Issuu

NEWS

MACHINERY

AGRIBUSINESS

Talking up the NZ/EU trade deal. PAGE 12

Canny Scot knows how to tow.

Keep up with pace of change PAGE 16

PAGE 27

TO ALL FARMERS, FOR ALL FARMERS JULY 3, 2018: ISSUE 656

www.ruralnews.co.nz

No answers; no idea! RURAL NEWS REPORTERS

DESPITE THE fledgling Primary Sector Council being the brainchild of Minister of Agriculture Damien O’Connor, he has no idea about how much the council will cost taxpayers or even how often it will meet. Responding to a Rural News Official Information Act request – put to O’Connor – about the costs and workings of the Primary Sector Council, the minister’s office says it is unable provide any answers as it is “an operational matter”. “This information is not held by the Office of the Minister of Agriculture, Minister for Biosecurity Food Safety and Rural Communities, and Minister for Trade and Export Growth; it is better responded to directly by the Ministry for Primary Industries (MPI),” was O’Connor office’s reply. “I am therefore transferring your request to MPI for response.” O’Connor’s office has now passed on Rural News’ OIA request to MPI to answer; so far it has made no response. Ironically, when O’Connor announced on April 26 who would sit on the Primary Sector Council, he admitted he “did not have all the answers”. However, this was in relation to issues confronting the primary industry sector and not the actual workings and costings of the council. However, it appears that O’Connor’s lack of knowledge turns out to be the case regarding his understanding of the Primary Sector Council’s annual cost to taxpayers, how much its chair and members are being paid, or even how often it will meet.

The 15-member council is chaired by former Zespri chief executive Lain Jager and it has been criticised for having a lack of real farmer membership. It also drew concern from the scientific community, with Jill Stanley, the president of NZ Institute of Agricultural and Horticultural Science, calling the lack of scientists on the council “surprising and disappointing”. O’Connor’s and his office’s obfuscation and lack of transparency over legitimate questions about the Primary Sector Council will not gain it

the respect and buy-in of the primary sector it is supposed to represent. The lack of answers about the Primary Sector Council are even more surprising considering O’Connor had flagged its formation in Labour’s election manifesto back in July 2017. The manifesto said a Labour government would, “appoint a primary industry council and a chief agricultural adviser to provide a unified industry voice to government and the wider population and advise ministers and government on all areas of primary production”.

However, it now appears that the policy was never properly costed and has been hurriedly put together. Rural News will publish the responses to the questions it has posed about the Primary Sector Council when – and if – MPI responds to its OIA. • MPI has now responded to Rural News’ OIA request – but this was received after the July 3 issue was printed. Rural News will publish MPI’s responses to the questions it has posed about the Primary Sector Council in our July 19 issue.

BLACK GOLD: At up to $250 retail for a well-shaped 80-90g black perigord truffle, growing the gourmet delicacy has obvious rewards. But it is also a high-risk business, says Amuri Truffiere’s Gavin Hulley. The Truffiere is located on a 2ha hillside plot overlooking the North Canterbury township of Waikari. Run as a joint venture with the landowner and another investor, it was planted in 1997 as one of the first truffle farms in New Zealand. Then, only one truffle had ever been harvested anywhere outside Europe – at an experimental plot near Gisborne, Hulley says. – Full story next issue.

BAN MAY BITE

NEW RULES proposed under the Overseas Investment Amendment Bill will have some rural impacts, but mainly hit residential and lifestyle land, according to Christina Lefever – special council with law firm Duncan Cotterill. “If overseas buyers are comfortable with meeting the new levels of benefits in the tests, hopefully there will not be too much impact,” she told Rural News. “High country stations and lifestyle properties are likely to suffer the biggest price impacts. It will be more difficult to show benefits on those properties. The bill is currently going through the select committee process,” Lefever says. “Lifestyle properties obviously fall into that rural space as well. They will now have to be considered under the amendment bill.” Some rural land with residential features, e.g. a farm homestead, would need a separate certificate of title. “That might need consideration under the new bill. Rural land acquired for residential development will also need to be concerned with reference to the bill and also there are changes this bill brings in to forestry.” Lefever says while the door has not closed on overseas investment in the rural sector – there is still uncertainty. However, she now believes that some market positivity is returning as the Overseas Investment Office (OIO) has started to release decisions under new ministerial directives. – Pam Tipa

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RURAL NEWS // JULY 3, 2018

NEWS 3 ISSUE 656 www.ruralnews.co.nz

Don’t meddle with Fonterra SUDESH KISSUN sudeshk@ruralnews.co.nz

NEWS ��1-13 MARKETS ��14-15 AGRIBUSINESS �� 16 HOUND, EDNA �� 18 CONTACTS �� 18 OPINION �� 18-20 MANAGEMENT ��22-24 ANIMAL HEALTH �� 25 MACHINERY AND PRODUCTS ��27-30 RURAL TRADER �� 30-31

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

AGRICULTURE MNISTER Damien O’Connor says a wide-ranging review of dairy industry legislation isn’t an attempt by the Government to force changes to Fonterra’s constitution. He says the Dairy Industry Restructuring Act (DIRA) review doesn’t say anything about the constitution. Fonterra’s 10,000 farmer shareholders will ultimately make a judgment on the constitution, O’Connor told Rural News. The minister was grilled last week by Federated Farmers dairy leaders at their annual conference in Wellington; they questioned him about the DIRA review and recent attacks on Fonterra leaders by cabinet minister and NZ First MP Shane Jones. O’Connor says how Fonterra is managed is up to its shareholders, but he had a bold message for shareholders: “if you don’t discuss it, we will”. When Fonterra was set up in 2001, a draft constitution was part of the approval process. O’Connor notes changes have been made to the constitution over time. “Farmers have to work whether

those changes to the constitution have worked positively or negatively,” he says. O’Connor forsees the DIRA review “tweaking legislation to ensure Fonterra is fit for purpose”. However, Opposition agriculture spokesman Nathan Guy says the terms of reference for the DIRA review “are very wide and a moving feast”. Guy says O’Connor isn’t ruling out changes to Fonterra’s constitution. “This isn’t written anywhere in the review document,” Guy says. “After Shane Jones’ outburst this will be seen by farmers as the Government wanting to meddle further in the co-op’s business. There is already a lot of suspicion about this wide-ranging review and Fonterra farmers are becoming weary of this Government’s agenda.” Federated Farmers leaders are taking a wait-and-see approach on how the DIRA review pans out. @rural_news facebook.com/ruralnews

Fed Farmers president Katie Milne and Agricultural Minister Damien O’Connor at last weeks Feds’ national conference in Wellington.

Farmers not alone on climate change

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 31.03.20189

PETER BURKE peterb@ruralnews.co.nz

FARMERS MORE than any other New Zealanders will be negatively impacted by the effects of climate change, says Climate Change Minister James Shaw. Speaking to Rural News at Fieldays, Shaw noted how this is already happening -- droughts, floods, fires and storms. He says farmers are not in this alone and he understands that many farmers feel unfairly singled out. But Shaw is equally worried that Auckland city’s transport emissions have risen 24% while NZ’s methane emissions have not risen as much.

He says everyone needs to do their bit and work together. “We know that farmers best understand what happens on a farm and on land,” he says. “I see my job as doing what I can to support farmers and the agricultural sector to make a transition.” Shaw believes what is happening now gives NZ one of the greatest opportunities in a generation. Many environmental problems and challenges remain to be overcome, he says, but the solutions are coming in the form of science and technology. As for NZ’s primary exports, they must move from volume to value. “Science plays a big part with consumers of our food exports. The markets we sell into are getting

increasingly sophisticated at the price point we want to attract,” he told Rural News. “We are talking about people making decisions based on a whole set of values, not just price, because they are quite prepared to pay a premium. So where their product comes from is becoming increasingly important to them.” Consumers in some markets are swapping information by cellphone, Shaw says. They photograph the barcode of a product and trace that back to the farm it came from. “This is amazing and quite a technological challenge for us, but it’s one we are leading the world in. Consumer demand changes all the time and

farming in NZ has changed dramatically in response to that demand.” Shaw says NZ has adapted well to change and has a good idea of what consumers want. “We just need to stay closely attuned to that because consumer demand is changing rapidly. We have to pay close attention to innovation and technologies inside NZ and what is happening overseas, to see what we can bring in to serve us well, and to be aware of what could be disruptive.” Shaw says while consumers may think specifically about intensive farming when buying milk or beef, they will be looking for some sort of certification to assure them that what they are buying is up to standard.

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RURAL NEWS // JULY 3, 2018

4 NEWS

Fonterra ‘unsure’ on PKE SUDESH KISSUN sudeshk@ruralnews.co.nz

FONTERRA WILL check with its palm kernel expeller (PKE) supplier on claims that the company is involved in deforestation in Indonesia. Fonterra buys PKE from the Indonesian family-owned company Wilmar International, the first to implement a ‘no deforestation, no peat, no exploitation policy’ in 2013. Greenpeace last week released aerial photographs of what it claims is deforestation in Papua, Indonesia. Its sustainable agriculture spokeswoman, Gen Toop, says a Greenpeace investigation shows the concessions on Papua belong to a business called Gama. Toop says documents reveal that it’s run by senior Wilmar executives and members of their family. “Our investigation has exposed Wilmar’s dirty secret. For years Wilmar and Gama have worked together, with Gama doing the dirty work so Wilmar’s hands appeared to stay clean. “This revelation again implicates NZ’s dairy industry in deforestation in Indonesia.”

Greenpeace has released photos like this claiming deforestation is taking place in Indonesia by Fonterra’s PKE supplier Wilmar. However, the dairy co-op cannot answer if this is the case or not and says it will have to ‘check’.

A Fonterra spokesman says “as a matter of process”, Fonterra will check with Wilmar that the information it has provided previously is “up to date and accurate”. “We understand and take seriously concerns about the exploitation of labour, human rights and land claims in South East Asia.” Fonterra has previously come under fire for deforestation in Indonesia and its effects on climate change and the habitat of the endangered orangutan.

The co-op agreed two years ago to adopt an industry standard to ensure its use of PKE isn’t furthering deforestation; it also supports organisations that monitor the industry and promote sustainability. Fonterra set up a palm product standard in 2016 “to ensure the products we use meet sustainability best practice,” the spokesman says. “All our vendors of palm products must publicly commit to policies that fully support

‘no deforestation, no peatland development and no exploitation’ and have business processes in place to meet compliance.” Fonterra insists Wilmar has a strict ban on deforestation and exploitation of labour. Fonterra is a member of the Roundtable of Sustainable Palm Oil and The Forest Trust (TFT), an NGO supporting sustainability in the palm industry. “Together, we are evaluating the performance of our palm products supply chain

and compliance with our standard. Working with our vendors, we have confirmed 96.7% traceability to mill [so that] we know where the PKE is sourced from and to identify any potential high-risk areas or any non-compliance.” Greenpeace says PKE is “one of the main drivers of dairy intensification in NZ”. “PKE fuelled the expansion of industrial dairy farming in NZ. We have too many cows polluting our rivers and warming our climate,” Toop claims.

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FARM SUBISIDIES DISTORTING AND ILL-PLACED – REPORT MORE PROGRESS is needed on reducing and redesigning the world’s farm subsidy policies, says a new report from the OECD. It says most farm subsidy policies remain poorly aligned with defined objectives, and measures that distort production and trade keep increasing in some countries. The OECD’s ‘Agricultural Policy Monitoring and Evaluation 2018’ report shows that the 51 countries reported on – all OECD and EU, plus 10 key emerging economies – paid on average US$620 billion annually to support farmers in 2015-17. Of this, nearly two-thirds is still provided via measures that strongly distort farm business decisions. The report said almost 80% of the money went to individual farmers. Only 14% went to R&D or the infrastructure needed to equip farming for future challenges. The report recommends looking hard at how to increase productivity growth sustainably and enhance environmental performance, especially given changing climates. Support should be aimed at helping farmers to better manage risks from weather, markets or other shocks that cannot always be anticipated. The OECD says the report underscores that most agricultural policies today are not well-aligned with these objectives. “Progress in lowering support levels and shifting towards less distorting measures remains partial, and is not shared across all countries,” said Carmel Cahill, deputy director of the OECD trade and agricultural directorate. “Government support of market prices harms consumers -- especially the less well-off -- and reduces the competitiveness of the food industry itself. “Removing damaging and distorting policies is an important first step. “Support directly linked to output and input use makes domestic and international markets work less efficiently, encourages environmentally harmful over-use of farm inputs and consumes limited public funds that could be used for more efficient investments in the sector.” Cahill says countries should re-direct farm subsidies to ensure the availability of public services that benefit producers, consumers and society overall. The report said the biggest subsidies are paid by Iceland, Norway, Switzerland, Korea and Japan – 40-60% of total farm earnings. New Zealand and Australia are at the bottom of the OCED table of government support for farming.

