Rural News 15 November 2016

MANAGEMENT

MACHINERY

Irrigation a ‘dam’ good thing. PAGE 29

Unimog celebrates it’s 70th birthday. PAGE 36

NEWS Taking up the challenge of feeding the world.

PAGE 6

TO ALL FARMERS, FOR ALL FARMERS NOVEMBER 15, 2016: ISSUE 619

www.ruralnews.co.nz

More or less $261m? DAVID ANDERSON

ANOTHER TWIST has appeared in the controversial Silver Fern Farm merger with Shanghai Maling, this time over exactly how much cash SFF may actually get from the Chinese company. Reports on the long-planned deal, in force from early next January, have been that Shanghai Maling will invest $261 million to acquire a 50% of Silver Fern Farms Ltd. However, there is now conjecture about whether SFF will actually receive this amount, based on media comments by Bright Foods (the owners of Shanghai Maling). In an interview with the South China Morning Post newspaper in late October, Bright Foods spokesman Pan Jianjun said Shanghai Maling Aquarius’ agreement to buy a 50% stake in Silver Fern Farms “was a vivid example of Bright Foods’ resolution in strengthening and deepening the internationalisation of its businesses.” And he added, “A swing in the yuan’s exchange rate prompts us to be more meticulous in deal making, but our goglobal strategy remains unchanged.” Pan told the SCMP that the price for the 50% stake in Silver Fern “has yet to be set”, despite financial reports saying Maling would pay US$178m (NZ$261m) for a half share of the New Zealand sheep and beef exporter. However, Silver Fern Farms says this is “not new” and there has always been a possibility of a difference in the amount Shanghai Maling will pay for its

50% stake. “Yes, there is potential for a variation, but that’s not new,” a SFF spokesman told Rural News. “In the first notice of meeting [to shareholders on the special meeting to vote on the SFF/Shanghai Maling deal] it says, ‘approximately $261 million’ on page 1 of the chairman’s letter’.” This was more fully described in the ‘description of the transaction’ in footnote 4, the SFF spokesman said. “The precise investment amount is also subject to a variation to the extent

that supplier investment shares or rebate shares are redeemed prior to completion, or to the extent the actual net assets position at 30 September 2015 differs from the latest forecast provided to Shanghai Maling upon which they based their analysis. We do not expect these variations to be significant.” Official approval for the joint venture deal came in October this year, with the Overseas Investment Office giving its consent, saying it was “satisfied the investment will be of substan-

tial and identifiable benefit to New Zealand”. “The proposed investment is now unconditional and is set to be completed on January 4, 2017, the first business day of the new financial year for the partnership,” SFF said after gaining OIO approval. SFF chair Rob Hewett says the new partnership will create a unique opportunity, “making Silver Fern Farms financially the strongest company in the NZ meat industry, able to confidently invest in our business”.

Showtime!

Georgia Henderson, of Christchurch, gives her son, Hunter (15 months), his first farm experience in getting up close to a lamb in the Mike Greer Homes City Farmyard at this year’s Canterbury A&P Show last week. More on show page 13.

TOUGH YEAR AHEAD PETER BURKE peterb@ruralnews.co.nz

SHEEP AND beef farmers face a season of uncertainty and turmoil with a prediction that incomes could be slashed by 13% and the global market for their products will be “subdued”. That’s the message in Beef + Lamb NZ’s new season (2016-17) preview just released. It predicts the average farm profit before tax will be just $67,000, meaning some farmers will be alright while others struggle. Causing the problems are a fluctuating exchange rate -- especially versus the US$, the uncertainty created by Britain’s decision to leave the European Union (Brexit) and general sluggishness in many key markets including China. The report notes the NZ economy’s relatively strong growth but that the global market is “somewhat fragile”. China’s growth continues to slow as the economy rebalances, yet economic growth there remains high relative to other countries. Last year while the tonnage of meat sold to China increased, this was offset by a 19% drop in price reflecting the rebalancing of the Chinese economy. Meanwhile Brexit, notably, has caused a drop in the value of the pound.

PHOTO NIGEL MALTHUS

TO PAGE 5

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RURAL NEWS // NOVEMBER 15, 2016

NEWS 3 ISSUE 619

www.ruralnews.co.nz

NEWS �������������������������������������� 1-8 MARKETS ������������������������ 20-21 AGRIBUSINESS �������������� 22-23 HOUND, EDNA ����������������������� 24 CONTACTS ������������������������������ 24 OPINION ���������������������������� 24-27 MANAGEMENT �������������� 28-31 ANIMAL HEALTH ���������� 32-35 MACHINERY AND PRODUCTS ���������������������� 36-42 RURAL TRADER ������������ 42-43

Mild winter helps crops flourish NIGEL MALTHUS

A BLAZE of colour on Thompsons Track, Rakaia, indicates how a mild winter has helped Canterbury cropping farmers. A 19ha plot of kale is thriving on one of about eight blocks around the Chertsey, Pendarves and Rakaia area farmed by Ross Hewson, of Chertsey. The seed pods are now starting to form on the kale, which will be harvested as seed in January, mostly for sale to dairy farmers. Farm manager Andrew Scott says any late frost would now be the only threat to a good yield; they expect 2-2.5 tonnes of seed/ha. Hewson farms about 13 different crops on his several blocks, including wheat, potatoes, onions, and a variety of vegetable seeds exported to Asia and Europe.

Farm manager Andrew Scott inspects the seed pods now starting to form on a plot of kale at Thompsons Track, near Rakaia.

RMA REFORMS BACK ON GOVERNMENT’S AGENDA 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

REFORM OF the Resource Management Act (RMA) looks set to go ahead, the Government having reached a deal for the support of the Maori Party. The Government’s attempts to reform the RMA have been stymied in recent years. Last November, Environment Minister Nick Smith announced it had backed off proposed changes to the RMA. The Maori Party agreed at the time to back the legislation through to select committee hearings, after the Government lost its majority in the Northland by-election. Concessions to win the Maori Party’s support include giving iwi the right to be consulted “at the front end” of resource management and council planning via iwi participation agreements. Smith announced last week that the Maori Party will now support the Resource Legislation Amendment Bill, intended to speed up planning and consent laws. Smith says agreement on the details of “iwi participation agreements” – giving Maori greater involvement in the consenting process – will get the numbers

needed to pass the legislation. Smith says the bill will again be referred back to the select committee, and a 500-page departmental report will be considered. The work might be completed this year, but “may flow” into early 2017, Smith says. The Government might also need to consult the Maori Party on the detailed drafting of the bill when it is reported back to Parliament, to ensure it is consistent with their agreement. Maori Party co-leader Te Ururoa Flavell says the changes the party negotiated with the Government ensures the environment will be protected, and coleader Marama Fox says other amendments will give iwi greater involvement. “Iwi have a role as kaitiaki [guardians] of our natural resources based on the spiritual and cultural relationship they have always had with the environment. Maori must therefore be given a crucial role in the management of these resources including rivers, mountains and national parks.” The Freshwater Iwi Leaders Group supported the

“significant gains” won by the Maori Party, deputy chairman Mark Solomon saying they would “create a new opportunity for iwi and hapu to engage with councils in a more equitable way”. Federated Farmers says it is pleased to see the Government getting on with the job of reforming resource management legislation. The return of the Resource Legislation Amendment Bill to the select committee will be well received by Feds members, says RMA spokesperson Chris Allen. “This process has been long and drawn out, and I’m sure many Kiwis had been thinking this Government wouldn’t be able to get this done.” Allen says Feds will be watching with particular interest to see the detail in the proposed legislation on new provisions for keeping stock out of waterways. “This is a hot topic for us. We are working with councils and our members all over the country on this issue,” Allen said. “Ensuring the provisions are practical, workable and affordable will be a high priority for us.”

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4 NEWS DOLLAR NEEDS TO DROP ALTHOUGH COMMODITY prices have come off their lows, global inflation remains weak, says Reserve Bank governor Graeme Wheeler, as he cut the official cash rate by 25 basis points to 1.75% last Thursday. “Political uncertainty remains heightened and market volatility is elevated,” he says. A decline in the exchange rate is needed, he says. “Weak global conditions and low interest rates relative to New Zealand are keeping upward pressure on the NZ dollar

exchange rate. “The exchange rate remains higher than is sustainable for balanced economic growth and, together with low global inflation, continues to generate negative inflation in the tradables sector.” Recent dairy auctions have been positive, but uncertainty remains on future outcomes. “Numerous uncertainties remain, particularly in respect of the international outlook, and policy may need to adjust accordingly.” – Pam Tipa

TPP looks to have been Trumped THE SHOCK election of Donald Trump as the next president of the US seriously jeopardises the signing into effect of the Tran-Pacific Partnership (TPP) – a deal to free up trade with 12 countries including the US and New Zealand. A Trump presidency could break from the traditional Republican commitment to free trade, imposing protectionist policies to close America’s economic borders. On the campaign trail the new president-elect said he would immediately “renegotiate” the North American Free Trade agreement with Canada and Mexico and cancel the US’s participation in the TPP. The main hope for the TPP’s supporters is that President Barak Obama will use his ‘lame duck’ period to get the deal over the line, but this will now be difficult due to different dynamics at play among lawmakers under a Trump victory. Trump may possibly move to renegotiate some elements of the TPP, but Prime Minister John

PM John Key has conceded hopes for implementing the TPP is all but gone in the wake of Donald Trump’s election.

Key says a renegotiation would not simply give the US more. Key says the 12 other countries involved in TPP would also react by seeking tit-for-tat concessions. However, the difficulty in revisiting the deal that has taken so long to hammer out would make a renegotiation highly unlikely – as the US ambassador to NZ, Mark Gilbert, believes. Trying to renegotiate the TPP, given

individual countries’ calls for further concessions (in NZ’s case improved dairy access), is seen as highly unlikely. Key concedes the hope for the TPP is now all but gone. “It’s now very hard to see TPP progressing in the ‘lame duck’ period,” he said. “You’d have to be a real optimist to believe that.” @rural_news facebook.com/ruralnews

Trade havoc or not? PAM TIPA pamela@ruralnews.co.nz

US PRESIDENT-ELECT Donald Trump has the powers, delegated by Congress, to wreak havoc on international trade, says trade expert Stephen Jacobi. The question is “will he use them?” Jacobi asks. “The impacts and choices for New Zealand under a Trump presidency are unclear at best,” says Jacobi, a

WILSON

former diplomat who is executive director of the NZ International Business Forum and also on the NZ China Council. “In the short term, I find it hard to see a way through for the Trans Pacific Partnership (TPP) in the ‘lame duck’ session,” he says. “Longer term, the issues behind TPP (market access, better trade rules, actions to promote investment and reducing the costs of doing business) will all

need to be addressed.” Going forward, it’s all about policy, people and the president himself, he says. “On policies, what will be the approach to trade agreements and what will be the new normal in the US relationship with China?” Jacobi says it remains to be seen whether Trump really will rip up the North American Free Trade Agreement (NAFTA) between US, Canada and Mexico.

“What about multilateral agreements like the WTO and the Paris Agreement on Climate Change? “On people, who will advise Trump on trade? Will the Republican establishment come back to serve in a Trump administration? “On the president, how will his unpredictable and abrasive nature play into global policy?” @rural_news facebook.com/ruralnews

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RURAL NEWS // NOVEMBER 15, 2016

NEWS 5

Blue Sky turning Chinese too? CHINESE MOVES on the New Zealand meat industry are again noteworthy, with NZ Binxi (Oamaru) Foods making a $25.3 million bid for a 100% takeover of Blue Sky Meats, Invercargill. NZ Binxi (Oamaru) Foods, a subsidiary of China’s Heilongjiang Binxi Cattle Industry Co Ltd, last December lifted to 100% its stake in North Otago meat processor Lean Meats, now called Oamaru Meats. And Shanghai Maling’s purchase of 50% of NZ’s largest meat processor and exporter Silver Fern Farms will take effect next January. Binxi has offered

$2.20 per share for Blue Sky Meats, which trades on the Unlisted stock exchange; this is a 70% premium on Blue Sky’s recent share price of $1.30. It values the company at almost $15 million. Blue Sky shares were placed on a trading halt on November 4. Blue Sky chairman Scott O’Donnell told shareholders in early November that the board had set out to identify a buyer, inviting interested parties to bid. ‘’Binxi… has now determined to proceed with a takeover notice,’’ O’Donnell said. If Binxi’s offer is accepted for 90% of the

shares it may, under the takeovers code, compulsorily buy the outstanding 10%. But the company has retained the right to waive that condition and buy 50.1% of the shares. The takeover will require Overseas Investment Office approval. Blue Sky posted an after-tax loss of nearly $2

million for its most recent trading year, ended March 2016. O’Donnell said Blue Sky’s board had sought independent legal and financial advice on the offer. In a review of Blue Sky in June the founder and then chairman Graham Cooney said the com-

pany’s plant was underutilised. Blue Sky had invested heavily in a new beef plant in Gore in December 2014 which has been underperforming. Its sheep and lamb plant in Invercargill, built in 1897, was not profitable last year. facebook.com/ruralnews

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On top of this, BLNZ reports that sheep numbers will decline still further due to the culling of older ewes and the impact of a major outbreak of facial eczema and drought/dry summer in some regions. This in turn has led to an increase in beef cattle numbers. Dairy cow numbers are expected to decline as farmers cull low producing cows. BLNZ’s chief operating officer Cos Spooner says a big imponderable facing sheep and beef farmers is the exchange rate: variations in this can essentially mean good or bad news. The report puts three scenarios relating to the US$, lamb presenting the middle one in which the NZ$ hits 67 cents: the prediction is a return of $4.85/ kg in 2016-17 – down 3% on last season’s $5.00/kg. On beef, Spooner predicts global beef prices will increase “modestly” this season, but says overall the beef market is very complex and subject to many factors making it hard to predict. At the farmgate, the news is not great, but not depressing. Prices are expected to ease by 2.5% based on a US/NZ$ cross rate of $US0.67. But if the NZ$ held its present level of $US0.70 a drop of 10% could be possible – meaning beef prices around the $4.20/kg mark. Grim news also for wool producers: while production is predicted to remain at the present level, the auction price for the 2016-17 season is expected to fall by 13%, reflecting weaker demand from China and in the construction sector for wool carpets. – More pg 16

Former Blue Sky chair Graham Cooney.

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RURAL NEWS // NOVEMBER 15, 2016

6 NEWS

The challenge of feeding the world Duncan McFarlane wine grower and chief executive of Marlboroughbased Indevin Group joined up with 50 other farmers and agriculturists from around the world at the 2016 Rabobank Global Farmers Master Class; he tells Pam Tipa what he discovered. YOU SPEND all day working in your own industry and by default don’t get other perspectives, McFarlane explains. “Take yourself out of that and get with people from other ag sectors, then you find a lot of common challenges, objectives and opportunity,” he says. “That’s the beauty of joining up with 50 other farmers and agriculturists from around the world – even if you are the only one from viticulture.”

One of those challenges is how to feed 11 billion people on the planet by 2050 – a challenge laid down to McFarlane and the others by the organisers. Or an opportunity may be finding exactly the right technology to take your own operation forward, as McFarlane found during his travels in Australia with the master class. Coming across the drone technology was good timing. “We’ve got some large

opportunities to develop our vineyard footprint, and we want to futureproof those developments,” he says. A group from the University of NSW have done a lot of work on using drone technology in viticulture. “The chat I had with them – that alone was worth the trip because they are right in the space we’ve been talking about,” he told Rural News at the Rabobank Farm2Fork seminar in Sydney.

“We wanted to understand and potentially invest in [that space] to ensure we can do things more efficiently and improve the quality of what we do: less input, better quality output.” Back to the question of feeding the world. McFarlane says the global problem is that areas of productive land are over-supplied with food, while population growth areas don’t have enough productive land. “How do you deal

with that? Do you move the food to the people? Do you help them develop the technology where they are?” he wonders. “The key reason Rabobank put Marlborough wine grower Duncan Macfarlane was the only viticulturist this programme from the 50 other farmers and agriculturists from around the world to together was to take part in the recent Rabobank Global Farmers Master Class. address that challenge – recognising the ones that will have to that population growth industry here; they are a supply food, technology will happen. bit older and have already or ideas and innovation to gone a long way down the “They are a food and ensure that when populaagri-business bank and path and are now realising tion does [grow], the food that some of the develfocused on that sector. If will be available to feed you get leaders from agriopment they did was not the people.” business together from sustainable and they have Sustainability is an around the world, that is to deal with it.” issue the master class has a good place to start to One example was soil brought home to McFarsolve the problem. fertility in Brazil. lane. “There is a lot of “Those businesses are TO PAGE 11

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NEWS 7

We don’t know how lucky we are! PAM TIPA pamelat@ruralnews.co.nz

NEW ZEALAND farmers have infrastructure and resources they take for granted. Just how lucky we are to farm in NZ was brought home to Oamaru dairy, beef and sheep farmers Grant and Ele Ludemann during a visit to Zambia with the Rabobank Global Farmers Master Class. They were among 20 farmers, including six NZers, on the trip. Among their experiences the group solved a common tomato plant problem devastating the crop of a Zambian farming couple they visited. The problem was easily solved by the visitors’ joint knowledge and access to the internet – ‘luxuries’ the hardworking Zambian couple

did not have. “It was a really humbling and sobering experience but I must say the farmers of Zambia are no different from you people out there,” Grant Ludemann told the Rabobank Farm2Fork (F2F) seminar in Sydney this month, attended by at least 50 NZ farmers. “All they want to do is farm for their families, leave the land better than they found it and give their children and families an education. “But we need to appreciate the scale they are coming from – one, two and 3ha farms; to make improvement is very slow for them. “We came back feeling how lucky we are in NZ [compared with] some of the limiting factors people in Zambia have to put up with. In NZ and the western world we

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have a very stable political environment and stable economies; interest rates in Zambia were in the vicinity of 25-40%, and inflation rates 30-40%. “Universal education is not available for everyone there and the infrastructure.... We take for granted roading, continuous electricity supply and piped water. “It was a very sobering and humbling experience.” Ele Ludemann says an enduring memory was visiting a smallholding farming couple who had been able to get a development loan through a Rabobank partner. In the first year they had 1ha and grew four tonnes of maize; last season they had 5ha and they were expecting about 40t. They had increased their 10 cattle to 48,

five goats to 55 and five chickens to 50. “Those numbers seem small, but the increase for them is great,” she says. They were also growing tomatoes, which had been infected by a pest. They knew the name of it, Tuta absoluta, but nobody had been able to do anything about it. “One of our group was from Kenya and said ‘we have that in Kenya and this is what we do’. They were so moved, they were almost in tears that finally they had a solution to this pest devastating their tomato crop. “As soon as we got back to the internet one of our group emailed a relative in America, who came straight back saying ‘this is how you treat the pest’. I Googled… being in NZ this is what you do.

