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Rural NEWS

farming with limits Farmers must adapt for better water.

page 28

to all farmers, for all farmers

october 23, 2012: Issue 525

www.ruralnews.co.nz

Has Fonterra gone soft? p e te r bu r k e peterb@ruralnews.co.nz

SOME FARMERS in Manawatu/Wanganui are upset Fonterra is refusing to appeal the controversial One Plan or help Federated Farmers with cash for its appeal The issue of One Plan arose at a meeting of Fonterra directors and shareholders in the region recently. Rural News has learned some share-

holders were bitterly disappointed at the response of Fonterra’s representatives at the meeting. James Stewart, Feds Dairy section chairman for Manawatu/Rangitikei, says personally he would have liked Fonterra to appeal the Environment Courts decision on the One Plan. He says some farmers at the meeting expressed the view Fonterra had gone ‘soft’ on the plan and were more interested in looking after the corporate image of the

organisation than looking after farmers’ issues. “But it’s fair to say there were mixed views on the issue and some accepted an appeal may be difficult. Others grilled the Fonterra people, but not in an unpleasant way,” says Stewart. Gray Beagley, who represents Feds members in Tararua District, says farmers were upset at Fonterra’s approach, especially its outright refusal to help in any way with Federated Farmers’ appeal

to the High Court. “Fonterra said they were going to work behind the scenes and try to make a difference that way. Fonterra is saying they’ll help us on the day-today stuff, but farmers are saying they can get through the day-to-day stuff themselves; it’s long term sustainability or securing the future that’s worrying them.” Beagley says farmers in his area, a high rainfall one, are now just starting to get a handle on some of the numbers coming out of ‘Overseer’ and realizing they can’t do anything to mitigate that. Some farmers are saying they will be forced off their farms. “I think it just a bit of PR exercise by Fonterra saying that they won’t go against the Environment Court,” Beagley claims. • Fonterra’s stand – page 3

Pylon problems rumble on a n d r ew swa l low andrews@ruralnews.co.nz

FARMERS AND landowners in Whangerei District are the latest to lock horns with their council, and indirectly Transpower, over provisions the state-owned enterprise is seeking to get written into district plans. In Western Bay of Plenty and Waimate, concerns about development and consequent land use restrictions were limited to the Transpower national grid infrastructure, but in Whangarei the council’s proposed plan change 123A will apply to all network facilities, ie including local lines company to page 4

massey honours ag students JAY HOWES, winner of the NZIAHS award for the leading agricultural and horticultural student at Massey University this year. He is seen here with the president of NZIAHS, Dr David Lewis, of Plant and Food Research. Howes was one of several Massey University top agricultural students recognised recently during a gala function in Palmerston North. The annual dinner, a tradition for final-year agricultural students, this year attracted 200 students, university staff, sponsors and special guests from the agricultural sector. The guest speaker was Abby Hull, a recent ag graduate from Massey and now a DairyNZ consulting officer in the lower North Island. Cameron Shaw was named agricultural student of the year, while Nathan Wright won the prestigious William Gerrish Memorial Award and Bridgette Lawn the NZ Institute of Primary Industry Management award.

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Rural News // october 23, 2012

issue 525

www.ruralnews.co.nz

News �� 1-16 World �� 18 Agribusiness �� 20-21

news 3

Is big best? a n drew swa llow

IS BIGGER better? That’s the question the boards and shareholders of rural supply cooperatives Farmlands and CRT are grappling with now a merger is officially being discussed. The move, long anticipated, looks like it would create the country’s largest rural retailer by turnover, though not in store numbers (see table).

tion with these things,” he admitted. Farmlands shareholder and board candidate Hugh Ritchie says there will have to be a strong case for the move to win support. “The models used by CRT and Farmlands are not quite the same. Farmlands used to be in real estate but got out of it; fuel is a cut-throat business – it’s high turnover but not a lot of margin, and the livestock business is the same.” How

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Stores

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Turnover**

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$773m

$2065m?

$1337m

$287m*

Opinion �� 24-27

Profit before tax & rebates or EBITDA

$13.5m

$5.5m

$??

$24.5m

$6.7m*

Markets �� 22-23 Hound, Edna �� 24

Management �� 28-33

*2010-11 data as 2011-12 figures not yet available **Includes non store operations, such as livestock, finance, fuel.

Animal Health �� 34-36

However, directors of the two companies are staying tight-lipped on the reasons for investigating a merger now. “We’ve nothing more to report at this stage,” CRT chairman Don McFarlane told Rural News late last week. “It’s likely we’ll be communicating to shareholders again in a week or two.” McFarlane wouldn’t comment on whether there is any overlap in the two cooperatives’ businesses or – as it appears on paper with Farmlands operating solely in the North Island and CRT in the South – whether it would be a case of two plus two equalling four, plus a little bit more. “That’s always the inten-

southdowns �� 37-39 Machinery and Products �� 40-45 Rural Trader �� 46-47 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 80,767 as at 30.06.2012

much CRT’s operations in the latter two make remains to be seen, he notes. The lack of information to shareholders to date, and the fact he was told there were no merger plans in the run-up to the election nominations closing – only to read in the newspaper the following morning the two co-ops were in talks – does not bode well for an open and transparent process, he says. McFarlane says the firms “do want a pretty transparent process”, which is why at this stage they’re not prepared to comment to news media, but will do so when shareholders have been sent the initial findings.

Future not so rosy for some kiwifruit PAM T I PA

GROWERS ON cold, wet and lowlying sites probably do not have a future in kiwifruit, says Zespri chairman John Loughlin. That is indicated to date by the Psa recovery pathway accessible with the introduction of the new Gold crop G3, he told Rural News. On average the recovery is progressing “a bit worse than expected,” he says. “But we are seeing some orchards as good as our best hopes and some as bad as our worst fears,” he says. Psa is worst at sites that are low lying with a high water table, exposed to wind and cold, and prone to spring frosts. “Wherever there is stress on the vine, Psa is much worse,” Loughlin says. “There are sites where kiwifruit was grown in the past where it may not be grown in the future because of a combination of Psa and other stresses. “If your orchard is not in the right place, you do the same thing as everywhere else in the rural sector: you just have to make a change. If the world changes and your land isn’t viable you just have to do something else. “For a number of people Psa has knocked out their income and their asset, it’s knocked out their life savings, their life’s work and their dignity, so it’s pretty horrendous damage to anybody.”

But Loughlin believes there is a good future with the new G3 for growers on the best sites, who are following best management practices including good spray programmes. The industry conference last week had 500 people registered, the biggest attendance ever: “People coming along who can see themselves as part of a successful recovery from Psa, who are willing to hear about their future.” Loughlin says growing areas could become more spread out around the country, Nelson and Hawkes Bay particularly suitable. Bay of Plenty has a more tropical, moist atmosphere which makes it susceptiable to Psa. Italy has been less affected by Psa because the bacteria doesn’t thrive in dry heat. Kiwifruit needs a precise environment with not too much summer heat, some humidity, ideally some winter frost to help with buds but not much frost in spring. “Areas like Nelson and Hawkes Bay are looking much more at kiwifruit now”, he says. Loughlin says Psa is a group of bacteria that has attacked 50 plant species but it hasn’t beaten any of the industries yet. “It is something the growers are going to have to live with and adjust their management practices to; good horticulturalists on good sites will have a very good future.” @rural_news

facebook.com/ruralnews

Fonterra stands its ground on One Plan stance FONTERRA IS standing by its decision not to appeal the One Plan. Managing director of corporate affairs Todd Muller told Rural News that having looked at the Environment Court decision they decided on balance not to appeal. He says their legal advice was that given any appeal would have to be on points of law, they felt more could be done by working “behind the scenes” with farmers and the regional council to

achieve a satisfactory outcome. Muller says Fonterra has made it clear it will not financially support the appeal to the High Court by Federated Farmers. “We’ve got different roles. Federated Farmers position themselves as political advocates and activists and I respect that. My view is that it’s a better use of our resources to work with the regional council behind the scenes. I think this

is a complementary approach,” he says. Muller says as well as working with Horizons, Fonterra is working with DairyNZ to look at ways farmers can deal with the One Plan issues on farm. Farmer meetings are planned for later this year will target farmers in particular land class areas and should prove of good value. “In recent days the chairman of Horizons has been at pains to point

out that from their perspective now is the time for cool heads to step through this and see how this unfolds over the next five to fifteen years,” Muller adds. “Through that time period there will be the opportunity for plan changes which has the potential to change direction and speed of travel. A measured approach behind the scenes is the way that I think we can do that effectively.” – Peter Burke

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Rural News // October 23, 2012

4 news

Crafar farm sale finally a done deal sud es h k i ssu n sudeshk@ruralnews.co.nz

AFTER 18 months waiting, Chinese company Shanghai Pengxin is finally cleared to buy the 16 Crafar North Island farms in a deal due for signing before the end of the year. Shanghai Pengxin and Landcorp will then begin jointly managing the farms. Shanghai Pengxin cleared the final legal hurdle last week after the dismissal of an attempt by King Country iwi Ngati Rereahu to block the deal in the Supreme Court. The farms went into receivership in 2009. The company says it is delighted the Supreme Court has refused to allow a further legal appeal by iwi. It says the sale has been an unbelievably protracted process, but it never considered giving up. It looks forward to a positive relationship with the dairy industry and local communities in which it will soon be a corporate farmer. “Over time, we hope we will dem-

Pylon problems rumble on from page 1

meet our increased production targets and to commence the environmental upgrades agreed with the Overseas Investment Office. We are also required to establish a dairy training school on one of the properties so we’ll be involved in planning that.” MNZFML will spend $15.7 million on the properties in the first three years. The farms will continue to supply milk to Fonterra. But Milk New Zealand Holding has plans to process milk from the farms and create highvalue consumer products for sale in China. Milk New Zealand spokesman Cedric Allan says this may be a contract arrangement with a New Zealand supplier or a joint venture with a New Zealand company. Milk New Zealand Holding has a marketing budget of $100 million in China in the first five years MNZFML board appointments will be announced soon.

onstrate many benefits of New Zealand and China working together and maximising the opportunities available for New Zealand’s largest industry in China,” the company says. Shanghai Pengxin subsidiary Milk New Zealand Holding Ltd will own the Crafar farms. Milk New Zealand Farm Management Ltd (MNZFML) will run the farms in a 50/50 joint venture with Government-owned Landcorp. The SOE will do the day-to-day management. Landcorp will do due diligence: an inventory of the physical assets of each farm will be checked and the herds reviewed. Management and sharemilking contracts to be taken over from the receiver will be activated before the deal is settled. Landcorp chief executive Chris Kelly expects it to take over the running of all the farms early in December. “Our early priority will be to begin the upgrades necessary if we are to

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infrastructure. One kiwifruit and avocado grower particularly concerned by the proposals is Dermott Malley. “I’ve got 110kv, 50kv, and 11kv lines on my property: the Royal Flush!” he told Rural News. The council’s original proposals were “what Transpower wanted,” says Malley, but in line with Waimate and Western Bay of Plenty, and following submissions, the plan change now refers to existing national electricity regulations to guide development of network infrastructure. “But it’s not a done deal. Transpower are still going to fight to get what they want,” says Malley. Submission hearings in Whangarei start on November 5 during which landowners’ representatives will be seeking to get further changes made during that process. “What the council’s proposing now will still grant property rights to the electricity distribution networks, for example, the ability to change voltage carried.” Increasing voltage would mean landowners have more restrictions placed on them owing to the electricity regulations, he explains. In Western Bay of Plenty Transpower has lodged an Environment Court appeal over the council’s decision to adopt a commissioner’s ruling that existing electricity regulations provide sufficient protection for network infrastructure. Local dairy farmer and kiwifruit grower Steve Bailey says he believes the SOE should drop its appeal and stop wasting taxpayers’ and everyone else’s money. “Transpower needs to understand the disconnect this is creating,” he told Rural News. “This is the straw that is going to break the camel’s back. [Transpower] needs to recognise the role landowners play in their business [in hosting pylons].” If they don’t, Bailey believes some landowners will start acting to the letter of the law which allows them to say no to access under many circumstances. Transpower’s argument that farmers

don’t recognise the importance of the national grid is particularly bizarre, given many farms are dependent on electricity for their production, he adds. As Rural News went to press, Transpower had made no comment on whether it would drop the Western Bay appeal, or lodge an appeal over Waimate District Council’s rejection of its plea for buffer zones to be written into that district’s plan. “It seemed to us Transpower was trying to grab control over a massive amount of land via the district plan process,” Federated Farmers Waimate branch chairman Colin Hurst said earlier this month, reflecting on the council’s decision. “Imagine the width of Eden Park’s playing surface and stretch that the length and breadth of New Zealand. Given the company doesn’t pay rental for much of its tower infrastructure, it is insulting to then make ratepayers pay the cost of being its watchdog; more so when the Code of Practice for Electrical Safety Distances spells everything out in black and white. For those who want to read it, it is NZECP34:2001 and it is fairly comprehensive.” @rural_news facebook.com/ruralnews

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Rural News // october 23, 2012

news 5 Dairy prices up, but so is $NZ! SUDES H K I SSUN

DAIRY PRICES continue to rise but one economist says don’t expect a lift in payout anytime soon. The price of whole milk powder jumped 9% to US$3421/ tonne, its highest level in eight months. But it remains well below the record US$4985/t reached in March last year. ANZ National rural economist Con Williams is still predicting a milk payout of $5.50/kgMS despite Fonterra’s GlobalDairyTrade auction recording its fifth increase in the last six events. The strong New Zealand dollar continues to be a stumbling block, cancelling any benefits of firming dairy prices. At last week’s auction, the GDT trade weighted index rose 1.8%. Skim milk powder rose 0.3% to US$3325/t. However, cheddar prices fell 10%. Williams says the result underlines strong demand for milk powders. “Over the past months we have seen skim milk powder leading the price increase; whole milk powder is now catching up,” he told Rural News. Williams predicts prices to firm as supply out of the US and Europe falter due to weather. Production in the EU block is down 2.5% and has moved into the negative territory in the US for the first time since the drought broke out. At the same time, milk production in Australia, New Zealand and South America remains strong. Fonterra chairman Henry van der Heyden agrees milk supply in the US is being affected. But he’s not saying how the payout will fare if supply dips as expected. “It’s a bit too early to say,” van der Heyden says. “There are a lot of scenarios we can think of. Only time will tell. It’s all about supply and demand and how they play out will determine prices.” He believes volatility seen in the dairy market during the last five years will continue. Williams believes WMP prices will stay within US$3200/t to $3700/t band and are unlikely to reach the dizzying heights of March 2011. Global economic growth needed for dairy prices to springboard to record levels is also unlikely. “Once prices reach US$4200/t, we will start to see come consumer resistance so I don’t think prices will rise too much,” he says. On the payout, Williams says the strong NZ dollar will remain a major constraint. However, there is some good news on the currency front. Williams says in recent days the NZ dollar has struggled to break through the US81-82c barrier. “We don’t expect it go much higher so that may be some relief to our exporters.” But ASB predicts the dollar to peak at US84c in June next year. In its economic weekly report, ASB says strength in the NZ dollar will be underpinned by the continued elevated level of our key commodity export prices, low currency volatility, and gradual recovery in domestic demand.