RURAL NEWS // JULY 3, 2018

NEWS 5

Increase in shearing costs to hit struggling wool sector PAM TIPA pamelat@ruralnews.co.nz

THE SHEARING industry must move now to stave off the threat of farmers being unable to get their sheep shorn, says Mark Barrowcliffe, president of the NZ Shearing Contractors Association. The association is recommending its member contractors close the pay gap with Australia by increasing shearersâ€™ pay and entitlements by up to 25%. He knows farmers will be frustrated by extra costs when wool returns are low. But without skilled staff, costs would soon rise â€œhugelyâ€? anyway, he told Rural News. Barrowcliffe says a threat looming for NZ farmers is that they may not be able to get their sheep shorn. â€œBut we donâ€™t want it to get to that bad first before everyone realises.â€?

He says some farmers are already not getting their sheep shorn on time as they used to. â€œFor animal health [reasons] we donâ€™t want to see farmers unable to get their sheep shorn. We get busy times in December and January across NZ with flystrike issues. We donâ€™t want to be singing the â€˜I told you soâ€™ tune then.â€? Barrowcliffe says the industry has â€œhugeâ€? difficulty in retaining shearers in NZ and recruiting young people. â€œWe have become a training ground. You get good, or you learn your trade here â€“ or you used to, because we havenâ€™t got any training now â€“ and then in the really productive years of your life you go seek the high dollar elsewhere,â€? he says. â€œYouâ€™ve only got a small window of [high] earnings in our job; you are probably your best in the 25-35 year range.

SMOOTHIE APPROACH TO SHEEP MILK BEYOND MASSEY Universityâ€™s cheeseboard at Fieldays was the objective of promoting sheep milking. Associate professor Craig Prichard, a driving force in promoting the new industry, spent all his time at Fieldays handing out samples of an ever-popular smoothie made from sheep milk. He says Massey is trying to get people used to sheep milk as a food. â€œThere is an historic gap in New Zealandersâ€™ palette in respect of sheep milk,â€? Prichard told Rural News. â€œThatâ€™s why we have been doing a smoothie, which is a very popular food.â€? And people were able to add their own flavours, which was popular. Spring Sheep Dairy, which runs a big sheep milking farm in the central North Island, was also on the stand talking to farmers about setting up to milk sheep. â€œSheep dairy is no longer a novelty but we need to build supply now,â€? Prichard says. â€œWhile we have proven markets, NZ still has only 16 significant sheep milk farmers. This this is just a pimple on the side of the dairy industry and we need to ramp that up.â€? He says chefs are excited about sheep milk and how it can be used as an ingredient for other dishes, hence the need to think of sheep milk beyond the cheese board. NZers are good at eating cheese, but getting cheese into foods and developing it as an ingredient is also important, Prichard says. â€“ Peter Burke

The Shearing Contractors Association is recommending increasing shearing rates by up to 25%.

There are people who shear either side of that, but I am generalising.â€? While the overseas circuit used to include the northern hemisphere, the high NZ dollar has hammered returns there. To travel north a shearer has to be committed. â€œNow the earning power is in Australia with them upping their shear-

ing rates, and being right next door itâ€™s easy to get there. It has become a lot more accessible to NZ shearers,â€? says Barrowcliffe. â€œThey have better earning power there and better continuity of work mainly due to the weather conditions. They donâ€™t get as much rain and we need dry sheep to

shear,â€? he adds. â€œCertain parts of NZ are well known for their rain, which farmers love and itâ€™s great for farming but not so great for a shearer.â€? He says the industry is happy for some of our shearers to go to Australia, but they need to be attracted back for the NZ shearing season.

â€œYou donâ€™t want all your staff staying with you all the time; itâ€™s a seasonal job,â€? says Barrowcliffe. â€œYou have your core staff who have family commitments or whatever and they donâ€™t want to go anywhere and thatâ€™s fair enough. â€œYouâ€™ve got people who come at those busy times and on the shoulder and you want them to give you a few good, hard months work and then they move off to others parts of NZ or Australia and keep the circuit going.â€? But he says they are now travelling to Australia, and though they plan to come back the money is so good they donâ€™t. Barrowcliffe says the industry is also struggling to recruit because of a national shortage of staff, especially skilled staff. â€œThere has been no entry-level training for a few years now. And it hasnâ€™t been put out as a career in schools.â€? He says young people are not coming into shearing and thereâ€™s a high turnover of those

who do. â€œI donâ€™t think that is just a shearing problem; many industries have that problem. It is not a very good place to be for anyoneâ€™s industry.â€? The NZ Shearing Contractors Association has recommended that its contractor members adopt new pay and entitlement levels. And it is investigating new ways of training through the Primary ITO. This followed a â€œcouple of failuresâ€? to get industry training underway. Barrowcliffe says they know some costs will be passed on to farmers. â€œWe know it is a hit for them, but if they want a sustainable shearing industry this is one part of the plan for us to have the staff they desire to help maintain their assets. â€œBut with a lack of skilled staff I think the costs were going to rise hugely anyway. We have to attract the right people to the industry and pay them well to get those people and keep productivity high.â€?

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RURAL NEWS // JULY 3, 2018

6 NEWS

Trading times get challenging PAM TIPA pamelat@ruralnews.co.nz

A TRADE expert has backed up comments by agricultural trade envoy Mike Petersen, who says New Zealand is facing its most challenging time in trade in 30 years. Petersen told Rural News that the established rules on trade via the World Trade Organisation, particularly for agricultural products, are at risk from the US-China trade war. While the products being targeted now are not NZ products, the risk of spillover into our products is very high, he says. A former diplomat and executive director of the NZ International Business Forum, Stephen Jacobi, agrees any trade war could be a big medium-term risk to NZ exports. He says it is not a major risk currently but depending how it evolves further it could well be. “We don’t want the contagion to spread to other areas,” he says. While Jacobi says the current situation is unlikely to directly affect our trade with the US, “you can never

be sure”. “The way global trade is so interconnected these days through global value chains you can never be sure. But I would think we are probably not going to get caught in that. “In China we might benefit in the short term, because if China takes action against the American exports of meat products, dairy products, wine and things like that, they are all things we sell to China,” he adds. “So we could replace their products. But if we replace the prodStephen Jacobi ucts they sell to China, [those products] will need to go somewhere else so we may about what happens in the inevitable face increased competition elsewhere. trade dispute between China, the US “The bigger picture is that markets and the WTO. Does New Zealand parwill very quickly become destabilised ticipate in that? “The US won’t appoint any appeland that can’t be good for our exportlate body judges in the WTO so what ers.” Jacobi says there are questions does the future of the WTO dispute

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“The way global trade is so interconnected these days through global value chains you can never be sure. But I would think we are probably not going to get caught in that.” settlement system look like? All these are big global strategic issues that will bite.” He says some agricultural sectors are very concerned it might cast a shadow over international trade. “I don’t quite see it at that level, but it certainly could occur – depending on what happens.” NZ is already doing all it can. “We can maintain our lines of communication in China and the US, we

can try to use opportunities we have to calm them down. I’m not sure anybody is particularly listening. “We can make our voice known in the WTO. We can make decisions about whether or not to join actions against US protectionism in the WTO; I think we should be doing that. We can continue on the path we set which is to negotiate high quality, ambitious, comprehensive trade agreements like CPTPP and the one we hope to do with the EU.” Jacobi believes the best thing NZ can do is continue with partners who see the world the same way, to free up trade. “For example the CPTPP – getting it into force as soon as possible, getting other countries to sign it, making it quite clear to the Americans what they are missing out on – all those things are important.” But we must also keep our strong relationship going with the US, he says. “I am not suggesting we turn our back on them either. “There are important economic interests in the US that we want to try to maintain.”

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RURAL NEWS // JULY 3, 2018

NEWS 7 POTENTIAL RISK TO NZ’S PRIMARY EXPORTS MIKE PETERSEN says the potential US-China trade war poses long term threats for NZ products. If there is a tariff on a product from the US into China, you’d have to question where that product will go, he says. It could displace NZ product in other parts of the world or it could find its way to NZ. “The whole displacement effect could have a big effect on NZ as a country that relies Mike Petersen very much on exporting and access to markets,” Petersen says. “While it is not an issue directly impacting NZ, the spillover effects could be significant. They are the ones we have got to watch very closely.” Petersen says several people suggest NZ may be advantaged by a US-China trade war. “There may be a short term opportunity for some products into these markets as a result of the tariffs but the long term risk of it impacting on NZ products is far greater,” he says. In some ways NZ needs to keep its head down; it does not need to join sides on any of this, Petersen says. “We need to keep our head down – keep calm and carry on. But equally we need to make sure our voice is heard and that people understand the risks of the trade war that is looking increasingly likely.”

Nats call for practical policies PETER BURKE peterb@ruralnews.co.nz

NATIONAL PARTY leader Simon Bridges says the biggest challenges farmers face are the environment and their right to farm. He told a Fieldays audience that New Zealand must stay true its values by keeping the environment pristine while at the same time growing the primary sector. Huge economic opportunities exist in the primary sector and NZ farms better and more efficiently than any other nation’s farmers, he said. But he sees a difference between the Labour Party and National on such issues. “I made it clear that when I became the leader we would have a priority on the environment and focus on that. The contrast is that National wants to be responsible,” he told Rural News. “We want sensible, practical policies and we need to shy away from the extremities that will mean a lot more cost to the economy and a lot more cost to hard working Kiwis too quickly. This

National Party leader Simon Bridges and agricultural spokesman Nathan Guy at Fieldays.

is in the interest of all New Zealanders who don’t need extra costs piled on them.” The latest MPI outlook report shows significant growth in the primary sector and it predicts this will continue. Bridges agrees the future looks positive and says the country needs to bear that in

mind. “There is a lot of talking-down of farmers by the Government -be it climate tax, capping of cow numbers or ill-conceived comments on irrigation. We don’t want to be in that space. We know farmers are great for our economy but they are also real conserva-

tionists and environmentalists who understand and get it.” Bridges acknowledges that some farmers let the side down with poor environmental practices. But others are leading the way in sustainability and efficient production. “There will always be those who are a bit behind that and it is a challenge to make sure everyone is getting up to best standards. “My message is clear, when we look at the principles we need to apply to farming as it pertains to climate change. Technology and innovation is at the top and a National-led government will invest more in those areas.” Bridges says NZ has shown great leadership in this area and he singles out the research of methane emissions from agriculture. But he adds that we can’t rest on our laurels because we haven’t found all the solutions yet. “The danger is that with bad government policy you will see our farming being done offshore where they don’t have such environmental restrictions,” he claims.

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RURAL NEWS // JULY 3, 2018

NEWS 9

Milking it for deer

THE NEXT BIG THING? “I CAN absolutely see this going global,” says consultant executive chef Geoff Scott, of the deer milk now being pioneered in NZ.

NIGEL MALTHUS

IF THE world is ready for deer milk, New Zealand is ready to supply it. The product, believed unique, was simultaneously launched at Fieldays and at a VIP function in Auckland aimed at high-end restaurants and the food service industry. It won the Grassroots Innovation Award at Fieldays for Pāmu (the commercial name of Landcorp Farming) and its primary partners Sharon and Peter McIntyre, deer farmers at Gore. Pāmu’s general manager innovation, environment and technology, Rob Ford, says the deer milk project grew from Pāmu’s drive for innovative new and different farming systems with a low carbon footprint. “We chucked a lot of ideas up, from the easiest to the hardest -the hardest being deer milk. The team got together and said, ‘let’s give that a crack!’ ” NZ knows a lot about farming

Executive chef Geoff Scott with a batch of sorbet desserts made from Pāmu deer milk. LANCE LAWSON PHOTOGRAPHY PH 0274 425 628

deer and has many partners, e.g. Agresearch, Agmardt, Asure Quality and the Food Hub, to help pull the idea together, Ford said. The development has so far taken three years. Ford said initial questions were whether deer could be milked, what was the milk’s composition and who would buy it. The second year was spent improving the farm system, further investigating the milk and how to powder it, and firming up the market.

“That’s progressively what we’ve worked on as a team over the last three years, culminating in last Monday’s VIP function in Auckland that pretty much launched the deer milk powder into the food service market and high-end restaurants.” Four restaurants in Auckland and one in Wellington have been supplied with pre-production stocks of deer milk powder and are already serving or planning deer milk-based menu items.

