Rural News 20 August 2013 by Rural News Group

agribusiness Opinion is divided on the proposed Ruataniwha Water Storage Scheme. page 21

management B+L NZ workshop hears different views on managing high lambing percentages. page 31

Rural NEWS

finance PGG Wrightson’s goodwill disappears and sees it post a big loss.

page 10

to all farmers, for all farmers

august 20, 2013: Issue 544

Get a move on!

www.ruralnews.co.nz

Co-op’s sacrificial calf? SU DES H KISSU N

THE MEAT companies need to speedily resolve the issue of industry reform as the new season is kicking off, says Beef + Lamb NZ chairman Mike Petersen. Rural News reported last issue that Petersen had given the reform group Meat Industry Excellence a hurry-up during the Beef+Lamb NZ monthly conference call. But Petersen says he was referring to industry talks now being held by meat companies. A speedy resolution by the meat companies was needed so a package could be tabled before farmers, says Petersen. In answer to questions from Rural News last issue, MIE head Ross Hyland said they would not be rushed, but had admitted they had heard comment that they had “gone quiet”. They were in fact getting quality systems in place so they could move forward in a professional manner. Meanwhile, Petersen also clarified that Beef+Lamb had offered to fund analysis of any proposals put forward from meat company talks to ensure it is in the best interest of farmers. They had not offered to fund work by MIE on any particular proposal. – Pam Tipa

sudeshk@ruralnews.co.nz

FONTERRA EXECUTIVE Gary Romano’s fate was sealed during the early stages of Fonterra’s botulism scare. With chief executive Theo Spierings in China on damage control talks and chairman John Wilson mothballed by the co-op’s communication gurus, it was left to Romano to face the media. At Fonterra’s first media conference on Saturday morning, August 3, Romano uncomfortably fended off questions from journalists. An engineer by profession, and an operational guru,

Romano found it hard to answer questions on the co-op’s brands business and the FCMG (fast consumer moving goods) sector. He wouldn’t tell journalists which infant formula brands were affected, leaving New Zealand mothers confused about safe infant formula for their babies. His appearance on Campbell Live two days later didn’t do him any favours. Romano inadvertently told John Campbell all Karicare products from Nutricia, owned by French dairy giant Danone, were affected. Next day, Fonterra and he apologised. And it was under Romano’s watch, as

managing director of NZ Milk Products, that a dirty pipe at the Hautapu plant in Cambridge contaminated whey protein concentrate (WPC80) with a strain of Clostridium, which has the potential to cause botulism. Fonterra shareholders are mum on Romano’s departure. He was widely respected by Fonterra farmers and the industry. Two years ago he was touted as a possible chief executive before Spiering’s appointment. In October Romano was scheduled to speak at the World Dairy Summit global dairy leaders’ forum in Yokohama, Japan. Fonterra has given no reason for

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Romano’s departure. It raises the question whether he has been sacrificed for what appears to be the co-op’s lack of a clear strategy to deal with crisis management and shortcomings in communication with regulators, consumers and customers. Federated Farmers Dairy chairman Willy Leferink believes Romano took “personal responsibility” for the failure at the Hautapu plant. “He was head of the department where it all happened and Romano has made a personal sacrifice, Leferink told Rural News. “It doesn’t reflect on his incompetence but his team’s. They failed to live up to society’s expectations.” Fonterra chief executive Theo Spierings said in a brief statement he accepted Romano’s resignation. “Gary has made a significant contribution during his time at Fonterra and we respect his decision,” says Spierings.

Running up the hours

THE NEW chairman of the Agricultural Aviation Association Alan Beck beside his beloved Bell Jet Ranger helicopter, which he bought in 1977. The helicopter – still flying –was only the second in New Zealand used for agricultural work. Beck, based at Eltham, Taranaki, has at least 17,000 hours flying (almost all on helicopters) to his name. Beck says 90% of his clients are dairy farmers in Taranaki, Waikato and Bay of Plenty. More page 14

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Rural News // august 20, 2013

news 3 issue 544

www.ruralnews.co.nz

Herbicide-resistant seed likely to have been imported

News �� 1-16 World �� 17 markets �� 18-19 Agribusiness �� 20-23 Hound, Edna �� 24 Contacts �� 24 Opinion �� 24-27 Management �� 28-32 Animal Health �� 33-35 Machinery and Products �� 36-41 Rural Trader �� 42-43 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

andrew swallow andrews@ruralnews.co.nz

SEEDHOUSES CONTRACTING growers to multiply lines of grass seed in New Zealand seem likely to have inadvertently imported herbicide-resistant lines. The news, revealed at PGG Wrightson Grain’s winter agronomy conference earlier this month, has alarmed growers and researchers alike, given that similar resistances are causing huge headaches for growers in Australia and further afield. “It is a major concern,” Federated Farmers Herbage Seed section chairman, Hugh Wigley, told Rural News. “We rely on bringing in fresh seed that’s not resistant to herbicides.” The resistance to the ‘fop and dim’ Group A herbicides came to light because of volunteer ryegrass plants following seed multiplication crops survived applications of such chemistry. Speaking to delegates at the PGW event at Methven, long-time herbage seed production agronomist Murray Kelly warned growers to be aware of the risks of resistance and consider more than just the dollars per kilo return from the seed crop when taking on a contract. “We’ve found resistance to group A

chemistry, at a huge cost to the farmer, and a huge cost to us as well,” he said. He later told Rural News he’s aware of at least three cases of herbicide resistant ryegrass volunteers, one in wheat, one in clover, and one in a seed beet crop. “When they’ve put in a following crop of clover, or wheat, and then gone to use a standard Group A herbicide on it to take out the ryegrass, it hasn’t done it.” In the case of the clover, the ryegrass conPhil Rolston tamination resulted in the crop failing for seed. While none of the resistant ryegrass came from lines PGW imported, the firm is now running a herbicide screen over the test plots it grows of all seed lines sent out for multiplication, once the development details of the plots have been recorded and relayed to growers. “I know this is after the event but the reality is that multiplication material arrives at the point of sowing,” said Kelly. He believes all seedhouses should be doing the same. “At least then they can warn growers.” The resistance isn’t a cause to panic,

he says, as there are other herbicide options, but in some cases sacrificing a crop may be a better option than letting a resistant line set seed and contaminate the paddock, he adds. Agresearch’s ryegrass specialist Phil Rolston supports Kelly’s call to other seedhouses to screen for resistance. “That seems a really responsible approach and one the broader seed industry should adopt…. Seed multiplication is a really important option for growers so we don’t want to make a hole for ourselves in the long term by bringing in a problem.” Getting the overseas suppliers of the multiplication lines to run herbicide screens on them before sending them to New Zealand would be “the ideal scenario,” he adds. Rolston says he doesn’t know if the problem may be more widespread than the cases PGW has come across. “The message is growers need to be really vigilant and look out for survivors of chemical controls.” See p28-29 for more on resistance and PGW Grain’s conference. @rural_news

