AGRIBUSINESS
MACHINERY & PRODUCTS
NEWS
Tags help keep track of NZ velvet. PAGE 21
Massey Ferguson looks to increase its market share.
Are we becoming too dependant on China for our primary product exports? PAGE 6
PAGE 31
TO ALL FARMERS, FOR ALL FARMERS JUNE 18, 2019: ISSUE 678
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AGRIBUSINESS
MACHINERY & PRODUCTS
NEWS
Tags help keep track of NZ velvet. PAGE 21
Massey Ferguson looks to increase its market share.
Are we becoming too dependant on China for our primary product exports? PAGE 6
PAGE 31
TO ALL FARMERS, FOR ALL FARMERS JUNE 18, 2019: ISSUE 678
www.ruralnews.co.nz
DIRA’s select few
FARMERS FLAT PETER BURKE
DAVID ANDERSON
AGRICULTURE MINISTER Damien O’Connor relied, in part, on a handpicked group of dairy sector ‘commentators’ to help him come up with proposed changes to the Dairy Industry Restructuring Act (DIRA). Members of the clandestine committee met three times with O’Connor, between August 2018 and May 20, 2019, “to discuss the Government review of the Dairy Industry Restructuring Act 2001 (DIRA) and its impact on the dairy industry”. Members of the previously undisclosed group were Hamish Gow of Massey University; Arie Dekker of First New Zealand Capital; Lindsay Blake, of Waiomou Valley Farms Ltd; Tony Baldwin; Keith Woodford; Peter Fraser and Lain Jager as chair of the
Primary Sector Council. O’Connor told Rural News he “pulled together the group” as part of the mix to give him an informed opinion on the dairy sector and changes that were needed. The minister added that a note of the first meeting was taken and posted on MPI’s website. “However, formal minutes weren’t taken because the purpose of the meeting was to test thinking and ideas and not to ascribe subsequent actions. I personally have a view that we can often be too timid when we are debating big issues like this and should not
be afraid to listen to opposing views.” While the minister may be comfortable with his DIRA group, some of its members will raise eyebrows in the wider dairy sector, especially among Fonterra shareholders. Tony Baldwin was a government official involved in the reformation of producer boards back in the late 1990s and has been a long-time critic of Fonterra since it was set up in 2001. Meanwhile, Peter Fraser, who describes himself as an agricultural economist, is vocal critic of both Fonterra and the dairy industry. Fraser has
been the ‘consultant of choice’ used by Fish & Game and other environmental activist groups when opposing dairy and/or irrigation expansions. And Keith Woodford recently boasted in a blog about … “being part of a group of so-called ‘lateral thinkers’ to explore some of the issues around DIRA”. “I am not going to say who said what and there were no minutes kept. However, I can say there was considerable diversity of thought as we wrestled with some complex issues,” he wrote. TO PAGE 10
Ireland wants us! Ireland can provide New Zealand companies with an excellent launching pad into Europe, especially in the light of Brexit. That was the message from Ireland’s Minister for Business, Enterprise and Innovation at Fieldays last week. Heather Humphreys told Rural News that Ireland is the business gateway to Europe, giving barrier free access to 500 million consumers. On her first visit to NZ, Humphreys said she felt a warm feeling being here and was impressed with the many innovative companies at Fieldays, including Irish ones. She says Ireland and NZ have much in common culturally and many opportunities exist to deepen and strengthen this relationship with the advent of Brexit. See more page 4.
peterb@ruralnews.co.nz
FOR MANY farmers the fun has gone out of farming. That was the view of Federated Farmers president Katie Milne, speaking to Rural News at Fieldays last week. For the first time in years the talk at Fieldays reflected an aura of gloom or flatness. Many farming leaders and exhibitors spoken to by Rural News echoed this sentiment. Based on her soundings of the industry, Milne says the mood was a bit sombre, reflecting what Feds has picked up in recent weeks at its provincial annual meetings NZ-wide. “They are saying they have never felt as much trepidation, a feeling of being under siege and a lack of confidence,” Milne says. “It should be a stronger feeling because dairy prices are not too bad, lamb is ok, beef is ok and probably going to get better. But we have picked up the vibe from farmers that they are bit despondent and not sure about their future. They’re basically unhappy.” Many farmers – especially the older ones – feel stressed by the amount of compliance coming at them and some are exiting the industry, Milne says. “Farmers want practical, sensible and affordable decisions.” Farmers haven’t seen what the new water policies will look like and this is causing them concern. And TO PAGE 3
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RURAL NEWS // JUNE 18, 2019
NEWS 3
Massey’s new generation beef wows the crowds
ISSUE 678
www.ruralnews.co.nz
the Hereford Kiwi cross. And Schreurs says they are now looking at heifers, analysing their quality and yield. At slaughter the bobbies’ meat is quite red because of their outdoors pasture feeding. The collagen in the meat of younger animals is more soluble, making for tenderness when cooked. New generation beef is still far from making it onto supermarket shelves and is still in the pilot stage, Schreurs says. But the researchers are busy pointing out the possibility of producing this meat. They are also investigating meat processors’ possible interest and whether they see a market for the product. But while this is all positive, Schreurs says the challenge for processors is that the animals are not high yielding. It may sometimes be better to raise the animals to 15 months before slaughter, allowing farmers to use the spring flush as feed. Going by its taste, new generation beef has a great future.
PETER BURKE
NEWS ��������������������������������������1-19 AGRIBUSINESS ��������������� 20-21 MARKETS ��������������������������22-23 HOUND, EDNA ���������������������� 24 CONTACTS ����������������������������� 24 OPINION ��������������������������� 24-26 MANAGEMENT �������������� 28-29 ANIMAL HEALTH ������������������ 30 MACHINERY AND PRODUCTS ����������������������� 31-34 RURAL TRADER ������������� 35-36
HEAD OFFICE Top Floor, 29 Northcroft Street, Takapuna, Auckland 0622 Phone: 09-307 0399 Fax: 09-307 0122 POSTAL ADDRESS PO Box 331100, Takapuna, Auckland 0740 Published by: Rural News Group Printed by: PMP Print CONTACTS Editorial: editor@ruralnews.co.nz Advertising material: davef@ruralnews.co.nz Rural News online: www.ruralnews.co.nz Subscriptions: subsrndn@ruralnews.co.nz ABC audited circulation 79,599 as at 30.09.2018
peterb@ruralnews.co.nz
A NEW, tasty meat product could solve a problem for dairy farmers and yield them extra cash. A new generation beef being explored by Massey University had Fieldays visitors queueing for samples. Researcher Dr Nicola Schreurs, project leader for two years, spoke to the uni’s site visitors, inviting them to try the meat, some prepared as steak, some as a Vietnamese ragout (stew). Schreurs says new generation beef is a way of using the dairy industry’s bobby calf surplus that would otherwise be slaughtered. She and her team have reared bobbies for a year to produce this new beef. From a farm systems point of view, says Schreurs, rearing these animals to just one year helps by getting them off before their first winter and may be good for the soils on some farms. And meat quality can be higher in younger animals. “All things combined, this underutilised resource out of the dairy industry has positives for farm systems
Massey University’s Nicola Schreurs with samples of new generation beef.
and is likely to produce a high quality meat product,” she told Rural News.
At this stage, the trial is looking at typical animals from the dairy industry,
@rural_news facebook.com/ruralnews
Farmers feeling flat FROM PAGE 1
they have just had a zero carbon bill dumped on them. “Whilst farmers understand and want to get to that, they have been hearing the science on methane, which is saying if they don’t increase their ruminant numbers they will not be adding to global warming,” Milne says. “It looks like we are expected to do all the heavy lifting for
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CO2. So a lot of these things are adding up and many farmers are saying, ‘gee, there’s no fun left in this for me anymore.’ That’s quite a sad place to be.” Milne says the rising world population needs good, efficient food producers. Meanwhile farmers being told that people don’t like their cows and sheep and that they should move to horticulture is stressing them. Labour shortages remain a
big issue in farming and Milne says the Government must make it easier for some overseas workers to bring their families to NZ and remain here permanently. Immigrant workers are necessary because NZers don’t want to go farming. Milne sees no reason why overseas workers should not be allowed to migrate here just as most other New Zealanders have.
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RURAL NEWS // JUNE 18, 2019
4 NEWS
PM concedes agri sector uncertainty SUDESH KISSUN sudeshk@ruralnews.co.nz
PRIME MINISTER Jacinda Ardern acknowledges uncertainty about climate change is making life difficult for farmers.
Ardern told agribusiness leaders at National Fieldays last week that the message is coming through to her. “I absolutely hear that, how difficult uncertainty is for the industry,” she
told about 100 people at the KPMG Agribusiness Agenda launch. While the Government and industry agree on the challenges caused by climate change, water and biosecurity, uncertainty
Irish connection PETER BURKE peterb@ruralnews.co.nz
IRELAND’S MINISTER for Business, Enterprise and Innovation, Heather Humphreys, led a contingent of Irish businesses to the Fieldays last week. Among their products were innovative agritechnology and machinery tested in the challenging Irish climate. Passing this test makes the equipment ideal for New Zealand conditions, Humphreys said. Ireland see NZ as a key element in its current and future export strategy via direct sales and partnering with NZ companies. “Many see significant potential for long term relationships because of the similarity of the two countries’ agricultural bases. This enables Irish agri
solutions to seamlessly and successfully integrate with NZ agricultural landscapes,” she told Rural News. The two countries share a similar outlook and values which set the foundation for a growing commercial relationship “I see this going from strength to strength,” she says. Humphreys said the embassies set up recently by both countries will help deepen the relationship. Ireland and New Zealand have much in common culturally, and many opportunities exist to deep and strengthen that relationship with the advent of Brexit. “Because of this obviously NZ is going to be looking for an EU base and what better place to choose than Ireland?” Humphreys asks.
remains on how to tackle those problems. “The issue for us, the Government, is that we could remove that uncertainty by coming out quickly with solutions engineered in Wellington,” she says. “However they may not be the best solutions we could design and collaborate on, so there is uncertainty while we work collectively to find solutions. That’s potentially in the climate area. The challenge and opportunity is to keep looking together.” Ardern pointed to the Government’s $229 million Sustainable Land Use Package in the Budget, and said the Government and industry must find and design solutions that will drive genuine change. Ardern paid tribute to
PM Jacinda Ardern
farmers for their work so far on the environment, saying this helped start negotiations on a free trade agreement (FTA) with the EU. “On two of my recent trips to France it became clear that New Zealand got the mandate to negotiate the EU FTA because France saw we could lift the environmental proposition of the group. “They saw that as a benefit and less of a threat to them.” Ardern says farmers shouldn’t underestimate the influence of their
environmental credentials on the EU FTA. The KPMG Agribusiness Agenda 2019, based on interviews with agribusiness leaders, reports that the zero carbon legislation recently proposed by the Government is a popular topic. Report author Ian Proudfoot says contributors reflected on the legislation as being the most confronting change to face the sector since subsidies were removed in the 1980s. “Leaders recognise the industry has a key role
to play in transitioning to a zero carbon future but it is fair to say everybody is starting their journey from a different place in respect of personal beliefs and actions already taken,” Proudfoot said. “There was recognition that land use and farming systems will in some cases have to change. “Rapid change will be best achieved through a mechanism that incentivises progress rather than delivering retribution for past actions.”
BUDGET FUNDING UNVEILED AGRICULTURE MINISTER Damien O’Connor claims at least 2000 farmers will be helped with on-the-ground support to lift their environmental sustainability as part of Budget 2019 funding. At Fieldays, last week, O’Connor joined Prime Minister Jacinda Ardern to detail the $229 million Sustainable Land Use Budget package. “More than $35m will go towards providing practical advice, information and tools for farmers and growers to improve their operations on the ground,” O’Connor said. “This funding goes hand in hand with a regulatory package designed to improve the environmental outcomes of land use.
