COMPETITION
ANIMAL HEALTH
NEWS
Be in to win a new Yamaha AG125. PAGE 20
Velvet pills aid dog welfare.
Bacterial cattle disease spreads to North Canterbury. PAGE 21
PAGE 38
TO ALL FARMERS, FOR ALL FARMERS SEPTEMBER 5, 2017: ISSUE 637
www.ruralnews.co.nz
Creaming China’s ultra-rich SUDESH KISSUN sudeshk@ruralnews.co.nz
WEALTHY CHINESE families’ appetite for fresh New Zealand milk is growing. Milk New Zealand, which owns 29 dairy farms including the ex-Crafar properties, has launched a new 1L product -- Theland Farm Fresh Milk. About 35,000 bottles of fresh milk
have already been shipped to China. Milk NZ managing director Terry Lee expects to ship about 20,000 bottles per month this year, rising to 80,000 bottles per month by the end of 2018. “Demand for fresh milk is growing in China, particularly for product grown and processed in NZ,” says Lee. The new product is marketed by
All smiles for now “Farmers never smile,” grins North Canterbury Federated Farmers president Lynda Murchison, as she contemplates an excellent lambing season – following three years of drought. The region has enjoyed a “lovely wet winter” followed by a “really nice August,” she says. Murchison and her husband run mainly Corriedale breeding ewes and trade lambs on a property at Waipara, in an area among the hardest hit by the East Coast drought. Lambing is not yet finished, but they scanned at 135%. Like most in the district, they had had to destock, and restocking was a long-term task. Replacement stock was expensive and competition was high. Murchison says there were also long-term effects of the drought on groundwater tables and spring-fed streams, and aquifers are still low. “When you hop down to Selwyn, those guys are still looking at water levels six or seven metres below average levels, but it has come up a long way from where it was,” she adds. “But in the immediate recovery it’s been a good winter and a nice mild early start to spring so there’s plenty of grass growth.” – RURAL NEWS GROUP
the world’s largest online retailer, Alibaba Group, through its ‘88members’- a VVIP channel for middle and upper class Chinese families. TheLand milk comes from Milk NZ’s Collins Road farm in Hamilton; it is processed by Green Valley Dairy and air-freighted by China Eastern Airline Cargo. The product has a 16-day shelf life. “Theland Fresh Milk is 100%
NZ made,” says Lee. “The milk is sourced from pasture-farmed free ranging cows (average of 2-3 cows/ ha). This product contains high natural protein and milk calcium.” This week TheLand milk and the trade deal between Milk NZ and Alibaba will be officially launched at the Collins Road Farm; a live-feed will be beamed into millions of homes TO PAGE 3
INEQUITABLE, NONSENSICAL “A BLUNT instrument that is unclear in its purpose.” That is how North Otago Irrigation Company (NOIC) chief executive Robyn Wells describes the Labour Party’s proposed water royalty or irrigation tax. “On the face of it, it’s inequitable and nonsensical to apply a royalty to water as if it’s a finite resource such as coal or gold,” said Wells. “We all know that when we take water and irrigate, some of it goes back into groundwater flows and some of it goes into growing of grasses and plants,” she told Rural News. “From those plants there’s evapo-transpiration, so it goes back into the atmosphere and it comes back into the cycle. That’s basic science – a water cycle.” Wells says if the purpose was to tax water take, then everybody should be taxed. “If the purpose was to tax pollution coming from the use of water, then the polluters should pay.” Wells pointed out that no-one now pays for water; they pay for the capital and operation of the infrastructure. “Even in Auckland, people are paying for the infrastructure -- the pipes and the operation of the pipes to bring the water to the door. We already charge our farmers for that at NOIC.” She says NOIC also spent substantially on environmental management and enhancement. Wells noted that the Waitaki River is a good quality river in an area where a lot of good environmental work is done. She says the farmers of North Otago would be paying a royalty which would probably have to go somewhere else in NZ. – Nigel Malthus
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RURAL NEWS // SEPTEMBER 5, 2017
NEWS 3 ISSUE 637
www.ruralnews.co.nz
A very good move ful applicant will be known in 2018, with the new medical school to be up pamelat@ruralnews.co.nz and operating no later than 2020.” RHAANZ’s Thompson told Rural ANY INITIATIVE that helps train health professionals ready and willing News the announcement is “definitely to work in rural communities is good, a move in the right direction”. “Both the current proposals on the says Michelle Thompson, chief executive of Rural Health Alliance Aotearoa table have merits,” she says. “But we don’t have a collective view favouring New Zealand (RHAANZ). one proposal over the The Government other.” announced last week a Goldsmith says the plan to establish a school new school would be of rural medicine within geared to meet the chalthe next three years to lenges faced by hightrain doctors for rural and need and rural areas regional areas. and would train about 60 Two proposals are now more doctors per year. before the Government: The cost will be finalone from the University of ised by the business case Waikato and the Waikato RHAANZ’s Michelle Thompson process but, for example, DHB, the other a joint proposal by the Otago and Auckland med- the Waikato proposal is based on Government funding of about $300 million ical schools. Tertiary Education Skills and over 10 years. The Government’s contribution Employment Minister Paul Goldsmith says the Government will now run a would be met by a combination of contestable business case process to existing tertiary funding and future consider all options for delivering the operating and capital budget allowances. new school. University of Waikato vice-chancel“It is our intention that the successPAM TIPA
NEWS ������������������������������������� 1-25 MARKETS ��������������������������26-27 AGRIBUSINESS �������������� 28-29 HOUND, EDNA ���������������������� 30 CONTACTS ����������������������������� 30 OPINION ��������������������������� 30-33 MANAGEMENT ���������������34-37 ANIMAL HEALTH ������������ 38-41 MACHINERY AND PRODUCTS ���������������������� 42-46 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
lor Professor Neil Quigley says National’s election promise to establish a school of rural medicine acknowledges the extent of the health crisis facing rural and vulnerable NZers. “It is heartening to see that the conversation we instigated last year when we proposed a new way of educating medical students at [the proposed] Waikato graduate entry medical school has been recognised and acknowledged.” He says the solution needs to be a fundamental change in the way we select and prepare medical students for community service. “Internationally, the countries successfully addressing these problems have done it by introducing a new medical education model rather than adjusting existing programmes. We owe it to NZ’s communities to get this right,” says Quigley. The New Zealand Medical Students’ Association (NZMSA) welcomes the initiatives but is concerned that any further increase in medical graduates requires a corresponding increase of first year post-graduate jobs with the 20 district health boards.
Creaming China’s ultra-rich FROM PAGE 1
by top Chinese social media groups. Lee says this is the first time NZ fresh milk has been promoted on social media by live webcast to consumers in another country. “This is also the first time Alibaba will promote fresh product directly via live webcast to its VVIP members, and the collaboration has created a new model for how to promote NZ fresh products directly to Chinese consumers.
“It’s an exciting prospect, not only because it promotes the collaboration we have with Alibaba, but also it provides Chinese consumers with insight into where and how the milk is produced. “Traceability from pasture to plate is very strong in China. Consumers want to know that the product they are consuming has been produced with the highest animal welfare, environmental and quality processes.”
To facilitate the live feed, MilkNZ has rented a satellite facility for the day to enable visiting Chinese social media groups to video the launch – and the farm – on their phones and direct feed to their followers in China. “The event has been timed to facilitate the highest viewing – 2pm NZ time which is 10am in China,” says Lee. @rural_news facebook.com/ruralnews
RUATANIWHA DAMNED THE CONTROVERSIAL Hawkes Bay irrigation scheme and proposed Ruataniwha dam has finally had the plug pulled on it by the regional council. Last week, Hawkes Bay Regional Council voted – after five years, two different councils and $20 million spent – to pull its support for the proposed Ruataniwha dam. HBRC says it wants to focus on other priorities and support its investment arm, Hawke’s Bay Regional Investment Company Ltd (HBRIC), to look for other investors for the scheme. HBRC chief executive James Palmer told councillors the move “signals the end of the road, in terms of the council’s financial support for the scheme”. HBRIC says if the scheme is to proceed in some form it would be best led by investors other than the council. Many had predicted the project’s demise after the Supreme Court in July ruled against a proposed land swap needed for the $330m project. The land swap would have allowed land to be flooded to create the Ruataniwha water storage scheme, the largest irrigation project in the country. Without it, the scheme’s ability to proceed was uncertain. Meanwhile, Federated Farmers says the decision by HBRC to withdraw support from the project leaves questions on the region’s future water storage capability. “In some ways it is good that the council has finally called it,” Hawke’s Bay provincial president Will Foley says. He added that farmers who invested in the scheme can now move on and consider what’s best for them and their businesses, but the question of water storage and the region’s resilience against droughts is still on the table.
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RURAL NEWS // SEPTEMBER 5, 2017
4 NEWS
Fert co-op backs farmer water group NIGEL MALTHUS
RAVENSDOWN CHAIR John Henderson has added the co-op’s weight to a pledge by New Zealand farming leaders to help make our rivers swimmable for future generations. The Farming Leaders’ Pledge was signed by a group of NZ pastoral farming leaders representing at least 80% of farmed land, committing them to working to make rivers swimmable for their children and grandchildren. Henderson said Ravensdown is an organisation whose purpose is
strongly aligned with the pledge. “I grew up and now farm beside the Rangitikei River. I’m committed to seeing this pledge to fruition,” said Henderson. “Those who are not familiar with Ravensdown may have thought it odd that a fertiliser company is represented in the group making the pledge. But the truth is it couldn’t be more appropriate.” Henderson said the co-op does more than import and manufacture key nutrients for the pastoral farming sector. “We have the fastest-growing environmen-
tal consultancy business in NZ and in the whole team employ the largest number of certified nutrient management advisors in the country. “It’s not the size of our consultancy we pride ourselves on though, it’s the quality of advice and our sense of common purpose -- to enable smarter farming for a better NZ.” The leaders group making the pledge includes a Ravensdown director, sheep and beef farmer Bruce Wills. But Henderson said that with Wills there in his own right as a farming leader, Ravensdown
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Ravensdown’s John Henderson says the co-op firmly supports the Farming Leaders’ Pledge.
wants to clearly state its support for the pledge. The co-op is intent on minimising sales of its products to only what is necessary, he said. “We’ve had this debate
in the boardroom. If a farmer rings up and says ‘I want 500 tonnes of nitrogen and I’m going to put it on at 200kg/ha’, we’re going to say to him ‘We won’t sell it to you’.
There’s a bigger picture here than just Ravensdown’s profit. We’re all in the same boat, whether you live in Auckland or Tutira.” The co-op is putting a lot of effort into technological advances such as computer-controlled variable-rate precision spreading from the air. Henderson said NZ needs smarter farming for the sake of its environment, prosperity and for communities. “As farming faces disruptive trends that will have a bearing on the value it contributes to NZ, Ravensdown is evolving so that the children of today and tomorrow benefit from our efforts. It’s long-term thinking and stewardship, building something lasting that collectively we can be proud of.
“The water pledge is a great example of this kind of thinking and Ravensdown has an important role to play in making this vision a reality.” Henderson said Ravensdown was formed 40 years ago by farmers who wanted robust science, quality products and advice on working smarter and more efficiently. “The shareholders of today are looking for ‘smarts’ that centre on trusted science, strong relationships and a concern for the environment. “The pledge to make and keep NZ rivers swimmable requires a longterm commitment and is a multi-faceted challenge. But with collaboration, science, technology and the will to do so, we will be able to achieve this goal,” Henderson said.
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OTHER SIGNATORIES to the Farming Leaders’ Pledge are Mike Petersen (sheep and beef farmer), Michael Spaans (dairy farmer and DairyNZ chair), James Parsons (sheep and beef farmer and Beef + Lamb NZ chair), John Loughlin (Meat Industry Association chair), Katie Milne (dairy farmer and Federated Farmers president) and John Wilson (dairy farmer and Fonterra chair). As spokesperson, Milne said the intent was clear. “Many of our rivers are not in the condition we all want them to be. We are doing this because we want our kids and their kids to be able to swim in the same rivers that we did as children. And by swim we mean swim. “We’re standing up and saying we haven’t always got this right. More work is required and we will play our part. While there has been progress on farm in the past 10 years, we know
Farmers’ Pledge signatories Michael Spaans (dairy farmer and DairyNZ chair), Bruce Wills (sheep and beef farmer and Ravensdown director), Katie Milne (dairy farmer and Federated Farmers president), Mike Petersen (sheep and beef farmer), Fonterra’s Carolyn Mortland (on behalf of dairy farmer and Fonterra chair John Wilson), John Loughlin (Meat Industry Association chair) and James Parsons (sheep and beef farmer and Beef + Lamb NZ chair).
there is more to be done and that it must be done fast and together. “Today we’re not laying out the detail on the huge amount of work going on already on farms up and down the country and how these
efforts will need to increase,” said Milne. [“But we are] as farming leaders signalling our commitment to making NZ’s rivers swimmable and we’re doing everything we can to achieve that.”
The Farmers Weekly 09/2017 (15 x 3) 150 x 110mm
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Helping grow the country
RURAL NEWS // SEPTEMBER 5, 2017
NEWS 5
Wool carpet sales hit the floor PAM TIPA pamelat@ruralnews.co.nz
NATIONAL WOULD if re-elected extend ultra-fast broadband to 190 more rural towns at a cost of $270 million. And it would extend rural broadband to 74,000 more households and businesses, communications minister Simon Bridges says. “We’re also bringing forward the completion of the UFB network by two years. We started UFB in 2010 with the goal of connecting 34 towns.... Earlier this year we expanded it to 200 more towns and today’s announcement would bring us to 390.” He says because UFB is not feasible for every rural community, the Rural Broadband Initiative provides faster internet to homes and businesses outside UFB areas via fixed lines upgrades
and new fixed wireless coverage. The $270m would be in addition to $150m the Government has already allocated for rural broadband and mobile coverage. Its mobile ‘black spot’ fund will give mobile coverage on 1000km of rural highways and at least 100 tourist areas. “We are providing coverage along remote parts of the state highway network that until now had no coverage at all. For example, SH6 on the West Coast and SH1 in the Far North,” Bridges says. “By 2022, 87% of New Zealanders will have access to UFB and 99% will have access to high speed internet.” The rural broadband and mobile black spot work will require 450 new towers in addition to 150 so far built.
Cavalier says the decline in wool carpet sales in NZ has been huge.
wool growers. “It is really demand out of China that moves the wool price. “In the last couple of weeks that has looked to improve a bit; more has been moving but prices are still very low. I can’t see prices changing dramatically in the near term.” His comments were based on questions on Cavalier’s annual report which showed a net loss after tax of $2.1 million for the year ending June 30, 2017. This result reflects major manufacturing restructuring in the last 12 months, with rationalisation and plant consolidation between Christchurch, Wanganui and Napier, says Alston says in his annual report.
