MANAGEMENT
MACHINERY
Internet future for family-run flower farm. PAGE 39
Swapping downtime for snow time. PAGE 49
RURALNEWS
NEWS Agriculture won’t be joining Emmissions Trading Scheme – for now.
PAGE 14
TO ALL FARMERS, FOR ALL FARMERS
OCTOBER 18, 2016: ISSUE 617
www.ruralnews.co.nz
Changes get the nod SUDESH KISSUN sudeshk@ruralnews.co.nz
FONTERRA CHAIRMAN John Wilson says the co-op has benefited greatly from its governance structure review. “We have reminded ourselves of the unique and very important governance structure that we have and the different skills and capabilities we need between those who govern and those who represent,” Wilson told Rural News. Wilson was speaking after 85.96% Fonterra farmers voted in favour of a new governance structure. Under the new structure, Fonterra’s board will reduce by two to 11. Farmers also voted 88% in favour of changing the representation role of the Shareholders Council, which will now refocus on its primary role to challenge the board on matters of shareholder interest. Wilson says it’s a great result and
thanked farmers for taking part in “a thorough and thoughtful process”. Fonterra started the governance review process in 2012 as part of a three-pronged strategy; changes to its capital structure, management and governance and representation. “You don’t do this the next day; you do it over time,” says Wilson. “I have a huge respect for our farmers for getting involved at a time when it is so challenging on farm. For those family farming businesses under financial pressure with low milk price; to be involved in discussions takes effort so I really respect that.”
Wilson says feedback from farmers is that they have appreciated the review process and they value the discussion on governance. The co-op held over 600 farmer meetings as part of the review. The final vote reflected shareholder sentiment that the recommendations were a significant improvement and it was time to move the cooperative forward, adds Wilson. “The global market place; where our consumers and customers’ demands are changing by the day; routes and global trade agenda changing by the day.
“We need to be a very fast moving co-op and our ability to have these conversations (on governance) allows us to stay ahead of competition.” Wilson noted that cooperatives, by their nature, need consensus on the important decisions. “That is as it should be and we have agreed on the final recommendations after a very constructive eight months of discussions and refinements. “It is a clear signal from our shareholder base that it is time to push on so the co-op can focus on our business priorities.” • Pole position – p5
TO BE SURE John Joyce is a born-and-bred Irish hill country farmer who lives in a stunning thatched cottage on the road to Maam Cross, northwest of Galway City. He runs 200 mountain ewes and has farmed in the district all his life. The dry stone walls keep his sheep contained, and he also runs some livestock high on the mountains during summer. Joyce, like many Irish farmers and his New Zealand counterparts, is feeling the impact of poor sheep prices, mainly due to the uncertainty over Brexit. See more page 10
DOLLAR KILLING LAMB PAM TIPA pamelat@ruralnews.co.nz
THE NEW Zealand dollar will be the big worry for beef and lamb prices in the next year, says ANZCO chairman Sir Graeme Harrison. “The big worry for lamb is not the price of retail in the UK, because that is holding up; it is the issue of the exchange rate. The NZ dollar has appreciated so much,” Harrison told Rural News. “The problem really is sterling, which has depreciated so much against all major currencies and we are caught up in all that. “That’s a worry,” Harrison says. “On the beef scene, while obviously we have enjoyed very good times, it will be difficult to keep prices up where they are. But a lot depends again on demand in Asia and where the exchange rate finishes. I would say the exchange rate has got a huge influence on farmer incomes this year.” Harrison says it has always been a big factor, “but it is particularly big at the moment”. “When dairy prices have been down in the past the New Zealand dollar has gone down – and it didn’t this time.” The dollar is well ahead of where it was last year, “a concern for NZ”. He doesn’t think the falling interest rates will have a big influence. • More on lamb - p4
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RURAL NEWS // OCTOBER 18, 2016
NEWS 3
Excuse time over
ISSUE 617
www.ruralnews.co.nz
DAVID ANDERSON davida@ruralnews.co.nz
NORTH OTAGO farmer and candidate for the Farmlands board Chris Dennison says the time is over for excuses about the rural co-op’s poor performances. “Farmlands is a strong co-operative but it appears to have lost its way,” Dennison claims. “There will be no bonus rebate this year and although the annual results are yet to be released (Rural News spoke to him prior to the annual result announcement) it is likely that a loss will be announced.” Dennison told Rural News he is sick of hearing as an excuse the poor performance of the rural economy affecting Farmlands’ profitability. “Farmlands is operating in the same market as PGG Wrightson and Ravensdown, yet both these co-operatives are performing well,” he says. “Agriculture operates in a volatile market environment and any rural business needs to be agile, either enough to adapt to seasonal variances or to have built-in resilience to allow it to weather economic storms. When farmers are having a tough time on the land they do not want their incomes reduced by poor cooperative performance as well.” Dennison believes Farmlands’ scale of operation and shareholder base of 60,000 should give it a substantial competitive advantage over its competitors, but he says it has not leveraged this position to gain prominence in the market. “Farmlands needs to face up to the reality that the merger process has not gone well,” he adds. “It’s time to take a microscope to the way it operates and make the necessary changes to restore profitability. The time for excuses is over. It’s time for action and it’s time for change.” He says that in 2013 the CRT/Farmlands combination was described as the “perfect merger”. “However, three years down the track the chickens are coming home
NEWS ����������������������������������� 1-22 WORLD ������������������������������������� 24 MARKETS ������������������������ 26-27 AGRIBUSINESS �������������� 28-31 HOUND, EDNA ����������������������� 32 CONTACTS ������������������������������ 32 OPINION ���������������������������� 32-35 MANAGEMENT �������������� 36-40 ANIMAL HEALTH ���������� 41-44 MACHINERY AND PRODUCTS ���������������������� 45-50 RURAL TRADER ������������ 50-51
HEAD OFFICE Top Floor, 29 Northcroft Street, Takapuna, Auckland 0622 Phone: 09-307 0399 Fax: 09-307 0122 POSTAL ADDRESS PO Box 331100, Takapuna, Auckland 0740 Published by: Rural News Group Printed by: PMP Print CONTACTS Editorial: editor@ruralnews.co.nz Advertising material: davef@ruralnews.co.nz Rural News online: www.ruralnews.co.nz Subscriptions: subsrndn@ruralnews.co.nz ABC audited circulation 81,004 as at 31.03.2016
to roost and it is more like a perfect storm.” Dennison cites his previous experience on the Ravensdown board, which made changes to people, process and a new strategy that resulted in turning the fertiliser co-operative around as an example to follow. “Farmlands should do the same thing and restore itself to be a market leader.” He says he has been encouraged to stand for the board by farmers who are concerned about the leadership of the co-operative. “I’ve been inundated with contacts from unhappy shareholders and have become a bit of a touchstone for farmer
dissatisfaction with Farmlands.” Dennison believes his diverse directorship experience and connection to the land via his arable and dairy operations in North Otago make him a good fit for the board. Farmlands is now holding annual director elections and two candidates are standing for the South Island ward – Dennison and the incumbent director John Foley. There is no election in the North Island as the chairman Lachie Johnson was unopposed. Voting closes on Oct 25 and the results will be announced at the coop’s annual meeting in Christchurch on November 1. – Farmlands flops page 5
Winner!
Beckie Wilson (left), seen with lecturer Dr Catherine Strong, was named the winner of this year’s Peter Burke Agriculture Journalism Student Award at the recent Massey University journalism awards. Wilson won the award, named after Rural News Group senior reporter Peter Burke, for her story on South Canterbury farm worker and photographer Emma Coutts, published in Rural News last month. She says winning the award “really meant a lot and ended the course on a high”. She is now keen to work in rural journalism.
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FORMER WOOL BOSS UNIMPRESSED PAM TIPA pamelat@ruralnews.co.nz
WOOLS OF New Zealand (WNZ) has posted its first after-tax profit of $1.48 million for the year ending June 2016, but former chief executive Ross Townshend is keeping up the pressure. The company’s maiden profit results from a 16% improvement in wool sales, helping lift revenues past $30m for the first time -- to $31.5m, the company says. Operating profit increased to $681,000, a turnaround of $1.16m from the previous year’s loss of $493,000. The company sold 5.5 million kg of shareholders’ wool during the year, reflected in an increase in Wool Market Development Commitment (WMDC) income to $2.6m, from $2.2m in 2015. Commenting on the WMDC, chairman Mark Shadbolt says “at the time of our capital raising in 2012 the WMDC was critical to driving our marketing initiatives and investments. By 2014 we’d reduced our reliance to 20% of revenue and this year this has fallen to 8%, in spite of the WMDC’s increase in real terms.” But Townsend says the claimed net operating profit includes $2.6m of WMDC “donation”. “So without that – or in real terms – this is a $2m loss, not a profit. When WMDC runs out mid2018, WNZ will be broke,” says Townshend who is a shareholder and former chief executive of the organisation. “The directors need a Plan B, as I stated recently.” @rural_news facebook.com/ruralnews
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RURAL NEWS // OCTOBER 18, 2016
4 NEWS
Lamb price war unlikely DAVID ANDERSON davida@ruralnews.co.nz
HOPES FOR better lamb prices this season appear to be evaporating quicker than a summer shower. While New Zealand lamb meat prices rose in September, it was on the back of lower supplies, and analysts are predicting the lift will be temporary due to weak demand in the
British market. According to AgriHQ data, the benchmark CKT price for a leg of lamb in Britain rose to £4.20/kg in September, up from £4.10/ kg in August and £3.40/kg in September last year. However, NZ export returns are being hurt by the high the Kiwi dollar versus a weak British pound. In NZ dollar terms, returns were $7.51/kg in
September, up from $7.41/ kg in August, but vs $8.04/ kg a year earlier. AgriHQ says in NZ the average price from local meat processors lifted last month to $5.80/kg, up from $5.68/kg in August, but down on $6.05/kg in September last year. NZ lamb numbers are also forecast to decline this season after the number of breeding ewes fell 3.1% last
season, the 10th consecutive annual decline. This lower supply has bolstered prices in recent weeks, but that’s expected to ease once the main production period begins, thanks to weak demand in Britain and high level of the kiwi dollar and a weakening British pound. AgriHQ analysts report that UK demand for NZ product is low, due to low
Not interested – SFF SILVER FERN Farms (SFF) chairman Rob Hewett has dismissed claims that the newly merged meat company is about to start a bidding war for new season lambs. SFF’s deal with Shanghai Maling will come into force on January 4 next year, when the company will receive a $261 million cash injection from its Chinese partner. “We have no desire to
start a procurement war,” Hewett says. “It would be irresponsible use of funds.” However, like his Alliance counterpart, Hewett admits if a procurement war does flare up this coming season the company is now better prepared for it. “SFF now has a balance sheet that can withstand pressure in that space if we need to.”
Meanwhile, Hewett says farmgate returns need to link with inmarket returns and he concedes that it is “challenging” at the moment. “It is fair to say that since I joined the board this is the most uncertain outlook I’ve seen for all species except venison.” He says the impact of the strong kiwi dollar is harming export returns. “We’ve seen a 15-25%
WILSON
move against the euro, sterling and US dollar in the last 12 months. “However, in-market prices are roughly the same and processors are currently wearing this. This has not come home to farmers yet.” Hewett says the company has not yet settled on new season pricing. “It’s very challenging and we’re still working out where it’s going to be.”
consumer demand for lamb priced much higher than alternates such as chicken and pork. They also report that major UK supermarket chains are indicating they will step back from promoting chilled lamb this Christmas because they are unwilling to absorb the level of losses suffered in previous seasons. Meanwhile, talk of a possible procurement war breaking out between meat processors this season has been dismissed. During its recent round of shareholder meetings, Alliance said it is ready for any price battle for livestock, but the company does not expect rival co-operative Silver Fern
Farms to deliberately provoke a war. Alliance chair Murray Taggart told shareholders that lamb numbers are down by about two million since the last major processing plant closures and conceded that the conditions were ripe for a procurement war. However, Taggart and senior company executives told farmers at the meetings that Alliance would be “commercial and sensible” in its livestock pricing. A procurement war instigated by cashed-up Silver Fern Farms with its new shareholder Shanghai Maling is highly unlikely, Taggart says. He conceded that new partner Shanghai Maling
would provide SFF with good access to Chinese markets, but added that Alliance had excellent market channels through its Grand Farm partner. He was not negative about SFF building up in China as well, saying it could be great for opening up other markets. Meanwhile, chief executive David Surveyor admits that a 700,000 fall in lamb numbers this season means potential for a price war. However, he says while farmers might welcome a price war, he warns there would be consequences for farmers in the wash-up of any battle for lambs as processor margins are already being squeezed.
AUSSIE LAMB PRICES LOOK BRIGHTER LAMB PRODUCERS in Australia appear to be faring much better than their New Zealand counterparts, with falling numbers and growing demand hiking prices. Despite growing demand for lamb in Asian and Middle Eastern markets, there are questions about Australia’s ability to supply: recent Meat and Livestock Australia (MLA) data reveal sheep numbers falling there. ANZ predicts Australia will need an extra 22 million sheep by 2040 to maintain global market share and meet growing protein demand. Between 2013 and 2015, the Western Australia flock shrank 20% in the southwest and 31-41% in the northern and eastern regions. Drought in south-west Queensland and the pastoral country in NSW caused production to decline by at least 41%. All up, MLA estimates Australia now has 70 million sheep, expected to grow to 73 million by 2020 if average seasonal conditions prevail. ANZ head of agribusiness Mark Bennett
says he is unsure about where the remaining numbers will come from, but says it is likely that existing sheep farmers and outside investors will fuel the growth. “A lot of livestock infrastructure has been lost from the landscape over the last 20-30 years, like fencing, yards and sheds.” Bennett says the sector’s steady returns are attractive to investors. “There will be investment from outside the sector, and it’s attractive also to new investors because the capital outlay for sheep farming compared to cattle, for example, is less, but still there’s opportunity to produce a decent return.” The lower sheep numbers are reflected in the slowly climbing prices buyers are paying at saleyards. In early October, saleyard numbers were at a three-month high, but prices remained firm, at A$600 cents/carcase weight. Australian commentators report that a desire to rebuild flock numbers is also buoying prices in the re-stocker market, as farmers pay up for breeding stock to boost their numbers.
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RURAL NEWS // OCTOBER 18, 2016
NEWS 5 FONTERRA IN ‘POLE POSITION’ SUDESH KISSUN sudeshk@ruralnews.co.nz
FONTERRA CHIEF executive Theo Spierings says the co-op is now in pole position compared to its global competitors. “We have delivered on our strategy; capital structure, management structure and now governance structure – the complete framework,” he told Rural News. Spierings, who joined Fonterra in late September 2011 and has completed five years at the helm, says delivering such a strategy should normally take three years, from a management point of view. However, global instability and local issues like WPC80 false alarm and 1080 threats hindered progress. “We have taken more time but I think we have come out stronger,” he says. “In China in a bucket of international companies, we have moved back to number one position in terms of reputation. “That comes because you have a good value proposition but we also live through quite severe issues and we’ve handled them well.” The strategy was preceded by the launch of a milk price manual and Global Dairy Trade, a Fonterra initiative; a journey that started 10 years ago. Spierings says Fonterra is unique among global dairy players. “There is not a co-op on the planet that has a milk price connected to the globally traded arena; a fully transparent and competitive milk price. “We have a very strong milk price, no redemption risk, fair value share, a listed co-op and a strong global management - everything is lined up.” Delivering the strategy has also included capital investment. The co-op has put $3 billion behind the strategy - with optionality at processing plants, food service assets, buying a stake in Chinese company Beingmate and setting up dairy farms in China. @rural_news facebook.com/ruralnews
Farmlands flops RURAL SERVICES co-operative Farmlands has posted a $9 million loss for the 2016 year. In its annual report released late last week chairman Lachie Johnstone and chief executive Peter Reidie blame the loss on the tough year in farming. “The highs and lows confronting the sector are well documented and Farmlands has not been immune to them, posting
a $9 million loss for the year ended 30 June 2016,” they say. So bad was the year that, as earlier reported, no bonus rebate will be paid to shareholders “because the conditions we were experiencing would not allow it”. Johnstone says this announcement foreshadowed a full year loss, but he claims things are now improving. “Since the end of the
Lachie Johnstone
financial year our results suggest we are on track for a stronger 2017.” Reidie says: “the decline in sales, required adjustment to our cost
base and right sizing our organisation, after many years of growth,” became an urgent focus during the year. The co-op says its
nutrition and retail businesses were hardest hard hit. “Decreased foot traffic in our dairyoriented stores had a ripple effect, and some of our livestock and real estate business units were down on previous years.” But he says there were “positive contributions” from other parts of the business, in particular grain and seed.
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RURAL NEWS // OCTOBER 18, 2016
6 NEWS
Ireland’s special brand of G Origin Green, a scheme that verifies the sustainability of Ireland’s food and drink production, now has 100% of the country’s dairy farmers and 90% of beef farmers signed up to its extensive auditing. Ireland is the first country with such a scheme, now envied by many countries including New Zealand. Peter Burke during a recent visit to Ireland met the architect of the scheme. AIDAN COTTER is a quietly spoken man from Cork in the south-east of Ireland. He’s been chief executive of Bord Bia, the Irish Food Board, since 2004 and the visionary and implementer of Origin Green. Ireland and New Zealand are similar in many ways: the Irish countryside is often referred to as having 40 shades of green and it’s arguable NZ could claim this too.
NZ has used the ‘clean green’ phrase frequently, but the Irish have stolen a march on us by going one stage further – using an extensive, evidence-based science programme. Origin Green has been lauded worldwide and a
steady stream of visitors from countries with a strong agricultural base -- including New Zealanders -- are knocking on Cotter’s door to find out
Origin Green chief executive Aiden Cotter.
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RURAL NEWS // OCTOBER 18, 2016
NEWS 7
f Green such as Coca Cola, since the scheme was launched four and half years ago. Origin Green has used EU regulations on sustainability as its base platform, but it as gone much further, Cotter says. “We are carbon footprinting every farm in Ireland every 18 months. No other country is doing that,” he told Rural News. “We have a whole audit system above the EU legislative requirement. Origin Green is voluntary and the audit encompasses food safety, traceability, animal health and welfare, a range of environmental considerations and we have added on biodiversity, water conservation and a lot of other areas.” Cotter says Ireland as a nation understands that it lives or dies by global mar-
12 years in the making
kets, and that to be successful it needs a point of difference – which Origen Green gives. He says while no farmer likes being audited, they recognise it is part of the price of gaining and retaining world market share. He points to the importance of Ireland’s agricultural exports -- 90% of its beef, in particular, is exported. Next year, Cotter will step down from his role as chief executive of Bord Bia, the most exciting and rewarding thing he’s ever been a part of, leaving a huge legacy. He has claimed the high ground on sustainable food production for Ireland and put in place a system other countries, such as NZ, can only wonder about not having achieved.
