Rural News 06 September 2016

RURALNEWS TO ALL FARMERS, FOR ALL FARMERS

SEPTEMBER 6, 2016: ISSUE 614 

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MANAGEMENT Entering awards proves beneficial for Otago farmer. PAGE 34

MACHINERY The one farm worker that won’t answer back. PAGE 46

RURALNEWS

NEWS Foodie implores growers to try new lines of produce.

PAGE 18

TO ALL FARMERS, FOR ALL FARMERS

SEPTEMBER 6, 2016: ISSUE 614

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Lincoln on the brink? NIGEL MALTHUS

LINCOLN UNIVERSITY could sell or lease some of its farms and shed more staff as it struggles to correct a funding shortfall. Having recorded a $6 million deficit last year, vice-chancellor Robin Pollard estimates Lincoln will now need to find $7m to meet the financial standards set by the Tertiary Education Commission. Pollard was not available for interview before this issue of Rural News went to print, but the university has confirmed that some of Lincoln’s thousands of hectares of farmland could be leased or sold, although land used for research purposes would remain untouched. Lincoln’s website lists 19 farms, though some properties are already leased to other parties and some the university does not own, but manages with the owners, including Ngai Tahu

and secondary schools in Northland and Waikato. Among farms it owns is the 180ha Lincoln University Dairy Farm, run as a commercial demonstration farm, and the 355ha Ashley Dene, owned by Lincoln for 100 years and recently converted to a dairy research unit. Its largest farm is the 2127ha Mount Grand high country merino station in Central Otago. Neither that nor the 433ha Argyle – a dryland beef and sheep property in Marlborough – is listed as

BETTER, FASTER, STRONGER Tauranga grower Dave Goodwin, a kiwifruit orchardist for 35 years, owns two orchards – a 6ha block with G3 Gold kiwifruit and a small organic orchard growing the traditional green Hayward variety. Like the kiwifruit industry, Goodwin is committed to excellence and is always looking for ways to improve. Lauded for its recovery from Psa a couple of years back, the kiwifruit sector is seen as innovative and well-organised. Read more about Goodwin’s operation and innovations on pages 16-17.

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being used for research. Both are held in trust to fund scholarships for students. Blocks already leased to other parties include a 125ha arable farm near the Lincoln campus, leased to Plant and Food Research. Agricultural science consultant Dr Doug Edmeades blames Lincoln’s problems on the commercialisation of science funding started in the 1990s. “It’s a continuation of the same nonsense,” he claims. “Agricultural science organisations like Lincoln and Massey

universities and AgResearch have stumbled from one funding crisis to the next for over 20 years. “Reform to reform, based on commercial management theories, which do not apply to science organisations, tears the scientific heart and soul of science to pieces.” Edmeades says AgResearch had “done the same thing” by selling its farms. “That means the products of research cannot be tested, which is TO PAGE 3

DAIRY OPTIMISM FIRMS PAM TIPA pamelat@ruralnews.co.nz

MORE GOOD news for dairy, last week, as Westland increased its payout forecast by 20%, and the futures market indicated a third consecutive increase in this week’s Global Dairy Trade (GDT) auction. In the two previous auctions whole milk powder (WMP) prices increased 18.9% and 9.9% respectively. According to the futures pricing, WMP could rise 10-15% again in this week’s auction, bringing the price close to the breakeven point of US$3000. Westland, New Zealand’s second biggest dairy cooperative, increased its 2016-17 season payout forecast to $4.55-$4.95/kgMS. And it says it forecasts a higher average operating surplus -- $4.75-$5.15/kgMS. Chairman Matt O’Regan says this results from a recent uplift in international dairy prices for the range of products Westland produces, along with positive August GDT auction results. Two weeks ago, Fonterra increased its forecast farmgate milk price by 50c to $4.75/kgMS. Combined with earnings per share, the forecast payout is $5.25-$5.35/kgMS. ASB rural economist Nathan Penny says rapidly falling global production has been the catalyst for the price correction. ASB is still expecting a finalised milk price for the season of $6/kgMS.

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RURAL NEWS // SEPTEMBER 6, 2016

NEWS 3 ISSUE 614

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NEWS ����������������������������������� 1-20 MARKETS ������������������������ 22-23 AGRIBUSINESS �������������� 24-26 HOUND, EDNA ����������������������� 28 CONTACTS ������������������������������ 28 OPINION ���������������������������� 28-31 MANAGEMENT �������������� 32-38 ANIMAL HEALTH ���������� 39-41 MACHINERY AND PRODUCTS ���������������������� 43-47 RURAL TRADER ������������������� 48 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 31.03.2016

The good, bad and ugly – ASB “DAIRY PRICES are back on track,” claims ASB senior rural economist Nathan Penny. In the latest edition of the bank’s Farmshed Economics report, he cites Fonterra’s August increase in its 201617 milk price forecast by 50 cents taking it to $4.75/kg of milksolids. “While some are wary of a repeat of last season’s false dawn, we are more confident.” Penny, an optimistic commentator on the industry, attributes the milk price rise to “irreversible reductions” in the dairy herd. “In our view, this price correction is sustainable,” he says. Penny believes the forecast upgrade can be pinned to a surge in dairy auction prices in August. “We have long argued that rap-

idly falling global production would eventually be the catalyst for a price correction. With that now the case, Fonterra tentatively agrees.” However, he says the dairy co-op remains wary of lifting the milk price forecast too high this early in the season. “In contrast, we expect dairy auction prices to build on Nathan Penny August’s gains over the remainder of 2016. With this in mind, we continue to expect a finalised milk price for the season of $6.00/kgMS.” Meanwhile, the ASB report says meat prices are a mixed bag.

“Lamb prices have made tough work of August, however it’s early days in the season. The bigger test for lamb prices awaits over the spring.” Penny says Brexit’s precise impact on UK consumers and their demand for lamb will have a large bearing on where prices settle. On the other hand, ASB says beef prices remain healthy, with NZ and Australian supply tight. “Although, with global beef produc-

Lincoln on the brink? FROM PAGE 1

RUATANIWHA SETBACK? A CONTROVERSIAL land swap deal which would have advanced the Ruataniwha dam scheme may now not go ahead. This follows a successful appeal by Forest & Bird against a High Court decision which allowed the land swap so that the dam project could proceed. The dam is aimed at irrigating about 25,000ha of farm land in Central Hawke’s Bay. The Department of Conservation had proposed swapping 22ha of the Ruahine Forest Park for 170ha that the Hawke’s Bay Regional Investment Co Ltd (HBRIC) proposed to buy from Smedley Station. This would have triggered a downgrade of the protected conservation status of the land to allow it to be flooded as part of the Ruataniwha scheme. HBRIC, the investment arm of Hawke’s Bay Regional Council, last

year reached agreement with DOC to exchange the land. The swap was agreed to last October, but Forest & Bird challenged the decision by the director-general of conservation, saying not only was it illegal, but it also had implications throughout New Zealand for specially protected land under the Conservation Act 1987. “This land swap would have set a precedent for up to one million hectares of specially protected conservation land, which includes forest parks, conservation parks and ecological and wilderness areas,” says Forest & Bird lawyer Sally Gepp. “This case goes to the heart of the purpose of the Conservation Act 1987 and upholds Forest & Bird’s position that specially protected conservation land should not be subject to commercial or political whim.”

tion and exports increasing elsewhere, prices are likely to moderate heading into 2017.” ASB says wool prices have drifted lower over recent months, but remain high by historical standards. “All up, we expect wool prices to continue their drift lower.” Penny says despite the Reserve Bank cutting the official cash rate in August and signalling more cuts, the NZ dollar has strengthened, helped in part by the recovery in dairy prices. “From here we expect the dollar to remain high and for this to partially offset any commodity price gains,” Penny concludes.

most important before they go onto farms.” Edmeades says Crown research institutes and universities need certainty and should be bulk funded. “Science is very different from business in many different ways, so putting science into a business model, a commercial model, distorts science and undermines its purpose. “You don’t get the best out of people by putting them on the edge of a precipice; it’s ridiculous.” Despite about 100 jobs being cut in the last round of restructuring in 2013-14, Pollard says more needed to be done to restore the university’s finances. He told the Lincoln University council that a review of less popular courses had to be done before the start of the 2017 academic year. Lincoln Tertiary Education Union organiser Cindy Doull said the union was struggling to make sense of what that would mean for staff. Based on the numbers affected in the 2013-14 round, she says the savings target

could represent about 50 jobs being lost from the total staff of 600 to 650. Meanwhile, former Invermay director Dr Jock Allison has backed Pollard for “trying to address the problems in a logical way, as he must”. “Any action that a new vice-chancellor takes will cause staff angst, but action must be taken if there is to be any chance of Lincoln surviving and regaining its reputation as the nation’s premier agricultural tertiary institution.” Allison believes the university’s problems could be “sheeted home” to the previous vice-chancellor, Dr Andrew West. “The council knew that Dr West’s departure from AgResearch came after difficulties and yet they still chose to employ him. “Clearly the new vice-chancellor has to take firm action now or Lincoln might just as well be joined up with another university,” he says. “Probably Otago is the most appropriate.”

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RURAL NEWS // SEPTEMBER 6, 2016

4 NEWS

Cow theft not an isolated case PAM TIPA pamelat@ruralnews.co.nz

WHILE POLICE are investigating the theft of 500 cows from an Ashburton farm, another nearby farmer says it is the third known theft of cows this year in a 50km radius of that farm. Ashburton police say they have visited the farm which reported the 500cow loss and taken statements. Farm administrator Pennie Saunders put an appeal on Facebook for anyone who had heard or seen anything suspicious. Nearby farmer Jill Quigley says they had 36 Kiwi Cross cows stolen in December or January and another property had 18 disappear earlier this year – all within a 20km area. She fears more farms may report losses as they bring the cows in for calving. “It certainly makes everybody security conscious but short of sleeping under a tree where your cows are grazing, what can you do?” she asks. “A lot of us have security cameras, but they only cover a certain area. “I just hope they can get to the bottom of it, because how many others have gone missing that people haven’t picked up on yet?” Quigley said to Rural News. “The cows are coming back in for calving after grazing and people will be doing head counts. I just hope no others

have gone.” She says with the NAIT tags they thought their 36 cows would be tracked down, but they weren’t. “Whoever is doing this is well organised; they know the system and how they can beat it; this is extremely frustrating. “This type of stuff is scary because somebody could get hurt if somebody catches these people in the act; people will only put up with so much.” Quigley says the Saunders are great farmers and she is at a loss, along with the rest of the community, to know how this happened. When the Quigleys lost their 36 cows over two weeks, the police investigated “and we obviously did a lot of digging and delving and investigating, but nothing ever came of it”. They simply vanished,” she says. “Ours were stolen when they were being milked so that is how we got onto it quickly because obviously the ProTrak [milking data system] told us we were down on our numbers and production.” The reported missing 500 cows – from a herd of 1300 – went missing during winter grazing so were not quickly picked up. Its early days in the 500 cow investigation, but they seem to “have just vanished too,” Quigley says. “It is frightening trying to farm; it

The 500 cows seemed to have ‘just vanished’. Neighbour Jill Quigley says.

is hard enough trying to make a living the way things are without this carryon happening. “I am hoping somewhere the police will get some leads and can nip this in the bud.” She doesn’t know of thefts in other

seasons. “We got to the stage when ours went that we exhausted all our possibilities and the police did the same and we just had to say ‘right we’ve got to get on and recover the costs and keep going’ or it would have done our heads in.

“We had just put it aside, then this brought it all back again. We want to stand alongside them and support them and see justice done.” Police say they cannot comment further while the investigation is underway. Police are reminding farmers to take proactive measures to prevent stock thefts.

PLENTY FARMERS CAN DO TO DETER THIEVES SENIOR SERGEANT Scott Banfield, of Ashburton police, reminds farmers to take measures to help prevent stock thefts. “All farmers should be checking their boundaries and fence lines regularly. “It’s unlikely the theft of hundreds of animals could be done at once; it’s more likely multiple thefts could be carried out over time. “Regardless of the size of your property, ideally stock

numbers should be checked once a week. “Farmers should also keep an eye out for unexpected signs of herding near their boundary lines.” Banfield says it’s essential the community work together to keep police informed. “Neighbours should note any movement of stock, particularly if it’s at an unusual time of the year. “If possible, make a note of any suspicious vehicle’s

registration number, and a description and direction of the vehicle and what it was carrying. Even a photo on a cellphone provides significant information to police.” Banfield says farmers should also review their auditing systems. “There are almost always improvements which can be made to the management and security of stock. Clearly tag animals and keep accurate stock numbers.

“Enhanced security and signage can help deter opportunistic thefts. Items such as animal tags and equipment should be kept in a secure facility.” Anyone with information can contact Canterbury police on 03 363 7400 and quote file number 160825/7150. Alternatively give information anonymously to Crimestoppers on 0800 555 111.

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RURAL NEWS // SEPTEMBER 6, 2016

NEWS 5

Landcorp’s loss sheeted home to dairy downturn PAM TIPA pamelat@ruralnews.co.nz

LANDCORP HAS worked hard to develop its strategy but for twothree years will remain exposed to commodity movements, says chief executive Steven Carden. The result released last week – a net operating loss of $9.4 million on revenue of $209m for the year ended June 30 – was largely a dairy issue, he says. “No surprises for anyone, I guess, in that respect,” Carden told Rural News. “Our dairy revenue is off about 15%: a combination of price falls and production falls as we have scaled back our dairy production and our cost structures to reflect the dairy price.” The taxable profit of $11.5m was attributed to higher livestock valuations and land sales. “The positives are the

really tight cost controls across the business,” Carden claims. “We saw this coming for a long time as other farmers did, so cost control has been very strong and our farm working expenses are back about 9%. “We continue to make a lot of progress on the strategy so we can keep investing in the Pamu value-add strategy we are developing and develop our alternative products like sheep milk. “We have introduced new systems across our business that will help us in our procurement, and our farm operating expenses at the moment – which is really good.” Carden refers to much good work happening in the business and it is unfortunate the financial results don’t necessarily reflect that. Asked when the results of the strategy are likely to show, he says everyone recognises that

Landcorp chief Steven Carden says the loss was ‘no surprise’.

to move a business away from being exposed to commodities like milk takes a while.

“We’ve done a lot to scale back our number of dairy conversions... and look at alternative land

uses. “I would expect for the next two-three years we are going to remain

exposed to commodity movements. “Like everyone else we are hoping to see the milk price continue to climb as it has over the last month,” he says. “Our exposure to premium markets and moving away from commodity pricing should feature more in our revenue and overall performance.” He says the end to the Shanghai Penguin contract and its impact on the bottom line result will depend on where the milk price is. “While [the milk price] is low we won’t have a loss, but if it goes high we will miss out on that profit; but we are freeing up about $25m

capital by reallocating that livestock to other parts of our business,” Carden says. “This is consistent with reducing our exposure to commodity milk.” Landcorp’s Pamu brand is now being used for domestically sold venison, for sales of grass-fed beef into the US, development of alternative dairy options like organics and grassfed options. “Increasingly we are exploring what we can do in alternative products like sheep milk or deer milk or other land uses we are currently working through.” @rural_news facebook.com/ruralnews

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THERE WAS an overall reduction in Landcorp’s milk revenue of $12.9m (8.5%) as the payout to commodity producers fell to its lowest level for 10 years. “It’s been tough for the entire dairy sector, so our result is solid in that context,” Carden says. “The result would have been lower without the progress already made to strengthen our farming systems and our position in the marketplace for Pāmu products.” Landcorp’s total assets increased to $1.79b in 2015-16, an increase of $11.6m on the previous year. Bank debt has increased marginally over the year from $210.7m to $219.6m. Landcorp had announced an $8.9m operating loss for the half-year to December 2015 and at that time forecast a full-year loss of $8m-12m.

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RURAL NEWS // SEPTEMBER 6, 2016

6 NEWS

‘Turbo-charger’ for sheep milk sector PAM TIPA pamelat@ruralnews.co.nz

THE DAIRY sheep industry in New Zealand will be “turbo-charged” by a new $31.39 million Primary Growth Partnership (PGP), the Primary Industries Minister, Nathan Guy, claims. Guy says the Sheep Horizons Three PGP programme will take the industry from revenues of about $10 million a year to $200m-$700m by 2030. However, one MPI estimate puts that figure at $100m. The industry would only grow to about $33m by 2030 without the PGP programme aiming to deliver a market driven end-to-end value chain, according to this estimate. MPI will put $12.56m (40%) into the new programme, and Spring Sheep Milk Co $18.83m – a total of $31.39m over its six year life. Spring Sheep Milk Co is a 50/50 partnership between Landcorp and several NZ investors through SLC Ventures LP. Spring Sheep Milk Co chief executive Scottie Chapman believes there is significant and growing demand for sheep milk, especially from Asia, where consumers like its nutritional value, flavour and digestibility.

Spring Sheep chief Scottie Chapman and Primary Industries Minister Nathan Guy toast the new sheep milk PGP project.