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“An important part of this is extension – pulling together clusters of farmers and growers in different regions to share information, insights and advice with like minded people who understand local issues.” O’Connor says he want two extension clusters under way by September, with another rollout later in 2019 and in 2020. “Over the next four years, up to 2200 farmers in targeted catchments and regions will have the direct on-the-ground support needed to lift their environmental sustainability and boost their bottom line.” Some $12m has been committed to “support” Māori landowners and
agribusinesses to get “greater value and sustainability from their land”. Meanwhile, $43m more is assigned to upgrade Overseer. “The funding will help to improve the accuracy of Overseer’s modelled estimates and boost the range of farm systems and conditions it models,” O’Connor claims. This and initiatives already under way will help develop integrated farm plans to make life easier for farmers. “We want to develop a more streamlined approach for farm planning, incorporating biosecurity, animal welfare, food safety and health and safety.” @rural_news facebook.com/ruralnews
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RURAL NEWS // JUNE 18, 2019
NEWS 5
Nats launch primary sector policies DAVID ANDERSON
A NEWLY elected National government would offer special work visas for primary sector workers, instantly deport visitors breeching biosecurity laws and set up mobile health clinics for remote rural regions. These ideas are all part of National’s new primary sector discussion document launched at Fieldays last week. National leader Simon Bridges says his party understands that farmers and growers are concerned about mounting workforce shortages, employment law reforms, climate change and environmental regulations and increasing taxes. “National’s team of experienced rural MPs have come up with a series of ideas and proposals that we think can address these issues and we are excited to hear any feedback.” Bridges says the document highlights are a primary sector visa to address workforce shortages, increased penalties for biosecurity offences and mobile rural health clinics. “We also address important areas neglected by the coalition Government, such as water storage, biotech-
nology and food safety.” Bridges claims the document is part of the biggest policy development process by a parliamentary opposition in over a decade. “National holds every rural seat in Parliament except one and we’re proud to represent rural New Zealand. We’re working hard to ensure we’re ready to govern in 2020, should we have the opportunity.” National is proposing a primary sector visa to help provide workforce certainty for employers, says immigration spokesman Michael Woodhouse. He says it would be an avenue for skilled and experienced migrants seeking residence and a future in NZ. “It would work alongside other National initiatives such as supporting vocational education and agricultural training, extending the Recognised Seasonal Employer scheme and promoting the sector as an attractive career prospect for young people.” The proposed mobile rural health clinics would provide ‘WoF’ type health check-ups in remote areas to ensure rural people have easy access to quality healthcare, says rural communities spokesman Matt King.
National leader Simon Bridges and agriculture spokesman Nathan Guy.
“National wants to pilot mobile rural health clinics serviced by health practitioners which will regularly travel to remote rural communities where they can provide general health check-ups and mental health support for locals.” Meanwhile, National is also pro-
FARMERS URGED TO SUBMIT ON CARBON BILL PAM TIPA pamelat@ruralnews.co.nz
BOTH DAIRYNZ and Beef + Lamb NZ are urging farmers to have their say on the proposed Zero Carbon Bill by July 16. DairyNZ chief executive Tim Mackle says the potential implications of this legislation, in particular the targets for methane reduction, are huge for the agriculture sector. “That’s why farmer engagement is so important,” he says. He is encouraging dairy farmers to make a submission. The bill’s full name is the Climate Change Response (Zero Carbon) Amendment Bill. “DairyNZ welcomes the opportunity to engage constructively and share our perspective on this Bill and we are encouraging dairy farmers right across NZ to do the same,” Mackle says. “It only takes a few minutes to make a submission online and it doesn’t need to be long. What is important is that you share what this legislation might mean for your farm, your family and your community.” BLNZ chairman Andrew Morrison told Rural News his organisation encourages farmers to have their say on the Zero Carbon Bill. “We are in the process of finalising our analysis and advice on the Bill to assist farmers in making
Beef + Lamb chair Andrew Morrison.
their own submissions which we will be sending out shortly.” Mackle says appearing before a select committee at this time of the year will not be an easy task for most dairy farmers as July and August mark the start of calving season in NZ. The days are long, and many will simply be unable to get off the farm, let alone to Wellington. “That’s why I have written to Parliament’s environment select committee this week to urge them to commit to travelling throughout provincial NZ to hear submissions in the main agricultural centres. “This would be a great gesture of goodwill and go a long way to encourage farmer engagement with the submission process”. The bill proposes a 10% reduction in methane by 2030 and a
reduction in methane in a provisional range of 24-47% by 2050. DairyNZ has previously said that it was pushing for the Bill to be more aligned with suggestions made by the Parliamentary Commissioner for the Environment -a 10-22% reduction by 2050. Federated Farmers climate change spokesman Andrew Hoggard said the Zero Carbon Bill sets a gross biogenic methane reduction of 10% by 2030. “The science is clear that this level of methane emission reduction is only needed by 2050 to have no additional impact on global warming,” he said when the bill was introduced into Parliament. “But farmers are being expected to shoulder their share of tackling climate change 20 years earlier than anyone else.”
posing to increase the penalties for breaching biosecurity rules at the border to protect against incursions of pests and diseases, says biosecurity spokesman Nathan Guy. “We want to toughen up on people bringing in items which could put our biosecurity at risk. This would mean
increasing fines from the current $400 to $1000 for people found to have risk materials, and giving Ministry for Primary Industry officials the power to immediately deport people found to be knowingly concealing risk items.” • More: www.national.org.nz/ discussion_documents
RURAL NEWS // JUNE 18, 2019
6 NEWS
Are we too dependent on China? PAM TIPA pamelat@ruralnews.co.nz
IS NEW Zealand becoming too reliant on China as a customer for primary product exports? Everyone is asking this question, says ANZ rural economist Susan Kilsby. “The way I see it, yes we are selling a lot into one market. But it is a massive market with a lot of different moving parts in it,” she says. “So it is a little bit like selling into Europe – there are many different religions or cultures…. There’s a lot of differentiation within China.” Kilsby was commenting to Rural News on the latest ANZ Agri Focus Report entitled ‘Fine China or Fragile China?’. She says NZ needs to be exposed more to Asia than to the developed markets because the economies in Asia are growing much more rapidly. “So being exposed to Asia is a really good thing. It would probably be great if we were exposed to a few more countries to a greater degree than we are. But if we weren’t as exposed to China as we currently are the return back to farmers wouldn’t be as good.”
Kilsby adds that despite the warnings sounding about the global economy for a while, it is perhaps not impacting us so much here in NZ because we still have strong demand for our products. She also says that after the Global Financial Crisis we did not have the impact on our economy that many other economies had. “We grew our exposure at that point to China which was growing rapidly while the global economy was not as strong. “We are reasonably well positioned at the moment, being exposed to Asia. It doesn’t come without its risks and some of that is regulatory and [some of it] access into China. It can flip on a dime for certain products. But it has certainly paid off for us so far.” Kilsby says farmgate returns are quite strong across all sectors currently with the only headwinds being less certainty in the global economic situation. “There is never a whole lot of certainty but less at the moment with the majority of the major economies across the world slowing a little…. Lower GDPs and as a result central banks cutting interest rates to stimu-
ANZ’s Susan Kilsby.
late economies. “But certainly from markets we are selling into at the moment we are still seeing good returns across the board.” For the meat industry, many of those returns have been driven by
diverting more product -- lamb and beef -- into China. In China, chain restaurants specialising in beef are growing in the big cities. The Agrifocus report says the projected milk price of $6.25-$7.25/kgMS
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for the 2019-2020 season is more conservative than expected, but there are signs this will increase in future. “Milk prices for the coming season are on track to be stronger than the current season,” Kilsby says. “Demand could be impacted by slowing global growth but global milk supply is expected to be contained which should support strong prices in the year ahead.” NZ beef exports have held up well through the peak processing season, and beef exporters are benefitting from two strong markets: China and the United States. Investment in horticulture continues as returns from apples and kiwifruit outperform the rest of the sector. A strong start to the kiwifruit season has resulted in record export returns and for the first time gold fruit is expected to outperform green. “We’re seeing an increase in gold kiwifruit as more orchardists convert from green to gold,” Kilsby says. “Gold fruit matures earlier than green and it yields well which helps drive higher returns. While all gold has been picked the green harvest continues.”
RURAL NEWS // JUNE 18, 2019
NEWS 7
Primary sector props up NZ economy Snapshots
Against the odds, exports of NZ’s primary produce have increased by $7.5 billion over the last two years and now stand at $45.7b for the year ended June 2019. So says the Ministry for Primary Industry in its latest Situation and Outlook Report (SOPI) released last week at Fieldays. Peter Burke reports. THE REPORT shows all the primary sectors are performing well. Dairy revenue is up by 5.7% to $17.6 billion, meat and wool earned over $10b for the first time (up 6.4%) and forestry earned $6.8b. But, predictably, it’s horticulture that is growing faster in export dollars than all other sectors. It will hit $6.1b – an increase of 13.7% on the previous year. Kiwifruit and wine
are the two biggest earners, collectively accounting for over half of total hort exports. But apples and pears, fresh and processed vegetables and other products are also making big movers on the export front. MPI predicts that by 2023 export earnings from horticulture will be close to $7b. MPI says the export performance by the NZ primary sector is all the more impressive con-
sidering the weakening global environment and uncertainty creating tension in international markets. Helping our performance is that the products we trade in are not, so far, directly affected and because the NZ$ continues to drop in value. Also, NZ is moving to diversify export opportunities by pursuing free trade agreements with present and future trading partners, especially
THE MPI report looks at each part of the agricultural sector in some detail. It notes that milk production was forecast to rise by 2.3% due mainly to favourable weather, but it predicts that next season production will remain static. The report notes a slight drop (0.7%) in cow numbers and suggests this trend will continue and that increasing regulatory constraints will likely limit intensification of farming. On meat and wool, the report says red meat prices have been strong for the last two years. But while beef prices for the coming two years will hold at about their present level, lamb prices will suffer a hiccup next season and not recover over the next four years.
members of the CPTTP. But the report warns that tough times are ahead for NZ. MPI expects this year’s boom to be followed by a ‘soft’ period in the following year, but picking up a bit in 2021. Slowing global economic growth, rising protectionism and what
Brexit may cause are all uncertainties facing NZ exporters. On Brexit, the report says “primary sector exporters should ensure they have contingency plans in place in case the UK leaves the EU after October without a deal”. China also looms large
in the report. Nearly one third of all NZ exports are now to China. Australia takes 10%, the US 9%, the EU/UK 7% and Japan 6%. But looking at NZ’s big industries, 30% of dairy exports, 31% of meat and wool, 32% of seafood and a whop-
ping 50% of forest exports find a home in China. Horticulture breaks that cycle in the EU and UK, followed by Australia and the US as the top three markets, but China and Japan are rapidly catching up.
