Rural News 22 August 2017

MANAGEMENT

MACHINERY & PRODUCTS

NEWS

Family affair for stockmen at Affco Horotiu. PAGE 33

European tour shows Kiwis the machinery future. PAGE 41

Global demand for butter ‘going through the roof’ PAGE 23

TO ALL FARMERS, FOR ALL FARMERS AUGUST 22, 2017: ISSUE 636

www.ruralnews.co.nz

Let’s not do this! NIGEL MALTHUS

THE GOOD work farmers are already doing to minimise the environmental impact of irrigation could stop if they had to pay water royalties, says Irrigation New Zealand chair Nicky Hyslop. INZ says it had good discussions with the Labour Party in the past, making sure they had good information, said Hyslop, but is now “very concerned” about their recently announced water royalty policy.

Labour has referred to collecting funds to address water quality issues in the regions, but the most impact to be made in water quality improvement is onfarm, Hyslop claims. “Making changes on farm – potentially changing management in farming systems – [would] ensure we are farming well within nutrient limits, investing in new technology on farm, upgrading irrigation systems and have better decision support systems in place.”

Hyslop says with Labour’s water tax in place farmers would not be able to keep doing that; they’ve spent about $600 million on this since 2011. “We need to be able to continue to do so, but we will not be able to if we have a water royalty.” Hylsop says it will be farmers rather than regional councils who make the difference in cleaning up water. She adds there are also questions about what councils are doing in cities and towns.

Growers feel the squeeze VEGETABLE FARMERS in Pukekhoe, south of Auckland, are facing a double whammy: Auckland’s urban sprawl is poaching fertile soils for housing subdivisions and farms which cross the boundary into Waikato must contend with Waikato Regional Council’s Healthy Rivers plan. With access to fertile land and irrigated water under threat, the Pukekohe Vegetable Growers Association is working with councils on saving their businesses. Association president and A. S. Wilcox general manager Brent Wilcox says these are uncertain times for growers. Pukekohe’s frost-free and fertile soils are ideal for growing vegetables and root crops; turning them into residential plots would be a waste. – More page 4

“We’re all in this together, but a water tax in my mind is not an effective or efficient way of achieving the overall objective.” Hyslop and her husband farm a 200ha mixed sheep, beef and cropping property at Levels, near Timaru, irrigated through the Opuha scheme. Labour originally gave no figures, but later suggested a royalty of 2 cents per 1000 litres of irrigation water used. “For a farm like ours, a 200ha TO PAGE 3

FED’S GIRL POWER HALVES FEDERATED FARMERS national board’s woman membership has halved with the sudden resignation of one of them. New board member Lynda Murchison has quit less than two months after she was elected and before the new board has met for the first time. She confirmed to Rural News’ sister publication Dairy News, last week, that her reason for quitting was because no one had been prepared to take on her previous role of provincial president for North Canterbury. She will now resume that role. Murchison was seen as a great asset to the board, especially given her professional role as a planner. She has worked in resource management in Canterbury for 20 years, for district councils, the regional council and Ngai Tahu, and has run her own environmental planning consultancy. She also played a major role in dealing with the effects on farmers of the Kaikoura earthquake and the drought in North Canterbury. No decision on a replacement will be made until the Federation’s national council meets in November. Feds’ sole remaining woman national board member is president Katie Milne who was elected to this role in July along with newcomers Murchison, Chris Lewis and Miles Anderson. Andrew Hoggard and Guy Wigley are also on the board.

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RURAL NEWS // AUGUST 22, 2017

NEWS 3 ISSUE 636 www.ruralnews.co.nz

Landcorp’s shrinking carbon footprint PAM TIPA

NEWS ������������������������������������� 1-23 MARKETS ������������������������� 24-25 AGRIBUSINESS ���������������26-27 HOUND, EDNA ���������������������� 28 CONTACTS ����������������������������� 28 OPINION ���������������������������� 28-31 MANAGEMENT ���������������32-36 ANIMAL HEALTH ������������37-40 MACHINERY AND PRODUCTS ����������������������� 41-46 RURAL TRADER ������������� 46-47

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 80,580 as at 31.09.2016

pamelat@ruralnews.co.nz

LANDCORP IS moving to farm more sustainably and reduce its carbon footprint, says chief executive Steven Carden. It is replanting and reforesting: steep, hilly land is being put back into trees. “There’s too much erosion; we can’t make enough money by putting a couple of sheep or a couple of beef cows there, and we face potentially a huge environmental bill coming in for methane gas,” he told the recent Environmental Defence Society ‘Tipping Points’ conference in Auckland. “We need to get our carbon foot-

of plans to convert to print looking much more dairy.” more responsible than Carden says Landit has been, which corp is trying to think means putting back a of alternatives to give a lot more trees on more good economic return of our land. with a much lower “We are taking environmental cost. palm kernel out of our “We have started system because people to walk the talk about don’t like that in farmfarming more sustaining; we actually don’t ably. But I think we think it is a great way Landcorp chief executive Steven have recognised as to farm. The numbers Carden. well that we will have of farmers I’ve had approach me saying ‘thank goodness to do more than that. “Technologies are coming that will you’ve decided to do that’ has stagallow us to farm much more precisely gered me. “We have just stopped dairy con- than we have in the past. Big data and version, pulled back on a whole lot the technologies that come with big

Irrigators question water tax FROM PAGE 1

property, that would mean a $20,000 bill. That’s $20,000 a year that we will not be able to invest back in our property to make the changes to ensure we are sustainable and that’s a really a big concern for me.” The royalty scheme would mean money going into central government, a bureaucratic system which would cost an arm and a leg to run, with a small portion then going back to the regional councils, said Hyslop. “I understand from the public point of view, the interest, engagement and the emotional attachment or response that people may have in regard to water qual-

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data are our friends,” he added. “We can be much more specific now about the amount of nutrients and water we apply to the plants we plant to produce just the right growth we need to optimise productivity onfarm.” Using home grown technologies like Farm IQ software allows Landcorp to farm by animal rather than by mob or herd. “We can be much more productive with those animals by applying just the right amount of feed that they need at the right times to optimise their growth,” Carden says. “It means a whole lot less wastage in the system, which reduces our environmental footprint.”

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ity concerns in our regions,” she adds. “What I can say to the public is ‘look, there is so much work already done by regional councils, collaborating with their communities, to ensure there are regulatory limits in place on farms, so that they must operate within those limits’.” She concedes that farms will have to continuously meet tougher and tougher limits. Hyslop believes ongoing education will help ensure farmers are armed with the best tools to achieve “what we all want – which is thriving regions and water quality we can be proud of and that our kids can be swimming in our rivers and lakes”.

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RURAL NEWS // AUGUST 22, 2017

4 NEWS

Urban invaders hurt hort SUDESH KISSUN sudeshk@ruralnews.co.nz

UNCERTAINTY OVER continued access to fertile land and irrigation water are potentially forcing some vegetable growers out of business. The Pukekohe Vegetable Growers Association president Brent Wilcox says land and water are the main issues facing many of its member businesses; ranging from smaller single property units to large operations with diverse land holdings. “Over time we are seeing consolidation of many small growers into fewer larger growers; there is uncertainty and many growers are faced with a decision trying to figure whether they can justify the cost of taking land and water issues on,” he told Rural News. Auckland’s urban sprawl has reached Pukekohe, a key region for growing potatoes, onions, carrots and greens; in western Pukekohe, new homes are being built on land with potential for vegetable farming. Many of Pukekohe’s vegetable growers are also growing in the Northern Waikato region and face new land and water usage regulations under Waikato Regional Council’s Healthy Rivers Plan to clean-up major rivers. A new area of concern is the proposed plan by the Greens and Labour to levy a charge on water, seen by farmers as another stumbling block to farming. Wilcox says the association, with Hort NZ, is working with both Auckland and Waikato Regional councils to finalise policies to help protect quality soils and farmer access to water. Farmers are questioning whether enough is being done to preserve the high-value soil in Pukekohe that provides produce to New Zealanders all year round. “The new subdivisions in western Pukekohe......farmers are questioning whether that’s the best place for sub-divisions. “Those are in place now and we can’t wind back the clock....

Brent Wilcox says land and water pressures are putting growers at risk.

how do we ensure that more subdivisions don’t continue to gobble up fertile land. “We are working with the council in the hope policies are formed that don’t think such subdivisions are necessary and won’t be in future plans.” Wilcox says some have suggested the farmers could move further south as more land at Pukekohe is diverted to housing. Unfortunately, it’s not that simple. While some growers have moved further south, Pukekohe soils are quite unique in terms of their productive capacity; frostfree land and strong soils that can carry vegetables through winter are unique to the area. Wilcox family company, A S Wilcox & Sons has expanded beyond Pukekohe- growing carrots, onions and potatoes in Matamata and Ohakune . However, Pukekohe remains a key region for growing vegetables. “This area is still important strategically, for winter production of crops like potatoes and carrots for spring supply that’s not possible in many other places ...lettuce and greens are grown year-round here and is very important for

TOO MUCH WATER PUKEKOHE VEGETABLE growers are still reeling from the effects of prolonged wet weather this year. By mid-August, Pukekohe is approaching its annual rainfall quota of 1350mm, compromising crops and planting schedules. Pukekohe Vegetable Growers Association president Brent Wilcox says planting programmes remain behind schedule and there may be some supply issues this spring. “Pukekohe is important for spring production; we plant them in autumn and they grow through winter and we harvest them in spring and early summer.” Green vegetables, with shorter life cycles, were affected earlier this year. Long-term crops like potatoes and carrots may be in short supply soon.

winter supply. The soils here are best suited for vegetables...it’s important we maintain access to those soils where we can.” Pukekohe gets over 1350mm of rain every year but some growers use irrigated water to produce vegetables year-around. Wilcox says while farmers are cognisant of using water efficiently, if irrigated water was turned off they wouldn’t survive. Pukekohe has no community water schemes; individual growers apply for water consent and build

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their own irrigation infrastructure at considerable expence to provide irrigation for crops. Wilcox says to be charged on top of that again would be“an exercise quite prohibitive for growing units.” He says charging for water would add another layer of cost for growers, which had not been factored into business decisions to invest in irrigation. “We may be able to do at a price; these costs will have to be past on to consumers which will have significant impacts on the price of vegetables.”

THREE NEW appointments have been made to the Wools of NZ board after a rigorous search, says chair Mark Shadbolt. He says they needed to find the right directors with the required specific skills, and bring a diversity of thinking. The appointments “send a clear message about the drive to do everything possible to accelerate the company’s strategy to deliver sustainable profitable returns for grower shareholders”. “They are all well equipped to do the job we need today and, Mark Shadbolt importantly, have the ability to look to the future and think globally,” Shadbolt says. “It also sends an important message of confidence in the strategy behind Wools of NZ that we have been able to attract directors of this calibre, particularly given we are a young company, and with the challenges facing the industry as a whole. “Auditor Ian Marshall (independent board appointed director), who will also chair our audit and risk committee, will strengthen the strategic direction and financial acumen at the board table and within the company,” Shadbolt says. Meanwhile, he says independent board appointed director Rebecca Smith and grower appointed director Lucy Griffiths represent a deliberate decision to capture proven international sales and marketing expertise and experience, and the ability to tap into their global market insights and networks. “These new directors understand strategy, sales, branding and marketing, how to tell our story around the world and they acknowledge the disciplines and responsibilities important to a 100% grower owned company. They have all signed up to delivering consistent and greater returns to grower shareholders.” Smith is a director of the New Zealand Story -- a business growth initiative aimed at broadening the perception of NZ beyond natural beauty -- and the former general manager brand and communications of NZMP (Fonterra’s dairy ingredients business). Griffiths, who lives in Masterton, is a Nuffield NZ scholar whose research study (published 2015) looked at sheep milk from ‘farm to fork’.

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RURAL NEWS // AUGUST 22, 2017

NEWS 5

Record claims hit FMG

Gwyn Howells chief executive Meat Promotion Wales.

Welsh lamb producers worried about Brexit MARK DANIEL markd@ruralnews.co.nz

WITH A third of Welsh lamb sold in Europe, the UK’s exit from the EU is a concern to most producers, many wondering where their markets will be post-Brexit in March 2019. When Rural News visited the Royal Welsh Show in July, many Welsh farmers seemed to be in a never-never land. Since the Brexit announcement the pound has fallen in value against the Euro, so support payments calculated on the latter have effectively risen by about 15%. Much of the Brexit debate is about access to current markets after 2019 and whether access will only be granted after the imposition of import tariffs. Many farm leaders firmly believe it is better to act now in seeking new outlets for Welsh produce, rather than wait until March 2019. Typically, Welsh lamb is sold as whole legs in the UK, with other premium cuts going to Europe. The

farmers agree the most important issue is ensuring an ongoing carcase balance to ensure the whole item gets sold. In the UK home markets, meat consumption remains robust, though lamb has declined for 20 years, many consumers believing it is expensive and lacks versatility. Hybu Cig Cymru (Meat Promotion Wales) employs 40 people worldwide and has revenues of NZ$9 million annually, 70% of it spent on marketing. It raises revenue via a headage payment on slaughtered livestock of NZ$10 for cattle, NZ$1.87 for pigs and NZ$1.48 for sheep. Its marketing centres on debunking the myth lamb might be difficult to cook, exploring new ways of butchering carcases and presenting new retail packaging. It spends a lot of time in schools and colleges educating students and home economics tutors, and promotes the product to food service suppliers. The organisation also follows the

changing cultural landscape in the UK, where about six million Asian families are being targeted to accept different protein sources. Surveys show 5% of the population buys 90% of all cull ewes, so it sees good sales prospects in introducing these consumers to higher value cuts. The organisation also ensures Welsh meat is being sold under the protected geographical status it enjoys. Because the industry gets about NZ$5.35m support, political lobbyists and industry stalwarts want a guaranteed support structure until 2022 then a five-ten year transition period. “Many will baulk at the levels of support given to the farmers of Wales,” says Gwyn Howells, chief executive of Meat Promotion Wales. “But without such support the small family farm typical of much of Wales would cease to exist and the countryside would revert to a wasteland.”

RURAL INSURER FMG says paying out a record amount of claims, because of the Kaikoura earthquake, has seen it incur a loss for the latest financial year. It paid out a record $152 million in claims during the year – up $15m on last year. “Paying claims is one of the main reasons we exist, and being here for clients when the unexpected happens is something we take a lot of pride in,” chief executive Chris Black says. Black has blamed FMG’s loss this year of $3.3m on higher-thanexpected claims costs, along with $18m in costs associated with the Kaikoura earthquake as the main factors. “Overall the business is financially sound and one of the most well capitalised and fastest growing insurers in New Zealand. We have $226m in reserves, an A (excellent) credit rating and 2.25 times the minimum capital required by our regulator, the Reserve Bank of New Zealand.” Black says more farmers and growers, commercial businesses and lifestyle owners chose to insure with FMG during the year: client numbers grew by 6%. And the personal insurance side of the business also grew strongly with double-digit growth on the previous year.

be three-quar“We focus ters complete one on serving our year on in midexisting clients November. well and attract“We’ve ing new clients achieved this, by offering them while at the same something quite Chris Black time responding different from to the much higher level the rest of the market; of non-earthquake claims, part of this is providincluding those related to ing specialist risk advice and having a direct model ex-cyclones Debbie and anchored in a mutual phi- Cook. “We have used just losophy.” 20% of our reinsurance Black says FMG is cover in respect of the making good progress Kaikoura earthquake and with the Kaikoura earthcontinue to receive excelquake claims and it has lent support from our now settled 40% of its reinsurers,” he explained. 3300 claims and aims to

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RURAL NEWS // AUGUST 22, 2017

6 NEWS

Eradication remains the goal DAVID ANDERSON

AS MPI keeps working to eradicate Mycoplasma bovis, it has warned farmers to be prepared for possible longterm management of the disease. Some 200 South Canterbury and North Otago farmers met with MPI and industry representatives in Waimate on August 10, getting an update on the situation. Waimate mayor Craig Rowley chaired the meeting attended by MPI, Dairy NZ, Beef + Lamb New Zealand, Federated Farmers North Otago and South Canterbury Rural Support Trust. Farmers were told of the testing of affected farms and how to prevent possible spread and were urged to prepare for the possibility of dealing with the disease long-term. MPI deadliness and response director Geoff Gwynn told the meeting the likely extent of Mycoplasma bovis and its origins are as yet unknown and testing is continuing. But he conceded that if after testing the disease is found outside South Canterbury, and it cannot be eradicated, MPI will look at managing it long term. The disease causes untreat-

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able mastitis in dairy and beef cows, pneumonia in up to 30% of infected calves, ear infections in calves, abortions and swollen joints and lameness. MPI incident controller Eve Pleydell said no further farms, beyond the two farms in the Van Leeuwen Dairy Group (VLDG), had been identified as infected. The 16 VDLG farms were in “quarantine lockdown” lockdown and the company was “working co-operatively with MPI and others”. A restricted plan notice imposed on the VLDG and surrounding farms meant no stock movements unless authorised. Pleydell paid special tribute to VLDG owners Ard and Wilma Van Leeuwen, under a lot of stress and working cooperatively with MPI. She said the properties surrounding the VLDG farms had been tested once and had returned negative results, but at least two more tests were required before they could be declared diseasefree. Neighbouring farms were subject to “tight controls” and could not transport stock unless given the express permission of MPI. MPI was sampling and testing at the VLDG and surrounding farms and

was sampling nationwide. VLDG’s 16 properties would have 6284 tests, the 62 surrounding farmers 16,884 tests. “Over the next three months we will have over 30,000 samples to test.” Farmers at the meeting were urged to stick to biosecurity best practice including onfarm hygiene and care when bringing stock and other risk goods on to their properties. Answering a question from the audience, MPI said there was no evidence that sperm or embryo importing had been the transporter of the disease, but all options were still being investigated. The mood of farmers attending the meeting was much calmer than a farmer meeting the week before, with most satisfied by the response and answers given by MPI. South Canterbury Federated Farmers dairy vice-chairman John Gregan said farmers really got answers, which helped reduce their anxiety. “A lot of farmers were feeling quite anxious because so much was unknown, but with the line-up of speakers and information available we came away feeling a lot happier.” Gywn admitted it had taken MPI

time to resource-up after confirmation of the disease, but assured the crowd this had now been ramped up. “In the first week we probably took 10 samples; now we have 1000s of samples waiting to be tested. We are putting in resources to make sure the farms of this area are supported.” He encouraged farmers to be as cooperative as possible with MPI staff if they asked to take samples or come onto a farm. Farmers were also informed that bulk milk testing of 200 tankers had begun. Pleydell said MPI was trying to find out if the disease was already in other parts of the country. It is working with regional veterinary laboratories, Massey University and animal industry bodies to collect and analyse samples.

