Rural News 21 August 2018

NEWS

MACHINERY & PRODUCTS

AGRIBUSINESS

30-year veteran takes out Arable Farmer of the Year title. PAGE 21

Steel yards are safer and ease cattle flow. PAGE 39

Turning farmers into consumers is the objective of McDonald’s New Zealand farmer tours. PAGE 24-25

TO ALL FARMERS, FOR ALL FARMERS AUGUST 21, 2018: ISSUE 659

www.ruralnews.co.nz

‘Get used to it!’ PAM TIPA pamelat@ruralnews.co.nz

ON THE increasing costs of farming in New Zealand, Agriculture Minister Damien O’Connor says “get used to it”. “The reality is we are in a world that is scrutinising every part of our farming operation,” he says. “They want to know where their products came from; whether they are a supermarket or a consumer, they want to know more about what they are consuming.” For the most part, we produce fine food, nutrition and fibre, O’Connor told the NZ Institute of Primary Industry Management conference. However, he claims a recent apple contract was lost in the United Kingdom because the exporter couldn’t guarantee that the labour component of that production system gave fair wages and conditions. “It’s a wake-up call for that industry; we will be under the same level of scrutiny for every part of our systems – animal welfare, environmental management, labour.” He says NAIT was seen as an unnecessary cost when it was introduced, in the same way as water and nutrient management are now seen by some as an extra cost to farming operations. O’Connor was questioned about the purpose of the Primary Sector Council which he set up to ‘provide advice to the Government on issues confronting the primary industries, with an immediate focus on developing a sector-wide vision’. “We are spending hundreds of mil-

lions in the Primary Growth Partnerships (PGPs) and hundreds of millions in infrastructure supporting our industries. What for? So we can double our exports? Give more profits to the banks? Make people work harder and rely more on migrant workers?” he told the conference. “The question is, ‘why are we doing

it and are we heading in the right direction?’ [The council] has quickly identified the issues on training, CRIs and research… where there is dysfunction. “In some areas we are certainly not using our capability as we should. In the few meetings the council has had, I think they are on the mark. “They will not come up with a magical solution, but they will come up

with some direction for each of the sectors to work through.” O’Connor then had a dig at PGPs – implemented by the previous government – for being like “confetti thrown around”. “Most people in agribusiness have benefited in some way from PGP. The problem is when that finishes, where are you?”

Out with the old... and in with the new FONTERRA CHAIR John Monaghan and newly announced interim chief executive Miles Hurrell will take over the reins at the dairy co-op. Monaghan last month replaced long-time chair John Wilson and Hurrell was appointed last week, formally replacing outgoing boss Theo Spierings on September 1. Monaghan says Fonterra’s board believes it is not best practice to have the chairman and chief executive stand down at the same time. “We have stopped the global chief executive search while we review the co-op’s current portfolio and direction. It’s important that we give ourselves the time to take stock of where we are, breathe some fresh air into the business, then determine any changes needed.” – See more page 4.

HILL COUNTRY GOING WELL PETER BURKE peterb@ruralnews.co.nz

BEEF + Lamb NZ director Kirsten Bryant is concerned about the perception that hill country farmers aren’t doing well. Bryant says she and her husband have three hill country farms and financially they have never done as well as they are doing now. Their properties are returning 5% to 8% on capital. “I don’t know where this perception that hill country farming is not profitable has come from,” she told Rural News. “For a start, let’s not forget about hill country farms that this is where the lambs are bred. So you start focusing on hill country farming as a negative and talking it down and soon you are going to lose your breeding ewes and total lamb production,” she says. Bryant says BLNZ has work to do to dispel the thinking that hill country farms are not profitable. She says, in general, things are looking positive for sheep and beef farmers. However, a whole lot of things are changing outside the farmgate and the challenge is going to be keeping farmers abreast of all of these developments and helping them to adapt in a positive way. Bryant says the big issues relate to environmental performance, climate change, water quality and health and safety

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RURAL NEWS // AUGUST 21, 2018

NEWS 3 ISSUE 659 www.ruralnews.co.nz

Wake up to challenges – O’Connor PAM TIPA

NEWS ��������������������������������������1-21 MARKETS ��������������������������22-23 AGRIBUSINESS �������������� 24-25 HOUND, EDNA ���������������������� 26 CONTACTS ����������������������������� 26 OPINION ��������������������������� 26-29 MANAGEMENT �������������� 30-33 ANIMAL HEALTH ������������35-37 MACHINERY AND PRODUCTS ���������������������� 38-42 RURAL TRADER �������������������� 43

HEAD OFFICE Top Floor, 29 Northcroft Street, Takapuna, Auckland 0622 Phone: 09-307 0399 Fax: 09-307 0122 POSTAL ADDRESS PO Box 331100, Takapuna, Auckland 0740 Published by: Rural News Group Printed by: PMP Print CONTACTS Editorial: editor@ruralnews.co.nz Advertising material: davef@ruralnews.co.nz Rural News online: www.ruralnews.co.nz Subscriptions: subsrndn@ruralnews.co.nz ABC audited circulation 80,580 as at 31.03.2018

pamelat@ruralnews.co.nz

DAMIEN O’CONNOR told the NZ Institute of Primary Industry Management conference that more R&D spending is needed in the whole economy and that not all agricultural investment will be behind the farmgate. He says MPI’s economic intelligence unit is getting the world’s best information on trends and information on protein, fibre, etc. “We are looking out for that information to try to bring it back and share it, but the question is should we forcefeed money to try to make progress? If industries don’t see the need to do this they are going to fail anyway. We are not going to subsidise…. we went beyond that in the 1980s. “We have to lift our game across the board because we are being challenged

Agriculture Minister Damien O’Connor

by all these alternatives.” He cites margarine as an example. “As an industry we fought it and they

ran over us”. It was easier to spread and after about 15 years of resistance we finally looked at spreadable butter.

(Spreadable butter was made by Kaipara Co-op Dairy Co in the early 1970s. Ed.) “For about 30 years we were beaten up by margarine until finally we got to the point where we said ‘this highly processed stuff is probably worse for you than butter’.” “We have to wake up and be more mature about the challenges coming at us.” “It won’t be just a picture of the Southern Alps,” he said, referring to a comment from a conference attendee that was our only response so far to the threat from alternative proteins. “It will be a whole lot around the nutritional value of meat and ensuring there is not unwanted residues in there. “The ability to test around residues is going up and up.” @rural_news facebook.com/ruralnews

Don’t panic about alternative proteins PETER BURKE peterb@ruralnews.co.nz

ALTERNATIVE PROTEINS do not spell doom and gloom for the meat industry, says Lain Jager, chairman of the Government’s new Primary Sector Council. Jager told the recent Red Meat Sector conference there is a need for more plant based protein because globally the current protein system is not sustainable. He says New Zealand needs to embrace these new technologies and move forward with them. What does that mean for meat? he asked. “The important idea is that the

MORE TALK? LAIN JAGER claims that after two meetings the new Primary Sector Council is getting traction and focusing on its work. The primary industries will hear a lot more from the council in the next two months as it reveals its vision for the future of the sector. “The worth of the group will depend on the advice we give to the minister. “[The sector is facing] much change, e.g. technology, alternative proteins and sustainability, and its importance to NZ.” Jager sees lots of room for high-quality thinking and leadership to take NZ into the future.

global requirement for protein is going to grow as the population continues to grow. And this means meat is a premium protein hugely valued by consumers and associated with wealthy consumers. People who want

to eat meat want good meat.” Jager believes meat will be highly valued by consumers and we will continue to see strong demand for meat. The job for the meat industry and farmers is how to produce meat sus-

tainably and add value to it. “That has been the strategy over recent years and it continues to be. There is a lot of work and opportunity ahead of us; there are lots of alternative meats and milks and there will be more of them but that doesn’t mean no future for meat,” he says. Jager says we will see a great diversity of rich products so in some senses there will be be more consumer choice. “But our opportunity with meat is to produce a really good product that consumers value and choose positively.” @rural_news facebook.com/ruralnews

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RURAL NEWS // AUGUST 21, 2018

4 NEWS

Shareholders to the fore SUDESH KISSUN sudeshk@ruralnews.co.nz

FONTERRA’S INTERIM chief executive Miles Hurrell says the co-op needs to be clear, upfront and honest with farmer shareholders. Hurrell, who was chief operating officer of Fonterra subsidiary Farm Source, took over as chief executive last week; Theo Spierings, after eight years in the role, leaves on September 1. Hurrell told Rural News Fonterra needs to “deliver upon our commitments that we make to our farmer shareholders”. “We need to be clear, upfront and honest; and deliver on the promises to our farmers. “I have heard that loud and clear; we need to be out there approachable to our farmer shareholders and to our unit holders. “At the same time we have a large international business; there are global customers, consumers, stakeholders and governments in NZ and overseas; I will have to balance all that.” Hurrell’s priority in the coming weeks will be

Fonterra chair John Monaghan

Miles Hurrell

to provide stability to the business after its change of chairman and chief executive in quick succession. “That’s never normally best practice; we realise we need to provide some stability for our businesses around the world.” Fonterra will announce on September 13 its annual results for the 2017-18 financial year and guidance for 201819 -- another “immediate focus” for Hurrell. Following the fullyear results, Hurrell, his management team and directors will meet farmers NZ-wide in his first formal farmer meetings as chief executive. On China, Hurrell says parts of the $5 billion

business needs attention. Fonterra is reviewing its stake in the Chinese baby food company Beingmate, whose value has been written down by $400 million. “The fully integrated business model in China is doing well, but I will keep a close eye on Beingmate,” Hurrell says. As head of Farm Source, with 70 retail outlets and online services for shareholders, Hurrell has been working closely with farmers. He says the role at Farm Source gave him “an opportunity to prove to farmer shareholders what I do and what I can do”. @rural_news facebook.com/ruralnews

FONTERRA’S NEW CHIEF MILES HURRELL (44) was born in Christchurch. Before being appointed chief executive officer last week, Hurrell led Fonterra’s global cooperative farming strategy, including farmer services, engagement, milk sourcing and Farm Source stores. His 18 years experience in the dairy industry has spanned four continents. In his previous role as general manager Middle East, Africa and CIS he led a period of sustained growth during political unrest. He was appointed co-op affairs group director in 2014 and in 2016 became chief operating officer of Farm Source.

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New chair wants changes to DIRA NEW FONTERRA chairman John Monaghan says regulation forcing the co-op to collect milk from farmers is past its use-by date. Speaking to Rural News two weeks after taking the chair, Monaghan singled out the need to change the Dairy Industry Restructuring Act (DIRA) as the biggest challenge for the co-op. He says Fonterra is looking forward to working with the new Government and Agriculture Minister Damien O’Connor on the DIRA review underway. “We will push to get rid of the open-entry and open-exit provisions of DIRA; it’s well past the use-by date.” Fonterra believes open entry provision is no longer needed because the industry has become competitive. Monaghan points out the main purpose of DIRA was to promote competition and give farmers and Kiwis choices: today New Zealand farmers can choose from roughly 10 independent processors, only five of which are NZ-owned.

“Competition is a good thing for Fonterra and we believe competition is here to stay; Fonterra’s milk share has dropped from 91% to 82% because of competition.” Monaghan says if the open entry provision is left in place it will “wipe out the progress that’s been made”. “Because once you have a few processors who’ve made inefficient investment decisions that only stack up with open entry, it has the potential to lead to significant excess manufacturing capacity in the industry. “This creates a risk of a downward spiral of low-margin competition that will hold back moves up the value chain and ultimately result in business failures.” Fonterra also points out that it can’t bar a farmer from the co-op because of environmental or animal welfare issues. Monaghan also wants a review of the raw milk regulations, under which Fonterra must supply raw milk at a regulated price to independent dairy companies.

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Companies buy milk from Fonterra at a ‘subsidised’ price before processing it and then using it to compete with Fonterra and other NZ-owned dairy businesses in export markets. Monaghan, who took over the chairmanship from John Wilson, has been on the board since 2008. He grew up on a dairy farm and has farming interests in Wairarapa and Otago; he served as Fonterra shareholders council chairman before being elected to the board. Monaghan says the unanimous backing from fellow board members and calls of support from farmers had energised him for the role. He says serving on the council and Fonterra’s board have helped him develop strong networks domestically and internationally with key stakeholders. Over the years Monaghan has also led in representing Fonterra’s interests on global trade issues and during customer visits. – Sudesh Kissun

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RURAL NEWS // AUGUST 21, 2018

NEWS 5

Rosy outlook for lamb PAM TIPA pamelat@ruralnews.co.nz

LAMB PRICES are likely to flatten off a little, but stay pretty much towards current levels, says Beef+Lamb chief economist Andrew Burtt. “High prices, good strong markets and a bit of relief as far as the exchange rate goes…. but what will really matter is where the exchange rate is in January to June - the peak of the season next year,” he told Rural News. “That combined with what happens in markets and a whole lot of uncertainties that Brexit brings, the Trump administration brings and TPP brings will influence where things will be by then. “You can just characterise that as different uncertainties from the uncertainties we have had before. The prices will stick around high – maybe back a little bit.” B+L NZ is working through its new season outlook now. But whether current lamb prices are actually at record levels depends on how you measure them, Burtt says. In inflation-adjusted terms they are not much higher than 2010/11 – when there was a battle between the companies. And not as high as 2000/2001, when NZD was down as low as 39c to the US dollar at one point in that season. Burtt says interest rates in the US are looking like they are heading up; whereas last week’s announcement

Lamb prices are expected to stay bouyant.

THE MORE MARKETS THE BETTER CREATING A lot of opportunities in different markets has been a positive move by New Zealand – an example of which is a third of our lamb now going to China, says Burtt. “The exporters and processors have gone through a process of establishing supply chains into China. That tends to be for lower value cuts but they are a significant part of the carcass at the end of the day.” Those weren’t necessarily being sold into other markets,” he says. “That is one of things that has helped push up prices along with supply side factors such as limited volume. “Australia is back and forth with challenges there. Australia and New Zealand are the most prominent countries in exporting lamb. Their seasons vary from year to year much more than ours tend to and right now 100% of New South Wales is officially in drought in the middle of winter. That doesn’t augur well for their production.”

from our Reserve Bank was about keeping interest rates steady or flat for the next six months or so at least. He says that will drive up the value of the USD at the expense of the NZD and will have positive benefits for New Zealand exports. “Good prices look to continue maybe flattening out there are some positives from the exchange rate which could be good.” Moves by China on tariffs have made it an unattractive market for US pork producers. “Maybe that increases opportunities for New Zealand lamb and mutton, but maybe also things are slowing down in China compared to what they were. “China might put some pressure on the US, but then again the US economy is growing very strongly,” Burtt told Rural News.

“So there are strong markets, but some uncertainties as there always are.” He has not heard of any issues about getting product to market by Brexit date – which is March 29, 2019. “We just don’t know what the issues will be. The closer it gets the more critical it gets as to what arrangement is made between the UK and the rest of the EU,” he says. “And what it means as far as quota access and so on goes. “And what Brexit does to the UK economy. “Maybe uncertainty does more than any particular downward trend in terms of their economic activity or upward trend … it is just people not knowing.” In New Zealand lamb fetches higher prices in late winter as companies try to fill orders – prices over the whole season

will be more moderate. “But in general terms, we are seeing those prices staying pretty much up there. “They are at higher levels in nominal terms. “However, in real terms it is not quite as dramatic a change and that is something that farmers will be aware of - the expenditure side of things, inflation in their input costs will counter the straight out product prices for lambs or bulls or whatever.” Burtt has seen reports about $8/kg or even $8.25/kg in some parts of the country when there are fewer lambs round. He says the companies are endeavouring to spread out the shoulders of the season a bit by those sorts of incentives. “It is the getting that right balance between the genuine seasonality of pasture production and consumer customer demand for year-round supply.” @rural_news facebook.com/ruralnews

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RURAL NEWS // AUGUST 21, 2018

6 NEWS

Threat of the $5.55 lettuce! PETER BURKE peterb@ruralnews.co.nz

AUCKLANDERS FACE a $1.1 billion economic hit unless they curb their voracious appetite for building houses on topquality, horticultural land. That’s the worst-case scenario in a report by Deloitte for Horticulture New Zealand, made public at Parliament last week. It paints a gloomy picture for residents of the city of sails (sales?) as urban sprawl gobbles up the land that feeds them. The report investigates the plight of the ‘Pukekohe hub’ -- 4359ha on the far southwestern fringe of Auckland where vegetables are grown for

HortNZ chief executive Mike Chapman.

the city, other regions and for export. The region is seriously threatened by urban sprawl. The report notes that while the Pukekohe hub makes up only 3.8% of the value of all NZ land in horticultural production, it accounts for 26% of the

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total dollar value of vegetables grown in NZ. The report shows commercial growers’ have limited ability to respond to production constraints. It says any more land restrictions in the next 25 years would cause serious economic loss and 4500 jobs would be squan-

dered. Fruit and vegetable growing would drop by up to 55% and vegetable prices would rise by an estimated 58%, so that a lettuce could cost a consumer up to $5.55. Conversely, the report says, if rigid land-use rules were eased elsewhere in Auckland region to prevent the Pukekohe land being lost to housing, the region would be able to supply Auckland’s estimated population of 2.2 million by 2043. It recommends devising ways to better balance urban and rural environments, including technology to manage intensification of cropping and environmental limits.