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TEN YEARS ago 80% of the carpets sold in New Zealand were wool; now it is only about 15% of carpet sales, says Cavalier chief executive officer Paul Alston. The trend has accelerated for three or four years and has “moved very quickly and dramatically,” he told Rural News. The decline in wool carpets sales in NZ has been “huge,” he says. “We would like to have more NZers buy wool carpets but a lot of them have gone to synthetics. It is the consumer and their preferences. “We all prefer wool but people are buying synthetic products. People are importing carpet as well… mostly synthetic carpet.” Wool is still a big seller for Cavalier in Australia and the rest of the world so “we still push it,” he says. Similar percentage declines in wool carpet sales are seen overseas as well but they are bigger markets. However over 50% of what Cavalier sells now is synthetics. “In the end we’ve got to meet the market so we are producing synthetic carpets as well.” Alston is not optimist in the short term for NZ
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RURAL NEWS // SEPTEMBER 5, 2017
6 NEWS
Sensible, practical and affordable - Feds With the general election only a couple of weeks away, Rural News asked key industry bodies what they would like to see for the primary sector from a newly-elected government. In this week’s issue Federated Farmers and Horticulture NZ give their responses. Next issue, we will carry DairyNZ and Beef+Lamb NZ’s replies, as well as questions posed to the key political parties on their plans for issues affecting the rural sector. FEDERATED FARMERS says its ‘Farmers’ Manifesto’ challenges political parties in the upcoming general election to take a “sensible, practical and affordable” approach to tackling issues of high importance to its members. It wants a ‘targeted catchment approach’ in addressing water quality whereby sustainable economic growth can be achieved along with environmental goals. “We support a framework for catchment partnerships that co-ordinates community, council and scientific efforts. This could involve a range of taxpayer and region-wide rates-based funding to assist in the most cost effective way, to manage our regional waterways. “This way we can target hotspots that need immediate attention by
applying science based data, investing resources and funds more wisely, to understand and ultimately alleviate the worst affected areas.” Farmers nationwide have made, and will continue to make, significant environmental improvements in how they manage the land: dairy farmers have spent at least $1 billion over the past five years, and sheep and beef farmers have been the main contributors to setting up QEII covenants that protect private land for conservation; the “real and opportunity cost” of this was $1.2 to 1.4b, Feds says. “Farmers are on a journey to improve our waterways and we call on all New Zealanders to back our campaign and join us in doing our share. “As every catchment is unique in its current state and how it should
be managed in the future, catchment communities should have more say in how their waterways are managed. “An open and frank consultation which weighs up economic and environmental outcomes is vital and can pave the way for changes that are sensible, practical and affordable.” In the wake of several high-profile biosecurity incursions in the past year, Federated Farmers recommends greater focus and investment in biosecurity measures, which is fundamental to protecting the country’s prized primary sector. “There is no doubt we need to develop and enhance our world class biosecurity system. The Government Industry Agreement (GIA) is a progressive step and allows for more efficiency with responding to future incursions.
“But the risks are increasing due to more incoming traffic to our shores and this means we have to pursue strong science based solutions backed by strict, enforceable laws which lead to significant penalties.” The Farmers’ Manifesto is also calling for reform of the Resource Management Act (RMA) where there is redress of economic priorities which underpin rural economies and their social prosperity. “Federated Farmers view RMA reform as a matter of national importance. A review of the current principles relating to property rights, rural production and how it impacts on the economic returns at the farmgate should be factored into future reviews so that farmers and rural economies aren’t overlooked or disadvantaged.
What Feds wants Federated Farmers is also calling for: ■■
Continued efforts to realise the benefits of free trade
■■
The building of a science investment programme that delivers on economic and environmental goals
■■
A continuation of a pragmatic approach to climate change
■■
Increased efforts to assist with skill shortages on farms
■■
Improved educational opportunities for remote rural communities including an increase in boarding school bursaries
■■
Increased effort to improve telecommunications connectivity in rural areas
■■
Fairer investment in tourism-related infrastructure
■■
Better rural policing
■■
Stronger deterrents for livestock theft.
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RURAL NEWS // SEPTEMBER 5, 2017
NEWS 7
A need to keep hort sector booming THE $5.6 billion horticulture industry is a big contributor to New Zealand’s economic wellbeing. To keep growing and contributing its acknowledged benefits, the industry lists five priorities it believes the next government must address. 1. Biosecurity Biosecurity is consistently listed as the number-one concern for growers. Given NZ’s heavy reliance on primary industries, a devastating pest or disease could hugely affect individual businesses, families, communities, food supplies and the nation’s economic wellbeing. In horticulture, we have seen this with Psa, which ravaged Bay of Plenty kiwifruit orchards
in 2010 and is still costing growers today. We need government partnership and commitment for both appropriate border control and preparedness for potential incursions. 2. Food security Growing land tends to be close to urban areas for ease of getting fresh food to consumers in NZ and around the world. We have pockets of land rare in the world, including Pukekohe (near Auckland) and surrounding areas, where soil and climate allow year-round growing of leafy green vegetables. We need to protect this land for affordable, year-round food production. And we need sensible access to water, without which no food grows.
Our most valuable growing land is under threat from houses. Decisions made by local government about land and water use in one area can impact food supply for the whole country, as well as valuable exports. As part of a food security policy, we believe there is a need for central government to be able to consider the national good via a national environmental standard to protect access to land and water for primary producers. 3. Workforce capability Horticulture is growing faster than the pool of skilled labour. Horticulture participates in many schemes to get NZers into work, including people leaving prisons.
We focus on attracting and upskilling NZers first, and we need the education system to be part of equipping people with the right skills for employment. Where we cannot find skilled workers, we support immigration policies focused on supplying those workers, particularly in big horticulture regions outside Auckland. We also require support for schemes to supply seasonal labour during peak harvest and pruning times, including the Recognised Seasonal Employer (RSE) scheme, widely acknowledged as one of the most successful labour mobility schemes in the world. 4. Country of Origin Labelling (CoOL)
An independent Consumer NZ survey showed that 71% of NZers want mandatory CoOL for fresh fruit and vegetables. The Consumers’ Right to Know (Country of Origin of Food) Bill has had its first reading in Parliament and is under consideration by a parliamentary select committee. We want to see this bill progress into law because people have a
right to know where their food comes from. 5. Healthy eating education Understanding the value of healthy food for positive lifelong health needs to start young. Developing the ability to prepare healthy meals will empower our children and young people to be able to access and enjoy a nutritious diet within their budgetary,
cultural, social and time constraints, over a lifetime. The school curriculum is the most appropriate place to teach and develop cooking skills as it reaches all children and provides cross-cultural learning. We want the government to support healthy eating education through the curriculum. @rural_news facebook.com/ruralnews
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RURAL NEWS // SEPTEMBER 5, 2017
NEWS 9
Farmers have heads in sand - Labour PAM TIPA pamelat@ruralnews.co.nz
THE FARMING sector has its head in the sand if it doesn’t realise water is a huge issue waiting to be tackled, says Labour’s primary industries spokesperson Damien O’Connor. If agricultural organisations like HortNZ or Irrigation NZ “are smart they will show leadership on this issue; if they are dumb, they won’t”, he told Rural News. “This simply [requires] a user-pays regime where we need to spend money to clean up waterways, to better monitor what is happening with our water management systems and waterways and for more research.” O’Connor says userpays, as a principle, has long been acceptable to farmers, but the water issue has been largely ignored for a long time. “All you have to do is refer to John Luxton’s (former DairyNZ chairman) opinion that for the dairy industry in particular the social licence to operate is quickly evaporating. The industry needs to get ahead of a number of issues. “A royalty on water would effectively provide
funding for storage where it is viable, and for irrigation, better monitoring, research and development and better monitoring of regulations and standards,” O’Connor claims. “If we don’t do this properly our customers will be rejecting our product. We have to produce the finest, most ethically and sustainably produced products in the world and get a premium for them otherwise our future is not too bright.” He says a ‘royalty’ would be applied to all commercial use of water except that coming via reticulated supply. However urban and industrial clean-up of waterways are “just as necessary and need to be proceeded with”. Urban people would also pay for water cleanups of sewage and stormwater systems, but through a different mechanism, he says. In rural areas charges wouldn’t be made for stock water but further details “have to be worked through”. That’s why Labour plans a round-table discussion if elected “because in different parts of New Zealand there are different degrees of reliance on
water and different impacts on waterways, as pointed out by Federated Farmers”. O’Connor also claims that Labour, in Opposition, has not had the resources required
to analyse the details sufficiently and properly. He says this is why it is waiting – pending the resources of Government – to establish the finer details of any proposal. He says if Labour was
forced into the detail now it may not be accurate and fair. “We want to be accurate and fair so that what we implement is workable and people can see it is logical.”
Labour’s Damien O’Connor is defending Labour’s water tax policy.
TAX IRKS MID-CANTERBURY ENJOYS a direct relationship between water use and employment, says Federated Farmers. The unemployment rate in Ashburton district is “miniscule” because the district benefits hugely from irrigation, said Ashburton-based Chris Allen, Federated Farmers spokesman on the environment (water and biodiversity). Allen said Labour’s proposed water tax or royalty – mooted at 2 cents/m3 -- could cost individual irrigated farms $10,000 to $35,000 each. That would be a lot of money not going back into the local economy, where each dollar spent recycled about six-fold, he said. Allen said 85% of the national water tax take would be from the East Coast of the South Island, 25% of it from Mid-Canterbury alone. Echoing an Irrigation NZ analysis which showed that the bulk of the tax would be gathered in regions where the rivers were already cleanest, Allen said the most polluted rivers are nowhere near where irrigation is happening. “It’s not going to fix any river that’s not being worked on already,” he said. - Nigel Malthus
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RURAL NEWS // SEPTEMBER 5, 2017
10 NEWS
North Otago expansion ready to flow NIGEL MALTHUS
THE NORTH Otago Irrigation Company (NOIC) expects its $53 million stage two expansion to be fully operational by the end of September, following a year’s delay caused by construction problems. Opened in 2006, the NOIC scheme takes water from the Waitaki River and serves an area of the Oamaru hinterland, south of the river. Stage one and some previous small expansions now irrigate about 15,000ha. Stage two will extend the irrigated area southwards to the Maheno, Kakanui and Herbert, and bring the total to about 25,000ha, of a total command area of 64,000ha. The expansion was due to have started running last spring, but a major failure in a main pipeline, traced to a particular jointing component, forced the contractor McConnell Dowell to redo much of the work. NOIC chief executive Robyn Wells told a recent Otago Chamber of Commerce irrigation forum in Dunedin the work involved reinstalling 136 joints on 86 properties and rechecking hundreds of valves. But she emphasised that McConnell Dowell was commit-
ted to putting it right. The delay had cost NIOC about $2 million in foregone revenue, but Wells said the contract had been set up “on the basis of remedies if the contract was late. We are pursuing those remedies”. Thirty of the 85 new offtakes and two of four new booster pump stations had been commissioned by late August, and the project was now on track for completion by the end of September, said Wells. The delay meant that the new stage two shareholders were not getting any return on their investment, but that was offset by NOIC not charging them the usual annual fixed charge. It was also lucky for many that last spring and summer had been far wetter than typical. “Each of them will have their individual equation on what [the delay] meant for them but of course that’s caused them some angst and concern,” said Wells. “That’s why we’ve had the McConnell Dowell managing director and their Australian-based chief executive over here on several occasions to assure all of our shareholders they are
A storage pond is filled for the North Otago Irrigation Company’s Stage Two expansion.
going to follow through and deliver on this infrastructure.” Wells said economic analysis showed that between the census years of 2006 and 2012, the scheme created significant GDP and jobs for the region, and that similar increases of 4-6% could be expected from the expansion, depending on land use and commodity prices.
“We expect it to impact positively on the economic wellbeing of the region.” NOIC’s shareholders were allowed at most 1 share for each hectare and the average was about 1.3ha per share. NOIC was extremely efficient in water use because the scheme was fully piped and pressurised. The scheme took water only when needed and
farmers could only take 0.4L/share – a modest amount which was not actually enough in the driest years, or about one year in 10. “We’re pretty much as efficient as we can be,” she said. Wells emphasised NIOC’s environmental commitment, as the first irrigation company to require environmental farm plans. “Every single one of our shareholders who have bought shares in our expansion is required to complete an environmental farm plan and then we do an assessment of where they’re going to irrigate to make sure it’s not high risk and we look at their land use as well.” Very few, if any, of the stage two shareholders were planning to use it for dairy conversions, said Wells. Most would be taking water for drought protection and may be moving to sheep and beef finishing or dairy support, from dryland sheep or beef. “We’ve had a couple of dairy operators who are coming off run-of-theriver irrigation and are getting some of our shares, which means they now have to come under our environmental farm plan.”
RURAL NEWS // SEPTEMBER 5, 2017
NEWS 11
A wake-up call for biosecurity PAM TIPA pamelat@ruralnews.co.nz
TINY CREATURES in soil that attack plants have been seen to survive for at least three years stored in dry conditions in a recent AgResearch study. This gives new insights into the biosecurity threats posed by passenger travel and trade between countries. The research article is published in the open access journal Neobiota. The findings of the study also add to the discussions about how best to detect these creatures, called nematodes, before they cross borders and potentially reduce yields of important crops and pasture. Nematodes are very small worm-like organisms. They can be extremely hardy and can have beneficial and detrimental impacts. The harmful ones, the plant parasitic nematodes (PPN), include species that attack plants, reducing their growth and survival. In the study, soil collected from a native forest and an organic orchard was stored separately in cupboards at room temperature for 36 months. Samples were then taken at regular intervals to see if any nematodes could be recovered from the soil and, if they could, whether they were able to infect plant hosts. “In the study we used different methods to detect nematodes including a water misting technique to draw them out of the soil, and a baiting method - where we grew white clover and ryegrass plants in pots containing a soil sample,” explain the authors.