MPI’s Geoff Gywnn says farmers may have to live with Ml.bovis if it cannot be eradicated.

RURAL NEWS // AUGUST 22, 2017

NEWS 7

Farmers’ voices must be heard NIGEL MALTHUS

HEADING INTO an election that will be won or lost in the towns and cities, farmers must get a hearing on environmental issues, says Meat Industry Association chair John Loughlin. He says with environmental issues “quite significant” in this election year, any changes to environmental regimes must be balanced and fair. “The outcomes in our rivers don’t just reflect farming; they reflect towns and cities and industries as well.” He was speaking after the recent two-day Red Meat Sector conference in Dunedin, jointly hosted by the MIA with Beef + Lamb NZ. Loughlin says dairy is seen as a “greater culprit” than sheep and beef, but a lot of catchments in NZ

have both drystock farming and dairy. And they include towns and factories, he adds. “It’s important as we go through an election period in which emotional appeals are made to urban voters, that the appropriate perspective is applied and that the causes of water quality issues are correctly identified and correctly attributed as a basis for dealing with them. “This is because a lot of the rivers in the worst condition in NZ are around our cities and have nothing to do with farming. So we must be vigilant and make sure debates about water quality issues are factually based.” Identifying trade barriers, market access and the rise of manufactured protein as major themes of the conference, Lough-

John Loughlin

lin says the red meat sector faces challenges – as it has at every stage of its history. “At the moment, commodity prices are at cyclical highs but there’s a lot of work to do in the sector to make us less susceptible to the other side of the cycle.” BLNZ, MIA, MPI and MFAT are working

together on preserving lamb access to Europe and Britain post-Brexit, when that single administrative market will be split into two. “We’re pretty clear that the WTO gives us rights in respect of the tariff rate quotas we have at the moment,” Loughlin says. “We’re not seeing any signs of Britain or the

EU trying to resile from those but it’s a single quota for both markets. “Just trying to find a pragmatic answer that works for us and for the EU27 and for Britain is the work that’s going on there and that’s in the very early stages.” He says although Britain and Europe are only a tiny market for beef they are very important for lamb, particularly lamb legs into UK and France, and some rumps and tenderloins into the continent. “They are high-value markets where the best cuts of lamb are enjoyed by affluent people who pay high prices.” Loughlin also identified increasing challenges with non-trade barriers – the various rules and red tape which countries may put in place to improve their own food safety

standards but which may cause unintended issues for exporters to those markets. An example is when rules might call for meat to be frozen, but do not account for NZ chilled lamb being as safe as frozen product. Loughlin says that in most countries the farmers produce relatively short shelf-life fresh meat, while NZ has the techniques to produce long shelf-life chilled meat. “Often what makes us successful is that meat freezes at a lower temperature than water, whereas often when they write rules they assume that 0 deg C (water’s freezing point) is an appropriate distinction between fresh and frozen.” Developing countries are trying to lift

their domestic standards to first-world standards but unless the science is understood there can be unintended consequences. Loughlin says there’s “quite a bit of focus” for the sector on clearing up those issues as they arise and helping countries put in place rules for their own domestic production that work both for themselves and for us. Meanwhile, Loughlin put in a plug for more farmers to get involved in the annual sector conference, which was slightly disappointing in having a lot of representation from the processing, marketing and servicing sides, but not so much from farmers. “We made a bit of progress this year, but it would be a much better conference if more farmers attended.”

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RURAL NEWS // AUGUST 22, 2017

NEWS 9

Council jeopardises new water project NIGEL MALTHUS

MINIMUM FLOW limits proposed by the Otago Regional Council for the Manuherikia River in Central Otago could undermine the Manuherikia Water Project, says former regional councillor and local farmer Gary Kelliher. Several small irrigation schemes based on the river and the 1930s-vintage Falls Dam near St Bathans are amalgamating in a project that envisages raising or replacing the dam, and upgrading other infrastructure, to improve storage and security of supply. On the back of a Crown Irrigation Investments development grant of $815,000 announced on August 2, a new umbrella company, Manuherikia WaterCo, is being formed and directors will soon be appointed. But Kelliher said the big risk to the project is the minimum flow numbers proposed by the ORC. He says that in a dry summer, the highest of the minimum flows proposed by the ORC would be so high that no irrigation would be possible and even then the dam and the river would both be dry by Christmas. At

NOT JUST FARMERS IRRIGATION NZ chair Nicky Hyslop has emphasised the diversity of land use under irrigation – “contrary to popular opinion” – and said a lot of work is being done by individual farmers, irrigation schemes and industry to improve irrigation’s environmental footprint. She pointed to the impact and opportunities irrigation had provided

the lowest of the proposed flow limits, some irrigation may be possible but it would soon have to be shut off and the dam would be empty by March. “We totally disagree with those numbers, to the point that they would actually completely degrade the river. They would empty the river whether you had irrigation or not,” says Kelliher. “I believe nobody wants that.” Kelliher, who is deputy chairman of the Manuherikia Catchment Water Strategy Group, said the ORC had chosen to view the project solely as irrigators rather than the broad-based community group it is, and not utilise

for her and her husband’s farm, at Levels near Timaru, once they took shares in the Opuha scheme. “We were in a position where we were just not going to be economic,” Hylsop says. “Certainly we are economic now and there’s a whole lot of spin-offs from that, that have gone further – well and truly outside our farm gate and into the community.”

its information in setting the proposed flow limits. “We will have to suffer our way through the minimum flow process and the likelihood is it will probably end up in the Environment Court, which is a real shame. I think the Manuherikia was one that actually could have stayed out of the Environment Court if all parties had been willing to fully engage and been understanding of each other’s positions. And the regional council certainly hasn’t helped that.” Kelliher said they are now waiting for the ORC to come back with an economic impact report. The coun-

Gary Kelliher

cil had received many submissions saying its flow limits were too high and it would be “an awful shame” if they just ploughed ahead with their own numbers. The Manuherikia River rises between the St Bathans and Hawkdun

Ranges and flows south to join the Clutha River at Alexandra. The existing small irrigation schemes largely depend on historic mining water rights. They are due to expire in 2021, which has been a driver of the upgrade and amalgamation project.

RURAL NEWS // AUGUST 22, 2017

10 NEWS

Is the Kiwi farm endangered? PAM TIPA pamelat@ruralnews.co.nz

LAB-GROWN meat will be produced at $2/kg within five years and plantbased burgers that bleed are now in US restaurants and supermarkets, a recent conference heard. Traditional livestock based food companies are investing heavily in the new ‘animal-less’ technologies. The Kiwi farm is endangered by these developments, by how endangered depends on our response to changes which will transform food production, says Dr Rosie Bosworth, senior strategic planner, Rethink X. New technologies have opened the door on a new framework of agriculture -- the latest one in 10,000 years of change, representing the second domestication of agriculture, she says. “What does this mean? It is essentially protein without animal – or food without a farm,” she told an Environmental Defence Society conference. Cellular agriculture – as used with lab-grown meat -- is culturing animal cells in the lab, says Bosworth. “It is not just in meat; it is in all aspects of agricultural products -- milk,

meat, eggs, seafood, fish, leather... all sorts. So it covers the whole agricultural value chain. The companies harnessing this cellular agriculture are increasing in droves.” The first lab-grown burger in 2013 cost a hefty $330,000. Commercially focused companies like Memphis Meats have gone on to manufacture burgers that are goey, fatty and tasty just like a normal burger. They initially cost $1000 to make but the costs are reducing daily. In five years the cost is expected to be $2/kg. Bosworth says so-called ‘clean meat’ is eight times better at calorie conversion. It takes 23 calories to make one calorie of beef on a farm but only three calories to make one calorie of beef using cellular agriculture. There is a 10 times reduction in water, land use and greenhouse gas emissions, she claims, based on US production systems. It takes four to six weeks to harvest cultured meat in a lab as opposed to growing a calf for 12-18 months. Clean meat, or cellular agriculture, is safer too, she says, when compared to feedlots, battery farming and factory farms. There is zero salmonella,

know if they can match those numbers,” she says. “You also have antibiotic free, lactose free, cholesterol free making it the perfect creamy beverage for some people who can’t handle some of their milk right now.” Plant-based proteins are another major new food technology, she says. Impossible Burgers uses plantbased materials (not cellular agriculture) that bleed, drip and taste like “a bloody burger”. They aim to be in 1000 restaurants by the end of the year and produce 4 million patties a month. They are not in the supermarkets but other companies like Beyond Meats are. They also use plant based proteins and their products are already sold alongside beef in the supermarket. They are in Safeways, Whole Foods and universities across the US and have just entered the Asian markets. Big Foods are investing in this. “They see it as a threat and they want to buy into it and be part of this movement instead of being disrupted by it.” Tyson and General Mills are buying shares in companies developing the new technologies. Tyson is one of the biggest animal food producers in the US that use factory farm methods.

Dr Rosie Bosworth

no antibiotics, no hormones, the meat stays fresher for longer, there is less spoilage and reduced risk for foodborne illnesses. The cells from one cow can produce enough beef to feed a small country for a year, she says. It is not just ‘clean meat’ using cellular agriculture, she

says. Perfect Day is producing milk and dairy proteins without cows milk. They have not yet hit the market but should be watched. They claim 98% less water use and 65% less energy use. “I would hazard a guess that even if Fonterra and NZ dairy really do lift their game in sustainability, I still don’t

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RURAL NEWS // AUGUST 22, 2017

NEWS 11

Beef herd up, sheep flock flat BEEF + Lamb New Zealand says that during the past year the country’s beef herd increased by 2.8% to 3.6 million head. Meanwhile, it says the decline in the sheep flock has slowed sharply as numbers recovered in key regions after drought and other challenges. The annual stock number survey conducted by BLNZ Economic Service highlights the continued growth in beef production. The largest contributor to the increase in beef cattle was a 5% lift in weaner cattle numbers. It believes this reflects the high cost of buying older cattle as replacements and good grass availability.

However the size of NZ’s beef breeding cow herd did not change, according to BLNZ Economic Service chief economist Andrew Burtt. Meanwhile, Burt says the number of breeding ewes fell in most regions of NZ and by 1.9% overall. The exception was in Marlborough‑Canterbury where there was a small increase (+0.3%) following the prolonged drought. “Ewe numbers decreased 2.6 % to 8.7 million in the North Island, while South Island numbers dropped 1.1% to 9.1 million,” he says. “The decrease in the North Island reflects residual effects of last

HIGH-TECH, HIGH VALUE THE ANSWER IS THE Kiwi farm endangered? Well, yes and no, says Dr Rosie Bosworth. “It depends where they choose to play, she says. “Plain Jane” doesn’t cut it, she says, referring to commodities like carcases or milk powder. “How do we play in this? High-tech, high-value food – I know we’ve heard this a lot; we need to move up the value chain. “We need to harness plant, crop and seed biotechnologies, and design plants from the ground up using science, biology and technology. Then there is medicine from plants -- creating a medical sector from our agricultural sector. “Licencing this IP, harnessing UV lighting to improve the quality of the medicine, the nutritional aspects of our plants of our foods. Cross-collaborate between our universities; no more working in scientific silos.” We need to tap into the emerging market in plant based proteins and customise nutrition with plant products, she says. “Tell the story of our premium products that we already produce: we are the best, the most sustainable, the most pastorally raising agricultural nation in the world and we need to profit from that. We need to tell the proper story, but be true to the claims we make. If we claim pasture raised, we can’t be halfway there. Spectral analysis is coming which will enable us to see what is in our foods via our smartphones. “There will be no room to play if PKE is in your food.” “We need the story that we have in NZ: we have the most luscious land, the best produce in the world and we can move from being the economy class of food to being in the business class, if we just take a strategic and unified approach to how we move up the value chain.” We need to harness the new technologies correctly, she says. The threats of new food production technologies “need to have us thinking and moving fast” but they also provide opportunities. – Pam Tipa

year’s facial eczema outbreak. However, nationwide there has been more emphasis on retaining ewe hoggets, which indicates some rebuilding of the flock is occurring.” Consequently, the national hogget flock is up on last year. “Hogget numbers

increased 1.7% to 8.7 million, largely due to replacement ewe hoggets being retained on the East Coast to build up flocks, and an increase in Marlborough-Canterbury to take advantage of the improvement in feed supplies after a number of difficult years caused

by drought and natural disasters.” Burtt says ewes were in good condition at mating and going into winter, due to feed availability. “Pregnancy scanning of ewes reveals good pregnancy rates in the North Island, but the later season as a

result of climatic differences means it’s difficult to generalise about the South Island.” Despite the small decrease in the number of breeding ewes, the lamb crop is expected to be up 1.1% – to 23.5 million – 300,000 more than last season.

“This is the result of several factors, including continued improvements in productivity by farmers leading to better ewe lambing percentages, good feed supplies and a lift in the number of ewe hoggets mated.” @rural_news facebook.com/ruralnews

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RURAL NEWS // AUGUST 22, 2017

NEWS 13

A ‘sad slur’ on dairy sector SUDESH KISSUN sudeshk@ruralnews.co.nz

THE RECENT case of animal mistreatment on Invercargill farms is a “sad slur” on the good reputation of New Zealand dairy farmers, says DairyNZ. It says what happened at Castlerock Dairies Ltd in 2015 was appalling and it welcomed Ministry of Primary Industries decision to prosecute the company and two managers. Castlerock and its two managers, Jared Matthews (41) and Dean McMillan (44), were fined a total of $60,000 in the Invercargill District Court last week for the worst case of long-term neglect seen in the dairy sector in the South Island. They had earlier pleaded guilty to eight charges under the Animal Welfare Act. A total of 193 cows had to be euthanised and 761 required veterinary treatment. Fourteen vets were required to spend weeks on the property, initially on their own, later assisting MPI staff. Matthews and McMillan both manage 700ha farms with 2000 cows each. Both men had overall responsibility for animal welfare on the two properties and the maintenance of farm infrastructure. Castlerock Dairies Ltd was fined $37,500 and ordered to pay prosecution costs of more than $11,500. Matthews and McMil-

SHOCKING MPI MANAGER of compliance investigations, Gary Orr, says a senior attending veterinarian with over 18 years experience described the situation as “disturbing” and the extent of animal welfare issues on the farm as almost beyond comprehension. “He described it as unparalleled and unprecedented in his direct experience. Another witness described it as “horrible” and the worst case of neglect she had ever seen. “It is MPI’s view that the seriousness of the situation should have been immediately obvious to all concerned. The suffering of these animals was fully preventable. “As well as the humanitarian grounds, failure to meet animal welfare requirements could have serious consequences for the wider agricultural industry. “Fortunately, offending on this scale has been rare in New Zealand.”

lan were fined $10,000 each, ordered to pay court costs of $130 each and were both sentenced to 275 hours community service. MPI brought charges against the company and the two managers after being advised in 2015 of serious animal welfare issues at the properties. The offending involved a serious failure to maintain the lanes used by the cows to get to the milking shed on both properties. The lanes needed constant maintenance to prevent lameness but this was not done. By the time MPI became involved, the lanes had been torn to pieces by constant use and were in places knee deep in thick mud and excrement. Any maintenance of the lanes was either inadequate or simply not done when required.

