Rural News 5 November 2013

WORLD DAIRY SUMMIT

PSA FIGHTBACK

Food safety top priority for China’s largest dairy player. PAGES 10-11

G3 thrives against odds at Golf Course Orchard. PAGE 12

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NOVEMBER 5, 2013: ISSUE 549

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A MOVE to get Fonterra director John Monaghan onto meat cooperative Alliance’s board as an independent looks set to create further conflict within the company, if not the industry. Chairman of Alliance, Murray Taggart, told Rural News Monaghan’s background doesn’t appear to fit the criteria the board are looking for in an independent to replace Owen Poole. “It’s difficult to see how he would fit the slot we are looking to fill,” Taggart said. While not wanting to question Monaghan’s ability, Taggart explained Alliance needs diversity at its board table and already has strong representation from farming and dairying. “We want someone with experience of international markets, preferably in food, and someone who’s been a chief executive at some point in their career…. Ideally that would be in a highly competitive industry - we consider the meat industry to be quite competitive – a duopoly or monopoly background doesn’t have a lot of appeal.” Current independents Graham Milne, who is chairman of Synlait Milk, and John Waller, a Fonterra director, already, bring considerable dairy insight to the Alliance table, he adds.

B+L urged to ‘get off the fence’ and support MIE’s push to restructure the meat industry.

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A N D R EW SWA LLOW andrews@ruralnews.co.nz

CHANGES AHEAD

sudeshk@ruralnews.co.nz

FONTERRA STAFF unhappy with food and safety standards in the supply chain can now take their concerns directly to the top – without the fear of being victimised. Launched 12 weeks ago, the internal food safety and quality hotline number has been given to the co-op’s global staff, says chief executive Theo Spierings. Staff can air their concerns directly with the group director food safety and quality, a newly created position reporting to Spierings. He told the World Dairy Summit, in Yokohama, Japan last week, that Fonterra has copied its existing whistleblowing model for food safety after an operational review of the WPC80 scare. “It showed that when people have concerns about food safety they don’t have sufficient access to higher levels,” he says. “So we really copied our model of whistleblowing and there should be open lines for all our staff around the world to take concerns directly to the top.” Spierings later told Rural News that Ian Palliser has been acting in the new position and a substantive appointment will be made soon. Asked if such a whistleblowing model-type policy could have prevented the WPC80 incident, Spierings said it’s hard to say. “If someone at Hautapu had raised concerns about production procedures, we would have intervened. This

never happened.” Spierings, on his first visit to a World Dairy Summit, organised annually by the International Dairy Federation, devoted the first part of his speech to the WPC80 scare. He showed the 2000 delegates the near-capsize photo of Emirates Team New Zealand’s boat. “If it had crashed, it would have been game over for Team NZ; the same nearly happened to Fonterra on August 1,” he says. Spierings recalled that he was in Europe on August 1 when he got a call. “My people in New Zealand said we have an issue – botulism. I said that’s almost impossible. I know from 30 years in dairy that it’s almost impossible to find botulism. But the report really said it was botulism, it produces toxins and mice are dying – that was the message.” Getting a second opinion would

have taken a month, he adds. “And if one child or one consumer was affected during that time, that for me personally is unforgiveable but for the business we would have had to close the shop.”

Spierings says the product recall was the right decision but admits some things could have been handled better. “You always learn from such events.” – More pages 6-7

NEW CROP, NEW MACHINE Alan Newton shows off a few spears from his first commercial asparagus harvest, three years after planting a paddock with crowns on his South Canterbury farm. Full story page 8

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RURAL NEWS // NOVEMBER 5, 2013

NEWS 3 ISSUE 549

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TPP trade deal unlikely SU DES H KISSU N sudeshk@ruralnews.co.nz

NEWS ������������������������������ 1-21 MARKETS �������������������� 22-23 AGRIBUSINESS ����������� 24-27 HOUND, EDNA ������������������� 28 CONTACTS ������������������������� 28 OPINION ����������������������� 28-31 MANAGEMENT ����������� 32-36 ANIMAL HEALTH �������� 37-43 MACHINERY AND PRODUCTS ������������������ 44-49 RURAL TRADER ���������� 50-51

HEAD OFFICE Top Floor, 29 Northcroft Street, Takapuna, Auckland 0622 Phone: 09-307 0399 Fax: 09-307 0122 POSTAL ADDRESS PO Box 3855, Shortland Street, Auckland 1140 Published by: Rural News Group Printed by: PMP Print CONTACTS Editorial: editor@ruralnews.co.nz Advertising material: davef@ruralnews.co.nz Rural News online: www.ruralnews.co.nz Subscriptions: subsrndn@ruralnews.co.nz ABC audited circulation 81,232 as at 30.06.2013

FEDERATED FARMERS Dairy chairman Willie Leferink says he can understand Japanese dairy farmers’ opposition to free trade. Leferink, who last week attended the World Dairy Summit in Yokohama, says after discussions with some of his Japanese counterparts, he doubts the much-heralded Trans Pacific Partnership (TPP) can be concluded by the end of this year. Japanese farmers oppose the TPP, fearing the accord will wipe them out by triggering an influx of cheaper imports. Some Japanese media reports suggest the Government will be seeking to exempt agriculture from the pact. Japan Dairy Association (J-milk) president Shigetaro Asano told the Summit “it’s too early for a complete free trade deal”. Asano, who is also president of food giant Meiji Holdings, noted that domestic milk supply is dwindling. But he warned that a dwindling local milk supply doesn’t mean Japanese farmers

should easily agree to trade liberalisation. He urged Japanese dairy farmers to keep abreast of TPP negotiations. Leferink points out the average age of Japanese dairy farmers is 68. Most of these wealthy farmers don’t want an open market to erode their wealth, he says. “They strongly feel that opening up their borders suddenly is a dangerous thing to do. I can understand where they are coming from,” he told Rural News. “They are getting a huge milk price right now because of short supply and they don’t want to lose that under free trade.” Leferink believes there’s no need to rush into TPP. “It’s better to negotiate a good agreement, even if it means it takes a little longer.” The 12 countries in the TPP negotiations – US, Australia, New Zealand, Canada, Mexico, Japan, Malaysia, Vietnam, Chile, Mexico, Peru and Singapore – are hoping to conclude a trade deal by next month. Japanese negotiators are facing pressure to make some concessions, particularly on farm products. However, the

Willy Leferink at the World Dairy Summit in Yokohama, trying out some Japanese dairy products.

agriculture sector is applying pressure on the Government to protect them. Last month Japanese Prime Minister Shinzo Abe again pledged to fight for Japan’s trading interests The Government and the ruling Liberal Democratic Party have been seeking to protect the country’s agriculture industry by making imports of five key farm product categories – rice, wheat, beef and pork, dairy products and sugar – exceptions to the TPP’s basic rule of tariff elimination. The five ‘sacred’ categories contain 586 farm products.

Japan has one of the most protected dairy sectors in the world, with high tariffs on imports. In 2012 New Zealand exported US$536m worth of dairy products to Japan, but faced substantial tariffs. High tariffs are also levied on meat and fruit and vegetable products from New Zealand. • Sudesh Kissun attended the 2013 World Dairy Summit in Yokohama, Japan with the assistance of the Asia New Zealand Foundation. @rural_news facebook.com/ruralnews

Tanker mix-up latest blow to Fonterra FONTERRA BELIEVES a contractor sent the wrong tanker last week when 14 milk tankers were exposed to dirt and mud contamination at the Whareroa plant near Hawera. Investigations were still continuing late last week but it is believed is a contractor truck has come onto site and gone through a standard washing process, says Scott Walls, Fonterra general manager, operations, Lower North Island. “Any tanker coming onto site has to go through the cleaning cycle,” says Walls. “But what we think might have

happened is the contractor has sent us the wrong tanker – one that is not typically used for dairy.” That was still being confirmed. The automated system gave an initial indication of a problem then a visual check picked up the dirt and gravel. About 14 milk tankers had gone through the cycle with the affected water – six of them had collected milk. The mistake was picked up within about 44 minutes. Contract tankers are used most seasons mainly to move by-products around

the country, Walls says. David McLeod, Taranaki Regional Council chairman, says the incident shows Fonterra’s safety systems are working. “One of the main things – with my interest also as a Fonterra director – is to make sure everything on the environmental front is being done carefully and professionally,” says McLeod. He initiated some calls to make sure everything was handled well and that was confirmed. “A contractor has done something that is not quite the norm and I am very

pleased that Fonterra management and staff have picked up the issue and dealt with it promptly.” The dumped milk went through processes at two treatment plants. He says the New Zealand media is waking up to the fact that everything Fonterra does, because it is a world dairy leader, is going to be seen by many people, governments and customers throughout the whole world. “The media has a very important part to play in the reputation of New Zealand Inc.” – Pam Tipa

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RURAL NEWS // NOVEMBER 5, 2013

4 NEWS

Alliance rejects Monaghan’s bid FROM PAGE 1

“I don’t think it’s that sound to have an over influence of dairy.” Monaghan was ruled out as a farmer candidate for Alliance’s board when it deemed he did not meet the company’s constitutional criteria for farmer elected directors (see panel). Not taking no for an answer, Lawrence-based sheep and beef farmer, Mark Patterson, then mustered a resolution to be put at the cooperative’s annual meeting in December that the board appoint Monaghan as an independent. Patterson says there’s no point dwelling on the board’s decision not to accept Monaghan’s candidacy as a farmer director, disappoint-

Murray Taggart

ing as it was. “The important thing is we need his sort of leadership in the industry so we’ve looked for another way to get him at the [board] table.” Alliance’s constitution allows for up to ten directors,

so, with six farmer positions at present, in theory that leaves four independent seats, though the recent board balance has been six farmers elected, three independent directors. Former chairman (and chief executive before that) Owen Poole’s retirement at the end of September creates a vacancy without upsetting that balance, and Patterson believes Monaghan, who has a small stake in his farm business, should fill it. While Patterson is a Meat Industry Excellence (MIE) group member, he says the resolution is put by him as an individual shareholder in Alliance. It is supported by Wanaka vet and farmer Mandy Bell, of

The Rabobank Leadership Award was created for one reason. To help develop and drive successful agribusinesses by acknowledging outstanding achievement and excellence in the food and agribusiness sectors. Rabobank would like to congratulate Sir George Fistonich, founder of Villa Maria wines and icon of the New Zealand wine industry, as the 2013 winner of the Rabobank Leadership Award.

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Criffel Station. Nonetheless, MIE has come out in support of the move. “The shareholders’ resolution will provide the opportunity for the board to take up Mr Monaghan’s expertise without his running head-to-head with farmer director candidates in upcoming co-op elections,” says MIE chair John McCarthy. John Monaghan MIE received many annual meeting notice later expressions of disappointment when Monaghan’s this month. However, it also pointed out nomination as a farmer directhe resolution is non-binding, tor was not accepted, he says. As Rural News went to press, meaning the board and comAlliance confirmed Patterson’s pany are not bound by it – even resolution had been received, if supported by a majority. checked as constitutional, and @rural_news would be circulated with the facebook.com/ruralnews

Computer says no! SUD ESH K I SSUN sudeshk@ruralnews.co.nz

A MAJOR computer system upgrade did not help Fonterra deal with the false botulism scare and the product Theo Spierings recall. Fonterra chief executive Theo Spierings told the World Dairy Summit that of the 38 tonnes of potentially contaminated WPC80, 17 tonnes were processed at its factories and became 2200t of powder. This powder was then sold to two customers who turned it into 6500t of products in 23 markets. He says being in the middle of the change in computer systems did not help in traceability. “[But] I’m not making excuses and definitely there are lessons for us here.”

RURAL NEWS // NOVEMBER 5, 2013

NEWS 5

Drought slashes SOE farmer’s profit P E TE R BU R K E peterb@ruralnews.co.nz

THE DROUGHT and low prices are being blamed for a dramatic drop in Landcorp’s profit for the past season. The net operating profit of the SOE fell from $27 million in 2012 to $13 million in 2013. Chief executive Steven Carden says the drought caused a drop in milk production and prices for lamb were low. Despite the drought he says farm expenses remained roughly the same as in the previous year. Carden told Rural News he’s hopeful of a better result in 2014 with the season off to a good start. In the coming year Landcorp will be building on its existing strengths and thinking about what levers it needs to pull to improve farm profitability. Carden says this is a continual job and every year the company is looking at ways to become more efficient. “We’ve obviously got the big dairy development at Wairakei Pastoral

(near Taupo) and that will continue to come on stream in the course of the next four years, which will greatly increase the size of our dairy portfolio. I think we are increasingly going to be looking at opportunities to manage other people’s farms rather than our own farms. So that involves exploring opportunities to partner with Maori and other people willing to invest in land ownership,” he says. Carden says that will be a material change in the way Landcorp does business, which historically was to farm its own land. And a new focus on and investment in a ‘people strategy’ will centre on employing and retaining the right people. “It’s not so much a change in the people we are seeking to recruit, as building a bigger pipeline of people coming into the business and extending the people development programmes we have in place. “We want these to be more effective so people stay with the business

Steven Carden

and continue to grow and develop their careers within Landcorp rather than feeling they need to go elsewhere for career progression. I think there are big opportunities for us to look at programmes to source young people not just out of rural communities but also urban communities to make a career in agriculture,” he says. Landcorp is looking to key training organisations they can partner with across the country to leverage their expertise and training facilities. @rural_news

Sustainability a focus THE ISSUE of sustainability looms high on Steven Carden’s priority list for the coming year. The company is looking to “measure, monitor and hopefully mitigate” its environmental footprint, hoping to show more leadership in this aspect of farming. Carden also sees opportunity for Landcorp to play a greater role in research. “We farm in a lot of different parts of the country and we are well positioned to help the research community further understand the impact of farming on the environment and what strategies we can employ, as an industry, to mitigate those impacts. That’s a powerful role Landcorp can play.” He also sees Landcorp having a role in experimenting on different properties. “If [the experiments] don’t work it’s not going to cripple Landcorp, so it’s an opportunity for us to try new things – push the edge in terms of innovation and share those learnings with the industry. They can then choose to adopt or not adopt the findings from that research work. I think that’s a valuable role Landcorp can play.” In the past year, Landcorp has been looking at opportunities to work with China, but Carden doesn’t see the company aggressively pursuing them.

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RURAL NEWS // NOVEMBER 5, 2013

6 NEWS

Internal dysfunction – critic P E TE R BU R K E peterb@ruralnews.co.nz

THE FONTERRA board inquiry into the botulism scare shows that, in many ways, internally Fonterra is dysfunctional, says the professor of farm management and agribusiness at Lincoln University, Keith Woodford. He told Rural News it appears they weren’t thinking as one company, each part having a culture relating to its own part of the business rather than the whole system. Woodford says in the case of botulism, Fonterra was dealing with an event that had low probability but high impact. “The different sorts of units through the business didn’t really join the dots and see the big picture. You even had, about April and May of this year, two divisions bickering amongst themselves as to who was going to pay the

cost of this damaged prod- lack of people in Fonterra understand the systems. You uct. Yet nobody was talking who can think right across can’t be an expert in everyto the companies who had it the spectrum and there- thing, but you must know put into their supply chains fore understand the sort enough about the whole of impact this was going to system and this is what – it’s incredible. makes agribusiness and food “Then you had have.” According to Woodford, different. AgResearch who did some If you are marketing analysis in July, but had having more scientists on computers you need to withhold the to know a bit about results from Foncomputer techterra because Fon“And it’s about business the nology. If a computer terra still hadn’t people who also know breaks down and there actually signed is a fault in it, you go the contract with something about in and fix it. But when them for the inforscience. You must have you are dealing with mation they were getting.” people who understand food, there are special issues in food Woodford says the systems.” safety which have huge no one saw the big implications. This is picture. Fonterra so much more serious has good scientists, but they were focusing the Fonterra board would and emotional. Everybody on the science and technical not solve the problem. He in the food business has to says it’s about having scien- understand something about issues. “Then you have people in tists in the organisation who food.” Woodford says right from the business side of Fonterra understand how they fit into the start, when the first probwho understand quite a lot the total system. “And it’s about busi- lem occurred – when a torch about business, but clearly they didn’t understand the ness people who also know fell into a whey drier – there nuances of food quality. something about science. were opportunities for FonSo it’s almost like there’s a You must have people who terra staff to downgrade the

product or dump it, which would not have been costly to the company. But instead they continued to reprocess it and compound the problem. “The report has not asked for heads to roll and I think that’s absolutely correct. The focus has got to be on getting the systems right and in a big company it’s a helluva challenge.” Woodford says while he agrees with the recommendation to take more of the public relations activities in-house, he doesn’t see it as the nub of the issue. “Yes, it’s a good idea to have in-house communications. But this isn’t about PR, it’s about your whole management system and while I think that recommendation is valid, I think it’s almost got out of proportion to the totality of the matter.” @rural_news facebook.com/ruralnews

New Lincoln degree timely BY SHEER coincidence, Lincoln University will next year launch a new degree – bachelor of agribusiness and food marketing. Professor Woodford says the philosophy of this degree is that marketing food is not the same as marketing toothpaste or computers. “If you’re going to market food you’ve got to know something about food and have some product knowledge. So we’re going to try to turn out people who have business skills and also understand something about the science of food.” Already the uptake for the degree is strong, Woodford says. The university has talked to people from industry and have been looking offshore to what the prospects are there. “In the past we’ve had our ag com degree that tries to teach people about production agriculture and businesses and joining those two together. “This new degree is to show that once you get beyond the farmgate you have to understand something about the science of food and food safety.” Not just the science of food safety, but the whole system convincing consumers to buy products.

RURAL NEWS // NOVEMBER 5, 2013

NEWS 7

‘Fortress Fonterra’s’ walls need breaching PA M TI PA pamelat@ruralnews.co.nz

WHEN FALLOUT hit from the precautionary recall, Fonterra should have had “more goodwill in the bank than it did,” says Jack Hodder, who led the inquiry team. The “fortress Fonterra” perception was encountered among stakeholders during the board-commissioned inquiry. It was not the inquiry team’s phrase, says Hodder, QC. It was not relevant in the lead-up to the recall, but in the reactions of various stakeholders when the crisis hit, Hodder said in answer to Rural News questions Inquiry committee member Gabrielle Trainor, a communications and crisis management expert, says it has been shown repeatedly that good mutual relations are important in managing any reputational risk. But it is very easy to perceive large organisations as a “fortress”. The inquiry team addressed the “fortress Fonterra” issue in two of its 12 principal recommendations. It said Fonterra should redefine “the style and substance of its engagement” with

stakeholders and the board should review that progress. It also said the board should accept greater responsibility for developing and maintaining relationships at the most senior levels of Fonterra’s external stakeholders, including in government and media within and outside New Zealand. Hodder said Fonterra was a “national champion” and there was a sense of ownership of the co-op by everybody, including those that did not own dairy farms or shares. “Fonterra is a big economic player in this country so it gets all these expectations dumped on it whether it wants it or not.” It had to accept this and figure out how to deal with this. Some things may be matters for the wider industry or New Zealand Inc. but Fonterra had to be clear about it. Another recommendation by the inquiry team is the building of an inhouse specialist communications team, including in key global markets. The report also heavily criticised Fonterra’s lack of social media engagement and policy, particularly in view of the high use of social media in China.

Fonterra inquiry committee Gabrielle Trainor, Jack Hodder, Sir Ralph Norris and Fonterra chairman, John Wilson.