MORE
THE CONCEPT of Origin Green was hatched some eight years ago when Bord Bia, with PwC, undertook a study to assess the sustainability credentials of Irish food and drink products. “The word came back that we were green, but it was no longer sufficient to say it; you had to prove it and we decided to do this,” Cotter explains. “We could have pointed to our geographic location – the edge of Europe, washed by the Atlantic gulf stream and that our air quality is amongst the highest in the EU and that we had water in abundance – far too much they would say. “Even the EU has subsequently shown that our dairy industry has the joint-lowest carbon footprint in the EU so we could have pointed to all that. But we decided we would prove we were green farm by farm, factory by factory.” To do this, and to set up an
internationally credible, quality assurance audit scheme for farms – Bord Bia sought help from expert organisations within Ireland and overseas. These included The Carbon Trust in the UK and Ireland’s own research organisation Teagasc. It developed measures
of biodiversity, water conservation and management, energy emissions and social sustainability. For farmers, the organisation developed the Carbon Navigator – a tool with clear criteria about what farmers needed to achieve and how to achieve them. “When we launched the scheme in 2012, we resolved not only to prove how green Ireland
might be, but to become a world leader in sustainability in food and drink,” Cotter says. “We also promised we would get everyone on the journey – every farm and factory by 2016 -- and measure everything that mattered, and in doing so recognise that sustainability is a very broad thing. We also said we would use internationally recognised measures or independent verification if there weren’t yet international standards. The final commitment was to make Origin Green a scheme of continuous improvement.” Cotter says throughout the process they were conscious of being accused of ‘greenwashing’, hence the stringent, evidencebased science approach. Irish farmers, Cotter believes, recognise that Ireland has to do something special and so most
farmers have signed up, as have 520 food and drink companies, many of whom have imposed stretched targets on themselves. Farming and industry leaders have backed Origin Green and it now has unstoppable momentum and is going from strength to strength. There are also financial incentives for farmers who sign up to the scheme and meet the criteria. While the Origin Green is a voluntary scheme, dairy cooperatives are moving towards making suppliers’ participation in it a condition of supply. Origin Green is a business-tobusiness initiative but it may take the next step of going to consumers -- challenging in that it then must comply with EU competition rules. Bord Bia is a governmentfunded agency which reports to the Irish Minister of Agriculture. However, it charges industry for some services and gets some funding from the beef, lamb and dairy sectors. – Peter Burke
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NEWS 9
Assessment key to success of Irish programme Joe Burke
PETER BURKE peterb@ruralnews.co.nz
AN ASSESSMENT tool known as the Carbon Navigator is used to assess each beef and dairy farm. This is a booklet that tells the farmer what are the requirements to comply with Origin Green and how to improve their farm’s performance in such things as nitrogen efficiency, energy efficiency, slurry management and how to reduce greenhouse gas emissions. Andrew Mullins, Bord Bia’s sustainability development manager, says the Carbon Navigator also takes account of the location of each farm and the environment in which it operates. “Because if you are a farmer in the west of Ireland, around Galway, compared with a farmer in the south east, near
Andrew Mullins
Cork, it is very different – even in terms of terrain so we had to recognise that,” Mullins told Rural News. “The system is very practical and easy for farmers to understand and implement. Essentially it’s a tool to boost farm profitability.” Once signed up to Origin Green, farmers are
audited every 18 months and get a full report and score card on how they have performed. They also have a Teagasc farm advisor who helps them through the process and gives advice. Dairy cooperatives have their own advisors who also assist farmers to get the best possible results. Irish farmers have
been quick to take up technological advances on farm. Most farmers have smartphones and these help them meet the Origin Green conditions. At the National Ploughing Championships in Ireland, last month, Bord Bia had an impressive site and a steady stream of farmer visitors. Chief executive
Aidan Cotter was there along with Joe Burke, the sector livestock manager for cattle at Bord Bia. Burke is a Nuffield Scholar who’s visited NZ twice in the last year or so and is full of praise for our farming and processing industries. At the Ploughing Championships -- like NZ’s Fieldays minus the ploughing -- Burke was constantly fielding questions about Origin Green. He says his role is to make the scheme relevant to farmers. “Farmers could be excused for thinking that carbon footprinting only affects politicians, when they are sitting around debating greenhouse gas emissions,” he told Rural News. “But this is bringing home to farmers – in their own community – that it does relate to them and their livestock.”
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work experience, Aidan Cotter says. “They take three six-month placements in major international companies – Coca Cola, McDonalds, Starbucks, Nestle, Unilever, Danone – and the World Bank and World Wildlife Fund. “In each of these placements they work on a particular sustainability project where they would
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RURAL NEWS // OCTOBER 18, 2016
10 NEWS
Brexit angst for Irish farmers PETER BURKE peterb@ruralnews.co.nz
IRISH SHEEP and beef farmers are blaming Britain’s planned exit from the European Union (Brexit) for lower-thannormal prices for their stock. Farmers spoken to at recent sheep and cattle marts in the west of Ireland, near the city of Galway, blamed the uncertainty over Brexit for low prices. Patrick Canny, who runs 700 mountain sheep in the vicinity of the town of Maam Cross, says the
Brexit issue is not helping the situation. Tom Connolly, who runs beef cattle near the town of Moycullen, echoes these views, saying it is virtually unprofitable to farm these days given the low prices. Like others he see Brexit as the culprit because it is affecting the value of sterling versus the euro. These sentiments are shared by Joe Healy, the president of the Irish Farmers Association (IFA), who notes that Brexit has created a vacuum of uncertainty because no one has any
idea of what the terms will be for Britain’s exit from the EU. Healy says in Ireland processors have taken advantage of Brexit and the move in currency and are trying to drop prices way below what could be justified. The beef market for Ireland is very important because at least 90% of production is exported. Eamon Nee runs about 300 ewes on the steep rocky hillsides of Connemara, where it’s sometimes hard to distinguish the mountain sheep from the rocky outcrops and
heather they shelter near. He says it’s been a terrible year. “Our store lambs trade is on the floor at the moment, some of this is due to bad weather in the form of incessant heavy rain. The wet has ruined the grain harvest and this has had a knockon effect,” Nee told Rural News. “Our lambs go up to the better land to be finished and the prices at present are poor. Prices for our mountain store lambs range from 30 to 40 euros, whereas last year we were getting 40 to 50
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Irish farmer Eamon Nee says poor sheep prices are forcing him to seek work off farm.
euros. So it’s a considerable drop,” he says. To add to his woes, the coarse hill wool his sheep produce is getting a mere 50 cents/kg which Nee says is poor. With the low prices, he is being forced to seek additional work
off the farm to make a living. His great fear is that the younger generation of sheep farmers will walk away from the tradition of running hill country farms like his. “We fear down the
road that the younger generations will not do this hard work; some just want an easy life and this isn’t. But it’s important that sheep are run on these mountains because they keep the environment in good condition,” he says.
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RURAL NEWS // OCTOBER 18, 2016
NEWS 11
Fieldays worth $191m to economy A REPORT on Fieldays 2016 says the event generated $430 million in sales revenue for New Zealand firms, up 9% from 2015. Of this figure, $124.5m revenue was generated by firms in the Waikato region. The affect on GDP was calculated at $58m for Waikato and $191m for all New Zealand. “One highlight of the report is that, despite the downturn in dairying, the results were better than expected,” says Waikato University’s Dr Warren
Hughes, the report’s author. “The number of exhibitor sites went up 4% to 1507 and the number of gate entries also increased to 130,684, about 4% higher than 2015.” The report also found that for every visitor through the gate, Fieldays generated $3300 in sales revenue for New Zealand firms, including machinery and equipment sales. It also claims that 60% of Fieldays visitors bought or planned to buy equipment this year, versus
53% in 2015. Fieldays also helped generate 708 (fulltime equivalent) new jobs for Waikato and 2021 new jobs across all NZ for 2016, up 13% on last year. “Not only goods and services are sold during
and after the event,” says Fieldays chief executive Peter Nation. “There are also jobs created, and surrounding towns and cities benefit hugely during Fieldays, as well as before and after the event.”
Fieldays chief executive Peter Nation.
‘PLANNING FAILURE’ A POSSIBILITY PAM TIPA pamelat@ruralnews.co.nz
LAND AND water remain the key constraints to growth in horticultural production, HortNZ has told the Productivity Commission. Of the 5.5% of land available for production in New Zealand, roughly one tenth was subdivided for lifestyle blocks in the last 15 years, says Angela Halliday, manager natural resources and environment. HortNZ chief executive Mike Chapman is warning that staples of the NZ food basket, such as carrots, potatoes, onions and leafy greens must be a consideration in urban planning. “Parts of the NZ food supply chain are, in our view, being affected by constraints on production because of competition for suitable land for housing, and access to water,” Chapman says. “Effects of shortages, or no supply, may result in increased prices for access to food staples such as carrots, potatoes, onions and leafy greens.” He warns it would be a serious planning failure for NZ to have food shortages and to have to import fresh fruit and vegetables that can be grown here. A recent Auckland Council report, which investigated growers in the premium vegetable growing area of Pukekohe, south of Auckland, concluded that research needs to look at the consequences of continuing urban growth and rural fragmentation on both the region’s, and the country’s, food growing capacity. “This will become ever more important as the population continues to grow,” the report says. Halliday says horticulture is a very efficient high value industry. For a comparison, 50,000 people are employed in the $7 billion industry, operating on 123,000ha. Dairy returns around $18b and employs 30,000 people on 2.5m ha. Combined domestic sales of horticulture products exceed $3.4b and with exports of $4.1b the industry exceeded $7.5b for the first time. Chapman says horticulture needs room to grow, alongside expanding urban areas. HortNZ made the submission on the Productivity Commission’s draft report Better Urban Planning. The commission’s final report on urban planning is due in Government hands on November 30.
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RURAL NEWS // OCTOBER 18, 2016
12 NEWS
Agribusiness champion calls for more entrepreneurship PAM TIPA pamelat@ruralnews.co.nz
MORE ENTREPRENEURIAL spirit is needed in the New Zealand agri-food sector, says meat industry pioneer Sir Graeme Harrison. “Leadership requires taking opportunities. One thing that worries me in NZ is [a lack of] entrepreneurial spirit and willingness to stick with a business for a long period of time,” Harrison told Rural News. The chair of Anzco has won the 2016 Rabobank Leadership Award in recognition of his extraordinary contribution to the food, beverage and agribusiness sector. It is the second year in a row a NZer has won the honour; former Fonterra chair Sir Henry van der Heyden won in 2015. Harrison says if you are in business long enough difficult things will happen, but this becomes a learning curve.
Anzco chief Sir Graeme Harrison.
“You need to be resilient and you need a team of people to be resilient as well,” he says. Leadership requires taking opportunities and getting the right people to execute them, he says. “Getting the right people entails a whole lot of things: getting the
shareholders, a suitable management team and, if you start in the market place like we have, it also about ‘going local’. Many of our overseas offices are manned by people who are local nationals. “It is combination of all those things; obviously back in our plants we
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need very capable people to lead those and we need experienced supervisors. “So it is a combination of those skills that make a business work. “Someone can have the vision but we still have to get the right people – it won’t happen otherwise. People are the key to leadership.” Asked if he thought the ag sector had enough leadership potential, he says NZ has the capability. “But I’m worried we don’t attract enough people from the urban sector who see the real opportunities the agrifood sector can provide to the future of NZ,” he says. “We already contribute over 70% of the country’s merchandise trade. But the prospects have never been better in terms of the growing middle class in Asia and our ability to service that.” Trade liberalisation is vitally important to NZ, he says. Although Brexit and the US presidential campaign are current influences, we’ve
got to keep up the efforts. “I believe we will continue to be successful and the opportunities are there for us. So I want to see more urban people looking at careers in the agri sector. “The ag sector has to get that message out [because] unfortunately there are still some people who have the view that the agri sector is old industry. “Not at all; people are even more conscious of what they are eating. So the opportunities, particularly at a niche scale, are there and we need to take advantage of those. “The ag sector needs to look at skills right along the chain – everything from servicing customers and reacting to those in the marketplace right back to skills in adding value to our products. “That is much harder than people imagine. It is a very, very difficult process. You have to have medium to long-term views. If you get short term wins you are lucky.”
RURAL NEWS // OCTOBER 18, 2016
NEWS 13 MEAT INDUSTRY PIONEER TAKES AGRI – ACCOLADE SIR GRAEME Harrison is a “true champion of agribusiness”, who has made an enormous contribution in New Zealand and in international meat industry trade, says Rabobank Australia & NZ Group managing director Peter Knoblanche. Harrison is winner of the 2016 Rabobank Leadership Award for his extraordinary contribution to the food, beverage and agribusiness sectors. As founder of Anzco Foods he built a business from nothing to its present annual turnover of $1.5 billion, employing 3000 people in NZ and eight overseas locations, marketing to at least 80 countries, Knoblanche says. “And even more outstanding is his achieving this in an environment and over a time that has been notoriously challenging for the meat sector in NZ, with Anzco formed in the wake of the deregulation of the NZ economy and agricultural sector. “This saw the virtual overnight removal of subsidies to sheep farmers – a move that led to the New Zealand sheep flock declining to less than 50% of what it was in 1984. “To have established and grown a meat processing and marketing business over this time, as well as expanding into Asian markets outside the traditional focus for NZ sheep and beef export markets into the UK and US, is nothing short of exceptional.” Knoblanche says Harrison is a “natural entrepreneur who is a passionate advocate for NZ agribusiness, championing the potential of the country’s agricultural, forestry and seafood industries at every opportunity”. Hailing from a mid-Canterbury farming family, Harrison in 1984 founded Anzco as a sheepmeat marketing company for the Meat Board in Japan. The company expanded into beef and opened the NZ sheep and beef industry’s door into the Asian market while Harrison was managing director of Anzco for 20 years before becoming chair in 2004. In 1995, he led a management buyout of Anzco, and in 2001 the company settled on its current shareholding comprising Japanese food companies Itoham Foods and Nippon Suisan, as well as directors and management. Knoblanche says Harrison’s commitment to developing export opportunities for NZ agribusiness included his roles as chair of the NZ International Business Forum and a director of the huge southern hemisphere seafood company Sealord (50/50 jointlyowned by Maori and Nippon Suisan). Harrison has also been a member of the New Zealand China Council and was an independent director of Westland Milk Products. Harrison has served on the council of the Meat Industry Association and as a director of Meat & Wool NZ, the NZ Meat Board and the consortium NZ Lamb Company in North America. In July 2011 Harrison was awarded a knighthood for his services to, and achievements in, business. He was named Federated Farmers Agribusiness Person of the Year in 2010. His role in strengthening economic relations between Japan and NZ was recognised by the Japanese government in 2015, when he was awarded the Order of the Rising Sun (Gold Rays with Neck Ribbon). Sir Graeme, who holds a doctorate in commerce from Lincoln University and a MA (Hons) from the University of Canterbury, is an adjunct professor at Lincoln University and a member of its council. Outside of work, he is a long-time marathon and half-marathon runner, crediting fitness as a key to mental strength and focus in business.
New Massey VC appointed A VETERINARY scientist with an international reputation for her teaching, research and academic leadership is to be the next vice-chancellor of Massey University. Professor Jan Thomas is currently vice-chancellor and president of the University of Southern Queensland in Toowoomba, Australia. Massey University chancel-
lor Chris Kelly says Thomas was appointed after an international search to replace Steve Maharey, who is stepping down at the end of the year after eight years in the role. Thomas will be the sixth vicechancellor to lead Massey University and the second woman, after Judith Kinnear (2003-08). @rural_news
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RURAL NEWS // OCTOBER 18, 2016
14 NEWS
Ag won’t be joining ETS – for now PAM TIPA pamelat@ruralnews.co.nz
CLIMATE CHANGE Minister Paula Bennett has ruled out bringing agriculture under the Emissions Trading Scheme (ETS) within the next few years. But long term, if technology is available to reduce agricultural emissions the ETS is an option that could be used to ‘incentivise’ the use of that technology, she says. The Government will in the next 18 months map its way forward in its response to climate change, Bennett told a Climate Change and Business Conference in
Auckland last week. This follows New Zealand ratifying the Paris agreement earlier this month, joining a group of countries responsible for 55% of global carbon emissions. The climate change agreement move is much faster than expected, several international speakers said. NZ’s Paris target – a 30% reduction from 2005 emissions levels by 2030 – is “fair and ambitious, and will not be easy for us to reach,” Bennett says. But she told Rural News there is no intention at this time to bring agriculture within the ETS.
“But I don’t know what it will look like in 10 years. [It may not] affect productivity – in fact some research they’re doing could enhance it – and there are options for reducing emissions such as inhibitors and others that can achieve reductions of 30-50%. You have to look at the uptake of that and how you incentivise it. “The ETS could be one of the options in the mix, but we’re not looking that in the next few years.” The aim is to get more consistent practice on farms and that is one area a new technical advisory group will be looking at to reduce emissions farm
by farm, Bennett told the conference. A range of technology is already under investigation: vaccines, inhibitors, breeding out a percentage of methane emissions, mainly from cows but also from sheep. Bennett says the next 18 months will be critical in planning NZ’s response to climate change. “It will require change by all parts of NZ society but I have no doubt NZers are up for it,” she says. “Large parts of our plan are already underway, and our target will be met through a combination of domestic emissions reductions, removal of greenhouse
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Climate Change Minister Paula Bennett.
gas emissions from the atmosphere by forests, and international carbon markets. “The Government is looking at pulling together the various threads required to figure out a mix that works for our particular domestic circumstances.” The technical advisory group announced a few weeks ago will provide strong evidence and analysis on an economywide approach to adapting to the effects of climate change. Its members and terms of reference will be announced soon. This group will complement the work of the biological emissions and forestry reference groups announced recently by Primary Industries Minister Nathan Guy. MPI will fund 13 research projects in agriculture and forestry totalling $3.1 million
through its Sustainable Land Management and Climate Change research programme. Some key pieces of work from the Government’s plan are underway, says Bennett. “We are now halfway through the ETS review, and the most forceful message we have heard so far is that increased policy stability and certainty are critical. “Businesses need to know where policy is heading over the next five, 10 and 15 years so that they can have confidence when investing in new technologies. “We’ve also heard a lot from foresters, especially that they want higher carbon prices and increased policy stability.” The carbon price is now about $19/tonne compared to about $7/t at the same time last year. They are now focused on making sure the NZ ETS
gives more policy stability. “We’re committed to working with the forestry and agriculture sectors to identify what’s possible in these sectors, and what the benefits and costs of certain actions are,” says Bennett. Too many people still switch off when they hear the words climate change, she says, because it seems overwhelming and complex. When she speaks to farmer audiences she reminds them how much they have changed already. “Farmers don’t farm like they used to – they wouldn’t be in business if they did. Consumer pressure is changing how businesses think about the footprint they are leaving…. They have already made big adjustments to the way they live and operate over the last 15 or so years.”
