MANAGEMENT Breeder says marbling the way of the future. PAGE 26
MACHINERY & PRODUCTS Better quality, improved bale shape for stacking. PAGE 37
RURALNEWS
NEWS Dairy women of the year focuses on governance and strategy.
PAGE 14
TO ALL FARMERS, FOR ALL FARMERS
MAY 24, 2016: ISSUE 607
www.ruralnews.co.nz
SFF shareholders in the gun for $millions? DAVID ANDERSON
SILVER FERN Farms’ 6000 farmer shareholders could be in the gun for many millions of dollars in penalty payments and costs if the meat company’s proposed merger with Shanghai Maling is not settled by June 30. The deal that would see Shanghai Maling pay $261 million for a 50% stake in SFF – approved by 82% of farmer shareholders in a vote last October – is under threat of not meeting the June 30 deadline when it is due to go unconditional. It is possible SFF farmer shareholders (currently 100% owners of the meat company) could face penalties and
costs exceeding $40m if the Shanghai Maling proposal does not proceed by the end of June. Ironically, SFF benefited from a similar penalty payout in 2009, when the company’s proposed merger with PGG Wrightson did not proceed. PGG Wrightson defaulted on its
offer to buy a 50% shareholding in SFF for $220m, when it could not come up with the $145m first instalment because of problems financing the deal due to the global financial crisis. PGW ended up having to pay $42m to SFF in penalties and costs incurred by the meat company.
It is now understood that SFF could face similar costs – or even more – if the deal with Shanghai Maling is stymied. SFF chief executive Dean Hamilton told Rural News it was “too early to speculate” whether SFF farmers would be liable for costs should the deal not go through. He cannot say what the cost
AT LEAST 100 farmers, rural professionals and providers turned out last week for a bit of respite on the golf course. It’s the 48th year that Geoff Ingram – now retired from dairy farming – has run the tournament at the Rangitikei Golf Club, near Bulls, Manawatu. Ingram says when he started the tournament it was mainly dairy farmers who played. Now it is a mix of dairy, sheep and beef farmers, and many who service the rural community. The players came from all around the lower North Island and there was no shortage of sponsors to provide prizes, including Rural News. Ingram reckons it’s a great social occasion and an excellent opportunity for farmers to meet others in the agri sector and network. Pictured is ANZ bank’s Louis Botes (left) manning the BBQ, just one of many sponsors offering free kai on the day, along with Vince Cameron of Cervus Equipment, Feilding.
to SFF would be in the event of the deal not going ahead. “It is too early to tell this,” he told Rural News. “It’s likely there will be two angles: first, Shanghai Maling seeking damages for their lost opportunity; secondly, shareholders [seeking compensation] for the lost returns that would have been available from the sizeable $261m investment that would have been made by Shanghai Maling.” However, Hamilton did confirm that if the deal is not unconditional by June 30 it will fall through. The last part of the agreement needed, before it goes unconditional, is Overseas Investment Office (OIO) approval. Hamilton says he’s not sure when the OIO decision will come, but he is hopeful of hearing soon. “There is no strict timetable. We continue to be optimistic of a positive OIO decision this month.” Silver Fern Farms says it has about 6200 ordinary farmer shareholders. A group of about 80 shareholders – headed by ex-pat British Vietnam-based investment banker and Canterbury runholder John Shrimpton – wants the SFF/ Shanghai Maling deal overturned. The group has forced a special meeting of shareholders in its bid to overturn the proposed deal with Shanghai Maling; it says the deal would not be in the best interests of shareholders. That meeting could be held by late TO PAGE 11
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RURAL NEWS // MAY 24, 2016
ISSUE 607
www.ruralnews.co.nz
Cash tap turned off for Landcorp
NEWS 3 BIG DEMAND FOR H&S ADVICE PETER BURKE
NEWS ������������������������������������ 1-16 MARKETS ������������������������� 18-19 AGRIBUSINESS �������������� 20-21 HOUND, EDNA ����������������������� 22 CONTACTS ������������������������������ 22 OPINION ���������������������������� 22-25 MANAGEMENT �������������� 26-29 ANIMAL HEALTH ���������� 30-33 MACHINERY AND PRODUCTS ���������������������� 34-38 RURAL TRADER ������������������� 39
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
SUDESH KISSUN
peterb@ruralnews.co.nz
sudeshk@ruralnews.co.nz
STATE-OWNED FARMER Landcorp will not be getting any new capital to spend on its farms, as the Government imposes on SOEs a more rigorous process for new investment. Finance Minister Bill English told the DairyNZ Farmers Forum in Hamilton that Landcorp, a poor investment, was facing the same problem as other dairy farmers – low milk payout. “It is dealing with a significant drop in earnings against a base of debt which will be a stretch to manage,” English told 800 farmers. “It’s a low returning investment; we have a billion dollars tied up in that organisation and it pays taxpayers very little and in some years nothing, so it’s a poor investment.” Landcorp is bracing for an $8 – $12 million loss this year, largely reflecting recent downward revisions to forecast milk payments. Despite the loss, the Government is committed to retaining Landcorp, part of its $270 billion balance sheet. English says in the past the Government was underequipped to understand the risks, but now has a “corporate treasurer” set of disciplines across the whole balance sheet. “We now have a much more testing process for new investment, so Landcorp, for instance, will not get new capital. They wouldn’t be able to put a proposal to meet our hurdle rate…. there aren’t too many SOEs that can; it’s all getting tighter. “From here on Landcorp will be managed in normal farming style -what you are used to.” And English warned that the Government won’t hesitate to let go companies that come under financial pressure.
Deputy PM Bill English says Landcorp will get no further Government funding.
“The problem is that when an owner commits to keeping [a business] forever, it’s difficult to crank performance out of it, so we have started the practice of letting go companies that come under financial pressure. “When Learning Media and Solid Energy went broke we sold them; at the time we thought it may be controversial but it wasn’t.” “So bankers, suppliers and managers of Government-owned agencies know if things go wrong they are out; that’s the new policy.” English says Landcorp is adapting to the low milk payout in a similar way to
everyone else. “In the past Landcorp pushed itself pretty hard as a leading farming entity and invested fairly heavily to back that up; to be fair that’s where a lot of dairy farmers went as well. Now, when prices are down, Landcorp is adapting quickly; but in the end it is still a Government-owned entity.” English says previously SOEs felt no threat of going out of business because taxpayers would continue to fund them. “Now they’re under threat,” he says. @rural_news
FARMER DEMAND for help on health and safety has tested Beef + Lamb NZ’s capacity to deliver. BLNZ general manager farm, Richard Wakelin, says the industry good body originally planned to run 32 seminars by the end of June, but the demand is prompting it to run at least double this number. Wakelin told Rural News that Richard Wakelin H&S has dominated the farming landscape in the past six months, resulting in a massive demand on BLNZ extension managers for advice. “These seminars have been really well received by farmers because they have helped break down some of the myths about what they need to do to manage their health and safety obligations onfarm,” he says. “I think the focus for farmers has been on meeting regulations -be they health and safety or environment.” Wakelin says from what he’s seen, farmers have never taken a ‘she’ll be right’ approach to H&S. “They are finding out what they need to do differently as opposed to what they normally did, and building confidence about what they have to do onfarm,” he explains. “Take field days: these are now run under a tight health and safety programme, but they are just as enjoyable.” Wakelin says farmer attendance at the BLNZ H&S seminars has been excellent.
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4 NEWS
Pain spreads, paving way for price gain SUDESH KISSUN sudeshk@ruralnews.co.nz
Tim Hunt (right) and former Fonterra director Mark Townshend discuss dairy prices.
THE PAIN New Zealand dairy farmers have endured for two years is now being shared round
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remains in good shape But things are the world. and Europe’s slowing changing: Dutch farmers And the global pain is production is good news are now getting 25-30 expected to lead to a gain for farmers. euro cents/L and Irish in the milk price starting “[Even] if EU farmers 24 euro c/L. later this year, according does slow, it’s the last This has pushed farmers to Rabobank’s global problematic engine…. dairy strategist Tim Hunt. below operating cost, We estimate all seven forcing them to borrow He told 800 farmers export engines will have money to produce milk, at DairyNZ’s Farmers switched off by the end of Hunt says. Forum in Hamilton last this year.” In Australia and week that the milk price The world has about Latin America major has belatedly started two weeks of dairy processors have also falling outside NZ, products in stock; China slashed milk prices. especially in Europe. has been rapidly reducing Hunt points out that “We don’t wish of the seven major export its stock. hardship on anyone but “Demand the situation has is growing started to change; milk “Prices may not incrementally; with prices are falling big,” come back as fast supply stagnant we says Hunt. will work through Fonterra chairman as we hope but we stocks and onto a John Wilson agrees expect recovery pathway to recovery.” Europe’s milk to start kicking in Rabobank expects production is slowing. next NZ production whole milk powder He told Rural News prices to average weekly figures are season.” US$2500/tonne over now showing milk the next 12 months. production lining up “Prices may not come regions, “five engines”– with last year. back as fast as we hope Uruguay, Argentina, Hunt showed a chart but we expect recovery to Brazil Australia and NZ – of milk prices in June start kicking in next NZ have switched off. 2015; NZ was paying its production season.” The US is producing farmers 7% less than the Hunt puts a caveat on more milk but consuming milk price at the peak of his forecast though; if most of it. The EU the global financial crisis EU production does not remains the big problem – the only country to do slow, price recovery will but that’s not all: global so. be delayed. economic growth has Farmers in A possible upside is stalled. Netherlands, Ireland, if Russia were to lift its “The world economy China and US were ban on western dairy will grow and incomes getting 25-50% more for products demand would their milk than during the will rise but it will be rise considerably, pushing [slower].” GFC; Australian farmers prices up quickly. But Hunt says dairy were getting 75% more.
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NEWS 5
Fertiliser price sweetener NIGEL MALTHUS
“As a farmer-owned co-operative, we’d also be delighted if the early June rebate portion has a flow-on effect to help all farming sectors and other rural industries and communities.” about three times faster than the older systems. Primary Industries Minister Nathan Guy officially opened the new plant, welcoming the investment as part of the
drive to double primary sector export value by 2025. He noted that Ravensdown and MPI were partners in the $10 million Pioneering to
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FERTILISER CO-OP Ravensdown has used the opening of a new item of plant in Christchurch to announce two big financial sweeteners to its shareholders. It will pay a $21/tonne advance on farmers’ annual rebate, to be paid from June 7, and has cut the price of urea to $495/t, effective immediately. Ravensdown announced this at the opening of a precision blending tower at its Hornby, Christchurch, facility last week. It’s the first time Ravensdown has, in effect, paid an ‘interim dividend’ – three months early. The remainder of the rebate will be paid at the usual time, around August, after completion of the financial accounts for the year 2015-16. Chief executive Greg Campbell says it is a deliberate strategy to improve financial returns at the co-op while farmers face exceptionally tough times. “It makes sense that, with lamb and dairy prices where they are and dry conditions wreaking havoc with some farms’ growing conditions, we don’t wait to make one payment but split it in two,” he says. “As a farmer-owned
co-operative, we’d also be delighted if the early June rebate portion has a flow-on effect to help all farming sectors and other rural industries and communities.” Meanwhile, the immediate drop in urea and ammonium sulphate fertiliser prices to $495/t puts them below the psychological barrier of $500/t for the first time since 2006, and little more than half what it cost at its 2012 price peak. The precision blending tower, the first in Australasia, is a $6 million upgrade to the co-op’s Hornby plant; it has taken three years to plan and construct. The heart of the system is a 32m high mixing tower supplied by the American company Sackett and Son. Ravensdown gutted part of its existing premises to accommodate the tower, which now protrudes a couple of storeys above the roof as a new landmark on the Hornby skyline. The new machine offers rapid and accurate blending of fertilisers to precise custom formulations according to each farmer’s needs. The mix is fed directly to a waiting delivery truck, minimising handling and dust. With a capacity of 250t/hour and a turnaround time of only six minutes per truck it is
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RURAL NEWS // MAY 24, 2016
6 NEWS: FARMERS' FORUM
DairyNZ levy to take a hit SUDESH KISSUN sudeshk@ruralnews.co.nz
DAIRYNZ is bracing for a $3 million shortfall in levy income this year. The industry-good organisation had budgeted for a 2% increase in milk production, in line with milk processor forecasts, on June 1 last year. However, the low payout forced milk production to drop 3% below last season’s yield. DairyNZ chairman Michael Spaans says based on last year’s total income of $60 million, it was bracing for a $3m shortfall. He told Rural News that DairyNZ has cut back on some projects planned over the next five year but is maintaining a focus on long-term research and science objectives. Spaans says DairyNZ will also dip into a surplus fund built up over the past years. DairyNZ has also shifted some resources on-farm to help farmers survive two consecutive seasons of low milk prices. Spaans says DairyNZ is also tightening its belt and working hard to
deliver more immediate help to “As a board we think farmers. “As a board we think very very carefully and carefully and strategically how strategically how to best to best invest levy money on invest levy money on behalf of farmers. “A key focus for our board behalf of farmers.” is to ensure we are getting the most out of those investments, focus, he adds. while as you will be aware New Challenges include dealing with Zealand has produced a lot more over the previous five years. That growth more extreme market volatility, now appears on hold, so we need to farming within environmental limits, trim our budgets to reflect less levy consumer expectations and how we income coming in during the next few farm responsibly, in particular animal welfare standards. years.” “At the same time, we need to look Farming has become complex but the need to be competitive as well at these as opportunities where we as farm responsibly remains its firm can position ‘NZ dairy’ as a producer
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DairyNZ chair Michael Spaans says the industrygood body is bracing for a $3 million drop in levy income this year.
of high-quality safe dairy products,” says Spaans. “We need a strong story for our customers – but we also know they will judge us on actions, not words. We need to be living our story as an industry – and making it real for people.” He referred to the Sustainable Dairying: Water Accord; a report released earlier this month shows that despite tough seasons, dairy farmers have stepped up and made significant progress on meeting their environmental commitments.