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Another case of drench resistance ANOTHER CASE of internal parasites resistant to the drench Zolvix (monepantel) has been revealed. The product was launched in New Zealand in 2010. “It’s now failed completely on two farms in the Manawatu,” Agresearch’s Ian Sutherland told delegates at the

New Zealand Institute of Primary Industry Management conference earlier this month. “Absolute zero efficacy! We’ve never seen anything like it and it will happen elsewhere too,” he warned. The first incidence, on a hobby goat farm where ostertagia and trichostron-

gylus in sheep and goats became resistant, was reported at the International Sheep Vet Congress in Rotorua earlier this year and is shortly to be published in the journal Veterinary Parasitology. Details about the second case are as yet unclear, but Rural News understands it is on a sheep farm.

No panic sudesh kissun sudeshk@ruralnews.co.nz

NEW ZEALAND exporters are not too worried over a dairy ban imposed by some central Asian states. Export New Zealand executive director Catherine Beard told Rural News it has seen this type of “kneejerk reaction” before. “It is wider than warranted but will settle down over time.” But Beard says New Zealand must deal with the botulism scare and put things right to reassure international customers and consumers that our products are trustworthy. How New Zealand deals with the botulism scare can turn the crisis into an opportunity, she adds. The Customs Union of Belarus, Kazakhstan and Russia has banned dairy imports from 61 of the 83 approved New Zealand dairy plants. The ban follows the Fonterra botulism scare involving 36 tonnes of potentially contaminated whey protein concentrate entering the food chain. Total dairy trade to Russia during 2012 was about $106 million, and $310,608 for Kazakhstan. No dairy products are exported to Belarus. MPI and trade officials are talking to Russian authorities to try to get the ban overturned. ExportNZ is not involved in these talks. “We leave it to the government agencies to talk to their counterparts in Russia,” Beard says. Asked about Fonterra’s response to the botulism scare, she says in hindsight things could have been handled better but she will leave it to the state and Fonterra inquiries to be the final judge. “Hopefully the inquiries come out with answers on how it could be handled better in future. The ideal scenario is there should be zero risk tolerance when dealing with food and beverages, especially infant formula.”

More than just great products...

Rural News // August 20, 2013

4 news NZ media led by their noses MANY NEW Zealand media reported stories from overseas during the Fonterra food safety recall without exploring the agenda behind them, claims KPMG. A Daily Mail article in the UK, which questioned New Zealand’s green credentials, and material from Government press agencies in China were among examples, says KPMG in its latest weekly Field Notes newsletter. “Many of the international reports are supporting the agenda’s of their domestic producers aiming

to do damage to brand New Zealand and can’t be considered balanced or objective assessments of the way this issue has been viewed by our customers and consumers in these markets,” it says. New Zealand sells products into highly competitive global markets and nobody owes us a living. “Thus when we do make mistakes we must expect our competitors to seek to capitalise on the opportunity created – after all that is business.” KPMG says the media

commentary on the Fonterra issue showed that primary industries must build stronger links with the wider population. “The contribution our primary industries make to our economy must be explained, but equally the sector must listen and understand the expectations the wider community places on it,” KPMG adds. The Fonterra food safety scare has highlighted the importance of leadership and communication, it says.

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Wool roadshows beckon would-be suppliers shareholders then committed pamelat@ruralnews.co.nz $6 million and WOOLS OF New Zealand about 14.5 million kg of strong is next month hitting the wool. highways for roadshows Townshend throughout the counsays farmers are try as it also opens supply coming to the opportunities to some company asking non-shareholder farmers. about supply The 17 events will take opportunities. place during the weeks “There are starting September 23 a number of and 30, from Wellsford people saying to Gore and “all points ‘hey, we’d like in between”, Wools of to be included NZ chief executive, Ross Ross Townshend in this’. Maybe Townshend told Rural some of them News. “We want to talk about are people who had a bit of bound by rules on that. It a wait-and-see approach the plans for the comis understood new farmpany and how we see ers joining the the company progress- “Roughly half of New supply base ing. Part of it will be to Zealand’s wool goes to will have to explain some supply pay a wool and contract opportu- China; it is an important market develnities for farmers.” opment fee. market for us.” The company is Townsend and we are fine with that.” said the company doesn’t opening the door to some However there is no farmers who did not take necessarily need, but part in the company’s cap- opportunity for more would like, more supply at share issue in the near ital raising which closed this stage. “We think the future, as Wools of NZ is in February. About 700 model we’ve got is going to serve our shareholders well and it could also serve a bunch of other farmers equally well.” An important part of Wools of NZ’s platform is traceability and there are some “nice contracts” for the markets that do traceability, Townshend says. They will soon announce specific contracts for traceable Laneve (a Wools of NZ brand) lambswool for a ‘gold-plate’ customer in the UK. Townsend travelled to China before officially taking up the chief executive position on August 1. “We had a planning session in China with the board and the senior management from other parts of the business around the world,” he says. “Roughly half of New Zealand’s wool goes to China; it is an important market for us. There are some clear messages about how we should approach the Chinese market. That’s among the things we want to talk about in the roadshows: the things important for us in China and the things important to the Chinese customers.” PAM TIPA

Rural News // august 20, 2013

news 5

Chinese buyers unfazed GARE TH GILL ATT

Stronger iwi links LANDCORP’S NEW chief executive says building relationships with iwi is one of his goals. Speaking to Rural News just days into his job, Steven Carden says his main goal is to the build on the existing base of the company. He will focus during his first six months on learning about the business and getting to see the farms and meeting as many people as possible. Within days of taking up the position in Wellington, Carden was in the field looking at Landcorp farms around the country with the retiring boss, Chris Kelly. Kelly will stay on until the end of August to ensure a smooth transition. Before joining Landcorp, Carden was the general manager of PPG Wrightson Seeds in Australia. Originally an Aucklander, with an LLB and BA from Auckland University and an MBA from Harvard, Carden was a Fulbright Scholar and in 2005 was picked by the Sir Peter Blake Trust as one of New Zealand’s six emerging leaders. He has also worked for McKinsey & Company in New York and was general manager of the ill-fated online retailer Flying Pig. Carden is the author of New Zealand Unleashed. He says the attraction of Landcorp was his opportunity to work in the largest farming operation in New Zealand – an opportunity too good to pass up. “What I like about Landcorp is the size and scale of what it does. The fact it’s involved in so many different areas is central to agriculture in the future. It’s the chance to work with iwi, government, the industry and also the R&D relationships we have.” Carden says with the sheep and beef and dairy industries it’s an opportunity to get involved in technologies, push out the envelope and show how these technologies can be adopted on farm. – Peter Burke

