Rural News 15 September 2015

Co m m an der M A X 2014 & u 7150019 63

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SEPTEMBER 15, 2015: ISSUE 592

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NEWS The traffic light fruit that has wooed the world. PAGE 18

MANAGEMENT Hawkes Bay readies itself for major equestrian event. PAGE 46

RURALNEWS

NEWS Iconic rural broadcaster pulls stumps after 30 years behind the mike.

PAGE 23

TO ALL FARMERS, FOR ALL FARMERS

SEPTEMBER 15, 2015: ISSUE 592

www.ruralnews.co.nz

Beef quota quandary PETER BURKE peterb@ruralnews.co.nz

NEW ZEALAND is rapidly closing on filling its beef quota to the US for the first time since 2004. It seems the culling of low performing dairy cows is one reason for this. NZ is allowed to send 213,402 tonnes of all types of beef, including cow beef, to the US free of tariffs, but once it exceeds that quota highly punitive tariffs up to 25% kick in. Meat Industry Association (MIA) chief executive Tim Ritchie says it appears at this stage that 70-80% of the quota has been filled. But he says it’s hard to gauge this accurately because companies exporting beef to the US regard this information as commercially sensitive. Richie says Australia is reported to have filled 85% of its US beef quota, which runs on a calendar year not a sea-

sonal year – the same as NZ’s. He believes the culling of dairy cows and strong prices for beef in the US have clearly pushed NZ closer to the quota limit. If there is more culling in spring it will accelerate the race to the quota. He also notes the influence of talk about El Nino and dry hot weather on

the East Coast of the North Island, which may prompt farmers to sell stock earlier than normal. But he also points out that most of the export production follows the grass profile – it’s in the first half of the calendar year. “When the beef quota was reached in 2004 about half our production went to the US but then it dipped down to

42% as the Asian markets grew and in fact 2010 was the low point,” he told Rural News. “This year we are back in the high 50s – percentage wise.” As the quota limit looms, companies will be diversifying product into other high returning markets including China, Ritchie says. This market

FORGOTTEN FLOODS The rainstorm that hit the Whanganui district in June has been described as the flood that “shook the soil off the hills” and by all accounts this is still happening. Harry Matthews, who works for the Ruapehu/Whanganui Rural Support Trust, should know because most days he’s out in the field trying to help the 200 or more farmers whose properties were severely hit. But continuing rain is making any sort of recovery operation almost impossible. See pages 12-14

TO PAGE 3

DECISION TIME IT’S IMPORTANT to have at least one cooperative in the meat industry, says a senior lecturer in agribusiness management at Lincoln University. Nic Lees’ comments come as speculation mounts over whether a foreign investor is poised to buy a stake in Silver Fern Farms. As Rural News went to press no such move had occurred. But Lees points out that the history of the meat industry shows it began in foreign ownership – mainly British -- and when they moved away slowly the cooperatives emerged. He says at present the industry presents a picture of mixed ownership: ANZCO is owned by Japanese and AFFCO by Talleys; and there are the two co-ops. The word cooperative can mean many things, Lees says. “The only true co-op is Westland Milk Products in that it has a nominal share value with profits either paid out through the milk price or by way of bonus shares or other things like that,” he told Rural News. “With a traditional co-op you don’t have an appreciating share price and you certainly don’t have [share] trading. So in that regard both Fonterra and SFF have changed from that model and are hybrid co-ops in which you can buy shares.” Lees says the traditional co-op has many challenges including how it treats new entrants, as opposed to TO PAGE 3

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RURAL NEWS // SEPTEMBER 15, 2015

NEWS 3 ISSUE 592

www.ruralnews.co.nz

Red meat levy apathy orders (the mechanism that allows a levy to be collected) run out in Februsudeshk@ruralnews.co.nz ary 2016. At least 50% of voting farmers, by THE 2015 sheep and beef levy referendum has ended showing apathetic voter both number voting (‘one farmer, one vote’), and their number of stock turnout – around the same number units (weighted vote), as last voted six years ago. need to support conAs at 10am last tinuing a levy for a Thursday, 6296 farmnew levy order to ers had cast their be approved. votes, representBLNZ held ing only 37% of the farmer meetvoting papers ings throughsent out; the out the country previous referto explain what endum in 2006 the industry-good recorded a 39% organisation is turnout. planning Voting ended at Chairman James 5pm on Thursday; a Parsons says while strong ‘yes’ vote each region was on the has its own cards. issues and Under the climatic Commodity Beef + Lamb chairman James Parsons says challenges, Levies Act 1990 farmers want an organisation to represent their common Beef + Lamb interests and one that provides them with clear demonstrable value. themes have NZ is required consistently to ask sheepmeat and beef producers (including been raised in discussions. “Overwhelmingly farmers have said dairy farmers through their cull cows) if they wish to continue funding activi- they want an organisation to represent ties and programmes for six years from their interests, but importantly one that provides them with clear demon2016-22. The current sheep and beef levy strable value,” he says. SUDESH KISSUN

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HEAD OFFICE Top Floor, 29 Northcroft Street, Takapuna, Auckland 0622 Phone: 09-307 0399 Fax: 09-307 0122 POSTAL ADDRESS PO Box 331100, Takapuna, Auckland 0740 Published by: Rural News Group Printed by: PMP Print CONTACTS Editorial: editor@ruralnews.co.nz Advertising material: davef@ruralnews.co.nz Rural News online: www.ruralnews.co.nz Subscriptions: subsrndn@ruralnews.co.nz ABC audited circulation 81,004 as at 30.06.2015

Quota quandary FROM PAGE 1

has worked well for NZ. The US quota is based on a three year rolling average of production and each year NZ meat companies get an allocation of the 213,402t quota. Ritchie says it’s up to companies to manage their quota; they can trade it with other companies if they wish. As the quota gets close to full it’s the NZ Meat Board’s role to ensure this is managed in a fair and appropriate way. But once it’s filled there are few

options Ritchie adds. “There are two things a company can do: they can declare it outside the quota system, but they pay punitive tariffs and commercially they would be able to do a lot better elsewhere; or they can put it into bond storage, but there is a holding cost to that. “Then they can de-bond it and take it out of storage in the new year as part of the 2016 quota, or they could put it in storage here if they wanted to or diversify to other markets.”

One area of common interest is the market access work. Farmers seem united in the need for BLNZ to work on their behalf alongside the Government to ensure the best trade arrangements for farmers and ultimately that all tariffs are eliminated. Last year this work saved $161 million that would otherwise have gone on tariffs if free trade agreements like those with China and Taiwan had not been in place, Parsons says. “There is a lot of interest in the

potential for our sector through the Trans Pacific Partnership and we fully support the Government’s insistence that we must strike a high quality deal. “Some farmers have voiced disquiet at the possibility the deal could weaken New Zealand’s sovereignty, but there was widespread acknowledgment that NZ producers must remain competitive and be a part of the deal if it is to progress. @rural_news facebook.com/ruralnews

DECISION TIME FROM PAGE 1

how it treats those who have been paid-up members for many years. He believes problems start to develop when a co-op develops a brand and this influences the share price. “Generally farmers invest in a co-op to guarantee their milk price or their meat price; what farmers want is the maximum payout on the product,” he explains. Lees says only farmers can decide whether they are better to supply a co-op or a private company. Meanwhile, Federated Farmers Meat and Fibre chairperson Rick Powdrell says the rumours and speculation around SFF are not doing any favours to anyone. He says he’s heard nothing definitive about what might happen and says SFF is playing the issue close to its chest. Powdrell says if a foreign buyer became involved, things could get very interesting; farmers will ask questions if this scenario were to eventuate. Powdrell says he’s unwilling to speculate on what might or might not happen. Meanwhile, farmers have been warned that Silver Fern Farms will soon announce its proposed recapitalisation ‘that sounds like a joint venture with a Chinese company’.

“This effectively signals the end of farmer control of the red meat sector in New Zealand,” claim Jeff Grant and Gayle Cowie – who are agitating for the shareholders of both Alliance and SFF to force a merger of the two co-ops. In an email to MIE supporters, late last week, Cowie and Grant, say the SFF Board has already held a series of confidential briefings with “influential” farmers to take them through the proposal. “Undoubtedly SFF shareholders will be offered all sorts of sweeteners and financial incentives to encourage farmers to vote in favour of the proposal. On the surface it might look extremely attractive. But that would be a short term view and an ill-informed view. Cowie and Grant urge all red meat farmers take time to understand the ramifications of this deal. “NZ farmers must vote it down or in short order we will become price takers and lose control for future generations of beef and sheep farmers,” they claim. Cowie and Grant further claim that: “Foreign ownership of the red meat sector is not in the best interests of the New Zealand economy and certainly not in the best long term interests of NZ farmers.”

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RURAL NEWS // SEPTEMBER 15, 2015

4 NEWS

Lower interest rates lifts dairy farmers SUDESH KISSUN sudeshk@ruralnews.co.nz

DAIRY FARMERS are welcoming the latest cut in the official cash rate. Federated Farmers Dairy president Andrew Hoggard says most farmers will borrow money to get through a challenging season and a lower inter-

est rate will help. “The less interest they will pay, the better,” he told Rural News. Hoggard also expects the cut in the OCR by 25 basis points to 2.75% will push the dollar down, helping export earnings. Reserve Bank Governor Graeme Wheeler has signalled further cuts.

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Fed Farmers’ Andrew Hoggard says most farmers will have to borrow money to get through a challenging season and a lower interest rate will help.

future average CPI inflation near the 2% target midpoint,” Wheeler says. “At this stage, some further easing in the OCR seems likely. This will depend on the emerging flow of economic data.” Hoggard says while farmers are happy with the low dollar and low interest rates, they are also watching the GlobalDairyTrade (GDT) auction, which has made two strong consecutive gains after a run of 10 price drops. He believes unless there’s a miracle and GDT prices rise 10% for the next six consecutive auctions, this season’s payout will remain low. “Most of GDT sales are forward contracts so a lot of products have been sold at low prices; we are happy with the two consecutive price rises but

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they have to be maintained.” The last GDT auction overall price index lifted 10.9%; whole milk powder rose 12.1%. Rabobank agribusiness research analyst Emma Higgins says while it’s been great to see prices on the GDT bounce upwards over the past two events, global dairy market fundamentals are still out of balance. “We are still awaiting the global supply taps to be turned off, particularly in Europe as farmers continue to expand production after having their shackles removed following the unwinding of the EU quotas. “From a demand perspective, China is still whittling away excess inventory, while other importers outside China and Russia who have pre-

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RURAL NEWS // SEPTEMBER 15, 2015

NEWS 5

Weaker NZ $ will benefit sheep and beef sheepmeat. “In this context, the increase in export prices is primarily expected to come from a weaker NZ dollar which over the next 12 months is expected to weaken against the three major currencies in which NZ agricultural products are mostly traded – the US dollar, euro and pound.” Burtt says extreme weather last season will affect the production side of the income equation in the new season. “Export lamb production is forecast to decrease by 6.3% in 2015-16. There is a smaller lamb crop, due to a decline of the ewe flock and a lower lambing percentage from the 2014-15 season’s high. “On the same basis, we expect export mutton production to drop, after three years of high destocking rates.” Burtt says NZ beef production is also expected to be down 5.3% in 2015-16, after a record high in 2014-15, which was boosted by a high level of cull dairy cow

processing in response to low dairy prices and high international demand for beef. The full report can

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BLNZ chief economist Andrew Burtt says last season’s extreme weather will inpact on this year’s income.

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NZ’S AVERAGE sheep and beef farm will see its profit before tax lift to $109,900 this season, according to Beef + Lamb New Zealand. In its New Season Outlook 2015 -16 released last week, BLNZ says this is 9.6% more than last season, but 3.1% below the five-year average. Chief economist Andrew Burtt says this is positive news, at a time when the NZ economy will benefit from increased farm sector spending. Burtt says much of the extra profit results from an 11% lift in cattle revenue, on top of a 12% increase in 201415. Meanwhile, sheep revenue is forecast to lift 2.6%, including a 4% increase in lamb farmgate prices, to an average of $5.47/kg. He adds that international demand is expected to remain strong for beef, and tight sheepmeat supplies in Australia and NZ should support prices, though uncertainties remain over China’s demand for

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RURAL NEWS // SEPTEMBER 15, 2015

6 NEWS

Zespri’s strategy attracts corporate farmer investment in kiwifruit orchard PAM TIPA pamelat@ruralnews.co.nz

THE STRENGTH of the kiwifruit industry was a key factor behind MyFarm’s second kiwifruit venture, a proposed $9 million orchard development in the Franklin district, just south of Auckland. Zespri’s sound marketing and value-add strategy contributed to MyFarm’s decision to get into kiwifruit rather than take other paths it had investigated, national sales manager Grant Payton told Rural News. MyFarm has traditionally been a dairy investment company and latterly moved into sheep and beef. The Franklin plan is its second kiwifruit

venture; the first is in the Bay of Plenty. The company wants to raise $9 million for the Karaka Orchards Ltd Partnership, which would buy 42ha of bare land plus a 24ha established green kiwifruit orchard. The orchards would be managed and developed by a vertically integrated orchard, management, pack house and cool store operator, Punchbowl Packco, which has grown kiwifruit in Franklin since the early 1980s and owns or leases 17 orchards in the Auckland region. It is majority owned by the Craig family and directors include Comvita and Craigs Investment Partners chairman Neil Craig. Executive director Andrew Watters says

orchard land values in Auckland are much lower than in the Bay of Plenty, where a development could cost 40% more. Payton says MyFarm’s first kiwifruit venture was to buy orchards in the Bay of Plenty where they work with orchard manager GroPlus. The Franklin proposal is on a larger scale. Long-term investors with a minimum of $250,000 are sought. Cash from the existing orchard would help fund development; no cash returns are forecast for the first five years but returns of at least 9% are seen long term. Payton says the green crop yield of the existing 24.6ha Punchbowl orchard at Kingseat has averaged 10,300 trays

MyFarm national sales manager Grant Payton at the existing kiwifruit orchard which will form part of a new venture just south of Auckland.

annually over the last five years; the Bay of Plenty average is about 85009000 trays. The planned greenfields orchard, which will be converted to 30ha of

green kiwifruit, will use artificial shelterbelts. Payton says these are instant, don’t compete for water and nutrients, and allow vines to be planted right up to the shelter;

horizontal artificial belts are being assessed for the site, which give more protection from the elements. They plan to take over the greenfields site from March 1 next year. They will start building the artificial shelter then plant over the next twothree years, staggering the planting and development. As funds are generated from the existing orchards, the profits will offset the need for debt and extra capital from investors, he says. They also see potential to develop the existing orchard. The new orchard will also be planted in green with the option to buy licences to grow new

varieties when they are released. Regional plans show the area being targeted for doubling of production and population in the next 30 years so there would be a capital gain for investors, Payton says. While dairy farms have been its traditional model, the company always intended to add other products. “Before we moved into kiwifruit we did a lot of research into other sectors and kiwifruit is one we found a lot of affinity with because of the strength of Zespri, the size, the cooperative structure and its sound strategy of adding value to its products.” @rural_news facebook.com/ruralnews

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RURAL NEWS // SEPTEMBER 15, 2015

NEWS 7

Ag training sector to repay $7.5m PAM TIPA pamelat@ruralnews.co.nz

DESPITE TARATAHI Agricultural Training having 67 of its tutors enrolled as students in one of its programmes, this is viewed as not ‘uncommon’ by its current head. The Wairarapa institution is to repay $7.5 million to the Tertiary Education Commission (TEC) after an independent investigation showed it had not delivered several vocational education programmes in accordance with its funding agreement with TEC. No students will lose qualifications awarded. The TEC decision follows an independent investigation by Deloitte and a serious fraud investigation is also underway. Chief executive Donovan Wearing died suddenly this year after the investigation was launched. Incorrect systems for Recognition for Prior Learning (RPL) – where practical experience can be assessed towards gaining qualifications – appears to be at least one major issue behind the centre’s breaches. Interim chief executive Dr Linda Sissons says in one case 67 tutors were

enrolled as students in a programme offered at Taratahi in 2013. While this is not uncommon, Sissons says the process was not properly followed. “Someone should have realised we were not fully compliant and fixed it.” Asked by Rural News to elaborate she said tutors and staff do enrol in courses – often to gain the qualifications of their institution or the courses they’re teaching. “These staff, like all students, would be expected to go through the approved learning hours if funding is sought for the training. In most cases though, tutors are experienced and what they need instead is an assessment of their competency – Recognition of Prior Learning (RPL) is the technical terms

for this. Funding cannot be claimed for RPL.” In terms of students, Sissons says many of the college’s students are already working and have skills, which means they can reach industry and educational standards in less than the time required for the fulltime programme. But Sissons says the mistake was not adjusting the enrolments accordingly and this resulted in overpayment. “The failure seems to have been the result of inadequate monitoring and reporting controls.” Explaining this to Rural News, Sissons says many students on the parttime programmes came with a degree of practical experience.

WHAT WENT WRONG THE DELOITTE investigation, which focused on the TEC’s funding agreements, showed several instances of non-compliance. Taratahi: ■■ enrolled 67 staff in an entry-level programme and claimed funding when little or no teaching took place ■■ went short on teaching hours for four programmes ■■ claimed funding for students enrolled in the Certificate in General Farm Skills in excess of the teaching hours provided.

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“They were able to complete the training and reach the required educational levels in less than the approved time for the training,” she says. “What should have happened was that the hours claimed should not have included Recognition of Prior Learning. We did not have the systems to differentiate between the students who should have had RPL hours and those who did not. That’s where the non-compliance occurred and we’re working to fix that system now. We’ve also stopped [teaching] by contractors in the meantime.” Sissons says although students were understandably surprised by the announcements last week that $7.5m in repayments was required, they understand there is no question about the quality of the education and the training gained. “It is business as usual for them. Taratahi prides itself on training safe skilled workers to meet industry needs and we know the agricultural sector values people with a Taratahi qualification.” The TEC independent investigation

Taratihi chair Mavis Mullins. “This should not have happened and we’re confident actions taken will ensure they don’t happen again.”

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RURAL NEWS // SEPTEMBER 15, 2015

8 NEWS

Weather holds key to milk production SUDESH KISSUN sudeshk@ruralnews.co.nz

WEATHER IN the coming months will determine the size of the drop in milk production, says Federated Farmers Dairy president Andrew Hoggard. He says El Nino weather, if it eventuates

as foreshadowed by meteorologists, could result in a severe drought in some regions and this would cause milk production to dive. Unlike previous droughts, farmers won’t spend on supplementary feed. “In the previous droughts, farmers bought

in supplementary feed to fight their way through it,” Hoggard told Rural News. “This time, I don’t think they will attempt to fight their way through; they will dry cows off.” Fonterra is maintaining its milk volume forecast for the 2015-16 season at 1589 million kgMS -- 2-3%

lower than the amount collected last season. However, the co-op says there is evidence that farmers are pulling back on production, which could lead to a further downward revision of forecast volumes as the season advances. Hoggard says while everyone tries

to maximise milk production, he has heard stories of farmers culling many cows during winter. “There have been stories of farmers culling cows and rearing beef… but I think the weather will have the biggest impact. Who knows what will happen with the El Nino?”

Fonterra’s Miles Hurrell.

El Nino is a major global climate fluctuation that occurs during ocean warming. For New Zealand it generally leads to stronger or more frequent winds from the west in summer, leading to drought in east coast areas and more rain in the west. In winter, the winds tend more southerly, bringing colder conditions. In spring and autumn southwesterly winds are more common. Niwa says indications are that El Nino is certain to continue over the next three months and are “extremely likely” to persist over summer. Fonterra group director cooperative affairs Miles Hurrell agrees the weather will play a big role. “It is still early in the season, and any forecast at this point depends on weather conditions, which have so far been poor for production,” he says. “Given these variable factors, we have decided to maintain our current

forecast milk volume at this early stage of the season.” Fonterra is required under the Dairy Industry Restructuring Act to update its current season forecast milk volumes by early September. Hurrell said farmers are responding to the lower forecast farmgate milk price by returning to more traditional farming practices. “They are reducing the use of feed supplements and lowering stocking rates per hectare as they concentrate on using pasture. “Market data from several independent sources show that cows are being culled at higher rates than last season and many of our farmers say they expect significant year-on-year volume reductions. “Currently our daily milk collection average is lower than in the same period last year,” says Hurrell. @rural_news facebook.com/ruralnews

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NEW ZEALAND flavoured milk is now available in two more flavours. Premium dairy brand Lewis Road Creamery recently launched Fresh Coffee Milk and Fresh Vanilla Milk flavours; they join its chocolate milk selection. The chocolate milk caused consumer hysteria: fans lined up for the product and cleaned out supermarket supplies within hours of the product hitting the shelves each week. One of the two new flavours is in a joint effort between Lewis Road and Coffee Supreme, the other with Heilala Vanilla. The company says the two new flavours were developed with a focus on quality over quantity and natural over artificial. Lewis Road Creamery Fresh Coffee Milk derives from coffee from the independent coffee roaster Coffee Supreme in a chilled format. A similar simple process is used to produce vanilla milk: Heilala Vanilla’s vanilla extract and Lewis Road Creamery’s milk are infused together, with cane sugar.