Dairy farmers are leading the way in keeping stock out of waterways and in effluent upgrades, with $1 billion spent over the past five years. Under the Accord, 96% of dairy cattle have been fenced off from waterways on farms, equalling 25,656km of waterways excluded from dairy cattle. Spaans says the Water Accord is just one of a number of ways to measure progress as an industry, in a transparent manner. “It is part of how we are driving continual selfimprovement across the industry.”
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RURAL NEWS // MAY 24, 2016
NEWS: FARMERS' FORUM 7 Dairy can learn from kiwifruit experience
HELP YOURSELF SUDESH KISSUN sudeshk@ruralnews.co.nz
SUDESH KISSUN sudeshk@ruralnews.co.nz
VINE DISEASE (Psa) has had a positive impact on the kiwifruit industry, given where it is today, says Zespri International chief operating office Simon Limmer. Management practices and farm values have soared, accelerating the industry’s progress. “It’s a terrible thing to say; there has been a massive amount of pain during that time; cashflows were lost,” Limmer told the DairyNZ Farmers Forum in Hamilton last week. “But the management practices and value in the industry today is much greater and it has accelerated our progress.” Limmer says the $2 billion industry is on track to double its value within 10 years. He addressed dairy farmers on how the primary industries sector can adapt to adversity, attributing kiwifruit’s bounce-back to cohesion, agility and direction among stakeholders.
The kiwifruit industry shares similarities with the dairy industry: both are heavily focussed on exports and international market vagaries, and both Fonterra and Zespri are 100% farmer-owned co-ops. There are 2500 kiwifruit growers in New Zealand, producing 400,000 tonnes of kiwifruit on 13000ha. Of the 3m tonnes of kiwifruit consumed worldwide each year, China produces and eats 1.5m tonnes. Of the remaining 1.5m tonnes, Zespri accounts for about 30% by volume and 70% by value. Limmer says the relevance of China is very apparent to the kiwifruit industry, just as to the dairy industry. “The growth in production in China is both a massive opportunity and a threat to us,” he says. “China is also our biggest market: 20% of our volumes go there, growing at 30-50% per annum, and it will become our most valuable market in two years.”
Limmer says the kiwifruit industry is a tight-knit community of about 2500 growers; about 80% of kiwifruit is grown in Bay of Plenty. “The community members know each other well and there is cohesion, because of geography, common sense and purpose; this allowed us to recover from the Psa problem.” He described the advent of Psa in late 2010, and continuing through 2011, as “completely from left-field”; these were “pretty dark days” for the industry. “We did not understand the problem; there were no such issues in the past.” The industry and MPI pitched in $25 million each to set up Kiwifruit Vine Health (KVH). A new Psa-resistant Gold G3 variety was introduced and all gold growers agreed to switch. “We needed to shift everybody and we were able to do that; by mid2012 the industry ‘ship’ had turned on a dime.”
KIWIFRUIT GROWERS are throwing their support behind dairy farmers suffering from two successive years of low payout. Farmer support toolkits, prepared for Psa-affected kiwifruit growers, are being used by DairyNZ in a campaign to help dairy farmers. Kiwifruit grower and Seeka Grower Council chairman Ian Greaves says after the Psa outbreak, the focus was to preserve life. He told the DairyNZ Farmers Forum that there were no grower suicides in the kiwifruit industry, after the outbreak of Psa. “The rural sector is over-represented by suicides; it is preventable and we all have a role to play in it,” he says. Greaves says the kiwifruit industry is helping dairy farmers navigate through the downturn in prices. The kiwifruit farmer support tool kits were prepared by the industry and it is not rocket science, he adds. Greaves urged dairy farmers to look after each other but stressed it was important to look after themselves. “No one is alone; you are there for your
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neighbour but first of all, look after yourself. “Your cows won’t be any good without you; your family and your community won’t be any good without you.” Greaves says Psa affected 850 orchards, forcing growers to dig out entire orchards. While capital value of orchards has bounced back, most growers went without income for several years. “It didn’t change to no profit like most dairy farmers are facing this year; we changed to no income and I picked my first crop since Psa last month. “We had to pull out stumps and put in new plants; it’s like forestry, you have to wait a long time. “There has been no income for years from our orchards; yes, capital value is back and the banks are ready to lend us more money but cash flow and income have been devastated.”
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A TEAM effort has won sharemilkers Mark and Jamie Arnold the 2016 New Zealand Share Farmer of the Year award. Accepting their award before 600 industry leaders and farmers in Wellington this month, the Arnolds thanked their support team. Mark started by thanking farm owners Mike and Sherynn Harold and Stuart and Sandra Cordell, Dannevirke; they are 50/50 sharemilkers on a 500-cow farm. It is the couple’s fifth season on the farm, where their great relationship with the farm owners led to the owners partnering with them as they progressed from lower order to 50% sharemilking. “We couldn’t thank you guys enough, especially during this low payout year.” Mark broke down while thanking his father, prompting Jamie to take over the microphone, firstly thanking her husband for getting up at 5am most days to milk the cows. “You put in the hard yards; you are everything and we work as a team.” Jamie says their farm operation is all about people.
“We are surrounded by people who have great influence; our staff make us who we are. We call our farm owners our farm partner and really appreciate their support.” The Arnolds took a huge pay cut when they launched their dairy farming career eight years ago. The former logging crew manager and teacher went on a single herd manager’s salary when they first stepped onto a dairy farm. Chief judge Abby Scott says the Arnolds chose dairy farming as a good lifestyle for their family and they have a long term view of their future in it. The couple demonstrated strengths in finance, business and pasture management, she says. “The level of understanding they demonstrated in their financial presentation to us was very impressive. Their future growth plans are also impressive and they have a clear strategic plan of where they want to be and clear goals.” Thomas Chatfield became the 2016 New Zealand Dairy Manager of the Year and Nicholas Bailey was announced the 2016 New Zealand Dairy Trainee of the Year. The three winners shared prizes worth nearly $170,000.
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RURAL NEWS // MAY 24, 2016
10 NEWS
Trojan ‘Dragon’ aims to stymie An eclectic consortium of political, industry and business interests are seeking to overturn Silver Fern Farms’ (SFF) partnership with Chinese investor Shanghai Maling. Ironically, it appears that only thin Chinese walls seperate the members of this curious group. David Anderson looks into it. AT THE heart of this group is John Shrimpton, a British ex-patriate Canterbury landowner with huge investment interests, based in Vietnam. He is reputedly SFF’s singlebiggest individual shareholder. Shrimpton is a cofounder and director of the Vietnam-based investment fund Dragon Capital Ltd. Founded in 1994, the Virgin Island-domiciled company is said to be the oldest foreign investment firm in Vietnam, with total assets under management worth around $US1.25 billion. Dragon Capital has a presence in Ho Chi Minh City, Hanoi, UK, Bangkok and Hong Kong.
Blair Gallagher ex-MIE executive and co-sponsor with John Shrimpton of special meeting request.
Alongside Shrimpton is Canterbury farmer, SFF shareholder and former Meat Industry Excellence (MIE) group executive
member Blair Gallagher. Shrimpton and Gallagher are leaders of the 80 disaffected SFF shareholders who have forced SFF
to hold a special meeting over the Shanghai Maling deal. The Gallagher/Shrimpton group has mustered the required 5% of shares (thought to be around 6% with the vast majority of these shares held by Shrimpton) to force the special meeting. Investigations have discovered that another former MIE member, and the ginger group’s exchair, Ohakune farmer John McCarthy, is also closely aligned to Shrimpton. McCarthy is a director of Shrimpton’s Glenthorne Station Ltd, his appointment occurring – according to company records – on October 19 last year, just three days
after the SFF shareholders overwhelmingly voted in favour of the Shanghai Maling deal. Shrimpton voted against the proposed SFF/ Shanghai Maling merger and was a vociferous critic of the deal at the company’s annual meeting in Dunedin in December. McCarthy has been a longtime critic of the Shanghai Maling deal and a proponent of MIE’s Newco proposal which aimed to merge SFF with Alliance Group. However, the Newco idea -- and MIE -were effectively killed off when the SFF/Shanghai Maling vote went through last October. Also linked to the Gal-
Ex MIE chair John McCarthy and director of John Shrimpton’s Glenthorne Station Ltd.
lagher/Shrimpton group is NZ First leader Winston Peters. Peters has loudly opposed the deal and has made many statements condemning it and the SFF board and management. He has also lodged complaints with the Financial Markets Authority (FMA) and the Companies Office registries
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integrity and enforcement team relating to the proposed joint venture between Silver Fern Farms and Shanghai Maling. Peters has called on the Overseas Investment Office to suspend its deliberations on the SFF/ Shanghai Maling merger until his complaints are dealt with. Rural News also under-
RURAL NEWS // MAY 24, 2016
NEWS 11
joint venture
SFF SHAREHOLDERS IN THE GUN? FROM PAGE 1
stands that Peters’ taxpayer-funded chief of staff – and ex Federated Farmers media manager – David Broome has been helping the group with its media messaging and communications. An ironic twist is that NZ First has been a harsh critic of foreign ownership of NZ farmland, but there is no record of either Winston Peters or NZ First criticising the Overseas Investment Office approval for Shrimpton to purchase the Canterbury properties Ryton Station for $23.5 million and Glenthorne Station for $16m in 2008-09. Rural News asked a number of questions of NZ First earlier in the month, about its involvement with MIE, Shrimpton and SFF, but the party has refused to answer any question. Despite Peters’ outspoken criticism of the deal – and of SFF’s board and management – neither he nor any NZ First representative has ever met
scheduled meeting with the SFF board in early May. SFF says the invitation to meet with the group remains open. The nub of the Gallagher/Shrimpton argument for demanding the special meeting centres on its claims that the original vote at the special resolution -- the one that overwhelmingly approved the Shanghai Maling deal -was not declared a ‘major transaction’ requiring a minimum of 75% of shareholders votes under SFF’s constitution. However, it is questionable whether the argument will hold up, given that the 82% of the 67% of SFF shareholders who did participate in the original October 2015 vote were in favour of the deal. SFF considers the special meeting requisition a waste of management time and resources. Chairman Rob Hewett says shareholders have already voted overwhelm-
SFF chief executive Dean Hamilton says the company is unsure when the OIO decision will be made, but the company expects this in the next couple of weeks. That is, of course, if the peculiar alignment of Shrimpton/ Gallagher et al does not impact on the deal before then.
June, with shareholders again being asked to approve the deal in a special resolution. Hamilton says the company is waiting on more details from the group before setting a date. “We are currently waiting on supporting information from Mr Shrimpton on the resolution before we can set a date for the meeting,”
he says. “Once we have that information we will determine a date and advise shareholders.” However, SFF chairman Rob Hewett believes any vote on a new resolution is not legally binding. He says the process to approve the partnership, last year, complied with all laws and regulations and the company’s constitution. Meanwhile, NZ First leader Win-
ston Peters has called on the OIO to suspend its deliberation on Shanghai Maling’s application to buy into Silver Fern Farms until complaints his party has lodged over the deal are resolved. NZ First, which has strongly railed against foreign ownership – Chinese in particular -- in New Zealand is voicing complaints remarkably similar to those of the Shrimpton shareholder group.
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Winston Peters and NZ First have refused to answer any questions on its involvement with disaffected SFF shareholders.
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ingly in favour of the deal and the company would be in breach of contract if it pulled out. SFF also says there would be no legal obligation on the company from the result of the special meeting. In the meantime, the deal that will see Shanghai Maling pay $261 million for a 50% stake in SFF will go unconditional on June 30. The last part of the agreement needed, before it can go unconditional, is OIO approval.
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RURAL NEWS // MAY 24, 2016
12 NEWS
Black spots putting lives at risk peterb@ruralnews.co.nz
CELLPHONE BLACK spots and a lack of internet broadband is putting lives at risk in rural communities and compromising the provision of health services, claims a rural health advocate. Dr Joe Scott-Jones, a GP in Opotiki, Bay of Plenty, says the lack of cellphone coverage in rural areas makes it hard for people to access
emergency services. Scott-Jones says a friend who got trapped under a quad couldn’t call for help because of a cellphone black spot. “I was caught recently at Opotiki where the address given was pretty vague. Because it was a mobile black spot, I wasn’t able to ring through to the ambulance communications centre to clarify the address and so spent 25 minutes driving around looking for someone in
distress,” he told Rural News. Scott-Jones is also the chair of the Rural Health Alliance Aotearoa New Zealand (RHANZ), which represents 42 organisations with an interest in rural health. He says people who work in rural areas often work alone, in isolation and in remote areas, and being able to communicate is an important safety issue. Scott-Jones adds that cellphone black spots on state highways
in rural NZ also create unacceptable risks. “Prospective staff members in both health services and other industries are often reluctant to move to rural areas where connectivity standards are sub-standard. This impacts the recruitment and retention of rural health providers into the regions.” Scott-Jones says the three questions people ask when they are moving into rural areas are
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about the schools, health and broadband. If they can’t have good access to broadband they may choose to live somewhere else. “In my case there is so much I can do now with good quality, high-
The three questions people ask when they are moving into rural areas are about the schools, health and broadband. speed broadband in my surgery – which I didn’t have before. I can now further my own education with video streaming lectures and conference downloads. Online courses are now much easier than they used to be and there are services we can offer,
broadband largely for entertainment, whereas in rural areas it is more frequently used for health, education and business. “We applaud the Government’s initiatives to enhance connectivity in rural areas; we just want it sooner.”