Helen Thoday

MPI manager of compliance investigations, Gary Orr, says the lameness suffered by the animals was catastrophic with animals presenting such a degree of lameness that they could not be treated and were in significant pain. “The walk to the milking sheds, because of the mud and the distance from the paddocks to the sheds, would take up to three hours one way during which time the lame animals would have been in significant pain. “The lanes had not

been adequately maintained for about two years which is what contributed to the situation. “The lack of work on the tracks was known to the defendants. As the animals walked long distances for milking, the lameness got worse. The tracks weren’t repaired to prevent this.” DairyNZ’s animal welfare specialist, Helen Thoday, says it’s “just not okay” for animals to be treated in this manner. “The farming community around New Zealand will be appalled; they care about their animals, and treat them with care and respect,” she says. “This case of mistreatment is a sad slur on the good reputation of the thousands of good dairy

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RURAL NEWS // AUGUST 22, 2017

14 NEWS

New hope for Synlait deal CANTERBURY MILK processor Synlait has announced a new supply agreement with New Hope Nutritionals for production of their infant formula brands. Synlait says the arrangement will provide certainty of supply for both companies over five years. New Hope Nutritionals is a joint venture between New Hope Group and Synlait Milk Ltd. “This supply agreement has

clarified our infant formula partnership with New Hope Nutritionals for the near future, allowing both of us to plan with confidence,” managing director John Penno says. “The agreement secures a threefold increase from current volumes over the five year period.” He adds the agreement will also underpin applications to register New Hope Nutritionals’

Akara and e-Akara infant formula brands with the China Food and Drug Administration (CFDA). Synlait says its infant formula volumes with New Hope Nutritionals and other customers will be met by blending and canning capacity at the company’s Dunsandel site and eventually at its new Auckland plant. John Penno

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RURAL NEWS // AUGUST 22, 2017

NEWS 15

The agricultural sector accounts for 14% of all bank lending with the dairy sector making up 68% of this figure.

Banks may get fed up with highly indebted farmers NIGEL MALTHUS

BANKS MAY increasingly lose patience with farms with very high cost structures and very high debt burdens, warns Chris Bloor, financial systems analyst at the Reserve Bank of New Zealand. Bloor told the recent New Zealand Institute of Primary Industry Management conference at Lincoln that $5 billion in extra debt was taken on by the dairy industry between 2014 and 2016. Expressed in terms of debt per kilogram of milksolids produced, and using $30 debt/kg MS as a benchmark, Bloor said that in 2014, 26% of the debt in the industry was to farms with debt around that mark, but that figure is now 44%. “That’s a significant increase of the very highly indebted,” he said. When debt servicing is added to working expenses, the highly indebted farms tend to have higher cost structures, and also tend to have less fat to cut should there be another downturn or a rise in interest rates. Bloor calculated that farms with more than $40 debt/kg MS would need a break-even milk price of about $5.50. However, just a 1% rise in interest rates would push these farms towards needing a break-even price of $6. “Banks will become increas-

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ingly uncomfortable with some of these farms,” he says. Bloor’s opening remarks were that the Reserve Bank had not asked the commercial banks to do anything about the dairy industry, and how they handle sector debt is up to them. He says the banks are starting to tighten all lending, not just agricultural. While he identified both the 2008 global credit crunch and the recent dairy price downtown as factors in farm debt, Bloor said farmers’ debt had been increasingly markedly for at least 20 years.

Bloor said the vast bulk of farmers are now making profits again but some are still not. “Talk about bank behaviour and how they’re going to respond, they’re going to be looking at farms at the bottom end of this distribution and saying ‘What are you doing, guys? “This does not look sustainable. Can you actually continue to service debt?’ ” Bloor says the Reserve Bank has done a lot of with DairyNZ trying to understand how the sector would handle low payouts, but the scenarios generally are not as bad as feared, because of

In the 1990s a typical farm had debt of about 100% of their annual income. Now debt averages about 275% – about 200% for sheep and beef farms and about 350% for dairy. “There is probably no other sector in the NZ economy with as much debt as the dairy sector.” Bloor says this bothers the Reserve Bank because agricultural sector debt is a large portion of bank balance sheets: the agricultural sector accounts for 14% of lending -- 68% of it dairy debt. He added that farm income volatility makes that debt more

several factors, the first being that the milk price recovery has been “very timely” and there has been a huge amount of cost cutting. However, a “really big factor” has been bank behaviour. “We went through this period of saying to banks ‘Don’t panic, take the long term view here. You should not be foreclosing on farms if they’re going to be sustainable in the long run.’ ” However, it all means that balance sheets are more stretched now than a couple of years ago. Bloor said farmers will probably see less patience from their banks in future.

risky than household or business debt. “Over the last 10 years we’ve seen commodity prices go all over the place. We’ve had very good years in the dairy sector in particular and we’ve just come through two very bad years.” Bloor says strong dairy production growth in Europe between 2013 and 2016 was seen by the Reserve Bank as the big downward driver of prices; not until European production eased during 2016 did prices start to recover. @rural_news facebook.com/ruralnews

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RURAL NEWS // AUGUST 22, 2017

16 NEWS

Southland’s new milk plant on schedule NIGEL MALTHUS

MATAURA VALLEY Milk’s new plant near Gore is on track to begin production at the start of next season. The venture, first

mooted by local farmers and businessmen nearly 10 years ago, took off in 2016 with the major investment backing of the China Animal Husbandry Group. Construction of the

$240 million factory at McNab began early this year. Commissioning is expected take place through mid next year with the first production in August 2018. General manager

Bernard May says the company aims to be the “world’s best nutritional business,” manufacturing and producing premium infant milk formula mainly for export. He says the plant will

Dave Yardley (left) and Bernard May.

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be the first in Australasia to be certified not only to MPI standards but also to USFDA standards. It is also unique in having external auditors monitoring all construction. Farmer suppliers will need to meet more stringent farm practices including refrigerating milk to lower temperatures to meet its standards and in turn will be paid accordingly, said May. “The farmer shareholders already on board are embracing the opportunity of superior returns by supplying milk into a fully integrated nutritional business.” May said continued recruitment of milk supplier/shareholders and staff will be major focuses in the next six months. Farmers have shown keen interest in becoming shareholders and he is confident of having the 25 to 30 needed by December, May said. “There’s competition for milk, and farmers are looking at where they can get the best return for the milk they sell and that’s why it’s particularly attractive for a farmer to supply MVM.” China Animal Husbandry Group is one of the largest of China’s state-owned enterprises working in the agriculture sector. Hamilton-based BODCO, itself partly owned by CAHG, also has a small shareholding in

Mataura Valley Milk and will handle the canning of some of MVM’s product. With farmers’ shareholding expected to reach about 20%, CAHG’s holding will be diluted to just under 72%. The McNab plant is expected to process about 500,000 litres of whole milk a day, producing about 30,000 tonnes of infant formula a year at full capacity, with 80-85% exported. It will have about 65 fulltime employees. Mataura Valley Milk milk supply manager Dave Yardley said farmers he has met to date are excited about the opportunity and he has a busy schedule of meetings. “The small size of the business, the connection they will have as shareholders, and the fact we’re going to the higher end of the value-added market are piquing farmer interest. “Positivity has returned to the dairy sector so people are seeing it as a good time to review where they are, and whether they have a better choice out there,” Yardley said. May said the plant’s construction is on schedule with the drying tower already at its maximum 40m height. “We’re confident that right here now, we’re building the world’s best nutritional formula plant,” he said.

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CALCULATE YOUR POTENTIAL INCREASED R.O.I. USING CYDECTIN POUR-ON AT WWW.CYDECTIN.CO.NZ The cost of treatment is based on 420 cows at 500kg live weight, pay-out value of $6.00, 4.26 kg milk solids per cow increase based on the average result from three NZ trials when treated at late lactation, dry off and four days after calving, 17L Cydectin Pour-On retail price of $1,769. Actual results may vary. 1. A.W. Murphy; The effect of treatment with Moxidectin, a long-acting endectocide, on milk production in lactating dairy cows. World Buiatrics Congress Sydney 1998. Zoetis New Zealand Limited. Tel: 0800 650 277; www.zoetis.co.nz. CYDECTIN is a registered trademark of Zoetis Inc. or its subsidiaries. ACVM No. A6203. CT2089. ZOE0014_ROI

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RURAL NEWS // AUGUST 22, 2017

18 NEWS

The wet, the bad and the ugly PETER BURKE peterb@ruralnews.co.nz

FLOODS IN April and continuing rain are costing some Bay of Plenty farmers up to $700 per cow to repair damage and buy extra feed.

Their average herd being 370 cows, these farmers face an extra $260,000 in operating costs. Bay of Plenty Federated Farmers president Darryl Jensen, a dairy farmer, cites the cost of

extra supplementary feed, off-farm grazing, pasture renewal and repairs to farm infrastructure. “The wet trying conditions are making life very difficult and I am still personally involved in flood recovery around

the Whakatane Eastern Bay district. We are still dealing with issues from that and the farmers want to see some sunshine to help dry things out. “A lot of supplement is being used because the ground is so wet and pas-

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Parts of Hauraki Plains flooded earlier this year.

ture growth rates are not where they need to be; farmers are mindful of the need to minimise pasture damage.” Jensen says the higher payout is very welcome by farmers, especially those hit badly by the floods. Despite the wet conditions calving is going pretty well but they are making a tough job tougher. He hears of vets having to do more assisted calvings than normal. “I have spoken to a few farmers whose stock has come back from winter grazing not quite in the condition they wanted them to be in; they put this down to the hard conditions that have made life a bit more difficult for everyone.” He says the farm-

ers struggling the most are those in wet, low lying areas; those on the slightly elevated hill country are faring better. In northern Waikato, pasture damage on some farms is as high as 80-90%, says Feds provincial president Andrew McGiven. The ongoing rain is compounding the problem caused by the floods in April. It takes only 3mm of rain for the ground to be suddenly sodden again. “I’ve never seen so many pugged paddocks. The guys with standoff facilities have been using them overtime -- I certainly have. We thought we were going to have a good autumn but it’s turned out a bit of a nightmare.” McGiven says most

dairy farmers, himself included, are using more supplement than normal and pasture utilisation has been poor. Some farmers have had to regrass their pastures twothree times and other farms are so badly damaged they won’t support grazing for a year. “Everyone is tired of the rain. We are all doing our best with what we have. We are well aware of the requirements under animal welfare rules and are trying to look after the stock which is where our money comes from and minimise the pugging.” McGiven says most guys coping well have a plan in place to deal with their predicament; and they appreciate the help from the Rural Support Trust and Feds.

FARMERS WORN OUT DAIRY FARMERS are physically and mentally worn out by the wet conditions, says Federated Farmers Dairy section head Chris Lewis. Most have handled the situation well and stock are looking good but the wet weather makes it hard for farmers to cope. “I am seeing aquifers and springs pop out of places I’ve never seen them in before so the groundwater must be fully up to the limit. It’s causing issues in paddocks where

you four-wheelers or two-wheelers stuck. “We’re day in and day out in wet weather gear that’s muddy and so weighs another 10kg; it slows you down a bit. You definitely know you have done a hard day’s work because you are physically worn out.” Lewis say calving is slow and empty rates are higher than a year ago. He predicts August and September will not be big production months.

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RURAL NEWS // AUGUST 22, 2017

20 NEWS

Lab-grown food a major threat PAM TIPA pamelat@ruralnews.co.nz

THE THREAT to farming from new food technologies is real, says Landcorp chief executive Steven Carden. Production systems that can make burgers in a lab or use plants to

replace meat or milk are attracting huge investment, he says. But the biggest threat to New Zealand farming is complacency. To meet the challenge Landcorp is experimenting with new ideas such as milking deer for highend cosmetics and hydro-

ponic growing in central Wellington. Carden’s comments followed a presentation on ‘Disruptive Food Technology’ at the Environmental Defence Society’s Auckland conference which emphasised the investment and progress in alternatives.

Carden responded “we don’t disagree at all: we see the same trends, the same shifts in technology, the same consumer demands”. But as the chief executive of a $2 billion business he has the job of making this transition to the future. Landcorp is

studying new farm systems. “Any protein source now that historically has come from animals can be replicated from plants with a taste profile that is virtually identical,” he says. “The implications of all that after 130 years of

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Landcorp’s Steven Carden says the threat to NZ farming from new food technologies is real.

farming animals -- I speak as someone responsible for looking after 900,000 animals day by day -- is that we will have to diversify our land use to farm more plant-based than animal-based. “There is no doubt that with the amount of money going into production systems for alternatives such as the Impossible Burger, NZ must forever surrender being a low cost producer of animal protein or animal protein-like products. “We will absolutely be out-competed by this technology; their goal is to feed at least half the world’s population with these products.” NZ’s livestock industry has to go high-end. However, Carden says the animal protein industry globally – which accounts for half the world’s workforce – will fight back. It is seen as a massive threat and the battle will intensify, he believes. Carden says farmers hate hearing people say they need to ‘move up the value chain’ because how to do it is a hard question. “So for something as simple as meat… we are thinking really hard about how we produce the best flavoured meat with real functional benefits to you.” Carden says Landcorp is increasingly trying to produce milk that is different. “We don’t want to produce commodity milk because there will be substitutes much cheaper to produce. We have to produce high-end, grass-fed PK-free milk that we hope we can get a premium for. “We have to start

thinking much more progressively about the animals and what they can produce for us.” Carden says NZ has some of the best sheep farmers in the world, but hadn’t thought to milk them until recently. Sheep produce “a highly nutritious milk” so Landcorp has started a sheep milking business. “We’ve even started to milk deer – not a job for the fainthearted,” he says. Few countries farm deer and Carden thinks Landcorp is the only company in the world milking them. “It produces this unbelievable substance which we are now turning into handcreams and facecreams for the global market.” People have asked about drinking the milk, but a latte would cost $23. “But you’ll feel 10 years younger,” he jokes. “So when people talk about going up the value chain and adding value and going niche, we are doing it… but it is hard and very costly. And it takes a long time but it is possible.” Landcorp has set up its first hydroponic farms in central Wellington, on a small scale so far. “We currently feed ourselves lunch… but we are experimenting.” A great irony, he says, is that agriculture is returning to its roots, “going back to nature having far more respect for what nature can do”. Carden sees much more opportunity than threat in the coming changes. “But I am well aware that those threats are coming and the only danger we have is complacency.”

RURAL NEWS // AUGUST 22, 2017

NEWS 21

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figures. Some 58,000 people are employed full- or part-time on Welsh farms, and 223,000 work in the Welsh food and drink supply chain. This makes it the largest employer in the country, creating a NZ$10.72 billion revenue stream. Unlike the NZ Fieldays, much of the emphasis at the Royal Welsh centres on livestock of all types – fowl, goats, pigs, sheep, beef and dairy cattle and equines of all shapes and sizes. The numbers speak for themselves: 140 goats,150 pigs, 660 beef, 840 dairy cattle, 3000 sheep and 3100 horses were entered in the 2017 event. Alongside these live exhibits much emphasis is also placed on the complete food supply chain, with many industry partners taking space amongst the 1100 trade exhibitors.

Meat procurement businesses – at wholesaler, retailer and user levels -- work alongside industry promotional bodies such as Hybu Cig Cymru (Meat Promotion Wales) to promote the uniqueness of Welsh produce, particularly lamb and beef. Likewise, a huge food hall in the centre of the show carries on the theme. This features a wide variety of Welsh food and drink – from the smallest boutique makers to the largest multinationals like the wellknown Marks and Spencer. The event’s main theme is the value of Welsh agriculture to the nation. This is shown as a desire to interact with urban dwellers and explain why home-grown food is great value, seeking to dispell the myth that fresh food is difficult to prepare. A host of promotional agencies show Welsh urbanites innovative ways to prepare produce and serve up healthy and nutritional meals, a premise that would not go amiss at many NZ events.