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RURAL NEWS // JUNE 18, 2019
NEWS 9
Dairy conversion era over – expert THE DAYS of rapid, largescale dairy conversions in New Zealand are at an end, says Waikato Milking Systems chief executive NZ Campbell Parker He says that while many in the industry thought the reduction in new dairy conversions was just “a dip in the market”, the conversion market hasn’t come back and it’s unlikely to. “The large scale dairy conversions experienced in NZ over the past couple of decades were driven by different market forces than what exist today.” Parker says this change is prompting a change in direction for Waikato Milking Systems. “The focus for us now is on upgrading existing milking systems, whether equipment and technology or replacing entire milking systems within an existing shed. “We’ve got five or six projects this winter which are just that, replacing existing rotary platforms, but we’ve got a tight window to complete the work before the next season.” Parker joined the company as NZ general manager in July 2017 and was appointed chief executive NZ in April 2018. The company, which turned 50 in 2017, makes milking systems in New Zealand and exports to 30 other countries. It also
makes milking automation technology and dairy herd management systems at its headquarters in Horotiu, north of Hamilton. Parker says the company needs to evolve to help farmers meet new challenges being driven by consumers of dairy products. Fieldays gave opportunity to explain those changes and show how the company could help. Parker says it must now move from being “just a milking machine company” towards being a leader in R&D to provide farmers with the technology needed to meet consumer expectations. “The challenge for farmers is to take a broader view outside their farm gate and realise that consumers are driving the need for more of a focus on sustainability and food traceability. “NZ has to realise this as an opportunity and understand how to get the best price for our produce, for some of the unique advantages we have in our grass-based system.” He also sees milking automation becoming more important as “the next generation of farmers” shows interest in adopting technology to help manage much larger herds than 20 years ago. “The fundamentals of
INTERNATIONAL GROWTH CAMPBELL PARKER says five years ago about 80% of the company’s revenue was domestic and 20% international. “Today the balance has tipped to where international markets make up over 50% of the company’s revenue.” He said the change came down to less capital investment in the domestic market, reflecting fewer dairy conversions. It’s a shift the company had to realise, Parker said, and recently it had begun to recruit staff with different skills in sales, marketing, technology and R&D. Partnering with companies that complement its own products was also a possibility, rather than trying to manufacture a competing product. “In NZ you had an average of 147 dairy conversions a year for 20 years. What you needed then was a salesperson who could put a quote together and deliver on a new product. Today, you need a salesperson who can be more proactive rather than reactive. They need to find out how they can help the customer be more productive with what they’ve already got.”
grass management and good animal husbandry are not changing, but how you use information to make those decisions is becoming more accurate.” Parker says having products which capture
data is now important. “Public awareness of managing dairy effluent is high and so equipping farmers with the right technology and systems is firmly on the company’s radar.”
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RURAL NEWS // JUNE 18, 2019
10 NEWS
DIRA changes fall short – farmers SUDESH KISSUN sudeshk@ruralnews.co.nz
FARMERS WANT dairy industry regulations to apply equally to all milk processors in New Zealand. They still want an end to the open entry/exit provisions of the Dairy Industry Restructuring Act (DIRA) and an end to Fonterra providing subsidised raw milk to rival processors. However, in proposed DIRA changes the Government has retained the open entry provisions but has allowed Fonterra the
right to refuse milk from suppliers who are “not compliant with the co-op rules and from new dairy conversions”. The requirement for Fonterra to supply regulated milk to independent processors with their own supply of 30 million litres or more in a single season has also been removed. But Federated Farmers Waikato president Andrew McGiven believes the changes don’t go far enough. “We end up in the situation where some farmers will be cherry picked and Fonterra is still
required to accept everything else,” McGiven told Rural News. “Although the proposed milk standard clause could help alleviate this.” McGiven said, as an example of this, that if he wanted to supply Tatua he would be “unable to as [there is no requirement on them] to accept me or my supply, which may mean the building of new plant to process that extra milk”. He says it is “illogical” for Fonterra to have to supply new start-ups if they are simply going to export the milk.
Supplier Roadshow 2019 Silver Fern Farms Co-operative shareholders and farmer suppliers are invited to attend our upcoming Plate to Pasture Supplier Roadshow. Meet Chief Executive Simon Limmer and members of our team to hear an update on company strategy, performance and the season to date. Rob Hewett, Chair of Silver Fern Farms Ltd and Richard Young, Chair of Silver Fern Farms Co-op will also be available to discuss progress on key business initiatives. We’ll be in your region at the following locations: Mon. 24 June Greta Valley
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“DIRA was set up to protect the domestic milk market -- consumers as well as farmers -- and if these new processors are simply exporting their product then they are completely by-passing the domestic market, as well as possibly undercutting the other processors who have established markets and customers,” he told Rural News. “If DIRA was better applied in this way then we may be able to de-link the international price for dairy products that applies to the domestic market as there would be much more competition at home.” Federated Farmers dairy chairman Chris Lewis sees some useful changes approved by the Government. However, he believes it has missed an opportunity. “We’re disappointed that open entry provisions won’t be changed, other than relating to new conversions,” says Lewis.
Feds dairy chair Chris Lewis.
“It’s nearly 20 years since this legislation was passed to ensure that, with the formation of Fonterra, competition for farmer milk supply and dairy product choice for consumers were preserved. The market is now mature enough, and competition among a host of processing companies is robust enough,
for Fonterra to be given some discretion over who it is required to pick up milk from.” Lewis says giving Fonterra some leeway to refuse milk pick-ups is good. However, he wants more details on how the Government will describe a new dairy conversion. “We’re also pleased that the amended DIRA
will give more clarity on when Fonterra can refuse supply when a farmer is well below industry standards relating to the environment, animal welfare, greenhouse gas emissions and the like,” he added. “There are some farmers who have demonstrated their unwillingness to come up to the standard of all the other shareholder/suppliers out there.” Lewis says that as with other aspects of the government’s DIRA announcements the devil will be in the detail. The changes proposed to DIRA will now be progressed through Parliament. The industry will have another chance to have its say on the changes during the select committee process. Lewis says Federated Farmers looks forward to taking part in the consultation process with the select committee to help ensure the details of the bill are fit for purpose. @rural_news facebook.com/ruralnews
DIRA’S SELECT FEW FROM PAGE 1
“Our ‘lateral thinkers’ role was simply to throw ideas around with the minister and to critique those ideas. Whether or not we might have influenced the proposals as approved by the Cabinet I am not going to say.” O’Connor told Rural News that he soon hoped to draft up legislation with the proposed DIRA changes, which will then go before a select committee for submissions. He says people will have a chance to comment on the proposed
changes during the submission process and this will be an opportunity for changes to be made before it becomes law, which is likely early next year. Meanwhile, Federated Farmers dairy chairman Chris Lewis told Rural News he was surprised to hear about the special DIRA advisory committee. “Where was Federated Farmers? Why aren’t we on the committee?” he asked. Lewis says it will be interesting to see how farmers react to news about the existence of the com-
mittee. “How would they see the composition of the committee? I’m sure they will make up their own mind,” he says. Lewis also pointed out that other stakeholders including Fonterra, Open Country Dairy, other processors and Federated Farmers, all had offered their submissions to MPI. “We all put our cards on the table. They were public submissions and everyone knew what we were thinking about the proposed changes.”
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RURAL NEWS // JUNE 18, 2019
12 NEWS
Irrigation scheme seeks public support NIGEL MALTHUS
AMURI IRRIGATION Company (AIC) is formally seeking farmer investment in a $79 million, 7000 - 9000ha piped irrigation scheme
for the Hawarden basin area, south of the Hurunui River in North Canterbury. AIC has issued a product disclosure statement (PDS) for shares to fund the proposed Hurunui
Irrigation Scheme. The share offer is now open and will close on July 26. The company aims to raise $42 - 49 million of equity and to fund the rest by $30m of debt. The scheme would
take water from a proposed intake on the south bank of the river and distribute it to shareholding farmers through 100km of pipeline. This is the area where the now defunct Hur-
Looking north across the Hawarden Basin from Brandon Downs toward Mt Tekoa, the area potentially to be irrigated by an expansion of the Amuri scheme. SUPPLIED
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unui Water Project would have operated. Having failed last year to garner the required farmer support for its scheme, HWP accepted a takeover offer from Amuri. Chief executive Andrew Barton says AIC had offered to buy HWP’s water consents but a full takeover proved the easiest and neatest way to acquire them. As of May 31 the two companies have formally amalgamated under the AIC name. AIC, which already irrigates 28,000ha north of the Hurunui, says the proposed scheme is a smaller alternative to the HWP proposal. The company says it has talked with local farmers and believes a smaller scheme is viable. AIC says the area has been drought hit over recent years and an irrigation scheme would bring opportunity and certainty to its farmers. “The offer of shares... is the culmination of a lot of hard work by the community over many years,” AIC chair David Croft says. “In the last year, AIC
has taken on the mantle to shape a viable proposal for irrigation and is now pleased to present this opportunity to local farmers.” He says a smaller scheme also reduces the risk of effects on water quality. “Farmers will typically irrigate less than half of their farms, making irrigation viable for existing sheep and beef farmers. The resource consents for operating the scheme have strict conditions to mitigate the environmental effects of the proposal.” AIC says it takes its environmental responsibilities seriously and any new irrigators will be subject to the same stringent requirements as existing shareholders. “AIC ensures that all its farmers hold farm environment plans (FEPs) and new irrigators will need to use efficient irrigation systems and have FEPs in place prior to getting any water. FEPs specify the on farm actions to meet good management practice.”
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WHILE HAWKES Bay’s controversial Ruataniwha Dam scheme was killed off last year, Government funding has come through to investigate the possibility of new, smaller irrigation schemes in the region. IrrigationNZ says the $30.6 million included in Provincial Growth Funding (PGF) for water projects in Hawke’s Bay will be critical to support the region’s continued prosperity and wellbeing. IrrigationNZ chief executive Elizabeth Soal says the funding will support research into managed aquifer recharge in Central Hawke’s Bay. “Managed aquifer recharge is widely used overseas and has been very successful in replenishing aquifer levels. Alongside this is funding for an aerial electromagnetic survey of Hawke’s Bay aquifers to improve our understanding of groundwater depth and capacity.” $12.9m has also been allocated through the PGF to investigate options for small scale water storage to supplement water flows in and across the Heretaunga Plains. “Hawkes’s Bay is one of our most productive regions -- our largest apple producing region and second biggest wine and vegetable growing region,” Soal adds.
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RURAL NEWS // JUNE 18, 2019
14 NEWS
$2b pay off in fine wool shift – NZM PAM TIPA pamelat@ruralnews.co.nz
SHIFTING HALF of New Zealand’s crossbred wool clip to higher value fine wool contracts could boost the economy by about $2 billion, says NZ Merino Company (NZM) chief executive John Brakenridge. “Wool could give kiwifruit and wine a run for their money in terms of exports,” he says. VF Corporation, one of the world’s largest apparel, footwear and accessories companies, is incentivising NZ’s sheep industry to grow more fine wool. ”Global demand for natural fibre and NZM owned ethical wool brand ZQ Merino is swinging the pendulum in wool’s favour,” says Brakenridge “We are connecting more and more wool growers with long term supply contracts and we are seeing supply being soaked up seasons in advance. “Today a crossbred wool fleece fetches approximately $3 clean/kg whereas a Smartwool 22 micron contract going forward for the next three-five years now has a base price of over $20 clean/kg. “If we can shift half of NZ’s crossbred wool clip into higher value fine wool contracts, the economic upside would be around $2 billion.” VF Corporation, which owns brands The North Face, Timber-
A PGW livestock agent watches a bidr auction in progress. SUPPLIED/PGW
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land, Smartwool and NZ founded Icebreaker, has developed the new incentives for farmers as part of its commitment to sustainable solutions. “Today we expect more of our products – in design, performance and environmental and social impact – and we believe VF has the responsibility and opportunity to lead by example,” says VF’s vice president of global procurement and material supply, Tom Conneen. VF Corporation’s partnership with NZM has also been an obvious choice with wool being a long term investment opportunity. “Ongoing investment in genet-
ics, leading animal husbandry practices and adoption of new supply models will be required, and VF is committed to working alongside NZM, the shearing community, breeders and growers,” says Conneen. “We’re confident enough in the future of wool to incentivise production through long term contracts and provide support where we can. “VF is working hard to be the global leader in Merino wool supply and the preferred partner of growers.” Fine wool sheep farming is today more profitable than dairy grazing and other sheep farm-
ing systems, as shown in analysis by both NZM and AbacusBio, says Brakenridge. This is seen in the long-term wool contracts offered to NZM growers, such as the industry first 10 year contract with Icebreaker, coupled with contracts for SILERE (NZM’s Merino meat brand jointly owned and operated by Alliance Group Ltd). “The increased demand for, and the value of, contracts has exceeded our expectations. We’re on the crest of a wave and are doubling our investment in adoption of the right genetics and practices to ensure this demand can be supplied from NZ wool.”