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RURAL NEWS // OCTOBER 18, 2016
NEWS 15
Scheme helps 1000 a week ORGANISERS OF the rural wellbeing programme Farmstrong say it has exceeded expectations in its first year, supporting on average 1000 people each week to live and farm well. In its recently released ‘Making it Happen’ – an annual report-style document -- Farmstrong refers to its first-year reach, impact and successes, notably its website getting 51,451 unique visitors in the first year – reaching
around 1000 people a week. “We’re rapt with the way Farmstrong is tracking. We knew we’d make an impact for farmers and growers, but we couldn’t have dreamed it would gain this much momentum so quickly,” says spokesman Gerard Vaughan. Other highlights from the report include: ■■ 6205 Facebook followers and 1100 on Twitter
31 Healthy Thinking workshops attended by 1122 farmers, growers and agri-professionals ■■ 1003 participants in the Farmstrong Challenge, travelling 633,216km ■■ 22 South Island rural comedy shows attended by 3150 people. “These results show there’s a need for this kind of support in farming and farming communities in New Zealand. ■■
“Before we launched Farmstrong we asked farmers what they wanted from a wellbeing programme, and we’re delivering on their requests with such topics such as sleep, nutrition, exercise and ways to get off the farm more,” says Vaughan. “We want to congratulate and thank everyone who has got involved and taken something from Farmstrong. “For us the most important
asset on the farm is the farmer, and we’ll continue to deliver farmer-led programmes, initiatives and resources to support farmers with this. “We’re only just getting started. We have a stack of great initiatives on the horizon and are keen to share these with all Kiwi farmers, to help more people live well and farm well.” www.farmstrong.co.nz
MORE TREE PLANTING TO MEET OBLIGATIONS PAM TIPA pamelat@ruralnews.co.nz
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THE GOVERNMENT is looking at how to get more trees planted as a key part of meeting its Paris agreement obligations, says Climate Change Minister Paula Bennett. This is part of looking at what the supply of units into the NZ emissions trading scheme (ETS) in the 2020s might look like. “If forestry is cheaper than purchasing international units -- and we think it might be -- there is a strong economic case for planting more trees,” she says. “For example: investing in 10,000ha of forestry in 2018 will deliver 3.1 million tonnes of abatement over the 2020s, of the 235m total we need to reach our 2030 target. “This could reduce the number of units we’ll need to purchase internationally. “Some of the forestry changes we are looking at include how to make the NZ ETS more attractive to foresters,” she says. “We know that forests [and foresters] come in all shapes and sizes, so it’s a matter of understanding what mix of approaches fits best. “This includes looking at how forestry is accounted for in the NZ ETS, and how to reduce some of the administrative and compliance costs faced by foresters and the Government.” Forestry is important because it is the most important means of absorbing domestic carbon emissions, she says. “It can deliver at scale and is likely to cost less than purchasing international emissions reductions. “And the great thing about forestry is the environmental and economic co-benefits it brings within NZ. These include erosion control, biodiversity and water quality benefits, opportunities for our regional and iwi economies, and carbon removals beyond 2030. “A key focus of the NZ ETS review is how to promote more planting by ensuring there is a good price incentive to plant trees -- but we are looking wider than this. We want to ensure our range of forestry policies will help meet our Paris target.”
5/09/16 8:44 AM
RURAL NEWS // OCTOBER 18, 2016
16 NEWS
Cracks found in Fonterra milk silos SUDESH KISSUN sudeshk@ruralnews.co.nz
FONTERRA SAYS weld cracks were found at the base of the raw milk silo that collapsed last month at its Edendale plant.
Welding cracks were found at the base of milk silos at Fonterra’s Edendale plant.
Checks revealed cracks at other silos at Edendale, Southland and at one silo in Clandeboye, South Canterbury. Fonterra chief operating officer global dairy operations Robert
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Spurway says repair work at the silos have now made them safe to use. He says it’s too early to say why the cracks appeared. “Our focus now is to understand why cracks appeared, then make sure they don’t happen again,” he told Rural News. The silo, supplying milk to Edendale’s E4 milk powder dryer and whey protein concentrate plant, collapsed last month. Now the silo is recommissioned and milk is flowing through ED4, the plant having reopened ahead of schedule. Around five million litres of milk were processed through the dryer over the first 48 hours of operation last week. Spurway says a lot of work went into getting ED4 – Southland’s biggest dryer – back online following the silo collapse. “We’ve engaged a strong team of third party experts and engineers to work alongside us throughout the clean-up and investigation. That has allowed us to get the dryer back up and running quickly, while also giving us further assurances that our site is a safe place,” says Spurway.
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MARKS & Spencer says it will no longer stock New Zealand lamb in its Scottish stores and will sell only locally produced lamb. Beef + Lamb NZ chairman James Parsons, who was in Britain, France, Ireland and Belgium last week to assess what impact Brexit may have on NZ meat exports, was present for the Marks & Spencer announcement. He says Scottish farmers have pushed the supermarket for some time to support local produce. “From our perspective it’s disappointing – not just from a parochial perspective either,” Parsons says. “In my view, this is actually bad for the lamb category because currently we have NZ lamb basically going up to the UK in their off season when they don’t produce product.” He added that for the Scots to supply for 12 months of the year a lot of old-season lamb will have to be used to maintain year-round supply. “I don’t think that’s a great experience for the consumers.” Parsons says Marks & Spencer imported only small volumes from NZ – around 29,000 lambs annually. “To put it in context, we’re talking about 10 or 12 NZ farms and of that, only about half of the carcase; they don’t use the whole carcase at Marks & Spencer stores.” He believes other supermarkets will pick up the market share and business if consumers do not get what they want from Marks & Spencer.
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RURAL NEWS // OCTOBER 18, 2016
18 NEWS
Canty irrigation s region already NIGEL MALTHUS
THE ENVIRONMENTAL benefits of Canterbury’s Central Plains Water irrigation scheme are already evident as the scheme progresses into stage two, says chief executive Derek Crombie. Stage one of the scheme is already irrigating about 20,000ha of farmland north of the Rakaia River, with water taken from an intake on the Rakaia about 8km downstream from the gorge. Stage two, broadly serving the area between stage one and the Waimakariri River, recently got the go-ahead, with unanimous approval from at least 200 shareholders at a special meeting. Crombie says stage two is now at the advanced design stage. Construction contracts are expected to be signed soon, with some site works possible before Christmas and construction likely to begin soon after. This will see another 20,000ha of the Canter-
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bury plains irrigated and it is expected to be complete by this time in 2018. The smaller, physically separate, Sheffield scheme also got approval to proceed. Irrigating 4250ha with water taken from the Waimakariri, it also should be complete this time next year. Crombie says the scheme replaces unsustainable groundwater abstraction with sustainable surface water. Stage one, operating for just one season, has already reduced groundwater abstraction by about 75%. Despite a continuing drought, groundwater bores in the stage one area have maintained their levels, while bores in the stage two area have continued to decline. Some farmers in that area have been unable to start irrigating this season, he says. “So they’re on restrictions from day one. We expect this will get better. So once we have a more normal year, we’ll expect to see these groundwater levels rise.
“We’ve reduced the groundwater take by about 20 million cubic metres, a lot of water.” He adds that replacing groundwater with surface water irrigation also benefits farmers in the scheme area who choose not to sign up with CPWL but continue to draw off their own bores. “Some people have taken that choice. Over time, who knows?” Crombie says. “I suspect society’s going to say we don’t want that groundwater taken, and those people may have to reconsider. If there’s a better option, why wouldn’t they use it?” For Crombie, who was a founding trustee when the scheme was launched in 2003, the stage two goahead is the culmination of years of hard work. “There’s always been a way forward, but at times it’s been challenging in terms of funding or uptake and commercial realities. There have been a lot of hurdles to get over, but I’ve never once felt this wasn’t achievable.” The scheme had been
RURAL NEWS // OCTOBER 18, 2016
NEWS 19
n scheme benefiting
Derek Crombie
contentious, particularly the original idea of a storage dam fed from the Waimakariri River, flooding a large part of the Waianiwaniwa Valley in the Malvern Hills. In the face of strong opposition that concept was dropped in 2009. Construction began in 2014, stage one consisting of a 17km above-ground canal heading northeast from an intake structure on the Rakaia River, and feeding 130km of buried distribution pipes. Stage two has also been much re-thought. Instead of the stage one canal being extended all the way to the Waimakariri, with water being taken from both rivers and able to flow in either direction, the stage two area will be serviced solely by Rakaia water taken from the end of the existing canal.
It will also be entirely underground, consisting of about 21km of 2.5-2.6m diameter glassreinforced polymer main trunk pipe feeding a further 184km of HDPE pipes to the individual farms. Crombie says it will be $50 million cheaper and much less invasive than the original stage two proposal. “That’s a major refinement and it’s come about for two reasons. First, the amount of water required has reduced over the years with better irrigation practices. Second, the materials... have come on the market since the concept was developed.” Another key to its success is a 2012 agreement with Trustpower -- operators of the Lake Coleridge hydro dam -- to take water from Lake Coleridge at times of low flow in the Rakaia. No special infrastructure is needed, since Trustpower simply spills water into the Rakaia as required. “If we want water tomorrow, they’ll release it at midnight tonight and it’ll be down [at the scheme intake] by tomorrow morning,” Crombie
explains. He says the scheme was taking water from the Rakaia catchment under strict conditions: no one can take water from the river when flows go below its limit, but then the scheme is able to draw off Lake Coleridge. “There’s 300 million cubic metres of water in
Lake Coleridge. Our total storage demand is about 100 million cubic metres so we’re not taking even a third of the water in the lake and the lake’s being refilled all the time, obviously,” he adds. “There’s something like 700 million cubic metres going through that lake every year. It’s a big bucket.”
Water is taken from the Rakaia River about 8km downstream of the Rakaia Gorge.
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RURAL NEWS // OCTOBER 18, 2016
20 NEWS
Farmers set to test the waters SUDESH KISSUN sudeshk@ruralnews.co.nz
FARMERS in Waikato will be testing a proposed plan to improve water quality in the region. The Healthy Rivers: Plan for Change recommends getting more stock out of water and further restricting land use intensification -- proposals that are of concern to farmers. Federated Farmers is leading a project to find out how tricky it will be for farmers to comply with the new plan. It will be the first time Feds has had time to test a plan, give feedback and press for changes. The ‘Healthy Rivers On-Farm Project’ will study the application of the new plan change in a practical, onfarm way, using 12 different farmers and farm types as case studies. “Normally we only find out how
much impact a plan change will have after it’s been put into regulation,” Federated Farmers Waikato chair Chris Lewis says. “But done this way, we get to test drive the council’s thinking, then we get time to gather feedback from our members and go back to the council with solid suggestions for improvements to their plan.” The project is being jointly funded by Federated Farmers Waikato, Waikato Regional Council, Fonterra, DairyNZ and the Foundation for Arable Research. Of the 12 farms selected, 10 are either all drystock, or a mix of sheep, beef, dairy and arable. Council chief executive Vaughan Payne acknowledges farmers’ concerns about the proposed new land use restrictions, which would make it harder for them to more intensively farm land.
But there are benefits, he says, notably that the rule would require application for resource consent by farmers who want to intensify, and this would enable the council to require mitigation of any extra contaminants contributing to water quality decline. “The concept of controlling water quality impacts by requiring resource consents has been applied to the intensification of urban areas for decades. It’s appropriate that we now apply the same approach to the intensification of rural areas,” Payne says. “Another key benefit is that land use intensification restrictions, along with other proposed rules in the plan change, would help protect the huge investment already made by taxpay-
THERE WILL BE PAIN FEDERATED FARMERS is concerned that members living outside the immediate Waikato Federated Farmers province have not heard enough discussion about the plan change. “Farmers in Rotorua/Taupo and Auckland Feds provinces also need to get up to speed on this process,” Rotorua/Taupo provincial president
ers, ratepayers and individual farmers and growers, in improving water quality in the region.” Lewis says the project will make all members in the Waikato and Waipa
Alan Wills says. “The council is trying to give the people affected time to adjust, but there will be people who have not caught up with what’s going on. Feds has been working almost three years on the implications of the plan change as part of the council’s stakeholder consultation group.
catchments think about the plan change. “We need members to understand what it means for their businesses,” he says.
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RURAL NEWS // OCTOBER 18, 2016
NEWS 21
Water still big issue for new council NIGEL MALTHUS
CANTERBURY’S WATER quality looks set to continue dominating the Canterbury Regional Council’s deliberations as it returns to democratically elected governance after six years under Governmentappointed commissioners. The new model is still partially appointed: the seven recently elected councilors will be joined by up to six commissioners yet to be appointed by the Government. The newly elected representatives are Rod Cullinane, Steve Lowndes, Lan Pham and Cynthia Roberts for the Christchurch constituency, John Sunckell for Mid-Canterbury, Claire McKay for North Canterbury, and Peter Scott for South Canterbury. It’s a line-up stacked with experience in water use, irrigation, farming and waterway ecology. Several have already served on their respective water zone committees. Rod Cullinane, the general manager of North Canterbury Fish and Game, says his priorities may depend on the final make-up of the council.
“Certainly of the elected ones whom I know, primarily the Christchurch city candidates, they are all focussed on water being the number one issue.” He identifies some immediate issues such as compliance and lack of enforcement, citing an incident this week when Fish and Game staff found cattle standing in the Otukaikino Stream. “I understand there are only four people in the compliance team actually out and about in the field. If that’s correct I’ll be asking why such minimal resources are allocated to compliance.” Steve Lowndes, who has chaired the Banks Peninsula zone committee, says water management will be his most important role as councilor. However, the process is not about taking sides but “everyone sitting down and talking”. He says the cumulative effect of all the groundwater consents granted over the past 20 years was never taken into account and has led to over-extraction in certain zones. “We’ve got to put the brakes on somewhere, somehow. I know the
logical to me.” Ecologist Dr Cynthia Roberts also says clean water is a top priority but she is keen not to promote a rural-city divide. “We’re all both beneficiaries and culprits in what’s been happening.” Along with Lowndes and Roberts, freshwater Peter Scott Rod Cullinlane ecologist Lan Pham was elected to the Christchurch farming community is doing everything it can. At the same time, I have to constituency on the People’s declare a personal opinion -- overly Choice ticket, whose election policy intensive dairying is not suitable on document started with “clean water and swimmable rivers” and included the plains.” Lowndes is calling for efficient encouragement of sustainable farming irrigation, switching from using practices. Pham says her priority is “the health the aquifers to using surface water irrigation sourced from the mountain- of our people and our planet,” setting fed rivers. With climate change forecast clear policy and “moving ECan in any to bring more westerly weather and direction we can to achieve true longmore rain to the West Coast -- 17% term sustainability”. Pham says talk of a city-rural split is more by one estimate -- some of that gets into the headwaters of the braided false and unhelpful. “I know that as individuals we rivers, he says. “This is the insurance for the future all want the same things -- a healthy and prosperous -- to capture that water in flood, to store environment it and distribute it. That seems perfectly communities. We want it all and we
can have it.” Asked whether dairying has been the culprit in Canterbury’s water woes, Leeston dairy farmer John Sunckell says there is “some truth in it, I’ll be honest”. “I recognise some of the damage that has been done but I don’t recognise that it has all been dairy in the past 15-20 years. But we are now starting to turn things around.” Sunckell says that having spent six years on his local zone committee working under the Canterbury water management strategy, he knew people now well understand the issues. Echoing Lowndes’ support for riverfed irrigation, Sunckell sees the Central Plains Water scheme as a way forward. With Stage I of the CPW scheme replacing 80 million cubic metres (75%) of groundwater draw in the scheme’s coverage area, the wells in his Selwyn-Waihora Zone had maintained their levels despite the drought. “We are just starting to see things coming through that are going to be of real benefit to the environment and our turnaround.” Claire McKay, a Cust TO PAGE 22
RURAL NEWS // OCTOBER 18, 2016
22 NEWS
Ruataniwha’s future up in the air CHANGES COULD be on the cards for the proposed Ruataniwha water storage scheme in Hawkes Bay following recent local body elections.
Fenton Wilson
Results from this month’s local body elections mean the balance in the council has shifted to a majority opposing the dam from the pre-election
majority support. With around $20 million already spent and many years of work gone into the scheme, former council chairman Fenton
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Wilson does not believe the a new council spells an end to the dam. He says while a newly elected council could choose to back-track on up to 50 decisions made on the scheme, this would require huge amounts of time, a revisiting of public consultation and cost to ratepayers. Wilson and other dam supporters Alan Dick and Debbie Hewitt were reelected. “Given the amount already spent on the process, before that money was written off you’d want to make sure that was absolutely the right decision to make, and people would need to be a little better informed,” Wilson says. However, re-elected Hastings councillor Rex Graham, tipped to take over as new chairman this term, is calling for a moratorium on Ruataniwha. Graham and fellow dam opponents Tom Bel-
ford, Rick Barker and Peter Bevan were all returned, while staunch anti-dam campaigner and Green Party member Paul Bailey was elected onto council – ahead of pro-dam rivals. Meanwhile, another returning councillor, Neil Kirton, has also called for a moratorium on any action until the new council has “got all its ducks in a row”. During the campaign Kirton did not declare a stance on the dam. According to Local Government New Zealand, it is possible for an incoming council to change a decision made by a former council, – but says it depends on the significance of the decision and how far implementation of it has progressed. LGNZ says in the case of a major or significant decision, the council would need to amend its long term plan and consult with the community – a process which could be very costly.
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farmer and veterinarian, says her priority is to build on the relationships established by the previous commissioners, and to get trust and respect going between the stakeholders, people who are interested in freshwater issues and the wider community. McKay says the perception of a town and rural divide over water issues was one reason she became involved in the Canterbury water management strategy six years ago. “I would like to see a united Canterbury and an appreciation that we need each other,” she says. Peter Scott, an arable farmer from Kerrytown, near Pleasant Point, is another with a strong water management background, having been the chief executive of the Opuha Water scheme from 2007 to 2011. Scott says water is topical, but ECan does more than manage water. He intends to bring to the table a strong advocacy for his South Canterbury constituency. “We just need to keep supporting the processes we have in place. I am 100% confident that the processes we have in place will give us the outcomes we need.” Scott is confident the mixed model of elected and appointed members on the council is working “really well.” A spokesperson for Environment Minister Dr Nick Smith says that up to six commissioners will be appointed, with three to be appointed within 28 days of the official election result, due on October 13. The chair will be elected by council vote.