GOOD LAND, GONE HORTICULTURE NZ chief executive Mike Chapman says urbanisation poses an enormous threat to this hugely important commercial growing region. “We don’t want the earth, we just want our share of it,” he says. Chapman says the report was commissioned to provide hard data to help shape the national policy statement (NPS) on versatile land and high class soils. Minister for the Environment David Parker is in full support; he said earlier this year that he is particularly troubled at the extent of urban growth on irreplaceable highly productive land. Parker is promising to curb the loss of Pukekohe’s prime growing land at Pukekohe as Auckland expands. Chapman applauds the support of Parker and Agriculture Minister Damien O’Connor who recently visited Pukekohe. He says the report data will enable HortNZ to help shape the NPS and make submissions to the Auckland Council on the Pukekohe issues. “This report is a proxy for the rest of the country, so we can roll this out right across NZ because the NPS will apply across the country,” Chapman told Rural News. “Anywhere in NZ you will find this problem. I was in Carterton, Wairarapa,

recently and they also have the problems of losing great land to houses. There needs to be a balance struck and the NPS will set that balance.” Chapman criticises local councils who ‘don’t get’ the seriousness of the problem. HortNZ is working on educating councils to ensure their plans provide for fruit and vegetable growing. Chapman says urban sprawl causes growth in roading and other infrastructure which also consume large tracts of high quality land. And as Auckland spreads out infrastructure costs rise. Also consuming large areas of highquality land are lifestyle blocks. “These have grown by 10% in the last few years and they really restrict commercial growing,” Chapman explains. “Lifestyle blocks should not be anywhere near highly productive land because you have reverse sensitivity – the problems of people coming from towns thinking the country is quiet and tranquil. In reality, the rural area is a factory where people need to harvest at different times and to be able to fertilise and till their fields.” Chapman says growers NZ-wide back the report and its recommendations as Pukekohe-type problems also occur in other regions.

RURAL NEWS // AUGUST 21, 2018

NEWS 7

Growers want the right to farm ONE PUKEKOHE grower solidly behind the report is Kiran Hari of R.C. Hari. His grandfather began cropping in the region in 1932 and today this significant family business grows potatoes, carrots, beetroot and other crops, mostly for the local market -- Auckland and other North Island places. In winter they also supply markets in the South Island. “This report presses all the right buttons for growers,” he told Rural News. “We value the land we grow on, but once it’s taken for housing it is lost forever. “People must be measured in their approach to housing and other things such as access to water and a reasonable approach to nutrient management. Essentially we simply want the things that give us the right to farm.” Hari says their business is at risk because it is right on the edge of the town. They have to deal with the

Kiran Hari

‘reverse sensitivities’ of town folk who don’t understand how food is produced. “There is not a widespread understanding of the issues that I and other commercial growers face,” he explains. “I hope the information in the Deloitte report will help get the message out to officials and the public.” – Peter Burke

Will she return? SUDESH KISSUN sudeshk@ruralnews.co.nz

FORMER FONTERRA director Leonie Guiney says she is keeping her options open about contesting this year’s board elections. Guiney has been buoyed by support from farmers during her recent legal battle with the Fonterra board; the co-op took a court injunction that gagged media outlets from publishing ‘confidential information’ said to have been obtained from Guiney. However last week, the board wrote to shareholders saying the legal proceedings had been settled. “Fonterra and Leonie Guiney have agreed to settle the legal proceedings between them. Fonterra has agreed to meet Ms Guiney’s costs,” it said. Guiney says she is delighted with the outcome. “Common sense has eventually prevailed. I look forward to more timely and transparent action on issues that impact farmer owners’ investment in Fonterra, our cooperative and therefore New Zealand,”

Guiney, who served as director she says. “Credit and thanks to all the from 2014 to 2017, has criticised the shareholders who supported me. All director election process. “Unfortunately funds donated will now the way the system be donated to Farmworks no one knows strong.” whether if you stand Guiney says as you are standing soon as the settleagainst incumbents ment occurs the solicior not, or if there are tors will file a notice of strong alternatives or discontinuance after not , until very late in which the injunction the process,” she told will be lifted. Rural News. Fonterra is no “My goal is a longer pursuing any better Fonterra; ‘confidentiality issues’, secret squirrel elecrequired to keep an Leonie Guiney is keeping her options open. tion systems are odd injunction in place. The Fonterra board has softened for a cooperative or for any elective its stance against Guiney since John process, making it hard to determine Wilson said he will quit as chairman who might be available for election to contribute to a better Fonterra. in November. “I’m encouraged by the recent Wilson was one of the three board directors up for retirement by rota- outpouring of support [I would get] tion; the two others, Ashley Waugh from farmers if I chose to contest the and Nicola Shadbolt, haven’t yet election.” Guiney and her husband Kieran declared themselves available for re-election. Wilson’s departure will own a dairy farm in Fairlie, South Canterbury. create one vacancy on the board.

13/08/18 1:11 PM

RURAL NEWS // AUGUST 21, 2018

8 NEWS

Fruit growers take MPI to court PAM TIPA pamelat@ruralnews.co.nz

THE MINISTRY for Primary Industries’ directive to contain or destroy tens of thousands of apple and stonefruit plants is

‘draconian’ and lacking common sense, say two US high-level industry players. MPI has ordered up to 48,000 apple and stonefruit trees to be destroyed or contained after con-

Notice of Election - DairyNZ Board of Directors - DairyNZ Directors Remuneration Committee Invitation for 2018 candidate nominations – two positions available In October, two elections will take place for DairyNZ Incorporated – one election for one farmer-elected director for the Board of DairyNZ Incorporated and a second election for one member of the Directors Remuneration Committee. Registered levy-paying dairy farmers are invited to nominate candidates to fill these two positions. All farmers paying a levy on milksolids to DairyNZ are eligible to stand for either election. An information pack outlining desired criteria and nomination requirements for the positions can be obtained from the Returning Officer. Nominations must be received by the Returning Officer by 12noon on Friday, 14 September 2018.

Elections If more candidates than the required nominations are received, elections will be carried out by postal and internet voting using the STV (single transferable vote) voting method. Votes will be weighted by annual milksolids production. Voter packs will be posted on 1 October 2018 to all registered DairyNZ levy payers, with voting closing at 12noon on Tuesday, 30 October 2018. The DairyNZ Annual General Meeting will be held in Invercargill on Wednesday, 31 October 2018. Election results will be announced at the meeting. For further details contact the Returning Officer as below. Anthony Morton Returning Officer – DairyNZ Incorporated 0800 666 043 iro@electionz.com

Rural News & Dairy News 18x2

cerns about the importation of material from the CPCNW (Clean Plan Centre Norwest) facility in the US. Five New Zealand industry members were heading to court for a judicial review of the decision as Rural News went to press. The orchardists taking the legal action claimed MPI’s action was based mainly on missing paperwork from the US facility and that MPI had been tardy in its own audits of the facility. Bill Howell, a US plant virologist and former manager of CPCNW for more than 20 years, says given the situation MPI’s reaction action “appears to be significantly beyond reasonable measures”. Howell says he cannot determine where the fault lies “however, the draconian reaction of MPI seems heavy-handed and inappropriate”. He has seen responses in the US to actual fruit tree disease outbreaks and occasionally for smuggled material, but not due to missing records. “There is always risk when importing biological material. However, despite apparent paperwork missteps, CPCNW is still the safest route through which to import pome (apples, pears, nashi and quince) and stone fruit varieties. “All items are exten-

Lynell Brandt

Bill Howell

sively assayed for virus and virus-like diseases in the programme before material is released or exported. Further, most of the virus diseases are assayed using two or more testing protocols.” Destruction of new and promising varieties will set the industry back as it works to maintain competitive advantage in the global fruit market, he says. “Despite the apparent lapse in some CPCNW test records, it remains the premier facility to source new virus-tested cultivars of pome and stone fruit. Risk is minimised by obtaining propagation material from this programme, which tests for all know virus and virus-like pathogens of these crops.”

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He says many viruses of pome and stone fruit trees are universally found and they produce little disease. But others, of limited geographic distribution, have significant economic effects. Rapid tests for these exotic viruses are available. “Has MPI considered testing to confirm the virus status as indicated by CPCNW?” he asks. Lynnell Brandt, who a owns a number of US nursery companies and heads the Associated International Group of Nurseries, says when contemplating action some credence must be given to the actual risk exposure to the industry. “The entire rationale for having a quarantine protocol must be related

to the actual risk and how it is mitigated. If the risk of exposure is nonexistent or minimal, this needs to have an impact on any contemplated actions,” he says. Brandt is not aware of any similar actions by other countries related to the CPCNW facility. “This institute has been active for many decades and has assisted the greater industry in the US and elsewhere significantly.” Brandt says to eliminate all risk you could stop all importation of any plants. This would deny the industry access to other new products invented outside NZ. If there were no entry path, individuals would then resort to smuggling with no management of plant health. “The other extreme is to have no protocols for entry into the country and everything is allowed in. This would of course put the industry at risk from an exotic decease that could decimate the industry. The answer is somewhere in between,

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where there is screening in a realistic way that provides protection but also allows the industry to be competitive in the global market.” For plants here for several years, symptoms would now be seen on either foliage or fruit. Most common viruses of these trees are already spread worldwide and have existed in NZ for years. He says any approach needs to be based on common sense given the track record of where the material is coming from. “CPCNW’s history of working the NZ industry has existed since at the least the 1980s when CPCNW developed most of the protocols for detecting viruses and virus like entities. “CPCNW is still one of the leading programmes in the world and is actively working to improve methodology to provide clean material. CPCNW supplies much of the material for many countries.” @rural_news facebook.com/ruralnews

RURAL NEWS // AUGUST 21, 2018

NEWS 9

PGW’s profit up, earnings down NIGEL MALTHUS

RURAL SERVICES company PGG Wrightson (PGW) has announced an increase in earnings but a drop in net profit in the year to the end of June. Operating earnings before interest, tax, depreciation and amortisation (EBITDA) was $70.2 million (up 9% from $64.5m last year) and net profit after tax (NPAT) was $18.9m (down from $46.3m). The company declared a fully imputed dividend of 1.25c/share, to be paid on October 3, bringing the total for the year to 3 cents per share. PGW deputy chairman Trevor Burt said the company had warned net profit would be down because the 2017 NPAT had benefited from the

sale of property, while this year’s had been affected by one-off nontrading items, e.g. historical liabilities under the Holidays Act. However, Burt pointed to a significant increase in operating EBITDA, and to a match of 2016’s record result. “In October 2017 we targeted a range of $65 to $70m and we exceeded the top end of that,” he says. “[The dividend balances] the one-off nature of these items affecting NPAT and the strong underlying trading performance against the reinvestment opportunities available to the business. “We felt it prudent to reduce the final dividend this year.” Chief executive Ian

Glasson called it an excellent trading result which PGW could be proud of. “Almost all our New Zealand businesses were up on last year, with most achieving double-digit earnings growth, despite our seed and grain Australian and South American businesses facing challenging climatic con-

ditions. “However, NZ agriculture was strong in FY2018 and our trading result reflects our broad exposure to NZ agriculture and our passion and commitment to the sector.” Glasson noted that the agency group -- rural livestock, export live-

stock, wool, insurance, real estate and finance -delivered a record result, with operating EBITDA up 12%. The livestock division repeated 2017’s performance with the effects of higher sheep prices offsetting fewer dairy transactions. “Wool achieved excel-

lent results with volumes returning to more normal levels on a lift in underlying wool prices. “The retail and water group also achieved a record result with operating EBITDA up by $5.5 million or 30%.” Meanwhile, the seed and grain group, being sold to the Danish seed

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Yummy Fruit company’s Paul Paynter.

APPLE GROWER’S FEARS FOR THE FUTURE

THE APPLE and stonefruit growers involved in the judicial review say there are significant questions over the basis of the MPI directive to contain and/or destroy plant material. Paul Paynter from The Yummy Fruit Company (part of Johnny Appleseed Holdings Ltd) says, “We now know that MPI failed to conduct the required annual compliance audits on the CPCNW facility between 2010 and 2018. “MPI has a duty to conduct these annual desktop audits, as well as five-yearly facility audits, as part of its biosecurity responsibilities. The five-yearly audit was due to be conducted in mid-2015 and was not undertaken until March 2018, and even then it was not properly completed. “MPI has let us all down. The orchardists and nurserymen are not at fault here. “We have growers across the country pulling out innovative new varieties of apples, apricots, peaches, plums, nectarines, and cherries and incinerating them because MPI has not done its job properly.” Some of the plants have been in NZ for up to six years. They have been tested thoroughly and released from post entry quarantine by MPI. There is no evidence of pest or disease and no sign that these plants pose a biosecurity risk. “If we believed there to be a risk of pest or disease, we would not be taking this legal action. We are all committed to maintaining the biosecurity of this industry; it is our livelihood and our future.”

giant DLF Seeds, was down 4% to $35.6m. Glasson says the NZ business was the standout performer for seed and grain during FY2018, with strong sales volumes not quite enough to offset the impact of extremely dry conditions in South American and Australian markets.

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RURAL NEWS // AUGUST 21, 2018

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10 NEWS

Sheep flock stabilising NZ’s sheep flock now seems to be stabilising according to latest figures.

PAM TIPA pamelat@ruralnews.co.nz

NEW ZEALAND’S sheep flock now seems to be stabilising, says Beef+Lamb NZ chief economist Andrew Burtt. But while it is too early in the season to give predictions on this year’s lamb crop, scanning results reported back have been pretty mixed, he says. This follows last year’s record lambing percentage year of 127.2% - up 4.4 percentage points on the year before. A scanning survey was carried out six or seven weeks ago and survey farms were marginally disappointed with the results, says Burtt. But expectations may have been pushed up in light of the good autumn and winter season, he told Rural News. “Remembering last year’s lambing season was a record because of whole lot of things came together,” he says. “We are predicting it will be back a bit, but we won’t know until we do our own lamb crop survey in early November. “With a record lambing season last spring it is hard to expect that will be the case again.” Burtt says it is unclear why scanning has not been as positive as hoped. “It could be lingering effects of facial eczema in the North Island - that Taupo, King Country area where it was a couple of years ago.”

“Remembering last year’s lambing season was a record because of whole lot of things came together.” North Canterbury is clearly recovering from drought. A lot of farmers have taken the opportunity to create a younger ewe flock by taking good prices for ewes and bringing in younger animals. “So that is showing confidence in the industry and it opportunities. You can still get some pretty good results from ewe hogget lambing, but it’s still a small percentage compared to the total number of lambs born.”

Burtt says BLNZ thinks the overall flock numbers are now stabilising. This follows ongoing declines until last year. “To some degree this is the picture about this steady, genetic improvement, farm management and pasture improvement and productivity improvements with improving lambing percentages. At times they pop up to record levels. But even in general we are get-

ting 20-plus more lambs per 100 ewes than we did 25 years ago. So we can manage with as many ewes,” he explains. “A lot of that has been generated off hill country too with dairy expanding onto the better land. “So the absolute number of sheep flock is expected to stabilise, but that needs to be qualified by and remembering the productivity improvements that have happened over time and consciously by farmers in response to the signals they have received.” Last year, New Zealand farmed 27.37 million sheep. The historic high was in 1982 when there were 70 million sheep.

