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MACHINERY & PRODUCTS
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Ag training left in limbo.
The best of both worlds.
New irrigation head plans to win hearts, minds and ‘Soals’ PAGE 8
PAGE 6-7
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TO ALL FARMERS, FOR ALL FARMERS JANUARY 15, 2019: ISSUE 668
www.ruralnews.co.nz
NZ gets the cream PETER BURKE peterb@ruralnews.co.nz
A REPORT commissioned by the Dairy Companies Association of NZ shows how important the dairy industry is to NZ’s living standards and how the sector plays a crucial role in supporting regional economic development. The report was in support of a DCANZ submission to a Ministry of Foreign Affairs-led effort to develop a new, comprehensive trade strategy for the NZ export sector. DCANZ executive director Kimberly Crewther says while many people will already know that dairy is NZ’s largest export sector, the report shows how its $17 billion of revenue is shared across the economy, as income and a driver of economic activity. Dairy is vital to many regions with few economic options, she says. Almost 80% of wages earned in rural areas are from dairy industry work. “Dairy is the top income generator, delivering 10% of GDP in Waikato, Southland, West Coast and Taranaki,” Crewther told Rural News. “It is also the second-largest con-
tributor to economic activity in Northland and Manawatu and the third-largest in Canterbury and Bay of Plenty. “The sector is also highly linked to the Maori economy with an estimated 10% of industry assets being in Maori ownership.” The report shows dairy directly employs 38,000 people and many others in supporting industries, has the
highest average salary amongst agricultural industries and the highest average salary level of NZ’s food manufacturing industries. Crewther says dairy manufacturing has the fifth-highest average female salary level of all 138 of NZ’s industries. She says dairy manufacturers have invested at least $3.1b in processing facilities in recent years and this will maintain the trend of adding value to
NZ milk and the resulting economic revenue generation. “For example, infant formula has grown to a billion dollar export industry and within more traditional product categories – like cheese, butter and milk powders – NZ dairy exporters have shifted from standard products to speciality ingredients, including supplying the growing food service and bakery industries in key markets.”
Working holiday Two Northern Ireland mates on a working holiday load up freshly cut baleage alongside State Highway 73 near Sheffield, inland Canterbury, as the summer harvest season picks up. Reuben Caskey and Aaron Connell are here on five-month working visas, working for a local contractor in jobs they found by word-of mouth. Caskey says working here doesn’t make him much money, especially after the costs of visas and air fares, but it’s a good experience and a stress-free holiday compared with the family farm back home. RURAL NEWS GROUP
MEAT AND DAIRY JOIN KEY PLAYERS in livestock farming have joined other primary sector organisations and the Government in the biosecurity fight. DairyNZ and Beef + Lamb NZ recently agreed to join the Government Industry Agreement for Biosecurity Readiness and Response (GIA). The final step in the process was the signing of the GIA deed late last year. The GIA partnership is made up of 21 industry sectors working with the Government and each other to deal with pests or pathogens specific to their primary industry sectors. This includes the livestock processing sectors, as represented by Dairy Companies Association of NZ and the Meat Industry Association of NZ. DairyNZ’s chair, Jim van der Poel, says formally joining the GIA gives dairy farmers an important say in decisions on biosecurity issues. “The recent M.bovis outbreak has put a spotlight on the importance of industry and Government working closely together to deliver better biosecurity outcomes for farmers. This will give us the best chance of eradication.” Andrew Morrison, chair of BLNZ agrees, saying “the industry welcomes the signing of this agreement as a positive step forward so that we can protect dairy and red meat and animal product exports”. GIA’s deed governance group chair, Jen Scoular, welcomed the two industry groups to the partnership.
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RURAL NEWS // JANUARY 15, 2019
NEWS 3 ISSUE 668 www.ruralnews.co.nz
Another rebel wins election SUDESH KISSUN sudeshk@ruralnews.co.nz
NEWS ��������������������������������������1-15 AGRIBUSINESS ���������������� 16-17 MARKETS ���������������������������18-19 HOUND, EDNA ���������������������� 20 CONTACTS ����������������������������� 20 OPINION ��������������������������� 20-22 MANAGEMENT ���������������23-25 ANIMAL HEALTH ������������26-27 MACHINERY AND PRODUCTS ���������������������� 28-30 RURAL TRADER �������������� 30-31
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CANTERBURY FARMER John Nicholls last month became the second farmer-nominated candidate to win a seat on Fonterra’s board. Nicholls was the victor in the second director election, getting 53% support from shareholders. His opponent Jamie Tuuta got 37% support. Nicholls’ election means Fonterra farmers have elected only one of the three candidates recommended by its directors and the Shareholders Council. The outcome also raises questions about the independent selection panel which interviews potential candidates and recommends them to the board and council.
The three-member panel is chaired by independent Dame Alison Paterson and includes board nominee John Spencer and council nominee Tony Carter. Outgoing Zespri chairman Peter McBride was the only successful candidate recommended by the panel. McBride was successful in the first election along with Leonie Guiney who, like Nicholls, self-nominated with the backing of farmer shareholders. Former Fonterra director Ashley Waugh – who was unsuccessful in the first election and did not stand in the re-vote – and Tuuta were recommended by panel. The first election saw only two successful candidates declared, forcing the council to run a second election to fill a third vacancy on the
Newly-elected Fonterra director John Nicholls.
A SELF-MADE FARMER ALONG WITH his wife Kelly, John Nicholls owns the Rylib Group, which has six dairy farms in the Hinds area of Mid-Canterbury. A former Shareholders Council member, Nicholls is also chair of MHV Water, an irrigation cooperative supplying water to 50,000ha in the Ashburton district. Nicholls emphasises his track record of success in growing the business from small beginnings. The couple started in Wairarapa where they converted a property with seed capital from his parents. “Wairarapa was a really hard place to farm. You only ever made money one in every three years without irrigation water and it taught us a lot of lessons. The second year in, our advisers were telling us to not continue this journey.” Seeing opportunity in Mid-Canterbury, they moved south in 2005, buying two farms in their first year. Their six farms now employ 30 staff, milking at least 5000 cows and producing 2.5 million kgMS.
Harvest looking like hard work CROPPING FARMERS have had to put up with an unusually wet start to summer. Richard Porter, who farms 500ha at St Andrews, south of Timaru, told Rural News his wheat was “looking fantastic” a month ago, but he is now
struggling with fusarium brought on by the wet. Peas on heavy land are also having problems with wet feet, he said, quipping that he is now “reasonably pessimistic”. “They won’t be harvested for
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declared the final result of the second 2018 election on December 20. The voting return was 64.10% by milk solids, being 5324 votes cast by 9347 shareholders of whom 79.19% voted via the internet and 20.81% by post.
board. Returning officer Warwick Lamp, of electionz. com Ltd,
another month yet, but just looking at them I can tell already that some aren’t looking very good.” Porter’s neighbour, Miles Anderson, said the wet November and December resulted in such boggy paddocks that he had to use a neigh-
bour’s tracked header to get a winter barley crop in. “Otherwise I’d be waiting for weeks. I know a lot of people on the heavier country are having trouble harvesting their barley because of the ground conditions.” – Nigel Malthus
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RURAL NEWS // JANUARY 15, 2019
4 NEWS
Summer flush prompts lamb delay NIGEL MALTHUS
THE UNUSUALLY wet summer so far means a flush of feed NZ-wide, says Alliance Group chairman Murray Taggart. He says farmers are “understandably” hanging onto stock, particularly lambs, trying to make them heavier before they go to the works. “Normally we would
the value of a co-operative. He told the meeting that widespread dry weather across most of New Zealand through the 2017-18 summer saw the company maximise processing capacity to help farmers de-stock lambs, and held farmgate pricing to support shareholders when they needed it most.
“Sometimes it takes these extreme events to reinforce the wider benefits of a co-operative. There was the inevitable ‘hole’ in lamb supply once the drought broke and it would have been easy to back off capacity at that time and save costs.” be under more pressure to process stock early in the season, but when there are good feed conditions farmers are holding off a bit more,” Taggart told Rural News. “There’ll be quite a few farmers on holiday over the break, but once they get back into it in the new year there’ll be the usual flow of animals. That’ll probably be a bit stronger than perhaps it would normally be at this time of year, given that it wasn’t quite as strong just before Christmas.” Conditions were in a marked contrast to the drought at the same time last season. Taggart was speaking after the Alliance Group’s annual meeting in Dunedin on December 18, when he told shareholders that extreme dry conditions and the resulting erratic stock flows over the past year underlined
Alliance also assisted its shareholders by moving at least one million head of store stock, all commission-free. “Sometimes it takes these extreme events to reinforce the wider benefits of a co-operative. There was the inevitable ‘hole’ in lamb supply once the drought broke and it would have been easy to back off capacity at that time and save costs. “The downside would have been restricted autumn processing capacity, just when our shareholders needed to reduce onfarm numbers to winter levels. Clearly this would have been unacceptable for our farmers, so we stuck to our co-operative principles and ensured we were in a position to assist farmers to maximise the value of their stock.” He said 2018 was also
Farmers have been able to hold on to spring-born lambs longer this season due to the unusually wet summer and flush of feed available.
a challenging year for beef with softening international prices slow to be reflected at the farm gate. “Demand for processing capacity soared in early autumn when Mycoplasma bovis, a delayed bull kill and the cull cow kill all coincided. It highlighted that in extreme events we will never have enough capacity to accommodate everyone’s needs.” However, Taggart said that when the business performance was considered aside from the climatic challenges of the past year, Alliance was pleased with progress. “A lot of that’s not obvious to people looking in from the outside but there’s certainly been
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Alliance Group chair Murray Taggart.
a real lift in performance within the business and we think that’ll become more obvious as we move
forward.” Taggart said Alliance was determined to improve on the $8 mil-
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NEWS 5
Kumara saviour dies PAM TIPA pamelat@ruralnews.co.nz
WELL-KNOWN AUCKLAND kumara grower Fay Gock, the winner of horticulture’s Bledisloe Cup in 2013, died just before Christmas on December 21, aged 85. Fay and her husband
Joe are credited with having saved the kumara when black rot threatened to obliterate the industry in the 1950s. They gifted their disease resistant strain to the nation, refusing to take any money for it. Fay was still working in their market garden
RUSH FOR A SLICE OF THE CHERRY PIE MYFARM HAS bought a 96ha property in Central Otago for its first cherry development. The rural land investment company’s chief executive Andrew Watters says at least 60 New Zealanders have invested $10.5 million in the development. But he told Rural News they are still raising the last capital for the Central Cherry Orchard Limited partnership so an investment opportunity remains. “We are planting the first of our cherry trees in 2019 and expect them to be in full production in 2027. However we will get about one third of a crop by 2023-24,” he says. “It is a long time but the product, which is large (30mm) tasty cherries should be superb and in high demand.” Development will begin on the bare land block in the Waikerikeri Valley, north of Alexandra, this autumn. NZ export cherries are recognised for their exceptionally high quality and freshness. This season it’s estimated 1.9 million 2kg boxes of cherries will be picked and airfreighted fresh to China and elsewhere in Asia to arrive in time for Chinese new year on February 5. Watters says the Central Otago development, launched in late November, is the first cherry investment offer by MyFarm. “Investment prospects for the NZ horticultural sector are particularly strong right now. The world wants our high quality, healthy produce and cherries’ time has come with that. We are witnessing a significant increase in export demand that this venture is going to help meet,” says Watters. – Pam Tipa
with Joe when she died peacefully after a sudden illness. The Gocks have grown kumara for at least 60 years and were the largest growers in New Zealand in the 1950s. They were the first to raise kumara tubers by using underearth heating in modern hotbeds. They developed a disease-free kumara strain which became known as O-wai-raka Red. In the late 1950s theirs was the only disease-free stock in Auckland. When Ruawai and Dargaville stock was devastated by black rot they donated their stock, through the then Department of Science and Industry Research (DSIR) to help re-establish crops.
Joe told Rural News in a 2013 interview that they had developed the disease-free stock through vigorous testing, keeping the best each year. They also pioneered, with DSIR, a prototype kumara curing shed, reducing crop loss from 50% to less than 1%, enabling kumara to be marketed all year round. The horticultural industry pioneering couple said then that adversity makes you struggle and look for answers. They were the first in the world to put stickers on fruit, they grew seedless watermelon, and they pioneered using chilled polystyrene boxes to export broccoli.
Joe and the late Fay Gock pictured in 2013.
In 2013 they won the horticulture industry’s highest honour, the Bledisloe Cup. And they won an award from the Dominion Federation of NZ Chinese Commercial Growers “in recognition of your lifetime of innovation and contribution
to the horticulture industry”. Fay Gock then was still driving the tractor on their 60ha property. Both born in China, they came separately on refugee permits to New Zealand at the end of World War II. They married
in 1956, when Joe was market gardening with his father in Mangere and Fay was the daughter of a Karangahape Road, Auckland, fruiterer. The Gocks started their own growing business and a partnership of innovation which has led the industry.
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6 NEWS
Ag training left in limbo PETER BURKE peterb@ruralnews.co.nz
THE FUTURE of the major agricultural training institute Taratahi remains in limbo after it went into interim liquidation just before Christmas at the request of its board of trustees. David Ruscoe, of the liquidator Grant Thornton International, told Rural News that they are still working through the issues facing the institute, which has residential campuses in Wairarapa, Reporoa and Telford. Taratahi employs up to 250 people, owns two farms, leases another five and manages another property. It trains about 3000 people each year. “We are working with the board, management, Tertiary Education Commission (TEC), NZQA, MSD, MPI and other agencies to provide the appropriate support for staff and students,” Ruscoe says. “Students will be contacted by Taratahi, the TEC and other providers and will hear about the options available to them for continuing their education.”
According to the liquidator, Taratahi is facing financial and operational pressures caused by declining student numbers, resulting in funding cuts. It has spent a lot on student support and learning, and has reduced its operating expenses. However, Grant Thornton Inter-
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national says despite government subsidies and cashflows from its farming operations, the costs of educating each student still exceeded the funding based on its operating model. Taratahi chair Mavis Mullins says the decision is distressing for the staff and board, which would have cele-
brated 100 years in 2019. She says the board considered the interim liquidation as the most responsible decision to protect its staff, students, creditors and other key stakeholders. “Our main concerns are for our students, staff, animal welfare and our creditors and partners,” she says.
NATS SLAM GOVT ATTITUDE NATIONAL SAYS the government has turned its back on the agricultural training provider. MPs Paula Bennett and Nathan Guy say the government is bribing students into tertiary education through its feesfree scheme and yet is allowing this large training provider to fold. Bennett says this will hit hard the 900 students and 250 staff who were due to start and run courses at Taratahi this summer. “We believe Taratahi approached ministers for $4 million to keep it afloat, but this government has failed to support it. Taratahi needed just a fraction of the $2.8 billion fees-free bribe or the $3b Provincial Growth Fund and yet ministers couldn’t find the money to keep Taratahi training students while it worked through its issues,” she says. National’s agriculture spokesperson Nathan Guy says the performance of the primary sector is critical to our economy, and that depends on having well qualified, motivated and high-quality workers. “We hope Taratahi can be salvaged. The agricultural sector is dependent on farming graduates to serve the industry. Taratahi plays an important role in providing those graduates,” he says.