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RURAL NEWS // OCTOBER 18, 2016
24 WORLD
Miner aiming to be Aussie’s biggest beef producer SUDESH KISSUN sudeshk@ruralnews.co.nz
AUSTRALIA’S RICHEST woman could soon own the country’s largest pri-
vate agricultural business. Mining magnate Gina Reinhart has signed a deal offering $365 million for S Kidman and Co, a massive beef producer with an
average herd of 185,000 cattle. Reinhart’s company Hancock Prospecting Pty Ltd is teaming up with Shanghai CRED Real
Estate Stock Co Ltd for the S Kidman bid. The sale requires the approval of Australian regulatory authorities and the Australian and Chinese gov-
ernments. An earlier bid by Shanghai CRED to buy 100% of S Kidman was knocked back by Federal Treasurer Scott Morrison.
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Under the deal announced last week, Hancock and the Chinese have formed a joint venture company, Australian Outback Beef Pty Ltd (AOB), owned 67% by Hancock and 33% by Shanghai CRED. They offer to buy 100% of the shares of Kidman, conditional on the transaction being allowed in its current form under Australia’s foreign investment regime and to People’s Republic of China (PRC) government approvals. The deal also includes S Kidman selling the Anna Creek station and the Peake to other Australian grazing interests. The proceeds of the sale of Anna Creek and the Peake would be paid to Kidman. Rinehart, chairman of the Hancock Group, says she will work with the Kidman management and staff to grow and develop the operations. “Kidman is an iconic cattle business established more than a century ago by Sir Sidney Kidman. It is an operation founded on hard work and perseverance by an outstanding Australian, and is
an important part of Australia’s pioneering and entrepreneurial history,” she says. Hancock chief executive Garry Korte says the quality of the Kidman herd and properties complement Hancock’s existing northern cattle properties, and align well with Rinehart’s plans to build a diversified cattle holding in Australia. The Hancock family started their first cattle station in northwest Australia, and founded the first port in the area at Cossack on the West Pilbara Coast to enable the cattle trade. Since then Rinehart has extensively grown the Hancock business. Principal of Shanghai CRED, Gui Guojie, says that partnering with Hancock had already proved a productive approach. And the chairman of S Kidman, John Crosby, also welcomed the deal. “We welcome the significant investment proposed in addition to the purchase price and are confident the Kidman business will be in good hands,” Crosby says.
PLENTY OF INTEREST AT LEAST 600 interested parties have held discussions with sale manager Ernst & Young since the Kidman landholding went on sale almost 18 months ago. S Kidman & Co Ltd, herd carrying capacity of 185,000 cattle, has pastoral leases on 101,000 square kilometres in South Australia, Western Australia, Northern Territory and Queensland. Kidman’s holdings contain 19 individual properties operated as 12 enterprises – ten cattle stations, a bull breeding stud farm and a feedlot. If the deal proceeds, foreign ownership of S Kidman & Co will reduce from the existing level of 33.9%.
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RURAL NEWS // OCTOBER 18, 2016
26 MARKETS & TRENDS MARKET SNAPSHOT Me at
BEEF MARKET TRENDS
No rth No rth Is lan Isdlan NodrthSIs ou lan Sth od uIs thlan Isdlan S odu th Is lan d
C h an C hgan e g eL asCtLhas ant g Ceh an C Lhgas an e tg eL asCtLhas ant g e /kgCWT c /kgCWT c /kgCWT c /kgc /kgWe eWe kc /kg e k c /kg We c /kg e k We eWe kc /kg ek
L as t We e k
amb L amb - PM-16.0kg PM L16.0kg amb - PM 16.0kg n/c n/c 5 .8 8 5 .8 n/c 8
+ 55 .8 + 58 5 .7 3 5 .7 +3 5
5 .7 3
te e S rte- eP2 r -300kg P2 S300kg te e r - P2 300kg -5 -5 5 .4 5 5 .4-5 5
-55 .4 -55 5 .5 0 5 .5-5 0
5 .5 0
u llB-uM2 ll - 300kg M2 300kg B u ll - M2 300kg -5 -5 5 .1 5 5 .1-5 5
n/c 5 n/c .1 5 4 .9 0 4 .9 n/c 0
4 .9 0
e nVe is onnis-oAP n -60kg Ve APn60kg is o n - AP n/c60kg n/c 8 .8 0 8 .8 n/c 0
n/c 8 n/c .8 0 9 .0 0 9 .0 n/c 0
9 .0 0
$6.5
6.0 $6.0
$6.0
5.5 $5.5
$5.5
M 2 BM ull2-B300kg ull - 300kg M -5 2 B ull-5- 300kg 5.15 5.15 -5 5.20 5.205.1 5.90 5 5.905.20
5.90 4.70
M CoMw Co - 200kg w - 200kg M -10 Co -10 w - 200kg 4.00 4.00-10 4.10 4.104.00 4.70 4.704.10
4.70
P H -P 22.0kg H - 22.0kg n/cP Hn/c - 22.0kg 5.91 5.91 n/c 5.91 5.915.91 6.21 6.215.91
M 2 BM ull2-B300kg ull - 300kg Mn/c 2 B ull n/c- 300kg 4.90 4.90n/c 4.90 4.904.90 5.40 5.404.90
5.40
P M -P16.0kg M - 16.0kg+5P M+5- 15.73 6.0kg5.73 5.68 +5 5.685.73 6.08 6.085.68
P 2 Co Pw 2 Co - 230kg w - 230kg P 2-5Co w -5- 230kg 4.05 4.05 -5 4.10 4.104.05 4.15 4.15 4.10
4.15
M CoMw Co - 200kg w - 200kg M-5Co w -5- 200kg 4.05 4.05 -5 4.10 4.104.05 4.10 4.10 4.10
4.10
Lo calLo Trade cal Trade - 230kg - Lo 230kg caln/c Trade n/c- 230kg 5.55 5.55n/c 5.55 5.555.55 5.90 5.905.55
5.90
S outh S outh Island Island 16.0kg S outh 16.0kg MIsland Lamb M Lamb 16.0kg PricePrice M Lamb Price
20k 20k
20k
10k 10k
$6 .5
6 .0 $6 .0
$6 .0
5 .5 $5 .5
$5 .5
20k 20k Last 5yrYear Last Ave Year
This LastYYear This ear Y ear
This Y ear
17-Dec
15k 15k 10k 10k 5k
No rth NoIsland rth Island 300kg No300kg rthBull Island Bull Price 300kg Price Bull Price $5 .5
5 .0 $5 .0
$5 .0
4 .5 $4 .5
$4 .5
This Last YThis ear YearY ear
This Y ear
5k
Last5yr Year Last Ave Year
This Last YThis ear YearY ear
15k 10k
This LastYear This Year Year
This Year
17 -Dec
S outh S outh Island Island 300kg S outh 300kg Steer Island Steer Price 300kg Price Steer Price
95CL95CL US$ /lb US$ /lb 95CL n/c n/c US$2.02 /lb 2.02n/c 2.02 2.022.02 2.25 2.252.02 2.26 2.262.25 NZ$ /kg NZ$ /kg $3.00$3.00
NZ$ +8 /kg +8 6.24 6.24 +8 6.16 6.166.24 7.43 7.436.1 6.42 6 6.427.43
5 .5 $5 .5
$5 .5
$2.50$2.50
$2.50
5 .0 $5 .0
$5 .0
$2.00$2.00
$2.00
4 .5 $4 .5
$4 .5
Last Year Last Year
Last 5yr Year Last Ave Year
This LastYear This Year Year
This Year
4 .0 $4 .0 $4 .0 17 -Jul17 -Jul 17 -Aug 1717 -Aug -Jul 17 -Sep 17 17-Sep -Aug17 -O ct 17 17 -O-Sep ct 17 -No17 v17 -No -Ovct17 -Dec 17 17 -Dec -No v
8 .0 $8 .0
$8 .0
7 .5 $7 .5
$7 .5
7 .0 $7 .0
$7 .0
6 .5 $6 .5
$6 .5
50k
I
k 10 10 Sep 10 Aug Sep
10 Oct 10 10Sep Oct
10 10 Nov 10 Oct Nov
i u s m C
10 Nov
Export Export Market Market Export Demand Demand Market Demand Last Last2 Wks 2 Wks Last Last Last 2 Wks Last Change Change Change 5yr A5yr ve A ve WeekWeekA go A go Week Year YearA go Year
5yr A v 1.85
NZ$ /kg NZ$ /kg NZ$ +15/kg +15 8.35 8.35+15 8.20 8.208.35 9.18 9.188.20 9.07 9.079.18 9.07 5yr A ve D e mand D e mand Indicator Indicator D e -mand UK -Leg UK Indicator Price Leg Price - UK Leg Price 2.26£2.50 £2.50 £2.50 6.42 Last Year Last Year Last Year £2.00 £2.00 £2.00 This Year This Year
£1.50 £1.50
This Year
£1.50
Procurement Procurement Procurement Indicator Indicator Indicator Last This Year Year This Year
This Year
2Wks2Wks 3 Wks 3 Wks 2Wks Last Last 3 Wks Last Change Change Change 5yr A5yr ve A ve A go A go A go A goA Year go YearA go Year
$1.50$1.50 $1.50 17-Jul17-Jul 17-Aug 17-Aug 17-Jul 17-Sep 17-Sep 17-Aug 17-Oct 17-Oct 17-Sep 17-Nov 17-Nov 17-Oct 17-Dec 17-Dec 17-Nov 17-Dec
Procurement Procurement Indicator Procurement Indicator Indicator
$8 .5
100k
50k 50k
£1.00 £1.00 £1.00 17-Jul 17-Jul 17-Aug 17-Aug 17-Jul 17-Sep 17-Sep 17-Aug 17-Oct 17-Oct 17-Sep 17-Nov 17-Nov 17-Oct 17-Dec 17-Dec 17-Nov 17-Dec
17 -Dec
2Wks2Wks3 Wks3 Wks 2Wks Last Last 3 Wks Last Change Change Change 5yr A 5yr ve A ve A go A go A go A goAYear go YearA go Year
No rth NoIsland rth Island 60kg No60kg rth S tag Island SPrice tag Price 60kg S tag Price
150k
100k100k
24-Dec
D e mand D e mand Indicator Indicator D e- mand US 95CL - US Indicator 95CL B eef B eef - US 95CL B eef $3.00
$6 .0
5yr Ave 5yr Ave
200k
150k150k
UK Leg UK Leg £/lb £/lb UK n/c Legn/c£/lb 1.88 1.88 n/c 1.88 1.88 11 .88 .55 1.55 11 .88 .85 1.85 1.55
Last Last2 Wks2 Wks Last Last Last 2 Wks Last Change Change Change 5yr A 5yr ve A ve WeekWeek A go A go Week Year YearA go Year Last 5yr Year Last Ave Year
250k
200k200k
5k
6 .0 $6 .0
8 .5 $8 .5
S outh S outh Island Island Weekly S outh Weekly Lamb Island Lamb KillWeekly Kill Lamb Kill
k k 10 Aug 10 Aug
Export Export Market Market Demand Export Demand Market Demand
5yr Ave 5yr Ave
$9 .0
M utto MnuttoMnX1M - X1 21 Mkg -utto 21kg n n/c M X1n/c - 21 2.73 kg 2.73 2.73 n/c 2.732.73 3.00 3.002.73
24-Dec
This Y ear
k k k 24-Jul 24-Jul 24-Aug 24-Aug 24-Jul 24-Sep 24-Sep 24-Aug 24-Oct 24-Oct 24-Sep 24-Nov 24-Nov 24-Oct 24-Dec 24-Dec 24-Nov
4 .0 $4 .0 $4 .0 17 -Jul17 -Jul 17 -Aug 1717 -Aug -Jul 17 -Sep 17 17-Sep -Aug17 -O ct 17 17 -O-Sep ct 17 -No17 v17 -No -Ovct17 -Dec 17 17 -Dec -No v
9 .0 $9 .0
PX - P 19.0kg X - 19.0kg+5 P X +5- 15.73 9.0kg5.73 5.68 +5 5.685.73 6.10 6.105.68 P H -P 22.0kg H - 22.0kg+5P H+5 - 22.0kg 5.73 5.73 5.68 +5 5.685.73 6.11 6.115.68
N ortNhort Island h Island Weekly N ort Weekly Lamb h Island Lamb KillWeekly Kill Lamb Kill 350k350k 350k 300k300k 5yr 300k Ave 5yr Ave Last5yr Year Last Ave Year This Last YThis ear Year Y ear This Y ear 250k250k 250k 200k200k 200k 150k150k 150k 100k100k 100k 50k 50k 50k k k k 10 Aug 10 Aug 10 10 Sep 10 Aug Sep 10 Oct 10 10Sep Oct 10 10 Nov 10 Oct Nov 10 Nov
S outh S outh Island Island Weekly S Weekly outh Cattle Island Cattle KillWeekly Kill Cattle Kill 20k 5yr Ave 5yr Ave
4 .5 $4 .5 $4 .5 17-Jul17-Jul 17-Aug 17-Aug 17-Jul 17-Sep 17-Sep 17-Aug17-Oct 17-Oct 17-Sep17-Nov 17-Nov 17-Oct17-Dec 17-Dec 17-Nov
5 .5 $5 .5
PX - P 19.0kg X - 19.0kg n/c P n/c X - 15.90 9.0kg5.90 5.90 n/c 5.905.90 6.20 6.205.90
250k250k
5yr Ave 5yr Ave
$6 .0
Last 5yr Year Last Ave Year
k k k 24-Jul 24-Jul 24-Aug 24-Aug 24-Jul 24-Sep 24-Sep 24-Aug 24-Oct 24-Oct 24-Sep 24-Nov 24-Nov 24-Oct 24-Dec 24-Dec 24-Nov
$5 .0
6 .0 $6 .0
10k
5yr Ave 5yr Ave
6.18
Slaughter Slaughter Slaughter
N ortNhort Island h Island Weekly NWeekly ortCattle h Island Cattle KillWeekly Kill Cattle Kill 40k 30k
b N f 6.20 p 6.21 t 3.30 i 6.06 f 6.08 t 6.10p 6.11s 3.00h T e a w l c H b a a i t h 6.16
MnuttoMnX1M - X1 21 Mkg utto - 21kg n n/c M X1n/c - 21 2.85 kg 2.85 2.85 n/c 2.852.85 3.30 3.302.85 6.20 M utto SI Lamb YM -YM 13.5kg SI-Lamb 13.5kg YM +5 - +5 13.5kg 5.73 5.73 5.68 +5 5.685.73 6.06 6.065.68 6.00SI Lamb
Lo calLo Trade cal Trade - 230kg - Lo 230kg cal -5 Trade-5- 230kg 5.65 5.65 -5 5.70 5.705.65 6.20 6.205.70 SI P 2 Steer P 2 Steer - 300kg SI - 300kg P 2 Steer -5 -5 - 300kg 5.50 5.50 -5 5.55 5.555.50 6.00 6.005.55
30k 30k
Last p Year
P M -P16.0kg M - 16.0kg n/cP M n/c - 15.88 6.0kg5.88 5.88 n/c 5.885.88 6.18 6.185.88
P 2 Co Pw 2 Co - 230kg w - 230kg P-10 2 Co -10 w - 230kg 4.00 4.00-10 4.10 4.104.00 4.70 4.704.10
40k 40k
$5.0 5yr Av5yr e Av e Last5yr Year Last Av eYear This LastYear This YearYear This Year 4.5 $4.5 $4.5 17-Jul17-Jul 17-Aug 17-Aug 17-Jul 17-Sep 17-Sep 17-Aug17-Oct 17-Oct 17-Sep17-Nov 17-Nov 17-Oct17-Dec 17-Dec 17-Nov 17-Dec
5 .0 $5 .0
NI P 2 Steer P 2 Steer - 300kg NI - 300kg P 2 Steer -5 -5 - 300kg 5.45 5.45 -5 5.50 5.505.45 6.30 6.305.50
SI
t
Last Last2 Wks 2 Wks Last Last Last 2 Wks Last Change Change Change WeekWeekA go A go Week Year YearA go c/kgCWT c/kgCWT Year c/kgCWT NI Lamb YM -YM 13.5kg NI- Lamb 13.5kg YM n/c - n/c 13.5kg 5.86 5.86 5.86 n/c 5.865.86 6.16 6.165.86 6.30NI Lamb
Last Last2 Wks2 Wks Last Last Last 2 Wks Change Change Change c/kgCWT WeekWeek A go A go Week Year YearA go
Slaughter Slaughter Slaughter
5.0 $5.0
6 .5 $6 .5
c/kgCWT c/kgCWT NI
B
LAMB LAMB PRICES PRICES LAMB PRICES
BEEF BEEF PRICES PRICES BEEF PRICES
No rth NoIsland rth Island 16.0kg No16.0kg rthM Island Lamb M Lamb 16.0kg PricePrice M Lamb Price
6.5 $6.5
LAMB MARKET TRENDS
% Returned % Returned NI NI% -1% Returned -1% 83.3% NI 83.3% -1% 84.4% 84.4% 83.3% 79.37% 79.37% 84.4% 75.7% 75.7% 79.37% % Returned % Returned SI SI% -2% Returned -2% 78.5% SI 78.5% -2% 80.4% 80.4% 78.5% 72.6% 72.6% 80.4% 70.3% 70.3% 72.6%
5yr A v
% Returned % Returned NI NI % -1.3% Returned -1.3% 71.9% NI 71.9% -1.3% 73.2% 73.2% 71 68.1 .9% %68.173.2% % 71.3%71.3% 68.1%
71.3%
% Returned % Returned SI SI % 0.0% Returned 0.0%68.3% SI 68.3% 0.0% 68.3% 68.3% 68.3% 66.4% 66.4% 68.3% 68.9% 68.9% 66.4%
68.9%
P rocu P rocu rement rement Indicator P rocu Indicator rement - North - North Indicator I. I. - North I.