“To achieve a sheep milk industry delivering domestic and export returns in the upper range of $700m, NZ will need up to 55 farms managed by farmers with specific sheep milking expertise,” he says. “The current farming model in NZ won’t achieve this, which is why this joint investment by ourselves and MPI is so critical.” Spring Sheep Milk Co operates one farm with around 4000 East Friesian sheep, near Taupo. MPI and Spring Sheep Milk Co are now negotiating a contract so the pro-

gramme can formally begin. MPI director-general Martyn Dunne says MPI wants to ensure the programme has wider benefits. It will look at genetics and other issues that enable the programme to be truly of national benefit. It has a programme for marketing and development, research and genetics. “It also includes developing farming and environmental systems, which are topical these days, as is the social licence to be able to carry it out. They will be building the right capability and skills required for successful dairy sheep farm-

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ing in NZ,” Dunne added. “I am certain we will develop a stream of people with specific skills in NZ in the sheep milk industry that will grow and benefit in the wider sense not only primary industries but dairy in its broader sense.” It also includes developing the land farming component, in which Landcorp will play a large role. Chapman told the launch of the project in Auckland recently that they have a unique opportunity to strengthen NZ farming by getting it right in the market

first. They will match the product to consumer demands and work backwards. Sheep milk is worth at least $10 billion per annum globally and is growing at 10% globally. Guy says NZ now produces about 160L/ewe/year and there is opportunity to grow by at least an extra 100L/ewe/ year. However, the current NZ cost structure is higher than in other countries. “There’s opportunity to drive those costs down and increase the sale price by about $1/L.” Genetic development is an exciting opportunity – developing a strong multiplier NZ flock. “The flock size and genetic pool in NZ is not great. If we are going to turbocharge that we need to get the right size, get some AI, get some embryos in and grow the size of our nucleus.” Guy says the NZ industry needs to look at a prototype for housing, the best pasture species, work the animal husbandry model, develop onfarm trialling and produce a technical manual. There will be open field days for NZ farmers to get involved and engaged. The market insights will put the consumer at the centre plus developing high value products.

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RURAL NEWS // SEPTEMBER 6, 2016

NEWS 7 Interested farmers advised to take a watching brief PAM TIPA pamelat@ruralnews.co.nz

IT IS not the time yet for farmers to start getting into dairy sheep, but those interested need to keep a “watching brief” on the PGP programme, says Spring Sheep Milk chief executive Scottie Chapman. “In the first instance we have to get the model to work,” he told Rural News. “New Zealand has been doing this for about 10-15 years and we are still well behind best practice and ability to actually make this work commercially.” Chapman says the whole purpose of the PGP, in the short term, is to get a model which works, builds interest and gets people involved to come and see it. “In time, once we’ve got a model that works, we will look at extending it and

encouraging other farmers to get involved,” he says. “It is still a few years before they can make it work.” But Chapman is convinced that long term it is an opportunity for farmers. “I would suggest to farmers, keep a watching brief, keep an eye on it, follow the numbers, follow what we are doing; it will all be public.” He believes the most logical places for farms will be near processing, mostly around Waikato. “Logic says in the short term that is where the opportunities will be. How it plays out in the long term remains to be seen.” The PGP has several parts to it, he says. “One is getting the market insight so we are getting consumer demand; the next is research and development to produce

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those products the consumer wants; the other part is onfarm management and the genetics.” Chapman believes that NZ has a sensational ability to convert sheep milk into products of value. “So there is no point in replicating the stainless steel that exists in the dairy industry. It is incredibly well run and looked after so we will continue the current dairy processes; we don’t need to reinvent that wheel.” Spring Sheep Milk currently uses Waikato Innovation Park’s dryer for the bulk powder then it moves on to processing and canning plants. “That’s only the powder; we also have gelato and other products. We can use existing NZ players and we will. It is another great advantage for NZ Inc.”

Chapman says they can pick and choose what processing facilities they need, according to what consumers say they want, instead of building a factory and having to process the product. “It’s global, it’s in the Western world as well. There just happens to be a bigger prevalence in Asia. For them goat or sheep milk are a lot more digestible. “So the three factors we are selling on are taste, digestibility and nutrition. “Sheep milk products provide an alternative for those who potentially have a bovine intolerance. Bovine milk is a very good healthy product for most people but if you have an intolerance, there’s an alternative that has the calcium and protein without the digestive issues.”

EASIER THAN COWS! MILKING SHEEP is much easier and simpler than cows, but it takes much more dedication and attention, says John Ryrie, sheep dairy manager at Spring Sheep Milk. “You need good stockmanship to look after sheep,” he told Rural News. A Scotsman, Ryrie has been in New Zealand for the past year as farm manager for Spring Sheep but has been sheep milking in the UK for 20 years. “They are less forgiving than cows,” he says. “If you get the nutrition wrong for a few days then they won’t forgive you and give you the milk back. Once you get that nutrition wrong you lose that milk regardless of what you do afterwards, whereas cows are more forgiving.” Sheep have a better memory than people realise, he says. “Once they’ve got a system they will follow that system or that route back and forth to paddock without dogs. They will go themselves, they will come in themselves. They will come into the parlour themselves, they will go through the parlour and exit themselves.” Ryrie says sheep are not as silly as people make out and have a very good

long term memory. “So if we come out of season and we dry them off and start up a new season, they will follow the routine we gave them the year before. Once we get them trained initially, it is easier and simpler for them to follow what we need to do.” Ryrie thinks the potential for sheep milk is huge. “I’ve travelled in Europe and I have travelled in Canada in the past and in the market the demand for sheep milk, as far as I can tell, exceeds supply by quite a factor worldwide. “The main factor is to get the link between the consumer and production right, and I think NZ has that under control. “In a lot of other countries they don’t have that link set up between demand and production.” He says onfarm production needs to increase in NZ to make sheep milking viable and this comes down to genetics and nutrition: “they go hand in hand”. “You can have good genetics, but if you don’t have good nutrition you won’t make the same gains.” – Pam Tipa

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RURAL NEWS // SEPTEMBER 6, 2016

8 NEWS

South Canterbury irrigation scheme starting to take shape The proposed multi-million dollar Hunter Downs Water (HDW) irrigation scheme aims to provide certainty for South Canterbury farmers and for generations to come. David Anderson reports. decide whether or not to be part of the scheme. Chairman Andrew Fraser describes the HDW project as intergenerational; it will create opportunities for future generations. “An inability to ensure reliable and consistent rainfall on a year-to-year basis results in lost opportunities for the farming community,” Fraser says. The scheme’s footprint covers about 40,000ha, potentially benefiting up to 200 landowners. This is based on the number of farmers likely to want to use the water, but that may change depending on

landowner enthusiasm for investment. There are currently 93 shareholders with 18,016 shares issued to April 2016; most are landowners in the scheme area. An irrigation scheme idea for this area is not new. One was floated in about 2000, when the surrounding councils investigated all water options for South Canterbury. Out of the initiative, the South Canterbury Irrigation Trust was formed and developed into the Hunter Downs Irrigation Scheme Trust. The trust and Meridian Energy collaborated

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THE HDW scheme, which has moved from the feasibility and concept to design stage, will take water from the Waitaki River to irrigate land in an area that covers from Waimate, up the coast to south of Timaru and west toward the Hunters Hills. Final costings and design will be unveiled later this month (September). Prior to this, HDW has been running workshops for its shareholders and potential water users to give them a better knowledge and understanding of the scheme and irrigation in general, to better help people

Hunter Downs Water chair Andrew Fraser.

over ten years to develop the scheme. During this collaboration, two main boards were created for the project – the HDIL and Hunter Downs Development Company Ltd (HDDCL). However, Meridian has now exited the project and the new farmer- and community-led company Hunter Downs Water (HDW) came into being on July 1. HDW has already sought and been granted consents to take and use up to 17.5m3 per second from the Waitaki River to irrigate the main scheme area. The Waitaki River is fed mostly by water flowing from the main divide with about 98% reliability. HDW is confident the scheme is now technically and economically

feasible, commercially viable, and culturally and environmentally acceptable. There are still further consents and land access needed to secure and finalise the commercial and engineering design. In February, local engineering firm Rooney Group presented a new concept scheme alignment to Hunter Downs, and in May the company decided to continue to investigate that option. Rooney Group’s design includes several innovative elements – such as the gravity fed main race and use of storage ponds – which will cut the cost of building by multi-millions of dollars. “We have worked hard on getting these [costs and design] finalised. However, we need to be abso-

lutely confident of both the final costs and design – which both had to be peer reviewed – to ensure certainty before we can go public with the costs,” Fraser says. It is unknown precisely how much money the irrigation could bring to the community, but Fraser believes it will spread throughout the district. A 2011, a Meridiancommissioned, preliminary economic study found if the scheme was to go ahead it could add another $100 million to the district’s total household income – or another 9.8% of the district’s basic annual household income. Fraser says the water will have a knock-on effect on the wider economy, adding value to land and productivity, through to the businesses and wider community that make a living from what happened on the land. Irrigation schemes no longer operate in isolation from community and environmental concerns and both of these have been a big part in the development of HDW. The Hunter Downs Implementation Advisory group was cre-

ated to provide community input into the project and ensure a forum for local concerns to be aired and considered in the decision making process. The group, which includes representatives from the farming community, Te Runanga o Arowhenua, Te Runanga o Waihao and Te Runanga o Moeraki, has focused on considering the application and draft conditions for the discharge of nutrients. A major part of the project’s resource consents process has been for the augmentation and recovery of the Wainono Lagoon. Environment Canterbury classes the 480ha coastal lagoon and wetland to be of national and international importance for its birdlife and native fish. It was also classified as a nutrient red zone and nutrient discharges were prohibited from increasing above designated levels. As part of the scheme there are plans to add clear, low nutrient Waitaki River water to the lagoon, which those behind the Hunter Downs scheme TO PAGE 9

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NEWS 9

Aiming to ‘drought-proof’ tinder-dry district NIGEL MALTHUS

AN IRRIGATION project aimed at ‘droughtproofing’ the Hurunui District is on track to sign up a contractor within the next few days. The organisers will shortly select an ‘early contractor involvement’ partner, expected to bring its own resources, intellectual property and expertise into designing and constructing the scheme. The milestone comes about a month after a shareholder meeting on July 27

which endorsed the next stage of the project, including raising $900,000 in loans from shareholders. HWP chief executive Alex Adams says the shareholder borrowing opened on August 8 and was due to close on August 31. Because it was being done on the online peer-to-peer lending platform LendMe, shareholders were able to log on and see progress for themselves. “The take-up’s almost exactly where the experts at LendMe said it would be,

heading for our target of $900,000,” says Adams. Hitting the target would also allow the scheme to draw down $3.3 million in Crown Irrigation Investments Ltd (CIIL) funding. The loans will be repayable with interest and be redeemable when the water user agreements are concluded with shareholders in the initial part of the distribution area. Board chairman Lindsay Lloyd says the proposal was soundly endorsed

by supporters, including the scheme’s large shareholders Ngai Tahu, David Teece and the Amuri Irrigation Company. Lloyd says the shareholders’ commitment sent a strong signal of confidence to HWP’s external partners about investing in the project. The $180 million scheme proposes four storage dams in the upper Waitohi River, and has consents covering 58,000ha of irrigable land in the Hawarden, Waikari, Scargill and Omihi

districts, with further potential in the Greta Valley, Ethelton, Glasnevin and Amberley-Kowhai areas. Lloyd says irrigation will provide “real opportunities for farmers to enhance existing farming practices, and diversify into crops and other farm enterprises, such as sheep milking, specialist seeds and the like, that will grow the value chain and add value to the region’s economy, including farm businesses and the rural service industry”.

SCHEME TAKES SHAPE FROM PAGE 8

hope will improve the water quality. Without this augmentation Wainono catchment landowners are likely to face significant future nutrient constraints. Fraser recognises the unveiling of the final costs – both capital cost and annual charges – of the scheme are critical to it being accepted by farmers

and encouraging uptake. “What we can say is the current scheme costs are tracking under the magical $10,000/ha for 21,000ha of uptake with significant reductions – in both scheme costs and annual charges – the more uptake we get beyond this. It is all about economy of scale: the more hectares we can get into the scheme the cheaper it will be.”

MERIDIAN EXITS SOUTH CANTERBURY farmers now run and control the proposed Hunter Downs Water Irrigation scheme after power company Meridian Energy exited the project earlier this year. Meridian had held a 50% stake in the Hunter Downs Development Company (HDDCL), the board formed to undertake design and consenting work. Meridian had been involved and collaborated with farmers in the Hunter Downs project for at least 10 years. In May, the company said its stake would be transferred to the farmer-based Hunter Downs Irrigation Limited (HDIL) board and it would quit the project. Both HDDCL and HDIL have since been incorporated into the new company Hunter Downs Water (HDW). HDW chairman Andrew Fraser says Meridian had always intended to transfer its stake when the project went from the development to the construction phase. Fraser thanked Meridian for the help and expertise it had brought to the scheme. “The scheme is now at a stage where it is time for those who stand to benefit most from this project to progress it further,” Fraser says. Meridian spokesman Paul Clearwater says the company’s main contribution had been obtaining the water take consent, which remained a key asset for the project. He says it was the right time for the company to transfer its interests to the farmers so they can progress the project. The water take consent will remain jointly owned by the Hunter Downs Irrigation Scheme Trust and Meridian and after construction there is a written agreement that HDW will buy the consent.

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RURAL NEWS // SEPTEMBER 6, 2016

10 NEWS

Science needed in water investigation NIGEL MALTHUS

AUTHORITIES INVESTIGATING the Havelock North water contamination incident need to follow the science, says Lincoln University professor of soil and environmental science Hong Di. Despite interest groups such as Greenpeace point-

ing the finger at farming, no-one should jump to conclusions, he says. Di would not be drawn into speculation on the cause, but says authorities need to get to the bottom of it. “Unless they identify the source they cannot prevent it happening again.”

Di was recently named to head a new New Zealand-China Water Research Centre at Lincoln, with partners AgResearch, Landcare Research, Plant & Food Research, Lincoln Agritech Ltd and the University of Otago. The centre will coordinate long-term work by

New Zealand and Chinese scientists researching issues common to both countries, such as ground and surface water contamination by agrichemicals, and inefficient irrigation practices. “One aim of the centre is basically to try to involve as many people as possible to engage in

water quality and water quantity research,” Di told Rural News. “The emphasis will be trying to mitigate nutrient losses to ground water or to surface water. The key to water quality is how you stop pollution in the first place. We know from Havelock North, once the water is polluted it is very

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hard to clean it.” The water research centre is one of three NZChina centres for which Science and Innovation Minister Steven Joyce announced funding in July; the other two are a food protection network based at Massey University and a non-communicable diseases centre at the University of Otago. Di has a history of working with Chinese institutions, and will head a team working on groundwater hydrology, solute and water transport, irrigation management, nutrient losses to waterways, waste management, microbial ecology, water foot-printing and bioinformatics (using DNA profiling to identify soil microbe populations and what they do). The Lincoln centre will get $1.25 million over three years to pay for work not bricks and mortar, Di says. Some of the money may be spent on infrastructure such as lysimeters and laboratories, but its main purpose is seed funding “to apply for other funding”. The centre will coordinate the two countries’ work and tap into international funding. Di says China has a lot of envi-

Professor Hong Di in his office at Lincoln University.

ronmental issues and its central and local governments are spending a lot on research which may benefit both countries. “People are important. There will be exchange visits; we’ll be going to China to visit the leading teams over there, look at their research programmes, their infrastructure, their investment and so on to see how we can work with them, where we can participate in their research and how we can apply for joint funding.” The centre’s priorities will be nutrient losses, nitrogen leaching and contamination of ground and surface water, to meet new stricter rules imposed by ECan and other regional councils. Despite Lincoln University’s financial woes, Di believes the centre’s long-term future will be assured because of its independent funding.

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CANTERBURY AQUIFERS are depleted because of three consecutive dry summers, but the critics of dairy farming on the plains need to remember the value of dairy exports to the country, says Lincoln University professor of soil and environmental science Hong Di. He says irrigation makes the Canterbury Plains “beautiful soil for dairy farming” and the important thing is to “manage the use of that water carefully”. Di was recently named to head up the New ZealandChina Water Research Centre at Lincoln. “One of our main goals is to work with our Chinese counterparts to increase water use efficiency because they use a lot of water for irrigation in China,” he says. “They have many different kinds of irrigation systems and we want to learn from each other.” Di says that many parts of China, the northern part in particular, are very dry. “They are much drier than here. So how they manage their agriculture and irrigation – their water use – is crucial.” Di believes Lincoln’s newly established Ashley Dene dairy farm will be an important place for the centre’s research, as it was specifically set up to monitor how farming activities impact ground water and surface water, and other environmental issues.

RURAL NEWS // SEPTEMBER 6, 2016

NEWS 11

Kiwifruit industry on a high as Zespri records highest ever returns ZESPRI’S TOTAL sales revenue for the 2015/16 season grew to hit a record high of $1.9 billion, up 22% from the previous season. The total payment to growers for New Zealandgrown fruit also grew 22% on the previous year to $1.143 billion, with average return per hectare reaching a record $60,758. “Sales volumes were up 21% from the previous season, with sales of 131.6 million trays in the 2015/16 season” says chairman Peter McBride “This included sales of 117 million trays of New Zealand-grown kiwifruit– nearly 22 million trays more than the previous year – and 14.5 million trays of non-New Zealand kiwifruit.” As further recovery from Psa kicks in, NZ Gold totalled 32.3 million trays including 27.5 million trays of SunGold compared to last year’s NZ Gold 18.6 million trays including 10.6 trays of SunGold.