RURAL NEWS // JANUARY 15, 2019
NEWS 7
The model is broken – Govt PETER BURKE peterb@ruralnews.co.nz
MINISTER OF Education Chris Hipkins concedes the timing of the interim liquidation is tough, especially for students and staff, and he says supporting them is a top priority. Hipkins says the TEC will work with Taratahi, NZQA and StudyLink to support students in alternative options. Staff will also be supported. “The financial problems surfaced at Taratahi in 2014 when it was not providing the teaching it was funded to deliver between 2009 and 2014. As a result, Taratahi was left with debts of
Agriculture Minister Damien O’Connor says he’s saddened by Taratahi’s troubles.
$7.5 million due to underdelivery – in addition to hefty private sector debt it had incurred. Taratahi has repaid $3.5m of that, mostly by selling assets, but this is not a sustainable model.” Hipkins says the gov-
ernment is “taking steps” to secure the home farm and is talking to providers to fill the gap in provision for students. But he says it’s clear the current model for vocational training for primary industry is broken and
that the government plans to solve this for continuity in training students. “We are looking at new models of primary industry training as part of the Vocational Education Training Review.” Minister of Agriculture Damien O’Connor says he’s saddened and disappointed that Taratahi, a proud agricultural training organisation, has been found unsustainable. “I am committed to primary sector training. We will continue working with industry on a plan for agri sector training that meets the needs of the industry now and into the future,” he says.
Taratahi chief executive Arthur Graves.
PROBLEMS SEEN IN 2018 THE PROBLEMS at Taratahi were laid open in August last year when the chief executive, Arthur Graves, told Rural News that as the farming sector generally was going through a reset so was Taratahi. He said it was a financially tough time with student numbers down, yet Taratahi still had to spend money on reshaping courses to attract young people and to match the reset in the farming industry. Graves said all vocational trainers
were short of enrolments and the market was “tight and competitive” for students. Graves told Rural News the construction industry was winning the hearts and minds of young school leavers who were heading for the big cities and not life in the country. He also noted that at the heart of the problem was demographics -- low numbers of school leavers due to the low birth rate prevailing for years.
19/12/18 3:38 PM
RURAL NEWS // JANUARY 15, 2019
8 NEWS
New irrigation head plans to win hearts, minds and ‘Soals’ PAM TIPA pamelat@ruralnews.co.nz
THE PUBLIC are a lot more aware and educated about water and the environment, according to IrrigationNZ’s newly appointed chief executive Elizabeth Soal. IrrigationNZ has recognised the increasing public awareness and the board has developed a new strategic plan. Part of her role will be to implement that plan, Soal told Rural News. She will start work in February. The plan will be responding to the changing landscape the irrigation sector is operating in. “There has been a lot of work in Canterbury and Otago and other
regions to address some of the issues on water use and the implications of land use change and similar,” she says. “IrrigationNZ and the wider irrigation sector have been heavily involved in a lot of these processes. Essentially it is about looking into the future for the next five to 10 years and asking ‘what are the issue we need to address?’ “And we must be in a place to be able to respond to the changing regulatory regime nationally and regionally and what that means for our member schemes and individual irrigators.” Soal says the strategy has different components, notably developing a robust information
base, advocating strongly on members’ behalf, getting water storage onto the national agenda and setting standards. “IrrigationNZ has always been at the forefront of setting standards for the irrigation service industry and technical standards. “Essentially it is about ensuring irrigation in NZ provides for a sustainable future for the country as a whole.” Soal has worked as a policy advisor for the Ministry for Social Development on social, economic and labour market issues. She then moved into her current role as director of strategy and policy with the Waitaki Irrigators Collective which deals with water
Incoming Irrigation NZ chief executive Elizabeth Soal.
related policy in North Otago. With the IrrigationNZ appointment, Soal says
she is taking the next step in working more at the national level on similar sorts of issues. “I am excited about the opportunity and challenges ahead. The irri-
gation sector is vitally important to NZ’s wellbeing and fundamental to a lot of rural communities. “Being able to be part of those discussions at the national level as we tackle some of these big issues around water is exciting. I can’t wait to be a part of it.” Nicky Hyslop, IrrigationNZ chair, says the new strategy will include advocacy; encouraging innovation through sharing ideas and adopting new technology; developing a robust information base; enabling the irrigation sector, researchers and decision makers to make better decisions; and creating world‑leading irrigation standards. “Elizabeth has a strong background in water management, law and policy and she will
help contribute to all of these goals, but she is particularly well qualified to contribute to national discussions as we seek to solve complex issues in water allocation.” Soal has worked as the director of strategy and policy at Waitaki Irrigators Collective for the past eight years. She also served on IrrigationNZ’s board from 2011 to 2016, and until recently she sat on the technical committee of the International Alliance for Water Stewardship, based in Edinburgh. Soal has graduated in politics and law from the University of Otago, and is now working on a PhD looking at freshwater governance in NZ. Current chief executive Andrew Curtis is leaves the role in late January.
CARRFIELDS EXPANDS CANTERBURY RURAL services company Carrfields is to take over Fonterra’s livestock division. Fonterra says it will sell its Farm Source livestock division to Carrfields Livestock with effect from March 1. Fonterra’s Richard Allen says the decision to sell was made in the context of a larger review underway within the co-op. “In the context of the review of the co-op’s assets and investments, we have decided to sell the livestock division to Carrfields Livestock. This will better serve the livestock team and the farms they service.” Carrfields Group managing director Craig Carr says the acquisition will allow the company to fill gaps in its national network. “This will take the Carrfields Livestock team to [at least] 150 livestock agents NZ-wide.” The companies are promising smooth transfer of employees and clients.
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RURAL NEWS // JANUARY 15, 2019
NEWS 9
Britain bound with Brexit on the brink PETER BURKE peterb@ruralnews.co.nz
THE EXECUTIVE director of the Dairy Companies Association of NZ (DCANZ), Kimberly Crewther, will fly to Europe in the next few days, about when British MPs are scheduled to vote on the plan for how their country will leave the European Union. Crewther says she will meet industry and government contacts in London, Geneva and Brussels as part of a normal round of talks with dairy leaders in Europe. But her visit timing coincides with huge turmoil over Britain’s Brexit plans. “I am hoping to gain
a little more certainty as to how things are shaping up,” Crewther told Rural News. “Yep, Brexit worries me because it is significant in changing trade relationships globally. There may be additional barriers between markets so it’s always a risk that it will be less favourable. “At the same time, if Brexit goes head there is the possibility for the UK to forge new free trade agreements, so while we are concerned, we are also looking for whatever opportunities may eventuate.” With the UK Brexit vote due this week there are all sorts of last minute activities. Speculation about what might happen is rife with growing fears
that Britain may end up leaving the EU on March 29 without a deal. Ireland has summoned all its ambassadors worldwide to Dublin for briefings. Irish deputy Prime Minister Simon Coveney at one briefing criticised Brexit hardliners who he says think “no price is too high to pay for their ver-
DCANZ’s Kimberley Crewther.
sion of Brexit”. He said that “in the absence of realism” the hardliners would win to everyone’s cost – most notably Ireland’s. Meanwhile, The Guardian newspaper is calling for another referendum on Brexit, saying the Government’s attempts to get a deal have failed and the
only alternative now is to put the matter on hold and vote again. The paper says in an editorial: “Brexit has never been a properly worked out policy prescription for Britain’s problems. For many Tories, it is an attitude of mind, an amorphous resentment against
the modern world, foreigners and Britain’s loss of great-power status. “This explains more than anything else why hardline Brexiteers reject all compromise, refuse responsibility for the practical options, and continue to fantasise about a no-deal outcome.”
RSE scheme to be reviewed THE GOVERNMENT will review the Recognised Seasonal Employer (RSE) system this year and industry input is welcome, says Minister for Immigration Iain Lees-Galloway. “The Government [plans to] improve the RSE system to ensure it remains responsive to the needs of New Zealand industry and the Pacific.... Consultation with industry will be an important part of assessing any future policy development for the RSE scheme,” he told Rural News in response to issues raised by the apple industry. “The horticulture and viticulture industries have experienced significant growth in recent years. Industry reports say that since 2015, apple and kiwifruit orchards have increased in value by about 70% each and the 2018 wine vintage was 2.6% larger than the previous year. “However this growth has been accompanied by labour shortages across industries and regions, notably in the past year. This is expected to continue, with growers forecasting 2600 more workers are needed to help support the industry.” The Government, through Immigration NZ, Ministry of Social Development (MSD) and economic development agencies, will work with industries to help meet labour shortages, Lees-Galloway says. “While it’s important the industry is able to access RSE workers in peak season, it’s equally important they keep their commitment to employing NZers. MSD will continue to grow industry partnerships with horticulture businesses that are providing training and jobs for NZers and grow a more skilled domestic workforce.” Last November, the Government increased the RSE cap by 1750 to 12,850 to provide labour for the horticulture and viticulture industries, he says. “NZ’s RSE scheme is a ground-breaking initiative introduced by the previous Labour Government in 2007, helping meet labour shortages in important industries while providing economic support to our Pacific neighbours.” – Pam Tipa
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RURAL NEWS // JANUARY 15, 2019
10 NEWS
Hemp/wool combo spinning a good yarn PAM TIPA pamelat@ruralnews.co.nz
INNOVATIVE NEW products using wool and hemp fibre will be developed under a new partnership between NZ Yarn and Hemp NZ. Farmers will have long-term opportunities to diversify into hemp and those already growing it will be able to sell a greater proportion of their product.
Christchurch-based NZ Yarn Ltd, a worldleading producer of wool yarns for the global soft flooring market, has announced a new shareholder and business partner -- Hemp New Zealand Ltd. Under the agreement, Hemp NZ has bought a 15% interest in NZ Yarn, and will install a plant to process hemp fibre at the NZ Yarn factory in Burnside, Christchurch.
The new partnership expects to lead in innovations in hemp fibre processing, and to develop new consumer products made from hemp yarn, wool and hemp yarn blends and non-woven wool and hemp products. NZ Yarn chairman Craig Carr told Rural News farmers are now growing hemp in small volumes but there will be more opportunities with the ability to convert the
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“Hemp has been grown in New Zealand for several years but mainly for seed which is squeezed for oil and there are by-products from that. The crop residue has been burnt or incorporated back into the soil.”
ing now and in the future. The combination of both gives unique textures and a unique story.” Carr says Hemp has many synergies with wool, as well as sustainable ethical provenance and environmental credentials.
“These qualities are of critical importance given the environmental catastrophe which synthetic fibres are contributing to,” Carr says. One of the key first products is ideally suited to the carpet industry. “We are excited by the
opportunity. It is something we can grow and add value to in our NZ economy and we can see how it can go further. These characteristics make hemp a great addition to NZ’s natural fibre marketing story alongside wool, says Carr. “We see the partnership with Hemp New Zealand as a fantastic opportunity for farmers to diversify into growing hemp and to be part of the resurgence of natural fibre, as well as the diverse future uses of hemp we are looking forward to developing with Hemp New Zealand,” he says.
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fibre into products. “The opportunity opens up now for farmers who are growing hemp for them to also sell their fibre which can be processed through the factory and made into products and incorporated into wool products. “Hemp has been grown in New Zealand for several years but mainly for seed which is squeezed for oil and there are by-products from that. The crop residue has been burnt or incorporated back into the soil.” Hemp is a strong, powerful fibre that gives opportunity to push the natural fibre story. The new Christchurch plant will be installed about September-October with full production in 2020. “A whole new line is going in there which will take a bale of hemp straw and out will come different products. It can be made into woven mats, yarn mixed with wool… there are a number of opportunities,” Carr says. They will now start looking at new products in wool and hemp and at incorporating both fibres to make unique products. “Their technical team is evaluating options and talking to high-end customers about what characteristics they are looking for. They are excited at the opportunity. “Natural fibre is an increasingly important part of the product offer-
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HEMP NEW ZEALAND’S investment in NZ Yarn signifies a major step in the growth and development of the hemp industry in New Zealand, says chief executive Dave Jordan. It will also enable Hemp NZ to set up a leading-edge natural fibre processing line, which separates hemp stalks into fibre (which can be woven and used in yarn systems) and hurd (the woody core material which has fire retardant and insulating properties and has many uses, including in the construction industry). The processing line, likely the first of its kind in NZ, will enable Hemp
New Zealand and NZ Yarn to jointly develop hemp-based and a combination of wool and hemp-based products for the consumer and industrial markets in NZ and overseas, Jordan says. “There are many consumer and industrial uses for hemp fibre and hurd. We’re excited about partnering with NZ Yarn and initially developing hemp and wool yarn blends which will provide consumers with a wider variety of products made from natural fibres,” he says. “We will also be working with NZ Yarn to investigate other uses for
the fibre and hurd, which provide an environmentally friendly alternative for a huge range of industries globally including consumer products, food and industrial applications.” Hemp fibre has a long history of human use dating back thousands of years and is now strongly resurgent globally, says Jordan. “The resurgence in popularity of hemp is based on its excellent environmental characteristics. It is pestresistant, easy to grow organically and produces a good yield of fibre per hectare compared with many other crops.”
RURAL NEWS // JANUARY 15, 2019
NEWS 11
Rural broadband increase welcomed – more needed AN ANNOUNCEMENT of increased rural broadband and mobile coverage has been welcomed by the sector organisations, but they say more is needed. Late last year, Regional Economic Development Minister Shane Jones and Broadcasting, Communications and Digital Media Minister Kris Faafoi announced additional rural broadband and
poor service that exists for many rural communities has become expected, but our members are well over it.” Hoggard said the $40m is great “but it can’t stop there”. “We need more reliable land line services. We need mobile coverage that is better than expecting someone to stand on a remote fence post on the farm and we need
“Our rural communities need better mobile coverage and rural broadband so that rural families and businesses can contact emergency services from anywhere on their properties, retain staff, and take full advantage of technology.” mobile coverage across New Zealand, taking coverage to 99.8% of the population. The additional coverage will roll out over the next four years due to the expansion of the Rural Broadband Initiative phase two/Mobile Black Spots Fund (RBI2/MBSF) programme. Faafoi said he was pleased to see broadband and mobile coverage extend even further. Meanwhile, Jones said the $40 million contribution from the Provincial Growth Fund (PGF) would ensure vital technology will be available in some of the most farflung parts of provincial NZ. Federated Farmers welcomed the rollout saying better connectivity and coverage was needed for rural business and communities to thrive. “It is good the Government will invest in delivering broadband and mobile coverage to 99.8% of the population over the next four years,” says Feds telecoms spokesman Andrew Hoggard. But the current service is sporadic, he says. “Coverage is incredibly patchy. It makes farmers, rural-based businesses and the communities they serve feel isolated. The
internet connections that remain stable day and night.” He says it is important that when completion approaches, the Government runs a review to find any gaps in service delivery and fixes them. “Rural has had enough of being the afterthought.” Rural Women New Zealand (RWNZ) agrees that the additional rural broadband and mobile coverage is good news for rural communities, but says more is needed. “It’s encouraging to read that the outcome of the tenders will take coverage to nearly 100% of population coverage however; rural communities need geographic coverage,” says RWNZ Fiona Gower. Currently only 50% of NZ’s geography is covered and RWNZ says this is where rural families live and work and they need better coverage. “Our rural communities need better mobile coverage and rural broadband so that rural families and businesses can contact emergency services from anywhere on their properties, retain staff, and take full advantage of technology in running farms, for social inclusion and education,”
Gower says. “Wireless internet service providers (WISPs), particularly rural-based providers, are vital to ensuring internet to every rural premise and it is great that this is very
nearly achieved. “RWNZ understands that it is more expensive to increase cellphone coverage due to NZ’s geography; however, by involving all the WISPs with their local knowl-
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RURAL NEWS // JANUARY 15, 2019
12 NEWS
Canterbury nutrient limits take effect NIGEL MALTHUS
ENVIRONMENT CANTERBURY SAYS the Nutrient Management and Waitaki Plan Change, Plan Change 5 to the Land & Water Regional Plan, will take effect on February 1. The nutrient management rules will apply in all catchments in the Canterbury region not currently the subject of sub-region plans. Resource consent, including audited farm environment plans, will be required if properties irrigate more than 50ha or have more than a specified amount of winter
grazing of cattle, depending on property size. Councillor Peter Skelton said the decision, made by the ECan council in mid-December, was the culmination of a three-year process setting industry-agreed good management practice (GMP) as the minimum standard for all farming activities. “The plan change deals with the effects of land uses, particularly farming activities, on water quality region-wide and ensures the effective management of water quality in the Waitaki sub-region,” Skelton said. “The nutrient manage-
ment rules are intended to address the effects of changing land use and promote improved water quality in the region,” Skelton said. “With this in mind we need to be clear about what constitutes GMP onfarm. Industry groups have now described what this means for their sector.” As a starting point, farmers should have a baseline nitrogen leaching rate that reflects GMP. “This is a requirement for farms requiring land use consent to farm,” Skelton said. “Permitted farms need only comply with the irrigation and
Email: info@hecton.co.nz Visit our website www.hecton.co.nz for a full list of products
Ecan councillor Peter Skelton.
winter grazing limits.” However, Federated
Farmers Mid-Canterbury president Michael
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appealed against the plan change, but the appeals have since been withdrawn in favour of an external working group set up to sort out remaining issues. Skelton said this group would consider some “implementation challenges” to ensure fairness and equity for all farmers without compromising environmental bottom lines. The Land & Water Regional Plan operates at two levels – a regionwide section and 10 subregions where the rules are modified in ways appropriate for each catchment.
