292 www.clicdualwheels.co.nz
PRODUCTION ORIENTATED FARMERS... Are you suffering from:
• Surface ponding of pastures? • Hay & silage being tramped into pasture and wasted?
Pugged paddocks can reduce pasture growth up to 60% DON’T PUT GOOD FERTILISER ON COMPACTED SOIL WHICH CAN’T ABSORB IT If your soil can’t support 15cm root growth and good worm population check for compaction. You could need aeration. In dollar terms, what would 20% production increase mean to your yearly turnover?
THE ORIGINAL scissor docking iron that started it all for Ted French’s business Te Pari Products “still ranks a prime seller for the company,” says the present-day owner and products sales and marketing director, Jeremy Blampied. And there’s much more. Products on the Fieldays site will include the firm’s recent auto cattle drafter and an electronic drench gun. “Our focus from 1998 (the year Blampied bought the business) was on cattle handling equipment as I have found farmers everywhere want quicker, more efficient and safe systems,” he says. Blampied’s sons work in the business: Nick in design and
production and Patrick in technical development. After five years in Auckland they moved the firm to Oamaru because “it suited the company with some 50% of sales being in the South Island and costs were reduced in the process.” In 2004 the company bought the Donald’s Woolpress manufacturing business and four years ago (2011) they The Ted French headbail from back in the 1970s that started it all. bought Racewell, which made sheep Later this year they drafting and handling will move to a new, systems. purpose built factory, Since 2002 the head retail showroom and office and factory, now with 60 staff, has enjoyed offices in Oamaru’s new business park at the uninterrupted sea views northern gateway on SH1. looking east onto the The firm exports Oamaru foreshore.
to Japan, US, Australia, Europe and even the Falkland Islands. One early client, Ian Cummings of Waiouru, bought a cattle crush then phoned back to say it “wasn’t strong enough,” Nick Blampied says. Te Pari collected it, re-engineered it and delivered it back to Cummings’ “wild central North Island bulls”. Now the ‘Cummings’ standard is the Te Pari standard and he has bought three more crushes, “all still working well”.
“We build them too strong,” quips Nick. Another early customer from Northland, a Simmental cattle breeder, needed his crush 500mm longer to allow for vets and others to work in safety inside at the back of the unit. This modification has also become a standard right up to today. Blampied says their products have won health and safety awards. Sue Satterthwaite, who with her husband Mike farms at Rotherham, says “Before the Te Pari yards we never allowed the kids into the yard when we were working with cattle. Now I’m OK for them to help Mike. I get into them myself and feel quite happy and safe.” www.tepari.com
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TED FRENCH, on a farm in Beaconsfield Valley, north of Feilding, started the company in 1980, its first product a scissor action docking iron he designed and built. Ted was joined by his son Peter
in the fledgling company and their docking iron went on to win accolades – the NZ Agricultural Fieldays Invention Award in 1980 and an Equipment Award in 1981. The company won six other Fieldays award and one Austra-
lian National Fieldays award over the next decade. During the next 17 years Te Pari’s range expanded in animal husbandry and handling products, including a head bail designed by French.
Eventually the business drew the attention of Doug Blampied, then service manager of a national rural company. The French family in 1997 sold the business to Blampied, who moved it to Auckland.
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RURAL NEWS // JUNE 16, 2015
MACHINERY & PRODUCTS 37 Green machine’s brand works THE JOHN Deere logo is probably recognised by anyone in agriculture, but a 2014 Top 100 of Global Brands and their perceived values produced by Interbrand showed JD was even recognised by the greater public, coming in at 79th position with a value of $5.12 billion. Surprisingly, there were no other recognised brands with an agricultural leaning other than Caterpillar, probably better known for its construction equipment, that came in at 61st with a value of $6.8b. No surprises then to see Apple as the most recognised brand (value $118b), Toyota 43rd ($43b), Mercedes 10th ($34.2b) and Ford down at 39th ($10.8b). Interestingly, the readily recognised ‘leaping deer’ was first registered by Deere in
The John Deere brand is globally recognised.
1876 when it was more locally known as The Moline Plow Company, its core business producing about 60,000 ploughs a year. The original trademark showed a deer bounding over a log – a huge mistake by the designer because it featured an African deer not the
K 5 $of n i w wortahr
Native American white tailed deer that appeared in later versions of the trademark. Deere has updated its logo about six times since the late 19th century. The last change in 2000 was to a deer with its hind legs planted firmly on the ground, signifying the heritage and roots of
the company, while the leaping deer with raised front legs captured the essence of a company moving boldly into the new millennium. What’s certain is that the next time this logo gets a tweak it won’t cost $26 million and will always feature the leaping deer.