Trainor said transition from externally based communications to building capacity internally “should happen as soon as practicable”. Fonterra’s externally based communications team was an “unusual structure”. “In-house capacity guarantees you more authenticity, more accountability and this has been recognised by the company.” Trainor said it was impossible to assess the scope and scale of reputa-

tional damage. But three mitigating factors were included: respect for the fact that the precautionary recall took place; that it was a false alarm; and the rigour and transparency of the inquiry process. Further recommendations include: • Review of food quality and safety specifications and testing • Risk and crisis management processes strengthening • Reputational risk forms part of the criteria for escalation and assessing

non-standard external scientific tests. • Plant cleaning programmes amended • The inquiry team reviews progress in nine months and 18 months • The board endorses as “one company”, best practice as a core principle • The board explicitly endorses the paramount importance of food quality and safety to Fonterra’s global and local reputation. • Setting up of a new risk committee.

RURAL NEWS // NOVEMBER 5, 2013

8 NEWS

Long road to the first harvest A N D REW SWA LLOW andrews@ruralnews.co.nz

ASPARAGUS IS not a crop for the impatient. Three years after planting crowns on 10ha of his farm at Seadown, South

Canterbury, Alan Newton is just completing his first harvest. He’s also celebrating the successful operation of an all-locally designed and built picker made specifically for his needs. “Once

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we’ve got the design finalised it will be available commercially.” The machine carries five pickers lying face down about 50cm above the crop. As they travel along the rows they slice

off the tender spears passing below them. The machine’s speed depends on the thickness of the crop – a brisk walk would be typical. “Sometimes it’s better to go a bit faster and leave one or

Eyes down for asparagus: a picker at work on Newton’s new machine.

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two [spears] behind,” says Newton. A couple of walking pickers – the traditional method – follow to harvest any such leftovers. Before the machine arrived, a team of pickers used to spend two days walking the paddock. After two days on the machine, Newton asked them which they preferred: “machine!” they all said. Work rate is also much better so the substantial investment – Newton’s reluctant to put a figure on it as design and development costs were one-offs they hope to spread with commercial sales – should prove worthwhile. During this year’s harvest Newton has controlled the hydraulically driven machine by handheld remote, either from a platform onboard or walking behind. GPS steering is the next step. For safety, all pickers have an emergency stop button to hand. At the end of a bout, pickers dismount, the outer positions fold up, and the machine’s

manoeuvred around onto the next five rows. A seven-row model is planned. During the harvest period every row is picked every day, starting 7am and finishing by 2pm, which gives an indication of work rate with the machine. Harvest this year will run for about 60 days, says Newton, but when the crowns are more mature that might push out to 90 days. After harvest the crop’s left to produce ferns, regenerating the crowns underground ready for the next spring’s harvest. Nearly all Newton’s spears are marketed through Leader Brand, Rakaia, which in turn distributes them throughout New Zealand. Local farm shop The Blue Barn on State Highway One, owned and operated by Newton’s neighbour, Waipopo Orchards, is the only other outlet. @rural_news facebook.com/ruralnews

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GEOFF LEWIS, chair of Hort NZ’s asparagus product group, says Newton’s entry into the crop is bucking the trend. “Grower numbers and area have tended to decline. There’s been significant rationalisation in the industry, as in other horticultural sectors.” In 2009 total production was about 2100t, from roughly 600ha, with about half the crop exported. Lewis, an exporter himself, says that market’s changed from taking commodity-type carton product to demanding pre-packed produce. “A large part of the decline has been in area grown for canning but there’s also been a decline in the area grown for fresh export.” New Zealand’s main asparagus regions are Waikato, Hawkes Bay and south west North Island. “It’s because the south has a later spring and shorter [picking] season.”

LATEST STORIES EVERY DAY Get upto date news at www.ruralnews.co.nz

RURAL NEWS // NOVEMBER 5, 2013

NEWS 9

Stakeholders a priority for new MPI boss P E TE R BU R K E

NEW MPI director-general Martyn Dunne wants to meet as many stakeholder groups as he can when he takes up his appointment on November 18. Speaking to Rural News from Canberra, where he’s still the New Zealand High Commissioner to Australia, Dunne says he learned from his time as head of Customs that it’s important to have a close association with stakeholders. He says in the case of MPI that includes people from ports and airports where you are talking about biosecurity. “I also want to meet with other organisations including the lobby groups such as Federated Farmers. I think it’s important that very early on they get to know who I am and I get to know who they are. I still have some linkages from Customs days. I want to get out to the 50

MPI locations and also to get out on farms.” In the immediate, Dunne’s aim is to turn MPI into a high performer. It’s been through a lot of reorganisation and reshaping and he thinks it’s done pretty well in recent times. “I want to focus on home before launching myself offshore, but I appreciate there are some things that have to be done offshore. The minister and I will come to some arrangement about what he wishes me to do in that area. We’ll also have to ensure that our trading partners get the confidence back that we think is still there and is well

deserved.” Dunne says it’s not appropriate for him to comment on the recent Fonterra botulism scare. He’s talked to the three min-

Martyn Dunne

isters who have a relationship with MPI and listened to their concerns. “I have also spoken to the senior leadership team in MPI, but not in any depth. It was more a meet-and-greet, though I have had a fairly long session with the acting chief executive who has done a good job in recent times

on a very specific issue.” Dunne (63) served in the army until 2004, when he was appointed as chief executive of the Customs Department. In 2011 he was appointed New Zealand High Commissioner to Australia. He applied for the MPI role because he saw it as an opportunity to contribute to New Zealand. “I thought I had some pretty broad experience in my time with Customs, especially in the international scene and then representing New Zealand here in Australia. I saw this as another opportunity to step into an area that’s been challenged in the last few years with its reorganisation,” he told Rural News. “I wanted to take on something that was a challenge and difficult to work through and make MPI the preeminent department within New Zealand.”

Attention to detail MARTYN DUNNE is probably best known for his distinguished military career where he rose to the rank of majorgeneral and was commander of Joint Forces New Zealand. He also led New Zealand forces in East Timor and served in the SAS. He admits that his military background does surface in his management style. “There are parts of this which are firmly embedded in my DNA, but also I don’t sleep in barracks at night and you learn to transition. I never found it difficult to transition because I’d been a senior officer and was used to dealing with politicians at the senior strategic level,” he says. “There are times people call crisis where previous careers help you deal with situations. I always believe that when participative leadership can be exercised it should be exercised, but there are times in some roles you have to be relatively firm about what you want done and there is no time to have a meeting about it.” Dunne says the role of MPI director-general requires a broad range of skills including managing large budgets. But he believes, above all, success depends on proven leadership across a range of issues. “Then you’ve got to have the management skills to get those things to ‘sink’ and that’s a risky business because you are trying to satisfy everybody. At times there will be people who don’t agree with things and there will be issues that have to be addressed: sometimes it might be a compromise and sometimes it might require a firm hand to say ‘yes’ or ‘no’.” Dunne says MPI will provide leadership in areas where they feel they should, but he suggests the answer to many issues lies in the hands of the primary sector itself. He’s a great believer in empowering people to make their own decisions. – Peter Burke

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RURAL NEWS // NOVEMBER 5, 2013

10 NEWS: WORLD DAIRY SUMMIT

Arla’s cheese and butter marketing blitz SUD ES H K I SSU N sudeshk@ruralnews.co.nz

EUROPE’S SECOND largest dairy co-op Arla Foods is launching a marketing blitz to promote its butter and cheese in Australia and

New Zealand. While the co-op has no plans to invest in milk plants, chief executive Peder Tuborgh says it will be pushing Lurpak butter and Castello cheese brands, which have seen

good growth in the two countries. For the first time, an on-air campaign will be launched, Tuborgh told Rural News, last week, at the World Dairy Summit in Yokohama, Japan.

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but I cannot go into details at this stage.” But Tuborgh ruled out investments in stainless steel. “No investment in processing – there are others in Australia and New Zealand who are better in doing that. We will invest and expand in the marketplace, in logistics and distribution network.”

outside EU is important to the co-op, Tuborgh says. “It’s important to be present outside of the EU and growing rapidly outside is one of core strategies. “The reason is population growth is happening outside the EU, the US and Oceania where everything is standing still, demandwise.”

“No investment in processing – there are others in Australia and New Zealand who are better in doing that. We will invest and expand in the marketplace, in logistics and distribution network.” Speaking at the summit earlier, Tuborgh noted a shift in Arla’s investment strategy – creating growth outside the EU. While it is developing core markets within EU, for the first time more than 50% of the co-op’s capital investment is either going outside the bloc or in facilities within EU but targeting foreign markets. “I can tell you crossing the 50% mark was unthinkable five years ago.” Arla, owned by 12,000 farmers in Denmark, Sweden, Germany, Luxembourg, Belgium and the UK, processes 12.5 billion kg of milk from its farmer owners. It also sources contract milk. Having a footprint

Tuborgh noted that a growing middle class in Asia, Middle East and Africa were driving growth. But he cautioned that growing outside Europe had challenges. Dairy companies have to adapt to changing trends and new consumer tastes. Arla, with a proud 100year tradition of developing dairy knowledge, cannot dump its products on consumers outside EU. “I must admit these new consumer trends are not the same as we are seeing inside Europe,” Tuborgh says. • Sudesh Kissun attended the 2013 World Dairy Summit in Yokohama, Japan with the assistance of the Asia New Zealand Foundation.

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A friend in need ARLA FOODS says it’s not gunning for market share lost by New Zealand dairy processors after the WPC80 scare. Chief executive Peder Tuborgh says the false botulism scare was “sad for everybody in the industry”. “It’s not something anybody wants to see happen. It seems to have been handled okay by Fonterra.” He says the scare may have affected Fonterra’s market share in China but he doesn’t see it as an opportunity for Arla. “I don’t see it as a kind of opportunity – something that comes on the back of someone else having a problem.”

RURAL NEWS // NOVEMBER 5, 2013

NEWS: WORLD DAIRY SUMMIT 11

Food safety top priority for China’s largest dairy player SUD ES H K I SSU N

management. “It will also help push forward China’s dairy industry to be in line with world dairy development.” According to Sun, milk

sudeshk@ruralnews.co.nz

THE HEAD of China’s largest dairy company says Fonterra’s false botulism scare underscores the importance of food safety. Mengniu Dairy chief executive Yiping Sun told Rural News, last week at the World Dairy Summit in Yokohama, that consumers’ trust can only be won by delivering high quality dairy products. “The false botulism scare attracted media and public attention not only in China, but also in the world. The issue again told us that food safety is the base of our development,” she says. “In China, we have an old saying ‘to work like walking on ice’. I always feel I am walking on ice when I manage this large scale leading dairy company. “China is a big market. It does not matter if you are a foreign company or a local company, as long as your product quality is high, you can win consumers’ trust.” Mengniu has no immediate plans to invest in New Zealand. But Sun says it is exploring opportunities “as long as the cooperation helps us to produce better products for con-

consumption in China is well below the world average and Mengniu is ready to work with other dairy players to improve this. • Sudesh Kissun attended the

2013 World Dairy Summit in Yokohama, Japan with the assistance of the Asia New Zealand Foundation. @rural_news facebook.com/ruralnews

Fonterra’s Theo Spierings and Mengniu’s Yiping Sun in discussion at the World Dairy Summit.

sumers”. “Safety is surely the priority in considering our business expansion.” Addressing the 2000 delegates at the summit, Sun outlined how Mengniu was tapping into global resources to improve the Chinese dairy industry. European co-op Arla Foods is a shareholder and its products are sold in China through Meng-

niu’s sales network. The two companies have set up Sino-Danish Dairy Product Technology Cooperation Center. Sun says it promotes Danish dairy technology to Chinese farms. “We believe as the leading dairy in China, it’s our responsibility to make sure the whole Chinese dairy industry improves.” She told Rural News Mengniu is also seeking to

work with New Zealand companies. “In April this year, we partnered with AsureQuality to set up a third party independent certifying company. The cooperation will help Mengniu bring world leading food safety standards to China which cover the complete chain of the dairy industry including pasture and production process

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RURAL NEWS // NOVEMBER 5, 2013

12 NEWS

PSA fight back starts in orchards KEY MESSAGES

PA M TI PA pamelat@ruralnews.co.nz

GOLF COURSE ORCHARD is not a lifestyle proposition: it costs $20,000 a week to run. “We are committed to this thing…. In spite of the name of this orchard there is no ‘plan B’ – we actually have to make this work,” says director Paul Jones. Most of its G3 had been grafted in the winter of 2012 before DMS bought it. This followed the removal of 37ha of Hort16a, which cannot stand up to Psa. “This winter we decided we weren’t happy with the performance of G14 relative to the G3 so we’ve grafted over another 8.5ha. “We bought it in November last year which was a pretty bad time for Psa…. Since then I don’t think we’ve had any doubts that we can make this work: we backed ourselves, we made the investment, we are more confident than ever we can grow G3 successfully in a Psa environment. “The Psa environment is not going to change; we can modify it, we can do stuff, but to be in this game you have to want to make it. We backed our team that it would make it.”

❱❱ Taste is critical – small G3 has a poorer taste. A higher minimum taste is likely for 2014. ❱❱ Fill the canopy – multiple leaders for “Psa insurance”. ❱❱ Minimise fruit loss – every tray lost costs a grower more than $10. Although the 2012 spring was “pretty awful”, when they inspected there was not a lot of Psa in the grafts and there hasn’t been all the way through. They have had an aggressive spray programme. They have had a mixed result with bud burst this year, mainly because of late growing of the cane last summer. With four orchards on the same area they are all behaving differently, so they have concluded late cane in the new G3 is quite variable. They hoped for 40 flowers/m2 but got an average of 28 flowers. This is still enough to meet their targets and could help to ensure they got a good taste. They could reach their budget target

OMS director Paul Jones says G3 growers must maximise taste and canopy cover.

of $6000/ha with this, and possibly go higher to $7000/ha or above. The target of 200,000 trays is achievable maximising the 28 flowers. “Taste is very important here – taste is absolutely critical.” Smaller G3 has a poorer taste and the markets find it unacceptable. Poor taste could threaten market growth. “Taste in G3 has a very strong relationship with crop loading. The higher the crop load, the lower the taste…. So with only 28 flowers we don’t think good taste will be difficult to get.”

Canopy cover this season is 76% which they are happy with, but they aim to fill the canopy for the 2015 crop. “So anything we can do to maximise canopy growth we will be doing.” They believe they can achieve the last 25% without stringing. “We have a very aggressive planting and grafting programme – planting all the gaps. We have put in every seedling we can lay our hand on this year.” One of their staff was the first to realise that in a Psa environment the standard two leaders from the root

stock were not enough. Where they can they cultivate a further one or two suckers as “Psa insurance”. They are doing this across all DMS orchards. “It is all about maximising that canopy fill, maximising the crop while we are getting these excellent returns. We all know returns are going to drop later on. So the more you can get in early, the better the economics.” They believe G3 and Psa can live together. “We have a Psa environment that isn’t going to change. Some years are going to be worse than others… so Psa control is part of our normal orchard management.” They have an active spray programme and monitor, inspect and remove diseased canes. This year that work in September took seven hours/ha; last year it would have taken much more so he was “thrilled to bits”. “80% of Psa is in any low spot that runs through a block; monitoring from now on will be concentrated in the low spots.” In another aspect of Psa management in the orchard, DMS changed from a water protection system for frost to totally windmill. This keeps the orchard dryer. • More G3 news on page 14

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RURAL NEWS // NOVEMBER 5, 2013

NEWS 13

Beef+Lamb told to ‘get off the fence’ PA M TI PA pamelat@ruralnews.co.nz

CHANGE IN the sheep and beef industry is coming: either farmers choose it or the receivers will “choose for you within the next five years,” says Meat Industry Excellence (MIE) spokesman Ross Hyland. Hyland has called for Beef + Lamb NZ to “get off the fence” and support MIE’s push to restructure the meat industry. He also called for support from Federated Farmers and the Government. He says Feds president Bruce Wills should “take his banker’s hat off for five minutes” to back the change. “And I hope [John] Key gets another term but I suspect you would have more chance if bloody Labour got in. It is heresy to say that in a farming community, but I think Cunliffe, Goff and O’Connor get it better. “You’ve got to get all your stars aligned to get there,” he told a Beef + Lamb meeting at Karepiro. Hyland says rationalisation can’t happen unless farmers are prepared to sign two-year contracts, along similar lines to, for instance, Synlait, Tegel or Ingham suppliers. The “logical thing” is to bring the two cooperatives – Alliance and Silver Fern Farms – together to capture about 54-56% of

the market. “But it needs more than commitment from farmers, it needs contracts.” Contracts were imperative for MIE’s success “in trying to bang enough heads at the boardroom level to look at a merger”. If the farmers commit to contracts, Hyland claims he can also go to the banks with a bankable solution. He may get the support to close some of the plants, which normally banks are reluctant to do. Hyland also believes that transferable slaughter rights may be needed as an underpinning support tool. With those contracts they can also go to the Government for supportive legislation. “What we don’t want is to put that co-op together and have other companies picking farmers off one by one with an extra 10c or a $1.” Contracts will lead to farmers getting better returns than the “Sunday night traders”. Beef + Lamb needs to get off the fence, Hyland said. 95% of the industry’s problems were based on meat companies and procurement issues inside New Zealand. Yet Beef + Lamb spent $8m offshore when it should be spending it back here to drive change. Beef + Lamb NZ chairman-elect James Par-

sons attended the meeting and said the money spent overseas was simply to maintain market share. While he respected Hyland’s position, B + L

needed more detail if it is going to be a good steward of farmers’ money. While it makes a good headline saying ‘$8m offshore should be invested here’,

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RURAL NEWS // NOVEMBER 5, 2013

14 NEWS

There’s gold in these vines – maybe! PA M TI PA pamelat@ruralnews.co.nz

THE NEW GOLD kiwifruit crop G3 is surviving and thriving on Direct Management Services (DMS) orchards near Te Puke despite Psa – and that’s good news for the industry in general, says one of its directors. That’s because the orchard is in a low lying

area with wet feet – considered to be the worse environment for Psa. “This orchard is in a reasonably challenged environment so one of the thoughts is, if we can survive here, then G3 will succeed most places,” DMS director, Paul Jones, told Rural News. When DMS took over the 47ha orchard last November, Psa was

spreading like wildfire throughout the Western Bay of Plenty and to regions around the country. And the new gold crop G3 was succumbing to Psa for the first time; before then it was hoped it might prove resistant to the virus. Low-lying and damp orchards were the most susceptible, with industry players suggesting kiwi-

fruit growing may not prove viable on less-thanoptimal land. But a year on, DMS has a healthy and potentially profitable 39ha of G3 crop – known as such to consumers – on its Golf Course Orchard at Paengaroa. The orchard held an open day for growers in October to share its success in conversion and

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RURAL NEWS // NOVEMBER 5, 2013

NEWS 17

Dairying’s march will accelerate – warning PA M TI PA pamelat@ruralnews.co.nz

THE “MARCH of the dairy industry is going to continue,” says Meat Industry Excellence (MIE) spokesman Ross Hyland. About 60,000ha is converted to dairy each year and this will accelerate. The sheep industry is losing about 750,000 stock units a year, which in 10 years would drive the flock number down to about 14 million, with at the most 10 million lambs. That may be good for those who survive but there will be much “roadkill” on the way. He says the fight isn’t

between meat companies; the competition is with other industries “who are running you out of town”. The best a processor could make this year is a 0.3-3% margin. If you add up the profit and loss of Alliance and Silver Fern over the last 10 years, they would have only broken even. “Beef capacity is 20% more than we need; lamb capacity 40%. If you wait, you sit on your hands and you want to vote for the status quo – you will be down to 10m lambs with 60-70% over-capacity. The receivers will be in before that happens.”