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FEEDBACK IS positive from clients who have tried PGG Wrightson’s new bidr online auction system, says Waikato PGW livestock agent Dean Evans. Evans, who has already used bidr for a few lines of livestock, says it’s user friendly, not overly complicated and will make a big difference for users. “Because of what’s happening with M. bovis there are clients out there who basically don’t want to send their cattle to a saleyards and want to try an alternative,” he told Rural News. “To have their cattle stay on their property, be in control of the animals, not having to pay cartage and that sort of thing, it will certainly make a difference to people.” Described as an “innovative rural trading channel,” bidr.co.nz was unveiled at Fieldays following a “soft” launch that had seen it already used for several online auctions over the past several weeks. It was developed by PGW in consultation with customers and key partners and is initially focused on livestock. However, in future, it is hoped to enable farmers and agents to bid, buy and sell all things rural online. PGW says it has already achieved strong results in feature livestock sales (including stud bull sales, store lamb, store bull and dispersal sales). The company says it will continue to extend its livestock product and service offering with weekly auctions from July 2. PGW general manager livestock and bidr chair Peter Moore says the online system was developed over several years to get it right. “The input from our agents, customers and strategic partners during the development process provided us with valuable insight,” he says. “This collaborative approach allowed us to deliver this new channel successfully and we are pleased at how well the market is embracing this new technology.” Moore says the global livestock market’s constant change has a significant flow on effect to the New Zealand market and PGW’s business. “bidr is an example of PGW’s focus on technical excellence and innovation, along with future-proofing our business to add value to our customers’ farming operations.”
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RURAL NEWS // JUNE 18, 2019
16 NEWS
Advocate off to Brazil at Youth summit NORTH AUCKLAND cattle breeder Courtney Davies (23) will represent New Zealand at the Bayer Youth Ag Summit in Brasília, Brazil, November 4-6. The environmental educator teaches students about sustainability and the environment through virtual reality. She is also an award winning Ayrshire cattle breeder on the family lifestyle block in Dairy Flat, Auckland. Davies will be one of 100 young participants from 45 countries attending the summit, which is part of Bayer’s
Agricultural Education Programme. The Summit, run in partnership with Nuffield Brazil, brings together young change makers aged 18-25 to tackle the challenges of how to feed a growing population by 2050. She says attending the summit is an incredible opportunity to represent the vision of NZ youth on an international stage. “I’m especially looking forward to collaborating with some of the world’s brightest young innovators. Given the calibre of previous Youth Ag Summits, I know there will be incredible ideas
explored for solving food security problems.” Davies’s main passions in life are agriculture and science, which she combined while studying for a master of natural science in microbiology degree at Massey University. Her masters project focused on using bacteria to produce biodegradable plastics, but more specifically as a drug delivery system for antimicrobials as alternatives to antibiotics. In 2016 Davies won a Blake Ambassador Freshwater internship at NIWA, working on
understanding the link between urbanisation and dairy science. She has won many academic and agricultural awards, and holds ambassador or representative roles with several organisations. She currently works for the Sir Peter Blake Trust as an environmental educator giving presentations on sustainability through virtual reality technology. “I hope to be able to create opportunities using technology to enable every young person in NZ to look into agriculture, especially
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ACVM No’s A3977, A11311, A0934, A1011. Schering-Plough Animal Health Ltd. Phone: 0800 800 543. www.msd-animalhealth.co.nz Ref 1: Baron Audit Data. March 2019. NZ/NLX/0518/0003e(1) © 2019 Intervet International B.V. All Rights Reserved.
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RURAL NEWS // JUNE 18, 2019
NEWS 19 RESILIENT FARMER MOVES ON TO NEW FIELDS
Dr Alastair Ross using the REIMS machine. SUPPLIED/AGRESEARCH
Fingerprinting our food NIGEL MALTHUS
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A MACHINE used by surgeons in delicate operations could eventually provide ways of guaranteeing New Zealand farm exports’ provenance. And it could improve product traceability and deter supply chain fraud. The machine is a rapid evaporative ionisation mass spectrometer (REIMS) now being evaluated at AgResearch’s Lincoln campus for its ability to detect the molecular phenotype or ‘fingerprint’ of samples of meat, milk, plants and wine. While mass spectroscopy has been around for years, the REIMS device does in seconds what used to take an hour of lab work. It is designed to assist surgeons in differentiating between healthy and tumorous tissue in near real time. It vaporises samples using an electronic surgical knife and analyses the resulting vapour. AgResearch senior scientist Dr Alistair Ross says the machine,
installed in August, is believed the first of its kind in Australasia. He won approval to bring it to NZ after a demonstration in the UK showed it could differentiate between NZ, English and Welsh lamb. It can also detect what feed – such as grain, grass or chicory – a carcase was reared on, an increasingly important trait driving consumer spending. Ross says the REIMS instrument can produce detailed data potentially useful for authentication, including incorporation into blockchains for chemical and digital traceability to prevent food fraud. “Making sure we have the robust data on provenance and quality has the potential to save NZ millions of dollars through early detection of quality problems and prevention of false labelling,” he explains. “We’re also finding that we can link the fingerprint to other factors such as consumer liking so in the future it can be possible to ensure NZ agricultural products have guar-
anteed provenance and quality, and will go to the market which best matches their desired flavour profile.” This concept points to a future where you could, for example, scan a glass of milk with your mobile device to find out where, when and how it was produced and whether that milk fits your taste profile. “This will be a major opportunity for the NZ food sector where worldwide supply chains are increasingly scrutinised and consumers are increasingly engaged in what they eat.” The 300kg device is expensive and must be housed at the laboratory. But advances in technology could mean simpler instruments using similar concepts become affordable and portable enough for use in meat works, dairy processing plants or on farm. Ross expected to present his research at the AgResearch stand at the last week’s national Fieldays.
MARLBOROUGH FARMER Doug Avery is changing direction in his life, hitting the third age with a new venture. Over two decades, Avery took his family farm – Bonavaree, near Lake Grassmere in southern Marlborough – from a 206ha struggle to a 2600ha multi-million venture thanks to “God’s own plant” lucerne. He tells that story, and his battle with mental health, in a book, The Resilient Farmer, which has taken him Doug Avery around New Zealand and the world as rural communities look for ways to help people struggling with their own issues. Now Avery has moved into central Blenheim, looking to work with people on more than mental health issues in a programme called Woolshed Sessions. This has participants working with him and two other facilitators to develop their own business and personal skills. In this Avery applies what he has learnt as a “resilient farmer”, and his co-facilitators’ professional experience. “I’m moving on from the ‘sad bastard’ to a ‘glad bastard’,” Avery says. “I am what I am, but this course is more than my material. It is a business development course, a mind incubator for the rural sector. It’s an area screaming out for growth in future farming.” The two-day Woolshed Sessions are practical hands on workshops where ‘resilient farmer’ principles are applied to the people who attend and their businesses. The courses are limited to 16 people -- farming couples are encouraged to attend together -- and it’s aimed at people aged 25-55 with business expe-
rience and ambition to grow. The Blenheim courses are interactive with field trips, speakers and workshop sessions. Participants leave with a specific plan to take resilient thinking back to their world. Farmax is providing every attendee with six months subscription and training. Avery wants to share what he’s learnt with others, to change their thinking and their actions. “I look at my own life now. A lot of people think it was lucerne that changed my life. It may have been the opportunity, but it was really the gathering of soft skills that changed my life.” The participants get entry to a private online platform after the Woolshed Sessions, so they can go on developing with the others from their course. Avery and wife Wendy host the sessions with co-facilitators Russell McMurray and Cam Macduff. McMurray co-founded a Wellington organisational psychology practice and has 30 years experience helping companies to develop leadership practices and organisational culture. Cam Macduff co-founded Wonderlab, a Wellington brand and marketing agency which helps businesses and organisations affect positive change for their brands, products and services and clients. The first Woolshed Sessions course was run as a trial last year. “The dynamic of having people away from home, where they don’t know anyone else, makes the processes of discovery much more powerful.” Taranaki farmers Kieran and Claire Bourke did the first course after being offered it through their bank, BNZ. https://tinyurl.com/woolshedtickets
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ACVM No: A3977. Schering-Plough Animal Health Ltd. Phone: 0800 800 543. www.msd-animalhealth.co.nz NZ/NLX/0518/0003b(1) © 2019 Intervet International B.V. All Rights Reserved.
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RURAL NEWS // JUNE 18, 2019
AGRIBUSINESS 21
Tags help keep track of NZ velvet PAM TIPA pamelat@ruralnews.co.nz
A NEW system is being developed for tracing tagged velvet as it moves through the supply chain. If the concept is supported, each individual stick of velvet will be identifiable through a central database to the farm of origin from the 202021 season. DINZ (Deer Industry NZ) science and policy manager Catharine Sayer explains there are supply chain confidences that the new system would maintain in its default operating mode. Customers definitely would not be able directly to trace farm origin on any stick of velvet at any time. “However the system could be used to disclose farm of origin information to customers if it was of commercial value and all participants in the relevant chain were agreeable,” Sayers told Rural News. The new type of tag could support the premium market positioning of NZ velvet by allowing branding to be added and reducing the risk of counterfeiting. Sayers says with health foods, customers are increasingly focussed on the safety of the products they consume. “By linking animal welfare compliance and food safety compliance into one joint system the supplier of velvet bearing the new traceable tags can prove the integrity of the velvet to the companies marketing such products. “New Zealand will be demonstrating leadership amongst velvet-producing nations in this regard and therefore maintain a pillar of its current price premium.” Sayers says the type of tag is needed to replace the existing nylon cable ties that tend to become brittle and break during freezing. There is also the opportunity to add value by: • Enabling fast, accurate and effortless product tracing for food safety or biosecurity reasons • Indicating that the farm of origin complies with velveting welfare and food safety rules • Helping farmers, vets and other businesses in the velvet supply chain with their inventory management, which will become virtually paperless.
Sayers says feedback (initial submissions which were due by May 6) has come from participants of prototype trials (farmers, exporters and processors), one-on-one conversations with farmers, veterinarians, velvet buyers, velvet exporters, MPI, velvet processors and formal meetings with the National Velveting Standards Body and a forum of velvet buyers, processors and exporters. Sayers says farmer feedback was mainly about the practicalities of a new style tag (how easy it would be to apply and whether it would stay put). “Parties involved in trading velvet were extremely supportive of the concept based on their customers’ expectations but keen to ensure the system worked well from a practical perspective, e.g. that chip readability would be reliable, that data capture and upload would be straightforward and that farmer compliance with their obligations would not hold up product movement. “Since the start of industry-wide consultation many of the queries have been into the ongoing cost of the new system. “While the new system is likely to be more expensive than the current system, it is forecast to provide net benefits to the velvet industry overall. DINZ is yet to determine how the increased costs would be allocated and would welcome industry’s views.” Sayer says several prototype tags have been piloted by members of the Southland NZDFA as well as the three largest velvet exporters. The best format appears to be an artificial paper ‘wrist band’. In the next (2019-20) season a barcoded version will be brought in to replace the cable tie, but existing tag distribution, recording, paperwork and VSD requirements will not change. “If this works well, we will look to roll out a fully electronic system with electronic chips in similar-style tags for the 2020-21 season. Only then would record keeping requirements and methods change.” Farmers would no longer be required to keep paper records of tags received, applied or transferred. Nor would they have to produce paper VSDs. The selection and design of the 2019-20 tag is now being finalised based on learnings from the trials with prototypes.
Prototype chipped and barcoded tags (that were applied on farm) being tested for chip readability after velvet processing. PHOTO CREDIT HOLLY WALTER OF WAIKIWI VETS, SOUTHLAND.