Oamaru farmer Ele Ludemann with Nuradin Osman, managing director Africa and Middle East, AGCO Corporation.

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Outgoing Zespri boss wins high praise PETER BURKE peterb@ruralnews.co.nz

ZESPRI’S CHIEF executive Lain Jager is predicting that by 2025 the company’s revenue will be $4.5 billion. His comments came at the kiwifruit marketer’s annual ‘thank you’ function at Parliament recently, attended by MPs, government officials, and people from Crown Research Institutes and the kiwifruit industry. Jager says Zespri will this year earn at least $2 billion dollars from the industry’s skyrocketing success after the Psa crisis of just a few years ago. He attributes the win over Psa to good science and innovation underpinning the sector, especially its plant breeding programme with Plant and Food Research. “Having the Sungold cultivar in the pipeline meant we had an answer and this enabled us to rebuild our business quickly,” he says. Zespri is delivering on its

Lain Jager and Steven Joyce toast Zespri’s success.

purpose to ensure sustainable wealth for kiwifruit growers and their communities, Jager says. This is happening not only in Bay of Plenty – the main kiwifruit growing region – but also in other parts of the North Island and the top of the South Island. Meanwhile, MP for Bay of Plenty Todd Muller, who hosted

the evening at Parliament, praised Jager’s contribution to the industry. Jager plans to step down from Zespri next year and Muller, a former Zespri executive, describes him as a great chief executive and a high achiever. “The Zespri success story is one not often understated. It embraces a culture of excellence

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and you don’t hear it promoting itself,” Muller said. “It is focused on its core business of selling the best quality kiwifruit to discerning consumers around the world and having a strong community connection. “Lain Jager personifies that. He’s been involved in the industry since 1998 and has created a culture second to none.” Science and Innovation Minister Steven Joyce also praised Jager, saying he will be sorely missed. He also referred to the vital role science and innovation have played in the industry, especially its ability to overcome the Psa crisis. “From the grip of the crisis they got to a solution faster than anyone imagined, due to the long term investment in good science and innovation.” Joyce says Zespri exemplifies a great exporter whose success is built on science. @rural_news facebook.com/ruralnews

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RURAL NEWS // NOVEMBER 15, 2016

10 NEWS

The little co-op that did SUDESH KISSUN sudeshk@ruralnews.co.nz

TATUA CHIEF executive Paul McGilvary will step down on January 31, a satisfied man. McGilvary says his nine-year term as head of the independent processor at Morrinsville has been an enjoyable one; not only has Tatua topped the payout stakes among processors every year, the co-op’s milk supply base has grown from 12 million kgMS to nearly 15.2m kgMS this season. And importantly, milk quality has been maintained; Tatua suppliers have an average somatic cell count of 113,000 against the industry average of 200,000. During McGilvary’s tenure, the company has doubled staff numbers from 180 to 360. A new food production facility was added in 2010-11 and a new specialised powders dryer in 2014-15. A $7 million wastewater treatment facility is now under construction. Tatua also opened two international offices, in Shanghai and the US, to complement its Tatua Japan office. McGilvary says China now accounts

for almost 20% of Tatua’s sales, as does Japan. The US accounts for about 12%. It wasn’t all plain sailing though for McGilvary; in 2014 a blackmailer mixed highly concentrated 1080 poison with baby milk formula and posted packs to dairy co-ops and to Federated Farmers, with a letter demanding the country stop using 1080 or he would release poisoned infant milk powder into the Chinese market and one unspecified market. Those were challenging times for the dairy companies, says McGilvary. “We had to assure our customers that we had processes in place to ensure the integrity of our products.” As part of its response to the 1080 incident, Tatua has spent $1 million on a new security system; it includes a perimeter fence around the factory at Tataunui and controlled entry points throughout the factory. The DIRA regulation review and an end to 50 million litres of milk supplied by Fonterra was also a challenge, but Tatua suppliers grew their milk supply to offset the loss of DIRA milk. McGilvary says the co-op has a great working relationship with other dairy

Outgoing Tatua chief executive says he considers it a privilege to have led the co-operative for nearly nine years.

processors; it trades raw milk with other independent processors Open Country Dairy and Miraka. Under McGilvary’s watch Tatua has grown its specialised added value business –nutritional ingredients like hydrolysates, lactoferrin and phospholipids. It is a key supplier of dairy peptones to global customers; peptones are used in vaccines and probiotics. It is the

only casein and lactalbumin peptone manufacturer fully integrated back to the raw material milk source. Its food service business includes dairy whip catering, cream, sauce and soft serve ice cream. For consumers, it produces whipping cream and cheese sauce. McGilvary says while Tatua has focused on growing its specialised

added value business, its overall performance is the primary reason for its success. “As a cooperative Tatua focuses hard on wringing the highest performance possible from its capital investments and it has retained money from payouts to ensure it maintains a strong balance sheet to time sales and capture opportunities. “Customers, farmer suppliers and staff are the heart of Tatua and each of these groups is critical to the company’s performance. I am proud of the relationships we have built and I am sure these will continue to be a strong focus after I leave.” McGilvary has no immediate plans for the future. He will continue as a director of WEL Networks where he has served for seven years and will look at other opportunities as they arise. “I have loved every minute of working at Tatua. I consider it a privilege to have led an iconic New Zealand company for nine years. “All companies need a change at the top periodically to maintain the dynamism necessary for success to continue.”

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RURAL NEWS // NOVEMBER 15, 2016

NEWS 11

Westland dairy co-op struggling PETER BURKE peterb@ruralnews.co.nz

PROBLEMS IN the Chinese market and delays in commissioning its new nutritional plant are being blamed by Westland Milk Products for some of its recent financial woes. The company incurred a $14.5 million net loss after tax for the financial year ended March 31, 2016. Revenue fell by $51m to $588m, attributed to the weakness of the international dairy market and the continued global oversupply of milk – mainly from Europe. Outgoing chairman Matt O’Regan says the problems were exacerbated by the strong NZ$ against the US$. The move into higher value added products required new plant and the returns have not been as good as anticipated. Delays in commissioning the nutritional plant, and the changing rules in China for nutritional products made it difficult for Westland Milk to perform to its expectations, O’Regan says. General market uncertainty is also a problem. “There was a lot more competition from milk out of Europe so the nutri-

tional one has been slow; the same with UHT. UHT from Europe especially has filled the gap we were looking to have a share of with our premium product in China and we are currently working on new markets and options for our UHT. “Overall, UHT has been disappointing and there is work to be done there to build the market so we can get the returns we need to benefit from our UHT plant.” Westland has an office in China and while the results there were disappointing, it would have been worse had they not had a presence there, he says. “China has always been a difficult market and it is important to remember that 20% of WMP’s products go there. They want premium quality imported milk, be that nutritional or different types of UHT, and there is a premium there that is not in the rest of the world. “While the new regulations have put a dampener on the market, the reality is more babies will be born there and it is a growing market for imported infant formula.” O’Regan says despite the present downturn he’s confident that with qual-

ity products and good customer relations WMP can do reasonably well there. Westland cannot compete by relying on commodity returns from its milk, O’Regan says. And

Westland Milk Products outgoing chair Matt O’Regan.

the co-op remains confident in its strategy of recent years, underpinned by UHT and nutritional product processing capability built during the last year.

CHALLENGE OF FEEDING THE WORLD FROM PAGE 6

“Obviously they have some extremely fertile areas but other areas are not naturally fertile so they have put a lot of lime and other products... but they are getting more and more issues in soil fertility.” Another example is flood irrigation: some industries using flood irrigation have areas which have silted up. “The New Zealand wine industry is fairly young so it is a reminder we shouldn’t leave behind a mess for future generations to clean up.” Other NZ participants in the master class were Derek Daniell, who with wife Chris farms two hill country properties near Masterton; Colin Glass, chief executive of Dairy Holdings Ltd; and Trish Jones of the P. Jones Family Trust, a financial administrator for their kiwifruit and dairy businesses. The master class finished last week after five days looking at various operations in the South Island.

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RURAL NEWS // NOVEMBER 15, 2016

12 NEWS Former critic wins Fonterra board nomination SUDESH KISSUN sudeshk@ruralnews.co.nz

BAY OF Plenty farmer and accountant Donna Smit has been nominated by the Fonterra board for one of two director vacancies. The board has also nominated director Michael Spaans, retiring by rotation. Both candidates were recommended by the independent selection panel. The process for their nomination was supported by the Shareholders Council in

The self-nomination accordance with the indeprocess, where farmers can pendent nomination prostand as a candidate for cess. the board with the support As a result of the recent of 35 shareholders, is now changes to Fonterra’s govopen. Nominations close ernance and representation, on Thursday, November 10. approved by shareholder The full list of candidates vote at a special meeting in for the Fonterra board elecOctober, the 2016 directors’ Donna Smit tion, including the indeelection process includes two nomination options – the inde- pendent nomination process candidates pendent nomination process and the and any self-nominated candidates, will be announced by November 16. self-nomination process.

Voting packs containing candidate profiles will be mailed to eligible shareholders on November 21. Shareholders can vote by internet, fax or post, using the first-past-thepost majority system. Voting closes at 10.30am on Tuesday, December 6 and the results will be announced later that day. The independent selection panel comprises chairman Dame Alison Paterson, John Spencer (board appointee) and Sir John Anderson (Shareholders

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Council appointee). The council says the panel played a critical role in Fonterra’s new farmer directors’ election process; it provided farmers with independent opinion and assessment of farmer director candidates. “Despite the independent nomination process being undertaken in a shortened time this year the panel notes in its report to the nominations committee that the board is satisfied with the process.”

Chris Dennison

FARMLANDS DETRACTOR WINS SEAT NORTH OTAGO farmer Chris Dennison has been elected to the Farmlands board, ousting long-serving director and fellow North Otago farmer John Foley. The result of the South Island director election was announced at the co-op’s annual meeting in Christchurch earlier this month. Dennison last month told Rural News the time for excuses about the rural co-operative’s performance was over. He has criticised the co-op’s performance in incurring a $9 million loss, saying it appeared to have “lost its way”. Dennison and his wife Kay run a 400ha arable farm and an adjacent dairy farm milking 800 cows on the lower Waitaki Plains. He is also a director of TracMap and Network Waitaki, former chairman of the Lower Waitaki Irrigation Company and former deputy chairman of Ravensdown. Farmlands chairman Lachie Johnstone says Dennison has had great experience in farming and governance and the co-op would benefit from that experience. In campaigning for a seat on the Farmlands board, Dennison told Rural News he was sick of hearing that the struggling rural economy was the reason for the poor results. “Farmlands is operating in the same market as PGG Wrightson and Ravensdown, yet both these co-ops are performing well,” he said. “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 co-op performance as well.” Dennison says Farmlands’ scale of operation and shareholder base of 60,000 should give it a substantial competitive advantage over its competitors, but says it has not leveraged this position to gain prominence in the market. Farmlands posted a $9m loss for the 2016 year. In its annual report chairman Lachie Johnstone and chief executive Peter Reidie blame the loss on the tough year in farming.

RURAL NEWS // NOVEMBER 15, 2016

NEWS 13 Highland cattle breeder Harry PrescottBallagh (left), with Reserve Champion Dundee of Berwick, Neil Hodgson with Breed Champion and Supreme of Breed winner Beal of Abberley and visiting judge Jason Sallier of Australia.

Winners are grinners at Canty show NIGEL MALTHUS

SHOW STALWART Harry Prescott-Ballagh started successfully at the Canterbury A&P Show, his 16-month-old Beal of Abberley bull winning the Champion and Supreme of Breed ribbons on the first day. His own former champion, Dundee of Berwick, was awarded the Reserve Champion ribbon by visiting judge Jason Sallier, of Australia. Prescott-Ballagh, from the Abberley Stud at Waimate, has been showing his Highland cattle for about 30 years, and showed horses for 20 years before that. Now aged 61, he says he has attended the Canterbury

Show for 60 years, missing only one show in a year he was recovering from surgery. This year he did not let an injured hand stop him – the result of an accident while de-horning one of his animals. Highlands are known for their spectacular horns but de-horning is a recentlyintroduced requirement for animals sent to slaughter. A staunch salesman for his beef breed, PrescottBallagh says it breaks down to a 70:30% meatto-bone ratio, with slightly marbled flesh. “The Queen eats it, so if it’s good enough for the Queen, it’s good enough for us,” he says. The 154th Canterbury Medium impact AS/NZS Show opened to a warm approved

sunny day after heavy early rain, the first day traditionally the preserve of Christchurch children visiting in school and preschool groups. Popular with the groups of uniformed youngsters was the Mike Greer Homes City Farmyard, where children could get perhaps their first close contact with farm livestock. Georgia Henderson, of Christchurch, brought her son, Hunter (15 months), for his first experience of a live lamb. Henderson says she was a frequent visitor to the show in past years and rates this show “as good as ever”. Also attracting big crowds was the children’s shearing and shearing demonstrations, where

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RURAL NEWS // NOVEMBER 15, 2016

14 NEWS

NZ ripped off along value chain? New Zealand gets only a fraction of the value of its agri-food products and drastic changes are needed to improve this situation. That’s the key message from KPMG’s latest Agribusiness Agenda, which looks at global consumer trends and what NZ needs to do for maximum return from these exports. Peter Burke reports. NEW ZEALAND’S $37 billion of agri-food exports in 2015 generated at retail a massive $250 billion -NZ collecting a mere 15% share of that value, says KPMG’s head of global agri Ian Proudfoot. “The message out of this to NZ is that the products we grow are hugely valuable, but we are not getting a greater share of the value because we have chosen over time not to participate in certain parts of the supply or value chain where people have been able to create more value from our products,” Proudfoot

told Rural News. “We need to recognise that our relationships with our consumers and our position on the value chain will enable us to capture transformational amounts of new revenue from our products, but this will only happen if we invest money to make that happen.” Proudfoot says farming is changing and will have to change more but there is a risk NZ will be beset by complacency. He points to greater use of technology including robotics. “What has been suc-

cessful in the past will not guarantee success in the future. In fact, it may not even give us a ticket to play in the most highvalue markets. “So we need to think carefully and smartly about how we move forward.” The report looks at a wide range of consumer trends, noting, for example, that consumers who pay a premium for their food want extras, such as the story behind the food. Proudfoot says NZ has worked on connecting the farmers and growers with the people who

eat their food, already a reality because of technology. Discerning customers are looking for artisan and craft options, for example craft beers. Historically NZ has always produced good food, but in producing large amounts of commodities we have effectively dumbed-down the value. NZ may in future have to walk away from some markets to gain higher-value ones perhaps even produce less of some things. If NZ produced a lot less milk it would have a lot more money because

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KPMG’s Ian Proudfoot.

of many more options for the use of that milk, he claims.

“We are a small part of the global food system and everything we do

is artisan, but at the moment we don’t tell an artisan story.”

LIFE, HEALTH AND COCKROACHES NEW ZEALAND must watch closely the trend towards meeting the changing lifestyles of consumers, in particular commuters, the KPMG report says. In major cities, commuting can take up to four hours a day and often breakfast and dinner are eaten in transit or away from home, Ian Proudfoot says. But the fact that people are eating ‘convenience’ food doesn’t mean it has to be poor quality food. People want convenience food that is great tasting, nutritious and healthy, he says. “So much comes back to health: we need to think of the food sector as being an integral part of our healthcare system and that is quite a challenge -to produce great food with clear health properties.” Proudfoot points to the work Zespri has done to get green kiwifruit internationally recognised as having proven

health benefits. It’s the only product we have that meets such standards, “because Zespri 20 years ago... worked out that the brand, science and story were key drivers for creating long-term value for growers. Every sector needs to that, not just kiwifruit.” Proudfoot believes the old market segments of male and female, young and old, no longer apply and food has to be tailored to the needs of different niche groups and individuals. Food products such as kiwifruit, which can prevent health problems, will be sought after. The 75-page report canvasses many agri-food related issues associated with changing lifestyles, new technologies and geo-political events. It raises the prospect of tailored, genetically guided nutrition and even offers an insight into future foods such as cockroach yoghurt and cricket flour baking mix.

