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AUGUST 2014

A house call with the president: Dr William Rolleston p4

NATIONAL POLICY Taxing farmers NZIER investigates potential impact on primary industry and wider economy p5

Overseeing Overseer Best tool for nutrient management? P9

REGIONAL POLICY Tukituki update Two appeals lodged, Feds prepare for High Court P14

ECONOMY Dairy prices slump Is Chinese demand weaning?

P17

INDUSTRY GROUPS Kiwi produce in USA Californians sample the best of New Zealand beef

WOOL UNDER FIRE If we’re next, who will defend us? — p10

P22

BE IN TO WIN We are giving away a copy of 45 SOUTH: A journey across southern New Zealand, which explores the dramatic variety of landscapes found along the 45th parallel — the midway point between the equator and South Pole. ■ To enter email your name, address and telephone number to competitions@fedfarm.org.nz

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National Farming Review August 2014

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PERSPECTIVE

Playing to our strengths

INSIDE

Feature:

Wool industry seeks champion 10

Regulars: Perspective

National Policy

3-5, 9, 24

Counterpoint . .

Regional Policy

6-7 13-16

Employment

Economy

Opinion . .

22, 25

18-20

Dairy

Industry groups Insider

Editor: John Donnachie Ph: 04 470-2162 jdonnachie@fedfarm.org.nz Memberships: April van Dam Ph: 0800 327-646 avandam@fedfarm.org.nz Advertising: Leo Sherry Ph: 04 915 9785 leo.sherry@apn.co.nz ■ ISSN 1179-4526 Front page image: AAP Newswire

Federated Farmers has a new president, Dr William Rolleston. His first column emphasises the role of families in farming. Agriculture in New Zealand has relied on two great pillars — the farming family and science. Whether a farm is family owned, has an off farm owner or is corporately owned there is usually a family at the centre of operations — there has to be. 2014 is the year of the family farmer and recognises this central role played by our farming families. This year is also the 100th anniversary of the birth of Norman Borlaug, the father of the Green Revolution. Not the political green, but the development of modern hybrids and the use of pesticides, fertilisers and irrigation. Norman Borlaug grew up on a family farm in Iowa. He realised that farming needed help from scientists and so he dedicated his life to science. He spent 50 years developing the modern crops we know today and in the process increased crop yields in Mexico, India, Pakistan, and Africa — in some cases by more than 10 times. The International Centre for Maize

and Wheat Improvement (CIMMYT) and Biology Fortified have put together a short tribute in a clever rap mix using video of Dr Borlaug. We have put it DR WILLIAM up on our ROLLESTON website (http:/ /www.fedfarm.org.nz/). It is well worth watching just for the entertainment value but it also holds some important messages. Of particular relevance is the contribution science has played and is playing in agriculture in New Zealand. Science has kept us at the front of the pack, but we can also use science to increase the value of our products; increase our productivity while remaining within our environmental footprint; reduce our risk of

adverse events such as pests and diseases; and build resilience through water storage and irrigation. Most of all we can use science to ensure that our freedom to operate is not unnecessarily or unreasonably curtailed through those who may misrepresent the facts. Just like Norman Borlaug says in the video: If I have anything to contribute to this world I’m going to play that card and play it hard When I know the scientific facts are right I’m going to play that card and play it hard. Federated Farmers is a strong and effective team — from the policy team and staff; to the elected representatives and to the members themselves. Watch Norm’s tribute and be inspired — as farmers we have much to contribute.

Bringing vast experience to Fed role G’day, I’m Graham. This is my first column in the National Farming Review as chief executive of Federated Farmers New Zealand. I thought I’d focus on telling you a little bit about myself, to provide some background and context. But first a confession. Yes I do have a cross to bear in being an Australian, but I’ve lived in New Zealand with my family since 2001, so hopefully it gives me some rights of passage and knowledge of New Zealand. Sometimes I believe we need to remind ourselves that New Zealand is a fantastic country at so many levels; friendly, dynamic, safe and outward looking, wanting to engage with and compete with the rest of the world. Like any country it does have its problems, but the reality is that my wife, Rhonda, and I made a conscious decision to bring our children up in New Zealand . . . need I say more. Before coming to New Zealand, most

of my working life was spent in the Australian food industry; firstly as a young economics graduate in the sugar industry, then with a multinational comGRAHAM SMITH pany that proChief executive duced chocolate and soft drinks, and finally the Australian dairy industry. In 2001 I joined the New Zealand Crown Research Institute AgResearch and so began my introduction to the dynamic, innovative and export focussed agricultural industry. Since then I have been involved in developing the Waikato Innovation Park with its focus on agritechnologies and have run one of New

Zealand’s Crown Research Institutes; the Institute of Environmental Science and Research (ESR), which helps keep New Zealand safe and healthy through its forensic, infectious disease and food safety work. I live on a lifestyle section but would never dare say that I’m a farmer. The reality is that I’ve always been interested in the agricultural sector, so the opportunity to join Federated Farmers, one of the iconic agricultural organisations in New Zealand, was one that I could not resist. Like our president Dr William Rolleston, I also have a great interest in science and innovation. Part of my focus will be to meet a range of farmers and others in the agricultural sector on a regular basis, to “get my hands dirty” to support the Federated Farmers Board and staff to ensure that Federated Farmers continues to build on the excellent work of our previous president Bruce Wills and his board to make a difference.

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August 2014 National Farming Review

NATIONAL POLICY

Dairy drags confidence down Nick Clark A slump in dairy farmers’ confidence has seen Federated Farmers’ new-season Farm Confidence Survey move into negative territory, with pessimists outnumbering optimists with regard to prospects for the general economy and farm profitability. Commodity prices have fallen over the past few months, especially for dairy products which were down 30 per cent from February to June (and dropped further after the survey closed). With the exchange rate remaining stubbornly high, it’s not acted as a buffer and this will be putting pressure on dairy farm incomes, albeit off a strong base from 2013/14’s bumper season. Meat & fibre farmers’ confidence has also fallen but remains positive, reflecting better international prices for sheepmeat, beef, and wool. Production was generally good during the 2013/14 season, bouncing back from last year’s severe drought. Most farmers expect to further increase production this coming season although some are concerned about the risk of an El Nino weather pattern causing a summer drought. Most of the recent business confidence

surveys have seen a pull-back in confidence levels, which is no surprise considering we are now in an environment of increasing interest rates. Farmers are particularly sensitive to higher interest rates, not just because the sector has high debt levels, but because higher interest rates are also underpinning the exchange rate which impacts on farm incomes. It is therefore no surprise that farmers are more pessimistic than the overall business community both about the prospects for the general economy and for their own businesses. Despite being more pessimistic about their own profitability this has yet to be reflected in farmers’ spending intention. Most farmers will still be making a profit so the pressure to slash spending is not as high as it might otherwise be. Other farmers might be looking to hold or increase spending to boost production while some might be finding it hard to reduce spending due to higher input prices. Most farmers remain cautious about their debt, with little change in the proportions of farmers overall expecting to increase, reduce, or hold debt at current levels. Fewer dairy farmers expect to reduce their debt, reflecting

lower expected discretionary incomes, but this is offset by more meat & fibre farmers expecting to reduce debt. The agricultural labour market remains tight with farmers reporting greater difficulty finding skilled and motivated staff. Regulation and compliance costs remain the biggest issue for farmers, with considerable anxiety about the impact of policies being implemented by regional councils on water quality and water allocation. This is followed by the exchange rate and by debt, interest rates, and banks, both of which have moved up sharply in concern from January. Farmers’ highest priority for the Government is monetary policy, followed by compliance costs, and fiscal policy. More farmers than usual want the Reserve Bank and the Government to do more to prevent interest rate increases and reduce the high, overvalued exchange rate. As with the last survey the overall results mask both industry and regional variations. In a turnaround from recent surveys dairy farmers are the most pessimistic across all the indicators. Meat and fibre

is now the most optimistic. The headline results from the Farm Confidence Survey: ■ A net 7 per cent of respondents expect general economic conditions to worsen over the next 12 months. ■ A net 4.3 per cent of respondents expect their own farm’s profitability to worsen over the next 12 months. ■ A net 43.9 per cent of respondents expect to increase production over the next 12 months. ■ A net 12.9 per cent of respondents expect to increase on-farm spending over the next 12 months. ■ A net 23.7 per cent of respondents expect their farm debt to reduce over the next 12 months. ■ A net 21 per cent of respondents found it harder to find skilled and motivated staff over the past six months. ■ Respondents’ biggest single concern was regulation and compliance costs, cited by 23.7 per cent of respondents. ■ Respondents’ highest priority for government was monetary policy, cited by 19.6 percent of respondents. The web-based survey was in the field from June 30, to July 11, and attracted 872 individual responses. The next survey is in January next year.

Election day: September 20 is looming This is particularly relevant for those employing migrant workers. Australians, Cook Island Maori, Niueans and Tokelauans can enrol once they have lived in New Zealand continuously for 12 months (they do not require permanent residency to be eligible to enrol and vote).

However you live your life, whether it is in the heart of Auckland’s CBD or in the backblocks of the Otago high country, we are all equal in one simple way. We all have the right to vote, and that’s a powerful thing.

Have your say

In New Zealand, it is easier to enrol and vote than in almost any other country on earth, but because of the distance to community amenities those living in rural and remote New Zealand may need to put more thought and planning than most into making sure they have their say.

Who can and can’t enrol and vote? By law, everyone who is eligible must enrol, although voting is not compulsory. Those who are eligible to enrol: ■ are 18 years or older, AND

Why enrol early?

ENROL: Federated Farmers’ encourages all those in the rural communities to vote; every vote counts in what is predicted to be a close result.

■ have lived in New Zealand for more than one year continuously at some time in their life, AND ■ are a New Zealand citizen, OR permanent resident of New Zealand.

Enrolling early makes it easier to vote in September’s election. Those who are enrolled by Wednesday, August 20 will receive an EasyVote card and information pack about a week before Election Day. This includes information about where and when to vote in advance or on election day, a list of the candidates standing in the relevant electorate, and the party lists. Encourage your employees to enrol, check, or update their details now to make voting as easy as possible, at www.elections.org.nz, by calling 0800 36 76 56, freetext their

Face to face, farmer to farmer. Nothing beats a bit of first-hand experience, which is why we can come to you. We’ll help assess the needs of your farm in person. That way we can apply our knowledge and know-how based on what we’ve gained from growing up on the land, just like you. So put a face to our name today.

FMG0505

Ask around about us, or for some advice call 0800 366 466.

That’s what works out here.

name and address to 3676, or at any PostShop.

How to vote

If you wish to vote earlier in advance you can from Wednesday, September 3. So if you only travel into town every so often, plan a trip during the voting period to coincide with when you can vote in advance. Information about when and where advance voting facilities will be open will be available at www.elections.org.nz and from 0800 36 76 56 from August 27. In some parts of the country, like Clutha-Southland, a mobile voting service will be provided. If you are not going to be able to get to a voting place during the advance voting period or on election day than contact your local Returning Officer for advice. ■ Contact details for all Returning Officers will be available from 0800 36 76 56 or www.elections.org.nz from August 4.

National Farming Review August 2014

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NATIONAL POLICY

Crowdfunding an option for agriculture? Dr Lisa Harper According to reports, New Zealand’s primary sector has significant capacity for growth, in terms of value if not production. However, a future funding gap may hamper that growth. New financial tools such as crowdfunding could help. ASB and ANZ banks have predicted a growing need for capital in the agricultural sector; $65-70 billion over the next 10 years, increasing to $210 billion by 2050. Meanwhile, the Government aims to nearly double the value of exports from the primary sector by 2025. Adequate finance is

essential to support this growth. Among the options may be greater use of crowdfunding. Crowdfunding involves large numbers of people who each invest a small amount of money in a business. A universal element is the use of internet technology, to reach many potential investors cheaply and easily. Internationally, the amount invested via crowdfunding has risen sharply, from US2.7 billion in 2012 to more than US$5 billion in 2013. Seeing it as a valuable aid to economic development, governments in the EU, the US and now New Zealand

have legislated to encourage crowdfunding. Australia is looking to follow. From April 2014, a law change allows Kiwi entrepreneurs to sell shares to the public and borrow up to $2m a year via licensed crowdfunding and peer-to-peer lending platforms. All without having to produce a formal prospectus, which in the past has proved prohibitively expensive for smaller businesses. These changes are expected to produce a rapid increase in the number of people using crowdfunding. Crowdfunding began with the creative

and technological industries. The primary sector has been slow to adopt it, but this may be changing internationally. In Britain, individual businesses are using it to finance farm purchases or expansion into international markets. In the US, one crowdfunding group invested more than US$30m in the food and farm sector over the past three years. It remains to be seen if New Zealand agriculture is ready to embrace crowdfunding. Federated Farmers works to support a strong, dynamic primary sector and will be watching developments with interest.

PROFILE

A house call with the new president John Donnachie Federated Farmers’ new national president, Dr William Rolleston may have a celebrated lineage but his eyes are very much on the future. “I don’t tend to look back and ruminate on the past. It’s not something I do,” he said. Conquering new territory in becoming the Federation’s 32nd president is consistent with family traditions. The surname Rolleston (pronounced ‘Rolston’) dates back over 30 generations to the Norman conquest of England in 1066. Rolleston, the commuter town south of Christchurch, was named after one of William’s forebears and should also be pronounced “Rolston” — a battle the family forever fights! Dr Rolleston’s maternal ancestors, the Rhodes in Canterbury and the Bidwills in the Wairarapa, were some of the first Europeans to farm in New Zealand. George Rhodes, from whom the infamous Mackenzie stole sheep, was the first run holder in South Canterbury. William’s great grandfather Robert Heaton Rhodes, George’s eldest son, bought Blue Cliffs Station, the family property, in 1879. There have been many achievements through his career in medicine and biomedical commerce. But for Dr Rolleston, it was working alongside brother, John to establish their biotech company, South Pacific Sera, using products from their own animals, which brings him the greatest satisfaction. The company expanded from a twoman operation where William and his brother did everything, from the farm

FAMILY HIKE: Dr Rolleston and eldest daughter Rachel enjoy the outdoors by the Caples River at the head of Lake Wakatipu.

work to the laboratory processing, to an operation employing over 70 people. “We worked pretty hard and in the process expanded the property to 30,000 stock units.” William’s father was an accomplished mountaineer, chaired the Mt Cook National Park board and was trustee to many high country stations ensuring the family got more than familiar with the South Island’s mountains and high country. That experience he still enjoys today with his own family; wife Marion and their three daughters — Rachel, Julia and Tessa. William remembers researchers frequently visiting his grandparents at the station. “It was through this constant

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exposure to the enquiry and investigation of what is going on and how to make things better which made a big impression on me,” he said. His appetite for all things science is fuelled by reading on the origins and workings of the universe, biology and natural history. He currently serves on the Ministry for Business, Innovation and Employment’s Science Board. One thing is apparent — he’s a proud Timaruvian; His biotech company, South Pacific Sera, recently won the nationwide business video competition for Gigatown, nudging Timaru into second place overall. Not surprisingly he is on the board of Aoraki Development. Akin to his passion for the mountains, William and Marion are “keen skiers” and still compete in Masters ski racing. “It’s a great excuse to go fast on skis,” he says with wry smile. He represented New Zealand in the University Winter World Games in Czechoslovakia as an alpine skier. The 53 year-old is passionate about running, though his favoured distance, the 400m, is no longer on the agenda. Dr Rolleston’s achievements in sport and business suggest he is competitive and analytical. As a keen follower of athletics and rugby, he attended the last London Olympics and the French Rugby World Cup. “That whole psychology behind sport and all the strategies athletes use to get that vital edge interests me,” he said. And becoming Federated Farmers’ president is there any special strategy he has had to learn?