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RURAL NEWS // JUNE 18, 2019
global agribusiness research analysts sharing market outlooks
22 MARKETS & TRENDS
Rabobank supports clients from farm to fork in
40
COUNTRIES
100 000
12630
farmers to connect Content supplied by Rabobank – Grow with the bank farmers for farmers with by worldwide , founded
Sharp end to the season Dairy NEW ZEALAND milk collections continue to trail off as the season draws to a close. Milk flows for April 2019 were behind 8%, compared to the same time last year. This pulls seasonto-date milk collections
lower, to 2.3%. Rabobank expects final full-season production to land between 1.5% and 2% once the final tallies are counted. Oceania commodity prices remain firm during a quieter trading period. Milk production
seasonally is winding down quickly in both New Zealand and Australia. EU milk production for March 2019 moved into positive territory for the first time since September 2018, lifting 1.1% YOY. Fonterra has come out of the start blocks for the new 2019/20 season with a wide-ranging milk price forecast of NZ$ 6.25/ kgMS to NZ$ 7.25/kgMS. At the same time, the co-op chopped NZ 20 cents off of the previous top-end forecast range for the current 2018/19 season, to NZ$ 6.30/ kgMS to NZ$ 6.40/kgMS. Based on our forecasts for global supply and demand across the coming 12-month period, Rabobank still anticipates a milk price of NZ$ 7.15/kgMS for the new 2019/20 season.
Beef RABOBANK EXPECTS tightening domestic supplies to put upward pressure on farmgate prices over the coming months, as production begins to wind down from the seasonal peak. Prices held steady through May, supported
by solid export market returns and a weakening NZ dollar. With plentiful supplies of cattle available for slaughter, there was also no pressure on processors to move prices higher to secure supply, resulting in very little price movement over the month. As at the end of
May, the North Island bull price is 1% higher MOM, averaging NZ$ 5.20/kg cwt, while the South Island bull price is down 1% MOM, to NZ$ 4.90/kg cwt. Prime cattle prices were also steady, with a North Island prime price of NZ$ 5.50/kg cwt (+1% MOM)
and South Island prime price of NZ$ 5.05/kg cwt (+1% MOM). Cattle supplies will begin to dry up in June, as the national dairy cow cull wraps up and farmers place cattle on winter feed. New Zealand’s season-to-date cattle kill is similar to where it was heading into winter last year, sitting up 1.6% YOY as of 27 April. Given Rabobank expects the total kill for the 2018/19 season to be in line with last season’s kill, cattle supplies through to the end of the season are likely to tighten along normal seasonal patterns. This will ensure there is an element of procurement pressure over the coming months.
Sheepmeat RABOBANK EXPECTS farmgate prices to con-
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RURAL NEWS // JUNE 18, 2019
MARKETS & TRENDS 23
COUNTRIES
Content supplied by Rabobank – Grow with the bank founded by farmers for farmers
tinue to strengthen out to the end of the 2018/19 season (September). International demand for New Zealand lamb remains strong, which will underpin prices over the coming months, as domestic supplies tighten. The timing and magnitude of pending price lifts will be determined by the flow of lambs to the processors. There was a healthy jump in farmgate prices
during May, as lamb production came off its seasonal peak, increasing procurement competition amongst processors. As of the end of May, the slaughter price in the North Island averaged NZ$ 7.55/kg cwt (3% higher MOM), while South Island lamb averaged NZ$ 7.15/kg cwt (5% higher MOM). Farmgate prices are now largely in line with where they were heading into winter last
year, down just 1% YOY in both islands. New Zealand’s lamb kill for the 2018/19 season is down 3% YOY (as of 27 April). While the lamb kill had been tracking at similar levels to last season a month earlier, limited supplies through April have now seen it fall behind. Beef+Lamb New Zealand forecast the total slaughter numbers for the 2018/19 season to be down 3%. This would indicate that supply availability for the remainder of the 2018/19 season will be at least as tight as it was from Jun-Sep last season, which corresponded to a healthy lift in farmgate prices over that period last year.
Horticulture THE KIWIFRUIT sector has reported another strong export performance, with all-time high exports of New Zealandgrown kiwifruit into key export markets helping to set a record for revenue. The new export season
has also kicked off in a similar fashion for kiwifruit, as it has also for apple exports. Rabobank expects continued export growth for these sectors, but China’s economic performance remains of key interest for the fortunes of fresh produce exporters across 2019. Kiwifruit export values hit a record for 2018/19, with Zespri’s reported operating revenue exceeding NZ$ 3billion. Exports of New Zealand-grown kiwifruit lifted by 35% in value, to NZ$ 2.2bn for the year, with export data showing volume up by 21% YOY, to 152m (3.6kg equivalent) trays. Not to be pipped by its larger cousin, the apple sector has also experienced a strong start to the 2019 season for exports. Export volumes and values have lifted yearon-year across the first quarter of 2019. China continues to favour New Zealand apples, and the year-on-year increase in
volume and value across Q1 2019 has been strong, when both Hong Kong and Taiwan are included. The performance of China’s economy will continue to be of importance for exporters to monitor, if the consumer spending slowdown seen for manufactured goods flows into food consumption in 2019.
Exchange rate WE HAVE revised down our forecasts for the NZ dollar and now expect it to reach USc 63 within 12 months, as monetary policy in the US and New
Zealand diverges. In the US, we expect monetary policy to ease, but not until 2020. On 1 May, the Fed kept the target range for the federal funds rate unchanged at 2.25% to 2.50%, stating that it didn’t see a strong case for a rate move either way. We feel differently. With the yield curve still partially inverted, Rabobank continues to expect the economy to fall into recession in 2H 2020. Consequently, we think that the Fed will be forced to start cutting rates – but not until 2020.
The Reserve Bank of New Zealand (RBNZ) reduced its OCR by 25bps, to 1.5%, on 8 May, and we think there are more cuts to come. Although the RBNZ’s next move clearly remains data-dependent, these comments bolstered the market’s expectations of another cut this year, and may put some further pressure on Kiwi rates and the New Zealand dollar. At USc 65.5 on 27 May, the NZ$ was down almost another cent since late April. Rabobank forecasts the NZ$ to hit USc 63 by May 2020.
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RURAL NEWS // JUNE 18, 2019
24 OPINION EDITORIAL
EDNA
Fantasy meets reality WITH ANOTHER National Fieldays done and dusted for the year it is an opportune time to reflect on the current state of New Zealand’s primary sector. Undoubtedly, the Fieldays spin doctors will soon be breathlessly trotting out all sorts of fanciful facts and figures claiming this year’s event was the biggest, brightest and most money spinning ever. However, back in the real world, we need to take a more realistic and truthful look at the state of the farming sector. At first glance, things do look pretty rosy. According to the latest SOPI report from MPI, exports of NZ’s primary produce have increased by $7.5 billion over the last two years and now stand at $45.7b for the year ended June 2019. The report shows all primary sectors performing well except for the perennial straggler strong wool. Dairy revenue is up 5.7% to $17.6b, meat and wool earned over $10b for the first time (up 6.4%) and forestry earned $6.8b. However, horticulture is the real star, growing faster in export dollars than all other sectors. It will hit $6.1b – an increase of 13.7% on the previous year. Recent reports from the various banks – ANZ, Rabobank and BNZ to name a few – also predict positive outlooks for commodity prices. And KPMG’s annual Agenda report also predicts that NZ’s agri food sector is well positioned to take advantage of international opportunities arising. However, despite the plethora of ‘good news’ reports, all forecasters convey a strong thread of nervousness, unease and concern from the sector. This is mirrored by feedback on the ground from Fieldays and around the country. For all the Government’s talk about wanting to support and encourage the sector, it is failing to match all this talk with any actual walk. The Zero Carbon Bill and its nonsensical methane reductions, uncertainty about what the proposed emissions trading scheme will mean for agriculture, the looming National Water Policy Statement, pro afforestation policies at the expense of farming and regular biosecurity incursions are all things that will not and do not inspire or build confidence in rural NZ. More policy certainty and a willingness by Government not to place too many impediments in the way will help temper primary sector unease and allow it and the country as a whole to profit.
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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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THE HOUND Failure
Death by trees
Clear conflict
All sizzle
REPORTS TO your old mate tell of farmers who have tried, without success, to re-register with NAIT when prompted to do so by emails from OSPRI. “I tried several times and wasted a lot of time trying,” one exasperated cocky told yours truly. “The NAIT website finally told me my geographic location was offshore. That’s when I finally spat the dummy -- on the third or fourth attempt -- and emailed NAIT saying nothing had changed with my farm or location and they should re-register it because I could not.” This old mutt wonders if NAIT’s crap website is managed by the same public servants who botched up the teachers’ pay a few years back with the infamous Novapay system. Or is it built by the same crowd who made a complete balls-up of the failed police INCIS computer system in the late 1990s?
YOUR CANINE crusader finds it ironic that the pompously selfproclaimed ‘champion’ of the provinces and ‘first citizen’ of regional NZ, Shane Jones, is single handedly destroying the regions. Jones’ obsession with trees is seeing vast swathes of good farmland around NZ being planted in forests and resulting in the loss of people, infrastructure, jobs and services in rural communities up and down the country. While in opposition Jones and his political master Winston Peters railled against foreign ownership – especially of farmland and meat companies. However, as soon as Jones and Co put Jacinda into power they outlawed foreigners buying houses and farms but made it easier for overseas interests to buy land for forestry.
A FEW weeks back, this old mutt pointed out the folly and useless virtue signaling of the Canterbury Regional Council (Ecan) in declaring a ‘climate emergency’. This was demanded of the council by far-left activist group Extinction Rebellion. The Hound has been informed that Ecan chair Steve Lowndes is actually a paid-up member of Extinction Rebellion. While Lowndes excused himself from the vote, it does highlight the obvious conflict of interest. Perhaps the auditorgeneral should be called in to rule on this conflict. You often hear Greenpeace and/or Fish & Game demanding the auditor-general investigate farmer-councillors when local councils back irrigation schemes, even when these farmercouncillors do not have a direct benefit or pecuniary interest in the schemes.
REMEMBER WHEN Agriculture Minister Damien O’Connor, about a year ago, launched his new baby the Primary Sector Council (PSC) to a whole lot of fanfare and cost to the taxpayer? At the time, O’Connor claimed the new body would “... provide independent strategic advice to the Government on issues confronting the primary industries – with an immediate focus on developing a sector-wide vision”. Your old mate would like to know just exactly where is this ‘sector wide vision’ and what bang for our bucks have we as taxpayers got for this glorified working group? Fifteen months since it was set up and – according to official figures – with much more than $500,000 of taxpayer money spent on it, the PSC has come up with… zip, zero, nada, nothing, not a sausage.
PRODUCTION: Dave Ferguson ........................Ph 09 913 9633 davef@ruralnews.co.nz Becky Williams ........................Ph 09 913 9634 beckyw@ruralnews.co.nz REPORTERS: Sudesh Kissun ....................... Ph 09 913 9627 Pamela Tipa ............................ Ph 021 842 220 Peter Burke .............................Ph 06 362 6319 Nigel Malthus ...................... Ph 021 164 4258 MACHINERY EDITOR: Mark Daniel ............................. Ph 021 906 723 or 07 824 1190 SUB-EDITOR: Neil Keating ............................Ph 09 913 9628
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RURAL NEWS // JUNE 18, 2019
OPINION 25
Bridging the gap in rural health care JANE MILLS
LITTLE IS known about the health of the many New Zealanders who live and work in regions beyond our urban centres. Partly this is because our definition of what constitutes ‘rural’ does not accurately reflect people’s lived experience. But we know that our rural health workforce is ageing and that the demand for renewal is far greater than the supply of new rural health clinicians. Important to Massey University is the creation of opportunities for students including school leavers and people who might want a second chance career as a health professional. Massey specialises in the flexible delivery of courses so that people living in regional NZ can participate without having to move away from family and friends or paid employment. For example, we offer a new graduate programme for registered nurses in Taranaki and a new master of health science (medical laboratory research) degree course where students’ work environment is regarded as their classroom regardless of where they live. And our School of Nursing graduates nurse practitioners who will make a real impact on the deficits in rural health services. Through our role on the council of Rural Health Alliance Aotearoa NZ we are also developing solutions and influence policy affecting the health and wellbeing of
rural communities. Best practice healthcare is delivered by interprofessional teams, with each team member working to the full scope of their role. A key incentive for graduates to return to a rural area and work in these teams is the quality of their clinical experience as a student. I am very supportive of the Minister of Health’s plan to set up rural health hubs in selected locations. I am reimagining the student experience to include rich opportunities for learning and teaching at undergraduate and postgraduate level. Creating a physical and cultural environment where the link between rural health research and learning and teaching can be brought to life would benefit the students placed in these hubs and the clinicians working there. A supportive, vibrant clinical learning environment is a magnet for new clinicians thinking about moving to the country. Not only will rural health hubs assist with recruiting staff to often under-staffed rural health care facilities, they can also improve the retention of staff and, most importantly, patient safety. Everyone wins when clinicians feel well supported, have ample professional development opportunities and a positive feedback loop on their performance. The future for rural health in NZ is positive, with a lot of energy and momentum being generated in partnerships between the Government,
district health boards, universities and primary health care organisations. Only together can we make a difference to the health and wellbeing of our shared constituents -the people who live and
work in rural Aotearoa. • Professor Jane Mills is the pro vice-chancellor of Massey University’s College of Health, researching rural and public health, health workforce and health system strengthening.