Bleak ‘horizon’ painted for Hort HORTICULTURE NEW Zealand has gone on the offensive against Horizons Regional Council’s One Plan with a cover story in its NZ Grower magazine predicting a bleak future for the sector unless significant changes are made to the plan. HortNZ and Federated Farmers have lodged appeals against One Plan in the High Court in an attempt to reverse some of the decisions made by the Environment Court. NZ Grower quotes HortNZ’s resource man-

agement planner Lynnette Wharfe saying the plan, as it stands, has serious consequences for growers. She says some growers may be unable to obtain a resource consent within which they can operate or the consent process will be so complicated and costly they will not be able to continue in business. Wharfe says this could have major downstream effects including limiting Horizons growers to compete with growers from other regions and seriously impacting

the flexibility of rotational growing systems. Wharfe claims the One Plan could limit the availability of vegetables and or push up their cost and have economic impacts on towns such as Levin. She says it could affect land prices and have flow on effects to other rural service industries. HortNZ says it does not believe that the Environment Court adequately considered issues related to horticulture, hence its appeal to the High Court.

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Rural News // October 23, 2012

6 news

Poor season will increase debt ga re t h g i llat t

FARM BANKRUPTCIES could rise by 10% on last season if the country suffers a bad season, says Federated Farmers president Bruce Wills. Farm debt levels have increased by 12.7% since 2008 according to the Reserve Bank and Wills says the average on-farm debt is now $20/kgMS for the dairy sector alone. “It’s the elephant in the room,” says Wills. “Debt is $3 billion dollars higher than when the global credit crisis struck in 2008; we are living beyond our means.” An increasing number of high

profile large-scale farms have been going into receivership recently – including five dairy farms and two support blocks – with a combined area of 3138ha going into receivership in the Hawkes Bay this month alone. Wills says high debt levels combined with Fonterra’s $5.55/kgMS payout predictions for the 201213 season is responsible and it will only get tougher. He suspects another 10% of farmers may need to go into receivership if they do not manage their affairs correctly. “It’s my sincere hope we won’t have mortgagee sales but I know that about 10% of farmers, roughly,

are struggling to cope with debt loads and some of those 10% won’t make it. And if there is a drought or a lower level of production, they will include those farms that don’t have any built-in resistance to cope.” Wills is cautioning farmers to do their figures carefully before committing to any extra debt. National Bank rural economist Conn Williams says that while the average debt sits at $20—$21/kgMS the farming sector as a whole can afford to handle the lower payout. “The dairy sector can get through one tighter year; it’s had two good years so it has cash

on the sideline.” Williams says too that if the 2012-13 season does suffer lower production it should be reflected in higher prices at the farmgate. He says there should be other savings too, including decreasing exchange rates and on-farm costs. “From what I’ve seen farmers have factored in softening milk prices and are de-leveraging,” says Williams. “There is a range of responses including selling extra land and paying off debts with earnings from the previous season.” @rural_news facebook.com/ruralnews

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CONSUMERS ARE not paying the true environment cost of food production, says a Taupo farmer, Mike Barton. He farms in the Taupo catchment, now subject to ‘Variation 5’ – a strict rule made by the Waikato Regional Council (EW) which severely limits how much nitrogen a farm can leach, part of a plan to improve the water quality in Lake Taupo. He once belonged to Taupo Lake Care (TLC) which negotiated with EW on to make Variation 5 in some way workable for farmers in the catchment. Barton says Variation 5 and similar rules planned by other councils markedly affect the economics of farming, but this cost is not being passed onto consumers. Farming leaders need to ‘front foot’ the issue and explain to consumers the effects of the new environmental rules on the cost of production, he argues. “Farming leadership needs to take this to the consumer and say ‘while we are part of the problem, you as consumers are also contributing to the issue and between us we have to find a solution’.” On the premise that his farming system is helping ‘save’ the lake, Barton has begun marketing a special brand of beef now returning him a premium price from local restaurants. He says the Government’s goal to improve the economy by increased intensification is at odds with new environment rules coming into force to protect the catchment. “If, however, the goals are income targets and we look at increasing the value of the product we are selling from farming as opposed to the amount, then we can do it. We have gone from a production to a profitability focus – it’s now about production within environmental limits. This is the single biggest challenge facing New Zealand agriculture and economic performance in a generation.” Barton believes people are just ‘dancing around the issue’. “To say it’s going to be fixed by riparian planting and effluent management is selfdelusional. We’ve had riparian plantings here for 30 years and every stream in the Taupo catchment has been planted.” Barton says as environmental rules take effect, stock numbers will have to drop and new ways of making farming profitable, besides increasing production, will have to be found. “One thing I have learned from this process is that farmers are no different from other sectors of society. They will generally elect leaders and people who pick any issue up for them… who will tell them what they want to hear. But this is an issue where they need to elect leaders who tell what them what they need to hear and there’s a big difference.” (See more on Mike Barton’s farming regime: pages 28-29)

Rural News // october 23, 2012

news 7

Psa impact going from bad to worse In Hawke’s Bay, Psa has only been found on one orchard so far but that was a major disappointment to growers there. “I think the cost could be substantially higher than that,” Trebilco says. “But we will be thinking more about that in December when we see how Hayward and G3 survive through pollination which is happening in the next few weeks. Once the crop has been set we will know more about how the crop looks and the impact of Psa on vines.” But Trebilco believes some growers will succeed with G3. Some growers thought they would grow G3 and Hayward without a protective spray programme, he believes. “Growers must be more proactive than they thought they would have to be,” he says. “While Gold3 and Hayward are substantially more tolerant [of Psa] than the Hort 16a variety, a comprehensive spray programme is

still needed.” But Trebilco says wind is hampering his own efforts to maintain a two-weekly spray cycle on his own orchard. Hayward was previously seen to be highly resistant to Psa so growers are “rightly concerned” about the spread of Psa in the Hayward crop, particularly in the male vines. But Trebilco says he knows of a Hayward orchard that has been infected since Psa was first discovered, but will set a good crop this year. “It’s not universal; it does depend on where the orchard it is, how cold it is, whether it is stressed because of high water table – because we have so much rain that stresses the vine. You have to get everything right for Hayward and G3 to do well.” Some growers would find it difficult to afford sprays, particularly as Hayward has a smaller profit margin than Gold. In Hawke’s Bay, Psa has only been found on one orchard so far but that was a major disappointment to growers there. “We had hoped because of the geographical distance from Bay of Plenty that they would be able to be Psa free for quite a bit longer yet. “From an industry point of view the less it spreads the better because it has such an impact. This whole thing is very stressful for growers.” @rural_news facebook.com/ruralnews

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LOSSES TO the kiwifruit industry from Psa-V will be much greater than the predicted $500 million over five years, says grower representative Neil Trebilco. The replacement gold crop G3 and the existing Green Hayward crops are being hit by Psa more than hoped, says Trebilco, who is president of New Zealand Kiwifruit Growers Inc (NZKGI). Poor weather has also hampered the Psa recovery pathway, in which growers are replacing the highly susceptible Gold crop Hort16 with new varieties, in particular G3. But Trebilco says the industry will have a clearer picture in December and he believes some more proactive growers will come through with G3. “Late and severe spring frost has caused damage to developing canopies and to new grafts,” says Trebilco. “In combination with this, Psa is impacting both the new Gold3 variety and the existing Hayward variety more than we had hoped.” Areas with harsher weather have been harder hit. “For instance we have seen a greater progression of Psa in areas such as Waihi than we had hoped, probably because it’s colder there.” The virulent form of Psa is now affecting 58% of New Zealand’s orchards and Hawke’s Bay is the

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Rural News // october 23, 2012

news 9

Trees go as Landcorp ups dairy cows PETER BURKE

SEVERAL HUNDRED hectares of one-yearold pine trees are to be mulched to make way for

pasture and then herds of dairy cows. The reason: the low cost of carbon credits and the higher returns from dairying The development is

just out of Taupo on land owned by Wairakei Pastoral and managed by Landcorp. According to Landcorp chief executive Chris Kelly, about 1000ha,

Stumps not wasted ON MANY dairy conversion tree stumps will be pulled out and more likely burned later but not so at Broadlands. Once pulled out, the stumps are either stacked up in a paddock or taken to a separate location where they are left to dry for up to a year. When dry they are ‘hogfuelled’ or chipped by a giant machine that can gobble up a huge stump in one go and in a matter of minutes convert it to chips. “The chips are trucked off to the

Kinleith paper mill and used in the furnaces where they are mixed with coal dust and gas. One might have expected to see the stumps burned, but this is not seen as environmentallyfriendly and there’s ways to make some money from the stumps,” explains Alan Bullick. About 2500 cows will be grazed on the newly converted land, but as the conversion continues more farms will be added.

Southern road lobby THE EFFECTIVENESS of Auckland’s lobbying has prompted South Island local authorities to try to get a slice of the action – especially the dollars. A ‘collation of willing’ councils has been formed and while roads are at the top of their agenda, the talking point is not traffic congestion. Heading the group is Tasman District Council Mayor, Richard Kempthorne, who says all the South Island councils have indicated support for the new lobby group. Kempthorne concedes that Auckland has roading problems, but points out so does the South Island. He says the problem with rural roads, of critical importance to the dairy industry in the South Island, stems from the fact that the NZ Transport Agency operations and maintenance budget has been pretty much capped at existing levels. He says that means with inflation councils will gradually creep behind in their budgets and the amount of money they can allocate to rural roads. “Part of the issue is RONS – roads of national significance. These are mainly

sheds. Already bulldozers and other heavy machinery are on the site clearing and chipping stumps, bulldozing small logs into pits and finally mulching the remaining small sticks into the soil in preparation for sowing grass. Fescue and ryegrass are used and great care is taken to plant seed at a time when the best strike can be achieved. Fescue has a narrow sowing season – between the middle of February and the middle of March – whereas ryegrass has a wider sowing band. Landcorp farm business manager Alan Bullick says it can take 12-18 months before cows can

including land recently planned in pines, has been laying fallow waiting for clarity on the Emissions Trading Scheme (ETS). Kelly says with the price of carbon being so low, the company has decided to buy overseas credits and convert the land as quickly as possible to pasture for dairying. Landcorp presently manages six dairy farms in the Broadlands area for Wairakei Pastoral. The initial development will involve converting land which is adjacent to those farms so that the land can be ‘bolted on’ without incurring any additional major capital cost – such as building new dairy

motorway type projects around the big cities and this is taking a big chunk of the NZTA budget. We are going to be stressing to the Government the importance of rural roads to get them to have a better understanding of the issue, he says. Regions such as the West Coast have large milk catchment areas and rely heavily on good rural roads to service dairy farms. Kempthorne says rural areas are where most of the country’s economic capacity is realised and rural roads are critical. “We are looking at trying to maximise the money we get for roads while acknowledging that the Government will want to keep focusing on the big cities and motorway projects.” He says South Island councils hope to pool resources and see what they can do collectively. “At our next meeting in November we’ll be looking at what is our key strategic message is and how do we have that discussion with the Government. Essentially it’ll be to maximise the amount of money available for rural roads,” he says.

Chris Kelly

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Rural News // october 23, 2012

news 11

No backlash on chairman vote – van der Heyden “The appointment of a new chairman is a confidential process.”

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OUTGOING FONTERRA chairman Henry van der Heyden is rubbishing reports of farmer backlash against the appointment of a new chairman. There were no questions on the appointment of John Wilson as the new chairman at three of the eight farmer shareholder meetings van der Heyden attended this month, at Invercargill, Ashburton and Hawera. However, some farmers are reportedly unhappy with the appointment of Wilson in preference to corporate farmer Colin Armer, who resigned two months ago after failing to win the

Henry van der Heyden

chairmanship. Some media reports say Wilson, a protégé of van der Heyden, won the chairmanship after independent directors swung behind him. Before Armer’s resignation, Fonterra’s board had 13 directors: nine elected by farmers and four recommended by the board and ratified

by farmers. According to van der Heyden, the media reports are mere speculation. The appointment of a new chairman is a confidential process, he says. “How anyone knows how the directors vote is beyond me. It’s nonsense,” he told Rural News. Wilson will take over the chairmanship at the co-op’s annual meeting in December. However, he is up for re-election and must win his board seat back. A Rural News source who attended one of

man,” he says. Some farmers also questioned how Tatua, a small Morrinsville processor, had stumped the co-op in the payout battle last season and the $8.2m paid out to former chief executive Andrew Ferrier. On TAF (trading among farmers), he says most farmers have accepted the vote and await its launch. Van der Heyden says the payout to Ferrier is not a ‘golden parachute’ deal. It is instead related to Ferrier’s performance during his eight-year stint at the co-op. Ferrier’s final payment was part of his opening address at each meeting. “I explained in a bit more detail the final pay-

the meetings says some farmers questioned why Fonterra doesn’t have a deputy chairman. Van der Heyden explained that a ‘flat structure’ allows the chairman director contact with chairmen of respective board sub-committees. Having a deputy chairman could be seen as blocking directors’ access to the chairman. The source says the meeting “wasn’t joyful”. “There were lots of questions and farmers listened carefully to the answers provided by the chair-

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ment and made it clear it has nothing to do with a golden parachute. It’s a lot of money but it has been accrued and included short-term and long-term incentives.” The shareholder meetings were also attended by chief executive Theo Spierings, chairman-elect John Wilson and Fonterra Shareholders Council

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chairman Ian Brown. Brown conveyed his council’s decision to pass the fifth and final TAF precondition, giving the board a mandate to proceed with the launch of TAF. The fifth TAF precondition was the support of at least 50% of the Shareholders’ Council. @rural_news facebook.com/ruralnews

Rural News // October 23, 2012

12 news

Strategy before structure: Merino man’s advice pa m ti pa

STRATEGY SHOULD come before structure for new proposals to get the crossbred wool industry on its feet, chief executive of the New Zealand Merino Company Ltd, John Brakenridge, says. And premium returns to farmers will happen only when the strong wool industry is helping retailers to grow their sales. But he issues a warning that the industry faces total demise unless it finds a suitable commercial model. “There’s been a preoccupation with structures rather than strategy,” Brakenridge told Rural News. “Some important things in determining success for strong wool would be to have a very strong strategy that is not compromised, that is driven by a commercial entity with scale, that as much as possible can work vertically. “It should be able to participate in anything from fibre procurement to assisting how the product is promoted in the market. That doesn’t mean you have to own everything; it means – as an

“It is much easier today to say Merino is a superior product with superior markets but, to a degree, Merino has marketed itself into that position. “The argument is, why can’t crossbred market itself into a far better position than it has now? In fact there’s a strong argument to say that if it doesn’t it’s going to be completely irrelevant. “The fundamental premise of investment in marketing and research and development is equally applicable to crossbred wool and you need that to happen.” Brakenridge thought Wool Partners got incredibly close to getting off the ground as a good model and he was surprised it didn’t move forward. He says most farmers are aware of beyond farmgate. “But I think people underestimate farmers and what they have to have is something that is commercially compelling…. Again don’t put so much structure in front of them but, instead, more strategy on what you are going to do, how you are going to add value and how that value is going to be returned to

entity like ours – to have constructive input right the way through the value chain, right out to retail with a commercial entity. “Linking through to that vertical strength is a mindset that we are only going to get more money back for growers if we are adding value and helping someone to grow their sales, their margins and their reputation. If we can be helping someone at retail to do that, then at that point we can justify a premium that can come back through to the growers. “There are all those things, you lay out your strategy – but ideally you need a commercial model that has some scale to do that.” Brakenridge was asked by Rural News what lessons the crossbred industry could learn from the success of Merino. He doesn’t hold with the argument that the product simply isn’t as good. “If you go back to where we started, people were pretty much saying that about Merino too,” he says. “The active outdoors market was all polyester, polypropelene and cotton.