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Wool levy a waste PAM TIPA pamelat@ruralnews.co.nz

IF FARMERS who supported a wool levy added up what they would have saved by not paying it and invested in one of the alternatives available, the wool industry would better off, says Milton farmer Rick Cameron. Centralisation is not the answer, he told Rural News. The wool industry needs to reinvent itself through different initiatives of specialised innovation in which the farmer can keep some control. Centralised organisations

become politicised and barriers are built up between the various sectors of the industry, he says. Under central planning models, organisations start to see levypaying farmers as their ‘clients’, instead of the customers who buy the product. They work to keep these ‘clients’ satisfied and disguise their own waste, says Cameron. Cameron believes the tide will turn eventually against synthetics towards more ‘regenerative agricultural’ practices. However, he says some manufacturers have been turned off by the quality of the wool, and

that distrust is far greater than he realised, until recently. “I am afraid only total transparency will fix that all the way to the consumer.” Cameron says he is a 100% sheep farmer with 27 years looking for an alternative model with the right minds. He believes he has found it in a current innovation he is involved in, but says it is too early to discuss the details. He is optimistic it will bring good margins for the farmers involved. But Cameron says the management system is based on co-ordination rather than cooperation.

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RURAL NEWS // AUGUST 22, 2017

22 NEWS

More stainless steel, less milk SUDESH KISSUN sudeshk@ruralnews.co.nz

NEW ZEALAND dairy processors could struggle to get enough milk to operate their plants, according to a new report by Rabobank. The report ‘Survive or Thrive – the Future of New Zealand Dairy 20172022’ says processors will struggle to fill existing and planned capacity in coming years as milk supply growth slows. Three new plants are in the pipeline: Fonterra spending $150m on two new cream cheese plants at Darfield, Open Country Dairy building a new

Greenfield pant at Horotiu, Waikato, and Mataura Valley Dairy building a new $240m plant in Gore. Farmers in Waikato, Southland and Canterbury are the most likely to benefit from increased competition as a result of the new plants. However, Rabobank says capacity construction has run ahead of recent milk supply growth and appears to factor in stronger milk supply growth than the bank anticipates. Rabobank dairy analyst Emma Higgins says milk supply has stumbled during the past couple of production seasons and, while the 2017-18 season is likely to bring a spike in milk produc-

KEY MESSAGES IN THE REPORT * A slow-down in milk production growth will have implications for the supply chain * Capacity construction has run ahead of milk supply growth and appears to factor in stronger milk supply growth than anticipated, leading to more cautious investment in capacity over the next five years *Companies and co-ops will need to review their strategies for obtaining and maintaining their milk base * Farmers will likely benefit as increased competition for milk brings sharper pricing and a wider range of contractual options.

The new Mataura dairy plant under construction at Gore.

tion of 2-3%, it expects the brakes to be applied and milk production growth to slow to or below 2% for the following four years. This slow-down in production will have implications for the supply chain, Higgins says. “There is a risk for processors that they may not achieve optimal capacity utilisation going forward, as milk supply slows. It will be a more challenging and competitive environment to get the necessary throughput for those plants,” she says. “We have seen extra capacity come online over the past five years, largely to deal with the wave of milk NZ has

produced. If we see a slow-down in milk production growth, the risk is that processing plants could be operating at sub-optimal capacity utilisation.” The second implication is that processors will need to review their strategies for obtaining new or maintaining their existing milk supply. There are at least three options for processors to maintain their milk base: protecting and defending the status quo milk supply, aggressively recruiting new suppliers or expanding into new territory, or acquiring existing production assets with milk supply attached. “Regardless of the supply strat-

egy employed, processors will need to deliver more competitive returns to farmers to ensure supply ‘stickiness’, either by adding value to their product mix where possible and passing some gains to farmers, or efficiently producing commodities at low cost,” Higgins says. But both of these strategies come with risk. “Value-add is easier said than done and requires exceptional execution. Not only does it require additional capital outlay, but it also requires longterm dedication from the suppliers and the company to see returns come to fruition. Producing commodities at low cost is a possible strategy, but a tight rein on cost control is required and there is no guarantee of relief from global market volatility,” she says. Higgins says the increased competition for milk is most likely to impact on Fonterra, Open Country Dairy and Westland, these being the processors most exposed to adverse shifts in their existing supply base in relation to their current plant capacity. @rural_news facebook.com/ruralnews

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RURAL NEWS // AUGUST 22, 2017

NEWS 23

Trends aid butter’s golden run PAM TIPA pamelat@ruralnews.co.nz

GLOBAL DEMAND for butter is “going through the roof” and follows the trend toward natural authentic whole foods, says Fonterra global foodservice director Grant Watson. It is one of 11 consumer trends he pinpoints, many playing to Fonterra’s strengths. “Increasingly people want to eat foods as nature intended them to be,” he told Rural News. “They want to eat real butter, real cream and real milk with the great taste that comes from natural products.” Butter has now surpassed margarine sales globally, reversing a long trend, he says. Westernisation is driving trends in China, including that view of butter. “They are well connected with technology… it doesn’t matter what part of the world you are living in, these trends are picked up quickly. “Another obvious trend is ‘good for you’: gut health, digestion, bone health and these depend on stage of life -- pregnant mum, baby, infant, right through to healthy ageing and everything in between. People are becoming more conscious of how nutrition plays a role; that is relevant for us in the world of dairy.” The sustainable diets trend, with foods produced with less environmental impact, is evidenced in the popularity overseas of grass-fed grazing. “There’s grass-fed grazing because cows should be in paddocks eating grass, but it also affects the visual characteristics, the flavour…. you only have to have butter in the US to know that it’s white looking and bland. “Provenance sits over the top of that. We have a strong reputation for grass-fed farming prac-

tices, quality and food safety so in markets such as China a lot of value is placed on that. They recognise the Anchor brand and know what it stands for.” The importance of protein in everyday life is an important trend, historically seen in the ‘gym set’, but scientific research shows benefits for all adults from more protein intake. The trend towards less sugar has been around for some time. Watson says foodservice customers are focused on children consuming less sugar in drinks. “Look at a dairy based beverage versus a sugar based beverage to know which will give you the right nutrition and which won’t. It is important that we are relevant in that space.” Consumers are also more discerning about snacking choices and are looking for healthy convenient single service formats, Watson says. “People are looking for ‘grab and go’ foods that are healthy and conveniently packaged.” Gourmet convenience is another trend all around the world with programmes like Masterchef inspiring the desire to create a culinary experience at home. “My Food Bag has done a fantastic job of bringing that to life as have many of the TV programmes.” But consumers still want a treat, a permissable indulgence. “It might be something like high quality Greek yoghurt blended with nice berries.” ‘Good enough to Tweet’ or ‘photo before fork’ is another huge trend. “Before they pick up their fork, they take a photo of it. Whether it is sharing with their network or some hero they are following on Twitter. What’s the latest restaurant or what’s the latest food craze … it is powerful.

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“Having the right cooking cream in pasta that sticks to the pasta, that doesn’t separate, that looks beautiful… those things are important in photos. “When you are having pasta you are not thinking about whether it is a highly innovative cooking cream; it is whether our

customers know that.” Social media is also important for beautiful bakery products and Fonterra aims to set up customers to succeed. Dairy ‘premiumisation’ is another trend in the desire for high-end dairy as living standards improve. In fact Watson says any dairy in their key

channels is viewed as premium because it is dairy rather than non-dairy. “But also because it has the Oceanic flavour, the New Zealand provenance story, and depending on the channel or business type we operate in – you go into a bakery, it’s the cream that pops, it’s the cream that’s the

hero so people are looking for high end, premium and we can play a nice part in that treat.” Watson says these key trends are relevant not just to food service but NZ dairy as a whole.

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RURAL NEWS // AUGUST 22, 2017

24 MARKETS & TRENDS L amb - PM 16.0kg

BEEF PRICES

LAMB PRICES -5

Last Week 5.55

M 2 B ull - 300kg

-5

5.50

5.55

5.50

Change

c/kgCWT NI

P 2 Steer - 300kg

2 Wks A go 5.60

Last Year 5.60

S te e r - P2 300kg

-5

5 .5 5

n/c

5 .4 0

P 2 Co w - 230kg

-5

4.45

4.50

4.50

B u ll - M2 300kg

-5

5 .5 0

n/c

5 .1 0

M Co w - 200kg

-5

4.45

4.50

4.50

9 .1 5

Lo cal Trade - 230kg

n/c

5.75

5.75

5.65

n/c

5.40

5.40

5.40

M 2 B ull - 300kg

n/c

5.10

5.10

5.20

P 2 Co w - 230kg

n/c

4.40

4.40

4.30

M Co w - 200kg

n/c

4.40

4.40

4.30

Lo cal Trade - 230kg

n/c

5.70

5.70

5.55

Ve n is o n - AP 60kg

9 .1 0

+5

North Island 16kg M lamb price

6.0

12-Nov

5.0 4.0 12-May

12-Jul

12-S ep Last Ye ar

12-Nov This Ye ar

$/kg

20

5yr Ave

10-Sep 10-Oct 15-Jun

12-S ep

12-Nov

South Island 300kg steer price

5yr Ave

12-Nov

$/kg

10.0

12-S ep

12-Nov

South Island 60kg stag price

$/kg

3 Wks A go 230 676

Last Year 226 692

8.0

7.0 12-Jul 5yr Ave

12-S ep Last Ye ar

This Ye ar

12-Nov

k 10 0Aug

10 Sep

5yr Ave

10 Oct

15 Jun

15 Aug Last Ye ar

10 Nov

15 Oct This Ye ar

219 683

n/c

Last Week 5.90

2 Wks A go 5.90

Last Year 5.40

+0 .2

9.42

9.20

8.37

Change

5yr A ve

550

5yr A ve 5.40 8.60

Export demand indicator - UK CKT leg

450

350 8 Ju l

8 Sep

8 Nov

Procurement Indicator

150 $1.508-May 8-Jul 8-S ep 8-Nov 5-Jun 12-Jun 19-Jun 26-Jun 3-Jul 10-Jul 17-Jul 24-Jul 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 5yr ave Last Ye ar This Ye ar

Procurement Indicator -4.8 -5.2

2Wks A go 79.4 72.9

% Returned NI

n/c

2Wks A go 73.4

% Returned SI

n/c

71.7

Change

This Year

3 Wks A go 84.2 78.1

Last Year 80.5 76.1

5yr A ve 74.5 67.6

95 90% 85% 80% 75 75% Last Year 70% This Year 65% 60% 55 0… 2… 3… 3… 3… 3… 3… 2… 3… 3… 3… 3… 3… 2… 3… 3… 3… 3… 3… 2… 3… 3… 3… 3… 3… 2… 3… 3… 3… 3… 3… 2… 3… 3… 3… 3… 3… 2… 3… 3… 3… 3… 3… 2… 3… 3… 3… 3… 3… 2… 3… 3… 3… 3… 3… 2… 3… 3… 3… 3… 3… 2… 3… 3… 3… 3… 3… 2… 3… 3… 3… 3… 3… 2… 3… 3… 3… 3… 3… 2… 3… 3… 3… 3… 3… 2… 3… 3… 3… 3… 3… 2… 3… 3… 3… 3… 3… 2… 3… 3… 12-May 12-Jul 12-S ep 12-Nov

Procurement Indicator - South Island

9.0

6.0 12-May

2 Wks A go 222 656

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

12-Jul

200

250 8 May

% Returned NI % Returned SI

7.0

200k 300

NZc/kg

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

Change

8.0

6.0 12-May

-8 -20

North Island 60kg stag price

9.0

S outh Island Weekly Lamb Kill

UK Leg p/kg

USc/lb 12-S ep Last Ye ar This Ye ar

10 Nov 15 Oct

Export Market Demand

This Year

% of export returns

$/kg

10.0

Last Year

Last Year

12-Jul 5yr Ave

This Year

10 Oct 15 Aug

South Island w eekly lamb kill

400 250k

15-Jun 10-Oct15-Aug10-Nov 15-Oct 10-Sep 5yr Ave Last Ye ar This Ye ar

$2.00

4.5

Last Year

10 Sep 15 Jun

15 Apr

$2.50 200

5.0

5yr Ave

k 0 10 15 Aug Apr

100 50k

95CL USc/lb NZc/kg 250 $3.00

200

100k

Change

12-Jul

300

150k

Export Market Demand

5.5

4.0 12-May

10-Dec 15-Oct

90 P rocu rement Indicator - South I. 85% 80% 75% 70 70% 65% Last Year 60% This Year 50 12-May 12-Jul 12-S ep 12-Nov 55% 19-Jun 26-Jun 3-Jul 10-Jul 17-Jul 24-Jul 31-Jul 7-Aug 14-Aug 21-Aug 28-Aug 4-Sep 11-Sep 18-Sep 25-Sep 16-Oct 23-Oct 30-Oct 6-Nov 13-Nov 20-Nov 0-Jan 5yr ave Last Ye ar 9-Oct This Ye ar

% of export returns

6.0

10-Nov 15-Aug

South Island Weekly Cattle Kill

4.5 4.0 12-May

This Year

S outh Island Weekly Cattle Kill

0 k 15-Apr 10-Aug

5.0

Last Year

10k40 30

5.5

North eekly lamb N ort hIsland Islandw Weekly Lambkill Kill

100 50k

5k20 10

North Island 300kg bull price

Last Year 5.71 5.73 5.75 5.76 2.80 5.43 5.43 5.43 5.43 2.70

100k

15k60 50

5yr Ave 6.0

50

10 k 0 10-Aug 15-Apr

6.0

2 Wks A go 6.61 6.63 6.65 6.66 4.10 6.58 6.58 6.58 6.58 4.15

150k

40 20k30

South Island 16kg M lamb price

n/c n/c n/c +10 -5 n/c n/c n/c n/c -5

Last Week 6.61 6.63 6.65 6.66 4.05 6.58 6.58 6.58 6.58 4.10

200k

Thousand head

7.0

12-S ep

Change

Slaughter 250k 400

North N ort hIsland IslandWeekly Weekly Cattle Cattle Kill Kill

40k60

12-Jul

Thousand head

4.0 12-May

P 2 Steer - 300kg

Slaughter

5.0

$/kg

SI

Thousand head

$/kg

7.0

+10

c/kgCWT NI Lamb YM - 13.5kg P M - 16.0kg P X - 19.0kg P H - 22.0kg M utto n M X1 - 21kg SI Lamb YM - 13.5kg P M - 16.0kg P X - 19.0kg P H - 22.0kg M utto n M X1- 21kg

Thousand head

c /kgCWT

S o u th Is lan d C h an g e L as t c /kg We e k n/c 6 .5 8

UKp/kg

No rth Is lan d C h an g e L as t c /kg We e k n/c 6 .6 3

LAMB MARKET TRENDS

85 80%

3 Wks A go 73.4

Last Year 71.4

71.7

67.1

5yr A ve 70.5 68.8

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

% of export returns

Me at

BEEF MARKET TRENDS

75 70% 65 60%

Last Year

This Year

50% 55 11-Aug 12-May 11-Sep 11-Oct 12-Jul 11-Nov 11-Dec 12-S ep11-Jan 11-Feb 12-Nov 75 80%

% of export returns

MARKET SNAPSHOT

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

70% 65 60% Last Y ear

This Year

50% 55 11-Aug 12-May 11-Sep 11-Oct 12-Jul 11-Nov 11-Dec 12-S ep11-Jan 11-Feb 12-Nov 5yr ave Last Ye ar This Ye ar

Venison Prices NI Stag - 60kg

+10

Last Week 9.10

SI Stag - 60kg

+5

9.15

Change

2 Wks A go 9.00

Last Year 8.20

9.10

8.15

5yr A ve

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

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RURAL NEWS // AUGUST 22, 2017

MARKETS & TRENDS 25

INTERNATIONAL BEEF: Interest

out of the US has come to a stand-still in the last few weeks. Buyers are anticipating an increase in beef availability later in the year and have withheld purchasing in a bid to push the market down. Exporters to Japan are

WOOL PRICE WATCH

competition from local trade suppliers have underpinned North Island schedules, slowing pushing them upwards. Numbers are high enough in the South Island to keep the market there more steady. Lamb growth rates are suffering under the winter conditions, and its thought this will push more lambs to be killed around the chilled Christmas trade period in lateSeptember and October. Store lambs have continued to sell relatively well. Sales are low, but enough demand is about to keep values firm. There’ve been mixed fortunes overseas. Most of the negative sentiment in stemming from the UK and Middle East, where interest is very low even considering the low availability of lamb from NZ. China has eased from its peak earlier in the year, but looks to have plateaued for the moment. There’s plenty of interest from the US and continental Europe though.