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RURAL NEWS // NOVEMBER 15, 2016

NEWS 15

Waikato farmers face ‘whopping’ bills FARMERS IN Waikato face bills of up to $750,000 to comply with a proposed plan to improve fresh water quality. A report – the Farm Plan Project -- by Federated Farmers, Fonterra, DairyNZ, the Foundation for Arable Research and Waikato Regional Council says some high country farmers face whopping bills for fencing and water reticulation. The Healthy Rivers Plan proposed by the council seeks to improve water quality in the Waipa and Waikato rivers by managing the nitrogen, phosphorus, sediment and bacteria entering waterways. Submissions on the proposed plan close at 5pm on March 8, 2017. Feds wants the plan substantially revised. Waikato president Chris Lewis says the Farm Plan Project was intended as a snapshot of where the Healthy Rivers Plan’s impact would be greatest. The project did case studies of 13 mainly drystock farms; Fonterra did a similar exercise on 11 of its supplier farms. “It has been a very useful exercise,” Lewis says. “This report has given us practical experi-

Waikato Fed Farmers president Chris Lewis.

ence of how the proposed plan would roll out. Now that we know what the issues are, we will be making strong submissions to council, and calling for substantial revision of parts of the policy.” Lewis says the farms selected for Feds’ study represented a variety of land uses, farm types, catchments and geographic areas. Feds’ overall concern was that some farmers, even if they wanted to comply, wouldn’t be able to afford it. In particular there are worries that drystock farms in hill country would find it too costly or difficult to fence all waterways. Report results suggest the average cost of preparing a farm environment plan would be $4692, and the cost to implement the Healthy Rivers/Wai Ora plan ranged from $0 to $785,687. For example, a drystock farm on steep country allowed for $479,138 in fencing costs to install an 8-wire post-and-batten fence over 21.8km. While Schedule 1 (development of farm environment plans) provides for other options where fencing land over 25 degrees is not practical, Schedule C (requirements for stock exclusion) does not. In this example, under the proposed plan the landowner would need to provide water for stock that now drink from waterways, at an estimated cost of $173,000. Other mitigation included three wire fencing, waterway crossings and planting for erosion control, taking the total cost to $306,549. Depending on the plan’s interpretation the costs to this farm could be $306,549 to $785,687. Regional

council chief executive Vaughan Payne says the project identified discrepancies between the schedules in the proposed plan; these are open to interpretation, leading to widely

varying onfarm costs. “This type of information is exactly why we are testing the implementation of Healthy Rivers/Wai Ora onfarm. This information

is invaluable for the submission process and will help with the council’s implementation planning, once the new rules take effect,” says Payne.

Waikato Regional Council chief executive Vaughn Payne.

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16 NEWS

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STICK TO your knitting and finetune what you do, advises Beef + Lamb NZ chairman James Parsons, for farmers to get through the next year, with forecasts down for lamb, beef and wool. “My personal perspective on this is it’s easy to get down about a certain product mix we are producing, in this case sheep,” Parsons told Rural News. “But I think farmers should be cautious about suddenly changing stock policies in any large fashion. “In a few years lamb will be up and beef will be down. Things swing in roundabouts – you probably just need to stick to your knitting and fine-tune what you do. That’s the approach I will take in my own business.” Parsons says forecasts “are just that, they are forecasts and they are notorious for being wrong”. (see sidebar) “I’d like to think it won’t get any

worse than we are predicting,” he says. Often with notso-good predictions, things turn out a bit better, “but it is prudent for farmers to budget for a conservative income this year and let’s hope we come in a lot better than that”. Currency is the biggest factor for sheepmeat, Parsons says. The NZ dollar (NZ$) has jumped significantly against the English pound (GBP) and the NZ$ is also a bit stronger against the euro. UK accounts for about 25% of the lamb particularly around Christmas and Easter and it is a big component of the leg market. “So when the UK is back it makes things tougher,” he says. He understands the UK retailers are paying more in GBP for

FORECASTS DOWN BEEF + Lamb NZ forecasts average lamb prices will be down 3% this year to $4.85/kg, or $89 a head, for 2016-17. Prices have declined gradually since 2013-14 when lamb was reaching $5.48/kg and $100/head. Mutton is stronger, predicted to be up 13%/kg to $2.58/kg and up to $65/head. The beef forecast is also down, with a 9% drop for steer and heifer at $4.84/kg, and bull is also down 9% at $4.74/kg and cow down 4% at $3.78/kg. Although this is down against the previous two years prices, by comparison in 2013-14 steer and heifer were $4.09/kg, bull $3.92/ kg and cow $2.78/kg. Fine wool prices are forecast to be up 1% to $10.05/kg greasy, but medium is down 2% to $7.23/kg and strong down 16% to $43.72/kg. The exchange rate forecast has the NZ$ up 13% against the British pound, down 2% against the euro and 1% against the US$.

“In a few years lamb will be up and beef will be down. Things swing in roundabouts – you probably just need to stick to your knitting and fine-tune what you do. That’s the approach I will take in my own business.” our lamb than last year, “but we don’t see that back in NZ because it is not enough to counteract the strong NZ$”. Marks and Spencer have decided to go with Scottish lamb for a small component of their chilled lamb in Scottish supermarkets. “We are seeing more of a trend towards retailers supporting British farms. But I think there is a bit more in it too; it is a convenient one to run right now when the pound is so weak. “They can say they are supporting British farmers – that is the way they pitch it – but actually it is cheaper to buy from British farmers.” He says the Irish are also doing it tough with the euro up against the GBP: they export 80% of their production and most goes to the UK. It is also affecting their beef exports to the UK. A positive in the BLNZ forecasts is mutton up 13% driven by China picking up. China was strong in the ‘boom’ years but has slowed in the last couple of years. “Some of that is working through now and we are starting to see more interest from China, so that’s positive.”

Parsons adds that with beef a few other countries have started ramping up production. “We’ve seen a lot more out of the US. It is not like the US is awash with beef from Brazil but there’s a bit more beef coming from other countries. “On the positive side, Australia’s production is down significantly as they have had rains and started to rebuild. We saw a lot of drought-induced slaughter of animals and liquidation of the beef herd during the last couple of years of drought but that has all dried up big-time now. “Beef is back a wee bit, so that’ll soften things a little. Obviously wool is not quite as buoyant as 12 months ago. “That doesn’t get talked about as much, but it is another reasonable driver of farm income for sheep farmers.” Parsons says the recently revised strategy for BLNZ is marketing initiatives to target new markets as a long term proposition. “It will be a few years before we start seeing really good fruit from it, but I think within 12 months we will know if we are on the right track.”

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RURAL NEWS // NOVEMBER 15, 2016

NEWS 17

New craze or a passing promotion? PETER BURKE peterb@ruralnews.co.nz

PKE-FREE MILK is the latest product in line for production by Auckland boutique dairy company Lewis Road Creamery. Founder Peter Cullinane told Rural News he is talking to Landcorp to obtain the PKE-free milk, seeing it as a natural fit with Landcorp’s highvalue Pamu brand. Landcorp chief executive Steven Carden said in August the company would cease feeding PKE to its 78,000 cows, a move that would support its Pamu brand which is made by feeding animals grass. PKE use is not

consistent with Pamu’s positioning as a highvalue brand, Carden says. Cullinane says when he heard Landcorp was looking at going PKEfree he contacted Carden and since April the two companies have been working out the details of a deal. Cullinane says Lewis Road’s range of organic milk is naturally PKE-free, but it likes all its milk and dairy products to be PKEfree. He describes Landcorp’s decision to go PKE-free as fabulous and courageous and he wishes Fonterra and others would take a similar stance.

He says PKE arrived on the dairy scene only about 20 years ago and the dairy industry had survived well before then. The clamour to produce more commodity products has pushed New Zealand to being a massive user of PKE and Cullinane sees this contradicting how NZ promotes itself -- as a clean green country. “I find it amazing that NZ’s great strength is that it could be seen as grassfed, but as soon as you introduce just a handful of PKE into the system that claim vanishes,” Cullinane told Rural News. “It’s incredibly short-sighted of Fonterra or anyone else

to encourage or allow PKE into the system. “We came up against a roadblock when talking to Greenpeace because it had been talking to Fonterra for the last eight

years and thought a partial ban on PKE was better than nothing. I don’t think the country is better off, because a little PKE is as bad as a lot of PKE,” he says.

Cullinane says NZ is obsessed with commodities and hasn’t moved on much from the days when the first mutton was shipped to the UK in 1882. NZ can’t

seem to wean itself off commodities, he says. Lewis Road Creamery is now looking to export. The UK, China and Australia are target markets.

Lewis Road Creamery’s Peter Cullinane.

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RURAL NEWS // NOVEMBER 15, 2016

18 NEWS

Dairy sector attracts overseas investors PETER BURKE peterb@ruralnews.co.nz

DAIRY AND milk processing are the New Zealand destinations for overseas investors’ wealth --

not sheep and beef, says a report on cash inflows of the last two years. Dairy attracted $1.3 billion -- 28% of the $3.4b invested in agri -- whereas sheep and beef ventures

attracted a mere $300 million (9%). China was the single-biggest overseas investor in NZ dairy and sheep and beef. The report, prepared by KPMG with the Over-

seas Investment Office, shows that between January 2013 and December 2015 about $3.4b was invested in NZ by overseas companies and individuals in a range of

agribusiness ventures. This accounted for 13% of the $26.3 billion invested in various NZ sectors including real estate, energy and financials. China was the larg-

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KPMG’s Ian Proudfoot believes NZ agribusiness needs partners well connected and if a Chinese partner can do this, that is positive.

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est investor in dairy but France (13%) and the USA (9%) were also in the mix. In sheep and beef, investment from China/Hong Kong was the highest (15%), then Japan (13%) and the US (10%). KPMG’s global head of agri, Ian Proudfoot, says while China is a dominant investor in dairy, the US, Canada and Europe are also big in other agrirelated ventures. “China is certainly the biggest investor in dairy now, but I’m not sure this will be case in the future,” he says. “What NZ wants is a balanced portfolio of investors, in particular those who want to drive and create value from their investments here.” Proudfoot refers to concerns in NZ about Chinese investment, the influence of the Chinese state on investment policy and that country’s focus on food security. “Through Yili they have invested in the Oceania Dairy business in the South Island, but that asset would not have been built without Chinese investment,” he told Rural News. “Without the Yashili investments at Pokeno that would not have happened. They are creating jobs and opportunities for us to produce into higher value product streams.” Proudfoot believes NZ needs partners well connected to markets and says if a Chinese partner can do this, that is positive. He also notes concerns expressed about Chinese-owned companies in NZ putting pressure on local ones in the Chinese market. “I don’t see that as a problem although the nature of the Chinese economy is about con-

nection and relationship. So if you have good relationships and strong connections, that facilitates doing business in the Chinese market. “So maybe the Chinese-owned companies in NZ have an easier track, but I don’t see them making it difficult for others.” Proudfoot refers to interesting statistics on the amount of liquid milk going into China: Germany is sending 4L for every 1L NZ sends. “What the Chinese are looking for is high-quality dairy products that meet their needs and I think they are going to look to NZ to increase the delivery of this product.” Sheep and beef has potential and needs overseas investment, Proudfoot says. “Some farmers have been sitting on large amounts of capital in their land and are not highly geared. “From an investment perspective, they are relatively ‘lazy businesses’ and potentially that means there is opportunity to gear these businesses up and invest more in technology.” However, Proudfoot concedes getting technology into the red meat sector is complex, requiring care in assessing risks and benefits to ensure investments are fit for purpose. Surprisingly the report says most freehold land being bought by overseas investors is in Canterbury, Otago and Southland – 49% of the land purchased. Proudfoot says the positive story from the research is that offshore entities see NZ market as a place worth investing in.

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RURAL NEWS // NOVEMBER 15, 2016

20 MARKETS & TRENDS MARKET SNAPSHOT Me at

BEEF MARKET TRENDS

No rth Is lan d

S o u th Is lan d

C h an g e c /kg

L as t We e k

C h an g e c /kg

L as t We e k

L amb - PM 16.0kg

-1 0

5 .6 3

-1 0

5 .4 8

S te e r - P2 300kg

-5

5 .3 0

-1 0

5 .2 5

B u ll - M2 300kg

-5

5 .0 5

-1 0

4 .7 0

c /kgCWT

Ve n is o n - AP 60kg

-3 0

8 .2 0

-2 0

8 .5 0

c/kgCWT NI

Last Year

n/c

5.35

5.35

5.65

M 2 B ull - 300kg

n/c

5.10

5.10

5.45

P 2 Co w - 230kg

n/c

3.90

3.90

4.30

M Co w - 200kg

n/c

3.90

3.90

4.30

Lo cal Trade - 230kg

n/c

5.35

5.35

5.65

n/c

5.35

5.35

5.65

M 2 B ull - 300kg

n/c

4.80

4.80

5.10

P 2 Co w - 230kg

n/c

3.85

3.85

3.90

M Co w - 200kg

n/c

3.85

3.85

3.85

Lo cal Trade - 230kg

n/c

5.40

5.40

5.70

P 2 Steer - 300kg

North N ort hIsland IslandWeekly Weekly Cattle Cattle Kill Kill

Last Year

This Year

5-A ug

5-O ct

5-Dec

5-Feb

South Island 16kg M M Lamb lamb price S outh Island 16.0kg Price

7.0

$5 .5

4.0 $4 .5 5-A ug

5yr Ave

5-O ct

Last Year

This Year

5-Dec

5-Feb

31-Jul 7-Aug 14-Aug 21-Aug 28-Aug 4-Sep 11-Sep 18-Sep 25-Sep 9-Oct 16-Oct 23-Oct 30-Oct 6-Nov 13-Nov 20-Nov 27-Nov 4-Dec 11-Dec 18-Dec 25-Dec 1-Jan 8-Jan 15-Jan

5yr Ave

Last Ye ar

This Ye ar

6.5

Last Year

10-Sep 10-Oct 4-Sep

This Year

10-Nov 4-Nov

10-Dec 4-Jan

South Island Weekly Cattle Kill

S outh Island Weekly Cattle Kill

SouthIsland Island 300kg 300kg steer S outh Steerprice Price

6.5 $6 .0

5yr Ave

Last Y ear

4-Sep 10-Sep 5yr Ave

4-Jan 10-Oct 4-Nov10-Nov Last Ye ar This Ye ar

5yr Ave

5-O ct 5yr Ave

Last Year

This Year

5-Dec

5-Feb

31 -Jul 7-Aug 14 -Aug 21 -Aug 28 -Aug 4-Sep 11 -Sep 18 -Sep 25 -Sep 9-Oc 16t-O 23ct -O 30ct -O 6-Nov ct13 -No 20 -No 27 v -No v4-Dec 11 v -Dec 18 -Dec 25 -Dec 1-Jan 8-Jan 15 -Jan

Last Ye ar

This Ye ar

2 Wks A go

3 Wks A go

Last Year

5yr A ve

+3

213

210

207

204

NZc/kg

-9

640

649

688

624

Export indicator - US 95CL D edemand mand Indicator - US 95CL Beefbeef

Last Year This Year 150 $1.508-A ug 8-O ct 8-Dec 8-Feb 31-Jul 7-Aug 14-Aug 21-Aug 28-Aug 4-Sep 11-Sep 18-Sep 25-Sep 9-Oct 16-Oct 23-Oct 30-Oct 6-Nov 13-Nov 20-Nov 27-Nov 4-Dec 11-Dec 18-Dec 25-Dec 1-Jan 8-Jan 15-Jan 5yr ave Last Ye ar This Ye ar

Change

2Wks A go

$8 .5

% Returned NI

+3

81.3

78.5

79.6

77.5

8.5 $8 .0

% Returned SI

+2

76.6

74.7

76.7

70.8

$/kg

9.5 $9 .0

$7 .5 5yr Ave Last Year

$6 .5

This Year

6.5 $6 .0

7-Aug 14 -Aug 21 -Aug 28 -Aug 4-Sep 11 -Sep 18 -Sep 25 9-Oc 16t-Oct 23 -Oct 30 -Oct 6-Nov 13 -No 20 -No 27 v -No v4-Dec 11 v -Dec 18 -Dec 25 -Dec 1-Jan 8-Jan 15 -Jan 5-A31 ug-Jul 5-O ct-Sep 5-Dec 5-Feb

South Island60kg 60kgStag stag Price price S outh Island

$9 9.5 .5 $9 .0

$8 8.5 .5

95 90% 85% 80% 75% 75 70% 65% 60% 55 31-Jul 5-A ug

% of export returns

7.5 $7 .0

3 Wks A go

Last Year

5yr A ve

P rocu rement Indicator Procurement Indicator -- North North I.Island

Last Year This Year

31-Aug 5-O 30-Sep ct

31-Oct 30-Nov 5-Dec

31-Dec 5-Feb

5yr Ave Last Year

$7 .0

6.5 $6 .5 5-A ug

5-O ct 5yr Ave

5-Dec Last Ye ar

This Year

5-Feb

31 -Jul 7-Aug 14 -Aug 21 -Aug 28 -Aug 4-Sep 11 -Sep 18 -Sep 25 -Sep 9-Oc 16t-O 23ct -O 30ct -O 6-Nov ct13 -No 20 -No 27 v -No v4-Dec 11 v -Dec 18 -Dec 25 -Dec 1-Jan 8-Jan 15 -Jan

This Ye ar

90 P rocu rement Indicator - South I. 85% 80% 75% 70 70% 65% Last Year 60% This Year 50 5-A ug 5-O ct 5-Dec 5-Feb 55% 31-Jul 7-Aug 14-Aug 21-Aug 28-Aug 4-Sep 11-Sep 18-Sep 25-Sep 9-Oct 16-Oct 23-Oct 30-Oct 6-Nov 13-Nov 20-Nov 27-Nov 4-Dec 11-Dec 18-Dec 25-Dec 1-Jan 8-Jan 5yr ave Last Ye ar This Ye ar

% of export returns

$/kg

$7 7.5 .5

5.58

5.73

P X - 19.0kg

- 10

5.48

5.58

5.73

P H - 22.0kg

- 10

5.48

5.58

5.73

n/c

2.75

2.75

2.90

M X1- 21kg

North eekly lamb N ort hIsland Islandw Weekly Lambkill Kill

200 5yr Ave

k 0 10 Aug 4 Ju l

Last Y ear

10 Sep 4 Sep

This Year

10 Oct 4 Nov

10 Nov

S outh Island Weekly Lamb Kill

10 Sep

10 Oct

4 Sep

5yr Ave

4 Nov Last Ye ar

10 Nov

4 Ja n This Ye ar

Last Year

5yr A ve

UK Leg p/kg

+5

435

430

330

403

NZc/kg

+4

739

736

758

823

Export demand indicator - UK CKT leg

450 400 350

8 Oct

8 Dec

8 Fe b

Procurement Indicator Change

2Wks A go

3 Wks A go

Last Year

5yr A ve

% Returned NI

- 3 .0

70.1

73.1

71.3

77.0

% Returned SI

- 1.8

67.1

68.9

67.3

74.0

85 80%

Procurement P rocu rementindicator Indicator-- North North Island I.