5yr A ve 80% 80%
80%
75.7% 70% 70% 70.3%
70%
60% 60%
5yr Av5yr e Av e Last Year Last Year This Year This Year
5yr Av e Last Year This Year
6 .0 $6 .0 $6 .0 17 -Jul17 -Jul 17 -Aug 1717 -Aug -Jul 17 -Sep 17 17-Sep -Aug17 -O ct 17 17 -O-Sep ct 17 -No17 v17 -No -Ovct17 -Dec 17 17 -Dec -No v
17 -Dec
S outh S outh Island Island 60kg S outh 60kg Stag Island Stag PricePrice 60kg Stag Price
9 .5 $9 .5
$9 .5
9 .0 $9 .0
$9 .0
8 .5 $8 .5
$8 .5
8 .0 $8 .0
$8 .0
7 .5 $7 .5
$7 .5
5yr Ave 5yr Ave
5yr Ave
7 .0 $7 .0
$7 .0
Last Year Last Year
Last Year
This Year This Year
This Year
6 .5 $6 .5 $6 .5 17 -Jul17 -Jul 17 -Aug 1717 -Aug -Jul 17 -Sep 17 17-Sep -Aug17 -O ct 17 17 -O-Sep ct 17 -No17 v17 -No -Ovct17 -Dec 17 17 -Dec -No v
17 -Dec
60% P rocu P rocu rement rement Indicator P rocu Indicator rement - North - North Indicator I. I. - North I. Last Last Year Year Last This Year This Year Year This Year 90% 90% 90% 50% 50% 50% 85% 85% 85% 11-Aug 11-Aug 11-Sep 11-Sep 11-Aug 11-Oct 11-Oct 11-Sep 11-Nov 11-Nov 11-Oct 11-Dec 11-Dec 11-Nov 11-Dec 80% 80% 80% 75% 75% 75% P rocu P rocu rement rement Indicator P rocu Indicator rement - South - South Indicator I. I. - South I. Last Year Last Year Last Year 70% 70% 70% 80% 80% 80% 65% 65% 65% This YThis ear Y ear This Y ear 60% 60% 60% 70% 17-Jul17-Jul 17-Aug 17-Aug 17-Jul 17-Sep 17-Sep 17-Aug 17-Oct 17-Oct 17-Sep 17-Nov 17-Nov 17-Oct 17-Dec 17-Dec 17-Nov 17-Dec 70% 70%
60% 60% 60% Last Year Last Year Last This Year Year This Year This Year P rocu P rocu rement rement Indicator P rocu Indicator rement - South - South Indicator I. I. - South I. 85% 85% 85% 50% 50% 50% 11-Aug 11-Aug 11-Sep 11-Sep 11-Aug 11-Oct 11-Oct 11-Sep 11-Nov 11-Nov 11-Oct 11-Dec 11-Dec 11-Nov 11-Dec 80% 80% 80% 75% 75% 75% 70% 70% 70% Venison Venison Prices Prices Venison Prices 65% 65% 65% Last Year Last Year Last Year Last Last2 Wks 2 Wks Last Last Last 2 Wks Last Change Change Change 5yr A5yr ve A ve 5yr A v 60% 60% 60% This Year This Year This Year WeekWeekA go A go Week Year YearA go Year 55% 55% 55% NI Stag NI Stag 60kg 60kg NI n/c Stag n/c 60kg 8.80 8.80 n/c 8.80 8.80 8.80 8.45 8.45 8.80 7.92 7.92 8.45 7.92 17-Jul17-Jul 17-Aug 17-Aug 17-Jul 17-Sep 17-Sep 17-Aug 17-Oct 17-Oct 17-Sep 17-Nov 17-Nov 17-Oct 17-Dec 17-Dec 17-Nov 17-Dec SI Stag SI Stag - 60kg - 60kgSIn/c Stagn/c - 60kg 9.00 9.00n/c 9.00 9.009.00 8.75 8.759.00 8.30 8.308.75 8.30
eef Beef & venison & venison prices Beef prices are & venison reported are reported prices as gross as aregross (before reported (before normal as gross normal levies (before levies & charges normal & charges are levies deducted). are&deducted). charges Lamb are Lamb &deducted). mutton & mutton prices Lamb prices are& reported mutton are reported prices nett (after nett are (after reported levieslevies & nett charges &(after charges are levies deducted). are&deducted). charges are deducted).
Beef & venison prices are reported as gross (before normal levies & charges are deducted). Lamb & mutton prices are reported nett (after levies & charges are deducted).
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RURAL NEWS // OCTOBER 18, 2016
MARKETS & TRENDS 27 NEWS
PRICE WATCH
BEEF: Prime space has continued to tighten, removing some of the upwards pressure on prices. More numbers are being offloaded throughout both the North Island and South Island, with finishers attempting to get their cattle processed before slaughter prices start to slide. There is not a lot of consistency in manufacturing beef prices, especially for bull, with some processors not keen to ease back on their competitive pressure just yet. Massive volumes of spring growth through the South Island has kept store markets there buoyant. The Palmerston spring cattle sale was especially strong, with buyer turnout among the largest ever seen. Recent weaknesses in schedules have taken a little edge out of demand for two-year old cattle, particularly in the North Island. However some interest in Friesian’s to be used as service bulls has prevented any significant slide in prices for these animals. There’s been a gradual increase in the number of 100kg calves traded through the North Island. These have typically made $460-$500 INTERNATIONAL
BEEF: US imported beef prices have remained under-pressure, and there isn’t much to suggest any significant upwards movement in the short-term. Competition from pork and chicken,
uncertainty surrounding Brazilian beef import volumes, and the comparative cheapness of US domestic beef are all contributing to the current state of demand for NZ beef cuts. At their current level, returns on beef imported into the US are back 14% on 12 months ago, and 24% below the same point in 2014.
WOOL PRICE WATCH Change
06-Oct
29-Sep
Last Year
Indicato rs in US$ /kg
Co arse Xbred
-2
4.54
4.56
4.78
Co arse Xbred
Fine Xbred
-7
4.63
4.70
5.26
Fine Xbred
-
-
-
6.25 9.39
Indicato rs in NZ$
Lamb
SHEEP: The lamb slaughter market
8.30
-
Wo ol Indicator Trends
850 750
FXI LI
650
06-Oct
29-Sep
Last Year
-6
3.26
3.32
3.97
3.32
3.42
4.25
Lamb
-
-
-
-
M id M icro n
-
5.96
-
6.24
Wo ol Indicator Trends CXI
500
FXI
450
LI
400
550 450
Change
-10
550 CXI
350
Oct
Dec
Feb
Apr
Jun
300
Aug
Last Year
600
Oct
Dec
Feb
Apr
Jun
Aug
C o arse Xbred Indictor in US$
C o arse Xbred Indicator
650
450 This Year
400
550 350
500 450
Last Year
Oct
Dec
Feb
Apr
Jun
88
The Rabobank difference
93
-
M id M icro n
stayed in a steady position through the North Island. There's enough numbers coming out of the woodwork to keep processors satisfied for the moment. This is primarily a product of farmers looking to get lambs killed before they start cutting their teeth. Production levels are also up through the South Island, but there’s been enough competition about to see prices lift. Some processors are even paying up to contract price rates for decent sized lines. Activity has continued to die out in the store front. Very few numbers are being traded. Buyers are well aware that there's little finishing potential left in anything not already kill, and prices have eased accordingly. In the South Island, the only lines finding any competition from bidders are finer-wool breed types with decent fleeces. The first new season lambs made an appearance at Feilding. These made $80-$94.
Overseas Wool Price Indicators
Aug
%
The average time our Rural Managers have worked with us
300
Oct
Dec
Feb
Apr
This Year
Jun
Aug
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
*TNS NZ Brand Health Survey 2015
running business management programs for farmers years of global agricultural history
global agribusiness research analysts sharing market outlooks
RURAL NEWS // OCTOBER 18, 2016
28 AGRIBUSINESS
Aerial spreading takes a mighty jump Ravensdown’s Primary Growth Partnership (PGP) programme ‘Pioneering to Precision’ is starting to gather momentum after three years. Pilot Grant Lennox has gained a unique perspective from above and explains what he’s seen out and about as part of the research team, spreading fertiliser on the research farms. “TIMING IS so important in aerial spreading. You’re travelling fast so you need lead-in time to open and shut the hopper doors,” Lennox says. “Before this programme we pilots have been anticipating when to do this, which means you’re not always able to give your full attention to flying the plane safely.” He says this programme has removed the guess-work for him with the GPS computer automating the hopper door, so now he can focus on flying. “It satisfying to see the consistency and how tidy every boundary can be because the doors are working with the scientists’ ballistic modelling
and shutting the doors more accurately than I ever could.” Because fertiliser travels so fast and takes a while to slow down, the science behind the particle movement is being tested by placing bins across varying topography to catch what the pilots are dropping. “It’s rather like throwing a ball.... The research is improving the accuracy substantially and is making my life a lot easier. The farmer is also getting a lot better result because we’re not wasting fertiliser, it’s going exactly where it’s supposed to.” Lennox enjoys being a part of the research. “There’s a great team
working together from Massey, AgResearch and Ravensdown. I’ve learnt a lot about the GPS technology and fertiliser properties and how it is all connected through the Smart Maps system. It has given me more of a general overview and made my job more enjoyable.” Lennox believes there is definite improvement in the quality and accuracy of spreading due to the research. The computer programme in the plane interacts with Ravensdown Smart Maps using the soil test results to direct what variable rate of spreading will be required, instructing the GPS in the plane to
spread just that and then showing exactly where it landed with the placement verification technology being developed. This is something regional councils could be interested in as they become more interested in where the fertiliser is landing rather than where it is released. “In the field projects we are getting better results than before. There is a growing interest in the technology; it’s just a time thing until the science can be proven. “On one of the trails... I talked to the team unloading the catching trays and I could see the cover was quite even; it backs up what we’re trying to
Pilot Grant Lennox.
achieve and it’s great to see.” Lennox acknowledges that the scientists may be seeing something different when they measure the sample spread
and rate. “I’ve been aerial spreading for 11 years and this is the way things are going; if Ravensdown can make the whole PGP thing work then it will be
a game changer. From my perspective with the variable rate equipment it is going very well. Knowing what I know now, if I was a farmer I would insist on it.”
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RURAL NEWS // OCTOBER 18, 2016
AGRIBUSINESS 29
Showing the boys how it’s done! A RURAL Contractors New Zealand (RCNZ) board member and partner in the Matamata firm Slattery Contracting, Helen Slattery, has penetrated the ‘glass ceiling’ to be the industry’s first woman to gain a national certificate in infrastructure works supervision Level 5. The qualification covers core management skills including scheduling infrastructure works project resources, health safety and environment, monitoring project quality assurance and documenting infrastructure works projects. Specialist skills in civil plant management, civil works, pavement surfacing (multiple sites supervision), road marking, road works and rural contracting (management) can also be covered. This qualification is achieved by working through unit standards and evidence required. Each unit is assessed by an industry-approved
assessor. “What Helen has achieved is not only great for her, but the whole rural contracting sector,” says RCNZ trainer/ assessor Noel Blackwell. He says he has evaluated many training achievements over the years as RCNZ’s trainer/assessor and found Slattery’s work professional and easy to assess the evidence she supplied. “In this modern world of professional business, what Helen has achieved has put a sign out there that says, ‘Rural Contractors are professionals’,” Blackwell adds. “Helen has led the way and I know there are other rural contractors who are doing many of the Connexis (the ITO for infrastructure industries) national certificates. This will help the rural contracting industry.” Helen and husband Roger run Slattery Contracting in Matamata, which offers hay, silage, cultivation and other rural
contracting services. She is also a board member of RCNZ. RCNZ chief executive Roger Parton congratulated Slattery on
her achievement and says it is a testament to her commitment to the sector to be the first woman in the rural contracting sector to gain a Level 5
Certificate. “This goes to show that Helen is truly outstanding in her field and a role model to male and female rural contractors.”
Helen Slattery
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NEW APPOINTMENT AT ALLIANCE GROUP ALLIANCE GROUP has appointed Heather Stacy to the newly created role of general manager livestock and shareholder services. Stacy, who will start work at the meat co-op on November 21, has held senior leadership roles with Fonterra in New Zealand and Australia. She was previously the executive director of United Dairy Farmers (the Australian dairy sector’s equivalent of Federated Farmers) and has worked in the red meat industry for Meat & Livestock Australia (Australia’s equivalent of Beef & Lamb NZ). Alliance Group chief executive David Surveyor says Stacy also brings experience from the meat processing and retail sectors with Metro Meat in Australia. “Heather has a demonstrated track record of building and developing high-performing teams that provide value-added services to farmers. With her commercial and leadership experience she understands the full industry value chain along with the needs of farmers and the wider industry.” Surveyor says the role was developed to reflect Alliance’s new strategy and show its commitment to strengthening its shareholder and supplier relationships.
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RURAL NEWS // OCTOBER 18, 2016
30 AGRIBUSINESS
Keen eye on more production and profit THE PROSPECT of raising production and profits spurred James and Kate McKay, farming at Alfredton, Southern Hawkes Bay, to get involved in the Red Meat Profit Partnership (RMPP). This seven-year Primary Growth Partnership scheme is aimed at getting sustainable productivity improvements on sheep and beef farms, leading to more profit. Encouraged by their Anzco livestock rep, Ed Wallace, the McKays joined the PGP scheme in 2015 and have since examined key aspects of their farming system. They talked to local BakerAg consultant Richmond Beetham, who has helped them look at their ultimate goal of mating a 50kg hogget. Other goals are to increase weaning weights and diversify their forage. Their farm, Te Keo, is on 400ha
18km east of Eketahuna – a summer-safe breeding and finishing property bought by the McKay family in 1970. James’ parents, Murray and Mandy McKay, bought the farm off the family in 1983 and James and Kate took over in 2015 after careful, thorough succession planning. One year into the James and Kate McKay. pilot farm scheme the We have always valued and benefited McKays feel they are getting ahead. “We enjoy being innovative famers from quality discussion with other and we saw this programme as a great farmers.” At a recent pilot farm day at Te Keo, vehicle to continue to be progressive in our methods,” James says. “We have the McKays shared information and access to expert knowledge and prac- experiences with other local and pilot tice we may not have had otherwise.... farmers from StockCare, BakerAg and
AgriCom. Alan McDermot from Anzco talked about what markets are now expecting. One big change the McKays are making is putting their hands on all their sheep. “We are not relying on our eye at the drafting gate. We have a better understanding of our machine [sheep] and when and how much it needs to be fed.” McKays have worked with StockCare for four years to help accurately predict how their sheep will perform long before lambing – good for budgeting. The inclusion of forage crops (rape) to get lambs off the hills, to give
the ewes more space in the summer and look after the tail end better, has been a key. “Break feeding of light ewes this year in August for a month has made a big difference, enabling us to set stock many ewes at 74kg and BCS 3.3. “Feed budgeting has helped us ensure we don’t keep hold of trade lambs too far into the autumn/winter. “We see a lot of room to improve weaning weights and lambing percentages and, with the use of our four years of stock monitoring, we can home in on specific details such as lamb growth rate on mum or our trade lamb seasonal growth rate and sale pattern with real data and make changes. “We feel most of the low hanging fruit has now been picked so we are turning to mating of our hoggets and diversifying forages.”
RURAL NEWS // OCTOBER 18, 2016
AGRIBUSINESS 31
The benefits of growing agricultural trade One could be forgiven – given the current political rhetoric in the US – for thinking all Americans oppose the TPP. However, last month, Agricultural Leaders of Michigan (ALM) released a letter detailing the benefits of trade for US agriculture and urging policymakers to be proactive in establishing new markets for agricultural products. Here is their letter. WE BELIEVE trade is an important issue and an opportunity we shouldn’t take for granted. A commitment to international trade starts with strong relationships among North American nations and should extend to seizing new opportunities across the Pacific and Atlantic. The strong trading relationship between Michigan and other countries in North America has fuelled farming and agribusiness to become our second-largest economic driver in the past 20 years. In fact, Michigan’s agriculture sector exports at least $3 billion of products every year. Without trade, we would have a fundamental inability to sell what we grow. Domestic markets alone aren’t sufficient for the rapidly expanding production of grain, dairy, processed food products,
biofuels, fruits and vegetables we produce in Michigan. Agriculture, and rural Michigan communities, would be in far worse shape without the export opportunities we have today. Nonetheless, it’s a turbulent time for international trade. Both major party presidential candidates in the US and many in Congress have declared opposition to the TransPacific Partnership (TPP) and criticised the North American Free Trade Agreement (NAFTA) that’s been in place with Canada and Mexico since 1994. Expanded trade negotiations with Europe are stagnant for the time being. Promising new markets, including Cuba and countries along the Pacific Rim, are stuck in political purgatory. And China, which has been a growing, albeit unpredict-
able market for US agriculture, has been accused of violating its World Trade Organisation commitments in a filing made by the US Government.
Whether they’re caused in Washington, Paris, Beijing or anywhere else, headwinds against open trade will have consequences for agriculture
and rural America. Agriculture is one of the only sectors of the US economy that produces a trade surplus, but our current trade opportunities only
stretch so far, especially as farmers become more productive, increasing the availability of Michigan products for sale at home and abroad.
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RURAL NEWS // OCTOBER 18, 2016
32 OPINION EDITORIAL
EDNA
Out-greened by the Irish IRELAND AND New Zealand have a huge amount in common. Both are small agricultural countries with similar farming systems, although there is a difference in scale. There are many cultural similarities, more than most imagine. The term Ngati Irish has some validity. Both countries are essentially large farms with pockets of urban development and therefore they sit comfortably with that well-worn cliché ‘clean and green’. While NZ has become bogged down in cliché land, talking about being ‘100% pure’ – whatever that means -- the Irish have created new meaning for this cracked-record saying. Origin Green is no cliché. It is now a powerful, internationally recognised brand that sets Ireland apart from all other nations. The Irish have done the research; unsurprisingly you can’t just make claims, you have to prove things and this they have done. Aidan Cotter, chief executive of Origin Green, has masterminded this whole exercise and set very high standards for farming and food production. These standards are not the dream of some bureaucrat; they are instead well-established, internationally recognised standards that are undisputable and accepted by institutions such as World Bank, FAO and – of course – the EU. Ireland has now positioned itself as the emerald isle of the world and left other countries – such as New Zealand – in the dust behind it. A fair comparison would be Australian or South African rugby players bewildered by the flair and pace of Beauden Barrett. What should perhaps be frightening for NZ is that Origin Green is constantly moving to new levels. Their ‘ambassador programme’, which offers unique higher educational opportunities for Irish graduates, will ensure that more smart people like Aidan Cotter are coming into the pipeline. The Irish government is spending heavily and smartly in getting young people into the agri-sector in a way that NZ must surely note. Years of complacency in NZ are starting to show. The Irish have completely outsmarted us in the ‘green space’ and the future for NZ is bleak unless the ag sector as a whole can find the pan-sector leadership it has lacked for decades and do something tangible smartly.
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“I wonder what Aaron Smith’s punishment will be!”
THE HOUND
Want to share your opinion or gossip with the Hound? Send your emails to: hound@ruralnews.co.nz
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Strewth!
Reality-free
THE HOUND notes that Ross Hyland, the former ‘advisor’ of failed meat lobby group MIE, popped up again in the media to criticise the confirmed SFF/ Shanghai Maling merger. The former seed salesman, who describes himself these days as an ‘agricultural consultant’, ran the tired old MIE lines about Shanghai Maling – rather than New Zealand farmers – benefiting from the deal and how the Chinese would control all the company’s major decisions, blah blah. Your old mate wonders if the media types who run to Hyland for comment on this deal ever question him on the huge ‘consultancy’ fees he gouged out of Lincoln University over the last few years and what impact these have had on the university’s current dire financial predicament.
THIS OLD mutt wonders just how long Massey University can credibly claim to be a pre-eminent learning institution for future agriculture when one of its highprofile academics reckons there is no future in agriculture. Selfproclaimed expert on NZ water Mike Joy(less) is supposedly a lecturer at Massey – when he’s not pontificating in national and international media about NZ’s poisonous water levels. One of Joy’s recent media headline grabbing stunts saw him proclaiming that NZ will have rid itself of animals by 2050, “because the whole planet has to change and you cannot feed nine billion people if you have animals in the food-chain”. The Hound questions the suitability of any student coming out of Massey for a career in ag if they’ve been indoctrinated by Dr Joy(less).