Compelling tales on Maori farming achievements A NEW book tracing the history of Maori farming in New Zealand coincides with the 80th anniversary of the Ahuwhenua Trophy for Maori Excellence in farming. Ahuwhenua – Celebrating 80 Years of Maori Farming, compiled by Danny Keenan, traces the history of the now longest-running farming competition in New Zealand. The Ahuwhenua Trophy was inaugurated by Sir Apirana Ngata and the governor-general at the time, Lord Bledisloe, to encourage Maori to improve their farming. At first the trophy was contested by dairy and sheep and beef farmers annually. But in 1954, it was decided it should alternate between the two farming activities. The first winner of the trophy was William Swinton, Raukokore, Bay of Plenty. The book tells how he and other Maori farmers and their families worked hard to clear land and improve the performance of their stock to produce high quality milk. It notes that in the 1930s there were ‘scrub cows’ and basic milking sheds – some with just dirt floors. The Ahuwhenua Trophy management committee chairman, Kingi Smiler, says the story of Maori farming is an important part of New Zealand’s social history until now untold. “It is a compelling, factual look at the amazing achievements of Maori farmers and their contribution to their people and the country,” he told Rural News. “The book features all the past winners of the competition and it will be of particular interest to their whanau. I think it will also be a revelation to many pakeha who are unaware of the past and present achievements of Maori.” Smiler says Maori tend to “fly under the radar”, but the reality is their contribution to the overall economy is huge. “For example, about 10% of the milk produced in New Zealand comes from Maori farms.” Smiler describes the new book as a fitting tribute to the inspirational Sir Apirana Ngata and his supporters who have given Maori and New Zealand a legacy of success and on-going aspirational goals. – Peter Burke

MIE’s Ross Hyland warns more dairy will come at the expense of sheep unless there is red meat sector reform.

RURAL NEWS // NOVEMBER 5, 2013

18 NEWS

Foreign investment in farmland back in news with Chinese bid for Synlait IF CHINA’s Shanghai Pengxin takes a 75% slice of Synlait Farms it will be business as usual for the cows and staff on SF’s 13 dairy properties, building on current capacity rather than rushing to add extra area, says the farms’ chief executive. “It’s really important to the new partner that the current management stays in place so from the point of view of change, there will be little change,” Juliet Maclean, told Rural News. However, a promised $20m injection into the farms should accelerate planned and wish-list developments such as Protrack in all rotaries, new milking silo and system technologies, and embedding the firm’s continuous improvement, lean manufacturing programme and culture, ‘In Sync’*. “[The] change there will be positive change,” stresses Maclean. “Giving us more resources to work with means I’ll be able to resource the team a little more thoroughly and that’s quite exciting.” Unsurprisingly for a business that

prides itself on its people management, staff were informed of the plans on the same day official announcements were made. Reactions were positive, says Maclean. “They know that equity raising has been on the cards for some time and they understand the opportunities it will bring for them.” That includes a share scheme for senior staff. “If you want people to perform at a high level and be loyal to the business it’s nice to give them some involvement in the business.” Her comments follow Synlait Farms’ announcement that a holding company, 75% owned by Shanghai Pengxin subsidiary New Zealand Standard Farm and 25% owned by Maclean and fellow Synlait founder John Penno, will make an $85.7 million takeover bid for Synlait Farms. Shanghai Pengxin is the same firm that last year, after much public debate and a lengthy Overseas Investment Office approval process, secured the 16 former Crafar Farms in the North Island

Synlait Farms chief executive Juliet Maclean.

and contracted Landcorp to manage them. Maclean, Penno and the third major founder shareholder remaining in Synlait, Ben Dingle, have made a pre-bid agreement with the holding company, SFL Holdings, to sell the 50.18% of Synlait Farms shares they control into the holding company. Dingle will not be part of the new structure and is “pursuing different opportunities,” says Maclean.

The balance of Synlait Farms’ shares are held by about 100 minority shareholders who should have the detail of the SFL offer in early November. If 90% accept the $2.10/share bid, a 31% premium to the last traded price on Unlisted, then the takeover code allows SFL to buy the remainder at the offer price without requiring agreement of the shareholders concerned. Maclean says offering long-term shareholders an exit strategy at a good value, as she believes this offer does, has been a board objective for some time. It also meets the board’s goal to make the business “financially robust” so it can take opportunities to grow and improve, while remaining loyal to existing management. Shanghai Pengxin’s was one of five offers received, all of which involved some overseas ownership. Maclean declined to comment on the detail of other offers, but points out New Zealand investors had their chance. “When we did the first IPO [in 2009]… we didn’t get it away. That was

an opportunity for locals to invest, but they chose not to.” China’s Bright Dairy took a 51% stake in the processing business, Synlait Milk, in 2010 and now the farms business seems set to become majority overseas owned too. But Maclean points out Synlait has “grown and been successful with the support of overseas investment from the start,” alluding to Japan’s Mitsui shareholding from the early days. The team and culture of the business has also been multicultural from the outset. “We’re accustomed to working with non-Kiwi-born partners…. It’s just part of our DNA.” But the possibility of Shanghai Pengxin using Synlait Farms as a training ground for Chinese dairy farmers “hasn’t even been mentioned.” Similarly Synlait Farms operating in China is “something that’s not been discussed.” Shanghai Pengxin’s current farming interest in China is in sheep, not dairy. *In Sync: ‘In’ for innovation, ‘Syn’ for Synlait, and C for Continuous improvement through innovation.

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Pacific Seeds’ range of summer

RURAL NEWS // NOVEMBER 5, 2013

NEWS 19

Farmers rally to support dam VIVIE NN E H A L DA N E

ABOUT 200 people gathered in support of the Ruataniwha water storage scheme at the first post-election meeting of Hawke’s Bay Regional Council in Napier on October 23. Federated Farmers and Central Hawke’s Bay District Council mayor Peter Butler organised the ‘Rally 4 Ruataniwha’.

ban put in place by the HBRC in fruit growing area Twyford during the summer drought. GAG claims it is not against the dam as such. Rather, it is demanding “more sensible” management of water resources in Hawke’s Bay. Graham denied “going in on a case” of the Ruataniwha dam, to which some of the gallery reacted negatively.

idea but added, “We need to go through the process and sort out where we are going with it and see whether it is economical or not.”

“We shouldn’t be afraid of further debate and discussion on the dam as long as we are being objective and not just taking our own personal agendas into it.” Former Labour MP Rick Barker said it was important that any decision about the dam be driven by “logic, reason and judgment”. “There are two main criteria: it’s got to stack up financially and environmentally. There are cases on both sides – but it has to be compelling. If so, we move ahead. It cannot be the dam at any cost or price or environmental issue.” Someone who has been outspoken about issues surrounding the dam is new councilor Tom Belford. He has been involved with the dam’s stakeholder group for the past three years. “I have to say I am leaning against it. On environmental and economic grounds it is really shaky. The council and its consultants have understated the environmental impacts of this dam.” Outside the HBRC offices, Neil White, a cropping farmer from Otane, was seen holding a placard that read ‘Hawke’s Bay doesn’t end at Paki Paki.’ He was referring to a need to remind the new councillors to think beyond the Heretaunga Plains. “We’ve only got one representative in Central Hawke’s Bay (Debbie Hewitt) so we are in a bit of a minority.” White thought the Ruataniwha dam was a good

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According to Will Foley, Federated Farmers Hawke’s Bay provincial president, it was intended as a timely reminder that “if the Ruataniwha scheme is lost, the Hawke’s Bay region can wave goodbye to any serious water storage proposals for a very long time”. “It’s a great turnout and not just farmers. There is a representation of commercial and trades people and retailers and that’s important because it shows they care,” said Beef + Lamb New Zealand chairman Mike Petersen. “We shouldn’t be afraid of further debate and discussion on the dam as long as we are being objective and not just taking our own personal agendas into it. It needs to be right for the region. If so we’ll get the best outcome.” Council chambers were packed and all eyes on proceedings as councillors were sworn in. Wairoa constituent Fenton Wilson managed to oust Rick Barker in a five-tofour vote, becoming chairman for another term. The new councillors who look likely to challenge the dam process are GAG (Growers Action Group) endorsed candidates, Rick Barker, Tom Belford, Rex Graham and Peter Beaven. GAG organised a protest in September at the total irrigation

Central Hawke’s Bay farmers front up to lend support to the Ruataniwha dam scheme at the Hawkes Bay Regional Council. From left: Gerald Wilson, Andy Gunson, Rob Wilson, George Williams and Richard Dakins.

That’s what works out here.

RURAL NEWS // NOVEMBER 5, 2013

20 NEWS

Stubble burning under review A N D REW SWA LLOW andrews@ruralnews.co.nz

ENVIRONMENT CANTERBURY says it’s commissioning of a report on stubble burning from

the Foundation of Arable Research isn’t a precursor to a ban. However, every year the council receives complaints about smoke from burn-offs and it is obliged

Nov 1

to investigate the practice as it reviews its regional air plan. “We thought we would commission this research as the first step in looking at what we might do to

better manage the expectations of our rural and urban communities,” ECan air portfolio manager Katherine Trought told Rural News. While she says ECan

team Come and at th visi n the main e Canterb t the ury A pavili & on at Site T P Show M 32 -34.

3-15 i

doesn’t have any answers to that better management objective “at this stage”, greater consistency in district codes of practice on burning, and how those are applied, as suggested in the FAR report, is one area to look at. Environment Canterbury’s campaign to reduce urban air pollution, on which it spent $0.6m this winter and $0.9m on in 2012, has also prompted questions about what it is doing to reduce rural air pollution, even if, as she acknowledges, burn-offs typically cause a transient smoke nuisance. Investigations are underway to see if there are any health impacts from rural smoke pollution. Trought says the council is also looking at what powers it needs to put in place so it could, if necessary, limit rural smokeproducing activities. “At the moment there’s very little we can do about it.” FAR’s Nick Poole says the report produced for ECan aims to present a balanced picture of why farmers burn and what

makes New Zealand’s situation different from other parts of the world where burning isn’t practiced, either because it’s prohibited or simply not practical. Our small seeds industry in particular, notably grass and clover seed production, benefits from burning as a way of clearing large volumes of, typically, cereal residue and helping reduce seed-bed weed burdens. The heavy residues New Zealand’s high yielding cereal crops leave, compared to the straw from a 3-4t/ha crop which is more the norm in Australia, is also a key factor in why burning’s a valuable practice here. The report outlines the heightened risk of herbicide resistance develop-

ing where crop residues reduce the range of products which would be effective, and the greater number of weeds emerging increases the likelihood of resistance developing. Federated Farmers says it welcomes FAR’s report and it is working with FAR in the run-up to harvest to ensure farmers are aware of their obligations, and to engage with rural communities, explaining how vital to arable farming stubble burning is. Feds’ Grain & Seed chairman Ian Mackenzie says Feds members need to ensure they keep to its code of practice on burnoffs, and take care to be “good neighbours”. “Be considerate of wind direction and strength before lighting, particularly close to built up areas.”

Four key areas ECAN SAYS the FAR report is part of a wider investigation into crop residue burning, which includes four key work areas: • Identifying the extent to which burning is used in arable farming in Canterbury, the value of the practice to the sector, the alternative land management approaches and their application to Canterbury, and how smoke, nuisance and safety aspects of burning

are currently managed • Developing an action plan in partnership with FAR and the arable farming sector to encourage best practice for crop residue management • Investigating the impacts of crop residue burning on air quality in urban and rural areas • Working with communities to understand the amenity impacts from crop residue burning.

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Disclaimer – the figures shown are indicative only.

RURAL NEWS // NOVEMBER 5, 2013

BEEF MARKET TRENDS

 

 

 

 









































NI

LAMB PRICES Change

c/kgCWT

P2 Steer - 300kg













6.00

6.01

6.01

5.66

Local Trade - 230kg

-5

4.50

4.55

4.30

Mutton

MX1 - 21kg

n/c

3.40

3.40

3.20

P2 Steer - 300kg

SI Lamb

YM - 13.5kg

n/c

4.32

4.32

4.10

n/c

5.88

5.88

5.51

M2 Bull - 300kg

n/c

4.15

4.15

3.95

PM - 16.0kg

n/c

5.88

5.88

5.53

P2 Cow - 230kg

n/c

3.10

3.10

3.20

PX - 19.0kg

n/c

5.88

5.88

5.55

M Cow - 200kg

n/c

2.95

2.95

3.00

PH - 22.0kg

n/c

5.88

5.88

5.56

Local Trade - 230kg

n/c

4.38

4.38

4.20

n/c

3.28

3.28

3.05

Last Year

5yr Ave

Aug

-36%

-24%

-33%

55,610

86,426

62,317

64,684

17,554

23,153

21,477

21,080

73,164

109,579

83,794

85,763

4,503

11,179

4,970

4,961

629

1,023

687

1,135

-60%

-39%

-40%

16,202

26,982

15,570

17,111

8,065

10,114

10,260

9,552

17,420

22,522

20,543

20,666

3,386

5,295

3,265

3,358

-20%

-23%

Jul

-36%

1000s

 

Change

Aug

Jul

Lamb NI

-23%

524

677

477

478

Lamb SI

-23%

223

290

215

235

Lamb NZ

-23%

747

967

692

713

Mutton NZ

-48%

106

202

108

116

   Last Season This Season





  

Export Market Demand



Change

  

 











n/c

1.82

1.82

1.34

1.81

+16

7.82

7.66

5.81

8.68

 Last Year

5yr Ave

 

n/c

2.05

2.05

2.14

1.72

NZ$/kg

+10

5.44

5.34

5.75

5.12







 















Procurement Indicator







2Wks Ago

-3%

79.0%

82.4%

74.76%

77.8%

% Returned SI

-2%

76.3%

78.3%

68.7%

72.0%

Last Year

5yr Ave





Change



























 





Last Year 5yr Ave

-2%

78.0%

79.6%

99.0%

70.2%

-1%

75.4%

76.4%

98.1%

69.3%

      

 





















3 Wks Ago





  



2Wks Ago



% Returned SI







% Returned NI

 





% Returned NI

Change





3 Wks Ago









Procurement Indicator























Last Year 5yr Ave

NZ$/kg 2 Wks Ago





2 Wks Ago

UK Leg £/lb

Last Week

95CL US$/lb



Last Week

Change

         

Last Year 5yr Ave



Export Market Demand







Total Monthly Kill







MX1 - 21kg

NZ Slaughter

Total Monthly Kill Change

Mutton





5.65

6.00

n/c

             



5.63

n/c

 

5.61

5.98

PX - 19.0kg

Cows SI



5.96

5.98

PH - 22.0kg

Cows NI



5.96

n/c

3.40

Str SI



n/c

PM - 16.0kg

3.50

Str NI



YM - 13.5kg

3.40

Bull SI

  

NI Lamb

3.50

Bull NI



4.30

Last Year

3.50

Cattle NZ



4.30

4.60

2 Wks Ago

3.40

Cattle SI



4.30

Last Week

n/c

Cattle NI



4.30

4.60

n/c

Change

c/kgCWT

n/c

1000s   

Last Year

M Cow - 200kg

NZ Slaughter 

2 Wks Ago

P2 Cow - 230kg

SI





n/c

M2 Bull - 300kg

Last Week

    



BEEF PRICES













LAMB MARKET TRENDS



MARKET SNAPSHOT

      

 





















Venison Prices



 

















Change



 Beef  & venison prices are reported as gross (before normal levies & charges are deducted). Lamb & mutton prices are reported nett (after levies & charges are deducted).

Last Week

2 Wks Ago

Last Year 5yr Ave

NI Stag - 60kg

n/c

7.15

7.15

7.50

8.38

SI Stag - 60kg

n/c

7.50

7.50

8.15

8.76



Received cattle from a sale yard lately? You must confirm with NAIT that the animals arrived at your property. www.nait.co.nz | info@nait.co.nz | 0800 624 843

RURAL NEWS // NOVEMBER 5, 2013

NEWS

PRICE WATCH



BEEF

WOOL PRICE WATCH Change

24-Oct

17-Oct

Coarse Xbred Indic.

+25

5.69

5.44

3.83

Fine Xbred Indicator

+28

5.93

5.65

4.61

Lamb Indicator

-

-

-

-

Mid Micron Indic.

-

7.63

-

8.57

Challenging times for processors

Indicators in NZ$

Processing companies in the North Island have been facing challenging times over the last couple of weeks in light of a rising dollar and continuing procurement pressure as farmers continue to put weight on killable cattle. This pressure will only intensify in the coming weeks as killing capacity is increased. Prices in the North have consequently remained high with a 300kgcwt export steer making between $4.55-$4.70/kg last week and a 300kgcwt bull making between $4.20-$4.50/kg. In the South, kill numbers are similarly low as the dry autumn and feed pinch in September hampered growth rates. This has underpinned higher than usual schedule pricing for this time of year. A 300kg cwt export steer last week make between $4.30-$4.40/kg and a 300kg wt bull made between $4.15-$4.20/kg.

Grass market keeps NI store cattle market firm A good supply of grass and a shortage of cattle have resulted in a firm store cattle market in the North Island over the last two weeks. Prices are similar to late August levels, and are significantly above historical levels for this time of year. Yearling categories have been particularly strong with 1 year steers and bulls over 250kg making 2.80/kg and $2.60/kg respectively in paddock. 2 year steers are also firm making between $2.50-$2.60/kg in paddock. In paddock prices have been upheld by some particularly strong sales across the North Island. The South Island store cattle market has not experienced the same level of buoyancy as the North, but has reaped benefit as some North Island buyers head south to secure cattle at cheaper cents/kg rates. 100kg bull calves are in good supply across both islands, demand in the North appears to be average, but fairly lack lustre in the South. Prices in the North range between $420-$440/hd and $350-$390/hd in the South.

LAMB New seasons lambs at $6.20/kg The numbers of old seasons lambs through the works are starting to slow down as supply reaches its end. New seasons lambs are still gaining momentum, with exceptional early season weights of up to 20-21kg being common. Prices for old seasons lambs have held steady over the last two weeks and range between $5.90/kg$6.20/kg gross (incl wool/pelt presentation etc) in the North Island and $5.70-$6.10/kg gross in the South. New seasons lambs in the North Island made up to $6.20/kg last week, for those companies that have differentiated old seasons and new seasons prices. Mutton schedules are looking strong, last week most offered between $3.30$3.80/kg gross in the North and around $3.30/kg gross in the South.

DAIRY PRICE WATCH Last Year











Indicators in NZ$/T Butter Skim Milk Powder Whole Milk Powder Cheddar



Last Year

+113

4962

4849

3962

-54

5428

5481

4145

+111

6164

6053

4023

-69

5292

5361

4816

 





Prev. 2 Wks







Last 2 Wks

Change

 







  































  









 





 









Overseas Price Indicators Indicators in US$/kg

24-Oct

17-Oct

+20

4.79

4.58

+23

4.99

4.76

3.78

-

-

-

-

-

6.42

-

7.01

Fine Xbred Indicator Lamb Indicator Mid Micron Indicator

3.14

Indicators in US$/T Butter









Last 2 Wks

Prev. 2 Wks

Last Year

-38

4513

4550

3400

+100

5125

5025

3300

-50

4400

4450

3950

Change +100

Skim Milk Powder Whole Milk Powder Cheddar







Overseas Price Indicators Last Year

Change

Coarse Xbred Indicator





4125

4025

3250













 

 







 













 



  

   

















  









 











 











10% lift in 2012/13 export lamb kill The final export lamb kill for 2012/13 has come in at 21 million; 10% or roughly 2 million head above last year and 500,000 head above the forecasted export crop. It is difficult to say whether the additional numbers are as a result of more lambs on the ground than previously forecast, or drought related slaughter of ewe lambs that should have been kept as replacements. Mutton slaughter has lifted 22% on the previous season, however, this is more a reflection on the low slaughter of the 2011/12 season than any huge increase this season. At 4.1 million head the 2012/13 mutton slaughter is similar to the 5 year average.