75 70%

65 60%

85 80%

Last Year

11-Sep

11-Oct 5-O ct

This Year

11-Nov 11-Dec 5-Dec

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Procurement indicator - South Island P rocu rement Indicator - South I.

75 70% 65 60%

50% 55 11-Aug 5-A ug

Last Y ear

This Year

11-Sep 5-O 11-Oct 11-Nov 11-Jan ct 5-Dec11-Dec 5-Feb 5yr ave Last Ye ar This Ye ar

Venison Prices Change

Last Week

2 Wks A go

Last Year

5yr A ve

NI Stag - 60kg

-30

8.20

8.50

8.15

7.80

SI Stag - 60kg

-20

8.50

8.70

8.15

8.15

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

EASY WATER

4 Ja n

South Island w eekly lamb kill

200

50% 55 11-Aug 5-A ug

Procurement Indicator - South Island

$8 .0

5.48

300 8 Aug

Procurement Indicator

Island60kg 60kg Sstag NoNorth rth Island tag price Price

- 10

300

% of export return

3.5 $4 .0 5-A ug

5.73

P M - 16.0kg

2 Wks A go

% of export returns

$4 .5

5.58

Last Week

USc/lb

4.5

5.48

Change

200 $2.00

$5 .0

- 10

Export Market Demand

250 $2.50

$5 .5 5.5

3.20

YM - 13.5kg

This Year

95CL USc/lb

300 $3.00

2.90

400 250k

UKp/kg

This Year

2.90

4 Ju l

$4 .5 Last Year

n/c

k 100Aug

Change 5yr Ave

5.96

M X1 - 21kg

100 50k

4.5

7-Aug 14 -Aug 21 -Aug 28 -Aug 4-Sep 11 -Sep 18 -Sep 25ct-Sep 9-Oc 16t-O 23ct -O 30ct -O 6-Nov ct13 -No 20 -No 27 v -No v4-Dec 11 v -Dec 18 -Dec 25 -Dec 1-Jan 8-Jan 15 -Jan 5-A31 ug-Jul 5-O 5-Dec 5-Feb

5.95

5.76

100k

Export Market Demand

3.5 $4 .0

5.75

5.66

150k

$5 .5 5.5 $5 .0

5.65

200k 300

10k 10

k 04-Jul 10-Aug

$6 .0

- 10 -30

M utto n

5k

North Island 300kg bull price No rth Island 300kg Bull Price

P X - 19.0kg P H - 22.0kg

100 50k

5yr Ave

Thousand head

5.0

5.93

100k

20 15k

$5 .0

5.91

5.73

150k

k 0 10-Aug 4-Jul

$6 .0 6.0

5.71

5.63

250k 400

30k 40 20k 10k20

$6 .5

5.61

- 10

M utto n

Thousand head

5yr Ave

$4.54.0 31-Jul 7-Aug 14-Aug 21-Aug 28-Aug 4-Sep 11-Sep 18-Sep 25-Sep 9-Oct 16-Oct 23-Oct 30-Oct 6-Nov 13-Nov 20-Nov 27-Nov 4-Dec 11-Dec 18-Dec 25-Dec 1-Jan 8-Jan 15-Jan

Last Year

- 10

YM - 13.5kg P M - 16.0kg

SI Lamb

2 Wks A go

200k

Thousand head

$5.0

NI Lamb

Last Week

Slaughter

40k60

5.0

Change

c/kgCWT

Thousand head

$/kg

$5.5

$/kg

2 Wks A go

Slaughter

$6.06.0

$/kg

Change

Last Week

P 2 Steer - 300kg

SI

$6.5

$/kg

LAMB PRICES

BEEF PRICES

Island 16kgMMLamb lamb price No rthNorth Island 16.0kg Price

7.0

LAMB MARKET TRENDS

EASY HANDLING

RURAL NEWS // NOVEMBER 15, 2016

MARKETS & TRENDS 21 PRICE WATCH

INTERNATIONAL BEEF: There was a brief lift in the US imported beef prices through late October. Some buyers which had stayed out of the market found themselves short on product. However, these buyers have since bought enough to cover their short-term needs, reversing the upwards trend. Large volumes of both

SHEEP: The chilled Christmas kill is

now over. Schedules have fallen as expected, and will continue to fall for quite some time now. The number of old season lambs coming out to slaughter is slowing, and new season number gradually increasing. The new season lamb kill is unlikely to be as strong as last year in the lead up to Christmas. There’s little pressure to offload in regards to feed levels, while the anticipated drop-off in slaughter prices will see more kill later at heavier weights later in the season. Store trading is in a hollow for the moment. Old season lambs are finished for the year, while new season lambs just aren’t coming out in their usual numbers. Prices have varied from sale to sale, but have all been much stronger than usual relative to schedule prices.

WOOL PRICE WATCH Indicators in NZc/kg

Overseas Wool Price Indicators

Change

03-Nov

20-Oct

Last Year

-10

446

456

574

Coarse Xbred

Coarse Xbred

Indicators in USc/kg

03-Nov

20-Oct

Last Year

-1

327

328

380

Change

Fine Xbred

-12

454

466

601

Fine Xbred

-3

333

335

398

Lamb

n/c

517

517

707

Lamb

+7

379

372

468

Mid Micron

n/c

787

787

891

Mid Micron

+10

577

566

590

Wool indicator trends Wool Indicator Trends

850800

CXI

750

FXI

LI

650600 550 450400 30-Oct Dec 30-Jan Oct Feb

CXI

650 650

Wool indicator trends (US$)

550

USc/kg

chicken and pork are still causing demand issues at the end-user level, and recent inventory data released indicates this situation is unlikely to improve in the near future. Unlike the US, Asian markets are performing well. Low Australian beef exports have created a gap which NZ product has been able to fill, ensuring solid returns from these destinations.

Coarse Xbred indicator Coarse Xbred Indicator Last Year

600

This Year

550

450

500

5yr ave

Feb 4-Oct

Apr

Last Year

Jun 4-Dec

350 30-Jan CXI

Aug 4-Feb This Year

30-Apr FXI

31-Jul LI

31-Oct

Coarse Xbred indicator (US$)

450

550

450 350 Oct 4-Aug Dec

450

250 30-Oct

30-Apr 31-Jul Aug 31-Oct Apr Jun FXI LI

USc/kg

A little more competitive pressure has emerged for slaughter cattle. Many processing plants, particularly in the North Island, are operating at full capacity, but they are struggling to fill them. Bulls throughout the North Island are well behind on their usual weights, and kill rates for these are set to stay soft until late November. Schedules are expected to dip sharply once significant numbers come on stream. Demand for store cattle is firm, helped by an abundance of grass and the soft outlook for lamb. Schedules have put a cap on what two-year cattle can make, but there’s no stopping bidding on good quality one-year lines. The 100kg calf trade is in full swing in the North Island. And these have sold well above last year’s levels. The most recent Feilding calf sale had Friesian bulls 105115kg making $485-$500. South Island calves are making $400 on contracts.

c/kg

BEEF:

c/kg

NEWS

350

250 4-Aug

5yr ave

4-Oct

Last Year

4-Dec

4-Feb This Year

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RURAL NEWS // NOVEMBER 15, 2016

22 AGRIBUSINESS

Aussie farm labour website eyes NZ PAM TIPA pamelat@ruralnews.co.nz

THE CREATORS of an Australian website that matches onfarm jobs with available workers hopes to launch in New Zealand soon. “We already have had

AgDraft founder Ella Shannon and Grace Brennan.

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workers from NZ applying for work through AgGraft in Australia,” Grace Brennan, of AgDraft, told Rural News at a Rabobank Farm2Fork seminar in Sydney. The AgDraft website is a platform where farmers can find reliable labour when they need it most, she says. “If you are a farmer and you need a job done, you post it on the website. Workers looking for opportunities are profiled on the site. “You get a shortlist of reviewed workers. When those workers sign up to the site we reference check them. The idea is the farmer knows a bit more about that worker before they get onfarm. “They are profiled with at least their skills and experience – what they have done before; they get one reference from a previous employer and as they complete jobs with farmers on our site the farmer reviews the worker and the worker reviews the farmer. “We are trying to create a network of trusted and reliable labour with that network online.” They have placed

people in work ranging from two-week jobs to permanent roles, she says. AgDraft started 12 months ago and went online six months ago. They are about to launch an upgraded site. The founder, Ella Shannon, a farmer’s daughter, pitched the idea to a Westpac Innovation Grant scheme and won the pitch. They have had 60% monthly growth and lots of repeat users. Based in New South Wales, they service all Australia and hope to expand into NZ in the next 12 months. “As the technology becomes such a huge player in agriculture, and innovation is such a huge coalface we are hopefully on the cusp of people adopting websites like this more often and people achieving efficiencies through online platforms,” says Brennan. Shannon pitched to investors at the FoodBytes! competition at the Farm2Fork seminar. Sixty percent of farmers are under-staffed and as a farmer’s daughter Brennan says she often got called back to the farm

to help. As an agricultural fund manager she realised the impact this was having on businesses -- throttling productivity, reducing output and curbing plans for expansion. She found there were people with skills and expertise who were finding it hard to connect with the agricultural sector. They had no way to advertise their skills and experience, nor to see who was a trusted employer. “Essentially we are taking the word-of-mouth hiring system and leveraging this on line,” Brennan says. “A worker creates a profile, a farmer posts a job. The algorithms match them based on skills, availability, job preference and location. “Our point of difference is the review and recommendation system the site offers.” This enables them to extend the trusted network. They want to expand into key locations in Australia and NZ and into different agricultural industries. @rural_news facebook.com/ruralnews

The Waikato community has consistently identified water quality as the top issue for the Waikato region for the past two decades. Healthy Rivers/Wai Ora: Proposed Waikato Regional Plan Change 1 is the bold response to addressing the complex problem of water quality facing our Waikato and Waipā rivers. These are your rivers, this is your plan, make sure you have your say!

WWW.RURALNEWSGROUP.CO.NZ Submissions close 5pm, 8 March 2017 To find out more and make a submission go to: waikatoregion.govt.nz/healthyrivers or facebook.com/healthyrivers

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AGRIBUSINESS 23

Figuring out farm financial management The farming sector has long been under-served by good financial management and planning systems, say Figured chief executive Dave Dodds. He says his company is on a mission to change that. Pam Tipa reports…

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thing different and the data is often not up to date. “About 60% of farmers only ever see their financial results probably six months after balance date.” So, the annual report comes 18 months after onfarm operation decisions. Meanwhile, they may have applied to a bank for credit or similar and someone hastily did a budget on a spreadsheet. “They are all on different systems: there’s an onfarm system, there’s one the banks have and the one the accountants have.” Instead, with Figured, “by being in the cloud they are all working on the same system. When they ring their accountant, they are seeing what the farmer is seeing, the bank is seeing what they are seeing – they are all working off ‘one sheet of paper’ and although that sounds simple, in business terms that is a breakthrough. “In NZ we’re getting a lot of support from agribanks, saying ‘if you’ve got this farming financial planning tool, why don’t we use it and have that as part of our credit submission?’ “If they feed information into their credit scoring systems they can turn around credit applications much more easily. “That got the attention of US banks, so we’re talk-

Dodds says at Fieldays last year they launched the product they wanted to take further after having a prototype in the market the previous year. Since then they have added about 1800 incremental product releases.

machine learning to create a budget just by asking a few simple questions, and using the data in Figured to create a budget as a starting point. “That has been a huge barrier for farmers – being given a rounded budget.”

new things. “There is ability using Amazon to take existing data and create new insights for farmers based on the data that already exists,” he says. “We’ve done a proof of concept using Amazon

TI

Figured chief executive Dave Dodds.

country.” Working with AWS, Dodds says, gives far greater ability to use technology to solve problems in financial management. Working with its massive global resources also lowers the costs of trying

ing to some of the largest agri banks in the world. We’re not able to make an announcement yet but hope to soon. “We’re pretty excited about what it offers a small NZ company. It will be good for us and for the

K

Dodds says. “For farmers to have better financial plans, they need better access to the people who can help them -- accountants and agribankers particularly,” he explains. Farmers traditionally have – in their top drawer -- a budget they prepared with the bank, another budget in their head, and the accountant has some-

K

“FIGURED EXISTS to improve the profitability of the farming sector,” Dodds told Rural News. “The number of farmers exercising good quality financial management is far too low, considering they are businesses with multimillion-dollar capital investment. “Only about 20-30% have a decent financial plan and can run their financial management at the level required of a business with that capital investment. That’s a problem we want to fix. “Imagine if we can improve profitability by 5-10% by doing that; that’s a big lift, particularly for a country like New Zealand.” Figured is the farming add-on for Xero, which provides online accounting systems for small businesses. Essentially, it makes Xero work for farmers by providing farming financial management tools such as budgeting, forecasting and scenarios, and combining this with production data. Customers represent about 50/50 dairy and sheep/beef in NZ, and Figured is moving into cropping with its business in the US and Australia. In 2015 they started their operation in Australia and now have at least 1200 farms on board. The dairy downturn has prompted more farmers to look at their financial management systems. With Figured, if Fonterra releases a new milk price the farmer can log in and get a re-forecast cash profit position in a matter of moments. The company grew 500% last year, admittedly off a small base. But Dodds says that is the sort of growth the industry also needs to see in the next year or two. Figured has always used Amazon Web Services (AWS) for all its cloud-based services. It chose AWS because it is the leader in cloud services and because of what they can do and the time they can do it in. An important aspect of the cloud is they can integrate it in one place and it works for everybody,

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RURAL NEWS // NOVEMBER 15, 2016

24 OPINION EDITORIAL

CLASSIC EDNA

Petty, nasty politics WHAT IS it with supposed liberal, left-leaning politicians and their intolerance of people who do not share their worldview? The latest example of this intolerance is the call by the Green Party and its supporters for the sacking of the newly installed Environmental Protection Agency (EPA) chief scientist and regular columnist for this newspaper Jacqueline Rowarth – almost before she has started her new job. Dr Rowarth’s sin, according to the Greens, is to have reportedly claimed that the Waikato River is one of the five cleanest rivers in the world? The fact that Rowarth’s comments were made prior to her taking up her position with the EPA – taken out of context when she was a professor at Waikato University – has not deterred Green MP Catherine Delahunty or Green Party supporter Matt Thomson from demanding she be sacked immediately. Thomson, a Dunedin environmental contractor, has launched a petition demanding Rowarth be removed from her position “because he felt outraged” by her comments about the river. The fact that the EPA does not have any role in the regulation of water quality -- its principal function is the regulation of hazardous substances and new organisms – does not seem to have dawned on these haters. They just want the head of this ‘heretic’. The call is all the more remarkable considering the Greens are the first to claim fairness, forgiveness and due process when some other individual is called to account for things such as benefit fraud, protesting or leaking state security secrets. However, should a person dare to hold a view different from those of the Greens, or challenge or question their political mantras or beliefs, then all bets are off. It shows that far from practising a gentler, nice kind of politics they are as hypocritical, petty, vindictive and nasty as the best (or the worst?) of any political party. Undoubtedly, Rowarth has been a vocal and strong proponent of the agri sector and the work the sector has done in mitigating its environmental impact. In her new role, she cannot and will not continue this, but the Greens have not even allowed her opportunity to get her feet under the desk. It makes for a scary proposition should the Greens ever get near the levers of power. If the party can demand that an independent body such as the Environmental Protection Authority sack it chief scientist for comments taken out of context, imagine the draconian, intolerant world we would live under if it were in Government.