“One of the PPN we looked at was the root lesion nematode. We found that lesion nematodes were able to successfully invade the roots of ryegrass even after 36 months,” says AgResearch nematologist Lee Aalders. “They were also able to produce offspring at 13 months. Interestingly, no PPN were recovered from soil stored beyond the 13th month using the three-day misting technique.” This means that given the right conditions, PPN in soil - carried on seafreighted items, footwear or used machinery, and protected from sun or extreme heat - will survive if they end up near a suitable host plant. This is a result that may not be detected using an extraction test like misting. For quarantine officials around the world, this result is an important find, as it reinforces the risk associated with soil that, even though it may look sterile, unwanted nematodes may be present and undetected until paired with a suitable host plant. “In the context of biosecurity, we think the development of a generic test for plant parasitic nematodes - based on a molecular based bioassay - would enhance the probability of detection of PPNs and so prevent unwanted incursions beyond the border.” Earlier this year, another AgResearch study into the survival rates of various transported soil organisms and in Neobiota concluded that biosecurity risks from soil organisms will increase with declining transport duration and
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12 NEWS
High yields boost kiwifruit returns
Zespri chairman Peter McBride.
growth to come from this exciting new product.” The Zespri global supply business sold 16.6m trays, driven by
a 46% increase in Gold sales. Total sales revenue was $216m, up from $184m in 2015. Profit before tax increased to $11.9m versus $10.4m in 2015. “Growth in ZGS production is expected to be a significant driver of corporate income in the years ahead. Moreover,
optimism in the growth potential of SunGold is strong, and fulfilling demand necessitates the expansion of 12-month supply of SunGold.” Jager says 12-month supply is critical to Zespri’s ability to optimise SunGold growth and Zespri’s brand strength globally. If Zespri does not
supply, its competitors will, and offshore production of SunGold is significantly lagging demand. “The challenge should rightly be about whether we should go faster with offshore supply rather than slower.” Chairman Peter McBride said 2016 was a remarkable season of record yields and the largest-ever NZ crop. Zespri’s net profit after tax more than doubled from $35.8m to $73.7m, mainly due to licence revenue from the SunGold tender in 2016. Zespri paid investors a full year dividend of 25 cents a share. In the 12 months to March 31, Zespri’s share price rose from $1.82 to $4. The share price was $5.80 post dividend. “There is currently a high level of confidence in the NZ kiwifruit industry and this is reflected in strong asset prices including orchard values and Zespri shares. On the one hand these strong
asset prices are very positive and a rational reflection of strong industry performance following the recovery from Psa. “On the other hand it is important that I note that the business of exporting NZ kiwifruit remains, as it always has done, exposed to significant risks.” Zespri is aware of the judgement and balance required in its approach to additional licence release of SunGold. The two 400ha tranches of SunGold licence released in 2016 and 2017 attracted strong demand and as a consequence high bid prices. “Our current plan is to allocate a further 1200ha in 400ha tranches during 2018, 2019 and 2020, in light of the continuing strong demand outlook,” says McBride. But he emphasised that the Zespri board is not locked into this plan. It will be reviewed each season and adjusted according to product demand and performance.
KEEPING GROWER CONTROL VITAL AS ZESPRI grows globally, it is critical NZ kiwifruit growers continue to be at the heart of the industry, says Jager. “As we continue to grow and commercialise proprietary varieties to enable 12-month supply, Zespri will necessarily get bigger and more global,” he told his last annual meeting as chief executive. “At the same time, it is critical that we maintain our industry cohesion onshore. In the end, NZ kiwifruit
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THE INCREASE in the average yield per hectare for Green was a key factor in “remarkable” volume growth in the 2016-17 season, says Zespri chief executive Lain Jager. The sharp increase in volume and late start to the season put pressure on pricing, with returns falling to $4.36 per tray ($5.13/tray in 2015-16), he told the annual meeting. However, high average yields of at least 12,000 trays enabled the industry to achieve average returns per hectare above $50,000 for the third year in succession ($53,555 in 2016-17, $56,673 in 201516). Zespri had a record season with global sales up 19% from last season
ce
pamelat@ruralnews.co.nz
to $2.26 billion from exceptionally high yields. Net profit after tax grew from $35.8 million to $73.7m and earnings per share grew from 29 cents to 61 cents. Underlying earnings per share, which exclude licence income and the effect of the China legal provision, grew from 17 cents to 21 cents. Jager says overall Gold sales increased by 48% to nearly 48m trays. “We achieved an increase in average OGR (orchard gate returns) per tray from $8.21 to $8.64 with average OGR per hectare increasing from $71,080 to $98,838, driven mostly by vines coming into production as we recover from Psa. “This result reflects strong market support for SunGold and we can be confident there is strong
in
PAM TIPA
growers, not Zespri, are at the heart of the NZ kiwifruit industry and it is critical we remember this as our industry continues to grow.” He said he is confident Zespri is going through the chief executive transition with the industry in good heart and well positioned for the future. However he was looking at what could possibly “derail us from our positive path”.
The biosecurity risk is “as high as it has ever been with tremendous pressure on our borders from both brown marmorated stink bug and Queensland fruit fly”. It is also critical that Zespri and the NZ kiwifruit industry continue driving the rate of innovation right along the supply chain from orchard to retail. “That requires an industry culture that embraces growth and change rather than resisting it.”
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RURAL NEWS // SEPTEMBER 5, 2017
NEWS 15
Japanese beef ‘squeeze’ if TPP fails – warning PAM TIPA pamelat@ruralnews.co.nz
IF WE don’t get Trans Pacific Partnership (TPP) through, we will be seriously ‘squeezed’ in the Japanese market, says trade expert Stephen Jacobi. This will be particularly in beef, but also in a wide range of primary products, he says. “The Europeans and the Australians now have free trade agreements and the Australians already have a very strong advantage over us in beef and the Europeans will have that too once their agreement is ratified,” Jacobi, the executive director of the NZ International Business Forum, told Rural News. “The Japanese have just put a safeguard on beef exports of 50% so that will damage our trade even further. You are talking about over $70 million of business, so it is quite a lot.” Over time Australia and the European Union will “steal a march on us,” he warns. This is not only in beef; the dairy, horticulture, wine and wood sectors will also be exposed. “The real gains in TPP for us came from Japan in the end and not from the United States, and it’s Japan we don’t have an FTA with -- the only country in Asia we don’t have one with now,” he says. Jacobi says the National and the Labour Parties should reach a bipartisan consensus on how to roll out the current TPP process. Negotiations are at a “delicate” stage. “This is too serious for NZ to
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just leave to domestic politics in my view. That’s why we like bipartisanship,” said Jacobi, “We have an opportunity potentially to conclude the Trans Pacific Partnership before the end of the year among the 11 remaining parties, excluding the United State which has pulled out. “It would be a lot easier to conclude that agreement if it wasn’t open to renegotiation.” Labour finance spokesman Grant Robertson has said NZ should hold out for a better Trans Pacific Partnership (TPP) deal that includes blocking offshore buyers from buying existing residential homes. Jacobi says if we reopen nego-
tiations, other countries will come up with different issues and “we will see a repeat of the eight years negotiation we just spent trying to get TPP right”. “That’s the risk. Of course at this stage it is hard to say whether others will want to reopen negotiation. It is conceivable they might. It would be particularly damaging if the market aspects got reopened because that was a very delicately balanced exercise. “For those reasons we would rather stay with TPP as it is at the moment. As you know, the risk for us is that if we don’t get TPP through we will be seriously squeezed in the Japanese market.” “Calling for renegotiation is
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RURAL NEWS // SEPTEMBER 5, 2017
NEWS 17
Science can help bridge rural/urban gap article, he said, were two small observations: that the nearby Harts Creek had been destitute before local farmers had got together and rehabilitated it; and that South Canterbury’s Opihi River gave good fishing; but it did not acknowledge that the Opihi was supplemented by the farmerbuilt Opuha Dam. “My point is that bad news travels fast and can be highly effective in shaping public opinion even if it is not right. The current water debate is a war where perception holds sway over evidence
NIGEL MALTHUS
FARMING LEADER Dr William Rolleston is calling farmers to take charge of the scientific narrative going into the election with the urban-rural divide “as big as it has ever been”. In a hard-hitting address to the New Zealand Institute of Agricultural & Horticultural Science’s ‘Science in a Post-Truth Era’ conference at Lincoln, the former Feds national president said the gap between public perception and scientific evidence is being exploited by activists. “We’ve watched the war on farmers grow since the coining of the phrase ‘dirty dairying’ by Fish and Game some 15 years ago. Even in the last few days I’ve heard farming leaders talk about the hatred directed at farmers, and that NZ has a ‘cowphobia’ and that this election has created an urban-rural divide as big as it ever has been.” The gap between public perception and scientific evidence is not unique to NZ farming but exists in many debates where science matters, Rolleston explained. “Those who work to change public perception in spite of the evidence use a number of tactics,” he says. “They cherrypick data, they drive fear, they oversimplify, they take data out of context. They deliberately confuse correlation with causation and they undermine trust.” Rolleston quoted the physicist Stephen Hawking who recently said that it debased scientific culture when public figures cited some studies but suppressed others to justify the policies they wanted to implement. It led ordinary people not to trust science, at a time when scientific research and progress were more important than ever given the challenges facing the human race. “We have seen activists use this tactic in the debates on fluoride, immunisation, 1080, climate change, genetic modification and water,” he told the audience. “Moreover, in these
William Rolleston
debates protagonists use fake news and half-truths to influence public perception.” As an example, Rolleston cited the campaign against recombinant bovine somatotropin (rBST), which claimed that drinking milk from treated cows could cause cancer, on the rationale that BST caused an increase in the growth factor IGF-1 in milk, and IGF-1 had been shown to facilitate cancer in testtube studies. But in reality it was at such low concentrations that it would contribute less than 1% of a consumer’s IGF-1 levels, even if it made it through the digestion process at all. It was a claim that required “several leaps of faith,” he said. Another example was the claim that babies would die of blue baby syndrome because of increasing nitrates in groundwater in the Ashburton region. “If you extrapolate the data from the US, we could expect to see one baby die from blue-baby syndrome in the Ashburton region every 5000 years,” Rolleston added. He said fear and simplicity were powerful weapons in driving public perception. Nothing we do is without risk, yet the demand was often that any new technology should be risk-free. The conservative regulation in genetic modification, particularly in New Zealand, had been driven more by public perception than by science.
Activists use the precautionary principal as a weapon against scientific progress, arguing against doing anything that entailed any risk at all. “This is not a useful test, as it ignores the risk of the alternatives. I could have avoided the risk of a car crash by not getting out of bed today, but would have run the risk of bed sores and possibly starvation.” Rolleston blamed Greenpeace for bringing an international campaign against farming, particularly livestock farming, to NZ. It is an organisation which says farmers should be taxed for water yet it has spent thousands in the courts to avoid paying tax itself, he said. Greenpeace’s antidairy fundraising ad campaign was sensationalist, and they had used the Hastings water contamination to bash dairy farmers when the closest dairy farm was 40km away. He also criticised the Environmental Defence Society for claiming that Environment Canterbury’s Plan Change 13 would increase dairy intensification in the Mackenzie region when there is not yet one dairy farm in the PC13 area; the media meanwhile “weighed in” with photos of centre pivots, also outside the PC13 area. Rolleston also noted what he called “the final Selwyn River hurrah before the rains came and ruined all the fun” -- a (Christchurch) Press front-page article on how fishing had been ruined in the Irwell River. Buried deep in the
in the short-to-medium term at least.” An outraged public is demanding farmers pay for their negative effects. “I have to ask, what about the positive [effects]?” Rolleston said NZ farmers are proud to live without market-distorting subsidies and also stand against the imposition of market-distorting penalties such as carbon charges and water taxes. “You only need to go to Argentina to see the corrosive effects of export taxes on farm productivity and environmental outcomes.
“We have seen constant ramping up of regulation with costs borne by the farmers. Perhaps society should consider how our positive [effects] such as the ecosystem services farmers provide every day can be recognised.” Farmers need to take charge of the narrative. It looks like they are behind the game on water quality, when in fact they are ahead. Given ownership of the problems, they would find solutions that were reasonable, practical and affordable, he said. @rural_news facebook.com/ruralnews
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18 NEWS
Boffin backs taxing farmers
Win a new ride! tion given to the little details that make a bike easy to live with day by day -- a farmbike developed on Kiwi farms for Kiwi farmers. Get your entry in now and keep reading over the next few weeks for further chances to win this great prize. • Full entry details of the Win a New Ride competition are in the advertisement on page 20 of this issue of Rural News.
RURAL NEWS Group is pleased to announce a mid-winter pick-me-up for loyal readers. Rural News and Dairy News have teamed up with the good folk at Yamaha and put a brand new Yamaha AG125 up for grabs. The AG125 first broke cover at the 2017 Fieldays and has been deemed by reviewers a worthy successor to the legendary AG100, with special atten-
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FARMERS WOULD respond to clear price and penalty signals on environmental issues such as cutting emissions, says Dr Tanira Kingi, a Scion research leader. The conversation has been going on within Fonterra for years about a pricing mechanism that can incentivise investment and change by farmers, Kingi claims. “Farmers respond to price signals and they also can respond to penalties,” says Kingi, an expert in agricultural development and primary sector analysis. “The introduction of agriculture into the ETS (emissions trading scheme) and the confirmation of a carbon price… is a component of information that farmers would be able to incorporate into rejgging and reconfiguring their farms,” he told the Environmental Defence Society ‘Tipping Points’ conference in Auckland. Regarding price signals, giving dairying as an Fonterra’s Carolyn Mortland. example, he says there is a quality component in there for protein and a penalty for somatic cell counts. But largely if you produce more milk you get the same price as every other farmer. “So it is an incentive to increase productivity. What is needed is a mechanism to diversify and separate out those farmers who are willing to invest in technology to reduce their emissions output or emissions component against the product output. “Right now every dairy farmer in the country has an Overseer file that gives a profile of their kilograms of nitrate leached or phosphate leached per hectare and there is also information there on kilograms of greenhouse gases as well. “We need to move away from kilograms of emissions per hectare to one directly linked to kilograms of output, so that the farmers who are prepared to invest in improved technology to reduce their emissions are rewarded for it.” Kingi says if regulation is the only tool to meet catchment limits and community expectations on water quality then the farming community will always be behind. Carolyn Mortland, Fonterra’s director of social responsibility, says environmental standards within five years will be far higher than today. “It is not helping anyone in New Zealand to not factor in the externalities because we need to adapt,” she says. “Our market is an international market, 95% of our food goes offshore and there are many dynamics in play.” These include the millennial consumers and what they want, what our competitors are doing with food production in Europe and the US, the influence of new technologies and how the producers of the future in Africa and parts of Asia will respond, “not to mention our responsibility here in NZ to protect our environment”. Of course it’s scary for farmers, she says, because it means a transition. We need to know the environmental limits. “I started feeling hopeful about water quality in New Zealand when we started saying ‘let’s find out how much our rivers can take’. It is mind boggling that we haven’t known.”