CURRENCY WATCH vs. NZ Dollar

Demand for whole milk powder (WMP) continues to improve on the back of strong demand from China. Anticipation of continuing strong demand has seen the rechannelling of some milk volumes from skim milk powder and cheddar production to WMP. While the price of WMP fell by 2.9% at the latest Global Dairy Trade auction, analysts are not picking it as a trend. NZ dairy commodity prices are still more than 50% higher than they were a year ago.



0.831

0.846

0.828

0.820

Euro

0.603

0.619

0.615

0.633

UK pound

0.513

0.524

0.516

0.509



Aus dollar

0.866

0.879

0.887

0.792



Japan yen

80.90

82.97

81.84

65.76

Euro



US Dollar



US dollar

DAIRY Strong demand for whole milk powder continues

Last Week 2 Wks Ago 4 Wks Ago Last Year

  











UK Pound













 

 



Jul

Aug

Sep

Oct

Nov

Dec

  













You can confirm animal movements: • online in the NAIT system • through your NAIT accredited information provider • by replying to the email from NAIT about the movement, or • by calling NAIT on 0800 624 843.

RURAL NEWS // NOVEMBER 5, 2013

24 AGRIBUSINESS

Technology driving profits and sustainability at PKW farms P E TE R BU R K E peterb@ruralnews.co.nz

IT IS Fonterra’s biggest supplier of milk in Taranaki, has a director who also sits on the board of Fonterra and in 2006 it won the Ahuwhenua Trophy for the top Maori dairy farm. This is Parininihi ki Waitotara (PKW) and its success does not come from luck, but rather reinvesting in the business and hunting down the latest technology to improve its environmental footprint. This season the company aims to produce 3 million kgMS. PKW is a Maori Incorporation with its headquarters in New Plymouth. It has many assets and dairying forms a significant slice of its business. The company runs 7000 cows on 14 farms on a total of 2303ha effective. It also has an extra 804ha set aside for dairy support. All the farms are located within 45km of Hawera, where Fonterra has a major milk processing facility. The farms’ herd sizes range from 150 to 900 cows. PKW is a relatively new organisation, set up in 1998 following a law change which allowed it first right of refusal to buy perpetual leases over land as these

came up for sale. Since then, PKW has made huge strides. General manager Dion Tuuta was born in the small Taranaki township of Urenui, before going onto Massey University and a number of senior management roles before joining PKW “Back in 1998, we were buying existing improvements but in recent years the board has taken the view that we want to develop a system we can apply across all of our farms and upgrade a lot of them,” Tuuta told Rural News. “For instance, when we buy a new farm it might need a completely new cow shed and so we have a standard model that will have a 60 bail rotary with automatic cup removers, milk metering, that sort of thing.” Not surprisingly, the focus is on the environment and this is clearly evident at its newest farm, just out of Normanby on Tempsky Road. Tuuta says PKW is looking at tools and technologies to improve its environmental management. “We are utilising the Ag Hub systems with all the various monitoring systems they have. Pasture management, water monitoring, effluent monitoring and

General manager Dion Tuuta is driving the company’s push for profitability and sustainability.

every monitoring system they have got. It includes GIS tracking of effluent spreaders and an automated system that tells you exactly how much effluent you are putting on and where it’s going on. There is also a fail-safe gadget in the system so that if any problem occurs, it

automatically shuts off.” Tuuta also points out that at the Tempsky Road farm there is a 1 million L concrete effluent holding pond and the new rotary platform in the dairy shed is made of Kevlar – much lighter than concrete.

“All those things cost money, but that is reflective of the board’s long-term focus on trying to limit as far as possible the negative impacts of dairying on the environment, that is a key driver for PKW’s consideration of innovation on farm.”

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RURAL NEWS // NOVEMBER 5, 2013

AGRIBUSINESS 25

No resting on its laurels SINCE PKW won the Ahuwhenua Trophy for the top Maori dairy farm in 2006, it has not rested on its laurels. It’s acquired more land and is more actively

and, as he puts it, “it’s really about getting more of the slice of the milk cheque, owning more of the risk and taking more of the reward”. “We are still going

“It’s really about getting more of the slice of the milk cheque, owning more of the risk and taking more of the reward”. farming it. Dion Tuuta says the company has been putting more managers on the farms

to keep a mixture of sharemilkers and managed farms because we still have some harder

farms more suited to the 50/50 model. “This also gives some of the really good younger guys on our farms – those with big aspirations – the opportunity to get into a variable-order and then a 50-50 job. So having that opportunity is quite a

benefit the incorporation can provide for its people.” As well, Tuuta and his team are looking at making all the farms more efficient and moving from the present systems so as to reduce dependence on supplementary feed and reduce costs.

Developments like the new 1 million L effluent pond at the Tempsky Road farm are all part of PKW’s continual improvement.

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EARLY ORDER

The benefits of new technology PKW HAS about 9000 shareholders or beneficial owners, each year paid a small dividend now totalling about 20% of the incorporation’s net profit after tax. “Our dividend returns are modest in terms of financial returns and a lot of it is based on how you define benefit as well,” Tuuta explains. “To my way of thinking, having the environment secured is a long-term benefit to the shareholders. We reinvest 80% of our profit back into growing the business and that is probably the primary benefit the shareholders get.” Tuuta says technology is an enabler to achieving profitability. “It gives you more information – especially on nutrient control. It allows you to know what you are putting on and what the cost savings are down the road in terms of fertiliser use. “Technology is a useful tool, but what is fundamentally important is the quality of the person you have onfarm,” he adds.

Venturing in R&D DESPITE SOURCING all the latest technology to improve the environmental footprint of their farms, PKW is considering R&D options environmental management, says Tuuta. Water quality is at the top of the list. “We are in discussions with Ravensdown on a project attempting to assess what impact our operations have on water quality – especially the streams that run through our farms. “We’d like to do tests on what the water is like when it comes in and what it’s like when it goes out, so we get a clear understanding of what impact are we really having.” Tuuta says the company hasn’t sorted out funding for any projects at this stage, but believes the idea – promoted by the Federation of Maori Authorities (FOMA) – of getting a special ‘accelerator fund’ for Maori is appealing. He points out that any options to assist with research would be helpful because it is hard for organisations such as PKW to do it on their own.

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RURAL NEWS // NOVEMBER 5, 2013

26 AGRIBUSINESS

FRANCIS WOLFGRAM FINANCE MATTERS

GLOBAL DAIRY TRADE MONTHLY RESULTS 2013

RURAL PROPERTY MARKET STATISTICS 2013

Month

GDT TWI

Whole Milk Powder

Skim Milk Powder

Butter Milk Powder

Cheese

Month

All Farm Index

Price Per Hectare

Per Hectare Price Change

No Of Farms Sold

Lifestyle Per Sale

October

0.5%

-0.6%

4.6%

-2.5%

0.6%

September

3,194.8

$22,851

5.14%

342

$480,000

September

-0.8%

-0.6%

-2.5%

1.3%

-2.2%

August

2,980.9

$21,676

4.65%

369

$485,000

August

-0.1%

1.1%

-3.7%

-2.7%

-3.5%

July

2,953.0

$20,667

4.60%

438

$488,500

July

6.0%

7.8%

6.6%

10.8%

-1.7%

June

2,892.4

$19,716

-3.97%

474

$505,000

June

-2.9%

-4.8%

0.2%

1.1%

-6.4%

May

May

2,968.5

$20,499

1.26%

512

$509,500

-11.2%

-11.8%

-12.9%

-8.4%

3.5%

April

12.8%

9.6%

24.7%

2.1%

10.0%

April

2,946.6

$20,241

-10.26%

443

$518,500

March

26.1%

38.8%

12.3%

22.9%

21.6%

March

2,907.2

$22,317

1.64%

376

$506,750

February

8.4%

11.2%

1.6%

7.8%

1.8%

February

2,939.4

$21,951

-9.24%

379

$495,000

January

3.6%

4.4%

4.3%

-5.4%

-0.9%

January

3,039.8

$23,980

NA

382

$498,500

WITH ONLY four Global Dairy Trade (GDT) auctions left in 2013, prices are set to post good yearon-year gains despite volatile monthly dairy price movements over the course of the year. The chart shows some big swings for our product groups, but on average each product has shown steady and stable overall gains. The trade weighted index monthly average from January to October is running at 4.2% with whole milkpowder 5.5%, skim milk powder 3.5%, buttermilk powder 2.7% and cheese 2.3%. Dairy production has been quick to rebound from the drought and Fonterra reports that production is up 5% on last year for the four months ended September 2013.

Westland Milk Products was reportedly seeing milk flows running 16% ahead of last year and there are reports of smaller Waikato dairy companies collecting 8-10% more than the same time last year. With international demand for dairy goods firm and supply increasing we should see export volumes pick up headING into 2014. August dairy exports dipped slightly as a result of trade disruptions due to the impacts of Fonterra’s whey contamination scare. However, in September 2013 dairy export values leapt 28% over the month, outlining the sheer strength of the underlying dairy market fundamentals. With suppliers meeting demand, prices are set to remain stable for the rest of 2013 with small percentage movements.

AN OVERVIEW of the rural property market is starting to take shape for 2013, as indicators show that winter 2013 has seen a noticeable increase in rural property prices. This has reinforced a strengthening trend that extends back to the start of the 2012-13 season, with only a slight breather taken during the drought. A key issue ahead will be the possible reemergence of pre-2008 “’ubble’ behaviours. Prices for the 2013 calendar year, so far, have averaged $21,544/ha, which is 11% up on the average since the financial crises of 2008. While this is still 16% below the 2008-09 peak of $25,900/ha, it suggests prices have almost recovered half their

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RURAL NEWS // NOVEMBER 5, 2013

AGRIBUSINESS 27

Saputo back on top in Aussie dairy battle sudeshk@ruralnews.co.nz

CANADA’S LARGEST dairy processor Saputo has regained the upper hand in the battle for Australian company Warrnambool Cheese and Butter. The company last month lifted its offer for WCB to A$8/share, trumping bids by two Australian processors and cornerstone shareholders Murray Goulburn and Bega Cheese. WCB’s board has recommended Saputo’s latest offer to shareholders. WCB chief executive David Lord says the board continues to focus on maximising value for shareholders. “So, we carefully considered the proposal from Murray Goulburn including seeking further information on their proposal. However,

Saputo chief executive Lino Saputo Junior.

subsequent to those discussions, we received the revised Saputo offer which we consider superior both in terms of price and conditionality to the alternatives.” Some analysts believe both Murray Goulburn and Bega Cheese may

bow out of the race. However, it’s not clear whether both processors will sell their stake in WCB to Saputo. And, in an interesting development last week, Japanese conglomerate Kirin, which owns the former National Foods and Dairy Farm-

Fonterra remains coy FONTERRA IS remaining coy on whether it will join a growing list of bidders for Australian dairy processor Warrnambool Cheese and Butter Factory. Three processors, including two WCB cornerstore shareholders Murray Goulburn and Bega Cheese have bid for Australia’s oldest dairy processor. Canadian dairy giant Saputo is also in the running. Australian media are speculating that major Asian dairy companies may also be interested in WCB and its 800,000L milk supply base. Some reports suggest an Asian dairy

company may team up with Fonterra to make a bid. But Fonterra’s chief executive Theo Spierings could not say whether or not Fonterra would bid. Fonterra is the second-biggest collector of milk in Australia, but it is a highly competitive market with a tough trading environment. “You have to have a ticket to the game to compete,” Spierings says. But the value of the company must be taken into account because A$8/share was “very high”. “I cannot say whether or not we would make a bid at present.”

ers businesses in Australia, bought a 9.99% stake in WCB. Bega, which already owns 18% of WCB, launched its takeover bid in September for the listed processor. Bega, also a listed dairy processor, offered 1.2 shares and A$2 cash for each WCB share. But the offer was rejected by WCB directors as inadequate. Saputo made its move early last month by offering A$7/share. WCB directors unanimously recommended Saputo’s bid at that time, “in the absence of a superior proposal”. But the bidding war was turned on its head by Murray Goulburn, which has a 17% stake in WCB. It announced a A$7.50/share offer. Murray Goulburn notes that Saputo’s offer is still subject to conditions, not least approval from the Foreign Investment Review Board. “Murray Goulburn believes resolution of the future ownership of WCB will be a long process and that WCB shareholders should not act prematurely in relation to giving up control of their shareholdings,” it says. Australia’s largest dairy processor says its bid is “reasonable and in the national interest” that Saputo’s FIRB application to acquire WCB not be decided until Murray Goulburn’s own application

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RURAL NEWS // NOVEMBER 5, 2013

28 OPINION EDITORIAL

EDNA

The mail must get through WELL DONE to Rural Women NZ and Federated Farmers for fighting hard to ensure New Zealand Post continues posting mail in rural boxes five days a week for the next few years. Kudos must also go to the Government and NZ Post for keeping this part of NZ Post’s deed of understanding in place and rightly recognising that rural New Zealand is different. However, what is most disappointing are the ill-conceived claims – typically in some urban media – that this decision is evidence of the Government playing favourites with its rural base. It shows that the oft-mentioned ruralurban divide still has a way to go before it is bridged. As no doubt both Feds and RWNZ argued, when lobbying for the maintenance of the current mail service to the rural sector, rural customers are unique when it comes to connectivity. Their remoteness prevents them from popping down to the doctor, trade store or shop to pick up what they need. And despite the spread of the new technology, many in rural areas are either not connected to the internet or must still survive on a slow, dial-up service. According to Statistics NZ, about 78% of rural households had access to the internet in 2012. As mentioned, dial-up is a reality in the hinterland. Even when the Rural Broadband Initiative (RBI) is completed in 2017, only 86% of rural households will have access to it. It’s estimated that some 80,000 rural New Zealanders will still be without high-speed internet access. That makes it very hard to do simple business things like paying a bill online, internet banking and accessing electronic information. As Fed Farmers has rightly claimed, “rural delivery is a lifeline that right now they cannot afford to lose”. Or as RWNZ submitted, “rural post is a wraparound distribution service that is part of the fabric that holds rural communities together”. With NZ Post’s deed to be reviewed again in 2020, hopefully the rollout of ultra-fast broadband will by then have gone further in rural areas. Until then, it is only fair rural NZ keeps its lifeline to the rest of the country via a fiveday-a-week mail delivery service.

RURAL NEWS HEAD OFFICE POSTAL ADDRESS: PO Box 3855, Shortland Street, Auckland 1140 PUBLISHER: Brian Hight .............................................. Ph 09 307 0399 GENERAL MANAGER: Adam Fricker ........................................... Ph 09 913 9632 CONSULTING EDITOR: David Anderson .......................................Ph 09 307 0399 davida@ruralnews.co.nz

“The crackers we saved from last year have gone off!”

THE HOUND

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

Dejá vu?

Must be bad

THE HOUND SEES in the contest for the Alliance Group ex-MIE man Don Morrison is challenging current chair Murray Taggart and sitting director Jason Miller for the two seats up for grabs. Interestingly, for meat industry trainspotters, Miller was a member of the previous meat sector reform group MIAG when he first stood for the Alliance Board a few years back and ousted then sitting director Murray Taggart. Your canine crusader notes that since Miller has been a director not many of the so-called reforms espoused by MIAG have eventuated !

YOUR OLD mate reckons you’d have to be really bad news and toxic for Fonterra to tell you not to turn up to one of its publicity stunts. Let’s face it, the dairy giant has not exactly been a PR dream over the past couple of years with the botulism botch-up, the so-called dirty dairying issue and ever rising milk prices making it an easy target for bad headlines. However, even Fonterra’s less-than-stellar PR team recognised that the Auckland mayor Len Brown – in the midst of a tawdry sex scandal – would not be an ideal guest at its latest rollout of its ‘Milk for Schools’ scheme.

TECHNICAL EDITOR: Andrew Swallow ................... Ph 03 688 2080 PRODUCTION: Dave Ferguson ........................Ph 09 913 9633 Becky Williams ........................Ph 09 913 9634 REPORTERS: Sudesh Kissun ....................... Ph 09 913 9627 Pamela Tipa ............................ Ph 09 913 9630 Peter Burke .............................Ph 06 362 6319 SUB-EDITOR: Neil Keating ............................Ph 09 913 9628 WEBSITE PRODUCER: James Anderson .................... Ph 09 913 9621

Admission or reminder? A PAL of your old mate – who has a few cattle – recently learnt his ASD forms are out of date. Apparently, there’s meant to be a box for the NAIT number in the top right corner. What’s more, he should have been using such forms since May last year, and the MPI extension for using the old ones expired on October 31, he was told. The Hound searched NAIT and TB Free’s media releases to see when this new form requirement was announced – but drew a blank. Seems TB Free and NAIT forgot to tell anyone they’d need new forms.

Seriously?

Get a haircut!

THE HOUND nearly choked on his biscuits when he read yet another whiny media release issued by the Green Party, this time complaining about spying laws. However, what really made your old mate splutter was that it was issued by the party’s resident organic farming expert Steffan Browning who was not listed as its primary industries ‘spokesperson’ (they don’t have men and women in the Greens) but as the party’s ‘intelligence’ spokesperson. Surely it is oxymoronic to have the word intelligence and Steffan Browning in the same sentence.

THIS OLD mutt notes that the anti-Ruataniwha dam candidates – backed by disgruntled apple grower group GAG – who made it onto the Hawkes Bay Regional Council have failed at the first hurdle. The motley group, couldn’t garner the numbers to oust Fenton Wilson as chairman. Not the most auspicious of starts and the Hound suggests farmers in Hawkes Bay – many of whom turned up to support the Ruataniwha dam at the first meeting of the new HBRC – will be happy the GAG group has so far failed to scuttle the water storage project.