RURAL NEWS HEAD OFFICE POSTAL ADDRESS: PO Box 331100, Takapuna, Auckland 0740 PUBLISHER: Brian Hight .............................................. Ph 09 307 0399 GENERAL MANAGER: Adam Fricker ........................................... Ph 09 913 9632 CONSULTING EDITOR: David Anderson .......................................Ph 09 307 0399 davida@ruralnews.co.nz

THE HOUND

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

Yawn

Ruth bites back

BRITISH SINGER Morrissey has taken aim at Australia’s Deputy Prime Minister and Agriculture Minister Barnaby Joyce, in a strongly worded letter calling for an end to live animal exports. The vegan singer (need your old mate say more?) writing recently to Joyce on behalf of animal rights group Peta (need any more?). “The horrific cruelty in the live-export industry is heavy enough to sink a ship, yet you insist on condemning millions of animals to this fate every year,” Morrissey wrote. The Hound reckons the ‘artist’ would be better sticking to things he knows about – like writing depressing songs or reforming the Smiths who were good – rather than teaming up with depressing extremists like Peta and making dumb claims. To quote Morrissey own words: “Artists aren’t really people.”

YOUR OLD mate notes that former Finance Minister and creator of the infamous ‘mother of all budgets’, Ruth Richardson, though she has been out of the politics for a while seems to have lost none of her bite. Richardson, now chair of NZ Merino company, was quick to take down a detractor who implied the company’s management is greedy and guilty of self-enrichment. Marlborough merino grower Ron Small, a founding director of NZM, said in an open letter to shareholders that there were issues within the company that needed to be addressed. However, Ruthless Ruth was having none of this and in a letter dismissing Small’s criticisms she pointed out that original executive shareholdings were unanimously supported by the board at the time “of which Mr Small was a director”. Ouch!

Weldon bombs – again

Shut up!

YOUR CANINE crusader reckons anyone who thinks Massey UniverTHIS OLD mate notes that stock sity academic Mike Joy doesn’t exchange owner NZX is exiting nurse an ingrained hatred of its much-hyped and clearly farmers and farming need only look unsuccessful involvement in at a recent diatribe he wrote in mainagri-publishing faster than its stream newspapers without chalshiny-shoe owners flick a bad lenge. Joy, and a former insignificant share punt. It seems former NZX upper atmosphere physicist (what a boss Mark Weldon’s foray into waste of a life doing that) penned an agri-publishing was about as opinion piece published by Fairfax, successful as his time at TV3, in other words a complete and utter the Aussie owned and run publisher of the awful NZ Farmer, that put failure. NZX recently announced the boot into dairy farming and it had now “reshaped” its New farmers, blaming them for everyZealand and Australian agri busithing – child slavery, nuclear prolifnesses by “reducing exposure to eration, income equality, you name the parts of the agricultural sector it. Then they somehow extrapowhere the linkages to NZX’s lated this to claim that “orthodox markets business are weak, or the economics conceals the real costs economics are unattractive”. It has now hocked off failing publica- of agriculture”! So now, not only is Dr tions Dairy Exporter and Country- Joy(less) a self-proclaimed expert on water quality and dairy farming, wide in NZ and has quit its Clear he is also an economic genius! Grain exchange in Aussie.

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

RURAL NEWS // NOVEMBER 15, 2016

OPINION 25

Aiming for better public science understanding and technology become INTERACTIONS increasingly complex, in BETWEEN agriculture and parallel with the increasthe environment have rarely ingly complex issues been so much in the face of modern day global of the public, and finding a living, the potential for path for the future is provdifferent interpretations ing challenging. SCIENTIFICALLY increases. It is easier to Should New Zealand SPEAKING remain GE-free, ban glypho- JACQUELINE ROWARTH understand somebody’s story on how they have sate and embrace organics, been or will be affected, or should it lead in adopting new technologies to increase efficien- than explain or take a position on the cies whilst minimising impact on the greater good. This means that policy makers are environment? The general problem is that deci- facing challenges in reaching trade-offs sions have to be made on issues which between contrasting views and inputs, arouse high public interest, and where trying to decide between the evidence knowledge is incomplete and complex- and the emotion. Walking the boundary, or being the ity great. These issues are almost always linked to values, emotions and personal bridge, between facts and feelings is the experience -- what the Prime Minis- role of the science communicator. We ter’s chief science advisor, professor must be able to describe what is known, Sir Peter Gluckman, describes as “the and also explain what is not known and what the implications might be. political power of the anecdote”. The fundamental challenge in the The difficulty is that as science

link between facts and feelings is both the public’s increasing lack of understanding and increasing mistrust in the work of science, globally, not just in NZ. This has resulted in the increasing global recognition that evidence should play a greater role in the policy process in the future than it has in the past – and in Sir Peter’s work as a science advior trying to encourage all parties to achieve a common understanding of evidence (rather than emotion) and how it should be assessed. Part of my new chief scientist EPA role will be to promote scientific understanding of, and engagement with, science. The objective will be to increase the public understanding of the role of science, and how the EPA is assisting in the development of NZ. This will require explaining the application of science, the methods and limitation involved, and the opportunities ahead for the country. The EPA has linked this new role to

being a science ambassador, promoting communications and public awareness of science and, indeed, the work of the EPA. For the agri-food industry, from soil to saliva (or paddock to plate, block to bowl, grass to glass) the EPA has a role to play in new organisms, hazardous substances, resource management, the ETS and the Economic Zone -- NZ’s future, in fact. Almost every big decision on development in the industry will touch on an area in which the EPA is involved. Finding the way forward will require examination of advantages and disadvantages, the costs and the profit -hearing the stories and looking at the impacts. Society uses science in many ways for its benefit. Sir Peter has stated that “the proper use of science and technology is essential to our economic, social and environmental health”. Although some rogue elements in science have

allowed distrust to emerge, the role of the EPA is to uphold and explain standards that can be defended rigorously, while explaining the reason for decisions made, in a manner that is appropriate for and understandable by the audience – those affected. For me it means developing the role aligned with the statement of intent, expectations and… becoming a science ambassador. It means working with industry and business, as well as with science and society. It means talking about the challenges and assessing the issues. It means explaining the potential and discussing the pitfalls. Success will mean recognition that the EPA has played an important part in protecting the environment, while enabling environmentally sound development in the agri-food industry. • Jacqueline Rowarth took on the role of chief scientist, the Environmental Protection Authority (EPA) at the end of October.

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RURAL NEWS // NOVEMBER 15, 2016

26 OPINION

The good, bad and ugly SPRING HAS been a case of the good, the bad and the ugly in different regions. People in the South Island have welcomed good, spring growing conditions, particularly in Otago and Southland. Even Canterbury – especially North Canterbury – has had a good amount of rain. Meantime, the north has seen cases of ‘too much of a good thing’. It has been wet, very wet, especially in Waikato and surrounding districts and the central North Island. This big wet has slammed the brakes on dairy output for around 40% of NZ’s production. Fonterra has reduced its milk production forecast for its NZ collections. It now expects to collect 1460 million kg of milksolids in the 2016-17 season – 6.8% below the volume collected last season.

However, the flipside of this low production is stronger dairy prices. There is an expectation that this weaker production will continue to cause prices to firm. This has been borne out in the most recent dairy auctions: prices in the early November GDT hit their highest level since July 2014. The lift in dairy prices is welcome news for farmers and contractors nationwide. Meanwhile, meat prices have been working both ways. Beef prices have remained healthy over recent months, despite predictions that they will moderate. In contrast, lamb prices have been falling behind recently. After tracking

above last year’s level during August, prices slipped below last year’s in mid-September, remaining there ever since. There are also reports that feed grain prices are showing signs of bottoming and are even beginning to hint at a lift – again good news for growers and contractors. While there is little we as contractors and/or farmers can do about the weather or commodity prices, we can certainly control how we look after each other at work to ensure we keep safe and well. The news, earlier this month, that a young UK worker died after he was flung from a tractor on a

rural road in northern Waikato is a sad reminder of the risks and danger of working in this industry; we must take all necessary steps to eliminate such tragedies. This comes in the wake of WorkSafe’s 2015 figures showing there were 19 fatalities on farms – 16 involving vehicles. In over 50% of these cases the victims were aged over 55 and driving vehicles on sloping or uneven ground. This clearly shows that accidents happen not just to young and inexperienced operators; practised operators doing routine jobs are also getting caught out. It is a timely reminder for all rural contractors, as we head into the busy season, to mind that machines are used properly and safely. As WorkSafe points out, some of us

are likely to be working alone at busy times, requiring a clear plan for raising an alarm should anything go wrong for a lone worker. The risk management process you put in place need not be complicated, but there must be one, and it must be well understood by all workers. Far better to spend a little time now getting everyone up to speed on safety plans and machine maintenance, than having to deal with the emotional and other huge costs if something goes wrong. In the meantime, let’s get out there and tackle all that growing grass safely and profitably. • Wellsford-based agricultural contractor Steve Levet is the president of the Rural Contractors New Zealand (RCNZ).

RURAL NEWS // NOVEMBER 15, 2016

OPINION 27

High performing horticulture needs a skilled workforce HORTICULTURE AND viticulture are, together, New Zealand’s fourth-largest export industry. In the year to June 2016, horticulture and viticulture earned $4.1 billion from exports, according to figures from the Ministry for Primary Industries’ ‘Situation and Outlook for Primary Industries 2016’, and this is predicted to rise to at least $5 billion by June 2017. To maintain this growth and high performance requires two things: labour for harvest and pruning and internationally accredited assurance programmes. Skilled, reliable workers must be available at peak times, in particularly during harvest, and for pruning and other seasonal activities. The September 30, 2016 NZIER report ‘Horticulture and Viticulture Labour Market Forecasts -- Kiwifruit, Pipfruit, Summerfruit and Wine Grapes’ is an independent analysis of the labour needed to keep growing the horticulture and viticulture industries. It assesses the supply of workers and provides a robust labour forecast in the medium term. The NZIER report shows the following: • Each year 27,600 to 35,800 people work in the horticulture and viticulture industries picking, pruning and packing • Permanently employed NZers and recognised seasonal employer (RSE) workers are the most productive employees • The peak gap for pickers, pruners and packers for 2016-17 ranges from 1000 workers to a worstcase scenario of almost 6000 workers. This report provides the basis for determining how we can meet our labour requirements for the coming seasons, and is a useful assessment. Horticulture is doing what it can to employ young Kiwis. Our industry policy is to employ NZers first, and we run programmes in Bay of Plenty, Hawke’s Bay and Nelson to encourage more young people into the industry. In other areas we are devel-

the major retailers we sell our products to. It would not be possible to sell our products and grow our businesses without these retailers accepting these

oping programmes and many employers run their own programmes. Our employers are also acutely aware of the problems with employing some young NZers, such as: - Drugs: for obvious reasons, training institutions and the horticulture industry take a dim view of P and other drugs. These cannot be allowed for many reasons, particularly health and safety of our workers. - Reliability: turning up to work on time every work day, and staying for a full day’s work, challenges some young Kiwis. - Skills: horticulture is a skill-based industry, but these skills can be learned and employers are always looking for young Kiwis who have the aptitude to develop the required skills and an enduring career in horticulture. Most of the 27,600 to 35,800 people working in horticulture and viticulture -- picking, pruning and packing each year -are NZers; the RSE Pacific Island scheme accounts for only 9500 of those workers. As the NZIER report points out, we will need many more workers to grow the industry. These new workers will be both NZers and RSE workers, but our focus is on employing as many NZers as possible provided they are the right match for the job and show an aptitude to develop the necessary skills. The other key ingredient for growth is the good agricultural practice (GAP) and good manufacturing practice (GMP) programmes that provide audited quality systems that incorporate traceability. Examples of GAP programmes include GLOBALG.A.P and New Zealand GAP. These are robust, internationally accredited schemes accepted by

food safety schemes. We are working to have these schemes accepted under NZ legislation now being considered by Parliament. Our focus is to min-

imise compliance costs and maximise food safety through our existing programmes that meet the expectations of our consumers.

The combination of skilled and reliable labour at crucial times of the year and adherence to our internationally recognised assurance schemes are

two of the ingredients that will ensure our industry reaches its growth goals. • Mike Chapman is Horticulture New Zealand’s chief executive.

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RURAL NEWS // NOVEMBER 15, 2016

28 MANAGEMENT

Promises of productivity gains and environmental answers THE RECENT New Zealand Grassland Association “packed” its annual conference with papers promising productivity gains and environmental solutions for pastoral farmers, the organisers say. The conference, held on Nov 2-4 in Timaru, attracted just over 300 delegates from across the country, including many leading scientists. Papers presented covered crops from fescue to fodder beet and lupins to lucerne. Association president David Stevens, AgResearch, said it was a great event heralding ground-breaking science presented and offering popular farm-visit field days. Those field days included two robotic dairy farms and a dryland finishing property on the first day of the conference, followed by a progressive dryland sheep and beef property and an irrigated finishing farm on day two. The field days helped scientists see previous research being put into practice and hear what challenges local farmers face that might merit research.

Professor Derrick Moot received the New Zealand Grassland Trust’s highest research accolade, the Ray Brougham Trophy, at last week’s conference in Timaru.

The morning sessions relayed the latest findings. “What we are here for is science and that’s what we endorse,” said Stevens in his closing comments to the conference. “The association does not endorse products, processes or cultivars. We are here for debate and we

welcome that.” Increasingly pastoral research is being done, or at least controlled, by commercial entities, so Stevens encouraged these to submit their work to the independent peer-review process the NZGA provides. If it proves scientifically sound it will make it into the conference programme and the associated journal, he said. “It’s a really important part of our future…. A lot of the pastoral sector’s science is now conducted outside our formal institutions and we welcome our industry partners putting that science up here at the conference.” At the conference dinner the association’s sister body, the New Zealand Grassland Trust, made four awards, the top accolade going to Lincoln University professor Derrick Moot who received the Ray Brougham Trophy. Moot had been instrumental in the economic, social and environmental transformation of pastoral farms in the dry east thanks to his outstanding

2016

research and communication skills, said Grasslanz’ John Caradus. The farmer awards went to dairy farmers Alvin and Judith Reid, whose robotic dairy farm at Pleasant Point was among the field day stops, and sheep and beef farmers Warren and Andrea Leslie. Former farm consultant, now Irrigation New Zealand chair, Nicky Hyslop

won the trust’s regional award. “It would be fair to say her influence has helped many farms in the region raise their productivity substantially over nearly two decades,” said Caradus. Next year’s conference will be held in Whanganui from November 7-9. All papers from this year’s conference are posted on www.grassland.org.nz under proceedings. New Zealand Grassland Association conference delegates on a field day at the Ulrich’s Rock Farm, Cave.

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RURAL NEWS // NOVEMBER 15, 2016

MANAGEMENT 29

Irrigation a ‘dam’ good thing THE OPUHA Dam irrigation project is bringing $126 million annually into the South Canterbury region, says local farmer Nicky Hyslop. Hyslop, who is the chair of Irrigation New Zealand, and her husband Jonty, farm the 227ha Levels Estate, a few km northwest of Timaru, where they hosted a field trip visit by attendees of the annual Grassland Association conference. One of the first farms in the district to get border dyke irrigation, the farm now has 208ha irrigated, mainly with two centre pivots and a long linear irrigator along the main road frontage. The Hyslops trade lambs and cattle including dairy heifers, grow up to 20ha of spring feed barley and 4ha of specialist seed crops, and lease 20ha to a potato grower. Emphasising the diversity and vitality irrigation has brought to the district, Hyslop says the local school had only 200 pupils when they moved in in 2003, but now has 300.

Under border dyke irrigation, pre-Opuha, the farm produced 280kg carcase weight/ha and 280 tonnes of grain, for a gross income of $1683/ha, and supported one family. Post-Opuha, between 2013 and 2015, and even with the severe restrictions imposed by drought in the latter part of the period, it recorded 740kgCW/ha, 400t of grain and a gross income of $3976/ha. It is now supporting two families, with five preschool and school-age children, she says. Guest speaker during the visit to the Hyslop farm was Craige Mackenzie, a Methven dairy and cropping farmer and founder of the precision agriculture company AgriOptics. He advocates electro-magnetic mapping of farms to understand their underlying soil characteristics, continued monitoring with technology such as soil moisture probes, and using spatial application of fertilisers and irrigation to maximise efficiency. “Every individual sprinkler down those irri-

SCHOLARSHIPS GOOD FOR THE COUNTRY WORKING IN agriculture can open a world of opportunity, says rural insurer FMG as it again offers scholarships for school-leavers. The FMG Agriculture scholarship pays $5000 towards course fees for two school-leavers for each year of an undergraduate agriculture degree at Lincoln, Massey or Waikato universities. Says FMG chief operations officer Conrad Wilkshire, “With the sector facing environmental and economic change, a growing population and new technology, agriculture needs new, talented people as leaders and innovators. “We want to support the primary sector with a scholarship to help up-and-coming leaders into the industry. “Whether in practical hands-on careers or delving into science and technology, [farming] demands strong skills and passion to make a difference. If you think you have what it takes to make a difference, we want to help.” Applications close December 5. Get more information and the application from at: www.fmg.co.nz/scholarships

gators is individually controlled. Then depending on the sprinkler spacing, and how intense your soil changes are, you can control that – if you’ve got probes in each zone –

down to each individual dropper.” Mackenzie says that even on non-irrigated land, monitoring soil moisture allows farmers to decide when to destock.