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Rural News // october 23, 2012

news 13

Outlook still positive despite confidence drop pa m ti pa pamelat@ruralnews.co.nz

LONG-TERM PROSPECTS are still bright for sheep and beef despite a big drop in farmer confidence, says Beef+Lamb NZ chairman Mike Petersen. This drop results from farmers coming off three seasons of record prices, Petersen says. But good debt repayment means the sheep and beef sector is in a good position. The latest quarterly Rabobank Rural Confidence Survey late last month found 44% of all farmers expect the agricultural economy to worsen over the next 12 months (compared to 36% in the last quarter). Just 15% expect conditions to

improve. Beef and sheep farmers had the lowest levels – 54% of beef and sheep farmers expect worse performance over the next year, with only 12% expecting an improvement. Peterson says all meat company predictions were for a reduction in prices for sheep meat but not beef. “For sheep meat the correction is significant – around $20-30 a head for lamb. On top of that wool prices are nearly half what they were last year. For those two reasons combined you are seeing a confidence drop. “Beef is different: it has held up and is fairly steady which is remarkable given the high value of the New

Dollar up, prices down spells decline

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THE HIGH New Zealand dollar and falling commodity prices were key reasons for farmers’ declining confidence, says Rabobank NZ chief executive Ben Russell. Russell says these factors were cited by 50% of farmers who expected conditions to worsen. Overseas market conditions and rising input costs were also of concern. Among farmers with a positive outlook, their confidence stemmed from expected positive flow-on effects on prices resulting from the US drought and tight food supplies globally. Farmer confidence has been on the decline since March last year, but the latest survey is the first to show farmers expecting a negative impact on their own business. Confidence in their own businesses was generally higher than in the agricultural economy as a whole. “This latest survey found 42% of farmers expect their own farm business performance to worsen over the next 12 months, compared to 29% in the previous quarter,” says Russell. Dairy farmer sentiment lifted slightly from the midwinter doldrums. On their own farm businesses, dairy farmers were evenly split, one third expecting performance to improve, at least one third expecting it to remain static and slightly less than a third expecting performance to worsen.

PSA IS having a big effect on horticulturalist confidence, says Rabobank. Forty-three per cent of horticulturalists expect their farm performance to worsen in the next year, up from only 6% in the previous quarter. Russell says concern about the impact of Psa on the kiwifruit sector had again risen this quarter and respondents had reported this as resulting in uncertainty and lower incomes. New Zealand Kiwifruit Growers Inc president Neil Treblico says the drop in kiwifruit grower confidence from the last quarter results from spring bringing out the worst symptoms of Psa, growers now facing a big drop in income as they regraft new species.

the sheep and beef sector has repaid a lot of debt, so the sector is in a strong position. “Farmers haven’t been silly with the money that was coming in over the last three years, they have

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Rural News // October 23, 2012

14 news

Miraka hits a million litres a day p e te r bu r k e

BIG MILESTONES have been passed by Miraka, the new Maori dairy factory near Taupo. Chief executive Richard Wyeth says the plant recently began collecting one million litres of milk in a single day from its suppliers. At the same time last year, in its first few months of production, the peak was 600,000 litres in a day . “This is a fantastic milestone for

Miraka. Hitting the million litre mark was due to the good season and an extra 43 new suppliers joining the company. Miraka now has more than 90 suppliers and also has a waiting list of others hoping to supply the company.” Wyeth says much more milk is coming in and earlier, resulting in them being 12% up on budget for August and also slightly up for September. The good weather with plenty of grass has been a huge factor. Many cows

have also calved early resulting in the big increase in milk flow for this time of the year. Combined with the good milk flow, Miraka is making leaps and bounds on the sales front. This time last year they had shipped just 50 tonnes of whole milk powder (WMP). However, so far this year, 3000 tonnes has been sold. Much of this has gone to Vietnam to Miraka’s cornerstone shareholder Vinamilk, the largest dairy company in Viet-

nam. Shipments of WMP have also gone to South America and other parts of Asia and China. Miraka is now looking to grow its business. The present plant is set up to produce WMP, but Wyeth says it can produce some skim milk powder. “But until we put in an AMF plant our cream is still going to Tatua Dairy Company. Obviously there is some demand for us to grow and to take the additional milk. We would look at other

products outside of just WMP over the next five or so years. The thing about WMP is it gets your foot in the door to the dairy industry so it provides a good baseline commodity.” Wyeth has just returned from a trip to Vietnam where he met with Vinamilk executives who are pleased with Miraka’s products and the overall strategic business relationship. @rural_news facebook.com/ruralnews

Wool interests look to trans-Tasman partnership pa m t i pa

CAVALIER WOOL Holdings (CWH) may be looking to discussions with Melbourne company Lempriere Holdings about consolidating New Zealand wool scouring operations. That was the indication of a statement made after the Australia company announced it was buying 64% of the New Zealand scourer New Zealand Wool Services International (WSI) out of receivership and entering into a lock-up agreement with five WSI senior employees and a retired employee for a further 11%. Premiere also plans to make a full takeover offer at 45 cents a share – up 22% of the last trading price of 37 cents. The deal is subject to Overseas Investment Office (OIO) approval. CWH has been leading a consortium in an unsuccessful bid to take over WSI’s assets since it gained Commerce Commission approval to do so a year ago. WSI resisted the move which it said would have created a wool scouring monopoly in New Zealand. But even if Lempriere takes over, CWH chief executive Nigel Hales says the opportunity to combine the two companies’ scouring operations remains. He says consolidation is needed in the face of declining wool volumes and competition from China for unprocessed wool. A combined scouring operation would bring “much needed efficiencies across the whole supply chain, to the benefit of wool growers, exporters and customers”. But WSI chairman Derek Kirke told Rural News there are plenty of rumours in the marketplace. “I am well aware of Cavalier’s comments but at this point in time the board has no indication that the potential new owners have any other intention than holding onto the company as it is and keeping the operations going.” He says by the time CWH could get into any discussions, its Commerce Commission approval for “a monopoly wool scouring business would be expired”. “So there would have to be a fresh application to the Commerce Commission and there is no certainty a second appraisal would give the right for a monopoly ownership.” Kirke says Lempriere cannot make a full takeover offer under the takeovers code until the application for OIO approval is lodged. That was likely to have been imminent earlier last week, he said. He did not expect the OIO application would be a complicated process and would take less than a month. WSI directors are required to seek an independent appraisal and once that is the received, the directors produce their own report, which may or may not agree with the proposal. “We are duty bound to work through the process in that order so until we receive the appraisals report we will not be making any comment about the merits or non merits of the bid,” he says. @rural_news facebook.com/ruralnews

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Rural News // October 23, 2012

16 news

DairyNZ director’s in for a pay rise SUDES H K I SSUN

DIRECTORS OF industry-good organisation DairyNZ are in line for a pay increase. The annual meeting this week in Invercargill is expected to approve the chairman’s annual fee increasing 3.5% to $76,500. Directors’ fees will rise 4% to $40,500. Directors also get $2000 for serving on a

sub-committee and $4000 for chairing a sub-committee. These fees will remain the same. According to voting papers, the board’s recommendation to increase director fees follows an independent survey of fees paid to directors in the ‘marketplace’. DairyNZ’s annual report shows last year it paid $478,000 in director

fees and $411,000 in the previous year. In 2011-12 its revenues were $88 million – $61m in farmer levies from dairy companies and $27m in government funding and farm income. It spent $83m on programmes and operations. As expected, Fonterra was the largest levy payer. The co-op’s 10,500 farmers paid $53m in 2012, up

from $48m the previous year after record milk production. Open Country Dairy paid $2.3m in farmer levy ($2.4m the previous year), Westland $1.9m ($1.6m), Synlait $1.3m ($890,000), NZ Dairies $390,000 ($500,000) and Tatua $478,000 ($434,000). Other dairy processors paid $424,000 ($27,000). In his annual review

chairman John Luxton says its board and staff have been focussing on five strategies: competitiveness, profit from productivity, people, achieving shared goals, and image and reputation. “It is a work in progress, but we are making progress,” says Luxton. According to DairyNZ, nationally the level of significant non-compliance

John Luxton.

with dairy effluent fell below 10% for the first time. The first five companies became ‘accredited’ designers of farm dairy effluent systems under a programme funded by DairyNZ and the Primary Growth Partnership Fund. There is also a high level of compliance with the Animal Welfare Code, according to a survey in 2011. Luxton says in April 2012, 92% of the New Zealand public agreed the success of the dairy industry is critical to the economy. He says 62% of the public have favourable impressions of dairy farming; and 63% agree New Zealand dairy farmers are the most efficient milk producers in the world. “DairyNZ has a key role to play in educating and ensuring that farmers are doing the right thing. We can and do tell the good stories of land stewardship but this all gets undone by bad practice and bad headlines. A good reputation is hard to win but easy to

lose.” The industry is also facing the challenge of growing milk production. Much of the industry’s growth is occurring in Southland and Canterbury. Milksolids production in the South Island has increased 7.7% annually since 2000. With just 15% of the arable land in these regions in dairy farming, there is still much potential, Luxton says. “However, if we want to achieve that growth and potential, we will need to rise to the challenges we are facing and continue implementing our strategies to deal with them. “DairyNZ, and the levy that supports its work and leverages significant further government and commercial investment in our industry, sits at the heart of that response. So do the partnerships we have with the many other organisations in our industry that are just as committed as we are to making a difference.”

State of the industry Average MS/ha is estimated to have reached 1000. Cow numbers totalled 4.7 million. Dairy companies processed a record 1.69 billion kgMS. The South Island has the highest proportion of Holstein-Friesian Jersey crossbreeds (42%). About 35% of all herds are operated as sharemilking operations – 19% as 50:50 sharemilkers and 16 % as variable order sharemilkers.

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Rural News // October 23, 2012

18 world

Largest cotton farm in Oz sold AUSTRALIA’S LARGEST cotton farm has been sold to a consortium which includes a Chinese textile maker. Cubbie Station a 93,000ha business spread across properties on the Murray-Darling Basin in Southwest Queensland, is now 80% owned by Shan-

dong RuYi Scientific & Technological Group Co Ltd, comprising Chinese and Japanese investors. The remaining shares will be owned by Lempriere Pty Ltd, an Australian family-owned group with a long history in wool trading and in managing agricultural

properties. A whollyowned subsidiary of Lempriere will manage the operation including marketing and selling its cotton production. Cubbie Station went into voluntary receivership in 2009, reportedly owing A$320million. Receivers McGrathNi-

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col announced this month that a sale agreement had been signed. It says the consortium, RuYi and Lempriere “have agreed to enforceable undertakings with the Australian Federal Treasurer in relation to the transaction.” The deal provides certainty for Cubbie Group and its employees, says deed administrator John Cronin. The sale reignited the foreign ownership debate in Australian politics. It also split opposition part-

ners Liberals and Nationals, who mostly represent rural constituents. National leader Warren Truss questioned why it is in the national interest for control of Australia’s most valuable farm, along with its massive water rights, to be ceded to overseas owners. “Under current rules it is very difficult for foreigners to buy a suburban home in Australia, but it seems the Treasurer has no issue with the biggest irrigation farm in the

country being bought by overseas interests. “While capital flow is welcomed, the Treasurer must explain how a purchase of this scale will not compromise market competition or pricing for Australian cotton, with Cubbie representing about 10% of our national cotton crop.” But Opposition spokesman on foreign investment, Joe Hockey publicly rebuked Nationals for speaking out against the sale. “They do not speak

for the Coalition. They do not even speak for the National Party or the Liberal Party. I speak on the foreign investment policy of the coalition. We support the Foreign Investment Review Board.” Treasurer Wayne Swan approved the sale on August 31 subject to a number of important undertakings obtained from the consortium in relation to employment, ownership, board composition, management and water use.

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emissions, with methane from livestock production being the most important type of farm-related emission. “Emissions from agriculture have not had as much attention as those from fossil fuels combustion,” says Purdue professor of agricultural economic Thomas Hertel in the Proceedings of the National Academy of Sciences. “But when the world gets serious about tackling climate policy, livestock will be an important part of that discussion. Livestock sectors are the most important contributors to non-CO2 greenhouse gas emissions and would be seriously affected if a tax or regulations were implemented.” The research by scientists from the UN Food and Agriculture Organisation, the Electric Power Research Institute and Ohio State University found wealthy countries alone would have limited success in decreasing greenhouse gas emissions from livestock production because it would give poorer countries, with greater greenhouse gas emissions intensities, an incentive to expand production. “In this case, we would

likely see continued expansion of pasture and cropping area in regions such as South America as agriculture encroaches on forested lands,” says Purdue research economist Alla Golub. “This negates greenhouse gas emissions reductions in the wealthy countries.” The research team looked at what might happen if emission regulations in wealthy countries were paired with incentives to retain forested land in poorer nations. They found that without new grazing areas, those poorer countries would not expand their livestock production as much. “Indeed, this combination of policies is quite effective at preventing ‘emissions leakage’ to developing countries while enhancing forest carbon stocks in the lower-income regions,” Hertel says. The effect, however, would be less meat available for consumption in the poorer countries and a price increase globally. “Just like a fossil fuel emissions tax would raise prices for energy, this would have an impact on agricultural prices,” Hertel says.

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Rural News // October 23, 2012

20 agribusiness Avoiding the debt noose are cheaper to run than old guys. In this new era a customer’s history with DEBT FUNDING structured so that it a bank is assigned no value; that’s why works for both bank and farm business sharper rates are often given or offered to means the debt is not experienced as a potential customers and withheld from existing, loyal customers. noose around the borrower’s neck. This week I had an enquiry from a This matter arises because many farms have in this era grown from small farmer whose bank told him they want to be repaid – and right family operations into You can fight now or else they will small-medium corporates. But often the change or adapt sell him up. The next day he received from financial control has and go with it. the very same bank not kept up with this an item of addressed change? You can fight mail – part of a marketing campaign – change or adapt and go with it. Well-structured and timely debt can that said, “It’s tough out there for busihelp these small corporates to grow. nesses just starting up; that’s why we’ve Insufficient working capital or poorly put together a market-leading package of structured debt may pit the bank against products and services designed to give a the borrower in a situation where no one new business a huge kick-start.” Unfortunately this bank was dishing wins. Invariably the bank has the upper hand so this ends up costing the bor- out the wrong type of kick. There are very good bank managers rower dearly. In past times, a borrower worked who understand credit and the business with a bank manager who was a pillar of farming. The problem is they are paid to sell of the community. Around him were his ‘tigers’who took diary notes in meetings their employer’s products. www.rural-finance.co.nz and converted the talk into action. Today the banks’ number crunchers • Stu Smith is principal of Rural Property have determined that computers, Finance Ltd, which has no ties or credit scoring models and young staff allegiances to any particular funder. stu s m i t h

Difficult balancing act protecting farmer incomes DROUGHT IN the US and New Zealand economics are coming together in a delicate dance that could affect returns to Kiwi farmers. Extreme weather patterns are a big worry. The US Midwest’s worst drought in 50 years is pressuring already volatile farm commodity prices. The region is a key world grain producer, with good soil, favourable climate, up-to-the minute technology and an educated workforce. The drought-diminished output of corn, wheat and soybeans will begin to affect the world food chain.