“Bruce (Wills) and I used to talk a lot so we had a pretty good sense of what each other were doing. But I have certainly taken lessons from his leadership and his ability to network and bring people together.” As for goals as president there was naturally focus on evidence and science. The challenges “around water, the environment and water storage are well known”. “If you give farmers’ clear evidence of a problem they will get motivated to find a solution. But if there is nothing clear they get frustrated and I think that is where Federated Farmers can act and clear that path with evidence and solutions so farmers can buy into it where necessary and push back where we need to.” Dr Rolleston, meanwhile, does not shy away from controversial subjects like climate change and genetic modification (GM). He was awarded the distinguished Biotechnologist of the year for his advocacy for science in the GM debate. He says one-dimensional solutions advocated by many environmentalists lack credibility. “The thing is, there is never one solution, people are always looking for the golden bullet and actually that is not what it is about. It’s about finding those incremental changes that make the world a better place. Everything you do has consequences. “These are all tradeoffs. There is no perfect world. If you want to ensure people live better, healthier lives we have to progress otherwise, we go back to the Dark Ages and no one would want to go there,” he said. RAVAUG-NFR

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August 2014 National Farming Review

NATIONAL POLICY

Care essential in tax policy Mark Ross With the general election approaching tax polices have been proposed by a number of political parties. The three key policies from an agricultural perspective being the introduction of a capital gains tax (CGT), resource rental charge such as a tax on water, and the inclusion of biological emissions into the Emission Trading Scheme (ETS). Federated Farmers is of the view that care needs to be taken when considering taxing competitive agricultural sectors since countries which have done so without strong justification, have performed poorly — Argentina being an example. Because of the potential negative effect of the taxes on the agricultural sector, Federated Farmers has contracted the New Zealand Institute of Economic Research (NZIER) to analyse the overall implications of the three taxes on farm profitability, farming succession and the wider economy. The core approach of the studies will involve assessing the likely impacts of the taxes on the farming sector, and

TAXING FARMERS: A Labour/Greens government have indicated they will introduce a capital gains tax should they win the next election. PICTURE: NZ HERALD

other primary industries, how they may lead to unintended consequences or perverse incentives and behaviour,

and why this may be more of a problem for farming than for other affected sectors. Included in the approach will be a comment on how the taxes will affect other parts of the economy. A CGT has been announced by the Labour Party to raise tax funds on asset values through the use of a 15% tax on gains when an asset is sold. As the tax is outlined it will not apply to gains realised on family homes and retirement savings, including sale of small business assets if the purpose is to fund retirement income. Initial work by the NZIER on the CGT as proposed have highlighted that it would fail to meet many standard public policy principles around effectiveness, efficiency, administrative cost and equity. It is not seen as a game changer and would in fact raise very little revenue, reduce current farm values and not benefit the economy. The focus of the resource rentals analysis will be looking at the potential costs and benefits of introducing a resource rental charge, such as a tax on agricultural water usage. It has been highlighted from the initial scoping work that there is minimal policy

relevant data to inform decision makers how much water is being used by the rural sector, so it is uncertain how any policy would be set and if it would actually be enforceable. When it comes to the ETS, Federated Farmers has a strong political focus of keeping biological emissions out of the legislative framework. No other country in the world taxes farm animal emissions and there is no benefits seen from including them in the ETS. New Zealand farmers are global leaders in farm efficiencies and already face an un-level playing field, for example other countries subsidy payments of agricultural products, so it would be unwise to raise further tax barriers to efficient production by changing the current climate policy. The analytical work by NZIER will, where possible, be drawing on current public policy and data to provide Federated Farmers with robust information for its consideration of the three taxes within the farming policy setting framework. No one likes taxes, especially those that are unjustified and provide negative benefits to agriculture and the wider economy.

Kauri existence under threat from dieback disease Rob Mouldey Kauri dieback disease is killing kauri trees throughout Northland, Auckland and the Coromandel. First discovered in the Waitakere Ranges west of Auckland in 2006 and formally identified as a new disease to science in 2008, this disease was soon reported in other areas of both public and private land. This fungus-like disease is soil borne and comes from the same group of species that causes potato blight, which lead to the Irish potato famine in 1845. With no known cure kauri dieback has the potential to wipe out New Zealand kauri if action isn’t taken to stop it. Microscopic spores in the soil infect kauri roots and damage the tissues that carry nutrients within the tree. Infected trees show a range of symptoms including yellowing, loss of leaves, dead branches and lesions that bleed gum at the base of the trunk. Nearly all infected kauri die. In the past 10 years, kauri dieback has killed thousands of kauri in

UNDER THREAT: With no known cure kauri dieback has the potential to wipe out New Zealand kauri if action isn’t taken to stop it.

New Zealand. Scientists are currently working to find control tools for this disease but there is no known treatment at this time. However, it’s not all bad news. With proper measures kauri dieback can be contained where it is and areas of healthy kauri preserved for genera-

tions to come. At this stage, the disease has not been detected in many areas of Northland forests, the Hunua Ranges and Hauraki Gulf Islands (excluding Great Barrier). Many farms with bush remnants throughout Waikato, Auckland and Northland are also still healthy and can act as safe havens for

the future of our kauri. Because kauri dieback spreads through soil movement, anything that can move soil can spread the disease. To prevent this spread we all need to ensure footwear and gear are cleaned before and after visiting kauri forests and stick to the tracks and off kauri roots. On-farm machinery, livestock and feral animals can easily spread kauri dieback within and between kauri forests. To protect your kauri, avoid movement of livestock through kauri forest remnants and ensure machinery is cleaned before and after working in kauri areas. Ideally, such remnants should be fenced-off with good stockproof fencing. Many local councils have funding assistance available for fencing off bush blocks. ■ If you have concerns about kauri health, on public or private land — contact 0800 NZ KAURI or visit www.kauridieback.co.nz for more information.

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National Farming Review August 2014

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COUNTERPOINT

Safer farms a shared commitment Gordon MacDonald WorkSafe New Zealand chief executive New Zealand’s economic health depends on agriculture. Agricultural production and processing generates about 16 per cent of our gross domestic product, providing jobs for a similar proportion of the Kiwi workforce. Agriculture, in turn, depends on the health of its producers to ensure the Kiwi economy continues to prosper. But there’s a serious problem with health and safety down on the farm — and it is a problem going almost unrecognised. In 2013, 20 people were killed working in agriculture, making it our single most dangerous occupation. To put this number in perspective: the rolling average of workplace fatalities is around 75. Agriculture, therefore, represents more than one in four of those deaths. This death toll continues to create a terrible burden for farming families, communities and businesses. I’m sure most Kiwis agree we need to do more to make farms safer places to work. That’s why health and safety regulator WorkSafe New Zealand — the new body I lead — has been directing a lot of its energy into a multi-year, multi-

focused Safer Farms programme. The details will be announced later this year. We have shaped the campaign in conjunction with key sector GORDON players. They MACDONALD include leaderWorkSafe New ship groups like Zealand chief Federated executive Farmers, farm owners, farm workers and influencers such as the stock and station agencies, fertiliser providers, banks and rural community leaders. WorkSafe NZ believes the future success of Safer Farms will depend on a partnership approach. We believe a climate of collaboration can lead to many benefits and opportunities. But the feedback we keep getting from farmers is that they don’t want Wellington breathing down their necks. Fair enough. But I remind you of the death toll in agriculture — just because it’s worked the last 100 times doesn’t mean you won’t get caught out next time.

Farmers are the ones who know best how to run their businesses. We get that. But farmers have to get that their health and safety performance is, frankly, woeful. WorkSafe NZ will stand alongside the sector, supporting and educating but farmers must understand we will enforce when we see non-compliance. Safer Farms will NOT be a series of recitations of the statistics. It will be a lot more about fostering genuine action on the part of those directly involved to make a significant dent in the rural death toll. The agriculture sector has the same obligations as any other workplace to take safety seriously. We urge leading players like Federated Farmers to face up to the problem; own it; work to eliminate it; and act in the interests of every farmer and farm worker. For some, that is going to be a challenge. Worksafe NZ is optimistic that the sector is up for it. This is a sector with a long and proud tradition of grasping the nettle of change. Over more than a century, Kiwi farmers have earned a solid reputation as innovators and drivers of change. Look at the dramatic shift in the way the sector produces, processes,

Kiwi farmers have earned a solid reputation as innovators and drivers of change. markets and transports food products compared to a few decades ago. Farmers now produce the same amount of sheep meat today as they did in the early 1980s — but with around half the number of sheep. WorkSafe NZ is therefore confident we’ll see some of this can-do spirit directed into improving health and safety on the farm. And we are ready and willing to join forces with the sector. We were created in 2013 with the single focus of leading the country to a new, improved, effective health and safety system. We have a mandate to lead the effort to bring down our national workplace death and injury toll by at least 25 per cent by 2020. We believe a fully developed health and safety system on every Kiwi farm will help make that goal a reality.

Ph 0800 327 646 www.fedfarm.org.nz

August 2014 National Farming Review

COUNTERPOINT

Don’t impose rules that won’t work Health and safety is an issue that affects all farmers. A common sense approach is the best way forward, writes Wairarapa provincial president Jamie Falloon It goes without saying Federated Farmers condone farmers doing stupid, dangerous things. But rules which go beyond common sense will be always invite a challenge. I might also need an exemption from prosecution for what I have written! A member I know received a warning letter for carrying passengers on quad bikes. It was clear that a prosecution would result if they continued to carry passengers. WorkSafeNZ visited me and I received a warning about a helmet, but nothing about passengers. I now wear a helmet, but still carry passengers. I was surprised to learn that passengers were banned from quad bikes and that they are deemed a hazard, not the driver; the terrain, the weather conditions, the attachments, the dogs, or the dozen beers and other stuff consumed the night before. I struggle with WorkSafeNZ’s reasoning on passengers and quad bikes being hazards. But if this is the case then the hazard register at home will need updating. This issue led to a remit at the recent national AGM, and it was fully supported

by the provinces unanimously giving Federated Farmers’ board a clear steer. The remit concerned passengers riding on quad bikes on farms and for this to be permissible. The WorkSafeNZ guidelines state, if the manufacturer has a sticker that states no passengers then this is the rule. This means no docking crew, bank manager, family, friends, duck shooters or discussion groups. Its common sense that you ride a quad bike differently when carrying a passenger and pick a safe route, asking the person to get off if coming to a tricky spot. An outright ban on passengers makes my business harder to operate, increases costs and makes it less safe. I carry passengers that I wouldn’t let drive a quad on the farm. A comment was made that I could use an alternative way of getting the docking crew out in October. This misses the point, I would love to go docking in the ute, with stereo, cupholders and a heater. However, getting home might be the end of me so that is not a practical option which only leaves them walking

or passengers on a quad bike. What gets me is that passengers, or for that matter all other attachments to quads can’t be treated like any hazard. Which is why if you can’t eliminate it, then you must isolate it and if this isn’t possible, then minimise. If you don’t do this and there is an accident then you have no protection under the law and I support that approach. A pig-headed approach to safety with statements implying zero tolerance to passengers is not going to achieve a culture change in New Zealand farming. Worse still, it will put back the efforts and gains that are being made. The challenge with culture change is that you are dealing with 20,000 individual businesses of which about 10,000 will be owner operators. Many farmers are moving into their mature years so the method of delivery needs to be done in a respective way that brings about the change. So it prevents the perception that regulations and compliance are being imposed. This is clearly illustrated by the fact that Federated Farmers represents all farmers yet not all are members. This is

ironic when you think about the value that the federation delivers to members. So what’s the solution? Informal enforcement, education and word of mouth are a good start. Paper based compliance and determination to make an example doesn’t work. Outbursts about passengers at a Beef + Lamb field day don’t achieve anything but getting people’s backs up and I won’t mention the fines. Informal enforcement is working with many farmers now wearing helmets and I find that I forget mine is on and consider it as important as the whistle. My message to WorkSafeNZ is to come up with guidelines that work across all of the different farming systems and terrain of NZ. Please don’t impose rules which won’t work as that will just put the acceptance of safety as a culture change backwards and will undo the good work which is being achieved by both WorkSafeNZ and farmers in reducing our injury and accident rates. No death or injury is wanted, especially for the family, farmer, neighbours, emergency services that must attend, and it is our responsibility as farmers to make this happen.

National Farming Review August 2014

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FEDERATION SPOTLIGHT

Understanding leadership and conflict John Donnachie Federated Farmers recently hosted an Advocacy, Influence and Outcomes workshop in Wellington with an array

of interested participants including a federation board member, a provincial president, industry chairs, farmers, and councillors at the two day course.

The main theme involved developing collaborative skills towards issues affecting farming and rural communities, with a particular onus on how to best achieve community

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values for rivers. Three presenters-Gay Pavelka, Michelle Shields and Ian Whitehouse led the twelve participants through seven modules which included written exercises with the opportunity to role play and demonstrate the new found skills they had learned. This invoked some heated discussion and many laughs throughout the two days as former strangers built trust and kinship once it was established they all shared the same trials and aspirations. Managing conflict through negotiating was a common denominator and kept the workshop on their toes as they learned that sometimes the best form of communication is to actually listen to the opposing view, regardless of how polarised they may be. There was also an insightful session on the pitfalls of analysing technical data around water quality and how to identify and question the credibility, whether it was scientific or verifiable. It all made for an entertaining climax to the two days when the groups were split up into four teams taking part in a filmed mock enactment of a council meeting, where they were tasked with presenting their respective organisation’s stance. Having farmers acting as Fish & Game representatives was especially intriguing as it fostered some introspection for the groups involved demonstrating the importance of strategic thinking and advocacy. There were a few weary eyes come the end of the course, but also plenty of smiles and firm handshakes after the video session and analysis wound down. Wairarapa meat and fibre chair, William Beetham, was glad he had done the course. “The content and tools we learned was awesome. It will be incredibly useful for going forward,” he said. Tararua councillor Tracey Collis said she would take away effective methods that would improve her communication skills. “As an elected councillor I want to be the best I can be-and this will help,” she said. Mrs Collis, an organic farmer, said the course was an eye opener on other levels. “I came here with a councillor outlook but in actual fact these tools can be applied to everyday life such as being a wife, a mother, and everything else.” Hawke’s Bay dairy chairperson, Nick Dawson, confided that he missed the farm and was prone to “thinking about his cows” but overall he enjoyed the time off farm saying the role play exercises were the most enjoyable. “I’ve certainly gained more confidence,” he said. ■ If you would like to find out more about the workshop contact Jeremy Blandford, general manager sales and marketing, 04 470 2164 021 438 321 or email jblandford@fedfarm.org.nz.