NATIONAL SALES MANAGER: Ted Darley .......... Ph 07 854 6292/021 832 505 ted@ruralnews.co.nz

WELLINGTON SALES REPRESENTATIVE: Mark Macfarlane .Ph 04 234 6239/021 453 914 markm@ruralnews.co.nz

AUCKLAND SALES REPRESENTATIVE: Stephen Pollard ....Ph 09 913 9637/021 963 166 stephenp@ruralnews.co.nz

SOUTH ISLAND SALES REPRESENTATIVE: Kaye Sutherland Ph 03 337 3828/021 221 1994 kayes@ruralnews.co.nz

TAURANGA SALES REPRESENTATIVE: Tony Hopkinson .. Ph 07 579 1010/021 949 226 hoppy1@clear.net.nz

ABC audited circulation 81,232 as at 30.06.2013

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

RURAL NEWS // NOVEMBER 5, 2013

OPINION 29

She’ll no longer be all right STACEY S H O RTA L L

‘SHE’LL BE right’ attitudes may be changing, but New Zealand farms remain hazardous places to work – 15 work-related deaths last year, and 408 serious injuries. Farmers are increasingly safety conscious but serious hazards persist from equipment, structures and livestock. Although many farmers are well aware of such hazards, they and their workers are killed and injured. So the spotlight is on farm workplace safety, as part of unprecedented scrutiny of workplace health and safety in the wake of the Pike River mine disaster. It promises to be the most comprehensive reform for 20 years. What will this scrutiny mean for you, the New Zealand farmer? First, think carefully about the hazards on your property. While the farm is both workplace and home for many families, keep in mind you have legal requirements even if you are self-employed. Although the law is undergoing substantial reform, those fundamental requirements are unlikely to change: you must work to eliminate hazards on your farm. For example, run the electric fence away from an unused pit or remove unguarded machinery from your property. If elimination is not practical, try to isolate the hazard. For example, fence off a creek or install machine guards. If such isolation is not practical, you are legally required to minimise the hazard and reduce the likelihood it will cause harm. For example, wear a helmet when riding a quad or motorcycle, or install slipresistance on wet floor areas. As an employer you must also keep a register of work-related injuries and serious harm, record and investigate harm

or near-miss incidents, and report serious harm incidents to the Ministry of Business, Innovation and Employment. And if you have authorised visitors on your farm, you must warn them of hazards that may cause serious harm. Also, a new regulator will soon be on the job. WorkSafe New Zealand will begin operating next year. More frontline inspectors will be at work, and the regulatory focus in farming will likely grow beyond farm vehicle safety such as quads. Expect these inspectors to make more random farm visits and issue infringement notices or fines for non-compliant farmers. The rule is that farmers must not cut corners on safety. Take stock of your machinery and equipment, livestock pens and paddocks, and farm sheds including the workshop. Proper machine guarding and regular equipment maintenance checks may help prevent accidents, as may ensuring that equipment, chemicals and machinery, are stored safely away. Similarly, cut risks by using personal protective equipment like overalls, gloves, boots, hats, hearing protection and safety eyewear. Consider your emergency preparedness, especially if hospitals and other medical providers are not readily accessible in your area. If an inspector comes calling, best you can show you have considered these matters and have a plan in place. The burden of ensuring legal compliance is not easy and knowing what specifically has been required to meet your obligations has been somewhat vague in the past. Although only time will tell how WorkSafe New Zealand will function to address health and safety in the agricultural industry, it is expected that the new regulator will work more closely

with industry to provide increased guidance. Meanwhile, increasing your focus on farming health and safety

practices is the way to go. A healthier and safer workplace should improve productivity and let us better use our Kiwi

ingenuity elsewhere. • Stacey Shortall is a partner in the litigation team at Minter Ellison Rudd Watts.

Minter Ellison Rudd Watts partner Stacey Shortall says on-farm accidents are no laughing matter.

RURAL NEWS // NOVEMBER 5, 2013

30 OPINION

All fun and games in dairy company takeover shenanigans FONTERRA IS the envy of many in the fragmented Australian dairy industry: one co-operative able to utilise its economies of scale to return the best price possible to its suppliers. There is a chance within the Australian industry at present to reduce the number of processors through the sale of the Warrnambool Cheese and Butter Factory (WCBF). This company in western Victoria has been the subject of takeover rumours since Australia’s largest co-op, Murray Goulburn, had its first tilt at a hostile takeover in 2010. Bega Cheese, based in southern NSW, bought 15% of the WCBF shares that same year, with its canny chief executive Barry Irvin joining the WCBF board. Irvin resigned from the board in March this year and, lo and behold, Bega Cheese made a hostile takeover bid in September of 1.2 Bega shares plus $2 for every WCB share, essentially valuing WCB shares at $5.78. Industry consolidation with the

added bonus of maintaining WCBF in Australian hands: it was a step in the right direction for many, although not the WCBF board, who told its shareholders to reject the offer. Its reasons became clear when it held a joint press conference with Canadian dairy company Saputo, which offered $7 a share in cash for WCBF. Charismatic board chief executive Lino Saputo Jnr said the company would invest heavily in WCBF so it could reach its potential. Saputo wanted a gateway to the Asia-Pacific region so the move would benefit both. A good deal for WCBF shareholders but a chance gone begging for industry consolidation. Until Murray Goulburn announced its cash offer of $7.50 a share. MG chief executive Gary Helou, a vocal advocate of industry consolidation, said the merged company, with

Charismatic board chief executive Lino Saputo Jnr said the company would invest heavily in WCBF so it could reach its potential. forecast annual revenues of at least $3.2 billion, would make it Australia’s third largest food and beverage company. It would also place the combined business among the top 20 global dairy producers. The combined milk supply of Murray Goulburn and WCB would be at least four billion litres in the 2014-15 financial year. Those economies of scale utilised by Fonterra could be applied. The merged company would have the production to underpin MG’s recent push into new Asian markets. Many in the dairy industry believed it was preferable to the addition of a new player. However, WCBF declined the offer

and waited until Saputo raised its bid to $8 a share. WCBF soon recommended it. WCBF shares, sitting at $2.50 12 months ago, are now pushing towards $8.50. When individual farmers own upwards of 100,000 shares, there’s a fair chance personal interest may take precedence over the national interest. And fair enough, as plenty have done it tough enough. Of course, our politicians are happy to vouch for MG and Bega. Whether their constituents are anti-foreign investment, or advocating industry consolidation, the pollies know they can’t lose with this stance. And they’ll have some sway too, as foreign investment is always a polarising debate. The Saputo offer is subject

to the approval of the Foreign Investment Advisory Board, and the company had not heard from the regulatory body when it announced its initial $7 share. The new Federal Government has already made the FIRB a political plaything, with the Prime Minister’s chief of staff (yes, an unelected official) reportedly vetoing the federal treasurer’s hand-picked advisor on FIRB matters. Although qualified, apparently he represented the wrong faction. It’s too early to say how this will play out, but if Australia is going to compete against the big boys from New Zealand, we need consolidation, which requires a successful bid from Bega or MG. And if we’re going to compete with the world’s biggest and best, we need a dairy processor in the world’s Top 20, which a merger between MG and WCBF would achieve. If Saputo succeeds with its bid at the expense of both, then it’s business as usual, and our industry isn’t in rude enough health for that to be an option.

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RURAL NEWS // NOVEMBER 5, 2013

OPINION 31 WHY CAN’T ‘FARM WORK’ BE A GOOD CAREER CHOICE? WHY ARE the John Stirlings of this world always viewing things through rose-tinted spectacles? (Rural News, October 22, p30).

There is no such thing as free accommodation; it’s called fringe benefit tax. A $35,000 salary divided by about 50 hours a week is less than the minimum

ag twits Rural News’ irreverent and hypothetical look at what’s happening in the farming world Top Bleats view all

hourly rate. Sure some workers can climb the corporate treadmill, but for three out of four workers this is not a happening thing. Four workers to one manager – four into one doesn’t fit. Then there is the cost to the upwardly mobile of shifting around the country every year or so – new school and school

uniforms etc. And no community involvement — working too many hours. Then there are the barriers erected by employers: won’t employ anyone under 25; won’t employ anyone over 50 (“You must be ….. useless if you are just a farmworker at your age”); won’t employ Kiwis. Why is it unacceptable to be a lower- / midlevel employee and stay

in the same job or area for most of your working life? Why does a worker have to change jobs to get a reasonable cost-of-living increase? Why is a farm worker, his partner and their children socially unacceptable? As a farm worker it is nigh-on impossible to participate in any sport, let alone watch your kids play or have any interest

outside work. You go on about sharemilking jobs; I put it to you that in this day and age of bigger and bigger farms, corporate ownership and existing sharemilkers taking on second and third jobs, the number of jobs worth doing by firsttime sharemilkers is very limited. The industry needs to stop treating young staff as

cannon fodder and burning them out so they exit after less than ten years. Make it a career until retirement, with the prospect of getting the work/life balance right. Make it OK to be just a farm worker for all of one’s working life. Mike Davies (farm worker for over 40 years) RD2 Darfield Canterbury

jwilsonfonterra: Hey @fonterrapr any ideas how we bounce back from the fake botulism scare and re-build our fraught relationship with China? #stumped fonterrapr: Well @jwilsonfonterra we hear that Auckland mayor @lenbrown is a bit of a master at developing intimate Sino/NZ relationships. Shall we ask him for advice? #2minnoodle jwilsonfonterra@fonterrapr: Great idea we’ve been caught with our pants down in China on a couple of occasions now and I’m sure clandestine meetings with @lenbrown in the Ngati Whatua room will go off with a bang! #alloverinaflash johnmcarthymie: Watch out SFF and Alliance we have MIE candidates standing for election to your boards. Watch the real meat sector reforms start. #gamechanger eiongardensff: Hey@ johnmcarthymie you should ask @mtaggartalliancegroup just how successful the last lot of grassroots meat reform directors have been at changing the industry since they got elected. #remembermiag damienoconnormp: Gee @davidjesuscunliffe is a wonderful leader and has a great eye for spotting talented, hard-working, loyal caucus members. #loveyoudavid davidjesuscunliffee@damienoconnormp: I most humbly agree. That’s why I have you positioned on the backbench right next to the exit doors! #nexttimebacktherightdavid thatguynathan: Things are going along swimmingly in my world. MPI is functioning exceedingly well, we’ve no issues with Chinese trading partners, Zespri is all hunky-dory and our biosecurity measures are imperishable. #deludedanddelusional

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johnpennosynlait: Who says foreign investment is a terrible thing for this country! This countryman is about to make multi-millions out of Shanghai Pengxin’s investment in Synlait! #creamingit fwilsonhbrc: Can I just leave all those members of the GAG group who did not support the Ruataniwha dam at the recent Hawkes Bay Regional Council elections with the following message: Na-na-na-na-na! #suckonthatlosers

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RURAL NEWS // NOVEMBER 5, 2013

32 MANAGEMENT

Blown away by BFEA field As entries for next year’s 10 regional Ballance Farm Environment Awards drew to a close, last year’s supreme winners of the Canterbury and national titles, Craige and Roz Mackenzie, held their winners’ field day. Andrew Swallow reports. VISITORS AT the Canterbury Ballance Farm Environment Awards’ 2012 supreme winner’s field day last month may well have felt somewhat ‘blown away’, in more ways than one. Not only was the farming on view an exposé of cutting edge precision cropping that earned Craige and Roz Mackenzie the BFEA national title, as well as the region’s top accolade, but a howling norwester whipped off hats and forced trailers to corral so speakers could be heard. But the show went on and as the day developed a dozen speakers divulged details on a diverse range

of topics, from the high tech of tractors that steer themselves and ‘talk’ to the farm office, to the down to earth matters of soil and water management. The common thread throughout was the Mackenzie’s farm, Greenvale Pastures, a 200ha cropping farm specialising in seed production. Introducing the day, Roz touched on the importance of the small seed industry to them and the region, which produces 50% of the world’s carrot seed, and 30% of radish. “We truly are a nursery to the world.” She also stressed the support seed companies, the bank, their farm advi-

sor, the Foundation of Arable Research and other organisations give their business. “We don’t take it for granted. It’s one of our unique advantages.” Later, Jo Townsend of Midlands Seeds, developed the small seeds theme, explaining how Canterbury’s fertile, irrigated cropping land and conducive climate for seed production is unique. Only the tip of Tasmania and a mountainous strip of South America are at the same 42 degree south latitude, mirroring the main seed production areas of the northern hemisphere. “We are very fortunate in our position on the globe.”

The region’s growers, the Mackenzies included, are “very, very switched on and conscientious,” she added. “But that all comes at a price and we are probably one of the most expensive producers in the world.” One of the expenses is pollination, field day MC Andy Macfarlane suggesting the going rate is now over $1000/ha as he introduced another speaker, 2012 BFEA Canterbury winner, farmer and beekeeper, Dan Shand. “It’s important not to overlook bees,” said Shand, who outlined the $5 billion role bees play in New Zealand’s economy. For all the precision

Corralled trailers: Craige Mackenzie talks behind the windbreak.

applied elsewhere in growing a crop, it could all be for nothing if pollination failed. “They are an integral part of precision agriculture,” he stressed. Craige Mackenzie picked up the theme, talking about 10.5ha of carrots for seed, sown last February for harvest next March-April. “So they’re a long crop, and there’s a bit of risk involved.” GPS on the sprayer

makes night applications possible, “so there’s no risk to bees”, and a strip of borage planted down the middle of the paddock is being trialled as a way to help keep the pollinators in the crop. “It’s all about pollination. If you don’t have pollination, you don’t have any carrot seed.” Farm consultant Ross Polson said carrot seed costs about $5000/ ha to grow so if it didn’t

gross over $10,000/ ha, it would struggle to be in the system. He questioned whether, at 300m above sea-level, Greenvale Pastures was the right place to grow it. “Comparative advantage is the key to me and unfortunately I don’t think this is the right area for it.” Chicory is another seed crop the Mackenzies grow, a crop that in its pastoral role has become

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RURAL NEWS // NOVEMBER 5, 2013

day

MANAGEMENT 33 FARM DETAIL ● 200ha arable, specialising in seed production ● Mayfield and Hororata silt loam soils ● 900mm/year rain plus irrigation

“a great innovation for New Zealand,” Agricom’s Allister Moorhead told the field day, relaying lamb growth rates of 280g/day on the crop, compared to 200g/day on lucerne and 100g/day on ryegrass off the same farm. Delegates similarly heard about both sides of the Fescue industry: the Mackenzie’s seed production and beef producer Tom Hargeaves use of it to finish bulls.

● 287-315m above sea-level, near Methven ● Extensive use of variable rate technology to fine-tune inputs ● Other business interests in dairy, precision agriculture and fertiliser application research.

“In our best month we’ve done about 2.7kg/day.” Mackenzie’s fescue seed is grown under irrigation, with water volume adjusted according to soil type as the pivot traverses the paddock,

just one of many precision farming approaches deployed on the farm. Soils have been grid sampled so variations in nutrient and pH status can be corrected; nitrogen rates and other inputs, such as

plant growth regulators, are tuned on the move by machines that read the crop’s colour. At a more basic level, on their neighbouring dairy farm GPS spreading maps uploaded to contractors’ machines eliminate any risk of fertiliser going on in the wrong place, or at the wrong rate. “And when they’ve finished they just hit the button, sending the spreading information to the office so we’ve got accountability there.” On the cropping farm, their tractor-mounted spreader has on-board scales and variable spread rate capability, so exactly the right amount is loaded and spread with no left-

overs. The Mackenzie’s plunge into all things precision has spawned a spinoff business, Agri-Optics, selling various services and managing data for clients. But it all started with yield mapping on the header, a near standard feature on modern machines these days. “We found a lot of variation on the farm and needed to deal with it,” commented Mackenzie. Yield maps were made into profit maps and it “was like turning a light on.” In 2009, for example, returns from a ryegrass seed crop averaged $4679/ ha, but the best areas did $9281/ha, while the worst lost $1300/ha. As Tristan Leov, of John Deere dealer Drummond

Opening comments: Rox Mackenzie welcomes the crowd.

& Etheridge, pointed out, every time a vehicle or machine enters a paddock, there’s the potential for it

to be gathering data. Mackenzie stressed the key is to manage the data effectively so it drives actions.

Don't be daunted

Seed crop: carrots are among several the Mackenzie's grow.

Making some introductory comments to the day, Associate Minister for Primary Industry and local MP Jo Goodhew encouraged visitors not to be daunted by the level of farming they saw. “ The challenge is that everyone takes a little something

away from today.” Canterbury judging team coordinator James Hoban touched on a similar theme. “To have a farm as intensive as this win the Ballance Farm Environment Award is a pretty special thing... we’re not saying this level

of technology is where everyone needs to be to be sustainable… but it’s world leading and that needs to be recognised.” Nonetheless, “there should be something here you can take home and apply to your business,” he said.

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RURAL NEWS // NOVEMBER 5, 2013

34 MANAGEMENT

Enviro gains costly and Whatawhata Hill Country Research Station, Waikato, held a one-off field day last month relaying over a decade’s analysis of management changes aimed at cutting the farm’s environmental impact and improving productivity. Sue Edmonds reports. IN THE year 2000, the 805ha (270ha effective) Whatawhata Hill Country Research Farm run by AgResearch was providing no more than 2% return on capital. There were significant erosion problems and its dense, 20km

network of streams carried sediment, nitrogen and E.coli to the Waikato River. What remnants of native woodland remained had low biodiversity and bare ground underneath from animal access. However, a multi-

stakeholder oversight group, consisting of farming, forestry, policy, science, Maori and conservation interests had been at work since 1996 creating an Integrated Catchment Management design. By 2000 they’d produced

a plethora of visions, goals and performance indicators, assessing the current state and identifying priorities for progress. Six over-arching goals were selected: to run a sustainable business, with healthy ecosys-

Whatawhata enviro and economic indicators.

Indicator

Old System

Benchmark

New System

Soil fertility (Olsen phosphate)

17

25

23

Pasture production (tDM/ha/yr)

9.5

12.1

10.00

Sediment export (t/ha/yr)

2.86

0.44

0.69

Phosphorus export (kg/ha/yr)

3.0

0.8

1.2

Indigenous plant diversity (species/plot)

20

34

28

Lambs % weaned

109

120

124

Cattle gross margin ($/ stock unit)

46

58

82

Annual farm surplus ($ha/grazed)

181

253

285

tems, protecting landscape values, partnering with community and regulatory bodies, producing demonstrable environmental performance, and aiming for adequate rural infrastructure. Subsequent research by NIWA, AgResearch, Beef + Lamb NZ, NZ Farm Forestry Association, Waikato Regional Council and the NZ Association of Resource Management, has produced around 75 papers covering the whole system, water quality, stream ecology, hydrology, pastoral system and terrestrial ecology. In 2008 the land became part of the Treaty settlement with Tainui,

NIWA’s John Quinn explains water quality work underway.

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MANAGEMENT 35

slow and the forested land is now part of a joint venture between AgResearch and Tainui Development. As the 100 or so visitors to last month’s one-off field day on the farm saw, environmental management work has been of good quality, but that’s come at a cost. Over 10 years an estimated $600,000 has been invested in tree planting and pruning, riparian fencing 10m wide strips, and replanting a 15ha of native remnant, all on land purportedly worth $740,000. Stock policy has shifted to bull beef, bought in as weaners and sold at 18 months, and the sheep flock changed to a composite maintained with bought-in two-tooth replacements, with resultant increases in productivity (see table). There has been an enormous amount of work done on water issues during the decade. Stream behaviour and width in what was open pasture has changed dramatically where pines, poplars, and natives now provide shade. Once narrow, with much silt residue at the banks, the shaded streams now have more consistent temperature, and are becoming wider and slower as trees take up water and banks become covered in vegetation. There is still some E.coli present due mainly to pest animal life around the trees, but water is clear and little sediment moves apart from during storms. In wooded areas understorey vegetation and saplings are reappearing on what was bare earth when stock had access. Around a large waterfall at the bottom of the farm, aquatic life is also recovering, but only slowly. There’s talk of using mussel ropes or similar to help whitebait climb the streams. Twigs

and fallen wood will eventually naturally foster stream life, providing the hiding and resting places fish, crayfish and longfin eels need to increase in number, but that will take decades by natural processes so installed treefern log barriers are being tested. A challenge for such environmental renovation is the cost, given the low returns in farming such environments, a point acknowledged at the field day by Waikato regional councillor, Stu Kneebone. “The cost of riparian fencing in these multistreamed environments is something that local, and perhaps central government, will have to consider, as to who will pay and how it will be done,” he said. Not all native species will thrive in any one environment, and choosing the right ones, and paying what can be a considerable cost per sapling, will also be difficult for individual farmers. Farm forestry with pines may provide a clearer economic pathway, but even then there are substantial management costs to be financed during the 20 or so years’ growth and land used is often steep, making it difficult and expensive to harvest. Plans should include extraction methods and associated resource management consents for roading, as well as repayment of carbon credits. “It may be more sensible and profitable, given carbon prices, to designate very steep country as permanent forest sinks, earning at least some carbon credits,” John Simmonds, WRC commented. So, to summarise the field day: lots of research; lots of ideas; better farm productivity but no magic bullets for hill country farming just yet.