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such as getting people to use a tele-health link into the surgery.” Scott-Jones says better broadband will increase his ability reach out into his community and do in-home monitoring. He says in cities people use
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RURAL NEWS // MAY 24, 2016
NEWS 13 Take the money and reinvest – Foreman PAM TIPA pamelat@ruralnews.co.nz
ENTREPRENEUR DIANE Foreman says she does not oppose the selling of dairy farms to Chinese buyers, provided people take that money and reinvest back into New Zealand business. Asked her view about farmers selling farms to the Chinese – during the Dairy Womens Network conference – Foreman says she sold
her ice cream business, New Zealand Natural, to the Chinese and another business to the Americans. “So it’s a really vexed question, but I say this: both times I have sold my businesses I have sold them to multi ‘gazillionaires’. Both of them have grown much, much bigger businesses in NZ. “The spinoff for NZ has been much bigger than if I had retained
them. They have grown the workforce, there are more jobs in NZ; they have grown the brand. “But the important thing is I have got my money back and I have been able to invest in other businesses and do it all over again. “I am not [opposed to] selling a dairy farm to the Chinese because maybe
you can take that money and invest it in something else. What I would hate to see is people selling their business, getting the money and then losing it.” She says people should get good advice to reinvest the money. She was asked if the Chinese businessman who bought New Zealand Natural in June last year
still used NZ milk or was he sourcing it in China? Foreman says he will never use Chinese milk; the big draw for him was the quality of NZ milk. With the Chinese buyer “there would be no way in a million years he would use anything but NZ milk”. “To the extent that he is actually looking at taking raw milk to
China – the flavour, the profile is everything they would want.” People were queuing up to drink and eat her products at her New Zealand Natural outlets in Beijing because the NZ brand says so much. “The Chinese don’t want to take our product and rebrand it as theirs. That is the value in our
raw materials,” she says. What makes high net worth individuals invest in NZ is our geographic isolation: we have a natural moat around us – the rainfall, the grass and the “awesome” dairy industry. “We have a dairy industry that the rest of the world wants.” @rural_news facebook.com/ruralnews
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CALL FOR MORE WOOL LEVY PETER BURKE peterb@ruralnews.co.nz
AN EXTRA half cent will make a huge difference. That’s the view of Renata Apatua, a major wool grower and trustee of the International Campaign for Wool. The campaign is set up to promote wool internationally and is headed by Prince Charles. Other countries participating include UK and Australia. At present, New Zealand wool growers pay a voluntary levy of 0.5c/kg of wool, but Renata Apatua, one of the owners of Ngamatea Station in the central North Island, says he’s going to pay 1.0c/kg and is urging other wool growers to do likewise. On Ngamatea, on average, they shear 50,000 sheep and produce some 170,000kg of greasy wool each year. Currently about $500,000 is raised by the 0.5c voluntary levy, of which two thirds is sent to the international body in UK to promote wool to markets overseas. “In NZ we also have a couple of really smart domestic campaigns, such as wool in schools in which a mobile display shows the attributes of wool and lets young people touch wool and see some of the great products made from this natural fibre,” Apatua explains. “At Ngamatea Station we recently hosted a very successful weekend for young architects and designers to make them aware of what wool has to offer. We have very little money for such projects but we do our best with the little we have.” Apatua says they could do a lot more domestic flag waving, but he reckons it doesn’t help NZ growers because at least 90% of our wool goes offshore. Hawkes Bay wool broker Philippa Wright, who is also a trustee for the Campaign for Wool, says NZ collects $500,000 by way of the levy now, but of that $360,000 goes to the global fund. Now a new problem is looming because of the NZ$ exchange rate, she says. “Because the international levy is based on pounds sterling NZ will have to pay an extra $50,000 next year to meet its obligations to the international campaign. That combined with the drop in sheep numbers means we will have very little – if any – to spend on domestic awareness programmes apart from what we get from sponsors.” Though Wright has not spoken to clients about paying more in line with Renata Apatau’s decision, she believes growers in the past have noted how little they are paying. “It’s not like we are asking for a lot and we are definitely going to be down on the money we can spend at home because of the exchange rate and because of sheep numbers being down. We are getting to the stage when we won’t be able to have any projects at all in the coming year unless we get extra funding,” she says. Wright says the present levy means a woolgrower producing 100 bales of wool is paying about $120 a year to the Campaign for Wool.
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RURAL NEWS // MAY 24, 2016
14 NEWS Dairy Woman of the Year Rebecca Keoghan.
Loving governance PAM TIPA pamelat@ruralnews.co.nz
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Landcorp is in her first term with Westland Milk Products. “That’s a massive challenge for a freshy like me. I need to learn and grow with that, but I would like to go further on the governance side.” She is also on the board of Buller Holdings Ltd. She applauds the call from dairy entrepreneur Diane Foreman for more women on boards and says on the Buller board there is a 50/50 gender split. It is a small board and the diversity works well. Westland has two women: “It’s a start,” she says. She thinks women have wonderful skills to offer and should be in there in relative numbers. But a board should be based on the strengths and skills of the people. Jaws were dropping during the Dairy Woman of the Year Awards event at the list of Keoghan’s commitments. The mother of two is also a Landcorp business manager, NZ Dairy Industry Awards Dairy Manager of the Year Award team leader, OSPRI Northern South Island committee member and Keoghan Farm director with her husband Nathan, to name a few. At Landcorp, Keoghan has overall strategic leadership and direction of five large dairy farms, a dairy support farm and a machinery syndicate at Cape Foulwind and the
Grey Valley. And she plays in two brass bands. Keoghan says she could not do it without family support. On the farm “everybody lives there” – her motherin-law, her husband’s grandmother, sisters and sisters-in-law, one of whom is a nanny. She says she’s organised but so are most working women. She has worked in the dairy industry for 10 years since returning to the family farm from Australia. She had only had deer experience before that; her father owned a deer farm in Invercargill. Her induction into dairy was “a pretty rapid one”. “Since then I have been immersed into it. I definitely love it. “It’s the people for a start: one of my passions is people and development, particularly with Landcorp – developing those people to where they can go. “Dairy is such a technical industry; that is not something I did not know before I joined it. That’s something I really enjoy; it plays to my likes. “It is a wonderful lifestyle for children. We are lucky where we are on our farm. Dairy picks all those cards; it is great.” Keoghan wins a $30,000 place on the 11-month Global Women Breakthrough Leaders Programme sponsored by Fonterra, which she will take up next year.
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RURAL NEWS // MAY 24, 2016
16 NEWS
Keep a strong balance sheet – banker PAM TIPA pamelat@ruralnews.co.nz
MAKE SURE you keep control of your business during times of volatility, says ASB’s general manager rural, Mark Heer. “One thing that rings in my ears from the global financial crisis is a lot of farmers said to me ‘I feel as though I have lost control of my business and if I ever get out of this, I never want to get back to this space again’,” Heer says. “With volatility there could be times when farmers feel they have lost control of their business so they will just have to think about how their balance sheet can give them the control and confidence moving through those cycles.” Volatilty will continue to play out in our dairy industry for the foreseeable future, Heer said in a ‘Riding the Milk Price Roller Coaster’ presentation at the recent Dairy Womens Network conference. Although we have always had volatility, if the degree of volatility
increases we need to make a change to our business, he says. “What you see in industries where there is a lot of volatility is a drive for much stronger balance sheets. When your profit and loss is strong it doesn’t matter so much what your balance sheet looks like because the cash and the profit is driving your business. “But when your profit and loss -- your cash -is not so strong, it is a strong balance sheet that really gives you confidence and control of your business.” Under regulations, any business that borrows over $1 million has to have a risk rate attached to it and the banks have to work out that risk rate. All have different models but essentially they ask five questions: repayment capacity, trading history, equity, personal factors and industry factors. Heer says you need to look at which of these you can control. For example, the components the banks would look at from a personal perspective are
financial management and onfarm performance relative to your peer group. Those two things you would have a lot of control over – how you budget, monitor cashflow and manage the financial performance of your business. You could ask your bankers whether your financial and physical performance was limiting your credit rating and whether you had the opportunity to improve those and therefore improve your credit
stable and growing. rating. “Some of the “In financial figures on where food performance, dairying production forecasts go has a risk grading and if you are in dairying you have that risk grading and you The demand for can’t do anything milk is seen as about it,” he says. But through reasonably stable all the cycles, and growing. one constant in the market is an underlying growing demand for proteins – for are quite inspiring,” Heer says. “Some figures show food. The trend is 2-3% up to 50% more food global growth annually. needing to be produced The demand for milk in the world by about is seen as reasonably
ASB’s general manager rural banking Mark Heer.
A ‘PERFECT STORM’ PEOPLE SAY China will be selfsufficient in milk soon, says Heer. But he did not see China jumping into the supply equation in globally relevant terms any time soon. “I have been up there a few times…. China has 20% of the world population and 7% of the world’s arable land and 5-6% of the world’s fresh water resource but about 50-60% of that is contaminated and can’t be used for animal or human consumption.” In the current milk price cycle there are a few factors in play making it longer than they
expected. Eighteen months to two years ago they would have said by today things would be okay. He says in NZ there was $2 deferred payment through into that first year of low milk price so the cashflow into that year was still reasonably strong. “To a certain degree it hid a market signal that supply globally had to come back. “Compounding that, EU quotas came off and whether or not EU farmers are making money out of milk now.... For years they had been told how much milk they could use so there is this pent up excitement
about having control of their own business. “Also, oil prices are down and there is a strong correlation between oil prices and other prices. “What we’ve seen over the 18 months is a perfect storm of everything that could hide a need to globally reduce supply.” About 735 billion litres are produced annually in the world and NZ produces 20-25 billion litres – about 3% – but we supply about a third of what is traded. When there’s surplus supply, that impacts the traded portion of the market.