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JD’S EARNING TAKE A DIP DEERE AND Co, the owners of the John Deere tractor brand, has reviewed its earnings forecast for the financial year to October, saying it will finish at about US$1.9 billion despite sales having fallen by 19% in the year so far, not 17% as previously forecast. Earnings Feb-April dropped 30% to US$690.6 million, on revenues down 20% to US$ 7.40b, much less than forecast. Samuel Allen, chairman and chief executive, said “JD expects to be solidly profitable in 2015 despite a pullback in the farm machinery sector. All in all we remain confident in the company’s direction and our ability to meet our customers’ needs.” First quarter results were noteworthy in light of the weakness
blighting the global agricultural sector. Deere agricultural sales fell 25% to US$ 5.77b; the construction division gained 2% to finish at US$ 1.63 billion. Lower commodity prices and falling farm incomes put pressure on demand for agricultural machinery, particularly larger items such as combine harvesters and large tractors traditionally bought by Canadian and North American grain farmers. Deere predicts the market in Brazil will fall by 15-20% due to economic uncertainty and the high-interest government loans normally used to fund agriculture. The Canadian and US markets look likely to fall by only 25% as the the livestock sector show signs of rallying on the back of low grain prices.
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RURAL NEWS // JUNE 16, 2015
38 MACHINERY & PRODUCTS
More than harvesters MARK DANIEL markd@ruralnews.co.nz
average spending on R&D, as shown in the recent commissioning of a new testing and validation facility near Trange, France. Based on two state-of-the-art test benches, the facility allows design-
UNTIL THE early 1990’s Claas was known as a manufacturer of harvesting machinery for the grain and livestock industries, but that changed in 1993. The introduction of the Xerion systems tractor moved Claas into a whole new sector, with a machine that incorporated the concepts of a modern tractor and a specialised systems vehicle. It spawned a new generation of units that could be pushed, pulled or carried and make the most of the Xerion’s shiftable cabin, Claas has commissioned a new testing and validation facility in France. load platform and ZF sourced HM8 continuously variable ers and engineers to simulate the position. More importantly, it signalled entire working life of a machine in Claas’ intention to become a long- a few short weeks. Housed in a purline supplier, and break into the con- pose-built 12m structure, the massive ventional tractor market. This came test benches are mounted on earthabout in 2003 when Claas bought quake-proof floor pads constructed a majority shareholding in Renault from 950 tonnes of concrete and 60 Agriculture and, in particular, the Le tonnes of steel. The benches are large enough to Mans tractor plant Claas is well known for its above take the company’s entire range of
tractors, combines and forage harvesters. As well as ‘whole’ machine tests they can be used for individual component tests with a high level of precision and, more importantly, repeatability. Working 24/7, data can be generated in a few hours which would have typically taken many months, significantly reducing product development lead times. New designs can be given preliminary tests early in their life, refinements can be made and re-tests carried out. From the test benches machines will typically move to test tracks before completing extensive in-field testing of up to 40,000 hours. Group product manager for CLAAS Tractors, Dave Knowles, says “This technology means customers can be assured they are investing in high performance machines that not only increase their productivity, efficiency and comfort, but are even more reliable.”
Polaris makes its mark at Woodhill POLARIS PROVED a tough competitor at the recent Woodhill 100 Endurance Race. The event is the sport’s oldest, and probably toughest, one day endurance event, held in the Woodhill forest northwest of Auckland. Held over Queen’s Birthday weekend, with classes for unlimited trucks, SUV’s and UTV’s, the punishing course always makes finishing an achievement. This year’s 35th running of the event proved no different. The UTV class sponsored by Polaris, the leading player in the power sports industry, proved a great day out for the manufacturer’s RZR’s.
After a dominant qualifying round on day one, Polaris held the first three positions on the grid for the race start, with factory rider Ben Thomasen on pole. Thomasen took the trophy for the UTV class and finished second overall in the standings, missing out on the top spot by just a meagre 44 seconds. To compound the drubbing dished out by Polaris RZR riders, third overall went to Carl Ruitermann and fourth to Phil Smart. In the top 10 placings overall Polaris won six places and showed its machines with “cutting edge technology, high performance and enduring reliability delivered when it matters”. – Mark Daniel
MAHINDRA EXPANDS THE $17 billion Mahindra Group (M&M) says it will buy a 33% stake in Mitsubishi’s tractor and agricultural division for $25 million. The move takes
allow an upgrade of technology, new product R&D and the establishment of a joint development programme for tractors and machinery.
M&M into the world’s third largest economy and gains it four seats on the board of Mitsubishi (MAM). From MAM’s viewpoint, the injection of funds will
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RURAL NEWS // JUNE 16, 2015
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