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RURAL NEWS // AUGUST 21, 2018

NEWS 11

Farmlands offers director support NIGEL MALTHUS

IT IS getting harder to find good people willing and able to step into governance roles in rural co-operatives, says Farmlands Co-operative chairman Lachie Johnstone. He says 40 years ago the many different co-ops and rural businesses made for a much bigger training ground. But consolidation over time via takeovers and mergers have resulted in fewer but larger and more complex co-ops. Johnstone says Farmlands has begun supporting development of leadership in the co-op sector, including joining meat processing co-op Silver Fern Farms earlier this year to run two days of governance training for 24 people. “The feedback from the participants has been very positive,” he told Rural News. Farmlands also took on two board observers who were mentored by experienced directors. The observers attend board meetings and activities and have full speaking but not voting rights. Farmlands also sup-

ported the annual Kellogg and Nuffield leadership programmes. Johnstone’s comments come as Farmlands calls for shareholders to seek election to its board. Nominations close on September 13. This year’s election will be for three directors -- two from the South Island and one from the North. Of the three nearing the end of their three-year terms, two are standing down while Clutha District farmer (and Silver Ferns Farms chairman) Rob Hewett will seek re-election. “We’re keen to get good people around the table. The organisation is significant; it’s important for the sector. It needs to be well-governed and we’re trying to encourage people to put their hands up,” said Johnstone. “There are lots of quality people out there. We’re keen to make sure people are aware of the opportunity and put their hands up if they think it’s the right thing for them.” Farmlands is among New Zealand’s top 20 businesses by turnover, with revenues over $2 billion, and is owned by

68,000 shareholders NZwide. Johnstone said Farmlands last year achieved a $14 million swing in its fortunes, posting a $5.4m profit versus a $9 million

Farmlands chairman Lachie Johnstone. SUPPLIED/FARMLANDS

loss the year before. “We haven’t finalised our results for this year although we have had balance date. We’re pretty confident we will build on the result from last year.”

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FARMING’S CHALLENGE A CLIMATE change scientist at Victoria University, Professor James Renwick, suspects the world’s total area of land available for agriculture will decrease because of climate change. But even if the land area does not decrease, it will be very expensive to move certain types of farming and growing to new areas more suitable for production, he says. Renwick’s comments stand out against a background of drought in Northern Europe, the US and Australia. Europe’s drought is caused by the ‘Atlantic oscillation’ producing a flip-flop of highs and lows. Renwick says the situation is different in the southern hemisphere, but he notes that broadly speaking as things warm up droughts are more likely. And as conditions become more settled things tend to stick around longer. “The projections for New Zealand are an assumption of a 2 degree Celcius increase in warming for places that are drought-prone such as Canterbury and Hawkes Bay. “The climate is changing and land-based industries are going to have to change with it,” Renwick says. – Peter Burke

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RURAL NEWS // AUGUST 21, 2018

12 NEWS

Glyphosate case not clear-cut ADAM FRICKER

NEW ZEALAND should not make regulatory decisions on glyphosate use based on a United States court case, say NZ scientists. The comments follow a recent decision by a jury in the US ordering Monsanto to pay US$289 million (NZ$440m) to terminally ill former groundsman Dewayne Johnson, who alleges Roundup caused his cancer. Monsanto denies the claim and will appeal the ruling. In reaction to the jury decision, Associate Environment Minister Eugenie Sage will be asking the Environmental Protection Authority to consider adding Roundup to a list of hazardous chemicals, a move likely to appeal to her Green Party base. Federated Farmers says most scientific research reports found glyphosate was safe to use and warned against banning it, saying the alternatives could be worse. Associate Professor Brian Cox, cancer epidemiologist at the University of Otago, also recommends caution: “A sudden reaction to one case in one US law court, that has not yet gone to the appeal court, is not an appropriate method for developing health policy in NZ.” He says NZ should “keep watch on the overseas evidence about the risk of cancer from glyphosate exposure and assess and bal-

Associate Environment Minister Eugenie Sage.

ance the evidence of that risk and the views of users, the public and NZ industry”. Ian C Shaw FRSC, FRCPath, professor of toxicology, University of Canterbury, says “I do not think we should base our regulatory decisions on a US court case”. However, he believes the evidence that glyphosate is “possibly a carcinogen in humans is robust”. The evidence Shaw refers to, and what the US court decision leaned heavily on, is a 2015 report by an agency of the United Nations – the World Health Organisation’s (WHO) International Agency for Research on Cancer (IARC) which classified glyphosate (the active component of Roundup) as carcinogen 2b – “possibly carcinogenic to humans”. This 2015 report prompted

some countries to review their use of glyphosate and unleashed a wave of legal cases against Monsanto, however, it stood alone among other comprehensive reviews of the scientific evidence about glyphosate’s possible risk. In direct contrast, in 2017 a large long-term study on the use of glyphosate by agricultural workers in the US found no firm link between exposure to the pesticide and cancer. Published in the Journal of the National Cancer Institute, the study found “no association between glyphosate and any solid tumours or lymphoid malignancies overall, including non-Hogkin Lymphoma (NHL) and its sub-types”. In October 2017, an investigation by the news agency Reuters cast a shadow over the IARC report. Reuters revealed that

NZ RISKS MISSING OUT

the IARC had “dismissed and edited findings from a draft of its review… that were at odds with its final conclusion that the chemical probably causes cancer”. That is, the IARC removed all “non-carcinogenic findings” from its report before it was published. At the time, the IARC did not respond to Reuters, but later attacked the news agency and other media, claiming its work was being misrepresented by “the agro-chemical industry and associated media outlets”. Dr Belinda Cridge, programme leader and lecturer in toxicology at the University of Otago, says the IARC report is being “debated widely”, partly because it “assesses a chemical’s carcinogenic potential but does not generally conduct a full risk assessment, judging where and how contact with the chemical may occur”. “The terms of the [Johnson] case are interesting as the plaintiff did not need to demonstrate conclusively that glyphosate caused the cancer, only that it was a plausible contributing factor,” says Cridge. “Also, Monsanto is unable to prove that glyphosate definitely did not cause the cancer. “There is still no proof either way, but the success of the prosecution will encourage others to seek remuneration using the IARC classification as evidence.”

NEW ZEALAND’S animal health industry is moving ahead quickly, but risks being left behind because it can’t embrace new scientific discoveries. AGCARM president Pauline Calvert told Rural News there is a risk NZ will be left behind the rest of the world by not having the opportunities to have fewer heavy chemicals going into our crops and animals. She believes we could use things that could be seen as lighter and less of a threat to our environment if our regulatory authorities would allow new science to come to NZ or at least discuss this. Calvert says part of the problem is that NZ doesn’t have the ability or the regulatory systems to evaluate some of these new products. Even our classification of GMOs is in many ways behind other countries’, she claims. “Their definitions are actually quite different from ours. I am not advocating that we bring everything in without any risk assessment. But I am asking that we bring the science to the table and let people understand what that science brings,” she says. Calvert says Mycoplasma bovis is a classic example. “What happens if the answer to that is a GMO vaccine?” she asks. “I don’t know if it is or isn’t. But if it is, are we prepared to bring it into our country? Because at the moment, the education on new science is often poorly understood and people see it as a threatening rather than positive,” she says. Calvert reckons while NZ is good at evaluating science, it is sometimes slow to move with new science or is driven by a poor understanding of it out of fear of the unknown. “I think sometimes the people who make the decisions are scared of what the outcomes [would be] if they put their hands up and said, ‘this is [or isn’t] a good thing’. A lot seems to be based on perception,” she says. Calvert believes there is a suspicion of science and people need to understand the opportunities and benefits science can bring. “I have no doubt there are products NZ could benefit from that aren’t currently in our system, she told Rural News. – Peter Burke

B

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RURAL NEWS // AUGUST 21, 2018

NEWS 13

Seeds of change for PGW NIGEL MALTHUS

NEW ZEALAND farmers will see no immediate difference onfarm from the sale of PGG Wrightson’s Seeds business, the company claims. PGW said earlier this month it had agreed to sell its seeds business to Danish company DLF, pending shareholder and regulatory approvals. This ended weeks of speculation, in which Australia’s Elders or Holland’s Barenbrug were tipped as possible buyers. The agreement is for PGW to sell 100% of PGW Seeds for NZ$421 million. DLF Seeds will also assume or repay PGW Seeds’ net debt outstanding at June 30, 2018 of about NZ$18m. PGW chief executive Ian Glasson says a close working relationship will

exist between PGW and PGW Seeds under its new ownership. He says PGW is a critical retail outlet for PGW Seeds, and similarly it needs seeds to offer farmers. “It’s a good synergistic and strategic relationship that we’ve spent a lot of time locking in,” Glasson told Rural News. He says the PGW Seeds brand will be licensed to DLF so the company will operate as before, even down to its reps still wearing familiar PGW blue pullovers. “You will see PGW seeds people in the paddocks alongside PGW livestock reps or real estate reps or whatever.” And they will keep the Wrightson name “for some time”. “On the farm, nothing changes as far as the farmer is PGW chief executive Ian Glasson.

KEY POINTS • DLF Seeds will purchase 100% of the shares of PGG Wrightson Seeds Holdings Limited, acquiring substantially all the assets and operations of the PGW Seed and Grain business in New Zealand, Australia, South America and internationally. • The agreement is conditional on: • PGW shareholder approval. • New Zealand Overseas Investment Office approval. • New Zealand Commerce Commission clearance, Australian Competition and Consumer Commission approval, and applicable regulatory approvals in South America. • Change of control consents from certain PGW Seeds’ joint venture partners. • PGW banking syndicate consent. • PGW and PGW Seeds will enter into a long-term distribution agreement for seed and grain. • PGW will grant a brand licence to PGW Seeds for the continued use of the PGG Wrightson Seeds brand. • PGW will continue to provide a range of corporate functions and back office services to PGW Seeds for a transitional period of between 12 and 18 months. • DLF Seeds is a Denmark-based global seeds group established in 1872 and owned by a cooperative of about 3,000 Danish seed growers. • DLF Seeds has 1,200 employees, operates within forage and turf seed, sugar and fodder beet seed, seed potatoes and multiplication of vegetable seed, and is active in 80 countries.

concerned, other than the seed business being now owned by a group of seed growers in Denmark.” Glasson believes it’s important that DSL is a co-operative of seed growers who “really get” the seeds business. It plans to increase the offering of seed varieties. “Farmers will not see any change in the field. We can improve and give a broader offering of seeds and, hopefully, with a seeds company increase the rate of development of new offerings.” Glasson says the seeds business sale arose from a strategic review announced last year before he arrived at the company in November. Now the board has the option to pay about $290m back to shareholders in an “essentially tax-free capital return”. “Then the question is, do you use the rest to pay down debt or grow

the business or whatever? That’s something the board is still working through.” Glasson says DLF’s was a compelling offer that will be good for all stakeholders. “Clearly it’s a substantial amount of cash and it’s a good price for the business.” PGW will be left with a large rural services business with sales of $800m out of the current $1.2 billion total. The largely Chinese-owned Agria Asia holds a 50.2% shareholding in PGW. But Ngai Tahu owns 8% of Agria Asia so the majority shareholding is indirectly in New Zealand. “It’s a diverse register of corporate and mum-and-dad investors including a lot of dispersed rural shareholders,” Glasson says. The proposal will probably be put to shareholders at the annual meeting in October.

PGW’s deputy chairman, Trevor Burt, says the seeds business sale will be valuable for PGW, while enabling the PGW Seeds business to benefit from being part of an impressive global seeds operation. “PGW received expressions of interest from a number of parties internationally wanting to pursue a transaction involving the seed and grain business.” Burt says. DLF chief executive Truels Damsgaard said DLF had long viewed PGW Seeds as a complementary business to DLF Seeds’ operations. “We see PGW Seeds as the leading temperate forage seed player in the southern hemisphere, with DLF Seeds occupying a similar position in the northern hemisphere. The transaction presents an opportunity for value creation as a combined business with a strong global offering for our customers,” he said.

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RURAL NEWS // AUGUST 21, 2018

14 NEWS

Sniffing out problems and more NIGEL MALTHUS

A CANTERBURY researcher using dogs trained to track down the pasture pest Chilean needle grass is hoping to consolidate and expand the project after a successful proof-of-concept season. Fiona Thomson and her dog Tahi have been joined by dog trainer Geoff Bowers and Nala, and they have shown how the animals can reliably pinpoint plants in the wild. “This was a proof of concept. This summer we will be out there solidifying the concept and training trainers,” Thomson told Rural News. This project is independent of her work as a research associate with Landcare Research. Tahi, a border collie-

cross, was adopted from the SPCA. “She’s a working dog so I wanted her to work,” Thomson explained. Having heard of dogs being used for similar work overseas, Thomson floated the idea of Chilean needle grass detection with Bowers, who she’d taken Tahi to for general obedience training. Bowers, a Brit with 25 years experience in dog handling in the British and New Zealand police, was so sold on the idea that he brought his own dog Nala into the project. It also came at the right time for ECan, which is helping fund them. The dogs have spent seven days in the field so far, for the Marlborough regional council and ECan. Chilean needle grass

Fiona Thomson with Tahi and Geoff Bowers with Nala during a Chilean needle grass detection training session near Christchurch. RURAL NEWS

is a pasture pest that spreads by needle-sharp barbed seeds which work into the fleece and flesh of stock, causing suffering and reducing meat, pelt and wool value. The seeds are not easily windborne, but spread by attaching to anything that brushes past them including machinery, vehicles,

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stock, hay and footwear or clothing. The main infestation areas are in Hawkes Bay and Marlborough and it was discovered in North Canterbury about 2008. Thomson says Chilean needle grass is very diffi-

cult for humans to identify before the seed head appears, at which point it is already in seed. Chilean needle grass carries a second seed pod hidden in the stem. Thomson says the dogs work best when only

a few individual plants are there to find in an area. “This is really exciting where you’ve got a new incursion of a weed species, or if you’ve done control and you want to mop up the last few individuals, or if you’ve got a centre population that’s spreading out,” she adds. “That’s where it’s hard for people to see them, and it takes a long time to find them.” Last season, the dogs identified one plant at a Canterbury property that was only confirmed as Chilean needle grass after it was dug up and sent for analysis. “So what we’re hoping now this season is to get out there and expand and actually survey properties

properly and find some plants.” The dogs have also been trained for velvetleaf, demonstrating the ability to locate a small sample leaf from 30m away, then scanning a 5ha fodder beet field to show it was clean, in only 90 minutes. Bowers says recent research shows dogs can detect as little as one part per trillion and differentiate between three million different smells. “We know they can find viruses,” he says. The dogs could be trained to scan a herd of cattle for Mycoplasma bovis. “I have to see if I can access a funding grant for it,” Thomson adds. “I don’t see why it couldn’t be done.”

POST-BREXIT RISK FOR UK FARMS ADAM FRICKER

ANALYSTS FEAR that up to 25% of Britain’s farms will be at risk of bankruptcy if farm subsidies aren’t guaranteed by the government post-Brexit. At present, Britain’s agriculture policy follows the EU’s Common Agricultural Policy (CAP), which provides subsidies for farmers. About 50 - 60% of farm income in the UK comes from EU subsidies, but Prime Minister Theresa May’s Government has only guaranteed the extension of current funding levels to farmers until the end of this parliament. Phoebe Sleet, research analyst for the research institute Future Directions International, says this

has “raised concerns that up to a quarter of farms in the UK could go into bankruptcy as the transition to a new agricultural policy begins, especially those already struggling”. “While solutions to the UK’s farming policy after Brexit are, finally, being drafted, the lack of preparation indicates a worrying lack of care by Westminster to secure British food security at a time of major risk.” With Brexit negotiations dragging on, fears have mounted that no formal agreement will be reached, which could lead to a chaotic exit from the EU. Dominic Raab, the Secretary of State for Exiting the EU, recently said the Government has been

looking at what action would be necessary to ensure Britain’s food security if no agreement can be reached. Sleet says a no-deal Brexit situation would be especially perilous for the food security of Britain, which is no longer food self-sufficient and must import about 30% of its food from the EU. “Those EU imports are not easily replaced, either by importing from other sources or through increased self-sufficiency. Few alternative sources of food imports have been identified.” This could lead to increased food prices, adding pressure to the one in five households already on the cusp of food insecurity in the UK, says Sleet.