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Q: What publication did you see this promotion in? Answer: .......................................................................................................................... Name: .............................................................................................................................. Address: ........................................................................................................................... ......................................................................................................................................... ...................................................................... Phone: ...................................................... Email: ............................................................................................................................... Terms and Conditions: Information on how to enter the competition forms part of these terms and conditions. Entry in to the Win a New Ride quiz is deemed acceptance of these terms and conditions. Entry is open to all New Zealand residents except for employees of Rural News Group and their immediate family. Each entrant may enter more than once. To be valid, each entry must contain the correct answers as determined by the Rural News Group. The competition opens on Monday 4th September, 2017 and closes Friday 24 November, 2017 at 11pm. The prize winner will be drawn on Monday 27 November, 2017 and will be contacted by phone and email by Wednesday 29th November, 2017. The winner will be announced to all entrants via email by Friday 1st December, 2017.The promoter’s decision is final and no correspondence will be entered in to. By accepting the prize, the prize winner consents to the promoter using his/her details, photographs and recording of the prize acceptance for promotional and media publicity purposes. There is one prize, of a 2017 Yamaha AG125 motorbike. The winner may be required to pick up their prize from their nearest Yamaha dealer. The prize is valued at more than $4,000. The prize is not transferable or redeemable for cash. All insurance and any on-road costs are at the winner’s expense. All entries become the property of the promoter. The promoter is Rural News Group, First Floor, Bayleys Building, 29 Northcroft St, Takapuna, Auckland 0622
RURAL NEWS // SEPTEMBER 5, 2017
NEWS 21
Cow disease spreads to new area NIGEL MALTHUS
A LIFESTYLE block near Rangiora in North Canterbury has tested positive for the bacterial cattle disease Mycoplasma bovis. It is the first positive result outside the South Canterbury district. The Ministry for Primary Industries says the Rangiora farm is one of three new confirmations, bringing to six the total number of infected farms detected by its tracing and testing programme. The other two of the three new positives are on other properties of the 16-farm Van Leeuwen Dairy Group, where the original outbreak was detected. “All three properties have links to existing infected properties, and this is an entirely expected pattern at this stage of the response,” said MPI response coordinator David Yard. “We fully expect to find more infected properties as we continue our tracing and testing. These detections are evidence of the programme working, not of unexpected disease spread,” Yard says. “All detections to date have links to the original infected properties via animal movements and have been caused by close animal contact. It is encouraging that despite intensive testing no adjacent properties have as yet been identified as infected.” Yard says MPI has no evidence of any means of disease spread other than close animal contact. “This includes the disease having jumped fences – which our scientists and vets tell us is highly unlikely to occur.” The two newly identified Van Leeuwen Dairy Group farms were already under restricted place notices under the Biosecurity Act. The Rangiora lifestyle block is a trace farm that had received a small number of calves from the third infected farm confirmed last week. Yard says MPI is continuing with its policy of not identifying the affected properties, saying it
is prevented from doing so by the Privacy Act, unless the farmers agreed. “However, we do understand community concern about the disease and we are encouraging farmers under controls or investigation to talk to their neighbours, customers and suppliers.” Yard says MPI is continuing to contact individual farms where there is higher risk of the disease, either because they are adjacent to infected properties or connected through animal movements. “It’s a case of ‘no news is good news’. If you don’t hear from us it means it’s not of immediate concern for you.” MPI had said earlier that it had not given up hope of eradicating Mycoplasma bovis despite the spread from the original two Van Leeuwen farms. MPI’s director, response, Geoff Gwyn, said it was not a sign of the disease running rampant in New Zealand but shows the extensive surveillance and testing programme is working. “This is not a game-changer for us. Along with the animal industry bodies we will continue the biosecurity response, find infected properties, control the disease and, if possible, eradicate it. “The disease is well contained on the known properties and we are confident our control measures are sufficient to contain it there. Our surveillance continues to investigate whether the disease had been spreading around the country before it was discovered in South Canterbury,” said Gwyn. Federated Farmers biosecurity spokesman Guy Wigley said it had always anticipated more positive tests. The stock movements had occurred before the disease was identified and so were legitimate. Quite a number of other farms were on the same pathway and also needed to be tested, he said. “At this stage it still looks as though it is con-
MPI’s director, response Geoff Gwyn.
tainable. It’s not out of containment because all these properties are in their sights. There are a known number of properties so I’m still optimistic we can contain and eradicate this disease.” Wigley praised the response of MPI and the vet, Merlyn Hay, who originally raised the alarm. “MPI came in after the disease had been cycling for perhaps six weeks at least before the penny dropped that this was a new organism that hadn’t been seen here. So all credit to the vet involved who managed to join the dots, because it’s a very difficult disease to identify unless you apply the specific test looking for it. And if it’s not a disease that’s already here it’s not a test that you apply, is it?” “In hindsight we might say the testing should have started earlier, or that we should have had the testing equipment on hand,” said Wigley, “But can you have testing equipment on hand for every exotic disease that’s overseas and not here already?” MPI had estimated that 39,000 tests would be needed to show the extent of the outbreak and were doing them at a rate of about 3000 a week. DairyNZ said it was working with MPI and others to help contain the spread of Mycoplasma bovis.
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NEWS 23
Chilled beef and lamb hits China MEAT COMPANY Silver Fern Farms has started a trial sea-freighting chilled lamb and beef to the lucrative China market. The first sea-freight container of chilled beef left New Zealand two weeks ago and will arrive in China in early September. The pilot is part of a six-month trial negotiated by the Government to test chilled red meat access into the China market.
cuts at a premium in supermarkets.” Howie says Silver Fern Farms is NZ’s largest meat exporter to China, with $316m of sales to the region in 2016. All this entered the market in frozen form. He says Silver Fern Farms is now testing protocols for smallscale air-freight orders of beef to key food service distributors who service high-end
With chilled product in China we need to test the process at scale. Small volumes have been air-freighted to China; now this first sea-freight shipment is to test the market, says Silver Fern Farms general manager sales Grant Howie. “It is important that during this trial period we test the market’s protocols and supply chain for chilled meat at sea-ports as well as via air-freight,” Howie says. “With chilled product in China we need to test the process at scale, which is why we have worked with one of our customers to take a full 20ft container of chilled product.” SFF’s relationship with Chinese shareholder Shanghai Maling has helped facilitate this seafreight order. Howie says SFF is working with one of Shanghai Maling’s subsidiaries which will distribute the company’s chilled beef to several of its supermarkets in and around Shanghai. “The cuts they are taking are important. They are primarily secondary cuts of prime beef – cuts that would otherwise have been sold frozen at lower prices. They have the capability to position these traditional Chinese
restaurants and hotels in Shanghai, Guangzhou and Shenzhen, and an airfreight order for lamb cuts into a major multi-national high-end supermarket chain. “For the past two years we have been developing the premium food service market with our eating quality (EQ) graded Silver Fern Farms Reserve Beef as a frozen product. Our Reserve and Angus Beef frozen programmes are aged for 21 days in NZ before being shipped frozen. Now that we can ship chilled, that ageing can occur during the voyage to China,” says Howie. “This is a complex large scale chilled pilot to test a variety of market entry options as well as a range of products. We have two air-freight orders destined for our food service customers in Shanghai,” he adds. “We have also partnered with a major multi-national high-end supermarket chain for an order of lamb cuts, including premium lamb racks. “We look forward to further orders at scale so we can test sea-freight container orders once the new season lamb production comes on in coming months.”
Silver Fern Farms general manager sales Grant Howie.
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NEWS 25
Irrigation could pump millions into Northland - study the demand for water was significantly more on a per hectare basis – but varied less seasonally – in the Kaipara than the midNorth. “Water in the mid-North will be utilised over a longer period of each irrigation season.” Smart says a suggested, largerscale Kaipara water storage option would encourage diversification of existing land use, as well as provide a reliable water supply within Dargaville and the wider community. “The study estimates about 6300ha, much of it on the Pouto Peninsula, could be irrigated for about $115 million, predicting this could lead to employment for another 950 people and contribute about $85m to the regional’s GDP annually.” Smart says while growers couldn’t afford to build the schemes alone, given the likely flow-on economic, environmental and other benefits they would offer the wider community there is a potential case for wider investment, including by central and local government. “The study acknowledges that the potential cost to develop all four schemes in the scoping report – as much as $300m – would be considerable for Northland alone. With that in mind, it suggests one possible solution could be to establish a special funding body to enable a mix of public, private and iwi investment.” The council plans to share the report’s findings with its district council counterparts and liaise with them and central government to see what appetite there may be, if any, to progress things. However, even if support was forthcoming, it could still take several more years – and many millions of dollars of design and engineering work –
before construction of any irrigation schemes finally began. @rural_news facebook.com/ruralnews
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A NEWLY released study suggests major irrigation projects in Kaipara and the midnorth of Northland could create hundreds of jobs and boost the regional economy by tens of millions annually. Despite relatively high average annual rainfall, a lack of suitable storage means much of this water can’t be conserved for use at other times, including summer and during the droughts that have plagued parts of the region in recent years. Authorities keen to see the region’s rainfall used more sustainably have looked at the feasibility of setting up more irrigation schemes, not only to ease drought impact but to potentially deliver economic and environmental benefits. Only about 8500ha of Northland is irrigated (most of it for horticulture) and the region is home to just two 1980s-built irrigation schemes - one near Kerikeri and the other at Maungatapere, near Whangarei. Penny Smart, who represents the Northland Regional Council’s Kaipara constituency, says any new irrigation ventures would most likely be for horticulture rather than enabling conversion of land to dairy. She says Kaipara and the mid-north have already been identified as potentially viable locations for larger scale irrigation initiatives and the new study looks in more detail at the availability of water and likely viability of community water storage facilities. The $300,000 study, called ‘Scoping of Irrigation Scheme Options in Northland’, was jointly paid for by the regional council and central government. Carried out by a consortium of consultants (led by Opus) over the past nine months, the study found
RURAL NEWS // SEPTEMBER 5, 2017
26 MARKETS & TRENDS L amb - PM 16.0kg
BEEF PRICES
LAMB PRICES n/c
Last Week 5.50
M 2 B ull - 300kg
n/c
5.45
5.45
5.40
Change
c/kgCWT NI
P 2 Steer - 300kg
2 Wks A go 5.50
Last Year 5.70
S te e r - P2 300kg
n/c
5 .5 0
n/c
5 .3 5
P 2 Co w - 230kg
n/c
4.35
4.35
4.40
B u ll - M2 300kg
n/c
5 .4 5
n/c
5 .0 5
M Co w - 200kg
n/c
4.35
4.35
4.40
Ve n is o n - AP 60kg
+10
9 .4 5
+10
9 .4 5
Lo cal Trade - 230kg
n/c
5.75
5.75
5.90
n/c
5.35
5.35
5.50
M 2 B ull - 300kg
n/c
5.05
5.05
5.20
P 2 Co w - 230kg
n/c
4.30
4.30
4.40
M Co w - 200kg
n/c
4.30
4.30
4.40
Lo cal Trade - 230kg
n/c
5.70
5.70
5.60
6.0
Slaughter 26-S ep
26-Nov
South Island 16kg M lamb price
26-Jul
$/kg
6.0
26-S ep Last Ye ar
26-Nov This Ye ar
$/kg
20
5yr Ave
10-Sep 10-Oct 29-Jun
26-S ep
26-Nov
South Island 300kg steer price
5yr Ave
26-Nov
26-S ep
26-Nov
South Island 60kg stag price
$/kg $/kg
8.0
7.0 6.0 26-May
2 Wks A go 215 656
3 Wks A go 223 673
Last Year 218 657
26-Jul 5yr Ave
26-S ep Last Ye ar
This Ye ar
26-Nov
29 Jun
10 Oct
29 Aug Last Ye ar
10 Nov
29 Oct This Ye ar
5yr A ve 218 684
n/c
Last Week 5.80
2 Wks A go 5.80
Last Year 5.40
+0 .2
9.50
9.33
8.34
Change NZc/kg 550
5yr A ve 5.36 8.65
Export demand indicator - UK CKT leg
450
350 29 Jul
29 Sep
29 Nov
Procurement Indicator
Last Year This Year 150 $1.50 29-May 29-Jul 29-S ep 29-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 0.4 -1.0
2Wks A go 79.7 73.9
3 Wks A go 79.3 74.9
Last Year 82.1 79.1
5yr A ve 74.7 67.9
P rocu rement Indicator Procurement Indicator -- North North I.Island 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… 26-May 26-Jul 26-S ep 26-Nov
Procurement Indicator - South Island
9.0
10 Sep
5yr Ave
250 29 May
% Returned NI % Returned SI
26-Jul
k 10 0Aug
UK Leg p/kg
Export indicator - US 95CL D edemand mand Indicator - US 95CL Beefbeef
Change
7.0
10.0
-8 -17
North Island 60kg stag price
8.0
200
Export Market Demand
This Year
USc/lb 26-S ep Last Ye ar This Ye ar
9.0
6.0 26-May
Last Year
% of export returns
$/kg
10.0
26-Jul 5yr Ave
S outh Island Weekly Lamb Kill
200k 300
29-Jun 10-Oct29-Aug10-Nov 29-Oct 10-Sep 5yr Ave Last Ye ar This Ye ar
$2.00
4.5
10 Nov 29 Oct
South Island w eekly lamb kill
400 250k
29 Apr
$2.50 200
5.0
This Year
10 Oct 29 Aug
100 50k
95CL USc/lb NZc/kg 250 $3.00
Last Year
10 Sep 29 Jun
100k
Change
26-Jul
5yr Ave
k 0 10 29 Aug Apr
150k
Export Market Demand
5.5
4.0 26-May
10-Dec 29-Oct
90 P rocu rement Indicator - South I. 85% 80% 75% 70 70% 65% Last Year 60% This Year 50 26-May 26-Jul 26-S ep 26-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 9-Oct 16-Oct 23-Oct 30-Oct 6-Nov 13-Nov 20-Nov 0-Jan 5yr ave Last Ye ar This Ye ar
% of export returns
6.0
10-Nov 29-Aug
South Island Weekly Cattle Kill
4.5 4.0 26-May
This Year
S outh Island Weekly Cattle Kill
0 k 29-Apr 10-Aug
5.0
Last Year
10k40 30
5.5
200
100 50k
5k20 10
North Island 300kg bull price
300
100k
15k60 50
5yr Ave
Last Year 5.76 5.78 5.80 5.81 2.80 5.43 5.43 5.43 5.43 2.70
150k
10 k 0 10-Aug 29-Apr
5.0
2 Wks A go 6.86 6.88 6.90 6.91 4.20 6.68 6.68 6.68 6.68 4.15
200k
50
40 20k30
6.0
4.0 26-May
Thousand head
7.0
40k60
26-Jul
+10 +10 +10 +10 n/c +10 +10 +10 +10 n/c
Last Week 6.96 6.98 7.00 7.01 4.20 6.78 6.78 6.78 6.78 4.15
North eekly lamb N ort hIsland Islandw Weekly Lambkill Kill
250k 400
North N ort hIsland IslandWeekly Weekly Cattle Cattle Kill Kill
Change
Slaughter Thousand head
5.0 4.0 26-May
P 2 Steer - 300kg
Thousand head
$/kg
7.0
North Island 16kg M lamb price
SI
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 +10 6 .7 8
UKp/kg
No rth Is lan d C h an g e L as t c /kg We e k +10 6 .9 8
% Returned NI
+1.6
2Wks A go 74.1
% Returned SI
+0 .5
70.9
Change
85 80%
3 Wks A go 72.5
Last Year 72.0
70.4
67.1
5yr A ve 71.0 68.9
Procurement P rocu rementindicator Indicator-- North North Island I.