2050. We see that playing out as a slow steady demand for our milk.” With volatility the bank doesn’t see demand as a factor in play. “We see that as a reasonably stable trend. Supply… to us is the factor really driving the volatility. “Through periods of very strong price growth such as 2013-14 we saw a global response to those price signals and a big growth in supply. We expect as the current signals flow through to see a drop in supply.” @rural_news facebook.com/ruralnews
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RURAL NEWS // MAY 24, 2016
18 MARKETS & TRENDS MARKET SNAPSHOT Me at
BEEF MARKET TRENDS
No rth Is lan d
S o u th Is lan d
C h an g e c /kg
L as t We e k
C h an g e c /kg
L as t We e k
L amb - PM 16.0kg
n/c
4 .9 8
n/c
4 .7 3
S te e r - P2 300kg
n/c
5 .4 0
+10
5 .2 0
B u ll - M2 300kg
n/c
5 .3 0
n/c
4 .7 5
c /kgCWT
Ve n is o n - AP 60kg
n/c
7 .5 0
n/c
7 .4 5
5yr Ave
Last Year
LAMB PRICES
BEEF PRICES c/kgCWT NI
Change
Last Week
2 Wks A go
Last Year
P 2 Steer - 300kg
n/c
5.40
5.40
5.35
M 2 B ull - 300kg
n/c
5.30
5.30
5.40
P 2 Co w - 230kg
n/c
4.30
4.30
4.40
M Co w - 200kg
n/c
4.20
4.20
4.30
Lo cal Trade - 230kg
n/c
5.30
5.30
5.50
+10
5.20
5.10
5.10
SI
P 2 Steer - 300kg M 2 B ull - 300kg
n/c
4.75
4.75
4.95
P 2 Co w - 230kg
n/c
3.75
3.75
3.85
M Co w - 200kg
n/c
3.65
3.65
3.75
Lo cal Trade - 230kg
n/c
5.25
5.25
5.15
No rth Island 16.0kg M Lamb Price $6.5
LAMB MARKET TRENDS
This Year
$5.5
M utto n SI Lamb
M utto n
Last Week
2 Wks A go
Last Year
n/c
4.96
4.96
5.11
P M - 16.0kg
n/c
4.98
4.98
5.13
P X - 19.0kg
n/c
5.00
5.00
5.15
P H - 22.0kg
n/c
5.01
5.01
5.16
M X1 - 21kg
n/c
2.40
2.40
3.15
YM - 13.5kg
n/c
4.73
4.73
4.76
P M - 16.0kg
n/c
4.73
4.73
4.78
P X - 19.0kg
n/c
4.73
4.73
4.80
P H - 22.0kg
n/c
4.73
4.73
4.81
n/c
2.28
2.28
2.75
M X1- 21kg
Slaughter
Slaughter
$6.0
Change
c/kgCWT NI Lamb YM - 13.5kg
N o rth Island Weekly Lamb Kill
400k
N o rth Island Weekly Cattle Kill
60k
300k
$5.0
40k
$4.5
Feb-13
Mar-13
Apr-13
May-13
Jun-13
200k
Jul-13 100k
20k
S o uth Island 16.0kg M Lamb Price
5yr Ave
5yr Ave
$6.0
k Feb-13 Mar-13
$5.5 $5.0
5yr Ave
$4.0 Feb-13
Mar-13
Last Year
Apr-13
May-13
This Year
Jun-13
Jul-13
Apr-13
k
This Year
May-13
Jun-13
Feb
Mar
Jul-13
Last Year
Apr
May
This Year
Jun
Jul
S o uth Island Weekly Lamb Kill 400k
S o uth Island Weekly Cattle Kill
40k
$4.5
Last Year
300k 200k
30k
100k
20k
k
Feb
Mar
Apr
May
Jun
Jul
10k
No rth Island 300kg Bull Price
5yr Ave
k Feb-13 Mar-13
$6.0
Last Year
Apr-13 May-13
This Year
Jun-13
Export Market Demand
Jul-13
Change
Last Week
2 Wks A go
Last Year
5yr A ve
UK Leg £/lb
n/c
1.65
1.65
1.80
1.93
NZ$ /kg
+5
7.55
7.50
7.99
8.11
$5.5
Export Market Demand
$5.0
Change
5yr Ave
$4.5
Last Year This Year
$4.0 Feb-13
$6.0
Mar-13
Apr-13
May-13
Jun-13
Jul-13
S o uth Island 300kg Steer Price
2 Wks A go
Last Year
5yr A ve
95CL US$ /lb
-5
2.12
2.17
2.42
2.17
NZ$ /kg
- 11
6.87
6.98
7.17
5.94
D e m and Indicator - US 95CL Beef
$3.00
$5.5
Last Week
D e m and Indicator - UK Leg Price £2.50 £2.00 £1.50
Last Year
£1.00 Feb-13 Mar-13 Apr-13 May-13
$2.50
This Year
Jun-13
Jul-13
$5.0
$2.00
$4.5
5yr Ave
$4.0
Last Year
$3.5 Feb-13
This Year
Mar-13
Apr-13
May-13
Jun-13
Last Year
Procurement Indicator
This Year
$1.50 Feb-13 Mar-13 Apr-13 May-13
Jun-13
Jul-13
Procurement Indicator $8.0
5yr Ave Last Year This Year
$7.5 $7.0
$8.0
2Wks A go
3 Wks A go
Last Year
% Returned NI
+1%
77.1%
75.9%
75.97%
75.5%
% Returned SI
+1%
69.1%
68.1%
69.7%
69.7%
85%
Apr-13
May-13
Jun-13
S o uth Island 60kg Stag Price
Jul-13 5yr Ave
5yr A ve
Apr-20
May-20
Jun-20
$6.0 Feb-13
- 0 .5 %
67.5%
68.0%
65.7%
70.9%
% Returned SI
0 .9 %
62.9%
62.0%
61.3%
67.5%
P r o curement Indicator - North I. 70% 60% 50% Feb-13 Mar-13
Jul-20
50% Feb-13 Mar-13
May-13
Jun-13
Jul-13
60% Feb-20
Jul-13
This Year
Apr-13 May-13
Jun-13
Jul-13
This Year
Venison Prices Change
Last Week
2 Wks A go
Last Year
5yr A ve
NI Stag - 60kg
n/c
7.50
7.50
6.40
6.75
SI Stag - 60kg
n/c
7.45
7.45
6.25
6.81
65% Apr-13
Jun-13
60% Last Year
Last Year
70% Mar-13
This Year
Apr-13 May-13
P r o curement Indicator - South I.
75%
$6.5
% Returned NI
70%
65% Feb-20 Mar-20
80% $7.0
5yr A ve
P r o curement Indicator - South I.
70%
This Year
Last Year
This Year
Last Year
$7.5
3 Wks A go
Last Year Last Year
75% Mar-13
2Wks A go
P r o curement Indicator - North I.
80%
$6.5 $6.0 Feb-13
Change
No rth Island 60kg S tag Price
Change
Jul-13
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Beef & venison prices are reported as gross (before normal levies & charges are deducted). Lamb & mutton prices are reported nett (after levies & charges are deducted).
RURAL NEWS // MAY 24, 2016
MARKETS & TRENDS 19 NEWS BEEF: Processors are on the hunt for
prime cattle across both islands at present. Numbers are relatively difficult to come by, especially in the South Island, which when coupled with decent overseas demand should work to underpin slaughter prices in the coming months. There is a contrast in the cow kill. Production in the North Island is strong, with the dry though the east coast helping to draw more numbers out. However, there are no reports of any backlogs. The South Island kill has come back, as it appears many dairy farmers have culled earlier than usual. This has recently led to a large jump in slaughter prices being paid. In the month to March 13 prices have risen 35c/kg. Store cattle are well still well sought after. Those that would normally graze dairy cattle are continuing to place upwards pressure on the market.
INTERNATIONAL BEEF: Nerves
within the US beef market have worked against NZ exporters in recent weeks. Volumes of imported cow meat offered to the US have exceeded the expectations of importers, leading to some stepping out of the market until prices settle. Imported beef is also facing increased competition from domestic product. A larger variety of domestically produced beef is being ground down, increasing the supply of
PRICE WATCH meat in direct competition with beef from NZ. Many buyers have their requirements for the short-term covered, which will add further downwards pressure to the market. This has also led to a reluctance from buyers to secure product too far in advance.
WOOL PRICE WATCH Change
12-May
05-May
Coarse Xbred
-9
5.60
5.69
4.78
Coarse Xbred
Fine Xbred
-5
5.77
5.82
5.26
Fine Xbred
Lamb
-19
6.15
6.34
6.25
Lamb
-
-
-
-
Indicators in NZ$
Mid Micron
SHEEP: Procurement competition is
working in farmers favour through the South Island. Slaughter rates have eased, leading to some processors opening up their wallets to help secure numbers. Sourcing numbers is less of an issue through the North Island which has, keeping schedules in check. The store market through the North Island has very much been at the whim of the weather lately. There is an air of caution around the dry in some areas, while a lack of frosts has meant facial eczema is also keeping buyers wary. A lack of rain is also starting to impact on returns in the South Island. While Southland and Mid-Canterbury buyers are buoying the market, most other areas have more looking to offload stock than buy in.
INTERNATIONAL
SHEEP:
Overseas lamb markets have firmed over the past few weeks. Concerns surrounding the supply of lamb through the coming months of the
Overseas Wool Price Indicators Last Year
Wool Indicator Trends
850 CXI
FXI
Indicators in US$/kg
Mid Micron
Last Year
-10
3.82
3.91
4.05
-7
3.94
4.00
4.61
-17
4.19
4.36
5.08
-
-
-
-
CXI
550
750
05-May
Wool Indicator Trends
600
LI
12-May
Change
FXI
LI
500
650
450
550
400
450 May
Jul
Sep
Nov
Jan
Mar
Jul
Sep
Nov
Jan
Mar
Coarse Xbred Indictor in US$
Coarse Xbred Indicator
650
350 May
450
600
400
550 Last Year This Year
500 450
Oct
Dec
Feb
Apr
Jun
Aug
season have brought more buyers to the forefront in China, the UK, and the US. Returns on both forequarters and flaps have finally strengthened after struggling for the majority of the season. While supply may be lifting per
350 300
Last Year This Year
Oct
Dec
Feb
Apr
Jun
Aug
kilogram returns, there is a reluctance to lift prices to the point where existing customers have to be turned away, as this may damage relationships in the longer-term.
KingSt13394_RN_B
stay a step ahead
RURAL NEWS // MAY 24, 2016
20 AGRIBUSINESS
Zespri shows how it is done in China THREE OR four years ago Zespri found the business environment in China challenging, but this year it expects $500 million increased growth in business there, says chief operating officer Simon Limmer. And for the first time Zespri will this year become an importer of its own product in China on a much bigger scale than any other New Zealand company, Limmer claims. The kiwifruit company is tripling staff in China to about 90, pushing into the western area and investing heavily in the brand. “China is changing: the complexity is becoming clearer; that is a function
of the time we have spent there,” Limmer says. “But the Chinese are definitely on a pathway of cutting down on corruption and [increasing] simplicity in business processes; and the New Zealand free trade agreement (FTA) has impacted heavily and is paying dividends: we have no duty into China this year for the first time. “We have deeper relationships, we have stronger contacts with the Chinese Government and we know what the expectations are; we have changed our whole approach – pouring more resources into that market and making sure we understand it. We are
also shaping it.” Until recently, the product to China was sold by the time it arrived at Tauranga wharf: Zespri had nothing more to do with it other than marketing. This year Zespri becomes the importer of record. “Now we own the fruit, we transfer it across the border, we move it through customs, we do the documentation, we do the inventory in market; it gives us much greater responsibility and accountability for quality,” Limmer says. “But most importantly it gives us agility: we are now able to respond to market more quickly. We
can make price changes, make allocation changes more quickly and really take control of our own destination. We have a closer relationship with retail; ultimately we capture more value for growers.” Limmer says this is a significant shift: not many NZ businesses have gone this far in China. “Fonterra does a little bit on certain products, but not across their whole range is my understanding.” Zespri is still selling to former distributors but with natural evolution they will know more about the point of sale and support it with the
right marketing. Social media and new ways of branding are important in China. Zespri has spent about $40 million this year on branding in China alone. Advertising is expensive in China and across $1.6 billion people you don’t quite know what you are getting for your spending, Limmer says. “We are over-investing in China but the growth potential is so significant it is worth it.” Zespri traditionally has relied on Japan and Europe, but a significant shift has been made to China with 17% of sales there last year. South East Asia and Korea are
now big markets and the Middle East and North America are growing. India offers opportunities but also chalZespri’s Simon Limmer says the lenges in the company expects a $500m increase supply chain. in Chinese business this year. Twenty-seven a challenging place to do of Zespri’s 53 business. markets have been iden“That’s why the tified as one million trays story is so compelplus. ling for China; there is The strategy to 2020 such a strong opportusees a spreading of the nity in China and other exposure away from Asian markets. That is a any one market or curreally good position for rency. The euro has been growers to be in, to have a “basket case” compared their exposure to market to the NZ dollar for a long time and Europe has been spread.”
GOLD TRANSFORMS NZ’S KIWIFRUIT INDUSTRY PAM TIPA pamelat@ruralnews.co.nz
GOLD KIWIFRUIT has transformed the industry in the last 15 years, says Zespri chief operating officer Simon Limmer. Zespri’s overall sales are projected to reach $3.3billion in 2020; they are sitting at $1.9b now for the season ended March 31 (2015-16). Results should show $1.7b out of New Zealand production and about $2b from non-NZ. New PVR (plant variety rights) Greens and a red variety will be transformational, Limmer says. Investment in new varieties has been made
for 12-15 years and will lead the way for kiwifruit. The Green market has been relatively stable, from about 50m trays in 2000 to a projected 80m in 2020. All the growth is in the new Gold variety, G3, known as SunGold in the marketplace. By 2020 there will be a projected 180m trays; this season the forecast is 140m trays but the final figure could be more. “Gold really did transform our world a few years ago,” he says. “The introduction of new varieties is attracting new consumers… they are complementary in having the Green Gold story. When people prepare a fruit bowl they want to have a bouquet
of colours.” G3 also has agronomic benefits typically yielding about 15,000 trays/ha versus the previous Psa-susceptible Gold variety Hort16a which yielded about 11,000 trays/ha and Green Hayward which yielded about 8000 trays/ ha a few years ago but now has higher yields. “The newer varieties are more productive and probably cheaper to grow. They tend to have benefits significant both in the market and the orchard,” Limmer says. It takes 10-15 years to develop a new variety. Zespri released three new varieties in 2010: Gold 3, Gold 9 and Green 14. G9 didn’t make it; it wasn’t keeping
in the storage chain. Thankfully G3 was, he says. A PVR Green variety has enormous opportunities. Ninety five percent of kiwifruit consumed globally is the Hayward green variety. “It is a bit of a Clydesdale: it grows pretty successfully, but it is relatively variable from a quality perspective. You get good tasting Hayward, you get quite average tasting Hayward. Unfortunately what many world consumers get is pretty poor.” Limmer says Zespri has high standards, but much of the Hayward around the world compromises the category.
Together, we’ll help grow a brighter future
“If we can get a consistently high tasting Green product which is yielding really well, and position it in the market successfully then that has enormous opportunity for us; we are working hard on that.” He says the new variety will probably be a complement for Hayward, which does really well at the back end of the season. Products which “open up the season” would be valuable. Reds present opportunities. They are already in the market particularly in China. “Zespri hasn’t commercialised the reds; we have a number of reds in our programme; we are working to get a red into… production.”