Change

10-A ug

03-A ug

Last Year

Co arse Xbred

-7

273

280

505

Co arse Xbred

Ewe - 35 micro n

-

310

-

555

Ewe - 35 micro n

Ewe - 37 micro n

-5

295

300

555

2nd Shear 37M

+2 0

265

245

475

Indicato rs in NZc/kg

SHEEP: Low slaughter rates and

Overseas Wool Price Indicators Last Year

-10

199

208

364

-

226

-

400

Ewe - 37 micro n

-8

215

223

400

2nd Shear 37M

+11

193

182

342

CXI FXI LI

650400

500

400

550300

300

450200 11-A ug 11-Nov 11-Feb 11-May WeekNo 42110 42124 42138 42152 42166 42180 42194 42208 42222 42236 42250 42264 42278 42292 42306 42320 42334 42348 42376 42390 42404 42418 42432 42446 42459 CXI FXI LI

200 11-May

650700 600 600 500 550400

e - 37 micron C o arseEw Xbred Indicator Last Year

This Year

11-S ep This Ye ar

11-Nov

Ew e - 35 micron

600

500 400 300

450200 11-May Dec Oct 5yr ave

100%

11-Jul Last Ye ar

700

500300

The Rabobank difference

Change

Second shear - 37 micron

600

750500

11-Jul Feb

ep Apr 11-S Jun Last Ye ar

Aug 11-Nov This Ye ar

AgriHQ is the leading source of independent agri market analysis and advice that farmers can bank on. For the latest market reports visit agrihq.co.nz/farmer or call 0800 85 25 80.

200 11-May 5yr ave

11-Jul

11-S ep Last Ye ar

11-Nov This Ye ar

agriHQ.co.nz

The average time our Rural Managers have worked with us

94%

of our customers believe we are committed to their business for the long-term Kantar TNS New Zealand independent research, August 2016

of deposits fund New Zealand agribusiness

100,000 12276

03-A ug

Wool trends Woindicator ol Indicator Trends

850600

OUR INSIGHT. YOUR EDGE.

years of global agricultural history

10-A ug

Indicato rs in USc/kg

c/kg

now at a larger disadvantage to Australia after an increase in beef tariffs which will last until April next year. NZ will have to pay a 50% tariff when exporting to Japan, but Australia’s FTA has meant they’ll continue to pay only a 27% tariff.

c/kg

cattle market has softened lately. Schedules have come back throughout both the North Island and South Island, and indications to date suggest more downside may be on the cards in the short-term. Export processors have found a little relief in the weakening dollar, but a poor US beef market is still dragging margins lower. The fact that local trade operators are unaffected by the exchange rate has meant they’re able to pay a premium over exporters. The bobby calf slaughter is at full swing, but numbers are comfortably down on last year. Lower cow numbers, poor early mating, and increased use of beef bulls have all pulled the calf kill down. Four-day calves are selling very well too, with good Friesian bull and beef-cross calves regularly making more than $200. The store cattle market is holding up relatively well considering on-farm conditions throughout the country.

c/kg

BEEF: The sentiment in the slaughter

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c/kg

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COUNTRIES

RURAL NEWS // AUGUST 22, 2017

26 AGRIBUSINESS

Telford enters new era NIGEL MALTHUS

LINCOLN UNIVERSITY’S transfer of its Telford agricultural training operation at Balclutha to Wairarapa-based Taratahi Agricultural Training Centre has been completed, on the payment of a token $1 for the campus and other assets. The transfer took effect on July 31 and was marked the following day with an auction of surplus stock and plant from the Telford farms, which drew an estimated 350400 including 280 registered bidders. Taratahi has taken over the campus and teaching facilities from Lincoln, and has taken a lease over the Telford farmland, totalling 921ha. Previously the Telford farm board retained a

management role over the farms, but chairman Murray Pilgrim says it’s now stepping back to more of a governance role. Managing the farms for themselves better suited Taratahi’s model, he believes. Pilgrim says Taratahi has bought most of the plant and stock but there is still a lot surplus to be disposed of. He could give no figure for the amount raised, but was “really happy” with the way the auction went. The new setup is in line with a discussion document the Telford farm board issued a year ago, arguing that the country needed one nationwide provider of farm training. Pilgrim says the farm board wants to see the

Progressive Livestock auctioneers run the surplus stock and plant auction at Telford following the takeover of the training operation by North Island-based Taratahi Agricultural Training Centre. A crowd estimated at close to 400, including 280 registered bidders, turned out for the auction. SUPPLIED

entire operation remain a viable unit. “Lincoln’s had to give a bit, we’ve had to give a bit, Taratahi’s had to give a bit, so hopefully at the end of the day it gives Taratahi a nationwide

operation that will be to the benefit of all young New Zealanders.” A Lincoln University spokesperson said students who have already begun studying Lincoln programmes at Tel-

ford will now be taught by Taratahi. They will get Lincoln University qualifications provided they complete their programmes in a normal progression. Lincoln University

will provide some technical support to ensure a smooth transition until the end of 2017. The spokesperson added that all Telford staff have chosen to accept employment with Taratahi. Taratahi and Lincoln had been negotiating the transfer of the Telford operation since 2016. While the commercial decisions regarding the sale were the responsibility of the two institutions, the legislation governing both institutions required ministerial approval for the transfer of any associated properties or leases. On July 26, Primary Industries Minister Nathan Guy and Associate Minister Louise Upston announced their formal consent for the

transfer of the campus assets, for the token payment of $1. The ministers noted that the primary industries require an increasing range of skills and capability to support their growth. In 2012 about 44% of primary sector workers had a post-school qualification, and that will likely have to increase to 62% by 2025. Guy said Telford has a long-standing and valued place in primary sector education in the South Island. “Taratahi’s decision to acquire Telford campus means the primary sector will retain access to nationwide onfarm training facilities with a focus on a range of practical skills the primary industries need.”

RURAL NEWS // AUGUST 22, 2017

AGRIBUSINESS 27

Adding value more than just adding cost THE TERM ‘value added’ is too often used as a vague generic, and farmers need to consider specific strategies for adding value, says Rabobank analyst Blake Holgate. Speaking at the recent Red Meat Sector conference in Dunedin, Holgate noted that most lamb was still exported frozen, returning $6906/ tonne instead of chilled at $11,897/t. “By and large we’re still treating sheep meat as a commodity market, so the lower value frozen export market still makes up about 80% of what we export, while the higher value chilled market, that’s worth nearly twice as much per tonne, is only 20%. “We’ve done a number of things over the years to try to improve the value of our product, to add value -- whether its packaging, processing technology or the ability just to export chilled meat. But by and large we’re still exporting to a commodity market.” However, Holgate now sees a greater willingness to research exactly what consumers want and how it can be supplied. “We’re starting down that path and we need to continue and increase that approach.” Holgate, an animal proteins and sustainability analyst for RaboResearch Food and Agribusiness, said his conference presentation was in the context of a report he was preparing for release, initially to Rabobank clients, next month. Presenting four specific methods of adding value to a lamb carcase, Holgate urged farmers to understand the issues and get involved in influencing the industry. The four methods were: • Improving lamb

quality by methods including genetics and management • Further processing and carcase utilisation • Changing the production system to, say, organic or free-range • Marketing and branding, while ensuring the product matched the attributes being promoted. Holgate said it is important to match the marketing to the specific market. The value that could be added via each of the four methods would vary depending on the target market. A UK foodservice customer may value a high quality consistent product with limited further processing, while a US wholefoods consumer may look for a conveniently portioned piece of lamb with strong ‘credence’ attributes. Holgate gave the example of a now fouryear-old survey which showed India and China consumers valued food safety while UK consumers rated animal welfare as more important. Presumably UK consumers were assuming meat in the supermarket would be safe. However, they considered foreign origin a negative, probably due to ‘buy local’ campaigns – an attitude which he thought had probably strengthened since then. “I’m not sure there’s the same level of ‘buy local’ from the food service industry, say from restaurants. So that may be the channel we target more. It’s important to understand these dynamics that are happening at a consumer level so you can target your distribution as well.” Holgate says that while his presentation touched only slightly on the threat of competition from manufactured protein, it was a “huge” theme of the conference. The industry is

Market Data Every Week Check out the latest market data at www.ruralnewsgroup.co.nz/markets

well aware of the potential challenge. Holgate warned that promoters of alternative proteins are already effectively getting out their messaging that no animals are being killed, as well as environmental and sustainability issues. “They’re already doing it, telling that story. We need to start building up our own story and doing our own messaging to combat that. “That’s a motivation pushing us into the valueadded space, to enable us to distinguish our meat, particularly lamb products, from manufactured meat product. Again, it’s doing all that stuff to give consumers a point of difference and a clear choice between the two. “The challenge will be creating a point of difference because there are a lot of other lamb producers around the world already leveraging lots of attributes that we probably think are unique to us.” Holgate said much of the feedback he got from farmers was questioning why they had to do so much about high environmental and animal welfare standards, traceability and accreditation, when competitors around the world supplying the

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same consumers do not. “The answer is that we’re targeting different consumers. Though we’re supplying the same market they are going down the low-cost route in a race to the bottom. We want to target and supply the premium highvalue consumers. We need to deliver all those various attributes they’re asking for.” However, Holgate says it’s important that valueadded activities do not replace cost minimisation and the attainment of production efficiencies through technology and economies of scale. Also, adding value might not necessarily mean high value products, but could also be as simple as aligning the timing of supply of lamb with customer demand.

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RURAL NEWS // AUGUST 22, 2017

28 OPINION EDITORIAL

EDNA

On task THE DISCOVERY of the cow disease Mycoplasma bovis in South Canterbury last month again raised concerns among farmers about NZ’s biosecurity measures and responsiveness. A meeting in mid-July saw an unprepared Ministry of Primary Industries (MPI) team greeted by angry farmers frustrated at the bureaucrats’ lack of detail and answers. The farmer frustration was warranted though, to be fair, MPI was scrambling and handicapped by a complete lack of knowledge and information about the disease and where it had come from. MPI’s lack of knowledge over M. bovis at that meeting was reminiscent of Donald Rumsfeld’s infamous quote regarding Iraq supplying weapons of mass destruction to terrorists: “As we know, there are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns — the ones we don’t know we don’t know.” Fortunately by the time about 200 South Canterbury and North Otago farmers met with MPI and industry representatives in Waimate on August 10 to get a further update on the situation there were more known knowns than unknown unknowns. The meeting was informed about the surveillance and testing regime and timelines, the robustness of disease containment measures and the actions farmers could take to protect their farms. MPI deadliness and response director Geoff Gwynn admitted it had taken MPI time to resource-up after confirmation of the disease, but assured the crowd this had now been ramped up. The mood of farmers attending this meeting was much calmer than the previous one, with most satisfied by the response and answers given by MPI. Federated Farmers rightly praised MPI officials grappling with the cow disease for their efforts in dealing with the issue. Biosecurity spokesman Guy Wigley said farmers can be impressed by the scope of what is being done. It is easy for critics – including commentators, politicians and farmers – to throw rocks at MPI for biosecurity breaches, especially when diseases such as foot and mouth and mad cow disease could have a crippling effect on our economy. However, M. bovis is a productivity and animal welfare issue thus unlikely to create any trade concerns for NZ. Farmers and others can be reassured that MPI has an effective, well-structured and rehearsed response to the M. bovis incursion and we can all take solace in that.

RURALNEWS TO ALL FARMERS, FOR ALL FARMERS

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

“Quick Edna – before some politician slaps a tax on them!”

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

THE HOUND Thick as mud YOUR OLD mate is not surprised the general population has such a low opinion of local government and local councils. A good example are the clowns at Rotorua Lakes Council, who thought it was a wonderful idea to spend $90,000 of their ratepayers’ money to import mud from Korea as part of some ridiculous festival they were planning. However, howls of outrage from ratepayers, farmers and others about the waste of money, risk to our biosecurity and access to plenty of local mud in NZ forced the council to change its mind and cancel the Korean mud importation. Fortunately, this pressure from the agriculture sector and others made the council see sense, but it should never have happened in the first place.

How now, brown cow THE HOUND keeps despairing at the poor knowledge and appreciation of farming in NZ. Prime examples are the anti-farming policies of many political parties contesting this year’s general election – spurred on by ill-informed activist groups like Greenpeace. He reckons this country could even be getting to the same stage as the US where the rural/urban divide is so large. In fact, a recent survey in the US found that 7% of all Americans actually believe chocolate milk is produced by brown cows. Only in America.

PRODUCTION: Dave Ferguson ........................Ph 09 913 9633 davef@ruralnews.co.nz Becky Williams ........................Ph 09 913 9634 beckyw@ruralnews.co.nz REPORTERS: Sudesh Kissun ....................... Ph 09 913 9627 Pamela Tipa ............................. Ph 09 620 7811 Peter Burke .............................Ph 06 362 6319 Nigel Malthus ...................... Ph 021 164 4258 MACHINERY EDITOR: Mark Daniel ............................. Ph 021 906 723 or 07 824 1190 SUB-EDITOR: Neil Keating ............................Ph 09 913 9628

Bludgers

Karma

THIS OLD mutt is not surprised to see that the smug tourism sector, which has been quick to jump on the anti-farming bandwagon with clean water campaigners, is all take and no give on the environment. Recent Victoria University research found tourism contributed no more than 3.5% of the Department of Conservation’s (DOC) budget, while DOC spent 34% of its budgetary allocations on recreational expenses including tourist facilities and services and managing tourism concessions. Victoria’s School of Government senior lecturer Dr Valentina Dinica said DOC is subsidising tourism and tourism is not required to do its fair share, despite its high revenues. Your old mate reckons this puts into perspective the holier-thanthou attitude of the Tourism Export Council and its finger pointing at the farming sector about water.

YOUR CANINE crusader sees that multi-national, tax-dodging, political activist lobby group Greenpeace is whining about the ‘privacy intrusion’ on its staff and has filed a civil suit in the High Court against Thompson & Clark Investigations, alleging breach of privacy and seeking an injunction to stop the surveillance. How ironic, considering Greenpeace activists recently spent a day chained to machinery and locked inside pipes on the private property of the Central Plains Water Irrigation scheme construction site, near Hororata. The group is also not averse to secretly spying on law-abiding people going about their lawful business or protesting and harassing private citizens attending public conferences. It proves what a sanctimonious, hypocritical bunch of wowsers Greenpeace really are.

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ABC audited circulation 80,580 as at 30/09/2016

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

RURAL NEWS // AUGUST 22, 2017

OPINION 29

Horticulture sector sets its election wishes IN THE months leading up to this year’s election, HortNZ has worked with our members to develop an election manifesto. This is primarily directed at whoever forms the new government after the election, but centres on our vision ‘Healthy food for all forever’. Although horticulture is NZ’s fourth-largest primary export, not a lot is known about what we do or what we contribute to NZ’s economy and wellbeing, as businesses, employers and suppliers of healthy, fresh food. Hence this election manifesto. We want the newly elected government to support our continued growth. In 2016, domestic and export sales of fruit and vegetables reached $5.6 billion. In the two years ending June 2016, horticultural exports grew 39.5%. These growth rates will continue provided we have government support. Independent survey data reports at least 70% of NZers want to buy local and buy fresh fruit and vegetables. And 70% want to know where their fresh fruit and vegetables come from. That is why one of our election manifesto policies is for mandatory country-of-origin labelling of fresh fruit and vegetables. This survey also reported that one in five NZers do not buy fresh fruit and vegetables

each week. We need to increase healthy eating in this country to avoid obesity, diabetes and heart disease. So another one of our policies – from veges.co.nz – is to introduce into the year 7 and 8 school cooking curriculum the skills to prepare a healthy meal. In a Massey University study funded by the Heart Foundation and veges.co.nz of 102 schools, it was found that preparing healthy food was only taught in 50% of the schools and only 13% of the students could plan and prepare a healthy meal. Our policy seeks to change

that and have consistency throughout schools so that all students learn the essential skill of preparing a healthy meal. It is important to horticulture that the government supports these policies. Therefore, a tax on water used to grow fresh fruit and vegetables – a policy proposed by the Labour Party – is counterproductive. A charge placed on that water will inevitably have to be passed on to consumers, increasing the cost of fruit and vegetables and subsequently, reducing access to healthy food. A less healthy population will increase the cost of health care. We hope the government will not use taxes like this to reduce access to healthy food. Continued labour supply and increased protection from biosecurity incursions are two of our key policies. But

most important is access to high quality land and water to feed NZ and grow our exports. We are asking the newly elected government to recognise the need for a national policy recognising that building houses where vegetables grow best is not in the long-term interests of NZ. We do not want to be forced to import our vegetables and lose access to locally grown, fresh fruit and vegetables. Horticulture is very land efficient – using about 120,000ha throughout NZ so that’s not a lot of land to protect. In the coming weeks, and after the election, we will continue to work with the government to ensure horticulture can carry on growing and feeding NZers healthy food. • Mike Chapman is chief executive of Horticulture New Zealand.