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saying the company showed “very good crisis PR”. On Wednesday, 34 of the first 100 posts supported Fonterra, saying they “absolutely believed in New Zealand milk” and “I have trusted New Zealand milk powder in the past and will do so in the future”. Others didn’t see it as such a big deal: “They are so silly that a pipe not cleaned out immediately created a worldwide recall.... If New Zealand’s milk isn’t safe to drink what else can I drink?” Fourteen of the first 100 posts

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WHILE New Zealand politicians and media may be talking up the impact of contaminated whey powder on Asian markets, China’s consumers appear to be taking it with a grain of salt – an impression gained from China’s biggest Twitter equivalents Sina Weibo and Tencent Weibo. Of the 538 million internet users in China (40% of the population), 93% use Sina Weibo and 87% Tencent Weibo. Many of these ‘microbloggers’ either shared news of the

incident without comment, or praised Fonterra and New Zealand officials for moving fast on consumer information and product recall. Theo Spiering’s swift trip to China also got the thumbs up. On Wednesday the neutral term “NZ milk powder” was used in about three million posts – three times more than the word “botulism” and 66 times more than “NZ poison milk powder”, a China state media-coined term. Many of the people referring to “NZ poison milk powder” were also positive, some even

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Rural News // August 20, 2013

6 news

Government moves on RMA reforms pete r bu r ke peterb@ruralnews.co.nz

MAJOR CHANGES to the Resource Management Act (RMA) have moved a step closer. Environment Minister Amy Adams revealed, in the past week, the changes to be contained in an amendment to the RMA to be introduced into Parliament probably before the end of the year. She told Rural News the changes will see the act simplified, streamlined and updated to bring greater certainty to communities and individuals and cost them less. Adams acknowledges there’s been a lot of criticism of the RMA by the rural sector. “We’ve seen some pretty worrying stats from Horticulture New Zealand about the impact it has on their operation and their levy payers and I think that is shared right across the rural sector,” she says. Adams says the amendments to the RMA will ensure processes give people

greater certainty and tighten-up timeframes for approving resource consents. She also notes there are examples of councils charging far too much for minor consents and demanding consents for activities which, she says, hardly warrant one. Adams says the present system is complex and she notes that New Zealand has 170 different planning documents among 78 councils, whereas Scotland – with greater population than New Zealand – has just 37 equivalent planning documents. She believes her changes will require a culture shift on the part of councils. “There is nothing in the present RMA that requires the creation of an inconsistent, sluggish, bloated system we now have. But there is also nothing to stop this happening. So what I have had to do is to go back to first principles and see how we can recalibrate the RMA system to take away the opportunity for it to blow out to the sort of bureaucracy that we currently have.”

At issue are the decisions we ask councils to make, whether they can be made more sensibly from the centre and how we can focus on really local applications of these issues, Adams says. Some problems today are not the fault of councils, rather a lack of ‘national direction’ by central government has been partly to blame. She is staggered by a lack of understanding about what the RMA actually is, and a perception of it being only about the environment. “We’ve seen a lot of people jump up and say things like ‘economics has no place in the RMA’ which I find a staggering assertion. But actually the wording of the ‘purpose clause’ in the act makes it clear it is looking after our economic, environmental, social and cultural objectives and it is our planning legislation. “Yes it does have a role in protecting the environment, but it is also our planning law and far and away the absolute bulk of what goes through the RMA

Environment Minister Amy Adams says changes to the Resource Management act are set to be introduced into Parliament before the end of the year.

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news 7 Adams targets Section 32s OF PARTICULAR interest to farmers and a warning to councils are changes being made to section 32 of the RMA. This will require councils to do detailed economic analysis of any plan changes before decisions are made, so the community has more detailed and robust information on which to support or oppose change. “My expectation of councils is that they ensure they have good robust analysis that informs that decisionmaking early in the process about changes they are intending and the impact that will have on economic, social, cultural and environmental criteria,” Environment Minister Amy Adams says. “As I have said in the past, I have been disappointed in the quality of section 32 analysis I have seen on some major proposed plan changes.” Horizons Regional Council is one council that has hit the headlines over what most saw as inadequate section 32 analysis of its controversial One Plan. Adams’ proposed changes will be incorporated in an RMA Amendment Bill likely to be introduced into Parliament before the end of the year. The aim is to end some of the crazy situations which exist today, says Adams. “As a homeowner, if you want to add another bedroom to your house or build a retaining wall, right now you might have to read the regional policy statement, the regional plan, and then your local council’s plan and figure out how they fit together. What a nightmare!” she says. But while the changes will benefit farmers in some ways, it will still require them to meet rising environmental standards and restrictions on water use.

Ravensdown’s bumpy road at an end? sudesh kissun sudeshk@ruralnews.co.nz

RAVENSDOWN FERTILIER chairman Bill McLeod believes the co-op has turned the corner and will deliver a rebate to shareholders at the end of this financial year. He says it’s extremely disappointing not to pay a rebate to shareholders for the first time in the coop’s 35-year history. But he believes shareholders back the decision to offload the losing Australian operations and want to “get on with it”. Ravensdown last Thursday released its annual Bill McLeod results recording a net profit before tax and rebate of $6 million for 2012-13, compared to $52m the previous year. Its Australian operations lost $23m. Shareholder reaction was mixed. Rural News understands some shareholders are asking pointed questions of board members about the result. McLeod said, imme-

diately after the release of the results, that of seven shareholders he spoke to, “one gave me negative feedback, one was neutral and five were positive”. “Shareholders realise we’ve had a bad year, we’ve come to grips with the problem and have taken the losses. Now they want us to get on with it.” Ravensdown’s disappointing results are an even harder pill for shareholders to swallow since rival Ballance posted a record profit and last week paid out $65m in rebate to its shareholders. McLeod says Ballance has had a “fantastic year” and Ravensdown needs to do better. “I believe we have turned a corner.” He doesn’t expect many shareholders to defect to Ballance and is also ruling out redemption risk. “We could have some defections. But our competitor didn’t pay a dividend some years ago and we saw no one come over.”