RURAL NEWS // MAY 24, 2016
AGRIBUSINESS 21
Kiwifruit orchard values soar pamelat@ruralnews.co.nz
ORCHARD VALUES are going through the roof compared even with prePsa levels, says Zespri chief operating officer Simon Limmer. He says the vine killing disease Psa impacted growers’ balance sheets significantly, but the banks were flexible in working through Psa issues with growers. “Most growers were able to survive Psa and see their orchard values not only recover but increase significantly. Land values in kiwifruit country are through the roof, particularly the Gold but even the Green. “The kiwifruit industry is attracting a lot of attention in the primary sector compared to what’s going on with other primary industries.” Orchard gate returns are about $65,000/ha on average across the whole industry. That’s compared to about
$30,000 in the 2005-06 period. Limmer adds that Gold3 has been a big driver of the shift, so has greater productivity overall, particularly in Green. The Green on average is forecast to maintain on average $50,000/ha; the cost per hectare has risen significantly in the last few years from about $20,000 to $25,000 $30,000/ha. Psa forced growers to be more vigilant and more proactive in protecting their crops. But productivity has also grown. Gold is delivering $100,000 - $130,000/ha in yield and market price. On-orchard costs are $30,000 - $35,000/ha and productivity is higher. The value of a Gold orchard is said to be about $600,000/ha (from about $450,000/ ha pre Psa) and Green is about $400,000/ha (from about $250,000/ ha). @rural_news facebook.com/ruralnews
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Kiwifruit orchard values are going through the roof on the back of a revamped sector.
RURAL NEWS // FEBRUARY 17, 2016
22 OPINION EDITORIAL
EDNA
A great story to tell IT IS hard to disagree with New Zealand’s special agricultural trade envoy Mike Petersen when he says NZ desperately needs to develop a new primary sector story to help sell its products to the world. As Petersen told last week’s Dairy NZ Farmer Forum, we need a coherent NZ story and it’s desperately needed to take out into the world, particularly because at least 90% of what our primary sector produces locally is sold offshore. No one has a better understanding of how NZ agriculture and its products are portrayed on the international scene than Mike Petersen. He has attended most of the country’s trade negotiations in the past few years, ensuring the primary sector’s perspective is included. But who is going to take the leadership role in bringing the sector together to develop the NZ Inc. story? Let’s not allow the creation of an inane postcard claim like ‘100% Pure’. That has become a rod with which the agri-sector has been constantly beaten by environmental fundamentalists, competitors and others. NZ’s story must be pan industry-led and adopted. Petersen suggests that NZ Trade & Enterprise, MPI and the primary sector come together to promote a story of integrity and trust in our export systems and pull together what we are already doing. As he pointed out, currently all the pieces – such as environmental credentials and traceability – are in different places and showcased in different ways, rather than in one coherent picture. As Lewis Road Creamery founder Peter Cullinane also told the farmers’ forum, “There’s an opportunity to do something clever that no other country is doing.” It is past time a collective NZ primary sector story was developed; we have a great story to tell and the world needs to hear it. A combined, pan-industry approach is the only way forward.
SOMETHING ON YOUR MIND? GOT SOMETHING on your mind about the latest issues affecting our farming industry? Put your pen to paper or your fingers to your keyboard, and let our readers know what you think. Contact us by either post or email. Don’t forget to put your name and address. Note: Letters may be edited. post to: Letter to the Editor PO Box 331100 Takapuna , Auckland 0740. or Email: editor@ruralnews.co.nz
RURAL NEWS HEAD OFFICE POSTAL ADDRESS: PO Box 331100, Takapuna, Auckland 0740 PUBLISHER: Brian Hight .............................................. Ph 09 307 0399 GENERAL MANAGER: Adam Fricker ........................................... Ph 09 913 9632 CONSULTING EDITOR: David Anderson .......................................Ph 09 307 0399 davida@ruralnews.co.nz
“We forgot the decoys and the ammo, but not the whiskey!”
THE HOUND
Want to share your opinion or gossip with the Hound? Send your emails to: hound@ruralnews.co.nz
Quack, quack
Interesting
Oh dear
MIE IOU?
IT SEEMS the past chairman and current member of Meat Industry Excellence (MIE), John McCarthy, has taken umbrage at the Hound’s suggestion in the May 3 issue of a certain amount of Chinese-bashing by those opposed to the SFF/Shanghai Maling deal. However, your old mate reckons if it walks like a duck (Peking perhaps?) and talks like a duck, then it is most likely a duck. For starters, this old mutt has never issued a media release asking, “Will our killing sheets be in Mandarin?”, but McCarthy has. Nor has your canine crusader ever heard a peep of discontent from McCarthy – or from his political buddy Winston Peters – against British ex-pats buying farms or businesses in NZ.
YOUR OLD mate was intrigued as to why McCarthy would be so upset about the Hound’s comment, which basically pertained to Messrs Shrimpton and Peters. That was until his kennel’s tip line began ringing hot about possible collusion between MIE and its associates NZ First and the elusive John Shrimpton. Meanwhile, a director of Shrimpton’s Glenthorne Station Ltd is one John Pearcy McCarthy – the same John P McCarthy who is donkey deep involved with MIE and has very close ties to one Winston Raymond Peters, leader of NZ First. It seems McCarthy was appointed a director of Glenthorne Station Ltd on October 19, 2015 – just days after SFF shareholders overwhelmingly voted in support of the Shanghai Maling proposal.
MEANTIME, the Hound would never insinuate that Mr McCarthy is a racist or a xenophobe. But when his statements are re-publicised by the NZ National Front – an outfit that claims to be pro-white and opposed to white genocide – it does not look good. McCarthy’s comments about why the Chinese investment in SFF was such a bad thing were heralded by commentators on the National Front’s website in September last year. One commentator named ‘Viking Division’ was so taken with McCarthy’s view he opined (excuse the spelling, language and content): “At last some farmers with brains. Well done to the Ohakune guy; his blood’s worth bottling. Tell the chinks to f%$k off and go play a game of ‘blind mans bluff’ and i’ll happily supply ‘made in china’ shoelaces for the blindfolds” (sic). Yeah, nah, not a good look at all.
MEANWHILE, YOUR canine crusader has learned just possibly why MIE was so keen to secure more cash from Beef + Lamb NZ levy funds earlier this year. Unfortunately for MIE, its plea for more farmer money was voted down heavily by levy-paying farmers at BLNZ’s annual meeting in March. The scuttlebutt is that some of the consultants who helped the cash-strapped MIE put together its ‘Pathways’ report on the red meat sector last year – now gathering dust in dumpsters all around the country – may not have been fully paid. Apparently, there is a fair bit of discontent in some consultancy circles about MIE’s cheque ‘being in the mail’ so to speak. However, the Hound finds these rumours hard to believe about the good folks at MIE and is positive there is no truth to such claims.
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RURAL NEWS // MAY 24, 2016
OPINION 23 LETTER TO THE EDITOR WERE SFF’S POOR PREDICTIONS DELIBERATE? SILVER FERN Farms recently predicted a disappointing interim result, “materially below last year’s performance”. So it is a surprise that in the weekly meat schedule SFF has not moved to lower payments to farmers and make the most of what is left of the 2015-16 processing season to address the looming disappointment and make better the end-of-year result.
Given the support SFF had for its proposed joint venture with Shanghai Maling, could they not bank on the loyalty of suppliers and shareholders to support such a move in the interests of a viable and profitable cooperative? Distilled down, the business of managing a meat processing (or any) company is to be cash profitable, particularly one that is a cooperative, because the difficulty
of shareholders stumping up capital is well documented. Blaming lower market prices and unpredictable procurement patterns as though they were new issues facing the meat industry seems naïve, if all other companies are in the same boat in the same market. Maybe SFF is trying to portray itself as being dependent on the success of the Shanghai Maling
50:50 joint venture bid before the Overseas Investment Office (OIO). But it needs to be careful over its flipflopping projections of profitability; for example, in the information packs for the joint venture compared to the results stated in the 2015 annual report, the forecasts predicted in the 2015 report and now the latest in this saga is undermining their credibility as reliable, consistent and capable governors and managers. Is it only
cynics like me who question their timing with the OIO determination imminent? They should deservedly come under the scrutiny of shareholders, OIO, industry and business commentators if they lack basic skills to address the interim prediction and correct the way SFF is headed under their watch. Hugh Gardyne Southland
ag twits Rural News’ irreverent and hypothetical look at what’s happening in the farming world Top Bleats view all @jmccarthymie: I’m neither a xenophobe nor a racist. For instance, I wholeheartedly approve of British-expats buying swaths of NZ farmland and Vietnam-based businessmen owning shares in a NZ meat co-op. But the last thing we need is those bloody Chinese buying into Silver Fern. #differentkindofyellow @winstonfirstandlast: NZ First wants to stop the Chinese takeover of Silver Fern Farms. We don’t farm, we don’t own SFF shares, we don’t send any livestock to SFF plants, and we don’t have anything to do with the company – but it is still our business. #winstonknowsbest @jshrimptonkiwibloke: It’s unbelievable that the board of SFF would allow a Chinesebased company to take over ‘our’ meat co-op. That kind of predatory activity is only carried out by corporate raiders based in countries like Vietnam; we don’t want that kind of thing happening in ‘our’ country. #notourway #okforme @robhewettsff: So now we have to call a meeting which will achieve nothing and not change a thing; 80 shareholders don’t like what the other 6000 voted for last year. What a waste of time and sausage rolls. #tailwaggingthedog @drbillfeds: Graham, I hear you are doing a fantastic job of keeping our staff overheads down. At this rate, and if we get more resignations, we will not have any salaries to pay this year. #leanandmean @gsmithfeds@drbillfeds: Thanks Mr President. Despite the rumours, there is no meltdown going on here, just a little bit of pruning and I like to do my pruning with a chainsaw from the ground up. #cuttothebone @jwilsonfonterra: Our governance review is recommending two fewer directors; that’s an idea neither my board nor I like very much. #turkeysdonotvoteforchristmas @colinarmer: Hi @jwilsonfonterra not a bad start. Perhaps one of the two fewer directors could be you. #xmasiscoming @tspieringsfonterra: Don’t you jussht love our newsh ‘431’ ads. But I think it sshhhhhould be ‘494’ – for the $4.94 million I took home in annual salary lasssht year. #atleastsomeofusarecreamingit @littleandylabour: Labour strongly supports free trade, that’s why we are voting against the TPP – the biggest free trade agreement in the history of world – because we believe in freely trading our ethics for cheap political points. #7%andfalling @johnkeypm: Secret trusts: it’s no secret that I trust Nicky Hager about as far as I could throw Kim Dotcom or an Elvis impersonator from Tauranga (I thought Winston was in Northland now). I’d better call my lawyer; on second thoughts I’d better not. #panamapapers #donotcallmeken
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RURAL NEWS // MAY 24, 2016
24 OPINION
Between a rock and a hard place FONTERRA SHAREHOLDERS are between a rock and a hard place. The dilemma is in governance and neither of the current possibilities appears to be without concerns. The status quo is a board of 13 directors. Ex-directors Greg Gent and Colin Armer have suggested a board that size is too large to be efficient. The proposed new selection/ nomination panel process involves pre-
selection of candidates for consideration. If a candidate isn’t considered suitable by the ‘independent selection panel’, he or she won’t be approved for consideration by the nomination committee. If the nomination committee doesn’t approve candidates ‘selected’, another reduction in the field of candidates will occur. The field for consideration by farmer shareholders has the potential for substantial reduction
between candidates putting themselves forward and actually being considered for election. The selection panel is to comprise three ‘independent’ people: one appointed by the current board, one by the Shareholders’ Council and the two appointees will then choose a third member. This process is a challenge in itself: it is difficult to imagine how anybody who knows enough about the dairy industry to be able to
screen candidates will be ‘independent’. Of course, criteria have been put forward to assist in the screening process, but the list appears to indicate ‘business as usual’. ‘Understanding and empathy with the co-op’ is a case in point.
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‘Proven track record of creating value for shareholders’ is another. Current board members will be passed through the process whether shareholders think they are adding value or not. This selection and nomination process is to be applied to independent directors as well as shareholder candidates, thereby removing some of the difference in perspective that is possible at the moment. Who will challenge the board on strategy and initiatives if everybody is selected on the basis of the same criteria? The independent directors were supposed to bring fresh thinking and new knowledge to the board, but if they have been through the same screening system as shareholder candidates, similarities will emerge. Some attempt to ensure diversity has been proposed using a skills matrix but, again, the skills appear to be what the board considers it has and lacks. External consultants might be used to assess the skills, but how will they know what they are looking for? Farmer shareholders have sufficient brains to be able to assess candidates. They run complex businesses, and most are concerned about the
way the co-op is being managed. Giving them a choice of status quo or pre-selection is a classic child management technique of restricted options. Do you choose to do your homework at the table or in the window seat? The homework gets done whichever is chosen.
experience that reducing the number of people will allow full engagement and contribution. Current board members have warned that reducing the size of the board will increase the individual workload and so there will be fewer roadshows and
‘Understanding and empathy with the co-op’ is a case in point. ‘Proven track record of creating value for shareholders’ is another. If shareholders choose the status quo, Fonterra can state correctly that farmers were given a choice but didn’t take it; yet at the last annual meeting 54% of shareholders voted for a change in the board structure. The proposed alternative is complex, has the potential to filter out candidates, and removes the ‘meet the candidate’ road show. It is not clear that the resulting system will create a board with the skills, experience and knowledge Fonterra needs. Greg Gent and Colin Armer have made the point that at 13 board members, factions are possible. They’ve suggested from
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opportunities for direct contact. But they have also said that being a member of more than one board is good for information and networking. Being between a rock and a hard place means that the two options are unsatisfactory. A child might take the less bad option without realising the restrictions, but shareholders have noticed; they can and should make their feelings clear. The whole country needs and wants an improvement in Fonterra governance. Farmer shareholders deserve it. • 11Jacqueline Rowarth is professor of agribusiness, The University of Waikato. She is also a Fonterra shareholder.