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RURAL NEWS // AUGUST 22, 2017

30 OPINION

Soil a solution to carbon conundrum? per year that would “more than offset the carbon emissions of the rest of the country”. “Around the world scientists are pointing out that sequestration of atmospheric carbon into the soil, through means such as grazing livestock on permanent pastures and perennial crops, can be a natural and cost

CAMBRIDGE FARM software entrepreneur Peter Floyd believes soils’ power as a carbon sink warrants more investigation and funding. He says farms can be managed to sequester (i.e. fix) far more carbon than they emit and if all the pastoral land in New Zealand were to increase soil carbon by just 0.2%

effective means of offsetting carbon emissions,” says Floyd. “Research in Australia, the US, Europe and Africa has shown clearly that small changes in agricultural practice can have large effects on carbon capture.” And work done in NZ backs this up, he says. Since 2008, Floyd

has worked with a small group of pastoral farmers using his eCogent management practices designed to build soil carbon. He says annual standardised sampling to 1m deep and analyses by an accredited laboratory have shown steady increases in total soil carbon averaging around 5%.

He says this equates to 12 times the target set by the “4 per 1000 Initiative” – an action plan under the UN-sanctioned Lima-Paris Action Agenda, which aims to demonstrate that agriculture, and agricultural soils in particular, can play a crucial role where food security and climate change are concerned.

“This is highly significant,” says Floyd. “If just 25% of NZ dairy farmers were to do this the effect would be to offset all the emissions from the whole of the country.” Results within the group of farmers varied with the season, the farm situation and with the skill and diligence of the farmer, but typical was an average annual increase of 5% in total soil carbon. This represents a gain in soil carbon of about 6 tonnes/ha. This converted to carbon credits at $25 per unit equates to an annual net income of about $150/ha – 10 - 20 times greater return than from forestry, says Floyd. A paper written

by Floyd outlines the process of carbon fixing in soils: “Soils are the world’s largest terrestrial carbon sink, containing far more carbon than the plant life on the surface. However, the carbon above and below ground is inextricably linked with plants using photosynthesis to extract CO2 from the atmosphere and convert it to carbohydrates that flow to the roots and are exchanged for minerals from soil microbes. Floyd is seeking appropriate investment vehicles or Government shareholding that will “enable the eCOGENT business plan to be taken to the next level”.

ag twits Rural News’ irreverent and hypothetical look at what’s happening in the farming world Top Bleats view all @metiria: Kia ora whanau well it looks like I will be back on the benefit after the election. Anyone want to go flatting with me on the quiet? #donottellwinz #iamunemployedagain @benglishpm: I am a rock. I am an island. And a rock feels no pain and an island never cries – unless it loses the election. #lovethatsong #donottextme @winstonfirstandlast: Everyone knows that the most important thing voters are worried about this election is – not the economy, not regional NZ, not a proposed water tax on farmers nor Chinese immigration – but the text messages Bill English sent to his electorate secretary two years ago! #thethingsthatmatter

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RURAL NEWS // AUGUST 22, 2017

OPINION 31

Provisional tax relief at last standard method at your three provisional tax dates for that year; then PROVISIONAL TAX has long been you will not be charged IRD interest difficult to get right and expensive if you did not pay enough provisional tax -- provided any final balance is to get wrong. But not anymore: the much- paid by your terminal tax date. The safe harbour threshold was maligned old rules have been put previously $50,000 and applied out to pasture. These assumed farmers and grow- to individuals only. Increasing the ers could correctly forecast their threshold and extending it to comincome tax liability ahead of time, panies and trusts is a significant win but if their prediction was not spot- for smaller taxpayers. The second change on they got slapped by affects medium and Inland Revenue’s steep larger taxpayers. If interest on top of the your actual income underpaid amount. tax liability is $60,000 Now new rules proor more, and you paid vide greater certainty provisional tax for that about payments and year based on the stanreduce compliance costs dard method; then you for businesses who calwill not be charged culate their payments IRD interest if you paid using the standard Chris Cunniffe the amounts of tax due method. This method as per the standard means you base your payments on 105% of last year’s method at your first and second proincome tax liability (or 110% of the visional tax dates for that year, even previous year’s liability if your return if your actual liability is higher. The final balance will be due at has not been filed). Most taxpayers your third provisional tax date. IRD pay provisional tax this way. Many taxpayers will pay their first interest applies on any underpayinstalment under the new regime ment of tax from the third provion August 28. So with that in mind, sional tax date. Capping the liability at the uplift what do you need to know? The biggest change applies to amount for the first and second what IRD calls the ‘safe harbour’. instalments provides certainty. For If your actual income tax liability is those in the rural sector, this will less than $60,000, and you paid the be welcomed because of the volaamounts of tax required as per the tility they can experience in their CHRIS CUNNIFFE

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income due to commodity prices, the exchange rate or extreme weather events. Having the final balance due at the third provisional tax instalment is sensible because you should have a good estimation of their actual liability. You will be charged IRD interest (currently 8.22%) if you pay less than the uplift amount on the dates required. Interest will be charged on the lower of the uplift amount or one third of the actual liability. Late payments will also incur late payment penalties. If, for whatever reason, you cannot pay the full amount on the date it is due, you need not worry. An IRD-approved tax pooling intermediary lets farmers and growers settle their tax liability when it suits them and when they know exactly how much they need to pay, at an interest cost that is much cheaper than what IRD charges – and without incurring late payment penalties. For those with seasonal or very unpredictable income, it is an option to consider when looking at tax planning and cashflow management. My recommendation is you speak with your accountant about how the new rules affect you ahead of your first instalment of provisional tax for the 2018 tax year. • Chris Cunniffe is the chief executive of Tax Management NZ.

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RURAL NEWS // AUGUST 22, 2017

32 MANAGEMENT

Farm powered on effluent biogas

THIS COULD BE AGRICULTURE’S FUTURE

PAM TIPA pamelat@ruralnews.co.nz

A GROUND-BREAKING prototype methane recovery system on a 950 cow farm in Southland has demonstrated for the first time the commercial viability of this technology in a cool climate. It was one of three finalists in the Energy Technology of the Year award in the 2017 Deloitte Energy Excellence Awards announced this month. The biogas recovery system was installed by John Scandrett of Dairy Green Ltd with Fortuna Group Ltd. “Performance has exceeded forecasts, providing 30kW electrical power and 60kW hot water, providing for most of the farm’s energy needs, including running an electric farm bike, entirely from waste product,” Scandrett explains. “Dairy effluent storage ponds are known to produce methane, a greenhouse gas more than 21 times worse than carbon dioxide in effect. “Despite this the dilute nature of dairy shed effluent means it is not suitable for supplying conventional biogas digesters.” The Fortuna Group’s Glenarlea Farms 950-cow property in western Southland has demonstrated biogas can be harvested and used to meet a significant portion of the electricity needs and all the hot water needs of a dairy shed, Scandrett says. The science behind the project was developed by NIWA and monitoring of a Southland dairy shed effluent pond for NIWA by Dairy Green Ltd staff confirmed the commercial viability of methane recovery.

Quinton Scandrett on a farm bike that’s charged from a generator powered from effluent biogas.

Dairy Green Ltd was contracted by the Fortuna Group to implement methane recovery and electricity and hot water generation at the Glenarlea Farms property. Venture Southland assisted by arranging EECA involvement and funding NIWA’s initial involvement completing a feasibility study. EECA provided a subsidy to assist the project based on a budget provided by NIWA. “The project involved construction of a biogas recovery pond, gas collection and transfer piping and condensate removal. This was followed by filtering and compression and storage so the generator could be run on a standby basis,” he says. “A generator shed was built to house a second-hand spark ignition motor and 85kW generator. A control system was installed to manage the motor and generator and allow grid synchronisation. A plumbing circuit was installed to utilise hot water produced by the

motor to heat water for the dairy shed. This has to be at 90°C for plant cleaning purposes. “The motor was able to run for up to 16 hours per day in the spring and produced 30kW electrical power while doing so. The heat recovered as hot water equated to 60kW produced per hour. “The dairy shed electricity demand ranges from less than 20kW between milkings after the milk refrigeration unit turns off, to up to 50kW during milking. “The generator is run to minimise the amount of power purchased from the grid.” The project presented a number of challenges as there was no design manual for the construction of the system other than for the pond design, he says. The pond had to be sited 100m from the generator shed to fit in with existing infrastructure. Careful storm water design for the pond cover and gas pipeline meant power didn’t need to

be taken to the pond. A solar panel and 12V submersible pump remove storm water. The motor was designed to run on CNG so had to be modified to run on biogas. Powernet, the local lines company, had safety requirements to be met before the generator could be run in parallel with the grid. The motor also had to be modified to allow ready synchronisation with the grid. “The heat recovery system was more efficient than anticipated and the generator was able to run for longer hours than expected so the hot water production was four times more than was needed for plant washing,” says Scandrett. “Cooling the motor became a problem and was solved with an additional radiator and plate cooler. “The effluent volumes, gas production, electricity production, motor hours and hot water production are all being monitored.”

FIVE FARMS in the South Island are interested in Dairy Green’s methane recovery system and Scandrett sees big potential. “Because of economies of scale it will suit the larger farms better. But it is possible two or three small farms could come together and have one setup between them,” he says. “You want the generator close to where you are using the power.” He talked to a lines company manager which is looking at the future and seeing power demand could double in 20 years with electric vehicles. “If that power comes from a central source they will have to upgrade the lines to take care of the huge increase in demand. Another option would be to have generators around the country then lines upgrades would not be needed. “It may be that a generator supplies power for the shed during the day and and hires the lines company power lines to send electricity to another user.” There would be hurdles to overcome in that currently you cannot hire the power companies’ lines: for instance he cannot send the power 400m to the house from the generator at Glenarlea without the farm putting in its own lines. Your only option is to sell at spot prices to the power companies, which is uneconomic. Scandrett says the motor for the Glenarlea system came from a hospital in Wellington and it was designed to run on CNG. Also instead of being a typical motor with a radiator it has a plate cooler and a heat exchanger; this system used to heat the hospital. “So you are making a lot of hot water – far more than the shed actually needs. While usually one wash-up a day is a cold one, they are actually washing up with hot water twice a day because the water is available. He has been doing sums on using the hot water for refrigeration for milk cooling. “There is a lot of energy in hot water and you can use heat to run a refrigeration system. “There’s lot of potential and we are still working through things. The first step was to prove the concept down here because we had some sceptics.” He understands 7% of methane losses on a dairy farm come from the effluent pond; but with a wintering pad these can rise to 15%. “So capturing the methane you could be capturing 7-15% of the methane from the farm. “It is certainly significant as well as being an energy source, so there are a whole lot of pluses. We are using the effluent, getting energy from it and we are not affecting the nutrient value of effluent at all. And we are stopping a greenhouse gas being emitted.”

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RURAL NEWS // AUGUST 22, 2017

MANAGEMENT 33

Family affair for stockmen CALL AT the Affco Horotiu stockyards any time between 5am and 5pm on any day and the chances are Mike Winikerei will be there. A stockman through and through, he tried to get an ‘inside job’ once, doing a pre-apprenticeship in fitting and turning, but soon figured out working indoors wasn’t for him. Winikerei’s father Avon started working at the Affco stockyards in 1982 after he quit farming; his mate Leo Muru got him in there. Eighteen months later – May 17, 1984 – Mike started in the yards and he’s been there ever since, a steadfast hand to greet the cattle. Today it’s still a family affair. Winikerei runs the yards, but says over the last decade he couldn’t have done it without the help of his sons. He’s a proud father to five boys, four of whom have followed in their father and grandfather’s footsteps at Affco. Mikaere (32) is the leading hand on the nightshift; Akeka (30) works with his dad in the yards while Huirama (26) is in charge of stunning. Teina (28) left for Australia in 2007 after a three-year stint at Affco. Youngest son Nicholas (10) hasn’t ruled out a job with dad in the future. Responsible for unloading, recording, penning, cleaning, kill sheets and scanning, Winikerei takes a simple

ing a decline in stock numbers and a rise in plant efficiency. “Back then processing seemed to be spread more evenly throughout the year and there was no nightshift. “About 1000 stock were processed on one chain each day. Now about 600 come in a day and we split them through two chains, then the nightshift does another 250,” he says. About half the number of men work in the yards, which are about two thirds the size they were when Winikerei started. “The smaller area makes it easier for us to manage, and it’s better for the animals too.

They can get sore feet on the concrete so smaller yards mean less walking and moving about.” Onsite vets do physical checks to ensure stock are healthy and suitable for processing, and a scanner records NAIT information as the cattle make their way into the yards. “We’re reliant on our export markets, and people all over the world want to be able to trace the meat on their table right back to the farm it came from,” says Winikerei. Gentle, calm and confident, with a whistle here and a call there, he has the stock moving through the yards with ease. His

philosophy on stock handling? “Treat them how you would want to be treated if you were one of them.” His priority is making sure the stock are well looked after while in his care. “Animal welfare is a big part of what we do, and our focus is on processing as quickly as possible. “Sometimes it’s tough knowing what’s next for the stock. You get the odd tickle on your arm and turn around to find a dairy cow giving your arm a friendly lick. Some of them come in with names next to their NAIT numbers. You can tell they’ve been well cared for.”

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Three generations of Mike Winikerei’s family have worked for Affco.

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RURAL NEWS // AUGUST 22, 2017

34 MANAGEMENT

Scheme helping to upskill farm advisors JAMES ALLEN

PEOPLE OFTEN like to talk about the good old days. Usually their reminiscing doesn’t stand up to the harsh light of reality. But sometimes, just sometimes, that torch

reveals a truth. There was a ‘good old days’ in my profession, a time when a farmer had ready access to advice about a change to the industry or the impact of a new technology or regulation on his or her business. That advice came

from farm management professionals, people with decades of experience who had built a powerful repository of primary sector knowledge. State deregulation and commercialisation during the 1990s saw its demise, and for many years the

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primary sector struggled against that huge swell of change, struggled to find solid ground. Thankfully, that precious resource has been rebuilt, just in time for New Zealand’s farmers to tackle a new and very different wave. It was all so different in the 1990s: the average farm had about 150 cows and ran a pastureonly system, staff management involved a chat with a couple of workers over a pot of tea, and precision agriculture was getting the milking done on time. Today the average herd numbers at least 400, the modern dairy farm uses a wide variety of feed inputs and many farms have a lot more staff to manage. Also, the operating environment is very different. Environmental compliance, human resource management, increasing consumer expectations, health and safety regulation, volatility of product price and increasing requirements for governance are all examples of the changing workplace for the dairy farmer. Then there’s the advance and opportunity of new technology -- big data, analytics and the much-hyped precision agriculture. Farmers have a lot

on their plates and for a long time they’ve had little to lean on, but that has changed because of hard work and innovative thinking by the Ministry for Primary Industries and organisations such as DairyNZ, who recognised the vacuum of knowledge and the implications for the industry in an environment of shifting consumer expectations and growing compliance. Notably, the Transforming the Dairy Value Chain (TDVC) Primary Growth Partnership programme has implemented a national strategy of change on an unprecedented scale. The programme is a seven-year, $170 million innovation investment led by commercial partners, including DairyNZ and Fonterra, and partnered by the Ministry for Primary Industries. Over the past few years the programme has supported the upskilling of hundreds of rural professionals to help them tackle this new wave of compliance and opportunity. The work has restored and accelerated the capability and capacity of this important part of the primary sector. This campaign of rebuilding has also involved veterinarians, research and training institutes, fertiliser com-

AgFirst’s James Allen.

panies and regional councils. My own company AgFirst has helped provide that knowledge for rural professionals and has benefited in the rise in industry reputation and employment opportunities. We have benefited from TDVC support in an unprecedented accreditation process that emphasises best practice, provision of training and development programmes for rural professionals, and the creation of an environment where we can contribute more to building smarter, profitable and more sustainable businesses. The work of DairyNZ, the NZ Institute of Primary Industry Management and leading farm management consultancy firms in developing the Dairy Farm Systems accreditation process is a good example of this endeavour – assessing the attainment of a minimum set of skills required to be

a competent dairy farm systems consultant. It involves a set of online assessment modules, submission of a detailed whole farm assessment report on a case study farm, and verification of competence by farmer referrals. The farmer benefits through a whole farm assessment that can potentially dramatically lift productivity and profit, while ensuring the business meets its environmental obligations. The industry benefits by getting better, more educated advice. This is just one example of how farmers, the environment and the wider economy have much to gain from this collaborative effort. There are many others. • James Allen is managing director of AgFirst Waikato Ltd and chairman of AgFirst NZ. @rural_news facebook.com/ruralnews

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RURAL NEWS // AUGUST 22, 2017