Ravensdown shareholders cannot leave the co-op for at least five years after stopping fertiliser purchases. McLeod is confident shareholders will stick with the co-op, which will be delivering a rebate to shareholders. “It’s still early days but with reduced debt and without the Australian operations we will be back with a rebate for shareholders.” Asked if the co-op could have offloaded the Australian operations earlier, McLeod says the board had realised two years ago it was “a make or break situation”. But a plan to salvage the Australian operations failed, so last December the co-op decided “something had to happen”. Ravensdown is selling its stake in the South Australian joint venture Direct Farm Inputs and exiting the losing Western Australia business. Revenues for the financial year reached $1.04 billion ($1.07 billion 2012). Shareholders’ equity also remained a solid $358m. Group fertiliser sales volumes were down 4.4% to 1.49m tonnes.

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news 9

Misbehaving ‘poster child’ under scrutiny For the next four to six months Fonterra and some key staff will have their every decision and action publicly scrutinised. While the hype of the whey product contamination scandal may have subsided, raw facts – rights and wrongs, will be revealed. Peter Burke reports. FONTERRA, DESCRIBED by Prime Minister John key as the ‘poster child’ of New Zealand exporting is now the subject of four inquires following the botulism scare. Two of these are by Fonterra about its own performance in the recent crisis, MPI will run an inquiry as the ‘regulator’ and the Government itself will do what is arguably the most significant and powerful one. This week, the PM is set to announce the details of the Government’s ‘commission of inquiry’ which is being set up in such a way that no person or organisation can snub it. Special legislation will be rushed through Parliament to enable the commission to do its work. This will give the inquiry the power to subpoena witnesses and obtain

documents. Of particular interest will be the terms of reference for the commission, Key saying it is important the “powers of those undertaking the inquiry were absolutely spelled out and that ‘all eventualities’ were catered for”. Interest will focus on the composition of the commission. The mix could include people with scientific, health, legal, commercial and marketing backgrounds and possibly someone with a knowledge of China. Key and his colleagues, and Parliament generally, have voiced their concerns about the incident and are determined to get answers to questions they failed to get in the early stages of the botulism scare. The Prime Minister appears to have kept his distance from Fonterra,

leaving this to National’s ‘Mr Fixit’, Steven Joyce, to engage with the company. Key has made it very clear what he wants out of all the inquiries. “I want to be able to travel to China and look down the barrel of their television cameras with the answers as to why this happened, and give consumers confidence it’s been fixed and that all issues have been identified.” No timeframe has been set for when the Government’s Commission of Inquiry will report back, but Key ruled out a Royal Commission because it would “take too long” and a ministerial inquiry because it wouldn’t have the power to subpoena witnesses. For Fonterra and others the days of hiding behind spin doctors will disappear forever.

Fonterra looks at itself MEANWHILE, FONTERRA has set in train two inquiries of its own. Independent Fonterra director Sir Ralph Norris will chair a committee consisting of independent directors Simon Israel and John Waller, two farmer directors – Blue Read and Nicola Shadbolt and retired High Court Judge Dame Judith Potter. Another independent member, “an eminent scientist” will be added to this committee. Jack Hodder QC will undertake the main inquiry work and present this to the committee for review and

recommendations. The report from this committee is due by about the end of September. As well, an internal management inquiry is underway within Fonterra, headed by the group director of strategy Maury Leyland. She will head a largely technical team including Fonterra’s chief technology officer Dr Jeremy Hill and NZ Milk Products global account director Joanne Fair. The findings of the Leyland committee are due out at the end of August.

MPI also inquirers THE FOURTH inquiry is being run by the Ministry for Primary Industry as the ‘regulator’. This will determine whether regulatory requirements under the Food Act and the Animal Products Act were met by all parties involved, or whether any parties may have committed any breaches or offences. “The investigation will include decisions made by all parties and their response, including during production of the whey protein concentrate, and from when anomalies in testing initially arose,” says acting MPI director-general

Scott Gallacher. He says this inquiry could take up to six months and if any breaches of the regulations are uncovered, fines ranging from $100,000 to $500,000 could be imposed. Comments made by Fonterra boss Theo Spierings that “human errors in life do happen”, have touched a raw nerve with John Key. He’s reported as saying, in response, “it’s the role of the company and regulator to eliminate and rectify any human error before there is a problem”.

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Rural News // August 20, 2013

10 news

Goodwill loss blamed for PGG Wrightson’s poor result RURAL SERVICE company PGG Wrightson has written off $321 million in goodwill charge and posted a loss of $306m for 2012-13. It says the goodwill largely arose as an accounting entry from the 2005 merger of rural entities PGG and Wrightson. A lower share price,

slower-than-expected recovery and a range of external variables led the board to write down the historic goodwill, says PGW chairman Sir John Anderson. Anderson says the write-off will have no impact on the company’s operations. “The investment market currently does

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not attribute value to the goodwill and writing it down has no effect on the company’s day-today business or banking arrangements and no bearing on our ability to generate cash or on our dividend policy. “We expect to see continued improvement in the fundamental performance of the business through 201314 based on stronger agricultural commodity prices and assuming a return to normal conditions onfarm.” The company reported a gross profit of $45.8m for the year ending June 30 2013. It says ignoring the goodwill write-down, a profit of $14.6m would have been posted compared to last year’s profit of $24.5m. Shareholders will next month be paid a dividend of 1c/share, on top of 2.2c paid in March. PGW’s new chief executive Mark Dewdney says the operating result is a solid achievement. “Drought in the North Island and in parts of Australia, as well as reduced prices for key agricultural commodities, made late-autumn trading conditions challenging and our business units

experienced varying fortunes. “Despite this our business is in good shape. Our people, and the strength of their relationships with customers, are the key to our success. Customer satisfaction and staff engagement measures show we are making excellent progress in these critical areas.” PGG Wrightson’s retail, wool and irrigation businesses performed strongly with improved market share in key categories. Livestock, real estate, seeds and grain faced challenges. Year-on-year trading figures in many rural supplies stores were up, and its irrigation business showed excellent growth, particularly because of large

irrigation schemes coming on stream in the South Island. The full year benefits of reintegrating the wool business back into the broader group improved performance and reduced support costs. However, the drought and lower market values for lambs took a toll on farm profitability, and this is reflected in the livestock business, says Dewdney. “Timing of rainfall in dairying regions is a factor in the fortunes of our Australian seed business, and conditions resulted in poorer than expected sales.”