Peter McBride

Returns were $71,080 per hectare gold OGR and $8.21 per tray gold OGR compared to last season’s $73,890 per hectare gold OGR and $9.80 per tray gold OGR. Zespri’s corporate net profit after tax in 2015/16 was also strong, increasing by $1.2 million to $35.8 million, with a final fullyear dividend of 24 cents per share. Zespri chief executive Lain Jager says each season brings its own challenges and opportunities. “We remain focused on consis-

tently delivering our strategy over time and staying on track to provide the world’s best portfolio of kiwifruit 12 months a year,” he says. “For the 2016 season and beyond, Zespri will focus on growing demand ahead of supply as our volumes grow strongly and growing our share of the market with a premium price positioning.” McBride says the industry was encouraged to see the progress made in implementing the recommendations of the Kiwifruit Industry Strategy Project or KISP. The industry asked the government to amend the regulations to allow for better shareholder alignment with production, update the definition of Zespri’s core business and provide the regulator Kiwifruit NZ with a broader skill set and more independence. “We’re pleased that the government has agreed to change the regulations to allow these three changes, which ensure that New Zealand kiwifruit growers continue to own and control Zespri into

the future.” He says these regulatory changes are part of a broader package of initiatives including formation of a National Maori Growers’ Forum.

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The record volume of SunGold of 27.5 million trays (from total New Zealand gold volume of 32.6 million trays) sold in excellent time, earning an average return for the gold pool of $8.21 per tray. The record per hectare Green return of $56,673 (up from $53,884 last year) Continued investment in Zespri’s Northern Hemisphere production to grow SunGold supply alongside the growth in NZ volumes.

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RURAL NEWS // SEPTEMBER 6, 2016

12 NEWS

Alone and feeling unfulfilled PAM TIPA pamelat@ruralnews.co.nz

MANY RURAL women feel isolated and that they are often wasting their

skills and education in the farm environment, says a study. Many are turning to social media for support as they feel traditional

rural women’s groups are not filling the void, says a student research project by NZ Young Farmers communication manager Nadine Porter.

Porter also says 58% of women surveyed were not using the skills they had been trained in, leaving them unfulfilled. “There is a wasteland

of knowledge among rural women that is not being utilised,” Porter says. “From university, to a career and then back to the farm where they may

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Dairy Woman’s Network chief executive Zelda de Villiers.

offer them the most not be able to use their support including boards skills -- a vacuum exists. “While the government of trustees empowering and supporting is concentrating on the women in their bringing new people into communities. the primary industry, we “Coupled with 48% need to ask ‘is there a of respondents saying way to use the skills that they do not have close currently exist but are not family living in their area, being used to their full isolation as a significant potential?’ ” issue is a prevalent Commenting on the theme,” Porter says. study, Dairy Women’s De Villiers says rural Network (DWN) executive Zelda de Villiers women’s increasing connections on social points to the network media such as Facebook offering support to its keep them up-to-date on 9000+ membership -friends’ and families’ lives, filling gaps, catering for and accesses industry and online engagement and holding a wide range of local news and events. events where women can “Our live chat sessions come together. are very popular and show She urges women high levels of engagement. feeling isolated to go to Often we have chat the DWN website. sessions from 7-8pm “Increasingly we are where women can ask noticing women from other agricultural sectors joining our network as well as rural professionals,” de Villiers says. “Our 36 groups run 210 events per year, including learning and Report author Nadine Porter. social events to connect, have fun and different industry experts support each other.” questions. Porter did the “We have over 70 study through Lincoln volunteer group leaders University under the able to develop and utilise Kellogg’s Rural Leadership event management, Programme. She says 57% presentation and of rural women surveyed facilitation skills, and their find isolation their top community leadership issue. skills within the network. Most surprising, she DWN also offers paid says, is that 75% of survey and volunteer roles to respondents say social develop and present media forums, notably training to members, lead Facebook, arewhere projects and organise they turn for support. conferences. They are using the 6000“When we ask for strong Farming Mums NZ expressions of interest Facebook page. from our members in Porter believes urgent these roles, many well research and targeted qualified, passionate and initiatives for NZ rural capable applicants apply,” women and their families de Villiers says. are needed. Around 24% of women @rural_news say their local schools facebook.com/ruralnews

RURAL NEWS // SEPTEMBER 6, 2016

NEWS 13

No simple answers on water – Smith NEW ZEALAND is so richly blessed with freshwater that many people do not appreciate its importance to our economy, lifestyle and health, says Environment Minister Nick Smith. At a guest lecture on the topic, held at Lincoln University last week, Smith said NZ had more freshwater per capita than pretty much any nation in the world. “The average 2.3 metres of rain falling nationwide each year equates to 145 million litres per person per year,” he explained. “That is seven times as much as Australia, 16 times as much as the US and 70 times as much per person as the UK or China.” Smith says many of our major export industries depend on freshwater and our rivers and lakes are equally pivotal to our

tourism industry. “You can connect over 60% of our external earnings as a country to this abundance of freshwater. It is core to NZ’s competitive advantage and quality of life.” Smith says the total NZ freshwater resource is 600 trillion litres and we use 11 trillion – or only 1.8% of the total resource. “Six trillion of that, or more than half, is for irrigation. Two and a half trillion litres a year is used by industry. Two trillion litres is used each year by town municipal supplies and about half a trillion is used for stock water.” Smith says agriculture is not only the biggest user by far, but its use is growing. During the past 25 years, the area of irrigated land in NZ has risen from 250,000ha to 800,000ha. “This growth reflects

our abundance of water, the strength of our agriculture sector and the huge productivity gains available in NZ from adding a reliable water supply to fertile soils and our temperate climate,” he added. “The problem, though, is that our systems for allocating freshwater are blunt and unsophisticated.” Smith concedes there are problems with water quality, but cautions those who “exaggerate the problem at the expense of NZ’s reputation”. “Our water quality is generally good by international standards. If you compare our biggest river in the South Island, the Clutha, and the biggest in the North Island, the Waikato, both are much better than waterways such as the Murray/ Darling in Australia, the Thames in the UK, the

Nick Smith

Seine in France, the Rhine in Germany or the Mississippi in the US.” Smith says it is difficult from the hard data to draw simple overall conclusions on freshwater quality. “The first problem is that the trends vary significantly from one river to the next. The second problem is you need sev-

eral years of data to make comparisons meaningful because water quality varies dramatically seasonally and from a dry year to a wet one.” He says the best summary of overall fresh water quality throughout NZ is that bacterial contamination and macroinvertebrates are unchanged during the past 25 years, dissolved phosphorus is improving but nitrate levels are generally deteriorating. “The worst water quality is in urban areas, but these are comparatively small in total area. The most significant declines are in more intensively farmed areas and are caused by minimum flows being too low and levels of nutrients or sediment being too high.” Smith says NZ’s systems for dealing with point sources of pollution

under the Resource Management Act (RMA) are generally working well. “There has been a huge reduction in pollution entering our lakes and rivers from dairy sheds, factories and town effluent systems, with billions been spent on upgrades. These are easier to regulate because they require a consent; they come up regularly for review and councils are able to set standards and monitor performance.” However, he admits these same systems have not been working to address diffuse pollution. “Diffuse pollution is much more challenging to regulate. It is difficult to measure as it is small amounts of runoff over large areas that just seeps into the drains and aquifers and which gradually accumulate,” he explains. “The activities that

cause diffuse pollution – increased stock numbers and fertiliser application in rural areas or leaking pipes, road runoff and pet poo in urban areas – are not activities anybody expects to require a consent for.” Smith says the biggest policy challenge in improving freshwater quality is finding credible and workable ways of reducing this diffuse pollution. “There are some who believe our nation’s water choices are binary – it is either water quality or growing the economy,” he said. “We disagree. We clearly need limits and not all irrigation projects, for example, will pass sustainability tests. But there are many water projects that can deliver both environmental and economic dividends.”

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RURAL NEWS // SEPTEMBER 6, 2016

14 NEWS

Animal welfare key consumer issue PAM TIPA pamelat@ruralnews.co.nz

CUSTOMERS AND society have a growing expectation that animals used in food production are managed in a way that ensures their welfare, says Lindsay Burton of Fonterra. She says to satisfy this requirement retailers and consumers are seeking evidence that production systems are being operated in a way that gives them confidence the health and welfare needs of the animals are being met. Globally there is a significant and increasing interest in whether food has been sustainably produced, including animal welfare systems, explains Burton – Fonterra’s general manager of risk management. She told the recent NZ Veterinary Association

conference that the industry must now take into account consumer beliefs, with their broad spectrum of views and general societal beliefs. “People who have views on food production systems may not be consumers of your product, but may well have a view on the products you produce,” she adds. “We have regulators influencing things nationally – frequently reflecting societal beliefs and things they think need to change, and we have international regulators.” Burton adds that key customers such as Nestle also have their own requirements. These customers determine what they are prepared to put in front of their own customers. Consumer thinking is an influence – such as some of the population

believing organic milk and milk products are better than those using conventional technologies. “We as a food processor, and veterinarians as a profession, can have multiple views on a lot of the animal health and animal welfare aspects of organic production systems,” she says. “But we have a con-

sumer belief which speaks to all those and produces a viable market.” Burton says some people believe raw milk it is better for you than milk produced by conventional farming systems. However, processors have a different view – based on business risk and food safety.

“When safety risk is assessed, a significant reputational risk for the cooperative exists with this product. This is not saying the processor is right or the consumer is right; but in the processor’s view there is an unacceptable risk of harm to consumers. “You make a business

WHAT ARE THEY TWEETING? BURTON says an organisation such as Fonterra must constantly monitor social media. “You cannot afford not to do that. You then have to go through those risks – whether they are real or imagined, whether they can be managed and if you are going to manage them, how are you going to manage them.” Burton was asked how you communicate complex issues to audiences who are getting their message from social media. “You need a really good under-

standing of the audience you are trying to get your messages to. There may be people who have no tertiary qualification and limited schooling, but others are highly qualified people so you have a wide diversity of understanding. “All too frequently we risk dumbingdown our messages in the belief that people wouldn’t understand them.” There is a danger in that but there is a danger in not communicating. People need clarity and it doesn’t matter what you are talking about, you will get buy-in from intelligent people.

call; you have a consumer belief, you have a processor perspective gained from other information, and overall the call is made.” Discussing the issues of young calf welfare, Burton says people who may not be consumers of your product are gaining media attention here and offshore. “They may not consume the product, but they may influence those who do.” She says the animal rights groups had different perspectives on the issue than the farmers. For instance, on early separation of calves, farmers were saying that without that separation the survival and rearing of the calf could be compromised. The cow could also be compromised by the management of mastitis. “Was it a reputational

risk? Of course it was a significant reputation risk. Was there a regulatory response? We are seeing one right now.” There was regulatory response in terms of what is acceptable practice. There is also a cross sector response from farm to processor. The views being expressed and published in the media – whether mainstream or social media – were influencing consumer and public perceptions. Farm systems may never be able to satisfy the demands of those influencing opinion such as animal rights groups, as some have the objective of eliminating entirely the use of animals from food production systems. “But you can do your best to ensure that what you are doing in your systems meets high standards,” Burton says.

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RURAL NEWS // SEPTEMBER 6, 2016

NEWS 15

Bank closures upset rural communities PAM TIPA pamelat@ruralnews.co.nz

RURAL NEW Zealand has endured droughts, floods, snow and a dairy downturn in recent years, says Rural Women NZ vice-president Fiona Gower. Now the closure of Westpac branches will deal another blow to struggling rural towns, Gower says. She believes it is just the “tip of the iceberg” of pressures on smaller rural regions. “Some of these businesses are struggling anyway and then they will have to travel to do their banking: three quarters to an hour trip one way, taking another staff member out, is added pressure on all of them,” says Gower. “They will start looking at what they are doing.” RWNZ sees it as unacceptable that rural

communities lose these facilities. Rural towns are being hit hard, Gower says. “We would like Westpac to think about what options they could choose to keep some banking services in these towns. “Businesses are being taken away – or services. Many people, if they can travel, will travel and do business in bigger towns, taking more business out of our rural communities.” Rural firms need that business because the rural sector is the backbone of NZ’s economy. “We are concerned about the centralisation; not just the Westpac one; it is the tip of the iceberg when you talk about other services as well.” Gower was planning a Wellington trip to talk to RWNZ chief executive Penelope England about writing to Westpac

asking them to consider alternatives. She’s hoping they may leave some kind of service such as drop boxes or agencies. “I heard asked on the radio the other day, why can’t they have mobile banking? We have mobile surgical buses and mobile dentist buses, why not a mobile bank? To look

at the options would be great.” She notes protests in various regions: resident of Fairlie and Ranfurly are worried about losing their banking services. “I have had a lot of reports from my members, especially those affected by the Takaka closure – because it is a

long way from Golden Bay to Nelson. They are concerned about it as well, not only for the people doing their banking; the people are saying ‘oh well if we have to bank we will go to town’ so local businesses will miss out.” @rural_news facebook.com/ruralnews

Fairlie residents protest the impending closure of the town’s only bank.

ONLINE BANKING CHIPPING AWAY WESTPAC PROPOSES to close 19 branches throughout New Zealand, many of them in rural towns. Westpac says it will close the branches because of increasing use of online banking services. RWNZ’s concern is that while this may be correct nationally, the statistics in rural areas may not have been looked at. “For many in these rural areas online banking is not an option due to poor or non-existent internet services or cellphone coverage; the speed does not allow efficient use of internet services,” RWNZ says in its statement. “For elderly people or those not computer savvy, this too creates a problem over how to do day-today banking. They prefer to do their business face to face, as sometimes it is part of their social contact.” RWNZ says rural communities already struggle with other forms of centralisation and core services shifting to larger towns. “Once people start travelling out of their rural area to do business, such as banking, they tend to do more of their business out of town, and so the cycle continues,” it says. Rural residents are often banks’ long-standing clients who have remained loyal for years but are now being penalised. A large number still prefer faceto-face services. “RWNZ urges Westpac to listen to the concerns of rural residents and consider the needs of those living in isolated rural areas. Perhaps Westpac could look at other options rather than closure: opening fewer hours or days a week, downsizing to smaller premises or appointing an agency.” Branches flagged for closure are Kamo, Cherrywood (Tauranga), Broadway Avenue (Palmerston North), Bishopdale (Christchurch), Gardens (Dunedin), Waikanae, Carterton, Raglan, Ranfurly, Te Aroha, Fendalton Mall (Christchurch), Putaruru, Whangamata,Takaka, Stoke, Wainuiomata, Te Anau, Fairlie and Otorohanga.

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31/08/2016 10:50 am

RURAL NEWS // SEPTEMBER 6, 2016

16 NEWS

Always looking to improve NZ’s kiwifruit industry is lauded these days for its recovery from Psa. This innovative, well-organised industry has orchardists, scientists, marketers and distributors working well together. As Peter Burke reports, the industry’s people – such as Dave Goodwin, Tauranga – are committed to excellence. DAVE GOODWIN, a kiwifruit orchardist for 35 years, owns two orchards: a 6ha block with G3 gold kiwifruit and a small organic orchard with the traditional green Hayward variety. In theory, Goodwin runs a conventional G3 orchard, but alongside the main vines is something you won’t see on any other orchard -- rows of kiwifruit covered in plastic, like a greenhouse. It’s part of his constant search for new ways to gain a premium from his fruit. “This goes back to when Psa was discovered in kiwifruit in 2010. That was in Te Puke, but we knew it was likely to spread and a year later it

came into Tauranga,” he tells Rural News. “We were busy looking to see how we might control it. There were plenty of snake oil salesmen out there selling chemicals, but there was no research into how effective these were going to be. We knew Psa needed moisture for the bacteria to spread and also cold temperatures.” Knowing that, Goodwin says, it then came down to finding ways to combat it, hence the idea of putting a plastic canopy over the kiwifruit. Erecting a large plastic canopy had its challenges, the wind being the obvious one, and he had to replace the roof five times before

deciding to put hail netting over the top to make it stronger. This is one of many innovations described by Goodwin as a learning experience. The canopy helped, but other solutions came along and today covering kiwifruit solely to protect them from Psa is uneconomic. But Goodwin is keeping some under the plastic and is using the climatic environment there to trial new varieties of kiwifruit. The environment speeds up the growth of new vines and has produced a leafy canopy a year earlier than would happen outside. This coming year, Goodwin will see whether the

Dave Goodwin.

vines fruit just as quickly. “The next challenge I see is whether the plastic has a shading impact and whether there will be suf-

ficient light getting in to get the buds to burst, to get the fruit to colour up as we get toward maturity, and to promote dry-

matter in the fruit. There are elements in the fruit we don’t test as we are growing the vegetative canopy.” But given the possibility of insufficient sunlight getting through the canopy, Goodwin is trialling another idea: spreading a white reflective cloth on the ground to ‘re-use’ some of the light coming through. The other challenge is regulating heat in the tunnel house -- sometimes heat is required and sometimes it’s not -- and working out exactly how to regulate this. The aim is to see if vines can be ‘fast tracked’ into production. “Getting the crop one year earlier could be

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financially advantageous,” Goodwin explains. “When you take a vine out of production you have no income in that year and if its two years you have no income for two years. If you are re-establishing a new variety, if we can halve that time there is a financial advantage to us.” While Goodwin is yet to do the final sums on establishing kiwifruit under a plastic canopy, he says trials so far indicate it could be profitable. But the trials at Goodwin’s property don’t stop there. He’s looking at options for artificially pollinating the new G3 gold variety, which has traditionally been pollinated by bees.