RURAL NEWS // SEPTEMBER 15, 2015

NEWS 9

More milk for less water PETER BURKE peterb@ruralnews.co.nz

FONTERRA’S $231 million upgrade of its processing plant at Pahiatua has used new technology to reduce the amount of water consumed, while trebling production. Work on adding a new drier to produce whole milk powder (WMP) started in December 2013 and a few weeks ago the first milk was processed there. Fonterra’s managing director of global operations, Robert Spurway, says the co-op’s strong sustainability policy applies to all farmers to meet these standards, but even higher standards are imposed at its processing plants. Visitors and staff working at plants such as Pahiatua are subject to strict and rigorous hygiene and health and safety rules. Spurway describes the Pahiatua plant as close to a replica of the co-op’s new plant at Darfield, Canterbury. He says they have learned from building that plant, as a result building Pahiatua slightly faster and slightly under budget. “It has slightly different design aspects at the foundation level, having isolators because of earthquake risk in

this region relative to Canterbury. When it gets above the ground the design and technology is almost identical to Darfield,” he told Rural News. “In commissioning and running [the plants]… we are getting better at it each time. So far this plant start-up has exceeded all our expectations.” Spurway says the reason for the earthquake strengthening at Pahiatua surprises many people: 18 months ago an earthquake struck, damaging nearby Ekatahuna. The Pahiatua plant is now processing 3.8 million L of milk per day – up from 1.4m a few months ago. It operates 24/7 and every hour produces 15.5 tonnes of WMP for sale to such markets as Cuba, Sri Lanka and Venezuela. New technology that recycles water from the drying process is making a difference, says Bill Boakes, the Pahiatua operations manager. “The water we are taking out of the milk here is cleaned and [used]… as potable water in the process. That’s the first time it’s has been done in a dairy plant in NZ, but it’s done in other parts of the world.” A waste water treatment plant treats any water that cannot be recycled. This is

TARATAHI PINGED FROM PAGE 7

appoint a financial advisor to support this process, while ensuring Taratahi can continue its training. “The funding rules are clear and tertiary education providers know them well. If providers are delivering less education than they are being funded for, as Taratahi has done, we will seek repayment,” TEC chief executive Tim Fowler says. The TEC engaged Deloitte to investigate in October 2014 after getting an anonymous complaint that tutors at Taratahi had been enrolled in a course to make up for a shortfall in student numbers. The tutors were overqualified for the course, which some of them were also teaching. After being alerted to the complaint Taratahi did an internal review which it provided the TEC. The New Zealand Qualifications Authority (NZQA) also investigated whether students’ qualifications were compromised, and found they were sound, says deputy chief executive Jane von Dadelszen.

sprayed onto three nearby Fonterra farms, where nitrogen and other loadings are monitored. Pahiatua employs 180 staff, 45 of them extra

as a direct result of the upgraded plant. Pahiatua Operations Manager Bill Boakes and Managing Director Global Operations Robert Spurway

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RURAL NEWS // SEPTEMBER 15, 2015

NEWS 11

Fonterra freezes out ice cream queen PETER BURKE peterb@ruralnews.co.nz

A KICK up the backside: that’s what entrepreneur and now author Diane Foreman says Fonterra needs. In her just published autobiography, In the Arena, she takes a big swipe at Fonterra based on her personal dealings with the cooperative including her attempts to sell it her ice cream company NZ Natural. About 15 years ago Foreman invested in an organic milk processing plant in the South Island and contracted supply from an organic dairy herd. By her own admission she didn’t realise there was such a thing as a

NO ASIAN INVASION DIANE FOREMAN says the Asian market is hungry for the products NZ produces. She says a lot of good work has been done by government agencies in developing the Chinese market, but she’s surprised at the lack of strong NZ brands in that market. She says it takes passion to take a brand offshore but she’s not sure some of the people running large companies have that passion. Foreman acknowledges Fonterra has some great people working for it, but believes it could do much more to increase the value-add of its products. “There are huge opportunities in China. When we first got into ice-cream, people said you will never sell it in China

‘flush’ of milk. “Although we had done our budgeting and busi-

because the people there are lactose intolerant,” she told Rural News. “A whole generation later they are not lactose intolerant. They actually love dairy food; you can see it by the way the Chinese people are growing. They are growing taller and stronger and that is because they are eating much more dairy. The opportunity is phenomenal.” On Chinese investment in the NZ dairy sector, Foreman says there is no secret plan to take over NZ. “But they are going to come down here and milk our cows and send product back to China – it’s as simple as that. If we are silly enough not to get the value from it before we sell it that’s our loss and they’ll take it and get the value.”

ness plan on the type and amount of milk coming through the door, what

we weren’t expecting was the flush. All of a sudden we had this ginormous

amount of milk and nothing to do with it; so we were looking at how to process and add value to it – which was when we started making icecream.” Foreman moved her rapidly expanding business from Christchurch to Auckland, where she bought a processing plant and a small company to acquire the NZ Natural brand and incorporated this into her Emerald Foods empire. This franchise had 650 stores in 24 countries, but was sold a few months ago by Foreman to a Chinese buyer. But when she got the offer from the Chinese buyer, she tried to

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Diane Foreman claims in her new book that Fonterra turned down her ice cream business and a Chinese buyer snapped it up.

approach Fonterra to see if they would be interested in buying it. “The response was ‘no’, and what I don’t understand is why a brand like NZ Natural – which is an incredibly strong brand – would appeal to a Chinese textile manufacturer out of the middle of China and not to Fonterra. [The Chinese buyer] could see the value of the brand and wanted to take it to Asia. “We were already in Asia and had about 55

shops in China. But his view was that he was going to have 6000 shops and it seemed strange to me that Fonterra didn’t want to have a dream like that.” Foreman says Fonterra was arrogant and claimed she didn’t give them enough information. Meanwhile, Fonterra says it was approached by Diane Foreman who offered them her company. But a co-op spokesperson says she failed to supply sufficient information for them to make a decision. @rural_news facebook.com/ruralnews

RURAL NEWS // SEPTEMBER 15, 2015

12 NEWS Nick Tripe, 77, lost 15% of his pastures to slips and silt damage.

Forgotten floods s Three months ago many parts of the lower North Island, in particular the Whanganui region, were hit by devastating floods. The event drew comparison with the infamous 2004 floods. While the mess is gone from Whanganui city, and normal life has resumed, in the country it’s a far different story. Peter Burke reports. ON THE day I headed north to Whanganui the weather was almost as bad as in June: heavy rain, streams overflowing into paddocks and stock on many farms seeking high ground. Farmers were feeding out to stock. Even only 20 minutes drive from Whanganaui you’d think the rains had never stopped. Hundreds of hectares were covered in slimy silt impossible to remove or work because it’s so wet. Drive up any rural road and you face massive slips that have ripped out fences and trees and blocked streams. Some fences have been repaired, but many slips are still moving and it’s pointless trying to re-fence. Workers constantly clear debris to keep roads open. What you can’t see from the road are the hundreds of kilometres of farm tracks yet to be properly repaired because farmers are still waiting for diggers or for the ground to dry out because it’s too wet and dangerous to work on. Neither can you see the thousands of other slips on farms, and damaged and wrecked infrastructure which, in some cases, may never be

properly repaired. The Government declared this a ‘medium’ scale event which effectively said it was bad -- though not as bad as 2004 – and it has made various financial contributions to help farmers. But it’s the local Rural Support Trust that has lived with and continues to help farmers work their way through this crisis. A small team of people meet each day at an office allocated to them by MPI in Whanganui. Brian Doughty and Lyn Neeson are elected Fed Farmers provincial presidents, but since the June floods they are spending most of their time working for their Rural Support Trust (RST). Also with them is Harry Matthews who has the title of agricultural recovery facilitator, which means he is paid to do much of the field work and interact with farmers. Doughty has lived in the region for 65 years and knows it well. He says the 2015 floods have caused devastation of the rural area on a scale he’s never seen before. In the first few days after the flood Doughty was wearing his Feds hat – collecting data

RURAL NEWS // SEPTEMBER 15, 2015

NEWS 13

s still haunt Whanganui farmers Lyn Neeson, Rural Support Trust.

and contacting people -but when MPI declared it a medium scale event he reverted to his role as a member of the RST and spends most of his time on trust work. “Comparing this event and 2004, the damage this year is significantly

greater for a smaller number of people. We estimate that about 200 people have been severely affected and that on average the floods have cost them each about $100,000. To add to the problem, the rain hasn’t stopped since June so

there has been no grass growth. In June people were financially stretched to the max and it’s just continued. I know that farmers have had diggers booked for this month and it’s not going to happen because it’s too wet and the ground is still

slipping,” he says. The Ruapehu/ Whanganui RST works well, says Brian Doughty, because the members work well together and support each other. Two other members, Linda MacKinder, chair, and Richard Steel, farm in the

Taumarunui area. Doughty says the team culture of the trust is the key to their success and they have an excellent relationship with MPI which funds their operation. @rural_news facebook.com/ruralnews

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PEOPLE POWER WHEN LYN Neeson, who farms near Taumaranui, saw the Whanganui and Ohura rivers rise rapidly in June, she figured this spelled trouble for farmers downstream and she was right. Since July she has been working four days a week in Whanganui as the coordinator for the RST. She has the task of assessing the reports coming to her from farmers and people such as Harry Matthews and Brian Doughty who know the region and the farmers. A major problem is damage to fences, she says. “I know of one case involving three farms around the Paraparas where the floods wiped out the boundary fence between them. So they mustered all the ewes, vaccinated them and put them out on the hills. “They are going to dock them all, put them back out and at weaning time the three farmers are going to go through and split the lambs three ways. Isn’t that a magnificent solution to a really big problem because there is no way they can fix the fences and keep the stock apart. “In many cases the slips have gone through two fences, wiped out a track, and taken out a culvert and the next fence and then gone onto the road,” she says. Neeson has farmed in the region for 20 years and has never seen damage to farms like this. The damage is scary, with slips making it hard for animals to get around farms and graze. Many farmers have quit stock because they don’t have the feed, but she notes that even trying to do this has been a mission, with many roads being impassable in the early days after the floods.

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RURAL NEWS // SEPTEMBER 15, 2015

14 NEWS

Pear orchard in jeopardy, house burnt HARRY MATTHEWS knows the area well, a key to his being hired to liaise with farmers. The walls of his Whanganui office -- next to MPI’s – are covered with maps of the region and a whiteboard charts the work programme of the Regional Support Trust (RST). His day starts here, looking at the latest reports and making calls to farmers. Then he’s out on the road to see for himself and the RST team what is happening. Sometimes he’ll met them at their house but often it’ll be at the side of the road where farmers are repairing damaged fences. Their reactions very, he says. “Some people have seen it all before and it’s

matter of getting on with it. Others have seen nothing like it before and are bewildered by it and it takes them a lot of time to get their head around it. It’s nearly three months since the event and they can’t get on with the fencing and general recovery,” he says. One such person Harry Matthews touches base with is Nick Tripe (77) who’s farmed in region all his life. He says this year’s floods have damaged the area more than any previous event – including 2004. Tripe estimates he’s lost 10-15% of his pastures to slip and silt damage. “This is huge and in my lifetime things will never get back to normal. We’ll have to reduce our

stocking rate and I expect it will cost me about $100,000 to replace machinery and the 1100m of fences damaged. That doesn’t include pasture damage.” Tripe has already oversown some damaged pasture, but his other potential loss is his 7000-tree pear orchard – one of the last remaining in the district. While Taskforce Green people have cleared some of the silt, he cannot get machinery in to spray the orchard. And as if that wasn’t enough, one house on the farm was burned to the ground a week ago, appar-

Many farmers have quit stock because they don’t have the feed.

PEOPLE POWER Harry Matthews

ently due to an electrical fault in the newly installed smart meter box. For farmers like Nick Tripe, the 2015 floods are not going away any time soon. Until the land dries the real impact of this event will not be known. It could be Christmas before this happens. Until then the RST will continue its work.

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Taskforce Green people have also helped farmers with some of the cleanup work and farmers appreciate this. Neeson’s role has been to direct help to the most needy farmers and gain sponsorship to help with some repair work and events. She has helped organise community events to bring farmers together to talk through issues and give them some respite from the hard slog of farm life. With fencing being a major problem, Neeson found help from the brother-inlaw of Hawkes Bay Feds president Will Foley. “[The brother-in-law] is the president of the vineyard association in Hawkes Bay and they had 3000 secondhand posts so they rang me and asked ‘can you use them?’ So I organised Rabobank to pay for the transport and got a local transport company to drop them off at strategic places for farmers to pick up. The posts weren’t needed by the vineyards but they were great for our farmers who were grateful for them,” she says.

Neeson and the RST have worked hard looking after the welfare of farmers and their families. Special packs have been sent to schools to help teachers give advice to people who need help. She says because the floods hit during school holidays many children helped their parents clean up some of the mess. Neeson says the community meetings and now ‘cuppa’ sessions are designed to help families deal with stress. “At the community events wives may walk in angry or frustrated because they have worked hard beside their husbands onfarm all day and are sick of being in the mud. Their husbands are getting grumpy because they are tired and any little thing you can give them makes them feel great. It doesn’t take much to make them feel better and that’s rewarding,” she says. She doubts whether city folk have any idea of the stress and challenges many farmers in the Whanganui region are facing. Even government officials who come up from Wellington are staggered at the damage.

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RURAL NEWS // SEPTEMBER 15, 2015

16 NEWS

Fonterra ups foothold in vital market FONTERRA HAS opened its first factory in Indonesia, a blending and packing plant that is the co-op’s largest investment

in ASEAN in ten years. It is producing Anmum, Anlene and Anchor Boneeto brands. Co-op chairman John

Wilson, who attended the opening last week with Government minister Paula Bennett, says the co-op has supplied prod-

Fonterra’s new Indonesian plan can pack about 16,000 million tonnes a year.

uct to Indonesia for at least 30 years. It is one of the co-op’s most important global markets. “The opening of our new plant is an exciting step forward in our relationship with the country and local dairy industry,” he says. Bennett said at the opening that the new plant reflects the strength of the relationship between New Zealand and Indonesia. “On behalf of the New Zealand government, I congratulate Fonterra on today’s official opening; it reflects the increasing interconnection of global value chains, and more

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closely links our economies. “Our governments have set a target to grow two-way trade to NZ$4 billion by 2024 and dairy continues to be a critical part of this relationship.” The new plant can pack about 16,000 million tonnes a year – 87,000 packs per day. Fonterra managing director Asia, MiddleEast, Africa (AsiaMEA), Johan Priem, says this will go a long way in helping Fonterra meet growing demand, notably in Indonesia. “The country’s large and increasingly affluent population is looking for nutritious foods for all ages. This is fuelling dairy

demand growth which is expected to increase by 5% every year to 2020.” Construction of the plant, in Cikarang, West Java, involved local people. At full capacity it will employ 160 locals. “The site also uses Cikarang’s dry port, allowing us to ensure all our operations are located in one area,” Priem says. “This will help logistical efficiencies.” Indonesia’s Deputy Minister for Food and Agriculture and Coordinating Minister of Economic Affairs, Ibu Ir. Musdhalifah Machmud, attended the opening. @rural_news facebook.com/ruralnews

GET SOCIAL WITH RURALNEWS Keep up with the latest stories from by following us at facebook.com/ruralnews Bill Webb, Te Puke, Bay of Plenty “We trialed CORSON F1 two years ago in one of our harsh blocks that doesn’t yield very well. Despite it being a drought year, it yielded better than other varieties we have grown on that block” says Bill. “About 40 hectares of CORSON F1 was grown, including one paddock yielding more than 30 tonnes dry matter/ha. As the crop was put over the scales this was a weighed rather than an estimated figure and an exceptional result” he said.

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RURAL NEWS // SEPTEMBER 15, 2015

NEWS 17

Welcome boost to rural mental health PAM TIPA pamelat@ruralnews.co.nz

NEW FUNDING from the Government to help rural communities deal with an acute mental health situation is welcome, says Rural Health Alliance Aotearoa NZ (RHANZ) chairperson Dr Jo ScottJones. But the problems are longstanding and go beyond the pressures of a low dairy payout, he says. Increased training measures are part of a one-off $500,000 funding boost for mental health initiatives targeted at rural communities, announced by the ministers of health and primary industries. Increased funding is split between DairyNZ, to provide help through the Rural Support Trusts to those who work directly with farmers to recognise mental health issues, and the RHANZ, to train more health professionals, business networks and communities to tackle depression in rural communities.

Dr Jo Scott-Jones.

a low dairy payout. These are longstanding and ongoing issues that need a longer term response. This money is great to start that off [and is] a recognition there is a problem. “We hope it is the beginning of something to address this gap we know about… for people living in rural communities compared to urban communities.” Scott-Jones says unfortunately NZ does not report suicide statistics for occupational groups. However it is known in the UK that suicide is a choice made more often by farmers than by any other occupational group. “Certainly from reading the Australian literature and from contacts in Europe and American the mental health issues in rural communities are recognised internationally as significant.” Scott-Jones says RHANZ is now talking to the Ministry of Health about specifications for

would consider university papers or courses. “For me, as an example, the local community health organisation is in the nearest town which is 50km away so the in-house training happens during the day so is inaccessible to me; the university courses

are long and involved and usually require [staying] in Auckland and Christchurch,” ScottJones explains. “The online courses are accessible. It would also be an advantage to me to have more locally provided training on response to this level of mental health need and

suicide prevention.” The funding should make more of those opportunities available to doctors and other rural health professionals. Scott-Jones says if people are in distress, or know of people in distress, their local GP is a great place to start seeking help.

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“Getting people to admit they have a problem… and getting the resources to provide help is a good first step.” the use of the fund and possible new training for rural health professionals. He says undergraduate doctors are trained to deal with depression and anxiety for suicide prevention. Post-graduate training is available ad hoc and professionals identify the training they need and where best to access it. “With the recognised need for mental health training in rural communities, the funding provides an opportunity to increase access to this. The training provided will be evidence based and based on tried and tested processes.” Doctors now wanting more training would talk to their community mental health team about in-house training and external providers being brought into the district. They could also look at online training opportunities. If they wanted to go further they

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Scott-Jones says improving mental health and minimising suicide risk for rural populations is a top priority for all 36 members of RHANZ. “The funding was announced to deal with this recognised acute problem,” Scott-Jones told Rural News. “But the problem of mental health outcomes in rural communities is a longstanding one.” He says the awareness raising is the most important initial response in this acute situation. Improving the quality of services via additional training is reasonably urgent but will be a longer term response to the problem. “Getting people to admit they have a problem… and getting the resources to provide help is a good first step,” he says. “But this goes way beyond the pressures of

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18 NEWS

The traffic light fruit which has wooed the world When Chinese gooseberries were introduced into New Zealand in 1904 they were a novelty crop. Today kiwifruit is a billion-dollar export earner – and still rising. This is due, in part, to the work of plant breeders such as Dr Bryan Parkes, Plant and Food NZ, as reporter Peter Burke discovered recently. IT TOOK until 1959 for New Zealand to rename the Chinese gooseberry ‘kiwifruit’ and make the product its own. Over the years and through trials and tribulations, including PSa, this fuzzy berry has become a large chunk of the NZ economy. Some call it the ‘traffic light’ industry -- traditional green fruit complemented now by gold and red. The rise-and-rise of kiwifruit is no accident: it’s the product of a care-

fully orchestrated plant breeding programme now involving the marketer Zespri and Plant and Food Research, plus growers and other industry professionals. According to scientist Bryan Parkes, the game plan of Zespri and Plant and Food is plant breeding to create new products to underpin the industry’s future. This requires new cultivars with amazing fruit that keeps attracting consumers. Parkes says the process

$

effectively starts when the seeds from two elite ‘parents’ are joined, then 12 years may pass before cultivars can be released to growers for commercial production. A further two years will pass before consumer taste the final product. Uppermost in the minds of Zespri and Plant and Food – at the very start of the process – is trying to decide what the consumer will want in 14 years. “We do a lot of work

by the consumers.” Taste is an interesting issue, says Parkes. There are ‘cultural’ tastes: people talk about the Germanic central Europe group more comfortable with a sweat-sour balance, whereas the Asian palate generally prefers an intense sweetness. “But you can’t be too general about that because the Spanish love sweet as well. So there is a cultural factor, but there is behind it all a desire for sweetness and intensity

on consumer psychology and demographics today and what they may expect them to be in the future,” Parkes told Rural News. “The key drivers are amazing flavour, visually attractiveness, colourful fruit and convenience. “That is one half of the equation; the other is that the cultivars we produce also must be quite high yielding, disease tolerant, store well and easily handled through the supply chain. And then the product also has to be desired

FROM

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Plant and Food Research scientist Bryan Parkes.