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MPI rips out backyard kiwifruit orchard PA M T I PA pamelat@ruralnews.co.nz

THE OWNERS of a small Auckland kiwifruit orchard illegally planted 14 years ago thought they might make some money from it. Instead it got ripped out. The orchard was planted in 1999 in an Auckland backyard using seeds illegally imported in a container of household goods. They were not declared and subsequently not detected at the border. MPI found out about the orchard in July last year when the owner approached the organisation about getting retrospective approval for the seeds brought into the country in 1997, says MPI manager response Katherine Clift. The orchard was taken out this month after tests and investigation. “I understand they approached Zespri about whether there might have been any commercial opportunity for the plants they had grown and Zespri directed them to MPI,” says Clift. “Once we became aware of the situation we launched an investigation to confirm whether these were unauthorised goods that had been imported and the risk they would pose to New Zealand. That investigation is still ongoing. It resulted in all the plants being removed and securely destroyed. “I think it is pertinent if anyone knows of any potentially illegally imported seeds or plant material, we encourage them to call our pest and disease hotline on 0800 8099 66.” Clift says testing of plant material from the property by MPI ruled out the presence of any serious disease-causing viruses, bacteria or fungi, including Psa. The ministry decided the plants presented a low risk to the New Zealand kiwifruit industry. “In addition, the plants are at a location geographically removed from key kiwifruit growing areas and the owner has stated that no plant material has been moved from the property.” Clift says that despite the low risk to the kiwifruit industry posed by this backyard operation, the seeds were imported illegally and MPI decided any remaining seeds, kiwifruit material and the vines needed to be removed and safely destroyed. MPI is working with the kiwifruit industry body Kiwifruit Vine Health (KVH) on this issue.

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Rural News // august 20, 2013

news 11

Baby milk product firm frustrated PA M TI PA pamelat@ruralnews.co.nz

NUTRICIA WILL have the two infant formula products which potentially contained contaminated whey from Fonterra back on the shelves within weeks. Nutricia ANZ managing director Corine Tap believes they can “win back the trust” of customers. The company was still getting product back from retailers early last week and had taken 7000 calls and 600 emails from parents and carers after all staff volunteered to man the phones 24/7. Not all parents had been able to get through, said Tap. Tap said she was “frustrated” with the flow of information and the “misinformation” in the media, although she would not elaborate whether the media or official sources were to blame. She skirted around directly criticising Fonterra but said as a parent herself she found the situation “difficult to understand”. “Some of you have been asking us about our attitude to Fonterra and whether we will be taking legal action over their contamination issue,” Tap told a press conference in Mt Wellington, Auckland. ”I hope you will understand that our only concern today at this time is for babies… and of course parents.” Tap said she is a mother of toddlers who drink formula. “I understand the anxiety and worry that not having clarity has caused. I find it difficult to accept the situation and I understand many feel the same way.” Tap twice thanked the Ministry for Primary Industries for working closely with them to get the information required. She said it had been a “fraught” time for New Zealand families. “I know getting accurate information has not been easy and this has continued to frustrate me and my team.” Nutricia was only able to finalise the scope of its Karicare product recall

last Monday – 10 days after Fonterra first announced the whey contamination issue – due to these “frustrations” with information flows. The final scope of the recall involves two Karicare products – Karicare state 1 new baby infant formula and Karicare Gold + follow-on formula – manufactured between May 21, 2013 and August 2, 2013. But it was only after a week that Nutricia was able to get enough information to pin the recall down to formula manufactured within these dates. Previously all these two products manufactured under any dates were being pulled from the shelves as a precautionary measure. Although Nutricia manufactures infant formula for the Chinese market, it was only formula in New Zealand affected by the recall and only these two products. Tap believed parents appreciated the way Nutricia had dealt with the situation. Asked if she thought the brand had been harmed, she said it was difficult to say as she had been focused on the immediate response. “Based on what I have seen and read and heard myself over the last week, we will win back the trust,” she said. Asked how the Government and Fonterra had handled the flow of information she said: “I have been frustrated with any information that has been out causing misunderstanding or stress or anxiety amongst mums and dads and parents, so I am happy to get some clarity out … We’ve been working closely with MPI on getting this information out and we are working with Fonterra now to work towards the future.” Future discussions will be on “what has happened and how”. She said she had only learnt about the Fonterra committee appointed to look into the issue through media reports; she had not been told directly. “We will be happy to assist in any inquiry in order to ensure

safety and that Brand New Zealand and our own brand are in a good space.” She said it was too early to say what lessons had been learnt; it

will be something they will relook at themselves. Asked if they had considered switching their supplier she said it was too early to say. “We are work-

Nutricia ANZ managing director Corine Tap says they are now working with Fonterra towards the future.

ing with Fonterra to ensure this is not going to happen again.” She understood it was an “isolated issue”. @rural_news facebook.com/ruralnews

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Rural News // august 20, 2013

news 13

The whole world is watching! pam tipa pamelat@ruralnews.co.nz

IF THERE is a food scare in New Zealand, the world is watching and we are not prepared sufficiently for that, says infant formula industry representative Chris Claridge You never want to see the words “New Zealand … infant formula…botulism” in the same sentence, says Claridge, a spokesman for the New Zealand Infant Formula Exporters’ Association. What impacts on Fonterra, impacts on the brand of New Zealand in China. “While New Zealand consumers are very aware of the Fonterra brand, consumers in China are not. They simply see ‘dairy-New Zealand’.” He says the country needs a better co-ordinated and coherent strategy for dealing with food scares and the way they are communicated internationally. The association hopes this will come out of the Government inquiry into the Fonterra whey recall. “Given that New Zealand consumers were struggling to understand what was going on, I assure you Chinese consumers were equally struggling,” says Claridge. He believes the dripfeeding of information,

the way in which information was released, needed more clarity on what was happening, why it had happened and what’s going to be done to fix the problems. “Arguably the way it was managed and the lack of coordination is disconcerting.” The issue is complicated by domestic and international markets being impacted. “You’ve got a domestic market which has rules and regulations on how information is released and you’ve got an international market. It’s all very well informing consumers here in New Zealand of a food scare, but we also have a lot more consumers of our food products internationally. “If you get a food scare in New Zealand, you get a food scare internationally. The internet and the news reporting now are a lot more efficient into China and international markets and there is a greater transparency between international markets.” Claridge says while protocols exist for informing consumers domestically, none exist for how this is handled internationally. “What happens to one food brand in New Zealand impacts on all food brands. The rest of the world view us as New Zea-

land, they don’t view us as Fonterra or Carrickmore, etc.” The strategy should involve multiple government departments, he says. “What we should have seen in a perfect world would have been Ministry of Health, MPI, Fonterra, Mfat, and NZTE all in a room with clear messages.