Chefs are enthusiastic about its qualities, said consultant chef Geoff Scott. The reconstituted milk was rich, silky and subtly flavoured, with a fat content high enough to make a quality icecream without further added fats, he said. Sharon and Peter McIntyre milk about 75 hinds, producing 6000L of milk in a season running from November to February/ March. The hinds, hand-reared so they are used to being handled, are machine-milked in a purpose-built 10-bail shed. So far, the refrigerated raw milk has all been sent to Massey University’s FoodHQ drier for processing but Pāmu hopes to transition to an operational unit in the next couple of years, said Ford. “Once we know and confirm we’ve got a market we will start to ensure we have a template available for all farmers. It’s not just a Landcorp play; it’s an industry play that could open up an opportunity for Landcorp and others to be a part of.”

Scott, engaged by Pāmu to help launch its deer milk, says it’s rare for chefs to work with a new ingredient they have never seen before. He says deer milk’s most noticeable feature is its “phenomenal” texture. And contrary to his expectations, the aroma was not as strong as goat or sheep milk. “It’s got a lovely gentle slightly savoury nose and when you drink it you get this amazing sensation with the texture of the milk,” said Scott. “That is down to its composition -- very high in fat and protein, almost double what you would find in regular cow milk. So as you’re drinking it, you get this beautiful silky finish.” Chefs would normally have to add cream to the milk in recipes such as ice cream, rice pudding, panna cotta, creme brulee or creme caramel. With deer milk there is no need. Scott is expert at creme brulee, having had the dish on the menu for 11 years at Vinnies Restaurant in Ponsonby. He found he could make a deer milk creme brulee “just like heaven on a spoon” using no extra fat, but a little sugar and egg yolk. Scott helped launch the product to a VIP function for 10 Auckland chefs, where they tasted a brulee, yoghurt, a sorbet “with a very light beautiful clean finish,” and a savoury dish of a Japanese handmade cheese, lightly marinated in miso.

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RURAL NEWS // JULY 3, 2018

10 NEWS

Global milk growth stalls, payout set to rise SUDESH KISSUN sudeshk@ruralnews.co.nz

GLOBAL MILK supply is stalling and that could mean more money in the pockets of New Zealand dairy farmers.

Rabobank’s latest Dairy Quarterly reports a stall in milk supply growth in the big seven dairy exporting regions -especially Europe and the US -- setting the tone for a more bullish market.

The report notes global farmgate milk prices have moved off the lows posted at the start of the year and says they are expected to move seasonally higher through the second half of 2018.

Rabobank has revised its 2018-19 full-year forecast by 40c to $6.80/ kgMS. Fonterra is forecasting a payout of $7/ kgMS for the season. The report author, Rabobank dairy ana-

lyst Emma Higgins, says the rally in global commodity prices, driven by poor weather that tempered milk production in the EU spring peak, and expectations that the NZ$ will ease slightly,

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Emma Higgins

had fed into the bank’s upward revision. “Recent milk pricing news in a number of regions including New Zealand confirms the price cycle has now turned in most key export regions. “While this will trigger a supply response, this response is likely to take time and be curbed somewhat by the pressure of rising feed costs on farm margins, so the global market is expected to remain well balanced for the next six months.” Milk output from the ‘Big 7’ increased by just 0.5% (year-on-year) in the three months to June 2018, the lowest since the end of 2016, says Higgins. “Looking forward to the next three months, the combined global milk supply across the major export regions is expected to grow by only 0.4%, with momentum in supply not expected to build until the start of 2019.” For NZ, the report says a favourable milk price and adequate feed reserves are likely to con-

tribute to a lift in production in the new dairy season. “Assuming normal weather, we anticipate NZ milk production will lift by 2% in the coming dairy season,” Higgins says. On the demand front, the report says many buyers globally have cover and will remain sidelined in the coming months, however China is expected to re-enter the market in a more ‘meaningful’ way in the second half of 2018. “Chinese import demand has slowed, but they are expected to become more active in the second half of the year. “We expect much of the production growth out of NZ to be absorbed by increased demand from China, which relies heavily on NZ product, particularly whole milk powder.” Without a disruptive event, Higgins said, global dairy markets should continue relatively stable, and global commodity prices are expected to be largely range-bound for the rest of the year.

STILL RISKY WHILE RABOBANK is forecasting a higher milk payout this season, it warns of some “real risks” to the outlook. Further culling of the NZ dairy herd due to Mycoplasma bovis disease and an escalation in trade tensions between the US and Mexico, China and Canada could create problems. Emma Higgins notes that the targeted cull of 126,000 NZ dairy cows in an attempt to eradicate M.bovis disease is not expected to greatly affect short-term milk production, given farmers have some flexibility as to when cows are culled and the likelihood many will be milked for much of the season. “However, the longer-term impacts are yet to be seen.” “Further testing of this disease will occur over coming months, and it could result in further culling, with the discovery of a single infected cow potentially resulting in the culling of an entire herd,” she says. Higgins says the trade frictions noticeable in dairy news are another risk for dairy markets. “Recently we have seen the US at loggerheads with Canada and Mexico, as dairy products have been caught up in the tensions over changes to tariffs.”

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RURAL NEWS // JULY 3, 2018

12 NEWS

Talking up NZ/EU free trade PETER BURKE peterb@ruralnews.co.nz

A 50% INCREASE in trade, higher wages for New Zealanders and cuts in tariffs to benefit our producers. These and other options were floated when the European Union’s Trade Commissioner, Cecilia Malmstrom, and NZ Trade Minister David Parker met in Wellington last week to formally start negotiations for a free trade agreement (FTA). They and their respective officials met briefly at Parliament to start the talks, a long time in the making. They come as NZ’s traditional ally in the EU, Britain, works on its (messy) exit from the EU. Both Malmstrom and Parker expressed delight

“We are interested in trade that benefits all and we are determined to push the benefits of those down to small businesses by reducing their barriers to trade.” that the talks are underway and waxed lyrical about what an FTA could do for both parties. Their chemistry seemed good and Malmstrom appeared relaxed and genuinely friendly towards NZ; and the officials negotiating the deal know each other well. No surprises are expected in these talks, but there will be challenges. Two-way trade between the EU and NZ is worth $16 billion and the talk was of a natural partnership and historic values shared by both

jurisdictions. Parker says a successful FTA will raise the prosperity of both NZ and EU, with benefits for all. “We are interested in trade that benefits all and we are determined to push the benefits of those down to small businesses by reducing their barriers to trade. We also want to encourage more women-owned businesses into trade and encourage our burgeoning indigenous economy to grow,” he says. Malmstrom described

ZESPRI HAS HIGH HOPES KIWIFRUIT WILL benefit much from an FTA. The EU is NZ’s biggest market for kiwifruit, especially the Haywards (Green) variety. Zespri chief executive Dan Mathieson says if tariffs were lifted on kiwifruit exports to the EU it would provide a $30 million windfall for the industry and Zespri would return some of this saving back to EU consumers via lower prices. “In Korea we had a 45% tariff and it was starting to hurt us because our major competitor, Chile, was paying no tariffs and that market was starting to die for us.

As soon as we got that tariff relief [with the Korean FTA] we shared some of it with the consumer and have now been able to build that market.” Mathieson says tariff reductions certainly help. “We have a great business in Europe. It’s one of our longest standing markets and we are selling over the half the green crop there, but we’ve got real growth ahead for Sungold. “Spain is our biggest market, then Germany and the Benelux countries.” The fastest growing market in the EU for Zespri is France, and Italy is also performing well.

EU Trade Commissioner Cecilia Malmstrom and NZ Trade Minister David Parker address the media following the beginning of negotiations on a free trade deal between NZ and the EU in Wellington earlier this month. PHOTO ALPHAPIX / JOHN COWPLAND

the talks as opening a new chapter in economic possibilities for companies and giving choices to consumers, as well also deepening the strategic ties. She says NZ is a friend and an ally and that it, along with the EU, stood for common values as expressed in sustainable trade and done in compliance with international trade rules. “We already do trade with each other, but we will try and facilitate that even further and build this relationship; so as to create more jobs and widen consumer choice.

“We have the opportunities to set ambitious rules to facilitate trade. Trade is about tariffs but also [requires] dealing with obstacles, red-tape, bureaucracy, difficult procedures to get certificates and licences.” Malmstrom says she’s looking forward to the discussions and thinks if the negotiations are successful it will produce a blueprint for FTAs that will inspire other nations to do the same. Parker agrees, saying that a good NZ/EU FTA would not only benefit both jurisdictions but also make the world a

better place. The first detailed round of negotiations is due to take place in Brussels next month, fol-

lowed by a further round in Wellington later in the year. @rural_news facebook.com/ruralnews

AGRICULTURE DEAL WILL PROVE TOUGH WHILE THERE were smiles all round for the start of the formal talks, the negotiations will have their moments in time – especially on the issue of agriculture. Malmstrom admits that of all the negotiations she’s been involved in, agriculture has always been the most difficult issue to resolve. “This is because it is sensitive for many countries and I expect there will be a few sensitivities for both sides on this issue. But we are aware of them and there will be no hidden agendas here. We are very open about sensitivities and we will try and get a good compromise,” she says. Among the sensitive or hard issues are geographic indicators (GIs) which affect the name of products such as cheese – which in the case of Europe is linked to a particular town or region. NZ has said while it’s not completely opposed to GIs it wants a reasonable approach taken. Tariff rated quotas (TRQs) are another contentious issue. This relates mainly to how the quota of sheepmeat to the EU will be allocated when Britain leaves the EU. Parker says the EU has already put a proposal on TRQs for the FTA negotiations, but he is not happy with this. “We have a counter-proposal and it’s for our officials to work through that to seek a solution that is compliant with WTO rules and one we can both live with,” he says. “We want to maintain some flexibility as to how sheepmeat products contained within those quotas are distributed within those countries on the basis that this might differ from year to year and the proposal that has come forward is less flexible than we would like,” Parker adds. While there are obvious sticking points, there is evident political goodwill on both sides; a huge amount of work has gone into this FTA behind the scenes and before the talks get down to the nitty gritty. Position papers have been widely circulated and as part of the process the EU and NZ are consulting the public to get wider community input on the nature and shape of this FTA which is likely to be concluded within a couple of year.

RURAL NEWS // JULY 3, 2018

NEWS 13

Organics rise, consumers still vague about it

NZ’s organic sector is now worth $600m a year.

PETER BURKE peterb@ruralnews.co.nz

NEW ZEALAND’S ORGANIC exports are now worth $335 million – up 42% on three years ago. Meanwhile, sales of organic products on the domestic market have also increased, to $254m, bringing the total value of organics to just on $600m. Organics Aotearoa NZ (OANZ) announced the result of its three-yearly survey at a function at Parliament last week, attended by growers, processors and supermarkets. Fresh fruit and vegetables remain the largest earner of export dollars for the sector, bringing in nearly $136m. Dairy, meat and wool is next, earning $99.5m, and wine and beer accounted for $46.5m. In the last three years the biggest growth has been in wine exports – up 87%, followed by meat, wool and dairy exports up 45% and fruit and vegetables up 26%. By far the biggest export earners in horticulture are kiwifruit and pipfruit. And notable growth is seen in a new category -- cosmetic and beauty products, now earning $28m. OANZ chief executive Brendan Hoare says great opportunities exist for NZ organic producers. The world wants what NZ

has to offer, he says, and we have the capability to grow our share of the global market. “The report articulates a national and global mood for change to natural, ethical, sustainable food and other daily used products. Consumers want change so they can live their values; producers and farmers are seeking change to do what is good for the land they love; and global markets are demanding greater and greater choice as organic goes mainstream.” Hoare believes producers and manufacturers are listening to the market signals, and he says 50% of the organics producers surveyed for the report showed interest in getting full organic certification or transitioning towards organic. Hoare says the report also shows that certified organic operations were up 12% to 1118 licensees and 1672 certified enterprises. It shows a 17% increase in land under organic production -- to almost 89,000ha, due to 50% growth in organic livestock area. On the domestic front, the report shows that 8/10 NZ shoppers buy organic food and groceries at least fortnightly. But most shoppers do not fully understand what ‘organic’ means, the report shows. People say ‘health’ is their main

reason for buying organics, but only 2.2% of all NZ’s grocery sales are organic. Agriculture Minister Damien O’Connor, who officially unveiled the report, says it’s taken time for the organic sector to grow and be taken seriously. It has