South Canterbury farmer and Irrigation NZ chair Nicky Hyslop discusses the benefits of irrigation to Grasslands Conferencegoers at a field day on her South Canterbury property.

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RURAL NEWS // NOVEMBER 15, 2016

30 MANAGEMENT

GM rules need changing – Feds’ boss NIGEL MALTHUS

NEW ZEALAND’S regulations on genetically modified agriculture are “not fit for purpose,” says South Canterbury farmer and national president of Federated Farmers, William Rolleston. Rolleston delivered a paper to the recent 78th annual Grassland Association conference at Timaru entitled ‘Conditions for co-existence of genetic

modification in a pasturebased system’. His message is that GM and non-GM crops can peacefully co-exist if the right regulatory framework is in place, for example, avoiding cross-contamination by methods already successfully used to ensure certifiable seed purity in non-GM production. Rolleston, a trained medical doctor, runs a 5000ha, 26,000SU sheep

and beef operation on the family farm at Blue Cliffs Station, inland from Timaru. Of interest to him is a GM ryegrass developed at AgResearch’s Grasslands facility which, due to its high metabolisable energy (HME) system, achieves a 20% increase in photosynthesis and a 40-50% increase in production. It could provide the same liveweight gain for 16% less feed and 30% less

water, while also reducing nitrate leaching and greenhouse gas emissions. Rolleston says that when he visited AgResearch in 2015 for a presentation on the GM ryegrass, he was struck by how the farmers in the visiting group became increasingly angry at the fact this grass was “trapped in the laboratory”. NZ’s regulatory process and likely practical restrictions

mean the HME system is now being trialled in the USA in soyabean and would eventually extend to ryegrass and alfalfa. “American farming interests are closely following these trials,” he says. In his paper, Rolleston noted that the USA is both the largest user of agricultural GM in the world and produces the largest quantity of organic food. However, organic production uses about

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1-2% of agricultural land while 90-95% of farmers raise GM-approved crops. “In addition, NZ’s GM-free (i.e. tested GM-free) corn seed also comes from the US, suggesting that co-existence exists where there is a will.” He says that in the US the “Non-GMO Project” was created to give consumers a choice to eat non-GM food, and the sector now claims to be the fastest-growing in the marketplace with at least 2800 verified brands – nearly 40,000 products and US$19.2 billion in sales. “To put this in perspective, however, the US food sector was worth US$5.32 trillion in 2015, so the demand for non-GM represents less than 1% (0.36%) of the US food sector,” Rolleston says. “The regulation we have now is not fit for purpose. Politicians have to stand up and be brave about this and actually

have the conversation.” Rolleston’s paper considered various scenarios under which GM crops and forages could co-exist on neighbouring properties, such as buffer zones, grazing or harvesting before flowering, and agreements between neighbours to stagger planting and flowering of similar crops. For wind pollinated plants, for example, it was important to consider not just the spread of pollen but “gene flow,” which depended on pollen viability, receptive flowers, fertilisation and seed development. He says gene flow studies have been done on wind-pollinated forage grasses such as ryegrass and tall fescue, including at AgResearch. Pollen has been detected up to 1km from such crops but gene flow was limited to 30-50m for ryegrass and 150m for tall fescue.

RURAL NEWS // NOVEMBER 15, 2016

MANAGEMENT 31

‘Good dog’... continued IN MY last column I wrote about the magical words ‘good dog’ and how to teach the meaning to your pup; I shall continue where I left off because as training progresses the words become even more valuable. Your young dog understands that ‘good boy’ means he has done the correct thing. Never use the words to con your pup into doing something and don’t over use them. Training is going well and your pup is happy, confident and usually obedient and understands all your commands. He is relaxed in your presence, respectful but not afraid. He is handling sheep nicely, close at hand in the yards and holding paddocks, but now it is time to venture further afield into a proper paddock with larger numbers of stock. You can just about guarantee he is going to be a bit reluctant and unsure at times when you ask more of him. Some people train with the aid of another dog and when it is time for a youngster to start doing proper work he just joins the others, gradually gaining distance and independence. However, it does have the drawbacks I have previously written about. I do all my training without another dog, so pups have confidence from day one. I have taught them to follow a fenceline prior to moving out of the holding paddock; this makes asking and achieving distance relatively easy. I introduce a big paddock with larger stock numbers as a training session; there are no other dogs to distract either of us and no pressure of a work situation. That way, I have time to set up easy runs and patience when things don’t go perfectly. When you ask the dog to do something and he is obviously confused and does everything but what is asked -- stop, take

a deep breath and try again. Repeat if necessary. The split second – at the very moment – he starts to do the correct thing, say, ‘good boy’ in an encouraging voice and egg him on with whatever the command is and a ‘shu shu’ sound.

HEAD ‘N HUNT ANNA HOLLAND By saying ‘good boy’ at that correct moment – amongst all the confusion – it’s telling him, ‘yes, that’s right, that’s what I wanted’. It is a reward, it brings clarity to his mind, it is validation of the command and task. For example, he has only ever worked close at hand and you want him to gather sheep 150 metres away. He gets halfway there and stops, looks back at you, unsure of what to do next. If he understands a ‘to run’ command and he has been taught ‘steering casting sides’ (to move either right or left on the run out in the direction of stock, or on the blind when he can’t see any) then with patience there is no reason why he can’t get there. Even if it takes a couple of attempts, keep calm, repeat the relevant command and as soon as he starts to do it, say, ‘good boy’ and repeat the command once more as encouragement and reinforcement. Don’t keep saying it or you will end up with a dog you have to constantly command to keep it going. Another example, a young dog is reluctant to walk up on a sheep that is stamping its foot and threatening it. Don’t say, ‘good boy, walk up’ as that is praising him standing still; instead ‘walk up, walk up’ and the split-second he steps

forward ‘good boy’ in a happy voice; that is rewarding the action. You will then find he takes the next step forward more readily.

• Anna Holland is teaching people dog training. For more information www. annaholland.co.nz or Ph 06) 212 4848 or annaholland@xtra.co.nz

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RURAL NEWS // NOVEMBER 15, 2016

32 ANIMAL HEALTH

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NIGEL MALTHUS

FARMERS BREEDING sheep that may have Texel ancestry are being urged to test for the debilitating genetic disease microphthalmia. Lincoln University professor Jon Hickford, who has developed a standard New Zealand industry test for the disease, says the disease is believed to have arrived with the first shipment of Texel sheep to NZ about 25 years ago. One, or perhaps two, of the original shipment may have been carriers. As a recessive gene, it has no effect if only one parent has it, but statistically it will affect one in four of the offspring if both the ram and the ewe are carriers.

Microphthalmia is named after the Greek for ‘small eyes’. As a developmental disorder, it can present a range of appearances. Alistair McLeod, of the Sheepbreeders Association Texel committee, says he has seen examples ranging from partially functioning to completely blind eyes, or even mere dimples in the head where the eyes ought to have been. Hickford says a few commercial breeders now report sheep having the disease but it is likely to be under-reported because the incidence is low and many farmers may not recognise it. With the Texel Breeders Association having started an accreditation programme in 2011, he is urging farmers to use

only accredited breeding sources, and to ask their breeders what they have done to ensure any Texel or Texel-cross animals are not carriers. “When you’ve got a carrier ram across carrier ewes, up to a quarter of the lambs could be blind. That would be a worstcase scenario because typically you’ve got a carrier ram across ewes that may or may not be carriers.” Because Texels are frequently used as terminal sires, the

negatives. However, Lincoln’s commercial DNA-typing lab now offers a “very robust” genetic test based on the work of German scientists about four years ago. Breeders in the accreditation programme are offered whole stud flock testing at lower cost than the test. With the system working in Australia and New Zealand, Hickford says Texel breeders are now confident of being “completely on top of it”, at least among the registered breeders. “What concerns them now is breeders outside that registered group whose flocks are not identified or they’re just using Texel-type genetics through their composite sheep. And they haven’t been tested.”

incidence tends to remain low in commercial flocks, but there are still “horror stories” of blind lambs being born, he says. “My real concern is that we’ve crossed Texel into Coopworths Perendale and Romney ewes. We don’t know what’s out there and we may not know until it becomes too late and you see your first blind lamb.” Hickford says a previous test for microphthalmia proved unreliable, with false positives and false

BVD VACCINATION PAYS OFF VACCINATING AN entire Waikato herd against BVD has heifers calving early and empty rates well down. Farmer Verena Beckett was trying to raise big, strong, healthy heifers for the milking herd, but things weren’t working. Beckett, who runs a 400-cow dairy herd on her father’s 160ha property at Rotongaro, west of Huntly, sought to find out what was holding the first calvers back. But it was on her own adjacent 165ha farm, also running 400 Friesians, where the trouble was brewing. Her replacements are raised as part of a grazing scheme run by Franklin Vets (Te Kauwhata) on a separate sheep and beef property northeast of Te Kauwhata. They were, says veterinary technician Jess Kingsland,

“monster” heifers in great condition. But the naturally mated animals were experiencing empty rates of 8–10% and calving was very spread out. Kingsland says blood tests several years ago under an MSD Animal Health heifer screening programme had shown there had been exposure of stock to bovine viral diarrhoea virus (BVDv), so the disease was implicated as a possible drag on the heifers’ reproductive performance. Beckett says bulk milk tests for BVD were not showing anything significant, but the disease is a “sneaky” one so couldn’t be ruled out. Bulls are a well-known pathway for BVD infection, but those used for Beckett’s heifers are all tested and vaccinated. Kingsland says no persistently

infected (PI) animals were found among the heifers, so any transient infection of BVD may have come from ‘over-the-fence’ contact with PI animals or contact with other mobs on the grazing property. The property is also a working sheep and beef farm and beef cattle are traded regularly, raising the risk the disease finds its way into the grazed heifers. Biosecurity was a likely issue but it wasn’t going to be possible to prevent contact with other cattle, either over the fence on neighbouring properties or at the grazing property. On the advice of her veterinarian, Beckett has started an annual vaccination programme with Bovilis BVD to protect her heifers from the disease. She’s noticed an immediate

improvement. “This year we had 80% of our heifers calved within the first three weeks and by the end of August only four were left to calve. The empty rate is also much lower now.” The calves, once at least four months of age, receive their initial sensitiser and booster shots four weeks apart before they go off to grazing. As adults they receive an annual booster, four weeks before mating. Beckett now vaccinates her entire herd to help manage the risk to her productivity from BVD. “There’s a cost involved, but it’s hard to put a price on getting all your heifers in calf and calving early.” She has signed up to LIC’s BVD testing scheme as part of her ongoing monitoring.

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RURAL NEWS // NOVEMBER 15, 2016

ANIMAL HEALTH 33

Make a plan for facial eczema FARMERS NEED to have a robust facial eczema (FE) prevention plan in place, says animal health company Agritrade. The company makes the Time Capsule, sold for 20 years as a preventative. FE spores grow when rain follows a long period of dry weather. Dead pasture material at the base of the sward is the medium on which Pithomyces spores grow and the warm ground temperatures (>12°C) that follow rain are ideal for rapid spore growth. As pasture disappears (the onset of drought) FE risk increases as animals are forced to graze lower into the litter where the spores reside. “It’s critical that farmers continuously monitor, using either pasture or faecal testing, to determine when preventative action is necessary to keep

animals adequately protected.” March and April are often the peak months for FE spore counts, though high counts can happen in January or earlier. “Animals need not suffer unnecessarily from FE,” Agritrade says. “Protecting them will avoid liver damage that will harm milk and meat production. FE is preventable with a sound management plan.” Staying vigilant is especially important for sheep farmers as often the breeding season coincides with peak spore counts. “Many ewe losses can be attributed to liver damage caused by FE. Ewes exposed to even a moderate challenge can show a delayed onset of oestrus, fewer oestruses and a reduced lambing percentage.” Spore testing is easy to

do and is available from most veterinarians. Use district spore counts as a guide only, as they are not applicable to individual properties.

“By the time FE becomes visible, the damage to the liver has already occurred,” Agritrade says. “Prevention is the cure.”

Farmers need to have a comprehensive plan in place to manage and mitigate FE.

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RURAL NEWS // NOVEMBER 15, 2016

2016 External Parasite Treatment Survey – Sheep SATURATION DIPPING METHODS Company

Active ingredient

Concentra­ tion

Dilution Rate Constant Replenish­ ment Shower

Part Per Million in Active Ingredient Wash

Withholding Period

COMMENTS – asterisk (*) indicates not for treatment of existing strike

KEDS

FLY

ITCH MITE

TICK

14 days

Yes

Yes

Yes

No

Yes

Mid term fly protection.

Yes

No

Yes*

No

No

Specialised jetting formulation. Long term control of flystrike and lice.

Yes

–

Yes*

No

No

1.5L/1000L for shower/plunge dips, 2.5L/1000L for jetting controls both fly and lice. Non-stripping formulation. Water-based.

SERAPHOS 1250

Bayer New Zealand Ltd

Propetamphos

360g/L

1:1250

ZAPP® JETTING LIQUID

Bayer New Zealand Ltd

Triflumuron

480g/L

1:1000L

480

42 days

ZENITH® Coopers CONCENTRATE

Diflubenzuron

250g/L

1.5L/1000 2.5L/1000

375 625

Nil

EXTINOSAD® LIQUID

Elanco

Spinosad

25g/L

1:1250

20ppm spinosad

Nil

CYREX ™

Elanco

Cyromazine plus Spinosad

500g/L cyromazine and 12.5/L spinosad

1:500

1000ppm cyromazine and 25ppm spinosad

7 days

VETRAZIN LIQUID

Elanco

Cyromazine

500g/L

2:10001 1:10002

1000 500

7 days

CRYAZIN KO® Merial Ancare

Cyromazine Ivermectin

500g/L and 15g/L

1:500

1000 Cyromazine, 30 Ivermectin

21 days

CYRAZIN LIQUID®

Merial Ancare

Cyromazine

500g/L

2:10001 1:10002

1000 500

7 Days

FLEECE­ MASTER®

Merial Ancare

Diflubenzuron

250g/L

1.5/1000l 2.5/1000l

375 625

Nil

BANISH LIQUID

Norbrook New Zealand Ltd

Cyromazine

500g/L

2:10001 1:10002

1000 500

7 days

LUCIFY LIQUID

Norbrook New Zealand Ltd

Cyromazine

500g/L

2:10001 1:10002

1000 500

SATURATE CLASSIC

Ravensdown

Diflubenzuron

250g/L

Lice: 600mL/1000L for off-shears; 1.5L/1000L for longer wool. Flystrike: 1.5-2.5L/1000L

150-375 (lice), 375-625 (flystrike)

SATURATE GOLD

Ravensdown

Diflubenzuron 100g/L & Cyromazine 250g/L

4L/1000L for flystrike prevention & 2L/1000L for lice control

400 diflubenzuron & 10 days 1000 cyromazine for flystrike prevention 200 diflubenzuron & 500 cyromazine for lice control

FLYSAFE LIQUID

Ravensdown

Cyromazine

2:10001 1:10002

1000 500

500g/L

Claims

LICE

MEAT

7 days 7 days

WOOL

RECOMMENDED: • FINE WOOL 180 DAYS • MID MICRON 90 DAYS • STRONG WOOL 60 DAYS • AT LEAST 2 MONTHS

Product

7 Days

Yes

No

Yes

No

No

Fast knockdown lice control with no meat or wool withholding. 20 week lice control guarantee on coarse wool breeds. Short term flystrike prevention and treatment.

Yes

No

Yes

No

No

Combination dip for long term flystrike protection plus fast knockdown of maggots and lice. Treats active flystrike.

No

No

Yes*

No

No

1. For long term protection against flystrike. 2. For medium term protection against fly strike. Vetrazin should not be used to treat active flystrike.

No

No

Yes

No

No

For medium term protect against Flystrike.

No

No

Yes*

No

No

For long term control of flies and maggots, a combination flystrike treatment for sheep, combining Cyromazine and Ivermectin to give you up to 14 weeks protection.

Yes

–

Yes*

No

No

1. For dipping and jetting of all adult sheep and for medium term fly protection in lambs. 2. 2.5/1000 For long term fly protection in lambs. 3. Fleecemaster is an insect growth regulator therefore: (i) lice control is achieved only when adult lice die naturally which may take 8 weeks or more (ii) Fleecemaster should not be used to treat active flystrike.

No

No

Yes*

No

No

1. For up to 12 week protection against flystrike. 2. For up to 6 week protection against flystrike.

No

No

Yes*

No

No

1. For up to 12 week protection against flystrike. 2. For up to 6 week protection against flystrike.

Yes

No

Yes*

No

No

For lice control a unique cost-effective low dilution rate of 600mL/1000L for off-shears (1.5L/1000L for longer wool). For flystrike control use 1.5-2.5L/1000L (see label). Non-stripping water-based formulation.

Yes

No

Yes*

No

No

Unique combination IGR for fly and lice control. Non-stripping formulation. Water-based.