% of export returns
Me at
LAMB MARKET TRENDS
BEEF MARKET TRENDS
75 70% 65 60%
Last Year
This Year
50% 55 11-Aug 26-May 11-Sep 11-Oct 26-Jul 11-Nov 11-Dec 26-S ep11-Jan 11-Feb 26-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 26-May 11-Sep 11-Oct 26-Jul 11-Nov 11-Dec 26-S ep11-Jan 11-Feb 26-Nov 5yr ave Last Ye ar This Ye ar
Venison Prices NI Stag - 60kg
+10
Last Week 9.45
SI Stag - 60kg
+10
9.45
Change
2 Wks A go 9.35
Last Year 8.50
9.35
8.20
5yr A ve 7.50 7.56
Beef & venison prices are reported as gross (before normal levies & charges are deducted). Lamb & mutton prices are reported nett (after levies & charges are deducted).
New sheep parentage testing now available
$19 (excl. GST)
GenomNZ - New Zealands foremost animal DNA testing laboratory - will this spring be offering to the sheep industry a SNP based parentage assay. This includes the NZ SNP parentage markers, as well as gene marker tests. For $NZ19 per sample (excl. GST), you will receive Parentage assignment Reporting of single gene tests Client ownership of the SNP genotypes and DNA samples New Zealand based storage of DNA in a 96 well plate format and database storage of genotypes GenomNZ offers a turnaround within four weeks of receipt of ear tissue punch and animal information. We welcome the opportunity to discuss how we can meet your genotyping needs.
For more information contact us at genomnz@agresearch.co.nz or 0800 DNA LAB (362 522)
RURAL NEWS // SEPTEMBER 5, 2017
MARKETS & TRENDS 27
INTERNATIONAL BEEF: The news
from the US for imported beef is disappointing. The market continues to be volatile with the downwards trend dominating. In general, end-users are displaying a real lack of interest in buying imported beef, driven by the steady decline in domestic fed cattle
SHEEP: It’s all beginning to kick-off
for slaughter-ready lambs in the North Island. The lack of numbers to kill has seen competitive pressure intensify and resulted in a significant lift in operating prices. There is still a month to go before the Christmas chilled production period begins, and it looks like it will be a tough ask for processors to keep a lid on prices until then. The market’s been slower to lift in the South Island, though it is on the way upwards. Improving schedules, sunnier weather and low numbers have all caused store lamb values to lift significantly. The average price of a store lamb now appears to be sitting at approximately $130-$140 through the North Island, with per kilo prices just a little weaker through the South Island. More and more ewes with lambs-at-foot are coming out of the woodwork, finding solid interest. Generally the better types have made $85-$92 all counted through the North Island.
WOOL PRICE WATCH Indicators in NZc/kg
Overseas Wool Price Indicators
Change
24-Aug
17-Aug
Last Year
+4
286
282
502
Coarse Xbred
-
310
-
555
Ewe - 35 micron
Coarse Xbred Ewe - 35 micron
Indicators in USc/kg
Ewe - 37 micron
-5
295
300
555
Ewe - 37 micron
2nd Shear 37M
+20
265
245
475
2nd Shear 37M
Wool indicator trends Wool Indicator Trends
850600
600
17-Aug
Last Year
-2
208
210
362
-
226
-
400
-8
215
223
400
+11
193
182
342
Second shear - 37 micron
500
FXI
LI
650400
400
550300
300
450200 25-Aug 25-Nov 25-Feb 25-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
200 25-May
CXI
650700
24-Aug
Change
CXI
750500
c/kg
prices. One worrying trend to watch is the growing preference for fresh product over imported. Some food-service operators are using this as a point of differentiation against competitors.
FXI
LI
- 37 micron Coarse Ewe Xbred Indicator
600
600
Last Year
This Year
25-Sep This Year
25-Nov
Ewe - 35 micron
600
500
550
400
500300 450200 25-May Dec Oct 5yr ave
25-Jul Last Year
700
c/kg
looks to have bottomed out for now, where low supplies are cancelling out any negative sentiment surrounding the beef market. The tightening of supplies have largely stemmed from the improvements in weather throughout the country, causing more farmers to opt for further weight-gain over the short-term. The bobby calf kill has now passed its peak too, and will continue to shrink through the coming weeks. The store cattle trade is quiet throughout the country. There is decent enquiry about through the North Island and there appears to be numbers on-farm to sell too, however most potential vendors are opting to hold onto their stock. It is a similar situation through the South Island, though a few yearling Friesian bulls are being offered through the island. Four-day calves have come down from their peak earlier in August
c/kg
BEEF: The cattle slaughter market
PRICE WATCH
c/kg
NEWS
500 400
300 25-Jul Feb
Apr 25-Sep Jun Last Year
OUR INSIGHT. YOUR EDGE. 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.
Aug 25-Nov This Year
200 25-May 5yr ave
agriHQ.co.nz
25-Jul
25-Sep 25-Nov Last Year This Year
RURAL NEWS // SEPTEMBER 5, 2017
28 AGRIBUSINESS
Contest helps grow industry leaders PAM TIPA pamelat@ruralnews.co.nz
NEW ZEALAND FACES mounting competition from emerging agricultural countries Mexico, Peru, Morocco and Thailand, says Young Horticulturist of the Year competition chair Elle Anderson. Horticulture can stay ahead of the pack by making sure we’re better than our competitors, she says. “Competitions like Young Horticulturist foster innovation, crosssector collaboration and leadership development, all essential to making sure NZ stays competitive and at the forefront of global food supply,” says Anderson. “I want to urge NZers in primary business, particularly the media and also producers, to better support competitions like Young Horticulturist because they’re not fluffy ‘nice-tohaves’ – they’re essential to making sure we’re up for any challenge.” The importance of NZ’s competitions like Young Horticulturist and Young Farmer should not be underestimated, Anderson says. “The success of any primary
industry such as horticulture is susceptible to uncontrollable factors like disease, weather and natural catastrophes, which makes fostering a culture of collaboration and innovation through these competitions essential to surviving adversity and maintaining this country as a significant food producer.” Anderson was announcing the continued sponsorship of the Young Horticulturist of the Year competition by Fruitfed Supplies, T&G and Agmardt; the latter has just signed a three-year contract. Anderson says apart from a handful of committed companies, it could be better supported. Within the Royal NZ Institute of Horticulture (RNZIH) Education Trust, which runs the Young Horticulturist, they are all volunteers who commit money, time and resources to ensuring we develop capable leaders who are innovative and collaborative. “But we can’t do it alone. More need to step up and support these competitions with funding, publicity and resources.” Anderson says she particularly wanted to thank the loyal sponsors
Pukekohe-based Andrew Hutchinson was the winner of New Zealand’s overall ‘Young Horticulturist of the Year’ title in 2016.
of Young Horticulturist because their support shows them as companies that “walk the talk”. Agmardt general manager Malcolm Nitschke, in confirming the notfor-profit organisation’s three-year commitment to Young Horticulturist (it also supports the NZ Young Farmer contest), says horticulture has a tremendous future provided NZ stays at the cutting edge of innovation and technology. “The kiwifruit industry’s success is an excellent example of an industry that endured and adapted to the challenges and downturn cause by the
2015
Psa bacteria,” he says. “In this NZ demonstrated a cuttingedge response in the way we responded and managed our way through the issues and risks that confronted us by using innovation and collaboration.” Agmardt has supported Young Horticulturist for at least 10 years because its mission is to foster innovation and capability in the farming and growing sectors, particularly building future leaders. The national manager of Fruitfed Supplies, Max Spence, says his company supports events and activities that make a significant contribution, and there is no doubt the Young Horticulturist competition fits that description. “New Zealand’s horticulture sectors have a bright future. The sustainability of the industry comes down to being able to produce a product that meets market demands and expectations.” T&G’s executive general manager NZ, Andrew Keaney, says being able to adapt to changing consumer and business demands with agility enables businesses to flourish, including T&G, now celebrating 120 years. “There has been rapid change in our
industry and its only accelerating. As an industry we need to keep adapting and evolving to meet the changing needs of our growers, retailers, wholesalers, consumers and people. “We need to do more to attract people into our industry and retain great talent. The Young Horticulturist competition plays a key role in attracting and retaining young people as it celebrates achievements while testing and growing skills.” Starting April this year, the best young men and women from NZ’s horticulture industry have competed in six regional sector contests to qualify to compete in the Education Trust’s Young Horticulturist of the Year 2017 competition. Finalists (30 years and under) compete for a prize pool of $40,000 that includes a $7500 travel and accommodation package for the winner and a $5500 Massey University study scholarship for the runner-up, and an Agmardt Market Innovation Project first prize of $5000. The finals this year will be held on November 15 and 16, culminating in the awards dinner at Auckland’s Grand Millennium Hotel.
RURAL NEWS // SEPTEMBER 5, 2017
AGRIBUSINESS 29
‘Mega drivers’ bringing change to meat industry PAM TIPA pamelat@ruralnews.co.nz
THE NEW Zealand meat industry is undergoing a long-term shift driven by high-level “mega” drivers, a new report says. As the country lacks large areas of grain/feed producing land, it uses grass-fed meat production systems in export focused species, says Investors Guide to the NZ Meat industry 2017, released
NZ’s meat industry is undergoing a long-term shift.
the South Island stands out for a particularly strong shift. “Looking at 10 year growth drivers, the South Island stands out as increasing beef at the expense of sheep.” Our low intensity model produces results different from our key peers, the report says. NZ generates beef exports worth US$2.4 billion, with trade focused in North America, East
Cattle, particularly dairy cows, are replacing sheep in most regions. recently. The report was commissioned by the Ministry of Business, Innovation and Employment (MBIE) and prepared by Coriolis, an Australasian management consulting firm specialising in the wider food value chain. “The amount of grass area available to the meat industry is falling and the industry is producing fewer animals, and has fewer farming enterprises (consolidation) but more people employed,” the report says. However, NZ may continue to increase animal productivity, the report says. Meat yield varies dramatically by species; yields per head are growing gradually across all key categories except beef, where the average yield is declining. The low input/low intensity system produces smaller animals than most competitors. Total production has increased, the report says. “NZ meat production has achieved stable long term growth through more efficient producers, higher productivity and higher yields; at the same time mix is changing in response to market demand. “Cattle, particularly dairy cows, are replacing sheep in most regions;
Asia, Southeast Asia and the Middle East; trade is mostly boneless (frozen and chilled), the report says. NZ is the global leader in the lamb meat trade, with a strong position in East Asia, Europe and North America. NZ pioneered deer farming and leads the world in venison, an “intriguing and innovative product effectively unknown in most markets,” the report says. Animal fat exports go mostly to East and Southeast Asia. Poultry meat exports mostly go to Australia and the Pacific Islands; there appears to be widespread opportunities for growth worldwide. “NZ trails peer group countries in converting its abundant raw meat into prepared/processed, ready-to-heat or readyto-eat meat products; however the country is catching up fast.” Four broad global consumer mega-trends are driving growth and new product development in the food and beverage industry. NZ meat products succeeding on-shelf in export markets are aligned with these trends, which drive new product development, packaging, product, category and channel innovation.
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RURAL NEWS // SEPTEMBER 5, 2017
30 OPINION EDITORIAL
EDNA
Damned leadership TO PARAPHRASE Mark Twain, “reports of the Ruataniwha Dam’s death may be premature”. Hawke’s Bay Regional Council has pulled the plug on the $330 million project, causing dam opponents to ‘celebrate a great victory’, but farmers and businesses in the region will not be celebrating when the next drought arrives. The long-running saga has been mired in legal challenges and counter actions, costing the council and stakeholders $20m. Ratepayers who provided funding now won’t see returns anytime soon. Sadly, petty politics and factional infighting around the council table has led to HBRC failing to tackle the region’s lack of water availability. The project was dealt an earlier blow by a Supreme Court decision that found the Minister of Conservation acted illegally by trying to make 22ha of Ruahine Forest Park available for exchange with Hawke’s Bay Regional Investment Company Ltd (HBRIC) for the project. The land swap would have allowed this land to be flooded to create the Ruataniwha Water Storage Scheme, the largest irrigation project in the country. Like most regions, Hawke’s Bay receives abundant rain at certain times of the year, but at other times the community cries out for rain. Acute bouts of drought leave the farmers, horticulturalists and businesses in the region vulnerable. Much of Hawke’s Bay land is high value, needing a reliable water supply to run viable businesses. And contrary to opponents’ claims, the proposed Ruataniwha Dam was not a one-way route to intensive dairying in the region. Hawke’s Bay boasts rich horticulture and wine farming soils; dairying and sheep and beef farms also thrive. But they need water. The Ruataniwha Dam would have unlocked much new potential in farming, with economic prosperity for all Hawkes Bay. With HBRC walking away from the project, what now for water storage in the region? Farmers and others must now decide how they can progress a water storage scheme. Perhaps the regional council’s disappearance from the picture will allow a clearer, less political path. Meanwhile, Hawkes Bay’s next drought will remind everyone in the region about HBRC’s lack of foresight and fortitude and how the Ruataniwha Dam would have made a huge difference.
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
“Too much super applied! - he’s lucky not to be in trouble with the Greens!”
Want to share your opinion or gossip with the Hound? Send your emails to: hound@ruralnews.co.nz
THE HOUND Get over it
All hui, no doey
Why?
A Green policy?
YOUR OLD mate hears that Labour’s primary industries spokesman Damien O’Connor is very upset with the coverage by Rural News and other rural media of Labour’s water tax – sorry, ‘royalty’. The West Coast MP is running around whining and moaning to anyone who will listen claiming ‘biased’ and ‘one-eyed’ coverage of the policy. The trouble for O’Connor is that while he might not like what has been written about this appalling, ill-thought-out and anti-farming policy, the opinions expressed are exactly what people in the rural and farming sector think about it. This view has not been helped by his colleague David Parker threatening farmers to stop challenging the policy or he will double the tax! Meanwhile, the Hound hears no complaints from O’Connor about ‘biased, one-eyed’ coverage by the mainstream media of his new leader.