RURAL NEWS // AUGUST 21, 2018

NEWS 15

Benefits to all from seed sale NIGEL MALTHUS

NEW ZEALAND will still benefit from its intellectual property (IP) in locally developed seed lines when the PGW Seed and Grain business is sold to Danish global seeds giant DLF. PGW chief executive Ian Glasson told journalists, after the results announcement, that there was “misleading information in the market” about potential loss of IP in the sale. “It is important that I correct this,” he said. Glasson says PGW’s intellectual property in seeds was invested in three joint ventures with the Crown: Grasslands Innovations, Endophyte Innovations, and Forage Innovations. “A great example of how the IP will remain in NZ is as follows: take one of our products, known as

Raphno, released into the market in 2018.” “It’s a brassica developed in NZ, now sold in Australia, and has sales which attract royalties which return to NZ, to PGW Seeds and our joint venture Forage Innovations, including the NZ Crown,” Glasson explained. “After DLF Seeds takes ownership, more of this highly valued NZ intellectual property will be available to the northern hemisphere and will therefore increase the net benefit to NZ.” A week before announcing its annual results, PGW had revealed the conditional agreement to sell the PGW Seed and Grain business to DLF Seeds for NZ$421 million. Glasson emphasised that PGW’s rural services team and the seeds team

Tighter rules to stop stink bug NEW TREATMENT and cleaning rules for imported vehicles and machinery will make it harder for brown marmorated stink bug to make it into New Zealand, the Ministry for Primary Industries says. From September 1, the beginning of the stink bug season, MPI will impose new rules because imported vehicles and machinery pose a high biosecurity risk: stink bugs hibernate in nooks and crannies during the northern hemisphere winter. “We want to do everything we can to stop brown marmorated stink bug from invading NZ, given the damage it could cause to our horticulture industry” says MPI’s Paul Hallett. He says the new import standard is particularly focused on Japan, following biosecurity issues earlier this year with contaminated vehicle carriers arriving from there at NZ ports. And the new restrictions will also apply to many European countries where the spread of stink bug appears to be increasing. The new rules requires offshore treatment of non-containerised vehicles and machinery from affected countries. In the case of Japan it also covers new vehicles where in the past it only covered used items. This is because new vehicles are easily contaminated while awaiting shipment. Used imports from Japan will need to be treated and cleaned there too. The approved treatment options are fumigation with methyl bromide or sulfuryl fluoride and heat treatment. Most imports are expected to be heat treated; it’s readily available and Japan has restrictions on some fumigants. Under the new standard, gear from 14 more countries must be treated during the stink bug season from September 1 to April 30. This previously only applied to vehicles from the US and Italy.

would continue to work together closely. He says PGW Seeds (under DLF Seeds ownership) would make a long-term distribution agreement with PGW and would also continue to trade under the PGG Wrightson Seeds brand. Meanwhile, said

Glasson, remember PGW has the strongest nationwide rural services offering in NZ, covering the country, and the sale of the PGW’s seed business will not change that. “After the DLF Seeds transaction, PGW will have a strong rural ser-

vices business with revenue exceeding $800m and good profitability (FY2018 operating EBITDA of about $35m).” The sale is conditional on regulatory and shareholder approvals. “We intend to provide more information on our progress, including an

earnings forecast, at the time of the annual meeting in October,” Glasson says. In the meantime, he says it is “very much business as usual”. “We are working to ensure minimal disruption for our customers and staff,” Glasson said. “Our people are the

key to our continued robust performance; their commitment and passion for agriculture ensures we continue to perform strongly in all market conditions. I am proud to say that the levels of morale and staff engagement at PGW remain high.”

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RURAL NEWS // AUGUST 21, 2018

16 NEWS

Drought crisis for Irish farmers PETER BURKE peterb@ruralnews.co.nz

Irish Farmers Association president Joe Healy.

FARMERS IN Northern Europe – especially the UK and Ireland – are facing a crisis as drought forces them to sell stock

early while they struggle to adequately feed animals remaining. Irish and English farmers are running out of supplementary feed as the heat wave that swept Europe has triggered crop

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failures and knocked pasture growth. The National Farmers Union (NFU), representing farmers in England and Wales, says everything from livestock to lettuces have been affected. NFU president Minette Batters says the situation is hugely challenging for all. NFU’s dairy chairman, Michael Oakes, says following an incredibly wet start to spring the weather went to the opposite extreme with a huge dry in July. “I am now feeding full winter rations to my cows and am extremely concerned about the availability of fodder if we don’t get rainfall soon and the impact this will have on already depleted stocks for winter 2019,” he says. Irish dairy farmers are facing a 50% cut in their incomes – down from 80,000 euros last year to just 40,000 this year. Milk production is predicted to be down by as much as 20%. The Irish Farmers Association president, Joe Healy, told Rural News Irish dairy farmers are in crisis: the drought has followed storms a year earlier and the two have collided to cause the crisis. Healy, a dairy farmer at Athenry, near Galway in the west of Ireland, says during the storms last year the farmers had to feed out their reserves of silage. “We were hoping to replenish these stocks during the good summer so we got our first good cut late in May. But with only about 4mm of rain, farmers had zero growth and fed out their first cut of silage and grazed their

second cut. “So in the south east, at this stage, they only have about 40% of their fodder requirements for the winter.” Also, the weather has caused tillage crops to nearly fail and the yields on grain and straw are a mere 30%, which Healy says is serious. The feed supplement shortage in Ireland is compounded by English farmers’ similar plight. Normally Ireland looks to England for such feed, but now that cupboard is also near empty, so Ireland is about 10 million bales short of silage. The Irish government has given an incentive to tillage farmers to plant some sort of cash crop in the 10-12 week window between harvesting their main crop and planting their next one. Healy says this could yield up to one million bales, but a big deficit would remain. Irish dairy farmers, like beef farmers, have been culling stock early, but the resultant drop in prices has added to their woes. The bad weather comes at a bad time for Irish dairy farmers. With milk quotas abolished in 2015 farmers saw opportunity to increase their herd numbers, and many beef farmers converted to dairying. Some farmers went from 80 to 150 cows and are now struggling. “We are back to full employment so they are finding it difficult to get labour,” he told Rural News. “With the late spring many dairy farmers ran out of fodder and some have run out of grass and they have had a bad 12 months between the rain, the drought and labour.”

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RURAL NEWS // AUGUST 21, 2018

18 NEWS

NZ farmers can improve GHG profiles PAM TIPA pamelat@ruralnews.co.nz

SINCE 1990 New Zealand’s greenhouse gas emissions from agriculture have increased about 20% with industry growth -- particularly dairy, says Professor Mark Howden, director of the Climate Change Institute at the

Australian National University. But as a percentage of the total emissions, agriculture has shrunk. And greenhouse gases emissions (GHG) per unit of food have reduced in NZ by about 30% since 1990, Howden told the NZ Institute of Primary Industry Management

(NZIPIM) conference in Hamilton recently. “That is simply because you are becoming much smarter, much more efficient and more effective in how you use your resources -increased per animal activity, improved animal husbandry, etc,’’ he says. But there are signs of

Professor Mark Howden

increasing room to move to become smarter and better. Most of the developed world would show a similar drop in greenhouse gases per unit of production, he says. ‘’Particularly in Australia and New Zealand where there is not much government subsidy we

are forced to be market responsive; we are tight in our management and inputs versus profits, so we tend to be careful and efficient with our inputs,’’ he says. “We tend to squeeze down on GHG per unit of production. But the US and Netherlands, where they are highly supported by the government, have also become more efficient per unit because they have cows producing 8000L/day where they used to produce 4000L/ day. As they push their system they end up being that much more efficient.’’ The good news story is if you look at greenhouse gases per unit of production, already NZ agriculture is becoming much more efficient. In terms of emissions as a proportion of total emissions in NZ, even though agricultural emissions have grown, the rest of the economy has grown faster. So the proportion of agriculture emissions has shrunk. But this does not take into account land use changes in forestry; that is a big negative, he says. If you include land use change, agriculture jumps to 70-80% of the national emissions. In 1990 the

carbon sink in forestry was almost equivalent to greenhouse gas emissions. A lot of trees were planted in the 1990s which are now being harvested, so that sink is less than it used to be. “As greenhouse gas emissions have gone up that sink has come down. But it is still [equal to] about three quarters of NZ’s greenhouse gas emissions.’’ Howden says there are important ways to domestically offset emissions from agriculture but they are not free -- they require action. In addition to planting there is ‘enhanced weathering’ -- crushed basalt spread over the soil where it absorbs carbon dioxide and locks it into the structure. They can increase the fertility and water-holding capacity in poor farm soils. There is also renewable energy. In Australia, lots of farmers have realised by having wind or solar farms they can earn a stable income and it doesn’t hugely impact their agricultural production in most cases. Farmers of the future will be spending more time on computers than out in the paddock, he says.

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THE ‘WILD west’ of the primary sector is what the Minister of Agriculture calls the bee industry. O’Connor at the annual conference of Agcarm launched a full-scale attack on the industry, saying some beekeepers’ behaviour is putting the exports of honey at risk. Many need a good shake-up, he said, pointing to alarming incidences of colony collapse. The health of the bee industry must improve, he said. “The bee industry is the wild west of the primary sector. They have grown very quickly and not always in a sensible and rational way. I have told them that directly and we are happy to work with the sector to bring it into some order and to get more collaboration and a united sense of direction.” O’Connor has also accused the industry of what he calls bee abuse. “If you have overstocking and bees that are hungry and not being fed properly or not fed the right stuff, then that’s not good. Traditionally we have had a sound approach to all our livestock management and bees are no different; they need to be looked after and not abused for a commercial opportunity,” he says. O’Connor says he personally has a passion for bees, describing them as amazing insects. But commercial opportunities have caused behaviour not always good for hive management and disease control. – Peter Burke

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Mycoplasma bovis – latest update We are working hard to eradicate the cattle disease Mycoplasma bovis (M. bovis). Where it is found, we work closely with affected farmers to remove it from their farms and support them as they move forward. M. bovis is an animal welfare issue and has no impact on food safety or human health.

Another round of M. bovis bulk milk testing is taking place this spring. All dairy farms supplying milk will be tested. With the ultimate aim of eradicating M. bovis from New Zealand, this surveillance programme is essential to providing further assurance of previous non-detects. It will also help to identify any clusters of disease that could have gone undetected so far.

Facts at a glance:

RECOMMENDATIONS FOR MANAGING BULLS

• The vast majority of properties that have been tested as a result of tracking and tracing, have been cleared with no cases of M. bovis found. The total number of properties under movement restrictions (or pending restrictions) has fallen from about 350 in May to around 280 in August 2018.

The highest risk of spreading M. bovis is the movement of infected animals from one herd to another. Bulls who have been in contact with infected cows, and then moved to another herd are at risk of spreading infection.

• Since the disease was first detected in July last year, around 60 properties have been confirmed with M. bovis. Put in context, there are more than 20,000 dairy and beef farmers in New Zealand.

Bulls should arrive properly identified and with their movement history. If sourcing bulls, make sure you let the vendor or agent know that you expect these details. On arrival the bulls should be held separately from the main herd for at least seven days to assess their health, and to complete procedures such as drenching. If you have any concerns about the health of the bulls, contact your veterinarian before you mix the bulls with the herd.

All test samples will be taken as part of the normal milk collection process so farmers will not be required to do anything additional. Results will be provided to farmers in November.

The fight against M. bovis is a joint effort between MPI, DairyNZ and Beef + Lamb New Zealand; with significant support from:

Bulls leaving the farm

• Federated Farmers

One year old bulls

MPI believes mixing young animals at calf days and returning them to their home farm is not worth the risk under the current state of heightened biosecurity in New Zealand.

• 20 properties are now restocked, and another seven are in the process of restocking, after going through the process of depopulating and cleaning. Teams are working with the farmers on each property to help them recover and move forward.

• Rural Support Trust

Bulls arriving on farm – all ages

If the bulls are leased, then talk over the options with the owner.

• Dairy Companies Association of New Zealand

These bulls may be a risk for the spread of infection. The best indicator of the level of risk from these bulls is the health status of the herd the bulls have been running with.

• Rural Women NZ

Two year old (and older) bulls

This is a very stressful time for affected farmers and their families. Look out for your neighbours, friends and family and seek help if you are worried about their health or well-being.

Once mating is finished these bulls should be sent directly to slaughter. It is important that they go from the farm to the slaughter premises directly, not via saleyards or any other intermediate stopping point. If they are being held for further use (mating in autumn 2018, or spring/summer 2018/19) then follow the recommendations for one year old bulls.

• New Zealand Veterinary Association • Meat Industry Association

CALF REARING Calves can become infected with M. bovis through direct contact with infected cattle, or by drinking milk from infected cows. Avoid trading milk if possible. If you have a farming operation that requires trading of calves or milk, you can take some simple steps to reduce the risk of spreading M. bovis. For more information about feeding, visit www.mpi.govt.nz/bovis.

www.mpi.govt.nz/bovis

MPB0043

BULK MILK SURVEILLANCE PROGRAMME

If the bulls are of dairy origin, the herd has been screened via bulk milk and discard milk tests, and the results show M. bovis infection is not detected, then the risk of these bulls spreading infection is lower than those from a property where test results are unavailable. If the bulls are from a beef property and M. bovis test results are unavailable, then the best indicator of the level of risk from these bulls remains the health status of the herd(s) the bulls have been running with – pay particular attention to the herd’s levels of mastitis and lameness.

Spring is the best time to test for M. bovis because infected animals are more likely to shed the bacteria after a stressful period, such as calving and the start of lactation.

Farmers can find out more about the programme at www.mpi.govt.nz/bovis or ask your local dairy company representative.

CALF DAYS

We recommend that, while the M. bovis eradication programme is underway, schools and other groups managing calf days look for alternatives. It could become a ‘pet day’ with other pets and animals, or you could use technology and come up with an innovative compromise. Calf Club NZ has launched an ‘online calf club’, find out more and register at calfclubnz.co.nz.

BUYING STOCK The infected and most suspicious farms are in lockdown and cannot trade stock. When purchasing stock, 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 seven days to observe their health. Always complete your NAIT records. Knowing where your cows have been is crucial to understanding and preventing the spread of disease. DairyNZ has a helpful pre-purchase checklist: www.dairynz.co.nz/pre-purchase.

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

www.rural-support.org.nz

RURAL NEWS // AUGUST 21, 2018

NEWS 21

Arable title to 30-year veteran THE 30-YEAR wheat farming career of Syd Worsfold, Canterbury, has been recognised with the title of Federated Farmers Arable Farmer of the Year for 2018. Worsfold says the honour is not so much for his prowess as a farmer, but his work with a wide range of farmer and industry bodies. These include United Wheatgrowers, the Foundation for Arable Research (FAR), AIMI (the Arable Industry Marketing Initiative), and a liaison committee of farmers, millers, and bakers which helps set

“You’re actually working with industry to try to better it for everyone.” research agendas. It is Worsfold’s work with United Wheatgrowers, where he was chairman for five years and is still the vice-chair, he has enjoyed the most. “You’re actually working with industry to try to better it for everyone,” he told Rural News. “And I’ve met really great people along the way: farmers, industry and the staff we’ve dealt with -- that’s made it enjoyable. You can count them as friends, basi-

cally, so that’s the bit I’ve probably enjoyed the most.” Worsfold says the deregulation of the wheat industry about 1987 first got him involved with Wheatgrowers. Before then there was effectively only one recognised standard for wheat -- a milling grade. At that time the Wheat Board set the price which millers and farmers had to accept. Since then the milling industry had become much more sophisti-

Syd Worsfold was named the 2018 Fed Farmers’ arable farmer of the year.

CROPPING RUNS IN THE BLOOD WORSFOLD GREW up on his father’s sheep and arable farm not far from the property at Greendale that he and his wife Trish have farmed for the last 31 years. He’s the third generation of Worsfold croppers in the district. His grandfather ran a contracting business from the mid-1920s with a threshing machine driven by a steam traction engine. A souvenir of those days now stands in the farm’s implement shed: a wooden tool box from the traction engine labelled Worsfold and Cullen in faded paint. Syd and son Earl both still do contracting around the district. Meanwhile, Earl is progressively taking over running the farm and is

leasing a neighbouring block, for a total area of 400ha. Together they crop about 330ha and run stock on the remainder, mainly stony riverbed soils. The farm borders the Selwyn River to the south and straddles the dry bed of the Hawkins River which usually only runs about once every 10 years. The Worsfolds fatten up to 2500 lambs through winter (currently 200), and run up to 500 lambing ewes (300 this year). They also have about 80 dairy heifers, which will return to their home farms for mating in September. The farm has some irrigation from surface water from a creek in

the Selwyn, and a 60m well on the leased block, both unreliable late in the summer. In most years that is enough to see them through to Christmas with traditional crops. Earl Worsfold is now leading the development of the farm, signing up for the Central Plains Water Scheme, which will provide one-third more water and improve flexibility. Syd says it will allow them to grow more valuable seed crops such as radish into January. He quips that with Earl introducing technology such as GPS he is now “the boy around the farm -- the tractor driver”. “When we get the driverless tractor here I’ll be able to retire properly.”

cated, with a range of quality specifications for different types of wheat for various different uses. Worsfold believes he was noticed in the early days of deregulation because he was willing to experiment and diversify. “We were lucky a couple of varieties came into the system that met their requirements.” Another big change was the trend to grow wheat for stock feed. Two-thirds of the wheat grown in New Zealand is now the higher-yielding stock feed varieties. Worsfold believes feed varieties are “a bit simpler” to grow, but he has continued to concentrate

on milling wheat. Growing paddock-size batches of milling wheat to specification meant having to “be on your toes” with inputs and timing. “It is a lot harder to grow a big tonnage and have it meet the grade.” However, millers appreciate batches that meet their needs rather than imported bulk shiploads of mixed quality. “In spite of what people say, the mills do actually like New Zealand wheat.” He says a challenge for the NZ industry is getting South Island wheat into the North Island, in the face of bulk imports.