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small gains in May, and are now trading between 10% and % agricultural the price gap between fat and protein. ofBased meaning by thatwet some buyers have ample short-term coverage depositson fundthe current history a severethere cold are front in March, followed 20% higher than the start of theevents, year. Notably, New Zealand tightRabobank market conditions and the lower and will be on the sidelines. However, expects for European butter, agribusiness conditions during April,milk stalled grass growth and delayed healthy premiums for Oceania-origin cheese and skim Chinese imports to pick up in 2H 2018, surpassing returns of butterthe and SMP compared to cheese and whey, powder, which will be an ongoing feature – at least until the the start of the pasture season across much of Europe. previous year and prior forecast. Rabobank expects further price increases during Q3 2018. new selling seasons get underway in the Southern above-average temperatures were recorded RURAL NEWS // JULY 3, 2018Hemisphere and fresh product Nonetheless, Prices for Gouda cheese enters the market in a Recent announcements in a number of regions confirm thatwere stable, at EUR 2,950/tonneglobal agribusiness research analysts during April and May. 2018 milk production (+0.3%) during April and meaningful way. Rabobank is forecasting growth in As a result, Q1 the milk price cycle has turned in most key export regions. May, while WMP prices rose bysharing market outlooks increased 2.4% YOY, with March up only 0.5% YOY,Rabobank after exportable surpluses in both New Zealandby and Australia 5.7% (EUR 2,760/tonne). Looking forward, anticipates that combined milk

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through the peak production period. nine consecutive months of growth rates above 2% across (see the Big 7 will remain positive into 1H farmers to connect supply growth Content supplied by Rabobank – Grow with bank founded farmers for farmers with by worldwide , YOY Cheese production grew the by 1.8% during Q1 2018. From 3). inroads towards 2019 – but at a manageable level and in line with The European Commission has Figure made some a low base in 2017, butter production increased by 1.3% consumption trends. fundamentals point liquidating aging intervention skim milk powder The most severe stocks. impact EUof the weather events in Q1 2018Overall, the market YOY. In the first three months of 2018, SMP output jumped origin SMP continues to trade at a discount, compared to to a period of relative stability in global prices (see Table 1). was recorded in the UK (+0.3%) and Ireland (+2.5%), with by 7.0% YOY, which was still 3.5% below the 2016 level. most regions, and is likely to do so as long as intervention It may take a major weather event – particularly through the March output down 1.2% and 1.1% YOY, respectively. Milk WMP production declined by 4.2% YOY during Q1 2018. volumes remain burdensome. Oceania spring – to see a major shift in price direction as production in Germany and France, accounting for At the April (24,066 tonnes) and May (41,958 tonnes) 2018 comes to an end. Combined global milk supply across the major 35% export approximately of the EU milk pool, increased in Q1 tenders, a total of 66,024 tonnes was sold out of the EU SMP regions is expected to grow, albeit at a very modest rate of 2018 by 3.4% and 2.4% YOY, respectively. Italy (+3.6%), 0.4% in Q3 2018. Not surprisingly, year-on-year growth in intervention stocks, at a minimum price of, respectively, Poland (+3.0%), and Ireland (+2.5%) also recorded positive EUR 1,051/tonne and EUR 1,155/tonne, while only growth rates in the first quarter, while milk production levels Big 7 will remain posi- priceswere early months of 2018, during January’s milk output Figure 1: Milk production growth, Big 7 exporters (actual and Figure 2: Dairy commodity FOB recorded Oceania, 2013-2018* 10,289 tonnes were sold during the previous 15 months. in the Netherlands (-1.2%) remained below 2017, due to the tive into 1H 2019 – but at but with troubleofspots April As a tonnes (78.4%), Rabobank forecast), Q1 2013-Q2 2019f* exceeded the prior year With aand totalMay. of 51,746 the majority the 7,000plan. implementation of the phosphate reduction a manageable level and in some(22,829 member states. result, Q1offers 2018originated milk pro-from Belgium by 1.7%. But by April, the 6.0% accepted tonnes), 6,000 line with consumpAs a result of the lingering weather in impact, Rabobank Rabobank duction by and Poland year-on-year gain dwinGermanyincreased (17,152 tonnes), (11,765expects tonnes).1.0%

Steady as she goes... for now 5,000 estimates Q2 2018 milk production tion to increase byOverall, 1.5% YOY, trends. the

domestic consumption 2.4% YOY, with March The upcoming 19 June tender includes 144,847 tonnes of growth, supported by up only 0.5% YOY, after SMP. Recent production and EU-extra trade figures indicate 2.0% for April show lower year-on-year milk production in theofUK point to a period relrobust export demand, nine consecutive months 3,000 a relatively tight market for fresh SMP, with low private (-0.8%), Ireland (-5.9%), and the Netherlands (-1.7%).in global ative stability of growth rates above 2% based on positive eco2,000 0.0% stock levels, which is likely to support buying activity from However, milk production in Polandprices. improved by 2.8% YOY. (see Figure 3). nomic developments. 1,000 intervention stocks. Dairy consumption -2.0% EU farmgate prices have fallen by 13% since- December, Supported by oil prices, the US dollar value increased continues to higher be a mixed EU in May. US averaging EUR 32.44/100kg across Europe 2.9% vs. the euro in the five months to June, the -4.0% bag across Europe. Dairy Supported by low US milkenhancing production Nonetheless, cash margins remained positive for most Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 EU’s export position. Rabobank anticipates further companies continue to comparables and positive SMP continues to grow, but European dairy farmers during the first four months of 2018, Butter WMP 2013 2014 2015 2016 2017 2018 2019 strengthening of the US dollar through year-end. Cheese expecWhey powder point to generally robust on-farm margins, at a slower pace than with feeding costs increasing marginally. tations for improved posted earlier in the year. * Note: Big 7 includes EU, US, NZ, Australia, Brazil, Argentina, and Uruguay. * Note: Whey is FOB in western Europe.demand growth in the Increased price levels for dairy commodities are likely to Source: Big 7 government trade agencies, Rabobank 2018 Source: USDA, Rabobank 2018set milk production were translate into moderate farmgate price improvements Figure 3: EU milk production, Jan 2016-Jan 2018 for the EU spring flush. during Q3 2018, providing positive cash margins as 2/12 Rabobank | Dairy Quarterly Q2 2018 | June 2018 global for commodity marbuoyant ahead of the new incentive However, poor weather EU dairy farmers to push milk production in 2H 14,000 kets. While some inroads season. Rabobank is fore- 2018. quickly temHowever, the lower dairy herdconditions size at the end of 2017 13,500 have -1.0% been YOY) madeand clearing casting growth in export- (EU-28: pered these increased slaughter rates expecta(EU-25: 13,000 EU intervention stocks, able surpluses in both tions.ofAmong key events, +4.5% YOY) during the first two months 2018 indicate 12,500 300,000 tonnes SMP New Zealand and Austra- that a severe front in the potential for of milk production growth cold is limited. 12,000 remain. In addition, US lia through the peak proMarch, followed by wet 11,500 As a result, Rabobank expects milk production to increase non-fat dry milk stocks duction period. conditions during April, 11,000 by 0.75% YOY for Q3 2018 and 0.5% YOY for Q4 2018. For are higher than the prior Without a disrupstalled grass growth and 10,500 1H 2019, Rabobank expects a stable milk production growth year. India, too, has a tive event, global dairy delayed the start of the 10,000 of around 0.5% YOY. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec growing stockpile of SMP. pasture season across markets are entering a In the two months to June, SMP prices lifted from 2018 2016 2017 Rabobank anticiperiod of relative stability much of Europe. 1,320/tonne, the lowest recorded level since 2007,aboveto pates that combined milk in 2H 2018. But it is not EUR Nonetheless, Source: ZMB, Rabobank 2018 EUR 1,450/tonne powdertemperatures prices supply growth(+9.8%), acrosswhile the whey all clear skies ahead for average down 0.5% from the previous forecast. Preliminary results 4,000fundamentals market

thousand tonnes

4.0%

USD/tonne

IN Q2 2018, combined milk supply growth of the Big 7 exporting regions came to a near standstill. Output increased just 0.5% YOY, the lowest since the end of 2016, despite Northern Hemisphere production being in full swing and New Zealand having a better finish to its weather-challenged season (see Figure 1). Year-on-year growth in Europe and the US failed to meet market expectations, which set the tone for a more bullish market. Global butter markets continue to be elevated and act as a constant underlying force in the dairy markets. The European butter prices have rallied, but yet to hit 2017’s record highs. Given low processor stock levels and seasonally low milk flows, Oceania prices will remain

4/12

dled to just 0.6%, representing the lowest year-on-year improvement in milk production since January 2016. Lower profitability and unfavourable weather conditions contributed to reduced gains in productivity per cow. In general, year-onyear milk production growth continues in the South-West and NorthWest, compared to the significant slowdown in year-on-year increases in the Upper Midwest and North-East. The US dairy herd has contracted by 8,000 head since February and stood at 9.4m head in April, still 8,000 head above last year. Several states that reported growing

Rabobank | Dairy Quarterly Q2 2018 | June 2018

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be on trend, at 1.5%.

could have a negative impact on consumer discretionary spending, which, to date, has helped boost foodservice sales. The export picture for the US may also lose some of its brightness, as the US dollar creeps higher on expectations of higher interest rates later in the year (see Figure 5).

most of 1H 2018 has seen a slight uptick greater total (domestic and export)

butter grew by more than 3% in the

ntinues to be supportive for dairy

months of 2018 vs. the prior year,

dairy herds Bureau of Labor Statistics.

are currently facing severe drought les volume of yoghurt, processed conditions, which could ream all posted year-on-year declines prompt herd reductions onths of the year, according to IRI. if feed availability and itional products have suffered demand costsofbecome issue in ding new channels growth inan other 2H 2018. dy-to-drink coffee. New market entry Looking ptional growth and containsforward, added Rabobank expects US casein). dairy demand to be by 10% in liquid milk equivalent terms stable, with some upside r, driven by growth in NFDM (+23%) as the economy remains 15%). US exports have benefited from a strong despite being ridugh the early part of 2018, helping to dled withtheuncertainty, ket balanced. However, more recent as US aggressively US dollar couldthe impede export growth negoin tiates key trade agreements. There are some ks are mixed, compared to last year. potential headwinds for NFDM stocks were up 20%, followed demand to(+5%). rising gas ese (+14%) and butter due stocks and a stronger America and prices dry whey were off by 3%US , from last year. dollar.

EUR

k 2018

Farmgate milk prices started April at around BRL 1.25/litre,

divestiture commitment for the Koroit plant in Western

but should enter June at a higher level and move higher still

Victoria. The sale process is expected to complete by 1 July.

in July. However, domestic feed costs will likely remain

New Zealand The weather over the course of the 2017/18 product season was once again extremely variable. Despite both extreme wet and dry conditions, milk production recovered, with a strong finish during the final months. Milk collections for AUDApril 2018 NZD increased 3% on the prior year, bringing national milk

The weather over the course of the 2017/18 product season was once again extremely variable. Despite both extreme wet and dryfor conditions, milk production recovered, withNew a uncertainty as the collection the seasonstrong finish during the final months. Zealand government to-date within 0.1% of

announced last Milk season. collections for April 2018 increased 3% on its thecommitprior year, bringing milk collection season-tomentfortothe a phased eradiWith one national month shy date within 0.1% of last season. With one of month of a cation the shy bacterium of a completed season, completed season, 2017/18 milk Mycoplasma bovis. Rabobank expectsRabobank 2017/18 expects production to match 2016/17, resulting in 21.4m tonnes of Fortunately, 2018/19 milk production to match milk (see Figure 6). 2016/17, resulting in 21.4m looks set to be another The favourable to 2017/18season was enhanced by of profitability. tonnes of milkending (see Figure Fonterra raising the expected farmgate milk price to Fonterra’s opening price 6). NZD 6.75/kgMS (up NZc 20/kgMS from the prior forecast), a forecast is NZD 7.00/ The favourable ending profitable level for most New Zealand dairy farmers. kgMS, and other dairy to 2017/18 was enhanced The new 2018/19 production season began 1forecasts June, withare a company by Fonterra raising the cloud of uncertainty as the New Zealand government within a comparable expected farmgate milk announced its commitment to a phased eradication of the price range. price to NZD 6.75/kgMS bacterium Mycoplasma bovis. This disease does not impact Based on illness forecast (up 20/kgMS from milk NZc quality, but affects productivity by causing in commodity pricescows over the a cowprior herds.forecast), Under the government's strategy, 126,000 (including young will be slaughtered the next along the next over 12 months, profitable level stock) for most one toZealand two years, in addition 23,000 cows culledspot with a NZD/USD New dairy farm- to the earlier this year. exchange rate of 0.70, ers. Rabobank new will 2018/19 pro-a significant ThisThe decision not have impactexpects on short-the term milkseason production. Farmers willfarmgate have some flexibility milk priceastoto duction began when the cows are culled. It is likely that many cows will be average NZD 6.80/kgMS. 1 June, with a cloud of Figure 6: New Zealand milk production, Jan 2016-Apr 2018 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Jan Feb Mar Apr May Jun 5-year average

Source: DCANZ, Rabobank 2018

2018

Jul Aug Sep Oct Nov Dec 2016

2017

// JULY RURAL 3, 2018 elevated, as international demandNEWS for Brazil’s grains is strong, particularly given Argentina’s supply constraints with

New Zealand Content supplied by Rabobank – Grow with the bank founded by farmers for farmers

US expenditure on foodservice up

tes USD vs. exporters, 2014-2018

Goulburn’s assets. Saputo is moving ahead with the

MARKETS & TRENDS 15 its current grain crop.