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TOMORROW’S LEADERS: The Federation’s advocacy, influence and outcomes workshop in Wellington generated plenty of debate over the two days.

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August 2014 National Farming Review

NATIONAL POLICY

The conundrum of Overseer Dr Tessa Mills Most farmers understand budgets and the importance of balancing them. Whether you are managing your cash flow or your soil and plant nutrients, having the best available data upon which to make decisions for future management is a critical component of success. The Overseer model has been developed by New Zealand scientists over the past 25 years to assist farmers and farm advisors to understand nutrient use and movement within the farm system so production is optimised and environmental impacts are minimised. Because Overseer is a model, it provides estimates of nutrient use and movement, not absolute and exact measures. It’s a model driven by production primarily because production is a straightforward parameter for farmers and farm advisors to either predict or to measure. Overseer contributes significant value to New Zealand’s primary sector by adding to the pool of knowledge that farmers and farm advisors have to assist in good decision making. This allows optimised sustainable production systems and minimises environmental impacts. So we know that Overseer provides an estimate of nutrient use and movement. We also know that as Overseer evolves and information improves those estimates of nutrient use and movement also change. The need to continue to refine Overseer and recognise the uncertainty inherent in an evolving model must be accommodated in any application of Overseer output. For example, continued work to better calibrate Overseer outputs under low and high rainfall systems and under complex cropping regimes must be a high priority to improve the estimates of nutrient use and movement by Overseer. Much of the drive to use Overseer outputs within a regulatory framework has been an attempt to address water quality concerns. The assumption has been that if you know what is leaching beyond the grasp of roots then by reducing these nutrient losses water quality will be improved. However, what happens between the bottom of the root zone and the water body of interest is poorly understood. Currently an estimated attenuation value is nominated which has very little refine-

COMPLICATED: Much of the drive to use Overseer outputs within a regulatory framework has been an attempt to address water quality.

ment or recognition of landscape variables, hydrological features or even distance from the base of the root zone to the water body. Attenuation has in the past been assumed to be 50 per cent, that is 50 per cent of the nutrient loss from the base of the root zone does not appear in the water body of interest. Poor understanding of the dynamics of nutrient attenuation is a significant knowledge gap and an area where increased research must be supported. If we can improve our knowledge of attenuation mechanisms, putting in place measures which increase attenuation as well as minimise the level of nutrient loss from the farm system, then significant reductions in nutrient loading to water is likely to result. Other recent initiatives which add to

the robustness and consistency of Overseer outputs include the development of best practice data input standards for Overseer users and the nutrient management advisor certification programme administered by Massey University. If Overseer is to be used within a regulatory framework, regulators must acknowledge that outputs of nutrient use and movement are indeed estimates which have an inherent margin of error and that as Overseer evolves different estimates from Overseer may be produced which don’t reflect an actual change in farm nutrient losses but rather a change in the way those estimates are made and therefore quantified. Ideally, Overseer is applied as part of a suite of tools which represent good

management practice through the estimate of multi-year average nutrient losses which demonstrate a direction of change towards reduced nutrient loss over the long-term. Use of Overseer assists farmers to maximise resource use efficiency and minimise environmental impacts of farming activity. This is what Overseer was designed to do and it does this very well. ■ Footnote: The National Farming Review invited agribusiness consultant Alison Dewes to discuss Overseer. The Headlands’ lead consultant did initially make comments which were subsequently checked and approved by her. However, when asked for further clarification during a second interview the consultant requested that all comments be retracted as she longer wanted her views published.

National Farming Review

August 2014

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FEATURE

Wool industry seeks

Recent videos circulated online by animal rights campaigners depicting abuse to sheep stunned and saddened Federated Farmers. While the images have been rightly condemned, it’s also unfortunate timing as one of New Zealand’s iconic industries contemplates the re-introduction of a wool levy. John Donnachie reports on why sheep farmers should vote and how the levy could counter such attacks. Wool and its products are synonymous with all things New Zealand and globally renowned for quality and finesse. Back in the day when the nation was conceived, wool was our principal export and this period was undoubtedly the industry’s greatest hour. Nowadays, the wool sector is no longer so dominant, accounting for less than 3 per cent of our total exports though that figure can be misleading when one considers the value of wool exports to be $700 million annually. We also remain the world’s secondlargest wool exporter at 20 per cent of total volume, with the average value of our raw wool exports climbing markedly by 38 per cent since 2010. The industry however, like others associated with the primary industries, faces challenges to unite and innovate to remain competitive and to protect itself from unwarranted abuse and conjecture. This was the case, with a recent campaign by the US based PETA: People for the Ethical Treatment of Animals, where explicit videos were sent overseas of shearers apparently abusing sheep while advising retailers not to sell wool products. This has alarmed and angered sheep growers here. In Australia where the footage originated, the RSPCA has joined others in condemning PETA’s filming in shearing sheds and claims of widespread abuse, given they failed to immediately report it to the farmer, the shearing contractor or the proper authorities including the RSPCA.

The Australian Ministry for Agriculture has also questioned why PETA spent two years compiling the footage but at no stage presented their findings to the relevant authorities, leaving no basis for a prosecution. It appears PETA’s goal “is to portray the exceptional as the generality to discredit the whole industry,” said a Ministry spokesman. Federated Farmers views PETA’s actions and their extreme vitriol as vindictive as it demonises the entire wool industry. The Federation’s meat and fibre chairperson, Rick Powdrell, is livid and considers PETA’s campaign as an outrageous attack on a globally renowned Kiwi institution. “You’ve got a group that is trying to say that a natural, renewable and sustainable fibre is akin to animal abuse. We shear because it’s good for animal welfare. If we didn’t our sheep would suffer horribly from heat or fly-strike. “PETA reckon they are all about ethics but they are using soft porn and scantily clad women to promote and sell their agenda. “This is nothing but tacky, unlike New Zealand wool which is a genuine global brand recognised for having standards,” he said. New Zealand Merino expressed their regret at the images but also dismay at the vile sentiment voiced by PETA. This scenario was a “timely reminder” for the wool industry on how swiftly “the

integrated farming solutions Providing a Sustainable Profitable Future

WOOL INDUSTRY SPIN: The PETA campaign is a timely reminder for the wool industry on ‘how swiftly the rate and distance of threats to the industry’s reputation can travel’.

rate and distance of threats to our reputation can travel.” It also illustrated to the sector “the need for validation of best practice and anticipation of what might be coming over the horizon.” The Merino industry had introduced the ZQ accreditation programme to protect growers and brand partners. They had also instigated random thirdparty audits in sheds this season. They strongly believed in having a “market-linked model” where wool growers, stakeholders and brand partners worked together to protect reputations. Unwarranted negative publicity aside, the wool industry is in need of transformation, something to lift its intrinsic value which has been understated and

left to fluctuate in a competitive global market. Even in New Zealand, wool products and its benefits are often overlooked. A major retirement village operator demonstrated this recently when it chose to carpet its homes with nylon rather than wool. And while we remain the world’s second-largest wool exporter, supplying 45 per cent of the planet’s wool, the industry has no industry groups compared to other primary sector groups. There is no industry good body pushing the wool industry’s cause and the sector is not helped by limited market access and promotion options. This needs to be addressed soon — with the Trans-Pacific Partnership evolving, there stands a unique opportunity for wool growers.

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August 2014 National Farming Review

FEATURE

a champion defender Federated Farmers’ supports the philosophy behind regenerating one of our most iconic industries and is championing the wool industry cause by playing a significant role in devising the upcoming wool levy referendum. The Federation’s Sandra Faulkner is the wool levy group chair, and is calling on all 13,000 eligible sheep farmers to vote: “Wool should be our first choice, it is the fibre of the future and this referendum is the industry’s chance to make a difference to its future. “We need a collective voice to educate, innovate and invest in our industry’s future. This way we can also protect our livelihoods from crude and malicious organisations like PETA.” The wool levy referendum takes place on October 10, and asks wool producers to back a new industry good body that will be funded by a levy on each kilogram of wool, at the first point of sale. Waikato meat and fibre chairperson Chris Irons said it is important farmers get informed and vote. The previous levy in 2009 ended, but times were different and the opportunities greater. “This levy is focused on providing an overview and industry investment in research and development, leveraging off

RICK POWDRELL Federated Farmers meat and fibre chairperson

SANDRA FAULKNER Wool levy group chair

government industry funding. It provides a shared vision for the sector, being a point of initial contact for panindustry information, providing a sounding board for governing bodies as well as corporations and institutions.” Mr Irons said it would also assist with trade policy and negotiation: “We will gain market access with reduced

barriers to entry, helping us meet our international obligations to global industry good activity alongside other wool producing nations.” The levy referendum was long overdue and potential levy cost would be less than what was advocated five years ago: “We want to inspire and invigorate the new generations of wool growers

who are not currently engaging or influencing the direction of the wool industry. “With 154,000 tonnes of wool produced in New Zealand each year, we are looking at a potential $4.6 million, based on three cents per kilogram levy.” The market pull and international demand for wool is still evident ,with the likes of Italian fashion heavyweights Dolce & Gabbana placing orders directly with New Zealand wool producers, while our own top-end designers chose the product over synthetics. Federated Farmers meat and fibre policy advisor, Sarah Crofoot, said it was time for the industry to show some backbone, and the levy referendum was a perfect forum. Miss Crofoot said the wool industry had been hamstrung since it elected to drop the levy in 2009. As a consequence, the industry lost vital research and funding, with the Government withdrawing millions of dollars of support. She said: “If you don’t support yourself why would you expect anyone else to invest in you? ■ Continued on page 12

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National Farming Review

August 2014

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FEATURE

Levy vote key to wool’s future ■ Continued from page 11 “It’s like investing in repairs, maintenance or insurance. You don’t necessarily get higher returns for that outlay but, in five years’ time you might wish you had made the investment, as the industry could be worse off.” This was not a commercial initiative, it was about funding an industry body which could look after the interests of farmers by pooling resources together— something individual farmers are unlikely to achieve. Miss Crofoot also sees merit in getting an ever growing urban population, largely detached from farming, back on board with education initiatives. “We really need to revisit the attributes of wool. There is a generation out there who have no understanding and have never been exposed to sheep and where wool comes from. This might come as a surprise to farmers but there

UNDER PRESSURE: The wool industry faces challenges to unite and innovate to remain competitive globally.

are actually people who believe you have to kill sheep to get the wool!” The New Zealand Shearing Association is backing the levy referendum. President Jamie McConachie said “From our point of view it is a positive thing. Lots of farmers are mindful

about the costs and what it is about but, quite frankly, this is fantastic.” The referendum and the opportunity to establish an industry good body “couldn’t come quick enough”. Sheep farmers were by nature positive and dynamic and it promises to be a healthy turnout to vote. It was the time for sheep farmers to seize back control of their industry, so “sitting back and not voting” was not the smart option, said Mr McConachie. Wairarapa-based Golden Shears gives the referendum and the prospect of a levy the thumbs-up. A spokesman revealed that members had not been canvassed but he said “It should go ahead and most farmers will fully support it.” Federated Farmers’ Marlborough president, Greg Harris, said a wool levy would potentially secure the industry’s future. “Our industry should be managed

efficiently by an over-arching body to ensure the collective good for wool. It takes good custodianship and stockmanship along with supporting science and technological advancements to remain efficient and competitive wool producers. “We must have a strong mandate from wool-growing producers, along with a vision and constitution that embodies transparency and accountability, to prevent the antagonisms that have plagued the industry. “Our industry is in a different place today, what we need is activities based around communication, education and innovation, and this levy is about providing that,” he said. Mrs Faulkner said: “Voting is the expression of commitment to ourselves and our industry, no matter which box you tick, farmers need to ensure they are informed this October, and use their right to vote.”

PROFILE

Veteran farmer snapped at national conference John Donnachie “It’s probably my swansong but it’s been all good, I’ve been to a bloody few I can tell you,” said South Canterbury farmer, Tom Henderson. The Pleasant Point man has been coming to Federated Farmers’ national conferences for 54 years and still enjoys the candour and camaraderie it holds. When he first attended in 1960, New Zealand had its first television broadcast and Keith Holyoake was about to become Prime Minister. Some rural folks might recall Barry Crump’s iconic “A good keen man” published that year. At last month’s Palmerston North gathering, Mr Henderson had his picture taken. In all those years he has been coming he reckons it was the first time ever. An agile figure at seventy four years of age, he spoke candidly reminiscing about his long association with the federation. He said “I never had aspirations to become a leader or national president but I got lots of satisfaction from helping with the water plans and environment.” Starting out as a delegate for young farmers in his community, the former grains, seeds and sheep farmer became a

Palmy not so balmy Overcast skies and a biting cold southerly greeted around 250 people at this year’s national conference in Palmerston North. The meat and fibre and dairy industries opened the event with their AGMs. The next day the political shakers and movers, including PM John Key, joined the conference presenting their wares prior to election time. The week closed with the Federation’s induction of Dr William Rolleston as national president. New chief executive Graham Smith meanwhile was formally introduced to members.

CONFERENCE VETERAN: Tom Henderson finally gets snapped at a national conference after 54 years of attending.

strong advocate promoting the importance of irrigation and water storage in South Canterbury. When discussing his province he was particularly animated. His voice increased with pride when talking of the Ophua water scheme, an award winning initiative he pioneered “It’s a real beaut,”

he said. “Our dam is the benchmark for the rest of the country and our future — if we want a good future. I remember David Lange talking about farming being a sunset industry, but we have to realise we have these opportunities and make it happen. With all the abundant water we have and vegetables we can grow this

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can keep New Zealand moving forward.” There was no doubt reliable water storage was the “real key” to the nation’s future prosperity and it’s certainly not “rocket science”. Talking science, it’s more prevalent now compared to previous conferences and is readily accepted by farmers old and new. “The Government, Federated Farmers and scientists are looking deeper for answers and solutions to find suitable strategies. Farmers understand this and are definitely more environmentally responsible,” he said. Since retiring, Mr Henderson stays active, growing kale seeds which are sold direct to farmers. He also does his bit for the local economy taking tourists out water skiing on Lake Ophua while making time to talk about the dam venture and its benefits. Above all, he enjoys settling down with a glass of Pinot Noir to watch his beloved Canterbury Crusaders. “I’m a genuine oneeyed Cantabarian you know; seriously I’m the real deal. When I was a wee fella I lost one of my eyes and I have been that way ever since,” he smiled. Tom Henderson is an Officer of The New Zealand Order of Merit (O.N.Z.M) 2010.