A MATE of the Hound wonders why the self-proclaimed rural and regional champion and old-agepension double-dipper Winston Peters has been so quiet about the anti-farming noises made by his possible coalition partner Labour. He reckons Peters could shut down the huge concern in rural NZ about the proposed water tax by promising to rule it out in any coalition deal with Labour. Meanwhile, your old mate also reckons the so-called ‘kingmaker’ after September 23 could also rule out moves by Labour to include animal emissions in the ETS. However, so far, the silence from the member for North Korea – sorry, Northland – on both these issues has been deafening. The Hound reckons while Peters likes to talk the talk about backing the rural sector, he is not currently walking the walk.
THIS OLD mutt was recently contacted by an irate shareholder of fertiliser co-op Ravensdown. Getting the long-time co-op member’s goat was not any concern about Ravensdown’s pricing, rebate regime or celebrations of its 40th anniversary, but a contributor to the latest edition of the co-op’s shareholder magazine. The upset farmer (and the Hound) would like to know who was the bright spark at Ravensdown who thought it would be a great idea to give free publicity to outgoing Fish & Game head Bryce Johnson. This is the same guy who has spent the better part of his 40 year career at Bitch & Complain bagging farmers and helping create the huge urbanrural divide this country now has?
SHHHHH DON’T tell the Greens, but Kenya has recently introduced the world’s toughest laws on plastic bags that would make even the most fervent watermelon blush. Kenyans producing, selling or even using plastic bags now risk four years gaol or fines of $40,000 as the world’s toughest law aimed at reducing plastic pollution comes into effect. The east African nation has joined 40 other countries that have banned, partly banned or taxed single-use plastic bags. Kenya’s new law even allows for police to go after anyone even carrying a plastic bag. However, not everyone is a fan: the Kenya Association of Manufacturers says it would cost 60,000 jobs and force 176 manufacturers to close. Mind you, your old mate reckons a policy that can do that kind of economic damage sounds exactly like a NZ Green’s one.
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Rural News is published by Rural News Group Ltd. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of staff, management or directors of Rural News Group Ltd.
RURAL NEWS // SEPTEMBER 5, 2017
OPINION 31
Livestock play vital environmental role FOOD AND environmental activists are on record as suggesting New Zealand should be ruminant-free to create a cleaner greener country. This overlooks the increasing body of research which suggests that the grazing animal has an important part to play in improving soil ecological function as well as stabilising the soil to reduce erosion potential and hence sediment in waterways. North American research published in 2016 compared cropping with grazing ruminants. The assessment showed that globally, greenhouse gas emissions from domestic ruminants represented 11.6% of total man-made emissions, while cropping and soil-associated emissions contributed 13.7%. The primary source was soil erosion. The authors explained that permanent cover of forage plants is highly effective in reducing soil erosion, and ruminants consuming only grazed forages under appropriate management result in more carbon sequestration than emissions. This described the situation for most sheep and beef farmers in NZ, whose activities occupy 8.75 million hectares (at least five times the area of dairying). The key to interpretation and applicability of research results to a different geographical area is always the starting point,
plus the similarity of the factors involved in production such as the temperature and moisture regimes. Cropping, where it is possible, generally involves removal of a considerable amount of nutrient which must be replaced with fertiliser. Establishing the crop requires removing the previous crop, preparing the seedbed and killing weeds. This continues throughout the growing season, as might fertiliser addition to match crop requirements. Control of insects and diseases might also be involved. All these activities increase the greenhouse gases associated with the ultimate harvest, which in itself requires more fuel, as does crop processing. In contrast, the grazing animal harvests food for itself, but creates methane (from the rumen) and nitrous oxides (from the dung and soil). These are more active as greenhouse gases than the carbon dioxide released by fossil fuel, but the American research suggests that the positive effect of permanent pasture outweighs the negative effect of the ruminant.
Letter of the HEADER Ferist et quati aut pedici te vollab imod quamet atur soleniet quiatibu. PAGE 15
HEADER Ferist et quati aut pedici te vollab imod quamet atur soleniet quiatibu. PAGE 23
RURALNEWS TO ALL FARMERS, FOR ALL FARMERS
WEEK HEADER
Ferist et quati aut pedici te vollab imod quamet atur soleniet quiatibu.
PAGE 24
018
LENDAR 2
EDNA CA
The authors also point out that for much of the world, crops are not an option because of various resource factors such as rainfall and temperature. For NZ, topography rules out cultivation for crops. Instead, grazing animals turn pasture into humanedible protein and sus-
tainable fibre. In the case of the deer industry, there are also products such as velvet which has health attributes. The other main ruminants in NZ are the dairy animals, which occupy 1.7m ha. Removing dairy animals would also remove a considerable proportion of the
export economy and the associated jobs. Of more importance in the environmental consideration would be the alternative use for the land. Cropping is an obvious suggestion, particularly advocated by people who are vegan (reject all animal products) but overlooks the fact that
(a) NZ is not generally competitive in protein crops (lentils and chickpeas, for instance) and (b) that cropping drives up greenhouse gas fuel consumption and chemical use and increases the potential for erosion. On the Canterbury Plains, once the main area for the cropping
industry, the increase in dairying has also been associated with increase in soil organic matter (and hence ecosystem functioning); the visual clue is in the decrease in dust-storms. Native plantings supported by the increased irrigation on the plains has TO PAGE 32
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RURAL NEWS // SEPTEMBER 5, 2017
32 OPINION
Use soil to deal with carbon PETER FLOYD
THE SOLUTION to the soil carbon conundrum is found in the ability of the practical pastoral farmer to manage and measure the relevant soil, plants and animal key performance indicators that build soil carbon levels on an annual basis.
The reduction in greenhouse gas emissions and the meeting of New Zealand’s climate change obligations is very much in the mind of officials and the thinking public. Many groups are looking into new chemicals, genetically modified crops and rumen bacteria, plant and animal breed-
ing, growing more trees, etc, as potential means of reducing or avoiding the GHG problem. However, 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-effective means of offsetting carbon emissions. In NZ, a small group of pastoral farmers have since 2008 been using management practices designed to build soil carbon. They saw it as a better, healthier way of farming and one that
might also yield carbon credits for sale or to offset any carbon taxes. It would only need 25% of NZ dairy farmers to farm this way to offset all the emissions from the whole of the country. Annual standardised sampling to 1m and analyses by an accredited laboratory have shown steady
Peter Floyd
A good start goes a long way.
increases in total soil carbon averaging about 5%. This is highly significant. Soils are the world’s largest terrestrial carbon sink, containing much more carbon than the plant life and trees 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. This underground economy fosters the growth of plants, animals and soil organisms. Their eventual decomposition results in organic matter (58% carbon) building up in the soil to improve water holding capacity and fertility. Grazing animals on pasture can be a very effective way of growing soil carbon, and NZ pastoral farms show the result of many decades of accumulation in their
topsoil. However, the belief towards the end of last century was that NZ pastoral soils were ‘saturated’ with carbon and could not absorb any more. Recent research has shown that in reality there is no such ‘steady state’. Over a 20-year period some soils were found to be still gaining carbon while others – particularly those under intensive dairying – were losing carbon. Sequestering atmospheric CO2 into soil carbon can achieve the Paris agreement targets, avoid the need for the NZ Government to spend $14 billion buying carbon units from overseas, and allow the sale of soil carbon units to the world at no cost to taxpayers or the NZ Government and provide a financial benefit to NZ pastoral farmers. • Peter Floyd is a Cambridge farm advisor and software developer. @rural_news facebook.com/ruralnews
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supported biodiversity and wildlife habitat. Plantings have been a major focus for dairy farms across NZ for ten years, with various clean river projects, wetland establishments, riparian planting and, overall, a billion dollars of spending enabled by high dairy prices and a commitment by farmers to the future of NZ. Clean, green NZ is a goal for all, but is unlikely to be achieved without a pastoral ruminant economy. Research from North America confirms that NZ is ahead of the game. • Jacqueline Rowarth is chief scientist at the Environmental Protection Authority, which manages the Emissions Trading Register.
RURAL NEWS // SEPTEMBER 5, 2017
OPINION 33
The politics of science 2017 WHERE DO the two main political parties stand on science and the farming sector? The Science Media Centre put questions on key science-related issues to seven political parties ahead of the general election due on September 23. Rural News is bringing you the answers from the two main parties, National and Labour, on science issues relating to the farming sector. The Science Media Centre also canvassed the Greens, NZ First, Maori, Act and TOP and their answers can be seen at https://www.sciencemediacentre.co.nz/2017/08/24/election2017/ Q1: Freshwater quality What policy decisions does your party propose to tackle the issue of freshwater quality degradation in our country’s waterways? NATIONAL: The Government has set a target of 90% of New Zealand’s lakes and rivers to meet swimmable water quality standards by 2040. This compares to a current standard of 72%. The goal to improve water quality is estimated to cost the Government, farmers and councils $2 billion over the next 23 years. This is on top of $140m already committed by the Government to be spent on specific river and lake clean-ups. We are moving to a system which requires councils to improve the swimmability of their rivers and lakes over the year. This is a significant change. Under the new proposal, 50,000km of waterways will be improved for swimming. We will see more places suitable for swimming more often. The plan is backed up by national regulations requiring stock to be fenced out of waterways, new national policy requirements on regional councils to strengthen their planning rules on issues such as sewage discharges and planting riparian margins, a new freshwater improvement fund and
new maps that clearly identify where improvements are needed. We will require monitoring and public reporting to show progress. LABOUR: Labour will restore our rivers and lakes to a truly swimmable state within a generation. We’ll help farmers and other owners of waterways with fencing and riparian planting through our Ready for Work programme and we’ll give the regional councils the resources to clean up their waterways through a water royalty. Labour has other policies to stop water quality getting worse straight away and reverse the damage being done. Q2: Science funding Will your party maintain the current level of public spending on science, decrease it or raise it? Does your party propose any significant changes to science funding priorities? What policy measures will your party make to boost business R&D levels? NATIONAL: The Government significantly increased spending on science and innovation through Budget 2017, adding $256 million of new funding over four years. This increases total Government spending on science and innovation from $1.32 billion in 2015 to $1.66b by 2021 – an increase of 26%. The National Statement on Science Investment, launched in 2015, outlines the broader science spending priorities of the National-led Government. The Government has allocated a further $74.6m in Budget 2017 to meet the rising demand for Callaghan Innovation’s Growth Grants, bringing the total amount available through to the programme over the next four years to $657m. LABOUR: Labour will prioritise an increase in our public science spend to index NZ to the OECD average over time. We’ll also strengthen innovation
National and Labour share their views on science.
through a 12.5% R&D tax credit. Q3: Climate change Will agriculture be accounted for in climate change adaptation and mitigation? What are your plans for the Emissions Trading Scheme? NATIONAL: Under the Paris Agreement, we have signed up to a fair and ambitious target of reducing emissions by 30% below 2005 levels by 2030. We will meet this target through a combination of reducing domestic emissions under the Emissions Trading Scheme (ETS), planting more trees and participating in international carbon markets. We are also looking at how we can reduce emissions in such sectors as agriculture and transport, but we will not bring agriculture into the ETS until we have viable technology to reduce emissions. We’re spending $20m on agricultural greenhouse gas research and we are providing up to $200m for international climate-related support. LABOUR: Labour will ensure a just transition to a sustainable low-carbon economy with decent and secure
jobs and, as a key to achieving ambitious emissions reduction targets, will establish an independent climate commission and carbon budgeting. We’ll restore the Emissions Trading Scheme (ETS) to be an all sectors, all gases scheme, so that we move away from carbon-polluting goods and services towards low- or zero-carbon options. Q5: Genetic modification Is it time to lift the moratorium on the commercial release of genetically modified organisms? NATIONAL: The Environment Protection Agency is the independent controlling authority and has not approved any GM crops for release here to date. Food imports are a food safety issue but it is possible some imported processed foods could contain GM ingredients. Development work is proceeding on the genetic modification of vegetables (eg, onions that resist herbicide and potatoes that resist disease). To date, no fresh produce (fruit, vegetables, meat or milk) originating in NZ is genetically modified. Some
processed foods may, however, contain genetically modified ingredients sourced from overseas (eg, soy or corn flour). LABOUR: Labour will maintain the status quo of new GM techniques requiring EPA approval for use. Labour will also maintain the ability of councils to decide on economic grounds whether and where release and commercial use of GMO plants and animals is allowed. We’ll also protect farmers who do not wish to adopt GM technology by stengthening the liability regime for use of GMOs that cause harm. Q6: Biosecurity What will your party do to strengthen our biosecurity preparation and response? NATIONAL: This year’s Budget included a funding boost for biosecurity of $18.4m, taking total funding to $248m – a record high. In the last few years MPI has employed 50 new biosecurity staff and 20 extra biosecurity detector dog teams, and introduced new x-ray scanning machines, a dedicated border clearance levy to help meet the costs of rising passenger numbers, an inflight video for arriving air travellers, and is building a new animal health laboratory. About 12 million passenger movements occur annually at our borders, and 175,000 items a day cross our border. Even if we shut down all trade and people movements, incursions can still happen via wind (myrtle rust) and the ocean (bonamia). LABOUR: Labour will set up an independent biosecurity authority sufficiently resourced and capable of maintaining a robust, proactive and fit-for-purpose biosecurity framework. We’ll also review and spend on improving existing government/industry agreements so that they respond to risks and opportunities.