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Europe isn’t faring much better. A heat wave in Russia (the region’s largest grain producer) and the UK’s dry spring and wettest summer since records began in 1912 have also hit grain crops hard. The agricultural food chain is interlinked: if one area is impacted so will others be. An example is pork, the supply of which in the US is at its lowest since 1975 due to rising feed costs. Pigs eat mostly corn and the cost of feeding a pig to slaughter weight is now greater than the price a farmer gets for pig meat, hence a rush to slaughter and a tightening supply. But the recent bumper grain crop in Canterbury could benefit our grain producers with higher prices overseas. New Zealand’s agriculture exports are rising but offshore commodity prices remain volatile making our returns hard to forecast. Also, farm expenses in every category are on

the rise, therefore help is needed and the time is right for the Reserve Bank to start slowly start bringing down our base interest rates; the calls are growing louder for a cut following a 25 basis point cut early this month by the Australian reserve bank. The Australians cut their base rate from 3.5% to 3.25%, causing the Aussie dollar to drop rapidly against the US dollar and, to a lesser extent, our currency to drop against the US dollar, because the global market sees the Aussie and Kiwi dollars as interlinked. As our base interest rate sits at 2.5% there is room for a 25-point basis point cut soon, likely to help bring our currency down over the long term short-term to bring interim relief for

Kiwi exporters. The Reserve Bank wants to keep interest rates up for fear of inflation. But our inflation is at a record low. And lower interest rates mean consumers will get less return on their savings at a time they’ve been told to save more – hardly a great incentive when interest rates are at record lows. Lower mortgage rates will help many but may also put upward pressure on house prices – something the Government is trying to avoid because of inflation problems and housing affordability. Again this is a difficult balancing act. It is not as simple as saying reduce the interest rates or print more money because these things affect the whole economy and can be catastrophic. The kiwi dollar is strong because the fundamentals of our economy are stronger than those of the US and Europe. @rural_news facebook.com/ruralnews

TRAVEL FOR FARMERS Plan ahead for 2013! Travel with like-minded people enjoying a superb mix of farming, scenic and cultural highlights CHINA – May: Intriguing China including vibrant Beijing & Shanghai, a range of farms and enterprises, the Great Wall, Buried Warriors and the Silk Road plus a 3 day Yangtze River cruise and a unique stay in Inner Mongolia. SOUTH AMERICA – May: Chile, Argentina and Brazil diverse farming, cultural and scenic experiences. Buenos Aires, Santiago & Rio de Janeiro, Andes Mountains, Bariloche and Iguazu Falls. AFRICA – May: The best of Southern Africa... A wonderful array of farms, safaris, sights plus scenic garden route to Cape Town and Nampo field days. Stunning Victoria Falls/Botswana extension - amazing wildlife! TURKEY – May/June: Discover the delights of Istanbul, Gallipoli, Cappadocia and a short cruise on the beautiful Mediterranean. EUROPE – May/June: A grand farming, food and wine tour! Italy, Switzerland, Germany, Netherlands, Belgium and France. CANADA & ALASKA – June: Join our popular tour taking in Victoria, Vancouver, the Rockies, Calgary, Niagara Falls and Quebec - magnificent scenery, wonderful farms plus an optional 8 day Alaskan Cruise QUEENSLAND – June: “Winter in the Sun” Brisbane to Cairns, outback stations, farm stay, Darling Downs, Barrier Reef and more. UK & IRELAND – June/July: Enjoy the best of England, Scotland, Wales and Ireland – Highland Show, farms, gardens, villages, London, Edinburgh, Dublin, and more. USA – June/July: Grand Canyon, Las Vegas, Mid West heartland and more – farms, sights and rural hospitality second to none. SCANDINAVIA – July: Farms, fiords, and sights in Sweden, Denmark and Norway plus beautiful Stockholm, Copenhagen and Oslo. Fantastic extension to Finland and St Petersburg, Russia.

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Rural News // october 23, 2012

agribusiness 21 Road map to farm profitability IT’S EASY to pay lip service to the question “How can we help farmers make more money?” and plenty of farm service businesses do. Seales Winslow, now 51% owned by Ballance Agri-Nutrients, is putting considerable energy into showing rather than telling – demonstrating their commitment to the goal of farmer profitability. Seales Winslow chief executive Graeme Smith says they are upgrading their business systems and, critically, upskilling staff: “The aim is for staff to internalise that key message, ‘increase the profitability of farmers by delivering better nutrition through products, service and advice’.” The team needs the best knowledge and tools to be able to deliver on that promise. “At the centre of this upskilling we have our own nutritionist Dr Rob Derrick, and consultant James Hague, who we have partnered with. They are putting together the econometric models which will help our team work with farmers to assess how we can improve their bottom line. “All our sales staff have been given a laptop so they can access these tools while they’re on the road. It’s the key to providing the right advice.” The computer program developed for their staff is intended to help farmers identify routes to better economic returns. At a staff presentation of

this program it was clear to see this focus on profits; the presentation was titled ‘Routes to Profit: A Roadmap to Profitable Milk’. Hague has zeroed in on the big levers that will lift a farm’s real economic return, particularly variable costs such as feed and fertiliser. “One of the biggest costs in any business is not expenditure,” says Hague. “It is the failure to generate income economically…. The capital gains farmers have always relied on are at risk as economics dictate that farms should be worth what they can economically return. We therefore need to ensure farms return more profit from farming activity.” Smith says the commitment to a better understanding of nutrition extends beyond their own business: Seales Winslow has signed a deal with Lincoln University to work with Dr Grant Edwards to educate graduates and develop short courses for consultants. They have also have formed an independent advisory group that includes Lincoln professor Grant Edwards, Synlait’s Dr Eric Kolver, professor Warren McNabb (Riddet Institute, AgResearch, and Massey) and Waikato University professor Jacqueline Rowarth. This group will work in association with the Ballance R&D group led by Warwick Catto, so it’s all linked. “This aim of Seales Winslow – to make money for farmers – fits with the Ballance vision of making money for farmers

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freight where appropriate, with a view to increasing efficiency and therefore taking costs out for farmers. Ballance also owns IT company Farmworks, and these tools could be integrated into the service from Seales Winslow, further enhancing their ability to improve the economic return of their farmers’ businesses.

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Rural News // October 23, 2012

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 

 











































Lamb Market Trends





 



  































































































































































































 







  

 

 





 













  



































































































































































 





 

 

 























  

 















 











 

 

 





























 

 

 

























 







 

















 

 

 



























 

 























 









This Year 









Last Year

























 





 

 







 



   

 



















   



 







 







 











 





  

 







 





 

Beef Market Trends





90%







 



  

  









 





80%

70%











 





 

 









  

  



















 

 

 



























 









 

ANZ0661 - NatBank History RNews 70x544.indd 1

Rural News // october 23, 2012 

Beef  Farmgate beef prices hold Meat processors have enough cattle to kill for the capacity that is on and prices have been steady to slightly weaker over the past few weeks. 300kg bull and steer held on $4.25/kg in the North Island last week. Meat processors are cranking up capacity with most expected to be fully up and running towards the end of October, start of November. On the off chance the cattle kill doesn’t follow suit, there could be some upside in prices but meat processors won’t go crazy chasing cattle. In the South Island, 300kg cwt export prime steer remained on $4.25/kg last week while bull was static on $4.00/kg. Local trade prices have taken a hit with prices having fallen 10-20c/kg over the past few weeks. Farmers have struggled to finish cattle but with schedules having eased, it’s prompted some farmers to just kill now. US imported beef prices take a U-turn US beef traders continue to buy hand to mouth with most unwilling to take the risk of purchasing decent quantities of product while prices are at such high levels. Increases in US domestic cow slaughter had pressured lean beef values in recent weeks which has filtered through to the imported market however prices are now making a come back with imported 9OCL cow and 95CL bull increasing slightly last week to US$1.94/lb and $2.06/lb respectively. ‘Steiner’ market analysts have predicted significant price inflation for lean grinding beef into next year, predominantly as a result of improved foodservice demand as US unemployment moves lower. This bodes well for imported beef prices in the medium term.

Lamb Farmers killing the last of their hoggets 16kg cwt export lamb prices have remained flat on $5.61/kg (net) in the North Island and the chance of prices going any higher is fading. Farmers are killing the last of their hogget’s and this has been reflected in the kill stats, with North Island slaughter up 18% the week ending October 6 on the week prior to 154,000hd. In the South Island, 16kg cwt export lamb prices are steady on $5.67/kg (net). South Island lamb slaughter jumped 24% the week ending Oct 6 to 93,000hd. Meat processors are welcoming lambs up to 23kg cwt, but there is speculation that beyond the chilled Christmas trade, processors will be even more strict on lamb criteria by discounting lambs just 21kg and over.



 



 



 



  

















































































  





 

 

   















 

















 

 

 











 













 





























































































 



 



  



        

 

 



 









 





Overseas chilled lamb prices firm  The New Zealand kill is seasonally lifting, with throughput   up 24% the week ending Oct 6 on the prior week. This is   in line with seasonal trends and meat processors are        optimistic there will be enough old season lambs to meet chilled Christmas trade orders. New season lamb supply is questionable as lambs are a couple of weeks behind. Unfortunately any  new season lambs that are finished in time will unlikely fetch any     premiums over old season lambs. Negotiations for the chilled Christmas    trade are being settled, with prices up on where they have been this year     which has boosted NZ exporters confidence. However it is typical to see a     price spike for overseas chilled lamb heading into Christmas, but they’re     still at least 10% back on the same time last year.     Mutton exports fall in 2011-12 Farmgate mutton prices have been static for most of the year at $3.203.40/kg (gross) in the North Island and $3.10-3.20/kg in the South. Through the same period last year, there was plenty of competition for mutton with prices at least $1.00/kg higher. Strong prices last year encouraged farmers to slaughter which resulted in a whopping 83,800t of exported mutton during the 2010-11 season. With mutton slaughter having dropped 22% in 2011-12, exports fell by 17% to 69,708t.

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Rural News // October 23, 2012

24 opinion editorial

edna

Own goals cost Fonterra TO SAY that Fonterra has been through an unsettling time in recent years would be an understatement. Like the global dairy prices, the co-op has seen it all: ups and downs, freefalls and a few spikes in between. However, unlike dairy prices – which fluctuate at the mercy of issues outside the control of farmers – most of Fonterra’s misfortunes are home-made. It all started with the ill-fated move to partially float the co-op back in 2006-07. Not only was that a naïve decision by the board and management, it also sowed the first seeds of distrust among its shareholders. The fierce debate on TAF during the past two years has only fanned the fires of dissent. The 66% approval for TAF, achieved with the help of large corporate milk suppliers, was hardly a resounding success for the board. In November last year, chairman Henry van der Heyden announced his intention to step down in 12 months. Fonterra shareholders, especially those opposing opening the co-op to outside investors, may have been hoping for a clean break. However, the messy appointment of John Wilson, a van der Heyden protégé, is anything but. Clearly, Colin Armer resigned after losing the chairmanship, proving van der Heyden still has the numbers on the board. The outgoing chairman’s decision now to hang around after Wilson takes over is raising eyebrows. Rightly or wrongly, Fonterra shareholders do not believe Wilson has asked van der Heyden to stay on, rather that this was the plan all along. Then there is the question of a deputy chairman. Some shareholders rightly question why Fonterra doesn’t have a deputy chairman, a natural successor if the chairman goes for whatever reason. Why was van der Heyden reluctant to appoint a deputy? All this makes the 2012 director elections more interesting. Wilson is almost certain to regain his seat, therefore retain the chairmanship. Embracing TAF has been difficult and divisive for Fonterra. At a time when it needs stability, questions on transition to a new chairman are rocking the boat further. Van der Heyden should have made it clear from the start that he would stay on as a director to ensure stability. But Fonterra’s communication with shareholders has always been far from perfect. Sadly, the co-op hasn’t learnt that shareholders don’t like surprises.

“Rivers should be fenced to keep them out!”

the hound

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

Something to chew on

Greens still hate farming

Cooked their geese

YOUR OLD mate’s comments about LIC avoiding the controversial hairy-calf issue and talking about anything and everything else did manage to raise a good humoured bite out of the co-op. A note and a couple of dog biscuits were sent to yours truly’s editor, after the October 2 issue of Rural News came out, with the following message: “Your mate sounds hungry – so here’s a snack for him/ her and one for you”. Not sure if this was meant to shut your canine crusader up, but at least it gave him something else to chew on for a while.

IF YOU ever thought the Greens had changed their stance on farming, a recent diatribe by former Forest and Bird officer and MP Eugine Sage on the proposed irrigation scheme in the Hawke’s Bay proves they are an antagonistic as ever: “Government should not be encouraging Hawke’s Bay Regional Council to spend $80 million on the proposed Ruataniwha irrigation and hydro scheme,” Sage ranted in a Green Party newsletter. “Irrigation leads to land use intensification… [which] leads to water pollution.”

THE ENVIRONMENT Court’s revision of the controversial One Plan in the Manawatu has caused angry cockies in the region to turn their guns on Fish & Game. Apparently, members of the hunting and fishing lobby are going to find it hard getting permission from farmers to hunt or fish on their land where the One Plan is set to be imposed. The Hound thinks it is fair enough for farmers to refuse requests by cardcarrying members of F&G to gain access to fish or hunt on any farmers’ land in the Manawatu/ Wanganui region.

Save

Fresh-faced

YOUR OLD mate is flabbergasted by the New Zealand media’s infatuation with, and deference to, the obese German with the fake name Kim Dotcom – quoting every utterance and claim without contest. The Hound is astounded to watch the fawning media pack let the convicted felon and alleged internet pirate rant on about “ethics” or the lack of them in others without him question. It’s like taking the word of another fat, fantasy figure of supposed Germanic heritage – Sgt Shultz from TV’s Hogan’s Heroes show – about prison security.

THE HOUND reckons sheep farmers feeling squeezed by the drop in lamb prices may want to look at whipping around the lambing paddock to pick up afterbirth judging by the money it is fetching. Apparently the prickly international TV ‘talent’ show boss and judge Simon Cowell keeps his stony face smooth and fresh with regular sheep-placenta facials from Kiwi ewes. Britain’s Mirror reports the ‘talent’ show supremo is so convinced of the rejuvenating properties of afterbirth he has become a devotee of the $650 treatment.

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Rural News // october 23, 2012

opinion 25

Golden ride on Alliance’s roadshow ALLIANCE ROADSHOWS are always must-see events; the recent cooperative meeting at Milton appeared to have the catchy theme ‘too much for too long.’ It was a message most sheep farmers will quickly recognise as our meat industry leaders prepare us for the inevitable drop in schedule prices, when the season gets under way. As well as the ‘being over-paid’ issue, there is the excess killing capacity problem. The reality is lamb numbers are not there and the dairy industry will be around well into the foreseeable future. Drive into the rolling green countryside where lambs were once finished and the reason for radical change is obvious: meat has been replaced by milk. The Alliance team of chief executive Grant Cuff and chairman Owen Poole had seemingly predicted areas of concern and the likely questions. They were prepared. In fact all they had to do was try to make the nice questions seem interesting. Closing down or restructuring the present works are obvious options which have already begun with the closure of Sockburn and the inevitable wind-down of Mataura’s sheepmeat operation. Dairying does have cows and beef processing has been increased with a $15 million state-of-the-art

plant at Mataura. Cuff told the large Milton gathering of suppliers what most already knew: that the sheepmeat market was challenging and returns to suppliers would be back on previous seasons. The market was also heavily affected by the exchange rate. Two seasons ago when good export lambs were worth up to $140 the exchange rate was about US 44 cents; today it is US 82c. Cuff said at the present exchange rate that same lamb was worth $90; in August it was worth $95. By Christmas it could fall to $85 if the New Zealand dollar continued to strengthen. Although the exercise took out several chains Cuff assured suppliers there is more-than-adequate processing capacity. At Lorneville the eighth chain has yet to be used. There are also Saturday mornings and shift work if needed. Most of the Mataura stock would be processed at Lorneville with some taken to Pukeuri depending on location. There were positions available at Lorneville for up to 260 of Mataura’ 350 employees, but the 60km drive from

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Mataura south each day is unlikely to attract much enthusiasm With decreasing sheep numbers, procurement in recent times has become an emotive issue. The big cooperatives have emphasised the huge importance of loyalty. For most farmers there are different degrees of loyalty; to a great extent it depends on who offers the best deal. This season Alliance is putting money where once there were words. Procurement will recognise and reward committed loyal suppliers. We suppliers will be classified – a bit like bank credit card holders – and labeled ‘platinum’ (those who send 100% of their livestock to Alliance), ‘gold’ (100% of one species), or ‘silver’ (uncommitted but regular suppliers). All have to be Alliance shareholders. Once fitted into our straitjackets and providing we are platinum or gold we will be eligible for the loyalty rewards. These include an advance upfront payment in October. The payment is $20 a head for up to 80% of the supplier’s export lambs. These monies will be recovered later on by Alliance at

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the time of processing or when store stock are sold. The exercise allows the cooperative to lend funds to platinum/gold individuals at a time when farmers can often be a little stretched financially and at the same time as the Alliance coffers are well placed. The pool retention (10%) will be dropped and 100% of schedule paid at time of processing. Terms and conditions will apply. Owen Poole said the move sat well within the cooperative philosophy. Alliance had listened to suppliers and recognised commitment should be rewarded. This reinforced the mutual dependence of both parties and these changes are just the beginning. Poole said changes were proposed in the selection of directors. This has to be done without compromising shareholders’ democratic rights. The changes will limit the time directors can stay on the board. To keep the board ‘fresh’ elected directors will be moved on after 12 years and appointed directors after nine years. For me and my mates there was the sad announcement that Owen Poole’s tenure as chairman would end next year. However it’s reassuring to see his long-time protégé Grant taking on more of the glamorous stuff.