The field day crowd enjoys the view.

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36 MANAGEMENT

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Complete diet: just add fibre, says Lincoln University researcher Jim Gibbs (inset).

Boost beef with fodder beet ANDREW SWA L LOW andrews@ruralnews.co.nz

FODDER BEET can deliver a double dividend with beef cattle, cutting wintering costs and improving liveweight gains, farmers at a recent Beef + Lamb New Zealand Beef Profit Partnership (BPP) field day heard. With yields of up to 25tDM/ha and little or no supplement needed, it’s “by far the cheapest” winter cattle feed, Lincoln Univerity’s Jim Gibbs told the field day at Redcliff Station, in the Rakaia Gorge, Canterbury. “People say fodder beet’s an expensive crop but that’s because they’re not used to the expense up front,” says Gibbs. “The reason it’s cheap is because you can grow a big crop. That extra $400/ha cost is easily swallowed up in the difference between a 16t/ha [kale] crop and 25t/ ha [beet] crop.” And while winter feed may be the initial motivation for most to try the crop, Gibbs says it can be economic to feed anytime from February through to October,

or even as late as December in some areas. The early feeding window can dovetail with weaning calves earlier than is traditional, another practice the BPP field day heard is helping improve productivity. Whatever the season it’s used, beet’s ME remains relatively constant, says Gibbs. The penalty for going early is yield foregone, as a good crop might be 16tDM/ ha by March, but will reach 25tDM/ha by winter. Grazed in situ at 25t/ha the feed cost works out at about 8c/kgDM and, provided tops are still on the crop, it’s almost the complete feed, says Gibbs. All that needs to be fed with it is 2kg/head/day of fibre such as hay or straw. The importance of the tops is they provide protein, balancing the high starch bulb. Contrary to some advisors’ recommendations, he’s adamant there’s little or no benefit to offering an allocation of kale or forage rape alongside the beet. “All you are doing by offering rape is lowering your yield and raising your cost.” If meadow hay is offered as fibre, then TO PAGE 37

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ANIMAL HEALTH 37

FMD prog to plug biosecurity gaps A N D REW SWA LLOW

DAIRYNZ SAYS MPI’s 18-month Foot and Mouth Disease (FMD) preparedness programme (Rural News, October 22) will address gaps in New Zealand’s biosecurity system. “It is critical to be

well prepared for what’s probably the most serious potential biosecurity threat to our industry,” says DairyNZ chief executive Tim Mackle. “Recent events, such as the outbreak of Theileria and associated anaemia in cattle, and bovine

tuberculosis outbreaks in dairy herds, highlight the on-going risks to the industry from animal diseases. These diseases can result in significant animal welfare issues, costs, and stress to farmers and the wider economy.” Mackle believes the

FMD programme will lift MPI’s capability to deal with biosecurity threats in general, and notes over $16 million/year of dairy farmers’ levy money is invested in disease prevention, mainly in the TBFree programme. Mackle’s comments

follow last month’s announcement by MPI that a group of ten vets, farming leaders and MPI staff would undergo FMD training in Asia next year as the latest initiative in the programme. The programme will also see resources includ-

ing personnel for an FMD response mapped, an agreed stakeholder notification process developed, carcass disposal and recovery plans made, and trade action agreements sought. A vaccination workshop was held in September and a

Tim Mackle

Trans-Tasman action plan announced in May.

Throw out old ASDs says OSPRI IF YOUR book of Animal Status Declaration (ASD) forms doesn’t have a box for your NAIT number in the top right corner, you need to order new ones, like yesterday. The form was updated in May 2012 and the Ministry for Primary Industries’ extension to permit use of the old one expired November 1, 2013, OSPRI (Operational Solutions for Primary

Industries – the body formed from the merger of AHB and NAIT) said in a “reminder” media release sent late October. New forms can be ordered or downloaded at www.tbfree.org.nz (click on Herdownders’ Tools); e-mail info@tbfree.org.nz or call 0800 4824636. No NAIT box?

Beet fodder FROM PAGE 36

that provides enough extra protein even for growing animals, he says. Straw is suitable as a fibre source, but very low protein and energy mean it shouldn’t be used during the transition phase or stock will effectively be starved, he warns. “They’re going to jump the wire [to get at feed]. They won’t do that with meadow hay.” Full-grown cattle need a fortnight transition onto beet; calves about 10 days. Gibbs suggests starting with a ration of 6-7kgDM/head as silage, plus 1kgDM of fodder beet, and every second day increasing the fodder beet allocation by 1kgDM. A proviso for good stock performance on beet is not to let paddocks get too pugged. “I don’t think cattle do well in mud.” Harvesting and feeding on a pad or dry pasture is an option, but utilisation in situ is typically very close to 100%, he notes. Vaccination against clostridial disease is recommended, even with cows if ad lib feeding. “Young stock have got to have two clostridial vaccines. They’ve got a lot of sugar roaring through them.”

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38 ANIMAL HEALTH

Stock movement monitoring call RURAL NEWS’ article ‘Rangitata TB came from West Coast’ (October 22) reports TB Free’s state-

ment that two recent outbreaks of TB in South Canterbury cattle were “a West Coast strain.” Clearly it was too far for a possum or a ferret

to carry it and yet TB Free has firstly rounded up 1000 possums in the infected area and tested them at enormous cost.

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This strain has also reached the North Island, again via stock movement, and yet TB Free gives all its attention to possums. In the article TB Free admits cattle movements are practically untraceable. As Kevin Crews from TB Free tells it: “The traceback is proving quite fraught in its complexity….” It is much easier to imagine that the local possums have carried the disease than it is to try and locate the source of infection through the “maze of stock movements uncovered by investigations into recent (Tb outbreak) cases… in Taranaki (6), Waikato (2) and Northland.” TB Free invests tens of John Veysey millions of dolAt present it is easy to lars each year into transport all kinds of clopossum research and possum control and, judg- ven-footed animals from a non-TB area into TBing from the results, none infected land and later of it seems to have made to return them to their the slightest difference to the risk of TB in NZ. Nor is original farm to lean over the fence and lick it likely to. All the TB outbreaks in the neighbour’s cattle. These movements are not recent months have been noted by TB Free. traced to cattle moveThe dates and locations ments, as have all local TB are written on an anioutbreaks in the last few mal’s movement card but decades. no one gets to see this card Farmers involved in these outbreaks are seeing until the animal is sold. TB for themselves that money Free is not taking notice. NZ’s animal movespent on possums is doing ment restrictions are nothing to reduce the risk notoriously lax. Last year of TB transference.

Not guilty?

TB experts from UK remarked on how little AHB involved itself in control of stock movement. AHB has now become TB Free and the disease seems to have been set free again. Maybe this explains the meaning of AHB’s new title! In TB Free’s reaction to the latest outbreaks there is no mention of tightening movement restrictions; no mention of movement control at all! “The herd infections were no fault of the South Canterbury farmers” says Kevin Crews. If allowed, TB Free will continue to spend tens of millions of dollars a year on possums and on DNA testing. The DNA testing has already identified more than 100 different strains of TB which, so far, has only made the traceback investigation more bewildering than ever.

While stock movements continue to be unmonitored there seems little point funding TB Free. Farmers can move animals pretty much at will and TB Free seems to show no interest until there is a new TB outbreak. “It’s just the way the modern dairy industry operates with new conversions and herd expansions” says Kevin Crews. Farmers who have already come to the understanding that they cannot expect our country to become TB free, like Australia, until something is done to control stock movements have every right to be angry at the amount of Tb levies they have had to pay being squandered in such an unhelpful direction as possums. • John Veysey is an ecological adviser managing the central segment of Coromandel’s Landcare Association.

in

ce

198

7

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ANIMAL HEALTH 39

Calf suppliers could do more, but rearers also need to accept weaknesses of their systems, says specialist Bas Schouten (inset).

A N D REW SWA LLOW andrews@ruralnews.co.nz

A SUGGESTION in Rural News’ sister paper Dairy News that calf rearers should blood test to check colostrum intake has some merit, but needs refining, says specialist calf vet, Bas Schouten. “The only way I could see a diagnostic test working is if it was done on the supplying farm before any money, or calves, changes hands. Otherwise it becomes very messy,” Schouten told Rural News. The Dairy News column, by Rotorua-based rearer Trish Hosking, relays how a switch to buying direct from farm instead of through saleyards worked well initially for her this year, but came unstuck with a couple of batches of later bought beef-cross calves. Blood tests for immunoglobulins indicated inadequate colostrum intake, despite assurances from suppliers to the contrary. “My suggestion to rearers is, if calves fail to thrive, get blood samples done,” Hosking wrote. Schouten believes such tests have a place but ideally they should be prior to sale to prevent problems arising, rather than as a dispute resolution tool. Used prior to sale they could form part of a wider warranty or “signature class” for calves. Suppliers offering such an assurance should be able to command a modest premium in return. The concept is something Schouten has been advocating for years, but to date, has failed to gain traction. “The problem is the vendors just

don’t care.” In general, stock agents and saleyards have similarly failed to grasp the nettle on improving the quality of calf offered to rearers, he claims. Other warranty requirements for “signature class” calves might be birth to a rotavirus vaccinated cow; hence the calf should be immune to the most common killer and freedom from other ailments such as navel infection. Some leading rearers already have such arrangements with suppliers, though few are formalised in written contracts, says Schouten, who’s even heard of rearers providing rotavirus vaccine to dairy farmers to ensure the bull calves they’ll subsequently buy are protected. “It’s a win-win for everybody,” says Schouten. The rearer gets immune bull calves, while the supplier’s replacement heifers are also protected at the rearers’ cost, he explains. Other good examples of best practice relationships are the contractual

requirements to supply bull calves to some meat company schemes, or dairy heifers for export, he notes. “These people are starting to understand each other.” However, many bull calf vendors still don’t care about the quality of stock they sell and rearers who haven’t built relationships with reliable suppliers should take a “buyer beware” approach, Schouten says. Equally though, some rearers need to take more responsibility for their own situation, as many repeatedly seek to blame disease outbreaks on external factors when in fact the main cause may be much closer to home. “They all seem to think that because they’ve done their utmost, it’s not their fault.” One measure more rearers would do well to adopt is vaccination on arrival for salmonella, or better still, when the calf leaves the supplying farm. “By the time you wake-up to the fact you’ve got a salmonella outbreak you’ve lost 30% of your calves.”

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Testing details There are two main tests for immunoglobulin levels in calves, says Schouten: serum protein tests, which come in at about $40 each; and the GGT “quick test” which can yield a result in 12-24 hours and costs about $4/sample – though blood collection costs and delivery for testing must be added to that. A GGT result of over 200 international units is an indication the calf had adequate colostrum and early enough for it to be absorbed (within 12 hours ideally). However, a good result would be 500 to 3000, he adds. A GGT result of less than 100 in a week-old or younger calf is an indication it had very little colostrum. Ideally the test should be done within the calf’s first week as after that its own immune systems start to kick-in, masking the mother’s influence.

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RURAL NEWS // NOVEMBER 5, 2013

40 ANIMAL HEALTH

Consultation on housed cow code

Generic monensin launched DONAGHYS IS launching a new version of rumen modifier sodium monensin, the active ingredient of Rumensin products. Branded as ProMonensin 60, the ionophore improves feed conversion efficiency in the rumen, boosting body condition and milk production, says the New Zealand-owned firm. Improved cow condition can cut energy related diseases such as ketosis and coccidiosis, and reduced rumen gas in treated cattle aids bloat prevention. “Most farmers have been using Sodium Monensin for years yet have not known it by that name” says Donaghys chief executive Jeremy Silva. Patents on ProMonensin’s formula and manufacture process are pending but Donaghys says added ingredients improve delivery of the active. One of the main carriers is a corn derivative, sometimes used as a sugar substitute, so it makes the liquid more palatable. The organic solvent formulation is also lower viscosity than comparable products meaning it dissolves faster in water, providing easier mixing and handling for pouring and administering. Donaghy’s says ProMonensin 60 is its fifth patented product release in two years, with more to come. It will be made on a new line at the firm’s Dunedin plant.

A N D REW SWA LLOW andrews@ruralnews.co.nz

A PUBLIC consultation on proposed changes to the Animal Welfare (Dairy Cattle) Code of Welfare 2010 is underway, including a proposed new section on off-pasture management systems. Flagging the growing number of feed pads and barns in the New Zealand industry, chair of the National Animal Welfare Advisory Committee (NAWAC) John Hellström says he expects “a lot of interest on this issue. “Farmers are already seeing the benefits of these systems in effluent management, feed intake monitoring, winter shelter and pasture protection. However, facilities have to be designed and managed with the welfare of the No limit on the duration of animals in mind,” he says. housing cows is proposed. NAWAC reviewed the 2010 Code to address However, it will require those using dairy concerns about long-term housing of dairy cattle at the request of the previous Minister housing and other off-pasture management systems to ensure cattle have room to move for Primary Industry, David Carter. As a result of the review, it’s proposed about and can lie comfortably for at least eight amendments – including a new section on hours/day. NAWAC says it has behavioural needs for all dairy worked with dairying, cattle, regardless of whether science and veterinary they’re on or off pasture – and A new minimum experts on the proposed sections 4.4 (Stand-off Area and standard on changes and the review Feed pads) and 4.5 (Housing was based on “a substancows and calves) are replaced behavioural tive animal welfare risk with a section dedicated to off- needs for all dairy assessment of off-paspasture management systems. ture management systems NAWAC is not recommend- cattle – calves, in the New Zealand dairy ing a restriction on the duration replacements and of housing cattle, but says that bulls as well as cows industry.” “It’s important that farmers must manage cows’ people express their specified physical, health and – is also proposed. views on these proposals behavioural needs. so that we can ensure any A new minimum standard on behavioural needs for all dairy cattle – calves, new minimum standards reflect not only best replacements and bulls as well as cows – is also practice, but also New Zealand’s animal welfare proposed. This is not expected to affect farm- expectations,” says Hellström. The review has also seen section 3.4 (Growers using pasture-based systems, because they will already be meeting the requirements, says ing Dairy Cattle) in the 2010 code deleted due to “out-of-date and inappropriate guidance” and NAWAC.

IN BRIEF

John Hellstrom

because the subject is covered by other parts of the code. NAWAC says it is only accepting submissions on the proposed amendments and not on other aspects of the code at this stage. When all the feedback has been considered it will recommend an amended code to the Minister for Primary Industries. Submissions will also be used to inform future advice to the Minister on regulations for livestock housing, which will be possible if the Animal Welfare Amendment Bill – which is currently before the Primary Production Select Committee – is passed. The proposed changes are available at www. biosecurity.govt.nz/biosec/consult. Closing date for submissions is December 3.

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RURAL NEWS // NOVEMBER 5, 2013

42 ANIMAL HEALTH

Lepto not just about dairy P E TE R BU R K E peterb@ruralnews.co.nz

ONCE LABELLED as a dairy industry problem, the risk from leptospirosis is something drystock farmers, as well as meatworkers, should heed, says a Massey University specialist. Jackie Benschop is part of a team of researchers from Massey working on the disease and who gave a presentation at a Rural Woman New Zealand function in Wellington last month. She says meatworkers at the intake end of plants are at risk from the disease which is transmitted by urine from infected animals getting into cuts and abrasions, sometimes from wool. Farmers working with sheep and deer in yards face similar risks. Typically there are 110 human cases/

year of the disease notified in New Zealand, but Benschop says it’s likely many cases go unreported. For dairy farmers, vaccination of stock is an option, reducing the risk of the disease’s production impacts: infertility, abortion, and reduced milk output. But the vaccine should be administered “sooner than [farmers] think,” says Benschop. “With the calves it’s as soon as we think they can respond. We have to time that with when the immunity from the mum winds down. It’s not days after birth – probably we are looking at around about eight weeks for the first of three jabs. But I have to impress on them it’s an area of future study. We need to do longitudinal studies in herds to determine that time.” The cause of the disease is a spiro-

Rural Women funding RURAL WOMEN New Zealand has been raising funds for research into leptospirosis since the 1970’s, contributing over half a million dollars over the years. “This particular [Massey] project strikes a chord with us because it is rural, family and community based and has an animal welfare component and education focus,” says RWNZ president Liz Evans. “It ticks all the boxes for us.”

Jackie Benschop

chaete bacteria which loves moisture, and is excreted in urine from infected animals. “So if a splash of urine or contaminated water gets into the bloodstream what generally happens with people is they feel they have got a really bad dose of the flu. It can progress quite quickly to being quite a severe disease.”

Early treatment with antibiotics is effective, but the problem is early diagnosis, given the confusion with flu. “Doctors talk to me about the ‘golden week’ where if they know it’s lepto they give antibiotics,” she says. Not smoking or drinking in dairy sheds and wearing an apron is advised to minimise risk of infection.

‘Zom-bee’ parasite spreads across US A NEW threat to honey bees is spreading through the US: ‘zombees’. San Francisco State University has reported a first US East Coast find of the parasitised bees, which abandon hives and congregate at night near lights with disoriented, zombie-like behaviour. Previous reports were limited to the West Coast and South Dakota. The parasitic fly responsible, Apocephalis borealis, also appears to have expanded its host range to include the non-native honey bee. There’s also an indication the fly may have reached Belgium. “No one there has found the fly yet, but if it is there, it has to have been transported by humans,” Biology professor John Hafernik, who first identified the fatal zombee condition in 2011, told Rural News. – Alan Harman

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RURAL NEWS // NOVEMBER 5, 2013

44 MACHINERY & PRODUCTS

Grain feeders beef up farmers’ returns Wider cut given A REAR-MOUNTED mower uses a new middle attachment to cut even wider, says the New Zealand importer. CB Norwood Distributors says despite the large working width (4.5m) of its Fella mower, the machine’s centre mowing unit – attached right at the rig’s centre of gravity – enables it to adapt nicely to ground contours. The key to this is the maker’s TurboLift system that relieves the hydro-pneumatic load on the cutter bar. This system uses an innovative control device to enable adjustments to the contact pressure to be made quickly, simply and without tools. In addition,

the system is automatically calibrated at every headland and, as a result, any undesired change to ground contact pressure is immediately corrected. The floating cut suits the cutter bar well to a huge range of operating conditions, CB Norwood says. “The easy-to-use reduction of the contact pressure when passing through damp or wet areas prevents the forage from becoming contaminated and ensures the sward remains undamaged. In addition, the frame structure and the skids carry less load, meaning less wear and drag resistance reducing tractor fuel consumption.”