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RURAL NEWS // MAY 24, 2016
OPINION 25
We’re all in this together WITH JUNE now just around the corner it is hard to believe we are almost halfway through the year. There is no doubt that 2016 has been a demanding year for most rural contractors and the agricultural sector in general. The continuing lull in dairy prices and problematic weather in different parts of the country have only accentuated these challenges. A mild autumn and plenty of grass in some regions means the milking season may extend for a quite a period, giving these farmers a chance to make up for the lower payout with higher production. However even then it will be tough going for most. Obviously in more straitened times farmers will be looking to cut
things right in the past, then the new laws won’t much impact you or your business. These changes to health and safety regulations and the challenging financial environment mean it has never been a better time for rural
contractors to be part of RCNZ’s registered contractor scheme. If you are not already a member, I suggest you take a look at the RCNZ website www. ruralcontractors.org.nz and see the benefits of being a registered contractor or just being a
member of our organisation. Finally, a quick reminder that this year’s Rural Contractors NZ annual conference will be held next month in Bay of Islands from June 27-30. If you have never attended a national con-
ference before, I can highly recommend it. It provides a fantastic opportunity to meet up with contractors from all around the country, learn new stuff and have a bit of fun as well. Registration forms and information on the
after each other -- including paying our bills. My advice to all contractors – especially when taking on new clients – is that they clearly outline their terms of trade including payment details. This ensures everyone is on the same page about terms of payment expectations. Meanwhile, with the new health and safety rules now in place it is essential that all contractors and their staff are well up-to-speed on these responsibilities. Our asso-
annual conference are up on the RCNZ website or email: office@ruralcontractors.org.nz for all the details. • Wellsford-based agricultural contractor Steve Levet is the president of the Rural Contractors New Zealand (RCNZ).
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ciation has done a lot of work in ensuring members have all the information they need on health and safety. The key thing to remember is that everyone involved in a job – the contractor, staff and farmer – has responsibilities for health and safety. Good communication is the key – ensuring everyone involved in a job knows of any risks, how to mitigate these risks and that everybody gets home safely. As I said in last month’s column, everyone now has a role to play in health and safety. But if you have been doing
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RURAL NEWS // MAY 24, 2016
26 MANAGEMENT
Marbling the way to go – breeder payments they can have an animal worth $300 pamelat@ruralnews.co.nz more than another animal because of a superior THE NEW Zealand beef carcase. industry has got “in a “They are way ahead of bit of a hole” because it NZ. In fact, we don’t really doesn’t pay for carcase have marbling as such yet. differentiation, says John It is possible to put it in Bayly of Waitangi Angus. genetically; it is a process With his wife Joss, and it takes time,” Bayly Bayly breeds the herd told Rural News. brand at his Waitangi Each year Bayly travels farm adjoining the to the US to look at topTreaty grounds, which is end American cattle and known for its high quality pedigree bulls, heifers and bring semen back to use in their programmes. The cows. The bull calves are Waitangi herd comprises sold through two on-site 400 performance auctions a year. recorded breeding females He travels to the US that breed and rear a calf every year and has been Visit us at Fieldays opposite Gate 1 as a 2-year-old and a calf doing it for eight or nine each year after that. In the years. He says in the US last few years they have with their good pattern of PAM TIPA
had an AI programme to diversify their bloodlines and access a wider genetic base. “The big thing we are missing out on in NZ is a proper grid system that pays carcases for what they are,” he told the Beef + Lamb NZ annual meeting during a tour of his farm. Everywhere except NZ meat is valued by the marbling, he says. “Silver Fern farms spend $1 million finding that out and to me it is a no-brainer. You just have to see what is happening everywhere else in the world; it’s happening in Australia as well,” he says. “The marbling is
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what is perceived as being valuable in prime beef.” Bayly says he has been trying to put that into his herd as well as the shorter gestation, low birthweight and high growth rate. “I believe we can find that in the States; they’ve got a huge cattle population compared to ours. They have probably got a lot more coordinated research in what they are doing there.” Bayly says he has been to the the Zoetis HQ in Kalamazoo, Michigan and a building there holds a 1000 scientists in one place all working on things to do with agriculture, vaccines and the like. “That’s the level of research going on there; there is a lot of be learnt from there and the trends are pretty much the same.” He says people say American cattle are grain-fed so they are not relevant to NZ. “I ask as many people as I can in the States, ‘what is the relationship between pasture based and grainfed or feedlots?’ They all tell me the correlation is very strong,” he says. “We find most of our Angus genetics up in the northern part of the States – in Montana and places like that. We think it is tough farming in New Zealand? I tell you over there it is a damn sight tougher. “Those cows are performing in harsh conditions. They might bring them in to calve for a few days, but then they will put them out in minus 40°C frosts. They can’t calve them outside because the calves will stick to the ground
John and Joss Bayly with BLNZ chair James Parsons (left).
sometimes. “You can get excited and say it’s not relevant to us in NZ but I totally disagree. “When grain prices get high they shorten the time of grain feeding so that they are more out in pasture, buyers take them and grow them on and they might only be on the feedlots for a short time.” Bayly believes there is huge relevance and a lot to be picked up, but he is not advocating we should go all that way. “They have some structural issues and that’s why you need to go to the States to see the cattle themselves; try to see them in the environment they come from. We believe we have made some serious ground by introducing those genetics into the cattle.” But the Baylys are
definitely excited by some of the genetics they have coming through from the US. An example is a bull called Tombstone: his mother would probably be the most prolific grandmother and his sire is known as the “sire of sires” in the US. He is ranked top bull at a test station called Midland in Montana, which tests over 600 bulls from all over the US. “They are just starting to get into using electronics [to monitor] how much water and feed they are eating; and he was also shown to be very highly feed-efficient in the amount of kilograms of growth compared to what he actually ate. “I thought that was really interesting and something we need to start getting into in NZ. It is quite relevant and it is becoming a very big part
of the US beef industry -getting efficient cattle.” Bayly says they’ve got good progeny coming through from Tombstone. But they also have good homebred sires and use some Australian genetics as well. “We have used a number of Australian bulls and we have been pretty happy with them too. They all add something.” But there is always a compromise. “We have a commercial business; we need to sell bulls,” he says. “I can tell people they are getting better carcase genetics until I am blue in the face, but if they are not happy with the bull they have in front of them they won’t buy them,” he says. “We have been slowly moving and trying to take our clients with us down that path. I believe we are making headway.”
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28 MANAGEMENT
Meet the measuring man Craig Bowyer spends most of his days driving up and down paddocks on a quad. It’s an occupation that earns him a living and helps enhance the incomes of the farmers whose paddocks he drives over every fortnight. Peter Burke reports on Eketahuna’s measuring man.
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IT’S WINDY and wet just out of Eketahuna as Craig Bowyer arrives at the dairy farm run by Rickie Morrison. On Bowyer’s ute is a C-Dax pasture meter and on the trailer his quad. He’s there to measure the pasture on Morrison’s farm. After bowing out as both a sheep and beef and dairy farmer, Bowyer’s taken on a task seemingly too time consuming for many farmers. Between August and December he will measure some 7000ha of pasture for his 22 clients, mostly, but not exclusively, on dairy farms in Wairarapa and
Manawatu. From January until the following July he’ll measure about 4000ha. He’ll measure each farm every fortnight, which provides the best cost benefit. “People know they need to be measuring grass and they get quite excited about doing this in the first couple of years, but then it becomes another job and a chore so that’s when I come in. They get all the results they need in the form of a computer printout within 15 minutes -- that’s a feed wedge and kilograms of dry matter per hectare,” he explains. “Then it’s
up to them if they want to discuss further what’s happening on the farm. Some, like Rickie, use this data with a Farmax feed programme to try to optimise things.” Bowyer can measure about 50ha per hour, depending on the nature of the farm and in particular the number of gates. “I charge by the hectare and it varies as to the size of the farm. Larger farms get charged less and smaller ones more. That’s just a time thing because on smaller farms you are opening and shutting a lot of gates, whereas on bigger farms you are just
able to go for it,” he says. While much of the work is on dairy farms, Bowyer is building up a solid base of sheep and beef farmers, especially finishers keen to get maximum utilisation of their pasture. The C-Dax pasture meter is not new technology, but it’s good and farmers continue to buy it. However, as Bowyer points out, it’s not used as frequently as it might be by some farmers. He says the equipment has to be handled properly. “It’s still delicate gear and you can’t just take off and think you are going to
Craig Bowyer measures pasture on an Eketahuna farm.
measure 100ha in an hour because you will break it,” he says. Bowyer says by closely monitoring pasture growth farmers are able to set more appropriate stocking rates and plan ahead better. And there are other benefits. “I am in the farmer’s paddocks more often than they are. If the farm is big and the manager is not physically getting in the cows he may not go into parts of the farm for two or three months,” he explains. “I often see things on a farm which may need attention. I
also spend quite a bit of time talking about various things such as fertiliser application. It’s a good combination of data and observation.” Bowyer says farmers who measure their farms and back that up with growing good grass will get an increase in production. Knowing exactly what feed is on hand helps a farmer more wisely manage stock and he will
not get caught with feed gaps. Bowyer believes the key is commitment to the process. “It takes time. The farmer has to be into it and use the information properly. You are not going to see the benefits in the first or second visit, but over time your pastures improve. If you want to get the true benefit out if it, you have to be into it.”
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MANAGEMENT 29
Stream work wins unlikely praise tion is critical over the spring and summer periods when low flows in the Waikuku Stream require consented water users to carefully manage how much water they take. By collectively sharing their water allocation, the group has found a solution that is more sustainable for both the environment and their farming operations. Long-serving North Canterbury Fish & Game councillor Peter Robinson says the award winners are providing an important example for all Canterbury. “What the group does sounds simple, but it’s really quite ingenious. Instead of focusing on what resources they don’t have, these farmers have pooled their water resources and worked together,” Robinson explains. The group has also extended its commitment to the environment with significant stream-side restoration and enhancement, planting thousands of trees and shrubs and fencing up to the Waikuku’s springhead source. Scott Pearson is impressed. “The results speak for themselves. The salmon are now back in the Waikuku, with healthy numbers returning to spawn. All the more special is that this wonderful sight is now uncommon in lowland Canterbury streams,” he says. Bill Wilson puts the group’s success down to a simple philosophy. “We work on the simple principle that it is better to work with people than against them. As a result, over the years we have been blessed with help from many people. “In fact, one of the first was in the 1980s when professor Wally Clarke was involved with Fish & Game. We took him on a tour of our various projects and he proved to be a great mentor for our group. This tour exercise has been repeated many times with great effect,” says Wilson. Wilson also pays tribute to his group’s mem-
bers, a good bunch of North Canterbury farmers with a great attitude and team spirit. North Canterbury Fish & Game is now organising a field trip in the coming spring to show the meth-
ods used by the group to other farmers. Interested farmers are invited to contact North Canterbury Fish & Game to register their interest in attending. @rural_news facebook.com/ruralnews
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BILL WILSON smiles as he looks down on the Waikuku Stream: below him is a superb example of a restored lowland Canterbury stream. The efforts of Wilson and his fellow farmers have recently been recognised with an environmental award from Fish & Game. The Waikuku Water Management Group is the first recipient of North Canterbury Fish & Game’s ‘Working with Nature Award’ for outstanding efforts to improve local freshwater habitats. The award recognises what Fish & Game describes as the dedicated efforts of a number of farmers to protect and give back to the Waikuku Stream. North Canterbury Fish & Game’s environmental advisor Scott Pearson says the new award acknowledges a growing number of farmers who have taken their own steps to improve or protect streams and rivers near their properties. “Fish & Game has been critical of the plight of many Canterbury streams and rivers, but at the same time we actively seek workable solutions to the problem. The awards are a great opportunity to celebrate some local success stories,” Pearson says. The group is delighted with the award. Its leader Bill Wilson says they are especially pleased to be the inaugural winners. “The group felt it was time to pay back something to our waterways which have been such a benefit to their families. Our members have focused on 100% compliance with their effluent management, and getting recognition for their water management over several decades is hugely satisfying. “We are delighted with Fish & Game’s decision to institute the award to recognise suitable groups for their performance in helping the environment.” The group won the prize for devising an innovative way to decide who most needs the limited water available at any given time. This alloca-
Farmer Bill Wilson admires the much improved Waikuku stream, one of two streams for which the Waikuku Water Management Group has won an Environmental Award from Fish & Game.