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August 2014 National Farming Review

REGIONAL POLICY

Horizons and Otago Councils act on NPS Kim Reilly & Dr Tessa Mills Across New Zealand, regional councils are in the process of giving effect to, and implementing the National Policy Statement on Freshwater Management 2011 (NPS). Horizons and Otago Regional Council were two of the first councils off the blocks, with both now having operative plans in place following substantial appeal processes. For Federated Farmers staff and members in these provinces, the hard work has now turned from consulting, submitting, presenting evidence and mediating to actively implementing these plans. The Horizons One Plan, notified before the NPS, was seen by many as representing the new generation of regional plans and policy statements. Now operational, it regulates control of normal farming practices through the application of nutrient loss limits and requires a consent to farm for intensive farming operations, which includes dairying and cropping. Throughout the process of hearings, mediation, Environment Court and eventually the High Court, the plan travelled full circle at least twice. Finally, following the High Court decision, and after extensive consulta-

BIG PLANTING PROGRAMME: Horizons environmental management officer Clare Ridler plants a native shrub at Pauri Lake, near Wanganui.

tion between the council, primary industries and the wider community, an implementation plan was developed. This requires farmers to transition to good management practice via consent conditions tailored to suit individual farms and circumstances. Horizons plan implementation has been slow to start, with just nine out of more than 400 consents so far lodged with the council. Significant consultant resources are needed to ensure that any consent granted will provide both economic viability and sound nutrient management.

Although the journey has been fraught at times, it has provided some valuable lessons for other regions. Perhaps of most value was the regulator’s recognition that not only do the majority of farmers do a good job, but that a sound collaborative approach empowering farmers and landowners to improve practices is preferable to clumsy regulation, which is impractical to enact and difficult to administer. Down south in Otago, the response to the NPS was achieved through Plan Change 6A, which aims to protect good water quality while minimising constraints on land uses and the way rural people manage their land. Under the Otago approach, most farmers will be able to continue farming without consent or the need for a farm environment plan. It is a fairly pragmatic effects-based framework that aims to encourage farmer stewardship and promote innovation and adaptive management. The permitted activity framework requires that by 2020, farmers are within the limits set for their zone — (30kgN/ha/yr for most, 20kgN/ha/yr for sensitive zones, 15kgN/ha/yr in the lakes area). As part of mediation settlement, the council has until 2020 to scientifically review the appropriateness of the

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20kgN/ha/ya sensitive zone limits. Despite the 2020 timeframe, there are things Otago farmers need to be doing now to ensure they are on target to meet these limits. Federated Farmers will continue to work alongside the council and other stakeholders to ensure farmers have access to the information they need to assist them in meeting these expectations, now and throughout the implementation process. Alongside our role in the Stakeholder Reference Group, we continue to actively work with the council and other industry representatives to ensure factsheets make sense, individual farmer issues and concerns are addressed and results from monitor farms and trials are well circulated. We also await with interest the council’s review of the appropriateness of the use of Overseer within the high rainfall lakes zone. There is no shortage of work coming out of the implementation processes in both Horizons and Otago, enough to keep our staff, members and other industry professionals busy well into the future. However, it’s in the best interests of us all to see that these plans succeed, in ensuring both that water quality is protected and processes are workable for farmers.

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August 2014

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REGIONAL POLICY

Tukituki decision faces two appeals Rhea Dasent Senior policy advisor The Tukituki decision is not quite done and dusted yet. While the Board of Inquiry has released its final decision, two appeals have been made to the High Court and there could be more changes as a consequence. What we do know is that while the draft decision sent shockwaves through the community, the final decision has left the waters in a calmer state as a number of changes had been made to ensure rules were functional for both the regional council and for farmers. The biggest change was to the link between land use and the in-stream Dissolved Inorganic Nitrogen (DIN) limit of 0.8 milligrams per litre. Farms will no longer be seen as breaching the rules if the DIN measured in the river is over the limit, so long as the land use capability on-farm limits are adhered to.

RIVER ROW: Appeals mean the battle over Tukituki River is not over.

Previously all farms in a subcatchment would need resource consent if the DIN limit was exceeded, even when those farms were meeting the LUC leaching rates. With the low limit of 0.8mg/l selected, this meant that some sub-catchments would already be over. Some submitters were seeking an even lower DIN limit of 0.444 mg/l, but the Board found that this number comes

from averaging a wide selection of New Zealand rivers and that there was not enough scientific backup for this low limit. It could have been worse. The change from a grandparenting of existing N leaching on farms to N limit by land use capability started out as a shock, however the final decision has made this much more practical to farm to. Instead of being stuck with a particular leaching limit for any one paddock depending on its LUC, farmers can now add up the N limit for their entire farm and use it anywhere within that property. For farms that are made up of several properties within the Tukituki catchment, you can even aggregate the N limits between properties. Farms must get down to their N limits by 2020, which gives us a few years up the spout to work with. If you can’t meet the limits by then, you can apply for resource consent. The Board decided that LUC was the

best option because it is well established and takes into account the particular characteristics of land like soil types and slope. They considered that it had logic to it as it was based on the natural capital of the land. Appeals to the High Court are limited to points of law only, which narrows the scope of issues that can be appealed. The two appeals that were lodged come from Fish and Game and Forest and Bird. They are both seeking to reinstate the link between the in-stream DIN limit and farms because they believe that this is an error of law in that the National Policy Statement is not being adhered to. Farmers can rest assured that Federated Farmers are still committed to ensuring that rules are implemented in a practical and equitable manner, and we will be working closely with the regional council to ensure that this will happen. There are more ways than one to skin a cat.

WEATHER

A wet July, but a warmer outlook for August By Georgina Griffiths MetService meteorologist If there were a meteorological equivalent of the ‘seven summits’, New Zealand would certainly be on the list. As any farmer knows, we get a lot of weather. This is for two reasons: firstly, we’re located in the middle of the roaring forties and weather systems can come in from the southern ocean or the subtropics; and second, because New Zealand is a land of hills and mountains. Wind flows are the critical factor on whether the weather comes into your place, or not, because of the effect of these hills. This is why forecasters focus on circulation (wind flows) when they look longer-range (on a monthly or seasonal time frame). Circulation is a handy tool to help identify New Zealand temperatures longer-term. It is not quite as straight forward as ‘northerlies are warmer, southerlies are cooler’ — but there is an element of truth in that! Wind flows also guide rainfall forecasts for many regions of New Zealand. Just ask a farmer on the Canterbury Plains what the weather will be like at their place in a strong northwesterly, and they’ll respond “warm and dry”. Rather the reverse answer to the bloke in Hokitika. Even the El Nino/La Nina

response here is driven to a large degree by wind flow versus our mountains. So let us focus on circulation here. It serves as a useful way to describe winter 2014 (so far), and we’ll use it to estimate the coming conditions. June and early July saw a large number of extreme events for those regions exposed to the north. The atmosphere was stuck in what forecasters call a “blocked” regime. Highs were often slow-moving east of the country, with lower pressures over the Tasman Sea. This meant persistent northerly winds and a relatively warm start to winter. The lows and fronts that were trying to move in from the Tasman Sea couldn’t progress very far, with the blocking high fending off the incoming rain band. These stalled rain bands proved to be a real problem, with relatively warm, moist air fed down from the subtropics, producing heavy rain and extremely large rainfall accumulations. The week of extreme rain and severe northeast gales in Northland in July is a good example of what blocking can do. Already saturated soils copped nearly 500mm of rain in the worst-affected areas. This is a total more often seen on the West Coast, rather than in Northland.

Looking ahead

RADAR VIEW: This is the 24 hour gaugecorrected radar view from July 9. The pink and red shading indicates the highest rain accumulations, showing more than 125mm in 24 hours. The largest totals are seen around the Bay of Islands, as well as inland to Kaikohe and surrounding hills.

More details about the Northland floods can be found on the Metservice website. The second half of July saw a shift to prolonged, cold southwesterlies. Temperatures dropped markedly across New Zealand, with several snowfall events. The North Island’s east coast bore the brunt, with a battering from showers/ sleet/snow (depending on the location).

As we start August, northwesterlies return over the country, bringing stormy conditions over southern New Zealand. Above normal rainfall is forecast for the West Coast and Southland. Relatively warm conditions are signalled for the South Island, especially eastern areas. The second week of August shows highs sitting over the Tasman. Drier conditions are indicated for northern parts of both Islands; possibly wetter for Southland. For the second half of August, more typical westerly winds are expected, with ‘near average’ climate (for the time of year) looking the most likely outcome. Of course, this doesn’t rule out extreme weather events — it’s often an unsettled month — so it will pay to keep up to date with the latest forecasts and warnings at www.metservice.com. Looking further ahead, there remains a solid chance (70 per cent) of El Nino development during spring. The global oceans are already primed (with the El Nino signal of warmer than normal waters in the equatorial Pacific Ocean already present). However, the atmosphere has yet to respond. The latest climate models suggest that if El Nino does develop, it is increasingly unlikely to be a strong event.

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Un-mysterious but lots of multi

By Damien O’Carroll, motoring writer.

here is a distinct lack of mystery surrounding the new Isuzu MU-X and it is not _ as the unkind may say _ because we have seen it all before with the extremely similar Holden Colorado 7. No, that is not the reason at all, simply because _ overall body shape apart _ the two are quite different. The reason for the lack of mystery harks back to a funny little semiconvertible three-door Japanese import SUV that was the original Isuzu MU. Back then, “MU” stood for “Mysterious Utility”, but when it comes to the new D-Max-based seven-seat MU-X, this is apparently no longer the case. Now, according to representatives from the company’s Thailand manufacturing plant, “MU” stands for “Multi Utility”. The X? Well, that stands for “eXtreme”, of course. So mystery has been quietly dropped in favour of multi, with a bit of extreme thrown in for good measure. We kinda like the idea of driving a “Mysterious Utility - eXtreme”, but never mind. The non-mysterious MU-X is Isuzu’s version of the last project it worked on with General Motors before their ﬁnancial crisis-prompted divorce. We have already seen the GM part of the equation in the form of the Holden Colorado 7. Like the Colorado 7, the MU-X is based on a shortened version of the similarly related Colorado/D-Max ute platform and has independent rear suspension, as opposed to the ute’s leaf sprung rear. But here the similarities end (apart from some interior bits and pieces), because the MU-X has a completely different powertrain, as does the D-Max ute. Under the MU-X’s big, blunt bonnet is Isuzu’s 130kW/380Nm 3-litre inline

4-cylinder turbo diesel engine that was developed for its light trucks. It is hooked up to a five-speed automatic transmission that drives either the rear or all four wheels via an electronically selectable four-wheel drive system. On paper, the Isuzu may seem lacking in comparison with the Holden’s brawnier figures of 147kW/500Nm from its 2.8-litre engine, which is hooked up to a 6-speed auto transmission. But although the Holden is brisker off the line the Isuzu makes up for this by having a far superior suspension set up. On the road it is far more settled and comfortable than the Holden, making it far more of a torquey, relaxed cruiser than a corner carver _ but it is a large traditional ladder-chassis-based SUV, so expecting it to attack corners with the eagerness of a sports car is really like expecting a fish to play badminton with a high degree of skill. What it is capable of, however, is surprisingly competent high-speed cruising in a remarkably relaxed and comfortable fashion. Befitting this relaxed, comfortable on-road attitude is the MU-X’s high level of standard specification. Isuzu is bring the MU-X to New Zealand as a single, top-spec model selling for $65,990. For that you get seven seats (or five and a huge boot when the rear row is folded down) and a whole load of standard spec, including 17-inch alloy wheels, chrome power mirrors, aluminium side steps, rear privacy glass, roof rails, an electrically adjustable driver’s seat, leather seats, climate control air conditioning, cruise control, satellite navigation, a CD/DVD entertainment system with a drop-down 10-inch rear screen, iPod integration, Bluetooth phone connectivity and audio streaming, a reversing camera and extra power outlets in the glovebox and rear cargo area.

The MU-X’s 3-litre diesel engine is not the most powerful, but it is extremely flexible and relatively refined for a big diesel, especially one designed originally for a truck. In the MU-X the engine has a different head and timing to that of the D-Max ute, but the fivespeed transmission is the same. When it comes down to it, the MU-X is very much in the vein of an oldschool 4X4, with a tough ladder chassis and a big towing capacity, and Isuzu is pinning its hopes for the model on these features, as well as its high spec and large capacity for people and cargo. The MU-X can pull 3000kg on a braked trailer, so the boat or caravanowning market will be interested straight away. The off-road crowd will no doubt pay attention as well, because the MU-X has the same impressive ability off the sealed stuff that the D-Max and the Colorado cousins have. With huge axle articulation and impressive approach and departure angles of 30.1 and 25.1 degrees

respectively, the MU-X packs all the standard off-road speciﬁcation, including the ability to switch between 2WD and 4WD high at speeds of up to 100km/h (low-range 4WD still needs the vehicle to be stationary). It also has underbody protection front and rear, and 230mm of minimum ground clearance. Because the MU-X goes well on the road, goes a long way off it, tows a lot, has loads of standard spec and is spacious and comfortable, Isuzu has aimed it directly at the lifestyle market in New Zealand, hoping those who like the outdoors and live active lives will be attracted to its many charms.

And there would seem to be no real reason they wouldn’t. The MU-X may lack power when compared to its obvious Holden competitor, but the superior ride, high level of spec and undeniably better looks put the Isuzu ahead in that race. Isuzu is growing at a remarkable rate in New Zealand _ the company had 173 per cent growth last year and is 60 per cent up on that this year _ and the MU-X should help that growth, even if it accounts for a far smaller percentage of those sales than the D-Max ute. There may be nothing particularly mysterious about the MU-X, but there certainly is a lot that is appealing.