MANAGEMENT 35

Rural professionals need to adapt quickly NIGEL MALTHUS

ALTERNATIVE PROTEINS, meat-based snacks, insects, new types of packaging, eating onthe-go, 3D printing of food: change is coming fast and rural professionals need to get with it, says Meat & Livestock Australia’s Christine Pitt. Notably in the Asian middle class, consumers are becoming much choosier and demanding higher environmental, social, health and wellbeing credentials from their food sources, Pitt says. They are looking for an experience, not just sustenance, from what they eat. Pitt is MLA’s general manager value chain innovation, responsible for $45 million/year of R&D and commercialisation in the Australian red meat industry. Speaking to the recent New Zealand Institute of Primary Industry Man-

agement conference at Lincoln, she warned of coming disruption. “If you’re not completely on top of what’s happening with these new technologies then I suggest you’re probably not going to be able to deliver a good service to your clients.” It is not just single technologies starting to emerge but their convergence -- how they will all work together -- that will fundamentally change the way farming is done. Many new businesses, start-ups and entrepreneurs are entering the agribusiness sector, Pitt says. “If you’re not already thinking about what these people are doing they’re going to displace you fairly quickly.” However, she believes disruption is not all bad and represents some great opportunities. Snacking, eating onthe-go and particularly

WHO’S NZIPIM? The New Zealand Institute of Primary Industry Management (NZIPIM) is the peak industry body for the rural profession, with at least 1000 members from a range of occupations including farm management advisors, rural bankers, farm accountants, fertiliser consultants, rural valuers, representatives from industry good organisations, CRIs, universities, and agribusiness service providers.

protein snacks are a huge growth sector, with consumers starting to turn away from some traditional grain-based snacks they see as not healthy or too sweet. For example, Epic, a Texas company recently bought by the food giant General Mills, makes a range of meat-based snack bars. These retail for the equivalent of about $100/kg of red meat -- some even for $180/kg. “Why would you put another kilo of red meat in a box and call it ‘trim’ and sell it, or send it to the US and sell it for

hamburger meat, when you can do this with it? It doesn’t make sense.” These markets did not need to be invented, she added. “Consumers around the world are shouting at us. This is the kind of thing they are looking for. “What we know now is that consumers want to get their foods quite differently, they want to eat different foods, they want them produced in different ways,” Pitt explained. “Asia is also driving a lot of this investment in new ventures. So if you thought Asia was a place where we go to tell them

how to do things, think again. They’re already getting ahead of us.” Pitt says smart people, smart companies and smart countries are starting to work out what they would do with all these trends, and that is the challenge for everyone. Some of the big red meat companies are themselves starting to invest in alternative proteins. “You used to be able to see out your career

sticking to your knitting or defending your core business but it’s no longer going to be the case.” Pitt said, at the risk of offending some of her audience, the days of thinking about R&D then R&D extension as separate steps, are dead. Rural professionals can no longer wait for research to be done then think about how to get “those dumb farmers” to adopt it. “That’s not the way we

are going to change the industry, and if you are a rural professional who thinks that’s your job, it’s time to panic because that doesn’t work. We now must have a much more dynamic systemsbased approach to how we work together with producers, researchers, scientists and technology companies and how we work in terms of bringing all that together so it’s a natural dynamic thing that’s happening all the time.”

Christine Pitt, of Meat & Livestock Australia, speaks at the New Zealand Institute or Primary Industry Management conference at Lincoln. RURAL NEWS GROUP

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RURAL NEWS // AUGUST 22, 2017

36 MANAGEMENT SALMON RELEASED ON HANDSHAKE KAIAPOI’S COMMERCIAL salmon hatchery has again helped support local salmon anglers by releasing thousands of young fish. The release of 30,000 smolt from the Salmon Smolt NZ hatchery on the Silverstream, just west of the town, was in line with a “gentlemen’s handshake” agreement with Fish and Game to help their enhancement work, said general manager Karl French.

The hatchery lies on the spring-fed upper reaches of the Kaiapoi River, a tributary of the Waimakariri. Set up in the 1960s by the Acclimatisation Society, it has been owned since 2008 by a consortium of South Island salmon farmers, but run as an independent commercial concern, selling to anyone. French said that as long as he could remember there had been

a gentlemen’s agreement to help out Fish and Game’s fisheries enhancement efforts. The hatchery traps adult fish arriving to spawn, and gives the eggs and milk (sperm) to Fish and Game, who fertilise, incubate and hatch the eggs at their Montrose Hatchery in the Upper Rakaia. When the young fish are 10-15g in size they are returned to the Kaiapoi facility where they are

grown to about 50g and one year old, before being released. French said that when the 30,000 smolt were released they bolted towards the sea. He said they would have gone to the estuary area to acclimatise to salt water for a few hours or days, then headed into the open ocean. They will return to the river to spawn after a few years at sea. – Nigel Malthus

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HAVING PEOPLE of differing expertise visit her farm to view and offer advice was extremely valuable, says 2017 Horizons Ballance Farm Environment Awards finalist Nic Leary. Leary is in charge of Tarata Farm, a leased 500ha, 4400 stock unit sheep and beef property west of Raetihi, run with another family property. “The judging panel that visited Tarata included two farmers – two different farmers in terms of the type of property they farm, where they farm and what they focused on – a rural banker and a regional council land management person. Given their backgrounds it was a well-balanced critique from those four people,” she says. “It wasn’t just about profitability or productivity, but having a sustainable influence as well. The awards are an opportunity to get a well-rounded insight into what you’re doing and not doing.” Tarata is the sheep breeding unit for the nearby Leary family’s home farm, Wairiri, run by Leary’s brother Dan. Tarata’s cattle policy is flexible depending on the season and market. Leary, who trained as a physiotherapist, has been farming since 2014. Their initial lease period for Tarata has been extended to May 2024. She says the judging panel looked at a wide range of issues such as land use, stock policies, water systems, fencing of waterways, subdivision plans and planting. “It was a great opportunity for me to discuss geographically challenging areas – ground unstable, broken or prone to flooding. We had robust discussion on the hillside about what we should be concentrating on and where to get the tools and resources to help. It provided additional insight into the land structure and soil types present in problem areas. “It’s a lease property so the judges stayed realistic about what we could do. Their feedback and comments were specific to a lease arrangement -- specific and valuable.” Leary says being acknowledged at the dinner was also reassuring. “It was personally encouraging not just for myself, but for our family business to be acknowledged for the steps we’ve already taken on the farm and to be commended for what we are doing well. “Wider than that, the awards dinner also showcases other properties and gives you a lot to aspire to. It is positive.” She believes this is important not only for the farm businesses, but also how the greater population perceive farming.

01687MSDMRN

RURAL NEWS // AUGUST 22, 2017

ANIMAL HEALTH 37

Semen possible; but unlikely source of disease Mycoplasma bovis had never been recorded in New Zealand before its discovery in mid-July.

NIGEL MALTHUS

THE MINISTRY for Primary Industries is still assessing the likely means of entry of the cattle disease Mycoplasma bovis into New Zealand, following its discovery on two dairy farms in South Canterbury. Mycoplasma bovis had never been recorded in NZ before its discovery in mid-July on one, and then a second, of the 16 dairy farms operated in the Morven area by the Van Leeuwen family. The disease causes pneumonia, mastitis, abortion, arthritis, tendinitis, middle-ear infection and endometriosis. Management is only by culling. However, it has no effect on other animals nor implications for human health. One of NZ’s major semen importers, World Wide Sires, claimed comments by MPI had ruled out imported semen as the source of the out-

break. However, MPI says that is not necessarily the case. “The ministry’s view, at this time, following a preliminary review of the scientific information, is that imported semen is regarded as a possible means of introduction,” a ministry spokesman said. “But it is considered low risk due to the hygiene practices in collection and distribution. A formal reassessment of the risk posed by imported semen

is ongoing.” The Van Leeuwen farms’ vet, Merlyn Hay, of Vetlife Oamaru, believes it will be very difficult to identify the source, and hard to eradicate Mycoplasma bovis now it is confirmed in NZ. However, Hay agrees that imported semen looks unlikely as the source. “We certainly looked very hard at the semen and there were 12 bulls associated, but there was no fixed pattern. It was always a real long

shot, so I would expect that’s true.” Hay said that as a contact-spread disease, live animal import is a more likely pathway. She said the Van Leeuwen farms are “in a holding pattern” waiting for MPI’s test results to come through. Affected animals were being culled, but the disease is very slow-moving and healthy stock did not need culling. Meanwhile, DairyNZ said concerns had been

raised about truck movements from the affected farms. But MPI had reassured it that only dedicated trucks were being used. “AsureQuality are riding along with these vehicles to ensure cleaning and disinfecting and permit protocols are being met. Stock movements from the known infected properties are only allowed under permit direct to slaughter, following veterinary inspection. “There are also rigorous cleaning and disinfecting requirements in place. All other restricted Van Leeuwen properties are only able to move stock either within the Van Leeuwen property or directly to slaughter under permit.” DairyNZ said that even with controls in place, it was important for farmers to protect their farms while MPI worked to understand if the disease had spread further afield.

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RURAL NEWS // AUGUST 22, 2017

38 ANIMAL HEALTH

‘World-first’ mastitis treatment PAM TIPA pamelat@ruralnews.co.nz

A NEW, ready-to-use antibiotic formulation for treating mastitis just released by Bayer is a world first and confirms New Zealand is at the forefront of dairy science, the company claims. It took seven years to develop, register and launch is now available for farmers. Penethaject RTU (ready to use) has a unique formulation that requires no pre-mixing. It is the only pre-formulated or RTU version of the product in the world, which makes life easier for the farmer and vet, a spokesperson told Rural News. Bayer plans to release Penethaject RTU in other markets around the world. Bayer dairy veterinar-

ian Dr Ray Castle says Penethaject RTU will make it easier for farmers to effectively treat clinical mastitis, a condition affecting 10 - 20% of NZ’s 5 million dairy cows every year. “The active ingredient of Penethaject RTU, known as Penethamate, previously came in powder form and had to be mixed together with a liquid by the farmer or veterinarian to create an injectable solution,” Castle says. “Developing a pre-formulated version had been a scientific challenge for many years until scientists in Bayer New Zealand’s laboratories worked with Otago University to create a stable formulation, something never achieved before.” Castle says Penethamate is stable long term

Bayer dairy vet Ray Castle.

as a powder, but not as a liquid. “The challenge was to create a liquid formula-

tion in which the active ingredient remained stable and active without caking or sticking

together in clumps.” To overcome the caking issue, Bayer worked with Otago Uni-

versity on adding different ingredients to stabilise the formulation, before finding a formulation that worked. “The whole process, including clinical trials, stability testing, registration and commercial manufacturing, took about seven years to bring to fruition, so naturally we are delighted that Penethaject RTU is now available to farmers. It’s a world first and something that confirms NZ’s position as a leader in dairy science.” Castle says the chemistry in Penethaject, a form of penicillin injected into the cow’s muscle, is so clever that it allows antibiotic concentrations to build up in a cow’s udder. These concentrations are up to 10 times higher than those achieved by other peni-

cillin formulations. This allows the antibiotic to directly work on the mastitis bacteria, particularly Streptococcus uberis, the most common bacteria responsible for mastitis in NZ. Once the mastitis is treated, the antibiotic quickly leaves the milk, allowing the cow to be back in milk production, in some cases after 48 hours. Castle says that as farmers head into the milking season they need to be particularly alert to the clinical signs of mastitis, which include changes in the colour and consistency of the milk, and/or redness, heat, and swelling in the udder. Penethaject RTU is a restricted veterinary medicine available only under veterinary authorisation.

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RURAL NEWS // AUGUST 22, 2017

ANIMAL HEALTH 39

On-farm biosecurity needs to be ‘best practice’ AN ANIMAL health academic is urging best practice as a means of precluding the spread of disease. The dean of Massey University’s Veterinary School, associate professor Jenny Weston, has spoken out in light of an outbreak of disease due to Mycoplasma bovis on a large South Canterbury farm. Weston says while the outbreak is being contained and investigated, it is important for all farmers to be thinking about biosecurity and what animals, people and vehicles coming onto their farms might be carrying “Nearly all farmers will buy in breeding bulls/rams, meaning they could also be bringing in infectious diseases like BVD [bovine viral diarrhoea] and Johne’s disease, which are important to look out for, as well as drench-resistant parasites and antibiotic resistant pathogens. “There are a few things farmers

can do to ensure the health and welfare of their livestock and to maintain the smooth running of their business,” Weston says. Movements should be minimised and preferably minimise the number of sources of livestock. Record all movements (even between your own properties with multiple farms and grazing blocks) through the National Animal Identification and Tracing (NAIT) programme. Test all incoming animals for things that can be relatively easily tested for. Vaccinate and quarantine drench when animals come onto the farm. Quarantine and keep new animals isolated for at least 1-2 weeks. Other things to consider include: Insist on cleanliness of people, vehicles and equipment coming onto your farm. Provide good washing up facil-

AGCARM APPOINTS NEW HEAD AGCARM, THE association representing crop protection, animal health and rural supplier businesses, has appointed its first woman president. Dr Pauline Calvert, who heads the production animal business for MSD Animal Heath in New Zealand, was elected president at Agcarm’s annual meeting last month. Under her presidency, Agcarm will promote the responsible use of products, sustainable agriculture, environmental preservation and sensible science-based regulation of crop protection and animal health products. “Agcarm brings together a wide group of industries,” Calvert says. Dr Pauline Calvert “Collectively we share the same passion and interest in the environment, the economy, product stewardship and maximising the opportunities of our primary sector by innovation.” She says her election as president has nothing to do with her gender. “Women contribute greatly to our industry and our board and have done so for years. There are many examples where women have leadership roles in our primary sector and I expect nothing less from the industry I contribute to.” Calvert spent nearly two decades as a field veterinarian in mixed animal practice before venturing into a regulatory environment as veterinary adviser for the Ministry for Primary Industries. She has been with MSD Animal Health for three years. She is also an active member of the pharmacology chapter of the Australian New Zealand College of Veterinary Scientists and is an examiner for the chapter. Calvert takes over from Mark Christie, who was Agcarm’s longest standing president. She says she has “big shoes to fill” as he achieved a lot in his five years as president.

ities, e.g. for boots, aprons, etc for people coming onto or leaving your farm as many pathogens can be transmitted via blood or faeces. Ideally, look to coordinate grazing rotations with the neighbours so that your animals aren’t “over the fence” from the neighbour’s animals.

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RURAL NEWS // AUGUST 22, 2017

MACHINERY & PRODUCTS 41

Euro tour shows Kiwis machinery future MARK DANIEL markd@ruralnews.co.nz

WHILE THE All Blacks were well into planning their end-of-year tour, another group of Kiwis headed to the northern hemisphere in the middle of July during the European summer. The Power Farming Euro Tour saw 63 New Zealand farmers, contractors and dealers hit Italy and Germany to see the latest tractor technologies from the SDF Group, which recently commissioned the most modern tractor factory in the world. First stop was at the SDF headquarters in Treviglio, east of Milan in northern Italy. This is the home of Deutz Fahr tractors up to 130hp and the capable and versatile Series 5 tractors. Guests could take in the heritage of a business that saw the Cassani brothers build their first diesel tractor in 1927, and the SAME DA, the world’s first 4WD tractor, launched in 1952. On the production lines an upgrade is underway to produce automated guided vehicles (AGV) that carry the emerging tractors around the site and allow the factory to build up to 100 tractors each day. Following a trip to a local dairy farm, which supplemented milk production with a large biogas plant, the party headed over the Alps to Munich and on to Lauingen, the home of Deutz Fahr. Said to be the fastest growing brand in Europe, Deutz Fahr has recently commissioned a state-of-the art tractor assembly plant aptly named Deutz Fahr Land. In a building of 42,000sq.m on a site of 160,000sq.m and built at a cost of NZ$145 million, the mission is to build tractors right first time (RTF). A completed tractor leaves the production line every 12 minutes; the factory is said to be capable of producing up to 6000 units per annum on a one-

The Power Farming Euro Tour saw 63 New Zealand farmers, contractors and dealers hit Italy and Germany to see the latest tractor technologies from the SDF Group including production of the series 6, 7 and 9 Deutz Fahr.

shift basis. Production centres on the Series 6, 7 and 9 tractors of 130-350hp. The RFT strategy is impressive given that a Series 9 tractor comprises over 5000 individual parts (a premium car has 3500-3800 parts). At the start of production, engine and transmission assemblies are carried on a line that passes through 20 workstations. Uniquely, workers travel on parallel moving conveyors said to

reduce stress and mistakes during the process. Once the powertrain is completed it is subjected to a full hydraulic test on one of three rigs, using pneumatic pressure testing up to 220 bar, to ensure that quality is 100% before the units hit the paint-shop. Prior to painting, dirt, dust and any silicones are removed, while an alkaline wash produces a keyed surface for the two automated painting robots.