Professor Jane Mills.
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RURAL NEWS // JUNE 18, 2019
26 OPINION
Questions over quality of NZ fertiliser JEREMY TALBOT
HAS THE Fertilizer Quality Council failed farmers? Is the organization as it stands actually fit for the intended purpose? For over 20 years NZ farmers have relied on the Fertilizer Quality Council (FQC) to police
the ‘quality’ of our fertilizer. But what has it actually done to raise the quality of the products we farmers are buying? Recently the council warned off farmers importing their own fertiliser as it may not be up to standard. But what standard? The only thing our
FQC has managed to ever do is to check the chemical composition. The FQC fails to recognise that the physical properties of the product that have a much greater impact on the correct amount of fertiliser applied. Despite calls for 20 years for the actual phys-
ical spreading properties to be tested, as in most other countries, the FQC – dominated by its two farmer co-op representatives – has taken all the steps that it could to avoid doing this. Had Federated Farmers had people at FQC meetings who actually know something about
Jeremy Talbot wants fertiliser spreading properties to be tested.
“I AM LOOKING FORWARD TO THE DAY WE ERADICATE TB FROM OUR HERDS CHRIS IRONS, WAIKATO IN NEW ZEALAND”
OSPRI’s TBfree programme has made significant progress with reducing TB infected herds throughout the country. At its peak in the 1990s there were over 1700 infected herds. Today there are fewer than 30. It’s the investment and hard work of New Zealand farmers like Chris that keeps us on track to eradicate TB from cattle and deer by 2026.
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fertilisers and spreading, then this may not have been allowed to continue for so long. So whose interests are served by having a rating for spreadability? The farmers in the first place. We need to have this very expensive product spread evenly and accurately to get the best return on our investment and avoid environmental damage. This should now be one of the principal concerns of farmers. During the 1990s the UK and the EU found that fertiliser spreading could not be done reliably without the physical characteristics of the products being identified and classified. This was done by the applications unit at Silsoe research centre with a team led by Prof Paul Miller with whom I have worked. The research found that most of fertilisers fell into five categories, hence the aptly named SP (spread pattern) five-rating system. At the start of the SP programme, there was a lot of variation in the products on the UK-EU market as here in New Zealand. However, within five years the testing became redundant as almost all products were upgraded to the highest rating of SP5. This happened when UK/ EU farmers learned of the differences in spreadability and promptly voted with their cheque books. All fertiliser sold in the UK and EU has the SP rating on the bags so is easily identified. Since 2002, this test bed has been offered to FQNZ for testing NZ products but so far it has refused. The cost was about $100,000 to ship it here and set it up in a 8 x 8m shed. I suggest this figure is less than 0.1% of the value of fertiliser
wasted each year through poor application due to poor product. As an example, a load of urea spread on one farm in Canterbury in the last two years stripped the leaves of a barley crop for 12m when spread early in the morning by a Spreadmark approved operator. This was caused by fines in the load exceeding 40%. Crop loss was reckoned to exceed $200,000 for this one incident. Under our Spreadmark system, when a truck is tested on the day, the physical characteristics of the product aren’t measured in any way. So if the truck was tested using a line of super containing a lot of fines it would get a narrower spread width rating. However, if it then went and got a load from the outer part of the pile where the granules were better, it would spread much wider and travel outside the boundary and into any nearby waterways. The fact that after 20 years Spreadmark still has no tests for boundary limiting devices on spreader trucks, yet most farmers’ speaders have these, is yet another example of poor service to the farming community from our regulators and testers. In arable farming especially, farmers need consistent products as they use the same tramline widths to both spray and spread. However, constant variation in the quality of products makes this just about impossible. When farmers sell grain or seeds we must have all sorts of tests done to ensure the product is fit for purpose. The time is well overdue for our fertiliser co-ops and FQC to ensure this happens. • Jeremy Talbot is an arable farmer based in Temuka, South Canterbury
“The best start in life begins with the best product at rearing.” JA M E S E M M E T T J & C DA I RY PART NE R SH I P, G ERA LDI N E
ANCALF™ THE WORD ON THE FARM
Fairlie is Grandlea 1 – a 225 hectare
dairy farm run by contract milkers James
“We find by using Ancalf we can get them up to weight quicker than normal.”
Ten years ago they left the life of running
While the beef calves are solely reared
a bar in Christchurch to give dairy a
on Ancalf, the Emmetts still use vat
go and haven’t looked back. Each year
milk and colostrum to feed their heifer
they aim to rear 28% replacement calves
replacements. But if they show signs of
and depending on their calving rate get
illness or don’t reach target weights they
between 250-270 calves. They also rear 50
are switched to Ancalf. These calves then
beef cross a year, plus the bull calves they
really flourish, showing a 10 kilo weigh
rear for the farm owners the Pye Group,
difference at every weigh in. When it comes to preparing their Ancalf,
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Charlotte has one non-negotiable. The
boost their bottom line. But while profit
milk must be warm, just as if it’s coming
is important, James doesn’t believe in compromising quality by cutting costs, he wants quality products for excellent results. James’ wife Charlotte is the chief calf rearer
best possible feeding experience. They mix Ancalf in small batches with warm water before adding to the calfateria and adding more warm water later.
and Charlotte Emmett.
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from mum. It’s all about giving them the
“The most obvious sign is the coat and eyes, they’re really bright and bubbly.” Says James.
James also reckons the coccsidiostat in Ancalf is a real plus for them. Together with the minerals and nutrients and casein protein they simply get to weaning weights a lot quicker. More and more farmers like James are determined to give their calves the best start in life to ensure they become contributing, healthy and productive animals in the New Zealand milking herd.
on this farm and she begins with twice a day feeding, dropping down to once a day when the calves go out to the paddock. It’s a weight-based system that produces fast results. James explains:
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RURAL NEWS // JUNE 18, 2019
28 MANAGEMENT
Good facilitation key to success of RMPP programme “A GOOD facilitator has control all the time,” claims Sarah O’Connell, referring to her work in helping build business capability. “I don’t mean control in terms of running everything and being out in front of everyone, but in keeping a group you are working with on task.” O’Connell has worked with farmers regionally and nationally, previously as northern South Island extension manager for
Beef + Lamb New Zealand (BLNZ). She now facilitates extension at The AgriBusiness Group, helping build business capability in the primary sector. She is also a facilitator for four Red Meat Profit Partnership (RMPP) Action Groups and is helping set up two more groups. The RMPP Action Network model supports small groups of seven to nine farm businesses to work together to explore
ideas and share expert resources towards positive changes on farm. Kick-start funding of $4000 per farm business is pooled to fund facilitation and expertise. O’Connell says the training she did to become an RMPP Action Network group facilitator was very valuable. “I have seen a lot of facilitation and extension, but had not delivered a lot of it myself,” she says. “The training is excellent and good value and it put
into context for me what good facilitation looks like.” O’Connell grew up on her family farm at Dunsandel, formerly dairy but now grazing young dairy stock and beef bulls. She also has her own beef shorthorn cattle stud. She graduated in agricultural commerce from Lincoln University, with a 15-month study break in the middle which she spent shepherding at Ben More Station at Springfield. She worked for Farmlands then joined the National Bank’s graduate programme, spending several years working with rural customers in Invercargill and Timaru. She joined the RMPP Action Network programme and did her facilitator training while working for BLNZ. She joined The AgriBusiness Group in March 2018. O’Connell has four RMPP Action Groups: at Hurunui, looking at legume systems; a Darfield group new to Central Plains Water irrigation and looking at how to improve productivity and make water pay; a Windwhistle group focused on sheep performance and pasture management; and a group from Greendale looking at irrigation for arable farming. She is also working with a new group with a focus on the sheep milk industry, and is starting a new group -- with Craig Williamson of Rabobank -- to look at farm business performance. “The established groups are going well,” she says. “The Hurunui group is looking at legume systems and working through some of the best ways to introduce legumes into their farming systems and what sort of stock to graze. “We have had expert
speakers at every Action Group meeting, which we generally host at one or other of our members’ farms. We have done some off farm workshops too. They are all using Cash Manager and wanted to know how to use it better, so we did a Cash Managers workshop.” RMPP runs a series of facili-
group members to provide them with opportunities to reach their business goals and objectives. “It’s also giving farmers confidence in their decisionmaking to ultimately help them to improve production and performance.” O’Connell says small things often lead to improvements.
Sarah O’Connell
tation workshops for rural professionals looking to become RMPP Action Network Action Group facilitators. O’Connell says she learned during her RMPP training that while different facilitators may have different styles, the fundamentals are the same. “It’s working with
WHAT IS RMPP? RMPP is a seven-year Primary Growth Partnership programme working to help the red meat sector increase productivity and profitability. The programme is funded by ten partners in government and the private sector: Ministry for Primary Industries, ANZ, Alliance, ANZCO, Beef + Lamb NZ, Blue Sky Meats, Greenlea Premier Meats, Progressive Meats, Rabobank and Silver Fern Farms. RMPP works with farmers and sector businesses to help them tackle their opportunities and challenges.
RURAL NEWS // JUNE 18, 2019
MANAGEMENT 29
Award-winning farmers profit from looking after the environment PETER BURKE peterb@ruralnews.co.nz
A TARANAKI family have proved that profitable dairying and paying special attention to the environment aren’t incompatible. Damian and Jane Roper, who with their children Jack, Harriet and Adelaide run a 148ha dairy farm near Patea, Taranaki, recently won the Fonterra Responsible Dairying Award and received the John Wilson Memorial Trophy. The award recognises dairy farmers who demonstrate leadership in sustainability and who are respected for this by
fellow farmers and their community. An award judge summed up the Ropers as “passionate, enthusiastic and energetic with an ability to motivate those around them. They are determined to be better than just compliant”. The Ropers knew John Wilson personally and receiving a trophy with his name on it is special to them. Their success as sustainable dairy farmers has come by hard graft and an unwavering vision of creating a modern, tidy dairy farm that is profitable and has no negative impacts on the environment.