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ual people in all markets there is individual preference, so we have to understand the different parts of the market and produce a different type of kiwifruit to meet these requirements.” TO PAGE 19

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RURAL NEWS // SEPTEMBER 15, 2015

NEWS 19

A process that never stops Developing new Kiwifruit varieties can start with 100,000 potential cultivars.

FROM PAGE 18

The science behind the development of new kiwifruit varieties is huge. Plant and Food has upwards of 1000 scientists around the country working on the project -- expert in fundamental biology, plant growth, genetics, fruit handling and storage and consumer understanding. Then there are plant breeders who develop and grow the new cultivars. It’s the combined knowledge of this group – with input from Zespri and growers – that produces the product that woos the consumers. “We ultimately work out what we can do genetically and what the consumers wants,” Parkes explains. “Then we work through a large funnel starting with 100,000

potential cultivars and the experts bring them down to a narrower brief. At that point, we start to share the 20-50 individual cultivars we might take forward to the next stage of evaluation. Over time, the funnel gets narrower and narrower, but ultimately the consumers and growers tell us what the answer is.” The answer lies in

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what Parkes calls the ‘agronomics’ or evaluation of the fruit through an extensive process of test marketing. They may be able to produce a kiwifruit the consumer loves, but if it can’t be supplied at a reasonable price the idea is canned. “It can go the other way around – an amazing fruit from an agronomics perspective -- but large

volumes of fruit the consumer doesn’t want to buy also doesn’t work. So we have to have both work.” A major part of the process in developing new varieties of kiwifruit is interacting with growers. This begins when they start doing clonal tests – taking cuttings from the original seed and spreading them to different locations in NZ and offshore. “The next point is when we run commercial trials, on quarter-hectare blocks and all done with growers on growers’ sites. The grower gets to apply his mastery of kiwifruit growing and gets to learn how to grow each cultivar, because it’s like

trying to learn to drive a new car. Every cultivar has its own behaviour so we get the expertise of the growers and they work as a group, almost a club, with each other on how best to drive a particular cultivar.” The ability of the kiwifruit industry to go from strength can be sheeted back to the genetic material imported from China in the 1970’s and 80’s. Parkes says this will enable the industry to continue its development into the future. It’s no longer possible to import new genetic material as new regulations are still being written. Parkes believes the combination of skills of

A combination of skills of plant breeders, growers and marketers of Kiwifruit are producing a rich legacy for NZ.

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NEWS 21

Too early to be talking rating relief – LGNZ PAM TIPA pamelat@ruralnews.co.nz

support. “The only area I’m aware of -- as a consequence of the recent floods -- is ManawatuWanganui. Traumatic

DIFFERENT LOCAL councils offer various rates support schemes in situations of real hardship, but there is no one standard policy. But dairy farmers facing a low payout year are no different from any other sector of the community that might have challenges, says Local Government New Zealand vice-president Brendan Duffy. LGNZ vice president Brendan Duffy. “I imagine the retail sector will storm conditions [are find it pretty tough going giving them] a hammering in rural and provincial far greater than the drop New Zealand as well,” in the dairy payout.” Duffy told Rural News. Such occasions of rates “If, as has always been support to farmers have the case, an individual has been pretty isolated. a particular challenge that “There is a variety of requires a chat, then you will find councils… are fair options, as always. Every area will have a different and reasonable and happy perspective. Some will to have that chat. find their area is dramati“I don’t think any cally more impacted than council will have a carte others so they will have a blanche policy of a rates different stance. rebate, but there are 78 “It is their call what local authorities and they decisions they make. It all have variations on the may depend on what will same theme of supporthappen with the El Nino ing people in their comnext year and the devasmunity.” tation some farmers will Duffy says he has not face on top of a poor dairy yet heard of a council being approached by dairy payout. That will be much tougher for some councils farmers for rates relief. than others where there “It is very early days; one will be no El Nino impact would have assumed and the farmers are just that last year when the impacted by the dairy payout was great they payout.” would have been salting For any commercial a little away for the ineviindustry – including dairy table. It is very early days – if there is a particular for councils to be getting challenge the council can approaches seeking rates

PAY AS YOU CAN THE WAIKATO Regional Council says there are various options for paying rates when money is short. “We recognise that dairy farmers are facing a significant downturn in the milk payout,” says committee chairwoman Jane Hennebry. “This means some will be struggling to meet costs.” Hennebry says the council allows ratepayers to pay off rates by direct debits, and there are other options to help make payments easier. “We encourage anyone facing difficulties to contact [us] to discuss their options.”

consider any number of options. “A postponement, a rebate, a deferment, weekly payment… They can halve the rate for a

year if they choose. [But if] they do that who would pick up the difference? The urban people would… so then you have inevitable discussion on

what’s fair and reasonable. There are enormous challenges when it comes to it.” Duffy says the next question is, why should

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RURAL NEWS // SEPTEMBER 15, 2015

22 NEWS OSPRI NZ chief executive Michelle Edge.

TB-infected herds at record low HERDS INFECTED by bovine tuberculosis (TB) are at a record low – 36, says OSPRI. Of these, 34 are cattle and two are deer. OSPRI chief executive

Michelle Edge credits farmers, the industry and Government organisations, working with OSPRI, with making the TBfree operation “one of the world’s

leading TB control schemes”. “While this is a significant milestone, we know [we must stay vigilant] on managing numbers of infected herds during the season where finishing stock heading to the processing works,” says Edge. The low numbers coincide with an independent review of the TBfree programme, including scientific modelling, a review of operational outcomes and a public consultation run by a governance group of industry shareholders and an independent chair, Chris Kelly. A final proposal will go to the Minister of Primary Industries for review and approval at the end of September. OSPRI will then “implement the outcomes of the review”

and keep working with partners, the wider industry and the community to eradicate TB from livestock by 2026 and from wildlife by 2055. The main thrust is eradicating TB from possums and other wildlife on 2.5 million hectares of at-risk areas by 2026. The review found that at least 1.2m ha are now clear of TB. This shows that the disease can be eradicated, Edge says, “and the goal [is to achieve] eradication more quickly and at a lower cost. This is good news for industry and provides further proof of NZ’s animal health status for international trading partners.” Consultation on the review closed on July 31 after many submissions and feedback from workshops nationwide.

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RURAL NEWS // SEPTEMBER 15, 2015

NEWS 23

‘Ikonic’ rural broadcaster hangs up mike PETER BURKE peterb@ruralnews.co.nz

ONE OF New Zealand’s great farming voices recently made his last broadcast and quietly slipped into retirement at age 65. It ended a near 30 year career in that role, on top of 10 years in daily newspaper journalism. Kevin Ikin was the consummate journalist and broadcaster and a personal friend and colleague. I claim some credit for his career in that I hired him when I was editor of Radio New Zealand ‘Rurals’ in early 1986. When he phoned me from Dunedin asking for a job I didn’t do the formal interview stuff – just made a few calls to colleagues who told me I’d be nuts not to hire him. So I rang him back and the deal was done in a matter of hours. Although I left Rurals 18 months later to work on the ‘dark side’ -public relations – we have remained great mates and Kevin has never faltered in his commitment to rural NZ. Think of any event in the primary sector in the past 30 years and he has been the person who has brought it to the nation -- into the cowsheds and over lunch tables – on Radio NZ ‘National’.

He has reported on the transformational changes in the sector at home and in markets abroad. Ikin has covered major floods, droughts and biosecurity incursions, not to mention the intriguing politics of farmer and industry organisation.

his quiet manner often disguised his ability to ask probing and hard questions and to get great stories. He was firm and unyielding in seeking answers, but never aggressive or abusive, and he valued facts and truth. There is another side

there to see him sign off in style and this he did. Few people realise Kevin wrote and recorded the theme for the Saturday morning

rural programme ‘Country Saturday’ (now ‘Country Life’). His last act at his farewell was to play this theme for an appre-

ciative audience. There have been many great rural broadcasters – Barnes, Torley and Follas immediately come

to mind. They were great broadcasters and nice people to boot. Kevin Ikin should rightly be placed alongside these greats.

Kevin Ikin’s dulcet tones have been on rural radio for 30 years.

All the while, the staff at Rurals has slowly been cut back from the heady days of the 1980’s (19 rural journalists) to a mere two of today – himself and an assistant. Speaking of assistants, in the course of his career Ikin has trained many new and young people in rural journalism and all speak highly of him. Ikin was not a person to seek the limelight and

of Kevin Ikin: he’s an amazingly talented musician with a passion for folk and especially Celtic music. Tributes have come from high places in the primary sector -- ministers, officials and captains of industry, all of whom hold Ikin in the highest regard. His farewell from Radio NZ saw some of his mates from the 1980’s

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RURAL NEWS // SEPTEMBER 15, 2015

24 NEWS

Is our lamb a cut above the rest? SHEEPMEAT RETURNS are softening and one analyst believes it’s all down to one part of the animal. Rabobank’s animal protein analyst Matthew Costello says weaker Chinese demand for forequarter cuts is affecting returns. In his report ‘New Zealand Sheepmeat: Maxi-

mising the Cut – Breaking It All Down’, Costello calls for greater access for premium chilled lamb cuts in China. Costello says it is important for producers to understand the breakdown of the animal and market demand for specific products as this ultimately determines the

farmgate price. “While farmers are paid on a per head or per kilogramme basis, the price they receive is calculated from the summation of all the products derived from the animal – the extensive array of cuts, the offal, co-products, skin and wool,” says Costello.

He notes that in examining the values of the different sheepmeat products it is apparent the fall in lamb and mutton prices during the 2014-15 season has been largely attributable to weaker Chinese demand for the forequarter cuts, which account for nearly a quarter of returns from the carcase.

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on the product and its intrinsic demand, is paramount as it ultimately determines the overall profitability of the sheepmeat sector. “Not only is it important for the producer to understand the demands of the customer from both a carcase production and by-products viewpoint – so they can supply stock to those market specifications – it is essential this understanding is held across all sections of the supply chain,” Costello says. “For example, processors need to communicate transparent pricing signals and market information to producers, while the Government needs to continually work with producers and processors to capture new markets.” China exploded onto the NZ sheepmeat export scene in 2013, to become the country’s largest sheepmeat trading partner. In 2014 China accounted for about 40% of our total shipments, on the back of growing per capita consumption and stagnant Chinese sheepmeat production in the seven years to 2013. “However, recently China – the world’s largest sheepmeat producer – has ramped up domestic production to eight times that of total New Zealand production,” he says. “This and record imports from NZ and Australia has created oversupply in their market.” Costello says despite the short-term oversupply problem, growing demand for high-quality, safe and traceable lamb and mutton will ensure China remains a key destination. In light of this, gaining access for premium

chilled lamb cuts in China should be a priority for the Government and industry in NZ as it would allow the higher-volume, lowervalue cuts to be complemented by higher-value product destined for the high-end restaurant and food service channels. The European Union, particularly the UK, remains a key destination for NZ’s highervalue sheepmeat exports, but sluggish consumer demand has hit returns. Costello says higher production in the UK, combined with stuttering economic growth and a stronger British pound vs the euro, has seen demand wane in the UK – particularly for lamb legs. “This has had a considerable impact on farmgate returns here in NZ as leg cuts account for around 32% of the returns generated from the animal.” Costello says though domestic producers will continue to benefit from the long trade history with the EU and market opportunities in China, it is imperative the NZ industry keeps looking for new market opportunities. “With around threequarters of our exports destined for these two markets, it makes us vulnerable to market variables, particularly as both are large producers of sheepmeat,” he says. Further industry collaboration will be key in exploiting new opportunities, Costello says, with markets such as the Middle East having “huge potential for our sheepmeat sector here in New Zealand”. “This is demonstrated in the strong trade the Middle East holds with Australia as the largest export destination for its lamb and mutton.”

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RURAL NEWS // SEPTEMBER 15, 2015

26 NEWS Participants at the 2015 Deer Conference attend a field day in Napier.

Deer gives conference t PAM TIPA pamelat@ruralnews.co.nz

A CONFERENCE just for the younger generation is one way the deer industry hopes to retain young people in deer farming. Deer is similar to sheep in that the average age of a deer farmers is about 55,

says Kris Orange, New Zealand Deer Farmers Association executive committee chairman. Initiatives like the Next Generation conference aim to inspire about 50 young people to “carry on and march up the tree a bit” within the industry, says Orange. There are about 2000 deer farmers in NZ.

If they can encourage those young people to carry on deer farming “percentage wise it is probably quite good,” he says. The third annual Next Generation conference was held in Napier last month; the previous two were in Queenstown. Although mainly the sons and daughters of

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out discussion from all participants in workshops or the whole group together. The main national deer conference is “a bit of a political beast,” Orange says. Some of the younger guys did not see themselves fitting into that side – they would rather get into the nuts and bolts, the facts and figures and meet people of that demographic. The young people together spark good

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interaction and at the start they are told “no question is a dumb question”. “They all fitted in well and were all contributing well at the end of it.” With about 50% having been to one or both previous conferences, he has had feedback that this year’s was the best. With velvet the focus, the first-day programme covered conception and reproductive performance, feeding for

The young people together spark good interaction and at the start they are told “no question is a dumb question”. “They all fitted in well and were all contributing well at the end of it.”

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RURAL NEWS // SEPTEMBER 15, 2015

NEWS 27

e time to younger generation that was doing that…. If it had been a sheep farm, I would have called it [the land] a marginal sheep farm. But instead it is one of the high performing deer farms in the area.” Orange says new opportunities are arising with velvet aside from

traditional markets. Tonnes of velvet are now going into ‘healthy functional foods’ in the form of drinks taken on a regular basis that have velvet extract in them. People in Taiwan and other Asians countries give their children a drink like

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VENISON ALTERNATIVES STARTING TO MOVE CONSOLIDATION IN the deer industry in the last five years means mainly the more committed farmers are left, which is good for the industry, says Kris Orange. “Some are expanding and generally the ones with a bit of scale are the ones sticking with it,” he says. “This is the sixth season of over $100/kg for velvet so it has been very stable and that sort of money is quite profitable. Venison has been on a low for four or five years, but this year it looks like it will pick up a bit, partly through the exchange rate and partly through supply and demand. There’s probably C less venison from New Zealand so there’s less to go M around.” New markets outside the traditional market of Y Germany are developing, particularly with Cervena CM Venison, a brand product made from the high-end MY top part of the carcase which has to be under three years old. Of guaranteed quality, it is being pushed CY into the US and some trial work is underway in the CMY Netherlands and Denmark. K In the traditional German market venison is seen as a meat you cook in a hot-pot for three-four hours. Cervena is used in barbecue or grill type meals which is not traditional for them though they are quite big beef eaters, says Orange. They are trying to get into that market with Cervena to appeal in a similar way to Wagyu beef products. It is not seasonal, but rather is in chilled form so could be in the market 52 weeks of the year. “We are also doing some investigation in China, mainly targeted at western world people living there. Some big hotels might take on something like that.” The Passion to Profit primary growth partnership (PGP) just started in the last six months. Under the project, deer is the first in the NZ meat industry to get its main processors in the same room working together. The objective is to market Cervena into new markets and the PGP is also trying to lift farmer output production-wise. “We’ve got Alliance, Silver Fern, Duncan NZ Ltd, Firstlight and Mountain River all signed up to the document and working out how that will work. Cervena will be the brand; it doesn’t matter who processes it, when it goes into the market it will be Cervena, with few other companies’ logos. “It is all happening, it’s quite exciting. The wheel never turns as quick as you like but it is starting to roll now.”

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Pulsar® is a registered trademark of BASF. Pulsar is registered pursuant to the ACVM Act 1997 P4961

BSF 0065 01/15

RURAL NEWS // SEPTEMBER 15, 2015

28 WORLD

Oz-China FTA deal a political football SUDESH KISSUN sudeshk@ruralnews.co.nz

Far from over; Australian Prime Minister Tony Abbott (centre) and Trade Minister Andrew Robb with Chinese President Xi Jinping at the FTA signing ceremony.

AUSTRALIAN FARMERS are piling pressure on the Opposition Labour Party to support the proposed free trade with China.

With the Australian Trade Minister, Andrew Robb, warning that China could walk away from the deal, the National Farmers Union has joined calls for bipartisan support to pass the enabling legislation

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through Parliament. The NFU says the trade deal will not allow Australian employment laws or conditions to be undermined; instead, it will create more job opportunities. But Opposition Leader Bill Shorten has called the Australia-China FTA a “dud deal that would affect Australian jobs and lead to an increase in cheap Chinese labour being brought in”. Robb says Shorten is siding with militant unions in blocking the deal. “Make no mistake, if Labor seeks to obstruct this deal, China will walk away and pursue other opportunities with our competitors in places like South America; this would be a dreadful outcome for our economy,” says Robb. Some Labour stalwarts, including state premiers and former MPs, are backing the proposed FTA. Victorian Farmers Federation president Peter Tuohey says the FTA was a landmark deal and an opportunity not to be missed. “The premiers’ decision to back the China FTA is a win for common sense. We now call on their Labor colleagues in Canberra to follow suit and ensure the China FTA pass with bipartisan support. This is an opportunity to grow Australian jobs, businesses and our nations’ economy.” United Dairyfarmers of Victoria president Adam Jenkins says for the dairy industry this agreement could not be more impor-

tant. “It is a deal vital to our export-oriented industry as it strengthens our place in the international market. By gaining access to the largest dairy importer, ChAFTA allows us to remain competitive with major exporters such as New Zealand, Europe and the US,” says Jenkins. The history-making free trade deal was signed in June earlier this year by Prime Minister Tony Abbott and China’s commerce minister Gao Hucheng following a decade of negotiations. The deal will ensure that 95% of Australian exports to China will be duty-free; tariffs on dairy, beef and seafood are set to be eliminated within years. But Australian trade unions worry the trade deal will undermine local jobs and increase unemployment. The ACTU says the trade deal will make it much easier for employers to bring in Chinese workers without having to advertise jobs to local workers. Tuohey says the misleading campaign by the union movement risked more than just the opportunities for farmers to grow their export potential – it also jeopardised increases in Australian jobs and businesses. “This is a blatant scare campaign instigated by the union movement. We need to look at the facts here… this is a game changer. To delay the China trade deal means a lost opportunity for all Australians,” says Tuohey.

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A VICTORIA town council has rejected a Chinese company’s plan to set up a milk business. The multi-million dollar Ningbo Dairy Group project would include a 1000-cow farm and a bottling plant to produce fresh milk for Chinese consumers. But the Bass Coast Shire Council in south Victoria last month unanimously rejected Ningbo’s plan. The Gippsland community strongly objected to the project; the council received about 430 objections. The seven-member Bass council refused Ningbo’s planning permit application, despite its own advice to the contrary, mainly on the grounds that the barn and milk-bottling shed ­development were “incompatible and in conflict with surrounding land use”.

RURAL NEWS // SEPTEMBER 15, 2015

WORLD 29

French farmers protest WHEN FRENCH farmers are unhappy they take to the streets. Last week, 1000 tractors rolled into Paris as French farmers tried to clog up the capital’s roads in protest at plummeting food prices. Prices for staples such as beef, pork and milk are being squashed by such as changing dietary habits, slowing Chinese demand and the Russian embargo on western products in response to sanctions over the Ukraine conflict. French Agriculture Minister Stephane Le Foll estimates around 10% of farms in France – about 22,000 -- are on the brink of bankruptcy, together owing NZ$1.7 billion. Last week’s protest wasn’t the first; during the last few months, protesting farmers dumped manure in cities and blocked access to roads and motorways. Farmers’ unions have been negotiating with the Government, which in July unveiled an emer-

gency package worth NZ$1b in tax relief and loan guarantees. But the farmers say this is woefully inadequate, as tales of farms going under and suicides hit the news. After last week’s protest the French Government added $150m to the assistance package. French Prime Minister Manuel Valls also promised a “break” in the environmental norms and a year-long moratorium on debt repayment by farmers. He also announced a reduction in social charges and promised to pour more resources into helping farmers modernise and raise investment. “Agriculture is our heritage, the identity of our rural areas,” says Valls. “Desperation is suffocating families.” An association of European farmers, Copa, says more mass demonstrations are ahead. But more needs to be done. Copa president Albert Jan Maat says EU measures to sup-

port beleaguered farmers are a positive step. EU dairy, pigmeat, beef and fruit and vegetable growers are suffering enormously from the export ban imposed by the Federal Republic of Russia. Its trade embargo has cut almost $10b of agri-food exports. “We welcome the EU Commission announce-

Angry French farmers with their tractors in Paris.

ment to officially introduce measures in the coming weeks to support fruit and vegetable growers and dairy producers in the wake of the Russian crisis,” Maat said. “But it is not nearly enough. There is an extremely difficult situation on the EU pigmeat, dairy, fruit and vegetable and beef markets.”