No

No

Yes*

No

No

1. For long term protection against flystrike. 2. For medium term protection against flystrike. Flysafe Liquid should not be used to treat active flystrike.

NOTE: The Rural News External Parasite Treatments Guide for Sheep is compiled from information supplied by animal health companies. Although the information has been checked by our independent animal health advisor, Rural News accepts no responsibility or liability for inaccuracies. Asterisk (*) indicates not for treatment of existing strike. NOTE: – = Not supplied. N/A= Not allowed. A = Not allowed on animals producing milk for humans

COMBINATION

FLY AND MAGGOT CONTROL FOR SHEEP. CYRAZIN K.O. IS A COMBINATION CONCENTRATE FOR THE PREVENTION OF FLYSTRIKE ON COARSE WOOL SHEEP. Knock-out flies and maggots with CYRAZIN K.O. combination flystrike treatment for Sheep. CYRAZIN K.O. is designed for the long term control of flies and knockdown of maggots, CYRAZIN K.O. combines Cyromazine and Ivermectin to give you up to 14 weeks protection.

KO PROUDLY AVAILABLE FROM YOUR LOCAL VETERINARY CLINIC. MERIAL NZ LTD. LEVEL 3, MERIAL BUILDING, OSTERLEY WAY, MANUKAU, AUCKLAND, NEW ZEALAND | WWW.MERIAL.CO.NZ | CYRAZIN® IS A REGISTERED TRADEMARK OF MERIAL. REGISTERED PURSUANT TO THE ACVM ACT 1997 NO. A10635 | ©COPYRIGHT 2016 MERIAL NZ LTD. ALL RIGHTS RESERVED. NZ-14-CYR-153.

RURAL NEWS // NOVEMBER 15, 2016

Pour-on

Propetamphos, 16g/L Paradichloro400g/L benzene

1:40

14 days

35 days

ZAPP® ENCORE®

Bayer New Zealand Ltd

Pour-on

Triflumuron, Imidacloprid

25g/L 30g/L

See label

56 days

35 days

Machine shorn off shears and lambs up to 6 months – lice only

Flystrike and lice control off shears up to 6 months

ZAPP® POUR­ON

Bayer New Zealand Ltd

Pour-on

Triflumuron

25g/L

See label

49 days

35 days

Machine shorn off shears and lambs up to 6 months – lice only

MAGNUM®

COOPERS

Pour-on

Diflubenzuron 25g/L

Refer to label

Nil

35 days

10x

VANQUISH®

COOPERS

Pour-on

Alpha Cypermethrin

50g/L

Refer to label

7 days

35 days

WIPE­OUT®

COOPERS

Pour-on

Deltamethrin

10g/L

Refer to label

3 days

CLIK

Elanco

Spray-on

Dicyclanil

50g/L

Read label for dose rate

CLIKZIN

Elanco

Low volume spray-on

Dicyclanil

12.5g/L

EXPO

Elanco

Spray-on

Spinosad

VETRAZIN SPRAY­ON

Elanco

Spray-on

CYPERCARE®

Merial Ancare

EXIT®

MILK

SAFETY MARGIN

Formulated Dose Rate

Bayer New Zealand Ltd

Concentra­ tion

MAGGO

Active Ingredient

Company

MEAT

Method of Application

Product

Withholding Period

Treatment Times

FINE WOOL COARSE WOOL

REGISTERED FOR GOATS

2016 External Parasite Treatment Survey – Sheep POUR­ON OR SPRAY­ON METHODS Comments — Asterisk (*) indicates not for treatment of existing strike.

Claims

LICE KEDS FLY No

No

Yes

For treatment of flystrike in sheep and protection against restrike and as a docking medication. Concentrate for dilution and application to stuck area. Maggo is not registered for goats.

No

Yes

No

Yes

Double combination pour on for knockdown and long term control of flystrike and lice. Can be applied to wet sheep. Easy to apply, fast spreading formulation.

Flystrike and lice control off shears up to 6 months

No

Yes

No

Yes*

Can be applied to wet sheep. Easy to apply, fast spreading formulation.

Fly: Any length Lice: Off-shears

Fly: Any length. Lice: Up to 3 months

No

Yes1

No

Yes*

Magnum® is water-based and rainfast. 1 Recommended off-shears treatment for lice.

5x

Lice: Up to 10 months

Lice: Up to 10 months

No

Yes*1

Yes

Yes*2

Rainfast. 1 Vanquish is recommended off-shears but can be used as an emergency long-wool lice treatment. 2 Up to 6 weeks protection against flystrike.

35 days

5x

Lice: Up to 3 months

Lice: Up to 6 months

Yes

Yes1

Yes. Excludes goats

No

Rainfast. 1 Recommed off-shears treatment for lice.

1. 2

35 days

>10X

Any length wool

Any length wool

No

No

No

Yes

1. Meat WHP - Merino 56 days. All other breeds 35 days. 2. Do not use on sheep producing milk for human consumption.

Refer to label

7 days

35 days

>10x

Any wool length, including lambs at docking

Any wool length, including lambs at docking

No

No

No

Yes

20g/L

See label

Nil

Nil

>25x

Off-shears

up to 3 months

No

Yes

No

No

Lice pour-on for sheep with no meat or wool witholding. Rainfast.

Cyromazine

60g/L

Read label 7 days for dose rates

35 days

N/A

Up to 5 mths wool

Up to 3 mths wool

No

No

No

Yes*

A water-based spray-on which will give protection against flystrike.

Backline Pour-on

Cypermethrin

25g/L

1m/5kg LW 2ml/5kg LW

14 days

35 days

10x

Off shears

Up to 3 mths 3-6 mths

Yes

Yes Yes*

Yes

No

*Lice on goats. Contains scourable marker Pour-on 2ml/5kg LW 3-6mths wool.

Merial Ancare

Pour-on

Triflumuron

25g/L

Refer to label

49 days

35 days

5x

Off shears2

Off shears or with up to 6 mths wool1

No

Yes2

No

Yes1*

1. Fly: up to 3 mths following. Shearing lice - up to 6 mths wool growth. 2. Fine wool lice only - off shears.

EXIT EXTREME®

Merial Ancare

Pour-on

Cypermethrin Triflumuron

30g/L 25g/L

Refer to label

49 days

35 days

5x

Off shears2

Off shears or with up to 6 mths wool1

No

Yes2

No

Yes1

1. Fly: up to 3 mths following. Shearing lice - up to 6 mths wool growth. 2. Fine wool lice only - off shears.

CYRAZIN SPRAY­ON®

Merial Ancare

Spray-on

Cyromazine

60g/L

Read label for dose rate

14 days

35 days

4-12 weeks

4-12 weeks

No

No

No

Yes*

Apply with a coarse spray nozzle. Cyrazin Spray-on will not treat active flystrike. Do not use on sheep producing milk for human consumption.

BANISH SPRAY­ON

Norbrook New Zealand Ltd

Spray-on

Cyromazine

60g/L

Refer to label

7 days

35 days

N/A

4 to 12 weeks off shears

4 to 12 weeks off shears

No

No

No

Yes*

Apply with a coarse spray nozzle. Additional Point: Wool Withhold, 60 days.

LUCIFLY SPRAY­ON

Norbrook New Zealand Ltd

Spray-on

Cyromazine

60g/L

Refer to label

7 days

35 days

N/A

4 to 12 weeks off shears

4 to 12 weeks off shears

No

No

No

Yes*

Apply with a coarse spray nozzle. Additional Point: Wool Withhold, 60 days.

FLYSAFE SPRAY­ON

Ravensdown

Spray-on

Cyromazine

60g/L

Refer to label

7 days

35 days

N/A

4 to 12 weeks

4 to 12 weeks

No

No

No

Yes*

Apply with a coarse spray nozzle. Flysafe Spray-On will not treat active flystrike.

FLEECE­ GUARD

Ravensdown

Pour-on

Diflubenzuron 20g/L Deltamethrin 10g/L

Refer to label

7 days

35 days

5x

Off-shears and up to 6 weeks wool growth

Off-shears and up to 6 weeks wool growth

No

Yes

No

Yes*

Unique double combination pour on for knockdown and long term control of lice plus up to 14 weeks flystrike control. Easy to apply with a standard applicator and T-bar nozzle.

SHOW FLY AND LICE THE DOOR!

WARNING: KEEP OUT OF REACH OF CHILDREN FOR ANIMAL TREATMENT ONLY

l

l

l

EXIT Pour-On for sheep contains triflumuron, an extremely effective insect growth regulator (IGR) IGRs provide longer acting control of fly and lice, as well as being more user-friendly than traditional OP dips and SP Pour-Ons EXIT Pour-On, with its no-mix formulation means it is extremely easy to use anywhere on the farm for effective fly and lice control

FOR THE CONTROL OF BODY LICE (BOVICOLA OVIS) ON ALL BREEDS OF SHEEP AND FOR THE CONTROL OF FLYSTRIKE (INCLUDING LUCILIA CUPRINA) IN COARSE WOOL BREEDS OF SHEEP. CONTAINS 25 mg/mL TRIFLUMURON

L

NET

CONTENTS

5625-2-1212

EXIT® is a highly effective, easy-to-use IGR Pour-On that controls fly and lice on sheep. PLEASE READ LABELS BEFORE USE.

PROUDLY AVAILABLE FROM YOUR LOCAL VETERINARY CLINIC. Merial is a Sanofi company. MERIAL NZ LTD. LEVEL 3, MERIAL BUILDING, OSTERLEY WAY, MANUKAU, AUCKLAND, NEW ZEALAND | WWW.MERIAL.CO.NZ | EXIT® IS A REGISTERED TRADEMARKS OF MERIAL. REGISTERED PURSUANT TO THE ACVM ACT 1997 | NO’S A10391. ©COPYRIGHT 2014 MERIAL NZ LTD. ALL RIGHTS RESERVED. SEE WWW.FOODSAFTEY.GOVT.NZ FOR REGISTRATION CONDITIONS. NZ-14-EXI-207.

MAL_Exit_14x7_advert.indd 1

11/11/14 2:02 PM

RURAL NEWS // NOVEMBER 15, 2016

36 MACHINERY & PRODUCTS

Unimog celebrates its 70th birthday MARK DANIEL markd@ruralnews.co.nz

THERE’S NO more recognisable vehicle than the German Unimog. Now celebrating its 70th year, the ‘Mog’ – its name derives from Universal Motor Great (great means ‘device’ in German) – has a band of followers who want to travel faster, in more comfort and use demount sprayers and fertiliser spreaders. The original design brief, to Albert Freidrich in the austere years following WW2, was for a dual-purpose machine suitable for agriculture or forestry. It was to be self-propelled and have front and rear PTOs for running saws or harvesters, all-wheel drive and equal sized wheels for speed. Production began in 1947 when Boeringer built around 600 of the original 25hp units. In 1951, Daimler Benz took over production, and immediately built up the

popularity in agriculture, forestry and in the municipal and military sectors where the versatility of the machines quickly became apparent. Production at the Gaggenau plant hit 100,000 units by 1966 and crossed the 200,000 milestone by 1977. Today’s Unimog, now built in the Mercedes truck factory, comes in a range of eight models, three chassis configurations, and power outputs of 160-300hp in four- or six-cylinder format. Transmission choice ranges from a 16 x 8 power shift with creep speeds to a fully hydrostatic set-up for stepless speed control. Four wheel drive is always available, with engagement on the fly and traction always assured; centre, front and rear locking diffs keep things moving on the rough stuff. Ground clearance (43cm) is still a key design attribute, imparted by the portal axle design which combine with the short nose to allow the vehi-

Today’s Unimog, now built in the Mercedes truck factory, features a diverse product range split between eight models.

cle to tackle inclines of 1:1 without fuss. Tyres up to 495-70R24 can be fitted; standard ABS and two stage exhaust braking scrub off the maximum 90km/h or stop maximum loads of up to 40

tonnes. As one would expect, standard spec is high and the options list is huge – linkages, PTO systems, hydraulic pumps and up to 1000 body variations.

And for operators who don’t like left hand drive – a clever VarioPilot option allows the steering wheel and drive pedals to be slid across to the other side of the cabin. Alles gut!

Tow and Fert saves on fert costs

ADVERTISEMENT

™

Given the current financial conditions for dairy farmers around the world, managing input costs without decreasing production is the only logical way to navigate through this tough time. Technology developed in Dannevirke is becoming noticed as breakthrough technology with research agencies in other pasture grazing markets around the world. Tow and Fert, designed and manufactured by Metalform, has the ability to either reduce fertiliser input costs without impacting pasture yields, or maintain fertiliser inputs and improving dry matter and protein production. As well as proven research from NZ and a dairy co-operative in NSW Australia, an independent dairy specialist in the UK is the latest company to prove the efficiency of Nitrogen when applied in a foliar form. The trials were performed when applying 33%, 66% and 100% of the typical rate of nitrogen which was 25kg/ha, 50kg/ha and 75kg/ha of foliar applied Urea compared to 75kg/ha of granular Urea. Even when the foliar urea was applied at 33% of typical application rate, the DM response was only 10% less DM per hectare. At an application rate of 50kg/ha which was 66% of the control rate, the increase of DM yield was exactly 50% higher. Based on this research, now consistent from 3 different research trials it can be concluded the possibilty of acheiving the same DM response with only 1/2 the amount of urea.

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.

TF TOW AND FARM by metalform

Metalform developed Tow and Fert, a fertiliser applicator, to quickly dissolve normal granular urea in cold water on the way to the paddock which means turning urea into a dissolved foliar spray is quick, convenient and most of all more cost effective and environmentally responsible. As grass is the cheapest form of feed, it is ever so important to ensure that we are growing the most nutrient rich pasture rather than spending on supplement feed and the Tow and Fert can be a key part of reducing input costs in the current economic climate without decreasing pasture yields.

Graph used from research paper, Kingshay, Somerset, UK 2016©

0508 747 040 WWW.TOWANDFARM.CO.NZ

RURAL NEWS // NOVEMBER 15, 2016

MACHINERY & PRODUCTS 37

This RAM is a no bull ride for real workers MARK DANIEL markd@ruralnews.co.nz

LET’S BE clear, this ain’t no ute. If you’re a jaffa you’ll be better off looking at something with rechargeable batteries and a power cord. But if you need to carry up to 900kg, or easily tow loads up to 6900kg, there’s no need to look past the RAM 2500 Laramie. Anyway what is there to look at that doesn’t need you to upgrade your driving licence? So, if you’re a tradey who wants to move heavy metal such as a digger, or a horsey type who wants to move a couple big nags, the RAM is the one to head for. First impressions are it’s big – the name Texas springs to mind. Getting in is not for the vertically challenged or females in tight skirts; it’s quite a challenge to clamber up to mission control. But once you get there and set the big leather-clad seats to your liking it’s just like your favourite armchair. Once seated, first impressions are of a great fit and finish and it shows that the brand’s factory authorised remanufacturing is done properly– by Walkinshaw Automotive in Melbourne, who take

factory left hand drives and change them for our markets. Hitting the starter button brings the 6.7L Cummins diesel to life, then shifting the column mounted transmission lever to D gets thing moving. The lusty engine makes 276kW and delivers torque by the trailer load, putting out 1084Nm. The transmission lever has push button shifting of the six speeds, by why would you bother? Leave it in drive and 92km/h comes up at around 1000rpm, while nudging it to around 1350rpm brings up 105km/h, so let it do its own thing and enjoy the most relaxing drive you’ll ever have. How does it handle? Well, at 6m long x 2m wide and weighing 3.5 tonnes it’s never going to handle like a GTI. But throw a bit of weight in the tray to take some zing out of the springs, and tweak the tyre pressures, and you’d call it acceptable. Steering might be a little vague, but only if you hustle it into the bends. And nobody wants to pick a fight; you always seem to have right of way. Getting back to its real purpose – carrying or towing big stuff – there’s nothing out there that

does it in such style and comfort. Those big loads are checked by the integral trailer brake control, which can be applied

manually. The automatic exhaust brake brings engine retardation into play if you need to scrub off some speed. Creature comforts (it’d be easier to list what it hasn’t got): six leather seats with 12-point adjustment and memory, and the same function on rear view mirrors and steering wheel; keyless entry, an 8-inch Infotainment display, 7-inch centre display cluster, electric sun roof

This new RAM is a truck built for for real work; not for the latte drinkers wanting another Remuera tractor to pick up the kids from school.

and even a 240V power socket. Safety is up there as one would expect – ABS, airbags in various locations, and two rear view cameras covering the load and tow-bar areas. Add to that stability control and selectable four wheel drive and you just have to wonder... have I counted all the cup holders? We found eleven. And where do I buy a tengallon hat?

KVERNELAND DISC MOWERS FEATURE A HEAVY DUTY CUTTERBAR WITH ROUND DISCS. Stones are expelled immediately, before they have any chance of becoming jammed and reduces shock loads in the transmission. The benefits are lower repair and maintenance costs and a consistent clean cut.

2CUTTERBAR YEAR WARRANTY

ON ALL DISC MOWERS

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

www.ramtrucks.co.nz

SAVE TIME & MONEY Maximise your pasture with a MAXAM Mower!