National Farming Review

August 2014

www.fedfarm.org.nz Ph 0800 327 646

REGIONAL POLICY

Higher rates or rougher rural roads? David Cooper The New Zealand Transport Agency (NZTA) confirmed a new framework for funding our local roads, all but concluding a review of significance to rural ratepayers and road users. The funding assistance rates (FAR) system is the way money available for investment in local roads is allocated. By extension it impacts on the annual rates bill, and it is a particular issue for rural councils with large roading networks and relatively small populations. While the new FAR framework is easier to understand and implement, for many councils it will mean significantly reduced funding. This in turn means some councils and communities will need to make a decision between higher rates or poorer roading quality. One welcome conclusion is that the overall level of the FAR will increase, with the proportion of overall local roading costs shouldered by central government’s road use revenue increasing from 50 percent to 53 percent overall. Federated Farmers believes national road use revenue represents a better way of funding roading costs than local government rates, and we sought a more

ROAD FUNDING: Federated Farmers believes national road use revenue represents a better way of funding roading costs than local government rates.

considerable increase in the overall rate. But it is at least something. The news is not so flash when it comes to emergency works funding. A greater proportion of

cost risk from adverse events like flooding will sit with our local councils and ratepayers. The NZTA were concerned the existing framework left some

councils too reliant on NZTA funding, rather than making good investment decisions aimed at reducing the risk to local roading networks from adverse events. There remains an emergency works funding provision within the new framework, but it is less generous. With extreme weather events forecast to occur more frequently, this will be of concern for lesser resourced councils, meaning farmers may be looking at increased disruptions to vital roading services, as well as higher rates bills. This compounds the issues for lesser resourced councils already reacting to changing demand factors, including heavier and more frequent traffic movements requiring stronger bridges and roads. The NZTA is yet to answer the critical question of which councils should receive a rate that exceeds the average. Overall submitters to the review, including Federated Farmers, considered the size of the roading network relative to population was a key concern to consider. The change to the new framework will occur over a nine year period, beginning in 2015. It is clear the new framework will mean challenging times are ahead for rural councils and road users.

EMPLOYMENT

Exploring the Parental Leave and Employment Act Verity Kemp With the election less than two months away, campaigning is in full swing and paid parental leave has become one of the hot topics in political conversation. Both employers and employees may be wondering — what are my rights when it comes to parental leave? The Parental Leave and Employment Protection Act 1987 (PLEPA) is the Act which governs an employee’s eligibility for parental leave. ‘Parental leave’ refers to maternity leave, paternity leave and adoption leave, and is the amount of leave from work an employer is required to give an eligible employee (if the appropriate process has been followed). The PLEPA provides for eligible employees to be paid parental leave for up to 14 weeks. The government (through the Inland Revenue Department) makes the payments, not the employer. In some circumstances, female employees can transfer their paid parental

leave entitlement to an eligible spouse/ partner. Under the PLEPA there is a presumption that the employee’s position will be kept open for the whole period of parental leave, unless the employer can prove that a temporary replacement is not reasonably practicable due to the employee holding a “key position” or due to a redundancy situation. As such, unless one of these exceptions applies, the employer is best advised to employ a temporary replacement employee on a fixed-term agreement for the duration of the parental leave. That way, the duties of the position will be tended to while the new parent is away, and he or she can easily return to work once the leave is over. The Federated Farmers’ Individual Employment Agreement provides that where an employee is not receiving wages or a salary, but remains in the service tenancy accommodation pro-

vided, he or she will be required to pay rent at the agreed rate. This includes where an employee is on parental leave. An employer can make any employee who is on parental leave redundant if a redundancy situation arises after the employer gave the employee notice that his or her position could be kept open. However, the employer faces a very high hurdle to justify the redundancy. The employer must be able to prove that there was “no prospect” of being able to appoint the employee to a similar vacant position. This has been said to impose a “high standard” for an employer to meet. The employer must also follow a fair procedure, including consulting with the employee. As with any redundancy (or other action by an employer), the test is whether the employer acted as a “fair and reasonable employer”, measured on an objective basis, but to the very high standard noted above. While it is possible to restructure

while an employee is on parental leave, extreme caution is required. Merely concluding that the position is not needed while an employee is on leave is unlikely to be enough to provide justification for the redundancy. In addition to this, employers have heightened obligations under the PLEPA. Once an employee is told their position will be held open for their parental leave period, any redundancy can only be based on a new event or circumstances. This should serve as a reminder to employers to be cautious when restructuring, and doubly cautious when restructuring someone on parental leave. ■ If you have questions about an employee’s parental leave entitlements, or what to do when an employee takes parental leave, call 0800 FARMING for free, advice. Alternatively, the Ministry of Business, Innovation and Employment has information about parental leave on their website: www.dol.govt.nz/er/ holidaysandleave/parentalleave/

Ph 0800 327 646 www.fedfarm.org.nz

August 2014 National Farming Review

ECONOMY

Chinese slowdown hits NZ dairy prices Anne Boniface Westpac economist Falling dairy prices have grabbed the headlines in recent weeks. Prices in fortnightly global dairy trade auctions have tumbled 35 per cent since reaching stratospheric heights in February. Importantly, we think the most recent round of falls in dairy prices are quite different to the declines we saw in March and April. Back then, falling dairy prices came as no real surprise. We’d long been warning that a whitewash of milk from key dairy exporters was going to put downward pressure on international dairy prices. While a lift in global supply continues to weigh on markets, this latest step down in prices was unanticipated. We think waning Chinese demand is now the prime reason for falling dairy prices. On the back of a slowdown in the Chinese economy late last year and in the early part of this year, Chinese consumer demand has started looking a bit wobbly. Although it can be tricky to get accurate data on the mood of Chinese consumers, a new consumer confidence survey commissioned by Westpac does go some way to filling the gap. In June, this survey showed a sharp deterioration in confidence, probably not helped by ongoing weakness in the housing market. And with Chinese wholesalers having appar-

The recent decline in dairy prices was unexpected and serves as a warning to the industry that is dependent on the Chinese consumer.

ently built up more than sufficient stocks of dairy products early in the year, price action has been exacerbated by a classic inventory cycle. The good news is that recently Chinese authorities have once again loosened the reins — and the latest Chinese GDP data suggested the economy has started to respond. Eventually, this pickup, combined with dwindling inventories and a seasonal lift in demand should spill over to improved prospects dairy prices.

REMINGTON MODEL 700™ AND MODEL SEVEN™ RIFLES WITH X-MARK PRO® (XMP®) TRIGGERS Manufactured between 1 May 2006 and 9 April 2014 Identification: Model 700 and Model Seven rifles with XMP triggers are being recalled. To see if your rifle is subject to this recall please refer to the Rifle Identification Guide or go to xmprecall.remington.com.

Safety Issue:

Remington has determined that some Model 700 and Model Seven riﬂes with XMP triggers could unintentionally discharge. Remington is undertaking a recall in the interests of consumer safety.

Hazard:

Any unintentional discharge has the potential to cause injury or death.

What to do:

STOP USING YOUR RIFLE. DO NOT attempt to diagnose or repair recalled rifles. Remington will replace XMP triggers in affected rifles free of charge. If you have an affected rifle, contact Outdoor Brands Ltd at the email address below to register for further information.

Contact details: For more information. email – remington@outdoorbrands.co.nz Online – xmprecall.remington.com New Zealand Importer/Distributor Outdoor Brands Limited

See www.consumeraffairs.govt.nz for other New Zealand consumer product recalls

We’re expecting prices start to recover in the final quarter of this year. Yet even with this anticipated pickup in prices later this year, the extent of recent falls, in conjunction with the persistently high NZ dollar has seen us substantially revise down our milk price payout forecast for the current season to $6 — a far cry from last season’s $8.40. Farmers facing a big drop in revenues aren’t the only ones frustrated by the persistent strength of the

New Zealand dollar in face of falling export commodity prices. The current level of the exchange rate has also drawn the ire of the Reserve Bank. In its July OCR Review, the Bank sent a shot across the bows of foreign exchange markets by noting that the failure of the NZD to adjust to weakening commodity prices made the level of the NZ dollar “unjustified and unsustainable and there is potential for a significant fall.” language deliberately chosen to highlight the possibility of the RBNZ intervening in foreign exchange markets by selling NZ dollars. Such a strategy may be more opportune, now that the Reserve Bank has explicitly signalled a pause in its OCR tightening cycle. After raising rates at every opportunity since March, lifting the OCR to 3.5 per cent, the Bank has indicated it will now take time to assess the impact of these rate hikes on the economy. But a word of warning — this pause doesn’t mean further rate hikes are off the table. The economy is still growing faster than its non-inflationary “speed limit” and the construction boom is clearly putting pressure on resources which will in turn generate inflation pressure. We expect by January the Reserve Bank will be back in tightening mode, and continue raising rates at a more gradual pace next year.

National Farming Review

August 2014

INDUSTRY GROUPS

www.fedfarm.org.nz Ph 0800 327 646

DAIRY

New faces, same old issues Ann Thompson

Farmers will promote this as being good practice. It also means that all employees will see what their salary or wage is and the cost of living on the farm.

New Executive

Theileria

It’s all change at Federated Farmers dairy. The AGM this year marked the end of Willy Leferink’s chairmanship and the beginning of Andrew Hoggard’s reign, together with two new members on the executive team, Allan Baird and Wayne Langford. They join Kevin Robinson, Chris Lewis and Neil Filer.

Longevity in the dairy industry At the AGM we marked the centenary of the Tatua Co-operative Dairy Company by inviting the CEO, Paul McGilvary, to speak on why his co-op has lasted so long (and strong). It came as no surprise to the council that it could be summed up as: knowing what the customer wants, being nimble and honouring the cooperative spirit. Knowing what the customer wants and being nimble is all part of the business plan of any of the successful dairy processors in New Zealand. While politicians go around saying that we rely too heavily on China, providing them with basic milk powder, the opposite is true. Turning milk into valuable, smart products which the customer can use in specific areas of their own market is the New Zealand dairy industry’s strength and it also adds to New Zealand’s prosperity.

Pay the right wage

Dairy farmers have been in the hot seat when it comes to employing people. The Ministry of Business, Innovation and Employment (MBIE) has been looking at on-farm practice and Federated Farmers is backing them in making sure that farm workers are paid at least the minimum wage. General Manager George Mason from MBIE’s inspectorate spoke to the council on this issue. It is well known that work on a dairy farm is hard work, but it mustn’t be at slave labour rates or hours. Time sheets and record keeping help the employer keep track of what’s really going on, on farm, and Federated

Farmers is longing for the smart app that will make logging all this information easy. One of the difficulties with dairy farmers is that it is hard to shift some from traditional employment practices. While ‘throwing in’ the house on farm, together with the milk, meat, firewood and veges has been the traditional way of making sure the farm worker was housed, fed and warm, with the salary or wage reflecting these costs, society is asking for more transparency. MBIE is asking that workers’ pay packets include all these extras that they be paid for the hours worked with clear deductions made for rent and these other items. As part of the bigger picture facing dairy farmers, Federated

The council, together with Federated Farmers Meat & Fibre industry group, were brought up to date on Theileria, which is the blood borne parasite carried by the common cattle tick. All cattle farmers, dairy or beef, are at risk of this affecting their stock. Especially if their land supports ticks, or if their stock have been sent to tick prone areas for grazing or if new stock is arriving from areas where the disease has been isolated. The major factors affecting the severity of the infection seems to be around times of stress, like calving and transporting. Good stock management, managing stress and pasture rotation is important. Ticks like long grass, so keeping young animals off these areas is important. Signs of the illness are basically the signs of anaemia: tiredness, with cows lagging behind and pale mucous membranes. Other signs can be decreased milk production, cows not responding to usual treatments and sudden death, especially around late lactation and calving. Theileria affects only cattle and is not a food safety or human health risk. More information on the disease and management of the animals can be obtained from the vet or from various websites like DairyNZ and Beef + Lamb.

Who the bloody hell am I anyway? Andrew Hoggard

SAFETY IN NUMBERS: New national dairy chairperson, Andrew Hoggard, believes public support safeguards the primary sector from crazy regulations.

Outside the Manawatu, many of you probably don’t know much about me. Well, I’m a 3.5 generation dairy farmer. My great-grandfather was a lawyer who bought a farm and he was a far better lawyer than a farmer. I started my farming career back in 1997 with 150 cows, and now I’m an equity owner in a 560-cow operation north of Feilding. I’ve been active in the Federation since 2005, on the National Executive of Federated Farmers Dairy since 2008 and in June this year I was elected national

chairperson of Federated Farmers dairy. A few things you need to know about me: I realise that I’m not going to please 100 per cent of farmers 100 per cent of the time because, quite frankly, if you put two farmers in a room, you will get an argument, be it Friesian vs Jersey, John Deere vs Case, or Canterbury (Manawatu B) vs Waikato (Manawatu C). Therefore I’m not going to try, because if I do I will get nothing done. My focus is on ensuring the outcome benefits the overwhelming majority of farmers and hopefully, from issue to

issue, you will be in the majority more often than not. The big issue I see for us going forward is getting the public onside, as the Fish and Game survey showed us that twothirds of the country doesn’t blame us for everything. We will need to be reasoned in our approach, keeping them onside and building more support. It’s only when you don’t have that public support that policy makers start thinking they can get away with daft regulations. I don’t want to fight daft regulations; I want to make sure they don’t get drafted in the first place.

Ph 0800 327 646 www.fedfarm.org.nz

BEEF + LAMB, DAIRY

August 2014 National Farming Review

INDUSTRY GROUPS

Californians taste our beef Sarah Crofoot I relish any opportunity to put my ‘farmer hat’ on, especially if I get to talk about New Zealand farming systems or meat. In June, I was privileged to be selected as one of six supplying shareholders of Firstlight Wagyu, to go on a farmer’s trip to visit our Northern California market, including stores in the heart of Silicon Valley, downtown San Francisco and the beautiful wine country. Along with three of the fantastic Firstlight team, we spread the word about the product we all produce: Firstlight Wagyu Beef. It’s 100 per cent grass fed, with no antibiotics or hormones whatsoever. The marbling from Wagyu genetics delivers the consistent tenderness and eating experience that consumers expect from grain-fed beef, but in a grass fed product, along with the flavour and health benefits that come from it being grass fed. As a farmer, the opportunity to spend time talking with not only the consumers of our product, but also the butchers, meat case managers and store owners was fantastic. Not only were we able to answer their questions about the product and farming in New Zealand, but we were also able to enhance our own understanding of the market and the trends that are occurring. It gave us an insight into what our competitors are doing, along with a firsthand appreciation of why it is so important for us to meet our specs, and deliver a consistent product on time. All of these are messages we can share with our staff, boards and fellow Wagyu producer group members to ensure the continued success of the programme.

BEEF TREAT: Feds’ Sarah Crofoot cooking the best of NZ beef during a trip to San Franciso earlier in the winter.

Taking farming shareholders to the market is an important part of Firstlight’s integrated market approach and assists with getting ‘buy in’ from suppliers and bringing them along on the journey. It also helps to lift brand awareness, create excitement around the product and maintain the all-important relationships with the store owners, meat case managers, butchers and consumers, to ensure our product remains on the shelf and selling, and that we can balance carcasses.