He believes the development of the “inland port” at Rolleston means wheat can be shipped in standard 20 tonne containers to reduce handling costs. He sees positive signs for the industry: next season’s prices the second-highest he has ever seen; they have been down at unsustainable levels for the last two years. In another sign of the increasing sophistication of the industry, Worsfold recently became the poster-boy for Countdown supermarkets’ commitment to use Canterbury wheat – 10,000t a year – for all bread and rolls baked instore.

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global agribusiness research analysts sharing market outlooks

22 MARKETS & TRENDS

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Prices hold in uncertain climate Dairy MILD WINTER conditions have continued across most regions, helping ramp up low-volume winter milk collections by 11% YOY for June 2018. NIWA forecasts mostly favourable weather in key dairy regions to carry on

over the coming three months, as calves continue to drop on the ground around the country: a crucial period for setting the production tone for the remainder of the season. Hot and dry conditions are impacting feed

availability in the European Union. Continuing severe drought in the south-west of the US has slowed production in some areas, while Argentine dairy producers are feeling the bite of increased input costs on margins. Global commodity prices were generally weaker in July. Trade tensions continue to weigh on market sentiment, while a number of key import markets have sufficient short-term inventory cover. Combined, this has had the effect of muting demand for dairy and softening commodity prices.

Beef PRICES ACROSS all classes of cattle made further gains during July, as the seasonal decline in domestic produc-

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ongoing competition for a tightening supply, combined with the weaker NZD, to continue to put upward pressure on prices throughout August.

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tion continued to create increasing procurement competition among processors. As at the start of August, the North Island bull price is 1% higher MOM, averaging NZ$ 5.35/kg cwt, with the South Island bull price up 5% MOM, averaging NZ$ 5.30/kg cwt. The lower NZ$ against the US$ has also helped to support these price increases. The latest available slaughter data (up to 7 July) shows New Zea-

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land’s season-to-date beef kill remains well ahead of last season, with 9.6% more beef having been slaughtered so far this season, compared to the same stage in the 2016/17 season. It has been the jump in the number of cows (+12.2%) and bulls (18.4%) killed that has driven this increase, with steer and heifer kill numbers increasing only marginally: 1.4% and 3.4%, respectively. Rabobank expects the

THE CONTINUAL upward price movements over the last few months have pushed schedule prices in both islands through the NZD 8/kg threshold, the highest price ever recorded for August. As of the start of August, the slaughter price in the North Island averaged NZ$ 8.10/kg cwt (3% higher MOM), while South Island lamb averaged NZ$ 8.00/kg cwt (4% higher MOM). As is normal at this stage of the season, ongoing price lifts are predominantly driven by procurement competi-

tion for an increasingly shrinking supply of lambs available for slaughter. The latest available slaughter data (up to start of July) shows New Zealand’s total lamb kill for the season-to-date remains only marginally ahead (+2%) of the low numbers seen last season. However, there is a clear split between the islands, with the North Island kill currently +5.7%, while the South Island kill is -1.1%. This would indicate that a greater proportion than normal of the remaining supply will be sourced from the South Island. Export data for OctJun reveals just how strong New Zealand’s lamb exports are currently performing, with total lamb export receipts for the first three quarters of this season (NZ$

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MARKETS & TRENDS 23

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Content supplied by Rabobank – Grow with the bank founded by farmers for farmers 2.590 billion) up 23% on the same period last season, thereby already surpassing the total value of lamb export receipts for the entire 2016/17 season (NZ$ 2.537 b). Rabobank expects procurement competition to continue to put some upward pressure on prices throughout August; however, ever-tightening processor margins may limit just how much higher prices can reach.

Wool HAVING HAD a positive run through the last quarter of the 2017/18 season, the first sales of the new season have seen a disappointing fall in prices and clearance rates at auction. The finer end of the New Zealand market held somewhat better in the South Island sale in mid-July, but coarse crossbred saw lacklustre demand. This is an unfortu-

nate note on which to commence the season, with the last few months pointing to some, albeit moderate, improved demand levels for broader wool. While the market in Australia also saw some softening through the first two sales of the new season, the 30micron indicator has actually lifted 5% through the month. China is New Zealand’s largest wool market, although its share of coarse wool exports is generally lower than overall shipments, at 27% in 2017/18. While overall volumes shipped to China lifted 37%,

compared with 2016/17, this was predominantly driven by an increase in fine crossbred wool volumes, with a more minor lift in coarse wool. Sustained lifts in coarse crossbred wool prices will be difficult until there are some clearer signals for demand from the world’s largest wool processor.

1.75% to 2.00% in July. But the FOMC upgraded its assessment of economic growth to ‘strong’ from ‘solid’, reflecting the strong Q2 GDP report (4.1% growth) published in late July. We continue to expect at least one more interest rate hike in the US the next 12 months. But if the trade conflicts do not escalate and the yield curve does not invert before the end of the year, a further additional

AFTER LOSING USc 2.5 against the US$ in June, the NZ$ fell another cent in July – to sit at USc 67.49 on 8 August. As widely expected, the Fed kept the target range for the federal funds rate unchanged at

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RURAL NEWS // AUGUST 21, 2018

24 AGRIBUSINESS

A ‘Big Mac’ d Turning farmers into consumers is the objective of McDonald’s New Zealand farmer tours. The company runs tours to show farmers how much effort goes into turning a big, beautiful bull into a tasty Big Mac. Reporter Peter Burke joined a recent tour in Taranaki where NZ’s largest McDonald’s restaurant tops the burger sales stakes. FARMERS ON this tour are mostly from the lower North Island, Manawatu and Wairarapa and a few from Waikato. The last many see of their beef animals, be they bulls or culled cows, is their tails disappear-

Wairarapa sheep and beef farmer Andy Philipps joined the tour.

ing into a stock truck and heading down the driveway. When they stop for a snack at McDonald’s do they think they may be eating their own animals? Probably not. The group meets at ANZCO’s process-

ing plant, near Eltham, and gets to see the animals being processed on the chain at the works. Many have never seen this before, including Jason Griffin of Beef + Lamb NZ. “For some it will be a new experience

WHAT’S IN A HAMBURGER? A DECADE or so ago, consumers at McDonald’s just wanted a hamburger and fast, but that is changing says the head of communications for NZ McDonald’s, Simon Kenny. He says the company still want it fast, but many customers want to know more about the provenance of the product. “You get those very conscious consumers who want to know a lot more about certainty about food safety,” Kenny told Rural News. “They want to know where it comes from, and want to know what the impacts are on the farm. It is a trend we have seen outside of McDonald’s as well. The issue of sustainability is something many customers are taking a greater interest in.” McDonald’s insists on consis-

tency of its product wherever in the world people buy it. But Kenny says the real connoisseurs of hamburgers notice a slight change in the taste when they come to NZ, because all ours are made from lean beef rather than in most other countries where at least part of the beef is from grain fed animals. To ensure consistency of product, all suppliers to McDonald’s, including processing plants, are regularly audited and this includes looking at the new issue of sustainability. What is hard to appreciate is the logistics behind getting products, in particular fresh vegetables, to restaurants from North Cape to Bluff in perfect condition. It’s a very complicated process, Kenny says.

“For example, the lettuces are cleaned then bagged at a facility right next to our distribution centre in Auckland,” he said. “It then takes very smart planning to work out the best way to get that produce around the country to ensure a lettuce getting to Queenstown is as fresh as a lettuce going to Auckland.” Seeing some of this, and hearing the story from Simon Kenny and other McDonald’s staff, is part of a plan to engage farmers so that they appreciate the complexities of producing a quality product for the consumer. However, seeing the processing plant and the pattie making machine is not quite the end of the story. There is a treat and a challenge in store for them at the end of the day.

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AGRIBUSINESS 25

’ day

and I’ve only seen it from a viewing platform, but never right down close to the chain,” he told Rural News. “Seeing all the people involved and the skills they have is impressive. You don’t realise that until you come in and do this.” Andy Philipps, a Wairarapa sheep and beef and Texel stud farmer, agrees. Onfarm he spends a lot of time making sure he supplies good product to the works. “I came on the trip because I wanted to know what happens beyond the farm gate, not only as far as the killing process but looking at markets and what’s coming ahead of us,” Philipps said. “It was very impressive to see what an efficient job the meat processing company is doing and it’s great that it’s ending up as a quality grass fed burger, not just as a commodity product,”

They’re ‘lovin’ it’!

he says. The next stop for the farmers is ANZCO’s beef pattie operation up the road at Waitara. This is where the beef suddenly emerges out of a machine as mincemeat, is transferred to another one and in a matter of minutes thousands of meat patties appear, are made to the international standard McDonald’s requires. This plant produces up to half a million patties a day, seven days a week. Jacques Jordan, who supervises this operation, says all the beef is grass fed, which means the meat is lean and they use a mixture of chilled and frozen product to do this. “Mostly we use chilled meat and generally the ratio is 70% chilled to 30% frozen,” he explains. As the patties emerge, perfectly cut to size and weight, they are instantly frozen and packed and ready to head to a McDonald’s near you.

AT JUST 33 years of age Lauren McAuslin is the owner of the biggest McDonald’s restaurant in the country – in terms of sales – at New Plymouth. She has degrees in law and management and her partner Matt, who’s recently joined her in the business, has worked in the corporate world as an accountant. He’s the new boy on the block. Their business is a 24/7, 365 days-of-the-year operation. They never close. What’s more McAuslin is a second-generation McDonald’s restaurant owner: her parents owned the franchise in Blenheim. “While I was at university, I knew what I wanted to do; the challenge was convincing McDonald’s to want me,” she said. The process of buying a McDonald’s franchise is lengthy and rigorous. It includes psychometric tests, spending time in other franchises and many interviews by the NZ bosses of the company. It took her four years to achieve approval and a year later, aged 30, she bought the restaurant in New Plymouth. She has a staff of 150, which keeps her on her toes, and she loves the challenge. “What I like is that every day there is a change of pace,” she explains. “Every day is different and you come into work and you don’t know what is going to happen, and you don’t have to sit at a desk all day.” McAuslin loves the people side of the business, whether it’s

Owners of NZ’s biggest McDonald’s restaurant, New Plymouth-based Laren McAuslin and Matt Kelly.

dealing with staff, suppliers or customers. Keeping the business running is a big task and that means time in the office, but like all McDonald’s franchisees she makes time to serve customers and help in the kitchen. Her staff range in age from 16 to 60 and she likes the mix of ages in the crew. “The older staff are good role models for younger staff because of their maturity and they bring a different dynamic, especially with hospitality in the restaurant,” she says. Partner Matt Kelly is learning the ropes – cooking fries, hamburgers and working at the counter. But his experience in strategy and accounting brings another dimension to the business. His move to work at McDonald’s was not hard. He admits to always having a soft spot for the restaurant chain and his days as a child

going there for birthday parties was fun. Kelly likes the customer service side of the business, which is a far cry from writing reports in the corporate world, which he wonders if they ever really made a difference. “I love meeting customers’ expectations and exceeding them. When someone comes in and orders a meal – such as a Big Mac Combo – you get the satisfaction that it’s fresh, hot and on time and the customer is happy,” he adds. “I like giving the customer what they want and making it an enjoyable experience for them.” Kelly says it’s a dynamic environment with so much happening and lots of variety in the work. McAuslin says it’s nice having Matt as a sidekick, but says they try not to talk shop when they get home. Weekends are times when

they are very busy and they have few of these off. The 24/7 nature of the business means that when others are on holiday they are busy. She says she enjoys the farmer visits. As part of these visits, they spend time in the kitchen and get a chance to make a hamburger of their choice. McAuslin says the farmers are amazed at what goes on behind the scenes. “It’s a big eye opener for everyone who comes into this store. When people do their very first shift they say, ‘hey we didn’t realise how hard it was’ or that ‘there was so much to learn’.” For Lauren and Matt – and McDonald’s – the farmer visits, along with other suppliers, are an important part of the business. They after all rely on farmers and other suppliers producing quality products. “It’s all about a win-win situation,” McAuslin says.

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RURAL NEWS // AUGUST 21, 2018

26 OPINION EDITORIAL

EDNA

A new era of honesty? THIS TIME last month, not many people were aware that a new era was dawning on the world’s largest dairy exporter, Fonterra. Former chairman John Wilson and soon to be ex-chief executive Theo Spierings were still running the show. There was growing unease among shareholders about some investments going sour in China. And some Government ministers -especially in New Zealand First -- were openly calling for heads to roll at the co-op. On July 27 came the first bombshell: chairman John Wilson stepped down due to a major health scare and Wairarapa farmer John Monaghan took over. Two weeks later came the second bombshell: Fonterra said it would reduce the 2017-18 farmgate milk price by 5c/kgMS to a still-respectable $6.70/kgMS. Nonetheless farmers were stunned to learn they would get less for their milk sent to Fonterra in the last season ending May 31, 2018. The co-op’s balance sheet was under pressure due to a $400m write-down in the value of the Chinese company Beingmate Baby and Food and a $183m compensation payment to Danone. Fonterra had three options: claw back 5c/kgMS already paid to farmer shareholders, borrow more money or reduce the final payout for the last season. It went for the easiest option. The final ‘wash-up’ payment in October for the 2017-18 season will see farmers get 5c/kgMS less than they were promised in May this year. Farmers have been wondering how Fonterra’s management had got it so wrong. Until the very end of their tenure, both Wilson and Spierings had professed faith in the Beingmate venture. Whether Fonterra bleeds more money in this disastrous investment will be known on September 13 when the annual results are announced. New chairman John Monaghan saw it was time to act swiftly. Last week, Miles Hurrell took over as interim chief executive and Spierings will be gone come September 1. Hurrell is promising a clearer, more upfront and honest approach in dealings with farmer shareholders. They can expect him to have a higher media profile in NZ than did Spierings, who could never understand why journalists were so obsessed with a dairy company. A new era of transparent and honest communication by the co-op bosses will sooth many shareholders and politicians.

RURALNEWS TO ALL FARMERS, FOR ALL FARMERS

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

“If your hot water alternative weed killer to Roundup is going to work Edna, we’re either going to need a longer extension cord or a shorter property!”

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

THE HOUND Full of it

Shrinking?

Tough words

YOUR OLD mate always thought the ‘mouth of the north’ and selfproclaimed ‘provincial champion’, Shane Jones, was always full of the proverbial. Remember when the Regional Economic Development Minister launched a blistering attack at Fieldays on the former (seriously ill) long-serving Fonterra chair John Wilson? Defending his remarks, Jones claimed that 365 people had texted him supporting his stance. However, the notorious adult movie fan won’t release these alleged texts. Media outlet Stuff asked Jones, via an Official Information Act request, to make the ‘texts’ available. But Jones, a minister in supposedly the ‘most transparent and open government ever’ has refused. The Hound suggests that in refusing the OIA request Jones shows he is suffering from a serious case of bovine scatology.

YOUR OLD mate understands the Government has set up another committee on top of the 120-plus it has already established – this time for small business. According to Small Business Minister Stuart Nash, the 13-member small business council has a mandate to “help the Government develop a strategy to drive improvement and innovation in the small business sector”. To the Hound this sounds eerily similar to the mandate of the $500,000 a year white elephant the Primary Sector Council. But what piques your canine crusader’s interest in this latest quango is that Fonterra is among the members of this small business advisory committee. We all know Fonterra is going through a tough time, but it is hardly a small business. But then, the way the dairy co-op is performing it could well be a small business very soon.

SPEAKING OF Fonterra, your old mate hears that dairy farmers are struggling to take seriously the role of the co-op’s shareholders’ council. After Fonterra’s latest FUBAR (Google it) – and having to reduce the 2017-18 forecast farmgate milk price by 5c/kgMS – the shareholders council put out a media statement expressing its “absolute disappointment” with the drop in payout. The Hound can just see the 25 members of the council sitting at the board table hotly debating whether they were “strongly”, “very” or “absolutely” disappointed with Fonterra’s latest move. Reports are that the council believes this clearly shows how disappointed the council is with the directors, but hopefully not too much, as they wouldn’t want to upset them. Watchdog or lapdog? You be the judge.