YOUR OLD mate had to giggle at a recent story about a vegan video blogger (Vlogger) who got all teary at the sight of sheep being shipped across Cook Strait. Apparently this vegan travel blogger (pity the poor bugger who had to share a backpacker room with this soap dodger), Kristian Lajeunesse, recently visited NZ on a junket paid for by Vegan Travel. But she got all teary while voyaging on the Interislander, crying to her three-or-so followers on her video blog at the sight of healthy, happy sheep on a stock truck aboard the ferry. “I’m sorry,” this foreign idiot weepily said to the sheep. “I just feel so helpless.” Where do idiots like this Vlogger come from?
YOUR CANINE crusader thinks Fed head William Rolleston comes across at times as a bit too nice – perhaps because of all the fancy schools he went to. However, your old mate was pleased to see recently that Dr Billy Boy got a bit mongrel in putting the boot into the anti-1080 nutjob activists (e.g. NZ First MPs and many other loonies) for threatening the safety of the country’s conservation department staff and contractors. “It is simply unacceptable for New Zealanders who go to work every day to protect our environment to be made to feel unsafe doing their jobs,” Rolleston barked. “This is madness – activism out of control.” Good point Billy Boy, but as the Hound notes, from long experience, the word ‘reality’ and the anti-1080 mob do not live on the same planet.
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RURAL NEWS // OCTOBER 18, 2016
OPINION 33
Exports rely on freedom to move THE KEY to successfully selling fruit and vegetables in New Zealand or overseas is to give consumers what they want. In our growing Asian markets, consumers respond to healthy eating, to delicious, well packaged varieties new to the market and exotic fruit and small vegetables with a novelty factor. Sweet pineapples from Peru; ready-to-eat mangoes from Ecuador, Mexico and Colombia; new varieties such as Zespri’s Sungold; vegetables in vacuumpack pouches from NZ’s Leaderbrand; and prepackaged tomatoes with a strong emphasis on sustainability from NZ Hothouse are examples of what consumers will pay premium prices for. NZ relies on exports and tourism to generate its wealth; both rely on NZ’s clean, green image and the free movement of goods and people around the world. For tourism to make money, we need the free movement of tourists. For exports to make money, we need easy access to our key markets. The Government has made good progress in unlocking markets for our exports. The TransPacific Partnership (TPP) is a prime example of opening up exports markets for NZ companies. If it ever gets implemented,
it will be worth about $26 million in tariff reductions in the first year for fruit and vegetables. But a worrying trend is developing worldwide -- a retrenchment of freedom of movement of people and goods. The US presidential election campaign is the prime example of this, stalling the TPP and focusing on domestic issues in the US. The UK Brexit vote is another push-back on globalisation and with NZ’s own general election next year we may see this anti-globalisation trend become a key election issue. The US, UK and NZ have all relied on exports to drive growth in domestic markets. Tightening of controls of the movement of people and goods will directly affect our financial viability as a country, and the financial viability of the US and the UK. The backlash against globalisation has been seen in the UK with the Brexit vote and in the polling on the upcoming US presidential elections. With the German elections next
year potentially looking at reaction over the many refugees settling in Germany, and our own election potentially focusing on immigration, this anti-globalisation sentiment needs to be reversed for the financial fortunes of all countries. This is a big risk to the
growth of NZ exports. The counter argument is that technology, the internet and consumers demanding goods will reverse the massive protectionist reaction. For horticulture, Asia is one of our growth regions. We can supply produce that consumers
there will pay premium prices for. The Asian Development Bank estimates that about 1.7 billion of the about 4.5b people in Asia are middle class and this number is growing rapidly. This presents excellent export opportunities for NZ horticulture companies,
as these new consumers have money to spend on quality fruit and vegetables. So the critical question for NZ horticulture is, will the anti-globalisation trend stretch to Asia and restrict our growth opportunities? Will retrenchment and protectionism
in the US, UK and Europe affect our growth in Asia, or will it just make Asia all the more important to horticultural exports? Only time will tell, but it is a risk we cannot ignore. • Mike Chapman is chief executive of Horticulture New Zealand
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RURAL NEWS // OCTOBER 18, 2016
34 OPINION
New councillors’ assurances ring hollow As the science behind some of the projections driving the change is still uncertain, half the council behind the plan did not back it. More time was FROM FRESHLY elected city, town required, but the council was making and country leaders, words and phrases its last decision for the term. such as ‘rebuilding trust’ and ‘increased The decision to enable community involvement of the community’ have involvement in the next three years been heard sounding -- again. is a form of collaborative governance The idea, we are told, is to empower increasingly common where decisions the ratepayers by delegating to them affecting the environment decisions that affect them. are concerned. A senior Yet many councilors have The decision to enable lecturer in the department of been elected on the basis of community involvement in management actions they have said they will the next three years is a form environmental at Lincoln University, Dr Ann undertake for the community; Brower, has studied the research delegation will disempower of collaborative governance on whether collaborative them…. increasingly common where environmental governance is The problem for rural good for the environment. people is that, having selected decisions affecting the In a paper published in the councilors they think will be environment are concerned. New Zealand Journal of Ecology able to represent their needs and views, the delegation process could submissions to the ‘independent earlier this year, she concluded that end up in the hands of a completely commissioners’ now being appointed the process “risks being less than democratic, less than fair, and less different group – one with plenty of for the next step in the process. At the heart of the debate is that than good for the environment”. good intent and passion, but without the knowledge to make the required though nobody is voting for an She observed that the collaborative unhealthy river, they do not want to process has more chance of working decisions. This is already being seen in Waikato lose about 5000 jobs and $500,000 a when addressing a closed system such as a lake, than an open system such as with the Healthy Rivers Plan. Moving year from the Waikato region. JACQUELINE ROWARTH
inexorably ahead, the plan was passed by Waikato Regional Council only by the casting vote of the chair. Concerns about the employment and economic impact of the plan, and the robustness of the models used to predict outcomes and drive change, are still being voiced. People who feel their businesses are likely to be affected adversely by the plan are now grouping to make
RECEIVE A
Jacqueline Rowarth
a river, and indicated that “decisions should be shackled to strong and unambiguous national regulation”. NZ has the National Policy Statement on Fresh Water Management, with strong and unambiguous ‘national bottom lines’, but the Healthy Rivers Plan is imposing higher standards than those required nationally. And though Dr Brower concluded that without national standards, resource development interests will be favoured over conservation, in the Waikato region the opposite appears to be true. Another three year term for all
councils is ahead and though in most cases the initial settle-down phase is less time-consuming in local bodies than for a national government (since the advent of MMP the politicians have had to sort out which minor parties will be ‘partners’), the term is still only three years. If empowerment through delegation is the new norm, the time for actually doing something action will be much reduced. Instead of lengthy consultation, where nobody is happy, councilors -elected because they have the trust of their electorate, based on their knowledge and experience -- should be empowered to make decisions based on facts, evidence and data. At the same time, perhaps a reconsideration of election term, regionally and nationally, is warranted to allow councils and governments to achieve improvements on behalf of their rate-payers. Other countries have longer terms for a reason: with achievements, track record becomes more important than assurances. • Jacqueline Rowarth is professor of agribusiness, The University of Waikato.
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RURAL NEWS // OCTOBER 18, 2016
OPINION 35
Good growth gives new season kick-start
from the South Island also show this spring has been good so far. Only a month ago there was talk of another dry spring, but this has all but disappeared. The good news is that the drought-stricken regions of North Canterbury and Marlborough have also benefited and feed levels in these regions is recovering. As a farmers and contractors we couldn’t ask for a better spring outlook. These conditions, if they prove accurate (note the qualifier), will take a lot of stress out of farming through summer this year. And they will give many farmers the opportunity to top up supplementary feed supplies, much of which got cleaned out during the autumn. Meanwhile, speaking of economists, there are also brighter forecasts for many on commodity prices. According to Rabobank’s latest Dairy Quarterly report, dairy export
LETTER ACTIVISTS DISPUTE DAM CLAIMS I RECALL my phone conversation with Tim Gilbertson about the Ruataniwha Dam (Rural News Sept 6). It was lengthy and I answered all his questions with some degree of patience. I then sent him a follow-up email detailing some of the studies and science behind Greenpeace’s position. I wonder why I bothered. Tim claims I “didn’t have a clue” which rivers would be damaged by the dam. I was very clear which rivers are at risk, but I’ll list them again for his benefit: the Makaroro (which will be cut off by a 25-storey wall), the Waipawa and the Tukituki which, instead of receiving a flow of clean water from the Makaroro, will receive runoff and waste from the 9000 additional hectares of dairying that will arise in the catchment. He also claimed I didn’t know what Plan Change 6 is. I’m 100% clear what it is – an ambulance at the bottom of a cliff. It is also difficult to see how it will be enforced given that the council is both the regulator and an investor in the dam. Tim is entitled to his own opinions, but not his own facts. Genevieve Toop Greenpeace, Auckland
surpluses are expected to reduce by 3.4 million tonnes year-on-year – more than at any time since the global financial crisis. The bank says this comes at a time when dairy demand in domestic markets has remained firm and with dairy farmers struggling to grow production and should
result in farmgate prices rising in most export markets. Rabobank dairy analyst Emma Higgins notes while the recent GDT dipped by 3% it is still up 21% for the year to date. Currently lamb schedules are sharp, as more companies reflect the demand for Christmas chilled meat in a short-
supply market; some have been offering supply and quality premiums to attract numbers. However, there are warnings these price premiums may only last until the sea freight deadline of the end of October for the EU/UK Christmas and Chinese new year trade. Beef remains strong, as
the prime market looked to fill the gaps opened in the North Asian market by shortages out of Australia. But with the first shipments of Brazilian beef hitting the US market, analysts are uncertain how it will influence the market, though local prime steers are still selling well.
So, things are looking positive, economically and climatically, for the agricultural sector -- good news for farmers and contractors. Long may it continue. • Wellsford-based agricultural contractor Steve Levet is the president of the Rural Contractors New Zealand (RCNZ).
26.2%
KGMS/COW INCREASE OVER SEPTEMBER 2015
YOU CAN MAKE THE PAYOUT WORK AT $4.00 AND WE’RE PROVING IT. Last year, on the advice of industry leaders, Matthew Haigh cut supplementary feed. Production dropped 19%. This year we’re working with Matthew to prove that with the investment in a nutrition plan from the Dairy Nutrition Specialists, his farm can make more profit. Despite a wet spring and less pasture cover, the results are already looking very impressive. See the results so far at makingitwork.co.nz
TRACTA57726-RN
DESPITE WET weather in many regions, the outlook is encouraging and we are seeing plenty of good growth around the country as rural contractors start cranking up for their busy season. Where I am based in Northland, the ground is wetter now than any time during the winter and if this continues ground work is going to be well behind; we have even had to spray out paddocks that are too wet to get on. However, according to NIWA’s latest weather outlook, this year’s spring looks set to be a good one. There is no mention of dry or drought, in stark contrast to this time last year when the country was readying itself for a 50-year-record drought. At the risk of relying too much on the weather forecaster (they say weather forecasters exist only to make economists look good!), I’ll relay NIWA’s prediction that the North Island is likely to have warmerthan-average temperatures through to the end of December, and rainfall is likely to be normal to above-normal and soil moisture levels likely normal to above-normal for the whole island. Meanwhile, reports
RURAL NEWS // OCTOBER 18, 2016
36 MANAGEMENT
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A NEW dairy research and demonstration farm in Southland will ensure the local dairy sector continually has access to the latest science and innovation, Science and Innovation Minister Steven Joyce says. He says the investment recognises the scale and importance of dairying in the southern region and aims to address local issues unique to Southland dairy farming. The new Southern Dairy Hub in Invercargill will start milking cows next season. The 349ha property will run 640 cows next season but plans to increase cow numbers to 800. AgResearch and DairyNZ have each paid $5 million towards the venture and the Southern Dairy Development Trust, made up of farmers, has put in $1.25m. AgResearch chairman Sam Robinson says the organisation has played a key role in developing the property at Makarewa, 15km north of Invercargill. The new facility will be made up of two independently owned adjoining beef and sheep farms. “The plan is to convert the existing farm operation into a dairy farm this season and then supply Fonterra at the start of the 2017-18 season. It will initially milk 640 cows but that will increase to around 800 cows,” Robinson says. “It will further the science developments in the sector.” Joyce says as a Crown Research Institute, AgResearch is funded specifically to develop and progress science that makes improvements in the agriculture sector. “Collaborating with industry is a sensible way to create a new research environment that is effectively a constant working example of the science,” Joyce says. “There will be obvious immediate benefits for local dairy farmers who will see firsthand how new techniques can help in their unique climate. And the wider science community will also benefit by having a new real-time research facility to use.” The practical pairing of science and innovation with a working farm is not a new concept, but takes much
Steven Joyce
Matthew Richards
investment and commitment, says Joyce. “I am pleased to see DairyNZ and AgResearch working with southern farmers to find the best way to address the region’s specific needs, and be able to find and implement new and effective systems through the science.” DairyNZ chair Michael Spaans says its investment in the hub reflects the importance of dairying in the south and is a prompt for innovation, industry-led research and education. “The hub will provide relevant, up-to-date local research for Southland dairy farmers. [Now comes] the development phase, and farmers will see research getting underway next season.
“This is a key project for DairyNZ and Southland dairy farmers will gain a lot of value from it.” The hub project recognises that dairy farming techniques used in other parts of New Zealand are not easily adapted in Southland, given its unique landscape, climate and soil types, DairyNZ says. Matthew Richards, chair of the Southern Dairy Development Trust, referred to the region’s long dairying history and its important role in the community. “This development will help southern farmers further increase farm efficiency, productivity and sustainability, and thus continue to enhance the wider southern region.”
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RURAL NEWS // OCTOBER 18, 2016
MANAGEMENT 37
Key points to managing fertiliser in spring BALA TIKKISETTY
GETTING THE best bang for buck out of fertiliser – while protecting economic and environmental bottom lines – is a key balancing act for farmers. As the soil starts warming up over the next few weeks and farmers prepare to fertilise their paddocks, finding the right balance is best done with advice from fertiliser reps and consultants. Healthy soils are a balance of biological, physical and chemical properties, and are dynamic mixture of minerals, organic residues and living micro- and macro-organisms, all of which support farm production and provide various eco-system services. As there are risks when applying fertiliser, and strategies to help avoid them, I recommend all farmers have a nutrient budget and a nutrient management plan for their properties. Nutrient budgeting is widely accepted as the appropriate first step in managing nutrient use and it’s also the preferred tool for evaluating the environmental impact of farm management practices. Overseer, a computer decision support model, is used to advise on nutrient management and greenhouse gas emissions. It predicts what happens to the nutrients brought onto the farm in the form of fertilisers and supplementary feed in the same way that a financial budget can track money. Fertiliser reps or consultants can help with nutrient budgets for those who don’t have them, while AgResearch recently released the new Overseer nutrient budget model version 6.2.2, which can be downloaded from http:// www.overseer.org.nz. One factor to bear in mind when doing nutrient budgets is that you may not have to fertilise if soils already have enough nutrients. Another issue to consider is nitrate leaching. Plants need N for healthy leaf growth. But N is an extremely
mobile nutrient. If more nitrogenous fertiliser is applied than plants can take up most of the unused N ends up leaching down through the soil into groundwater. Sometimes N will also be lost to waterways as runoff and some is always released back into the air as gas. The amount of N leaching from pastures can be reduced by: ■■ Timing fertiliser application to avoid periods when plant uptake of N will be low, such as when soils are saturated, during heavy rain, colder periods and times of low soil temperatures ■■ Applying N fertiliser in split dressings (as many split doses as possible) ■■ Irrigating farm dairy effluent to a large enough area ■■ Adjusting fertiliser policy for effluent irrigated areas to account for the nutrient value of effluent ■■ Using fenced wetlands and well-managed open drains as nutrient traps. ■■ The nutrient phosphorus behaves very differently from N because it binds with the soil and dissolves slowly in water over time. This means it doesn’t readily leach to groundwater. But it can damage the health of waterways through soil erosion and surface run-off into water. ■■ Farmers can reduce the amount of phosphorus run-off by keeping Olsen P to optimum agronomic levels. Other tips include: ■■ Following the NZ Fertiliser Manufacturers’ Research Association code of practice for nutrient management ■■ Applying fertiliser when the grass is in an active growing phase ■■ Leaving a grassed buffer strip between paddock and waterway – the strip filters the phosphorus before the run-off reaches the water ■■ Controlling run-off from tracks, races, feed and stand-off pads. In summary, a clear
assessment of fertiliser requirements will improve economic returns from pasture and help avoid contamination of ground and surface water with nutrients, particularly nitrogen and phosphorus. Under moves to protect the health of key rivers, there is increasing pressure for farmers to
improve their nutrient management because of the effects that nitrogen and phosphorus can have on water. Improving nutrient use efficiency is equally important for farm profitability. • Bala Tikkisetty is a sustainable agriculture advisor at Waikato Regional Council
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RURAL NEWS // OCTOBER 18, 2016
38 MANAGEMENT The main entrance to Hadstock Farm, on Corbetts Road, Springston.
Internet future for flower farm NIGEL MALTHUS
INTERNET MARKETING is the future for a long-established Canterbury familyowned farm, Hadstock Farm, nestled on the north bank of the Selwyn River near Springston. This large flower producer is now a blaze of coloured tulips and daffodils despite this being a couple of weeks past the height of the season. Each year, on the first weekend of September, the property offers one paddock of pick-your-own daffodils at $10 a bucket. This year the only marketing was the usual mention on the farm website and a Facebook post which went viral. Cars were backed up from the farm gate down Corbetts Road and round the corner along Bethels, says farm owner John Chamberlain. “It makes you realise the future of the
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internet in selling bulbs,” he told Rural News. Hadstock is about 150ha with about a sixth of that in flowers at any time. The business runs in two parts – blooms picked for the flower markets between June and October and bulbs lifted in summer for sale to home gardeners for planting in autumn. At the height of the picking season up to 40 pickers harvest as many as 8000 bunches a day. The blooms are chosen just before petal burst to be at their best when they get to the customer. Boxes are flown overnight to the auction houses in Wellington and Auckland or trucked each morning to Christchurch auctioneers and wholesalers, eventually for sale around the country. “We packed 31 boxes of daffodils for all over the country yesterday, with about 200 bunches to the box: 6000 bunches of daffodils, plus the Christchurch market and local wholesalers,” Chamberlain says.