It was interesting to observe the variation in traits valued by consumers, even just between suburbs. In some stores, grass fed was a ‘must have’ and 75 per cent of the meat case was grass fed, while in others we were the only grass fed product. For some consumers a ‘never ever’ hormone and antibiotics programme is a clincher, but for some ‘natural’ is good enough. It reinforces the importance of consumer education and the difficulty of tailoring it to each of our markets and the regions within them

around the world. The continued strong growth of the organic movement also struck me. After talking to a number of consumers, I began to question whether organics is really the bottom line or if it is a proxy for food safety and ethically, sustainably produced food. My conversations would lead me to believe that NZ farming systems can deliver most of the characteristics consumers are interested in, without being certified organic. However, significant work is required to articulate the story of our farming systems in order to deliver that message. The local food movement continues to grow and is a challenge to overcome for NZ producers. However, for many consumers, quality still comes first and if they can’t source it locally, often the next place they look to is NZ. I always knew that NZ’s two big export earners, tourism and agriculture, were intrinsically linked but this trip highlighted it. On the domestic front, agriculture provides the manicured hills and flats which contribute to the scenic backdrop enjoyed by tourists. On the international stage, consumers often buy NZ products as a reminder of their fantastic trip here. Or for those who are envious of friends’ trips, it is their way of getting a taste of NZ until they can visit themselves. The power of these links for selling our products can’t be under-estimated. There were many positives from the trip — you can’t beat that warm fuzzy feeling you get when you see the look of amazement and satisfaction on the consumer’s face as they try your product for the first time and realise just how delicious, flavourful and tender it is. It makes all the hard yards in raising the product pay off to know that you are producing a product that is valued and enjoyed by the end user.

Control of raw milk sales safer than black market Ann Thompson Recently the Ministry for Primary Industries (MPI) put out a discussion paper on the sale of raw milk to consumers. Federated Farmers submitted that the only way to deal with it was to put

conditions around the sale, as banning it will drive sales underground. In our opinion, banning it carries more health risks than allowing it because of high demand from consumers who think that the benefits of drinking it far outweigh any dangers of drinking it.

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Our feeling is that we have to save these consumers from themselves by making sure that raw milk is as safe to drink as possible, and the only way to do this was to bring it out into the open and regulate for it. Farmers are very clear that providing raw milk for drinking requires a

high standard of on-farm hygiene and care in the cool chain until it is drunk by consumers. They are very aware that it spoils very quickly and spoilt milk can cause serious illness in some people. We look forward to seeing what MPI does, knowing that the hurdle for supplying raw milk for sale will be high.

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As a farmer you know that cows don’t like to drink water that is high in iron. And that’s costing you money through lower milk production. And since water turbidity is one of the key quality requirements for your dairy shed, it could cost you a lot more than just reduced production. Now there’s a new type of filtration system that’s guaranteed to remove the iron from your water to meet compliance requirements. A reliable supply of clean water is not always a given for farmers. Our innovative technology provides the ultimate solution for iron removal from water. Our non-chemical filters are more user-friendly than other types of filter. Conventional sand filtration systems are inefficient, labour intensive and costly in comparison. Features of the Longveld iron filter system include: • High reliability • No chemicals

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Gas hot water compatible Longveld On Farm are also the people to talk to about installing a gas hot water system in the dairy shed. Using the Bosch commercial water heater, the gas dairy hot water system is a new and cheaper way to supply the dairy shed with all the hot water you need. Pam says that the gas hot water system is proven to save up to half the cost of electric hot water and it’s programmable to provide hot water whenever it is needed.

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BEES

August 2014 National Farming Review

INDUSTRY GROUPS

Watershed moment for bee industry Nick Hanson The bee products industry has come together to tell its leaders that the best way forward is to draw members from all corners of the apiculture sector. The theme at the inaugural New Zealand Apiculture Industry Conference held in Wanganui recently, was “working together” and it was an opportunity for members of the Federated Farmers Bee Industry Group to contribute to a wider industry discussion on the future of industry leadership. Federated Farmers Bees chairman John Hartnell said, “The bee products industry has suffered in recent years from low industry body membership and a fractured group of organisations that have failed to offer beekeepers a united voice on important issues.” In order to ensure all views were heard, a professional facilitator was engaged to tease out the level of support from about 500 bee industry participants that attended the conference. To revamp the industry the organisation would need a diverse range of membership drawn from not just commercial beekeepers but also hobbyist beekeepers and the wider supply, packer and exporter network. “The response was overwhelmingly positive,” Mr Hartnell said. At their annual general meeting, Federated Farmers bees group passed a motion to work with the other existing bodies to draft a proposal for a new industry group to represent beekeepers, and to take that proposal to the wider industry and prior to the end of the year.

The institution of a commodity levy will certainly be part of any proposal to reform the industry. “This was the mandate given from conference; it was without question a watershed moment for our industry, now we must step up and deliver,” Mr Hartnell said. Industry good funding was also part of a wider discussion. The bee products industry does not have a commodity and struggles to gather the financial resources to fund vital research. This is particularly the case in areas that will impact market access such as developing scientific standards to define monofloral honeys and processes to ensure that honey can be accurately assessed for adulteration. After a presentation from Beef + Lamb chairman James Parsons, describing the benefits that the red meat sector gets from a commodity levy, Mr Hartnell said, “The institution of a commodity levy will certainly be part of any proposal to reform the industry. “We have had some success with a voluntary levy on the number of hives that a beekeeper has but unfortunately it is the same names that keep donating. “A commodity levy is the only way to address the problem of free riders.”

BUZZ: There is support for a united bee industry body.

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National Farming Review

August 2014

www.fedfarm.org.nz Ph 0800 327 646

OPINION

‘Blue on blue’ undermines lamb market Rick Powdrell Meat & Fibre chairperson

DISCONTENT: Britain’s National Farmers’ Union has been sticking the boot in over New Zealand lamb in supermarkets.

motivated and inspired to buy it. With celebrity chefs there is no shortage on television pushing how healthy, tasty and versatile lamb is. This may motivate the consumer until they run into the NFU’s Eeyore strategy. While “Buy Local” may appeal to some it fundamentally relies upon pity. While pity works for charities it cannot work with a premium meat lamb is. Consumers do not want to feel guilty over the provenance of what they consume, they want to be uplifted. In New Zealand, we learned the hard way that yes, you do have to hustle. We have no government support so we have to work really hard to maximise the God-given attributes which makes New Zealand food and fibre sing. Lamb is an affordable luxury and farmers are its craftsmen. In this age of homogenised food that’s differentiation

but you need to tell the story well. Given New Zealand free-range grass-fed lamb is completely unsubsidised, British taxpayers don’t pay twice through subsidies or at the checkout. While the NFU was wringing its hands in Wales, a Midlands newspaper more positively ran “Lessons from Kiwis on turning grass into cash”. This is about cutting the apron strings and focusing on that farm engine room we know as pasture. Doing this generates genuine carbon efficiency. New Zealand sheep farmers are producing more meat but off a much smaller flock. This productivity improvement is estimated to have reduced the greenhouse gas footprint in New Zealand lamb by more than 22 per cent since 1990. This was not easy nor without pain. As late as 1999, there were over 45 million sheep in New Zealand

but, by last year, the national flock numbered just over 30 million. We are cutting our cloth. It is also about opportunity and free trade, which you can’t get at while you remain subsidised. An economist recently told a local newspaper here that for Kiwi sheepmeat, “China accounted for 30 to 50 per cent of export earnings at the farm gate — up from 10 per cent in 2008 — and was the secondlargest market for New Zealand lamb after the UK”. We only inked the China free trade deal in 2008. For the NFU, it must fundamentally decide if it wants British lamb to play in Football League Two or the Premiership. Instead of firing broadsides aimed at the same side we need to work together if we’re to positively grow lamb consumption. That starts though sites like www.loveourlamb.co.uk but it needs vision and true leadership too.

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When militaries accidentally fire at the same side, it is called a ‘blue on blue’ but it’s better known by the oxymoron, ‘friendly fire’. Britain’s National Farmers’ Union (NFU) may be Federated Farmers kindred body but it has been prominent in fermenting discontent against New Zealand lamb in British supermarkets. The NFU’s blue on blue is no accident. This attack comes despite the first six months of 2014 showing that New Zealand is way under its European Union (EU) tariff-free quota for sheep meat. The NFU’s thinking seems to be if they can take out Tesco, others will fall like dominos thereby taking out the competition, namely New Zealand. I fear the collateral damage may simply end up being lamb consumption. Put yourself in the shoes of a British consumer. You know New Zealand has a lower carbon footprint than British lamb so foodmiles need not apply. Your brain and taste buds agree that it is not only awesome to eat, but happens to be more than price competitive. That’s made all the sweeter by knowing your taxes aren’t going back to farmers via the EU’s byzantine subsidy cornucopia. That’s four big ticks to Kiwi Lamb, but then your heart screams out, ‘but the British sheep farmers are saying it’s not fair’. As you stand before the meat section processing this complicated information, your hand reaches for pork instead. You don’t care whether it’s British or not because to solve your dilemma it’s not lamb. In other words we all lose out. What we know is this, lamb is mostly eaten in England and Wales but is less consumed in Northern Ireland and isn’t eaten very much in Scotland. While I am no marketer, I’d stop protesting at the Royal Welsh Show and start promoting lamb in Inverness. What we also know is British lamb consumption has been falling for years, bringing us back to the consumer dilemma above. This isn’t a conversion to vegetarianism though it is a competitor. Between 2000 and 2012, beef, pig and poultry grew as did total British meat consumption. The problem for British sheep farmers, and us downunder, is that lamb consumption fell from 368,000 tonnes in 2008 to 277,000 tonnes in 2012. That is a fall of just under a quarter in a worryingly short space of time. Of course money is a factor because lamb is a premium meat. Being a highend product, consumers need to be

Ph 0800 327 646 www.fedfarm.org.nz

August 2014 National Farming Review

ADVERTORIAL

A forage fodder to beet ’em all Fodder beet has returned to the New Zealand market and you need to forget everything you ever heard. Because with the right advice, good planning, support and agronomy techniques specifically developed for New Zealand conditions, it’s now one of the highest-yielding, lowest-cost forage options available. Seed Force is the main driver behind fodder beet’s recent commercial return to New Zealand. Seed Force was formed early in 2006 and has a dominant local Australasian shareholder base of key seed industry personnel with a significant track record over many years in the seed industry. Backed by the internationally recognised RAGT Semences through its Dutch subsidiary Joordens Zaden BV, Seed Force is operating within the domestic seed markets of both New Zealand and Australia. According to James White, Seed Force’s marketing and extension manager, the potential of fodder beet is becoming more widely recognised. “There has been a lot of misinformation surrounding fod-

der beet in New Zealand and a lot of this has come from overseas experience with the crop,” he says. “However improved germplasm, herbicides and agronomy techniques are providing the impetus for a shift toward this exciting crop.” Senior lecturer in livestock health and production at Lincoln University, Jim Gibbs, says the growth in this area of cropping had been phenomenal “It is the fastest-growing forage crop in the country. In the 10 years since its introduction commercially, it has gone from less than 100 hectares nationally, to best estimates of 15,000ha last year.” Wayne Pamment, land resources manager for Tatua, is one of fodder beet’s raving fans: “We’ve grown the crop for just under 3 cents a kg of dry matter and 12.5 ME. Even grass would typically cost you more than that. It stacks up really, really well.” According to Wayne, “The potential is there for all us farmers to really lift our profit and production. I honestly believe there is nothing better out there.”

Craig Littin Federated Farmers Waikato Dairy chair

Sometimes, from the outside looking in, it can appear that the cows are getting a raw deal, but the balancing around animal feeding is carefully managed and monitored. Break feeding ensures the balance is met between the animals feed needs, and ensuring viable pastures for calving season. Farmers also use feed budgets to manage this carefully, until pasture growth exceeds animal feed demand. All of this is achieved over a lengthy day right through to 9.30pm. Farmers start checking on calving cows at 5am, assisting any animals that may be having difficulties. Next it is milking time, supplying to the dairy company and saving milk from the newly calved cows to feed the calves. The rest of the day is often a rapid succession of tasks including feeding calves, setting up break fences, feeding out supplements and generally ensuring the welfare of livestock, farm and staff. check at 9pm.

Managing the winter feeding of dairy stock If you are a dairy farmer, you will be flat out on the farm at the moment. Between the wet months of July and October, dairy farmers are in calving season and cows have been dried off, having not produced milk for at least the last eight weeks. In these wet months pasture is sparse, and to keep cows in good condition while they are dried off and beginning calving, supplements like maize silage, palm kernel, hay or silage are used. By feeding 8 to 10 kilograms of feed per animal it allows the cows to gain condition and also rations pasture reserves to ensure the farm has enough for calving, when their feed requirements rise to between 18 to 20kg per animal a day. All of this happens when pasture growth is minimal, hence the muddy paddocks and the need for supplements and break feeding.

FODDER BEET FANS: From left, Wayne Pamment, land resources manager at Tatua; Shannon Ryland, farm manager, Tatua; and Ben Leong, Seed Force forage specialist.

PHOTO: NZX AGRI

National Farming Review

August 2014

www.fedfarm.org.nz Ph 0800 327 646

OPINION

It just gets murkier By Kim Reilly As the date for New Zealand’s election draws closer, alliances are made and broken, the lid on a supposed Pandora’s Box of scandals is unhinged, and handouts are promised like lollies from nana’s candy jar. All the while, facts are bypassed to make way for ideological musings, and politics gets dirtier than the nation’s waterways. A recent column from left-wing political commentator Chris Trotter, reminiscing about Otago’s Waianakarua River in the 1950s, could have been any river anywhere. It was built high on sentiment but low on facts, like Monty Python’s Four Yorkshiremen skit, “And you try and tell the young people of today that . . . they won’t believe you”. The reality is that water quality is not just a farming issue. Yet in recent times, we’ve heard a repeated cry that farming is single-handedly ruining New Zealand’s waterways. In most conversations, little regard is given to the widespread acceptance from the farming community that changes within the industry are indeed necessary. Nor is there any recognition that practices to implement positive changes — such as riparian management, fencing off waterways or more efficient, effective effluent management — are already in place and set to continue. That’s why DairyNZ scientists found that the past 22 years of increased cow numbers has seen the total nitrogen load to land from farms increase by 7 per cent. We forget that we’ve traded in tens of millions of sheep and a fair number of beef cattle for more dairy cows. The response from the farming community requires huge personal investment in time, effort and money, each year. Can urban polluters, including urban sewerage dischargers, claim that they are lifting their game to the same extent? If farming is to meet its own aspirations, central and local government expectations and maintain the respect of the wider community, then changes will need to be made. What we ask of the public and commentators alike, is to take the time to understand what modern farming is and what it is not. And Otago’s Waianakarua is just as good today.