More power. Less expense.

UNION POWER THE FNSEA farmers union, which organised last week’s protest, says falling prices, including for dairy, meat and sugar, are pushing many members to bankruptcy. Leader Xavier Beulin says his union’s goal was not to disrupt motor traffic in Paris, although he admitted there would be delays related to the protest. “Our goal is to show the Government that we are a determined group.”

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RURAL NEWS // SEPTEMBER 15, 2015

30 MARKETS & TRENDS  MARKET SNAPSHOT



         





                  



 

 

 

  

 









    





BEEF PRICES TRENDS BEEF MARKET c/kgCWT

BEEF NI PRICES P2 Steer - 300kg NI

c/kgCWT

SI



























  







 











   







      













  











 



  











  

  















       

  









 







              













 













 

  









95CL US$/lb  NZ$/kg













Last Week

2 Wks Ago

Last Year

5yr Ave

8.76

8.60

7.98

5.97



  













  





2Wks Ago

 3 Wks Ago

-2%

5.86 5.88 5.90 5.91

3.10

5.91

3.10

















Last Year

66.2%

59.4%

68.6%

61.6%

64.76% 53.2%

5yr Ave

74.9%

67.2%  



 

 









 







    

 





 

 















Last Year 5yr Ave

-8

8.47

8.55

8.01

 

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

8.41

   









   



   Procurement Indicator Change

Procurement Indicator

 2Wks Ago

 3 Wks Ago

 Last Year 5yr Ave

% Returned NI +2% 67.3% 65.5% 77.4% 74.6% 2Wks 3 Wks Last Year 5yr Ave68.3% % Returned Change SI +1% 64.9% 63.7% 74.9% Ago Ago

% Returned NI

+2%

67.3%

65.5%

77.4%

74.6%

 +1% 64.9% 63.7% 74.9% 68.3%                            

% Returned SI

                          

Venison Prices

Change

Last Week

2 Wks Ago

Last Year 5yr Ave

NI Stag - 60kg +15Last 8.15 8.00 6.85 7.59 2 Wks Change +25 Last Year7.05 5yr Ave 7.84 SI Stag - 60kg Week 8.25Ago 8.00

 

2 Wks Ago

1.58 1.58 2.13 1.92 Last 2 Wks -8 8.47 8.55 Last Year8.01 5yr Ave 8.41 Week Ago

Venison Prices

 



Last Week

n/c 1.58 1.58 2.13 1.92 







-2%











Change

NZ$/kg



% Returned  SI



NZ$/kg

UK Leg £/lb



% Returned NI



5.90

6.13

3.65



 

Change



5.485.86 2.885.88

5.48





Procurement   Indicator 





    Export Market Demand

n/c 2.53 2.53 3.00 2.16 

+16





5.486.13 5.483.65

6.12



Export Market Demand UK Leg £/lb n/c



2.53 2.53 3.00 2.16 2 Wks 8.76 8.60 Change +16 Last Week Last Year7.985yr Ave 5.97 Ago

  

  





 



2.88

Change

NZ$/kg

 

2.88

5.58

3.306.10 5.486.12

6.10





Change







Export Market Demand 95CL US$/lb n/c









n/c



 

  

+10

2.885.48 5.48

5.60Year 5.616.08



   

    

 







5.583.30 5.585.48

n/c5.58 5.58

+10

6.08

      





Export Market Demand   



MX1 - 21kg





 

Slaughter

% Returned NI -2% 66.2% 68.6% 64.76% 74.9% 3 Wks Change -2% 2Wks Ago Last Year 5yr Ave67.2% % Returned SI 59.4% 61.6% 53.2% Ago



  







Procurement Indicator





PX - 19.0kg

Slaughter PH - 22.0kg

5.56

5.585.60 5.585.61

+103.30 +105.58

YM - 13.5kg +10 PH - 22.0kg - 16.0kg Mutton PM MX1 - 21kg +10

SI Lamb

Mutton



 



Mutton

+105.75 +105.76

PH - 22.0kg +15 PM - 16.0kg MX1 - 21kg n/c PX - 19.0kg

4.90





- 16.0kg Mutton PM MX1 - 21kg +15 - 19.0kg SI Lamb PX YM - 13.5kg +15

Last Year

2 Wks 5.58Last 5.73

Week 5.75Ago +15 +155.71 5.765.56 n/c5.73 3.305.58

PX - 19.0kg YM - 13.5kgPH - 22.0kg +15

5.90









NI Lamb

5.71

+15Last

Change

2 Wks Ago

Week

+15

PM - 16.0kg

c/kgCWT

5.90









LAMB PRICES NI Lamb YM - 13.5kg

3.25



Change

c/kgCWT

4.10











4.18 4.80 4.18 4.30 5.15 3.30

LAMB PRICES TRENDS LAMB MARKET Last

4.00







-10







5.15

4.80 3.25 n/c 5.10 5.90 5.20 5.90 4.30 4.90 4.10 4.20 3.30



 

 



 





 



n/c

Slaughter  

   

  



Local Trade - 230kg



   



-10

6.10

n/c 4.55 5.90 4.65 5.90 -10 4.55 5.10 4.65 5.20 -10 6.10 4.10 6.10 4.20 -10 5.90 4.00 5.90 4.10

P2 Steer M - 300kg Cow - 200kgn/c M2 BullTrade - 300kg Local - 230kg-10 P2 Cow - 230kg

6.10

Last Year

-10 Week 4.55 Ago 4.65 Year 4.18 -10 6.10 4.55 6.10 4.65 5.15 4.18 n/c 5.70 6.10 5.80 6.10 5.20 5.15

M Cow 200kg M2- Bull - 300kg-10 Local Trade 230kg P2 -Cow - 230kgn/c

Slaughter M Cow - 200kg



 



Change

M2 BullTrade - 300kg Local - 230kg-10 P2P2 Cow - 230kg Steer - 300kg -10

 

n/c

2 Wks Ago

-10 Last 5.702 Wks 5.80 Last 5.20

M2 Bull - 300kg

P2 Cow - 230kg P2 Steer -M300kg Cow - 200kgn/c

SI

Last Week

Change

NI Stag - 60kg SI Stag - 60kg

+15

+25

8.15

8.25

8.00

8.00

6.85

7.05

7.59

7.84

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

“81,123kms - I’ll bank that, thanks!” “I would’ve got another 2000-3000km, but today was the only day I could get into town over the next 2-3 weeks.”

B

rent Boyce explains, after purchasing a new set of Cooper A/T3’s from Tasman Tyre Treads; “My farm consultancy business typically means driving on-road over Takaka Hill (272 corners) 2-3days/week, Whangamoa or Hope Saddles for the rest of the week, and when I get to the farms, spending around 1-2hrs/day of 4WDing.

Brent Boyce Farm Consultant

I’d normally buy regular tyres for around $1,310 a set, costing 3.05¢/km; the Coopers are only 2.34¢/km. This is a saving of $511.20 annually - I’ll bank that thanks! Apart from the money saved, I now spend a lot less time changing tyres. Plus they’re damn good tyres to drive on – I won’t be driving on anything else now!”

Only available from Authorised Cooper Retailers call 0800 MILEAGE or visit coopertires.co.nz

If you’re like Brent, and want to save money on your next set of 4WD tyres, contact Cooper Tires on 0800 MILEAGE or visit coopertires.co.nz to find your closest Authorised Retailer.

RURAL NEWS // SEPTEMBER 15, 2015

MARKETS & TRENDS 31 NEWS

PRICE WATCH

BEEF:. Cows continued to be the main focus on the North Island slaughter front last week. Most processors have limited to no space for anything else, with the exception of those killing contracted prime. There are more bulls lining up to be killed as some try to grab the money before it drops further, but not many processors have been keen to kill them. It is a similar story for uncontracted prime cattle, with cows taking up what space is available. Manufacturing beef slaughter prices continued to ease further in both islands as market conditions weaken further and the number of cows coming forward does not let up. There are still some reports of large proportions of herds being killed, as a shortage of feed and lack of money for supplementary feed forces many dairy farmers hands. However it is believed that when the spring growth appears, the number of cows being culled will slow considerably. Prices for prime cattle, both export and local trade remain at solid levels, with no sign of decline as processors appear to be making sufficient returns to justify the current levels.

SHEEP: Lamb slaughter prices in both islands continue to increase week on week. Concern is growing

around where lamb numbers will be come October, and this is expected to

underpin prices in coming weeks. The release of a new contract in the North Island for the Christmas trade period has risen the bar on price expectations over this period. The contract is offering a guaranteed minimum price of $6.20/kg through Oct and early Nov. Reports from exporters suggest that this year’s chilled trade is supportive of these high prices, although the expected shortage of lambs over this period will also be a contributing factor. Some companies are having to reduce the amount of lamb presold for the Christmas trade period due to uncertainty over supply In the South Island some processors are attempting to stall the number of lambs coming forward for slaughter now in order to build numbers for the Christmas chilled trade later in the season. The promise of higher money is likely to entice a few suppliers to do this, but a careful eye will be kept on weights.

VENISON: Venison slaughter rates have remained slow, with not even the $8/kg schedule able to lure more out. The season has just not allowed the growth rates necessary and reports

Overseas Wool Price Indicators

WOOL PRICE WATCH Indicators in NZ$

Change

03-Sep

Last Year

27-Aug

Coarse Xbred

+10

5.86

5.76

5.40

Fine Xbred

n/c

6.64

6.64

5.72

Lamb

-

-

-

-

Mid Micron

-

-

10.41

7.41

        

 

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







Change

03-Sep

Last Year

27-Aug

+1

3.73

3.72

4.41

-6

4.23

4.29

4.67

-

-

-

-

-

-

6.72

6.05



    









 

























 





  



  

 

 

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suggest it may be another 2 weeks before a good stream of deer comes forward to the works. This is likely to push schedules even higher, as processors up the ante to secure stock for the chilled production period. There is much more positivity in the industry this season driven by

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a weaker NZD against the Euro, low stocks of frozen product in the market and improved prices for some cuts. There is hope that the marketing work undertaken in alternative markets may support the schedule outside of the typical 6 week window for the European chilled trade.

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RURAL NEWS // SEPTEMBER 15, 2015

32 AGRIBUSINESS

Danone threatens to walk away f PAM TIPA pamelat@ruralnews.co.nz

DANONE NUTRICIA says it would consider leaving New Zealand in favour of countries with more suitable raw milk markets if dairy regulations are removed. The Danone Group has factories in Europe, including Ireland, from which it says can source competitive dairy products for the NZ market. The company says – in its submission on the review of dairy regulations in this country – that it wants to see the time period Fonterra is required to supply milk to an independent processor expanded from three to five years. It claims the removal of regulations – particularly those pertaining to raw milk supply to other companies and farmers’

entry and exit provisions – would impact Danone Nutricia’s ability to expand and it would have to reconsider its future development in NZ. Owned by Danone, its Paris-based parent company, Danone Nutricia NZ Ltd manufacturers the Karicare range of formula for infants and toddlers from its two blending, packaging and canning facilities in Auckland. The comments were made in submissions to the Commerce Commission. The commission is reviewing the regulations under the Dairy Industry Restructuring Act. Fonterra has submitted that it should no longer be required to provide raw milk to independent processors after 2018 or be required to collect milk from all suppliers. Danone Nutricia says

Fonterra’s dominance in NZ’s raw milk markets means these markets are not currently competitive. Regulation of the raw milk markets remains necessary for those markets to be workable and efficient, until Fonterra’s “market dominance is addressed”. Danone Nutricia considers that it is of “paramount importance” to retain the current regulations relating to: ■■ the entry and exit of dairy farmers to and from Fonterra (e.g. no discrimination between suppliers, regulation of supply contracts for raw milk, right to supply independent processors, etc.) ■■ the regulations providing independent milk processors with access to raw milk ■■ the regulations in rela-

tion to default milk pricing. Danone Nutricia manufactures the milk powder for its infant formula internally at its Balclutha spray drying facility, which it acquired in August 2014. Previously, it got most of its milk powder from Fonterra. Danone Nutricia’s supply relationship with Fonterra ended in March 2014 because of “serious concerns as to Fonterra’s food safety standards and lack of food safety culture”. The company is planning to invest in its NZ operations over the next five years, it submissions says. It sees the regulations applying to Fonterra as critical to support this growth. “The proportion of milk collected by Fonterra has reduced from its inception to around

Danone Nutricia says if Fonterra stops supplying raw milk under DIRA, it may consider pulling out of New Zealand.

87%,” it adds. “However, despite a reduction in the percentage of raw milk collected, it is still a very high proportion by global

standards. In addition, in terms of total volume, Fonterra has reached a level far beyond the volumes produced in the

early 2000’s. “As a result, Fonterra has retained or achieved a dominant position both domestically and in

IT PAYS TO CHECK BOTH THEIR BLOODLINES. When you’re buying insurance to cover a big investment like a bull, make sure you choose an insurer with the right breeding. FMG has spent the last 100 years looking after the insurance needs of farmers, so we understand the value of bull cover from the fall of the hammer. We also understand the value of personal service, which is why you deal directly with us from the time you take out a policy, to the time you make a claim. It’s no wonder we’re New Zealand’s leading rural insurer. Ask around about us, call 0800 366 466, or visit fmg.co.nz

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RURAL NEWS // SEPTEMBER 15, 2015

AGRIBUSINESS 33

y from New Zealand market worldwide markets. “As a result of Fonterra’s dominant position domestically at both the farmgate and the factory gate, it is generally able to dictate market conditions. “This is especially the case in remote areas where there is little or no competition. Indeed, while there are now some regions with competition where the farmers can opt for a supplier of raw milk other than Fonterra, there are a number of regions where there are still no alternatives. “Furthermore, NZ raw milk markets are not competitive when viewed from a global perspective. For example, in Germany, the national competition authority (Federal Cartel Office (FCO)) conducted a sector inquiry into the milk and dairy industry in 2011-2012 and published a very comprehensive report with its findings. “The FCO states that no milk purchaser has a

dominant market position in any of the regional markets in Germany, though at the time market dominance was presumed under German law whenever market shares exceeded 33%. “However, the FCO is still very concerned about “relatively strong” market positions and long-term contracts as well as a high degree of market transparency. Until Fonterra’s market share is materially reduced, there will continue to be little opportunity for meaningful competition for the collection or distribution of raw milk.” The current dairy regulations enable a degree of workable competition in dairy markets, Danone Nutricia says. Of utmost importance are the obligations on Fonterra in respect of exit and entry of farmers to and from Fonterra, provision of raw milk to independent processors and default milk

pricing. Danone Nutricia says these regulations have enabled the independent supply to its Balclutha facility and sees them as critical to its continued growth. “The entry and exit provisions will allow Danone Nutricia to compete for supply from

farmers within the region around its facility, while pricing regulations make pricing more transparent and mitigate tactical overpricing of milk by Fonterra,” it says. “As an additional consideration, although these regulations appear to be satisfactory for an estab-

lished business (such as Danone Nutricia) to obtain raw milk supply, it appears unclear whether they provide a sufficient avenue for new entrants. “Indeed, the three year exception to the right to obtain raw milk from Fonterra does not appear to be long enough for a new

manufacturer to establish its reputation. “In order to improve the current regulations so that new entrants are able to compete, Danone Nutricia considers that exception to the right to obtain raw milk from Fonterra should be extended to five years.”

Fonterra is now not required to supply raw milk to an independent processor in a season beginning on and after June 1, 2016 if the independent processor’s own supply of raw milk in each of the three consecutive previous seasons was 30 million litres or more.

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THE REMOVAL of the dairy regulations would have a negative impact both on Danone Nutricia and other manufacturers of dairy products in New Zealand, the global dairy company claims. Without the dairy regulations Danone Nutricia considers that Fonterra will: (a) seek to contract with farmers for long periods (eg 5 years+) particularly in areas where it considers competition is likely; and (b) leverage its position in the market to absorb the balance of farmers’ raw milk supply which is currently allocated to independent processors (using targeted tactical pricing, long contracts, etc.). As a result, Danone Nutricia and other independent manufacturers may be precluded from acquiring new sources of milk supply, it says. Furthermore, these tactics will create potentially insurmountable barriers to new entry, enabling Fonterra to solidify, or even grow, its dominant market position. “For example, Fonterra’s latest marketing initiative, “My Milk”, offers farmers the option to sell their milk without being a shareholder. Such initiatives could be used specifically to target farmers supplying independent processors with targeted pricing or supply conditions,” says Danone Nutricia. “In terms of downstream markets, deregulation would give Fonterra a huge competitive advantage linked to its dominant position upstream. Absent regulation, with 87% of raw milk collection locked up by Fonterra, downstream competitors would be dependent on the willingness of Fonterra to supply them by its own choice.” Danone Nutricia considers that it is clear that Fonterra would not have the incentive to do so In conclusion Danone says Fonterra’s dominant position in NZ’s raw milk markets has not yet resulted in meaningful competition developing.

RURAL NEWS // SEPTEMBER 15, 2015

34 AGRIBUSINESS

Soaring bull prices make insurance vital Farmers are being urged to insure bulls and protect themselves from losses.

BULL PRICES are soaring and farmers are urged to insure against losses. While most bulls are sold under $10,000, this year a Gisborne bull was sold for $100,000, breaking the six-figure barrier

for the first time. According to FMG area manager Hayden Dunne, prices paid for bulls this year make it more important for farmers to consider insuring. Dunne told Rural News

that while most farmers may only buy one or two bulls for their herds, some cannot afford to not insure their stock. “But as bulls are gaining in value we are seeing a greater uptake of insur-

ance,” he says. Bad weather and mishaps on farms can also lead to farmers losing their bulls. Dunne says claims on FMG this year have included an animal being swept away in a swollen river, and falling off a cliff and ending up in a tree. “We see all sorts of claims first hand; we work with our clients to settle the claims as fast as possible, getting them back on track, where they would have been out of pocket if

they hadn’t taken cover.” Bull sales and auctions normally take place during the winter months; FMG rural managers attended many sales throughout the country over the bull sale period. Dunne says FMG will be onfarm again for the yearling sales. Insurance cover for bulls bought at these auctions can start at the fall of the hammer, and the options are from transit + 30 days through to an annual policy. Tel. 0800 366 466

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TWO AGRICULTURAL entities have loosened their purse strings to offer new scholarships: Agmardt for leadership training in agribusiness and Zespri for secondary students to pursue a career in the kiwifruit industry. Five new Agmardt scholarships are available for leadership and governance training in the agribusiness sector. They are available for people who want to grow leadership or governance skills to take on future leadership roles in agribusiness and beyond, says Agmardt’s general manager Malcolm Nitschke. “We want to support people who can’t meet the financial costs of training courses themselves,” he says. “We are offering up to $15,000 including GST to assist them to attend courses such as the Kellogg Rural Leadership Programme or a personal development programme or an overseas business school. “We don’t have too many restrictions, and we are interested in applications from people in the regions who have an interest in the agriculture, horticulture or forestry sector. “We’d like the applicants to be nominated by industry organisations or groups.” Applications for the five scholarships close on September 30; visit www.agmardt.org.nz Meanwhile Zespri has announced two new $15,000 scholarships to encourage New Zealand’s top secondary students to pursue a career in the kiwifruit industry. Zespri general manager grower and external relations Dave Courtney says Zespri wants to encourage tomorrow’s leaders into the horticulture sector. “Kiwifruit is a global business; our industry earned $1.6 billion in sales revenue last year and we’re set to grow strongly over coming years,” he says. “The scholarship is not just about financial support; the recipients get to see the industry from the inside.” The funding contributes to university tuition fees up to $5000 a year for three years and the Zespri scholars are supported and mentored through their studies, and network with industry leaders. Recipients will also help promote the horticulture sector through open days and career events. www.zespri.com

RURAL NEWS // SEPTEMBER 15, 2015

AGRIBUSINESS 35

Plan aims to lift region’s sheep and beef PRIMARY INDUSTRIES Minister Nathan Guy recently launched a new scheme to lift the productivity and profitability of sheep and beef farmers in Manawatu-Whanganui. The Sheep and Beef Land Productivity Pro-

gramme comes out of the recently released Manawatu-Whanganui Growth Study, which identified the sheep and beef sector as a key opportunity for the region. “This region has the largest number of sheep

and beef cattle of any in New Zealand, so improving the performance of these farms will be an economic boost,” says Guy. “We know the top 20% of red meat farmers achieve returns about four times more than

those of the average red meat farmer, irrespective of land class and location. This shows the potential on offer. Guy says a regional working group has begun

The Manawatu-Whanganui region has the largest number of sheep and beef cattle of any in New Zealand.