Rabobank expects milk production in Q2 2018 to be 9% lower YOY as a result of the trucker strike in May, which

reduced output by 20% for that month. Looking ahead,

are more than offset by a tureproduction deficits still willpersist take time to recover, and it will probably renminbi afterdecrease a very hot and dry a further 6% in Q3 strengthening 2018. period across key regions, in US dollar terms over 1,100 In terms of trade, both imports and exports retreated in the but the situation is slowly the past 12 months, leav1,000 first four months of 2018. Imports were down by 35% in ing US dollar-adjusted improving. volume terms, reflecting that domestic prices have been 900 prices 7% higher than the Rabobank’s forecast lower than last year and that demand has yet to start same period last year. for Southern Australia’s 800 growing because of a very weak recovery after the end of Following flat year2018/19 farmgate com700 the recession. Farmgate milk prices were already on an on-year production in modity milk price has upward trajectory before the strike, as the trough in milk 600 Q1 2018, the Ministry of been increased. It now production approached during the middle of the year. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Agriculture’s raw milk stands at AUD 5.90/kgMS 5-year average 2018 2016 2017 Demandpremiums will likely remain through Q3 2018, as the production index pointed (excluding and weak economy shows signs of stagnation and consumers remain using a spot currency rate to a near 2% YOY proSource: Dairy Australia, Rabobank 2018 cautious ahead of the presidential elections in October. duction growth in April. of 0.76) vs. the previous forecast of AUD 5.40/ Summer weather condi8/12 Rabobank | Dairy Quarterly Q2 2018 | June 2018 tions began a little earlier strong uptick in exports kgMS. Rabobank is foreAustralia than the preceding year. of cheddar cheese and casting a slight drifting Australian milk proNevertheless, some largewhole milk powder of the Australian dollar, duction expanded by scale farms are optimisduring this period. to 0.74 through 2H 2018, 4.5% in April (vs. the pretic about milk flow over With total dairy which is supportive of vious year) and brought the summer, compared to exports running 9% export returns. the milk production total last year. higher in the four months to 7.97bn litres – which Rabobank is holding of 2018, inventory levels represents year-to-date China steady, with its Chinese are running at normal growth of 3.5%. The Average farmgate milk levels. Australia’s milk northern Australia region prices in China eased fur- milk production growth forecast of 2.2% for 2018 production curve is continues to battle dry ther in May, to CNY 3.42/ (2% for 1H 2018 and 2.5% entering its low period, conditions, which have kg (USD 0.54/kg), as proin 2H 2018), assuming a seen milk production fall. meaning product availduction finally gained more normal summer. ability will be tight until In the first quarter momentum in April and • Want to keep up-tothe season gets underway as demand remains seaof 2018, total Austradate with the latest food & lian dairy export volumes (see Figure 7). sonally quiet. Current agribusiness insights? Tune grew by 8%. Liquid milk farmgate milk prices are After a dry start to into RaboResearch Food export volumes contindown by almost 3% since autumn in April, many & Agribusiness Australia ued to grow, with quarthe beginning of the year production regions & New Zealand podcast ter-on-quarter growth and are 1% lower YOY. received a timely autumn channel. of 25%. There was also a Weaker milk prices break in May. Soil moisFigure 7: Australian monthly milk production, Jan 2016Apr 2018

million litres

d 3.4% on a

Rabobank supports clients from was up 1.6% YOY on farm to fork in COUNTRIES milkfat basis. Retail demand

obal agribusiness ance for Q1 2018 earch analysts aring market outlooks

thousand tonnes

ance. USDA reports that total

could impact the remaining lactation cycle.

On 1 May, Saputo completed the acquisition of Murray

Rabobank | Dairy Quarterly Q2 2018 | June 2018

LEVY CONSULTATION 2018 Beef + Lamb New Zealand are currently undertaking consultation on a proposal to increase sheepmeat and beef levies to accelerate investment in a range of important programmes.

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RURAL NEWS // JULY 3, 2018

16 AGRIBUSINESS

Keep up with pace of change PETER BURKE peterb@ruralnews.co.nz

A QUALITY environmental plan will soon be a prerequisite to buying or selling a farm, says ANZ Bank’s head of commercial and agri. Mark Hiddleston told Rural News that the pace of change is now faster and is matched by the greater expectations of the community and consumers. He believes an environmental plan will soon rank equally with getting a LIM in the purchase of a farm. “We as a financier will need that and it will become normal. Early adopters are now already there. “But a few wakeup calls [sounded] during some sales and purchases around ‘gypsy’ day, and those who didn’t have [an environmental plan] were scrambling a bit. “The need for an environmental plan hasn’t become a compulsory requirement yet, but you can see where it’s going.” People are starting to realise the ag sector must change to meet the sustainability requirements expected of it, Hiddleston says. The pace of change in consumer expectations has leaped ahead of the regulatory environment. “I don’t think the regulatory environment has kept pace with

Mark Hiddleston

the consumer. That catch-up needs to take place to be able to demonstrate to the consumer with facts – based on science. “You also need to identify

VOLATILITY A REALITY IN TODAY’S FARMING IN THE last five years, Hiddleston says, volatility has increased, in the market and in climate conditions in New Zealand. Now there is no such thing as an average season. “Each season now you can expect a flood, a drought and commodity-cycle volatility all in the same season. That will re-base some of the capital structures and the expectations on profitability, because volatility is ultimately a cost,” Hiddleston explains. “Precision farming will help, and people will do things differently to manage risk; this may be interest rate management or hedging the milk payout to take out some volatility. However, farming is still a very viable and bankable sector.”

those who are laggards in the farming sector and, sadly, they will need to be punished. You can’t just have this ‘she’ll be right’ approach.” Hiddleston says a lot of things in society are consumerled and this will be a significant driver in NZ’s primary produce sector and the need for farmers to recognise this. “There is a realisation that our farmers are part of communities and communities need to be proud of the activities taking place in the regions [farmers] operate in,” he adds. “But farmers also need to realise that while they haven’t done a bad job, the bar has lifted from a consumer and community expectation point of view.”

SPEND ON ADVICE THE BIGGEST challenge for the agri sector, says ANZ’s head of agri Mark Hiddleston, is coordination and willingness to spend on advice and planning. Some farmers get it and are starting to invest big in R&D and technology. “They also understand scale and their ability to measure and monitor and articulate their story,” he told Rural News. “The issue of provenance is getting real traction with the end customers. But I am worried about those who may be left behind. Spending money to get help is not something they do naturally.” Hiddleston believes this approach needs to be taken to make the sector more bankable in the future.

In his experience, Hiddleston says, very few farmers have deliberately gone out of their way to do the wrong thing. But they have probably underestimated the pace of change and not had the clarity to do things

the way they should. “When you give that to them they are quick to say, ‘well how do I get there’? You don’t tell farmers what to do; you give them a problem and ask them to solve it,” Hiddleston says.

CONFIDENT BUT... AT FIELDAYS Hiddleston saw many examples of smart science. In the foods sector he saw the work AgResearch is doing on Wagyu beef and Pāmu on deer milk. Agritech is also in a leading position and this is the key to NZ retaining its place as a producer of high value products, he says “Dean Bell, of Waikato Milking Systems, said the inquiries they were getting were not for new platforms, but for upgraded platforms with greater measuring of cow welfare and identifying cows that might need support. There is a move to invest more in that area of precision farming, which is good.” Hiddleston believes Fonterra’s projected $7.00/ kgMS payout has injected some confidence back into the dairy sector, but there is a sense of caution. Farmers are aware of M.bovis, environmental issues and the need to reduce their debt, which built up for some in the bad seasons. “They are repaying some of the overdrafts that have been carrying them through the downturn. The exhibitors I spoke to at Fieldays said there is confidence there, but also a holding back. “Some exhibitors said their expectations of sales are well up, while others said it was very quiet. Our customers in the dairy sector are very much thinking that as the cash comes in they need to rebuild the balance sheet more; they’re thinking about the direction they are going, especially in sustainable farming practices.”

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RURAL NEWS // JULY 3, 2018

18 OPINION EDITORIAL

EDNA

Reform needed HALF A trillion dollars a year: that’s US$620billion or €556b annually. This is the amount various countries are pouring into subsidising their farmers every year, according to a recent international report. The OECD’s ‘Agricultural Policy Monitoring and Evaluation 2018’ report not only shows the huge subsidies being tipped into distorting global agricultural production and trade annually; it also points out just how badly targeted it is. “Most agricultural support policies continue to be poorly aligned with defined objectives, while measures that distort production and trade continue increasing in some countries,” the report highlights. We can only agree with the OECD’s conclusion that: “… progress is needed in reducing and redesigning the world’s agricultural support policies”. Any such move would be hugely benefit farmers in New Zealand, whom the report found were at the bottom of the OCED table of global governmental support for agriculture. Contrast us with the five countries handing the biggest subsidies to their farmers: Iceland, Norway, Switzerland, Korea and Japan – ranging from 40-60% of their farmers’ total earnings. The report says that almost 80% of the total annual government support for agriculture during the period studied was provided to individual producers. But only 14% funded general services such as R&D or infrastructure – the very things it says are needed to equip the world’s farming sector for future challenges. The report recommends the focus of any agricultural support should be to address the need to increase productivity growth sustainably and enhance environmental performance – especially in the context of a changing climate. The OECD says its this report underscores that most agricultural subsidies are not aligned with these objectives. “Government support to market prices not only harms consumers -- especially the less well-off -- but also reduces the competitiveness of the food industry itself.” Let’s hope world bodies such as the OECD and the WTO will start to take action on the perverse and distorting impact the obscene agricultural subsidies are having on the environment, trade and availability of cheap food around the globe. These bodies could do worse than look at NZ as a glowing example of a country farming successfully without the need for subsidies.

RURALNEWS TO ALL FARMERS, FOR ALL FARMERS

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THE HOUND Labour pains

No thanks

Bovine excrement

MIA

YOUR OLD mate can’t help but bask in an extreme case of schadenfreude (look it up) over the number of government workers lining up to go on strike unless they get big wage increases. Labour and its coalition clingons went into the last election making big promises to their union mates; so you can’t blame their erstwhile comrades for now expecting a big pay-off – and corresponding pay rises – now they are in government. Your canine crusader reckons you can expect public servants of every hue to follow nurses in demanding similar hefty salary increases and threatening strike action if they do not get them. Meanwhile, the Hound reckons if IRD workers do go out on strike – as they are currently threatening to do – he is happy to join them on the picket line, as this old mutt reckons the longer IRD is on strike the happier he and other hardpressed taxpayers will be.

THE HOUND can’t buy into all the over-the-top media gooing and ghaaing over a certain baby born to a certain working mother, earlier this month. Very nice for the family involved, but that’s about it. However, your old mate did crack a wry smile about a gift presented to the new mother and child – and the accompanying hyperbolic claims – from animal rights activists PETA. The animal militants gifted a faux-sheepskin baby rug because, according to its publicity, “sheep suffer terribly in the production of sheepskin rugs….”. As a mate of yours truly pointed out, the animal extremists – as usual – do not back up their claims with any proof. While sheep do make the ultimate sacrifice in the production of sheepskin rugs, etc, the regulations and animal welfare laws in NZ make illegal any cruelty to or suffering of sheep during their lives on farms or final processing.

SPEAKING OF hyperbole and unsubstantiated claims, your canine crusader is getting tired of hearing the pompous, pretentious and selfimportant claims of Regional Development Minister Shane Jones. It is insulting to those of us living in the regions for Jones to self-title himself the ‘first citizen’ or ‘champion’ of provinces without actually earning the title or doing anything to warrant it. What makes it even more galling is that just over a year ago Jones was swanning around the Pacific living high off the hog and achieving SFA, and before that was living in Ponsonby, Auckland, and charging up his hotel porn to the taxpayer. In fact, rumour has it that Jones’ overhyped and under-achieving – much like his political career – PGF has seen many in the regions reckon the annual billion dollar booty actually stands for ‘pomposity, gratuity and f### all’ for provincial NZ.

THE HOUND reckons Fonterra must have one of the largest teams of spin-doctors and PR hacks in corporate NZ. However, one could be forgiven for thinking that the dairy co-op’s PR department has been missing in action (inaction) of late. Example one: when the Mouth of the North Shane Jones took a pot-shot at Fonterra chairman John Wilson during Fieldays. Instead of outlining all the work Wilson has done for Fonterra and its farmers during his long tenure at the dairy giant, its PR team remained silent. Example two: when long-time dairy critic Greenpeace made claims that Fonterra’s main supplier of PKE, Wilmar, was linked to the mass destruction of rainforests in Indonesia. Its PR team’s response was… absolutely nothing. The dairy co-op might as well sack its team of highlypaid spin doctors and save farmers and the co-op the huge money.