FINISHING CATTLE with a grainassisted diet has generated more kilos of beef and improved profits for young Masterton district farmer Matt Wyeth, reports Advantage Feeders. Always prepared to try something different, Wyeth decided to test his reasoning that cattle would perform better on a more balanced diet, the company says. “He was pleased with the results of a trial comparing cattle finished on a brassica crop and another mob which also received a kilo a day of a grain-based ration. “He achieved an excellent 2:1 conversion of feed to liveweight gain, the cattle putting on about an extra 500 grams daily over the last 50 days before slaughter.” The weight gain, averaging 1.5kg compared to 1kg on crop alone, was worth an extra $1.25, providing an attractive return on his outlay of 70 cents/kg to buy customised grainbased nuts, says Advantage. Wyeth first used Advantage feed-

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ers among his sheep, and the results are said to have prompted him to try them on cattle. “The feeders are robust with a large holding capacity and dual adjustable slides so you can accurately control the ration stock are getting.” His cattle have traditionally been strip-fed a brassica crop for about the last 50 days before slaughter in about mid-August, with an average daily intake of about 9kg. The crop was analysed to determine the nutritional balance needed; the nuts have been helping boost carbohydrate intake. “I’ve been pleased with the results. The diet is better balanced and gives improved rumen utilisation.” The cattle are reported to have taken readily to the introduced grain ration because Wyeth had already begun using the Advantage Feeder units in his weaning regime. He has been practicing yard weaning, penning the calves for five-seven days, and is pleased with the results

While penned they are fed an ad lib diet of baled silage and a grain ration based on milled maize and barley with trace elements. “We add magnesium which helps quieten the calves and reduces stress levels. Instead of going backwards at weaning, they are putting on weight and bound ahead when back on pasture. “We find there are advantages over paddock weaning: the cattle become quieter and easier to handle and there is no growth check.” Wyeth’s 1000ha property Spring Valley supports about 600 Angus cattle and 10,000 high performance sheep. He bought his first Advantage feeders when he adopted a short term housing and grain-based feeding strategy for triplet bearing ewes just before lambing. “We’ve got six Advantage feeders now and between the sheep and cattle they are in use much of the year. They have proved to be a good investment.” www.advantagefeeders.co.nz

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RURAL NEWS // NOVEMBER 5, 2013

MACHINERY & PRODUCTS 45

Trusted tractor brand runs in family ANDREW COOMBE grew up with Massey Ferguson on his family’s farm at Te Aroha. Now he and his wife Anita own two dairy farms in Otorohanga and three MF tractors. One farm milks 440 cows and 15km down the road is a new conversion with 250 cows. Each farm has a 100hp MF 5445 with a Stoll loader for general farm work and feeding out; Coombe uses an MF 6465 to do the groundwork on both properties. The two MF 5445s have roll-over protection but no cabs. “I didn’t want cabs with the farm staff driving them. When there is no cab, there’s no clutter and it’s easy to hose down and keep clean.” Coombe says the farms have some steep land and the MF 5445s have good power on the hills; low centre of gravity keeps them stable. They have Massey Ferguson’s Dyna4 transmission which provides four ranges each with four powershifts. The driver changes gears with a flick of a lever, and the MF left hand ‘power controller’ gives them the flexibility to change gear and direction using just the left hand. On the Coombes’ bigger farm, the tractor feeds out 300-400 bales and 200 tonnes of maize silage over winter. It has a one-tonne maize bucket on the front and lifts it easily. A double pump system on the hydraulic

oil flow gives more power to cope with the loaded bucket or when tipping a heavy tip trailer. The MF 5445 is heavy enough to stay balanced even with the weight out on the loader. On-board weight scales ensure the cows receive the correct amount of feed. The tractor on the newly converted farm was used during the conversion and still has the post rammer on the back. The MF 5445 is a simple tractor, just what Coombe wants, he says. “I wanted a good basic farm tractor that’s reliable. I show new staff what’s what and they grasp it pretty quickly.” The tractors were both bought new last Christmas from Waikato Tractors. “Their service is really good. The salesman Neil Lawrence knows his stuff and if he doesn’t, he finds out. He calls in from time to time to see how they’re going.” Two years ago Andrew and Anita bought a new MF 6465. “I’d had a 5465 and wanted something more ‘specced up’. It has cab suspension, front axle suspension and autodrive.” Coombe uses autodrive all the time to preset the engine speed for gear changes – like driving an automatic, he says. The MF 6465 is 130hp from a 6.6L 6-cyl. engine. Coombe uses it

to put in 20ha crop every year, mainly maize and chicory. He also uses it for undersowing. It tows the seed drill, spreads the fertiliser and does contract raking, baling and wrapping. It has a GPS unit used for spraying with a 12m boom. The MF 6465 travels between the two farms

and has a 50km/h road speed, increasing efficiency. Coombe says he is sticking with Massey Ferguson. “I like them. I like the gearbox and they’re as fuel efficient as any other tractor I’ve driven. The control layout is good and they’re comfortable.”

Andrew Coombes uses two MF 5445s for general work on his dairy farms and an MF 6465 for cultivation, drilling and undersowing.

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RURAL NEWS // NOVEMBER 5, 2013

46 MACHINERY & PRODUCTS

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planned ride on the Taihape hills in late July. Travelling 80km the quad got a good workout. And we had the old model alongside, for close comparison. Can Am’s website describes the 500 G2 as new from the ground up, including alterations to the already strong chassis. It is significantly quieter; a common complaint is that auto quads are noisy, but you can’t complain about this one. Combined with the new generation suspension (G2), this machine cossetted this rider over all sorts of terrain, some of it very steep and rough. Some of the riders grumbled they mightn’t function too well the next day. But your reviewer, who admits to not being very fit, scrubbed up well the next day with no aches or pains, yet I rode quite hard at times. Interestingly, the old model used 1L more petrol over the distance than the new one, yet I rode the new model much harder. The fuel injected Rotax engine on the Outlander G2 has 10hp more grunt – out to 46hp. That’s a lot on a 500cc machine, and you notice the extra power. But Can Am has used the 2-key option on this machine. On this ride the grey key was the bosses’ key, giving all the

The Outlander 500 G2, a quiet and classy ride.

power and torque, and the black key was the boys’ key, resulting in a detuned machine with a slower top end and less acceleration. Even so, there is still plenty of grunt there for towing and getting around with the hefty torque of the 500cc V-twin engine. On the older machine it was sometimes a struggle to hook an implement to the towbar. The new quad has a longer and detachable tow bar – a huge improvement. The quad has redesigned plastics giving it a sharper, more aggressive look. The dash is updated and comprehensive; the key is repositioned on the left front guard, more accessible. The gear selec-

tor remains on the right hand side. Parking the two machines side by side, the dimensions are similar, but the seat height has increased slightly. I put this down to firmer padding, but even after a hard 80km it was still comfortable. The Outlander G2 has redesigned suspension and, like the former model, suffers no crap and mud build-up on the suspension arms. The new Outlander gives an even better ride, and traction on the Carlyle tyres is exemplary. We were tearing along tracks, and suddenly a cutout would appear ahead; whoa! The Can

Am amazed me, cruising through the dips with no vicious steering feedback or violent bouncing. The power steering helps, but the suspension setup is truly forgiving. Other riders commented on the Outlander’s capabilities: stability is great, as although the Outlander may be higher than some other brands, it is wider and longer, a benefit to ground clearance on the muddier tracks we rode. Pricing is similar to the old model, and this machine compares favourably, beating other 500cc offerings on price, power and comfort; it even has some larger quads in its sights.

RURAL NEWS // NOVEMBER 5, 2013

MACHINERY & PRODUCTS 47

Training a key factor to company’s growth WAIKATO BASED Power Farming Group, New Zealand’s largest supplier of tractors and farm machinery, has launched a training strategy to enhance its sales staff’s ability to meet customer needs. ‘Power Days’ involves intensive week-long training at Morrinsville and Timaru.

getting into and operating machines in the paddock, so they become fully accredited Deutz-Fahr specialists. “They’re not just driving a tractor around the carpark. They’re getting out into the field and operating them with equipment such as power harrows, disks, front load-

ing over the next two or three years, and if we’ve got a well trained, skilled sales force that under-

“We want all our sales staff to be experienced, skilled operators of the gear. It’s being able to give customers good first-hand knowledge, because our guys really do know how it all works.” Sessions are run by Power Farming New Zealand specialist staff, by experts from its Australian operation and by Deutz Fahr technicians flown from Europe. Outside specialists are brought in to cover more specialised subjects such as tyre operation and maintenance, finance and professional sales training. The scheme is part of Power Farming’s strategy to support its Deutz-Fahr tractor franchise. This has also prompted the group to spend tens of millions of dollars on a new headquarters in Melbourne for its Australian operations, a new corporate headquarters in Morrinsville, a training facility also in Morrinsville, and a huge expansion in spare parts inventory. National tractor manager Brett Maber says the training covers more than classroom learning; it also involves participants pulling on their gumboots and

ers and the like. “We want all our sales staff to be experienced, skilled operators of the gear. You can’t do that if all you’ve done is read brochures; it’s being able to give customers good firsthand knowledge, because our guys really do know how it all works.” The training doesn’t end with the training week, but continues for three years, each staff member being required to renew their Deutz Fahr accreditation every year, under the guidance of the group’s national training manager Mark Daniel. Maber says the new system is part of the drive by Power Farming to raise its stakes in the industry. “If we really want to raise our game as a group, then we have to make sure our guys are as well trained, informed and practically experienced as possible. “We’ve seen the gear Deutz Fahr will be produc-

stands these products, then we’ll be positioned to maximise the opportunities that will follow.”

Power Farming’s staff training programme involves working machines in the paddock.

NEW NATIONAL DEALER NETWORK

Iseki customers now have a new dealer network for the North & South Islands. For all your service, parts support and new machinery purchases, please contact your new Iseki dealer today or visit www.iseki.com.au

YOUR NEW ISEKI DEALER NETWORK Ashburton

JJ Limited

9 McGregor Lane

Blenheim

Tractor Repairs & Spares Ltd

42 High Street

03 307 6031 03 572 5173

Christchurch

JJ Limited

36 Hickory Place

03 344 5645 09 439 3333

Dargaville

Northland Machinery

104 Jervois Street

Feilding

TRC Tractors

32-38 Aorangi Street

06 323 4117

Gore

JJ Limited

Lyne Street

03 208 9370

Hamilton

Waikato Tractors Ltd

Kahikatea Drive

07 843 7237

Hastings

Tulloch Farm Machines

1217 Omahu Road

Invercargill

JJ Limited

260 Dee Street

0800 885 5624 03 211 0013

Kaikohe

Renton Motors (1976) Ltd

19 Broadway

09 401 0313

Masterton

Tulloch Farm Machines

300 High Street

06 370 0390

Matamata

Matamata Tractors & Machinery

113 Broadway

07 888 6292

Morrinsville

Piako Tractors

34-40 Thames Street

07 889 7055

Mosgiel

JJ Limited

31 Gladstone Road

03 489 8199 03 544 5936

Nelson

Tractor Repairs & Spares Ltd

19 Poutama Street

Oamaru

Stills Farm Machinery Ltd

Pukeuri Junction

03 431 3760

Ross

Ross Motors (2004) Ltd

29 Moorhouse Street

03 755 4188

Rotorua

Piako Tractors Ltd

490 Te Ngae Road

07 345 8560

Stratford

FieldTorque Taranaki Limited

400 Broadway South

06 765 8643

Taupo

Taupo Tractor & Machinery Ltd

2 Miro Street

07 378 4533

Timaru

JJ Limited

280 Hilton Highway

03 688 7401

Whangarei

Bryant Tractors (1983) Ltd

Rewarewa Road

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RURAL NEWS // NOVEMBER 5, 2013

48 MACHINERY & PRODUCTS

Contractors and farmers share many similar goals like to see schools and other educational institutions more actively encouraging young people to look at the agricultural sector for career opportunities. We want to see the sector promoted to young people – and not as a second-class career option where only the less academic students are encouraged to take on agricultural subjects at school. RCNZ would also like to see more sensible rules and policies on employing overseas workers. Ongoing lack of skilled, local workers and the seasonal nature of our industry – as well as the complexity of visa systems – make it extremely difficult for contractors to get

THE CLOSE, mutually beneficial relationship between Federated Farmers and Rural Contractors NZ (RCNZ) will nowhere be better seen than at the Feds national conference later this month in Wellington. As an affiliated member of the federation, I will represent RCNZ at this conference. While RCNZ and Fed Farmers have different memberships and goals, we are closely related: many of our members are also farmers and vice versa. So it makes sense that as two of the country’s most important and influential rural lobbies we continue to develop and foster a good relationship. We are both interested in co-operating to achieve the best outcome for the agricultural and farming sector. An example of this co-operation is the new rules for agricultural vehicles that came into force this year. RCNZ worked with Federated Farmers, the Ministry of Transport, NZTA and NZ Police to help develop these regulations. Though they’re not perfect, the rules recognise the unique operating characteristics and environment occupied by agricultural vehicles needing to travel on roards. The rules will reduce compliance costs for rural contractors and farmers. Another issue of concern to Rural Contractors New Zealand and Federated Farmers is how we can encourage more young New Zealanders to take up careers in the agricultural sector. Despite relatively high unemployment nationally, rural contractors and farmers struggle to recruit skilled and motivated staff. Both our organisations would

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appropriately experienced staff when we need them. A dire shortage of suitable workers often means rural contractors have to rely on employing skilled people from overseas on a temporary basis each season. However, despite our industry’s desperate and clear need for temporary workers, current immigration and employment laws are causing unnecessary headaches and expensive holdups. There seems to be a major disconnect from reality within Immigration NZ and WINZ on this issue. We know there are similar problems in the dairy sector, in particular, something the Feds and RCNZ

RCNZ would like to see more sensible rules and policies around employing overseas workers.

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can lobby Government and the bureaucrats on. Meanwhile, the Government’s workplace health and safety reforms need embracing by both our organisations. Unfortunately, the attitude towards ensuring workplace safety is not universal in the agricultural scene and it can be a battle to get safety seen as a priority by every individual. For farmers and contractors, staff are our biggest asset and we must do all we can to ensure their health and safety at work. It is the responsibility of all contractors, workers, their workmates and the farm businesses they are working for to ensure a safe working environment. • Wellsford agricultural contractor Steve Levet is the president of Rural Contractors New Zealand (RCNZ).

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RURAL NEWS // NOVEMBER 5, 2013

MACHINERY & PRODUCTS 49

Life in the valley TO N Y H O P K I NSO N

THE NUKUHOU/ WAIMANA valley between Taneatua and Opotiki on SH2 may be a ‘dead area’ for big farming contractors, says Paul Warneford. But it’s not dead for him. He and his wife Heather, t/a Warneford Farms, have lived in the area since 1975, marrying in 1976 and remaining there. Their business includes three dairy farms with farm managers and a total of 840 cows, a bull fattening and leasing segment, contract calf debudding for 10,000 calves this season, baling wood shavings to supply calf rearers, some cropping and a small contracting business. The land is rolling with some steeper areas. Warnefords have 10 staff, a contract fencer and two part-timers. They pride themselves on their relationship with staff and their length of service. “Our staff stay,” say Paul and Heather together. “Our overall farm manager has been with us ten years and several have been here four-five years.” The reason? All staff have a variety of jobs and all are involved in farm and management decisions. “This way they can all take ownership for whatever is being done while the ultimate decisions still rest with us.” The dairy operation is the original home farm of 132ha milking 220 cows, 75/ha milking 220 mainly

Farm manager Blair Stanaway (left) with Paul and Heather Warneford.

younger animals and 125ha milking 400 cows. Total production 265,000kgMS. “There is a certain amount of shifting of animals between herds as all sheds are within a kilometre of each other.” A fourth dairy shed handles all cows at calving plus any being treated and the milk is used to rear calves in the adjacent sheds. They rear 350 replacement and bull calves, and buy in bull calves to rear for leasing. This shed is used only for two months each season. The farming operation is self-contained. They grow 12ha of turnips for summer feed and as part of a re-grassing scheme harvest 1000 bales of wrapped silage and 200 bales of hay plus 22ha of maize for silage. All ground preparation is done by Warneford and his staff but he leaves the planting and harvesting to Hayward Contractors, Whakatane. “They do a great job and I do not believe it is economical to have big machinery sitting around for the small

amount of that work in the immediate area.” They run up to 1200 bulls annually and lease about 500 to dairy farmers. Most of these return to the farm and are finished or kept for another year. The horn de-budding has grown and is mainly for customers who lease their bulls; they are mindful this operation could get bigger. “It is another job for our team and fits in well with the end of calving and before cropping and contracting starts.” Each year for a short time they set up an 18-hole golf course on their farm with tees and the greens mowed a couple of times with garden mowers; the holes are a little bigger. “The local Lions Club has run an annual golf tournament, a fun day which attracts 140 entries,” says Warneford. Sponsorship and donations at the event have raised $30,000 in three years, given to the Cancer Society’s Lions Lodge in Hamilton and other local charities.

Always keen on the Green machines! PAUL WARNEFORD says he had wanted a John Deere since he was a kid. Now he owns three: a JD 6430 (115hp), a JD 6230 (95hp) and a JD 6120 (85hp). “They have a great reputation for reliability and all-round toughness and they do all we want them to do,”

Warneford says. He didn’t start out to be a big business because he was determined not to work outside the valley. “I believe anything over 10km is dead running and there is no money in that,” Paul says. They do smaller lots for more

customers. He does not have a baler, preferring to work in with a neighbour friend who has a Kuhn variable size baler and Warneford does all the wrapping. He also does spraying, ripping, power harrowing and mowing and raking of silage and hay, also running a Duncan roller drill.

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RURAL NEWS // NOVEMBER 5, 2013

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RURALNEWS TO ALL FARMERS, FOR ALL FARMERS

NOVEMBER 5, 2013: ISSUE 549

www.ruralnews.co.nz

NOVEMBER 13TH-15TH, 2013

Show organisers build on past 150 years success GA RE T H G I LLAT T

CANTERBURY SHOW organisers will use the success of the 2012 event as a springboard to make this year’s event even bigger and better, says the new show president, Canterbury farmer Mark Fleming. The event celebrated its 150th birthday last year, drawing crowds of 123,000 to visit 560 trade exhibitors and 6974 livestock events over the three days. This success resulted in the event winning The Press Champion Canterbury Supreme Award for Small Enterprise and Champion Tourism/Hospitality for Small Enterprise Category at the 2013 Champion Canterbury Business Awards. Judges noted the event drew $17 mil-

lion in total direct spending and generated 27,500 bed/nights in the region for hotel and motel owners. Canterbury Business Award judges gave the show the ultimate award for its record-breaking achievement during its 150th birthday which Fleming attributes to the management by previous president Richard Lemon and the hard work by people involved. “Richard Lemon ran a fantastic show for the 150th. Winning the tourism hospitality award, as well as the supreme award was an acknowledgement of the hard work by the association, staff, volunteers and the people who support us.” Show attendees can expect more new events, exhibitions and attractions, Fleming says. X Factor NZ winner Jackie

Thomas will perform, and there will be showjumping by top placed New Zealand riders and horses, wood chopping by international competitors and a larger animal petting area. “We’ve got one of the best events in world, on a par with the bigger events in Australia,” says Fleming. “We’ve had people come to the show from America who were amazed at the range of exhibitions and events we had.” Before becoming president Fleming judged pedigree cattle at shows nationwide and in Australia. He says A&P associations have done well in recent years. “Every A&P show has adapted its show for its public and community. Each A&P has its own uniqueness specific to the area it serves, whether it is the exhibi-

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tors, livestock or events.” Events continue to be an important marketing tool for stud breeders, large numbers still taking the time to enter show competitions. “Charolais breeders the Fishers do well at the show and then do well at their stud sale. This is an example of people marketing their animals at an A&P show that works successfully.” Pedigree sheep breeders especially find the event profitable, according to Fleming, as event organisers hold a summer ram sale on the showgrounds after the event which last year netted $280,000 worth of sales for breeders. “It’s one of the earliest ram sales for sheep stud breeders at a major central loca-

Canterbury A&P show president Mark Fleming.

tion which makes it an important event on the sheep calendar.”