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ABC audited circulation 80,767 as at 30.06.2012

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 // October 23, 2012

26 opinion

Fracking creates jobs and reduces gases! IN PARTS of the country, fracking—the process of fracturing deep rock strata by injecting high pressure water, sand and other compounds to release bound methane gas— has become highly controversial. For instance, this winter in Hawke’s Bay, 40% of submissions on the draft 10-year plan were opposing fracking. The indomitable Greens have taken Australian antifracking campaigner Drew Hutton on a national tour to fan the fires of local concern (as they have with

two anti-GM campaigners even more recently). Several local authorities have placed moratoria on fracking and the Parliamentary Commissioner for the Environment is preparing a report on the practice. Some claim there has not been so much angst over any issue since the antinuclear movement of the 1980s. Fracking has drawn controversy overseas too. Yet while opponents complain about violations of property rights, contamination of groundwater by methane and fracking solutions (industry states

that these are 98% water and sand), generation of small earthquakes and possible adverse effects on human health and the environment, governments and the oil industry are enthusiastic about fracking’s potential. The procedure can release large amounts of valuable gas from otherwise inaccessible reservoirs, which improves energy self-sufficiency, creates jobs and even reduces greenhouse gases. How so? Burning natural gas produces 45% less carbon dioxide than burning the energy equivalent in coal.

A few weeks ago I came upon a new report by Bjorn Lomborg, author of The Skeptical Environmentalist, a controversial book from 2001. (He has since authored another book

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of $25 billion a year, but has achieved CO2 reductions of less than half the US on a per capita basis. The US reduction in CO2 emissions is double the total reduction achieved by Kyoto Protocol mitigations throughout the rest of the world. Ironies abound. The US has long been castigated for failure to ratify Kyoto. Many Republicans deny anthropogenic global warming exists. Yet the US has almost inadvertently lowered carbon emissions more successfully than most (maybe all) and at little cost, generating employment and income to boot. There is one thorn amidst all this rosiness. As New Zealanders know, methane is a more potent greenhouse gas than CO2. Some of the methane liberated by fracking could elude capture and seep directly into the atmosphere. However, it seems for the moment that environmental benefits from fracking outweigh liabilities. • Dr Warren Judd is a farmer and former editor of NZ Geographic

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and considering the population has risen by 45+ million in that time, per capita CO2 emissions have fallen 20%. (New Zealand’s total emissions are the equivalent of 72 million tonnes CO2.) Fracking in the US has produced so much natural gas that prices have dropped dramatically and this has lead to replacement of coal by gas in US electricity generation. In 2008, electricity companies paid $US9.26 per 1000 cubic feet for gas, whereas in May 2012 it was $US3.02 and falling. Five years ago, coal fuelled at least half of US electricity production and gas 20%. In March 2012 they became even at 32%. How does this compare with CO2 reductions achieved by renewable energy? The US’s 30,000 wind turbines reduce emissions by 50 million tons, biofuels 10 million tons and solar panels 3 million — in total less than a tenth saved by fracking gas. According to Lomborg, Europe has opposed fracking and subsidised renewable energy to the tune

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Cool It and is a professor at the Copenhagen Business School). The new report was based on data (available online) from the US Energy Information Agency. It shows that CO2 emissions in the US have fallen dramatically in the last five years, and attributes this to cheap gas from fracking. Being skeptical myself, I checked the data and made extrapolations for the rest of 2012 based on last year’s figures -- and it all checked out. So in 2012, US CO2 emissions from using energy are expected to be 5100 million tonnes, compared with 6020 at their maximum five years ago. Indeed, they will be the lowest for twenty years,

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Rural News // october 23, 2012

opinion 27 Social credit Minister, others need to act now alive and well! RE YOUR editorial ‘Blowing in the wind’ (Oct 2): will you please explain to me, and thousands of others, why we can’t print some money? Such action helped New Zealand pull out of the Great Depression in better shape than most. I’d like to know why and how such money creates inflation or makes the country poorer if it is invested in basic infrastructure – power, sewerage, rail, etc, where it is an internal debt against the citizens at peppercorn interest. (Even the CHCH rebuild?) Yet to finance these basic needs we are required to borrow offshore, thus benefiting overseas investors, or worse still we sell them to offshore owners who then rape the population and end up in control – a double loss for New Zealand. As you state, the New

Zealand dollar is amongst “the 10 top traded currencies in the world”. Answer me this: how much tax is collected on the trading of this ‘commodity’ – money – on behalf of us stupid locals who are being used as a casino for the rich? There is no inflationary effect in collecting a ‘financial transaction tax’ on this gambling or charging an upfront 6% investor tax on incoming currency, as I believe is done by Brazil; genuine investors still come but gamblers are discouraged, thus helping currency stability. There’s one result from a hot wind blowing — ostriches bury their heads in the sand. John McCaskey Waipara (Candidate in many past elections for Democrats for Social Credit)

Hound annoys another Fed THIS HEADING bitch enjoys chewing a bone now and again, but the Hounds ‘mate (Rural News, Sept 18) got my hackles up. When one’s very existence is threatened by external influences, the ‘pack’ is our strength to bark louder when the threat does not allay. The Hound’s mate sounds uniformed when speaking of ‘idiots’. When he points a finger, he should check to see where the other three fingers are pointing. Hound’s mate can come and chew my bone any day. Barb Hunt Federated Farmers member RD2 Te Karaka

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RE THE ‘One Plan from hell’ editorial (Sept.18): Minister David Carter now has the reports; the question is what is he going to do about it? Clearly, the law is an ass on the Horizons, but the donkey has already bolted. MPI’s failure to support agriculture during the One Plan process is a disgrace. DOC had a free rein to push the environmentalistagenda. Where was the economic and practical balance from MPI? So far we have had little but wind from the minister. As Minister of Local Government and MPI he urgently needs to step up. The One Plan decision is damaging the Government’s economic credibility; on the one hand Minister

Joyce is talking about lifting New Zealand exports from 30-40% of GDP, meanwhile Minister Wilkinson is ensuring DOC is busy applying the handbrake. If this Government is serious about improving growth opportunities, changes to the RMA are urgently required. The recommendations that need to be implemented can be found in the Technical Advisory Group report to the Minister for Environment dated February 2012. The report’s recommendations are ten years overdue and it’s time the legislation was changed to give social and economic

considerations higher importance in the RMA. Also, a cull is needed at the Environment Court. You don’t need to go far to find ‘wally’ decisions by the court. For example, in the recent One Plan decision relating to landscapes, the court has included wind farms as an ‘outstanding natural landscape. What planet are these guys on? A review of landscape law is required before the moss in the cracks in the concrete outside the Skytower in Auckland is considered ‘natural’ by an Environment Court judge. Nigel Harwood Golden Bay

Rural News // October 23, 2012

28 management

Leading on farming within limits Farmers around the country are being warned to expect strict limits on either nutrient inputs or losses. Peter Burke reports from a farm in an area already subject to such constraints. TAUPO FARMER Mike Barton played a leading role in negotiating with Environment Waikato over its controversial nitrogen loss law for the catchment, Variation 5. It’s a law which has hit all farmers in the area in the pocket, both in the short and long term. It took over a decade to come into effect but similar limits loom in the Manawatu/Wanganui region and what’s happened in Taupo is “coming to all of you soon,” he warns. As someone who’s been

through the process, he questions the way farmers are reacting elsewhere, given the changes are designed to improve water quality. “Too many farmers are stuck in the space where they keep saying that farming doesn’t damage waterways. This seems to be their strategic response,” he says. In the early stages of Variation 5, farmers were all talking about protecting property rights. “But property rights assigned to title don’t give

you the right to pollute a downstream property, so that argument just doesn’t hold water.” Barton’s interest in farming goes back to his early teens when he went hunting with his father. He became involved in deer farming, then worked in the tertiary education sector for more than twenty-five years. But the love of land was always there and while having a corporate day job he bought rough blocks of country and developed them.

“I would fence them, clear them, and sell them to buy a larger block. That was how I accrued the equity to go farming. “This is the third farm I’ve owned. I didn’t access family money or anything like that. I never really made a significant cash surplus on any of those blocks of land, but I made capital gain each time.” In 2004 he bought his present 148ha (118ha effective) ex-ballot farm. His original business plan was to finish 300 prime cattle a year.

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“I understood the Variation 5 legislation and made a conscious decision to purchase. I think I was the only person to buy farmland in about a four year period in the catchment just because everyone was gun-shy of Variation 5.” Barton admits he wavered between thinking he’d done the right thing and “My god, what an idiot!” “At times the legislation looked frighteningly difficult. At one point they were talking about consents for five years. Well, you’d never get a bank loan on a property that had a consent for five years so in due course we won the right for 25-year consents.” Once on the farm, he immediately became deeply involved in the Variation 5 consultation process. “I have always believed that if you are going to be affected by something you need to get involved boots and all otherwise it will get done to you.” Barton joined Taupo Lake Care (TLC), which was set up in 2000 when Variation 5 was first mooted. It was an incorporated society representing 95% of both private and Maori authority owners in

Taupo farmer Mike Barton.

the catchment. The organisation has, for 12 years, managed to keep the vast majority of landowners in the catchment ‘singing from the same song sheet’. TLC negotiated with Environment Waikato (EW) despite the fact that at times they were poles apart. Barton was elected chairman in 2006. “What this did was to consume me and I lived and breathed it. When the Environment Court sat to hear appeals in 2007, I devoted 155 days where I was off the farm and involved in the process. “There were a number of other farmers similarly committed. We were fortunate to have such a strong team.” A small group of “early adopters” had accepted variation 5 was going to happen and had resolved to make the best of it; a group in the middle of the bell curve were waiting to see what happened; and there was, and is, a tail that would and will never accept it. “There are still people in the catchment who think that we did the wrong thing [but] hopefully the bulk of people will agree that history will show that what we achieved here was the best deal as we could have got.” Barton says there were times when it was extremely difficult and stressful, given the responsibility he had negotiating a deal that he knew would have an impact on the lives of others. He wrote and got approval from TLC members for the submission he prepared for the Environ-

ment Court. He says he always knew the devil of Variation 5 would be in the detail and while farmers never questioned the need for a nitrogen cap, they felt many of the proposals put up by EW were unworkable. TLC hung in and negotiated its way through the process to get a deal. “We were increasingly being confronted with science that we either had to accept or reject, and much of it was not carried out in the catchment under our soil type or climate. We argued successfully for a considerable amount of research to be done in the catchment.” However, even today, the science around water quality for diffuse sources of pollution is uncertain. What TLC eventually signed to was a means of protecting Lake Taupo. Barton believes the farmers of the catchment have made huge personal sacrifices for the greater good of all New Zealanders. In contrast, the government who created the problem by developing the land in the 1970s abdicated its responsibilities. “Seventeen years after selling farmers the balloted farms, they were saying to them: ‘you are polluters – you will need to go’.” His message to farmers throughout the country is clear: “Look at what happened in Taupo; get together in catchment groups; deeply understand the issues, the science, and the regional economic impact. You need to work together and support each other.”

Rural News // october 23, 2012

management 29

Barton’s branded beef initiative Some could argue Mike Barton (see main story) was more psychologically prepared when he took over his Taupo catchment farm in 2004. Variation 5 was going to happen and it was just a matter of the thrashing out final details. Nitrogen caps for each farm, including his, were set based on the best single production year between 2000 and 2005. “I am capped at my 2004 production levels which was the single best year when the climate and market and everything else came together. It allowed us to stay in business as usual, but the thing that’s going to sneak up on all of us is rising costs because [we] can’t grow stock numbers.” When he took over the farm he had 120 HerefordFrisian breeding cows which he put to a Simmental bull. All progeny plus some bought in were finished. The nitrogen cap put an end to that. “Our business is now predicated upon dollars profit per kilogram of nitrogen leached. That’s the way I have to run my business and we discontinued with breeding cows.” He’s found a new and innovative way of making his farm profitable. Since 2009 he’s been buying in weaners, normally Charolais x Angus, and finishing

them before their second winter, cutting cost and nutrient loss. He doesn’t use any applied nitrogen but focuses on managing clover content to fix nitrogen and raise pasture quality. Young stock also leach less nitrogen than mature cattle, he points out. He’s set about adding value to his produce with a brand built on protecting the iconic lake: Taupo Beef. The value proposition to consumers is that buying meat produced under the catchment-wide cap is protecting the lake and they should pay premium for it. He’s persuaded EW to endorse it based on their environmental auditing. Greenlea Meats in Hamilton provide traceability through their works so consumers are guaranteed meat produced under the environmental protection systems the brand promises. “We started out with a four month trial in July 2011,” explains Barton. “We deliberately chose that period because the rugby world cup was coming up so we had a large number of overseas visitors coming to Taupo.” The trial involved three restaurants and a butchers shop in Taupo. “We asked those restaurants to make Taupo Beef the most expensive item on the menu. We put

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a lot of work into making the quality of the meat was as high as we could get it because every chef we talked to said ‘yes, we’ll try it, but only if it’s as good as we can get’,” he recalls.

The trial was a huge success. At the Hilton, Taupo Beef outsold other beef by 4 to 1 despite, or perhaps in part because of, the price premium. to page 30

Commanding a premium: some of Barton’s Charolais cross cattle.

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Rural News // October 23, 2012

30 management

Herbage seed tips tweaked Another spring, and another suite of subtle tweaks to herbage seed agronomy to take on board. Andrew Swallow reports DON’T CLOSE grass seed paddocks too early; heed a tweak in nitrogen rates; take advantage of new chemistry to keep crops standing longer and protect endophytes. Those

are among the messages AgResearch’s Phil Rolston, FAR’s Richard Chynoweth and PGW Seeds’ Murray Kelly have been relaying to growers at a series of discussion group meetings

across Canterbury. “We do know that under normal conditions if you close too early you sacrifice yield potential,” Kelly warned at Gary Talbot’s, Temuka. “You

wouldn’t want to be closing this any earlier than [October 25],” he said of the PG One50 crop the meeting was held in. “It’s 20 days later flowering than Nui.”

Rolston echoes the need to look at flowering date when working out closing date. “There’s such a wide range of dates for the cultivars on the market now.”