RURAL NEWS // OCTOBER 18, 2016
MANAGEMENT 39
A real family-run affair NIGEL MALTHUS
HADSTOCK IS a family business, the farm having been in the Chamberlain family since 1878. The original cob cottage is still on the property, part of a now greatly extended homestead. The place has the feel of a comfortable slipper, with dogs, chickens, ducks, geese and peacocks, and old machinery and cars scattered about in testament to a long and rich history. Chamberlain says his grandfather started growing tulips in the 1930s. His father then introduced daffodils; the bulbs were imported from the Netherlands in the 1950s. The whole family is involved, including John’s wife Cynthia and their three daughters. It is 22-year-old Courtney who first appears to show Rural News around, clearly as knowledgeable about the operation as her dad. Courtney is taking a break from studies, half way through a law and commerce degree at Canterbury University. Younger sister Hannah
is studying horticulture at Lincoln with a view to also getting involved in the family business. Courtney says everyone loves the farm. “We all live at home, even my big sister [Jessica] and her husband. We’re very attached to Hadstock.” It is also a family affair for the contract pickers, for many years members of a Samoan church who return every season. On this, the first Monday of school holidays, the pickers’ children play noisily on a swing and trampoline at the side of the field. John Chamberlain says they are now cutting the last of the daffodils. By using different varieties and forcing some lines to bloom early by cooling them to fool them into an early ‘winter’ they get a cutting season from as early as June right through to bluebells in October. From the end of October they will start digging the first of the bulbs, which continues through January. In January and February bulbs are sorted for selling in February, March
and April. “In May we’re planting and by the end of June we’re picking again,” he explains. Chamberlain says they multiply their stock from bulbs, but do not breed new lines because it is a very long process to build up a single breeding line to commercial quantities. Instead, about four years ago they brought in another 10 to 15 lines of double-bloom daffodils from the Netherlands. “Some will do well and some won’t. That’s always the gamble.” Courtney adds that they’ve made sure they have only lines that grow well both for cutting and selling as bulbs. They have about 25-30 varieties of daffodils and about 15 types of tulips. King Alfred yellow trumpet is the most popular daffodil. “They go in cycles,” she says. “Some years Red Cups are popular. This year Trumpets and Early Cheer were the two best sellers.” The flowers are an easy crop, hardy to just about any weather except hail. But hail is only a minor problem, which tends to hit only a small part of
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the farm at once. When a hailstone can punch clean through a bloom the flower is past the best picking time by that stage anyway. Potential pests include narcissus fly, which is well-controlled by hotwashing the lifted bulbs. For tulips, there are some viruses, but the biggest pest is pheasants, which like to eat the bulbs. Areas of the farm not in flowers at any one time are used for fattening cattle and growing haylage for sale. It allows the fields to be rested and means there’s little fertilising needed. “For daffodils you don’t really spray. It’s mainly for weed control. For tulips a wee bit, but we’re not big sprayers,” John Chamberlain says. @rural_news facebook.com/ruralnews
Father and daughter John and Courtney Chamberlain among the tulips on Hadstock Farm, Springston.
RURAL NEWS // OCTOBER 18, 2016
40 MANAGEMENT
Making the best of hill country farm TREE PLANTING on a Taranaki hill country farm is helping the owners make even more of what they have, says Taranaki Regional Council (TRC). Brad and Jo Bielski’s 891ha Matemateaonga breeding and fattening operation, a family business, runs 5500 stock units -- 70:30 sheep to cattle. Their plan is to intensify their best land and increase their resilience to wild weather. And massive tree plantings to conserve soil show they have an eye on the future.
“We want to leave the property better than we found it and just enjoy farming,” says Bielski. “If we don’t look after the soil it won’t look after us.” The Bielskis’ 2005 TRC farm plan matches their land use to land capability, and a TRC land management officer, Kevin Cash, has helped them work out how to achieve their goals and protect their soil. To date, the Bielskis have planted 21,000 eucalyptus trees over 22ha, let 15ha revert to manuka, placed a QE2 cov-
enant on 54.2ha of manuka and regenerating native forest, fenced those areas and planted hundreds of poplars and willows. The poles and trees help hold hillsides together, the Bielskis get income from beekeepers whose bees forage in the manuka and the eucalyptus offset carbon emissions. They have lost no productivity, Bielski says. “We’re just shifting focus to make the better country work for the property.”
The lifestyle is great, but they have to be realistic about what they can achieve because their farm is affected by wild storms. In June 2015 these wrecked fences, destroyed tracks, dumped soil on pasture and caused 100-200 slips on their hilliest slopes. “On the flats where we had flooding losses, we piled on the super-phosphate and replanted the crops and did the fencing back up, so the flats have gained the productivity. On the hills you don’t ever regain your productivity,” Bielski says.
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BREAKING THE RESISTANCE CYCLE FOR CEREALS A NEW fungicide for wheat and barley kills speckled leaf blotch (septoria tritici) and scald, says the distributor, Adama New Zealand Ltd. The company is a subsidiary of international crop protection company Adama Agricultural Solutions. Called Phoenix, the product is a critical new tool for NZ cereal growers, says Daren Mabey, commercial manager of Adama NZ. It is altogether new in cereal fungicide (Phthalimide – Group M4), he says. Its active ingredient Folpet hits the disease at a cellular level using a multi-site mode of action. It inhibits spore germination and cell division and reduces energy production in the mitochondria. It is classified as having a ‘low’ resistance risk. In fact, no resistance is known to Folpet globally, Mabey says. “Phoenix brings a completely new mode of action to the market.” Used early season -- the key time to prevent latent diseases such as septoria -- it helps reduce the risk of resistance developing in partner products. Septoria slashes crop yields, says Adama. Resistance to Qol fungicides was detected in NZ in 2013, when hit wheat yields hard. In the 2013-14 season, losses of 2-3 tonnes/ha -- even up to 7t/ha -- were reported in crops affected by septoria. Says Mabey, “Ever since it was confirmed by the Foundation for Arable Research (FAR) that septoria had developed resistance to Qol fungicides, the need for sound resistance management has become imperative.” This is now critical because the industry is forced to rely on two remaining effective chemical classes. “There is evidence of reduced sensitivity to DMI fungicides used to control septoria here in NZ,” says Mabey. “In the UK, they only have 20-30% of efficacy remaining; NZ must protect what it still has. We need a multisite protectant that prevents further resistance to septoria and at the same time improves the efficacy of single site chemistry. With Phoenix’s three modes of actions you’ve got both.” Results from trials show that Phoenix is an ideal partner with DMI fungicides such as Stellar for early season application, Mabey says. Phoenix does not inhibit the uptake of tank-mixed DMIs. In fact, studies have shown it enhances DMI uptake into the plant, increasing their speed of action and efficacy. www.adama.com/new-zealand/en
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“But the poplar poles we’ve planted in the back areas that looked like they were going to slip – they’ve held up pretty good. We didn’t get any slipping in the eucalyptus paddock or the paddock just down from it that’s still in quite heavy manuka, whereas the grazing land across the valley had massive damage.” The money for the work came from the South Taranaki and Regional Erosion Support Scheme and Afforestation Grant Scheme.
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RURAL NEWS // OCTOBER 18, 2016
ANIMAL HEALTH 41
Parasite resistant deer on the horizon? that the technology is experimental,” she says. McIntyre says the Carla scores now being gathered will be added to the data collected in the Deer Progeny Test, to help build a robust database that one day may underpin a BV for worm resistance. This would enable commercial farmers to factor worm resistance into their decisionmaking when buying stags. AgResearch senior scientist Geoff Asher says there is a lot of commercial pressure to come up with a practical solution to the growing resistance of internal parasites to the drenches used in deer. “When farmers are using the recommended deer drenching programme, there’s a 90-day withholding period between the last drench and slaughter. That’s a long time without a drench when you are chasing premium spring venison prices,” he says. “Some breeders want to get in on the ground floor and breed deer that need less drenching in their first year. The ideal would be an animal that only needed drenching at weaning and perhaps once or twice more, before natural resistance to parasites kicked in. That’s the ideal, but we can’t promise that – at least not yet. And the last thing we want to do is over-promise and under-deliver.” Research now underway into the linkage between Carla scores and deer growth rates is part of a twoyear project dubbed Tomorrow’s Deer. It is funded by DEEResearch – the organisation that channels
farmer levies into research – and AgResearch, which is providing substantial core funding. The project aims to identify genes, such as for parasite and disease resistance, that will enable deer to thrive in a commercial farming environment. In an interesting twist, the study will be broadened in 2017 to see whether resistance to parasites is linked to resistance to an important deer disease. “In this trial we will look at the health and performance response to an artificial Johnes’ disease challenge in deer from both high and low Carla bloodlines and those that come from Johnes’-resistant and susceptible bloodlines,” he says. “This is the first time progeny from sires with known immune responses to two different organisms have had their performance measured under a cross-over type disease challenge. The aim is to find genetic markers and breed for deer with high levels of immune competence for the farms of tomorrow.” Asher says it will be interesting to see how all the genetic factors play out. “We don’t yet know what an optimal Carla response looks like, as perhaps some overactive immune responders may be wasting valuable energy on unnecessary immune responses rather than growth,” he says. @rural_news facebook.com/ruralnews
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A SALIVA test successfully used for selecting sheep with enhanced protective immunity to internal parasites is now available for deer breeders. But they’d be taking a punt in using it, because research to find out whether or how resistance is linked to growth rates and parasite levels in deer won’t be completed until late next year. Resistance levels are scored using a saliva test that measures the antibodies triggered when animals ingest internal parasites. The test, carbohydrate larval antigens (Carla), was developed by AgResearch scientists for the sheep industry, where Carla breeding values (BVs) are now a routine part of genetic selection. Research to date shows that Carla responses in deer are heritable and that Carla levels may be a useful predictor of resistance to internal parasites. This resistance varies both within and across breeds, with wapiti-crossbred (terminal) and red (maternal) progeny having similar responses. Sharon McIntyre, manager of Deer Select, the deer industry’s genetic database, says Carla BVs will eventually be provided within Deer Select. “Recording fields have been set up, but for the meantime the BVs will be produced offline through AgResearch. While we could do this quite easily within Deer Select, it is important at this stage that the data collection is supervised. Also we want to reinforce the message to breeders
RURAL NEWS // OCTOBER 18, 2016
42 ANIMAL HEALTH
Reducing ewe deaths could save $28m annually PAM TIPA
pamelat@ruralnews.co.nz
REDUCING EWE mortality rates on farm by 2% could result in at least $28 million a year savings to the industry, says Kate Griffiths, at the Institute of Veterinary, Animal and Biomedical Sciences, Massey University. An ongoing study is more accurately establishling mortality rates and the reasons for them. One way to reduce culling rates may be to better identify udder traits that farmers can use to correctly identify which ewes to cull, she says. A study is underway to look at a possible standardised scoring method
on udder traits that farmers can use. Little scientific investigation has been done in this area for 40 years, Griffiths says in a paper to the NZ Veterinary Association conference. Griffiths says there are about 20 million breeding ewes in New Zealand (Beef + Lamb NZ, 2015). “If we assume an annual average onfarm mortality rate of 8% (1.6 million ewe deaths/year) and aim to reduce onfarm mortality to 6% (1.2m deaths/year), this will result in 400,000 fewer ewe deaths annually. “Assuming ewes are conservatively valued at $70/ewe (Baker Associates, 2016) this equates
to an extra $28m per year, and has not accounted for both feed savings and increased revenue from increased lamb sales.” Griffiths says there is generally a lack of research and data related to longevity and wastage rates in NZ sheep flocks.
Ewe wastage results from onfarm mortality and premature culling -- the latter meaning a ewe is culled likely before the end of her productive lifespan, and is sent to slaughter via direct sale or via slaughter onfarm. It is believed that
onfarm ewe mortality lies in the range 5-12%, but this is not accurately known. This has a direct cost, in that the cull value of the ewe is not obtained and the potential for lambs is lost. A main reason for premature culling of ewes from commercial flocks is their failure to rear lambs, having previously been identified as pregnant (wet-dry ewes). Poor or reduced milk production and impaired lactation performance may be contributing to these ewes being identified as wetdry, but this is not accurately known.
Recent survey results indicate at least 75% of farmers were examining ewes’ udders looking for poor udder conformation or appearance, then culling them based on that assessment. However, there is no standardised scoring method NZ farmers can use that relates udder examination findings to a prognosis (i.e. likely ability to raise a lamb). In fact, little scientific investigation of this has been done in the last 40 years. Therefore, ewes may be culled unnecessarily or, conversely, ewes unsuitable for breeding may be retained in the flock. “We also do not know if udder characteristics change over the course of a production cycle (one year), and therefore do not currently know the best time to examine ewes’ udders. Udder examination is currently done at weaning, mainly for convenience. “This study aims to identify udder traits
related to the ability of a ewe to successfully rear a lamb and to identify udder traits that farmers can use to correctly identify which ewes to cull. This will enable more targeted ewe culling and a reduction of unnecessary lamb wastage.” Referring to the overall study of mortality rates and reasons (now underway), Griffiths says 12,324 ewe hoggets are enrolled, all identified using electronic identification (EID) tags. Enrolled hoggets were 2010- and 2011-born (Farm A) and 2011-born (Farm B). Farm A is in Waikato and runs a composite breed of Coopworth and East Friesian genetics; Farm B is located in Wairarapa and has Romney genetics. About 85% of the enrolled hoggets were presented for breeding at 6-8 months of age, while the remainder were not bred until they were twotooths. @rural_news facebook.com/ruralnews
RURAL NEWS // OCTOBER 18, 2016
ANIMALHEALTH 43
‘Good dog’ makes training easier TWO WORDS I find invaluable when training dogs are “good girl” (boy dog); not only do they work magic with children but they have the same effect on dogs. The secret to their effectiveness is understanding, timing and correct usage; overuse them and their power is lost. Not only do you need to understand when and how to use “good dog”, but the dog needs to understand the meaning. I once commented to someone, “You never say ‘good dog’.” And the next thing he was like a stuck record with the words; the trouble is he may as well have been speaking a foreign language because the words had no meaning for his dogs. Dogs don’t speak English, they communicate in other ways, two of which are vocal tones and facial expression, so I use both. The tone of my voice changes quite dramatically as does my facial expression: normal happy angry and emphasizing -normal tone, normal facial expression; happy tone, big smiley face; angry tone, if looks could kill. When we introduce a word to dogs, we need to teach the meaning, and pups or adult dogs quickly learn that the words “good dog” mean you are pleased with them, they are doing the right thing or getting
HEAD ‘N HUNT ANNA HOLLAND
When I am teaching a new command and the pup is unsure and confused, I will say “good girl” more than when the pup understands a command well; and I never waffle, repeating the words several times in one sentence – once is enough. Every pup, with every
first lesson or two with a new command, will be confused and worried; it has no idea what you are doing, so patience and praise are integral to easy learning and your bond. I cannot emphasise enough how critical the timing of your praise is; it must be the split second
the dog does the right thing. Imagine, you are trying to teach something, the dog is confused and is doing everything wrong, then he unknowingly does it right, and the split second he does, he hears “good boy”. You will literally see
the relief in his eyes: “oh, is that what you want me to do?” If the two of you have been training for over ten minutes, this would be a good place for a big rub, “good boy” and to end the training session on a successful note. I always end training on a good note, rub
and praise and calmly lead the dog back to the kennel; I never let the dog run loose; we end calm, relaxed and controlled. •Anna Holland is teaching people dog training. For more information www. annaholland.co.nz or tel. (06) 212 4848 or annaholland@xtra.co.nz
praise for a job well done. Call your pup to you and when it arrives say in a light happy voice, with a big smile on your face “good dog” (boy, girl) as you rub it; pat yourself, rub yourself – which is the more pleasant? After you repeat this on several occasions the pup will associate the words with reward for obedience. Continue for a few more times to reiterate the meaning, then you can use the words only and drop the rub if you wish. Never, I repeat NEVER, say the words to try to con a dog into doing something; only use them when the dog obeys a command – the split second it obeys. For example, the pup won’t come when being called so “good boy Mate – come here” is rewarding the pup for not coming. Instead, “Mate – come here”, nothing; “Mate – come here!” in a businesslike tone (not an angry tone) the split second he starts to come to you “good boy” in your happiest voice and when he arrives, big rub and “good boy”.
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RURAL NEWS // OCTOBER 18, 2016
44 ANIMAL HEALTH
Bacteria linked to lamb abortions PAM TIPA pamelat@ruralnews.co.nz
Strains of helicobacter bacteria are thought to be the cause of lamb losses via abortion.
STRAINS OF the helicobacter bacteria, which live in the stomach, are now believed a possible cause of abortion
in ewes, following MPI investigations. Further abortion investigation work and surveys in different sheep rearing regions of New Zealand are now required, the NZ Veterinary
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Association was told in a paper. This will assist understanding of the true impact of this organism, whether it presents an emerging condition, and whether research into preventive measures or treatment is warranted. The investigation was done by the MPI Investigation and Diagnostic Centre (IDC) at Wallaceville, Upper Hutt. The centre manages the investigation of any suspected exotic animal disease, and has an expanded remit that includes all cases where a new or emerging syndrome is suspected. This responsibility covers all animals, including managed, wild and feral populations, in the ground, freshwater and marine environments.
with Gribbles Veterinary Pathology (NZ), Massachusetts Institute of Technology (MIT) and The Forsythe Institute (TFI, USA), surveyed abortion submissions from the 2012 and 2013 lambing seasons, in the southern South Island. A total of 84 submissions from 66 farms were assessed, and a comparison was made of the proportion of laboratory submissions culture positive for helicobacter, from flocks in which no other agent had been identified, compared to flocks that had a known cause of abortion. Where no diagnosis had been made, aborted material was positive in 14 submissions (23%, 14/60) from 10 of the 46 survey farms (22%, 10/46). Helicobacters were
“The finding of helicobacter bacteria in flocks experiencing abortion, and in which common endemic agents of abortion had been excluded, is an important milestone.”
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IDC presented the discovery of helicobacter associated with sheep abortion as part of that expanded remit and as an example of improved laboratory diagnostics. In NZ the agents most commonly diagnosed in sheep abortion are campylobacters, toxoplasmas and Salmonella Brandenburg, accounting for about 80% of sheep abortions where a causal agent is identified. After a significant outbreak of abortion on a Southland farm in 2009, where those causes had been eliminated, further investigation was made into liver tissue. Results were consistent with various strains of helicobacter, so a provisional diagnosis of abortion associated with this agent was made. To assess the association of helicobacter with sheep abortion outbreaks, MPI, in partnership
not detected in any of the 24 submissions from the 22 control farms. The helicobacter were confirmed as Helicobacter trogontum (Flexispira taxon 5 genotype) and Helicobacter bilis (Flexispira taxon 8 genotype). “The finding of helicobacter bacteria in flocks experiencing abortion, and in which common endemic agents of abortion had been excluded, is an important milestone,” the ICD paper says. “Findings support helicobacter spp. with flexispira morphology as a likely causative agent of abortion outbreaks in southern NZ. “Affected ewes show no clinical signs, while aborted lambs generally had gross and histological liver changes similar to those seen with campylobacter associated abortion.” The paper called for more investigation in NZ.