Muufri is just not milk Andrew Hoggard Dairy chairperson Have newspapers been scooped by the New York Times or have they fallen prey to clever PR? The truth is ‘Milk [developed by Californian company Muufri] made in laboratories to hit shelves’, hasn’t got me shaking in my red bands just yet. The New York Times ran with, “Artificial Milk German Chemists Make Found Palatable by Scientists”. In surprisingly familiar tones and in American spelling, “…it is the same color as the animal liquid, and the inventors claim that it is more nourishing and more easily assimilated than the cow’s product, and non-tuberculous. The method of manufacture is kept secret but it is composed entirely of vegetable ingredients, digested by machinery instead of by the cow, and is said to keep sweet far longer than ordinary milk. Its strength, it is said, can be standardised for the family, infant, or invalid. It is proposed to build a factory in London to make and sell the family variety at 6 cents a quart.” Okay, that price gives away the fact it is from October 1912 and back then, would have undercut cow milk by US2.9 cents a quart. If you then work this through a US inflation calculator it comes out something close to US$2.16 in today’s dollars and a quart is less than a litre. Locally, Waikato University’s excellent Professor Jacqueline Rowarth recently pointed out that in 2008, “Two litres of standard milk cost $3.23, in 2013 it cost $3.19. During the time period under consideration, GST increased from 12.5 per cent to 15 per cent. For milk this meant an increase of approximately 8c going to the Government not the farmer or processor or supermarket. Using the Reserve Bank of New Zealand inflation calculator, in real dollar terms the 2008 price of $3.23 would be $3.68. Inflation and GST confuse the understanding. In addition, salary increases are quickly forgotten … This means that the cost of living, including food, as a proportion of income decreased.” Today, farmers are also meeting the cost of ever higher environmental standards. We don’t begrudge that, but it is a cost. So when we hear the Greens casually mentioning Resource Rentals and the Emissions Trading Scheme, it makes me wonder how much people want to pay for milk. Which comes right back to Muufri’s

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cross cell membranes and into the circulatory system. This not only opens the door to exciting new milk products but perhaps even new ways of delivering drugs. This brings me back to an important point being missed with Muufri; it fails to account for some 10,500 years of humans consuming cows’ milk, or for that matter, millions of years of mammalian evolution where milk plays an essential role. The reality is that we are only just starting to understand the natural qualities and versatility of this complete food. Fonterra already has healthcare partnerships with DFE Pharma and a recently inked deal with Abbott of America. Then you’ve got the massive area of food ingredients which puts a lie to the notion that milk is a low value product. The challenge with Muufri is to avoid wool’s fate. The word wool has been corrupted to describe materials that are anything but what comes off the back of an animal. This means the International Dairy Federation, our processors and others who produce natural milk-like products, need to ensure milk means milk. That’s why margarine isn’t called butter and why we can’t put Champagne on bubbly wine. We must ensure Muufri isn’t called milk, simply because it isn’t. With milk you just can’t beat the real thing.

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unique selling proposition kindly conveyed by our media. It’s cheap. Cheap doesn’t guarantee success or desire as there are much cheaper phones than an iPhone. There are also cheap cars and even cheap places to buy or rent. While you can’t make an omelette without breaking eggs, the Edmonds Cookbook adds milk too. If you want non-cow milk then there are alternatives derived from soy, almonds, coconuts and even hemp. On the animal front, there is of course natural milk from goats and even sheep. With cows, A2 milk is increasingly prevalent and could one day dominate the New Zealand herd. Better stock selection and husbandry comes together to make a great complete food. Yet the sum of what comes out of a cow’s udder is far greater than replicating its constituent parts in a laboratory beaker. Reading the Bullvine website I learned that Monash’s Institute of Pharmaceutical Sciences has looked into the nanostructure of milk for how it interacts with our digestion. Bearing in mind this was only last year, Monash found that when we start to digest milk, enzymes in our body break down the fat molecules to form small but highly organised components. This enables fats, vitamins and lipid-soluble drugs to

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August 2014 National Farming Review

NATIONAL POLICY

Rates: A way forward Katie Milne Board member Are you sick of ever increasing rates bills and keen for some respite? Well, some relief might be on its way, with a review of local government funding having been kicked off by Local Government New Zealand, the sector’s representative group. A meaningful review of local government funding is long overdue. Over the years, the structure of local government and its roles and responsibilities have all been reformed. We’ve also seen enhancements to the financial management and decisionmaking processes required of local councils. Yet local government still relies mainly on an antiquated system of property taxation that belongs more to the 17th Century than the 21st. Though the 2007 Shand Review of rates looked closely at funding and equity issues and made 96 recommendations intended to make local government financially more sustainable, little has since changed. Rates still make up about 60 per cent of total local government revenue, one of the highest percentages in the OECD. The business community supported the current Government’s Better Local Government reforms but the missing element has been reform of local government funding or anything like a serious look at the impact of the haphazard rates juggernaut. So far the Government has ruled out change in this vital area, and it has been oddly publicly dismissive of the need for change. For farmers this reaction is disappointing. Property value rates demand a particularly heavy contribution from us, regardless of income or our limited access to many council services. Property values are a poor indicator of a ratepayer’s ability to pay, particularly across different property types. It is simply ridiculous that under the current property value approach a farmer can pay many times more than a resident for a public toilet they will use no more often, if not less often. With the Government unwilling, it is good that Local Government New Zealand is taking the bull by the horns. Its concern is whether existing funding sources are adequate to address current and future demands for services and infrastructure.

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Declining populations and ageing infrastructure are key concerns in some areas, while in other areas experiencing strong population growth the question is how to pay for new infrastructure. It’s certainly important to investigate adequacy of funding to meet current and future demand. But a risk from any review of local government funding, especially one led by the sector, is that it becomes a way for councils to lobby for new ways to tax that would be added on to the present property value system rather than replacing it. That would be a shame, and must be avoided. Current council spending forecasts, which are set out in long-term plans, should be factoring in the future demand for services and infrastructure. I believe that the starting point for the review should be to assume no increases in these spending forecasts and that it should be looking at how to better fund this base-line spending so as to take the pressure off property valuebased rates. This means looking at expanding current alternative funding tools like

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user charges for ‘private goods’, getting rid of unjustifiable rating exemptions and getting more transfers from central government, such as the funding assistance rate for local roads and help for councils to take on new or expanded regulatory roles handed down by central government. It also means taking a fresh look at new funding tools, including options like income tax and GST, which could be implemented as local taxes or through a revenue share with central government that would replace a good deal of the lopsided income from rates on property. Dare I say it, even the dreaded ‘poll tax’ shouldn’t be excluded without a good hard look at the pros and cons. Hopefully the membership of the review’s working group, which includes several representatives from the business community, will ensure that the review looks not only on whether funding is ‘adequate’ but also on how council spending should best be funded and the distribution of the funding and rating burden. The working group will be meeting

It is simply ridiculous that under the current property value approach a farmer can pay many times more than a resident for a public toilet they will use no more often, if not less often. over the next few months and aims to produce a discussion paper before the end of the year. So watch this space.

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August 2014

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National Farming Review

August 2014

www.fedfarm.org.nz Ph 0800 327 646

30 Ton Log Splitter new model “HIGH QUALITY”

1” Water pump petrol powered

230

3500

2” Water Pump petrol powered

375

3” Trash Pump petrol powered

460

Garden Chipper 13hp now with Electric Start

Side Discharge Chipper (Heavy Duty)

9hp $2500

15hp $3200

Water Pump 3” Petrol Powered

399

National Farming Review

August 2014

www.fedfarm.org.nz Ph 0800 327 646

O T Y T R E P O WANT YOUR PR HE HERD?

STAND OUT

FROM T

It’s a great property, thanks to a lot of hard work. Now you’re selling, you want your place to be the one that gets all the attention and interest. Our skills in marketing rural properties to their best advantage are widely acknowledged. This expertise can often make the difference between a very good result and a great result. Since 1999, Bayleys Country magazine has been the ‘go to guide’ for those serious about purchasing rural property in New Zealand. It holds a unique position in the market, with a reach that is second to none. Booking for the Spring edition are closing soon. To ﬁnd out more about Country magazine, and to ensure your property stands out, call your local Bayleys ofﬁce on 0800 BAYLEYS. Licensed under the REA Act 2008

Ph 0800 327 646 www.fedfarm.org.nz

August 2014 National Farming Review

South Island Directory Do You want! Better Grass

• Toilets ﬂushing slowly? • Odours coming from your tank? • Are you getting the right advice? We can help with...

Bet Production Better Better call 0800 4328 328 email: info@dct.co.nz web: www.dct.co.nz

QUALITY DAIRY & DOMESTIC HOT WATER CYLINDERS Manufacturers of Stainless Steel Mains Pressure, Copper , Low and Medium Pressure, Solar, Wetback, Boiler and Heat Pump Hot Water Cylinders

• Full service with report for Ecan • Permits & Resource Consents • Drip line repairs - replacement • Design - Manufacture

• Drain clearing • Manhole risers • Pump replacements • Full parts - labour • Maintenance

If you have a MODERN AERATED SEWAGE TREATMENT SYSTEM or A STANDARD ANAEROBIC TREATMENT SYSTEM With 10 years experience in the manufacture, service and installation of sewage treatment systems and familiar with commonly sold systems, we can be of assistance to you.

24 Hour Breakdown Service | Phone Paul Maley 021 029 76148 paul@envirowaterservices.co.nz | www.envirowaterservices.co.nz

100% rural, 100% local.

From 10 litres to 1500 litres

Chris Murdoch. Your 100% rural property expert. For knowledge AND experience in the rural property market, ask for Chris

Available from your local dairy merchant. Manufactured by:

Superheat Ltd

NZS 4602 NZS 4604

www.Superheat.co.nz

or phone 03-389 9500 for details of your local merchant

Rainer Irrigation - where the grass is always greener

Centre pivots and laterals

Electrical Switchgear

Efﬂuent systems & spreaders

RotoRainers, Electrical, Pumps, Pivots, Mainline and more...

10 Robinson Street, Ashburton. P: 03 307 9049. E: rainer@ashburton.co.nz

Visit our website www.rainer.co.nz

Hastings McLeod Ltd Licensed under the Real Estate Agents Act REAA (2008)

9561184AC

Better Animal Health

Better call 0800 4328 328 email info@dct.co.nz web: www.dct.co.nz

SEWAGE TREATMENT SYSTEM SERVICING AS REQUIRED BY ECAN

Ph 0800 327 646 www.fedfarm.org.nz

August 2014 National Farming Review

Lower North Island Directory Flly to o Euro ope for free in 2015 when booking a Eu urop pea an Riv ver Cru uise

Harbour City Travel

15 day Magniﬁcent Europe – Amsterdam to Budapest

From $9,295

14 day Russian Waterways – Moscow to St Petersburg

From $8,745

22 day Grand Danube Cruise – Prague to Istanbul

From $10,835

Personal Service & Online. Locally Owned. Internationally Focussed.

Book by 31 October 2014 on a specified cruise & date and you’ll fly free to Europe. Book a specified cruise + flights by 31 January 2015 to receive an air credit of up to $2000

04 472 4294

Thinking of something else?

Many more Cruise options available. Call or email for details and conditions. All prices are per person based, twin share, cruise only. Terms & conditions apply.

travel@hct.co.nz | www.hct.co.nz

Tailor made itineraries also available. All enquiries welcome.

06 835 9450 0800 835 9450

PILOT

Bruce Peterson

ofﬁce@aerospread.co.nz

Dannevirke, Waipukurau, Napier Topdressing all of Hawkes Bay

ERIC JEPSON ENGINEERING

Lister petter, Diesel Generator sets, marine and industrial engines. Lister & Sunbeam shearing equipment, hand pieces, plants, wool press service, parts availability.

We operate curtainsiders, tippers and ﬂatdecks to meet all your general and bulk cartage requirements. Excavator / Grader HireTree pull work, tracks, load bays etc.

Phone Mark 027 279 6681 Ofﬁce 879 9845 Email: ofﬁce@agnewtransport.co.nz

Phone 8435978/8436006 A/H 8436071 97 Niven St, Onekawa Napier

WIRES ARE

FOR THE

BIRDS

Choose WIZwireless Wairarapa’s own local Internet provider providing Naked Broadband to our Region. Call today so you too can have real broadband phone (06) 370 9210 or visit www.wizwireless.co.nz

RANCHMANS

Premium Dog Rolls 2.4kg Ranchman’s Dog Rolls have been formulated to meet your dog’s daily nutritional needs, in a wholesome, meaty and convenient way.

100%

Available at leading Pet Food Supply Stores, Supermarkets, and Keinzley Agvet and Our Factory Shop.

MPI registered

New Zealand made. No refrigeration required. Installation/Maintenance

Irrigation/Solutions

PHONE:

Locally owned and operated Ballinger Place, Carterton | Phone 06 379 6874 • Fax 06 379 6875 | www.ranchmans.co.nz

All Pumping/Solutions

WEBSITE: www.gvelectrical.co.nz

06 379 7953

Call the experts today for Gold Standard Service

The Independent Alternative

MORRIS & BAILEY LTD

BUILDING CONTRACTORS • BRIDGE BUILDERS

• Competitive Rates • Honest, Professional, Friendly Service • Experienced Owner/ Operator • Independently Operated

For all your building requirements contact the company with experience 49 Cadman Road, Dannevirke Ph 06 374 4262 Fax 06 374 9327 mb_construction@vodafone.co.nz

Greg 027 665 6667 Bruce 027 277 7774 Gavin 027 220 8626 Peter 027 448 8637

• GPS Computerised Spreading

Craig Laird

Owner/Operator

Ph 06 348 8286 Cell 021 129 3395 Westmere RD4, Wanganui

ENVIRONMENTAL MONITORING •

Resource Consent Management

•

Monitoring Site Design / Supply and Installation

•

Telemetry Systems

•

Soil Moisture Monitoring

•

Stream Flow Measurements

•

Weather Stations….….and more

HYDROLOGY SPECIALISTS Phone: 0800 HYDRO1 Mobile: 021 243 7741 Email: matt@hydrologic.co.nz www.hydrologic.co.nz

Call us today!

Ph 0800 327 646 www.fedfarm.org.nz

August 2014 National Farming Review

Central North Island Directory Hungry chooks calves and farm animals?

ANIMAL BEDDING SPECIALTY DESIGNED WOOD PRODUCTS FOR:

Wintering Pads, Calf Sheds, Stables, Also available Post Peel, Sawdust, Shavings

CALL NOW 0800 497 777 or mobile 0274 400 171

Call 0800 225 333

www.gwr.co.nz

Money for Jam!