More cash for communities THE ‘CASH for Communities’ scheme is on again, run by PGG Wrightson and Ballance Agri-Nutrients as a means of helping raise money for worthy causes in rural NZ. During the past four years it has raised a total of $365,000. Last spring at least 1300 farmers took part. The scheme doates $1 per tonne of Ballance Agri-Nutrients fertiliser bought between September 1 and November 30 to chosen community groups. Customers may nominate their local

school, St John or Rescue Helicopter for funding. A selection of clubs and groups from various regions are also included. PGG Wrightson general manager retail Stephen Guerin says Cash for Communities is a great initiative for connecting with rural customers and supporting the communities they live in. Customers who joined up in 2014 need not sign again; they are automatically registered for the 2015 spring effort. Register and nominate a cause online. www.cashforcommunities.co.nz

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developing a draft programme structure, looking at how to support farmers to reach their goals and remove barriers to them doing so. “It will inform and

inspire farmers through practical initiatives that make sense and work on the ground,” he adds. “Of course the Government can’t and shouldn’t do this on our own and

this will require involvement and investment by farmers and stakeholders. So it’s great to see there is widespread support from regional leaders to get cracking.”

RURAL NEWS // SEPTEMBER 15, 2015

36 OPINION EDITORIAL

EDNA

A ‘Brighter’ future? IT SEEMS that farmer/shareholder ownership of primary sector entities is almost worshipped in some quarters. Fonterra is often held up as the Holy Grail – although many dairy farmers may dispute this given the current season’s low payout. Of course, Westland Dairy and Tatua, and both the major fertiliser companies, are co-ops, as are many others such as rural supplier Farmlands and insurance company FMG. All these companies are viewed as successful and sustainable operations. But is that because of their co-operative structure or their business models? An area of the agriculture sector where the co-operative model has not been a huge success is the meat industry. Two major players in this industry – the Alliance Group and Silver Fern Farms – are cooperatives, and even in ‘good’ years their profits are meagre in respect of the investment tied up in the businesses. However, these meat co-ops are not alone in suffering poor returns on capital: most of the privately owned entities in the sector also struggle for profitability. For months now, Silver Fern Farms has been looking for a capital injection – thought to be around $100 million – to shore up its balance sheet and appease its bankers. This has raised the prospect of an outside shareholder – possibly foreign – taking a stake in the company. This idea horrifies some in the agriculture sector – as well as opportunistic politicians. Surely an outside shareholder in SFF would be a far saner option than that suggested by NZ First – that the Government “bail out” the meat exporting company. Why on earth should taxpayers invest money in a co-operative when its own farmer shareholders won’t? Rumour has it (at time of writing) that Chinabased Bright Foods is in the offing to inject muchneeded major new capital into SFF. The Chinese firm already has investment in NZ agriculture via its tie-up with Synlait Milk. The Bright connection is credited with helping Synlait to penetrate not just the Chinese market, but others in Asia. Such a tie-up could be a big help to SFF, given that China is the company’s largest market. In the year ended September 30, 2014, SFF’s exports to China earned it $385.6 million – up from $332.4m the previous year Some shareholders stoutly oppose any outside investment; so how about they put their money where their mouths are and stump up the necessary capital. If they can’t or won’t then their opposition is pointless.

RURAL NEWS HEAD OFFICE POSTAL ADDRESS: PO Box 331100, Takapuna, Auckland 0740 PUBLISHER: Brian Hight .............................................. Ph 09 307 0399

“That’s the difference – you think of spring and I think of mint sauce!”

THE HOUND

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

Food for thought

Yawn

Appropriate

Good for you

THE HOUND reckons the Greenies and tree huggers are not going to be too happy about recent reports that indicate organic produce is not necessarily better for the environment. One study shows there is little doubt that synthetic pesticides and fertilisers can have negative impacts on the environment, from potentially endangering pollinators to polluting natural waterways. However, it also found that many organic farmers, especially the large ones, don’t skip pesticides and fertilisers – they just use natural options which are hardly risk-free. Meanwhile, another study has found that organic farming can release even more greenhouse gases into the atmosphere than conventional farming.

WHO WOULD have thunk it? Winston Peters screeching on and on about the dangers of an imminent Asian invasion and takeover of N-Zed! Your old mate notes that, this time, the St Mary’s Bay (Auckland) MP for Northland is not telling farmers who they can sell their farms too, but trying to fan hysteria about possible Chinese investment in meat company Silver Fern Farms. However, Peters was not content to send just one media release on the issue, but instead sent out the same rant three times! Perhaps Winny was a little ‘tired and emotional’ and forgot he had already pushed the send button twice before? Your Canine Crusader suggests maybe it is time for a new tune, as Peters is becoming more boring and increasingly boorish with his antiforeign investment stance.

YOUR OLD mate had to giggle at a recent media proclamation from the Waikato Regional Council. The local government body boldly claimed it is “taking a fresh approach to helping farmers with effluent management”. The Hound reckons no one knows more about effluent – mainly talking about it – than local government bodies. However, further down in the WRC’s media statement came an interesting point: next year the council will hold more catchment-based field days “and has decided not to hold its annual expo at Mystery Creek in 2016 given the dairy payout situation”. Next year, could be a real case of the green jackets at Fieldays: ‘Been up Effluent Creek without a paddle’!

STUDIES SHOW that people who grow up on farms – especially dairy farms – have way fewer allergy and asthma problems than others. In a recent study published in Science, researchers report they were able to pinpoint one possible mechanism for the allergy protection in mice they studied. The research is related to something called the hygiene hypothesis, where a lack of exposure to microbes as a tyke leads to more allergy and asthma. There’s increasing evidence that farms have the best germs for preventing respiratory problems and allergic reactions later in life. Another study found that 25% of children living on Swiss farms reacted to common allergens like dust mites, pollen, animals and mould, while 45% of children in the general population reacted.

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Rural News is published by Rural News Group Ltd. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of staff, management or directors of Rural News Group Ltd.

RURAL NEWS // SEPTEMBER 15, 2015

OPINION 37

Farmers sneeze and townies cough – sooner asked as to how New Zealand can survive without the productivity growth that has been the driver of the economy for so many years. Animals (breed-

ing for production and increased numbers), nitrogen fertiliser, supplementary feeding, irrigation and precision mechanisation have enabled that productivity: more output has been achieved from each unit of input. In the year to June 2015, dairy products, including casein and caseinates, brought at least $13 billion into the country; tourism brought in $11.7b – remembering that many of the tourists come to view the rustic scenery, including Hobbiton in heartland dairying country in the Waikato. The sheep and beef sector has also increased productivity and in the year to June 2015 had created at least $8b of export value (meat, offal, wool, hides and ‘other’). At least 70% of beef now starts in the dairy sector. The effects of the downturn are being felt on farms, in rural businesses and in towns. When the effect reaches the cities, people will begin to understand what ‘downturn’ means. The tourism industry won’t be able to help – most of the jobs connected with tourism are making beds, cleaning rooms and waiting tables; productivity gains are not possible because the jobs rely on people directly – the number of beds they can make in an hour or tables they can serve in an evening. Between 1978 and 2013 (StatisticsNZ data released June 30, 2015) labour productivity in the accommodation and food services sector decreased by 1.1% a year. In contrast

it increased in the agriculture sector by 3.5% a year. Pellow and the Bartons have highlighted a matter that should be a considerable national concern.

Many attempts have been made to move into sectors other than agriculture, but in no other sector do New Zealanders have a competitive advantage.

Nutrient constraints will reduce profitability. This can be offset with a premium approach to a niche market. Achieving that premium for export

has not been achieved but should be the focus of all exporting companies before the downturn becomes a recession. These days it takes less

time for the city to catch a cold when the farms sneeze. • Jacqueline Rowarth is professor of agribusiness, The University of Waikato.

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THE DAIRY downturn could be an indicator of how the economy will suffer if farmers have to reduce inputs to meet environmental compliance standards. Ron Pellow, executive director of the South Island Dairying Development Centre, has done the financial calculations based on real production figures, not scenarios. For Lincoln the outcome of constraining production by cutting fertiliser and feed inputs has been significant. Data presented at the South Island Dairy Event in June by Pellow and coauthor Professor Grant Edwards showed that farm profitability had been eroded by about $500/ ha (over $80,000 for the farm) in 2013-14. N-loss was reduced from 42kg/ ha to about 35kg/ha (Overseer version 6.1), giving mitigation costs of $75/ kg N in the 2013-14 milking season. The farm has moved from being historically in the top 2-3% of performers in the district, to being at the low end of its own benchmark group. A similar story, but different outcome, is being told by Taupo Beef. Taupo farmers Mike and Sharon Barton are constrained in the numbers of animals carried in 2004. In the last ten years costs of production have increased by about 48%. They have survived by capturing an added value market where people are prepared to pay a premium for the beef because they know that by doing so they are protecting the lake. Taupo Beef supplies top end Taupo restaurants and the Bartons want to be the most expensive item on the menu – reminding people that preserving the environment is a costly exercise and that consumers have a role to play in the choices they make. Taupo Beef is for the local market and the Bartons are clear that if everybody did what they have done the market would be swamped and nobody would be profitable. Questions must be

RURAL NEWS // SEPTEMBER 15, 2015

38 OPINION

TPP a prize worth the effort STEPHEN JACOBI

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quest for this complex agreement. Ministers succeeded in significantly narrowing the remaining issues, of which market access, intellectual property and investment are among the most important for New Zealand. Our economy is built on trade, yet we face

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and the speed and cost of doing business. The time has come to put tariffs to bed and concentrate on issues like investment, supply chain connectivity, regulatory alignment and innovation. Back in 2011 TPP leaders committed to concluding a “high quality, ambitious and comprehensive” agreement. From NZ’s perspective this means an agreement that, over time, will result in tariff elimination for all products, all participants sharing equally in the benefits. Timetables and safeguard arrangements may vary, but there should be no exceptions. For NZ the crunch point relates to dairy products, which represent some 25% of our exports. The question is whether NZ is able to gain access to a meaningful share of dairy consumption in Japan, Canada, the US and Mexico and under what conditions. Dairy is to NZ what motor vehicles are for Japan, wheat and grain for Canada, textiles for Viet Nam, but with one major difference -- global dairy markets are even more plagued by high trade barriers. NZ cannot be expected to accept an outcome on dairy that is significantly inferior to what others receive for their products of major export interest. But dairy isn’t the only issue. Tariffs paid to TPP economies in just four sectors – beef, horticulture, seafood and wine – amount to at least $130 million a year. Remember also that other participants have significant unresolved market access issues – Australia on sugar, Viet Nam on textiles -- while products like rice and motor vehicles continue to be problematic. Much concern has been raised about intellectual property, with wild rumours circulating about software patents and illegal downloads. Much of this has proven to be misinformation. The advice of NZ negotiators is that TPP largely upholds the status quo

in NZ, except in the area of copyright where the current term of life plus 50 years may be extended. On the question of medicines, the Prime Minister has said that the role of Pharmac will be protected and that where increased patent terms or longer protection of data for new generation biologic medicines results in increased costs, there will be additional funding and NZers will not pay more for prescriptions. With regard to investment, the Government advises there will be protections for the continuing right to regulate regarding public health and the environment, and the Treaty of Waitangi will be fully protected. Provided the text is well drafted, the risk to NZ from future investor state dispute settlement should be minimal. Nor will TPP be thrust upon us in secret. In NZ, established constitutional practice for all treaties – including TPP -- is that the text is concluded and signed by the Government. Before the treaty can be ratified, the text will be published and scrutinised by Parliament. Anyone with concerns will have the opportunity to make submissions to the select committee. TPP may not be the long hoped-for ‘big bang’ for trade and investment liberalisation, but nor will it be the Armageddon for domestic sovereignty and policy making that some would have us believe. TPP represents an extraordinary attempt on the part of twelve governments to deliver a more seamless environment for business. It is more than the sum of its parts: beyond dairy products, beyond motor vehicles, beyond intellectual property; at stake is the future of economic integration in the region. That makes the potential prize of TPP worth the effort. • Stephen Jacobi is executive director of the NZ International Business Forum. @rural_news facebook.com/ruralnews

RURAL NEWS // SEPTEMBER 15, 2015

OPINION 39

There’s a Gaucho treated seed, and then there’s the rest!

Katie Milne

Farmers’ will do their bit KATIE MILNE

THE HEALTH and Safety Reform Bill grabbed many headlines because of farming activities that are deemed high risk, and those that are not. Because most farming activities fall on the low-risk side, many people seem to have rushed to a judgement that farmers are excluded from these reforms. This is simply not so. The reforms are designed to improve the safety of every industry and every workplace -- farms included. What’s more, the bill passed by Parliament last month is welcomed by Federated Farmers because it will further help our members to address the high level of workplace incidents and fatalities on farms. Farmers know this performance is not good enough. They and Federated Farmers accept there is a problem, and the changes being brought about by the Health & Safety Reform

Bill are just some of the ways we’ll continue to address this. Federated Farmers’ focus to date has been on getting farmers to accept their industry’s poor track record and to raise awareness of the key risks on New Zealand farms. We’ve found it very effective to share the circumstance and causes of safety incidents within the sector. Another key initiative has been to team up with WorkSafe and industry associations to identify and share best practice safety management. Though most farming industries are not classified as high-risk, and do not require an employee safety representative if employing fewer than 20 employees, this does not mean the reform bill will not force further changes on farms. Its reforms are much broader than that. This legislation is to further the provision by all farming industries of a safer environment for all workers. It strengthens the current regulatory

framework in a number of ways and will incentivise everyone who has an ability to influence the risks faced by workers to ensure they do their part. For farmers, that means a legal obligation to manage the risks within their control for all contractors and staff. The application of legal duties has also been expanded to include any person who holds a governance position in a business, such as a partner, trustee or director. In many cases that will mean farmers’ family members, and farm owners. All this is backed by much higher maximum fines and strengthened regulatory oversight, whether you’re working in a high-risk industry or not. These are not small or insignificant implications for farmers, nor are they the only things being done to make our farms safer. Together we will continue to work hard to make this a reality. • Katie Milne is a Federated Farmers board member and its health and safety spokeswoman.

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RURAL NEWS // SEPTEMBER 15, 2015

40 OPINION

US farmers not too keen on Trump The magazine reports that farmers say Trump’s talk is making worse the already difficult labour shortages they face, and brought unhelpful political attention to issues they had hoped to resolve quietly in Congress through legislation to fix the nation’s broken guestworker scheme. Many growers say they will do all they can to tell the public why Trump’s

ACCORDING TO US political magazine Politico Donald Trump’s brash talk about stopping undocumented immigration has excited Republican primary voters, turbocharged his campaign and spurred similar get-tough pledges from several rivals. But the view of many conservative-leaning agricultural communities is “disgust, bordering on dread”.

Trump’s positions inflammatory jeopardize talk, their especially livelihoods and his vow to the supply of deport 11 fresh fruit and million illegal vegetables. migrants, “Trump seriously is terrible for threatens agriculture,” Donald Trump may be US growers said California high in the polls, but struggling to peach and plum US farmers are less impressed. get crops to grower Harold market, said Frank Muller, McClarty, who relies on who grows tomatoes, thousands of workers peppers, almonds and every year.

walnuts on his California farm. “My farm would shut down today if you removed my ... workforce,” Muller said. “You hear all these disparaging remarks about immigrants, but these guys are the hardestworking, most dedicated people ... I’ve ever seen.” Roughly 1.4m undocumented immigrants work on US farms each year, or

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about 60% of the farm labour force, said Chuck Conner, president of the National Council of Farm Cooperatives, a trade group, and former deputy agriculture secretary during the George W. Bush administration. Farmers say they depend on undocumented workers because Americans won’t do the back-breaking work required and the existing scheme for foreign workers is badly broken. Tim McMillan, a Georgia blackberry farmer and owner of Southern Grace Farms, said he could easily double his operation if he could hire labour. “We’ve got the land, the water and the management; we’ve got everything in place but the labour,” he told Politico. “I can’t get American citizens to do the work. They just don’t want to do it.” So farmers are keeping one eye on their orchards and the other on Capitol Hill, hoping lawmakers will vote to overhaul the existing H-2A guestworker visa scheme many say is cumbersome, costly and inefficient.

The numbers of labourers needed to harvest America’s fruit and vegetables cannot be met by H-2A, and its complicated rules and high costs push them to hire undocumented workers, said Barry Bedwell, president of the California Fresh Fruit Association. Farm groups have been quietly lobbying for years to make it easier to temporarily bring farm workers from Mexico and other countries. Under the existing guest-worker scheme preference in filling jobs is given to US citizens. But in many cases American workers don’t want to do the work. “All this conversation seen as anti-immigrant is not helpful,” said National Farmers Union president Roger Johnson. Meanwhile, Steve Freeman, vice president at Pacific Coast Producers, a fruit packing firm, told Politico that finding labour is so difficult farmers are growing different crops. Grapes, apples and pears are labour-intensive, so some farmers are switching to almonds, pistachios and walnuts.

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RURAL NEWS // SEPTEMBER 15, 2015

MANAGEMENT 41

Less pressure on staff and environment MINIMISING THE pressure on their staff and farm environment are key criteria for Ashburton sharemilkers Sara and Stuart Russell. And their efforts to raise farm sustainability have contributed to their win in the Canterbury Ballance Farm Environment Awards. The win, and the process leading to it, helped them confirm they are on the right track. “We wanted to see how our business compared with others, and to find out what we could do to improve in future,” says Sara. She and Stuart, a former builder, 50:50 sharemilk 700 cows on 252ha (eff ), south of Ashburton. The farm is owned by Sara’s parents Rick and Diana Bourke. The Russells entered the 2015 Canterbury Ballance Farm Environment Awards (BFEA) and won the

LIC Dairy Farm Award in their first time in the competition. “We were blown away to win the LIC award,” says Sara. “It was great to know the judges liked what we were trying to achieve.” Last year’s LIC Dairy Farm award recognised the dairy farmer who demonstrated in a practical way the choices made to farm for the long term. The judges took into account the wise use of land, labour and capital resources, and they considered the effects of dairy farming on surface and groundwater and its impact on soil properties. BFEA judges were impressed with Russells’ strong work ethic, clear focus on productivity, innovative nutrient management and excellent staff management. Sara says they always consider staff and the

environment when making key management decisions. She says winning the LIC Dairy Farm Award was a welcome endorsement of their operation. “It was great to get such positive feedback from the judges. Stuart loves talking about the farm and we both enjoyed the judging process. The judges gave us some useful advice on how we could improve our business in future, and we have taken on board their ideas.” One tip they immediately implemented was putting shade cloth under the sawdust in the calf shed, to improve drainage. “The judging process made us take a good look at our business and think hard about what we are spending our money on. That’s been a valuable exercise because in times like this we have to watch our farm expenses

again and “we recommend it to other farmers. It’s an amazing experience”. Entries for the 2016 Canterbury Ballance Farm Environment Awards close on 1 October 2015. Entry forms are available online at www.bfea.org.nz

carefully.” Sara says the awards evening was another highlight. “It was brilliant to meet so many people from different farming types. We found it quite inspiring.” The Russells plan to enter the competition

Ashburton sharemilkers Stuart and Sara Russell.

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42 MANAGEMENT

Ewes give landslide the slip SUDESH KISSUN sudeshk@ruralnews.co.nz

Taranaki farmer Graham Fergus woke up to find 50 slips on his farm.