RURAL NEWS // SEPTEMBER 6, 2016

NEWS 17 Organics must pay – grower ONE OF Dave Goodwin’s two kiwifruit orchards was inside the Tauranga city boundary with homes around the property. The problem of sprays in a residential area was a prompt for him to go organic. “It wasn’t a strong greenie thing; it was very much a commercial decision about whether we could grow fruit organically and get returns similar to conventional fruit; in

IN HIS quest to grow the best kiwifruit and get a premium price, Dave Goodwin heads overseas every two years on a growers’ tour to see what is happening to his fruit in the marketplace. He supports Zespri as the single-desk seller, but visits markets to make sure what he is being told is correct. “Call it a test if you like,” he says. More strategically he goes to see what other premiums are being gained by fruit in overseas markets. “We also want to see what new fruits are on the market that we haven’t seen before – not just kiwifruit but other trends as well,” Goodwin explains. “One thing I picked up years ago was when the gold pineapple was first released into Japan it took taste to a new level. “The Gold kiwifruit has followed exactly that

same story and I was able to observe that in the market and that sold me on getting onto Gold and grafting the orchard to G3,” he says. Goodwin enjoys being a part of the Zespri ‘family’, which puts a premium back to growers. He says the kiwifruit sector has a very integrated structure which works in its favour. “As growers we are in control of this industry. I think the Psa situation is evidence of how quickly the industry can mobilise if it has to. That was an adverse event; it’s just as likely we can mobilise for a good event.” He says as an orchardist he is committed to the role of evidenced-based science. Goodwin enjoys having scientists on his orchard doing trials. He says having orchard practices backed up by scientific research is crucial to him.

SUCCESSION CHALLENGE

conventionally grown kiwifruit. It comes down to profit. The organic kiwifruit market is small and Goodwin believes it should remain that way. NZ exports about 3.5 million trays of organic kiwifruit. “If the volume of organics doubled we would not achieve the premium and therefore the return to the grower would be below conventional,” he says. “We need to keep production at a level for

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LIKE MANY older NZ farmers, Dave Goodwin is facing the issue of succession. His two children aren’t interested in carrying on the business, so in a bid to hold onto his interests in the sector he is mentoring his vine manager for a greater role in the business. He is even paying her way to China and Japan to see what’s happening in those markets. “This will help her understand what she is doing in the orchard and why the quality of the fruit from this orchard is important in providing a premium,” he says. “It’s a good move and I think it goes two ways. “It will enable her to do a better job than she is now doing, and it sets her apart from her peers. In time she will have the opportunity to move up from vine manager to orchard manager. I am not aware of any other grower who is sending staff on such a visit.” Goodwin believes it’s important the industry shows there is a good career path in the kiwifruit sector and that growers treat staff well.

which Zespri can get a premium in the market, then it works for everyone. Many people are keen to buy organic product, but are not prepared to pay a premium.” Goodwin’s present organic orchard is under pressure: its proximity to urban areas makes it more profitable to sell the land for housing. But he vows to buy another orchard.

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our case we certainly could,” he explains. “We were living in that environment so it suited us to go organic. There are various factors behind it, but the primary one is about it being economic to run an organic orchard.” There are swings and roundabouts in the costs of going organic. The fruit are smaller but in the market they get about $2 more per tray than for

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RURAL NEWS // SEPTEMBER 6, 2016

18 NEWS

Experiment with produce – foodie pamelat@ruralnews.co.nz

FOOD PRODUCERS and growers should try out new lines of produce, says Nadia Lim, co-founder for My Food Bag. The Masterchef NZ 2011 winner says she looks at all the different products from overseas

Lim says the customer of the future will demand more choice – of different cultivars, heritage crops and a choice of spray-free, organic or conventionally grown. Lim told growers at the Horticulture NZ conference to be thought of as leaders they must stay ahead with creative ideas.

and thinks that surely New Zealand can grow some of these. My Food Bag is a highly successful business delivering four or five nights weekly its customers’ dinner recipes and all ingredients. It hit $100 million revenue last year in only its third year of business.

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“I reckon NZ is the smartest country in the world. Kiwis have the best ideas, I think because we are on the edge of the world. It amazes me and makes me so proud.” Asked how growers could help My Food Bag, Lim says the company loves introducing customers to new products – new lines of produce. Sometimes they come across an unusual product – for instance a zebra tomato – but often they can’t get enough volume. Because of the volumes through the business they now need to carefully plan recipes in advance and tell growers in advance when the product is needed, depending on how long it takes to grow. That can be tricky in recipe planning, she says. Asked how growers could assist, Lim said by really good communication on what new products they have that consumers may want to try. “Let us know about them because we don’t always know what new things are out there,”

she says. “Then give us very clear guidelines on when it will be ready and make sure it will be ready at that time. That of course can be tricky because weather can come into play: if there is a storm then suddenly it is all gone. “Because our recipes have to be planned far in advance, we need to know when it will be available. We can’t just have someone come up and say ‘we’ve got X tonnes of this product; can you take it?’ ”

She says My Food Bag is a great way to trial new

Nadia Lim

products on people. “We will test it out in the test kitchen and see what we can do with it, then put it in the bags; it is a great way to get feedback from customers. They will tell us whether they like it or not or whether it is too weird or whatever.” Another big trend is turmeric; she is not sure if that can be grown here. “That will be something that explodes; I think it will be the next kale.” Lim says lots of people want organic but they can’t afford it. Her advice to people who want to eat organic and see it become more commonplace is, start with one or two produce lines that are organic. “Hopefully we can increase the demand for it and once the demand is there the farmers will grow more organic.”

TARGETTING AFFORDABLE FOOD

s THE RECENTLY released Bargain Box is targeting a whole new demographic, says Lim. My Food Bag has done well but it is beyond the budgets of some people. Lim says they don’t want to make tasty nutritious food inaccessible to people who cannot afford it. Auckland University did a study supplying food bags to about 12 families on low incomes and not overly healthy families and the results were very positive. They said their families were cooking more and trying all sorts of new vegetables they had never

thought of trying. My Food Bag has guidelines and criteria for the recipes which they are very strict on. “We have to include at least three different varieties of vegetables in each recipe. That’s a minimum number,” Lim says. “There should be at least two different colours and the meal, when you look at your plate, should be half vegetables, a quarter protein and a quarter carbohydrate.” They also take Ministry of Health guidelines on portion sizes.

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RURAL NEWS // SEPTEMBER 6, 2016

NEWS 19

Rural mental health scheme gains accolade A NEW Zealand rural mental health scheme has won an international award. GoodYarn has run mental health workshops for at least 800 farmers and rural professionals since it was set up earlier this year. Its work was recognised, late last month, when it was named joint Best Mental Health Promotion/Illness Prevention scheme at the Australia and New Zealand Mental Health Services conference. The workshops help rural professionals and farmers understand mental health and wellness. Participants get tips on how to stay healthy, recognise stress in others and respond effectively. The scheme was developed by DairyNZ and WellSouth – the latter a primary health organisation in Otago and Southland – as part of the Transforming the Dairy Value Chain (TDVC) Primary Growth Partnership. It is run nationwide by organisations including Farmlands and branches of the Rural Support Trust. DairyNZ chief executive Tim Mackle says the award is great recognition for the

scheme. “The GoodYarn workshops have been particularly useful in supporting farmers through recent seasons where reduced milk prices have put pressure on our industry,” says Mackle. “Some 400 people attended DairyNZ’s GoodYarn workshops and another 400 attended the workshops led by other organisations. This has led to rural professionals and farmers being more confident in talking about mental health and referring farmers who need support.” More TDVC-funded workshops are coming in September and October for rural professionals. GoodYarn was developed by Wellsouth, with DairyNZ working nationwide to increase capability and reach to farmers. The scheme is now offered via a licence so organisations can train their own staff. WellSouth project manager Louise Thompson says her organisation is honoured by the success, which she put down to great consultation in its development. “It’s important that everyone working in our rural communities can

recognise when they need help and know help is available,” MPI directorgeneral Martyn Dunne says. “We are proud to be able to support such a great initiative helping

in a way that works for the rural community. This award is fitting recognition for an initiative that truly has peoples’ wellness and wellbeing at its heart.” The TDVC programme

is a seven-year, $170 million scheme seeking to create new dairy products, increase on-farm productivity, reduce environmental impacts and improve agricultural education and health.

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GOLDEN YEAR FOR KIWIFRUIT GIANT KIWIFRUIT GROWER and packer Seeka Kiwifruit Industries has posted a net profit after tax of $7.1 million for the six months to the end of June. The result is up 92% on the $3.7m reported for the same period last year. The Te Puke company is the largest kiwifruit grower in New Zealand and Australia and the second largest packhouse operator. The company says the result reflects the end of the avocado selling season, the first year’s business operations for Seeka Australia and record NZ kiwifruit volumes. Chief executive Michael Franks says the result was pleasing and followed the fourth year of double digit growth. The first half of the year was as usual the most profitable, coinciding with the peak of the harvest, and was based on turnover of $151.26m, Franks says. Last year’s total profit was $4.27m. Seeka also announced a higher dividend of 10c per share, up from 9c per share in the corresponding period last year.

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RURAL NEWS // SEPTEMBER 6, 2016

20 NEWS

Steering NZ through political winds of change MIKE PETERSEN

SUCCESS FOR the New Zealand primary sector depends on exporting higher-value products to the world’s most affluent consumers.

NZ exporters understand this well. The reality for NZ is that our small domestic market of 4.6 million people can only consume about 10% of the food we produce. Access to wealthy consumers

remains a key priority if NZ is to realise its opportunities. Value creating strategies are at the core of nearly every NZ primary sector exporting business. Meeting the desires

of discerning consumers with high-value products requires access to highpaying markets. Importantly, NZ has continued to lead the world in opening markets through a wide range of trade and

equivalence agreements to increase the connectedness of our exporters. At a time when there are growing efforts to export higher-value products to higher-value markets, new challenges

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are emerging. The world has become an increasingly complex place. Political change is favouring those who advocate for more inward looking and nationalist policies. Many are calling this a ‘right wing’ agenda, but that is too simplistic. There are examples of both extremes of the political spectrum arguing for more nationalistic outcomes. The risk is that NZ, as an exporter, could suffer collateral damage if such policies prevail. The politician’s call to “make America great again” is no different from that of pro ‘Brexit’ campaigners who swayed the vote to leave Europe. ‘Brexit’ advocates argued for greater independence by unshackling themselves from the bureaucracy of Europe. Many other countries have politicians championing the same message. The big question for NZ is ‘what effect will this have on our efforts to grow our connectedness in world markets?’ The most obvious challenge we now face is the ratification of the agreed and signed text that makes up the Trans-Pacific Partnership (TPP). NZ was one of the founding partners of TPP. The benefits of integrating the economies of the 12 member countries covering 40% of the world’s GDP and 800 million people in the fastest growing region on earth are significant. TPP will not enter into force until the two largest economies of Japan and the USA ratify this agreement. Statements in the US presidential election by Republican and Democratic candidates suggest the chances of TPP being ratified look remote. While ratification looks challenging at present, the TPP is about more than just trade: the role of the US in the Asia Pacific region is at stake. Failure to ratify TPP in the US would effectively see this world superpower walk away from the incredible growth opportunities on offer in

Mike Petersen

the Asia Pacific region. At a time when the chances of a US-Europe trade agreement look increasingly unlikely, TPP is a prize that companies in the US are desperately seeking to obtain. The ‘Brexit’ decision by the UK to leave Europe is another challenge for NZ. Nothing will change in the short term; current market access arrangements with Europe’s 28 member countries remain in place. However, much effort will be required to secure acceptable market access into the UK once it invokes ‘Article 50’ to start leaving Europe. The Lisbon Treaty anticipates a two year period to complete the exit of a country from Europe. However, more realistic is the expectation that it could take up to 10 years. For NZ’s primary sector and our exporters, the most challenging aspect of the political winds of change is uncertainty. Market and exchange rate variability flow directly to farmers and growers and the current level of volatility is incredibly difficult to overcome. Creating higher-value goods and having access to a wide range of affluent consumer markets is vitally important to help reduce volatility in an increasingly inward looking world. The question is whether today’s rhetoric will continue beyond the current election cycle in the US and other countries, and the completion of the ‘Brexit’ process in the UK. Skepticism is widespread among the peoples of the world about the benefits of increasing interconnectedness. The challenge for NZ is to maintain its relevance in the winds of change. As a nation reliant on the world for a living, our future depends on this. • Mike Petersen is the New Zealand special agricultural trade envoy.

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RURAL NEWS // SEPTEMBER 6, 2016

22 MARKETS & TRENDS MARKET SNAPSHOT Me at

BEEF MARKET TRENDS

No rth Is lan d C h an g e c /kg

c /kgCWT

L as t We e k

S o u th Is lan d C h an g e c /kg

L as t We e k

L amb - PM 16.0kg

+5

5 .7 8

n/c

5 .4 3

S te e r - P2 300kg

n/c

5 .6 0

n/c

5 .4 0

B u ll - M2 300kg

n/c

5 .4 0

n/c

5 .2 0

Ve n is o n - AP 60kg

n/c

8 .2 0

n/c

8 .1 5

LAMB MARKET TRENDS LAMB PRICES

BEEF PRICES c/kgCWT NI

2 Wks A go

P 2 Steer - 300kg

n/c

5.60

5.60

6.10

n/c

5.40

5.40

5.90

P 2 Co w - 230kg

n/c

4.40

4.40

4.80

M Co w - 200kg

n/c

4.40

4.40

4.80

Lo cal Trade - 230kg

+5

5.85

5.80

6.00

P 2 Steer - 300kg

n/c

5.40

5.40

5.80

M 2 B ull - 300kg

n/c

5.20

5.20

5.30

P 2 Co w - 230kg

n/c

4.30

4.30

4.30

M Co w - 200kg

n/c

4.30

4.30

4.20

Lo cal Trade - 230kg

n/c

5.55

5.55

5.90

No rth Island 16.0kg M Lamb Price

$5.5 $5.0 29-Jul

Last Year 29-Aug

This Year 29-Sep

40k

29-Oct

150k

This Year

100k

29-Jun

29-Jul

29-Aug

29-Sep

5.71

5.46

5.78

5.73

5.48

P X - 19.0kg

+5

5.80

5.75

5.50

P H - 22.0kg

+5

5.81

5.76

5.51

M X1 - 21kg

n/c

2.80

2.80

3.30

YM - 13.5kg

n/c

5.43

5.43

5.31

P M - 16.0kg

n/c

5.43

5.43

5.33

P X - 19.0kg

n/c

5.43

5.43

5.35

P H - 22.0kg

n/c

5.43

5.43

5.36

n/c

2.68

2.68

2.90

M X1- 21kg

N ort h Island Weekly Lamb Kill

5yr Ave

22 Jun

29-Oct

S outh Island Weekly Cattle Kill

30k

This Year

29-Jun

29-Jul

29-Aug

29-Sep

Last Year

20k

k 29-May

100k k 22 May

29-Jun

29-Jul

29-Aug

29-Sep

22 Jun

$4 .5 $4 .0 29 -May

$6 .0

29 -Jun

29 -Jul

Last Year

29 -Aug

This Year

29 -Sep

29 -O ct

S outh Island 300kg Steer Price

95CL US$ /lb NZ$ /kg

$5 .5

UK Leg £/lb

Change

Last Week

2 Wks A go

Last Year

5yr A ve

-2

2.18

2.20

2.66

2.31

-12

6.57

6.69

8.86

6.47

D e mand Indicator - US 95CL B eef

$3.00

22 Jul

22 Aug

22 Sep

22 Oct

Export Market Demand

29-Oct

Export Market Demand

5yr Ave

22 Oct

S outh Island Weekly Lamb Kill

$5 .5 $5 .0

This Y ear

22 Sep

This Year

10k

No rth Island 300kg Bull Price

22 Aug

200k

29-Oct

$6 .0

Last Year

22 Jul

5yr Ave

Last Year

$5 .0 $4 .5 29-May

5.76

300k 5yr Ave

Last Year

+5

k 22 May

k 29-May

$5 .5

2 Wks A go

+5

50k

$6 .5

$6 .0

M utto n

Last Year

20k

S outh Island 16.0kg M Lamb Price

SI Lamb

Last Week

200k

5yr Ave

5yr Av e

M utto n

Change

P M - 16.0kg

250k

N ort h Island Weekly Cattle Kill

60k

29-Jun

c/kgCWT NI Lamb YM - 13.5kg

Slaughter

Slaughter

$6.0

$4.5 29-May

Last Year

M 2 B ull - 300kg

SI

$6.5

Change

Last Week

Change

Last Week

2 Wks A go

Last Year

n/c

1.80

1.80

1.58

1.86

-5

8.05

8.10

8.65

8.49

NZ$ /kg

D e mand Indicator - UK Leg Price

£2.50 £2.00

Last Year

£1.50

This Year

£1.00 29-May

$2.50

5yr A ve

29-Jun

29-Jul

29-Aug 29-Sep 29-Oct

$5 .0

$2.00

$4 .5

5yr Ave

$4 .0

Last Year

$3 .5 29 -May

This Y ear

29 -Jun

29 -Jul

29 -Aug

29 -Sep

Procurement Indicator Last Year

$1.50 29-May

29-Jun

This Year

29-Jul

29-Aug

29-Sep

29 -O ct

Procurement Indicator $8 .5

Change

2Wks A go

3 Wks A go

Last Year

% Returned NI

-0%

82.2%

82.2%

67.70%

73.6%

% Returned SI

+1%

79.1%

77.7%

59.8%

66.3%

No rth Island 60kg S tag Price

$8 .0

$7 .5 $7 .0

5yr Av e Last Year This Year

$6 .5 $6 .0 29 -May $9 .0

29 -Jun

29 -Jul

29 -Aug

29 -Sep

29 -O ct

S outh Island 60kg Stag Price

85%

5yr A ve

2Wks A go

3 Wks A go

Last Year

5yr A ve

% Returned NI

0.4%

72.7%

72.2%

64.2%

72.2%

% Returned SI

0.4%

67.7%

67.3%

62.4%

70.7%

P rocu rement Indicator - North I. 80% 70% 60%

P rocu rement Indicator - North I.