There was no coordination here. [Fonterra] is the largest company we have in New Zealand with the best and brightest. If that is as good as it gets, that’s not good enough. We have a world audience and it appears to me that is not understood.” Claridge says if you don’t understand the sensitivity regarding food

for new-born babies and infants then you shouldn’t be in the game. “Food for a baby is as important as it gets. If people don’t understand that they don’t get what the issue is.” Nowhere else in the world is an entire country’s brand tied to the safety of its products associated with infant formula. Trust in other products

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China ups testing INFANT FORMULA exporters into China are now facing increased testing requirements, some order cancellations, products stuck at the wharves and increased complexity at the border. These are the short-term effects of the Fonterra recall on some of the 15 members of the New Zealand Infant Formula Exporters Association, although their products are not associated with the contaminated whey. “There are 23 ports in China and exporters have always faced issues clearing their products at Chinese ports; this will just add to the complexity,” says association spokesman Chris Claridge. The Ministry for Primary Industries is working hard with Chinese authorities to maintain market access, says Claridge. Members are waiting on an agreed standard from MPI on the Clostidium botulinum test protocols so export products can meet a standard agreed between MPI and those ports of entry. Clostidium botulinum is the potentially deadly bacteria Fonterra found after extensive testing in just two batches of whey products. The Fonterra positive result for the bacteria was highly unusual as it is rarely found in dairy products and is killed by any contact with oxygen. – Pam Tipa

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Rural News // August 20, 2013

14 news

Farmers need to front on safety pete r bu r ke peterb@ruralnews.co.nz

THE NEW chairman of the New Zealand Agricultural Aviation Association (NZAAA) is appealing to farmers to provide a safe working environment and to fully comply with new environmental standards. Allan Beck, who owns Beck Helicopters, Eltham, Taranaki, told Rural News that farmers need to ensure a safe workplace for agricultural pilots, especially good airstrips and an end to stringing electric fence wires across gullies, the cause of many helicopter crashes. Beck broke his back some years ago when he hit a wire and knows of at least 24 fatalities caused

by farmers who ran wires across gullies. In Australia, farmers can face legal action for this and a similar law in New Zealand would give farmers the message. “The industry has had discussions with Federated Farmers and run a campaign with kids in different rural schools to go back to their mums and dads and say ‘why are we hanging wires up in the gully where the helicopters have to spray?’ “Fertiliser application has not really been a problem for aeroplanes because they are up at 200 feet, but in helicopters we fly lower and if you’re spraying you are trying to ‘glue’ that stuff to the ground, so the risk of a

wire strike is greater.” Beck says farmers need only spend a bit more money on wire and follow the fence line instead of taking a short cut across the gully. Beck says farmers must expect to pay a ‘fair’ price to have fertiliser spread on their properties. Aerial spreaders have simply gone broke or had a bad crash record by not charging enough to keep their businesses afloat, especially when times are tough. Beck reckons the new road user charges will put up the cost of transporting fertiliser to farms and he predicts greater use of ‘hot mixes’ of fertiliser. ‘Triple super’ is an example – 16% P as opposed to the stan-

dard 6%. Key issues in future will centre on sustainability and compliance, Beck says, meaning fertiliser and sprays will have to be applied to council rules, avoiding damage to the environment. “The public are not fully aware of the technology we are using and that’s our fault as an industry. We know what we are doing, we are compliant; we have to get out there and sell ourselves.” Beck says the fertiliser manufacturers must be part of the deal. The days of so-called ‘dust’ fertilisers will pass, granulated products being more the norm. Especially problematic is fertiliser and spray drift where lifestyle

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blocks adjoin commercial operations. “When the townies move into rural areas they are demanding the same

clean air and no noise as when they are living in Auckland – a huge problem. They can make life extremely difficult and we

not only have to change, but be seen to have changed.” @rural_news facebook.com/ruralnews

Rural contractors welcome reforms RURAL CONTRACTORS New Zealand (RCNZ) echoes NZAAA’s comments about on-farm workplace safety. RCNZ president Steve Levet welcomes the Government’s recently announced workplace health and safety reforms. “Employers and employees have an important part to play in improving safety in the workplace,” says Levet. “Unfortunately, the attitude towards ensuring workplace safety is not universal in the agricultural scene and it can be a battle to get safety seen as a priority by every individual.” He says rural contractors and their staff need to be as vigilant in maintaining their own safety in the workplace as in maintaining their machinery. “We must not forget that our people are our biggest asset and we must do everything possible to ensure their health and safety at work. Unsafe work practices are unacceptable and a danger to our lives and livelihoods.” Levet says rural contractors must get the acceptance of everyone

involved in their businesses – office staff, the farmers we work for, and staff out in the field – of their collective and personal responsibility for health and safety. This is the responsibility of all contractors, workers and their workmates, and the farm businesses they are working for, he insists. “Rural contractors are acutely aware of the need for robust and safe workplace practices, most having already implemented major safety initiatives and plans. But we are always open to new ideas about how we can do things better and further improve workplace safety.” Levet believes the proposed reforms will reinforce the aim of RCNZ of creating safer workplaces for its members and all staff. “However, while enforcement of regulations is crucial, we cannot ensure safe workplaces without strong leadership from all rural contractors and 100% commitment to safety from all of us involved in the agricultural industry.”

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Rural News // August 20, 2013

16 news

Crisis raises questions for world’s dairy industry pam tipa pamelat@ruralnews.co.nz

QUESTIONS WILL be asked about food safety testing standards after the Fonterra recall and has implications not only for the cooperative itself, but for dairy testing standards internationally. Fonterra chief executive Theo Spierings confirmed to Rural News there are wider implications in the “international scene of dairying”. Other industry sources have confirmed that while Fonterra “blew the whistle on itself” it could also have raised the bar on dairy testing in the evolving food safety environment. All the whey products involved in the recall had passed the standard testing under international Codex standards – both by Fonterra and its customers. It was only after further probing when Fonterra saw some elevated readings, that the potentially lethal Clostridium botulinum was found.