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RURAL NEWS // SEPTEMBER 5, 2017
34 MANAGEMENT
Farm software helps get best out of land FARM MANAGEMENT software is enabling a Hawkes Bay dairy farm to get the best from its land. Wairua Dairies, 40km from Hastings, milks 1600 cows, raises its own replacements and runs a large cropping operation. Lewis Knauf is the operations manager for the farm, which employs 12 staff. It was originally bought by his parents Ivan and Sue in 2001 and is owned by a family company. It’s a big, busy farming operation, Knauf says. “If you look at the farm calendar there’s not many days when nothing’s happening.” This includes irrigating
half the 645ha-effective area and about 160ha of cropping a year, mainly maize and fodder beet, and lucerne, rape and winter oats. Knauf says he chose software to enable better paddock recording, for example map views. “We’re using it to keep track of what we put on each paddock and building up a paddock history over time.” They need to keep doing new subdivision as they put in more dams for irrigation water. “In Hawke’s Bay, you need [stored water] at some stage every year; you just don’t know when or for how long. In an average year we will be
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out of irrigation water for 21 days so we’ve got to try to fill that hole the best we can. “Working from the interactive farm map is fantastic. When you’re subdividing it’s just a few clicks of the mouse to do on the map and it keeps the paddock history from the old area.” Another drawcard is “the ease of use of this software compared to others we’ve tried. The software we’re using is easy: click, click and you’re done. You don’t spend hours in the office.” The software is used to record information as the farmers go, “then I can look at it later,” Knauf says. “One guy does all the farm walks, for example puts it in and then I can look wherever I am and make decisions. “If my parents want information, it’s all sitting on the software; they go in when they want to.” The software records from the past year give Knauf the beginnings of a plan for the coming year. “I tinker around
Lewis Knauf says the software enables him to get the best ouf of his farm.
on the map with the cropping plan for next year. It makes it easy to keep track of that sort of thing. Changes to cropping plans can be recorded before the end of the meeting for everyone to see.” The software also suits managing replacements. The farm rears 900 calves a year and grazes 300 until they enter the herd, while selling the rest as beef-cross weaners; all the related recording is
done using the software. “It’s effectively a 250ha grazing operation attached to a dairy farm. We use the software to keep track of their progress. We are recording their weights and all the animal health treatments. “We record young stock as they come in and leave. Everything gets wanded and when it’s weighed or treated that information all goes in. You just carry the wand,
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RURAL NEWS // SEPTEMBER 5, 2017
MANAGEMENT 35
Environment awards ‘great experience’ AWARD-WINNING TARANAKI dairy farmers John and Roslyn Weir, of Springmount Farms, are encouraging other farmers to consider entering the Ballance Farm Environment Awards. The Weirs were finalists in this year’s Taranaki Ballance Farm Environment Awards and went on to win the LIC Dairy Award and the CB Norwood Distributors Ltd Agri-Business Management Award for the region. “You show a group of people around your farm and they give you feedback about whether or not they think you’re heading on the right track. It’s not biased… just as they see it on the day,” says Weir. “We definitely encourage people to enter. You’ll be surprised what you end up with and what you get out of it. It’s well worthwhile.” Springmount Farms is an intergenerational dairy business run by the Weirs on mostly flat central Taranaki land. The total area is 200ha and 520 cows were peak milked this season on the 150ha milking platform at Toko,
east of Stratford. John and Roslyn have two children, Nathan (22) and Ashleigh (20). John’s great-grandfather, also John, began farming the original 55ha block in 1916. John and Roslyn have been in charge since 1996. The Weirs won a Century Farm award in Lawrence, Otago, in May. Their family farm has grown gradually with every generation buying a neighbouring property. They aim to continue the family legacy and keep everything “together and in the family,” Weir says. “We’re proud of what we’ve done over time. Our family has been here for so long.” As first-time entrants, the Weirs had no expectations going into the awards but were rapt to win. They had attended the awards dinner the previous year as a guest of Ballance Agri-Nutrients, which was valuable preparation, then attended the supreme winner’s field day this year. Weir says they enjoyed showing their farm to the judges. “It’s interesting to get
feedback from someone totally unconnected to your business,” he says. And the judging was a good process to go through, “like a reverse interview, and interesting as we only had a
short timeframe to tell them about the business. We had a couple of small points in the feedback report we needed to address in more depth but there were no surprises.”
John and Roslyn Weir.
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RURAL NEWS // SEPTEMBER 5, 2017
36 MANAGEMENT Wallabies killed by poison in a previous year’s control effort in the Mackenzie Basin. PHOTO SUPPLIED
Not just a pest on the rugby field NIGEL MALTHUS
BRIGHT GREEN peanut butter baits are being laid in an area of the Mackenzie District for the
third year running to try to suppress an isolated population of wallabies adjacent to the Mount Cook National Park. Although reckoned
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only a few dozen, they are spread over 1000ha of the Gammack Range on the eastern shore of Lake Pukaki. ECan South Canterbury team leader of biosecurity, Brent Glentworth, doubts they can be eradicated ECan wants to prevent their spread further. “We try to control them once a year just to keep that population as low as possible. “There’s no way we can count individuals but last year we poisoned 48 and that was a good result. “So, I would think there would be less than that left but I can’t put a figure on it. We know there are still individuals there because we can still find their signs,” he said. “It may seem a lot of trouble to go to for a few individuals or a few dozen; however, if we left them and they became 200-300 and they spread out from there, the job becomes unachievable.” The population is believed to have come from a deliberate illegal release, probably in 2006 to 2008.
“Some people move pigs around too, as a hunting resource, so it could have been that; or perhaps pets that grew too big and were released,” said Glenworth. ECan has been trying to control them by hunting every year since the discovery but even hunters with dogs found the them difficult to locate because of vegetation. The peanut batter baits are placed on stakes about a metre tall in three batches about a week apart. The first two batches get the wallabies used to the bait and the third will be laced with 200mg of cyanide each. The campaign is expected to finish in midSeptember then workers will remove the uneaten baits. Warning signs for the public will stay up for another four months. Bennett’s wallabies were introduced to South Canterbury for recreational hunting in the 19th century. @rural_news facebook.com/ruralnews
LETTER TO THE EDITOR
DO MORE!
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RURALNEWS
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PAGE 24
TO ALL FARMERS, FOR ALL FARMERS
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ALTHOUGH NEW Zealand is leading the world in animal welfare standards I believe we still have a long way to go. Countdown Supermarkets can be commended for their decision to stock only free range eggs, the recent changes to some of our welfare laws are definitely a step in the right direction and many farms are beginning to adopt better practices. Yet we still see cage eggs on the shelves of other supermarkets, false labelling concealing poor practices, farrowing crates and similar systems are still prevalent and many farming models are severely detrimental to the environment. It is easy to blame the consumers, farmers, distributors or law makers for the continuation of these practices, but I believe the blame is on the money system itself. Because we are constrained by the constant pressure to balance ethics with cost we end up compromising on our morals. If we adopt a resource-based economy our actions can be defined simply by our moral code, not our bank balance. Charlotte Osmaston RD2 Nelson
RURAL NEWS // SEPTEMBER 5, 2017
MANAGEMENT 37
Irrigation course sprouts a bright career WHEN WILLIAM Bragg left school all he wanted to do was work with horses, but he soon realised this passion would not make him a fortune. Bragg was working on his father’s dairy farm milking and herding cows in Waimate in 2014 when his father heard about a possible job at local irrigation firm Kirk Irrigation and suggested he apply for it. Bragg, now 25, says he always liked the idea of design and engineering and he had excelled at technical drawing at school. “I thought, ‘I have no experience in irrigation, but what’s the worst that could happen?’ So I went in to see them anyway, and the rest is history.” Bragg’s boss Rob Kirk, of Kirk Irrigation, says it was obvious right from the start that William had huge ability. “He was clearly a person of huge potential. He picks things up so quickly. There’s a lot of maths and physics in irrigation design. You need to know about computers and hydraulics and soil moisture, among other things, and do all sorts of calculations and modelling. “When the course came up with Irrigation New Zealand, Will had been with us 18 months, I thought it was a good
thing for him and a good thing for the company. He was already way ahead of where I’d expected him to be after such a short time.” Bragg studied for 18 months for the first ever NZ Certificate in Irrigation Design, and graduated last month with 14 other students at a ceremony in Christchurch. NZ is the only country with a national qualification in irrigation design, something Irrigation NZ and the irrigation industry are proud of. Irrigation NZ project manager Steve Breneger says NZ is leading the world in irrigation design training. “The course is nationally recognised and very rigorous. It tests the students’ ability to design infrastructure, and challenges them to identify and mitigate possible effects on the environment. “There is increasing demand for project managers and qualified designers in the industry, particularly with the increasing amount of compliance reporting required to improve freshwater management and monitoring.” Students design systems from beginning to end, starting with identifying customer needs, environmental impact, integrating technologies then designing an effi-
cient irrigation system. Bragg enjoys visiting customers on their farms to understand their requirements and see the process through to installation. He remembers when his first irrigation system went live -- a small K Line system, the flexible hose line sprinkler system invented by Rob Kirk’s brother Jon. “I got to do the final installation and push the button myself. It was extremely satisfying and everything worked as it was meant to. When I went home my partner wondered what I was so excited about. Sounds a bit silly but I was so excited.” Bragg now leads proj-
William Bragg (right) alongside his boss Rob Kirk.
ects from start to finish. Kirk believes William has a big future in the
industry. “He joined the irrigation industry when com-
pliance requirements were increasing,” he says. “The course has lifted
him to another level.” @rural_news facebook.com/ruralnews
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RURAL NEWS // SEPTEMBER 5, 2017
38 ANIMAL HEALTH
Velvet pills aid dog welfare FARMERS ARE buying a deer velvet supplement to give their working dogs zest and longevity, claims the maker, Gevir, of Havelock North. The owner, farmer Josh Buckman, bought the business two years ago from Shelley and Clint Thomson, the 1991 founders. Now he has launched a velvet pet product – a daily supplement for
farm dogs, to improve their performance and longevity, he says. “We knew the Gevir pet product would be an attractive option for pet dogs, especially older dogs, but we didn’t expect it to be so popular for working dogs.” He cites Tikokino, Hawke’s Bay sheep and beef farmer Mike RitssonThomas, whose 13-yearold heading dog Thai
recently tore her Achilles tendon. After the vet tried several different treatments which didn’t work he began feeding her deer velvet tablets. “Suddenly Thai came right and she no longer had a busted Achilles,” Thomas says. “She was back out on the farm with me mustering and easily jumping on and off the bike.”
Josh Buckman with Hawke’s Bay farmers Mike and Caroline RitssonThomas and dogs Fergie and Thai.
Rittson and his wife Caroline also have a 12-year-old Aussie terrier, Fergie, that was starting to go bald. “She was so bald
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her tail poked out like a finger. So I fed her deer velvet tablets every day and within a few months she had a thick coat again; she was also more spritely and back running around the farm.” Ritsson-Thomas says he has been taking the Gevir deer velvet tablets
for 10 years. “I find it helps me heal quickly and I don’t have the aches I had before.” Wife Caroline used to have arthritis in her knee but after taking Gevir for 3 months the pain has stopped. “If I stop taking the deer velvet tablets, I
get aches and pains, so there is a noticeable difference.” Gevir has been making the deer antler velvet supplement for nearly 30 years, exporting it to China and the US, and is now eyeing Canada, Japan and South Korea by the end of the year.
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RURAL NEWS // SEPTEMBER 5, 2017
40 ANIMAL HEALTH
Vaccines not only Lepto safeguard Early results from a Massey University study show animal vaccinations are effective in preventing leptospirosis shedding in NZ dairy cattle, reducing exposure to humans. But the results also reinforce the importance of using other prevention measures, explains DairyNZ veterinarian Nita Harding. MASSEY UNIVERSITY last year investigated the use and effectiveness of lepto vaccines in New Zealand dairy herds, testing 20 cows in each
of 200 herds across the country. In 147 herds none of the cows tested were shedding lepto in their urine; in the remaining
53 herds at least one cow tested was shedding; and in 10 herds between two and six cows were shedding. Which strains are
causing problems? Cattle can be infected by up to six lepto strains, but the two most common in NZ are Hardjobovis and Pomona.
These strains are included in the vaccines used for controlling lepto in dairy herds. Neither strain was significantly associated with shedding, which tells us vaccination against these strains is working. Two strains of lepto that aren’t included in the vaccines
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are Ballum and Tarassovi. And you guessed it, evidence of these strains was found in the cows tested (3.4% and 17.1% respectively.) We know Ballum is not associated with urine shedding but Tarassovi is. That indicates an increasing number of lepto cases in people working on dairy farms are probably due to the Tarassovi str ain. Tarassovi isn’t covered by the current vaccines because it wasn’t a common problem when the vaccines were first developed at least 30 years ago. Pharmaceutical companies are looking at developing a vaccine for Tarassovi, but this will take some years. The study results are now being further analysed. In the meantime, we can confirm that vaccination does prevent cattle shedding the strains of lepto included in the vaccines. But minimising risk to human health also requires other precautions (see below) which are especially important in light of Tarassovi’s growing prevalence. Recommended precautions for dairy farmers 1. Vaccinate your animals: seek vet advice to ensure the timing of vaccination is correct for each class of stock. 2. Control rodents and wildlife: seek advice on baiting and trapping, and vermin-proofing buildings and feed stores. 3. Minimise contact with animal urine
through: personal hygiene – hand washing, no smoking/eating/drinking in the shed ■■ personal protective equipment (PPE) – aprons, gloves, boots ■■ keeping wounds covered ■■ being aware of other risk activities onfarm, such as effluent spraying, assisting with calving, home-killing and hunting. 4. Be aware: remember that people can be exposed to lepto onfarm even when they’re not working, e.g. kids playing in puddles. 5. If you have flu-like symptoms, seek medical help early and mention lepto to your doctor. Note: research has shown that shortening tails does not reduce the transmission of lepto, so it is recommended that all farmers follow these precautions above. This research was overseen by the Farmer Leptospirosis Action Group (FLAG), which includes representatives from DairyNZ, Massey University, the NZ Veterinary Association and Rural Women NZ. Funding was provided by the Ministry for Primary Industries’ Sustainable Farming Fund, and AgMardt, industry and stakeholder groups. • This article was originally published in Inside Dairy August 2017. ■■
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RURAL NEWS // SEPTEMBER 5, 2017
ANIMAL HEALTH 41
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AgResearch chief executive Tom Richardson (left), Lincoln University chancellor Steve Smith, vice-chancellor Robin Pollard, Selwyn MP Amy Adams and Tertiary Education Minister Paul Goldsmith pose for the groundbreaking ceremony for the $206 million Lincoln UniversityAgResearch Joint Facility. PHOTO SUPPLIED
Lincoln agrihub points to new era of collaboration NIGEL MALTHUS
A GROUND breaking ceremony at Lincoln University has marked the start of work on the new $206 million joint facility to house AgResearch and Lincoln University researchers, students and staff. The Minister of Tertiary Education, Paul Goldsmith, joined AgResearch chief executive Tom Richardson, Lincoln University chancellor Steve Smith, vicechancellor Robin Pollard and Selwyn MP Amy Adams wielding the spades on the site, formerly occupied by the quake-damaged Hilgendorf complex. The 27,000 sq.m building will house about 300 AgResearch staff, including its corporate headquarters, a similar number of Lincoln University staff and about 75 DairyNZ staff. Parts of it will be complete in 2019 and the remainder in 2020. The Burns Wing, standing on the Springs Road side of the site, has yet to be demolished to make way for the new building. The facility will be jointly owned by AgResearch and Lincoln, with DairyNZ as a tenant. It is planned to bring together staff from the disparate organisations, and Lincoln students, in a collaborative
environment to enhance agricultural science and education. “The connections forged inside this facility are going to mean a new era of top quality science and impact for agriculture, which will in turn mean more prosperous communities in New Zealand,” says AgResearch chief executive Tom Richardson. “It is also going to be a huge drawcard for the smartest minds to join in our research and keep us at the cutting edge.” Lincoln University chancellor Steve Smith called it an historic day. “The opportunity for Lincoln University – one which we intend to seize – is to unleash the potential inherent in having our teachers and students working alongside and partnering with the leading-edge scientists from AgResearch, other CRIs and industry.” “The real power in learning and research comes from proximity: human relationships, being in the same space, chance conversations and the synergies observed between different academic and scientific disciplines,” Smith said. Vice-chancellor Dr Robin Pollard called the building a means to an end. “What really matters is to have staff, students and colleagues in the
CRIs to come together and work together in ways that improve the outcomes. “Lincoln is multidisciplinary but many of those people have not been involved in AgResearch-type projects so the nature of research will change as well,” said Pollard. “My plan for Lincoln is to be completely open to collaboration.” The project has been closely linked to the Lincoln Hub concept through the planning stages but is not being officially described as the hub building. Pollard said there had been some confusion about the naming of the facility. The Lincoln Hub company, a joint venture between Lincoln University, AgResearch, Landcare Research, Plant & Food Research and DairyNZ, is already in operation as a facilitator and co-ordinator of joint projects, but Pollard said it would not “immediately” be a tenant in the new building. Everyone attending the event was invited to join the official party in signing a document to be included in a time capsule to be incorporated into the site. It is not expected to be opened for 140 years, mirroring the 140 years since the laying of the foundation stone of Lincoln’s iconic Ivey Hall building.