Why buy a MAXAM mower? ● Cut, Condition, and Spread the grass in one pass ● Clean cut produces fresh pasture ● Robust and low maintenance ● Low cost - from only $9,500 + GST

Enquire Now - from only $9500 + GST Demos Available! Phone 06 356 8516 www.farmgear.co.nz

MAXAM Mowers and Toppers

RURAL NEWS // NOVEMBER 15, 2016

38 MACHINERY & PRODUCTS Manitou’s telescopic handler New Age range sees a major revamp of its six to nine metre Ag. models.

Telescopic handlers enter a new age FFENCH TELEHANDLER maker Manitou looks set for a major revamp of its 6-9m ag models, in the form of its New Age range. Already claiming a 30% market share in Europe,

and rising in 2016, the company accepts that its previous range might have been a little long in the tooth – particularly the transmission. While the smaller models will continue to

END OF YEAR STOCK CLEARANCE JOHN DEERE 8360RT 2013, 360Hp, 4443 hrs with an Infinitely Variable transmission and 4 SCVs.

JOHN DEERE 8360R 2013, 360Hp, 3446 hrs with an Infinitely Variable transmission, TLS and 5 SCVs

JOHN DEERE 7530 2007, 180Hp, 8498 hrs with an AutoPowr transmission, command arm, 16 weights, Field Office & Power Beyond.

REF: 503110 WPK

REF: 502898 HST

REF: 501847 HST

$205,000 +GST

$220,000 +GST

FREE FREIGHT TO T HE NEARE MAIN CEN ST TRE

$49,500 +GST

JOHN DEERE 7430 PREMIUM 2008, 166Hp, 9084 hrs with an Infinitely Variable transmission, duals, 4 SCVs & Greenstar ready.

JOHN DEERE 6130R 2014, 130Hp, 1720 hrs, an AutoQuad transmission, 3 function electric joystick, 3 SCVs and loader ready.

JOHN DEERE 6330 2011, 105Hp, 1400 hrs with a PowrQuad transmission, Stoll NSL 30.1 loader, Power Beyond and 2 SCVs.

JOHN DEERE 5080GV 2012, 80Hp, 658 hrs with a 24 x 12 transmission and 4 SCVs.

REF: 502416 HST

REF: 503203 WPK

REF: 502918 WPK

REF: 502862 HST

$52,000

$112,000

+GST

+GST

$69,000

$51,000

+GST

run with a Dana-Spicersourced transmission either in 4F/4R or 6F/3R speeds, the larger models will follow the lead set by competitors Merlo, Claas and Dieci and specify a ZF hydrostatic driveline. The twin motor set-up will tailor output to the job in hand, but unlike its competitors the Manitou Vario Plus, it will use slower running radial motors rather than swashplate pumps. This is said to reduce wear and noise and requires less oil to generate the same torque. In the hydraulics, the machines will have a regenerate system that feeds oil through a pilot valve on the boom’s lower-and-retract functions directly to the main reservoir, thereby reducing cycle times. ‘Intelligent hydraulics’ will offer Quick-Lift which automatically retracts the boom in the raise cycle to lift loads vertically. Bucket-Shake does as the name suggests at the end of the dump arc, and Return to Load takes the boom back to a preset height and angle for repetitive tasks. The cab remains largely unchanged, apart from a better access step and roof louvres.

But there are major changes to the controls: the toadstool-topped joystick remains, but now combines with a full colour screen to display function pop-ups when the controls are activated. A colour coding scheme, akin to those adopted by tractor manufacturers, uses orange controls for engine and transmission, blue for hydraulics, red for safety and black for everything else. The system also uses CANBUS control which means any switch can be pulled out, repositioned to a preferred location and automatically recognised by the system. Manitou has also looked closely at operating costs, pushing out service intervals to a longer period. For example, air cleaner replacement moves from 500 to 2000 hours and hydraulic oil changes from 1000 to 2000 hours. The company claims its subtle changes to the engine set-up and hydrostatic transmission will reduce fuel use by 5%, and that the extended service intervals will reduce lifetime operating costs by 15%. www.abequipment.co.nz

+GST

BETTER BONDING FENDT 716 2011, 160Hp, 4761hrs, duals all around and 4 SCVs.

NEW HOLLAND TL90 2002, 90Hp, 5300 hrs with a Shuttle Shift transmission, Mailleux MX80 loader and 2 SCVs.

VALTRA 103 2015, 130Hp, 300 hrs with a Shuttle Shift transmission, Valtra 41 loader and 3 SCVs.

JOHN DEERE 960 BALER 2012, 4647 hrs, approximately 15,500 bales, 2.2M pickup, MaxiCut with 13 knives.

REF: 503205 HST

REF: 502849 HST

REF: 502967 WPK

REF: 503175 HST

$115,000 +GST

$27,500 +GST

$88,000 +GST

$59,900 +GST

Contact CERVUS EQUIPMENT today HASTINGS - 06 879 9907 1318 Omahu Road 0800 333 734

WAIPUKURAU - 06 858 8822 Peel Street cervusequipment.co.nz

CONDITIONS APPLY: All prices exclude GST. Price, hours and condition are accurate on day of print and are subject to change without prior notice. Finance available through John Deere Financial Ltd to approved commercial applicants only. Fees and charges apply. If not amended or withdrawn early, offer expires 31 December 2016.

THE J-B Weld range of epoxy adhesives, bonding and filling products is a firm favourite with consumers and tradespeople, says distributor Griffiths Equipment. The products have the strongest bonding action in its class, the company says. This makes it suitable for permanent repairs. The products suit metal, wood, plastic, glass and more. It’s fast, easy-to-use, safe and certain products come in a variety of colours. Also available are anaerobic thread lockers for locking nuts/bolts; liquid epoxy wood and wood putty for bonding and filling wood cracks; epoxy adhesive sticks such as WaterWeld, HighHeat, PlasticWeld and SteelStick; and a high-strength ‘super glue on steroids’ called SuperWeld, for jobs such as gluing a rear-view mirror back onto a windscreen. Also available are silicone sealants and gasket makers which use 100% silicone. Their air-tight cap design, originating in the dental industry, offers no clog, no mess delivery and can be fitted only one way, preventing cross contamination and allowing repeated use over time without drying out. www.griffithsequipment.co.nz

RURAL NEWS // NOVEMBER 15, 2016

MACHINERY & PRODUCTS 39 XCEL 1250 Muck Spreader

L OFFICIA ER T R O P IM

Spreading width of up to 24 metres 12 tonne capacity Ability to spread full load in 3-5 minutes Optional scales available High quality - Built to last

Contact Ben Peters 027 238 0356 | ben@gaz.co.nz

The latest addition to Southland spraying contractor David Kean’s fleet is a Hardi Pesidio self-propelled sprayer to help him deal with increasing amounts of fodder beet in the region.

Hi-spec sprayers knock beet into shape MARK DANIEL markd@ruralnews.co.nz

FARMERS DIPPING and Spraying is run by David Kean at Limehills, central Southland. The company offers contract spraying with a fleet of Landcruisers and Isuzu trucks with boom widths up to 18m. The latest addition to the fleet is a Hardi Pesidio self-propelled sprayer, bought to deal with the ever-increasing acreages of fodder beet now being grown in the deep south. A 6-cylinder Deutz engine of 129kW provides the power, driving through a three-stage hydrostatic

transmission for stepless speed control. It has cruise control, four wheel drive and airbag suspension. Tyres are 380-90R46 at 2m centres to avoid crop damage. Attention has been paid to the boom specifications, in this case 24m Pommier alloy units with automated height control. A primary function of the boom is low pressure circulation of chemicals for agitation and instant start-up. Up above, a 2750L main spray tank is complemented by a 260L rinse tank fed by a 680L/m Ace RunDry centrifugal pump. Filling ports are located on the machine’s near side through 50mm

Camlock couplings; also fitted are a drop-down turbo chemical filler, chemical induction and container wash-out. Application rates are determined by a HC 9500 touch screen AutoRate controller, which offers auto-section shut-off and oversees GPS guidance and auto steer functions. Operator comfort isn’t overlooked either; the large air-conditioned/filtered cabin is centrally mounted for good all-round visibility, and an air suspended seat and quality audio equipment help during long working days.

FOLDING GRASS FORKS Available in 12 to 16 foot (4.9m) widths

ND MADE IN IRELA are built ProDig products t quality using the highes king components, ma able and them robust, reli easy to maintain.

• • • •

40mm Hardox steel tines Hydraulic accumulator fitted as standard Bushes and grease points on all pivots 60mm replaceable main pivot bushes

WIDE RANGE OF IMPLEMENTS AVAILABLE: SILAGE GRABS • BUCKET GRABS • BALE GRABS • FOLDING SILAGE FORKS • TELEHANDLER BUCKETS AND FORKS

Contact Ben Peters 027 238 0356 | ben@gaz.co.nz

www.hardi.net.nz @rural_news

facebook.com/ruralnews

• Fully automatic bale packer system. • One man operation to collect & pack conventional square bales in bundles of 8, 10, 12 or 14. • Economical to run: low tractor HP required. AutoStack FSX

• Available in 2 models: AutoStack XP and AutoStack FSX. • Designed to efficiently and reliably handle large square bales or multipack bales. • Unique patented bale loading. Contact Greig Singer 027 266 7897 | greig@gaz.co.nz www.arcusin.co.nz

AutoStack XP

Giltrap AgriZone are the official NZ importers for Arcusin, ProDig and HiSpec products Contact us for further information | 07 827 7159 www.gaz.co.nz | facebook.com/GiltrapAgriZone

RURAL NEWS // NOVEMBER 15, 2016

40 MACHINERY & PRODUCTS

CNH goes Swedish CNH Industrial, maker of New Holland and Case IH tractors and headers, has acquired Kongsklide Industries soil and grassland divisions.

MARK DANIEL markd@ruralnews.co.nz

IT APPEARS the consolidation of the global farm machinery sector is still under way, as major players look to go ‘long line’ and offer complete product ranges covering all market sectors. Latest news is that CNH Industrial, maker of New Holland and Case IH tractors and headers, has agreed to buy Kongskilde Industries’ soil and grassland divisions. The deal includes well-known brands such as Kongskilde, Overum

and JF, made in Sweden and Poland, and joint ventures in Asia Pacific and North America. Subject to regulatory authority approval the company’s cur-

rent sales and distribution agreements remain unchanged, but these product lines will be offered under the New Holland banner. Carlo Lambro, brand president

for New Holland, commented, “the acquisition of Kongskilde will allow us to broaden the New Holland product range in the agricultural machinery sector and provide

significant growth opportunities as they are integrated into the portfolio”. Nothing is said about offering the products under the Case IH banner.

FEED PROCESSOR F O R A L L S T O C K F E E D O P E R AT IO N S All Supreme Feed Processors have been designed according to sound, field tested engineering principles to make them the most versatile and reliable feed preparation units available. Features include.... • Patented auger design • Extremely accurate electronic measurement • Optimally designed mixing tub • Full control of cut length • Highest quality components and materials

Stand out, but cough up! WITH THE New Zealand ute market soaring along it’s become a lot harder to stand out from the crowd. But the Hennessey VelociRaptor 600 will get you noticed with its loud orange paintwork, and if that doesn’t work, the performance and the bodywork should. Basing the vehicle on the Ford Motor Company F150 Raptor, the specialist US tuning firm adds twin turbos, a modified stainless steel exhaust system, upgraded intercooler assembly and upgraded factory ECU to raise output to 600hp plus, giving a 0-100km/h time of around 5 seconds. The extended rear chassis gives more room for the sheepdog, but more importantly makes room for a third driven axle to offer 6x6 traction. This then benefits from uprated Fox suspension, 20 inch wheels and off road tyres. Modified front and rear bumpers complete the look, alongside macho bull bars and night-into- day LED lighting. But before you rush to trade in your Hi-Lux, Ranger or Triton, grab a coffee, sit down and take a deep breath; the price starts at an eye-watering $NZ 410,000 (US$295,000). Still want to look different? – Mark Daniel

NOW READ IT ONLINE READING THE PAPER ONLINE HAS NEVER BEEN EASIER ■ BREAKING NEWS ■ MACHINERY REVIEWS ■ MARKETS & TRENDS ■ MANAGEMENT STORIES ■ COMPETITIONS ■ AND MUCH MORE...

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RURAL NEWS // NOVEMBER 15, 2016

MACHINERY & PRODUCTS 41

The clock is ticking PROFESSIONAL SHEARERS, churning through hundreds of sheep in a day, find their end-of-day tally having a big effect on their earnings. No surprise then, in the age of the app, to hear of the recent arrival of the ShearPace app. This helps shearers

keep an eye on tallies and earnings and offers blowby-blow information on shearing speed. It combines a stopwatch, tally counter and pace setter to show users how long each animal has taken to shear, whether their pace is constant through each run, and how quickly

the shearer has moved towards a daily target. Claimed to lift motivation levels and efficiency, the app was praised by champion shearer Rowland Smith: “it’s good to set a realistic target, then shear along with the pacing device. It’s easier to raise the tempo slightly, which raises the

daily tally”. Recently recognised in the innovation section of the NZ David Awards, the device is said to be worth between two and six animals per run, or an increase of up 24 head per day. The app is available on all current download sites. www.shearpace.co.nz

The ShearPace app helps shearers keep an eye on tallies, earnings and offers blow-by-blow information on shearing speed.

Find the right fuse MARK DANIEL markd@ruralnews.co.nz

NARVA HAS dealt with the frustration of trying to find the right automotive fuse when you need one and sorted out the perennial question of the few weeks: “what can I get you for Christmas?” The answer is not “ah, just some socks”, but Narva’s new master fuse assortment -- a range of the most popular fuses in a neat, handy package ideal for the garage or workshop shelf. Each assortment comes in a PVC container with separate compartments for each fuse type and includes glass-types fuses and all blade fuses widely used in modern vehicles. There’s a choice of different amperages. For easy use and quick identification the inside lid of the assortment case has a contents guide where all the fuses are pictured and itemised, with part numbers alongside two fuse pullers for easy removal and fitting.

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

*Conditions apply. Finance available through John Deere Financial Limited to approved commercial applicants only. Offer is based on 0% deposit, GST back and 36 month term. Fees and charges apply. If not amended or withdrawn earlier, the promotion expires on 31/01/17. †Conditions apply. Discount applied to agreed-upon purchase price (excluding pre-delivery, freight, assembly or dealer charges) while stocks last through 31/01/17. Products, specifications and availability are subject to change without notice.

JohnDeere.co.nz/DeereSeason

RURAL NEWS // NOVEMBER 15, 2016

42 MACHINERY & PRODUCTS / RURAL TRADER tunnel houses Grow vegetables all year round Very affordable and easy to install New Zealand designed and made 35 years producing tunnel houses Range of models sized from 2m - 8m t/f

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Tedder covers the ground quicky

www.morrifield.com MARK DANIEL markd@ruralnews.co.nz

KUHN HAS upgraded its range of high capacity tedders with a new chassis design and rotor lifting mechanism, which allows higher ground clearance and improved contour following on undulating terrain. The GF 13012 and GF 17012 Gyrotedders have the capacity to ted up to 15ha per hour, the former using 12 rotors to cover 13m operating width and the latter using 16 rotors to cover 17.2m. Two key modifications for the upcoming season are improved headland clearance, the outer sections being supported and held in position by self-reeling tension straps

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HUNTER BOOTS Comfortable, durable and stylish.

The heavy duty sole construction makes this a robust boot designed for climbing over rugged ground. This boot has a soft toe and is made from a thick Mad Dog Nubuck Leather, stitched and screwed construction with a rubber, replaceable sole, that is glued and screwed. Soft padding for ankle support and D-Rings for your laces are an added advantage. Great fitting boots full of comfort, ideal for those long hunting and tramping trips.

FARMER BOOTS Lastrite’s Farmer boots are made

for comfort. Constructed from Reverse kip leather they are an ideal farmers, fencers and builders boot. Very sturdy and made to last this boot is robust with a heavy duty construction. It has a leather insole and midsole that is stitched and screwed construction with a rubber, replaceable sole, that is glued and screwed. Update your old boots now and you will never look back.

10 HALL ROAD, RD5, WHANGAREI Phone 09 438 8907

Kuhn’s new gyrotedders have the capacity to ted up to 15ha per hour.

that allow all the rotors to lift in one motion. The set-up, not dissimilar to a typical seat belt layout in a car, is claimed to reduce stress on the main chassis and individual rotor sections, and to keep the machine stable across its entire width when encountering rough ground. The ‘supporting’ straps also serve a dual purpose by acting as safety guards, replacing traditional steel units, with the benefit of saving weight and eliminating breakages cause by vibration or metal fatigue. Rotors are raised hydraulically on the headland by a pair of transport wheels to provide high clearance, which offers the ability to cross windrows without dragging up heaps

or clumps. Terrain following is the job of the Kuhn Ground Save Control (GSC) where the rotor train is allowed to travel independently of the chassis, eliminating excessive ground contact, contamination and tine wear. Rotor height is controlled by a single screw adjuster positioned next to the 3-point linkage. Despite the huge operating widths, both machines fold compactly for transport, the GF13012 measuring 2.4m wide x 6.5m long x 2.68m high and the GF17012 taking up 2.4m x 7.5m x 2.68m. They weigh 2800 and 3400kg respectively; power requirement is said to be 80 or 100hp. www.kuhn.co.nz

RURAL NEWS // NOVEMBER 15, 2016

RURAL TRADER 43

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