Those elevated readings seen in March could have indicated at least 100 different types of bacteria, most of which were harmless’ It took a deeper level of testing until July 31 to identify the Clostridium botulinum which is extremely uncommon in dairy products. Spierings says that’s when, after consideration, Fonterra decided to go public with a food safety issue. “It was minute – a one-in-a-million chance. But we cannot take that risk. We only knew about it on July 31. In March we knew we had lab results, but they were within specification and accepted by customers.” Asked by Rural News whether there are implications for future dairy testing internationally, given that the whey product had passed all standard tests through various stages – including by customers – and that it was picked up only during further probing by Fonterra, Spierings said, “That’s on our minds”. “If you have increased levels of

sulphide-producing clostridia which you investigate but it is still within Codex levels and you ship it… we need to talk to authorities and our customers to really identify a set of corrective actions and what we have to do in the future if we find elevated levels. That is a very good question.” Clostridium botulinum does not survive in an environment where oxygen is available, says Spierings, who has a food technology background. “All milk products contain oxygen – it cannot develop. That’s why the likelihood around this is so low. Codex has certain standards and we acted within the Codex; that’s the question you have to ask. Once you find these elevated levels, what are we going to do in the international scene of dairy? “If you don’t test for it you don’t find it; that’s why you have to have the right specifications for the right product. @rural_news facebook.com/ruralnews

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Aussies set record sudesh kissun sudeshk@ruralnews.co.nz

AUSTRALIAN BEEF exports for 2013 are forecast to reach a record 1 million tonnes. Three factors are pushing exports: high slaughter levels due to drought conditions, sustained growth in emerging markets and the recent easing of the Australian dollar. But in its 2013 mid-year cattle projections update last month, Meat and Livestock Australia says not all farmers are cashing in. MLA chief economist Tim McRae says tough production conditions across the north will continue, while in southern Australia good seasonal conditions going into spring should have a positive impact on the market. “A positive rainfall outlook for southern Australia for the next three months, combined with recent good winter falls, is expected to contribute to a tighter supply of cattle heading into spring. “This will be in stark contrast to conditions for producers across northern Australia, who will continue to face tough conditions until the onset of the next wet season.” There is also a mixed picture among export markets: Middle East and China markets want more Australian beef while volumes to Japan and the US have declined. “The development of emerging markets for Australian beef in recent years, most notably China and the Middle East, has helped to buffer tough trad-

ing conditions in traditional markets,” says McRae. “Total Australian beef and veal exports for 2013 are forecast to reach 1 million tonnes swt – the highest annual total on record.” Tough trading conditions for Australian beef to Japan have continued, with sluggish consumer demand, currency volatility and increased competition for market share from US product. Exports to Japan are forecast to total 290,000 tonnes swt for 2013, the lowest annual level since 2003, prior to the restrictions placed on US beef. McRae says Australia has been able to capitalise on current market access advantages in China and the Middle East. “China has been the growth market for beef exports as the growing economy, tightening of import regulations and increased consumer demand for imported beef have provided an opportunity for Australian beef to capitalise, assisted by limited access for US and Brazil beef. Beef exports to the Middle East have also continued to grow, assisted by the ban on Brazilian beef to Saudi Arabia.” Australian beef exports to Korea are anticipated steady for 2013, however volumes will come under pressure into 2014 as the US tariff reduces further as part of the US-Korean FTA. Live cattle exports are forecast to be 575,000 head in 2013, with further growth heavily dependent on discussions for improved partnerships between Australia and Indonesia.

Rural News // august 20, 2013

world 17

Farmers scan policies as Aussie goes to polls AUSTRALIANS GO to the polls next month and politicians have been told to come clean about their agricultural policies. The National Farmers’ Federation (NFF) says it is looking to politicians to be clear on their policies, and commit to action for the agriculture sector. NFF president Duncan Fraser says Australian agriculture needs to be a priority for all sides of Parliament in this election. The NFF will be looking for agriculture to be elevated in the policy debate between major parties. “Now that we know the election date, we’re looking for equal certainty in policy issues, so farmers can get on with their job. We encourage all political parties to consider how they can best serve a strong, vibrant agriculture sector. “In the National Food Plan, The Asian Century White Paper and [recent] media comments by the Prime Minister, the Government has signalled that food, fibre and agriculture are a priority. Sim-

ilarly the Coalition has indicated its commitment to the sector with agriculture as a key policy pillar. What farmers and the broader rural sector now need to see is the detail behind the rhetoric, so that they can make up their own minds about what the major parties and independents have to offer. “Between now and September 7, major political parties will be judged by the NFF on their commitment to the agriculture sector and long-term policy vision. A scorecard system will provide an evaluation of the policies of each of the parties, available for farmers and anyone else interested in pursuing a strong vision for Australian agriculture.” The NFF has five key policy priorities: • Growing Australian agriculture: reprioritising agriculture in the national agenda. Key actions required: a commitment to implement blueprint priorities and to increase agriculture’s share of the

NFF president Duncan Fraser (right) with former Federal Agriculture Minister Joe Ludwig.

federal budget. • Investing in R&D: driving innovation and productivity through increased investment in agriculture R&D. Key action required: increasing total expenditure on R&D by 1% (of total national expenditure on R&D) by 2015. • Increasing competitiveness and profitability: ensuring we are a globally

competitive and our farmers remain profitable. Key actions required: reduce red tape by harmonisation of state/federal regulations; ensuring fair competition by delivering the balance of market power; and driving investment in infrastructure needed by farmers. • Building a stronger workforce: encouraging greater uptake of agricul-

tural careers and delivering improved labour solutions. Key actions required: embedding agriculture into the national curriculum and allowing individuals flexible agreements when taking jobs. • Balancing agriculture and the environment: ensuring our natural resources can continue to be managed while also increasing agricultural production. Key actions required: ensuring infrastructure and other efficiency measures are in place prior to any water purchases in the Murray-Darling Basin; and helping farmers to improve preparedness and response to extreme climactic events including an overhaul of drought support measures. “All sides of Government need to remember that the future of food, fibre and agriculture is dependent on policy decisions made today. These decisions are not just important for farmers but for the millions of Australians who eat, drink and wear what we grow every day,” says Fraser.