Using Nui as the benchmark, if the cultivar’s flowering date is up to 14 days later, then simply add the same number of days to the traditional closing date for Nui in your region. For every day over 14 later than Nui, add half a day to the closing date. “As you get into the later flowering material it does get a bit more complicated.” Irrigation buys flexibility, particularly with annuals and Italians which are prone to “shut up shop” if it gets dry, but for those brave enough to close later, the rewards can be considerable. A closing date x pgr trial nearby in South Canterbury two years previously found Crusader closed on October 25 yielded 800kg/ha more seed on average than

plots closed ten days earlier. “And we had a lot better activity from the pgr when we put it on following later closing.” The advantage in a similar trial at Ashburton was even greater: 1275kg/ha, a gain of 34%. Such Italian cultivars are also very tolerant of the embryo seed heads being removed by late closing, so if water isn’t an issue, the risks of later closing are minimal. “With an Italian you can take up to 50% of the heads off before you see any effect on seed head density.” Taking a crop of baleage is an option, though such a drastic defoliation does give the crop a shock and should be done about 10 days earlier than closing in a grazed situation. Also

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“They all said we want to do this on a permanent basis and so what was a trial has now become a way of life. We’ve increased the number of restaurants and we can’t keep up with demand.” Two other farmers in the catchment have joined and demand has extended to Auckland, Wellington and even the South Island. Steaks, prime burgers and stroganoff’s carry the brand, with various cuts used. Those that aren’t are processed by Greenlea and sold unbranded through normal channels. The restaurants now want Taupo-branded lamb and one day Barton is hopeful of adding venison to the product list. Out of years of adversity over Variation 5, a winner has been found. “The other thing it’s done is radically improved my motivation as farmer because I now understand what I need to do to have really good quality meat,” says Barton. “It makes me think more about what I am doing and I can understand the connection between what I am doing and how diners are going to experience the end product – and that’s a really good thing.”

Rural News // october 23, 2012

management 31 Talking ryegrass: FAR’s Richard Chynoweth, Agresearch’s Phil Rolston, and PGW’s Murray Kelly.

keep traffic to tramlines and leave at least a 6cm stubble. Rolston notes tolerance to loss of seedheads pre-closing is “completely different with perennials” where about 5% loss is the limit before yield is impacted. Where crops become uneven as can be a problem with later closing in grazed situations, topping “is probably a really good call.” “It’s more than just cosmetic. If you don’t top you’ll probably have different heading dates come harvest time.” Nitrogen needs to go on half immediately post

closing, but timing of the remainder is flexible, trials with applications at three, six and nine weeks after the first showing no difference. “With that second application you do have a very wide window.” There’s even some evidence that delaying the second application can increase yield. “The story emerging is that if you pile the nitrogen in before the Moddus goes on, the pgr has a lot more bulk to dilute it and is less effective.” That flexibility means those with irrigation can time the second nitrogen pass to ensure it’s washed

Cereal volunteers UNSIGHTLY AS they are, cereal volunteers won’t impact ryegrass seed yields until they reach 15-20 plants/m2, PGW’s Murray Kelly and FAR’s Richard Chynoweth say. “Ryegrass is really competitive. Vice versa that’s why it only takes a few ryegrass plants to reduce yields in cereal crops.” However, as Agresearch’s Phil Rolston points out, contamination of samples for export, notably to Australia, is the concern. Regardless of whether a shrivelled cereal grain is viable, just one in a ryegrass consignment can get it rejected.

in, and even on dryland growers could watch the forecast and aim to apply just before rain, suggests Rolston. As for how much nitrogen to apply, FAR has tweaked the formula down

to 175kg/ha, minus mineral nitrogen in the 0-30cm soil profile. Soils with high incubation N (ie soil nitrogen which is likely to become available later in the season) allow for further fertiliser reductions.

New pgrs and fungicides THERE ARE now three generic formulations of trinexapac-ethyl, the active ingredient of key ryegrass plant growth regulator, Moddus, on the market, as well as the established brand. But because trinexapac-ethyly is such a mouthful, expect to hear researchers and advisors talking about “TE”, says Rolston. Two of the generics, Trinity and Trexel, contain the equivalent amount of active as Moddus, at 250g/ litre, while Optimus contains 175g/litre. The label rate for all is 800ml/ha so Optimus delivers a lower dose of active but FAR’s research to date backs up the manufacturer’s claim that “even though the active ingredient rate is lower, it does the same work litre for litre,” says Rolston. “In terms of response to active ingredient amounts, it’s quite a significant enhancement of seed yield, though we need another year’s data to see how it holds up.” Seguris Flexi’s addition to the fungicide armoury in ryegrass offers another option which appears safer on cultivars carrying novel endophytes. When partnered with a triazole, yield responses are a match for the previous standard triazole plus strobilurin approach.

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Rural News // October 23, 2012

32 management

Merino breeding value focus andrew swallow

NZM’s new geneticist, Dr Mark Ferguson.

A MAJOR drive to get Merino stud breeders, and their customers, using breeding values is

underway. The New Zealand Merino company this week [Oct 23-25] is running workshops in Cheviot, Alexandra and Omarama aimed at getting

stud breeders up to speed with using the values generated by the Merino Select database in Australia. “Only about 10% of

studs are using them in the merino industry here,” NZM’s technology transfer manager Nick Hamilton told Rural News. “If we could get that up to 75% using them in two years’ time, we’d be pretty happy.” A follow-up series of workshops for “commercial” – ie non stud stock – producers is planned for next month. “That will be more about what to look for in a stud breeder and the questions you should be asking your stud breeder. The idea is to educate our stud breeders about using breeding values before we get the commercials asking about them.”

Brakenridge, says the desire to provide farmers with an easy care and market-led sheep marks the beginning of a new era in New Zealand’s sheep industry. This can be achieved through careful selection and amplification of existing genetics, rather than using some of the more controversial techniques that have been discussed in recent years, he adds. Ferguson says molecular genetic technology will be used to build a new footrot genetic test. “Importantly, this test will also check the animal’s genotype for all production and health traits. This technology means

“Merino have been managed and selected mostly to produce wool for the last two centuries.” NZM has recruited Australian geneticist specialising in fine wool sheep, Mark Ferguson, to facilitate the uptake of breeding values, and drive selection of stock to meet both fibre and meat production goals. “Merino have been managed and selected mostly to produce wool for the last two centuries and therefore remain relatively unselected for meat and reproduction traits,” says Ferguson, who joined NZM earlier this month. “There is enormous scope to bring more balanced selection and more strategic nutrition into the Merino industry to unlock its potential.” Ferguson’s work will also assist NZM’s aim to extend the geographic range of fine wool sheep, improving breed robustness, and develop sheep that optimise traits for productivity and returns. “The benefits for the market will be evident in greater confidence of supply and consistency of quality, and exciting contract opportunities with the likes of Icebreaker on the fibre side and Silere alpine origin merino for meat,” says the Christchurch-based company. Chief executive, John

that a drop of blood collected from a lamb’s ear at birth could be used to not only predict the likelihood of that lamb contracting footrot, but also to predict how much and what quality wool it will cut as an adult, how fast it will grow, its likelihood of getting a worm burden, and dozens of other traits including what the consumer’s eating experience will be when that lamb hits the plate,” he explains. The work is part Government funded through NZM’s Primary Growth Partnership (PGP) grant. NZM says it handles about 80% of the Merino clip and finer-edge mid micron wool in New Zealand, equating to circa $150 million of fibre sales a year. Its contract model creates strong connections and valuable relationships between grower suppliers and premium global brands using the fibre. Last year it launched Alpine Origin Merino, a joint venture with Silver Fern Farms that, with a branded niche approach, aims to improve Merino producers’ returns by adding value to merino meat and co-products. More on sheep breeding 36-39.

Rural News // october 23, 2012

management 33

Nut out drench strategy now A N D REW SWA L LOW

WITH LAMBING over on most farms, and tailing too in many cases, thoughts should be turning to worm management, if they haven’t already done so, says a spokesman for the national industry- and Government-funded initiative Wormwise. “Look at your whole system: what animal classes you have, the areas you expect to be grazing with what stock, and what you expect the level of contamination of those areas to be based on grazing in the last six to nine months,” advises Trevor Cook. Strong pasture growth last autumn appears to have left a legacy of high larval challenge on pastures now, which is causing problems in some flocks, particularly in the west of the North Island, he notes. “Normally where there are problems it’s because ewes are underfed but this year generally they’re not and they’ve still succumbed.” A possible factor in that is the relatively low uptake of advice to use an autumn “exit drench” with either one of the two new actives on the market. That said, most ewes should be getting their immunity back post lambing now, so only severe cases merit intervention. As for lambs, tailing drenches gener-

ally don’t pay because of the protection ing a faecal egg count is needed to check they have from milk, so the focus should the level of challenge lambs are facing. be on what to do during and post wean- “Find out whether what you thought ing, says Cook. The exception would be would be happening, is happening.” Where lambs are weaned onto pasdoing a faecal egg count on lambs in the South Island to check if nematodirus is ture with low levels of contamination present. If it is, then that’s a situation and FECs come back low, there’s an where a pre-weaning lamb drench may opportunity to extend lamb drench intervals, but where the challenge is be warranted. While a weaning drench is, and high the plan should be to drench every should be, more or less standard prac- four weeks post weaning. With drench resistance widespread, tice, how it’s done does need some thought, says Cook. For resistance rea- a faecal egg count reduction test should sons, using a combination product is a must, and lambs shouldn’t be drenched onto pasture that’s going to be totally worm free, otherwise the only worms that get onto that pasture will be the ones that survive the drench, potentially creating a highly drench resistant population, he warns. Putting weaned lambs onto cleaner, but not spotless from a parasite point of view, pasture is good practice. “Areas that have been grazed by older stock classes or by another species such as cattle,” he suggests. Four weeks post wean- Wormwise national spokesman, Trevor Cook.

be done at least every five years – more frequently on properties regularly importing stock – to be sure the products used will work. “There can be a lot of resistance before it becomes visually obvious that something’s not right. A drench may only be 90% effective but you’ll have no idea that that’s the case.” Research has shown such a drop in efficacy cuts growth rates about 14%, he notes. “The value of knowing a drench is fully effective is very high.”

Flexible weaning dates TOO OFTEN weaning date is talked about as if it’s engraved on tablets of stone, says Cook, but there are good reasons to bring the date forward in years when feed gets tight. “Seventy-five percent of a lamb’s feed from birth to weaning is pasture so the quality of the pasture they have access to is the key to good growth rates.” On the ewe, lambs may be content because they’re still suckling, but in practice if feed is tight growth rates will be compromised because the ewes take the best feed, he explains. “Almost inevitably you’ll find lamb growth rate really drops off and you’re almost always better to wean than leave them on. They might feel comfortable still with their mums, but if good quality pasture is scarce, they’re relying heavily on a decreasing milk yield.”

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Rural News // October 23, 2012

34 animal health

No problem in cold stored colostrum AL AN HARMAN

Just as good: US work found no nutritional downside with stored colostrum.

A STUDY looking at the wider implications of cold storing colostrum has given the practice a pre-

liminary all clear. The Texas A&M University AgriLife Research and University of Florida report notes most studies analyse the effect of refrig-

eration or freezing on preservation of immunoglobulins, but the impact of such storage on other immunological factors had been unclear.

“Passive transfer of immunoglobulins is the key element; however, colostrum also is an important source of nutrients, non-specific immune factors and biologically active compounds,” explains AgriLife Research ruminant animal health scientist Pablo Pinedo, one of the report authors. Pinedo and University of Florida professor Arthur Donovan looked for differences in health in 489 Holstein Friesian calves fed fresh, refrigerated or frozen colostrum from birth. Each calf was monitored for survival, number and length of illnesses, and average daily gain. “The objective was to

assess the performance, health and survival of calves fed fresh colostrum from their dams compared to calves receiving colostrum that was not from their dams and had been treated with potassium sorbate preservative and stored frozen or refrigerated,” says Pinedo. Preliminary results indicate colostrums origin – fresh maternal versus stored – does not have a significant effect on performance, health and survival. “This is good news: proper colostrum storage is a very convenient tool in dairy farms and the absence of unfavorable effects on frozen or refrigerated colostrum would be a very good result.”

UK bans ads for antimicrobials ADVERTISING VETERINARY antibiotics to farmers will be banned in the UK from next year. The move has been welcomed by British Veterinary Association which lobbied for it. “New antimicrobials are heavily advertised by pharmaceutical companies and there can be undue pressure put on veterinary surgeons by clients who want to try new products that promise good results, but which may not be appropriate from the point of view of responsible use,” says BVA president Peter Jones. The ban is the result of a European Commission ruling that the UK did not correctly transpose the European Directive 2001/82/EC, which prohibits advertising of certain veterinary medicinal products to the ‘general public’.

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Rural News // october 23, 2012

animal health 35

NAIT scheme misses the mark DAVI D W E B B

JULY 1 saw the radio frequency tagging of cattle become compulsory under the requirements of the National Animal Identification and Tracing (NAIT) Act 2012. The tagging and associated animal movement recording is an attempt by industry to meet international biosecurity regimes to ensure New Zealand’s meat and livestock exports remain competitive. The NAIT scheme has missed the mark as a biosecurity control by excluding the estimated 40 million sheep in New Zealand. The exclusion of sheep does little to protect New Zealand agriculture from its most threatening biosecurity risk, an outbreak of foot-and-mouth disease (FMD). Reserve Bank and Treasury figures estimated that a FMD outbreak could: • wipe $10 billion off the economy • result in the loss of

20,000 jobs • close export meat markets for 12 months • depress export prices for up to 4 years. NAIT Ltd, the industryowned company responsible for implementing the NAIT scheme, has fallen short in improving biosecurity management, a key purpose of the scheme outlined in the NAIT Act 2012. While NAIT’s IT system has been designed to accommodate other species, it does appear that the decision for other species to join the scheme has been left to the respective industry groups to make. As a result, the current scheme fails to enhance New Zealand’s ability to respond more quickly if there is a biosecurity threat such as a disease outbreak. It seems sheep have been excluded from the scheme due to the predicted significant cost to farmers. Many are questioning whether the cost of implementing NAIT is necessary in a year when:

• Fonterra payout projections have declined • beef returns are likely to come under pressure from US cull increases in response to drought conditions • lamb incomes are forecast to drop by up to $20/lamb. Initial projections estimated the cost of funding NAIT and the Ministry for Primary Industries’ activities to support the scheme at approximately $8m/year, with a contribution of 18-20% from the Crown. Although it is not easy to compare NAIT to similar identification and tracing schemes, a UK National Audit Office report ‘Identifying and Tracking Livestock in England’ estimates the cost of identifying and tracking the movements of the 25 million cattle, sheep and pigs in England at $110m. This illustrates that the relatively low running costs budgeted for New Zealand by NAIT may be unrealistic given the

uncertainty around the monitoring and compliance costs. NAIT Ltd estimates the levies could cost approximately $5.50 over the lifetime of each animal: $2.45 in tag and slaughter levies and $2.98 for a basic radio

frequency tag. If these costs were applied to sheep, this would mean a cost of $5.50 for an animal only worth about $80 on the hook. We have already seen additional costs applied such as the levies imposed

by stock agents on animals passing through sale yards. This is, reportedly, to recoup time spent entering animal movements, and the investment in technology required to administer NAIT tagged animals. Untapped potential On the surface NAIT has the potential to be a key initiative in improving New Zealand’s biosecu-

rity. However, in the short term it fails to achieve its original objective with the introduction of a scheme that covers only a proportion of livestock and as such continues to expose New Zealand farms to potentially devastating disease risks. • David Webb heads Australian corporate advice firm PPB Advisory’s operations in New Zealand.