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RURAL NEWS // JULY 3, 2018

OPINION 19

Time for fresh thinking on Fieldays THE WINTER Solstice has passed, the nights are drawing out and National Fieldays has been and gone – hooray to all three. If you hadn’t realised it from months of television and radio advertising, Fieldays was celebrating 50 years since it began at the Te Rapa racecourse in 1968. And while interesting, it hardly warranted so much attention compared to Massey Ferguson having clocked up 60 years and Gallagher Group 80 years. Numbers attending were down, but the Fieldays marketing machine claimed an above-average result based on the last five years. It neglected to mention that the 130,866 attendees included 25,000 exhibitor staff, 1000 media people and, of course, the entire school population of Hamilton and district on the Friday. It was a positive event, despite the shadow of Mycoplasma bovis, but one must wonder – given the theme ‘The Future of Farming’ – how it will all develop. The site has obvious limitations (oh the traffic); and the visitor numbers… hmmm. Priority must be given to showcasing New Zealand agriculture and the bridging of

town and country, ahead of ‘innovation, education and internationalisation’ -- whatever the latter means. It is hard to believe that visiting townies would have left Fieldays this year knowing more about agriculture. The absence of livestock, in a country that is essentially pastoral, must be seen as the biggest failing, given Agriculture Minister Damien O’Connor’s plea that farmers earn their social licence by showing Joe Public the good things happening onfarm. Fieldays sales figures reported in 2017 suggested the event was responsible for generating $538 million of business; but nobody in the supply industries can tell you who responded to the University of Waikato’s survey or how much business still would have eventuated had Fieldays never existed. It was plain to see, during the four days, that retail giants Bunnings,

Swanndri and Skellerup were doing great business. But a walk along the machinery lines after 2.30pm showed few eager buyers were about. Exhibitors reckon the cost of attending the event is making some companies baulk: Silver Fern Farms, Alliance, Beef + Lamb NZ, Miraka, Tatua and NuFarm didn’t feel a need to attend. Notice too that although most sites (excluding the retail area west of the pavilion) were agricultural, motor or commercial, none was shown in the post-event photographs sent to news media. By contrast, the pictures that turned up were promoting the lightweight, ‘in-house’ promotion Rural Catch (13 photos) and the lacklustre Education Hub. A disconnect is evident between the Fieldays society and the exhibitors, who get no guarantee they will be assigned the same site from year to year. Yet the event rests on their participation. Meanwhile, over-thetop safety inductions are delivered by those who have no idea to people who deal daily with large lumps of machinery; and an innovations event

Fieldays 2018

allows entry to a quad modified to carry seven people – profoundly stupid and dangerous! Fieldays-style events worldwide have had to change. Most have gone back to their roots, demonstrating modern agriculture to urbanites,

showcasing and offering tastings of local food, and allowing the city dwellers to get close to animals and to the farmers making it all happen on the land from day to day. Any such event needs to simultaneously demonstrate best practice and

latest technology to farmers and rural people, even to the extent of the working machinery demonstrations seen at the Grassland UK event or Agritechnica in Germany. Memories of visiting the gargantuan Irish Ploughing Match that

dwarfs Fieldays (320,000 visitors over three days) bring to mind the old adage, ‘doing the same thing and expecting a different result is a form of insanity’. It’s time for a rethink of what Fieldays is really all about.

RURAL MEDIA HABITS

THE FACTS! ● 88% of farmers read rural print at least weekly ● 79% of farmers say print is their preferred format ● 82% of farmers are influenced by rural print ● 77% of farmers use rural print for business and research ● 74% of farmers pay attention to the adverts in rural print ● 90% of farmers act as a result of reading rural print The Rural Media Habits Survey 2018 is independent research conducted by Perceptive Research on behalf of the majority of rural publishers. Participants were screened to exclude lifestylers and ensure a robust sample of 820 Commercial Farmers. Results show the majority of farmers read rural print, find it highly relevant to their businesses, and that it influences their purchasing decisions more than all other media.

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RURAL NEWS // JULY 3, 2018

20 OPINION

Subsidies no good for environment BY TAKING nitrogen (N) from the air to make fertiliser, the Haber-Bosch process has been called the greatest invention of the 20th century; without it almost half the world’s population would not be alive today. The availability of nitrogenous fertiliser removed the key con-

straint to crop productivity. That story was broadcast on RadioNZ earlier this year in the series ‘Fifty things that made the modern economy’. Global agriculture has, however, become steadily more dependent on synthetic nitrogenous compounds. This dependence

Global agriculture has, however, become steadily more dependent on synthetic nitrogenous compounds. This dependence has been described as a ‘deadly addiction’ because overuse of N leads to losses into waterways and increases in greenhouse gases. has been described as a ‘deadly addiction’ because

overuse of N leads to losses into waterways and

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increases in greenhouse gases. Production versus environment is a global conundrum and American researchers stated this year that identifying what changes can be made to farming operations to reduce N losses while maintaining productivity and profitability is still a challenge. For some countries it will be more of a challenge than others, and NZ could be one of the lucky ones. At the end of May, the UK Defra (Department for Environment, Food and Rural Affairs) published ‘Agriculture in the United Kingdom 2017’. The report shows that the N balance (the difference between N coming into the UK and that leaving it) was 90.7kg/ha, an increase of 4%. Despite no change in inputs, yields had decreased, so more N was assumed lost. The N balance in NZ reported widely last year was 49kg/ha. While it is true that it had increased in the last decade (to 2009 in the OECD Environmental Performance Review 2017), it is also true that the countries praised for reducing their impact, for example the Netherlands, had reached about 204kg/ha (down from 302 kg/ha in 19982000). The UK was 97 (down from 120kg/ha in 1998-2000). In a different report in February, Defra indicated that in the 2014/152016/17 period, 16% of farms made a loss even with ‘support’ (which we term subsidies). Without these payments from the government, 41% of farms would have made a loss. Further analysis shows that only the top 25% of farms actually made money from farming; the next 25% broke even on farming but made money on the payments; the next 25% lost money on farming which was partially offset by the payments; and the bottom 25%

simply lost money. Across all farm types, 61% of farm business income came from direct payments, with grazing livestock and mixed farms most dependent. The UK subsidies include direct payments based mostly on area of land, but with a third on ‘Greening’. The EU states that the ‘Greening’ payment “supports action to adopt and maintain farming practices that help meet environment and climate goals as market prices do not reflect the effort involved in providing these public goods”. Permanent grassland (which dominates NZ agriculture) is supported because it helps maintain biodiversity and soil carbon. Subsidy payments are also for diversification (non-agricultural on or off farm, but using farm resources), and agri-environment. The latter was set up because ‘Greening’ was failing to meet environmental objectives. Agri-environment is paid on an ‘opportunity cost’ or ‘income foregone’ basis, recognising that environmental initiatives might impact on profitability – recognising, in fact, that it is hard to be green when you are in the red. Discussions are occurring about how the payments in the UK might be phased out. More efficient use of fertiliser, changing the timing and amount, has already been proposed; so has soil testing. NZ, with its excellent soil testing services, and heightened awareness of losses and what might reduce them using Overseer as a guide, has a part to play in assisting UK farmers, and others, to reduce losses. NZ was mentioned in the US research as having made great progress, including on a catchment basis. And, of course, the NZ LAWA 2018 report states that more rivers are improving, including in nitrate, than deteriorating. All without subsidies. Why aren’t more people pointing this out? • Dr Jacqueline Rowarth has a PhD in soil science and has been analysing agrienvironment interaction for several decades.

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RURAL NEWS // JULY 3, 2018

22 MANAGEMENT

Dairy farmer’s passion for goats NIGEL MALTHUS

DUNSANDEL FARMER Michael Woodward may be Federated Farmers North Canterbury dairy chairman but his real passion is the angora goats he inherited from his father John. Hohn Woodward, of Pukekohe, is a pioneer of the mohair industry: he set up its pool marketing system about 1982, is a board member of Mohair Producers NZ and now manages marketing of the North Island mohair clip. Michael Woodward, meanwhile, is sharemilking on 300ha at Dunsandel with his wife Susie. They do not own the farm but they own the 2ha homestead block where they run a menagerie of goats, dogs and chickens. Their angora flock stands at 34, having

NO ACTING THE GOAT JOHN WOODWARD is an enthusiastic salesman for mohair fibre, pointing out that it both dyes and washes better than wool. He is currently developing his own line of mohair clothing. Woodward says the mohair market is booming, with prices for the most recent pool payment 35% up on the same time last year. The average price across all lines (including stains) was $22/kg, up from $14. In the main lines, 36-micron stood at $20 and 23-micron superfine at $40. New Zealand has about 120 Angora farmers, ranging from lifestylers with about 10 goats to the biggest, with 1400. They produce about 30 tonnes of mohair a year, most of it exported to China, Taiwan and Italy to be made into clothing, hand-knitting yarns and rugs.

started two years ago when they bought in 10 in-kid does. John Woodward recently visited to give his seal of approval of their efforts and to shear nine chosen animals in preparation for the Canterbury Show in November.

“I’m still mastering my technique so that’s why we bring the expert down,” Michael says with a grin. Although it is hard to make money off a small flock, he says angoras are “certainly” a part of their future, probably on

Goat industry pioneer John Woodward shearing his son’s Michael’s angora goats at Dunsandel, Canterbury.

a hybrid farm with dairy cows. “We see opportunity there in an industry that has good payout again.” Michael says goats and cattle share no crossover diseases and would complement each other, with goats eating the “rougher stuff” while leaving the “good stuff” for the cows. Goats have some husbandry challenges compared to sheep, such as the need to provide shelter because of the lower lanolin content in the fleece. Goats also have some drench resistance problems but these can be addressed by rota-

tional grazing with cows. On Michael’s farm the goats and cows are run as two separate enterprises. “The only time these goats have gone out on the farm is just to chew out the calf paddocks and clean them up; otherwise never onto the grazing platform,” says Michael. “But if we really wanted our goats to perform, grazing them on a dairy platform where the pasture’s kept at a high quality all the time would definitely help the growth of those animals. Until we get our own property we don’t get to make that decision.”

Michael Woodward likes to get involved outside the farm gate and has already joined the Canterbury Mohair Producers Board. He believes sharing their dairy experience will be valuable to the mohair industry, particularly the discipline it would bring in evaluating the animals’ performance and breeding. “We tend to keep a lot more records in the dairy industry,” he says. “The finest mohair might get paid the most per kilo, but if you have an animal that clips twice as much off it, then ideally you’d want to breed

from both bucks eventually and you’d cross over and get the volume with the quality. At the same time you don’t want to take away from the frame of the goat itself because it might not survive longterm. “We’ve got an example of two bucks out there that are very much like that,” says Susie. “One clipped a big clip but lower quality than the other one; the other one a finer quality but it’s also a finer-framed animal so we’re in two minds on both of them. There are good bits to each of them.”