RURAL NEWS // OCTOBER 18, 2016
MACHINERY & PRODUCTS 45
Jobs struggle to find takers WITH THE annual value of the New Zealand agricultural machinery industry put at a conservative $1.3 billion, and agriculture in general being the key driver of NZ’s GDP, you’d think it would be easy to recruit youngsters into the industry. The facts are the opposite: all land-based sectors report they are struggling to attract new entrants. The machinery/technology sector seems to release new products on a weekly basis, for example, autonomous tractors guided by super-accurate GPS, milking platforms made from composite materials, and 200hp squeezed out of 4-cylinder diesel engines. Yet all this has little appeal to youngsters. Why? Is there a misconception that working in ag machinery means being up to your armpits in the proverbial, working long hours or never getting time off during harvest? What makes potential employees look elsewhere? Ron Gall, general manager of the Tractor and Machinery Association (TAMA), says this industry body is making members aware of the ‘have a trade, got it made’ initiative, and is developing links with training agencies MITO, Competenz and Careers NZ. At the grassroots level, Rural News spoke to CB Norwood Distributors Ltd’s national retail aftersales manager Craig Sargent, who confirms
that his company, a large importer and retailer, struggles to attract, train and retain technicians and mechanics. The company attends high school career events and National Fieldays, but has only limited success. Similarly, importer and distributor Power Farming struggles to attract youngsters, so much so that about five years ago it set up its own apprenticeship programme in which entrants can attain the National Certificate in Motor Industry - Heavy Machinery Level 4 stan-
dard. Trainees work in retail dealerships, developing the required skills while earning a wage, fees covered, and learn all aspects over three to four years. Successful graduates are offered a career path through the company that could lead to certified technician status, getting training in key disciplines like hydraulics or electronics, and further training at European supplier factories. The company also offers graduate training for people wishing to enter the industry from places of tertiary education, and qualified in commerce, manage-
ment or agribusiness. This 24-month scheme grounds trainees in all areas of the business in NZ and Australia, with mentoring and leadership. Career paths could lead to senior roles in sales and product and business management. Lincoln University
says it knows about the need for technicians in agricultural engineering, and it once actively pursued this in days gone by. The remnants of former agricultural engineering courses are there to see: redundant workshops and a range of machinery now outdated and irrelevant to today’s agriculture. The cost of bringing things up to date would be too high considering the uni’s financial woes, though some form of sponsorship by one of the larger machinery firms might help. Recruitment, challenging enough for larger businesses, is tougher
again for small-medium size enterprises. And now the ever-accelerating pace of mechanisation in agri-
culture means a need for a workforce highly skilled in a whole new range of disciplines is upon us.
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RURAL NEWS // OCTOBER 18, 2016
46 MACHINERY & PRODUCTS
Cultivation well covered MARK DANIEL markd@ruralnews.co.nz
WELL KNOWN for making power harrows, rotary hoes, subsoilers, mulchers and combination drills, Alpego has for 45 years used Swedish steel in delivering machines of high quality and durability. Imported by distributor Origin Agroup, one machine proving increasingly popular in New Zealand is the RotoPick rotary cultivator. This provides an ideal one-pass solution for seedbed penetration, fixing damaged pugged ground after winter grazing, sowing spring or summer feed crops and re-grassing in autumn. A series of straight knives bolted to flanges laid out in a helix fashion along the rotor result in smooth, vibration-free operation. The knives cut and slice the soil, using a special curvature at the tip to penetrate hard ground and mix the soil. The resultant finish is said to create a pan-free base ensuring air and moisture freely move throughout the soil
The Alpego subsoiler provides an ideal onepass solution for seedbed penetration, as well as fixing damaged and pugged ground.
structure. When fitted with a broadcast seeder it is possible to re-grass or sow fodder crops in a single pass. A unique centre-drive gearbox has fewer moving parts, lower power requirement, gives extra support to the rotor and, importantly, is a step beyond the commonly seen side gearbox layout which can limit ground penetration and create ridging. All RotoPicks have a rear leveling bar attached to the rear roller by means of a parallelogram linkage, which ensures the seed bed is left perfectly level behind the machine. It can work indepen-
dently of the machine and the tractor, back filling any irregular ground contours, resulting in a level surface for planting; it also prevents ridges from forming when lifting out of work on headlands. For the coming season, a newly launched sub-soiler called the Alpego Craker builds on the tried and tested merits of enhanced drainage and higher worm counts to promote more vigorous and higher yielding crops. During development, engineers noticed that many sub-soilers left an uneven surface and in some cases were not able to go
deep enough to penetrate the compacted pan layer to achieve the best results. Alpego claim to have overcome these problems with legs that enter the surface of the ground at an optimal angle, allowing the assemblies to punch through the compacted pan with less energy, and to a depth of up to 600mm, with little mixing of the heavier subsoil and topsoil, leaving the soil profile intact. Craker is supplied with Franter double-spiked rear rollers which counter rotate against each other for a tilling effect on surface clods, resulting in a level finish, moisture retention and a part-cultivated top profile, prior to final cultivations and drilling. The cracking effect of the sub-soiler is said to lead to increased moisture availability in a dry season and improved drainage in wet times. Models are available from 2.5 to 5.0m working widths, with a choice of 500mm or 600mm legs and shear bolt or hydraulic auto reset protection. Power requirement is 80-500hp.
CAR MARKET BOOMING WHILE THE agricultural machinery market is down, partially reflecting the state of the New Zealand dairy industry, the market for new road vehicles appears to know no bounds. August sales hit a record 12,677 units – up over 13% on 2015 and the highest showing since 1984. Motor Industry Association chief executive David Crawford cites strong net migration, booming tourism and a generally robust economy for the ongoing success in the sector, in a year when the final figure might top 140,000 units. The mix saw 8896 passenger/SUVs, and 3781 commercial vehicles, leading Toyota in winning the no.1 spot with 18% market share (2281 units). Ford at 12% (1463) and Holden at 8% (1051) took the minor placings. Passenger/SUV sales gave Toyota 17% (1542), Mazda 9% (813) and Holden in third place with 7% (283). In light commercials, Ford won with 23% (862), runnerup was Toyota with 20% (739) and third-place Holden took 7% (283). Year to date, NZ’s love affair with utes seems a close-run race, with the Ford Ranger on 5646 units and rival Toyota’s Hi-Lux sitting at 4235. The market seems to be taking the view that “big is better”: SUVs account for around 38% market share, passenger cars 32% and utes a healthy 25%. It seems SUVs are finding favour with Kiwis because of the space they provide for growing families, while utes prowess as workhorses during the week and family wagons at weekends. – Mark Daniel
www.originagroup.co.nz
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To put this into a reality from a profitability point of view, on a typical farm of 150 hectares milking 400 cows, a typical application of granular Urea at 80kg/ha 6 times a year would equate to approximately 72 tonne of Urea, $43,000. If it were to be dissolved and applied as a foliar spay, then the cost would be around $18,000, which is an annual saving of $25,000. From an environmental point of view, the N escaping into the environment, as ammonia, leached beyond the plant’s root zone or as the greenhouse gas, Nitrous oxide, would be largely reduced because the Urea should not enter the soil but is directly absorbed by the leaves.
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RURAL NEWS // OCTOBER 18, 2016
MACHINERY & PRODUCTS 47
Red machines help contractors do the job MARK DANIEL markd@ruralnews.co.nz
GRAEME AND Kay Murphy, of Murphy Contracting in Geraldine, South Canterbury, produce around 15,000 bales every season, entrusting this task to a MF 2250 medium square baler. Used mostly to make grass silage, and also handling straw, hay, lucerne and whole crop silage, the machine replaced a previous MF 2150 model. Now with a season under its belt, Murphy says it fills the top of the chamber better than the old machine, which helps deliver a firmer and better shaped bale.
features: good working lights for late nights, and a bale ejector system that brings the last of the crop out of the chamber. Maintenance is also said to be easy, with good access to all areas that need attention. Anyone who has made bales will know that the presentation of the crop to the baler is the key to producing a well-shaped bale and achieving high outputs. At Murphy Contracting this task falls to the twin rotor, centre delivery RK 3875 rake, operating at widths up to 6.6m, but more importantly, swathe widths of 1.2 to 1.8m depending on the crop and conditions. Much of the raking
in an environment more comfortable and less noisy during the October-April season.
Heavy lifter
Murphy contracting relies on Massey Ferguson gear to get their work done.
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Murphy says the machine’s suspended tandem axles make it very stable and easier to pull over rough ground. It makes bales 800 x 875mm, such packages proving easy to stack and truck. Its output is centred on producing a quality product at around 60 bales/h, although production up to 130 bales/h has been seen in large paddocks with big crops. A 2260mm wide pick-up lifts the crop cleanly to feed augers, which move the crop smoothly into the bale chamber. The operator can easily adjust the bale density by using the AgCommand monitor as crop or weather conditions change, as well as keeping details of individual jobs done during the day Murphy says the machine’s suspended tandem axles make it very stable and easier to pull over rough ground. And it has some neat
falls to Kay who uses the machine in grass, lucerne and whole crops. It is said to be better than the old V-rake as it has no tendency to ‘rope’ the crop as did the older machine. As you would expect from a MF man, the Murphys’ tractors are also red, including a fiveyear-old 185hp, MF 7495 Dyna–VT with a variable transmission; this spends its life hitched to the baler. Murphy says the stepless transmission is ideal for baling, allowing fine adjustment of speed and 50km/h on the road between jobs. Fuel consumption is pleasing, he says -- around 18L/h. A four-year-old, 120hp, MF 5465 Dyna-4 offers a basic and simple solution for raking, wrapping and baling, while a recently landed MF 7614 (140hp) will keep Kay busy, but
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RURAL NEWS // OCTOBER 18, 2016
48 MACHINERY & PRODUCTS
MARS – not out of this world! MARK DANIEL markd@ruralnews.co.nz
MANY TRACTOR manufacturers are talking about autonomous operation, most going about it by modifying existing prod-
ucts. High-end German tractor builder Fendt looks to be taking a different route: it sees fieldwork of the future being done by multiple robots Its MARS (mobile agri-
cultural swarm robots) project proposes units working around the clock at high levels of precision and with much less labour onfarm. The company also believes that by using multiple small robots the system would offer more flexibility and allow adaptation to changing conditions or situations. Early trials are centred on the planting of maize crops in a project being partnered by the University of Ulm and funded by the European Union Open Robotics Development Programme. The vision sees field robots being transported to a work area by a logistics unit -- a perhaps autonomous trailer or transporter carrying seed, fertiliser and recharge facilities for the robots. Field units would be battery powered and run electric drive systems, resulting in lower tare weights with the benefit of being able to operate under conditions not suitable for conventionally based machines. Robots would do the
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seeding, and be able to adjust seed rates and sowing patterns and record data for proof of placement. Control would be via an app, used on a tablet or mobile device, allowing control away from the work site. After inputting data on field location and size, setting seed rates and sowing pattern, the system would calculate the time required to complete the task and allocate the appropriate number of robots. Robots would be able to communicate via a cloud-based system in conjunction with GPS to provide detail such as geo-coordinates of each seed planted, and should a unit break down send a message to the logistics vehicle to organise a replacement. www.fendt.com
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Drop into your local participating John Deere dealer, or visit us at JohnDeere.co.nz/HardWorking to see more package options. Some products, options, attachments or accessories may not be available in all regions and from all dealers. Images used are for illustrative purposes only and may show features or attachments not included in the advertised price. Products, specifications and availability are subject to change without notice. *Conditions apply. Finance available through John Deere Financial Limited to approved commercial applicants only. Repayments based on a price of $85,369 for 5083E cab tractor with H240 Non Self-Levelling (NSL) loader, $4,154 for pallet fork and $9,467 for post hole digger & auger. Price does not include pre-delivery, freight, assembly or dealer charges, these are determined by your dealer. Implements and attachments sold separately. Calculated on a 60 month term at an annual percentage rate of 3.99% with 40% deposit and GST back. Fees and charges apply. Valid on eligible equipment delivered no later than 31/10/2016. Offer only applies when bundled as a single purchase. If not amended or withdrawn earlier, the promotion expires on 31/10/2016. †Implements shown are manufactured by FieldQuip and are available at participating dealers. TRACTA57340-5083E-NZ-RN
WHILE THE tractor market in Europe seems to have cooled by around 10%, Fendt sold 13,678 tractors in 2015 and is forecasting similar sales for 2016. It is also talking positive about combine harvesters and balers -- increased sales and a stable outlook for its Katana self-propelled forage harvester. Ninety per cent of the company’s production is destined for western or central Europe, where the company aspires to raise its market share from the current average of 8.3% to 10%. Looking at the numbers in more detail, Fendt enjoys a good market in France, the Netherlands, Switzerland and Austria and its native Germany, with a share of 10-20%. In UK, Italy and Spain it enjoys around 5% market share and sees great potential for improvement. Parent company AGCO continues to spend around Euro 60 million annually on Fendt R&D to help it attain these growth objectives.
Check out our websites www.ruralnews.co.nz www.dairynews.co.nz
RURAL NEWS // OCTOBER 18, 2016
MACHINERY & PRODUCTS 49
Swapping downtime for snow time NOT MUCH to do for contractors in the winter? Not so for agricultural contractor Colin Murdoch; he swaps downtime for snowtime by leasing his four Claas tractors to an awardwinning automotive testing facility with a view of the Southern Alps. The Southern Hemisphere Proving Grounds (SHPG) allows vehicle, tyre and component manufacturers to continue their winter evaluation during the European summer, at the privately owned $50 million complex of test tracks, gradients, circles and all supporting infrastructure. From June to September, test crews from around the world try out prototype vehicles and components under harsh winter conditions far away from the eyes of the media. The relatively short season and the high costs of transporting vehicles, equipment and staff to New Zealand requires test crews often to work around the clock, so 80 SHPG staff work a 24/7 roster grooming the snow and ice to strict specifications. Operations manager Kerry Poots, who has 20 years’ snowfield
experience, has for four years had a key role in bringing in snow grooming equipment from North America and Europe: two Fliegl ASW 160 push-off wagons from Germany, two Stark snow blowers from Finland and two Dubie track groomers from the US. By chance, Murdoch knew one of the night supervisors which led to him getting 300 hours work in 2013, 700 the next, 1400 last year and about 2000 hours this season. The proving grounds are 90 minutes from the base in an area with an altitude range from 300m to 1500m; once on site Murdoch’s tractors’ farm tyres are replaced with imported snow tyres for traction at any speed Manufactured snow is loaded into the Fliegl push-off wagons, each towed by a 264hp Claas AXION 850 tractor. Normally used to transport silage or compost, the twinaxle wagons can hold 22cu.m of snow weighing up to 16 tonnes. During unloading, a forwardmounted hydraulic ram pushes the snow through twin hydraulic spreaders, which evenly shred and disperse the icy load up to 22m. Two 184 hp Claas
Arion 640 tractors, fitted with Stark snow ploughs on the front and Dubie track groomers on the back, prepare the tracks to exacting international standards. “The tyres make a big difference,” says Murdoch. “We’re operating three times faster and twice as wide as the previously used graders.” During downtime,
electric engine block warmers keep the tractors ready for action. “The winter work provides four of my drivers with another 10 weeks work between June and September,” Murdoch says. “It’s pretty full-on, working 24 hours a day, seven days a week for 10 weeks straight.” @rural_news facebook.com/ruralnews
During the winter Colin Murdoch leases his four Claas tractors to automotive testing facility in the Southern Alps.
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RURAL NEWS // OCTOBER 18, 2016
50 MACHINERY & PRODUCTS / RURAL TRADER
Nice car, but don’t lose the keys! MARK DANIEL markd@ruralnews.co.nz
YOU WONDER how the marketing people in the motor industry come up with new model names. For example, the Volkswagen Touareg name originates in the name of the Tuareg people of North Africa, pastoral nomads who eke out a living in the Sahara Desert. Scarce in New Zealand, the VW Touareg started life in 2002 as a joint venture, branded alongside the Audi Q7 and the Porsche Cayenne, before an upgrade in 2011. Depending on your vantage point you get the impression of a big SUV; viewed from the rear it appears extremely wide. Jump in and close the door; a reassuring ‘thump’ suggests it’s nicely put together; of course – it’s made in Germany. But that’s not quite correct, because it’s built alongside the Audi and the Porsche at VW’s plant in Bratislava, Slovakia; they obviously do it right. The Rural News test car was fitted with a V6, 3.0L turbo diesel pushing out 180kW and 550Nm torque at 2000rpm.
Despite its kerb weight of close to 2200kg it showed a reasonable turn of speed, hitting 100km/h in around 7.5 seconds, at sensible fuel consumption of 7.4L/100km. Interestingly, even when pushed hard in ‘sport’ mode the engine noise was always restrained, no doubt helped by that ‘German’ fit and finish and serious sound deadening between the engine compartment and the passenger area. On-road progress was equally smooth, the 8-speed transmission slipping through the box like a knife through butter; it was best left to sort out what ratio it wanted to be in, but drivers who like to fiddle would find that the pair of flappy paddle shifters under the wheel work just fine. On a Coromandel drive on the infamous Thames-Hikuwai road (lots of bends), ‘sport’ mode and a slow in-fast out approach brought a grin to this tester’s face; the car pulled away strongly while maintaining lots of poise, irrespective of changing cambers or surfaces mid-bend. In the cabin, the five seat layout works well, giving plenty of space for
all occupants, with none of the trap of trying to jam seven seats into a space designed for five. This is probably the reason the rear load area is a healthy 580L with space for a crew of five on a weekend away. The seats are firm yet comfortable and provide plenty of lateral support when hustling through bends, and -- a big plus for this reviewer -- the seat squabs are extendable, giving great support to a tall driver’s rear thigh. Suspension is largely conventional: double wishbones and coils front and rear, working with gas dampers which provide active suspension adjustment and combine with roll bars to keep things on a level plane. 4Motion allwheel drive ensures power is pushed to all corners and senses the need for more or less action depending, for instance, on whether you’re in mud or on loose gravel. Safety gear included electronic brake force distribution, stability control, auto levelling suspension, traction control and hillside descent systems. Our car also had blind spot monitoring, land departure warning and adaptive cruise control. Also in the package was a full colour,
8-inch infotainment system – requiring Germanic logic for best use – and a firstrate camera set-up offering 360 degree visibility and bang-up-to-date parking sensors. This SUV is right up with the best and warrants a much closer look; but hear one word of warning: a neighbour had visitors from Australia who drove
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from Auckland in a hired Touareg with their kids, just when the test vehicle was on our drive. After their first day in Waikato the little darlings did a runner with the keyless entry fob which is very effective; for the next four days entry was denied even the finest locksmiths; the car proved impenetrable. Moral: don’t lose the key.
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