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Rural News // October 23, 2012

36 animal health

BLNZ tool to find ram breeders a n drew swallow

andrews@ruralnews.co.nz

CAN’T REMEMBER the name of that ram breeder you were going to call this spring? Then Beef + Lamb’s new tool BreederFinder, available through the SIL website, could help. “It’s a list of basic con-

tact details,” explains BLNZ genetics manager Mark Young. The next step is to look at FlockFinder which allows ram buyers to find breeders who are recording the traits they’re interested in, such as facial eczema tolerance, or lamb survival. “The FlockFinder tool

targets breeders who are in SIL-ACE and on the basis of which traits they are recording.” The ACE part of the acronym stands for ‘advanced central evaluation’ and allows betweenflock comparisons within breeds. No fewer than 60% of animals recorded by SIL are now in SIL-ACE,

and Young says 85-90% of rams sales come from SIL recorded flocks. “This means about half the rams bred for farmers to buy benefit from SIL-ACE.” The BLNZ-funded central progeny test (CPT) makes the betweenflock comparisons possible, providing the critical genetic connec-

tions between different breeding groups, he explains. But Young stresses SIL does not provide or promote between breed comparisons. “We know there is much more variation within a breed than there is between. We want people to seek out high performing genetics. Our

tools aim to do that rather than get side-tracked by between-breed comparisons.” And while the CPT builds links between genetic groups, some of which are “breeds”, it is not a breed comparison, he adds. “You can’t characterise a breed from a few sires. So far the CPT has used 234 rams across all breeds so there aren’t many per breed. Breed comparisons should look at lots of sires selected at random, each with a few progeny, whereas the CPT looks at a few sires and has more progeny per sire to establish the strong links between breeding groups

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A GENOMICS pilot project being run by Australia’s Sheep CRC is gaining momentum. From 450 rams tested in 2010, the project’s first year, 860 were tested last year, and now 3000. “This is a resounding vote of confidence in the commercial value of genomics technology for sheep breeding programmes,” says Sheep CRC chief executive James Rowe. “The 1500 genotyping tests available as part of Pilot Project III have been fully subscribed, and a further 1500 tests allocated for commercial scale trials has also been over-subscribed.”

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that it has as a goal.” Another BLNZ/SIL tool is RamFinder but that is targeted at stud breeders “to help them find top genetics in other breeder flocks,” says Young. A key point for all buyers, commercial or stud, is to know what their flock’s current performance is in the traits they are seeking to improve by bringing in new genetics. A series of ram buying workshops targeting commercial flock operators begins this week in the North Island, and in the South Island next month.

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Rural News // october 23, 2012

southdown special 37

Breed looks to bright future Ram sale season is just round the corner and stud breeders are starting to mob up the sires they’ll be offering in the coming months. In this special feature, Andrew Swallow talks to three commercial producers about their reasons for selecting Southdowns as a terminal sire for their stock. But first we relay the thoughts of Southdown Breed Society president, Blair Robertson. lamb when he bought FAST GROWING, easily delivered lambs with great them, so other than the breed they’d been mated survivability and conforto, sire selection was out mation: that’s what you of his hands. Growth rates, can expect when you use and kill dates and weights a Southdown ram, says will be monitored, with breed society president carcase yield data too if Blair Robertson. possible. “We’re focussed on “We’ll either do all the maintaining that [early] twins, or all the singles.” mean kill date for our cliAnother initiative the ents and continuing to society is considering is a keep the meat content spring/early summer retail up.” Eye muscle area scores or restaurant promotion have been steadily increas- based on the breed’s earliing over recent years and fat con- The number of tent, once a point breeders has been to watch with the creeping up in recent breed, has come down to the point years, with just over where breeders 80 in the Southdown are now careful they’re not taking Breed Society now. it too low with ness and quality of meat. their selections, he adds. To that end last year a res“If we take it too low taurant survey found all we might start to lose but one of 23 diners were some of that early matu100% satisfied with the rity.” meat in their meal, and Breeders are also the exception was due to taking care not to take excess gravy. them too big, too leggy, “It was so successful as can happen if selection we’re going to do it again for growth isn’t handled this season. What we’re carefully. They’re really thinking is rather than grunty, nuggetty, lambs,” promoting Southdown he stresses. That’s already showing lamb as a year-round product it should have a in lambs born this spring to 1200 ewes he’s conduct- season, a bit like the oyster ing a trial with to compare season, so people look forward to getting those early performance of the breed lambs.” with five other terminal Robertson notes Beef sire breeds. + Lamb New Zealand’s The ewes were all in-

Golden Lamb Awards, aka The Glammies, held at Wanaka A&P Show in March, while a laudable initiative for rewarding farmers producing high yielding, high quality meat, isn’t the ideal timing for the Southdown. “Our focus is early maturity. A lot of the good Southdown lambs are long dead by then. We’re taking the first draft at 10-11 weeks off their mums. We had a line of Romney x Southdown lambs out of hoggets that did 16.8kg in the first draft last year. They’re the ideal ram in my opinion.” The meat off the “tightwool” lambs is particularly fine, he notes. “You could cut it with the back of your fork it’s so tender. It’s the only thing we kill for the house.” While schedules typically reward those who get lambs away early with the best prices, if producers want to grow the lambs out to heavier weights they can, he adds. “I’ve got ram clients who are killing Southdowns at 22kg. You can grow them out if you want to. They’re not like the old Southdowns that would go overfat.”

Bring forward your MEAN KILL DATE with Southdowns With the added value of using your Southdown rams over both Mixed Age Ewes and Ewe Hoggets!

Chunky: moves to payment on yield will be a good thing for Southdown users, says breed society president Blair Robertson (inset )

The move to yield payments should also suit the breed, he believes. The number of breeders has been creeping up in recent years, with just over 80 in the Southdown Breed Society now. Most rams are sold before the

traditional sale season starts with a few held back for the main North (ie Feilding Ram Fair, December) and South Island auctions. “There are three breeders holding on-farm sales too now.”

About Robertson ROBERTSON’S MERRYDOWNS Southdown stud was formed in 1999, though the name goes back long before that. “It’s been in the family since 1937 but my father dispersed the stud in the early 1990s,” he recalls. At the time he was working away from the home farm, at Waikoikoi, West Otago, but after a stint overseas including touring and working on sheep stations in South America, he came home and re-established the Southdown stud in 1999. Today he runs 600 Southdown stud ewes, and a 1200 ewe Romney stud, as part of a 5500 stock unit all sheep operation. “I had the option of what meat breed to get into when I came back, and I didn’t just get into [Southdowns] because we’d had them in the past. I came to the conclusion they were the most commercial, easy-doing sheep.

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Rural News // October 23, 2012

38 southdown special

Halland Downs, RD5, Gore, Southland hallanddowns@xtra.co.nz

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Willowhaugh Southdowns ~ Established 1956 ~ Contact: IAN & CHRISTINA JORDAN, R D 1, Blenheim. wjordan@xtra.co.nz Ph 035728430 or 027 628 5308 or our PGG Wrightson Genetics representative Graham Sidey Ph 0274 321 384

Client Feedback... James & Becky Murray, Matariki, Marlborough • Using “Willowhaugh” Southdown rams over our hoggets for last two years • Lambs are small at birth with good growth rates • At weaning (before Christmas) the lambs were built like bricks and finished well at good weights.

Ian & Jeanette Thorneycroft, Nelson Lakes • Using “Willowhaugh” Southdown rams for six years now, over the previous season’s single ewes and hoggets • SIL records are used during ram selection • We are happy with the Southdown rams performance • The progeny grow well and are healthy.

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• Since using “Willowhaugh” Southdown rams over our ewe hoggets ease of lambing has been a major benefit and lamb weights have been very impressive. • We are now changing to using Southdown as our primary terminal sire over all classes of ewes.

Distant producers but common goals TALK TO commercial lamb producers using Southdown rams and you’ll find common threads running through all their comments, even if they are from opposite ends of the country. Take Wayne Bloxham, at Whitiwhiti Station, north of Gisborne: by the time you read this, he will probably have sent his first draft of lambs to the works. “We aim for mid to late October, off their mums at 16kg carcase weight, sometimes a bit heavier.” Southdown terminal sires are a key part of that early finishing strategy. “We find they’re quite early maturing and quick to fatten. Normally we get a good pick off their mums and another big one when we wean them.” At least half will be gone by the December draft and by the time it gets dry, as it can on the 1350ha mediumsteep coastal property, “there are bugger-all left.” He lambs in July, the Southdowns running with 1200 of a 3000-head Coopworth flock. “Their survival rate’s normally pretty good, though this lambing wasn’t exceptional because they dropped into puddles, it was so wet.” He’s been using Southdowns

for about nine years, and while he’s careful not to let lambs get too big, “they’re not like the old Southdown where the lambs went straight to fat,” he notes. “Now we try not to let them go over 23kg, though we have slipped up in the past and it’s not uncommon for some to hang up at 24-25kg.” This year he’s lambed hoggets for the first time, using Southdowns as the sire with 80% of 600 mated getting in lamb. “There have been no lambing issues with them. They’ve been spitting them out like a piece of cake,” he said midway through the hoggets’ drop. Down in Southland, Bill and Beth Gordon, Garston, are also keen to get lambs away early, albeit from much later lambing. “It can get quite dry here in the summer and if it gets dry, having quick maturing lambs means there’s more space for the Romneys,” notes Bill. That means better grown replacements and better condition in the 2200-ewe Romney flock, feeding through to the following year’s lambing result. Even if it doesn’t get dry, having the crossbred lambs away sooner means more feed to do something else with, such as fatten cattle,

he adds. “We wean [lambs] the week before Christmas and take a draft then, up to 300 or 350 depending on the season.” That’s from lambing starting the third week of September. He’s also using the Southdown across his hoggets. “They seem to lamb reasonably easily.” And while they don’t have the same coat as the purebred Romney lambs, there’s no problem with their vigour and survival as lambs, he adds. Unlike Bloxham, Gordon’s stuck with the Southdown as his terminal sire of choice through thick and thin – “since the mid 1970s” – but makes similar comments to Bloxham about how they’ve changed over the years. “They’ve got more stretch in them now whereas they used to be a bit short and dumpy and went to fat. They’re leaner now.” And in recent years the Gordon’s have had the competition results to prove it: three times they’ve had lambs in the finals of the Golden Lamb Awards at Wanaka A&P Show. “It’s just for interest really. Competitions are more interesting if you take part, rather than watching from the sidelines.”

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Phone 03 3242 751 • musburg@xtra.co.nz October born “Musburg” Southdown X weaning draft lambs from “Cloudy Peaks Station” Fairlie. Sold Temuka sale 7th February 2011. Pen 279 average liveweight 44kgs, $130 each.

Rural News // october 23, 2012

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Focussed on growth rate SOUTH CANTERBURY sheep and beef farmers the Westgarths run 4000 Coopdale ewes across two farms, one at 500m above sea-level on The Brothers range inland of Timaru, the other on the town’s outskirts. “The two properties work so well together,” says Bruce, who runs the inland unit with wife Rosa. “We take all the older ewes down to Timaru where we put them to terminal sires: Southdown, Poll Dorset and Suffolk. We’ve had Southdowns for years. They produce good lambs, and early maturing.” Nearly half the ewes on the 200ha down-country farm, which is run by their son Hamish and his wife Amanda are put to Southdowns, plus 300400 at the 368ha Brothers property. Replacements come from Coopdale hoggets, 1250 of which were run with the ram last autumn,

Bruce Westgarth with a Southdown cross lamb at tailing late September.

with 1000 scanned inlamb. While he’s well placed to do so, Westgarth’s wary of comparing performance of the different termi-

Picks breeder more than ram WESTGARTH’S APPROACH to ram selection is simple: find good breeders, stick with them and reward them. “I don’t mind paying a good price for good rams because if the breeder can’t make money, they can’t improve the genetics can they?” His three suppliers are all from South Canterbury. The Southdowns come from Chris Medlicott’s Tasvic Downs and Clifton Downs studs; the Poll Dorsets from Steve McCall’s Castlerock stud, and the Suffolks and Coopdales from Peter Darling’s Coryston Stud.

nal sires he uses. “There’s good in all breeds.” Most have made marked improvements in recent years and the Southdown is no exception. The short, stumpy lambs prone to running to fat if taken too heavy are long gone. In their place are rams which throw a longer, leaner lamb that’s still solidly built and fast finishing. “Some people still have the wrong impression of them,” notes

Westgarth. “They still think they’re wee fat things, though views are starting to change now.” The growth of his Southdown x Coopdale lambs is rapid. Last year they started lambing August 22 and in the last week of November drafted 230, averaging 19.8kg. “They always weigh heavier than they look.” Admittedly, there were other breeds among them, but the Southdown at least held its share, if not more. Over the whole season, and all breeds, average kill weight was 20.3kg cwt. “We drafted lambs every week from the end of November through to May.” Getting more lambs away early, plus an end of season contract for the last 2000, helped them average $136/head “without counting the wool off them.” As a rule they’re shorn at 38kg and go on the truck at 44kg, all to Silver Fern Farms. Westgarth points out better prices for the lambs isn’t the only benefit to early finishing: their mothers make better money as cull ewes. “We try to get them on the truck the next day.”

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Space freed up on the down-country farm also allows more lambs and other stock to come down Ask us about our trailer from The Brothers. options With no irrigation, both properties can get CALL STUART ON dry. Again, fast growing, 0274 387 528 early finishing lambs are an advantage, in that more 124 Lincoln Road, Masterton Email: daytech@wise.net.nz www.daytech.co.nz are gone before feed gets NZ1102764-Gray, S W:NZ1066684-Gray, S W 26/10/2010 3:34 p.m. Page tight. Leaders in farm machinery design

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Rural News // October 23, 2012

40 machinery & products

Kverneland wheels out its new roller range gare t h g i llat t

CULTIVATION AND planting get finer tuned with a new tool from Power Farming Group – the Kverneland Megapack RM roller range. Division general manager Graeme Leigh told Rural News the 5.25—8.25m range of folding rollers are to replace the current RTG range. They offer all the preceding model’s transportability with a great deal more weight and length. “Compare,” says Leigh. “The RTG rollers are 5.25m-7.25m

and weigh 3.1-3.6 tonnes. The new Megapack range weighs 3.2-4.2 ton or 3.4-5 ton with the optional levelling tynes. It’s a wider and heavier model than we have offered before.” Transporting the roller between jobs is easy despite the size, thanks to its 2.5m transport width, hydraulicallycontrolled road transport wheels and lockable arms. The roller provides the user with a great deal of control, according to Leigh, because of hydraulically controlled crossboards and bars.

The rings have pivot points to allow for better follow-up over rough ground which is prepared with the addition of the optional crossboard which further breaks up clumps. The angle of the crossboard can be hydraulically controlled for optimum results. While the international model doesn’t come with an air seeder mounting, Leigh says one is being prepared to fit the company’s range of APV air seeders. www.powerfarming.co.nz

Smartphone app for better seeding POST DRIVERS FOR: KUHN HAS developed a new smartphone app to help farmers with seed drill settings thus optimising seeding. The app is available on Appstore (for iPhone and iPad users) and on Google Apps Marketplace (for Android Smartphone users). It has various valuable functions for seeding, the company says. The first function is the setup wizard. With this, owners of a Kuhn seed drill can “effortlessly” find the right machine settings. After selecting the type of seed drill, working width and the number of rows, the crop and desired application rate can be entered. According to these parameters, a suggested setting is then given. After a trial run at this setting, the user can enter the weight collected, in order to get an optimised setting for that seed variety. This guarantees the seed drill is set correctly which in turn ensures high quality seeding. Settings can also be saved. “This is a great time saver when working with the same seeds again,” Kuhn says.