QUAD CRASHES COSTLY MARK DANIEL
SHEEP HANDLER AND LEAD UP RACE
Salvesen said the plan change would have drawbacks both for farmers trying to comply and for ECan trying to administer it. There are many issues at many levels, he said. Overseer is a tool for compliance, but is not accurate enough to support prosecution when ECan tries to enforce the rules. It is also “throwing up some funny figures,” particularly for arable farmers, some of whom were automatically non-compliant as soon as the figures were put in. The Feds and other industry bodies had
RURAL INSURER FMG has lifted the lid on its claims for quad crashes. Over the last five years it has settled claims exceeding $12.5 million, two-thirds of them accidents and 30% attributed to rollovers. FMG reports a seasonal bias towards rollover incidents during November to January, the time when mustering and spraying are all the go, particularly on beef and sheep farms. At least 60% of rollover accidents occurred on hilly terrain, and 15% happened on wet or slippery ground. Quads two years old or newer accounted for at least half of all rollover claims, despite only accounting for a quarter of the machines insured. (It would be interesting to explore deeper to see if there is any correlation between the engine size/power and weight
of the machines, as it well known that the more powerful machines used for towing duties handle differently from lighter, less powerful machines.) While quads are popular for their multi-tasking, it appears this offers more potential for mishaps. In fact, one in five (21%) accidents happened when the rider was also doing something besides riding the machine. A momentary lapse of concentration might mean an unexpected change going unnoticed – be it terrain, ruts, mounds or even small logs. FMG says it is good practice to stop the machine before issuing commands to dogs during a muster, as the likelihood of doing it when moving means you are looking at the animals and not where you are going. The company also says it’s better to let stock to get away rather than take a quad into a situation where stability is compromised. Interestingly, FMG said nearly
20% of quad accidents happened when the rider dismounted and the vehicle rolled away under its own weight because the park brake had not been set or was ineffective. This typically happened when riders stopped to open or close gates, and when machines were left in gear with the engine running and the accelerator was inadvertently knocked. “FMG is an advice-led insurer and to help keep all quad users safe it has produced the FMG Quad Bike Advice Guide,” says Paul Ralph FMG’s manager risk advice. “This is available for all farmers and growers via FMG’s website. Information in the guide comes from our own claims data and research, and includes advice on safer handling, better awareness when driving and how to reduce the risk of theft.” @rural_news facebook.com/ruralnews
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RURAL NEWS // JANUARY 15, 2019
14 NEWS MORE WORKERS NEEDED PAM TIPA pamelat@ruralnews.co.nz
NZ KIWIFRUIT Growers (NZKGI) is creating a new role of labour coordinator as it envisages another seasonal labour shortage this year. In 2018, the Bay of Plenty kiwifruit industry at harvest time had 1200 vacancies it was unable to fill. The labour coordinator will aim to attract extra workers and increase the coordination of available labour for harvest and winter pruning. The coordinator will also maintain sustainable labour sources to support the growth of the industry in Bay of Plenty where at least 80% of kiwifruit is grown. New Zealanders will be given priority to work, particularly people from Work and Income. The labour coordinator role will be funded by the Provincial Growth Fund, the Ministry of Social Development and New Zealand Kiwifruit Growers and is expected to run through until the end of 2020. “Ensuring a sustainable supply of labour is the kiwifruit industry’s top priority. The growing appetite for our fruit means we need more people to
pick, pack and prune,” NZKGI chief executive Nikki Johnson says. “Luckily Bay of Plenty has beautiful beaches and is an attractive area to come to work.” The kiwifruit industry has also recently set out to attract more pickers and packers to work in Bay of Plenty between April and June. Its campaign targest backpackers, retirees, students and unemployed; it is sending articles aimed at backpackers to European media. The campaign is supported by kiwifruit industry stakeholders under the BOP Labour Governance Group. “NZ kiwifruit production will increase from 123 million trays in 2017 to 190 million trays by 2027. To meet this demand the industry will need at least 7000 extra seasonal workers over the next 10 years”, says Johnson. The increased labour demand stems from industry expansion coupled with low unemployment and a lack of backpackers and international students. NZKGI is also working to improve the consistency of seasonal work, accommodation, welfare, transport and perceptions of pay rates. @rural_news facebook.com/ruralnews
SOLAR SPECIALISTS
Apple crop risks going unpicked PAM TIPA pamelat@ruralnews.co.nz
A PERMANENT solution to the harvest labour shortage problem is needed for the apple industry, claims a sector spokesman. A clear allocation of recognised seasonal worker (RSE) numbers is needed long term so the industry can plan ahead, says NZ Apples and Pears’ Gary Jones. Planning and building suitable accommodation would cost millions of dollars. The industry is this year looking at a 30,000 tonne increase in the crop in Hawkes Bay and Nelson, which in itself requires about 500 more workers. Ideally they need about 2000 more workers in Hawkes Bay alone for the harvest season which starts mid-February. “A permanent solution would be to agree with the government on how they find labour supply,” says Jones, who chairs a Hawkes Bay labour governance group.
“If we can’t get the fruit off the tree in that time then we lose value in that product,” Jones told Rural News. “We have built up a brand posi-
“We are still planting trees and will continue to plant trees. The key in the future is to harvest them at the best value and not to lose that value.” tion where NZ apples and pears are the best in the world and we beat all our competitors for quality and we are the preferred products on the shelves of the top retailers in the northern hemisphere. “We have built that on quality and with RSE
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we have been able to pick that fruit on time. Quality is a key part of it. But that brand can also erode at a similar speed. Unless we have a permanent
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solution to labour shortages we will start to erode brand value and we will create a commodity cycle which would be unfortunate. “We would lose value for NZ.” Jones says [Apple and Pears NZ] is working extremely hard to find sources of NZ labour. “We work with the prisons to get out as many workers as we can on day release and we work with the Ministry for Social Development to get people into work and ideally then permanent work. We have Z schemes working with at risk NZers who are not in education or training – people who need mentoring or pastoral care; we work to bring them into permanent roles as well. So we are doing a whole lot with NZers. “But the key is that for a few weeks of the year – in some cases only six or so weeks – we need a lot more people than we can find in NZ and so for a short, very specific time RSE is the perfect help for us. We can plan with that. “If we can get those RSE workers we will build accommodation and plant more trees and continue
to grow our sector.” It costs about $25,000 per bed. “It is a multi-million dollar investment and unless you know you are going to have someone picking and using that accommodation it just won’t occur. So we need clear signals so we are able to plan.” Jones says they need to plan over several years. Currently the Government says each year how many RSE positions will be allowed and the industry often does not get a number until after it needs to be in the islands for recruiting. He says backpackers aren’t meeting the shortfall. “At the moment, the backpackers can get a job anywhere in NZ; there are jobs available right across all retail and hospitality; NZ-wide the restaurants and retail shops are all running short of staff. There are jobs for NZers and backpackers.” The apple sector is still drawing in many thousands of backpackers, but Jones says tens of thousands of people are needed across NZ for harvest. “The ability to find so many at the moment is pretty strained. “We are still planting trees and will continue to plant trees. The key in the future is to harvest them at the best value and not to lose that value.” Horticulture should be a growing future especially in Northland, Bay of Plenty, East Coast, Gisborne, Hawkes Bay and Nelson. “In some of those North Island areas there are challenges to those economies and horticulture is booming in them. “It seems a shame we can’t ensure and plan to make sure it has a bright future. “We are after some discussion and clear signals. We are working well with MSD to work with NZers. “We want more strategic discussions for a longer term solution.”
RURAL NEWS // JANUARY 15, 2019
NEWS 15 RESEARCH IS THE KEY
PETER BURKE peterb@ruralnews.co.nz
A MAJOR campaign is in its final stages to gain support for a commodity levy for the bee industry. The proposal is to levy of 10 cents per kilogram on beekeepers who produce 750kg of honey per year. It’s estimated that a ‘yes’ vote for the levy would raise about $2 million annually. Apiculture New Zealand chief executive Karin Kos says the industry body has run a national roadshow going to 10 main centres, had individual meetings with some bee keepers and also communicated to the industry via their publication NZ Beekeeper. Kos says Apiculture is currently a
voluntary membership organisation. It came together two years ago when all sectors of the industry – including beekeepers, marketers and affiliates such as Federated Farmers – joined forces to form the present organisation. But she says times are changing due to the growth in the industry “The apiculture industry in NZ has grown phenomenally,” Kos told Rural News. “Ten years ago honey exports were $50m, now they are $350m. There are now 900,000 beehives NZ-wide, up from only 400,000 ten years ago. “With that huge growth has come a lot of pressure on the beekeeping industry. We need good bee health and good biosecurity systems, and we need investment to remain a sus-
tainable industry.” Kos believes being a voluntary organisation was a good start, but now is needed a fully professional body seen as having full industry support and funding for R&D. “We made a good start with Apiculture NZ, but we need to step up as an industry and put some serious investment in our sector. “And we need to work closely with government. While we won’t always agree with what they do we need to be professional in how we work with them and how we advocate on behalf of our members.” The levy is aimed at commercial beekeepers with about 26 hives or more, but Kos says other smaller scale beekeepers can still join Apiculture NZ.
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effectively as they need to. “We have issues with pesticides residues and how we deal with that.” Another need is to get farmers to recognise the importance of bees to them. “It’s encouraging that some younger farmers care about bees and the environment,” Kos told Rural News. “ ‘Trees for Bees’ works with landowners to encourage them to plant trees that attract bees because they are critical for pollination.” Voting on the levy takes place in February and Kos says her message to beekeepers is to study the material Apiculture NZ has sent out and recognise the long term value of having a well-funded, professional organisation.
➤
Apiculture NZ chief executive Karin Kos.
KARIN KOS believes the introduction of manuka honey has given the honey industry a huge growth spurt. But other honeys also merit attention, e.g. rewarewa and kamahi. A commodity levy would help to lift the sector’s profile and would further the study of those honeys. “There’s been a few pockets of research on bee health into varroa mite treatment. However, these have all been a bit piecemeal. “Having a commodity levy whereby we can go to a government agency and seek better funding and leveraging -like other industry good organisations – would greatly benefit our industry.” Kos reckons beekeepers’ first priority is maintaining good bee health so research to deal with varroa is important. There are concerns that some of the treatments may not be working as
RURAL NEWS // JANUARY 15, 2019
16 AGRIBUSINESS
New chair for booming hort sector PAM TIPA pamelat@ruralnews.co.nz
HORTICULTURE PRESENTS a major opportunity for this country, says Barry O’Neil, new chairman of Horticulture New Zealand (HortNZ). “People in NZ and around the world want our products that have been grown in our great soils with our water and our great climate,” he told Rural News. “We really do have unique products and the world has woken up to that so we have huge demand and growth will continue.” But O’Neil says he
would also like to see sustainable growth. “While everyone has to be economically viable we also need to ensure we have a social and environmental focus on our growth.” One of the big challenges is labour. “The growth in the horticulture sector, especially in some fruit sectors, has been phenomenal and it is very challenging for them to guarantee their future labour needs.” He says the social licence to operate is also critical. “We have these great soils, we have plentiful
water as long as we allocate it responsibly and we need to work collectively as growers to ensure we don’t end up being restricted by rules that are not reasonable.” With 21 affiliated product groups and 5600 growers, O’Neil says his first priority is to get to talk to as many as possible to understand their issues. “I will be looking to understand how HortNZ can be even more relevant to our product groups and the growers. “We are always wanting to do better; we have a great team in Wellington who are always out-
FROM GAMEKEEPER TO POACHER? BARRY O’NEIL stepped into the KVH role in 2012 just when the old gold variety Hort 16a was starting to collapse on a big scale. “The industry was extremely worried about what the future was,” he says. “We didn’t have a lot of tools nor the understanding that we now have. “There were serious concerns and a very worried industry about what the future meant.” His learnings from experience include respect for the government industry agreement (GIA) approach. “Before the GIA era we relied on government (MAF or MPI) to protect us and the reality is industry can do a lot for itself,” he says. “The realisation among most of the horticulture industry is they can step up -- they know what the import risk items to
them could be, and they know what the situation offshore is with respect to the pests and pathogens affecting their counterparts offshore. “The industry can do a lot to protect ourselves and prepare for biosecurity situations. It is an investment in our future so we don’t get knee-capped as did the kiwifruit industry. “The turnaround of the kiwifruit industry could be attributed to great leadership within the industry. The industry had the single desk that could respond in a way of scale. “The investment the industry made in R&D was impressive which a lot of nonintegrated industries would not have had the ability to achieve. There was great work by Plant and Food, the post-harvest sector, growers and Zespri.”