Last Year

50% 1-Jul

80%

1-Aug

This Year

1-Sep

1-Oct

75% 70%

Last Year

65%

This Y ear

60% 29-May

29-Jun

29-Jul

29-Aug

29-Sep

29-Oct

$8 .5

P rocu rement Indicator - South I.

80% 70% 60%

$8 .0

80%

$7 .5

P rocu rement Indicator - South I.

Last Year

50% 1-Jul

75%

$7 .0

5yr Ave

70%

$6 .5

Last Year

65%

$6 .0 29 -May

Change

29-Oct

This Year

29 -Jun

29 -Jul

29 -Aug

29 -Sep

29 -O ct

This Year

1-Sep

1-Oct

Venison Prices Last Year

60% 55% 29-May

1-Aug

Change

Last Week

2 Wks A go

Last Year

5yr A ve

NI Stag - 60kg

n/c

8.20

8.20

7.50

7.37

SI Stag - 60kg

n/c

8.15

8.15

7.40

7.58

This Year

29-Jun

29-Jul

29-Aug

29-Sep

29-Oct

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 // SEPTEMBER 6, 2016

MARKETS & TRENDS 23 NEWS

PRICE WATCH

BEEF: The export beef trade has been

to blame for a decline in bull and cow schedules lately. The relative strength of the NZ dollar coupled with steadily declining in-market prices through the US have eaten into processors margins, causing many to drop prices. Local trade processors have been more aggressive in regards to slaughter pricing, which has provided enough direct competition with prime cattle to keep prices in this area steady. The South Island local trade market has peaked for now, with processors booked up with enough numbers to keep them satisfied. However there appears to be little depth to numbers beyond this current wave, and competition should firm through September. General production levels have been mixed. While numbers coming out from beef farms haven’t been particularly high, there are still plenty coming out of dairy regions where cashflow or feed has been an issue. Store markets in both the North Island and South Island are performing well, with a lack of numbers underpinning prices. Relative to schedules, prices are above previous seasons. The four-day calf trade is winding down through the South Island, where mid-range Friesian bulls are making $80-$90.

INTERNATIONAL BEEF: The US domestic beef market has gradually

WOOL PRICE WATCH

edged lower recently. The low pricing of pork and poultry, coupled with uncertainty around the effects of Brazilian exports on the market and the trend of using domestic beef for grinding have all acted to suppress interest. This is all despite the fact that the imported beef supply is tight, driven by Australian beef production being back by around a fifth on its usual level. early season kill are becoming more noticeable as the season progresses. Numbers coming out for slaughter have fallen considerably over the past few weeks, and processors now find themselves in a position where they are struggling to meet customers requirements. This has generated some competitive pressure in the North Island, dragging slaughter prices upwards. South Island production for this time of the year is also at the lowest level recorded since AgriHQ records began in 1990, however this has not resulted in any significant lift in schedules as processors are aware that there are simply not enough numbers on that can be enticed out by better pricing. Negotiations are underway for the chilled Christmas trade, however there is still much uncertainty surrounding the outcome of these talks. This is preventing meat companies from releasing supplier

Change

25-A ug

18-A ug

Last Year

Indicato rs in US$ /kg

Co arse Xbred

-3

5.02

5.05

4.78

Fine Xbred

+4

5.39

5.35

5.26

-

-

-

6.25

Lamb

-6

9.22

9.28

10.50

M id M icro n

Indicato rs in NZ$

Lamb M id M icro n

CXI

FXI

650

18-A ug

Last Year

Co arse Xbred

+1

3.68

3.67

3.78

Fine Xbred

+6

3.95

3.88

4.42

-

-

-

-

+1

6.75

6.74

6.87

Wo ol Indicator Trends CXI

500

FXI

450

LI

350

Oct

Dec

Feb

Apr

300 Aug

Jun

Last Year

600

Oct

Dec

Feb

Apr

Jun

C o arse Xbred Indictor in US$

C o arse Xbred Indicator

650

25-A ug

400

550 450 Aug

Change

550

LI

750

450 This Year

400

550 350

500 450

Last Year

Oct

Dec

Feb

Apr

Jun

300

Aug

contracts for this period. It appears the store lamb trade through the North Island is essentially over for the season. Few lambs are still available for trading, and while interest in still strong, buyers are tending to be more selective than

88

The Rabobank difference

93

Wo ol Indicator Trends

850

SHEEP: The effects of the heavy

Overseas Wool Price Indicators

%

The average time our Rural Managers have worked with us

Oct

Dec

Feb

Apr

This Year

Jun

Aug

before. Trades through the South Island have been limited for a while now, though prices have been impressive enough for some to send stock to the saleyard rather than sell directly to processors.

of our Rural Managers own or grew up on a farm

%

100

%

of customers would definitely recommend Rabobank*

of Rabobank deposits directly fund NZ agribusiness

*Based on NZ farmers surveyed in the TNS Brand Health Survey 2015.

the average time our Rural Managers have worked with us years of global agricultural history

global agribusiness research analysts sharing market outlooks

RURAL NEWS // SEPTEMBER 6, 2016

24 AGRIBUSINESS

‘Clean and green’ not so important – expert PAM TIPA pamelat@ruralnews.co.nz

CONSUMERS WILL buy New Zealand produce based on taste, price and convenience; the ‘clean, green’ image may not be so much a factor, says a visiting European expert. Asked by Rural News if NZ had the clean, green image it hoped it did, Rabobank’s senior fruit vegetable and floriculture analyst Cindy van Rijswick said she was “not sure about that”. “Maybe compared to a few other countries, but I don’t think that’s what drives people choosing a certain product,” she says. “When people buy products they look at the taste, price and convenience. Those are the most important consumer drivers.” Visiting recently from Rabobank’s global headquarters in the Netherlands, van Rijswick says NZ’s fruit and vegetable sector is well positioned to take

advantage of opportunities arising from changing international horticulture markets. There are not huge opportunities in Europe, however, except perhaps for kiwifruit, apples and berries. The opportunity for NZ is global. “It would be good to diversify markets as there is so much competition in the world globally. A lot of companies are already doing that.” Rabobank has not done specific studies on whether NZ’s horticultural boom will last. And she warns that whenever there is a boom, people always start expanding their businesses, bringing a lot more supply. “NZ should definitely be aiming for the higher end market. There is not much growth in the lower end market; all the growth is in the higher end. “The consumer trends in Europe are similar to what is happening in the US and will continue in Australia and NZ. People are shifting to higher value, premium foods.”

Europe has many discount supermarkets taking market share but she does not know whether they will enter the NZ market because it is a small market for them. “What you do see is online retailers and that will happen here. It depends on the type of products. Online provides a lot of opportunities for selling products. Whereas NZ producers have only a few options for selling, [by selling online] domestically you are not dependent only on the two largest retailers.” The consumer trends are very varied. “Some days they will buy a lot of cheap stuff, others expensive stuff. A lot of new products are coming on the market and this trend will only speed up.” Do we have things to learn from Europe in production techniques? “I think actually NZ produces food very well; you are very adaptive to new technology. “The export growers such as apples

and kiwifruit in particular are very well on top of it. The vegetables growers may have labour and cost saving technologies they could take from Europe.” Where do we need to learn? “Actually I don’t think there is so much to learn. I think NZ is doing a good job.” Efficiency may be where we could make the most advances, says van Rijswick, especially in marketing the products. During this, her first time in NZ, she sees positive thinking here in the horticulture sector.

Rabobank vegetable analyst Cindy van Rijswick.

“In Europe there is a little less positivity; it is good to be in such a positive environment.”

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RURAL NEWS // SEPTEMBER 6, 2016

AGRIBUSINESS 25

Good news for NZ produce in Europe EUROPEAN CONSUMPTION growth of ‘non-staple’ fruits like kiwifruit and branded premium apples represent good news for New Zealand’s horticulture sector, says Cindy van Rijswick “Indeed, out of all southern hemisphere exporting countries, NZ is the best positioned to take advantage of this,” she says. “NZ has a good reputation for high-quality fruit, efficient growers and strong exporters.” This trend to premium products has also helped particularly strong growth

in the berry sector (fresh and frozen), van Rijswick says. Significant growth is foreseen over the next five years. The health attributes of berries and their versatility as an ingredient in smoothies and dairy products is also behind the upswing in demand, she says. “We are also forecasting a revival in the demand for stone fruit,” she says, driven by investment in new varieties, which is expected to ramp up demand for plums and peaches from fairly

ASIAN OPPORTUNITIES CINDY VAN RIJSWICK says while demand from Asia for fruit and vegetables is increasing, Europe is not expected to become a significant supplier into the Asian market. The opportunities in Asia for NZ horticulture however, are very good. “The misfit between European varieties grown, on the one hand, and consumer preferences in Asia, on the other, is proving to be an impediment for European fruit and vegetable exports into Asia,” van Rijswick says. “For example, the apples grown in northern European countries are not the super sweet and very colourful ones preferred by Asian consumers. “In addition, the culture of doing business and the fact that governments in Asia have not granted access to certain European fruits from certain countries are also obstacles. Trials in exporting apples, pears and bell peppers have not resulted in large export volumes yet.” Given NZ’s proximity to Asia however, it could certainly be a growing market for the NZ horticultural sector to tap into, she says. “NZ is well positioned to tap into the Asian market. NZ exporters have been able to diversify their exports over a large number of countries in Europe, which makes them very resilient. Resilience and robustness are becoming increasingly important with the uncertainty and volatility we see globally. High dependence on only one market is risky in today’s fickle global geopolitical and economic climate.” Ms van Rijswick says she does not foresee Europe and NZ becoming fierce competitors in fresh fruit and vegetable export markets; however the frozen and processed market will remain competitive. ”Especially for frozen processed potatoes, which is Europe’s second largest fruit and vegetable export product,” she says.

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stagnant levels over recent years. “Another high growth category is avocados; this is a global phenomenon, just like berries.” In contrast, Ms van Rijswick says, ‘staple’ fruits and fresh vegetables are expected to show stable and, in some cases, declining growth

in the coming five years, as fresh-cut and frozen fruit and vegetables gain market share from the whole fresh and preserved categories due to their ‘value’ proposition. Growth in European consumption of ‘non staple’ fruits represents good news for New Zealand brand kiwifruit and apples.

RURAL NEWS // SEPTEMBER 6, 2016

26 AGRIBUSINESS

PGP gaining traction – Guy PAM TIPA pamelat@ruralnews.co.nz

PRIMARY INDUSTRIES Minister Nathan Guy says an independent study shows Primary Growth Partnerships (PGP) can generate $6.4 billion by 2025. He says when National

became the government the primary sector said it needed more R&D. PGP has been a 50/50 initiative, but is now funded 40% by the Ministry for Primary Industries (MPI) and 60% by industry. “We’ve got wonderful examples where PGP is

starting to add value,” Guy says. “For instance, the Steepland harvester – a machine that works on steepland slopes – we can now export that machinery and technology around the world.” He refers to huge excitement about

transforming the dairy value chain – from farmgate to processing. Mozeralla cheese, which used to take six weeks to develop, can now be made in hours. “There are many other examples across the supply chain where PGP is adding huge value.”

The $31.39m ‘Sheep – Horizon Three’, in partnership with Spring Sheep dairy, is the 22nd PGP scheme. Guy told about visiting the New Zealand primary sector bootcamp at Stanford University this year with Scottie Chapman, chief executive

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of Spring Sheep, and MPI director-general Martyn Dunne and others. The Te Hono bootcamp brings together chief executives from the primary industries sector. The brainchild of NZ Merino chief executive John Brakenridge, it explores new ways of thinking and doing for the sector. “That is an opportunity to look back at our little country that is leading the charge in R&D and creating value for our provenance story,” Guy says. “We feed about 40 million; we have opportunity to move more of our products out of commodities into value add, getting the

consumer at the centre.” The Transforming the Dairy Value Chain PGP Guy referred to is the largest, the government paying $84.6m and industries $85.7m. DairyNZ and Fonterra are leading the PGP programme aimed at creating new value-add products, increasing onfarm productivity, reducing environment impacts and improving agricultural education. Other achievements include improving cream to meet restaurant and bakery customer needs in Asia, and a dairy-based milk powder ingredient clinically proven to enhance sleep. @rural_news facebook.com/ruralnews

The Minister for Primary Industries Nathan Guy, Minister for Food Safety Jo Goodhew, MPI director-general Martyn Dunne and Auckland Airport chief executive Adrian Littlewood at the site of the new building.

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A MULTI-PURPOSE facility to be built next year for the Ministry for Primary Industries (MPI) at Auckland Airport will consolidate most of the ministry’s Auckland services under one roof. Located at The Landing, close to the terminals, it will have office space, storage and warehousing and kennels for up to 80 dogs. It will bring together passenger and cargo clearance, export certification, compliance and inspection, fisheries operations and the national detector dog centre into one location. MPI director-general Martyn Dunne says the new facility will be more efficient for customers and stakeholders. “In protecting New Zealand from biological risk, we have a great interest in the international passengers entering through Auckland,” he says. “In the 12 months to June 30, 2016 nine million international passengers passed through Auckland Airport. Our detector dogs screen 100% of all incoming international passengers at peak times, so having our dog services located close to the airport makes good sense. “We will have more space and better facilities to train our detector dogs, with simulated passenger halls and a mail centre. This helps ensure our dogs are better equipped. “Around 400 of our Auckland staff now at three sites will move to the new premises in late 2017 when construction is expected to finish.”

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RURAL NEWS // SEPTEMBER 6, 2016

28 OPINION EDITORIAL

EDNA

Just the facts ma’am AN AMUSING memo circulated by a few social media-savvy farmers last week nicely summed up the rural-urban divide: ‘Farming. noun [farm-ing]: the art of losing money while working 400 hours to feed people who think you are trying to kill them.’ A growing portion of society is so disconnected from the reality of how food is produced that they are susceptible to the misinformation and lies about farming and food spread by vested interest groups and amplified by the internet. How else would an idiot like TV chef ‘Paleo Pete’ Evans find an audience for his ridiculous and dangerous fantasies, including this one: calcium-rich dairy products ‘can remove the calcium from your bones’? How else could anti-farmers like Mike Joy and Gareth Morgan get an open microphone to link the Hawkes Bay drinking water contamination problem to dairy farming without supplying a shred of evidence? As Federated Farmers president William Rolleston said in response, the closest dairy farm to the Havelock North water supply was some 40km away. The Feds have done the right thing trying to redress the balance in this case by calling for “good old common sense”, but it will be viewed by cynics as a defensive statement from the farming establishment. It is also reactive and after the fact. By then, Joe Public had heard the knockers on the radio and in many cases believed them. They didn’t know any better. Nor did the Paleo Pete sympathisers. Maybe they should have, but the reality is they often don’t. Still, no point grumbling about it. How best to fix the problem? An Australian rural lobby group, AgForce, may be onto something by hiring one of Australia’s most popular ‘mummy bloggers’, Jody Allen, who has nearly half a million online followers. Her audience is mostly urban mums who make food buying decisions based, at least in part, on the trusted advice Jody gives on her The Stay-At-Home Mum Facebook page. AgForce has bypassed the mire of daily media and gone straight to the consumer and, crucially, is utilising an independent voice with a huge urban audience to educate consumers about food production. Smart.

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

“But why do you worry about rain? – I thought you were dry stock farmers!”

THE HOUND Hypocrite THE HOUND’S old mother once gave this old mutt sage advice about people living in glasshouses not throwing stones. Your old mate was reminded of his mother’s wise words when he saw an opinion piece in a regional rag supposedly penned by Winston Peters. It was yet another fictional diatribe in a last-ditch effort to get Silver Fern Farms’ shareholders to vote against the merger with Shanghai Maling (yet another fail for Winny). He claimed “SFF’s management and board have dodged every debate with [NZ First] about their behaviour.” This coming from the very same man who has refused, evaded and ignored, for months, questions put by Rural News about NZ First’s involvement/relationship with the secret cabal of antagonists who tried, and failed, to de-rail the SFF merger.

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

Who’s responsible? THIS OLD mutt is perturbed to hear of Lincoln University’s precarious financial state. Apparently things are pretty bad, with rumblings that the famous agriculture university could be closed down in a year or so if things don’t turn around. It is unbelievable that this key agricultural learning institution has been allowed to get into such a state. Serious questions need to asked of those responsible for keeping an eye on such things – Lincoln’s governing body, its present and former chancellors and a number of ‘consultants’ who seem to have done extremely well out of Lincoln over the past few years, while the institution itself has been going down the financial gurgler.

Man ban

Bulls$%t!

YOUR CANINE crusader reckons it’s no surprise to see a university come up with more PC nonsense, but suggests the latest missive out of Princeton University in the US will take some beating. Princeton’s human resources department has instructed its employees to stop using the word ‘man’ and substitute such alternatives as ‘human being’, ‘individual’ or ‘person’ in all speech and correspondence so as to be more gender inclusive. The directive suggests: layman becomes layperson; mankind, humankind; workmanlike, skilful; manmade, artificial, handmade, manufactured, synthetic; to man, to operate or staff; man hours, person hours or work hours; forefathers, ancestors. Your old mate wonders when the Green Party will pick up this policy.