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Rural News // october 23, 2012

machinery & products 41

Date change for Northland NORTHLAND’s largest outdoor event will be held two weeks earlier next year to fit in better with exhibitors and major Northland sporting events, says Northland Field Days president Lew Duggan. The 2013 exhibit will be held in Dargaville from Thursday February 21 to Saturday February 23, two weeks earlier than the 2012 event. The change was scheduled so that exhibitors could travel

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get some fishing in.” Duggan also hopes the weather will be better at the earlier date. “The very first Northland Field Days was held during Cyclone Bola and we have had our fair share of wild weather since,” says Duggan. “I’m confident the weather will be kind between February 21 and 23 in 2013.”

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YOU LEARN from your mistakes, observes quad loadingramp supplier Ian McNeill, of Macs Equipment. He says this truism is captured well in the expression ‘eating dirt’, which happens to be the title of a new book by multisport adventurer Steve Gurney, who says, “Eating dirt is a metaphor... for learning from your mistakes.” Says McNeill, “If this is true, why do farmers – many of whom can recall near-miss incidents when loading quads and machinery – continue to risk life and limb by using greasy planks as loading ramps?” Better to use the new US-made aluminium ramps sold by Macs Equipment, says McNeill. “Having a 300kg quad fall on you is not uncommon.” Macs Equipment stock aluminium ramps come in various options: arched, bi folding or tri folding; 1.5m – 3m long; 225kg to 2260kg capacity; single units or pairs. They come with a pair of Camlock tie-downs to secure the ramps during loading. The ramps are made by a small farming-family business in Springfield, Missouri. “Buyers can be assured of a long history of quality manufacturing with no concerns of a substandard performance as recently seen with cheap imported aluminium ladders,” McNeill says. As a Rural News exclusive, send us an image of your greasy loading planks cut in pieces and we will knock off $30 a pair of any 2.2M (7Ft) ramps-712 standard, 712HDheavy duty or 712FRfolding PLUS a 2 for 1 deal on freight to main cities and towns for you and a neighbour.

the top of the North Island to the bottom of the South Island to three events in under a month.” There are now two weeks between each of the events which Duggan says gives potential exhibitors plenty of time to pack down sites from one event then send it to and set up for the next event. “It also works alongside the 90 Mile Beach fishing competition in March giving locals some time to

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Sharemilker Neil Guy, of Huntly, loads his quad using a pair of Macs 712FR (7Ft folding) ramps.

between the Northland Field Days, Central District Field Days and South Island Agricultural Field Days without having to worry about schedule conflicts says Duggan. “Previously agricultural machinery manufacturers and rural service providers had to pick and choose which event they went to,” says Duggan. It becomes difficult for any company to get from

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Rural News // October 23, 2012

42 machinery & products

Testing towards a higher-value crop gare t h g i llat t

SOIL and foliage testing is helping Te Kauwhata drystock and cropping farmer David Jefferis work towards a better maize crop. In any given year DAVID grows maize silage, finishes 6000-10,000 store lambs and 200-400

Friesian bulls, grazes 80 dairy heifers and 300- 400 weaner bulls on summer crops. The 485ha family property plus some additional winter leased land is located 50 minutes northeast of Hamilton. While the farm earns income from a wide number of streams, Jef-

feris is most dedicated to his 110ha maize crop which he hopes to develop from being a commodity to being a high quality, high demand feed. “At present maize silage is sold on the basis of kg DM but, looking forward, I think it should be traded on a quality basis – as in its ME and mineral

David Jefferis

content. Other stock feeds are currently being traded this way.” To do that Jefferis needs to bring up soil quality and he says he has been doing that with the help of an all farm-testing soil plan and foliage testing for his maize crop. The farm is on four different soil types and Jef-

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feris says getting soil samples are the key to getting the correct amount of fertiliser to the right locations on the farm. In the last two years he has transferred all the soil test sites information onto a GPS and says this has allowed him to tackle problems head on. “Accurate soil testing gives us a trend; it allows us to be proactive rather than reactive with our fertiliser policy. There are a lot of variables with soil testing, but we are working hard to reduce those.” Jefferis take’s four samples from each dig site in the paddock: one at 100-150mm, one at 150-300mm, and one at 300mm-1000mm at the same time. Jefferis credits Hendrik Venter of Gavins Contracting with being influential in a more focused soil testing approach. While getting the soil tests gave Jefferis a great deal of historic data and allowed him to lift maize

production, he says folia testing has let him make sure the maize is getting the minerals it needs to create a high value crop which could fetch premium prices. Jefferis has started taking the soil and tissue samples at the same time and from the same location before Nitrogen side dressing and expects to see more consistent results next year. He expects to get a great deal of information from the exercise. “We have done maize foliage testing and feeding in the past but it has been a bit ad hoc.” He has turned to chicken manure and spreads it over a cultivated area in four lots over the year and says it is a good fertiliser subject to price. “There’s a lot of added mineral content and organic matter in chicken manure. It’s widely accepted that maize silage grown continuously in the same site removes organic matter.”

He does soil and folia tests on his crop during the growing period and says analyst Hill Laboratories is always quick to get results back. “Subject to time of the year the test results normally take up to a week. They have given me quicker turn arounds if asked. Hill Labs also provide all our DM tests at harvest as all our maize silage is sold on contract”. Jefferis has been able to maintain maize production levels of 2122 tonnes DM/ha per year while keeping a tight lid on costs and says that using testing has allowed him to get the most out of his fertiliser budget and he thinks its benefits could be wider. “With the assistance of rain, accurate soil testing and a detailed fertiliser plan, savings of up to 40% can be made on a poorly managed fertiliser policy.” Tel. 07 858 2000 or 03 377 7176 www.hill-laboratories. com

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Rural News // october 23, 2012

machinery & products 43

Software simplifies process PROCESSING ANIMALS for NAIT is said to be easier with a new piece of software for the I-Read RFID reader tag sold by Leader Products. Sales and marketing spokesman Murray Jacob says operators of the GST reader are now able to download a free program to easily register stock and transfer stock ownership in the NAIT system. Farmers find uploading and

handling stock on the NAIT platform can require tricky navigation says Jacob. “With the software people don’t need to go to the NAIT site at all to register the animal or transfer the animal. The next thing is they’ve got an email back from NAIT.” The hand sized reader, which can scan up to 2045 individual animals on a 9v battery, is docked to the computer via a mini-USB cable.

The software uploads information from the reader as a Notepad file before showing the RFID tags in the software. Once there, Jacob says, registering the animals on the NAIT system is as easy as entering the operators’ NAIT number and the type of animals to be registered and then hitting ‘send’. Transfering animals can be done by entering the two NAIT numbers into the relevant boxes.

“As a convenience factor it’s just a straight registration/transfer operation.” Visual tag numbers can be added or removed from the system manually and the program can be run through a proxy. A computer running windows XP or higher and 4-net framework is required to run the program. Tel. 0800 242 824 www.leaderproducts.co.nz

Silo makes job easier A PLASTIC SmartSilo has turned urea management from a major chore into a 30-minute job, says Reefton dairy farmer Stu Bland. Stu and Debbie Bland milk 230 Jersey/Friesian-cross cows on their 90ha property on the West Coast. With the farm on river flats with a stony, silty soil structure and getting 1800mm of rain a year the couple have a policy of putting on a little urea after cows have been on the paddock to prevent nitrogen leaching and keep up nutrient levels. The Blands use 30 tonne of urea a year which gets delivered in three to four lots throughout the year. They spread with a 4 tonne trailed SAM spreader. Two seasons ago the Blands took delivery of urea in bags and stored it in their calf shed but this was time consuming, Bland says. “Loading the fertiliser was time consuming, as was unloading the truck.” He also had storage-space problems during peak seasons of the year. “Having enough spare room was a challenge at certain times such as spring when the sheds are full of calves.” The couple had to deal with moisture issues for urea stored in bins. “If it was stored for a while in wet weather it got damp and didn’t flow through the spreader as well.” Durability in wet weather with urea was one reason they decided on a SmartSilo says Bland. The results were good. “I have not experienced any problems with moisture getting into urea.” Bland says that now the SmartSilo is installed spreading fertiliser behind cows can be done in half the time. “It takes a very short time to load. Maybe a couple minutes for 2-3 ton. “And it’s great we’re not personally required to help unload the truck any more.”

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Rural News // October 23, 2012

44 machinery & products

Thumbs up for crushes TE PARI Products new Cattlemaster iDraft cattle crush is said to be getting the ‘thumbs up’ from Lochiel Farms, Franklin, general manager Kim Robinson. The 3600ha farm has bought two units. Robinson’s staff had had enough of old manually operated crushes, so the business bought the

semi-automatic, air levercontrolled iDraft crushes. “We put big numbers of cattle through the yards but this unit handles them with ease,” Robinson is quoted as saying. “The control panel has made the job a one man operation: we can draft the cattle, squeeze them up, head bail them, mark

the calves, and tag and weigh them all at the press of a button or flick of a switch.” And the farm has the option of upgrading to fully automated iDraft crushes. Using the full auto system, cattle can be automatically weighed, released from the crush

and directed through the appropriate draft or exit gate. This unit is easily managed by one person with the auto-draft functions set up on a touch screen control unit. It can also be operated remotely via a 10 function hand held radio remote control, says Te Pari principal Jeremy

Blampied. “It is simple to use and well suited to an older farmer given the less physical effort required to operate it. With an eRail EID reader system incorporated into this crush, it really is possible to weigh, record and draft hundreds of animals per hour.” Blampied says Te Pari’s new iDraft control panel – standard on all models – has precluded some problems often found with cattle crushes. “One of the biggest features is the internal routing of loadbar cables, which keeps them tidily out of the way and completely shields them from activity around the crush. Up to 70% of all problems with weigh scales can be attributed to damaged cables.”

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The weigh scale mounting is at eye height, easy to use and read, and no add-ons are required. Other features of the control panel include a storage tray for tools and tags, and a cupboard where air regulators, EID reader control units and batteries can be stored. A lockable cover goes over the control panel for extra security and protection against the elements.

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‘HUNDREDS’ OF people injured in remote outdoor places owe their rescue – if not their lives – to GPSbased personal locator beacons (PLBs), says the marketer of one such device, Alan Bright, of Bright Ideas. The McMurdo FastFind 220 is said to be popular with deerstalkers, trampers, farmers and companies with agents working in remote places. It alerts emergency services about an accident and then transmits a GPS position and a homing signal to guide rescue services to the victim. At least one or two get activated each month in New Zealand for a wide range of reasons says Bright. “Users crash quad bikes and motorbikes, they fall off horses or have accidents with guns and a lot of people get lost or injure themselves in the backblocks. Six months ago the wife of one hunter who activated the device was contacted by emergency services four minutes after the beacon had been activated. You can’t complain about that service.” When activated the GPS device signals its location and ID to the Rescue Co-ordination Centre by satellite and to the dedicated Cospar-Sarsat satellite network. Information then goes to local emergency and search and rescue services. The device also transmits a 121.5MHz homing signal to allow rescue services to find the beacon. Two satellite signals are initially sent; the 406MHz signal is strong enough to pass through tree cover in deep forest gullies or up to 1m of snow. “It takes a bit longer than the first signal but it always gets there.” The McMurdo Fastfind 220 is about the size of a mobile phone and weigh 172 grams. The battery will last six years and is guaranteed to run for at least 24 hours. It floats and is waterproof down to 10m for five minutes. “We supply them to the SAS so they’re pretty tough.” “The registration service is free and I will reset the device for free once it has been used if people give me their activation stories.” Owners of units are able to lend or rent them out providing they get contact details for the person using the device says Bright. Price $699 RRP. Buy from outdoor and marine stores. Tel. 0800 713 656 www.brightideas.co.nz

Rural News // october 23, 2012

machinery & products 45

Comfort and productivity foremost in new tractors A FLAT floor and a remarkable sense of cab space distinguish the new T4 tractor range from New Holland. Pushing hard on the operator-comfort angle, NH points out productivity depends much on how the operator endures long hours in the cab. “This completely new T4 PowerStar range is set to redefine farming comfort in this segment,” the company says. Three models are on offer: T4.55, T4.65 and T4.75 (engine power 55, 65 and 75hp respectively) with mechanical fuel injection. Plenty of choice here for farmers, councils and other operators looking for versatility, manoeuvrability, ergonomic comfort and fuel efficiency, NH says. All suit front loading, high speed transport and PTO work. Transmissions have hydraulic Power Shuttle and creeper options. Hydraulic flow is up to 48L/min. The tractors are offered in cab and ROPS variants. The ROPS platform shares the same control layout as the cab version, flat floor and tiltable steering column. The ROPS version can also be specified with FOPS (Fall On Protection System), to offer users the ultimate in peace of mind when operating with loaders and in enclosed

environments where they are at risk of falling objects. NH says the entire cab has been redesigned “around the operator using advanced virtual reality techniques, which has ensured that all controls fall perfectly to hand for operators of all shapes and sizes.” The main controls are to the right of the operator in a ‘Command Arc’. This can be combined with an optional 15° swivel seat to help in work with rearmounted equipment. The instrument cluster moves with the tiltable steering column. Locating the air conditioning fans under the floor has improved headroom. Air flow can be precision directed through 10 individual vents, which all deliver even flow. During loading work, the see-through opening roof hatch gives a good of the loader right through its operating range, even at maximum height. The roof hatch almost meets the front glass to minimise the obscured area. Other cab features: up to three power outlets for equipment monitors or mobile phone chargers and music players; the radio is set in the B pillar; and the full-size instructors seat, with seat belt, means two adults can ride. All models have 3.2L engines (two valves per cylinder) with maximum torque of 310 Nm.

This engine has done three years work in the current NH T4000 range and speciality series. A 540 eco PTO option is offered. Tier 3 technology applies, to meet current emissions regulations. Service interval is 500 hours. The traditional 12 x 12 standard transmission offering is available in all models and all have hydraulic shuttles. This steering column mounted lever can be operated without removing the hand from the steering wheel. An optional 20 x 20 creeper variant is available for T4.55, T4.65 and T4.75 models, with speeds as low as 0.108km/h. NH says the transmission controls will be familiar to users of New Holland’s range of larger tractors: they are situated to the right of the operator. All gear changes can be carried out from the seat, without the need to stretch and reach, and enables the operator to swiftly switch from the steering wheel to the lever. For loader or mid mounted-equipment work, an integrated joystick gives precise control without requiring the operator to stretch and twist arms and wrists. Up to three hydraulic remotes are available, offering standard flow

of up to 48L/min. The remotes are located on the cab’s ‘Command Arc’.

The T4 provides excellent visibility for the operator.

www.newholland.co.nz

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Rural News // October 23, 2012

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Rural News // october 23, 2012

rural trader 47 SCARTT TT

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Fieldline Jumbo Buster Our deep ripping European chisel ploughs are ideal for breaking up hard pans or compacted ground, and for ripping after crops have been harvested. We also have a few 5.7 and 9 tine models on special this month. Model pictured RRP $8495. Ex display unit $7495

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Cambridge Rollers We have a large rangeof new and used rollers in stock. Enquire now for priding. Unit pictured rolls 2.4 metres. $2900

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3 PTL Backhoes Suits 25hp upwards. Remove it in minutes. RRP $9995. We have one only ex display unit available at a very special special price of $5950. New units and larger models also in stock.

MF 2 Furrow Disc Plough Genuine design made in Europe. Brand new. This design has strengthening gussets behind each dropper making them stronger than Indian/Asian copies. RRP $3595. 3 x units available. $2695

Combination 3 PTL and Trailed Discs These versatile discs are ideal for natural weed control in orchards, etc and secondary cultivation, incorporating cropping stubble, pasture resowing etc. 5 size options available up to 3 metres wide as pictured. Ask about our display unit – never used, badly shop soiled. $4495. Save $2000

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