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IT WAS a Saturday afternoon and it had been raining for two days; Taranaki farmer Graham Fergus decided to move his ewes on a hilly paddock. The flats on his 272ha sheep and beef farm at Douglas, 60km southeast of New Plymouth, were already flooded. After herding the ewes through the gate, Fergus returned home; on Monday morning he returned to check on the ewes and was greeted by the largest slip he had ever seen. Tonnes of rock and soil had crashed down a hill, tearing fences and uprooting pasture. There were 50 slips on his farm alone; a neighbouring property had 200. Fergus counted his ewes, accounting for every animal. He told Rural News he believes the slip occurred before he moved his ewes to the area. “Because I put them

through the gate and went away, I did not see the slip. It would have been a different story if the slip had come down while the ewes were grazing on the hill.” The floods on June 19-21 were among the worst in Whanganui, Taranaki and Manawatu. Fergus was one of hundreds of farmers in eastern Taranaki affected by the floods; most farms in the affected areas lost land, fences and riparian planting from streambank erosion and overflowing rivers. He estimates damage on his farm exceeds $20,000; about 350m of fences are flattened and 100 hours of digger work is required to clear rocks and soil. These are expenses, he can do without, he says. “It’s a big hit -- money you can’t do something else with.” Fergus has owned the property for 11 years; he has been a farmer for 26 years and previously

Rural News 13x3

worked as a labourer. He acknowledges bad weather is part and parcel of farming. “That’s one of the joys of being a farmer; you can’t change that.” Repair work on his farm is underway; helped by Taranaki Regional Council, Fish & Game and Queen Elizabeth II Trust he has begun replanting and re-fencing protected areas on the farm. He hasn’t touched the biggest slip on the farm yet though. He plans to make temporary fences with wire netting and waratahs; rock and soil will be pulled down into the gully. “I haven’t yet got around to doing a lot because I wanted to consolidate the slip; there’s still a lot of loose dirt in there. If we get another heavy rain some of that would move again; but I will get onto it very shortly.” He says the Taranaki Regional Council is providing plants free to affected farmers.

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RURAL NEWS // SEPTEMBER 15, 2015

MANAGEMENT 43 FERGUS' FARM ❱❱ 1600 ewes, ❱❱ 300 hoggets ❱❱ 200 beef cattle ❱❱ suffered 50 slips – repair works expected to cost $20,000

called in a contractor and spent over 300 hours with the drain digger.” The North Island flooding in June is estimated by the Government to have cost the economy $270 million. The council has set aside $395,000 to help with riparian planting to prevent soil erosion; it will supply grass seed and help with environmental fencing repairs.

The Taranaki Regional Council is helping farmers with re-fencing and replanting.

GETTING BACK TO THE PLAN TARANAKI REGIONAL Council director of operations Stephen Hall says about 400 Taranaki farmers have sustainable land management plans aimed at reducing the risk of accelerated erosion, enhancing soil conservation, protecting wetlands and increasing farm sustainability. About 66% of the region’s privately owned hill country farmers have a farm plan, he says. However, it was tough to see good farm plan work destroyed in a few days by June’s extreme weather. Some of the work had taken years. “We want to help where we can, so the storm recovery package is available to all farmers with plans, or those who want to get a plan and work with the council to help them recover from the storm damage. “Farmers’ and landowners’ environmental work is vital to caring for Taranaki, ensuring farm work and living off the land is sustainable.”

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About 350 metres of fencing was flattened.

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Fergus says the slips have affected management. “I haven’t been able to put ewes in a paddock and know they’re going to be there and save grass; with no fences they can go wherever they like.” But he acknowledges that damage on his farm is nothing compared to other farms nearby. “One farmer has over 200 slips and one has

RURAL NEWS // SEPTEMBER 15, 2015

44 MANAGEMENT

Liming regime brings rewards COME SNOW, drought or falling returns, Ranfurly sheep and beef farmer Johnny Girvan always limes, says his lime supplier Graymont. Each year he limes one third of his 1500ha farm. The spreader visits in autumn or winter, spreading 2500-3000kg/ha; next year it covers another third. Girvan bought the farm five years ago, discovering it needed “a shot in the arm” – its pH was about 5.5. Today, because of his liming regime, Graymont says, the pH on the lucernebased pasture is in the mid-6 range and his lambs

are plump and perfect. This year, despite challenging conditions including a long summer dry, he averaged 18.2kg for lambs at weaning and 460kg live weight at the end of January for beef. Girvan says AgLime has created better root depth on his property and because of the increase in legumes in the pasture the stock do not have to eat as much. The pasture has also proved resilient to mild drought. He farms 5500 breeding ewes and 350 cattle, finding that lime “adds valuable heft” to his stock, Graymont says. The pasture and

stock enhancements he has noticed compare well with those recorded during extensive low rate liming trials from the 1970s. The trials were done by MAF (now AgResearch) in the King Country, using a finely ground agricultural lime with high purity. The trials showed that liming, even at a low application rate of 1.12 tonnes/ha, helped boost stock performance. The recorded improvements included ewe weight gains of 5kg, ewe fleece weight increases of 0.5-0.6kg and a 6% improvement in lamb live weights at weaning.

Graymont says this research is still well regarded by today’s soil scientists. Girvan appreciates the high level of calcium carbonate purity in Graymont AgLime (formerly Taylor’s Lime), the company says. McLaren Transport, handy to his farm, delivers the AgLime. Manager Chris Spratt says “99.95%” of his clients choose Graymont over other lime options. “It’s cost-effective and an easy product to apply.” Graymont Makaraeo operations manager Craig Porter says the Ranfurly farmer Johnny Girvan says AgLime has created better root depth on his property.

product is a finely ground, high purity limestone with similar chemical characteristics to the lime used in the MAF trials. Products with lower purity must be applied at much higher rates to get the same performance. “Graymont AgLime averages 97% calcium

carbonate, is Fertmark certified for fineness of grinding, and stored under cover to ensure clients are not penalised for excess water content,” Porter says. Girvan uses 090 and DAP acid fertilisers and once blended elemental sulphur with AgLime to

correct a minor sulphur deficiency. “The economic benefits that we’ve gained through improved stock performance and savings in areas like animal health make liming a really cost effective management tool for our business”, he says.

New judging co-ordinator for regional awards FORMER FARMING journalist Sandra Taylor has recently been appointed judging coordinator for the Canterbury Ballance Farm Environment Awards. The awards application period is open and Taylor is encouraging farmers to show how important environmental management and enhancement is to the industry. “Farmers take pride in their farm environments and the awards provides an opportunity to benchmark and showcase all the work being done on farms in Canterbury,” she says. Entrants benefit from the experience and knowledge of the award judges and will receive a written report on their farm when the judging ends. Taylor says the awards

SEE THE BEST IN ACTION A FIELD day will be held at Omarama Station on November 6 at the farm of Richard and Annabelle Subtil, winners of the 2015 Supreme Award. The 12,000ha family owned farm winters 23,000 stock units, including 7500 Merino ewes and 310 Angus-Hereford cows. Last year the judges described the property as a proven farm business demonstrating excellence in financial, environmental and social sustainability. They also noted the operation is run by family and staff, and that its production and financial performance are industry leading.

are more relevant as pressure grows on farmers to show environmental responsibility. “The awards are an opportunity for farmers to seek feedback on their work to maintain and enhance their environment and to demonstrate

best-practice management to their peers and the wider community.” Entries for the Canterbury Regional Ballance Farm Environment Awards are open until October 1; the annual awards evening will be held on March 23, 2016.

RURAL NEWS // SEPTEMBER 15, 2015

MANAGEMENT 45

PSA hit didn’t deter entry more sustainable, more profitable and better for the environment.” Kenna says it was a valuable learning experience and they enjoyed the judging process, which was not intimidating. “It was more like a peer to peer discussion. The judges came from diverse backgrounds and we enjoyed the opportunity to show them what we were trying to achieve.” They were “ecstatic” to win three category awards in their first time in the competition. Along with the Hill Laboratories Harvest Award, the orchard also won the Zespri Kiwifruit Orchard Award and the Massey University Innovation Award. The Hill Laboratories award recognises excellent crop, pasture and soil management, and takes account of the farming system’s effects on the land resource now and in the long term. “It was a big thumbs-up for our focus on measuring and quantifying what is happening in the soil and our goal of maximising production while minimising downside effects,” Stephen says. Fiona Calvert, Hill Laboratories senior client service manager for agriculture, says Kenna and Wright are worthy winners. “Their belief in ‘measuring to manage’ together with their strong sustainability focus deserved recognition and reward. They are outstanding role models.” Kenna says the competition gives insight into what other primary sectors are doing to improve environmental management and to lift profitability. “It doesn’t matter whether you are growing fruit or animals, the basic principles are the same. We are all trying to produce a healthy product and protect the

environment.” Entries for the 2016 BFEA close on October 16. Entry forms are available online: www.bfea.org.nz

Stephen Kenna and Phillipa Wright with their team at their Katikati kiwifruit orchard.

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THE LINGERING effects of the devastating PSa outbreak didn’t stop Bay of Plenty Kiwifruit growers Stephen Kenna and Phillipa Wright entering the Bay of Plenty Ballance Farm Environment Awards (BFEA). “We are passionate about the kiwifruit industry, despite its biosecurity issues, and we thought we had a good story to tell,” Kenna says. He and Wright run a 15ha orchard at Ongare Point, north of Katikati. Like many kiwifruit growers they were hit hard by the vine disease PSa-V, but their positive attitude and careful planning helped them cope. This impressed the judges of the 2015 contest, who chose the orchard for three category awards, including the Hill Laboratories Harvest Award. Kenna says they entered to benchmark their operation against a wide range of agricultural enterprises. “We’ve always focussed on sustainable management that pays, and we are constantly questioning our practices and looking for better ways to do things. “So our key motivation for entering was to compare ourselves with others and see what similarthinking people were doing to improve the sustainability of their operations.” Their business, KWKIWI Ltd, is still recovering from the PSa outbreak, but this did not inhibit them from entering the contest. “Just like any farming operation, the work is never quite finished, you are never 100% ready and each year the climate throws something different at you. So you’ve got to take the long term view. We thought the competition would help us tweak our operation and make it

RURAL NEWS // SEPTEMBER 15, 2015

46 MANAGEMENT

Hawkes Bay readies for major equestrian event VIRGINIA CARO

IN THE early 1980s the sport of eventing was emerging as a possible contender for international honours. Mark Todd had won the Badminton Horse Trials in England in 1980, riding Hawkes Bay bred Southern Comfort. Eventing was a minority sport with a two month autumn season then, but efforts were being made to expand into spring, to further riders’ experience. With this in mind a delegation from the Central and Southern Hawkes Bay Horse (C&SHB) trials

committee sought permission of Hawkes Bay Farmers Meat Co to build a crosscountry course on its Takapau freezing works farm, Arran Station. This was granted and the first event over a combined cross-country/ showjumping track ran on November 10, 1985. Thirty years on and the venue has become home to the Arran Station Horse Trials which attracts competitors from throughout the North Island. C&SHB Eventing, as the group is now known, has weathered three changes of venue ownership, the

freezing works having been bought by, first, Richmond, then PPCS then the present owner Silver Fern Farms. All have been generous and co-operative landowners. Such is the reputation of the Arran Station event that C&SHB Eventing was invited to stage the 2015 National Eventing Championships. It is a major challenge for a small rural group to host such a prestigious event in the current economic climate, but the committee is dedicated to providing a fitting occasion for the national championships and for the 30th anniversary of

that first, low-key event. The championships will be held this Labour Weekend, with dressage and show jumping on Saturday October 24 and the cross-country on Sunday October 25. There are four title classes from 3* (Advanced for the Forest Gate Trophy), 2* (Intermediate for the Waiteko Trophy), 1* (Novice for the Ferndale Salver), and 105cm (Prenovice for the Blyth Tait Trophy), and all the usual lower level and age group classes. The Forest Gate Trophy is the oldest eventing trophy in New Zealand, first presented in 1956 in honour of

Current holder of the Forest Gate Trophy, Fraser King & Nadal KSNZ; rider and horse now live in Holland. PHOTO: ANNIE STUDHOLME

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Duncan Holden, a co-founder of the NZ Horse Society (now Equestrian Sports NZ), who lived at Onga Onga in Central Hawkes Bay at his property called Forest Gate. The National Oneday Event Championship as it was then, became known as the Forest Gate, still called that by long-time followers of the sport, though

intermediate and novice championships were added subsequently, and latterly a pre-novice title as well. The many entries received now require the three disciplines to be held over two days to cope with the logistics. The last time the Forest Gate was held in C&SHB was 1982, at the previous venue, Larry White’s property Sherwood, at Ashley

Clinton, near Takapau. It was a quality field of eight competitors, with the White girls from Otane taking top honours ahead of Mark Todd. Tinks (now Pottinger) was the tile winner on Mary Wilson’s Two By Two, with sister Ginny second on Aachen, and Mark third on Beaumont. @rural_news facebook.com/ruralnews

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48 ANIMAL HEALTH

Induction ban no biggie – vet DEBBIE NORTON

PROACTIVE FARMING and a stringent plan is credited for minimising the impact of the industry-wide ban on routine inductions which came into effect this season, says Canterbury veterinarian Bernice Mangnall. The ban, which outlaws inducing late calving cows, bothered farmers when it was first announced. But farmers were given time to adjust to the change and this has minimised its impact, Mangnall says. “As an industry we managed to get an agreement from ACVM (Agricultural Compounds and Veterinary Medicines) to work with farmers over time and get them reducing inductions in a managed way, rather than lose them overnight,” she told Rural News. “Some progress was made straight away as many farmers saw the need to reduce. Even more progress was made when the percentage of inductions was capped and monitored,” Mangnall adds. This began in the 2010-11 season, when new standards were introduced. This came following the review of the

drug and the risks it posed, leading to the removal of its registration for routine inductions in 2005. By the 2011-12 season, induction levels within an individual herd were limited to 8%, reducing to 4% the following season. “I think we were very lucky to get a 10 year transition period. Those who came to terms with it earlier have probably suffered the least.” Mangnall, a member of the dairy cattle veterinarians branch of the New Zealand Veterinarian Association, believes farmers have been well equipped to deal with the change. She credits the use of tools such as the Fertility Focus Report, InCalf program, InfoVet analysis for reproductive performance and using aged pregnancy testing. These allow farmers to identify potential reproduction issues earlier and enable them to monitor and measure performance with greater accuracy. “Most farmers have adjusted well and have worked within the 4% induction level for the past few years, so if they stick to the basics and get them

Canterbury vet Bernice Magnall believes phasing out inductions was the right thing to do for New Zealand agriculture’s image.

right there should not be a big impact,” says Mangnall. However, Marvin Pangborn, lecturer in farm management at Lincoln University, and a farm owner himself, believes the effects may be more noticeable next season following the low payout. “Some farms will be short of funds to fully feed cows, which will result in lower body condition scores (BCS).”

Cows that calve at BCS 4.0 compared with BCS 5.0 are 7% less likely to be cycling at the planned start of mating (PSM). This can have further implications for a cow that has not cycled by the PSM having a 16% lower 6-week in calf rate and a 6% higher empty rate. Pangborn says the lower payout may also lead farmers to AB their cows for a shorter time, putting more pressure

on bulls. Should cows not get back in calf early enough, then they risk being culled. “Cows that would have been induced in the past were culled in the autumn. The October cows that have been retained (but not induced) will produce at least 50kgMS less this lactation. This has led to needing more R2-year-olds and reduced the ability of the farms to cull cows on production.” Mangnall supports the dispensation system, which allows farmers who have suffered extenuating circumstances outside their control to apply to a panel for dispensation. Examples where this has been granted include AB technician failure and disease outbreak. She believes phasing out inductions was the right thing to do and had the warning signs been ignored it would only have been a matter of time before images or videos began appearing across the internet. “This would tarnish the image of New Zealand farming as a whole and not just be confined to the reputation of the dairy industry.”

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Massey research turns-up top lambing tips MASSEY UNIVERSITY’S International Sheep Research Centre has for ten years researched top tips for lambing -- getting the most out of a sheep flock after a hard winter. The harsher conditions over the winter period mean the usual target of 1200-1400kgDM/ha for pregnant ewes during lambing and lactation may not be achievable for many farmers. Sheep lecturer Dr Rene CornerThomas says the best strategy for utilising available pasture is to prioritise stock classes. Pay attention to light ewes with a body condition score of 2.5 or lower. Also a priority are ewes that have multiple lambs. Of particular importance are light ewes with multiple lambs. They should be given the greatest priority, she adds. Stocking rates should match pasture growth which is usually 10-12 ewes/ha based on the amount of metabolisable energy in the grass. Lamb survival will also be increased by choosing appropriate lambing paddocks. Corner-Thomas says based on experience from previous years farm-

ers will intrinsically know which of their paddocks is most successful for lambing. But it will help to choose paddocks that are flat with shelter and have no creeks and other hazards. Finally, the research centre (part funded by Beef + Lamb New Zealand and the C. Alma Baker Trust) has shown that grazing ewes on a herb mix -- which includes chicory, plantain and both red and white clover – results in greater milk production and better twin and triplet lamb growth and survival to weaning. In a study of ewe hoggets grazed on herb pastures during lambing and lactation, the lambs grew at 360g/day from birth to weaning. In the second year of the study the lambs born on the herb mix also had better survival than lambs born on ryegrass pasture. However, Corner-Thomas warns farmers to take care. “It’s not recommended to lamb ewes on the herb mix and then take them off. These herb mixes are high in calcium so any sudden shift back to ryegrass may mean they may lack calcium, resulting in ewes going down with milk fever,” she explains. “So

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once ewes are on the herb mix they need to remain on it until after the peak of lactation” (four weeks after birth). Corner-Thomas adds that if the herb mixes are not ready to graze at the start of lambing, the best strategy is to put ewes on the pasture until after the peak of lactation and then allow ewes to become accustomed to the new feed slowly. Ewes should be introduced to the herb mix over a week by slowly increasing the time they are on it. The first day should be only a few hours slowly increasing the duration. “Sheep are quite conservative grazers, so they need a while to get used to it.” Scientists from the sheep research centre will run trials this spring to glean more information for farmers looking to try the herb mixes. Corner-Thomas will investigate lambing twin hoggets on the herb mix, and the use of the mix to wean lambs a month earlier than normal. Dr Lydia Cranston will research the use of the herb mixes on hill country for early weaning of twin lambs.

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

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RURAL NEWS // SEPTEMBER 15, 2015

50 ANIMAL HEALTH

‘Don’t feed bolted s SUDESH KISSUN sudeshk@ruralnews.co.nz

FEEDING MATURING swede crops increases the risk of ill-health in cows, according to results of analysis of Southland swede plants collected last season. DairyNZ says the

DairyNZ says feeding maturing swede crops to cows could increase illhealth.

findings back up its advice given to farmers. Following the analysis, the industry body is recommending that farmers do not feed herbicide tolerant (HT) swedes to cows in spring when the animals are in late pregnancy or early lactation.

DairyNZ is also advising caution if farmers are considering other leafy varieties. DairyNZ arranged for swede sample analysis from 11 Southland farms in September last year after cows became ill and some died. Staff collected swede samples, promptly dissected plants and froze the samples in liquid nitrogen to prevent spoiling of the plant material and breakdown of the glucosinolates (GSLs) -the naturally occurring compounds in brassicas that have been linked to cow health problems. Swedes were dissected into up to six plant parts so each section could be analysed separately. Up to 150 plant parts were

individual GSLs. The concentrations of individual GSLs varied between plant parts. HT swedes have higher concentrations of GSLs in ‘reproductive’ plant parts, increasing the risk of ill-health for cows grazing swedes with elongated stems and the appearance of flowers. No single GSL stands out as significantly different between plant variety and plant part. DairyNZ SouthlandSouth Otago regional leader Richard Kyte says the new plant data supports the current DairyNZ advice that farmers should be cautious when feeding swedes. “This analysis confirms that feeding maturing swede crops

HT swedes have higher concentrations of GSLs in ‘reproductive’ plant parts, increasing the risk of ill-health for cows grazing swedes with elongated stems and the appearance of flowers.