RURAL NEWS // JULY 3, 2018

24 MANAGEMENT

Ensuring lice treatment is successful JULIE WAGNER

THE MOVE into the cooler seasons brings with it an unwanted guest – the sheep louse. Winter is the time populations increase, causing discomfort for sheep and warranting preventative treatment by the farmer. There are important points to note when treating for lice. With insecticide resistance already present in other countries – and talk about the effectiveness of louse treatments in New Zealand – we need a sustainable approach. Efficacy requires a switch to other actives for consecutive treatments because treating repeatedly with a chemical from the same chemical group (even if it is a different active ingredient) exerts pressure for the selection of resistance. If you are experiencing sub-par performance with lice-kill treatment, then it would be wise to have this investigated. Lice are present on sheep yearround in varying numbers. This means that dipping, done properly and under optimum conditions (the right wool length and appropriate chemical), will

kill lice at any time of the year. Treatment during summer can also help reduce the risk of autumn and winter population increases. Important points to note are: • Effective control of lice requires a two-year treatment cycle. The two year/two tier approach keeps louse numbers low in a flock and may provide an opportunity for eradication. In addition: • Treat the infestation in the ewe and then the residual lice that pass from ewe to lamb. Lambs should be treated as soon as possible, preferably at weaning. • Where treating for flystrike, a product that kills both fly and lice can be applied. • For flocks with a history of recurring louse problems, consider a follow-up approach with a specific louse control product. • Apply chemical strictly according to label directions and ensure the dose rate is correct as it’s critical that effective levels of chemical are applied all over the sheep’s body. Poor application technique can leave areas with little or no chemical in the fleece, allowing more resistant lice to survive

Ravensdown’s Julie Wagner

and breed. • If sheep are not wet properly in plunge dips, areas of low chemical concentration can allow more resistant lice to survive. • Shower dips need to be functioning properly and sheep must be left in the dip for long enough to ensure they are wet to the skin. • Depending on the product chosen, the best time to treat sheep for

lice is ‘off-shears’ (ie within the first 24 hours after shearing for pour-ons) or in ‘short wool’ (ie from two to six weeks after shearing). The longer postshearing interval should apply only to saturation dipping methods. Remember that the rule is one minute in the shower for every week of wool growth. Anything longer than six weeks wool growth makes dipping potentially less effective. • Avoid using long-wool treatments where possible. Treating lousy sheep with long wool is most likely to compound the problem as dip chemicals may not reach all parts of the sheep.. • Where a long-wool treatment has been used, ensure that a chemical from a different group is used after the next shearing. Using a chemical from a different group maximises the chance of killing any potentially resistant lice left alive by the long wool treatment. Control options include fast-acting pesticides (usually nerve poisons) and slow-acting pesticides such as insect growth regulators. In both cases, lice must come into contact with and/or ingest the compound to be affected. Formulation type can influence the rate at which pesticides control

lice. For example, even though fastacting pesticides such as pyrethroids, neonicotinoids and organophosphates can kill lice within a few hours of contact, when applied as a backline up to six weeks may be required for the pesticide to spread over the sheep and kill lice. Slow-acting insect growth regulators (IGRs: eg diflubenzuron, triflumuron) interfere with the production of chitin and insect growth and development. Chitin is the compound insects use to make their exoskeleton. These chemicals work to eliminate louse infestations over many weeks, interfering with insect moulting and so preventing development and viable egg production. As adult lice do not moult, they are not killed by IGRs and it can take up to 18 weeks for all adult lice to die. Eggs present at the time of treatment are also not affected. Remember that broad spectrum treatments to prevent flystrike can potentially expose any lice present to the same chemicals. This adds selection pressure and increases the risk of resistance developing. • Julie Wagner is product manager, animal health for Ravensdown.

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RURAL NEWS // JULY 3, 2018

ANIMAL HEALTH 25

Deer breeders looking at maternal traits TREVOR WALTON

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DEER FARMERS wanting fewer late-fawning hinds can now buy sires and hinds with breeding values (BVs) for earlier fawning. Sharon McIntyre, the manager of Deer Select, the national deer recording database, says proven sires on the database have BVs for fawning date ranging from 9.5 days earlier and 10 days later than average. “Not every deer farmer is looking for hinds that cycle early, but nobody wants late fawns. Late fawns have less time to grow and on many farms their mothers miss out on high quality spring feed for lactation. They struggle to reach target liveweights by autumn,” she says. McIntyre says there are no real downsides to having earlier fawning genetics because farmers can still control their fawning date by deciding when to put their stags out. “Some farmers in the high country prefer a traditional early- to mid-November fawning because it suits their pasture growth pattern. On warmer country, especially where it’s summerdry, earlier fawning is an advantage.”

She says breeders using Deer Select can record conception date at pregnancy scanning and get a conception date BV. So long as the stags are

growth rates, and breeders have some very high merit young stags available to the industry and are now starting to focus a bit more on maternal

“Some farmers in the high country prefer a traditional early- to mid-November fawning because it suits their pasture growth pattern. On warmer country, especially where it’s summer-dry, earlier fawning is an advantage.” put out well before the onset of mating, this BV can then be used to select for breeding hinds that fawn earlier in the season. “Commercial farmers do not want sires that produce daughters that become late-conceiving hinds. In the Deer Progeny Test, done by AgResearch from 20142016, R2 hinds from different maternal sires differed in average date of conception by up to two weeks.” McIntyre says more and more stud breeders are including BVs in their sale catalogues, particularly BVs for growth and meat or velvet. Other BVs are usually available on request if the breeder is recording these traits. “There has been a lot of emphasis on faster

traits,” she says. “Conception date is one of these, as are fertility rates for young hinds and fawn survival. Fertility can be measured by knowing the hinds mated and their pregnancy scanning results – zero or one. A fertility trait will be set up in Deer Select and will be available to breeders shortly.” She says survival is a little harder, but a start has been made with some breeders recording wet (with an udder) or dry (no udder) at pre-rut weaning. “Both these traits have low heritability. Feeding, body condition score and management have a big impact on both fertility and fawn survival, but it is possible some lines of deer are better or worse

Pregnant hinds in October. It’s now possible to buy stags with breeding values for fawning date. PHOTO: RICHARD HILSON

genetically for these traits than others and we won’t know unless we measure and record.” Deer Select is owned by Deer Industry NZ (DINZ). It stores pedigree and performance (trait) records, then uses this data to provide estimated BVs and economic

indices. “Deer stud breeders use these BVs and indexes to inform their selection decisions and to monitor their genetic progress, both in their own herd and relative to other breeders. Commercial farmers can use these BVs as the basis for sire

and elite hind selection, confident that the animals they are buying are of known genetic merit,” McIntyre says. “BVs enable farmers to compare stags and hinds offered by different breeders, knowing they are comparing apples with apples. Also BVs tell

you things that you can’t see or physically measure, like maternal genetics in stags and velvet genetics in hinds. “Buying a good-looking stag from your neighbour may be cheaper, but in the long-run it could take your herd backwards and cost you money.”

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Mycoplasma bovis – some common questions and answers WHAT’S THE PLAN FOR CALF DAYS THIS YEAR?

HOW CAN I PROTECT MY FARM FROM MY NEIGHBOURS’ STOCK?

We recommend that schools and clubs don’t hold their calf days this spring. Bringing animals from different herds together can risk spreading disease. It’s a pretty low risk, but we are in a critical phase for tracking down and eradicating Mycoplasma bovis, and it’s helpful to not mix animals at events like calf days if possible. If schools and clubs do go ahead with events, make sure you have talked with your communities and taken all sensible precautions. Our website has ways to minimise risks: www.mpi.govt.nz/bovis

The disease doesn’t easily spread over the fence – so far we’ve not seen this happen in New Zealand. Talk to each other about how to manage your biosecurity. If your neighbour is grazing the boundary, keep your cattle back, and use electric fence outriggers on the boundary so there is no nose to nose contact.

WHAT WOULD HAPPEN IF MY FARM CAME UNDER SUSPICION OF MYCOPLASMA BOVIS? If our tracing of cattle from infected farms suggests you may be at risk, you’ll have a call from our casing team. They’ll ask questions about animals you’ve brought onto your farm and when. Information you give them, about things like the timing of movements, may rule your farm out as a risk. If not, one of our vets will book to come to your farm and take blood samples from some of your animals. At this point you may be put under biosecurity controls (a Notice of Direction or a Restricted Place Notice). Testing can take some weeks, and several rounds of tests can be needed to confirm if the disease is present. About 70-80% of farms under Notice of Direction tested are negative, the controls are lifted, and you can carry on farming.

WHAT HAPPENS IF MY FARM TESTS POSITIVE? If infection is confirmed, the farm is an Infected Property. If you don’t have a Restricted Place Notice this will be issued now. You will be given a personal case manager (Incident Control Point Manager/ICP Manager) to work with you on plans for your farm and culling of your cattle. The Rural Support Trust and your industry organisations are available to help. Your farm would be cleaned and disinfected (by a contractor and at our expense) and then would need to be kept free of cattle for 60 days. If restrictions are lifted, your farm can then be restocked, which we can help you plan. There is compensation available for culled cattle. Partial payments can be made within a fortnight of culling.

WHAT’S AN IP, AN RP AND A NOD? An Infected Property (IP) is a farm where a genetic test (PCR) confirms Mycoplasma bovis. All cattle will be culled from these farms. Infected properties are under legal controls known as a Restricted Place Notice. A Restricted Place (RP) is a farm where there is either confirmed disease or a very high suspicion of disease. Unconfirmed RPs have usually had test results indicating the disease is present, and are having more testing. Cattle and other risk goods (equipment, vehicles, farm equipment) cannot be moved on or off the farm without permission from MPI. Under the eradication programme, many RPs will be culled. A farm under a Notice of Direction (or NOD) is where we believe there has been a risk movement – like a transfer of cattle from an infected or high-risk property and testing is underway. Farms under a NOD cannot move cattle and risk goods off the farm. 70-80% of farms under a NOD prove to be negative and the controls are lifted.

WHAT ADVICE CAN YOU GIVE ABOUT BUYING STOCK? The infected and most suspicious farms are in lockdown. This includes farms under Notice of Direction. Remember, 70-80% of these farms end up testing clear. Do your homework about the original source of the cattle, their health history, and find out what milk was used when they were reared – whole milk or calf milk replacer. If you don’t like the answers, don’t buy the animals. Always apply good biosecurity measures when introducing new animals to your farm – like keeping them separate from the rest of the herd for a period to observe their health. DairyNZ have a helpful pre-purchase checklist: www.dairynz.co.nz/pre-purchase

WHY DIDN’T YOU CLOSE COOK STRAIT TO CATTLE MOVEMENTS WHEN IT WAS FOUND IN THE SOUTH ISLAND? The risk of disease transfer across the Strait was assessed as low. Imposing legal controls would have needed strong scientific justification. It would have created a disproportionate impact on normal farming activities, and have appeared internationally as a more severe biosecurity issue, creating a high risk of trade impacts. The disease was in the country for 18 months before we were aware of it and a significant number of risk cattle movements had already occurred between the North and South Islands during this time.

CAN I PURCHASE RAW MILK FROM A DAIRY FARMER TO REAR CALVES? Feeding unpasteurised raw milk from cows infected with Mycoplasma bovis (or any mastitic or sick cow milk) is a high-risk activity. You should try to get some confidence the source herd is Mycoplasma bovis-free. Ask for the results of the recent bulk milk tests. If feeding whole milk, consider pasteurisation of the milk. In smaller operations it is possible to treat the milk with citric acid. You can also use calf milk replacer. Full information is on our website and on DairyNZ’s website.

Mycoplasma bovis – the numbers so far… We have been working hard to hunt down the disease. Where it has been found, we have been working closely with affected farmers to eradicate it from their farms and return them to business as usual as fast as we can. We’re making good progress. Some key numbers are:

WHY WON’T YOU TELL US WHERE THE INFECTED FARMS OR THE SUSPECT FARMS ARE?

• Since July last year, we have found over 50 properties where Mycoplasma bovis has been confirmed (these are called Infected Properties).

Along with the affected farmers, we will let immediate neighbours of Infected Properties or high-risk properties know that Mycoplasma bovis is present. This helps them to take steps to improve on-farm biosecurity and reduce the risk to their own stock. This balances the privacy concerns of individuals with the need for farmers to protect their own farms and support their communities. NAIT numbers of affected animals will soon be published on the MPI website to give farmers another way to check movements of stock. Farmers need to complete their Animal Status Declarations (ASDs), disclosing the health history of their stock, and whether their farm has been under any movement controls.

• Put in perspective, this is out of more than 20,000 dairy and beef farms nationally. • Over half of those Infected Properties have had their cattle culled and been moved into a process of cleaning, disinfection and laying fallow for 60 days. • We have finished this process on 11 of those, meaning those farmers have had controls lifted and can now restock. • Overall there are currently some 180 properties where we have restricted the movement of animals on or off the farm – this includes the Infected Properties and properties where we have a strong suspicion that Mycoplasma bovis is present. • We have been able to reduce the number of properties under movement restrictions, because of progress in our testing, where suspect farms have tested clear, restrictions have been lifted and they go back to normal farming. The fight against Mycoplasma bovis is a joint effort between MPI, DairyNZ and Beef + Lamb New Zealand; with significant support from: - Dairy Companies Association of New Zealand

- Rural Support Trusts

- New Zealand Veterinary Association

- Rural Women NZ

- Meat Industry Association

MPB0031

- Federated Farmers

www.mpi.govt.nz/bovis

For more information: www.dairynz.co.nz/mbovis www.beeflambnz.com

www.rural-support.org.nz

RURAL NEWS // JULY 3, 2018

MACHINERY & PRODUCTS 27

James Stewart with his company’s Pro-Series trailer at Fieldays.