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RURAL NEWS // MAY 24, 2016
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FE will hit lambing percentages PETER BURKE peterb@ruralnews.co.nz
EXPECT LAMBING percentages to be lower in many regions this year as the effects of a severe outbreak of facial eczema (FE) hit home. Totally Vets consultant Trevor Cook says the outbreak of FE is one of the worst to hit parts of the central North Island. In some areas the losses from clinical FE are “horrendous” and some spore counts are the highest ever recorded. “The consequence is that we will see lower pregnancy scannings because [FE] was still very prevalent around mating time for the ewes,” Cook
told Rural News. “The whole challenge has had a huge effect on ewe ovulation rates and in the longer term ewes with liver damage when pregnancy comes will struggle to maintain condition. “We expect to see more ewes dropping off as pregnancy progresses because they aren’t up to delivering the needs of a pregnancy. The losses from the purely clinical cases will always understate the numbers with liver damage.” Cook is surprised that some so-called FE-tolerant sheep have developed clinical signs of the disease. “What’s always
intrigued me is that areas that have never had FE before have it now. It seems that fungus has been there all the time; it’s not like someone walked it in on their boots,” he says. Cook believes the reason for the massive outbreak is the consistently high minimum temperatures rather than hot weather combined with rain. Another Vet, Martin Walshe, of Hunterville, near Taihape, says in areas around him which have been dry FE has not been a problem. But farms that got rain in early March have been hit. Walshe says once a sheep’s liver has been
BLNZ MONITORS SPORE COUNTS BEEF + Lamb NZ has been closely monitoring FE spore counts and posting updates on its website. BLNZ general manager farm, Richard Wakelin, says this is one of the most widespread outbreaks of FE he’s ever seen. It has been a hot topic at the industry good body’s field days. Like others, he believes the weather is problem. But on the East Coast of the North Island there were different circumstances. “Many farmers had prepared for a dry El Nino weather pattern and destocked, but that didn’t come so there was a lot of old material in the base of
the grass that harbours the spores,” Wakelin says. “Then as the pressure came on, in the latter part of the season, when they were grazing harder, animals were grazing in those spore affected areas.” He says the recent outbreak revived memories of Gladys Reid, credited with discovering how zinc sulphate protected animals’ livers from FE. In the 1970s and 80s Reid was denounced for her idea, but finally her cure was accepted by the scientific community. Wakelin believes the Gladys Reid saga is one of the great stories in NZ farming.
Vet Trevor Cook says the FE outbreak is one of the worst to hit the central North Island.
damaged by FE all a farmer can do is try to maintain the animal’s health and minimise stress on the liver. “If a ewe has liver problems, especially around lambing time, it’s a bit like trying to pump water in summer; if you haven’t got enough water you have a problem,” he explains. “A sheep’s liver is much the same: if it’s been eroded to the point that it can’t do what it needs to do for twin lambs, then the ewe has a problem.” And in some farming environments sheep may be getting FE but not showing clinical signs. However, over a number of years insidious damage
will be occurring in the liver of a sheep and suddenly it will fall over because it has chronic FE. Depending on how badly individual sheep are affected, some may be able to perform adequately in the future, he says. “We are telling our farmers to identify all the sheep that are poor and in light condition and have clinical FE at this stage. Over the next six weeks, if they recover well it’s probably worth taking a punt on them. However, if they don’t recover or they end up in poor condition with twins, then they should be culled at scanning time,” Walshe says.
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RURAL NEWS // MAY 24, 2016
32 ANIMAL HEALTH
Animal welfare changes have people talking MPI SAYS about 500 people have attended six public meetings across the country, to express views on proposed changes to animal welfare regulations. MPI is seeking feedback on some 85 proposed animal welfare regulations and took to the road for five weeks of consultation. The proposals set out tougher rules on animal management and would put new fines and infringements in place. Director of biosecurity and animal welfare Julie Collins says MPI is pleased with the amount of feedback it has received to date. “We’ve received 190 submissions, so far, and have had great discussions with a large number
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of people with a range of views on the proposals.” Submission closed on May 19. Collins says given the large number of proposals out for consultation, the discussions at public meetings covered a wide range of animals and topics; however some common subject themes were noted. “[Predominantly] conversations were about regulations for bobby calf welfare; tail docking of dogs, sheep and cattle; stock transport; the consultation process; and infringements and offences. “None of the proposals are final and after submissions close MPI will consider all the feedback received at public meet-
ings and as written submissions, to ensure we have the best rules possible.” The proposed regulations relate to live animal exports, the care of and conduct towards animals, and surgical and painful procedures. MPI says the new rules are to keep pace with changing scientific knowledge and good practice. “The new rules mean we can effectively deal with all levels of offending, not just the most severe. Severe offences are currently dealt with under the act.” The proposals also clarify what is considered a surgical or painful procedure, and how these procedures should be performed to better protect
animals. Examples of what may change under the proposed regulations: Dogs travelling on the back of vehicles on public roads must be secured so they don’t fall off For dehorning cattle, sheep or goats a farmer would be required to administer pain relief If a dog shows signs of heat distress from being left in a hot vehicle, its keeper will be liable for a fine De-clawing cats and de-barking dogs will be prohibited except for therapeutic purposes To transport injured stock a veterinary certificate would be required Hot branding any animal would be prohibited.
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SHAREMILKERS AND dairy herd owners are being advised to get their livestock sorted for the upcoming ‘gypsy day’ move. OSPRI says with gypsy day fast approaching the organisation is able to help out dairy farmers with all the necessary information and requirements on NAIT and TBfree. It says to ensure that moving dairy farmers meet their NAIT and TBfree obligations they need to take the following steps when moving or selling stock this gypsy day: ■■ Update contact details with OSPRI and record stock
movements Check the TB status and testing requirements of the area into which they are moving cattle ■■ Correctly complete an animal status declaration (ASD) form when shifting stock and not accept any animals onto a farm if they’re not accompanied by a correctly filled-out ASD form ■■ Make sure that any stock shifting from a movement control area have a pre-movement TB test within 60 days. “We know gypsy day is a busy time of year, but it is important that farm■■
ers understand and meet their NAIT and TBfree obligations,” says OSPRI chief executive Michelle Edge. NAIT data is used to trace the movements of potentially infected stock, on and off farm, so that the source of the disease can be identified and special TB testing done to contain the infection. “As long as your contact details and location are up to date, OSPRI can call when your herd is due for a TB test. Updating your details is quick and easy and is crucial for keeping TB under control,” Edge adds.
RURAL NEWS // MAY 24, 2016
ANIMAL HEALTH 33
Animal welfare rules focus on bobby calves
Water-based MAGNUM® Nil meat witholding. Nil Lice.
PETER BURKE peterb@ruralnews.co.nz
PROPOSED NEW animal welfare regulations are a great step forward, says the New Zealand Veterinary Association dairy cattle branch president, Dr Jenny Weston. The Massey University lecturer says in particular the regulations on bobby calf welfare are a great improvement and will facilitate enforcement and education of farmers. The Ministry for Primary Industries is holding public meetings nationwide to inform farmers and other animal owners. Submissions on the proposed regulations close on May 19. Weston says revelations last year of the terrible treatment of bobby calves, and the resulting public outcry, will have jolted farmers into realising they must take animal welfare seriously and comply with the rules. “I am confident there is now widespread acceptance that the animal welfare regulations are for a reason,” Weston says. “Most farmers understand that if you look after animals you have a more profitable business because happy healthy cows yield far more production. But we know that either through ignorance or not caring a few animal owners don’t hold up their end of the bargain.” Weston says complying farmers should also keep an eye on their neighbours to make sure they are doing the same. There is no reason for farmers to be afraid of the public. Farmers at a public consultation meeting in Palmerston North got something of a surprise as MPI staff outlined the new regulations, including key issues for farmers, notably pain relief before dehorning cattle, sheep or goats, and stipulating who can do this – a veterinarian. The rules also cover stock transport issues and stipulate that dogs must be secured for travelling on the back of vehicles so they don’t fall off. For dairy farmers a major focus is on the handling of bobby calves, an issue raised at the Palmerston North meeting, though there was no outpouring of anger against farmers. Calls were made for farmers to be required to send bobby calves to the ‘nearest facility’. And there was a call for stock trucks to have wire mesh covers to prevent
Nil worries.
DEALING WITH BOBBY CALVES WHAT MAY change under the proposed regulations: ■■ The time between last feed and slaughter of young calves would be reduced from 30 to 24 hours ■■ Adequate shelter required for young calves ■■ Shorter maximum truck journey times for young calves ■■ A ban on shipping animals across Cook Strait ■■ Young calves must be fit enough for transport, eg at least four days old, with dry navels and hard hooves ■■ Young calves must be handled properly. Following consultation, some regulations may be imposed for the 2016 calving season. But for practical reasons some changes may need to be transitioned over time.
stock from climbing out or putting their heads over the top. James Stewart,Federated Farmers Manawatu/Rangitikei provincial president, and a dairy farmer, says the Palmerston North meeting discussed dogs more than cows. He had expected some flak because of the publicity on bobby calves last year, but this didn’t happen at the meeting. “But we can’t get complacent about how we treat animals, especially bobby calves. The whole social media thing means we’re being watched more closely and there will be more pressure on us. [The new rules set] minimum standards so we should be getting over that line anyway. Farmers doing their job properly shouldn’t have much to worry about, but there are some regulations, such as tail twisting, that I need to get clarification on.” Stewart says farmers should be ahead of the game and realise that consumers are watching them; if
consumers see something bad happening there is a risk of more and tighter regulations. Farmers need to work with MPI to make sure the regulations are fair and practical to implement. His view is echoed by Julie Collins, director of biosecurity and animal welfare policy for MPI, who facilitated the meeting in Palmerston North. She says it’s important that people study the regulations and submit their concerns or suggestions to improve what’s been proposed. “We need to get the regulations and the balance right, to make sure they work on the ground for the people responsible for animals. I encourage people to look at the regulations and give us feedback so we can strengthen our rules on animal welfare.” Collins says after the publicity on the bobby calves incident, MPI and industry representatives together looked at the issues,
including time between feeds and transport. “We have a bobby calf group that was set up after the incident, including MPI, the NZ Veterinary Council, the transport industry, DairyNZ and the Meat Industry Association. They are looking at a whole lot of other issues, to improve welfare for bobby calves and to cooperate and get it out to farmers.” Collins says animal product exports are worth $23 billion to NZ and any animal welfare issues could put these exports at risk. Consumers now want to know that animals are treated well. MPI says the new rules are to keep pace with changing scientific knowledge and good practice. It says most animal welfare offending is low-medium severity and the proposed regulations seek to set specific penalties – including fines – for low-medium animal welfare offences to deal more effectively with this type of offending.
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RURAL NEWS // MAY 24, 2016
34 MACHINERY & PRODUCTS
Chequebooks out for takeovers at home and away The red of Robertson Manufacturing will merge with the green of Hustler to see a new powerhouse in NZ livestock feeding machinery.
MARK DANIEL markd@ruralnews.co.nz
HUSTLER EQUIPMENT, the Hastings maker of bale feeding, bedding and handling equipment, has bought Robertson Manufacturing, Hinds, Canterbury, maker of silage wagons, the Supercomby feedout machine and precision spreading equipment. Hustler started manufacturing in 1961, Robertson in 1977. With nearly 100 years between them in designing and making innovative machinery it seems the two companies are a good fit. Hustler told Rural News that while some
branding changes may follow, the Robertson designs and attention to detail will remain and customers will get ‘seamless’ advice and support. Meanwhile, on the global scene, cashrich Japanese giant
Kubota is to buy the planter and seed drill manufacturer Great Plains Manufacturing, of Salina, Kansas. In the US$430 million deal, slated for July, Kubota will acquire all five divisions of Great Plains, said to be the
largest family-owned farm equipment maker in the US. It has eight factories in the US and one in UK; staff number 1400. “This acquisition is part of the long term strategic vision for our expansion, with the aim of providing high
quality products and comprehensive solutions for customers,” said Masato Yoshikawa, president and chief executive of Kubota Tractor Corporation. Great Plains and Kubota had common values, he said, “in that we were both founded four decades ago and both companies have a reputation for quality and
engineering excellence”. Great Plains founder and chairman Roy Applequist will remain to help guide operations. “My plan is to play a significant part in helping Great Plains to become a vital part of the Kubota family,” he said. The companies already have a long term relationship: the Great Plains Land Pride brand
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RURAL NEWS // MAY 24, 2016
MACHINERY & PRODUCTS 35
Two into one will go MARK DANIEL markd@ruralnews.co.nz
GRASSLAND SPECIALIST Kuhn has introduced a fully mounted, twin rotor hay or silage rake – a first for the company – in a range of raking widths from 5.40 to 14.70m. The GA 6501P centre-delivery Gyrorake offers variable working widths from 5.40 to 6.40m, and forms a windrow 1-2m wide by using 2.65m diameter rotors with ten tine
arms, each fitted with three double tines. The double curved tine arms work to deliver an airy, well-structured and regular row for following operations, allow high speeds and have height adjustment via a single crank mechanism. Each rotor is mounted on pivoting, large diameter triple wheels assemblies for good ground following and combine with the Kuhn 3D articulation system for stability and
clean raking in all terrains. A pivoting headstock allows tight turns in small paddocks, and the integrated rotor lift hydraulics allow good swath clearance on headlands and fold the machine to 2.5m for transport. Machines run at 540 rpm and require one double-acting hydraulic connection. Standard-fit lighting and indicator clusters ensure safety on the road. www.kuhn.co.nz
130 HP TRACTOR & LOADER
Safe on slopes, built to last A RECENTLY introduced double bale feeder by McIntosh builds on the company’s reputation for heavy duty products maintaining best practice design, engineering and production. The chassis consists of two box sections that run through the cradle to increase overall strength; this layout also reduces the overall loading height of the machine and lowers the centre of gravity, promoting safe use on hillsides or sloping ground. A 315mm conveyor overhang and tyres kept close to the chassis prevent dispensed feed from being run over and contaminated. The wheel equipment can be set to 1620, 1720 or 1940mm spacing for safety on difficult terrain or to accommodate larger tyres. As part of the package, machines are supplied with 11.5 x 15.3 tyres as opposed to the more typical 10.5. This reduces rolling resistance and makes the machines easier to tow in poor conditions. Bales are lifted onto the cradle by an over-dimensioned lifting arm strong enough to carry a second bale to the feeding area. The loading arm has twin lifting rams which gently lower the bale onto the unrolling cradle and help prevent damage to the feeder bars. The unrolling cradle uses a 12,000lb rated chain that is zinc plated, fully guided and driven by 8-tooth sprockets – rather than the more typical 6-tooth set-up favoured by competitors. The hydraulic motor is rated to 3000psi and uses a 1.25 inch shaft and oversized keyway, said to better resist repetitive changes in rotation. Unloading slats are made from 8mm steel with integral teeth to promote bale rotation by increasing the contact area; and in the cradle, aggression pins restrict bale movement to encourage the teeth to pull the bale apart. On the underside, the main driveshaft is shielded to prevent ‘wrapping’, the plate steel floor is galvanised for a long life, and a swivel drawbar is supplied as standard equipment. The machine has a rubbish bin and a checker-plated platform on the drawbar A-frame to allow the user to safely remove film and net wrap. www.mcintosh.net.nz
$104,900
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Check the specs *Standard CLAAS Financial Services terms, conditions and fees apply. 2.9% pa available with 40% deposit and 36 monthly repayments in arrears. Offer valid until 30/06/2016 or while stocks last.