HortNZ’s new chairman Barry O’Neil.
ward facing to growers and I want to make sure that continues.” Some of the government settings on being carbon neutral by 2050 and the Emissions Trading Scheme (ETS) are critically important to get right for horticulture so that the ability to grow is not restricted, he says. “It is an area of interest to me in which we need to ensure we have sensible policy settings for our growers. “As chairman there will be many focus areas, but a priority is engaging with growers and ensuring government policy settings especially in the ETS area and water, etc
trade counsellor for four years under the Ministry for Foreign Affairs and Trade. He headed the biosecurity group in the Ministry of Agriculture and Fisheries (MAF) and has done consultancy work offshore. Most of his professional career has been in food safety, biosecurity and trade. Latterly, O’Neil was chief executive with Kiwifruit Vine Health (KVH) for six years. He has been a grower since 1984 and now has a kiwifruit orchard near Katikati. He says he’s always had a strong interest in horticulture and wanted to get closer to horticul-
ture so he focussed on that in the last stage of his professional career with KVH. During his years with KVH, O’Neil drove the industry recovery from Psa, and has held board positions including deputy chair of Scion, chair of Tomatoes NZ, and chair of the kauri dieback review panel. He has been an independent director on the HortNZ board since April 2015. But with his appointment as chair he will now stand as a grower elected director at the 2019 director elections. @rural_news facebook.com/ruralnews
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are supporting and not restricting growers.” O’Neil started his working life as a vet after gaining a Bachelor of Veterinary Science at Massey University. He loved being a vet, but developed an interest in exotic animal diseases and joined the government to keep those diseases out of NZ. He was involved in these roles for many years, becoming president of the World Organisation for Animal Health in 2006 for three years. His career in government focussed primarily on biosecurity and that included being posted to Brussels, Belgium as a
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RURAL NEWS // JANUARY 15, 2019
AGRIBUSINESS 17
Expo will highlight the latest rural communications TIM WARRINGTON
THE LATEST in rural communications will again be high on the agenda at the East Coast Farming Expo, with several communication specialists exhibiting at the event on March 6 and 7 at the Wairoa A & P showground. “Communication on farms needs to be as real-time as possible to enable more timely and accurate decision making,” says expo director Dave Martin. “The old saying ‘knowledge is power’ is more relevant today than ever because of the speed at which modern business operates. Being remote no longer needs to be a barrier to operating effectively in the modern farming business environment,” he says. “Increasing internet speeds and cellphone coverage, online sales reports, cloud recording and banking and financial programs allow many farmers the same instant access to decisionmaking tools as in a city business environment.”
Award-winning Gisborne radio communications company Colvins is attending the expo for the third time. “The biggest development in radio communication in recent times is the advancement of the digital radio platform,” says manager Scott McSloy. “Digital radio provides better voice clarity and allows packets of data to be sent over the network.” Colvins has installed at least 30 farm communication systems in the East Coast region. “Most of these systems use solar-powered repeaters that we have specifically developed for the purpose,” McSloy says. “Being solar-powered allows the repeater to be placed at a convenient location for maximum property coverage.” He says these radio systems have become an integral part of their farming operation. Colvins will have this equipment on display and operating at the expo, for site visitors to see and try the features. They also have portable demonstration repeaters available
for onfarm trials. Gisborne Net’s Ronald Brice says getting more technology onfarm and more communications helps with safety. For information or to
buy tickets go to: www. eastcoastexpo.co.nz
Smartphones, farming apps and better coverage have all helped improve rural communications in recent years.
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RURAL NEWS // JANUARY 15, 2019
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18 MARKETS & TRENDS
global agribusiness research analysts sharing market outlooks
Farmer confidence slips further A MIX of concerns negatively impacting sentiment among pastoral farmers saw New Zealand rural confidence drop for the third consecutive quarter. The last quarterly survey for 2018 – completed in November – shows the nation’s net farmer confidence fell to -15%, down from -3% recorded in the September 2018 survey. The survey found a decline in the number of farmers expecting agricultural economic conditions to improve in the coming 12 months (down to 14% from 20% in the previous quarter). An increased number of New Zealand farmers were expecting the performance of the agricultural economy to worsen (29% from 23% last survey). The number of farmers expecting conditions to
Rabobank NZ general manager Hayley Gourley.
remain the same stood at 53%, down from 54% previously). Rabobank New Zealand general manager for country banking Hayley Gourley said while horticulturalists were more positive in their outlook, the overall drop in farmer
confidence had been driven by greater pessimism among pastoral farmers. “Horticulturalists’ net confidence flipped from negative to positive this quarter, rising from -4% last survey to +9%. However, there were signifi-
cant falls in confidence for dairy farmers – with sentiment declining to a net reading of -21% from -9 % last quarter and for sheep and beef farmers, with confidence dropping to -12% from +7% previously,” she said. “In both of New Zealand’s key pastoral sectors there are now more farmers expecting conditions in the agricultural economy to worsen in the coming year, than those expecting an improvement, and this is this first time we’ve seen this since quarter one 2016. This is particularly unusual during a period where product prices are at good levels and the climate has generally been favourable for most producers.” Among those New Zealand farmers expecting conditions to deteriorate, the survey found the
most significantly cited concern was government policies (45%) while falling commodity prices (37%), rising input costs (28%) and overseas markets (27%) also featured prominently. “Rather than one single factor driving confidence lower, the survey results indicate a range of factors are responsible,” Gourley said. “The proportion of farmers citing govern-
ment policy as a reason for a negative outlook is relatively stable from last quarter, however, in this survey we’ve seen a jump in the number of farmers flagging concerns over falling commodity prices, rising input costs and overseas markets.” Gourley said dairy farmers were chiefly behind the increased concerns around commodity pricing while both dairy and sheep and beef farm-
ers were now considerably more worried about rising farm input costs. “Almost half of dairy farmers expecting conditions to worsen cited falling commodity prices as a key factor with this likely to have been driven by lower pricing at recent Global Dairy Trade events and Fonterra’s downward revision of their 2018/19 forecast farmgate milk price in October,” she said. “Farmers from both
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RURAL NEWS // JANUARY 15, 2019
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ship (CPTTP) is a further recent boost for New Zealand’s horticultural exporters,” she said. Dairy farmers expectations for their own farm business performance fell to a net reading of -6% (+19 previously) while sheep and beef farmers dropped to a net reading of +13% (+31 last quarter).
Horticulture is bucking the negative trend of the pastoral farming sector.
pastoral sectors were also more concerned about rising farm input costs which have increased over recent months as a result of spiralling global urea prices that have increased local prices to $165 a tonne. “In addition to these factors, the verbatim comments collected in the survey suggest Fonterra’s recent performance issues and Mycoplasma bovis are further areas of concern
for farmers.” Individual business performance The survey found farmers’ confidence in their own farm business performance also down this quarter, dropping from a net reading of +21% last quarter to +7% this survey. Just 26% of farmers now expect their own farm business performance to improve in the next 12 months (down
MARKETS & TRENDS 19
from 34% last quarter), with 19% expecting performance to worsen (up from 13%). A total of 53% expected their business performance to remain stable (up from 52%). “In line with the results for the agricultural economy, farmers in the dairy and sheep and beef sectors were less positive about the performance of their own business while horticulturalists were more optimistic,” Gouley added.
She said 34% of horticulturalists were now expecting their own business performance to improve in the next 12 months, up from 26% last quarter, while the number expecting performance to worsen fell from 15 to 10%. “Overseas demand for New Zealand’s horticultural products remains strong while the conclusion of the Comprehensive Progressive Trans-Pacific Partner-
Farm Investment The survey found farmers’ investment intentions were also down on last quarter, but remained in net positive territory, with overall more farmers intending to increase than decrease investment in their farm businesses. The survey found 24% cent of farmers were expecting to invest more in the coming year (down from 26% last quarter) and 12% were expecting to reduce investment (9% last quarter) – a net investment reading of
Results at a glance ❱❱ New Zealand farmer confidence fell for the third straight quarter pushing the net rural confidence reading further into negative territory – with more of the country’s farmers pessimistic than optimistic. ❱❱ Sentiment was down among dairy farmers and sheep and beef farmers, but rose among horticulturalists ❱❱ Concerns over government policy, falling commodity prices, overseas markets/ economies and rising input costs were the key reasons cited for farmer pessimism ❱❱ Farmers’ expectations of their own farm business performance were down on last quarter, but remain at positive levels overall ❱❱ Investment intentions were lower among dairy and sheep and beef farmers, but higher among horticulturalists.
+12%. Gourley said lower confidence among pastoral farmers had flowed through to reduced investment intentions with sheep and beef farmers indicating a reduced appetite for investment in the coming 12 months, while dairy
farmers had the weakest investment intentions of all farmer groups. “Horticulturalists on the other hand had stronger investment intentions with 40% of growers now expecting to increase investment and only 2% expecting to invest less,” she said.
RURAL NEWS // JANUARY 15, 2019
20 OPINION EDITORIAL
EDNA
New year, new start FONTERRA SHAREHOLDERS are starting 2019 with high expectations. Most farmers’ New Year resolution will be to continue producing milk sustainably and efficiently in the hope that global milk prices will firm. However, looming large on their minds will be the state of their cooperative; the bottom line is Fonterra cannot afford to lose money this year after its $196 million loss in 2018 – its first ever. Frustrated farmers have watched the board and management fail to contain the co-op’s disastrous foray into China Farms and Beingmate Food. At home, Fonterra is losing milk supply to rivals and continues to play second fiddle to smaller processors when it comes to the milk payout battle. Thus, farmer shareholders seeking real change in their co-op focussed intently on last year’s board elections. In what could be best described as a slap in the face to both the board and shareholders council, farmers rejected two of their three nominees for directorship. The first director election saw shareholders back the board and council’s choice, Peter McBride, a respected agribusiness leader. However, they rejected the other two official nominees; sitting director Ashley Waugh and Maori agribusiness leader Jamie Tuuta. Instead farmer shareholders voted in outspoken former director Leonie Guiney. In the second election, Canterbury farmer John Nicholls beat Tuuta for the third seat. Fonterra shareholders have realised that change must start with the board; the old boys club from the early days of Fonterra’s formation needs to go. Current chairman John Monaghan, on the board since 2008, isn’t exactly the breath of fresh air that the co-op needs. Shareholders may want a new chair with strong leadership skills, alongside a revitalised and broadened board with a more disciplined and collaborative culture. A re-look at the director election process would also restore some confidence among shareholders on governance. There are some signs that Fonterra is changing. Confirmation of Miles Hurrell as chief executive would be a step in the right direction. New auditors will be in place at the co-op next year. A review of the co-op’s assets is underway and shareholders can expect Beingmate and other non-performing assets to go. Fonterra is not out of the woods, but farmers will be hoping that 2019 won’t be bad as last year.
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
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Want to share your opinion or gossip with the Hound? Send your emails to: hound@ruralnews.co.nz
THE HOUND Utu?
Change of tune
No sh*t Sherlock
MIA?
THIS OLD mutt was taken aback by a vitriolic opinion piece penned in a weakly (sic) rural publication late last year by a self-important commentator named Craig Wiggins. In the piece, Wiggins slammed Fed Farmers for what he claimed was the organisation’s lack of activity in relation to the M.bovis outbreak and accused the national farming lobby of not supporting farmers affected by the disease – especially in the Mid Canterbury region. This attack surprised your old mate, and a little sniffing around by yours truly discovered that Wiggins was once employed by Young Farmers. But he lost his role when former YFC chief executive and current Feds boss Terry Copeland ‘let him go’. Perhaps Wiggins’ anti-Feds stance is a bit of utu on his former boss.
THE HOUND, like most rational people in NZ’s primary and export sectors, was delighted to see the much maligned and denigrated trade agreement of the past few years – the CPTPP, formerly known as the TPP – come into force this month. Your old mate would like to tip his hat to current trade minister David Parker for finally getting the deal over the line and into action, as well as the former trade ministers in the previous government – Tim Groser and Todd McClay. However, your old mate still finds it hard to believe that the same David Parker who finally signed off the deal was the David Parker (in opposition) who rallied and marched against the very same deal. Thankfully the reality of government and some minor tweaking of the TPP text has led Parker and others now sitting on the Treasury benches on their road to Damascus.
SADLY IT looks like 2019 is going to be no different from last year regarding the anti-farming stance taken by fishing lobby Fish & Game – rightly dubbed Bitch & Complain by your canine crusader. The new year was not even a couple of days on when Bitch & Complain released a dodgy survey – commissioned in cahoots with TV1 news – claiming that the most important issue for NZers this year is not housing, child poverty, world peace, Jacinda’s baby or the All Blacks winning the World Cup, but clean waterways. Your old mate reckons it is a fair bet that if you sent out a survey asking people if they want nice clean water to swim and fish in or cesspools running with effluent and disease you are highly likely to get an overwhelmingly, positive affirmative response to the first option.
MEANWHILE, AT the same time as the political activists at Bitch & Complain were publicising their dodgy survey results, the fishing lobby was completely missing in action where it really counted. Your old mate was shocked to learn that sewage outflows into the environment around urban NZ had jumped 379% last year, according to a review by Water NZ. The organisation said sewage overflows regularly close beaches in Auckland and other cities around NZ and sewage is overflowing into stormwater and into rivers and streams. The Hound would have thought that such events would have a terrible impact on the ability of people to fish and swim in urban areas and have an organisation such as Fish & Game screaming bluemurder and demanding immediate action to remedy this problem.
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ABC audited circulation 79,599 as at 30/09/2018
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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 // JANUARY 15, 2019
OPINION 21
Culling cows not the answer of products and services. The wider dairy sector has been estimated by NZIER to support about 33% of all industries in the NZ economy (40 industries for dairy farming accounting for 41% of GDP and 33 industries for dairy processing accounting for 29% of GDP). However, for people who want to see fewer animals in agriculture and a de-intensification of
The export dollars are earned for NZ by thousands of people working on the land, in the support industries and in the processing plants. information on far more sectors than just dairying. And it highlights the critical role that the agricultural sector plays in NZ’s economic health. Former Prime Minister Sir John Key last year emphasised the importance of exports which “ultimately fuel the NZ economy” in a speech to the National Party. He pointed out that with a small population base there are limits to how far the domestic economy can grow: “ultimately it stalls due to lack of skilled labour, so infrastructure gets logjammed, immigration drops off ... and business gets frustrated”. Almost 75% of the export dollars come from the primary sector: the latest Ministry for Primary Industries figures indicate 74%. In 2018, dairy contributed $17.2 billion, meat and wool contributed $7.3b, wood, pulp and paper $6.1b, horticulture and viticulture $4.8b and seafood $1.6b. The export dollars are earned for NZ by thousands of people working on the land, in the support industries and in the processing plants. NZIER estimates that dairy farming alone is the fifth-biggest contributor to the domestic economy (behind banking, construction, residential property business and hospitals) and directly employs almost 40,000 people. Of further note is that the primary sector supports other sectors through direct purchase
food production systems, the economy and employment are not generally as important as the environment. Good news in this area is that the Legatum Prosperity Index, released in November last year, ranks NZ second in the world (behind Norway) overall, and fourth in the environment (the quality of the natural environment, environmental pressures and preservation efforts), behind Slovenia, the United Kingdom and Finland. NZ achieved top ranking in social capital (measuring the strength of personal relationships, social network support, social norms, and civic participation), second in governance (which includes democracy and political participation, and rule of law), the business environment (entrepreneurial environment, business infrastructure, barriers to innovation, and labour market flexibility) and personal freedom (national progress towards basic legal rights, individual freedoms, and social tolerance). Of course, we want to do even better in future in all areas, but moving up in wealth (14th), health (17th), education (18th) or safety and security (24th) requires income, and that will take more of the innovative agriculture that we are already encouraging. NZIER points out that agriculture is a huge investor in R&D and follows through with
improved efficiencies of production onfarm, new processing investment and new products. Not just infant formula, but UHT, milk from sheep, goats and deer – as well as cows -- and nobody should overlook the importance of mozzarella….
But basically it is employment in the countryside that creates the raw product that can then be processed for export. The new money coming into the country through sales allows improvements in wealth for everybody as well as in well-being.