YOUR old mate has heard of the saying, ‘Lies, damn lies and statistics’ but he reckons it should now be changed to, ‘Lies, damn lies and NZ First media statements’. The NZ First spokesman on Maori Affairs, Pita Paraone, who may well be invisible and ineffective, seems to be sticking to the party line of ‘blame the Chinese’ for everything wrong in the world. In a recent media release Paraone claimed, “Miraka, a Maori dairy processing company, has had to alter its name in order to trade in China because ‘Miraka’ has already been trademarked”. However, when Rural News asked Miraka how the company was handling this problem and what it had changed its name to in China, managing director Richard Wyeth said, “No it’s not true. We have not had to change our name in China.”

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ABC audited circulation 81,004 as at 31/03/2016

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

RURAL NEWS // SEPTEMBER 6, 2016

OPINION 29

Make your vote count When you exercise your vote in the local body elections in October, make it count towards candidates who understand the rural community, says Waikato Federated Farmers provincial president Chris Lewis. IT IS important that farmers get out and vote for candidates who can better represent them. If we don’t it makes the job of Federated Farmers much harder. The sad truth is the farming community is stuck with an old system of capital-based rateing versus the central government’s existing tax on earnings. Comparable to other residents, farmers pay a lot of money to fund community services. It feels like we’re the ATM machines that keep councils’ lights on. As Federated Farmers has argued for many years, land and capital value rates tend to allocate a larger portion of costs for council activities and services to owners of high-value properties. High country farmers, for example, may own thousands of hectares, which leads to a higher valuation. However, profitability is lower due to current commodity prices. Competition amongst buyers drives prices up, including overseas buyers after their next prestige asset. People may be against

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Fresh ideas, new direction! Get out into the world and discover the fantastic opportunities that exist for NZ farmers! overseas ownership, but by voting for a council which increases rates or forces excessive conditions upon on these farmers, their cashflows are eroded, making the properties unaffordable to own. With all of this in mind I’ve put together tips for farmers and common sense advice for potential candidates. Top tips for voters: ■ Understand why your preferred candidate is standing and what they stand for; oneissue activists don’t make great team players. ■ Even though some legislation is regulated at central government level, regional councillors have an important role to play in

influencing the development and implementation of regional plans. ■ Councillors have the freedom to advocate for innovative approaches to maintaining or improving the local community. ■ Councillors should accept and recognise that farmers pay more than their fair share of rates. Top tips for prospective councillors: ■ Challenge your council to undertake a rating review with targeted rates and uniform charges. ■ Implement hard caps on annual rates increases and focus on reducing and prioritising spending. ■ Two-way informed

communication is the key to meeting community expectations. ■ Where changes in farming practises are required, give farmers realistic compliance timeframes. ■ Improving water quality is a local community discussion. Spend upfront in getting the science right to identify the issues correctly and accurately. Put emotions aside. ■ Develop policies and methods that are flexible to allow onfarm innovation and provide certainty for decisions and investments. Remember, every vote counts. If you don’t exercise your right to vote, don’t complain about your rates and councils who don’t play ball.

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30 OPINION NZ PRESS COUNCIL: CASE NO. 2527 ADJUDICATION OF the NZ Press Council on the complaints by John McCarthy against Rural News: Case No: 2527 The NZ Press Council recently held a hearing on a number of complaints made against Rural News by John McCarthy. The complaints were made against two ‘Hound’ columns and one article Trojan ‘Dragon’ aims to stymie joint venture published on May 24, 2016. All the articles covered aspects of the sale of Silver Fern Farms (SFF) to Chinese investor Shanghai Maling and a “consortium of political, industry and business interests” that was seeking to overturn the SFF-Shanghai Maling deal. Mr McCarthy complained that the stories’ linking of him, Meat Industry Excellence (MIE), John Shrimpton, NZ First and some SFF shareholders in a ‘consortium’ was “incorrect and unfair”. Mr McCarthy conceded that Rural News was correct to report that he was a director of Shrimpton’s Glenthorne Station. However, contrary to the story, he claimed, “we have both been careful to keep this separate” and “he had not discussed the SFF deal with [Shrimpton] or been privy to any discussions about the issue”. He added that the reporter “at no stage” sought comment from him. Mr McCarthy also claimed ‘The Hound’ columns painted him to be “anti-Chinese and racist” and he found it offensive that Rural News draws links between his statements and those of a white supremacist group. In response Rural

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News argued that MIE, NZ First and the Shrimpton group shared the same worldview on meat industry matters and issued press releases “usually in concert”. Said Rural News, “Mr McCarthy’s claims that the parties have no association beyond a common worldview are either disingenuous or plain ignorant.” The paper also added that the May 24 article revealed, for the first time, Mr McCarthy’s formal, commercial relationship with Shrimpton, and this was relevant because both were lobbying to stop the SFF deal. Rural News also pointed out that ‘The Hound’ columns stated facts, which were raised “to highlight the hypocrisy of those two parties [NZ First and Shrimpton] lobbying to prevent foreign ownership of a New Zealand meat company” and also demonstrated that the white supremacist group National Front had supported Mr McCarthy’s view on a Chinese takeover of SFF. The Press Council did not uphold the complaints against ‘The Hound’ columns, noting that Rural News, while undoubtedly being critical of Mr McCarthy, was careful with its language and reported fact. Mr McCarthy’s complaint about the article was that it was inaccurate when it alleged he, Shrimpton and New Zealand First were secretly involved in efforts to overturn the SFF deal with Shanghai Maling. The story, Mr McCarthy claimed, was therefore unfair, as the claim was unproven and he was never approached

for balancing comment. Rural News accepted that balancing comment was never sought, because the story didn’t say what the complainant claimed. It pointed out that the story did not claim Mr McCarthy was involved with the “eclectic consortium” but revealed that Mr McCarthy was “closely aligned to Shrimpton” and never specified who, of those named in the story, were part of the alleged consortium. So the question became, did a reasonable person reading the article imply Mr McCarthy was part of the “group” or “consortium” unveiled by this story? The council believes it did. It says the purpose of the story was to reveal the existence of a group working together to oppose the deal, and it discussed Mr McCarthy amidst those. In response Rural News said the relationships between the parties were unclear until this report, but are “all either on public record or verified by other sources”. The council decided the problem for Rural News is that none of those public records or sources are quoted. It said the article made specific assertions about Mr McCarthy, which may or may not have been accurate, but offered no evidence to substantiate them or, as noted, right of reply to the complainant and others. The council ruled that without that evidence the story did not prove its accuracy and without that right of reply, and therefore lacked balance. Therefore the complaint under Principle 1 (balance) regarding the May 24 article was upheld.

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RURAL NEWS // SEPTEMBER 6, 2016

OPINION 31

NZ wins from trade deals THE QUESTION many people are asking is, ‘which trade deal will it be: the Trans Pacific Partnership (TPPA) or the Regional Economic Partnership (RCEP)?’ So much focus has been on the TPPA it is very likely few people in New Zealand know anything about RCEP. The main difference is that the TPPA has the US as one of the partner nations, but not China; while, the RCEP has China as one of the partner nations, but not the US. Neither the US nor China is in both the TPPA and RCEP. For many nations, preferential access to both the US and China is a major goal. The Peterson Institute assessment is the TPPA will increase annual real incomes in NZ by $US6 billion – 2.2% of our gross domestic product. It will increase our annual exports by $US9b --10.2% of our exports over baseline projections by 2030. This is because the TPPA will eliminate 75%

presidential candidates. The second irony is that if the TPPA does not proceed and RCEP does, the US is left out of a significant trade deal in the part of the world where there is real economic growth. NZ’s exporters are increasingly targeting Asia, particularly likely advantages to NZ produce exporters will be significant. But the key difference will be that the US will not be in RCEP, but China will. Depending on each export’s tariff and non-tariff barriers, for NZ for some exports there may not be a lot of difference between the TPPA and RCEP, provided that Japan, one of horticulture’s key markets, is in the RCEP deal. (Japan is a TPPA member nation.) The real effect of RCEP being agreed and TPPA not being agreed, however, may be felt in the US, as the US will likely face tariff and other barriers erected by China to its exports, along with

China, due to the potential for large and increasing returns. The US would be left out of these preferential trading arrangements. That in turn would effect US manufacturing, agriculture and horticulture. So the complete opposite of

what the presidential candidates want for their US voters may happen. From either the TPPA or RCEP the US domestic industry may suffer. Whether it is the TPPA or RCEP, NZ needs to be part of whatever trade agreement is agreed. For the growth of agriculture

and horticulture we need to be able to export to countries that can pay top dollar for premium produce. At the moment, that’s Asia and particularly China. What we need is preferential access to all our key markets – the US, Europe and China.

China we already have, but as with all agreements further refinements are always required. Progressively the Government is delivering on that through its free trade agreement programme, so ensuring we can grow and generate more wealth in NZ.

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of tariffs when it comes into force and 99% of tariffs when it is fully in force. For horticulture there are real trade benefits totalling around $26m per annum directly due to reduced tariffs. NZ apples, kiwifruit, buttercup squash and onions are the big winners when – and if – TPPA comes into force. For kiwifruit growers this is worth around $6000 for each grower. However, the liberalisation of trade access rules to all the TPPA countries will progressively benefit other horticultural products as well. The benefits from RCEP are not as yet known or quantified. If agreed, RCEP could include 16 nations and 3.4b people, so the

the other member nations of RCEP. There are two ironies in this situation. The first is that tariff free access to the US market for many Asian countries, including China, would be a real bonus. If the TPPA was agreed, China’s manufacturing sector would be disadvantaged by TPPA member countries such as Vietnam. The TPPA would increase pressure on domestic US industry from cheaper Asian imports and leave China out of preferential access to the US market. So from China’s perspective the TPPA not being agreed is a bonus. The irony is that for different reasons the same result is being advocated by the US

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RURAL NEWS // SEPTEMBER 6, 2016

32 MANAGEMENT

‘Mild flavour’ to September – MetService With calving and lambing in full swing and many farmers in the North Island recovering from floods, snow storms and FE outbreaks, Peter Burke asks around the regions to see how things are panning out. EXPECT A mild spring; that’s the message from MetService meteorologist Georgina Griffiths. After a cold, wet August the forecast is good for farmers nationwide, says Griffiths. Not every day will be warm, but she predicts September will have a “mild flavour” to it. “At this time of the year you have quite a lot of variability in temperatures and it can still be changeable,” she told Rural News. “There may still be the odd frost as well. “Overall, the North Island will be drier and

plan have ended up with could not be grazed. their spring rotation plan. the way the weather an extra week of feed Morrell says some The leader of system is looking, it compared with those who farmers, faced with DairyNZ’s consulting may be hard to get rain opened up their paddocks the prospect of muddy officer team in the region, into some parts of the too soon,” she told Rural paddocks caused by the Sharon Morrell, says July East Coast of the North News. Island.” “We have been “We have been advising people that Griffiths also advising people predicts Taranaki through the very wet period it’s that through the will be drier, and very wet period it’s the West Coast of more important to stay with the area the South Island allocation and deal with the pugging as more important to stay with the area will be “spring a secondary issue.” allocation and deal like” but wet. With the rain that – Sharon Morrell with the pugging as a secondary issue.” fell in August and Morrell says while rain, decided to move was a particularly awful the warmer temperatures pugging can have long stock on a faster rotation, month with a lot of rain. coming this month, grass lasting effects on a but this move is now Some coastal areas growth is likely to pick up. farm, when looked in proving to be a problem. had a lot of water lying in Some dairy farmers in the totality of the whole “Farmers who stuck paddocks that wouldn’t Bay of Plenty may pay a farm system the impact drain away easily and they to their spring rotation price for deviating from

Sharon Morrell, DairyNZ.

is generally quite small, because the damage is confined to a small area rather than affecting the whole farm. “But the impact on that area affected can be major. People can go around and address that with seed and perhaps rolling or whatever. “As a result, they can make gains on the damaged areas. In the context of the farm, while it looks ugly it is not

as detrimental to their system as ending up with low pasture covers as a result of going too fast, too early.” Morrell says even though winter was wet it was mild and it wasn’t until very late in the piece that the ongoing wet started to decrease pasture growth rates. This has now made it difficult for farmers to get good utilisation of the pasture.

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MANAGEMENT 33

Farmers feeling better – Fed FEDERATED FARMERS president for Rotorua/ Taupo region, Alan Wills, says by and large dairy farmers are in good shape. He says despite dealing with the third season of a lower payout, farmers have cut costs and developed good relationship with their banks. “There are one or two under stress, but by and large dairy farmers are finding their way through the situation. The rise in the payout and increase in the auction price has given us a bit of hope,” Wills says. In his district around Reporoa some farmers have heaps of grass and others appear short of feed, perhaps because of management. Wills notes high empty

rates in some Friesian cows. “It’s associated with Holsteins and is known as Friesian disease. A lot of the North American and European Friesian semen was brought into NZ and people are paying the price for that.” Meanwhile, Wills says the situation on most farms near Rangitaiki, on the Napier /Taupo road, following the severe snowstorm, is just about back to normal, although many homes will not be hooked up to the national grid until electricity infrastructure is replaced. The area is ‘semi alpine’ and extreme adverse events such as the snow storm do happen. Just after the storm Fed Farmers organised supplements for farmers

FINE WEATHER HELPS CALVING FINE DAYS have made calving easier for farmers in Taranaki, says the head of DairyNZ’s consulting officer team in the region, Katrina Knowles. She says so far the situation looks good with plenty of heifer calves being born. Facial eczema hit herds in Taranaki hard in autumn, but Knowles says most farmers reacted quickly to the problem. “They cut the affected cows out quickly and treated them well and they are probably coming through pretty much unscathed. Certainly there will be some lower-condition cows as a result of this and when they go to the next phase, which will be mating, some issues might arise.” Some farms are running on fewer staff as owners seek to cut costs. She says these staff haven’t been laid off, but rather not replaced if they have resigned and farm owners are now more active on their farms.

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who needed them and appealed for casual labour. Some calves were lost during and immediately after the storm, Wills says. ‘A young calf born in a

metre of snow has little chance of surviving. A few adult livestock were also lost. One big farmer says he’d lost four out of 1000 cows – which isn’t many.”

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34 MANAGEMENT

Entering awards proves beneficial Marty Deans says while initially to reluctant to enter the competition it turned out to be a good move for his farm.

OTAGO FARMER Marty Deans says he entered this year’s Ballance Farm Environment Awards to benchmark the farm he manages and learn more about improving

sustainability. Marty and wife Lynette live on Barewood Station, a 6300ha sheep and beef property between Middlemarch and Outram. Barewood is

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entering. “I went in for the knowledge I could gain from the judges and the other entrants, but getting those awards was a bonus.” Deans was impressed with the calibre of the judges and the professionalism of the report he received after the judging process. “We had eight different judges come onto the farm on two different occasions and they asked totally different questions. But it wasn’t a scary process, more like a general chat over a cup of tea,” he says. “The feedback they gave was excellent and I was able to ask them questions as well. The advice in the report was useful and the whole thing makes you look hard at what you are doing to improve sustainability.” Deans was surprised at the number of people he met who had entered the awards two or three times. “It’s clear they were taking on board the free advice of the judges and using it to improve their operations. So I’ll have another go.” www.nzfeatrust.org.nz

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one of eight farms owned and operated by Tom and Heather Sturgess of the Lone Star Farms group. Deans says he was “encouraged” to enter the station in the 2016 Otago awards. “I’m not normally the type to enter competitions, but I could see the benefits of being involved with this one. It was a good process and I learnt a lot from it. You get to meet like-minded people and make great contacts in the industry.” Barewood Station won two category awards, including the CB Norwood Distributors Ltd Agri-Business Management Award. The judges said the station’s farming systems are continually evolving to meet the difficulties of farming in a harsh environment while still achieving aboveaverage production. They say management decisions are optimised by comprehensive measuring, monitoring and the analysis of farm performance. Deans says he was “pretty chuffed” by the win, even though that wasn’t a key reason for

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BRASSICA DEVELOPMENT and/or pasture renovation is important in the process of maximising farmer returns, says agrichemical company DuPont. “Part of this is to ensure that new brassica, grass and legume varieties are given the best opportunity to establish well.” The company says poor establishment often arises from incomplete removal of the existing sward, which leads to poor seedling survival and high plant mortality during establishment. “While glyphosate will kill grasses and some broadleaf weeds, it is very important to remove the old clovers and hard-to-control broadleaf weeds including shepherd’s purse, thistles, ragwort, yarrow and dandelion. DuPont says its Granstar herbicide in combination with a glyphosate and organo silicone (penetrant) can help to achieve this. Granstar is primarily absorbed through plant foliage and inhibits cell division within the plant, which is why it is important to ensure active growing leaf area at spraying – with rank pasture or vegetation grazed and freshened before application. www.dupont.co.nz/ag

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RURAL NEWS // SEPTEMBER 6, 2016

36 MANAGEMENT

Competition helps benchmark farm operation The Ballance Farm Environment Awards gave the Knauf family the perfect opportunity to benchmark their largescale dairy and beef operation.