Strange recipe THIS PHOTO was taken at a recent conference at Te Papa, in Wellington, attended by a mate of the Hound. “This perplexed me,” he told yours truly. “Vegetarian, beetroot chocolate cake. Does that mean they normally put meat in their chocolate cakes at Te Papa?” Good question.

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

RURAL NEWS // AUGUST 21, 2018

OPINION 27

Action needed, not more words NATHAN GUY

MOST FARMERS are now flat-out calving and lambing and are looking forward to another season of forecast good returns. MPI’s Situation Outlook report shows exports growing. Milk prices look solid at about $7/kgMS and the returns for red meat farmers are strong. These prices will be

rather than researching an enduring solution. The inclusion of animal emissions in the ETS will see farmers annually paying $5000-$10,000 extra in taxes. This won’t have any tangible effect on climate change and no country in the world is doing this. This tax will be felt nationwide all the way to the consumer and will make us globally less

Primary Sector Advisory Council will cost $500,000 a year and no one really knows what its role is apart from designing a strategy for the minister. To achieve anything meaningful it needs free-

dom to run a cost-ofcompliance ruler over all Government policies impacting the primary sector. While this season’s onfarm returns look positive, dark clouds are

massing on the horizon. Decisions coming from the Beehive are not helping business confidence or farmer sentiment. • Nathan Guy is National’s primary industries spokesman.

Nathan Guy

It’s vital to address the wider impacts on the economy, jobs and incomes and use technology to help solve our methane emissions. competitive -- something this Government doesn’t understand. A Federated Farmers survey of 1100 members confirmed that farmers are deeply concerned about how the Government’s policies are going to hurt them. It showed a 500% increase in pessimism over just the last 12 months; rural NZ is growing weary of the Government’s intentions. Business sector surveys show similar pessimism, back ed by an OECD global survey of business confidence that confirms NZ has dropped from second-highest to the bottom. This is a real worry. Damien O’Connor’s attempts to soften the blows have amounted to little more than lip service. He admitted in parliament recently that we can expect more costs. His ‘rural proofing’ scheme is a sop: it sounds good but lacks teeth. This so-called ‘guidance tool’ to enable government agencies to get rural communities front-centre when they are designing policy is, in fact, voluntary not mandatory. This means bureaucrats and ministers can easily dismiss and ignore it. Had the scheme been in place earlier this year, would ministers have been advised to ditching financial support for water storage schemes, given that half NZ was in drought last summer? The recently formed

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helped by a softening NZ/ US exchange rate, though tariff wars may impact farmer returns. It’s disappointing that Trade Minister David Parker hasn’t visited China yet; we’ve had 10 months of the coalition Government and China is our largest export market worth $12b a year. Political relationships matter, especially in China, and this will have been noted in Beijing. Also concerning farmers are the coalition Government’s ill-thought-out policies and how they could have a serious impact on the engineroom of the economy. Most farmers back M.bovis eradication and are awaiting spring milk test results to gauge the spread of the disease. But their nervousness also includes climate change regulations, ETS obligations, petrol taxes, slowing overseas investment, industrial relations reforms and a wide-ranging review of the dairy industry. National well knows the importance of addressing climate change, but we must do this in a pragmatic, science-based way, not by slapping on yet another tax. It’s vital to address the wider impacts on the economy, jobs and incomes and use technology to help solve our methane emissions. The ETS shows the Government reaching for the regulation lever

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RURAL NEWS // AUGUST 21, 2018

28 OPINION RIDICULOUS WASTE OF TIME IN RESPONSE to the acting chief executive of DairyNZ David Evans’ article ‘Zero to hero in agriculture’s chase for carbon neutrality’ (July 17): it is incorrect to say that carbon dioxide is a longlived gas as it only remains in the atmosphere at most up to six years (according to scientific research) not 1000 – 10000 years as DairyNZ promotes. According to former

Australian Prime Minister Tony Abbot, half of the world’s emissions are contributed by China (28%), America (15%) and India (7%). Abbot points out in a recent speec that neither China nor India has signed the Paris Accord and America has pulled out. Said Abbot recently, “Of the four biggest emitters, China and India have made no Paris commitment to

reduce their total emissions and America has now pulled out. So when three of the four biggest emitters have no Paris reduction target at all, why should we? Especially now that we can start to count the cost… in more expensive cars and in culled herds as well as through more expensive and less reliable power.” David Evans states in

• • • • • •

his article, “The question farmers should be asking is, at what levels should methane be stabilised?” Well, I suggest he is incorrect about that; the question farmers should be asking is, “Why should we and the rest of New Zealand support a political and scientific illusionary fabrication, which is promoted by the Zero Carbon Bill and the whole

anthropogenic global warming scenario?” The answer should be, “No, we should not support it.” Let’s follow the US and Australia and leave all this nonsense behind as it will do far more harm than good in the long term, because the climate actually looks after itself, thank God. Brian Hughes – [abridged] (via email)

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Q: What publication did you see this promotion in? Answer: .......................................................................................................................... Name: .............................................................................................................................. Address: ........................................................................................................................... ......................................................................................................................................... ...................................................................... Phone: ...................................................... Email: ............................................................................................................................... Terms and Conditions: Information on how to enter the competition forms part of these terms and conditions. Entry in to the Win a Suzuki Kingquad competition is deemed acceptance of these terms and conditions. Entry is open to all New Zealand residents except for employees of Rural News Group and their immediate family. Each entrant may enter more than once. To be valid, each entry must contain the correct answers as determined by the Rural News Group. The competition opens on Monday August 6, 2018 and closes Friday November 2, 2018 at 11pm. The prize winner will be drawn on Monday November 5, 2018 and will be contacted by phone and email by Wednesday November 7, 2018. The winner will be announced via email by Friday November 9, 2018.The promoter’s decision is final and no correspondence will be entered in to. By accepting the prize, the prize winner consents to the promoter using his/her details, photographs and recording of the prize acceptance for promotional and media publicity purposes. There is one prize of a Suzuki Kingquad 500 XE ATV. The winner may be required to pick up their prize from their nearest Suzuki dealer. The prize is valued at $16,995. The prize is not transferable or redeemable for cash. All insurance and any on-road costs are at the winner’s expense. All entries become the property of the promoter. The promoter is Rural News Group, First Floor, Bayleys Building, 29 Northcroft St, Takapuna, Auckland 0622

AIR NZ DESERVES A BOLLOCKING ALL HAIL the Hound, Winston Peters, NZ First MP Mark Patterson and National’s agriculture spokesman Nathan Guy, for giving Air NZ a good bollocking about the disgusting, fake, genetically engineered ‘Impossible’ burger. I’m appalled by our national carrier’s decision to serve (on flights from LA to Auckland) a controversial new synthetic low-quality food not yet approved by the US Food & Drug Administration as safe to eat. This is a genetically engineered, fake American product. Meat served on Air NZ flights should come from our grass-fed beef and lamb. A high quality vegetarian patty should be provided as an alternative, not an imported unsafe GE product. The best way for NZ to stay competitive is by improving our animal welfare standards, retaining our existing valuable GE free status (and no cloned animals), producing nourishing, safe and clean food of the highest quality in a sustainable way. Linda Grammer, Whangarei

KEEPING IT REAL I WRITE in response to Mark Daniel’s opinion piece in Rural News July 3 on the National Fieldays at Mystery Creek. I am the secretary of the South Island Agricultural Field Days (SIAFD) held every second year in Kirwee, Canterbury. For a long time, SIAFD has been compared to the National Fieldays as its ‘poor cousins’, with its lower attendance and country-bumpkin grassroots image. It seems that while keeping to the aims of our founders in 1951 -- which includes “to offer the public of New Zealand and the South Island in particular an opportunity to view the latest in agricultural and related developments in practical working and static displays” -- we have come full circle. It’s becoming evident that many exhibitors prefer

to attend field days that are truly agricultural, with an emphasis on machinery demonstrations and agricultural developments, rather than a glorified A&P show. SIAFD is the largest agricultural demonstration field days in New Zealand, showing cultivation, no-tillage, harvesting and irrigation technology. SIAFD is the bestvalue-for-money field days to exhibit at, with a committee of 27 hardworking volunteers and one paid contractor, and relying on the goodwill and generosity of local business and people. We also pride ourselves on our relationship with our community and our exhibitors. As for visitor numbers, we don’t need to embellish this as most visitors are there to research purchases, not just kick tyres. Tineka Johnstone

RED FACES AT FONTERRA REPORTS THAT Craig’s Investment Partners has dropped Fonterra from its equity investment portfolio should spell the doom of ‘platinum’ pay packages for Fonterra executives. I recall my time at Federated Farmers Manawatu meetings discussing remuneration. Many were openly of the opinion that ‘if you pay peanuts, you get monkeys’. The case of highly paid Fonterra executives proves the opposite to be true. Fonterra executives have made seriously bad judgements and financial decisions which Craig’s Investment Partners recognises is not going to reverse in the short term. The Fonterra board should be red-faced. Rob Chrystall Himatangi (via email)

RURAL NEWS // AUGUST 21, 2018

OPINION 29

Destocking not the answer IT IS a great pity that some people have embraced – with little question – the concept that farmers can make a ‘reduction in stocking rate and still make the same money, while leaching less nitrogen’. Destocking is now being offered as the panacea to environmental woes, and hence a goal for the country, without examination of impacts or alternatives. Nor is the issue of climatic variability being considered; a region once ‘summer safe’ or ‘winter dry’ may be no longer. Of even more importance is the starting point: destock from what? And did the high stocking rate mean animals were under pressure for feed? And, of course, what is the milk price and the cost of importing food to the milking platform. The research that started the discussion was a masters thesis from the University of Waikato. Through financial and biological models it investigated destocking, nitrogen loss and return on capital (RoC).

The Waikato study reported a reduction in nitrogen leaching associated with destocking and acknowledged that some of the decrease was due to a change in the Overseer model used to make the calculation. The RoC from the farms involved was reported as 2.5 to 9.0% after destocking. However, RoC is not the same thing as cashflow, which is what banks require in order to feel confidence in supporting mortgages. An analysis of DairyNZ’s Economic Farm Survey data by Ian Williams of Pioneer indicates that over the last 12 years (since the 2005-06 season to 2016-17) average profit per hectare, return on assets, and equity growth has been higher for system 4-5 (inputs and high stocking rate) than 1-2 (all grass and low stocking rate). Closing term debt per kgMS has been lower for system 4-5 than 1-2. Economically the higher stocking rate systems have paid off.

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However, economics is not the same thing as environment. The Waikato study reported a reduction in nitrogen leaching associated with destocking and acknowledged that some of the decrease was due to a change in the Overseer model used to make the calculation. Overseer undergoes constant refinement in an attempt to improve its operation. But a big component of what happens to nitrogen in a farming system still depends on the farmer. Motu Economic Research estimates only half of the variability depends on the factors entered into the model by the operator. Good farmers make the difference.

The 2016-17 Sustainability Report from Fonterra’s experts, for a system 5 farm in South Waikato, shows threetimes the district milksolid production per hectare, but half the nitrogen loss. Maize silage and annual ryegrass grown on a support block, plus a herd shelter with wood chips, allows capture of a large percentage of nutrients through good management. All ‘compost’ is returned to the support block where the soil organic matter has increased from 8 to 10%, despite being under constant cropping for a decade. Dry matter yield from this support block has been measured at 28-30 tonnes/ha/year versus 17t/ha on the milking platform. High energy supplements, which include tapioca, PKE and whatever else makes sense nutritionally and economically, are fed in the shelter. The animals move themselves from pasture to shelter (when the automatic gate releases) at their own pace, which reduces incidence of lameness. In this system the animals can be fed through drought and flood. They are cooler in summer and off

pasture in times of torrential downpours. Calving cows can be kept in at night. All factors reduce stress for the farmer. But paying for the facilities takes income, which Ian Williams has shown is higher on average from high input farms than all grass farms. Destocking a farm where animals are fed well and effluent management is efficient would result in loss of income for both the farmer and the country and would not necessarily improve environmental outcomes. Good farmers will work out the best option for their land if given the chance. But the next generation of good farmers simply won’t come into the industry if they have to follow a recipe. Good farmers want to make a difference. • Dr Jacqueline Rowarth CNZM CRSNZ HFNZIAHS has a PhD in soil science and has been analysing agrienvironment interaction for several decades. She has a 5% shareholding in a 56ha dairy farm in Waikato. @rural_news facebook.com/ruralnews

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RURAL NEWS // AUGUST 21, 2018

30 MANAGEMENT

Spring in step of sheep milking PAM TIPA pamelat@ruralnews.co.nz

IT IS an exciting time to be talking sheep milking, says Thomas MacDonald, business manager for Spring Sheep Dairy, in Taupo.

The company has commissioned one of two new milking parlours in Waikato, its sales staff are signing new agreements in two countries and a second generation of specifically bred New Zealand dairy sheep have

been born, he says. All this happened in the first week of August when MacDonald spoke at the NZ Institute of Primary Industry Management. MacDonald says when you try something new

there’s a lot of criticism. Sheep milking is now “almost acceptable” and he is now getting emails every week from companies who told them at the start it wouldn’t work. They are starting to see significant pull and

Spring Sheep Dairy’s Thomas MacDonald.

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demand from customers demanding better digestion, better tasting milks and more toddler products. “At the farmer end, we are starting to see new genetics born – never before seen in New Zealand – which have the capacity and potential to take us to the next level,” he explains. After a breeding programme, the company will have sheep available this year to go wider than Spring Sheep Dairy, MacDonald says. “The beauty of sheep is you get 1.8 of them a year and the generation interval is only 12 months so we are now milking the European sheep which came into the country in 2016.” To go beyond Waikato, where manufacturing is based at Food Waikato facilities, they would need to see investment in small to medium scale manufacturing facilities that were export registered. “There is plenty of money it would seem sloshing around in the regional development fund and others, so I hope we would start seeing people put forward cases for export registered manufacturing sites which will enable the growth of sheep milking in new regions.” On June 1, Spring Sheep converted a 200cow, 50ha Waikato dairy farm to sheep dairy milking, bringing in 550 sheep. “With very limited capital exposure we will be taking what I call a stranded asset, an old dairy parlour that probably wasn’t making much money -- it had probably lost its environmental capacity to farm on that bit of land -- and we have given it a second life,” MacDonald says. And in a greenfield farm development near Cambridge where the

company has taken an arable farm, it had put its first row of sheep through milking the morning of the conference. They now have dairy parlours in three locations, having started in Taupo. Spring Sheep started about three years ago with Landcorp as a 50% shareholder with SLC Group – which represents a range of private equity investors – and the Ministry for Primary Industries. MacDonald says early on they realised sheep milking was critical to NZ agriculture in representing a significant opportunity in land-use change. They put forward a successful case for a Primary Growth Partnership named Sheep Horizon Three which, beyond Spring Sheep, aimed to develop a sustainable sheep milking industry in NZ. The aim is to build an industry of $200-$700 million of gross sales in the next few years. MacDonald says Spring Sheep aimed to learn from these experiences to build a successful sheep milking industry, with a consumer-driven model. He says sales people spend a lot of time overseas talking to customers and ‘socialising’ the concept of sheep milking. They won’t necessarily stick with just traditional or liquid formats. An example is a line of ‘chews’ targeting calcium absorption for Malaysia, Taiwan and Viet Nam where they “are going great guns”. After an initial study with rats fed sheep milk showing higher bone density, protein absorption and digestion qualities, Spring Sheep – with AgResearch and the Liggins Institute – now have human clinical studies underway.

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RURAL NEWS // AUGUST 21, 2018

32 MANAGEMENT

NZ cereal growers can learn from overseas experience – report NIGEL MALTHUS

IT IS time for New Zealand cereal growers to adopt multi-site fungicides (MSF) to combat growing resistance to the more traditional chemis-

tries, says Adama UK fungicide expert Andy Bailey. While MSFs such as folpet have been used for many years to combat downy mildew in grapevines, they have not generally been used in

cereals. But Bailey says NZ growers have the opportunity to adopt MSFs now, to head off increasing resistance to the more commonly used azoles and SDHI fungicides.