NZ is already leading the way in matching people, land and production systems, and in maintaining the environment. That is why farming tours come here – to learn. And the urban tourists come here to admire. In 2019 we can do an
even better job; another great resolution to make. • Dr Jacqueline Rowarth CNZM CRSNZ HFNZIAHS has a PhD in soil science and has been analysing agri-environment interaction for several decades. @rural_news facebook.com/ruralnews
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ANYBODY DETERMINED to spread the word about the importance of agriculture to New Zealand can get hold of some helpful facts from a report by the NZ Institute of Economic Research (NZIER). The NZIER report: ‘How does the dairy sector share its growth?’ was commissioned by the Dairy Companies of NZ (DCANZ) but it contains
RURAL NEWS // JANUARY 15, 2019
22 OPINION
Common sense needed in honey sector GARY BLAKE
CONGRATULATIONS TO John Wright (Rural News Nov 20) for sharing his life experiences and knowledge of the honey industry.
The rapid interest in the industry is a classic example of how misinformation can lead many in the wrong direction with a consequent deterioration of our habitat. I have been a bee-
keeper and for the past 26 years and have had 25 hives belonging to a commercial beekeeper on our farm at Waiomu, Thames Coast. It has been an excellent opportunity to access the properties of
manuka (Leptospermum scoparium). The shrub has been flowering profusely during November, but is ignored by the fabulous apis mellifera (honey bee) but not by some of the other 28 bee species and flies. My concerns cover eight years and often off the farm. My wish is that we give all honeys the same respect that we are trying to give to manuka. Honey before money. One or two examples from our farm are the chocolate brown protea
ing with leptospermum scoparium, which has evolved over several million years. Firstly, please explain to me why some potential bee keepers refer to manuka hybrids which they presumably believe attract honey bees, while ours do not? It seems
Honey bees also forage nasturtium with enthusiasm. We should be encouraging foraging opportunities rather than restricting.
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honey from the indigenous rewa rewa (knightia excelsa) and our cut flower proteas and the excellent light honey from ragwort senecio jacobea). Honey bees also forage nasturtium with enthusiasm. We should be encouraging foraging opportunities rather than restricting. The biodiversity of the farm ensures excellent yields and a large foraging area and choice. One of the problems with the expansion of hive numbers is competition for space. Two apiarists on the Thames Coast have not returned for this reason. The honey bee was introduced by Mary Bumby to Hokianga in 1839 and is an important part of our land based economy. The Greeks were smarter than us. Honey was an important resource and antiseptic. A manuka variety also is indigenous to Malaysia. Maybe some entrepreneurs might try their luck there? I agree with John. The industry is being dragged along a gold rush route. I have a question or two. In some quarters there is the desire to plant huge hectares with ‘manuka hybrids’ at considerable expense. We are all deal-
there is secrecy creeping into this ‘gold rush’ industry which has very little to do with the bees. Secondly, you plant 1000ha in your ‘high’ producing manuka. This supplies nectar for a month, maybe two, for the year. What do you do with your hives for the rest of the year feed: sugar or shift them further compounding the over foraging problems? Thirdly, what does it do for the bees’ wellbeing? The honey bee is well able to plan its own foraging strategies and I have a feeling this excessive interference by homo sapiens could lead to the extermination of apis mellifera . A monoculture approach could create disease problems. It is time we stopped talking about minimal quantities of manuka honey’s inflated returns and informed customers that, as well as clover honey, there is our exotic bush honeys like rewa rewa. A land owner could do very well to plant rewa rewa and in the Coromandel peninsula conservation park it is a dominant species. • Gary Blake is a beekeeper and scientist based at Waiomu on the Thames Coast.
RURAL NEWS // JANUARY 15, 2019
MANAGEMENT 23
Canty water clean-up well underway STEVE LOWNDES
WE LIVE in an age when every one of us is being asked to be aware of our impacts on the environment. The farming community has long been in the gun. Time was when we treated our waterways as little more than drains -- a convenient way to get rid of all sorts of waste. This practice has stopped and is now rigorously policed. We are tackling the cumulative effects of diffuse discharges from intensive farming, principally nitrogen which comes from cows’ excreta as well as from fertiliser. Our approach for rural land users has been to put limits on the nitrate pollution leaving a farm through groundwater leaching: we use a sophisticated computer model (Overseer) to measure and manage this. We don’t have a mandate to tell farmers what they can do on their land – just what they can release to the environment as a by-product of their activities. It’s our job to make sure individual farms work within the limits we set; we use farm environment plans, onfarm and audited monitoring to do this. It’s
tal improvements also our job to make if they understand sure the cumulawhat is needed and tive effects of farmhave the money ing will not result in to spend on better the further decline environmental outof water quality in comes. Canterbury; we use Most of what scientific monitoris happening in ing and modelling to rural communities do this. is not appreciated We have priby people living in oritised where we cities and towns, but need to act, starting Environment Canterbury chairman it is sharply front-ofwith the farm sys- Steve Lowndes. mind for the farmers. tems causing most We started by making farmers meaof the pollution and our most sensitive catchments. We communicate sure their nitrogen leaching over a directly with every farmer explaining four-year period (2009-13). This sets clearly what they need to do, and what an upper limit for each farm and they support is available to help them. We are not allowed to go over it. While have the backing of the farming sector, this ‘holds the line’ and stops things although we recognise that some indi- from getting worse it doesn’t fix polvidual farmers find the need to change luted waterways in the long-term. So, the next step was to require challenging. We are moving as fast as we can and farmers to adopt ‘good management encouraging farmers to respond. We practices’ -- an industry-agreed proare not, however, trying to put farm- gramme to minimise pollution from ers out of business. We recognise the nitrogen, phosphorus, sediment and economic benefits to the region from faecal sources. The third step – in areas that have sustainable farming, and that farmers will only be able to make environmen- high or rising nitrate levels – is to
reduce the nitrate leaching over time. This may require land managers to go further than just adopting good management practices, and they may need to look at changing some of their land to a different farm type, make significant improvements to systems or reduce the number of animals onfarm. We are ensuring that farmers do what they need to do, through what we call our ‘consent-to-farm’ programme. We started in 2017 with the highest impact farms – nearly 1100 farms with more than 50ha of irrigation, as well as a small number (23) of farms in sensitive high-country lake catchments. Nearly all (99%) of this initial group of farms have been contacted by us, and either have a consent to farm, or are on track to get one. About onequarter of farms are covered by ‘permitted activity rules’ which simply means they don’t need an individual consent but are still covered by the rules and conditions in the relevant plan. Each consent to farm requires an accompanying farm environment plan (FEP) which sets out how a land manager will address and deal with environmental risks. FEPs are inde-
pendently audited and we work with those who receive an A or B grade (acceptable) to maintain and improve their performance. We work more closely with those who receive a C or D grade (not acceptable) which includes scheduling more frequent compliance visits and audits. A recent report we commissioned on the long-term trend in freshwater quality suggests we are seeing improvements, particularly over the past five to 10 years. We recognise this is only part of the overall picture – it covers nutrients, toxins and faecal pollution, not the ecological health – but it’s an important part and something we can easily measure. Much is happening to protect and improve freshwater quality and ecosystem health, particularly in rural areas. Farmers are being encouraged and required to improve their environmental performance, but this is just the start. What we are seeing today is the result of 150 years of farming on the plains; it will take time -- perhaps decades -- to see the improvements from the remedial action being taken now.
RURAL NEWS // JANUARY 15, 2019
24 MANAGEMENT
Get in first before its mandated DON’T GIVE the rule-makers a reason to regulate. That’s a key message Beef + Lamb New Zealand’s environment team is giving farmers in response to signals from regional and national government that stricter environmental regulations are coming. Speaking on a recent BLNZ podcast, environmental policy manager Corina Jordan said the government can only regulate when it has reason to do so. “If we can ensure that as a farming community we are not giving them reason to intervene in our farming businesses due to environmental and public concerns, then we are safeguarding ourselves from having stricter regulation forced upon us.” Jordan says the BLNZ environmental team spent a lot of time last year talking to farming communities about policy changes in NZ and the drivers behind those changes. These include public and political concerns about farming and the environment, and changing consumer attitudes toward food production systems in NZ and other countries. “In NZ there is growing public con-
Riparian planting.
cern about farming and its impact on freshwater resources,” she says. “Initially the finger was pointed at the dairy sector, but recent media attention has drawn the red meat sector into the spotlight with concerns over winter grazing practices and feedlots.” Jordan says it is important that the sector responds. Losing a social licence to operate will impact on the resilience of a farming business. “It’s important in relation to our businesses and the opportunities for the future of our businesses, that social
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license is enhanced and not eroded.” She says many of the policies promoted by regional and national government have been underpinned by reports from the multi-sector Land and Water Forum, and because of existing rules that land be managed within environmental limits. The forum was asked by government ministers to consider four key issues: to hold the line or improve water quality, look at a resource allocation system that is fair and equitable, sediment management, and good man-
agement practices (GMP). “GMP encompass what society expects farmers to do when they are, for example, winter grazing.” Jordan forsees likely changes in legislation early this year to introduce these four key issues into environmental policy. BLNZ believes environment related issues such as these should be dealt with at catchment level. “Every catchment is different in water quality, nutrient loading or sediment loss depending on geology, climate, soil,
farming systems and proximity to urban populations,” Jordan says. “We need to make sure that when the rules are written they have the flexibility to allow farmers to do what they want to do while operating within environmental limits.” Jordan says within the policy setting process there is opportunity for farming groups to co-create policy with regional councils so that the policies will work for them. BLNZ has developed resources that guide farmers and farming groups through the policy-making process. They have worked alongside farmers in Waikato, Southland and Canterbury as their regional councils set their freshwater standards. “When farmers understand the issues, they can then decide what they want to do about it,” she says. “National legislation is effectsbased so in order to intervene with regulation, the regional council or national government must have a reason to step in. If farmers are addressing these issues themselves, they are less likely to intervene with repercussions. “We need to take control of our own destiny.”
RURAL NEWS // JANUARY 15, 2019
MANAGEMENT 25
Precise irrigation solves many problems TWO MASSEY University engineering graduates, Stu Bradbury and George Ricketts, were in 2004 staying on the South Wairarapa farm of Brian and Jo Bosch, living on site while they worked a summer job assembling irrigators in the area. Bradbury, Ricketts and Brian Bosch talked about irrigation and some of the challenges on the Bosch’s farm: the existing pivot irrigation system was causing problems. Says Bosch, “Where the pivot went over the
of water or nutrients are delivered over several crops, soil types and terrains. It uses GPS technology, farm mapping and innovation. The technology involves first making an electromagnetic map of the land, measuring soil conductivity (soil type and the amount of water it holds) and then developing a programmable irrigation system where every nozzle can be individually controlled, allowing customised irrigation within a field.
nodes across the system can be programmed to specific levels, meaning areas of a paddock just metres apart receive different amounts of water. Precision irrigation also helps conserve
water, preventing excessive water waste on areas where it is not needed up to 30% across a farm in some cases. Prevision VRI is used dairying, sheep, beef, horticulture and arable
farming. In 2011 the company was bought by Lindsay Corporation. Bradbury and Ricketts are still on the team behind Precision VRI, working at Lindsay NZ.
Brian Bosch (pictured), farming at Kahutara, was first to install the Precision VRI system 10 years ago.
“We were also getting lame cows that got wet feet and bruising on the muddy race.” races was wet and mucky, and when the cows walked along it to get to the cow shed it damaged the race. “We were also getting lame cows that got wet feet and bruising on the muddy race.” He says blanket irrigation was the problem. “There had to be a way of irrigating parts of the farm that needed it, but also keeping vulnerable areas, such as the race, dry.” Bradbury and Ricketts had mechanical engineering backgrounds and they considered how to solve the problem. At the time there was nothing on the market to achieve precision irrigation -- managing the water flow in targeted and controlled quantities to specific parts of a paddock or farm depending on topography and soil type. “We saw wet areas where crops weren’t growing and dry areas where there wasn’t much water,” says Bradbury. “There was an obvious need to have a system to specify where you needed water and how much.” But Ricketts soon suggested using technology to solve the problem. And in 2006 and 2007 they began developing the programming and prototype that would become the Precision VRI. VRI stands for variable rate irrigation – ensuring exactly the right amount
Farmers can drive across their land with an electro-magnetic sensor and a real-time kenematic GPS, accurate to within 2cm, to map their land and use that information to programme the Precision VRI system. The Bosch farm at Kahutara in November 2008 became the world’s first farm to install the Precision VRI system, and it is still running. He now milks 1000 cows, producing 400,000kg milk solids annually on 320ha. Bosch says that the Precision VRI helps him farm more productively and ensures he isn’t wasting water. Muddy areas around troughs and races are also no longer a problem and lame cows are no longer such a problem. Land is more productive, and areas previously muddy can now be used for growing grass or crops. Places where tractors and heavy farm vehicles used to get stuck have dried out and are traversable. Bosch says irrigation is “vital” to his farm and growing good pasture for his herd, to ensure productivity. “We’re huge fans of the Precision VRI.” The system enables farmers to control water usage in a sustainable, smart way. It ensures that only the areas that need water, get water, and at the right levels. Individual
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RURAL NEWS // JANUARY 15, 2019
26 ANIMAL HEALTH
Breeders aim for parasite-resistant sheep TEN SHEEP breeders have formed WormFEC Gold to show farmers that breeding for parasite-resistant genet-
ics will strengthen flocks and save time and money onfarm. The farmers have been concerned about increas-
ing levels of drench resistance, rising farming input costs, and issues getting farm labour. Jointly they have at least
200 years experience breeding highly productive, parasite resistant rams. Chairman Robert Pea-
Rams bred for parasite resistance. PHOTO KATE BROADBENT
cock, of Orari Gorge Station in South Canterbury, says the WormFEC Gold
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group aims to show farmers that breeding sheep for parasite resistance is achievable and will save time and money. He says breeding animals with natural resistance to parasites is part of the long-term sustainable solution for parasite management. Peacock says breeders can select stock for parasite resistance using PhenR and WormFEC through service provider Techion. Farmers who want the guarantee of parasite resistant rams to incorporate these genetics into their flock can find WormFEC Gold breeders on SIL. “Sheep can be labour intensive to farm and some farmers are bringing lambs in every three weeks to drench as well as drenching adult ewes,” he explains. “With a parasite resistant flock, drenching could be reduced to only once or twice in a lamb’s life, which is a huge saving in time and cost for a farmer. It’s a massive reduction in workload for farmers who are looking for ways to improve their lifestyle and profitability.” Gordon Levet, a WormFEC Gold member with 31 years experience breeding parasite-resistant sheep, believes when enough ram breeders are breeding sheep with a
high degree of parasite resistance there will be an impact on the national flock. “For individual farmers this will mean savings in labour and costs because they won’t need to drench as often – and for some possibly never,” he explains. Levet believes it is the right time to improve education for New Zealand sheep farmers as a number of factors make breeding for parasite resistance vital. “Climate change and more humid conditions mean that parasite populations have increased and the danger period for sheep has been extended. Flocks are more susceptible to internal parasites because drenching programmes are leading to the development of drench resistant parasites. On top of this, global consumers are demanding fewer chemicals in the food chain, so it’s vital that NZ farmers meet the market.” Peacock says international and domestic markets are expressing increased concern about the security of their supply chain, while consumers are demanding fewer chemicals in their food. “There is no overnight fix for creating a parasite resistant flock, so even if TO PAGE 27
LESS WORMS, LESS WORK PEACOCK BELIEVES farmers who focus their breeding program on parasite resistance would strengthen their flock with animals that required less drench, reducing the risk of drench resistance and increasing farm profitability. “Having parasite resistant stock reduces workload,” he adds. Reducing on-farm costs is essential for farmers as they face increasing economic pressure. The Sainsbury’s FECPAKG2 Project (2014 - 2017) showed the average NZ sheep farmer producing 5,000 lambs can lose up to $75,000 annually due to reduced lamb growth rates from using a drench that does not work.