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A good start goes a long way.

scale dairy and beef operation. But that was not their only reason for entering. Lewis Knauf, who manages Wairua Farm, 825ha (656ha eff.) in Maraekakaho district, west of Hastings, says his family wanted to show the wider community they care about the environment. “There aren’t many dairy farms in this region, so we wanted to put ourselves out there as a good example by showing we’re trying to do things right.” Lewis and wife Mel moved onto Wairua Farm three years ago, first working alongside Lewis’ parents Ivan and Sue who converted the former drystock farm in 2001. Last year, the dairy unit milked 1600 mainly Friesian cows, producing

Award, recognising farmers who have developed water systems and processes for water used on their farms. Judges noted the highly efficient use of water on Wairua Farm, including the recycling of cooling water from the farm dairy and careful measuring and monitoring of irrigation. Knauf says winning the WaterForce award acknowledged the hard work and money spent on their water system. “We haven’t finished yet, but water is a big issue in this region and we have always strived to use it efficiently.” The family enjoyed the awards and winning four categories proved they were on the right track as far as sustainability goes. “I wasn’t sure what to expect at first but the

“There aren’t many dairy farms in this region, so we wanted to put ourselves out there as a good example by showing we’re trying to do things right.”

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almost 700,000kgMS from a split calving system. Around 550 beef calves were also bred and reared for sale as weaners or at 18 months. Knauf says the beef farming is important to the business, especially given the recent run of low returns in the dairy industry. “In our experience, when one industry is up, the other is often down. So it’s nice to have a foot in both camps.” Erosion-prone areas of the farm are now fenced to allow native bush to regenerate and 58ha are planted in commercial trees. A 42ha wetland area is set aside as conservation land. The Knauf family entered the awards for the first time last year and won four category awards, including the WaterForce Integrated Management

whole process was very rewarding,” Knauf says. “The judging was done in a relaxed fashion. It was more like a conversation than a question-answer session, and we enjoyed talking to the judges about what we were doing on the farm and what we were trying to achieve.” The judging process highlighted a few areas for them to work on in future. “It was worthwhile and any farmer considering entering the awards should just do it. Don’t wait until you’ve got everything sorted on the farm – because that is never going to happen. Just use it as a learning exercise to find out how you can improve your business.” More info on the Ballance Farm Environment Awards is available online at www. nzfeatrust.org.nz .

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38 MANAGEMENT

Pasture renewal pays big dividends DESPITE PLENTY of evidence showing the clear benefits of renewing pastures, renewal rates in New Zealand remain very low, claims the Pasture Renewal Charitable Trust. “Pasture renewal rates nationwide are very low – around 2.5% for sheep and beef farms and only 8% for dairy farms,” says the trust’s project manager Tim Wood. “Yet there are plenty of reasons and evidence

available to suggest it is beneficial to renew older pastures.” Wood says though research shows many farmers know the benefit of planting new pastures, many perceive barriers, including: it is expensive; new grasses don’t persist; they need greater maintenance; it is too hard (to take paddocks out of production/difficult to fit into current farm management etc); and planting new

pastures is an ‘intensive’ farming practice unattractive to farmers who regard themselves as running low input farming systems. “The end result is that some farmers may appreciate the benefits, but do not have the knowledge or confidence to give it a go,” Wood says. “However, done properly the risks are minimised.” He says there is a big difference between a

farm’s poorest producing pastures and its best paddock. “That difference in dry matter production will be having an impact on your bottom line.” He says modern forage cultivars have been bred to improve productivity and offer benefits such as: they establish quickly; produce more dry matter per hectare; resist pests and disease better; are more palatable, making them easier to manage;

have a higher feed value (ME) so stock do better; grow more feed than weed grasses in winter and summer conditions; and are a variety of cultivars bred for specific conditions to suit every farm type and operation. Wood says replacing poor-producing paddocks with new pasture is profitable, and “one of the simplest ways to invest onfarm for a significant and relatively predictable

Pasture renewal rates throughout NZ are very low – at around 2.5% for sheep and beef farms and only 8% for dairy farms.

return”. He adds that the higher a farm’s performance, the more it can gain from intensifying its pasture renewal. “But the benefits of pasture renewal are easily achieved in any sort of

farming operation. Pasture renewal is not just a ‘high input’ farming practice; it can be incorporated into any farm management programme. And the benefits are obtainable on all grazingbased enterprises.”

WHY PASTURE RENEWAL SHOULD OCCUR PASTURES DETERIORATE over time. Most productive pastures deteriorate over time from a combination of natural and induced causes: weed invasion – particularly low quality grasses such as browntop, sweet vernal, crested dogstail, fine fescue, Yorkshire fog, or summer grasses such as paspalum and Mercer grass. Other causes: dry/ drought conditions, wet/flooding, poor fertility, poor drainage, diseases, insects, pugging, soil compaction, overgrazing and poor management. Over time, the population of desirable, productive plants in a pasture declines, while populations of undesirable or unproductive plants increase and pastures become ‘run out’. Typically old pasture produces less dry matter, is lower in ME and stock preference and this decline compounds as the pasture ages. New pasture is significantly more productive

Typically, successful pasture renewal will increase dry matter per hectare per year production by around 3–6 tonnes (each year). This is true of all farms whether they are dairy or sheep, intensive or extensive, irrigated or not. Differences between these groups arise, of course, in the extent to how that extra production can be converted into additional income. Control over seasonality of production Modern pasture cultivars allow the farmer to choose the times of the year when a new pasture will be most productive and when it goes to seed. Cultivars can be chosen to produce more grass in winter, summer and autumn than traditional pastures. Ryegrasses can be chosen with a more-than six week difference between the earliest and latest seeding dates. Farmers can pick cultivars to achieve the seasonal production peaks that create the best opportunities for them.

Consistently higher ME. New pastures consistently produce an average of 0.5 more megajoules of ME/kg DM. (over and above the extra dry matter produced by a new pasture). Reasons include: higher proportion of desirable species, later and more uniform flowering, leafier sward with fewer seed heads produced, and less dead leaf material. Animals are better fed Animals on new pasture graze more grass, and that grass is leafier, higher in ME and more palatable. This will be reflected in: more milk production, faster liveweight gains, higher stocking rates, and more contented animals. Tim Wood urges farmers to decide early on their annual pasture renewal plan to ensure the best results for this coming spring’s planting season. Tools to help, including pasture renewal calculators, are available on the trust’s website: www. pasturerenewal.org.nz

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RURAL NEWS // SEPTEMBER 6, 2016

ANIMAL HEALTH 39

Beef progeny test delivering answers to farmers COMMERCIAL FARMERS can be sure estimated breeding values (EBVs) for calf weaning weights will deliver what they predict. Initial results from the Beef + Lamb New Zealand (BLNZ) Genetics beef progeny test are rolling in and the second lot of calves is due on the ground in coming weeks. The test is being run on five large commercial properties and involves about 2200 cows and heifers each year. Its goal is to determine how bulls of different types perform under comparable commercial conditions. It aims to put a dollar value on the worth of superior genetics, from the perspectives of breeding cow performance and finishing stock’s carcase attributes. BLNZ Genetics general manager Graham Alder says there are now three key results for commercial farmers to note. “The most significant result so far is around the estimated breeding value

for weaning weight. More than 80% of the expected weaning weight advantage predicted by estimated breeding values is being realised on NZ commercial farms.” He says farmers should be reassured by the results. “They were achieved on five large-scale farms, in different breeds and with proven bulls that could be purchased by commercial farmers at most Tautane Station manager Matt Smith is impressed bull sales,” Adler says. “The key point is that the with results to date from the BLNZ Genetics beef progeny test. Tautane is one of five large calf weaning weight EBV will commercial properties involved in the test. largely deliver what you expect. “AI success improved markedly So, if you want heavier calves, choose bulls with heavier 200-day between year 1 and 2 of the test, likely due to improved cow body condition weight EBVs.” Lead scientist Dr Jason Archer says scores, more feed handy to yards, quithe other two key findings relate to cow eter cattle and a tighter calving period mating – specifically, artificial insemi- resulting from the success of the year 1 nation (AI) results and the impact of AI programme.” Archer says the other noteworthy cow condition at mating.

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Line of 308 lambs processed 187 infected with sheep measles, 10 condemned!

point for commercial farmers is the importance of body condition score at mating. “Analysis of the project’s pregnancy data against body condition score reinforces what we already know: a better condition score is important for re-breeding. For reproductive success, a minimum score of 6 at mating is recommended, but greater than 7 is optimal.” Tautane Station is one of the five properties involved in the test. The 3700ha station is owned by Ngati Kahungunu and leased to the Taratahi Agricultural Training Centre. Manager Matt Smith says that, while it is early days for test results, everything to date is positive. “There will be some great information come out in about 12-15 months. For instance, I’m looking forward to seeing how the heifers perform, par-

ticularly those from high-growth sires. Will they stand up to our commercial conditions?” Smith says it all comes back to efficiency. “I don’t want big cows. I want a cow that will work hard over winter, hold her condition, get in calf and produce a calf that grows well.” The role of body condition scoring has also made an impact on Tautane. “We are now managing our herds around body condition scores, particularly at weaning time,” Smith adds. “We’ve always scored them, but by eye. Now we have a figure and we are all on the same page. The aim is a score of 7 at mating.” Smith says the use of AI has not passed him by. “We are looking at using it on a commercial basis. It opens up such a large pool of genetics, and from bulls we could never afford to buy.” @rural_news

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RURAL NEWS // SEPTEMBER 6, 2016

40 ANIMAL HEALTH

Global animal health company sets up in NZ BENEFITS PREVIOUSLY only available overseas from world-leading anti-infectives are now available for New Zealand’s dairy farmers, claims David Barnett of Ceva Animal Health. Ceva describes itself as one of the world’s fastest growing and largest animal health companies. “Possibly you will not be familiar with the name, but don’t let that put you off,” Barnett says. “Ceva is a significant R&D company based all across the world and has now set up a base in NZ to bring significant innovation to local farmers.” Barnett says two new anti-infectives form the company are available this spring. “These are new, but without stinging you in the pocket for the advantage. In fact, they may even save you money without compromising on

performance,” Barnett claims. He says both products are bottled in a patented, multi-layer plastic bottle CLAS system, which is the only bottle type to provide the same qualities as glass to enable excellence in formulation without the issues of glass. “It is specially shaped for easier, safer handling and shockproof if dropped, whereas even standard plastic bottles can suffer. This delivers products that can be easier to inject, easier to re-suspend, have excellent tolerance on injection, have fast absorption, optimised pharmacokinetics, are lighter, easier to handle and have none of the waste or mess caused by breakages.” The first product is Vetrimoxin LA, which Barnett says is rapidly effective with high plasma peak about

two hours after injection and long action up to 48 hours. “It is easier to re-suspend, which ensures you are injecting exactly what you need to, and its unique formulation can be used in a range of temperatures without blocking needles.” The second anti-infective is Tenaline LA, which contains the commonly used active oxytetracycline. “Most noted by farmers is its ease to syringe; the less force you have to apply the less chance of damage at the injection site or, worse, to themselves,” Barnett says. “It has perfect tolerance on injection to reduce meat condemnation and fast absorption with a long action of three days.” Both products are available from vets.

RULES OF THUMB FOR DRENCHING FROM PAGE 42 ■■

■■

The roundworm lifecycle is about 21 days. Therefore a 28-day drenching routine is often recommended. This allows susceptible worms to develop between drenches (helps minimise the risk of drench resistance developing) but ensures developing worms won’t cause significant production losses. It is extremely important that an effective combination drench

■■

■■

■■

is used (such as Coopers Scanda for lambs and calves and Alliance for sheep and cattle). Ensure your drench gun is accurate and your drenching technique is correct, to avoid under or over-dosing. Feeding animals enough will enhance their ability to cope with worms. Management practices can greatly reduce the speed at which drench resistance develops. Con-

sider tools such as maintaining a refugia population, alternative grazing by different stock and feeding crops. ■■ Ensure you have sound quarantine drench practices, and exit drench practices where needed to avoid introducing or speeding the development of resistant worms on to your farm. To discuss any of these points further, contact your local Coopers territory manager on 0800 800 543.

RURAL NEWS // SEPTEMBER 6, 2016

ANIMAL HEALTH 41

People focus as calving kicks in PETER BURKE peterb@ruralnews.co.nz

AS THE calving season gets into full swing, dairy farmers are being urged to keep a close eye on the people aspect of their business. DairyNZ’s general manager extension Andrew Reid says it is likely many farms have cut back on staff to reduce costs, imposing greater pressure on the remainder doing the work. Reid says farmers should not only take care of themselves and their own staff, but also check on how their friends and neighbours are coping. “We talk often about stresses on animals and pastures at this time of the year, but we must be

aware of the stress on people as well and not take that for granted,” he says. DairyNZ’s technical veterinarian advisor Dr Nita Harding agrees. Farmers ideally should have been set up before calving started, with good systems in place and staff well briefed on what might be expected of them so they can virtually switch into autopilot mode and do the job with ease. “The other thing is to make sure staff get a bit of time off and have a chance to rest and eat properly,” she says. “It can be easy just to snack on things and not have a proper meal, which doesn’t help. It’s important staff are fit and able to do the job

also need to ensure their own welfare, so that staff manage the animals well. “It’s really a domino effect,” she says.

and are awake enough to think properly and not be in a state where they can’t think logically anymore.” Harding says managers

Farmers need to ensure both their own and staff welfare so animals are managed well.

LOGIC SAYS THEY’VE BOTH GOT IMMUNITY AGAINST PULPY KIDNEY. BUT THE SCIENCE SAYS OTHERWISE. MULTINE

LEADING COMPETITOR

BOBBY CALVES IN SPOTLIGHT

30

20

10

0

30

20

10

0 V1

V2+14

V1

V2+14

(Black lines depict the number of non-responders)

In a recent New Zealand trial, we tested Multine® against one of the other leading 5-in-1s with the vaccines being administered at both tailing and weaning. In both cases the results were more than conclusive. Lambs vaccinated with Multine saw a significantly better immune response against Pulpy Kidney and Tetanus than those vaccinated with the competitor 5-in-1. MULTINE. There’s no better 5-in-1.

ELE-01773-RN

ANDREW REID says the new bobby calf regulations are much in the minds of farmers as calving builds. He says for most farmers the new regulations simply reinforce the good management practices they have always adhered too. “So it hasn’t really caused any consternation,” he says. “Obviously, with what happened last year when the bobby calves were in the public eye, farmers are conscious everything is under scrutiny. But good farm managers have nothing to worry about.” Dr Nita Harding, involved in promoting good bobby calf care, says weather plays a big part in animal welfare because it is more stressful for animals when it’s muddy underfoot and cold. She says calves need to be kept in dry, draught-free shelters. “A cold draught coming up through a floor or a gap in the wall will make conditions much colder for calves. Paying attention to calf shelter is important.”

40

Epsilon Antitoxin Concentration (u/mL)

Epsilon Antitoxin Concentration (u/mL)

40

ACVM No:A0934 ®Registered trademark. Schering-Plough Animal Health Ltd. Phone: 0800 800 543. www.coopersonline.co.nz NZ/MLT/0815/0010a

RURAL NEWS // SEPTEMBER 6, 2016

42 ANIMAL HEALTH

Cheaper does not mean better Vet Jo Houlter says money spent up front on a quality triple combination drench can save money later in terms of animal production.

FARMERS CAN no longer simply buy the cheapest drench, assume it is doing a good job of killing worms and not consider the longer term implications, says Jo Houlter, veterinary technical advisor, MSD Animal Health.

“Today, preventing and managing drench resistance and worm control must be a consideration in every animal health decision a farmer makes,” Houlter says. “Drench resistant worms are common and widespread

in sheep and cattle in New Zealand and need to be actively managed.” She says there are three main strategies for managing drench resistance on NZ farms: ■■ Minimising high-risk drenching and manage-

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ment practices Maintaining worm populations not exposed to drenching by the use of refugia ■■ Using combination drenches. Combination drenches contain a mixture of different drench actives and worms resistant to one active ingredient will generally be killed by another. “Field studies and modelling have shown the potential of combinations to slow the development of resistance,” Houlter say. “These studies all show that combinations have the greatest potential to slow drench resistance when they are used before resistance has developed in the farm worm population.” She says that, by far, the best time to use combination drenches is when the actives are still effective on their own before worms have developed significant resistance. “Saving the combination drenches until you need them is not the correct approach.” She says triple active drenches are better than ■■

double actives, but are also more expensive. “This extra expense provides insurance against the possible future development of resistance and means that you are doing the best thing for your sheep, cattle and farm.” Houlter says Alliance is a triple combination drench that includes levamisole, abamectin and oxfendazole, some of the best actives to control worms in sheep and cattle on NZ farms. “Will a lesser, cheaper drench do the same job?” she asks. “Maybe but possibly not and you won’t know unless drench testing is carried out.” Houlter says money spent up front on a quality triple combination drench can save money later in terms of animal production and the possible need to use even more expensive drenches or more drastic measures when drench resistance has developed on your property. Alliance has been developed, proven and made in NZ for NZ livestock. www.coopersonline.co.nz

RULES OF THUMB FOR DRENCHING

Trials with Multimin® have shown that calves treated within 24 hours of birth have improved health benefits. Optimise calf health & immunity with Multimin®

f Injectable combination of copper, selenium, zinc and manganese f Aids in the prevention of scours and pneumonia1 f Optimises immune response2,3 f Improved growth rates in calves4 www.virbac.co.nz/betterwithmultimin 1. 2. 3. 4.