Jane was born on a sheep, beef and cropping farm in South Australia, north of Adelaide. Damien was born in Rotorua and often holidayed on his grandparents’ dairy farm at Rununga on the West Coast. He helped milk their 30 cows. “That set me up for being a farmer. I knew when I was 11 that I wanted to be a farmer and went to Massey University and did a B.Ag. Sc.” With his studies finished they shifted to Australia where he learned and practised shearing in Wales and England. Returning to NZ in
LIVING THEIR DREAMS DAMIEN AND Jane Roper live their vision in managing their farm. For example, their large modern dairy shed with feed pad is designed to maximise feed utilisation and reduce their animals’ environmental footprint. They have reduced stock numbers but lifted production by 29% over three years. “We used to run 510 cows, but now we run 425, resulting in less pressure on the whole farming operation,” Damien told Rural News. “We have noticed cow production has lifted considerably with less stress during winter and spring and we can cope well when extremes happen due to climate change. “We are better off with 425 high quality cows that are more efficient at converting grass into milk, than 510 average/below average converters that emit more greenhouse gases.” “With 510 cows their stocking rate was
3.2 but it’s now 2.7.” “They have built a quality herd of two thirds Friesian and one third Friesian cross. This season they will end up producing 240,200kgMS (586kgMS/cow). “When we had 500 cows we were barely doing 400kgMS/cow, so you can see how having fewer better cows has helped raise production,” Damien says. “Also reproduction and in-calf rates have improved, allowing replacement numbers to be reduced.” But it’s not all about reducing cow numbers. The Ropers operate on system four and to maximise inputs they have hired a nutritionist to ensure they feed “the right amount of the right feed at the right time”. And they re-grass about 18% of the farm annually, mostly using no tillage. Everything is designed to lower their environmental footprint.
Damian and Jane Roper were recently awarded the Fonterra Responsible Dairy Award and picked up the John Wilson Memorial Trophy.
1992, Damien continued shearing until an injury to his wrist forced him to take a break. “During that time we came to Taranaki for my best man’s wedding. We got a nice feel for the place and saw a pathway
to farm ownership which was always our goal,” he told Rural News. For 23 years they climbed the dairy industry ladder – from farm workers to contract milkers and then 50/50 share milkers. In 2006, the
Ropers bought part of their present farm and the second block in 2008. In 2015 they quit sharemilking and set up home on the present property. The farm is 200ha: 148ha dairy, 30ha pine trees, 4ha bush and the
rest in a small sheep and beef operation. The Ropers run 150 ewes and produce lambs for the summer market and then trade 25 to 30 steers and heifers they rear each year and take through just one winter.
SETTING AN EXAMPLE IN THE seven years before they started running the present farm in their own right, Damien and Jane Roper started planting trees. They reckon they have planted at least 9000 – many around a 2ha lake they created in a boggy gully. They call it Lake Ohurai after the stream that feeds it. They have even created artificial islands to foster the bird life, Jane says. “When we took over the farm it was probably the ugliest area. Now it’s the most picturesque. We
have made underwater reefs for the kura and planted a whole range of native tree species to improve the aesthetics of the lake and provide food for the birds.” The family also regularly swim and kayak in the lake and continue planting there. “We have noticed a lot of duck species coming in -- teal, scaup, dab chicks and flocks of herons,” Damien says. “We have planted carex near the water’s edge which provides good areas for nests.”
And that’s not all. Just outside their back door is a beautifully preserved stand of native bush they call Ropers’ Bush. Its upkeep and preservation is the work of their children Jack (23), Harriet (21) and Adelaide (16). The trees took a hammering in the 2012 storms. But with the help of the Taranaki Regional Council, the Ropers have restored the bush and their children are now building a boardwalk for public viewing without damage.
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RURAL NEWS // JUNE 18, 2019
30 ANIMAL HEALTH
Drench resistance a growing problem PAM TIPA pamelat@ruralnews.co.nz
TRIPLE DRENCH resistance is present on a number of sheep farms Beef + Lamb New Zealand’s Wormwise is dealing with, says veterinarian Andrew Dowling, PGG Wrightson’s technical expert, animal health. “It is a reality for them and it will take a lot of managing to get back and they may never get back,” he told a recent BLNZ Wormwise workshop at Wenderholm Regional Park, north of Auckland. Using drenches in combination rather than a single drench will slow the development of resistance, said Dowling. “It won’t stop it, it will slow it.” He does not believe farming systems will ever completely move away from drenches. Dowling says if your system has developed resistance to a combination drench and you change nothing but the drench, your system will defeat that drench too. “It is a [warning] shot across the bow that you need to change you farming system,” he explains. “You need to look at your own farm and the things that are important and high risk. You need to protect yourself.”
Drenching must be as effective as possible. A drench will kill all worms except the resistant ones. But half resistant ones – offspring from a resistant and a non resistant worm – if they survive drenching and keep mating get worse. Immediately after drenching you make it easy for resistant worms because they have less competition, he says. The females get bigger and lay more eggs. You get purely resistant worms and resistant eggs for 21 days. You must drench to the heaviest animal. Get a cylindrical measure because the tapered ones are very inaccurate in the bottom half. Dowling advises the more squirts the better: never trust a drench gun, he says. To determine if a drenching was effective you need to do a faecal egg count 7-14 days after drenching. Results a few days after will not be reliable because the drench tends to sicken the females that don’t die and they don’t lay eggs immediately. You need to do individual counts after drenching so you can see which ones weren’t drenched. “With 95% of your population in the paddock, it takes a long time
for ineffective drenching to affect that population but when it does it takes an equally long time to tip it back the other way.” In developing triple drenches, the drench companies have spent millions of dollars working out how to make the different drenches stay together. When using a triple drench do not mix anything else with it, he says. If you are buying in stock it is your responsibility to quarantine drench them. (Triples are not the best choice anymore.) If rearing dairy heifers for someone else you need to be part of
deciding the parasite management strategy. “If your system creates resistance to worms or brings a disease on, it stays on your farm.” Drench resistance can cost you 14% of the carcase value of the lamb. Lambs with triple resistance will never grow as quickly. If you use an ineffective drench you will breed resistance. “Do your faecal egg count at least once a year on 10 animals, a week or two after drenching, to make sure it has worked. If it hasn’t get your drench gun out again and check it. Drench another mob and see what’s going on.”
Using drenches in combination rather than a single drench will help show the development of resistance, vet PGG Wrightson’s animal health expert Andrew Dowling says.
MANAGING STOCK ROTATIONS UNEATEN LARVAE in grass in summer may only survive six to eight weeks. In the winter they last four to five months. Managing your stock class rotation is important, says Dowling. “Depending on the genetics of your ewe she can make life hostile for the worm. If you fed Telodorsagia larvae to a 30kg lamb about 30% would become adult worms. If you fed those to an adult ewe only 2-3% would become adult worms,” Dowling explains. “It is not fully understood why, but something in some adult ewes makes life so hostile for larvae that they don’t develop into adults. “So if your ewes have a high egg count, you need to do some-
thing about your ewes. It is not a silly idea to faecal egg count your ewes to find out what is happening on your farm. “One count is a snapshot in time, but doing them regularly year after year you start to get a picture.” Dowling says two tooths don’t put out as many eggs as lambs. Four tooths are better. Once a ewe is fully mature - considered to be after her second winter - that is as good as it will get. Adult cattle are similar: two year old cattle don’t put out nearly as many worms as younger cattle. He says faecal egg count test sheep at important times of the year – at least autumn, winter and spring. Faecal egg counting cattle
older than eight months is highly inaccurate and likely to miss a burden. In cattle, liveweight gain is the best indicator of which needs drenching in the mob. Protein is a great way to help animals manage the effect of parasites. Lucky for Kiwi farmers, NZ pastures often contain ample protein. The liver metabolises the drench and it is these components which kill the worms, not the drench itself. Oral drench needs to sit in the rumen for as long as possible. Injectable drenches introduce high levels and pour ons are slower and more variable. Don’t drench lambs in the docking cradle and don’t drench
calves on a feeder or calves still being fed milk. “If you can’t get your cattle to effectively swallow oral drench then don’t oral drench them. If you under dose them you will have just given a whole lot of worms a taste of the drench and they will survive.” With pour-ons you get a lower level of drug into the animal. With injections you get a much higher dose so you get a better upfront kill. Dowling says he prefers orals and injections as these have triple combination options. “Arguments cut both ways but if you want to kill the worms you need a high concentration of drug and susceptible worms.”
RURAL NEWS // JUNE 18, 2019
MACHINERY & PRODUCTS 31
Massey looks to increase its market share MARK DANIEL markd@ruralnews.co.nz
TRACTOR MANUFACTURER Massey Ferguson appears to be hitting a sweet spot. The company claims that in 2018 it increased sales by 13%, leading to a plan to push tractor and header sales by 15% and 8% respectively. On the tractor front, the targets will require the key production plant at Beauvais in France to increase output from
line parts sourcing will see external parts supplies being allocated their own spaces on site and the likelihood of their own on site sales teams. On a broader front, MF is also looking at providing customers with more choice and customisation options for their tractors. This will be different from the group’s Valtra Unlimited Studio at the Suolahti plant in Finland, probably using a dedicated off line area for the addition of options.
14,000 to 18,000 units per year -- an increase of 30%. The parent company AGCO says it will make substantial investments in land and infrastructure over the next five years. Interestingly, logistics will be a key aspect of the increases. In 2014, about 7000 parts were required at the plant to build its tractor ranges. This will need to rise to 20,000 items by 2020, the company says. The need to stream-
Another new move will be remanufacturing of tractor transmissions to complement engines now being remanufactured in Finland. The facility will be available for newer models and older units like the 3000 series. At Beauvais the transmissions will be stripped out, cleaned, renovated then marketed with a 12-month warranty. The purchase price will be roughly 40% of a new unit.
STRETCHED TRACTOR MAKES THE GRADE CONSTRUCTION SPEC graders are mighty costly items. With this in mind, the Dutch company Bos Konstrucktie en Maschinebouw has developed a niche market for graders that retail for about half the cost of traditional machines. It uses humble agricultural tractors as the base vehicles. Its latest creation, based on a Massey Ferguson 5712S tractor, will be used to level unmade, sand based roads in the eastern Netherlands. In conversion, the donor tractor has its front axle removed and pushed forwards to hold a large frame structure from which a 3.5m wide grader blade is suspended. The stretched MF is about 3 tonnes heavier than the base unit. Overall dimensions are kept as compact as possible to allow safe travel and the machine has front mounted cameras to improve safety, allowing it to approach a junction and safely pull out into traffic.
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RURAL NEWS // JUNE 18, 2019
32 MACHINERY & PRODUCTS
Colorado concept huge at Fieldays and beyond MARK DANIEL markd@ruralnews.co.nz
WITH SALOON cars fading on buyers’ radar, Holden is confirming its focus on the ute and SUV market. The company chose the National Fieldays to reveal its home-grown concept -- the mighty Colarado ROX. “We know many of our customers have grand visions of what they’d like to do to personalise their own vehicles after driving them out of the dealership. So we wanted to showcase how far you could take the extremely capable Colorado” says HNZ managing director Marc Ebolo. “Once the ball was rolling our marketing team, with partners Retro Vehicle Enhancement (RVE), spent a lot of time and effort bringing this concept to life.” The ROX runs on 35-inch Blackbear mud terrain tyres and has custom made flares to
house the huge wheels, a six-inch suspension and body lift kit. ‘Rock Sliders’ with removable drop steps make getting in and out almost as easy as on a standard Colorado.
DRAINAGE AND SOIL AERATION PAY BIG DIVIDENDS Don’t put good fertiliser on compacted soil which can’t absorb it. If your soil can’t support 15cm root growth and good worm population check for compaction. You could need aeration. In dollar terms, what would 20% production increase mean to your yearly turnover?
The vehicle has a carbon fibre, high rise bonnet, hand crafted bespoke front and rear steel bumpers and a rear deck cargo system and 500mm tray extender. It also has an extended
The Colorado ROX will demonstrate the model’s 3.5 tonne towing capability, hauling a laden event trailer as it tours the country on a nationwide dealership tour.
It will be displayed at big shows such as Fieldays. To bring the project to life, Holden partnered with Retro Vehicle Enhancement (RVE), an Auckland
business specialising in aftermarket vehicles. RVE sources parts from Poland, America and Taiwan. Many were made from scratch, requiring extensive oneoff CAD engineering.
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wrapping roof bar with retractable lights and a roof basket. Inside the vehicle has been up-spec’d with front and rear RVE sports seats with hand made leather upholstery.