RURAL NEWS // JANUARY 15, 2019
ANIMAL HEALTH 27
Fresh is best semen trial finds SUDESH KISSUN sudeshk@ruralnews.co.nz
A FIELD trial using frozen sexed semen didn’t produce the desired results, says LIC. LIC genetics business manager Greg Hamill says results mean the company recommends farmers use liquid sexed semen. The blind trial in spring 2017 consisted of nearly 100 farmers and at least 12,000 straws -sexed and conventional. The results clearly showed a still substantial difference between sexed and conventional frozen semen: the sexed semen was, on average, 13.3 % down on non-return rates (NRR) compared to standard conventional straws. NRR refers to the proportion of cows not subsequently re-bred within a specified time after an insemination. With getting cows
in calf being one of the most important aspects of dairy farmers’ seasonal focus, the reproductive implications of a reduction in NRR by 13.3% is significant, says Hamill. “These cows would remain in the dry paddock for at least three more weeks. The reduction in the reproductive performance among the herd may be too great for most farmers contemplating using frozen sexed semen.” LIC ran the frozen sexed semen trial with Sexing Technologies, the only supplier of sexed semen in New Zealand, using multi-head technology that allows it to sort semen faster and up to four million cells per straw. Hamill says improvements in the technology of sexing semen are well documented and there was a good deal of anticipation and excite-
PARASITERESISTANT SHEEP FROM PAGE 26
it takes a decade for supermarket chains to demand drench free animals we need to start work with our sheep genetics now.” Peacock says that parasite resistance is a heritable trait that can be introduced into the national flock if all breeders and farmers work together, record their genetics and use drench accordingly. “Even without a change imposed by international supermarkets, this change is essential for the farmer not looking to drench every three weeks for the rest of their working life; breeding parasite resistance into sheep has a huge benefit for them by reducing their work. “For years our members have been breeding for parasite resistance using WormFEC. This evaluates the natural parasite resistance of rams through the NZ sheep industry’s performance recording and genetic evaluation database Sheep Improvement Ltd (SIL).” The SIL database uses faecal egg count (FEC) data to generate estimated breeding values (EBVs) so they can rank and selectively breed stock with superior genetics. Collectively, WormFEC Gold members have taken at least 65,000 FEC samples, with an average of 300 FEC samples each per year. Members of the group work with Techion, providers of the PhenR and WormFEC service, and with AgResearch which set up WormFEC in 1994 and provides science guidance to the WormFEC Gold group. www.wormfecgold.com
ment about what the trial results would show. LIC had hoped to see the technological improvements reflected in better NRR for dairy farmers. Using sexed semen for breeding has
advantages. For many years dairy farmers have been excited about the possibility of using sexed semen to drive genetic gain within their herds, says Hamill. “This makes sense,
Frozen semen straws in liquid nitrogen.
because it enables farmer to get more heifer calves from their top performing
animals.” The above factors were key drivers behind
LIC’s desire to participate in the trial with Sexing Technologies.”
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RURAL NEWS // JANUARY 15, 2019
28 MACHINERY & PRODUCTS
The best of both worlds MARK DANIEL markd@ruralnews.co.nz
UTV’S AND side-bysides, increasingly popular over the last five years, transport people safely and have good carrying capacity. Their ROPS frames protect occupants in crashes. Many machines of this type emerged from the North American leisure market and were built for performance rather than utility use. However, the Yamaha Wolverine X2-R spec seems to offer great work prospects plus performance to have a little fun. Given this dual purpose, Yamaha reckons the X2 will appeal to a range of sectors, with farming taking about 40% of sales, recreation 30%, commercial use 20% and hunters 10%.
Power comes from a parallel twin of 847cc in a robust, well protected steel frame; the liquidcooled, fuel-injected 4-stroke delivers 52hp and 81Nm torque, offering plenty of low-end grunt, and potent midrange and top end get-upand-go. Interestingly, a ‘drive by wire’ set-up monitors speed, throttle position and other parameters to eliminate throttle pedal ‘bob’ resulting in the ability to maintain constant speed in rough conditions. Engine power is converted into drive using the Ultramatic CVT with constant belt tension, said to prolong belt life, particularly in low-speed, high-torque situations; an integral sprag-clutch gives positive engine braking at all four wheels when the
The Yamaha Wolverine X2-R seems to marry good work prospects, with performance and fun.
throttle is released. Operators get the choice of high, low, neutral and reverse selections, and a top speed of 80km/h. Traction is enhanced by the On-Command 4WD system, available
on the fly and delivering 2WD, 4WD with limitedslip differential, or fullylocked 4WD, so all terrain is easily dealt with, especially in changing conditions. Described as a compact side-by-side utility,
the X2 is very manoeuvrable in tight conditions. The 2050mm wheelbase is longer than most in this category, with excellent stability in undulating ground. The real stand-out of the X2 is the suspension,
with a set-up that could readily be described as class leading. Its KYB twin-tube, gas-filled shocks with external reservoirs offer 5-way preloaded adjustment, with further individual adjustment for spring pre-load, rebound damping and high or low speed compression damping. The result is the ability to deal with sudden changes of direction or terrain, even at speed, without any noticeable change in body position. The feeling of security is further enhanced by high-backed bucket style seats with threepoint safety belts. About 225mm of suspension travel combines with 290mm of ground clearance to provide an excellent ride quality, helped by the fitment of 12-inch alloy wheels fitted with
grippy 26-inch Maxxis tyres. The low-slung dashboard and sloping hood make it easy to pick a safe course. In open country or tight situations, electronic power steering (EPS) comes to the fore, with steering during direction changes being light and predictable; feedback from hitting big dips or humps is well filtered out. Weight is 720kg, fully fuelled. The rear work tray has a single-handle tailgate, with gas strut assistance to tip the maximum load of 272kg. Operator enhancements include lower stable-type doors at the entry points, storage ahead of the passenger and in the central armrest and a comprehensive dashboard.
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RURAL NEWS // JANUARY 15, 2019
MACHINERY & PRODUCTS 29
One for Santa’s 2019 list MARK DANIEL markd@ruralnews.co.nz
JD’s Fuel Guarantee Programme is been offered in 28 EU countries.
JOHN DEERE SCRUTINISES FUEL ECONOMICS THE DRIVERS of different tractor brands have always done a lot of braying about their steeds, claiming more power, pulling ability and fuel economy. Until now it’s all been pub talk, but along comes John Deere with an offer in the 28 countries of the EU that should put an end to the smoke and mirrors -- quantifiable information on fuel economy. The company’s Fuel Guarantee Programme, first introduced for the 7319R tractor two years ago, has now been extended to include the 6R, 7R and 8R series, six-cylinder tractors, starting November 2018. Aimed at rewarding customers for fuel-efficient operating practices, the programme was first set up to prove the brand’s fuel efficiency on road haulage duties, and it is now extended to use in the paddock. In taking part, operators and their supplying dealer record actual fuel usage over one year. The results are then compared with a target value for fuel use, individually calculated for each tractor in the three ranges, based on average engine loads in heavy and light applications. If the total fuel consumption is found to have exceeded the JD target level, the company will refund the customer. If the actual consumption is less than the specific target, the owner is rewarded with a reimbursement equal to twice the value of the fuel saved, based on local average purchase prices. As part of the package, the company offers tractor optimisation to get the best out of the machine and operator; this forms part of a FarmSight precision package. The company says a properly optimised tractor and fully trained operator are usually able to reduce a typical fuel consumption by about 20%. – Mark Daniel
NOW READ IT ONLINE
IF YOU’RE a fan of the motoring pages in New Zealand newspapers, you will probably be wondering what was going on before Christmas with the annual Car of the Year Awards (COTY). In one camp NZ Herald’s Driven magazine and the AA were trumpeting the Mercedes Benz A Class as the hero, while the Motoring Writers Guild of NZ gave the Subaru Forester top honours. The two quite different choices and the rationale behind them made for interesting reading, given that nearly all the judges were members of the NZMWG anyway. So they probably couldn’t make their minds up. The other intrigue was the choice of Driven and the AA, given that two out of three new car purchases by the NZ public are utes or SUVs. So your reviewer wonders what would be Crusha’s Choice of a 2018 CTOAPF (Car to Own and Pay For) given the fact that he owns and pays for cars rather than just driving around in car makers’ loaners? Over 2018, Rural News has got behind the wheel of a wide range of vehicles, from high-end Jaguar Land Rover products to utes and SUVs and even a quirky VW Caddy van. With fascination for utes being a bit like Vegemite (love or hate) I declare now that I will always favour a ‘soft-roader’, i.e. an SUV. Easy to get into, elevated driving
The Lexus RX 350L was Rural News’ car of 2018.
position for over-the-fence farming, loads of space and a few creature comforts all score highly on Crusha’s preferred list. So the one for me in 2018 was the Lexus RX350L. This might be a surprise to opinionated motoring writers who will shout derisively that it’s “only a bloody Toyota in a fur coat”. “So, what?” I say. I own and daily drive a late-model Toyota Highlander -- the underpinnings of the Lexus. I know it will be as reliable as a Swiss Army Knife or a watch from that country and when time comes to say goodbye my trade will be worth money against any new purchase. But what about the RX350L? First impression from the outside is one of up-to-date modernity with a hint of sci-fi from the
angular lines, topped off by the L-shaped daytime running lights. Given that it has the same 3.5L powerplant as my Toyota – with 221kW and 370Nm mated to an 8-speed auto-trans and AWD – then it should drive ok. Standouts include door handles that illuminate as you approach after dark, and a cabin that lights up automatically too. Jump in and be cossetted by ergonomically perfect seats swathed in supple leather accentuated by stitching that sings quality – also a feature of the second and third rows of seats. Driving position sees a large tablet-like display centrally located, while ahead of the wheel a head-up display covers speed, navigation, cruise and audio functions. Add in subtle yet appreci-
ated driver aids like LED cornering lights, rear-view and surround cameras with park-assist and blind spot monitoring and you start to understand what this car’s about. But as the man on the TV says, “but wait, there’s more”: lane keep assist, lane departure alert, pre-crash safety function, autonomous emergency braking with pedestrian detection, all-speed dynamic radar cruise control and adaptive high beam control tick all the boxes. Smile at touches like wireless charging for your mobile device and touchless rear door opening; and let’s get real, we buy cars that make us smile, get us and the family from A to B safely and are not too hard on the pocket.
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RURAL NEWS // JANUARY 15, 2019
30 WORKSAFE / MACHINERY & PRODUCTS / RURAL TRADER
It’s time we all got SunSmart! MARK DANIEL markd@ruralnews.co.nz
THE NEW year is upon us and although a few lucky sorts might still be on holiday, most rural folk are now be resigned to stories about the big one that got away, so it’s back to daily chores onfarm. At this time of the year most of us are enjoying the long sunny days, but its timely to remember that over-exposure to the sun can become a major health and safety hazard for people working outdoors. While sunburn can lead to initial discomfort,
peeling skin and maybe a sleepless night, its longterm effects can in the worst case be deadly. New Zealand holds the unenviable title of having the highest rates of melanoma in the world, a problem that’s largely preventable. Our country’s position on the globe means we’re close to the famed ‘hole’ in the ozone layer that’s been caused by ‘greenhouse gases’. Scientists calculate that NZ is exposed to 50% more ultra violet rays than countries in the northern hemisphere. As for the risk, surveys show that many farmers
Safer Farms ambassador Richard Loe is urging farmers to change their attitudes to sun safety.
and rural workers typically spend at least eight hours a day exposed to the sun and often over many years. In fact, 83% of farmers surveyed said they frequently experienced “peeling skin” from sunburn, so it’s no surprise to learn that 1 in 4 NZ farmers have suffered skin cancers. Treating such cancers costs NZ at least $100 million each year, but the Health Promotion Agency only has a budget of $600,000 to promote SunSafe initiatives. Melanomas and skin cancers are largely preventable, requiring only a little forward planning before
heading out onto the farm. Richard Loe – the farmer, ex-All Black and Safer Farms ambassador -- says he has changed his behaviour on sun safety and he urges fellow farmers and workers to follow suit. “Sun safety is actually not too onerous,” he says. “It’s as simple as slipping on a longsleeved shirt and wearing a wide-brimmed hat or a cap with a tail flap; most people get sunburnt on the face, neck and arms.” Loe also recommends that people outdoors apply at least an SPF factor 30 sunscreen 20
minutes before heading out, and that they take a top-up supply to apply every couple of hours or more frequently if undertaking sweaty work. “It makes sense to plan jobs that can be done in the shade or under cover during the middle of the day when UV levels are at their highest,” he says. “Plan to do any sun-exposed jobs early or later in the day.” Loe also recommends protecting one’s eyes from UV radiation with good quality wrap-around sunglasses with a high protection rating. @rural_news facebook.com/ruralnews
Look mum: no hands – almost! THE ADVANCED Driving System available for the Landini Rex 4 series tractors won the Technical Innovation Award 2018 at the recent EIMA-18 the trade show in Bologna, Italy. Operating specialty tractors in vineyards, orchards and vegetable farms requires lots of operator effort to control vehicle and implements, usually in areas with restricted access. So the Advanced Driving System aims to enhance operator comfort by making it easier to control and manage operations rather than just driving the vehicle. Landini Rex 4 series tractors can now be equipped with an innovative, hybrid driver-assist system that uses ‘mechatronic’ technologies to assist operators in manoeuvring in field and road, using the same principle adopted in cars: these make steering lighter or heavier as speed fluctuates, and they return the wheels to the central position automatically after a turn. The new technology also offers connection to satellite guidance, memory and control of wheel position during
slope and in-furrow operation and offsets the effects of external stresses on tractor steering accuracy. In addition, the operator can manage the functions of the machinery from a single terminal, as the monitor configuration automatically changes according to the functions being used. Optimal efficiency in field operation is by a multi-function all-in-one joystick controlling up to seven electro-hydraulic spool valves. Electronic management of operating hours, field and service reminders is handled by the Landini Fleet Management system that also allows realtime remote diagnosis from the tractor fleet manager’s desk. Benefits of the system include leaving the operator free to concentrate on row operations, and the tractor ECU takes care of driving, recording operating hours, fuel consumption and service reminders. Also, the fleet manager can manage scheduled maintenance or troubleshooting while managing field records automatically.
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HORTNEWS JANUARY 2019
WWW.RURALNEWS.CO.NZ
Sun shines on Gold Peter Burke peterb@ruralnews.co.nz
ZESPRI WILL this year issue licences for an additional 700ha of SunGold kiwifruit and 50ha of organics. Dave Courtney, the chief grower and alliance officer, says Zespri and the kiwifruit industry are in a strong period of supply growth and are working hard to meet growing consumer demand. He told Hort News that to help achieve this, Zespri’s board has confirmed the latest releases; the expansion will occur in all growing regions from Kerikeri to Nelson. Courtney says Zespri’s supply growth allows it to serve more consumers and to sustain good value across the supply chain from grower to consumer. “Growers will have also recently
Barker Fruits Processors Ltd chief commercial officer Nicky Donkers and South Canterbury horticulturalist Hamish McFarlane amid tall rows of blackcurrants on McFarlane’s South Canterbury property, which he expects to harvest for Barkers in midJanuary. Donkers says McFarlane is one of Barkers key blackcurrant suppliers in Mid and South Canterbury. See the full story on pg 7.