Teixeira et al, (2014), Effect of an injectable trace mineral supplement containing selenium, copper, zinc, and manganese on immunity, health, and growth of dairy calves. JDS 97, 4216–26. doi:10.3168/jds.2013-7625. Arthington J, Havenga L (2012) Effect of injectable trace minerals on the humoral immune response to multivalent vaccine administration in beef calves. Journal of Animal Science 90, 1966–1971. Arthington J, et al, (2014), Effects of trace mineral injections on measures of performance and trace mineral status of pre- and postweaned beef calves. Journal of Animal Science 92, 2630–2640. doi:10.2527/jas2013-7164. Virbac data on file.

ACVM No: A9374.

ASK YOUR VET FOR MORE INFO

ROUNDWORMS ARE probably the most important production-limiting factor on New Zealand farms, according to animal health company Coopers. “Lambs and calves are most at risk, as older animals develop a degree of resistance to worms. So it is important to have your drenching programme planned before periods of high worm challenge,” the company says. Worms develop best on pasture in warm, moist conditions. In general, pasture burdens start to rise in spring and peak in autumn. “In spring, a lot of the worms on pasture come from ewes around lambing, when the ewes’ immunity to worms temporarily decreases,” the company says. “This often coincides with increasing temperatures, providing favourable conditions for worms to develop on pasture.” The risk is that as lambs and calves start to graze, they can face a high level of worm larvae on pasture and develop large worm burdens – with a lot of worm eggs being deposited onto pasture as a result. “Without management, this can lead to very ‘wormy’, lower weight lambs and calves, and high levels of pasture contamination later in the season.” Coopers says to minimise these effects, a drenching programme and good management practices tailored to an individual farming situation are recommended. The following can be used as general rules of thumb: TO PAGE 40

RURAL NEWS // SEPTEMBER 6, 2016

MACHINERY & PRODUCTS 43

All you need is LUV – part 3 After looking at the legislation in part 1; and giving a thorough understanding of how the vehicle’s controls work in part 2, in this third instalment on LUVs machinery editor Mark Daniel reckons it’s time to get out there and do some work. SOME OF the following may seem obvious, but it’s worth thinking about to ensure we return home safely at the end of the day. A few questions should spring to mind: Is the vehicle capable of getting to where I want to go? What’s the ground clearance? Is there enough access? Is this the best route? What are the risks? And probably most important, if it all goes pear-shaped, what is my exit plan? So let’s go riding and be safe, by ensuring any load is secured tightly and doesn’t exceed the maximum limits; stow away tools or objects that might get thrown around on rough terrain. When driving try to use the throttle and brakes smoothly, which helps avoid breaking the surface and losing traction. Look ahead at the terrain you are about to cross. Will it support the vehicle? Are you likely to get bogged down? And don’t assume that because you went there last week it will be OK; it might have rained and the ground conditions changed. Try to stay in low range, particularly when loaded or towing and use 4WD to offer higher levels of grip and control. When crossing humps or traversing narrow tracks reduce speed to eliminate bouncing, which is uncomfortable and can lead to unexpected events. If negotiating slopes or hills always try to drive straight up or down, while thinking of the mantra ‘drive as fast as necessary and as slow as possible’. While momentum will help you to get up a hill, too much wheel-spin might break the surface and reduce traction, which needs to be rectified by reducing throttle – not accelerating as many people do. If you can’t climb a hill because of a loss of traction or lack of power, get off the hill safely. Apply the brakes, select

reverse, keep a few revs on to engage the transmission and use the brake pedal to re-trace your steps back to the bottom or a safe area. If approaching unknown downhill sections, take a good look to see if there is a run-off area. Always try to drive straight down, not across the slope and use the brake pedal to control speed while balancing the throttle to maintain drive. Always select low range and brace yourself into the seat with the steering wheel to ensure you remain in control. If the LUV starts to slide, try applying a little more throttle to re-establish traction and ease off the brakes slightly. Remember the mantra, ‘slow at the top, slow at the bottom’; in other words keep things in control from the start. When you can’t drive straight up or down a slope and have to traverse a particular route, take care to look for hidden holes or bumps and establish an escape route if things go wrong. Interestingly, the rollover point of static vehicles normally exceeds the driver’s comfort slevels, but this changes dramatically when travelling, as momentum and shifting centres of gravity kick in. When traversing a slope try to steer where you want to go. Avoid steering into the hill, which tends to lead to more throttle as the vehicle struggles. If you think ahead you decrease your risk of having an accident, but if all else fails – and you have a rollover – hold on tight, keep limbs inside the vehicle; and NEVER attempt to jump from the vehicle. • Rural News acknowledges the help of Andrew (Simmo) Simpson of CARNZ Training in compiling these articles.

It’s all about ensuring we return home safely at the end of the day.

@rural_news facebook.com/ruralnews

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RURAL NEWS // SEPTEMBER 6, 2016

44 MACHINERY & PRODUCTS

Look mum no hands! MARK DANIEL markd@ruralnews.co.nz

WE’RE GETTING used to the endless mileage the news media gives to autonomous vehicles from Google, Tesla and Mercedes. While the agri-industry has made some murmurings on the subject, most of this has been about small, robotic vehicles or two tractors ‘tethered’ and operated by one driver. Now the world’s largest tractor manufacturer by volume, India’s Mahindra and Mahindra (M&M), has shown its cards at its 70th annual meeting, where it also announced a 16% rise in profit and 12% higher sales (240,721 tractors sold globally to the year end March 2016). “Tractors that operate

autonomously will change the future of food production,” Anand Mahindra, chairman of M&M, told the meeting. “As the largest manufacturer of tractors in the world, we intend to play a pioneering role in this arena.” Mahindra also said there is little paranoia about crashes and accidents with autonomous tractors, compared to the motoring industry. “Autonomy can make the biggest difference to agriculture, with a need to increase productivity to feed a population that continues to grow.” It seems M&M is in a position to see this vision through to fruition, with a turnover of US$18 billion, large cash reserves and extensive R&D facilities in USA, South Korea, India and Europe. The company is already developing alternative technologies such as

Anand Mahindra believes that autonomous tractors have the potential to change the future of food production.

electrical drives, battery technologies and solar power. Mahindra told the meeting the future of mobility centres on three topics: shared mobility, with more

people pooling resources to travel together; renewable energy vehicles; and autonomous vehicles, on and off road. Closer to home, Mahindra New Zealand general manager Gary Sanders

says Mahindra is an extremely diverse company, with global expertise in IT that he claims sets it apart from tractor building competitors. “In terms of timeframe and delivering this technology the accepted forecast for autonomous vehicles is to be accessible to the buying public in around five years. But there will be a need for adaptation to suit agricultural applications.” Sanders noted that the challenge is to establish what benefits or challenges this might introduce to Australia and NZ markets. “Clearly a tractor that never gets tired and an operator that can focus on other tasks, while the tractor is at work, could deliver substantial productivity benefits, reduce the cost of product and make farms more profitable.” www.mahindra.co.nz

RURAL NEWS // SEPTEMBER 6, 2016

MACHINERY & PRODUCTS 45

Kuhn ups the ante MARK DANIEL markd@ruralnews.co.nz

FRENCH MACHINERY giant Kuhn bought the Vicon baler business and its factory in Geldrop, Holland, in late 2008 and has continued to develop the product ranges, now offering a choice of up to 16 variable chamber machines. Two new machines added to the range for the coming season are the VB 2265 and 2296 models. These follow the same layout as existing 2200 series machines, with 230cm pick-ups, bale formation by three rollers and five belts and progressive density control. However, they also include upgrades to allow 10% greater bale densities. The VB 2265 can produce bales from 0.8 to 1.6m diameter, and the 2295 up to 1.85m. Aimed at the contractor market and dubbed the ‘heavy duty option’, the progressive density control – which comprises a belt tensioning arm, twin hydraulic cylinders and compression springs – is now subjected to greater operating pressures to

control bale density from the core to the exterior. The increase in pressure from 180 to 235 bar has necessitated an upgrade to the machine drivelines with larger size and increased quality drive chains, lubricated by the BaleMax continuous oiling system. Driveshafts now also use heavy-duty universal joints to deal with increased torque loadings and a second driven roller on the belt drive system ensures positive bale rotation. Durability of the machines is further enhanced by Hardox wear plates in the pickup area and on the rotor feeder tine points. Contractors will also welcome the fitment of oversize 500-45R22.5 tyre equipment, which will help deal with increased bale weights on difficult ground. There’s also ISOBUS connectivity that will make hitchup a breeze for suitably equipped tractors, as well as including features such as monitors connected to external cameras. Overall choices include basic non-chopping feeder

IMPROVED SEEDING PROMISED JOHN DEERE has introduced a new variable rate seeding unit called MaxEmerge 5e, for use on a wide range of JD planter platforms. The company claims the 5e units can markedly improve seed population accuracy across the full width of a planter, especially when operating through curves. This is done by each seeding unit being equipped with a variable rate electrical drive system, with supporting control technology. This typically improves population accuracy by 20%, which can reduce yield loss by up to 2%. The MaxEmerge 5e units still operate a seed tube layout, but the electrical drive system replaces the more typical shaft and gear layout. This allows each unit to work independently, with the added bonus of easier access for cleaning and routine maintenance. Standard features include variable rate application, individual meter drive and the SeedStar 3HP monitoring system. Also included in the package is curve compensation, vacuum automation, meter runoff and built-in RowCommand. Options available include easy adjust row cleaners, individual unit hydraulic down-force control, pneumatic closing wheels and, depending on model, fertiliser attachments. “Customers running late model planter set-ups can retrofit MaxEmerge 5e units quite easily,” says Brian Boelens, seeding specialist, John Deere. “This will help maximise yield and productivity, which is a major consideration in the current climate of tight margins.” www.deere.co.au

– Mark Daniel

rotors, a 23 knife cutting rotor delivering a 45mm chop length, and of course the combined wrapper system dubbed VBP. “We have already sold a number of units for the coming season, and although there is a possibility of delivering higher bale weights, we think that current weights are proba-

bly enough,” Brian Robertson, operations manager, Kuhn NZ, told Rural News. “If that’s the case, we think users will probably run the units at around 70% density to deliver similar weights, but with less stress and achieving a longer service life by the machines.” www.kuhn.co.nz

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RURAL NEWS // SEPTEMBER 6, 2016

46 MACHINERY & PRODUCTS

The one farm worker that won’t answer back! MARK DANIEL markd@ruralnews.co.nz

FARM TRANSPORT has seen many changes over the years, from two wheelers to quads and currently the popular UTV or sideby-side. But some farm-

Suzuki’s Farm Worker offers a serious alternative to lighter duty side-by-sides.

ers still prefer the capacity and creature comforts of traditional layout utes. One such vehicle is the Suzuki Farm Worker. It first came to notice back in the mid-90s, but today takes its design leads from a vehicle with full ladder

Your true harvest partner

3

to automotive standards; and though it treads lightly it has a 500kg load capacity on the deck and a further 500kg at the towbar. In the cab, while by no means luxurious, seats are comfortable and offer adjustments to take all shapes and sizes. Seatbelts are fitted for safe operation, while optional CD or radio equipment will keep the occupant entertained and in touch with the world. A 40L petrol tank highlights the frugality of the

The Flatdeck has the iconic Kiwi layout – enclosed cab and a NZ-built galvanised steel and plywood deck – which lends itself to all the farm tasks with ease. Three configurations make up the Farm Worker range. The base level Versatile offers a canvas roof over the cab and rear section and longitudinal bench seats; the Wellside has a hard cab roof and rear bulkhead; and the Flatdeck has the iconic Kiwi layout – enclosed cab and a NZ-built galvanised steel and plywood deck – which lends itself to all the farm tasks with ease. Suzuki is also keen to point out that, in contrast to many side-byside vehicles developed from quads, this 1000kg kerb-weight truck is built

.9%

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on MY17 Combines and Plus Parts Package

engine, manual window winders ensure a long service life and height-adjustable headlights deal with varying loads. Completing the package is a range of options including front and rear bullbars or stock crates, both built locally by Smiths, and a rear window for increased visibility. A conditional 24-month warranty applies. While the Farm Worker isn’t road registerable, it must offer a serious alternative to lighter duty sideby-sides. Prices start at about $15,000. www.suzuki.co.nz

67,000 COMBINES AND COUNTING

Plan to start your next harvest season with a combine harvester that makes it easy for you to get the best out of your crop. When your machine comes off the factory line next year – with your name and order number on it, you can expect it to perform strong through the season and many more seasons to come. They work smart, from the functionalities in the cab right through to the innovations at its core. Get ready for more uptime and advanced productivity. John Deere’s S-Series and T-Series combines are engineered to meet your needs for high capacity output and outstanding grain, straw and chopping quality. These days, farming isn’t just managing a business – you’re managing a complex enterprise. So drive more value from your next harvest by talking to your John Deere dealer now to ensure that you benefit from the best Early Order offer, including our exclusive Plus Parts Package to see you through your first season. Nothing Runs Like A Deere™

* Conditions apply. Finance available through John Deere Financial Limited to approved commercial applicants only. Offer is based on 40% deposit, GST back and 3 year term with 3 annual repayments. Fees and charges apply. If not amended or withdrawn earlier, the promotion expires on 30/11/16. Other terms and rates are available. For Plus Parts Package, amount must be between $5,750 and $23,000 including GST. See your local dealer for full details.

chassis, leaf springs at each corner and a basic cabin for weather protection. Bringing it up-todate, power is provided by a 4-cylinder, 1300cc petrol engine coupled to a 5-speed manual transmission, selectable 2- or 4-wheel drive, as well as a low range, 4WD transfer box to deliver extra traction where needed. Tyre equipment is 15 inch Maxxis Trepador, which combine with the 4WD to get to most places on a property.

JohnDeere.co.nz/Combines2017

MASSEY FERGUSON has made its 67,000th combine harvester at its Breganze factory in Italy. The 360hp MF Beta 7370 is off to Sweden from the 25ha site, home of MF harvester production since 2004 in models such as the Activa, Activa S, Centora and Delta. It once made the Italian brand Laverda, before being bought by the Morra family who own Argo Group. AGCO bought a 50% stake in 2007, the balance in 2010. The 65,000m2 plant has since become ISO certified, had its supply chain reorganised and gained new rolling and panel forming machines, robotic welding centres and paint shop. A notable addition is the AgriDome Visitor Centre.

RURAL NEWS // SEPTEMBER 6, 2016

MACHINERY & PRODUCTS 47 AFFORDABLE QUALITY TRAILERS

Complete with spare wheel & jockey wheel SHEEP CONVEYORS

CLAAS UK CEO and regional director, Trevor Tyrrell (left), and global export manager, Elke Hoyermann (right), congratulate CLAAS Harvest Centre – Bay of Plenty sales manager, Vaughn Carson, who won the 2016 NZ Strive Salesperson of the Year.

Top of their Claas A GALA event held recently in Christchurch by Landpower and CLAAS Harvest Centres marked the company’s Strive Annual Excellence Awards, recognising the best performing dealerships, teams and individuals in the Australasian network. “Our goal is to make sure every Claas Harvest Centre delivers the right technology, expert knowledge and superior after sales service to help gear up farmers for success,” Landpower chief executive Richard Wilson says. Winner of the network’s best machinery

dealership award was Claas Harvest Centre Southland, Invercargill. It has played a central role in Landpower’s history, evolving from the Farmrite business established by Herby and Pam Whyte in 1979, to become the first Claas Harvest Centre in 2009. The business employs 25 staff in its Invercargill and Gore branches. Branch manager Rob Walker, a long-serving employee, attributes the success to customer service. “We are committed to providing round-the-clock service and parts support

for customers during the busy harvest period and other critical times of the year,” he says. Claas Harvest Centre Central Districts was recognised as having the best after sales service. Branch manager Paul Holdaway paid particular tribute to his workshop team led by foreman Andrew Paddock. “We are among the small branches in the Claas Harvest Centre network so this award is a big achievement for Andrew and his team,” Holdaway says. Five top-performing sales representatives won Strive Salesmen of the

Year awards. Vaughn Carson, Claas Harvest Centre Bay of Plenty, is top salesman for JCB loaders and telehandlers and Claas Greenline technology. Also winners were Greg Carr, Canterbury (Lexion); Nick Ravlich, Waikato (Jaguar); Robbie Barrowcliffe, Waikato (tractors); and Adam Clement, Canterbury (Amazone). Claas UK chief executive and regional director Trevor Tyrrell, and global export manager Elke Hoyermann were on hand to congratulate prize winners on the awards night.

DIGITAL FUTURE CLAAS HAS begun building an electronics development centre in Dissen, Germany. Work on the 5ha property will be finished next year. A core aspect of the centre will be Claas E-Systems, formed

in 2014 and now employing 150 employees developing control units, electronic architecture, terminals, camera systems, automatic satellite-guided steering systems and other gear for the

increasingly digital, networked farming. The staff are from the company’s subsidiaries in Gütersloh, Harsewinkel, Bad Saulgau, Paderborn and Denmark.

Ph 06 370 1329 | Stuart 0274 387 528 124 Lincoln Road | Masterton E: daytech@wise.net.nz | www.daytech.co.nz LEADERS IN FARM MACHINERY DESIGN

DRAINAGE AND SOIL AERATION PAY BIG DIVIDENDS

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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

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Phone

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RURAL NEWS // SEPTEMBER 6, 2016

48 RURAL TRADER

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tunnel houses

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

GREAT VALUE • Ideal addition to your block • Grow vegetables all year round and reduce your grocery bill • Very affordable and easy to install • Totally NZ made by family business making tunnelhouses for 30 years • Range of models from 2m to 8m long T/F 03 214 4262 E morrifield@clear.net.nz

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