PRE RIPPERS
MAITLAND RD5, GORE. PH/FAX 03-207 1837 OR 027-628 5695 www.james-engineering.co.nz
THE BIG mixer wagons seen in New Zealand have a long way to go in size to rival the behemoths used in North America. One such US spec machine – now on its way to the US and described as the world’s largest mixer wagon – recently left Dutch manufacturer Peecon. It has mind blowing capacity of 70 cubic metres. This is the largest model in
Peecon’s aptly named Biga Mega Mammoet range. It has four vertical mixing augers, carries a load of at least 28 tonnes and requires a tractor of 250hp+ to power it. The feeder, en route to Marloo Equipment, Michigan, joins several machines already delivered to the US. Machine statistics give an idea of its size: length at least 13m, width of 3m and tare weight at
least 24 tonnes. Standard features include four hydraulically controlled discharge doors – two each side, a separate chassis with integral multi point weighing, and a semi automatic powershift transmission to allow reduced start up loads and a smooth build up to optimal operating speed. @rural_news facebook.com/ruralnews
RURAL NEWS // JUNE 18, 2019
MACHINERY & PRODUCTS 33
Electric UTV for the environmental farmer lock, tilting tray, alloys and bull bars. Load capacity for the cargo bed is 230kg and towing capacity is 680kg. Price is $16,500 + GST.
MARK DANIEL markd@ruralnews.co.nz
Shane and Kylie McDonald with their Valtra.
Reliable, honest hardworking tractor does the trick SHANE AND Kylie McDonald were searching for a reliable, straightforward tractor for their specialist farm at Bell Block, New Plymouth. They looked at several brands and models then test drove a Valtra and loved it, they say. The McDonalds milk 700 Saanen goats and run a Simmental and Charolais beef stud. A lot of harvesting is required for the dairy goats. So on their 90ha they regularly sow 50ha of pasture and lucerne from August to May to feed them. The goats prefer shorter grass, so the lucerne is cut every month. Grass silage is cut more often and shorter. Their new Valtra T194 Versu, rated at 190hp and boosting to 210hp, with the front linkage now allows the McDonalds to run a front mower/conditioner with a similar rear unit. A stand-out feature for Shane is the tractor’s 7.4L AGCO Power engine that appears extremely fuel efficient. “We filled it up when it arrived then our son Jacan used it for 10 days. I got in and asked him when he’d filled it and he hadn’t. The cost of running it is minimal.” Fitted with a loader, the Valtra is also used to load or shift bales, often on a trailer to the farm’s various platforms and lease blocks. They make the most of the machine’s 50km/h road speed on the 11km journey, and the transmission with four ranges, five speeds and a five-step powershift system that can be operated manually or auto. They ordered the tractor with larger tyres – 710s on the rear and 600s up front. Their larger footprint suits Taranaki’s wet weather and McDonald finds they have more pulling power in difficult conditions. He also applauds the touchscreen monitor. “It’s easier to use than an I-phone,” he says. It can store settings such as engine and transport speed, linkage settings for the mowers and shift positions for automated gear changes. Specified with a 15L/min hydraulic system, the Valtra has six hydraulic valves. Dependent on the task at hand it can be configured to operate through the tractor’s joystick or the conventional levers, while also offering different flow rates or timers. The cab has a good stereo, air conditioning and Bluetooth connectivity and is comfortable and quiet. A practical feature is the windscreen wipers that keep the whole window clean, making operation easier particularly with lateral visibility. The cab is very comfortable and quiet, with lots of user friendly functions like the seat automatically calibrating for the operator’s weight.
WHILE ELECTRIC and hybrid vehicles gain traction on our roads, the concept is largely missing from the rural and offroad markets. But Hisun Motors New Zealand is ‘dipping its toes’. It chose Fieldays to showcase its all electric Hisun Sector E1 UTV -- a midsize, twoseat unit powered by a 48V AC drivetrain of 36hp and 298 Nm of torque. The E1 is said to be the first electric UTV to use Discover Traction Dry Cell battery technology that has long run times and needs no maintenance. Hisun claims the Sector E1 will operate for
up
to eight hours on a single charge, has a top speed of 45km/h and a range of up to 70km depending on driving style, terrain and load. Several E1 machines have been field tested on NZ farms and the performance has matched fac-
tory estimates. The E1 can be fully charged in six-eight hours via an onboard charging cord, located in the glovebox, which plugs
into a standard 240v domestic power outlet. Standard features include 4-wheel independent nitrogen suspension, 4-wheel drive, 4-wheel hydraulic disc brakes, front diff
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Postdriver SPECIALS SERIES 2 WITH ROCK SPIKE Includes
❱ 4 bank valve hydraulic top link and angle adjustment ❱ 4.25m 150UC beam ❱ 270kg hammer ❱ Adjustable legs ❱ Rock Spike kit with 90mm spike
16,750 + GST
$
Normal RRP $19,030
DAIRY DONGER
17,500 + GST
$
Normal RRP $19,100
NZ MADE FOR OVER 40 YEARS
www.kinghitter.com •
Includes
❱ ❱ ❱ ❱
Hydraulic folding mast 900mm side shift 4.2m beam with 227kg hammer Hydraulic top link and angle adjustment rams
0800 476 868 • sales@fairbrother.co.nz
RURAL NEWS // JUNE 18, 2019
34 MACHINERY & PRODUCTS
SDF group reports growth MARK DANIEL markd@ruralnews.co.nz
TRACTOR MANUFACTURER Same Deutz Fahr
(SDF) has spent NZ$17 million on its Turkish tractor plant at Bandrima, aiming to double capacity to 15,000 units per year.
The plant’s products are sold in local, European and global markets in the key 50-150hp sectors.
It has a new 10,000 sq.m factory and combines with other new and existing buildings to cover 27,400 sq.m.
The site also has a new paint shop, transmission assembly and testing facility, parts warehouse and training centre. Part way through the project, largely undertaken in 2018, the Turkish economy hit trouble. SDF chief executive Lodovico Bussolati said the last part of 2018 and the early months of 2019 had not shown any positive movement in the Turkish economy. “Nevertheless, our investment in Bandrima is part of a long term strategy.” Meanwhile the SDF
Group reports increased growth and profitability in the 2018 financial year. Reported revenue was NZ$2.34bn, up 3.6% on 2017, and group gross earnings were 9% up on 2017 at NZ$209m. The company attributes its rise in performance to the European market -- up 12% -- where it launched new high horsepower and specialised tractors.
In Turkey, sales dropped sharply in a market that dropped 34% overall. In China, where the overall market dropped 10%, SDF maintained 2017 levels, selling a greater product range and building a new production line for harvesting machinery. @rural_news facebook.com/ruralnews
Safer battery charging A NEW compact charger designed for lithium ion phosphate batteries keeps them safer and always ready for use, the manufacturer claims. The Projecta 12V, 1A Automatic IC100L charger can be used with lithium ion phosphate (LiFePO4) and standard batteries. It’s good for maintaining infrequently used equipment such as motorcycles, jet skis and ride on mowers. While many new products come fitted with a lithium battery, some owners – particularly motorcyclists – often retrofit lithium batteries to achieve weight savings of up to 70%.
Such batteries are best charged with a unit like the IC100L to avoid damage. If Lithium batteries are not looked after, such as not
charged with the correct device, they can be damaged by overheating – potentially dangerous. The new IC100L uses a five
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stage charging algorithm with two soft starts and lithium specific voltage levels across the charge cycle. This provides better power density, faster charge times, greater discharge capabilities and inherently safer operation, while also extending the life of the battery. Conventional battery chargers do not suit lithium batteries. But the IC100L will charge traditional WET/AGM and CALC batteries. The Projecta IC100L comes with battery clamps and a fused vehicle harness to provide multiple charging options. www.projecta.co.nz
GALLAGHER UPS INVESTMENT IN AUSSIE AGRITECH COMPANY MELBOURNE AGRITECH company Agersens says it has raised $14.75 million capital including cash from existing investors such as NZ’s Gallagher Group. Chairman Andrew Maxwell says the capital raising will allow the company to scale up, and it will assign the marketing and sales of eShepherd to Gallagher in Australia and New Zealand. “Our investors have taken a considered view of the growth potential of eShepherd, believing in the virtual fencing value proposition and its potential to transform livestock production globally,” Agersens said. “With Gallagher being a global leader in the innovation, marketing and sales of smarter, simpler animal management solutions that make farm life easier, eShepherd should be a good fit for their product portfolio.” Mark Harris, Gallagher animal management marketing manager says his company applauds the environmental, productivity and labour-saving possibilities of eShepherd for pastoral farming. “Gallagher has been promoting managed grazing systems using electric fencing for more than 80 years, and eShepherd is the next major development for improved grazing,” Harris adds. “For this reason, Gallagher has taken a significant interest in Agersens as part of this capital raising.” Agersens claims to be revolutionising global livestock production by applying virtual fencing technology developed by the CSIRO. The company holds the worldwide exclusive licence for the technology. Its partners include beef and dairy farmers, CSIRO, Gallagher, state and federal governments, Meat & Livestock Australia, Dairy Australia, universities, agricultural research organisations, cattle and dairy farmer associations, and natural resource managers.
RURAL NEWS // JUNE 18, 2019
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RURAL NEWS // JUNE 18, 2019
36 RURAL TRADER The Spreader Specialists
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QUADS, ATV’S TRACTORS, AND UTES WWW.RUGGEDVALLEY.CO.NZ | 0800 478 443
BUFFALO Boots! GUMBOOTS! RAINWEAR! lace up
$133
valued at $320
STEEL TOE (with Scuff Guard)
plain TOE
PLAIN TOE (without Scuff Guard)
steel TOE $50 valued at $120
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SLIP ON
$128 valued at $280
STEEL TOE (with Scuff Guard)
PHONE
0800 16 00 24
Limited Stock
Perfect 35cm Height
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sold out of size: 7
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Sizing for these is the same as NZ WORKboot sizing (not NZ gumboot sizing). Available in sizes 7-12.
earthwalk.co.nz
CHEQUES
Sizing for these is the same as NZ womens GUMboot sizing. Available in womens size 5, 6 ,7 8. (plain toe)
earthwalk, r d 2, palmerston north please add $12 freight per order
Culvert Pipes New Zealand’s CHEAPEST Culvert Pipes! FREE joiners supplied on request. ONE STOP WATER SHOP 300mm x 6 metre ................................ $410 400mm x 6 metre ................................ $515 500mm x 6 metre ................................ $690 600mm x 6 metre ................................ $925 800mm x 6 metre .............................. $1399 1000mm x 6 metre ............................ $2175 1200mm x 6 metre ............................ $3475 ALL PRICES INCLUDE G.S.T.
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sold out of size: 7, 9
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$48
sold out of size: 7, 13
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sold out of size: 7, 11, 12
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sales@mckeeplastics.co.nz | www.mckeeplastics.co.nz
$88
valued at $230 sold out of size: S, 2XL 3XL
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sold out of size: XL, 2XL, 3XL
sizes: BOOTS 7 - 13 (NZ)
LEGGINGS
$66
valued at $145 sold out of size: S, XL
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Phone
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for your nearest stockist
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We’re built for New Zealand. For dry dusty days, torrential rains and howling blizzards. For endless forests, flooded river plains and grassy paddocks. For steep hills, treacherous rocks and deep muddy creeks. For carrying, hauling, mustering, fencing or any other job you can think of. So visit your nearest dealer and see how a Can-Am Defender is built for you.
CALL NZ 0800 444 475 OR VISIT WWW.NZ.BRP.COM/OFF-ROAD/ FOR MORE INFORMATION
© 2019 Bombardier Recreational Products Inc. (BRP). All rights reserved. ®, TM and the BRP logo are trademarks of BRP or its affiliates. Always ride responsibly and safely. Always wear protective gear & approved helmet. BRP reserves the right to change the promotion at any time. *Terms and conditions apply. ^#1 customer satisfaction based on 2018 customer survey. RRP excludes GST.