Potato sector looking chipper – Page 2
and $140,195/ha, reflectseen our latest December ing reductions in promoforecasts, outlining foretion and freight costs and cast average orchard gate favourable foreign exchange returns (OGR),” he says. movements. “For Green we’re foreZespri Sweet Green is casting an average OGR also up to $7.16/tray and of $5.42/tray and aver$45,855/ha. age return of $63,786/ha. “In the year ahead [we This is down 5c and $341/ expect to advance towards] ha, respectively, on Octo- Zespri’s Dave Courtney our goal of increasing sales ber forecasts, reflecting an to $4.5 billion by 2025,” upwards revision in offshore fruit loss and quality claim pro- Courtney says. Overall, Zespri has had another vision estimates.” Courtney says the average Organic record season in sales volumes. He says Zespri has been sustainGreen return is $8.68/tray and the average per hectare return $68,864, up ing good value across the supply chain slightly based on firmer pricing in key from grower to consumer, supplemarkets. Meanwhile, the average return mented by excellent work on orchard for SunGold and Organic SunGold and through post-harvest. “We expect growth in demand to per tray has increased to $10.46/tray
continue in our key markets in 2019, including in China as we begin expanding into tier 2 cities,” he says. “To meet increasing consumer demand, we’ll keep working with our global partners so that we can provide Zespri-quality, non-NZ-grown kiwifruit to supplement our domestic production.” Zespri aims to keep the brand topof-mind among consumers for all 12 months of the year, and to enable consumers to buy premium, Zespri-quality fruit year-round including the months when NZ-grown fruit is unavailable. He says while kiwifruit still represents a small proportion of the global fruit bowl, the Zespri SunGold Kiwifruit variety is performing strongly, helping attract more consumers to kiwifruit.
RURAL NEWS GROUP
ISSUE 2
A FIRST FOR NZ HORT Pam Tipa pamelat@ruralnews.co.nz
SEEKA CHIEF executive Michael Franks is the first Kiwi to head the board of the Produce and Marketing Association (PMA) A-NZ. He was elected in November 2018 as chairman of the Trans-Tasman organisation, which is affiliated to the US PMA. The position also makes him an honorary director of the US organisation. The PMA comes with responsibility and effort and there are hugely talented people who sit around the table at the PMA A-NZ, Franks says. “Seeka sells a lot of produce in Australia and is a participant in NZ. So rather than just being a carpetbagger in that market we are prepared to commit to being part of the market and part of the industry there,” he told Hort News, on his taking up the chairmanship. “It is a statement by Seeka in my being available to do that. There are wonderful connections there and you get exposure to the latest thinking in the supply chain on sustainability, food safety, the latest marketing trends and industry talent development, as well as providing opportunity to network.” Franks says PMA A-NZ is entering an exciting stage as the industry proactively tackles challenges on food safety and sustainability (including labour and packaging), increased export opportunities and supporting the industry with its normal operational initiatives in marketing and talent development. “We’re well placed to lead the industry to tackle these challenges. We’re well resourced with a board of aspirational industry leaders and financial backing.” PMA for several years did not have much money and so was limited in its scope to get on and do things apart from day-to-day tasks, TO PAGE 6
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2 HORTNEWS
JANUARY 2019
Potato sector looking chipper Pam Tipa pamelat@ruralnews.co.nz
THE OPPORTUNITIES for the potato industry lie in a planned series of sustainable developments, says Potatoes NZ chief executive Chris Claridge. “We don’t see a boom and bust with potatoes, just a gradual improvement,” he says. The sector is now close to a one billion dollar industry. Claridge says looking at the value of exports per hectare they estimate the export receipts per hectare are three times that of dairy. “Our environmental footprint is good as well, so it is a good crop in terms of generating domestic value and export opportunities.” He says Potatoes NZ set up a strategy in 2013 to look at three key targets. The first was to increase the profit for growers by $150/ha per annum. “We have gone back and looked at how we are tracking against those key industry targets and we found the 2013 farmgate value of $103 million increased to $170m in 2017,” Claridge told Hort News. “So we have seen an increase of 65% at the farmgate over that period. “Our hectares have
remained reasonably constant – we are planting about 10,000ha per annum – and there has been a corresponding increase in the farmgate value of that crop.” The second target was to double the value of fresh and processed exports by 2025. In 2013, the value of exports was $110.5m and in 2017 it was $130m. “That’s a 17% increase in export value; our current annual growth rate is 3.5% in export values but we need to get to an annual growth rate of 6% until 2025 to achieve our target of doubling. That is an achievable goal.” The third is to increase the domestic market value by 50% by 2025. The 2013 value – including chips, crisps, retail and food service – was about $650m and the current domestic market is $852m. This is an increase of 28% “We had an annual growth target of 3.5% and our current growth rate in the domestic market is 5% so we are on target to reach our goals,” Clar-
The potato sector’s total industry value at the end of 2017 was $982 million – making it close to a billiondollar-a-year industry.
idge says. “Our total industry value at the end of 2017 was $982m, so it is close to a one billion dollar industry.” Frozen Fry exports have gone from $76.7m to $91.70m between 2013 and 2017.
The industry has 173 growers, many based in mid Canterbury. “Almost two thirds of our crop is grown in the Canterbury region now. In the Canterbury region and North Otago you have five chip processing plants. “We have two large
THREE KEY AIMS IN STRATEGY THE POTATO industry has a clear strategy and key strategic initiatives to achieve its three goals, says Claridge. They fall into the three main themes of market, quality and R&D. “We work in R&D alongside Plant and Food, Otago University and Massey University to identify onfarm and off-farm research projects,” he told Hort News. “The market strategy is to promote healthy chips and fresh table potatoes. We work with a lot of strategic partners to develop healthier chips. “We have our best chip shop competition coming next year. We hold that every two years. We have just had the People’s Choice chip shop awards and 500 chip shops entered. “We continue to promote fresh table potatoes as a complete meal -- you could live on them. People call them
nature’s vitamin pill,” Claridge adds. “We are positive about the future: potato consumption is steady, we have seen good returns in export markets for fresh table potatoes. We are competing well against rice and quinoa which we think should be [supplemented] by potatoes at all times. “Consumers are always concerned about health. We have potatoes that cover all consumer requirements. We have the low carb potato Lotatoes which have been a very popular Turners and Growers brand, then you go to your classic Oamaru Jersey Bennies and more staple Ilam Hardies. There’s potato for almost every occasion.” The industry strategy also emphasises good biosecurity systems and quality and ensuring that high quality seed for the industry is maintained.
Potatoes NZ chief executive Chris Claridge.
processors – McCains in Ashburton and Talleys in Timaru -- and smaller processors, Mahikhi Fries, Heartland Chips and Mr Chips, with small plants at Christchurch. “Heartland is a good example of vertical integration where the farming family is both a grower
and processor,” Claridge says. “But then you see bigger, more international corporate models in McCains. So there is room for both types of operations in the marketplace.” The industry sees opportunities in fitting in with other farming prac-
tices – small seeds, specialised seeds, mixed cropping and dairying. “Potatoes go quite well in a rotation system. “The industry also has good added value – a mixture of retail ready and food service products.”
JANUARY 2019
Tariffs put squeeze on tomato exports In the year ended TOMATOES NEW ZeaMarch 31, 2018, the land represents NZ’s 123 fresh tomato industry commercial fresh tomato exported 3641 tonnes growers who produce at a value of $12.24m about 42,500 tonnes of (FOB). Key markets fresh tomatoes in 120ha include Japan, Ausof greenhouses. tralia, Pacific Islands The fresh tomato and Canada. Over industry has an annual Barry O’Neil winter, last year, we farmgate value of $130m, saw higher levels of including export sales of INDUSTRY imported tomatoes over $10m per year. from Australia than We focus our efforts on is normal, which have being economically and environmentally sustainable growers of to be irradiated due to the fruit fly risk healthy, safe and nutritious fresh toma- they present. A key issue for our industry is toes in a progressive industry that will attract investment. And our goal is to carbon zero 2050 and the associated double the value of the fresh tomato government policies and Emissions sector from its 2014 value to $200m by Trading Scheme (ETS) that will be used to reach this goal. The tomato industry October 2020. Given the finite opportunity to is already part of the NZETS through increase domestic value and sales, units paid on heating greenhouses, we have a major focus on export mar- which results in significant produckets and delivering high quality fresh tion costs for our growers. While we can understand the aspitomatoes that attract a premium price.
Comment
rational government goals, we believe there needs to be significant investment in research and the development of new technology to give growers the tools they will need to lower net emissions while still remaining competitive economically especially considering our competitors internationally don’t have these additional production costs. Any government policy changes in such a significant area need to be progressed in a consistent and fiscally prudent manner. Biosecurity of course is another key focus for us. We are signatories to the Government Industry Agreement on Biosecurity Readiness and Response (GIA) and the Brown Marmorated Stink Bug and Fruit Fly readiness and response operational agreements, and we’re currently working towards a tomato sector operational agreement for our top priority pests which we hope to sign with MPI before the end of this year. Last year, members of Tomatoes NZ
voted in favour of a biosecurity levy, now being signed off by MPI. But existing pests in NZ at times cause major production challenges and as an industry we are spending much time and effort on finding biological control approaches for these. We applied and obtained approval from the Environmental Protection Authority (EPA) to import Tamarixia to control a recently introduced psyllid, but these processes are expensive and take
AGROPLUS SERIES
HORTNEWS
a lot of time, resulting in us also looking within NZ to find biological control solutions. We are working with the Bio-Protection Research Centre at Lincoln University and funding a PhD student to identify insects already present in NZ that will kill some of our glasshouse pests, especially whitefly. • Barry O’Neil is the chair Tomatoes NZ and newly elected president of Horticulture NZ.
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4 HORTNEWS
JANUARY 2019
Hort’s growing profile changing Peter Burke peterb@ruralnews.co.nz
THE PROFILE of horticulture is changing, according to a report by the Horticultural Export Authority (HEA). The report says the industry has consolidated greatly in the last two years. Some sectors have fewer growers but larger commercial growing operations and in some cases the acreage of crops has increased. Two examples of this are the onion and capsicum industries. In 2016, there were 95 onion growers with 4895ha in production versus 2018 with 91 growers and 5225ha planted. In the case of capsicums, in 2016 there were 75 growers. However, in the past two years the number of growers has dropped to 46 – yet production has increased from 15,000 tonnes to 19,000t. HEA chief executive Simon Hegarty says economics are the chief cause of the consolidation, notably compliance, increasing costs of labour and transport, all of which have pushed up production costs per hectare. World trade is at present in a bit of mess with uncertainty over Brexit and other trade issues, he says. “People don’t like uncertainty and we have enough uncertainty in what the climate throws up every year without the uncertainty of trading conditions being overlaid on the industry as well,” Hegarty told Hort News. “A hefty risk goes with producing perishable products.” Hegarty says tariffs cost the NZ horticultural export sector an estimated $214 million and while this amount will reduce with the phasing in of the CTPP this year, tariffs remain a significant impediment. He cites the example of Europe where NZ pays an estimated $70m
Trade Minister David Parker
BENEFITS COMING FROM REVAMPED TPP DEAL
Hegarty estimates that tariffs cost NZ horticultural exports $214 million a year
“Tariffs are a tax on product coming across the border; there is no justification for them. And it’s not just charged on the product itself, but on the insurance and freight costs as well.” in tariffs. “Tariffs are a tax on product coming across the border; there is no justification for them. And it’s not just charged on the product itself, but on the insurance and freight costs as well.” Hegarty says NZ respects the right of countries to protect their borders, but some nations take actions which simply aren’t justified. He points to situations where both sides accept the science relating to imports but politics enters the fray. “It can be a grey area and that’s where the challenges lie. We believe
in argument based on sound science, but sometimes it is not always science that is causing delays or disruptions in products getting into markets. “You can have situations where ports of entry are limited or extra requirements or checks pre-shipment cause delays. There are also delays in getting access to new markets because in some cases countries will only consider one or two applications at a time and that is a problem for us.” Hegarty says exporters rely heavily on organisations such as MPI to sort out problems and it’s critical
Horticultural Export Authority chair Simon Hegarty.
that it and other agencies are suitably resourced and have people with the right skills to assist exporters.
NZ EXPORTERS exporters are among the first to benefit from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) which took effect at the beginning of the new year. Minister for Trade and Export Growth David Parker says the CPTPP provides NZ with trade agreements for the first time with three big economies -- Japan, Canada and Mexico. He says tariffs in those countries will start to reduce immediately, giving a further boost to the competitiveness of NZ products in those markets. “When Vietnam joins the agreement on January 14, 2019 it will make an immediate double tariff cut to catch up. Japan’s second tariff cut will take place three months later on April 1. “The CPTPP has the potential to deliver an estimated $222 million of tariff savings to NZ exporters annually once it is fully in force, with almost half of that ($105m) now available in the first 12 months. This will benefit NZ workers and businesses from Kaitaia to Bluff.” Parkers says Bay of Plenty, which produces 79% of NZ’s kiwifruit and is our largest producer of avocados, stands to gain as tariffs disappear immediately across the CPTPP region.
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HORTNEWS
JANUARY 2019
Marlborough maintains its title as home of NZ garlic
Tessa Nicholson
THERE WAS a time 20 years ago when the aroma of garlic was what Marlburians woke up to during the months of January and February. The unmistakable tang permeated the air, as the country’s largest garlic producing region harvested its crops. Those days may be long gone, due to the ever-growing onslaught of vineyards taking over garlic paddocks, but Marlborough still maintains the title of New Zealand garlic king, producing about 70% of the country’s total crop. John Murphy, chief executive of Marlborough Garlic (one of two major producers in the region) says there is no way they
can compete against the US and China in volume, but they can excel in quality. Interestingly, given Marlborough’s renown for wine, it is the brix (sugar level) of the garlic grown here that sets it apart from that grown elsewhere, he explains. You may not think of garlic as sweet, but to put it in perspective, a ripe sauvignon blanc grape would contain about 23 brix. A ripe garlic clove, ready for picking would hit the 40 brix level – something almost impossible to achieve elsewhere in the world. What is it about Marlborough that allows this? Murphy says it’s hard to tell, but it’s likely to be the same influences that
impact on grapes – sunshine, rainfall, GDD and soil. Marlborough Garlic has 80ha of garlic under production and harvests close to 7 tonnes/ha. That, Murphy says, is considered a reasonable yield worldwide, even if it is well below the 10 – 12tph grown in some other countries. The smaller yield goes into premium products -- fresh, dehydrated, crushed or peeled. “It doesn’t matter which product the garlic ends up in, it is all grown and treated in the same way -- as a premium product,” he tells Hort News. But perhaps the most intriguing garlic product to come out of Marlborough Garlic’s factory
Chief executive of Marlborough Garlic John Murphy.
is Garlic Noir – or Black Garlic. No, it isn’t grown in darker soils and it is not a different form of bulb; instead it is normal garlic
that is slow roasted (or fermented as some would say) for weeks on end. Six weeks, in fact. Marlborough Garlic has three massive ovens
that hold 218 roasting dishes each. Each dish is filled with garlic that is broken and peeled, prior to spending those long weeks roasting away slowly. The slow cooking triggers the Maillard reaction, which like caramelisation is a form of non-enzymatic browning. The process takes away the astringency of garlic as we know it, and the pungent aroma. The end product is often compared to a dried fruit -- smoky, sweet and slightly chewy. And believe it or not, it is a perfect match for cheese and chocolate -- not a food match you probably would have considered with normal garlic. “Probably the most important thing about
this,” Murphy says, “is that there are no ingredients other than fresh Marlborough garlic -nothing at all, yet you are left with this intriguing product that sits somewhere between sweet and savoury.” But as with all new products, consumer acceptance takes time. “Consumer research we have done shows that its biggest attribute is its mystique. “And its biggest problem is its mystique, in that people don’t quite know what it is, but they are absolutely intrigued by it,” he told Hort News. The new product is a diversification by the company, which Murphy says is vital if they want to stay ahead of the pack.