ARION 430 CIS & CLAAS FL100 loader delivers you more: 130 horsepower 144 L/min hydraulic flow including steering pump Common rail fuel injection for a more lively engine feel 16x16 fully robotised transmission – change through all 16 gears without using the clutch pedal
4 speed PTO for better fuel economy Electronic loader joystick (worth $4000 alone) 2780 mm wheel base, 5200 kg weight 4 rear DA remotes
We encourage our customers to investigate specs fully and we’re confident that CLAAS comes out on top.
A better business decision.
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RURAL NEWS // MAY 24, 2016
36 MACHINERY & PRODUCTS SPECIAL PRICE
$ 13,750+GST
RRP $15,325 +GST
RANCHER DELUXE ON TERMINATOR BASE INCLUDES
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SPECIAL PRICE
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RRP $17,340 +GS
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MARK DANIEL markd@ruralnews.co.nz
SERIES 2 ROCK SPIKE SPECIAL INCLUDES
• 4 bank valve hydraulic top link & angle adjustment • Rock Spike kitset incudes 90mm Spike and Rock Spike cap • 4.25m 150uc beam • 270 kg hammer • Adjustable legs
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Fetch me a beer while I seed the bottom paddock
RRP $27,540 +GST
$ 23,850+GST Terminator Beam TT Terminator Base INCLUDES • Terminator Base 900mm Side Shift • 4.25m (150UC) Beam • 270kg Hammer • 6 Bank Valve • Hydraulic Hinge • 250mm Mast Shift
HOOPER CUTTING EDGE CULTIVATION
SPECIAL PRICE
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AS AUDI, BMW, Ford and even Google talk about driverless cars in the next five years, a North Dakota company is marketing the idea for agriculture: autonomous tractors are coming to a paddock near you. The Autonomous Tractor Corporation recently demonstrated such a tractor, which combines diesel electric drive and a navigation and safety system called AutoDrive. But are we ready for such technology? Over the last decade we have learned to trust autosteer systems which allow much greater accuracy, in some cases down to 2cm. John Deere has perfected an automated headland turn with its iTec Pro system; so what’s to stop you taking the tractor to the paddock, putting it to work, then going home for breakfast? Apparently not much. The Autonomous Tractor Corp demonstration machine was based on a JD 8760 nicknamed ‘Big Jim’, converted to run two dieselengines, two generators and individual wheel motors – allowing precise control at each corner.
The AutoDrive systems can be offered in four stages, to introduce users to the technology gradually and see them move up to succeeding levels of automation until they reach stage 4 and full autonomy. At stage 1, the operator manually drives the modified diesel-electric tractor, before moving to stage 2 – advanced GPS guidance with two RTK transponders set up in the paddock and a further two units mounted on top of the tractor. These four navigation devices
are said to ensure greater accuracy than current units which usually use a mobile unit on the tractor and another mobile RTK unit or a fixed transmitter. The system still has the potential for dropouts however, as the GPS can be affected by solar disruptions. At stage 3 a gyro-mounted laser steers the tractor but still uses the onboard GPS to confirm its course. At stage 4 a radio system is installed over the top of the GPS RTK and laser systems, giving full
autonomy without the need for a driver, other than an initial ‘teachin’ where the operator trains the artificial intelligence for a particular task. Whether the industry is ready for it now, who knows? But it could be just the thing in a Rugby World Cup year, when grass needs sowing and the ABs are playing the Springboks on the big screen. Fetch me another beer and a pie. @rural_news facebook.com/ruralnews
2500 $ 32,900+GST Offset Disc harrow
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RURAL NEWS // MAY 24, 2016
MACHINERY & PRODUCTS 37
Shapely, secure bales with minimum power MARK DANIEL markd@ruralnews.co.nz
THE KUHN Bio integrated baler and wrapper has been around for some years, gathering a loyal band of users, given that it can produce a well-shaped and securely wrapped package with minimum power. Unlike other combi units that rely on the bale being transferred from the chamber to a separate wrapping table, the Bio forms the bale in an 18-roller chamber where, after completion, the top portion lifts to allow wrapping by a twin satellite system; then the lower six rollers – which have acted as a wrapper table – lower the bale to the ground. This unique concept results in a smaller machine weighing only 3700kg and needing only 110hp, versus the longer, heavier units that typically weigh 5.5 to 6 tonnes and need upwards of 150hp. Such a machine may suit smaller farmers or contractors who want to make their own baleage but don’t necessarily have a big tractor. Benefits are also claimed for holding bales in the chamber during wrapping: they are said to expand less and require less net or film wrap for the finished product. For the 2016-17 season the new I-Bio+ sees grass lifted over a 2.3m wide pick-up by five tine bars; this can be specified with optional fixed or pivot-
ing guide wheels for undulating ground conditions. This ability is further enhanced by a pivoting action that allows the unit to oscillate laterally to follow the ground more accurately. From the pick-up, crop is moved into the bale chamber by Kuhn’s Integral Rotor which centres the crop to the chamber width and feeds it through the Opticut 14-blade knife bank; each blade is individually protected in the event of an overload, and they can be used in different multiples for differing chop lengths. New Zealand users may choose to run with seven knives which give a longer chop length, considered better for promoting rumen activity. As part of the chopping system a drop-down floor allows blockages to be easily released and a hydraulic feed rotor disengagement function cuts feed to the chamber, allowing bales to be netted and released if required. The driveline uses heavy duty 1 inch and 1.25 inch chains lubricated by a brush system; this and a centrally mounted greasing system (or an optional automatic greasing system) minimise routine maintenance. Two novelties for the season are, firstly, the IntelliWrap system that uses electronics and hydraulics to monitor the process and allow easy adjustment of the number of wraps and the amount
of overlap; and, secondly, a feature that slows the rotation speed by 50%, which allows one roll to finish wrapping a bale should the other break, reducing downtime in the field. An optional twin
roll system can also be fitted to wrap the circumference of the bale, making for tighter wrapping and removal of air; the results are better quality, improved bale shape for stacking and some protection for straw
stored outdoors. Control is via the Kuhn VT50 terminal which oversees all machine functions on its 5.7 colour screen, giving real time display of baling and wrapping at all times. www.kuhn.co.nz
The evolution is complete
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The ever-reliable Deutz-Fahr M-Series now comes with a smart new look, and a host of exciting new features. Deutz-Fahr have added to the power, comfort and unparalleled fuel-efficiency for which the M-Series is so renowned. With front suspension, load-sensing hydraulics, 50k road-speed, exceptional lift characteristics, and a sleek new look from Giagiaro Design, the trusted, no-nonsense, German-built M-Series tractors have truly evolved. Call your Power Farming dealer today to check out the latest evolution of Europe’s most trusted tractor.
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TERMS UP TO
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SET UP in 1963, Motus Hydraulics has for 50 years supplied off-the-shelf and custom hydraulic cylinders throughout New Zealand. Following demand for heavy-duty, off-the-shelf cylinders the company has now introduced the Max series of hydraulic rams, the result of 11 years of R&D testing, including finite element analysis and physical testing. The rams have a 6 to 1 safety feature for peace of mind. Bore sizes 2.5-6 inches use heavy duty tubing to resist dents and scrapes, and they withstand continuous pressure of 4000psi in heavy duty applications. A unique positive lock system secures and retains the internal piston for the life of the assembly; it has Hallite wear rings and seals, factory rated to 7500psi, giving high static load holding characteristics and sealing. – Mark Daniel
INTEREST RATES FROM AS LOW AS
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RURAL NEWS // MAY 24, 2016
38 MACHINERY & PRODUCTS Market Data Every Week Check out the latest market data at www.ruralnewsgroup.co.nz/markets
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LOOKING OUT the front window of the Ford Ranger Wildtrak as you cruise along it’s easy to forget you’re driving a ute, not a luxury SUV. The leather interior, the wealth of technology like adaptive cruise, the quiet cabin, the smooth ride; you could be in the Ranger’s Prado-rivalling stablemate the Everest – until you hit a big bump and the cart-sprung solid rear axle bucks to remind you it’s a truck under you, not a Remuera tractor. The Wildtrak is the blingy range-topper, so the level of kit is not typical of the working-clothes Ranger variants (and there probably will be a few of these Flash Harries in Remmers). However, it’s the same truck underneath the toys and technology, with the same torquey 3.2L diesel and 6-speed automatic,
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the same capable chassis, and the same 4WD system, so it’ll give us a good read on how much the recent refresh has improved the country’s best-selling ute. Ford released this refreshed Ranger just before the new Toyota Hilux hit the market. So far, Ford has held the sales advantage it gained over the old model Hilux. Ford has polished refinement levels, making NVH (noise, vibration and harshness) suppression much better. New hydraulic drive train mounts have reduced vibrations from the engine. The truck is very quiet, although
pin the throttle and the 5-cylinder gets rowdy enough to break through the serenity. It’s a torquey unit though and does its best work below 3000rpm. The output of the 3.2L engine remains the same – 147kW of power and 470Nm of torque -but it has been fettled to improve fuel economy (9.0L/100km), although emissions have not changed. The automatic’s shift schedule has also been retuned and a new torque converter added to improve power delivery. A 2.2L diesel is still available on lower grade models. The ride quality is
good; it was good before, as was the handling. Actually, by normal car standards the ride and handling are good; by ute standards they’re exceptional. A suspension retune has made the ride a bit smoother. And Ford has given the Ranger electric steering, which is lighter at slow speeds than the old hydraulic system, firming up as speed increases and giving an accurate steer and good feel – not always a strength of electric steering. It also contributes to better fuel economy. The capacity and capability stats are also as before: 1175kg payload,
3500kg towing, 1549mm tray length in double cab format, 1139mm tray width (between the wheel arches) and 800mm wading depth for the intrepid. We didn’t venture off road but the Ranger’s credentials in the dirt are well established. And the Ranger now has a very American looking face with a bold grille to enhance its overall tough stance. It’s easy to see why it has been so popular. With the new Hilux nipping at its heels, the revamp has come just in time. @rural_news facebook.com/ruralnews
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RURAL NEWS // MAY 24, 2016
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Rangiora
www.advantageplastics.co.nz
Culvert Pipes New Zealand’s CHEAPEST Culvert Pipes! FREE joiners supplied on request. ONE STOP WATER SHOP 300mm x 6 metre ................................ $410 400mm x 6 metre ................................ $515 500mm x 6 metre ................................ $690 600mm x 6 metre ................................ $925 800mm x 6 metre .............................. $1399 1000mm x 6 metre ............................ $2175 1200mm x 6 metre ............................ $3475 ALL PRICES INCLUDE G.S.T.
• Lightweight, easy to install • Made from polyethylene
McKee Plastics Mahinui Street, Feilding Ph 06 323 4181 Fax 06 323 4183
sales@mckeeplastics.co.nz | www.mckeeplastics.co.nz
10 HALL ROAD, RD5, WHANGAREI Phone 09 438 8907
Phone
0800 625 826
for your nearest stockist
Joiners supplied FREE with culvert pipes
Looking for technical tips & know-how? We’re here to help.
If you need technical support and advice our highly qualified team, which includes two nutritionists, two vets, four agronomists and 160 technical field reps, are ready to put their experience and knowledge to use to help you. It’s just one of the factors that help us offer an unbeatable combination of value and service. And if you need the level of experience and service that 160 years of business have given us, chances are one of our representatives are just down the road. We work with farmers and growers from all walks of life.
There’s only one name you need to remember. PGG Wrightson.
Freephone 0800 10 22 76
www.pggwrightson.co.nz
Helping grow the country