Adama NZ recently brought Bailey here for a week of meetings with agronomists and others. Septoria was the major disease of wheat in UK and Ireland and it was becoming an issue here,

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Adama’s visiting English expert on cereal fungicides Andy Bailey. SUPPLIED

tivity shift in the newer SDHI fungicides. “We’ve got an emerging situation. We don’t know how long it will be before they start to lose performance in the field. “We’ve seen the sensitivity shift and we are seeing some issues in the field,” Bailey explains. “So alarm bells are flashing and I’ve come here to kind-of say, ‘this is the situation we’re in and this is what we’re trying to do to slow things down’.” Bailey says it’s an early warning for NZ growers. “You’ve got a great opportunity now to do things along the lines of what we’re doing in the UK and Ireland and that means embracing things like multi-site chemistry and programmes to protect these other single-site chemistries like azoles and SDHIs.” He says azoles and SDHIs provide curative and protectant actions but act at only one site in the fungus, which means the fungus can readily mutate to develop resistance. As the name suggests, MSFs work at several sites in the fungus, which makes it much harder for the fungus to develop resistance.

Bailey says that makes a MSF extremely valuable in fungicide management because it will keep its performance for many years while protecting the other fungicides from over-exposure. However, MSFs have only a protectant function, which means they need to be used pre-infection. “I would say the most effective place to use it here in wheat for Septoria control would be at T1,” Bailey adds. Farmers must also think about using mixtures in resistance management so Bailey recommends partnering a MSF with perhaps an azole at T1, while saving an SDHI for the T2 application. Adama is promoting its Phoenix product – a folpet-based MSF – and Bolide, a single-site azole mixture. Phoenix is now in its third year while Bolide is entering its second season. Bailey says Bolide is an extremely effective mixture of two azoles, which selects for different strains of Septoria. Meanwhile, Bailey says Ramularia is a major issue for barley. Approval of Phoenix and Bolide label claims for Ramularia in barley are expected soon.

RURAL NEWS // AUGUST 21, 2018

MANAGEMENT 33

Farm plans help reduce N loss FARMING PRACTICES now piloted by Mid Canterbury dairy farmers Grant and Jan Early could show other New Zealand farmers how they can successfully reduce their environmental impacts. Earlys’ Mayfield farm is one of a small group in the Forages for Reduced Nitrate Leaching project looking for ways to cut nitrogen losses. They have so far achieved a 20% cut in one year on their dairy support farm. The research results are made available to help farmers adopt new practices. Cutting nitrogen losses is a key government goal in the quest to improve waterways; the government also support a nationwide uptake of farm environment plans (FEP). All the Earlys’ work on their land is guided by their A-graded FEP, in place for four years. Primary sector groups met in June and called on all farmers to voluntarily adopt FEPs. Plans are currently required in Canterbury, Manawatu-Wanganui

and on some farms in Waikato, Otago and Hawke’s Bay. Plans are independently audited. Earlys run a 400ha dairy farm beside a 250ha dairy support farm used for grazing and animal feed cropping. for animal feed. The dairy farm milks 1400 cows at its peak. The Earlys are part of two irrigation schemes -- Mayfield Hinds Valletta (MHV) and Barhill Chertsey Irrigation (BCI) -- whose members are helped to develop their FEPs. Earlys monitor their water use and use real-time soil moisture sensors to decide when to irrigate. Grant Early says his FEP helps him recognise environmental risks. “It sets out a plan to manage and mitigate risks with a focus on improvements over time. The plan is a tool to prove to the irrigation scheme, authorities and the public that we’re achieving good management practice towards reducing nitrate leaching.”

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Mid Canterbury dairy farmer Grant Early.

Earlys’ farm is within the Hinds Plain area where Environment Canterbury requires nitrogen loss reductions by 15% by 2025, 25% by 2030 and 36% by 2035. Their FEP covers both properties and conforms to the rules of both irrigation schemes. “The initial version of the plan is a snapshot of the farm, recording the physical set-up and management systems, map-

ping land management units (LMU) and identifying environmental risks,” Early explains. “The FEP also requires that a nutrient budget be completed by an accredited entity. “The irrigation scheme shareholders must complete and submit their plan annually. Once the first plan is prepared, updating later annual plans is relatively straightforward.” The Earlys’ FEP identifies

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four LMUs on the dairy farm with different characteristics and risks. These areas have effluent irrigation, pivot irrigation, K-line irrigation and some are dryland blocks. Three LMUs were identified on the support block: irrigated winterfeed, irrigated cereals and irrigated grass area. Each LMU’s environmental risks were identified plus options to mitigate these. For example, on the irrigated winterfeed area, the potential for nitrogen leaching was identified. “Our FEP states we will always establish a catch crop as soon as practical once a paddock has been eaten and not leave it fallow for a following winter feed crop,” Early says. FEPs focus on crop rotations, stock numbers, fertiliser and effluent management within each LMU and point discharge areas. The irrigation scheme shareholders must complete and submit their FEP annually.

THE EARLYS use high-efficiency centre pivot irrigators on the two farms. Real-time soil moisture sensors tell when to irrigate, helping them manage their expensive, limited water. Irrigation scheduling needs to be carefully managed as nutrient leaching can occur if too much water is applied at the wrong time and drains to below the root zone. On their dairy support farm they also have installed soil moisture probes. “The biggest advantage of soil moisture monitoring is the confidence to know when to start irrigating only when the crop or grass requires it,” Early says. “It makes sense for the environment and financially.” Water flowmeters are installed on all irrigated farms in Canterbury. Data is transmitted to Environment Canterbury which checks that farms are not exceeding their water consents.

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RURAL NEWS // AUGUST 21, 2018

ANIMAL HEALTH 35

Science group to help M.bovis efforts A SCIENCE advisory group has been formed to strengthen efforts to eradicate Mycoplasma bovis. It met for the first time in July. MPI says the M.bovis strategic science advisory group will advise the M. bovis governance group. “Science continues to be critical to the M.bovis response, and the advisory group will be a valuable resource to enable current science activities to be scaled up and expanded. “The advisory group will ensure we have ongoing access to some of the best minds and knowledge relating to M.bovis, which will bolster the eradication effort,” says Roger Smith, head of Biosecurity New Zealand. “Scientific research is a vital part of our efforts to eradicate M.bovis.” Smith says the advisory group includes relevant expertise from NZ and elsewhere. It will advise on: • identifying critical knowledge gaps and ways to address them, including emerging technolo-

JOHN ROCHE – departmental science adviser, MPI (chair) GLENN BROWNING – professor, director, Asia-Pacific Centre for Animal Health, Faculty of Veterinary and Agricultural Sciences, University of Melbourne HAMISH GOW – professor of agribusiness, Massey University NIGEL FRENCH – distinguished professor, executive director of the Infectious Disease Research Centre, Massey University AXEL HEISER – senior scientist, immunology, AgResearch WILLIAM McMILLAN – independent agribusiness consultant and scientist; Kaiārahi Ahuwhenua, Federation of Māori Authorities TRISH McINTOSH – director, North Canterbury Vets ROGER AYLING – private consultant with extensive M.bovis research experience, UK

gies and ideas that may help eradicate M.bovis • prioritisation of M.bovis research efforts • coordination of current and future science initiatives relating to M.bovis • learning from other

tling time for many farmers and are Dr John Roche moving quickly. They held their says Dr John Roche, chair second meeting last week of the group and MPI’s to start the development departmental science of their detailed work adviser. plan to shape the long“The group has already term science strategy,” identified key priorities for immediate work, and will hold a workshop in September to get wider input into developing the MYCOPLASMA BOVIS is a bacterium that can cause a broader science plan,” range of serious conditions in cattle, including mastitis that Roche adds. doesn’t respond to treatment, pneumonia, arthritis and

research programmes in NZ and internationally • providing assurance that M.bovis eradication research efforts remain fit for purpose. “The members of the advisory group understand this is an unset-

WHAT IS M.BOVIS

ERADICATION DECISION ON 28 May 2018 the Government and dairy and beef industries said they had agreed to try to eradicate M. bovis from NZ dairy and beef herds. Science is a key part of this; the Government will spend $30 million over two years in scientific research to support the fight against M.bovis. DairyNZ, Federated Farmers and Beef + Lamb NZ support MPI’s decisions and recognise the difficulty this poses for farmers involved. The industry groups deem the measures necessary to protect all NZ cattle farms from the disease. NZ is one of few countries where M.bovis is not found naturally and the industry groups support measures to keep it that way.

late-term abortions. The disease may be dormant in an animal, causing no symptoms at all. But in times of stress (e.g. calving, dryingoff, transporting or in extreme weather) the animal may shed bacteria in milk and nasal secretions. This may affect other animals, making them ill or carriers themselves. The disease does not pose a health risk for humans. This is the first time it has been found in New Zealand. The bacteria is an Unwanted Organism under the Biosecurity Act 1993. As at August 14 the disease is still not widespread (35 confirmed infected farms) and there is just one strain of the disease here.

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RURAL NEWS // AUGUST 21, 2018

36 ANIMAL HEALTH

Latest M.bovis find no surprise PETER BURKE peterb@ruralnews.co.nz

THE DISCOVERY of Mycoplasma bovis on a sheep and beef property near Motueka was

entirely predictable, said Agriculture Minister Damien O’Connor. The farm is in his electorate of West Coast Tasman. O’Connor says the

M.bovis situation is what they expected – more cases being identified. “While we are still finding new cases they are all connected by one strain, and as long as

that’s the case we can still eradicate the disease,” he says. MPI says the infected farm was identified by tracing animals from known infected farms. It Dairy farmers collect their individualised milk sampling packs at the start of the first nationwide Mycoplasma bovis testing programme. This time farmers do not have to take samples themselves. RURAL NEWS

“While we are still finding new cases they are all connected by one strain, and as long as that’s the case we can still eradicate the disease.”

REARING OR SELLING CALVES?

won’t name the infected farm but says neighbours will be notified. M.bovis response incident controller Catherine Duthie says the new infected property was expected given the intensive tracing work by MPI. “We know this disease is spread by contact between animals and movement of stock, as is the case here. “An obvious question will be ‘why has it taken this long to find this property?’ “The answer to that lies in the nature of this particular bacteria. It is a tricky thing to find and often hides within an animal, lying dormant and not revealing itself for weeks or months. This is why we test multiple times using multiple kinds of tests,” she says. Duthie says the discovery of more infected

1. TAG 6

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properties is not because the disease is now spreading beyond infected farms. She says all known-infected farms, or farms they suspect may be positive, are in quarantine lockdown and risk goods including animals are not allowed off them. Meanwhile O’Connor says the setting up of a large technical advisory group to assist MPI deal with M.bovis is to ensure they the best possible advice. “We are all the time seeking the most up-todate knowledge from international experts and are assessing the situation.” O’Connor says the first of the bulk milk tests to find other cases of M.bovis have now begun. Six test samples will be taken from every farm and the final results will be known by November.

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ANIMAL HEALTH 37

Raising calves to full potential OLIVIA SUTTON

THE BUSYNESS of calving time, with cows calving, mastitis, down cows and sometimes managing new workers, can make it easy to overlook those tiny critters that aren’t yet producing you any money. But the best genetics in your herd are sitting right there, so try to raise them to their full potential. What is the use of all those early mornings in October staring at rub marks if you weren’t going to get some genetic gain. For our calves to reach their potential we need to keep them hitting their daily growth rates, and have them well grown in height and weight before the planned start of mating. A heifer needs to reach puberty to ensure she is cycling before we can even think of mating her, and puberty is reached at about 50% of mature adult live weight. The following will cause calves born this season to fail to reach their growth targets before their planned start of mating in 14 months. 1. Calf was born late in the season: a calf born on day one of calving and one born in week 6 both have the

bull put out on the same day. 2. Disease 3. Failure of passive transfer (FPT): in this condition calves don’t get enough colostrum 4. Parasitism 5. Nutrition Today, we will look focus on the first two management aspects that impact their future growth. Next issue, we will delve deeper into preventing these issues looking into colostrum management, nutrition and parasitism. Calves born late in the season Tackling this one involves working closely with your veterinarian to improve your 6-week in-calf rate and conception rate. We want to maximise the heifer replacements born early in the season so that they can all have the same chance when the bull goes out. Those born later will need to have higher daily weight gains to ensure they catch up to the rest. Disease When a calf is suffering from disease, whether it is scours, pneumonia or even a navel infection, its energy is used for fighting this, not for growth. Most of the disease that we see is within the first 4 weeks of life, and

For calves to reach their full potential, keep them hitting their daily growth rates.

we will discuss why this is in the next article. Prevention of disease is a balancing act between the calves having a healthy immune system (discussed in next article), and ensuring the environment is favourable to reduce stress and have a low contamination of the pathogens that can cause them sickness. The principles to achieve this are: 1. Do not overcrowd your pens a. Calves require a minimum of 1.5m2 per calf for first two weeks and 2.53m2 after 2. Good drainage

3. Adequate ventilation 4. Ensure all calves have water 5. Solid partitions between pens to decrease disease spread 6. If calves are going outside early ensure they have shelter available (adverse weather conditions cause them stress) 7. Ensure all feeders and utensils are disinfected daily 8. Keep a clean calf trailer 9. Spray calf navels with a spirit-based iodine solution (products above 7% will dry out navels faster)

a. Preferably spray them before they enter the calf trailer as this can be a contaminated environment 10. Monitor your calves for early signs of disease and if you suspect it, clean yourself and your gear before changing pens. The calf rearing process can be time concerning but rewarding when you get it right. Brought to you by

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RURAL NEWS // AUGUST 21, 2018

38 MACHINERY & PRODUCTS

Plastic may be fantastic MARK DANIEL markd@ruralnews.co.nz

The updated TD4F series or orchard tractors retain the compact dimensions of their predecessors.

Orchard tractors deliver more performance NEW HOLLAND Agriculture has updated the TD4F series orchard tractors to meet stage IIIB emissions regulations. But they retain the compact dimensions of their predecessors – important in narrow orchards and vineyards where tight canopies limit available space. Engine power has been increased to 75, 85 and 99hp for the ranges’ three models, from a new 4-cylinder, 3.4L F5C intercooled engine 265 x 100mm from FPT Industrial; this meets stage IIIB emission standards with an after-treatment diesel oxidation catalyst (DOC). This regeneration-free solution is said to achieve a cleaner environment for grapes and fruit crops, lower maintenance costs, while ser-

vice intervals remain at 600 hours, keeping operating costs down. The new model has the same hood height as its predecessor, achieved by mounting the diesel oxidation catalyst unit vertically to minimise the space it takes up under the hood. The overall length and wheelbase of the new tractor is unchanged from the previous range. A new front ballast provides up to 270kg front weight capability, allowing the tractor to operate heavy rear implements. The operator station has a new rear dashboard, new switches and a new instrument cluster, said to improve ease of use and readability. For the TD4F, a choice of three different transmissions allows users

to optimise productivity and versatility. At the top of the range, a power shuttle transmission offers smooth and modulated shift between forward and reverse, while the 20x12 creep speed transmission is offered in mechanical syncro shuttle configuration, alongside the standard 12x12 version. The hydraulic system comprises separate power steering and hydraulic pumps or optionally a 64L/min high capacity MegaFlow pump. Midmount valves can be specified for high-demand applications. Lift-O-Matic rear linkage control enables the operator to raise and lower implements to a pre-set position using a single button.

PLOUGHING MAY be traceable back to the dawn of time, but the first real references date to the early 12th century in Europe. Today, ploughing is still a preferred way to bury large amounts of surface material and leave a clean, level seedbed for the following crop. And although minimal cultivation has become popular over the last 15 years – some farmers are having a rethink – the inversion achieved by ploughing is an efficient way to deal with pernicious weeds such as blackgrass. Younger farmers may not be familiar with strange names like frogs, saddles, shins, skimmers and landsides, but most will know that the mouldboard is the key part of the plough that inverts the soil profile to leave the brown side pointing up. Mouldboards come in a wide range of profiles to suit soil depth or soil type, and are traditionally made of high quality, close-grain steel. But for 25 years some companies have offered ‘plastic’ boards, largely aimed at very sticky soils. Recent developments in plas-

tic and polymer technologies have renewed the interest in plastic mouldboards, with their distinct advantages over steel versions. Plastic Repairs and Fabrication, of Whanganui, recently celebrated 10 years of making plastic boards. Its range offers replacements for European brands such as Kverneland, Overum, Kuhn and Lemkin, and for NZ-made plough brands such as Clough and Duncan -- often for older, forgotten styles. The company says a key benefit of its polyethylene polymers is a significant weight saving over steel versions. While steel mouldboards typically weigh 22-25kg each, plastic ones may weigh only 4.5kg. Add this up on a 5-furrow, reversible that

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carries 10 mouldboards, and a saving of about 200kg can be made -a lot of weight to be hanging a long way off the back of a tractor. Plastic mouldboards also have a very low coefficient of friction as soil passes over them, meaning less power is required. This offers fuel savings of 7-10L/ hour which easily covers the slightly higher cost of these units. Add to this high impact strength and excellent abrasion resistance, and plastic looks like it might offer a great alternative. The manufacturer claims plastic will outlast steel by about 25%. “Our mouldboards are made in NZ for NZ conditions,” PRF’s Vaughan Dawson told Rural News. www.prf.co.nz

RURAL NEWS // AUGUST 21, 2018

MACHINERY & PRODUCTS 39

Steel yards safer and ease cattle flow markd@ruralnews.co.nz

TE PARI Products, well known here and offshore, has since its founding in 1980 by Pete French, been in animal handling gear. And the Oamaru firm has since gone into animal husbandry tools, e.g. docking irons, dehorners and more lately the Revolution self-powered dosing gun. But its well-designed and manufactured cattle handling equipment and yards have become more topical with the changes in 2014 to health and safety regulations, and the sobering fact that 15,000 people are injured in NZ each year in animal-related accidents. Te Pari chooses to manufacture from steel rather than timber for its yarding. It uses NZ-made oval steel tube (Cattlerail) for its horizontal rails, reckoned as strong as squaresection material but with a large, flat side to the profile making it animalfriendly and anti-bruise. Handling is easy by one person. The curved, narrow pens encourage animals to move to the front of the yards, while circular forcing gates allow users to reduce the pen size and keep animals moving.

back to understanding a key aspect of animal psychology: broad, wooden rails obstruct an animal’s vision, causing it to hesitate to move forwards instinctively because it cannot see an exit.