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6 HORTNEWS
JANUARY 2019
Hort’s growth not just in paddock Nigel Malthus
HORTICULTURE IS in a growth phase and has ambitious goals, says the director of the HortNZ Leadership Programme, Sue Pickering. Many people who have been a long time in the industry are now looking towards retirement, she says. “The whole realm of
succession, and people with skills and leadership qualities, has become high on the radar. It means programmes like this are popular, and people are recognising the need for them.” Last year, a record 35 people applied for the 18 places available on the course. “We’re finding a real demand at the moment.”
A 25-year veteran of the horticultural industry, Pickering has held roles in HortNZ including senior business manager and acting chief executive, developing such initiatives as the Leadership Programme and the Young Grower of the Year. She has recently struck out on her own with a business coaching consultancy but continues to
run the Leadership Programme for HortNZ. Having started in 2001 with 12 participants a year, it is going “from strength to strength” and now has at least 225 graduates, many of them now “popping up everywhere” in the industry. A survey of horticultural employers last year also gave it positive feedback. Pickering runs the
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Director of the HortNZ Leadership Programme, Sue Pickering.
course with the help of two other directors -- Lincoln University professor Tony Zwart and Dr Patrick Aldwell. The programme runs between August and October each year in three parts: a four-day residential at Lincoln, a six-week project in which each participant works on their own personal and professional development, then three days in Wellington where they present their projects and get an introduction to the country’s regulatory and administrative landscape. Pickering says an objective of the programme is to give participants an understanding of how Wellington works from an industry leadership point of view. They get to call on and discuss the state of the industry
with the Minister of Agriculture. “We’re very lucky to have had that connection ever since the year dot,” she says. “The context of this is some of the bigger issues in industry -- biosecurity, environment, natural resources, labour issues -across the board. We connect with folks who are already leading, and focus on strategic thinking at all different levels -- whether industry, organisational or individual.” Pickering says there is no age limit to participation and past attendees have ranged from their early 20s to their mid50s. It is open to anyone committed to horticulture and who either shows potential for or is already in a leadership role in the industry.
“That diversity of ages is a real advantage point for the programme because we work with the people in each year. We find part of the philosophy of this programme is that there’s a lot to be gained from the participants themselves. They find they’ve got a lot in common. They feed off each other and the issues that we work with. “You can have kiwifruit folk, cherry growers from Otago, someone from the corporate T&G world, someone from the citrus area north of Auckland; you name it, we have it, across different types of businesses, across different sectors and across the regions.” Entries for this year’s course open in early March and close on May 31.
A FIRST FOR NZ HORT BOSS FROM PAGE 1
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Franks told Hort News. Latterly it has found itself better-off and “having some means to invest,” he says. So the board and management are now working out exactly what they will invest in. “We know what our platforms are but we are looking at what we will deliver under those platforms. We have to focus on what we are going to achieve. “It is exciting. Food safety is hugely important in Australia and NZ, ensuring that Harps (Harmonised Australian Retailer Produce Scheme) in the retail systems are working correctly and that people are safe when they consume products bought through the supply chain.”
Sustainability is another platform along with providing the latest marketing trends in Australia and New Zealand. PMA runs great seminars on those trends, Franks says. “They have an excellent supply chain, produce executive-focused series of training courses and they provide opportunities for members to talk and meet together outside of their conference.” As the chairman he is part of an executive and a board. “Part of my role is to make sure the association functions properly as a governance body and goes through the process of challenging itself and making sure it knows what its members want it to do and then to get it done.”
HORTNEWS
JANUARY 2019
7
South Canterbury horticulturalist Hamish McFarlane amid tall rows of blackcurrants which he expects to harvest for Barkers in mid-January. RURAL NEWS GROUP
Region helps magic berries to thrive Nigel Malthus
THE RICH black colour of blackcurrants is what makes them so valuable, says South Canterbury grower Hamish McFarlane. The colour comes from a class of antioxidants called anthocyanins. “Little wee bits of magic,” he tells Hort News; they give blackcurrants the health and wellness benefits they are famous for. McFarlane believes something about the climate that makes South Canterbury ideal for growing the fruit. “Some of the varieties we have here are the same as what’s grown overseas but ours would probably be double the anthocyanins. We believe it’s due to our latitude.” McFarlane is carrying on a tradition begun by his father, who started supplying fruit in 1981 to the iconic Geraldine fruit processor Barkers, who use blackcurrants in a range of syrups, jams and condiments. About 100ha of his 550ha is planted in blackcurrants. He also grows barley, seeds, potatoes for McCains, and variously coloured carrots for a Timaru company that juices them for export. He also grazes a few trade lambs and dairy heifers. Barkers’ chief commercial officer, Nicky Donkers, says McFarlane is one of their key blackcurrant suppliers in Mid and South Canterbury. She agrees that New Zealand blackcurrants contain some of the highest levels of anthocyanins in the world and they are also an excellent source of vitamin C and other antioxidant polyphenols.
Ripe Blackcurrants. SUPPLIED/CROP & FOOD RESEARCH
“Some of the varieties we have here are the same as what’s grown overseas but ours would probably be double the anthocyanins. We believe it’s due to our latitude.” Donkers says proof of their health benefits, backed by “credible and continually evolving research,” is stronger than ever and that is a message Barkers and the industry want to get out to the public. People are going to live longer but want to be fit. “Many sportspeople are also now using blackcurrants in some form for exercise recovery. They are a natural functional ingredient powerhouse,” she adds. McFarlane says part of the reason he likes blackcurrants is their low environmental footprint, low fertiliser needs and their not being grown in a monoculture. Grass grows between the rows and crowds out most weeds. Blackcurrants are planted in winter from cuttings, produce their first crop two and half years later, and may produce for up to 15 years. Depending on variety, McFarlane may mow them right back to ground level once during their lifetime. He side prunes annually to take out branches encroaching into the space between rows. He runs an integrated pest management (IPM) programme incorporating cultural, biological and chemical controls, aiming to let nature sort out problems where possible. Cultural control means being
smart about what gets planted, where and how. Biological control includes releasing a predator species to deal with a pest called the two-spotted mite, which otherwise can be a problem in the heat of January. Pheromone ties every 3m down the rows attack another significant pest -- the currant clearwing moth -- by confusing them “so they forget to mate,” says McFarlane. He makes sure any chemicals used are carefully targeted to pests and are safe for the beneficials. “So we’re not organic, but we use best practice.” McFarlane has half a dozen main blackcurrant varieties with different behaviours, flavour profiles and harvesting dates, to spread harvest (using a mechanical harvester which shakes the fruit free) across about six weeks from early in the new year. McFarlane says his varieties aren’t chosen by accident, but to suit the taste profile and other parameters Barkers looks for. Donkers gives away no details but hints at a new cane fruit soon to come to market with McFarlane’s help. “The beauty of what we’re trying to do as a business is work closely with growers like Hamish so that we can look at our future,” she says. “Collaboration is key as we move forward.”
Barker Fruits Processors Ltd chief commerical officer Nicky Donkers amid the blackcurrant canes on Hamish McFarlane’s farm. RURAL NEWS GROUP
SUSTAINABILITY IMPORTANT IT IS important for Barkers to partner with responsible caretakers of the land, says Barkers’ chief commercial officer, Nicky Donkers. “Regarding our brand and transparency, people want to know where their food is coming from and how it is grown.” That is why Barkers recently partnered with Irrigation NZ and others, to put on an interactive display that went to the Ashburton A&P Show (where it won an award for the best small trade site) and the New Zealand Agricultural Show (Canterbury). The display aimed to inform people of the very wide use of irrigation in all sectors including horticulture. “It’s fair to say that water and dairying get a lot of ‘air time’,” Donkers told Hort News. “But that’s only part of what water is actually used for in NZ. People may not realise that it’s an important contributor to growing great food. It’s one component, along with location, great natural light and sunshine, and general care. “People see our products on the shelf or consume them in a cafe but may not be aware of where some of them originated so let’s trace it back to where it all begins,” she said. Responsible use of the land by its suppliers is important for Barkers. “Even though farmers from time to time get criticised for what they do, most farmers are doing an amazing job caring for the land, wanting to leave it in great shape for the next generation. We want to make sure we’re working with responsible partners in growing fruit because our brand is at stake as well.” McFarlane’s farm has had an approved farm environment plan (FEP) for the past five years. He is also chair of the Orari Temuka Opihi Pareora water zone committee. A wet spring meant very little irrigation in the early part of this season, but most years he will irrigate, by dripline, pivot or gun.
8 HORTNEWS
JANUARY 2019
Frost fans strike a blow for yields Mark Daniel markd@ruralnews.co.nz
DAMAGING FROSTS typically occur after a cold, cloudy day followed by a still night with clear skies. The earth quickly radiates any stored heat after sunset and an inversion layer occurs -- the air being coldest near the ground with a warmer layer of air above it. The degree of crop damage depends on the minimum temperature reached, the rate at which the temperature falls and the amount of time below a critical temperature. Critical temperature is defined by Young (1966) and Johnson and Howell (1981) as “the lowest temperature a bud (or shoot) can endure for 30 minutes or less without injury”. However, it’s not all about avoiding catastrophic loss; the aim is also to protect against cold injury to increase a
grower’s current yields and improve the quality of the fruit while ensuring continuity of supply or shelf space. Assessing frost risk is the first step; site selection is still the key to lowering frost risk. Crops become more susceptible to frost damage when they are located at high elevations, in low lying areas where cold air settles and next to obstacles to air movement such as tall vegetation, levees and buildings. Orchard design should allow for orienting trees in the direction of predominant slopes to promote air movement down-slope and through the orchard. In flatter areas, orient trees in the direction of the prevailing wind. After selecting the location and orchard design/orientation, methods to protect against frost and cold injury fall
The Frost Boss C49 fan is one of the quietest on the market.
into one of four main groups: wind (frost fans or helicopters), water sprinkling, heat introduction and orchard management/maintenance practices (such as removing ground cover). Frost fans are a well proven technology for mitigating the devastating losses. Many growers use them as a tool to combat cold injury by program-
ming them to start, based on a preset temperature, helping to prevent damage from events that may only last a few hours in the middle of the night or early morning. Frost fans work by utilising warmer/drier air from the ‘inversion’ layer to create air movement at the fruiting/flowering height in orchards on still, cold nights, pre-
venting damage to flowers, soft tissue and fruit. Anecdotal evidence from growers has shown that while the use of frost fans can save a crop from total loss in a severe frost, they can also play a significant role in improving the yields and quality of fruit that can slowly be eroded by several previously unrecognised cold snaps. New Zealand Frost
HORTNEWS Introducing Hort News, a new national publication serving the needs of our booming horticulture sector. Distributed with the leading national farming publication Rural News, Hort News will be delivered to all key horticulture regions nationwide. It is the complete solution for readers and advertisers, covering every aspect of the wider horticulture industry – news, agribusiness, management, markets, machinery and technology.
Fans Ltd (NZFF) manufactures a range of frost fans (aka wind machines) under the FrostBoss trade mark, including the C24 (2-blade), C39 (3-blade), C49 (4-blade) and FrostBoss C59 (5-blade) machines. The FrostBoss C49 (4-blade) machine is claimed to be the bestselling frost fan in NZ and Australia. The FrostBoss C49
was developed with help from former Team New Zealand aerodynamics research engineer Richard Karn, to optimise noise reduction by using a greater blade working area and slower rotational speed than a 2-blade fan. In addition, the much higher blade passage frequency of the 4-blade fan means the noise signature no longer has a low frequency beating sound, such as with an Iroquois helicopter. Along with the FrostBoss C49, the FrostBoss C59 (5-blade machine) is the quietest on the market. Fan upgrades can improve efficiency and productivity, such as by retrofitting composite blades, centrifugal clutches and gearboxes, particularly when coupled with automated controllers and web-based monitoring. www.nzfrostfans.com
HORTNEWS
The secret behind success – Page 6
ISSUE 1
! g n i k s i t i u r f i w i K WS.CO.NZ WWW.RURALNE
OCTOBER 2018
Peter Burke
peterb@ruralnew
s.co.nz
by consumers to A UNIVERSAL trend er lives is driving live better and healthi Zealand kiwifruit. the demand for New ve Don MathieZespri chief executi fits perfectly into son says kiwifruit strong demand that scenario, causing in all its markets. growth has sales says Mathieson
this year: 150 milbeen strong again about 120 million lion trays, up from trays last year. by the SunA lot of that is driven is good growth there gold variety, and green. Zespri also in we see that “Looking long term, with consumers trend continuing ts, great food wanting great produc with nutrition,” items that are filled News. Mathieson told Hort
in that space “Kiwifruit is a real king s and fibre and with all the vitamin ts it has versus the nutritional elemen on that trend we see other fruits. Based strong demand.” group of conHe says their target very health consumers tend to be region-specific but scious, which is not the board. Zespri is tends to be across in both green and getting good growth China going very gold in Asia, with
Jack Frost never sleeps Cromwell orchardist d at Simon Webb picture ss sunrise after a sleeple night of frost-fighting. Overhead sprinklers d are a common metho of preventing frost damage as water on buds releases a little as warmth into the buds ts it freezes, then protec of them from the worst air. cold the 7 – See more page
attractive price and sumers at a more d. well. has helped drive deman and they are that Taiwan is doing “It’s going well in Japan “At the same time, r-one market in number-one conour now is once again our numbe and well are also seeing great per capita in the market on Asia this year. We sumpti and have seen the growth in Korea world.” lly come down. ers have always duties start to gradua European consum duty on our ters of Zespri green, “We used to pay 45% been strong suppor there but with NZ’s free son says consumers exports to Korea, the duties but Mathie them with ent be attracted to Suntrade agreem are now starting to off and we have is because Suncome to this s started believe have gold. He is kiwifruit to consweeter taste and slightly a been able to offer our has gold easy to eat. and continues “France is going well RURAL NEWS GROUP market for us. In to be a high growth a been has years, it the last couple of European region. real performer in the good growth in And we are also seeing in Spain, the Bens market major all our ny and Italy.” elux region, Germa
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first issue of Welcome to the Hort News. is proud Rural News Group national to launch this new the fastserve to tion publica sector. ltural horticu g growin op Hort News is a one-st lture read for all horticu industry sectors, covering , markets, news, management nery, technology, machi opinion and more. Rural News Distributed with regions, in key horticulture the only Hort News will be tion independent publica horticulcovering the entire tural industry. it. We hope you enjoy Adam Fricker General manager Rural News Group
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