The big items this applies to is motorbikes and quads. But fuel used in chainsaws, petrol generators and petrol tractors (not used on the road) also applies. Excise duty is currently about 60 cents per litre for petrol. If 2,000 litres was used over the period of a year, this would total over $1,200 in refunds.

PONGAKAWA BASED

TOP TIP: Work out how much you spend on petrol off road for commercial purposes. Talk with Peter or Anna who can help you complete the necessary forms to obtain your refund.

• Crop protection Avos & Kiwi spray • Orchard mowing • Pruning Mulch • Strip Weed spray (Quad bike)

e - Sales/Servic l e v u e H n e D Alan Van list - WaterSpecia Andre Fourie ian ilking Technic M w o ll e M y Ton nician - Milking Tech e lf o R n a d n re B Administration ll a h rs a M e Clair

021 907 621 E: zcl@zanadu.co.nz www.zanadu.info

reid trailers Choose from our range of standard designs including Digger trailers, Boat trailers, Bike trailers and many more. Or we can design and custom build to your speciﬁcations.

Freephone 0800 807 155

MORRINSVILLE: 42 Moorhouse Street. [p] 07 889 7153 MATAMATA: 2a Arawa Street, PO Box 51 [p] 07 888 8002 [e] mail@cooperaitken.co.nz www.cooperaitken.co.nz

than We are more ialists c e p s g in k il just m

Phone: Neil now on

9699572AA

Claiming petrol rebates can be an easy source of extra income. If you use vehicles and equipment off-road you are able to claim back the excise duty.

www.reidtrailers.co.nz

Fe Feel free to call in, visit our shop an and discuss any requirements you ha have in regards to your dairy shed. •M Milking Machines •W Water Pumps & Fittings • Dairy D Consumables • Efﬂuent Ef Systems • Machine M Tests • Bore B Lifts

WE ARE THE SPECIALISTS... WHOLE TREE CHIPPING • MULCHING & STUMP GRINDING • LAND CLEARING SERIOUS MACHINERY FOR SERIOUS WORK • Largest mobile chipper in New Zealand • Tracked machines from 400HP to 750HP Wood Chips For Animal • Chip & grind whole trees Bedding & • Stump grind any size Stand Off Pads • Mulching standing trees to scrub • Services available throughout the North Island

• DeLaval InService (Preventative Maintenance) • Davey Supplier • Reid & Harrison • McConnel Backing Gates • Trenching

T The team at ABC Milking are here to support the Rotorua district

with 24/7 Service DeLaval Service & Support

19 White Street, Stree Rotorua | Ph 07 348 3628

Chatham Islands

20 201 14/ 5

Top 5 Reasons to Visit the Chathams • The contrasting landscapes and unique ﬂora & fauna • The fascinating history of this unspoilt corner of New Zealand • Savouring the local seafood • Opportunity to visit Pitt Island • Fishing like it used to be

The way New Zealand used to be...

Inclusive escorted 8 day tours include:

Return airfares from Auckland and Tauranga • Waterfront accommodation • All meals • All sightseeing & entrance fees A three hour ﬁshing trip • Expertise of a local tour guide 89 King St, Pukekohe | Ph: 09 237 0013 | Toll Free: 0800 785 386 E: mel@pukekohe-travel.co.nz | www.pukekohetravel.co.nz

EXPERIENCED • EFFICIENT • TIDY • FULLY INSURED CALL THE LAND CLEARING EXPERTS ANYTIME: 0800 022 044 PETE: 027 500 9878 GLEN: 021 500-987

email: pete@chipping.co.nz

www.chipping.co.nz

PLAN NOW TO GET QUALITY MAIZE

Ground work for Maize begins in 4-6 weeks. Marsh contracting Ltd can provide a soil testing service with reports for all your fertiliser recommendations. Following on we can organise • • • •

Spraying out of Paddocks • Ground cultivation Planting • Fertiliser Applications Harvesting - accurate dry matter results on job completion Stacking and Cover - Weighing Optional (recommended for precise animal intake quantities)

You choose - longer length cut to improve the all important ﬁbre but still maintaining the complete process of every kernel being smashed for easy digestion. This means less straw imputs are required, saving you time and money.

WE HAVE MAIZE FOR SALE - PLEASE PLACE ORDERS NOW TO SECURE IT If you have any questions about what seed to use or your fertiliser requirements pick up the phone and call us now. We cover Te Puke and surrounding areas We stay local to look after locals

Contact us for quotes, Advice or just a discussion. Neville 027 4970 315 | Daniel 027 2333 014 Tim 027 2226 940 OFFICE 07 533 1887

Ph 0800 327 646 www.fedfarm.org.nz

August 2014 National Farming Review

Auckland/Northland Directory I told you to get some covers from Palmer Canvas

We make covers for all areas of the farm and home

• Fertiliser Covers • Machinery • Trucks and Trailers • Tarps • To protect from UV, Wind, Rain and Sun www.palmercanvas.co.nz .pal p e ca as.co.

141 Lower Dent St, Whangarei Phone 09 438 8343

ANIMAL BEDDING SPECIALTY DESIGNED WOOD PRODUCT FOR

Wintering Pads, Calf Sheds, Stables,

CALL NOW

0800 497 777 Or mobile 0274 400 171

also available Post Peel, Sawdust, Shavings

Haines House Haulage

BRIDGE BUILDING & PILING SPECIALISTS

www.gwr.co.nz

UNDERWOOD CONTRACTORS LTD

Northland Ltd

ON THE JOB 30 YEARS EXPERIENCE

$45,000+GST

We offer Design & Build for Bridges including plans, permits, consents and construction. Or see us to strengthen and repair your existing bridge to ensure safe access on your property.

Ph: 09 435 4443 Web: www.ghk.co.nz 3 Pipiwai Road, Kamo, Whangarei

$25,000+GST

Do you need another dwelling for extended family/Bach/Workers accommodation?

DESIGN & BUILD EFFLUENT SYSTEMS SOLID SEPARATION PONDS • IRRIGATION

We have 2nd hand pre loved homes ready to move to your section from $20,000+GST Prices delivered and include standard foundations.

With over 40 years experience

Simply the best

GPS FOR PRECISE SURVEY & DESIGN CALL TODAY FOR YOUR FREE SITE VISIT!

us Call ay! Ph: 09 435 7285 | 0274 967872 | Fax: 09 435 7287 d Email: ben@removalhomes.co.nz | www.removalhomes.co.nz to

• We apply what you need, where you need it • Ravtrak advanced guidance • Proof of placement maps • Application history stored online • Experienced local operator • Options for all terrain • Six trucks available Northland wide

SPREADING The precise NORTHLAND way to grow

Phone 021 228 4967 www.kclcivil.com

NEW!! Sumitomo Long Reach Digger with 14m Boom NEW!! 240 Hitachi Zaxis Digger 12,000L Slurry (automatically ﬁlls in half the time) e Fertilizer & General Cartage 3 - 160hp Tractors with arrow, Large Tip Trailers, Power Harrow, Chisel Plough, Mulcher, Square Hay Baler & Rotary Slasher 15 & 12.5T Diggers rs | 2.5 tonne Dry Hirer Diggers | 17T Bulldozer with 6way Blade | 8T Vibrating Roller & Sheep Foot Roller | Transporter | 2 - 6x4 Tippers

Car Transport Trailer for Hire EXPERIENCED OPERATORS

For all your race, drainage & site work & more...

Barry & Deanna Underwood Mobile 0274 987 745 • Ph/Fax 09 4318 078 R.D. 2, Maungaturoto

MAGNUM CVT:

BIG, STRONG AND EASY TO USE Magnum CVT, the latest and greatest addition to the Case IH CVT range. With its Case IH developed CVT stepless transmission you’re always in the right gear for the job. Industry leading max 419 horsepower with 1806 Nm of torque - plenty of grunt to get you through the tough spots, and a Jacobs engine brake to pull you up on the road! Available with AFS® AccuGuide™ to keep you on the straight and narrow - at least at work. AFTER 26 YEARS AND OVER 150,000 TRACTORS, THE MAGNUM IS STILL LEADING THE FIELD.

We can cart and spread from all fertiliser stores Call us today: Jason Williamson 027 499 2530 Ravesdown Customer Centre 0800 100 123

HILDERS NORTHLAND & UNITED LIVESTOCK Divisions of Stan Semenoff Livestock Ltd

Ave, Whangarei - PO Box 6058, Otaika, Whangarei 0147 14Southend Te Wai Iti Place, Whangarei - PO Box 6058, Otaika, Whangarei 0147

WHANGAREI – Head Ofﬁce Ph: 0800 800 585 or 09 430 3801 Fax: 09 438 6374 Mobile: 0272 743 787

PUKEKOHE Ph: 09 237 1207 Fax: 09 235 2605 Mobile: 0274 979 784

KAIKOHE Ph: 0800 200 501 or 09 405 2643 Fax: 09 401 2278 Mobile: 0274 969 477

S TA N S E M E N O F F T R A N S P O RT

For all your bulk cartage requirements • metal • fertiliser • stockfood • sand • scoria HEAD OFFICE – All Enquiries Ph: 09 438 1020 or 0800 438 698 Fax: 09 438 6374 Mobile: 0276 406100 Email: stan.sem@xtra.co.nz

MS1506

For more information please contact your local Case IH dealer. Go online to www.caseih.co.nz, email info@caseih.co.nz or call 0800 CASE IH. C B Norwood Distributors Ltd

The sharpest tool in the shed. The Farmingshow isn’t just great radio. It’s a powerful website. Full of news, interviews on hot topics, Niwa weather – plus the sports news you may have missed. Farmingshow.com The knowledge you need. The source you trust.

a station of

Ph 0800 327 646 www.fedfarm.org.nz

August 2014 National Farming Review

INSIDER

Parliament

TOP LEVEL TALKS

Bills in the House

Parliament has dissolved for the General Election but as at July 28, a number of Bills relevant to farming were before Parliament, at various stages: ■ Overseas Investment (Owning our Own Rural Land) Amendment Bill, First Reading. ■ Building (Earthquake Prone Buildings) Amendment Bill, Local Government & Environment Committee. ■ Environmental Reporting Bill, Local Government & Environment Committee. ■ Health & Safety Reform Bill, Transport & Industrial Relations Committee. ■ Regulatory Standards Bill, Consideration of Report. ■ Animal Welfare Amendment Bill, Second Reading. ■ Land Transport Amendment Bill, Committee Stages. ■ Local Government Act Amendment Bill, Third Reading.

Other reviews and consultations Federated Farmers is also engaging with government departments on various reviews and consultations. For example, here are just a few of the consultations we’re engaged in: ■ Levy Consultation 2015/16, ACC ■ Independent Review of the Banking Ombudsman Scheme, Banking Ombudsman Scheme ■ Review of Essential Skills in Demand List, Immigration New Zealand ■ Electronic Animal Status Declarations, Ministry for Primary Industries ■ Developing Regulations to Support the New Health and Safety at Work Act, Ministry of Business, Innovation and Employment ■ Enforcing Minimum Employment Standards, Ministry of Business, Innovation and Employment ■ Government Policy Statement on Land Transport, Ministry of Transport.

News in brief

■ Farm Buildings Exempt: In response to Federated Farmers’ advocacy the Government has announced that farm build-

FARM TALK: New national president, Dr William Rolleston chews the fat with the PM, John Key, left, during a lunch break at the Federation’s national conference last month at Palmerston North.

ings will be exempted from the new regime for earthquake-prone buildings, saving farmers up to $170 million in compliance costs. This is very positive but more work is needed to reduce the impact on rural towns. ■ Review of Banking Ombudsman Scheme: The Banking Ombudsman Scheme is being independently reviewed. Federated Farmers supports the Scheme but wants it made more accessible to farmers by lifting the $200,000 financial limit to at least $500,000 and enabling it to consider complaints about banks’ commercial judgment and interest rate policies. ■ ‘Loopy’ Rules under the Microscope: The Government has announced the establishment a Rules Reduction Taskforce to investigate pedantic and

unnecessary rules in the local government sector. ■ Adverse event planning progresses: The Ministry of Civil Defence and Emergency Management is progressing the new framework for welfare management during an adverse events. This involves including Federated Farmers as the main coordinator for the animal welfare management of production animals. ■ Wilding conifer management strategy: At the latest meeting of the Wilding Conifer Management working group, good progress was made on the development of a draft strategy. This strategy aims to support effective collaboration between land occupiers, researchers, regulators and communities to address the critical overarching issues facing wilding conifer management.

THE OFFAL PIT Pardon me for being a farmer How much do we need to take, haven’t we done our penance? We have turned the other cheek for three years now and accepted our contribution to water quality changes and I for one have had enough, but at least we haven’t apologised. As for the new PR method of apologising for everything, this just gives me the shits. What’s the point of going to a meeting and having to spend the first three hours apologising? I apologise for being a dairy farmer, I apologise for employing five people, I apologise for trying to work hard and get ahead, I apologise for my cows not being toilet trained, I apologise for being a farmer, a man or a woman. I used to like the apology that went along the lines of — if you have taken offence then I am sorry and am not too keen on the current method of actually having to mean it, or say sorry for every little thing I might have done. The worst thing is that there has to be an inquiry about the delivery of the apology, the body language and the acceptance of the person who might have been offended. David Cunliffe has taken it to an art form, or being badly advised, and to apologise for being a man was really the final straw. Doesn’t he realise that there are medical interventions that can fix this if he is sorry to be a man. Just don’t drag the rest of us down to your level. Imagine the coalition between Labour, the Greens, Kim Dotcom, Hone and Winston. Can you imagine all the apologies? Then there will be payback for the treatment they endured under the Nats, the tax rises they are going to impose, the increased compliance costs, as well as the expected ones for the maligned, the globe for climate change, the gold card, getting old. I’m not sorry for being the backbone of this economy, for being a farmer, or for being a man, or for having a good family and I’m lucky that farming in NZ allows this so far. ■ The Offal Pit is a contributed column and does not reflect the views or policies of Federated Farmers.

FEDERATED FARMERS NATIONAL CONFERENCE 2014 Highlights from our national conference, held at Palmerston North Conference Centre from July 2 to 4.

Feed the world Protect the future Live well The world is at a crossroads. A rapidly growing global population is putting increasing strain on food production and security, environmental management and sustainability, and redefining business and lifestyle. We need to find solutions for these pressing problems; our future depends on it. As New Zealandâ€™s specialist land-based university, Lincoln University has a long tradition in offering qualifications addressing these very issues. As part of our commitment to ensure we remain as real-world relevant as ever, weâ€™ve launched a whole new range of bachelor degree qualifications. Whether itâ€™s agricultural production, science, business, environmental management, technology, tourism, sport, design or property, no other university specialises in meeting the demands, challenges, opportunities and considerations of the land-based industries, both in New Zealand and the wider world.

The world needs Lincoln. The world needs you. www.lincoln.ac.nz | 0800 10 60 10