Canny Scot knows how to tow MARK DANIEL markd@ruralnews.co.nz

IT’S APPARENT that New Zealand farmers and contractors accept the benefits of high-spec, tractor-drawn tipping trailers: a wide range of brands were on display at Fieldays. Stewart Trailers’ principal James Stewart, whose company is known for making high quality trailers in the UK, was busy scoping out the NZ market at Mystery Creek. Based at Aberdeen, in the north of Scotland, and run by husband-and-wife team James and Mandy Stewart, the company goes back 30 years. It works at building a better-quality trailer using current and evolving technology and, importantly, listening to customers’ experiences and requests. So Stewart has been an early adopter of flotation tyres and air suspension and braking systems. Its range includes tippers, dump, flat, lowloader and livestock trailers. The Edge series starts with a single axle, 4-tonne monocoque and extends to the Edge 16,

tandem axle 16 tonner. Likewise, the higherspec GX series are built from mild steel from 11 to 20 tonnes or 15-26cu.m capacities. For those looking to benefit from Stewart’s leading design and technology, the Pro Series, multi-purpose tippers use Hardox steel in their body construction. This is said to have twice the strength of mild steel, allowing the bodies to be made lighter – reducing the tare weight but still retaining the required strength and durability. “We’ve already sold a number of trailers in NZ, which interestingly have been built with a wider track for increased stability,” Stewart told Rural News. The company’s ProSeries trailers are fitted with high-speed, 10-stud commercial grade axles rated to 100km/h; these are typically fitted with truck-spec, 4-wheel braking with load sensing and ABS. Designed to follow well behind the towing vehicle, the trailer’s design details, e.g. the monocoque body main

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rails folding outside the main chassis rails, keeps the centre of gravity low. This also offers the advantage of preventing mud from collecting on exposed beams, and a sprung drawbar helps improve ride quality. Though the company builds ‘standard’ trailers, Stewart notes that users regularly customise their trailers to suit an operation or the environment. Contractors

are likely to specify air brakes, and farmers might ask for a loadsensing hydraulic braking powered by the tractor’s hydraulics. Larger units are often supplied with hydraulic steering and, as on the unit displayed at Fieldays, a hydraulic parking jack. Other favourites include hydraulic drop-front panels, integral weighing and auto-greasing systems.

She’s a truck; not a ute! PROMINENTLY DISPLAYED at the Mercedes Benz site at Fieldays was a vehicle that gives merit to the saying ‘there’s plenty of life in the old dog yet’. The venerable G-Professional cab chassis can trace its heritage back to the early 1970s when the Shah of Iran – a major shareholder at Mercedes – suggesting the company develop a military vehicle, which we know morphed into the ubiquitous G-wagon. Now, 45 years later, the G-Professional might be termed middle-aged but it can still hold its own, and more, in a market dominated by youngbloods.

Shown in an interesting configuration, as a rural fire service vehicle that would have most brigades salivating, the vehicle produces 135kW and 400Nm from a 3.0L, V6 turbo-diesel that mates to a five-speed auto-transmission and three independent differential locks. Looking at the vehicle’s abilities, a gross vehicle mass of 4470kg enables the truck to carry a 2085kg payload and pull a braked trailer of 3200kg, combining to give the G-Pro a combined mass of 7500kg. @rural_news facebook.com/ruralnews

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RURAL NEWS // JULY 3, 2018

28 MACHINERY & PRODUCTS

New tractors series challenges the norm MARK DANIEL markd@ruralnews.co.nz

CHALLENGER HAS unveiled the nextgeneration MT700 Series track tractors, said to deliver more performance, ride comfort, operating efficiency and onboard intelligence to maximise productivity and profitability. Designed using the AccuEngineering platform, the new MT700 has new styling, a new AGCO Power 9.8L Tier 3 diesel engine in three options from 380431hp, and upgrades to the transmission, undercarriage and hydraulics. The AccuDrive powertrain uses the stepless speed control of the Challenger Accu-VT transmission that combines with operating

Challenger’s next-generation MT700 Series track tractors are said to deliver more performance, ride comfort and operating efficiency.

technologies to deliver a “high-torque, low-speed” approach that in turn helps save fuel. Likewise, the hydraulic system and PTO are designed to run at lower engine rpm, with the former achieving greater flow at lower engine rpm while still meeting the

demands of the latest planters and implements. Full output is delivered at 1700 rpm, allowing the tractor to run in the peak torque range of 1200 - 1600rpm, said to result in less engine wear and a quieter working environment. The Challenger’s

patented MobilTrac system makes it the first two-track machine with three stages of suspension and oscillating mid-wheels that precisely follow the ground over terraces and uneven surfaces. The MaxxRide integrated comfort

system consists of oscillating mid-wheels, hard-bar suspension and cab suspension, so operators get better ride quality without sacrificing power, control and traction. The primary

suspension has been redesigned with rugged coil springs and highcapacity shock absorbers for a more comfortable ride than with hydropneumatic suspension systems. Off road-style, heavyduty shock absorbers provide precisely tuned digressive damping. Meanwhile, a new two-point cab suspension system with increased suspension at the rear of the cab absorbs and dissipates the vibration from the ground through the rear axle. A new cab has more space, enhanced suspension, an air-ride seat, larger instructor seat and Bluetooth capability. The new 10.4-inch, touch screen AccuTerminal has an intuitive smartphone feel, allowing operators

to manage all settings and adjustments, connect to ISOBUS-compatible implements, use guidance and headland management functions. The Advantage joystick, PTO controls and conveniently located colour-coded keypad are all within easy reach of the operator’s fingertips. A new LED light package includes more lights at the rear of the tractor to provide a clear view of the implement, and porch lighting on the cab provides a safe view of the area. An integrated walkaround platform provides secure, fast access for cleaning windows in cases when the tractor hasn’t been equipped with the side washer/wiper system. @rural_news facebook.com/ruralnews

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SIP’s expot sales manager Sebastjan Bogotaj at this year’s Fieldays.

SIP a VIP at Mystery Creek FLYING THE flag at Fieldays via its New Zealand distributor Webbline and export sales manager Sebastjan Bogataj, the machinery manufacturer SIP -- the largest in Slovenia -- was a relatively unknown name, but it showed a wide range of products. It specialises in grassland machinery such as mowers, tedders and rakes. Dating back 60 years, the company employs 280 employees producing machinery that meets the criteria of simple, strong and robust. Its mowers range in size from 2.6 to 15m in front- and rear-mounted, trailed and butterfly format, or the range-topping five-unit, 15m trailed version. Tedders are available from 4 to 15m and rakes 6 to 12.50m, meaning there is a machine for any operation. Construction in all the ranges uses quality components, with bearings from SKF, heavy-duty driveshafts from Walterscheid with service intervals up to 250 hours, and gearboxes from Bondoli and Pavesi. Mower cutter-bars built in-house are modular, using the company’s disc

drive safety system (DDSS). These comprise four shear pins in the hub beneath each disc, breaking under impact to prevent damage to the bed. Export manager Bogataj claims that, since the system’s introduction in 2007, no replacement gears have had to be supplied because of impact damage. Looking at the cutter-bar, the wedgeshaped assembly is oil-filled for instant lubrication at start-up. The bars are complemented by discs, skids and in-fill cleaner plates made from Hardox steel to extend service life. A quick-change knife system allows rapid in-field replacement. Bolt-up knife fittings can be supplied for arduous conditions. The hydraulic suspension is designed to place about 180kg loading to ensure a clean cut and allow good ground adaption at all times. For front mounted units, available from 3 to 3.5m working width, the S-Flow system uses a pulling motion combined with hydro-pneumatic suspension to ensure the mower floats over undulations and obstructions.

RURAL NEWS // JULY 3, 2018

MACHINERY & PRODUCTS 29

2018 Toyota TRD Fortuna.

Toyota Fortuner is here! MARK DANIEL markd@ruralnews.co.nz

TOYOTA’S HILUXBASED Fortuner SUV line-up has had an aggressive upgrade in New Zealand with the addition of a TRD (Toyota Racing Development) enhanced

version. A honeycomb grille, front spoiler, side steps, rear trunk garnish and 18-inch wheels are added to the top-of-the-range Fortuner Limited variant. “The result is a beefed up, great-looking, top-end SUV,” says Neeraj Lala,

SAVING MONEY, ENVIRONMENT A WATERBORNE paint system at Toyota NZ’s Thames Signature Class plant is saving the company $40,000 a year and is kinder to the environment, particularly the workers and the Thames environs. The plant, among NZ’s largest car painting facilities, has two triple paint and drying booths where six vehicles can be worked on at a time. Annually this cuts solvent use by 50% and energy use by 35%, saving about $40,000 a year. Though the 12,000L of paint used each year costs a little more, less is used and the drying/curing cycle time is reduced by 35%, requiring less energy. And fewer volatile organic compounds (VOCs) are emitted from the base coat, better for worker health and for air quality. Colour matching is said to be easier when only part of a vehicle is being painted. The upgrade cost $235,000, mainly for air-drying blowers to speed up water evaporation, and retraining for the paint booth staff. Fewer problems and repaints are among the paybacks.

Toyota New Zealand general manager of product planning and new vehicle sales. “It builds on the headturning features of the Fortuner Limited and follows in the footsteps of other great Toyota TRD models.” Available in Crystal Pearl, Graphite or Eclipse exterior colours, the Fortuner TRD includes all of

the Limited’s luxury and driver-friendly features, e.g. leather-accented seats and a premium JBL audio system with 11 speakers. The TRD Fortuner package retails at $59,990 including registration, a full tank of fuel, the Toyota Care Service Advantage package, floor mats and 1000km of prepaid road user charges on diesel vehicles.

Compact and stable KUHN IS expanding its range of single-seed sowing drills with a new 8-row folding, trailed frame layout for maize, using 70 and 75cm spacing. The set-up can sow eight rows using a tractor of about 100hp; its carries 1500L of fertiliser. The drill has the patented Kuhn Stabidrive helping keep it stable during road transport and headland turns; it also helps to keep the drill aligned when sowing on undulating and hilly terrain. Said to be ideal for farmers and contractors who prefer to load the seed drill at a farm or base, the Maxima 3 TRR 8-row is road-certified for travelling fully loaded, and it conforms to 3m wide transport regulations for transport. Easy access to the hoppers via its

broad access platform makes for easy filling of the fertiliser and micro-granular hoppers. Four load-bearing wheels are fitted as standard to prevent soil compaction and provide improved terrain following during sowing. The two central wheels also mechanically drive the sowing drill and fertilising components. With simple adjustment and sturdy construction, the new drill is said to be well-balanced; it can drill at speeds up to 10km/h. As an option, the Maxima 3 drill can be fitted with the Kun V-Max furrow closing system that uses an advanced pivoting point, increased pressing capacity and simplified angle setting to achieve excellent seed-to-soil contact in all conditions. www.kuhn.co.nz

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RURAL NEWS // JULY 3, 2018

30 MACHINERY & PRODUCTS / RURAL TRADER

New Holland upgrades steering MARK DANIEL markd@ruralnews.co.nz

NEW HOLLAND Agriculture is updating the T7 long wheel base with a new suspended front axle designed to ease the operator’s life while driving at high speed. A combination of new geometry, low friction hub bearings and a new hydraulic steering unit is said to deliver better feedback and control to the driver, and the self-centring characteristic designed into the axle reduces corrections at high speed, reducing operator fatigue. In combination, the tractor’s front suspension has updates to improve performance over the wide variety of front axle loads encountered by a tractor. A new control valve with dual accumulators helps deliver an 11% improvement over the existing design

when measuring chassis vibration. A concept known as ‘skyhook’ momentarily stiffens the suspension to keep the tractor level irrespective of external forces such as implements being raised or lowered, braking or accelerating, or weight transfer on and off the front axle. In practice, the upgraded T7 weighs the rear implement to determine how much stiffening is required to reduce excessive suspension travel at higher speeds. Meanwhile, an accelerometer in the nose of the tractor monitors chassis movement on uneven surfaces and continually adjusts the suspension damping to improve stability, safety and comfort. Depending on operator preference the suspension can be operated in soft, normal or hard modes. Also new for 2018, CustomSteer offers variable ratio steering on the

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T7 range. This allows the driver to vary the number of rotations of the steering wheel needed to turn the axle hubs from lock to lock. Three selectable settings of 1:1, 2:1 or 3:1 rotations of the steering wheel can be chosen with the IntelliView IV that also offers a different ratio for forward than for reverse. Steering ratios can also be changed automatically within the headland turn program HTS II, e.g. one ratio for working, one for turning at the headland and one for reversing. In operation, custom ratio is gradually dialled out as speed increases, up to 26km/h, and slowing the tractor causes CustomSteer to re-engage

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AFTER TWO decades of using local distributors in New Zealand and Australia, the cultivation, seeding and crop care machinery maker Lemken has formed a down-under subsidiary under its own name. Lemken Australia & New Zealand Pty began operations on June 1, based in Melbourne and led by managing director and sales manager Robert Wensing. Lemken ANZ is the 26th overseas subsidiary for the German firm. It has subsidiaries in the US and Canada. The seventh-generation family company has at least 1400 employees and has been 230 years in the business. A dealer network is planned for Australia and NZ. Norwood Farm Machinery Centres in NZ will remain a crucial component of this new network. The product range for Australia and NZ will chiefly be soil cultivation machinery and seed drills made in Germany and adapted to the soil conditions, crops and farm sizes in the local markets. – Mark Daniel

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