Also, timber warps, cracks, weakens and ultimately breaks, so such yards need more maintenance. Te Pari says the ultimate consideration for a steel yard design goes

The curved, narrow pens encourage animals to move to the front of the yards.

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The company offers a range of standard layouts and purpose-built designs to suit individual situations, calling on experienced staff in-field and at base. An example is Ian King, with 20 years of experience working with tools and steel; he understands the possibilities of steel so can incorporate technical requirements into his designs. Using CAD software, King turns the company’s sales team’s requests into working layouts. “I try to think like a cow; their greatest emotion is fear so I work to influence the way cattle will respond to handling,” he explains. “This includes taking in points such as unfamiliar surroundings and areas of shadow.” King says many other products in the market hark back to designs and materials of 50 years ago – often long straight races and square pens. Te Pari prefers steel over timber because the latter needs to be concreted in place, leading to ponding at the base of posts and consequent rotting. The company believes timber designs cannot be easily adapted and the construction methods mean they can’t be moved.

MARK DANIEL

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JOHN DEERE has updated its MY19 9R, 9RT and 9RX tractors. This includes for the first time a 120-inch track spacing option on 9470RX, 9520RX, 9570RX and 9620RX tracked farm tractors equipped with 30 and 36-inch tracks. The wider stance is said to be ideal for controlled traffic and it enhances stability on hilly terrain; it also makes daily maintenance and routine servicing easier. Users wanting to operate 9RX units with 3PT hitches must use the 87-inch track spacing option with 30-inch tracks because as the 120-inch track spacing is not compatible. There is also the option of the maker’s factory or fieldinstalled hydraulic Intelli-

gent Power Management system that boosts tractor performance when operating implements requiring continuous hydraulic power. Designed for air seeding using large drills and air carts, the system provides an extra 25hp in gears 5 through 18 and adds 50hp more in gears 1 through 4. This enables the machine to pull heavy loads in tough conditions. This system is available for MY19 9620R and 9620RX tractors fitted with the 435L/minute dual hydraulic pump. It is not compatible with a threepoint hitch set-up. With the same operating conditions in mind, a dual-pump specific control valve has eight SCVs: three with three-quarterinch SCVs, and five with half-inch SCVs. The larger couplers allow an extra 26.5L/m of hydraulic oil

flow to reduce restrictions to fan motors, and makes it quicker to raise and lower the frames in the field. In other news from the green machine camp, Deere and Co. has recently agreed to buy PLA an Argentinian private manufacturer of sprayers, planters and specialty products for agriculture. Founded in 1975, PLA was the first maker of self-propelled sprayers in Latin America; it employs 450 people and sells its products worldwide. This acquisition follows JD’s 2017 buyout of the Italian sprayer builder Mazzotti which built its first selfpropelled unit in 1987. These machines are said to hold an 85% home market share, while also making skid-units for, e.g. Kverneland’s iXdrive sprayers.

VLAD THE HARVESTER RURAL CONTRACTORS of New Zealand (RCNZ) tells us it is short of skilled operators for high value agricultural machinery, an issue that might warrant a quick call to the Kremlin. Russian president Vladimir Putin, reaffirmed in power with 77% of the vote, was recently spotted on a tour of the Rostselmash factory at Rostov-onDon to see harvesters rolling off the production line. Better known in Australasia for its Versatile, high-power tractors imported and distributed by Power Farming Wholesale, the Russian company has expanded fast since 2011. Government initiatives supporting exports and R&D have helped the firm to a range of 150 different machines or models. The Russian company’s origins date

back to the 1920s when it made basic implements such as ploughs. In 1930 it decided to build grain harvesters, first the Kolkhoz, then the Stalinets that were exported from 1932. In 2007 Rostselmash took over the Canadian large tractor and 4WD manufacturer Versatile, a brand it uses to sell Russianmade headers into the west. During his visit, Putin watched harvesters being made and got a chance to try his hand on a combine harvester simulator, ‘harvesting’ cereals under the guidance of a company trainer. He joked, “If I don’t get re-elected next time, I’ll become a combine harvester operator.” So RCNZ might like to offer Vlad a job, although Rural News suspects the incentive of a ‘slab’ might need replacing with a case of vodka. – Mark Daniel

RURAL NEWS // AUGUST 21, 2018

MACHINERY & PRODUCTS / WORKSAFE 41

Communication key to on-farm safety MARK DANIEL markd@ruralnews.co.nz

WARMER WEATHER and longer days mark the signs of spring approaching and – with it – the promise of more grass and increased production. It also brings the likelihood of more visitors to the farm – including advisors, friends or contractors. It is a sobering thought to learn that between 2000 and 2015, 89 contractors or working visitors lost their lives in agricultural accidents. In almost all these cases involved some form of vehicle or machine. Therefore it’s a good time to think about a spring clean, not just for the farm, but also for health and safety guidelines. In particular, for visitors coming on to a property. Landowners, farmers, advisors and contractors, will each have overlapping duties regarding health and safety. This means that they will all need to communicate ahead of any jobs, or every time a working visitor comes to the farm. Farmers should ensure they know when advisors or contractors are on the farm – some will use a sign-in and signout system, others might prefer to meet personally or to have a quick phone or text. Prior to any work starting, the visiting worker must be made aware of potential danger areas or risks that they

would not normally expect. Examples would be unmarked holes or ditches in the area they will be working, unstable land or areas where spray with a withholding period has been used. If a track is particularly tricky, the farmer might warn about things like blind brows or corners and note the need to keep speed down. They also need to ensure that all farm buildings and work areas are safe, as well as ensuring that any activities that might put visitors at risk are either stopped, eliminated or minimised. For their part, contractors should ensure that the farm owner or manager, workers and other visitors are familiar with the scope of the job they are undertaking – such as the area being worked and the need to keep well away from working or

Use your common sense? Makes sense at first glance, but relying on the common sense of visitors to a farm isn’t enough these days. A far more comprehensive safety induction for visitors such as contractors is advisable, clearly communicating all the various risks on your farm. The bottom line is that both farmer and contractor must evaluate, eliminate or minimise risks if they can do so, and if it is not possible, manage those risks to the extent that they can influence and control the problem. IMAGES COURTESY OF GATEPLATES & SIGNS LTD, WWW.GATEPLATES.CO.NZ

moving machinery. Everyone on the farm, including visitors, should let each other know of any activities that they believe to be dangerous. This may mean a farmer setting speed limits for tractors and trailers during silage making, or the contractor excluding any visitors from a paddock being harvested. The bottom line is that both farmer and contractor must evaluate, eliminate or minimise risks if they can do so. And if this is not possible, manage those risks to the extent that they can influence and control the problem. It all starts with good communication. This can be by phone, or preferably by face to face contact, and – if necessary – with a walk around the

area the visitor will be working in. This should help establish an understanding of problem

areas, who is responsible during these operations and – ultimately – to prevent any gaps in man-

sort of communication on the day the work starts to make sure situations haven’t changed and – if they have – an agreed a new plan of action. On the day of the work, make sure everyone on farm knows who is doing what and where. Ensure everyone understands the farm emergency plan, that communication methods are available and that there are agreed emergency procedures if an accident should happen. All this should ensure that owners, farmers, contractors and their staff are given the best opportunity to return to work over the coming days, weeks and months.

aging health and safety. If there are expected types of behaviour, or sets of farm rules, then the visitors should be made aware of these in advance. Much can be achieved by planning, looking at each likely stage of the job being contemplated, agreeing who will take control to mitigate or eliminate the risk, and clearly understanding the implications on the businesses and staff. This conversation can happen in the lead-up to the work, but it is always a good idea to have some

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42 MACHINERY & PRODUCTS

Touring around in comfort ADAM FRICKER

OKAY HOLDEN, you’re not fooling anyone with your raised ride height and plastic wheel arches;

the Calais-V Tourer is no off-roader. But that’s okay because most of us don’t even take our real SUVs on any surface more

taxing than a dirt road or grass verge anyway. And the Tourer does a great job of what it is really designed to be, a luxurious executive express.

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more as an ‘all road’ vehicle than off road. Some Australian journalists have tried taking this off road but didn’t get very far. The lift in ride height is a bit token, as are the rugged plastic bits, however the overall affect gives the car a purposeful stance. It’s a great looking package and the Tourer treatment sets it apart visually from the lesser rep-mobiles in the Commodore range. It’s also genuinely lavish, as it should be for $69,990. The specification levels are high and include full leather, moon roof, active cruise control, LED lights, heated seats and plenty more. The technology underneath also impresses, especially the torque vectoring all wheel drive system which makes the Tourer far more athletic than you’d credit for a big car. Ride quality is great, the extra suspension

travel absorbing anything New Zealand’s variable road quality can throw at it. That’s not surprising as the Commodore range spent its formative months being tuned for Australia’s also-crap roads. Mumbo comes from a 235kW, 381Nm V6, via a 9-speed automatic transmission and all wheel drive – a power train suited to a luxury express. Plenty of power when you need it and effortless for the other 95% of the time. And traction to burn, making light work of wet conditions and gravel roads. A powered tail-gate rises to reveal a massive boot. Forward of that is spacious accommodation for five, although it’s not quite as wide across the back seat as the previous all-Australian Commodores. Well suited to family life if you want a versatile, big wagon but don’t want an SUV.

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GLOBAL GPS specialist Topcon has raised the bar in launching its Auto-Turn and Steer-to-Boundary functions in some of its GPD guidance kits. These were until recently available only with guidance packages from mainstream tractor manufacturers. Designed to work with version 4.02 of the horizon software used in the X25 and X35 consoles -- as the name suggests -- Auto-Turn allows tractors, sprayers and headers to make fully autonomous headland turns, choosing alternating, in-fill, and single-direction in-fill patterns. The system works by looking at implement dimensions, comparing it to space available at the headland, then calculating the best turning path to position the vehicle accurately for the next pass or bout. The Steer-to-Boundary function works by guiding the vehicle along a pre-recorded field boundary, while understanding the implements working width to ensure full ground coverage. Both functions can help reduce soil compaction on headlands, as they allow precise, repeatable wheel placement for each operation, in effect not dissimilar to a controlled traffic regime. Steer-to-Boundary is offered as a standard feature with the Horizon 4.02 software, while Auto-Turn is a paid-for upgrade. – Mark Daniel

RURAL NEWS // AUGUST 21, 2018

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$55

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BIB OVERALLS

JACKET

valued at $230

valued at $160

100% Waterproof Fleece Collar

earthwalk.co.nz

Rubber Safety Matting • ATV Carrier Mats • Exit/Entry Areas • Calf Trailers • Horse Floats & Trucks • Weigh Platforms • Bale Mats • Comfort Mats for Wet & Dry Areas • Utility Deck Matting

CHEQUES

please add $12 freight per order

Check out our websites www.ruralnews.co.nz www.dairynews.co.nz

www.vetmarker.co.nz

Free Range & Barn Eggs SUPPLIERS OF:

• Nest boxes - manual or automated • Feed & Drinking • Plastic egg trays

The magic eye sheepjetter since 1989

Quality construction and options • Get the contractors choice Featuring...

QUALITY PRODUCTS MADE IN EUROPE OR BY PPP

❖

OUTSOLE STITCHED TO UPPER

rainwear Xs-xxxl boots 6-9

EPOXY FLOOR REPAIR Cretex™ TR Epotread™SL250 TROWEL GRADE EPOXY FILLER

EPOXY SCREED FOR ERODED FLOORS

Non Toxic, Solvent Free Chemical Resistant Self smoothing, easy to spread Covers eroded & pitted floors

GIBB-GRO FAST GRASS

5.85 per hectare delivered

$

plus GST

Ph Brian Mace 027-438 9822 www.gibb-gro.co.nz

SIMPLE TO APPLY !

DOLOMITE

NZ’s finest BioGro certified Mg fertiliser For a delivered price call... 0800 436 566

ORDERS AND ENQUIRIES Ph:

0800 542 542 WEBSITE:

RegisCoatings.co.nz

REGIS COATINGS

* Whole House * Town or Tank Water * Chlorine Removal * No Expensive Cartridges * Installer Network SHOP ONLINE

4

PH 09 376 0860 - www.jder-cintropur.co.nz

Fix it with Fuel Right.

CRAIGCO SENSOR JET

DEAL TO FLY AND LICE

Fuel Right Right isis the complete Fuel diesel diesel system treatment that that deals deals with diesel bug and expensive andkeeps keeps your your expensive equipment running equipment running smoothly smoothly and and efficiently. efficiently.

• Cost Effective • Complete Package

• Easy assembly • Strong and durable

• NZ made since 1980 • Grow all year round

• Unbeatable pricing • Performance Guaranteed

P 06 835 6863 - www.craigcojetters.com

Culvert Pipes New Zealand’s CHEAPEST Culvert Pipes! FREE joiners supplied on request. ONE STOP WATER SHOP 300mm x 6 metre ................................ $410 400mm x 6 metre ................................ $515 500mm x 6 metre ................................ $690 600mm x 6 metre ................................ $925 800mm x 6 metre .............................. $1399 1000mm x 6 metre ............................ $2175 1200mm x 6 metre ............................ $3475 ALL PRICES INCLUDE G.S.T.

Steel Toe Sold Out of size 9

Water Filter Systems

Got Diesel Bug in your Farm Tank?

Ph: 0800 777 551

Steel Toe

Quality Greenhouses

– www.electrodip.com

J000060_BDMA Revolution

A trusted name in Poultry Industry for over 50 years ❖

07 573 8512 | dipping@electrodip.co.nz

www.fuelright.co.nz PH: 0800 777 551

Plain Toe Sold Out of size: 6

Incredible adhesion Rapid cure Chemical resistant Extremely hard in 6 hours

(362 537)

Phone: 0800 80 8570

• Incredible chemical economy • Amazing ease 1500+ per hour • Unique self adjusting sides • Environmentally and user friendly • Automatically activated • Proven effective on lice as well as fly • Compatible with all dip chemicals • Accurate, effective application

SIZES:

0800 DOCKER

FLY OR LICE PROBLEMS?

valued at $110

Plain Toe Sold Out of size: 6

100% NITRILE RUBBER OUTSOLES

Docking Chute

www.burgessmatting.co.nz

$39

valued at $110

earthwalk, r d 2, palmerston north

VETMARKER

SLIP ON

$39

valued at $145

Flexible Acid Resistant Durable Seams

*SAVE $174 ONLINE

lace up

LEGGINGS

• Lightweight, easy to install • Made from polyethylene

McKee Plastics Mahinui Street, Feilding Ph 06 323 4181 Fax 06 323 4183

sales@mckeeplastics.co.nz | www.mckeeplastics.co.nz

T/F 03 214 4262 E info@morrifield.com

www.morrifield.com Phone

0800 625 826

for your nearest stockist

Joiners supplied FREE with culvert pipes

Sharpen up burndown of 60+ weeds Fast control of the toughest broadleaf weeds crop-solutions.basf.co.nz

ALWAYS READ AND FOLLOW LABEL DIRECTIONS. © Copyright BASF 2018 ® Registered trademark of BASF. BASF215314. 08.2018