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2 CANTERBURY A&P SHOW

Another bid for Young Auctioneers contest FOLLOWING A successful inaugural event, the Heartland Bank Young Auctioneers Competition returns to this year’s Canterbury A&P Show. The competition aims to showcase and develop young livestock auctioneers and improve the standard of auctioneering across the board. During the judging, which includes a test of auction rules and a mock

auction, each entrant will be required to sell three lots of heifers/bulls. Entrants will be given notice of lots to sell and access to the breeder. They will be judged on overall performance including voice, diction, manner and values. The interview component will see entrants evaluated on their communication skills and knowledge of the terms and conditions relating to

livestock auctioneering. Competition convenor Mick Withers said the competition has been expanded nationwide following the success of the inaugural competition which was restricted to South Island entries only. “All entrants from 2012 commented positively on what they gained from participating in the competition, including the opportunity to sell in front

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of a large crowd, identifying their core strengths and improving their understanding of auctioneering law. All previous entrants have indicated a desire to participate in the 2013 event” added Withers. The 2012 competition was won by Glenn Peddie of Peter Walsh & Associates, with Ryan Andrew of PGG Wrightson finishing in second place. Seven auctioneers from the South Island competed in the inaugural competition. As part of his prize package, Peddie travelled to the 2013 Sydney Royal Easter Show to view the finals of the Australian Young Auctioneers Competition. “In addition to seeing the competition I was

After a successful inaugural event last year, the Young Auctioneers Competition returns to this year’s show.

fortunate to also attend the dinner held the night before. The Australians had great enthusiasm for pushing young people to succeed in the industry. I actually ended up participating in a charity auction

held at the dinner alongside the previous year’s winner,” said Peddie. Entrants will be competing for the New Zealand Stock & Station Agents’ Association (NZSSAA) Young Auc-

tioneers Trophy, $2000 in travel from Heartland Bank to enable the winner to attend the Young Auctioneers Competition in Australia and a $500 Swanndri clothing voucher.

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RURAL NEWS // NOVEMBER 5, 2013

CANTERBURY A&P SHOW 3

This year’s event promises to be bigger and better GA RE T H G I L LAT T

THE 151st Canterbury show promises to be the biggest ever with more exhibitors and more events than ever before, say event organisers. With at least 100,000 visitors and almost 600 trade show exhibitors frequenting the event each year the Canterbury Show is on equal footing with the National Fieldays in June. While the 150th show in 2012 attracted 123,000 visitors and 560 trade show exhibitors, show marketing manager Nicola Cull expects big things for 2013 with 540 exhibitors already registering for a place at the show three weeks before the event. “There’s usually a flurry of bookings before the show,” Cull said. Besides the larger-thanever number of exhibitors, organisers say there will be plenty for visitors to see and do at the event -live music, wood chopping competitions, equestrian events and much more. Organisers say visitors should expect to see firstclass showjumping with top-placed New Zealand riders and horses competing in a number of events, as well as appearances by the Crusaders horsemen. While stud stock entries have been slower to come in than last year, Cull says the committee expected that as it immediately followed the anniversary event last year. 2012 was a big year for the show with the committee offering a book, a bottle of commemorative whisky, a tie, a scarf and glasses as momentos. And they hosted royal visitors Prince Charles and Duchess Camilla. This resulted in the event winning the Champion Canterbury Supreme Award for Small Enterprise and Champion Tourism/Hospitality for Small Enterprise Category at the 2013 Champion Canterbury Business Awards. However, as much, if not more, work has gone into this year’s event with 570 volunteers pouring well over 20,000 voluntary hours into the event so far, according to Bone. “Volunteer contribution towards

the organisation and running of the Show is essential to its operation.”

Mark Fleming, show society president, says he is excited about the event,

which promises to have something for everybody. “If you take where we are

Along for the ride! CANTERBURY AGRICULTURAL & Pastoral Association president Mark Fleming has had a long family involvement with the show However, one of his more celebrated pursuits is an 18-year stint as a Crusaders horseman and performing close riding and fighting scenes in the Lord of the Rings trilogy. “My involvement with polo over the years has led to some pretty interesting pastimes, but my true passion lies in showing and in the family farm, founded by my grandfather and father in 1957. “They purchased the stud’s founding cattle from Sir Heaton Rhodes’ property at Otahuna. We still have some of the original cattle lines in the stud today,” Fleming says. The family farm is Willowlea Stud in Irwell, predominantly a Red Poll and Angus Stud. They are also involved with dairying in growing silage and providing grazing. Fleming has attended the Canterbury A&P Show since his youth, showing cattle with his family, locally and throughout New Zealand including Royal Shows in Waikato, Invercargill and Fielding. He joined the Canterbury A&P Association general committee in 1998

and was chairman of the cattle committee for five years. He is also chairman of beef breeds for the Royal Agricultural Society of NZ (RAS) and a RAS Central Districts councillor. A qualified beef breeds judge, Fleming has judged throughout New Zealand and at the Royal Adelaide Show. He is one of the youngest show presidents. Fleming’s vision for the future of the Canterbury A&P Show lies in retaining the link between city and country and introducing new events to grow the show, while encouraging younger audiences to participate in shows through volunteering and showing. “We’ve got a great committee, board and management, and the structure is in place to grow our show in the future. There are a lot of people passionate about the Canterbury A&P Association and show.” “The show’s developed into the largest agricultural event in the country. If you take where we are now and continue to diversify and embrace new technologies to develop the event, then the association can’t help but roll forward.” Fleming was welcomed as the incoming president at the association’s annual meeting in March.

now and continue to diversify and embrace new tech-

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RURAL NEWS // NOVEMBER 5, 2013

4 CANTERBURY A&P SHOW

Feeders key at deer farmers’ crucial time GA RE T H G I L LAT T

AN ADVANTAGE Feeders grain feeder system is helping keep weaners and hinds in top condition on Stuart Stokes’ North Canterbury farm. Stokes farms 800 English Red breeding hinds on his 300ha property at Sheffield. While there are many crucial times on the calendar for deer farmers, Stokes says that, in feed budgeting and animal nutrition management, no time is more crucial than January-February during and immediately after weaning. With hinds going out to stags in January-March, Stokes says the hinds need to be put on a rising plain

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of nutrition to get them cycling ahead of mating so they will produce a fawn early in the next season. Feeding is also crucial for weaners at this time, says Stokes, as animals that cannot achieve 45kg carcase weight by the close of the chilled market in late October need to be processed frozen and so bring a much lower price. “If you can get that part of it right you get a hind back in calf early and get a better fawn rate the following year as well as getting a good weaner that is ready for the chilled market. It really plays a big part in how profitable the rest of the year will be.” Barley is used to supplement the animals’ diet and Stokes says

before 2011 it was fed out once a day from a towbehind grain bin onto the ground behind his truck. The operation was time consuming and didn’t give him much control over how much the deer were eating or which animals were getting it. “It is like feeding lollies: they’ll meet you at the gate and it’s hard to get into paddock. Within two minutes of getting into the paddock it’s gone.” Stokes says this resulted in wasted time, effort and stock losses due to the manner deer were eating the high protein food. “Because of the way animals were eating it some weren’t getting any while some were getting too much. There was wastage

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both in barley and in animals.” Stokes bought his first 1800L NGF 1800 Advantage feeder in 2011 and noticed how much time he was saving. Instead of traveling out to paddocks once a day he only needed to refill the feeder once a week. The feeders are first introduced to the hinds and fawns in January just before weaning. While Stokes uses that time to get hinds to teach fawns how to use the feeder, he has also noticed other benefits including hinds recovering from calving faster and better growth rates in weaners. “I don’t mind who’s eating it. If it’s the hinds then they get on that rising plain of nutrition and if the fawns eat it then they are growing on the barley as well. It makes the transition to weaning a whole lot easier.” The feeders are then taken with weaners and Stokes says they remember how the feeder works without any difficulty. Hinds get the grain they need depending on grass

The bins are loaded with grain from silos, supplements mixed and then taken to paddocks for stock to access.

supply up to 400 grams of barley a day. Weaners consume 200 grams of barley a day once they have been separated from their mothers. With each NGF 1800 holding 1200kg of barley Stokes says it usually takes a week before he needs to replace an empty feeder with a full one. He does this by loading the bin at his silo with an electric auger while also mixing the supplement with a mix of minerals including copper, selenium

see more than three deer eating from the feeder at any one time so they all get a go.” Stokes is now so confident about his feeding system that he is feeding more barley than ever and says he has ordered another two grain feeders for this coming season. “They pay for themselves in saved productivity and product costs in about 18 months.” Tel. 09 431 7276 www.advantagefeeders. co.nz

Get supplements sorted DEER FARMERS need to get hind and fawn January-February supplement feeding systems sorted now rather than waiting till after Christmas says North Canterbury deer farmer Stuart Stokes. Low empty rates in breeding hinds can mean the difference between a profitable or poor year with animal nutrition being a large part of that success. Stokes says successful mating depends on hinds being

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and cobalt. He then takes the full bin to stock, removing the empty one for loading later on. He has welded feeders onto the trailer chassis for easy transportation – easier and more convenient for moving the feeders around. To ensure animals eat pasture as well as grains, Stokes positions feeders at the opposite end of the paddock from water to make sure stock need to walk between the two. “It prevents deer just camping at the feeder. I rarely

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on a rising plain of nutrition which means having enough feed on hand in January for hinds. “If you feed a wee bit of grain it tricks hinds into thinking they are in better condition than they actually are, which gets them to cycle and gets them into calf.” However, Stokes says preparation for supplement feeding needs to happen sooner rather than later. “When you get to Christmas time then you’re thinking of everything else and it’s too late to do anything.” Stuart Stokes will be on the Advantage Feeders stand at the Canterbury Show on Wednesday November 13 between 1pm and 5pm to answer any questions that deer farmers might have. – Gareth Gillatt

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Wastewater system may just suit what Canterbury needs AN INNOVATIVE, cost effective and environmentally friendly wastewater treatment system could solve problems for many in Christchurch and Canterbury, says Dick Lamb of Environment Technology. The company is the sole distributor of New Zealand Advanced EnviroSeptic (AES). This system purifies wastewater using a bacterial process within pipes, treating effluent to advanced secondary quality, before passively dispersing it into the soil. “It is effective, non-mechanical and does not use pressure distribution,” Lamb adds. As there are no electrical components or moving parts there is no maintenance required with an AES system, other than periodic emptying of the septic tank. This is said to give it one of the lowest carbon footprints in the wastewater treatment industry. “The AES system is considerably more cost effective to purchase and maintain than current conventional mechanical systems,” says Lamb. “Installations use mostly locally sourced, low energy materials with minimal transport requirements, plus

the lightweight Advanced Enviro-Septic components are easy to handle and transport. It requires only a locally sourced standard septic tank and sand materials. The durable components last indefinitely and come with a 20 year guarantee against manufacturing defects.” He believes the AES on-site treatment system also has several environmental advantages. “It produces high quality effluent which minimises the risk of groundwater contamination. The treatment process requires no external energy input and the components are made with a lot of recycled plastic.” AES system pipes are flexible to allow adaption to any site shape – straight or curved, and can incorporate multi-level configurations. The wastewater treatment system performs with high capacity in areas of limited space and starts quickly after periods of non-use. AES pipes have a large surface area for aerobic bacterial activity which allows for protection of the outer pipe layers and receiving surfaces so they remain permeable. AES systems are easily adapted to

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small or larger wastewater flows and have been used in designs from 400L/ day and, to date, up to 198,000L/day in a municipal application. There are at least 200,000 installations in the USA; 95% of on-site treatment systems in New Hampshire state are being AES. The first Advanced Enviro-Septic system in New Zealand has been installed in Golden Bay and Environment Technology has recently been advising all local and regional councils, as well as ECAN, about the system. “In order to help new designers and installers familiarise themselves with the basic procedures, a certification course has been developed,” explains Lamb. “Certified drainlayers will need to complete this certification course if they wish to install or design Advanced Enviro-Septic systems.” He says AES is adaptable to virtually any residential or commercial application and can be retro-fitted to existing septic tanks as an upgrade or if the existing disposal field has failed. www.environmenttechnology. co.nz

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RURAL NEWS // NOVEMBER 5, 2013

6 CANTERBURY A&P SHOW

New shears make tough jobs easier GA RE T H G I L LAT T

HANDSHEARS DEVELOPED over 25 years will make cow tail trimming easier says the developer, champion blades shearer Richard Watson. His Watson Multi Shears livestock trimming shears are capable of blade changes. Watson first got the idea for his shears when

thinking of ways to fit a tool-grade steel blade onto hand shears. He says the design of the traditional hand shears used in the dairy shed has changed little since they were first made 300 years ago. The use of high-carbon steel means blades can’t be changed, and they blunt and can bend if dropped frequently. His idea was to take

advantage of modern high quality composite tool steels. “Newer, better steels are available and my idea was to take advantage of that.” The problem is that tool steels can’t be made into spring steel and external blades couldn’t be added to spring steel due to the constant pressure they would be under. So Watson experi-

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mented with a spring operated bearing system. He and a Rolleston engineer developed a wooden concept model which led to the formation of the business and helped conceptualise the first working prototypes. Wool Board funding enabled Watson to retain Christchurch design company Ross Taylor Industrial Design to develop concepts. He then spent 20 years testing and improving the shears in his day-to-day work and has now shorn at least 8000 sheep using various prototypes. He says the secret to the longevity is a selflubricating plastic bearing system. “The prototype that has done most of the work has shorn 5000 sheep with no signs of wear. For the casual user these shears are designed to last 20 years.” What sets the shears apart from traditional shears is their capability for blade changes Watson says. “Cold work tool steel is vastly superior to high carbon when it comes to shearing.” This gives a longer life in dairy sheds. “The superior tool-steel blades are better able to withstand removal of dags around cows’ tails because of having better edge retention than the old style clippers.” Farmers will be able to use the spring-bearing shears off-the-shelf – not possible with traditional shears. “You’ve either got to get new shears then

What sets these new shears apart from traditional ones is the capability for blade changes.

work on them until they are ready to use, or buy them secondhand.” Originally developed for high country sheep shearers, the new shears

have much wider application, Watson says. “We’re looking at lifestyle farmers and dairy farmers.” Watson Multi Shears plans to offer a workshop

grinding and sharpening service, and do other maintenance. Tel. 03 314 4419 www.watsonmultishears. co.nz

One-stop shot for 4x4 stuff HARSHLY PROVEN 4x4 accessories made in Australia will be on display at Ironman 4x4’s site at the Canterbury Show. The range has been available to 4WD users for 50 years. The products include: • Bullbars: entry level to deluxe, commercial and protector bars. All have an aerial lug and spotlight mounting points and some have high lift jack slots. • Winches: upgraded ‘monster’ winches have stronger motors, heavy

duty casings and synthetic ropes. And there’s a sealed motor with a breather to allow equalising to changes in temperature. • Recovery equipment: snatch straps, recovery kits, high lift jacks and exhaust jacks. • Suspension: suspension kits and components with raised height, long travel and improved performance are available for most makes and models. Tel. 0508 IRONMAN www.ironman4x4.co.nz

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RURAL NEWS // NOVEMBER 5, 2013

CANTERBURY A&P SHOW 7 Mineral rations handled flexibility and accurately GA RE T H G I LLAT T

DAIRY FARMERS can use a newly launched trace minerals bin to more accurately and flexibly ration these to livestock, says the bin’s developer, Permbrand, of Canterbury. Its 1500L mineral bin gives farmers more control over how much trace elements they give to cows and where they put them, says sales manager Steve Waters. He says customers were finding it difficult to get exact doses of trace elements to cows, especially in times when animals didn’t need water. “Fitting an inline system does not have the same accuracy which is what we need with some of these products.” Waters said having the hopper separate meant that customers could choose multiple delivery methods to get minerals to stock. “If minerals are put through the

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water trough dosing system and we get a wet spell the cows don’t drink as much. The bins give you full control doing it through the shed while they are getting their rolled grain, molasses and other supplementary feeds.” Bins come with a weather proof sliding lid and Waters says they can be retrofitted to any rotary shed. “The hopper size and the compactness of the unit make for a nice tidy installation in any rotary shed system.” They are made of UV stabilised polyethylene bins with a galvanised steel frame. Whether the shed system is a Permbrand installation or another company’s, Waters says the hopper will take a one ton bag of any kind of palletised mineral or additive that requires controlled application. Loading can be by telehandler or tractor front loader. Tel. 03 347 3171 www.permbrand.co.nz

A NEW Zealand produced battery conditioner has helped one Australian farmer extend battery life by 400-800%, says its manufacturer and distributor. Recharge Battery Revitalizer general manager Gerard Anselmi says Central Queensland farmer Shane Perry bought the solution in 2007 after disappointing battery life on all his vehicles. Anselmi says Perry would get only 12 months of battery life on his farm vehicles before treatment, a figure which jumped to four years or more immediately after. “The best was eight years on the bulldozer.” Perry was getting only 12 month’s battery life expectancy because, as he was in the tropics, it caused rapid discharge and significantly increased sulphation build-up. And he says he doesn’t buy

good batteries, just cheapies. The conditioner works by reversing the sulphation process on batteries which corrodes the lead plates and reduces the a battery’s capacity.

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THE CHALLENGES of operating an agricultural business have always been huge. Weather, commodity price volatility, foreign currency shifts and disease, to name but a few factors, have been enough to limit the attraction of the sector to investors even with the highest levels of risk tolerance. And life is getting tougher for many agricultural business operators. This time the external pressure is coming from their fellow New Zealanders. It is coming in the form of new and tighter regulation on farm operations as national and local regulators respond to the perceptions their constituents hold about how the primary sector is managing the country’s natural resources. More stringent restrictions on water usage, arbitrary limits on nutrient run-off, and greater requirements for land owners to hold resource consents are all adding cost and complexity to farming businesses. Underlying these changes, many of which are well intentioned, is a desire to reduce – at least in the the minds of many urban dwellers – the negative impact primary sector production has on our environment. However, it is questionable whether many of these regulations will help to create a more sustainable primary sector. The key for the primary sector is that unlike weather, commodities or currencies, the burden of regulation

can be managed through effectively engaging with the wider community. The sector needs to make a concerted effort to educate and inform New Zealand’s growing urban population that has little or no connection to the land. It is this population group that increasingly determines the political persuasion of our representatives and the regulatory environment they seek to implement. Currently, the only messaging this demographic gets about agriculture is negative. Mainstream news only reports environmental failings, biosecurity incursions, water quality issues, food safety scares and animal welfare lapses – the bad news. As a consequence they are demanding tighter regulation on an industry that appears from the outside to be failing to regulate itself. Mainstream news doesn’t cover many of the good news stories. It doesn’t explain the contribution the primary sector makes to our economy or that the products it exports pay for schools, hospitals and roads we rely on day to day. The industry needs to be prepared to tell these stories and must do so with some urgency if it is to manage the regulatory pressure that is steadily growing on the sector. The need to help urban New Zealanders to understand the importance of the primary sector makes A&P Shows, like the Canterbury Show, more important to the industry today than ever. The shows provide an opportunity to create a touch point between

Ian Proudfoot

the urban and rural populations and tell the positive stories about the contribution the primary sector makes to New Zealand. The industry can talk about the work it is doing in environmental enhancement as well as the contribution it makes to our communities and the economy in a fun, hands-on way through these events. It can also use the events to listen to the views of the wider population in an attempt to develop a consensus on the basis of a truly sustainable primary sector in this country. The industry has the ability to change its future by helping the wider population to grow its understanding of our agricultural economy. However, the speed at which the burden of compliance grows will only be slowed if the industry is also prepared to listen to the needs and expectations of these New Zealanders and design business models that satisfy their requirements. A&P Shows provide a great opportunity to develop these critical conversations. • Ian Proudfoot is the global sector leader for agribusiness at KPMG.

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