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RURAL NEWS // SEPTEMBER 5, 2017
42 MACHINERY & PRODUCTS
Handles all the weather gods can throw MARK DANIEL markd@ruralnews.co.nz
HAVING SEEN the latest Yamaha AG 125 at Fieldays we asked an Auckland supplier for a test machine for a willing farmer. They promptly supplied, but we must have also copied in the rain gods because the bike arrived during Waikato’s wettest July and early August for 40 years. This newest take on the Yamaha AG 125 builds on a history dating to the early 1970s and earlier if you consider the Land Scout of 1963. The latest design brief is ‘if it ain’t broke, don’t fix it’. However, some tweaks bring it up to date for the livestock sector, flat dairy farms or highcountry beef or sheep operations. The single cylinder, 4-stroke 125cc engine is
brought to life with an electric start button, and there’s a kick start for flat battery events. Revving freely, acceleration is smooth and crisp, with noise contained by a high-level silencer pack. Five-speed constant-mesh transmission makes changes slick and easy, with a layout that gives neutral right at the bottom, so no worries trying to find the green light somewhere in the middle. With rider comfort and cleanliness in mind, a newly designed front fender is contoured to keep mud and other unmentionables off the rider; this proved particularly good at this in high-speed turns, better than an earlier model. At the rear, the familiar fully enclosed chain case keeps mud at bay and extends service life. Front and rear racks accommodate the odds
and ends of daily life – electric fence standards, reels, etc – and have plenty of tie-down points. Rider comfort is taken care of with a redesigned seat that is wide and low, offering easy mounting and dismounting, and the familiar twin sidestands are retained for easy parking even among mobs of cattle. The handlebars are beefed up and carry guards to protect hands from blackberries or branches, and a crankcase front guard protects the engine and rider’s feet. Out on the farm, in conditions that made standing difficult and walking near impossible, the AG 125 was in its element. Like an errant child it wallowed in the mud, ran faultlessly and never looked like getting stuck. At the height of the calving season on a 600cow dairy operation
The new Yamaha AG125 – a well-proven farm workhorse.
the machine clocked up 1000km in three weeks, day and night; its new high-power halogen headlamp turned day into night. It moved people, day-
to-day items and even the odd calf on the redesigned fuel tank with a flat top. The only problem was prising the keys back off the farmer, who summed
it up as “the perfect machine for the job” which means the boys in Auckland now have one fewer machine in stock. • If you’d like to ‘Win a New Ride’, stop what
you’re doing and turn to page 20 to enter our latest competition where a Yamaha AG 125 is up for grabs for one lucky reader courtesy of the good guys from Yamaha.
FIELDAYS SET TO CELEBRATE ITS GOLDEN ANNIVERSARY FIELDAYS WILL celebrate its 50th anniversary next year with the theme ‘Future of Farming’. Chief executive Peter Nation says the 2018 event is shaping up to be the biggest and best yet and will celebrate its wide-ranging contributions to farming since it began in 1968. “We have a proud history as a worldclass agricultural showcase and it has come a long way from an event aimed at getting farmers together and bridging the rural and urban gap,” Nation says. “Fieldays is continually looking to the future and the advancement of agri-
culture, agribusiness and agritech, and promoting the primary industries in New Zealand and around the world.” A committee of past National Fieldays Society presidents and members will help organise the 2018 Fieldays plus extra events, a local museum exhibition and a history book. Nation is pleased with a survey of Fieldays 2017 showing 96% of visitors rated it “good” to “excellent” and 92 % of exhibitors said they would exhibit again. This year a record 133,588 people attended. Nation says “we wanted to highlight how broad the primary industries
sector is and that came through in the variety of exhibitions and features”. “The Fieldays careers and education hub is a good example: thousands of school students seeing and learning about jobs and education opportunities. This shows how much the industry contributes on a global level.” Hundreds of volunteers ensured the four-day event ran smoothly, Nation says. “There were 232 volunteers who generously gave their time to help this year.” The 50th Fieldays will run from June 13-16 at Mystery Creek Events Centre.
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RURAL NEWS // SEPTEMBER 5, 2017
MACHINERY & PRODUCTS 43
Krone makes maize harvesting simpler Kuhn has reported a 6% increase on 2016 sales.
MARK DANIEL
Light at the end of the tunnel
markd@ruralnews.co.nz
A GROWING interest from the forage harvester market is said to be behind Krone’s decision to make its variable width EasyCollect forage maize header available for use with Claas, John Deere and New Holland SPFH. It is offered in working widths of 4.5m, 6m, 7.5m and 9m (6, 8, 10 and 12 rows); full specification and option details for adapting the header to third-party brands are available from Krone dealers. In operation, maize stalks are grouped and guided past fixed blades, cut off and fed lengthwise into the pre-compression rollers and the chopping assembly. This lengthwise entry is claimed to improve chop-length precision. Benefits of the design include fewer components and drives than on conventional headers, which the manufacturer claims results in less wear
and tear and reduced operating costs, and much lower power input. This means a less powerful SPFH can carry a wider header than is normally possible, says Krone.
Depending on the type of forage harvester, the new forage maize header can be equipped with optional active ground contour following and automatic steering.
WHILE THE global market for tractors and farm machinery is still being reported as challenging, there are signs of light at the end of the tunnel. This comes as some of the big international machinery players are starting to report their half-yearly results – as in the case of AGCO, the Kuhn Group and Deutz AG. AGCO saw net sales of US$3.8 billion for the first half of 2017, an increase of 6.7% over 2016, with year-end sales expected to hit US$ 8b. The company commented that higher demand and larger margins in Europe and the Middle East were leading the charge and it appeared that the dairy and live-
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stock sectors were offsetting lower demand in arable areas. Likewise, the Kuhn Group has reported a 6% increase on 2016 sales for the same period, at CHF 592 million. The company also reports increased confidence in the Western Europe region with rising dairy and stable meat prices setting the scene. The company predicts increases in these sectors for the second half of the year but believes the arable sector will remain volatile. Meanwhile, engine builder Deutz AG saw its revenue climb by 14% to Euro 734.5m for the half year, from selling 79,600 engines in the period – an increase in numbers of 14.2% over 2016.
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RURAL NEWS // SEPTEMBER 5, 2017
44 MACHINERY & PRODUCTS Claas quadrant baler.
CONTRACTOR RATES CR COMBINES BEST
Claas lifts game with quadrant baler MARK DANIEL markd@ruralnews.co.nz
CLAAS IS introducing a number of new equipment options for its Quadrant 5300, 5200 and 4200 big square balers. These include an integrated bale weighing system, a ‘pull-out’ knife
drawer and high-end LED lighting. Weighing takes place during the baling process without any delay. The machines will make bales acurate in weight to +/- 5kg at forward speeds up to 20km/h, displaying results on the in-cab ISOBUS terminal. This
means the information can be stored according to the job or paddock for recording or invoicing. Operators using the Claas Telematics remote monitoring system can also use this data to plot crop yield and bale moisture across a field. The Quadrant 4200 machines can also be specified with the pullout knife drawer already found on the larger 5300 and 5200 models. This option is said to slash the time required for a complete knife change – from one hour to just 15
minutes. This should be a boon for contractors by making maintenance easier, replacing blunt or damaged knives quicker and ultimately delivering better quality forage. The new lighting system comprises seven LED lights fitted to key components of the baler, including the drawbar, flywheel, feed rake and bale chamber, ensuring userfriendly operation and easier maintenance when working at night. These new features will be available on all 2018 delivery machines.
MID-CANTERBURY FARMER and contractor Will Mackenzie buys New Holland combine harvesters because he believes the CR range provides the best machines on the market. Having bought his first CR9080s in 2009, the second unit – this time on tracks – arrived in 2014 from dealer, Johnson Gluyas Tractors in Ashburton. Mackenzie uses the combines on his own 400ha cropping farm just south of Ashburton. He also uses them for the contract harvesting business, Mackenzie Harvesting, he has run for 10 years, harvesting crops including wheat, barley, grass seed, radishes, peas and small seeds. Each machine typically clocks up about 300 rotor hours in a season. Mackenzie says the CR9080’s tracks help to stabilise the machine, which carries a heavy 10.5m front, as well as helping it to cope with his farm’s heavy soil and wet conditions which often occur when harvesting the radish crop in March and April. Having previously owned New Holland CX and CR combine harvesters, Mackenzie reckons New Holland harvesters are simple and easy to operate. “I believe the CRs have the best thrashing set-up for our New Zealand conditions,” he says. “Considering the range of crops we harvest they are versatile and allow us to move from wheat to grass to clover without having to make any physical changes other than a clean out and blow down which is par-
Contractor and farmer Will Mackenzie believes New Holland’s CR range provides the best combines on the market.
ticularly easy.” Mackenzie also says the CR9080s are fuel efficient and have competitive running costs compared to other brands he has operated. Run alongside a fleet of New Holland tractors, the machines are also used for yield mapping using CNH-Trimble technology. www.newholland.co.nz
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RURAL NEWS // SEPTEMBER 5, 2017
MACHINERY & PRODUCTS 45
Quadtrack goes with a CVT MARK DANIEL markd@ruralnews.co.nz
WITH 20 years under its belts – quite literally – it appears Case IH is looking to test a CVT (continuously variable transmission) version of the Quadtrac prime mover. The CVXDrive Quadtrac, developed with transmission specialist ZF, will be the first use of such a unit in a high power articulated tractor. The new option will be available for the three smaller models in the range, the 470 CVX (max
525hp), the 500CVX (max 558hp) and the 540CVX (max 613hp). Said to complement the five existing powershift models, the layout sees four mechanical ranges which are shifted automatically, with stepless speeds from 0 to 40km/h forward and 0 to 18km/h in reverse. Like current CVX units in the conventional tractor ranges, three adjustable target speeds can be stored from 0 to 40km/h, and easily adjusted by a thumbwheel on the MultiController lever. Other features
include kickdown for brisk acceleration, and a 40km/h road speed coming up at just 1640 engine rpm. Already released at the Farm Progress Show in the US, the concept will
be seen in more detail at the upcoming Agritechnica in Europe. It is likely to cost much more than the standard units when the production examples go on sale in 2018.
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JD AND VADDEY TEAM UP IN THE changing machinery scene its either takeover or collaboration, the latter being the favoured route for Russia and Ukraine. Deere and Co has agreed with the Scandinavian drill and cultivation specialist Vaderstad to sell its products through JD dealer channels in these vast regions, to give JD machinery dealers the chance to offer a greater range. In the deal, Vaderstad will supply air-seeders, compact high-speed disc seeders and tillage implements branded in their colours. Both companies say they will co-operate on marketing, training and product support, ensuring all implements connect seamlessly with John Deere’s tractors. – Mark Daniel
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RURAL NEWS // SEPTEMBER 5, 2017
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THE NISSAN Pathfinder has had a refresh on the outside, but more extensive updates have been made beneath the skin. And the specification sheet now better matches the price. Externally the new grill is the most noticeable update, along with new bumpers and lights, otherwise it is similar to the old model. It still looks good, especially in the dramatic Caspian Blue gracing our Ti test vehicle. The heavily revised engine, a 3.5l 24-valve V6 generating 202kW (up from 190) and 340Nm (up from 325), has had 56% of its component parts updated and now has direct fuel injection and variable valve timing.
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smooth American freeways. The improvement in ride and handling are a great leap forward. On a long trip with the family on board, the Pathfinder with its acres of interior space and creature comforts was effortless and luxurious. Unless you genuinely plan to do serious offroading, a monocoque SUV like the Pathfinder or Highlander is a more comfortable choice than the ute-based, ladder frame SUVs prevalent in the market now. Specification levels are good. The Tri-zone entertainment centre has rear monitors that can play music, DVDs or video games individually. The kids in the back can put on the wireless headphones and do their thing while mum and dad are in the front listening to their lame music through the 13-speaker Bose audio. The Ti also gets leather pews for seven adults – heated and cooled for the front two seats. It gets 20” alloys, privacy glass, front sunroof and rear ‘moonroof’, heated door mirrors that tilt down when reversing,
LED headlights with auto levelling, adaptive cruise control, rear view camera and parking sensors, trizone climate control, keyless remote and smart key, motion-activated power tailgate, remote engine start, satellite navigation… the list goes on. It has the active driver safety features increasingly found in top-ofthe-range cars now and these seem to work without being too intrusive. The most useful of these are the blind-spot monitor, forward control warning and the autonomous emergency braking, which is said to bring the car to a complete stop if it detects that the car in front has stopped and the driver hasn’t braked (we weren’t brave enough to put this to the test in the real world). It also has a useful 360-degree camera and rear cross traffic alert, good for navigating the supermarket carpark. The Ti costs $69,990 while the 2WD ST starts at $55,490. That’s competitive for the class and at the time of writing Nissan was offering a sharp zero deposit, 1.9% finance deal.
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RURAL NEWS // SEPTEMBER 5, 2017
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