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analysed from three swede varieties from the 11 different farms. Key findings from the analysis are: Total GSL concentrations are higher in the HT swede variety than in the non-HT varieties. While there is not much difference in GSL concentrations in the bulb and crown between HT and non-HT swedes, GSL concentrations in the other plant parts are generally higher for HT swedes, with a pronounced difference in the upper leaf and upper stem. The risk of ill-health and death in cows increases when total GSL concentrations increase as swedes enter the reproductive stage (elongated stem, new leaf, flowers and seed heads). Different parts of the plants included different

increases the risk of ill-health,” he says. “Farmers should manage a number of factors in feeding swedes this season, including the proportion of swede that makes up the diet of their cows. “And these new plant results back up our earlier farmer survey findings that feeding swedes on the milking platform in spring when cows approach calving and early lactation increases the risk of illhealth. “The farmer survey we released earlier indicated that in spring 2014 there was a higher risk of ill-health from herbicide tolerant (HT) swedes than from other varieties of swedes in spring. “Given those findings and now the plant analysis, we’re recommending farmers do not feed HT swedes

RURAL NEWS // SEPTEMBER 15, 2015

ANIMAL HEALTH 51

d swedes to cows’ to cows in spring when the animals are in late pregnancy or early lactation and when the risk of all the factors that can lead to ill-heath and cow deaths can rapidly combine. “In spring, air temperatures are expected to increase rapidly, leading to ‘bolted’ swedes; bolted HT swedes have much higher levels of total GSLs. At the time of planting their swedes, farmers have no idea what the following winter/spring is going to be like. Spring is a key risk time as swedes will be closer to going into the reproductive stage,” he says. However Kyte says the climatic and growing conditions for swedes this season are very different from last year. “We identified through our farmer survey a departure from the ten year climate average for the region in 2014. The warmer air temperatures and fewer frost days may have enhanced both leaf growth and maturity last year. “We’re seeing quite a different growth pattern this season. Plants don’t appear to be bolting. Last season was a bit abnormal,” he says. “The general advice we’re giving to farmers is that special care is needed with HT swedes and other leafy varieties like Aparima Gold and Triumph, when warm

also running two confidential online surveys to understand more about how farmers use crops during winter and spring in Southland. “This will help us target advice and identify future research needs for managing crops. I’d urge Southland farmers to complete the survey if they get randomly

air temperatures from northerly weather conditions cause swedes to regrow and change quickly. By early August last year farmers were seeing the plant in an advanced reproductive state. But that’s not the case this year,” says Kyte. “This plant analysis has

shown that HT swedes, collected in September 2014, had higher concentrations of GSLs in ‘re-growth’ components of the crop, increasing the risk of illhealth for cows grazing swedes that have bolted and have elongated stems. In a nutshell, we’re saying don’t feed bolted swedes to livestock.” Kyte says it has been a slow process to get the robust plant analysis completed. “Unfortunately there

Richard Kyte, DairyNZ.

is no quick test for plants and we’ve spent a lot of time developing and establishing a method to determine GSLs with a commercial laboratory – Hill Laboratories.” He says DairyNZ is still monitoring the health of a small number of cows this season. “This is the first step in assessing how we can develop baseline monitoring for detecting early signs of ill-health in cows.” DairyNZ is

selected.” DairyNZ will now complete its consolidated report pulling together the results of all the different parts of its study into last year’s issues with swedes. “We expect to release this final report to farmers in October,” says Kyte. DairyNZ’s full farmer advisory on the plant analysis is available at www.dairynz.co.nz/ swedes @rural_news facebook.com/ruralnews

KEY FINDINGS FARMERS NEED to focus on managing a number of factors when feeding swedes, including the proportion of swede that makes up the diet of their cows. All swede varieties can present a risk to animals depending on how and when they are fed and used as part of the farming systems. However feeding maturing swede crops increases the risk of ill-health in cows. The chemistry of glucosinolates (GSLs) for swedes and other brassicas is complex. It changes with swede variety, growing conditions and crop maturity. Further

complexity is added when the GSLs are changed during eating and digestion. Cow ill-health increased last season as the proportion of swedes fed as part of the diet increased. Feeding swedes on the milking platform in spring when cows are approaching calving or early lactation also increased the risk of ill-health. DairyNZ recommends that farmers do not feed HT swedes on the milking platform in spring (late pregnancy, early lactation) when all the factors (warmer temperatures, new leaf growth, bolting) that

lead to ill-heath and potential cow deaths can rapidly combine. Plant analysis has shown that HT swedes, collected in September 2014, had higher concentrations of GSLs in ‘re-growth” components of the crop, increasing the risk of ill-health for cows grazing swedes that have bolted and have elongated stems. Farmers should not feed bolted swedes to livestock. There was a departure from the ten year climate average in 2014 in Southland. The warmer temperatures and fewer frost days may have enhanced both leaf growth and maturity.

RURAL NEWS // SEPTEMBER 15, 2015

52 ANIMAL HEALTH

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Chicory helps sustain summer production

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CHICORY IS again in the spotlight as a summer feed that can help dairy farmers reduce the amount of feed they buy in, comments Ravensdown. The company cites the experience of Brendon and Rochelle O’Leary, milking 400 cows on 85ha at Gordonton, Waikato. They have split calving: 310 cows calving in autumn (from March 10) and the other 90 in spring (from July 10). Their aim is for efficiency. Chicory has been a summer crop for six seasons. “It’s a high-quality feed with good protein levels so the cow’s milk well on it over summer. We’re pleased with the results it has given us,” Brendon O’Leary says. Thirty hectares of maize silage and 100 tonne DM of grass silage is grown on a runoff 18km away at Orini where their young cows are grazed. “We bring a lot of feed onto this farm. We milk twice a day with the cows fed on a feed pad. They are high producing Friesian and Friesian-cross cows with a lactation length of 305 days on average producing 480kgMS/ cow.” They chose chicory as a summer crop on the peat soils as part of the pasture

renovation on the farm. This year they bought seed from Ravensdown with agri manager Sarah Sexton providing agronomy support to help the O’Learys maximise forage production. “We grow enough maize silage off the farm. We needed a crop we could graze on the platform during milking,” O’Leary explains. “Chicory has high protein and gives us high yields so it was a perfect fit for what we required in a summer crop.” Paddocks are sprayed out in September and the

Brendon O’Leary

Chicory has high production and gives high yields.

chicory is planted in October. A post-emergence spray is used after germination (usually about 23 days after sowing) to kill any broadleaf weeds and

summer grasses. “It is most important to keep chicory weed-free to get the best yield out of it,” Brendon says. The chicory is grazed

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from early December until April with a rotation of about 23 days. The crop’s yield is about 18-20t/ha for the season. “Chicory grows well over summer because it has a big taproot that gets down into the moisture and continues to grow a lot better than pasture would at the same time of year. We continue grazing it until about the end of April and then spray it out and put the paddock into permanent pasture.” O’Leary says they will plant another 20ha of chicory again this spring.

RURAL NEWS // SEPTEMBER 15, 2015

ANIMAL HEALTH 53

Value not cost determines bull-beef choice A FARM consultant is urging dairy farmers to focus on value, not cost, in choosing beef bulls. AgFirst Consultant and beef specialist Bob Thomson says most dairy farmers mate early calving cows to high BW AI dairy bulls, breeding the remainder of the herd to service bulls or beef AI. “In mating the balance of the herd it’s possible to claw back a significant proportion of the cost of mating by selecting proven beef bulls which are easy calving and short gestation. “We need to challenge traditional cost thinking – selecting proven beef bulls (easy calving and short gestation) could mean up to four-five extra days in milk and generate a dairy-beef calf which is worth more. “It’s a win-win-win – safe calving, more days in milk and a calf in demand by the beef industry,” Thomson says. “Whether you choose AI or service bulls is up

to you, but breeding values should be part of the decision. I encourage farmers to explore the differences between the estimated breeding values (EBV’s) of the bulls on the hoof and AI. “There can be big differences. And buying bulls with no records is a pig-in-a-poke so can be very risky. “As dairy farmers you can choose to take some of the risk out of your business by selecting beef bulls which will generate income in three streams – easier calving, more days in milk and a high-value dairy-beef calf. “Genetics companies and beef breeders have those bulls but you have to do your homework.” Thomson says the beef industry relies heavily on the dairy industry for beef finishing cattle and there needs to be more collaboration between the industries. “There are currently 660,000 finishing

cattle of beef origin on farms, 420,000 of dairybeef finishing type and 420,000 which are dairybeef bulls – that’s 840,000 of dairy origin. “Beef + Lamb New Zealand Genetics is aware

established and young beef sires to promote greater awareness of the attributes needed by the dairy and beef industries. @rural_news facebook.com/ruralnews

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COWS DON’T like walking uphill: that’s a fact, say scientists at Massey University. It stems from their research, funded by Beef + Lamb New Zealand, into more sustainable ways to manage beef cows on hill country and around waterways. Drs Rebecca Hickson and Ina Draganova and Professor Steve Morris monitored Angus, Angus cross Friesian and Angus cross Jersey cows for two consecutive winters at Massey University’s Tuapaka farm (part of the Massey University Agricultural Experiment Station) to get baseline measures of how the cows used the 8 to 12 ha paddocks. The research found that, even in extensive hill country paddocks, cows avoided walking uphill. Of the 3km they walked each day, less than 300m was uphill. Instead the cows followed the contours of the hills and concentrated their grazing on the flatter areas. The movement of the cows was largely unaffected by cold, wet weather. Despite this energy-saving pattern of movement, maintenance requirements of the cows increased by about 15% to meet their energy needs for walking. This reinforced existing estimates of feed requirements used for beef cows grazing in hill country. The team say this research confirms what farmers already know about feed requirements and grazing habits, but gives them a baseline measure to work with. From here, the researchers will be manipulating where cows are fed supplements to see if this encourages them to use different areas of the pasture.

of the need for greater clarity about the breeding values of beef sires for dairy farmers and beef farmers and is currently investing in a dairy-beef programme which is testing and comparing

Bob Thompson

Restricted Veterinary Medicine. Available only under Veterinary Authorisation. ACVM No: A6422.

Shaping the future of animal health

RURAL NEWS // SEPTEMBER 15, 2015

54 MACHINERY & PRODUCTS

Dealing with large swathes ROTARY SWATHERS have been the choice of farmers and contractors for producing large swaths to increase forager and balers outputs, so the new Kuhn GA 13131 from CB Norwood Distributors should interest those wishing to improve daily clearing rates. It has four rotors, each fitted with 11 heavy duty tine arms and four tynes per arm. Each unit is carried by four large diameter pivoting wheels that ensure accurate ground following, greater stability and the potential for high working speeds. Working height is adjusted hydraulically from the seat and on the move and should reduce the risk of soil contamination.

The drive to the rotors is hydraulically controlled and offers the unique ability to increase front rotor speed by 20% for use in light crops, but more importantly removes the typical

PTO shaft set-up that is prone to damage in semi-mounted configurations. Each rotor has the Masterdrive GIII gearbox that allows 3-D pivoting system and 200 hour

service intervals Windrow formation can be adjusted hydraulically from 1.5 to 2.4m width, and each rotor can be lifted individually for a good finish and greater clearance when operating in undulating terrain. Ease of use is further enhanced by an ISOBUS compatible VT50 control terminal, which can be used to pre-programme the rotor lift sequence for single touch headland turns. The rear ‘touchdown’ of each rotor ensures there is no soil contamination. Transport width is 3m and transport height is under 4m. PTO power requirement is a thrifty 95hp. – Mark Daniel www.kuhn.co.nz

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FARMERS FEEDING total mixed rations (TMR) are likely to have load cells on their mixer wagons, but others using traditional feeder wagons might appreciate a weigh system from Loadrite, part of the Trimble Group, which fits to a frontloader, telehandler or skid steer unit. This unit will give the user a better understanding of the quantities they are feeding – be it over or under the target quantity. It will also be useful if materials are being sold off-farm. The systems are based around a hydraulic transducer, built into the loader lift ram circuit, which converts differences in hydraulic pressure to an electrical signal displayed as a calibrated weight on the in-cab screen. The system is capable of being used with up to nine different attachments, such as buckets, fork/grabs and pallet tines. Because the centre of mass is different with each attachment, this requires a quick, one-off calibration for each and is stored in the control box. In use, once an attachment is changed, the operator goes to the display and selects the correct item before weighing commences. In practice, the S1100 system uses a single sensor and is used statically, which means to carry out a weight check the operator lifts the loader until arrows line up with a marker, then hits the ‘weigh’ button on the in-cab display. This format ensures that differences in hydraulic forces because of lift height and geometry are removed from the calculation. An alternative option is the TS 1128 system, which uses twin sensors and can be used dynamically or on the move for faster operation. It also offers increased functionality with overload warnings, load counters and recall and subtract functions, as well as the option of a print-out. Both units are easy to retro-fit to existing set-ups in around three hours and the manufacturer claims an accuracy of around +/- 1% when correctly calibrated. All units are robust and weather proof and can be fitted to any ROPS loader tractors www.loadritescales.com

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RURAL NEWS // SEPTEMBER 15, 2015

MACHINERY & PRODUCTS 55

Extra eyes to protect your assets MARK DANIEL markd@ruralnews.co.nz

SADLY THE days of leaving your house unlocked or the keys in the car ignition are long gone and it appears commonplace to hear of someone in your locality who has been burgled. As well as the physical and monetary implications, there is also a psychological impact and a desire to ensure it doesn’t happen again. Silvan Selecta has recently added two new products to its security range to help deter thieves who will likely be opportunist, on the lookout for unattended tools, chainsaws or even fuel. The economy security camera is a motion activated system that

helps keep a 24-hour watch on buildings and the surrounding areas. A 5-megapixel camera saves images to an 8 GB SD card and keeps a record of comings or goings, an invisible infrared flash recording night time movement. Its compact size allows it to be located in a discreet position and its content used to identify intruders. The unit is available from Selecta re-sellers at $220+GST. A second device, The Selecta driveway sensor alert, can be placed on driveways, gates or entry points to alert residents to people or vehicles passing through. Movement can be detected up to 10m from the sensor, and transmitted up to 100m to the receiver. Upon

detection a LED indicator light and an alert chime, with three volume levels are activated on the receiver. The sensor is powered by 3 AAA cells, the receiver by 3 C type cells.

Both units are compact and unobtrusive and easily mounted for best coverage. Price: $45+GST. www.silvannz.co.nz The security camera is motion activated.

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MORE MODELS IN NEW FORKLIFT RANGE MANITOU, THE French materials handling specialist, has expanded its range of industrial forklifts with eight new models of 5-10 tonnes lift capacity. The 50, 60 and 70 models, offering nominal lift capacities of 5, 6 and 7t, are available with either a Cummins QSB 3.3L diesel engine or a PSI 4.3L LPG engine (100hp). The larger 80 and 100 models with 8 and 10t capacities are diesel only and powered by a Cummins 4.5L engine producing 110hp. All units have a power-shift transmission with 30km/h maximum speed, oil immersed brakes for a long service life and an inching pedal as standard for jerk-free approach. These models also have an end of stroke function for safety. Particular care has been taken over the cabin design, which offers non-slip access steps, a flat floor offering more space and improved visibility through the wide fork frame, hi-vis roof and ‘sculpted’ rear pillars. A contoured seat with seat belt completes the package. Manitou says the design brief for the new models was based on users’ needs for simplicity, comfort, reliability and efficiency, and low operating costs. www.manitou-group.com

$11,990

+GST

• 5.2 m-10.70 m working widths • 4, 6 and 8 rotor models • PTO shaft fitted with rachet clutch • 6 tine arms per rotor, fitted with one 10.5mm double tine per arm

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$33,500

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Your local Harvest Centre locations:

For more information call us on:

Whangarei Hamilton Rotorua Hawera Hastings

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RURAL NEWS // SEPTEMBER 15, 2015

56 MACHINERY & PRODUCTS

Old favourite Corolla hits the mark with new model MARK DANIEL markd@ruralnews.co.nz

WE’VE ALL got one, whether it’s the old t-shirt from the seventies, the old shoes even after the puppy chewed them, or that favourite spade with the handle taped up. The only problem is ensuring that the ‘domestic superintendent’ doesn’t go on an unannounced spring clean and throw them out. So sits the Corolla Wagon, an old favourite that’s been about forever, blends into the crowd in an understated way, and is as reliable as that old pair of shoes. Look closely because there are lots on the roads, and the registration plates would suggest that you can’t kill them. So what about the

current offering? First impressions are there haven’t been a lot of changes over the old model, but the introduction of a few curves to the body shell and some chrome and black on the front grille have tidied things up, and colour coded door handles give a sense of cohesion to the design. Jumping into the cabin leads to a first impression that the seat is a little soft, but as you drive it seems to give good support and is genuinely comfortable. And then there’s that familiar feel, where everything falls readily to hand, as if you’ve been here before; a tribute to great ergonomics.

The Wagon gets the 1.5L DOHC engine with variable valve timing and punches out 80kw without

any fuss, though appears slightly harsh at takeoff. The test car was fitted with the optimised CVT transmission that strives to match engine

The new Corolla makes an old favourite even better.

speed to forward speed and it seems to do it quite well; while the first impression is that you’re not going very fast, the speedo suggests other-

RELIABLE. ACCURATE. EASY-TO-USE. WE LISTENED.

wise. It’s all so easy and whether you’re in town or on the open road the kilometres pass by. The transmission also has optional manual mode which offers seven speeds, but why would you? Drive mode is so easy. The car is also easy on the pocket -4.4L/100km, in line with the same company’s small hybrids, 14% better than the previous version The rest of the package surprises too, with a specification called GX but offering much more: vehicle stability control,

narrow objects, and a rear load area holding 407L in standard set-up or a cavernous 972L with the seats folded. In summary, the Corolla does what it says on the can so you probably couldn’t find better in the mid-size wagon sector. It gets along quickly without effort, won’t break the bank at the fuel pumps and has heaps of room in the back: great for the school run, or collecting a few bags of calf pellets. Just don’t let her indoors catch you!

traction control and hill start assist. There’s also keyless engine start, a start-stop feature for the engine in a bid to save fuel when stationary, and electric power steering that’s well weighted and offers the right degree of feedback. Other controls are straightforward, including good old round knobs for heater, radio and other key functions, Bluetooth, USB connection and a standard audio jack. The rest of the interior is as you would expect: plenty of legroom for the rear passengers, rear seats that split 60:40 for long

www.toyota.co.nz @rural_news facebook.com/ruralnews

t “Don’t get caugh

As a result of more than 10,000 hours of farmer centric research, development and testing the Katipo is packed with unique features that make spraying a whole lot easier. > The tank shape eliminates chemical stagnation, settling out and contamination. > A stronger cradle style chassis means both tank and chassis last longer than

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Scope of Registration:

4

YEAR* WARRANTY

08 May 2015

Design and manufacture of large, rotational moulded Polyethylene products

Registered Site(s):

Registered Site(s): 36 Cryers Road, East Tamaki, Auckland, 2013, New Zealand

C32748

Scope of Registration:

24 Feb 2018

24 Feb 2018

Registered Site(s): 36 Cryers Road, East Tamaki, Auckland, 2013, New Zealand

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Scope of Registration: Design and manufacture of large, rotational moulded Polyethylene products

Design and manufacture of large, rotational moulded Polyethylene products 24 Feb 2018

Galloway International Ltd

Galloway International Ltd

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08 May 2015

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WWW.AQUATANKS.CO.NZ Visit our showroom: 36 Cryers Rd, East Tamaki

RURAL NEWS // SEPTEMBER 15, 2015

MACHINERY & PRODUCTS 57

Harvesters nicely matched in engine and outputs markd@ruralnews.co.nz

FUEL CONSUMPTION is trimmed in a clutch of new models added to the John Deere 8000 series of self-propelled forage harvesters, which currently runs from 380 to 625hp. The new 8300 series offers 483hp from its Tier 2, 13.5L engine, while the 8700 and 8800 models produce 755 and 832hp respectively, from their Tier2, non-EGR, 19.0L plants. Engineers have

matched engines to outputs to get fuel reductions of up to 6% in maize and 15% in grass – which should make operators happy. A choice of new 9 series grass pick-ups from 3.0 to 4.5m is complemented by a choice of row-independent headers from 8 to 12 rows, supplied by in-house manufacturer Kemper. Headers feature automatic speed matching to length of cut, while feed roller widths tailored to power ensure a wellcompressed layer of

crop is presented to the DuraDrum cutterhead. Dependent on the model’s power, cutterhead width varies between 686 and 856mm and can be specified with 40, 48, 56 or 64 knives depending on the crop being harvested. Other improvements to the series for the new harvest season include

wider feeder housings to suit the larger engines, improvements to the chute assembly – which

include a faster rotational speed and an improved drive system for greater durability.

There is also the option of the ‘Active Fill System” that loads all corners of trucks or trailers

ZERO DEPOSIT

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SUV SALES UP SUV SALES in New Zealand have averaged a 27% annual rise for five years. And the industry predicts SUV’s will account for half of all passenger vehicle sales by 2018; in the year to date the figure is 47%. In 2104, sales of SUV’s hit 37,000 (of 53,000 passenger vehicles) and Steve Kenchington, general manager of Volvo, notes, “in 2014 industry sales for passenger vehicles was up 9% to 90,152 vehicles, but SUV’s showed a gain closer to 30%”. He cites the rise in popularity because of improved fuel efficiency, enhanced safety and the panoramic driving position. “Ten years ago there were only a handful of such vehicles available in NZ, but manufacturers have responded to demand and now we see over 60 different small, medium and large choices available.” Volvo NZ has seen its sales rise in the sector by over 130% per annum.