The paint process – said to have cost Euro 20m of the overall investment – combines application, heat curing and cooling before the final fit-out. Interestingly, the final finish can endure 720 hours in the industry salt-spray test before signs of rusting appear. This contrasts with the car industry, where premium brands such as BMW or Mercedes are only able to endure about 240 hours. After painting, the drive train meets

the cabin assembly, body panels, wheels and tyres, before final accessories like drawbars, lighting and weight packs are added. Finally, the ability of the 90 workers to meet RFT is put to the test, with a rolling road test to ensure all functions operate properly. And the final test? That involved a bunch of Kiwis taking the tractors to the paddock, using cultivators, harrows and heavily-laden trailers to see what RFT is all about.

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RURAL NEWS // AUGUST 22, 2017

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42 MACHINERY & PRODUCTS

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GLOBAL GIANT AGCO says it plans to integrate the Challenger tracked tractors and sprayers into the Fendt product range in Europe and the Middle East, so replacing the familiar Cat yellow paint colour with the Fendt Natural Green. The change will see production of tracklayers and sprayers move from Grubbenvorst, Netherlands to Hohenmolsen, Germany, already the home of Fendt Katana forage harvesters and Challenger trailed spray-

ers. The change in distribution will take place after Agritechnica ‘17 in November, and a similar strategy will be rolled out in Russia and Ukraine in late 2018. Products in the Amer-

Deere tried to buy the same business in 2016 but were blocked by the US Dept of Justice which believed the move was not in farmers’ best interests. AGCO already uses Precision Planting components in its White drill ranges, as does Case IH // AUGUST RURAL NEWS 18, 2015 and many other precision Challenger machines will soon be drill manufacturers. coloured in the Fendt green. The deal is said to solidify AGCO’s posilike becoming the next ican, Asia Pacific and tion as a leader in plantacquisition for AGCO, it African markets will be ing technologies and to having signed with The sold with the Challenger strengthen its place as a Climate Corporation, a badge for the foreseeable full line supplier to prosubsidiary of Monsanto, future. to buy Precision Planting. fessional farmers across In further news, drill the globe. Keen industry watchequipment specialist Preers will recall that John cision Planting looks www.agcocorp.com.au

MACHINERY & PRODUCTS 45

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tion of Roundup until the WARREN DARLINGFREIGHT from DELIVERED FREE TO NEAREST autumn, when drilling Timaru knows a bit about MAIN CENTRE takes place with a Great growing barley, so much Plains Centurion cultivaso he broke the Guintor drill. ness World Record for the The use of the SL500 crop with 13.8 tonnes/ha in followed by the Centurion April, with crop harvested helps reduce the number on January 23 this year. of passes controlYard the Darling and his wife 3.0mand Standard ewes with lambs killer of 280 all crops – comJoy farm 450ha of coastal prices start at $9695* paction. The effects of land on the south side of compaction are further Timaru and are dedicated mitigated by the use of cropping farmers who a tracked Versatile tracgrow barley, wheat and tor for the cultivation and canola. When they found drilling. Any post-emerout the existing world record for barley had sat at gence work with fertiliser or spray is done by a con12.2t/ha for 25 years they Maxi Yard ventional3.0m tractor operatdecided to give it a nudge. 500 ewes with lambs ing onprices tramlines. Though breaking the start at $14,795* For the best agronomy record had needed a smidadvice Darling worked geon of luck, Darling with his consultants, The believed the planning cenAgronomy Group and The tred on three key areas: soil fertility, agronomy and Exclusive Grain Group to ensure the seed best suited climate. to the coastal location; furOver the last eight ther4.5m adviceStandard was supplied years the Darlings have Yard 1000 ewes with lambs by Ballance Agri-Nutrients used a minimal tillage prices start at $17,895* and Bayer Crop Science to system largely centred on the business’s Great Plains get things just right. A Vicon Geo-Spread Simba SL500 cultivator that uses a combination of spreader took care of variable rate fertiliser applicadiscs, tines and rollers to tions, based on previously incorporate previous crop 3 Pointsoil Linkage Yard surveyed grid maps residues back into the top 120 ewes with lambs that gave an indication levels of the soil profile, prices start at $6295* of the existing nutrient and thereby increase soil levels. organic matter. The weather played its The work cycle for part: good rainfall during the crop is relatively the winter ensured plenty simple with base fertiliser Small Block Holders Kit during the requirements taken care of of soil moisture 50 ewes with lambs prices start at $2695* early growing season, and post-harvest, and a single a hot dry summer brought pass with the SL 500 to the crop to maturity. start residue breakdown. Warren pointed Any volunteers are taken www.landquip.co.nz 0800 269 out 776that “our coastal location gives care of with an applica*all prices exclude GST

Warren Darling pictured with his Great Plains Simba SL500 cultivator.

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RURAL NEWS // AUGUST 22, 2017

MACHINERY & PRODUCTS 43

New Claas Axion offers plenty MARK DANIEL markd@ruralnews.co.nz

THE NEXT generation of the flagship Claas Axion 900 tractors offers more powerful engines, an optimised CMatic continuously variable transmission and for the first time a choice of two operating systems. Launched in 2011, the 900 series has established a following among grain producers and contractors for its well-matched engine and transmission, high fuel efficiency and exceptional ease of operation. Four models, rated with maximum outputs of 325 to 445 hp, each have the 6-cylinder, 8.7L FPT Cursor 9 engine. It will now come with a Tier 4 engine that uses variable geometry turbocharging to deliver optimum chargeair pressure according to the load and engine speed. All models are said to transfer their full power from a standing start and at all forward speeds without boost, with 70% of maximum torque available even when idling. The advanced, low-speed concept means the engine develops 18% more torque than previously at a lower

The new generation Claas Axion 900 tractors will be available in New Zealand from early 2018.

speed. This in turn reduces fuel consumption in all field and transport applications, which is also aided by automatically reducing the idling speed from 800 to 650rpm when stationary. In the ECO mode, up to 95% of the maximum engine output is transferred to the PTO shaft despite the reduced engine speed, allowing heavy implements to be operated at a lower engine speed. All models are equipped with an upgraded ZF Terramatic transmission to offer continuously variable trans-

mission speeds from 50m/h to 50km/h, alongside several software refinements to get the best out of the tractor, such as the cruise control system that can be deactivated using the accelerator pedal, and the driver can switch between two saved engine droop values simply by pressing a button. All models can be specified with the new Claas Information System Plus (CIS+) or proven Claas Electronic OnBoard Information System (CEBIS). The former has a 178mm (7 inch) CIS colour display mounted on the A-pillar

and the proven multi-function armrest incorporating the Electropilot fourway control lever and Drivestick control lever. The new CIS+ is an intermediate system aimed at customers who want greater convenience and efficiency but do not need all the functionality of the CEBIS system. The updated CEBIS operating system has a new 300mm (12 inch) touch-screen display and an ergonomic armrest incorporating the CMotion multi-function control lever, providing convenient operation of

all the main functions using just the thumb and two fingers. All Axion 900 tractors have loadsensing hydraulics with an output of 150 or 220L/min and release levers for all hydraulic couplings at the rear, with function buttons on the armrest and a multi-function control lever able to be configured for any of the spool valves. Pre-set oil volume can be set for a prioritised spool valve, which then remains almost constant even when other spool valves are in use. All models are also fitted with a universal (ISO500) tow hitch support and a six-way adjustable drawbar, with options for factory-fitted GPS steering and Claas Telematics remote monitoring systems available in all models and configurations. Other practical options include up to 20 LED working and road lights, wide-angle mirrors with two separately adjustable fields of view, a compressed air connection mounted near the left-hand steps and a removable tool drawer with telescopic runners. The next generation Claas Axion 900 tractors will be available on an indent-order in New Zealand from early 2018.

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RURAL NEWS // AUGUST 22, 2017

44 MACHINERY & PRODUCTS Big rig’s back-tothe-future success THE LOOK can count for much: judging by the recent success of a Kenworth specialedition truck, the look is retro. The Kenworth Legend 900 combines modern technologies with many limited-edition features, offered in a novel sales campaign restricted to one day – June 26.

Making salesmen’s dreams come true, 250 rigs were sold in 24 hours, 12 confirmed for new homes in New Zealand. Inspired by the T900 model of 1991, the Americanstyle bonneted truck has a traditional split windscreen, side-mounted exhaust stacks with wraparound shrouds and

the original flat dashboard layout. Completing the ‘look’ are traditional badges from Kenworth, Cummins and Eaton Fuller, celebrating a long history of manufacturing in Australia and confirming the love affair owners have with the Kenworth brand.

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Not your average tractor! AUTONOMOUS TRACTORS may these days make news in farming media but alternative-fuelled machines are less on show -- except for New Holland methane-powered tractors. The Multi Tool Trac being developed by Dutch company Boessenkook combines the best of both worlds–-- an electric powertrain and a 6-cylinder 210hp diesel engine to extend the range of the tractor’s 30kWh battery. As part of the motive system, an electrical generator can deliver 22 - 44kW power to each wheel motor, providing high torque and traction, said to be very precise especially when combined with fourwheel drive, four-wheel steering and 40km/h maximum speed. Tyre equipment is Mitas 380/90-R50 at each corner, allowing a 5 tonne net payload. The machine is designed as a tool carrier for 3m controlled traffic systems, with the benefits of using the same wheel-tracks for all operations, in turn reducing compaction of growing areas and so lowering costs and possibly raising yields. Interestingly, the MTT has an on-the-move track adjustment system allowing wheels to be set at 2.2 - 3.2m centres to suit differing crops or bed widths. It weighs about 10 tonnes and measures 5.5m long, and is configured to allow implements to be mounted and driven at the front and rear and between the wheels. This ‘central’ position is said to allow the operator good visibility over the crop and to make for stability. A Claas Group cab also adds to visibility; it can be moved fore and aft along the machine’s frame rails. Prototype testing began in 2015 and first commercial examples will be available for the 2019-20 growing season.

RURAL NEWS // AUGUST 22, 2017

MACHINERY & PRODUCTS 45

Case gears up the new Maxxum MARK DANIEL markd@ruralnews.co.nz

IRISH NEWS outlet AgriLand reported in July that New Holland is set to launch a new dual-clutch, eight-step semi powershift transmission for its T6 series tractors. Now its sister brand Case IH is about to do the same for its Maxxum tractor range. Like the New Holland version, namely Dynamic Command, the Case IH offering (dubbed ActiveDrive 8) also offers eight powershift steps in each of three ranges. In all this provides 24 speeds in both forward and reverse. Covering speeds up to 10.2km/h, range one is specifically designed for heavier draft work. For special applications requiring very low speeds, such as vegetable crop work, ActiveDrive 8 is also available with additional creep speeds. Range two, the main working range, covers nearly 90% of all field, grassland and loader application requirements, says Case IH. It runs from 1.6 to 18.1km/h. For road travel, the transmission is designed to start in range three; a skip-shift function allows “quick progress” through the powershift speeds. An auto-shift feature enables the tractor to be set to progress automatically through any set of eight speeds in the field, and through all 16 gears in the top two ranges on the road. A pedal kick-down function can be used to override the transmission automation and cause it to downshift. The clutch pedal is not required. This means, says Case IH, that this transmission is suited to “power-hungry tasks where momentum is important” such as cultivation work or mowing with twin or triple mowers. A “true” power-shuttle ensures “no loss of drive or traction during changes

task in hand. In line with the launch of ActiveDrive 8, the existing four-speed semipowershift fitted to standard Maxxum models has been renamed ActiveDrive 4. It has 16 forward and 16 reverse speeds, offering a top travel speed of 40km/h. Case IH’s CVXDrive transmission is the third option available on the Maxxum range; it can be specified

of direction on slopes”. True in this instance is presumably a reference to a power-shuttle that employs clutchpacks, rather than a robotised (synchromesh) shifting mechanism. A ‘brake to clutch’ feature is intended to improve ease of stopping at road junctions or when stacking bales with a loader. Both shifting and shuttling can be modulated for a faster or slower response, depending on the

on models from 116 to 145hp, offering stepless travel up to 50kph. It can be programmed to work at a set forward speed or a constant engine speed. ActiveDrive 8, along with its New Holland counterpart (Dynamic Command), is a dual-clutch type transmission. The four odd-numbered gears and one clutch are located on one shaft; the four even gears and another clutch are on a second shaft.

Power is then modulated between the two clutches; as an odd gear is disengaged with one clutch, the second clutch is engaging the even gear ratio. This double-clutch technology is conceptually similar to that employed in John Deere’s DirectDrive transmission. It too has odd-numbered gears and one clutch on one shaft; the evennumbered gears and the second clutch are on a second shaft.

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RURAL NEWS // AUGUST 22, 2017

46 MACHINERY & PRODUCTS / RURAL TRADER

We all need to do our bit Notice of Election • DairyNZ Board of Directors • DairyNZ Directors Remuneration Committee Invitation for 2017 candidate nominations – three positions available In October, two elections will take place for DairyNZ Incorporated – one election for two farmer-elected directors for the Board of DairyNZ Incorporated and a second election for one member of the Directors Remuneration Committee. Registered levy-paying dairy farmers are invited to nominate candidates to fill these three positions. All farmers paying a levy on milksolids to DairyNZ are eligible to stand for either election. An information pack outlining desired criteria and nomination requirements for the positions can be obtained from the Returning Officer. Nominations must be received by the Returning Officer by 12noon Friday, 8 September 2017.

Elections If more candidates than the required nominations are received, elections will be carried out by postal and internet voting using the STV (single transferable vote) method. Votes will be weighted by annual milksolids production. Voter packs will be posted on 25 September 2017 to all registered DairyNZ levy payers, with voting closing at 12noon Tuesday, 24 October 2017. The DairyNZ Annual General Meeting will be held in Rotorua on Wednesday, 25 October 2017. Election results will be announced at the meeting. For further details contact the Returning Officer as below. Anthony Morton Returning Officer – DairyNZ Inc 0800 666 033 iro@electionz.com

URL

17

c notices

one in the rural sector to make sure the messages we convey are seen in a positive light. This might be making sure stock are being moved to clean ground in the current wet spell and not being seen by the public plodding through paddocks with mud up to their bellies. Some will cry “easier said than done” or “that’s the way we’ve done it for years”, but sadly that won’t wash today. With

the calving season well underway, there will be still- or new-borns that won’t make it through their first night. But does the corpse need to lie in the paddock next to the road for a day or more? Surely not if you’re checking stock regularly. The service sector also has a part to play and by doing the job right can only reinforce the good PR work taking place. If you hadn’t given it any thought, the new grass harvest season is only a matter of weeks away and rural contractors will be burning the midnight oil – if the ground ever dries up. Those hard-working souls should make sure when travelling the

Rural News 17x2

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PUBLIC RELATIONS is crucial to New Zealand’s agricultural sector now, as the anti-farming lobbies try to paint a negative picture of the country’s biggest earner. Global giant Fonterra has been leading the charge with notables like Richie McCaw and the 4.31am campaign, which has followed ‘real farmers’ telling their own stories and lately some farmers visiting the destinations of the raw products they produce. Likewise, the appointment of Katie Milne as the first woman president of Federated Farmers is a coup that will put before the public a fresh face they can relate to. Meanwhile, the new bobby calf loading regulations and the sterling efforts of the nations’ farmers to keep stock out of waterways also places a tick on the plus side of the PR ledger. But it’s up to every-

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your contact:

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Farmers and rural contractors should make sure when travelling on the roads to pull over and let queueing traffic pass when it is safe to do so.

roads to pull over and let queueing traffic pass when it’s safe to do so. And if moving after dark ensure that rigs are properly lit and rear-facing white work-lights are turned off. Some contractors still operate under the ‘she’ll be right mantra’ as evidenced by one such individual who was working off SH26 in Waikato between Hamilton and Morrinsville recently. Using an elderly John Deere and rotary slasher to deal with two years growth of a barbary hedge, he was working without any signage to warn approaching motorists. Debris was being thrown across the full width of the highway,

unavoidable by motorists or pedestrians. When approached about the mess he said “it’s not my problem mate, I just cut the hedges”. A quick re-education session reminded him that it was indeed his problem and a big one. A call to NZTA would likely yield him a stopwork notice and a pain in the bank account for the clean-up. The days of the old chestnut ‘that’s the way we’ve always done it and got away with it’ simply won’t wash in the times of Facebook, Twitter and 24-hour news feeds. So wake up and keep the message positive, for the sake of us all.

RURAL NEWS // AUGUST 22 2017

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