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MOUNTED MOWER CONDITIONER The NEW Kverneland Taarup mounted mower conditioner is ideal for operation in combination with a front mounted mower conditioner. • 3.2m working width • Nylon semi-swing tine conditioners •

Fully welded cutter bar with double C-profiled housing

ORDER BEFORE 31 OCT & PAY 1/3 ON DELIVERY, 1/3 IN 2016 AND 1/3 IN 2017*. *Deposit, Lending terms, fees and credit conditions apply. Alternative finance packages and structures are also available to approved clients. All prices and finance offers valid only until 31 October 2015.

• Easily adaptable PTO speed. 540 or 1000rpm •

Conditioner rotor speed can be set at either 600 or 900rpm

Contact your local Kverneland dealer for more information www.powerfarming.co.nz

and releases the operator to concentrate on the feed into the front of the machine.

15KB034a - Imported by C B Norwood Distributors Ltd

MARK DANIEL

0800 KUBOTA

RURAL NEWS // SEPTEMBER 15, 2015

58 MACHINERY & PRODUCTS

No-till drill takes Paris prize MARK DANIEL markd@ruralnews.co.nz

THE WINNER of the Machine of the Year 2015 (seeding category) at this years’ Paris Show, the Kuhn Espro 6000 drill, sets out to master the three key elements of successful drilling – speed, accuracy and efficiency. The first is to ensure timeliness and drilling into optimum conditions, the second to ensure fast and even germination and get the plant off to a good start, and the third to ensure high output. But power requirements are moderate and establishment costs low. The Espro takes its design from Kuhn’s existing technology and expertise, and introduces new elements.

tilth creation and the latter even consolidation over the machine’s full width. The wheels are also laid out with an 85mm stagger that reduces bulldozing and maintains soil flow. The Crossflex seed bar has coulter mounted The Espro takes its arms in polyurethane design from Kuhn’s blocks to secure existing technology them to the main frame; this also and expertise, and allows a degree of spring to maintain introduces new a precise sowing elements. depth at high speeds – carried out by double disc coulters as press wheels whose large used in the Kuhn Seedflex diameter reduce rolling resistance, reduce the need system. With a power for power and create an evenly consolidated profile requirement of around 35hp/metre, the 6m which helps promote unit can be pulled with better seed to soil contact. around 200hp, of interest The tyres have an to contractors or larger aggressive tread pattern farmers and a square profile, the All units are ISOBUS former promoting fine At the front, the two rows of 460mm discs chop and incorporate any trash and start the process of creating a tilth. The second element, towards the centre of the machine, is a bank of 900mm rubber

Speed, accuracy and efficiency are all mastered in the new Kuhn drill.

compatible and can be operated by the CCI200

(Isobus) or VT50 (nonisobus) terminals which both offer touch screen and ‘soft key’ operation for intuitive use. Of particular interest to many operators will be the automated headland function that ensures each element is lifted in sequence to allow drilling right up to the mark or headland. In operation the

metering unit stops as the first disc element lifts, so any seed already in the delivery tubes is placed in the ground and not left on the surface. The sequence operates in reverse when entering work. Calibration takes no longer than five minutes; depth control for the front cultivation gang, seeding depth and coulter pressure is set via clips on the

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hydraulic cylinders. Maintenance is taken care of by sealed bearings on the front and seeding elements and pivot points are kept to a minimum. Accessories include front press wheels, wheel track eradicators, preemergence markers and a choice of hydraulic or pneumatic braking systems. www.kuhn.co.nz

AERATORS

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RURAL NEWS // SEPTEMBER 15, 2015

MACHINERY & PRODUCTS 59

Nifty interface links more ISOBUS-compliant machines perhaps the wrapping function on a combi baler unit. markd@ruralnews.co.nz An added benefit of using Tellus with LOOKING AT the diverse range of Kverneland’s own range of machines is machinery parked in the average farmer the connectivity to Geo Control applicaor contractor’s shed it’s easy to forget that tions which allows the company’s sprayeach one probably comes with its own con- ers, spreaders and seeders to be controlled smartly and efficiently. This includes sectrol box. This acts as the link between opera- tion control that automatically switches tor and machine for any adjustments or the implement on and off as it crosses change of function and will have to be headlands, boundaries or already covered installed in or removed from the tractor ground; and variable rate control of inputs from prescribed maps or field sensors; or each time the implement is changed. the AutosetApp that If the user has, can automatically say, a baler, sprayer, The Tellus allows set fertiliser spreadseed drill or large ers to achieve target mower, each will simultaneous display rates with known have a box, and very of two screens. fertiliser products. quickly the right side The GEOseed console of the tractor can look like the control panel for an application takes precision farming to a new level when used with the precision Apollo spacecraft. To overcome this many manufactur- implements produced by the company. ers are introducing more machines with The system ensures seeds are placed in line ISOBUS compatible control systems. This and in relation to each other and across the will enable the machine to be ‘plug and full working width of the machine. Operplay’ connected to the tractor, requiring ators can choose either parallel or triana compatible display terminal. Unfortu- gular patterns, which make for best use of nately, this type of terminal is largely only nutrients, water and sunshine, help with available on high-end, high-spec tractors, soil erosion and allow mechanical weedso a ‘plain Jane’ operator can’t benefit from ing across the seeding direction. To facilitate connection to tractors’ this technology. But now appears a neat solution from integral information such as speed, an the Kverneland Group – a virtual ter- adapter cable can be specified to connect minal called the Isomatch Tellus. Using to the Tellus terminal. Currently the only ISOBUS as the interface between tractor function not supported by the unit is auto and machine, the unit communicates with steering which is more likely to be conany ISOBUS compliant machines and can trolled by a GPS feed to a supplementary steering wheel or valve package. work with all current GPS systems. Unlike many technology suites aimed The Tellus allows simultaneous display of two screens, perhaps one showing GPS at agriculture, access to the Kverneland is and area coverage, while the second might achieved by a one-off payment for instant show the operation of a multi-row planter. access. There is also the ability to take signals from www.powerfarming.co.nz up to four cameras, using them typically @rural_news to watch tank levels, coulter blockages or facebook.com/ruralnews MARK DANIEL

The new virtual terminal communicates with any ISOBUS-compliant machines.

Canterbury Agricultural Park P 03 343 3033 E entry@theshow.co.nz www.theshow.co.nz

Be part of New Zealand’s largest A&P Show, with over 3000 animals on-site and the chance to win your share of $100,000 in prizes. Discounts are available for exhibitors travelling more than 400km to compete. The Canterbury A&P Association is proud to host a Royal A&P Equestrian Event in 2015. LIVESTOCK ENTRIES CLOSE FRIDAY 25 SEPTEMBER EQUESTRIAN ENTRIES CLOSE FRIDAY 18 SEPTEMBER

With over 30 years experience in the kiwifruit industry, Allan Dawson knows the importance of keeping fruit in great condition throughout the entire supply chain. That’s why he has started phasing in Hortbins® on his own orchard, and for his growers at Aongatete Coolstores Ltd. He is seeing improved fruit quality as a result. The Hortbin® is tailor-made to the needs of the New Zealand market, and in particular to the kiwifruit industry. After six years of collaboration between industry participants and Viscount experts, we now have a bin that is the perfect solution to all fruit transportation and storage needs.

Switch to the Viscount Hortbin® to maintain fruit quality throughout the supply chain.

“The plastic Hortbin® does far less damage to the fruit, so you get a better, more sellable product.” Allan Dawson Grower and Managing Director of Aongatete Coolstore Ltd

Call 0800 473 373 | www.hortbin.co.nz

RURAL NEWS // SEPTEMBER 15, 2015

60 MACHINERY & PRODUCTS

Staying true to 4-wheel-drive MARK DANIEL markd@ruralnews.co.nz

WITH AROUND one third of New Zealand roads unsealed, no surprise that drivers like utes, crossovers and SUV’s. On a trip to a bach or a cross country trek to a favourite fishing spot, these vehicles come into their own. But many are just wanabee 4x4’s and really only 2WD; the roughest terrain they will tame is the kerb outside the local school or supermarket. One company that stays true to the 4WD message is Subaru, and its Forester range in particular has a loyal following. Often chosen by professional couples or those with young families, the Forester lives up to the marketing – ‘Forester

can do what other pretender SUV’s can’t’. For the 2015 season it is available for the first time with a combination of a 2.0L diesel engine and the maker’s refined Lineatronic transmission (SLT), surely broadening audience appeal. First impressions are of a refining of the old model, which was a little boxy. Some nice curves now adorn the bonnet and rear hatch, and a good looking front end is accentuated by a strong grille and abundant chrome Stepping into the car is a breeze with large doors and the car sitting higher than normal with a 220 mm ground clearance, giving an indication of purpose. At first, the seats seem a little upright and old-fashioned, but after a few kms they

The new Subaru Forester stays true to the 4WD message.

remain comfortable and supportive. Starting the flat four motor gives little indication of its preference for diesel; tickover is steady and there is no obvious ‘rattle’ as found in other

marques. Injection is via the now familiar common rail and the vehicle pumps out 108kW and a healthy 350Nm torque at 16002400 rpm. While meeting Euro 6 emission standards by means of EGR, DPF

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and variable geometry turbocharger, the engine shows no reduction in get up and go; it eats up the kms with little effort and importantly only sips 5.9L/100km. The SLT drive train has probably set the standard for CVT transmissions, and offers smooth transition through the speeds in auto mode or manual shifting. Subaru engineers have used electronic programming to match engine speeds to road speeds, and in practice the unit switches between the two modes unnoticed to improve the driveability. This is controlled

via the position of the accelerator pedal, so in effect it takes account of the driving style for a more sporty or relaxed change. The test car as driven was also fitted with paddle shifters behind the steering wheel, but this driver preferred to put the vehicle in the D position and let it do its own thing. The full-time 4WD ensured bends were effectively straightened out, and gave the car a neutral feel, which was better than expected; other brands of this genre can be prone to alarming body roll. As expected, when hitting the rough -- muddy

farm tracks on dairy farms in Waikato -- there were no problems and the tyres as fitted coped well on and off road, and didn’t exhibit any road howl, a problem on this type of vehicle if the tread pattern is too aggressive. A noticeable feature was the X-mode AWD assist feature which allowed inclines to be tackled as they should be, particularly on the downslopes, with feet off the pedals and let the car do its own thing. At all times it felt safe, and even on sticky flat going the system allowed power to be transmitted to the right wheels and eliminate wheelspin, so progress was never impeded. As part of the year upgrade, the vehicle now gets the Infotainment screen to control audio, telephone and other key vehicle functions. The accommodation was comfortable and it would appear the engineers have spent time on the car from an acoustic perspective as cabin noise was very low and road noise just about non-existent. Subaru’s recent price cuts of up to $5000 should see this on more shopping lists.

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RURAL NEWS // SEPTEMBER 15, 2015

MACHINERY & PRODUCTS 61 AFRICAN TEST FOR VETERAN MACHINE

Tractor ballast system eases task

SEEING THE the humble original Massey Ferguson MF 35 was built to last it’s no surprise AGCO has launched a new model for the Kenya market. Offering more mechanisation to the African sub-continent, the MF 35 – ‘the people’s tractor’ – should prove a great choice for firsttime owners or those keen to develop existing businesses. Based on the machine sold in the late 1950s and early 60s, the tractor has a 36hp engine, 6 forward and 2 reverse speeds and a rear lift

capacity of 1100kg. Compact size and manoeuvrability make it ideal for the small plots typical in Kenya’s food cultivation, planting, livestock and tea and coffee enterprises. Richard Markwell, vice president and managing director of AGCO, noted “the model will be a great fit for this emerging market, and introduce a generation of farmers to mechanisation who probably never thought they would drive a new tractor out of a showroom”. – Mark Daniel

A Massey 35 working in Kenya.

FORMER FARMING journalist Sandra Taylor has recently been appointed judging coordinator for the Canterbury Ballance Farm Environment Awards. The awards application period is open and Taylor is encouraging farmers to show how important environmental management and enhancement is to the industry. “Farmers take pride in their farm environments and the awards provides an opportunity to benchmark and showcase all the work being done on farms in Canterbury,” she says. Entrants benefit from the experience and knowledge of the award judges and will receive a written report on their farm when the judging ends. Taylor says the awards are more relevant as pressure grows on farmers to show environmental responsibility. “The awards are an opportunity for farmers to seek feedback on their work to maintain and enhance their environment and to demonstrate best-practice management to their peers and the wider community.” Entries for the Canterbury Regional Ballance Farm Environment Awards are open until October 1; the annual awards evening will be held on March 23, 2016.

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RURAL NEWS // SEPTEMBER 15, 2015

62 RURAL TRADER Tunnelhouses

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Our line of Zero Turn Mowers give you plenty to smile about. There’s the renowned durability and reliability that has made BUSH HOG® a legend for over 60 years. They’re perfect for commercial landscapers and homeowners with large lawns and acreage. They’re built to last and easy to maintain. They cut beautifully. And they’re a total blast to drive!

Finlay Sports Scott Robson Designed

KEEP YOUR WORKING DOGS ON THE JOB Up to 6 rechargeable waterproof collar units & remotes • Model SD-1825 – 1.6 Kms range (1 mile) • Model SD-1225 – 1.2 Kms range • Model SD-825 – 800 Metre range All with Tone & Vibration options 24 levels of correction – 3 year warranty

Why Settle For Less

Finlay Escape

Finlay Ignite P: 03 929 2677 W: finlayboats.com E: info@finlayboats.co.nz

GREAT VALUE SD-1825 with 1 collar ................$695.00 SD-1225 with 1 collar ................ $595.00 SD-825 with 1 collar ..................$495.00 Extra collars $375.00 – PRICES INCLUDE GST

RURAL NEWS // SEPTEMBER 15, 2015

RURAL TRADER 63

Culvert Pipes

Phone

0800 625 826

for your nearest stockist

New Zealand’s CHEAPEST Culvert Pipes! FREE joiners supplied on request. ONE STOP WATER SHOP 300mm x 6 metre ................................ $410 400mm x 6 metre ................................ $515 500mm x 6 metre ................................ $690 600mm x 6 metre ................................ $925 800mm x 6 metre .............................. $1399 1000mm x 6 metre ............................ $2175 1200mm x 6 metre ............................ $3475 ALL PRICES INCLUDE G.S.T.

YOUR ADVERT HERE For details contact: JULIE BEECH Ph 09-307 0399

• julieb@ruralnews.co.nz

DOLOMITE

McKee Plastics Mahinui Street, Feilding Ph 06 323 4181 Fax 06 323 4183

sales@mckeeplastics.co.nz | www.mckeeplastics.co.nz

FLY OR LICE PROBLEM?

NZ’s finest BioGro certified Mg fertiliser For a delivered price call... 0800 436 566

CRAIGCO SENSOR JET DEAL TO FLY AND LICE • Cost Effective • Complete Package • Unbeatable pricing • Performance Guaranteed

P 06 835 6863 - www.craigcojetters.com

• The magic eye sheepjetter since 1989 Unique • Quality construction and options self adjusting • Get the contractors choice sides • Direct from the manufacturer • Efficient application and unequalled cost savings

Phone: 0800 80 8570 www.burgessmatting.co.nz

$

595

+GST delivered

For a Quadbar, call me, Stuart Davidson, owner of Quadbar NZ, on 021-182 8115. Email sales@quadbar.co.nz or for more info go to

Phone 07 573 8512 • www.electrodip.com

Check out the latest news and information at www.ruralnews.co.nz

www.quadbar.co.nz

EPOXY FLOOR REPAIR Cretex™ TR Epotread™SL250 TROWEL GRADE EPOXY FILLER

Incredible adhesion Rapid cure Chemical resistant Extremely hard in 6 hours

Rubber Safety Matting • ATV Carrier Mats • Exit/Entry Areas • Calf Trailers • Horse Floats & Trucks • Weigh Platforms • Bale Mats • Comfort Mats for Wet & Dry Areas • Utility Deck Matting

BE SAFE... FIT A QUADBAR The award winning Australian Quadbar is now on over 3000 farms in NZ and Australia and is saving lives and preventing injury daily. It is now made here and is a well proven crush protection device for quad bikes.

LATEST STORIES ON www.ruralnews.co.nz BREAKING NEWS MARKETS & TRENDS COMPETITIONS MANAGEMENT STORIES MACHINERY REVIEWS AND MUCH MORE...

Joiners supplied FREE with culvert pipes

• Lightweight, easy to install • Made from polyethylene

EPOXY SCREED FOR ERODED FLOORS

DON’T BE TOLD YOU DON’T N NEED CRUSH PROTECTIO

Non Toxic, Solvent Free Chemical Resistant Self smoothing, easy to spread Covers eroded & pitted floors

LIFEGUARDS ARE FITTED FOR ONE REASON YOUR LIFE MIGHT DEPEND ON IT

SIMPLE TO APPLY ! ORDERS AND ENQUIRIES Ph:

0800 542 542 WEBSITE:

RegisCoatings.co.nz

REGIS COATINGS

J. Scott from Canterbury says he has had many close shaves on his quad. Fortunately he fitted a LIFEGUARD and wrote to say it has more than paid itself off already.

LIFEGUARD operating in Sweden

Lifeguard is proving it saves lives. It is the only flexible CPD and the safest in the world. You can buy one today for $1,200 +GST Contact us on 0800 782 3763

lifeguard@ag-tech.co.nz

How much is a life worth - it’s a small price to pay

HAY, GRAIN & MEAL TROUGHS 3m Culvert on Skids $530.00 inc 80L on Skids $455.00 inc

Feeder on Skids $545.00 inc

Fence Mount $265.00 inc

3m Culvert on Legs $360.00 inc 160L on Skids $660.00 inc

McKee Plastics, Mahinui Street, Feilding | Phone 0800 625 826 sales@mckeeplastics.co.nz | www.mckeeplastics.co.nz

A national team of locals, connecting people with property

New Zealand’s leading rural real estate company

If you’re in the market to sell your property this spring, get in touch with New Zealand’s leading rural real estate company. From farm to lifestyle to rural residential, our national team of experienced locals are experts in connecting people with property.

Get listed, get sold. Bookings close 22 September. List your property today in New Zealand’s leading rural and lifestyle property magazine: ‘Property Express’.

Contact your local PGG Wrightson Real Estate expert today at pggwre.co.nz

www.pggwre.co.nz

Licensed REAA 2008

Helping grow the country

INDUSTRY LEADING PERFORMANCE RIDER FOCUSED DESIGN 5

6

2

3

1 4

7 8

6

1

SST G2 FRAME FOR A LOWER CENTRE OF GRAVITY AND A BETTER RIDE

5

2 SPEED LIMITING KEYS – INTERMEDIATE (70KM/H) AND PERFORMANCE (NO LIMIT)

2

TRI MODE DYNAMIC POWER STEERING

6

DOUBLE A-ARM AND TTI SUSPENSION

3

POWERED BY ROTAX

7

MECHANICAL ENGINE BRAKING

4

NEW WELDED STEEL CHASSIS

8

VISCO-LOK FOR TRUE 4WD

THE FACTS SAY A LOT / THE RIDE SAYS IT ALL AVAILABLE AT PARTICIPATING DEALERS CALL YOUR LOCAL DEALER TO ARRANGE A TEST DRIVE TODAY

0800 020 074 OR VISIT WWW.CANAMOFFROAD.CO.NZ

Always wear protective gear & approved helmet. Use proper riding techniques to avoid vehicle overturns on hills, rough terrain & in turns. Never operate without proper training, contact BRP for riding skill courses (+612 9355 2700).

SALES EVENT

ENDS OCTOBER 31ST 2015

INDUSTRY LEADING PERFORMANCE BACKED BY INDUSTRY LEADING WARRANTY OUTLANDER 500 DPS

3

YEAR

UNLIMITED KM

WARRANTY

^

$1000 REBATE ON OUTLANDER 500cc AND ABOVE *

AVAILABLE AT PARTICIPATING DEALERS FOR PRICING / TEST RIDE CALL

0800 020 074 OR VIEW OFFERS AT CANAMOFFROAD.COM

* Ready to Ride Event ends 31 October 2015, eligible on MY13/14/15 units only. $1000 rebate on Outlander 500cc and higher models, includes Max platform. ^3 Year Warranty covers MY13/14/15/16 Can-Am Outlander & Renegade ATVs. Always wear protective gear & approved helmet. Use proper riding techniques to avoid vehicle overturns on hills, rough terrain & in turns. Never operate without proper training, contact BRP for riding skill courses (+612 9355 2700).