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Rural News // August 20, 2013

beef market trends

Market snapshot Meat c/kgCWT

North Island

South Island

Change c/kg

Last Week

Lamb - PM 16.0kg

5.38

5.45

Steer - P2 300kg

4.60

4.35

Bull - M2 300kg

4.47

4.20

+15

6.95

+15

7.15

Venison - AP 60kg

BEEF PRICES

LAMB PRICES Change

c/kgCWT NI

P2 Steer - 300kg

$4.5 May

Jul

Aug

Sep

Oct

South Island 16.0kg M Lamb Price $6.5

$5.5 5yr Ave Last Year This Year

$4.5 May

Jun

Jul

Aug

Sep

Oct

5.36

5.31

5.51

4.30

PM - 16.0kg

5.38

5.33

5.53

P2 Cow - 230kg

n/c

3.65

3.60

PX - 19.0kg

5.40

5.35

5.55

M Cow - 200kg

n/c

3.55

3.50

PH - 22.0kg

5.41

5.36

5.56

Local Trade - 230kg

4.68

4.60

4.30

Mutton

MX1 - 21kg

n/c

3.15

3.30

P2 Steer - 300kg

4.35

4.30

4.18

SI Lamb

YM - 13.5kg

5.45

5.38

5.46

M2 Bull - 300kg

4.20

4.15

4.00

PM - 16.0kg

5.45

5.38

5.48

P2 Cow - 230kg

n/c

3.10

3.20

PX - 19.0kg

5.45

5.38

5.50

M Cow - 200kg

n/c

2.95

3.00

PH - 22.0kg

5.45

5.38

5.51

Local Trade - 230kg

4.50

4.45

4.30

n/c

3.13

3.20

Change

$3.7 May $4.5

Last Year 5yr Ave

Jun

Jul

Aug

Sep

Oct

38.8

34.0

36.7

Lamb NI

-8%

141

152

158

145

19.4

23.7

16.9

15.1

-9%

129

141

132

135

Cattle NZ

-16%

Lamb SI

52.8

62.5

50.9

51.8

+3%

Lamb NZ

-8%

270

294

290

280

Bull NI

6.9

6.7

7.2

7.3

-28%

Bull SI

-55%

Mutton NZ

1.0

2.2

3.1

2.0

Str & Hfr NI

-7%

15.5

16.7

16.6

16.1

Str & Hfr SI

+19%

6.9

5.8

6.3

5.8

Cows NI

-29%

11.0

15.4

10.2

13.4

Cows SI

-27%

11.5

15.7

7.5

7.3

Jun

Jul

Aug

Sep

Oct

Jun

Jul

Aug

Sep

Oct

Last Week

2 Wks Ago

5yr Ave Last Year This Year

$6.5

Jun

Jul

Aug

Sep

1.93

2.09

1.82

NZ$/kg

-7

5.32

5.39

5.69

5.38

$1.80 May

Jun

Jul

Procurement Indicator

Aug

Sep

Oct

Change

3 Wks Ago

% Returned NI

+2%

83.6%

82.0%

76.40%

74.9%

% Returned SI

+2%

78.0%

76.1%

70.2%

68.5%

n/c

1.82

1.35

1.74

+12

7.80

7.68

5.74

8.51

Last Year 5yr Ave

Procurement Indicator - North I.

70%

Last Year This Year

Jul

Sep

Procurement Indicator - South I. Last Year This Year

$7.5

Last Year

Jul

Aug

Sep

Oct

Last Year This Year

£2.00 £1.50 Jun

Jul

Aug

Sep

Oct

Procurement Indicator Change

2Wks Ago

3 Wks Ago

% Returned NI

-0%

69.9%

99.2%

69.6%

% Returned SI

-0%

69.2%

69.7%

98.9%

69.0%

Last Year 5yr Ave

110% 100% 90% 80% 70% 60% 50% May

Last Year This Year

Jun

Jul

Aug

Sep

Oct

Procurement Indicator - South I. 105% 95% 85% 75% 65% 55% 45% May

Last Year This Year

Jun

Jul

Aug

Sep

Oct

70%

Venison Prices

This Year

Jun

£2.50

80%

$6.5

Last Year 5yr Ave

Procurement Indicator - North I. 2Wks Ago

$8.0

5yr Ave

2 Wks Ago

NZ$/kg

This Year

60% May

$7.0

Oct

UK Leg £/lb

£1.00 May

Last Year

Oct

South Island 60kg Stag Price

Sep

Demand Indicator - UK Leg Price Last Year 5yr Ave

n/c

90%

Aug

Last Week

Change

North Island 60kg Stag Price

$7.0

Jul

Export Market Demand

95CL US$/lb

$7.5

$6.0 May

This Year

300

This Year

$2.00

$8.0

$8.5

Last Year

450

0 May

Last Year

5yr Ave

$6.0 May

NZ Weekly Lamb Kill

600

150

NZ Weekly Beef Kill

Demand Indicator - US 95CL Beef

This Year

Last Year 5yr Ave

33.4

South Island 300kg Steer Price

Last Year

3 Wks Ago

-18%

Change

5yr Ave Last Year This Year

2Wks Ago

Change

-14%

Export Market Demand

$4.0

$8.5

1000s

Estimated Weekly Kill

Cattle NI

$2.20

$3.5 May

MX1 - 21kg

NZ Slaughter

Estimated Weekly Kill 3 Wks Ago

Mutton

Cattle SI

0 May

$4.2

Last Year

4.20

North Island 300kg Bull Price

YM - 13.5kg

2 Wks Ago

4.45

2Wks Ago

NI Lamb

Last Week

4.58

40 $4.7

Change

c/kgCWT

4.47

1000s

Jun

Last Year

4.60

NZ Slaughter 5yr Ave Last Year This Year

2 Wks Ago

North Island 16.0kg M Lamb Price

$5.5

Last Week

M2 Bull - 300kg

$6.5

lamb market trends

60% May

Jul

Change

Sep

Beef & venison prices are reported as gross (before normal levies & charges are deducted). Lamb & mutton prices are reported nett (after levies & charges are deducted). Note: Freight is paid in the North Island but not by all companies in the South Island.

Last Week

2 Wks Ago

Last Year 5yr Ave

NI Stag - 60kg

+15

6.95

6.80

7.40

7.86

SI Stag - 60kg

+15

7.15

7.00

7.85

8.23

Rural News // august 20, 2013

news

price watch WOOL PRICE WATCH

BEEF

Change

08-Aug

01-Aug

Coarse Xbred Indic.

4.59

4.54

3.48

Fine Xbred Indicator

n/c

4.98

4.71

Lamb Indicator

4.83

Mid Micron Indic.

-2

7.73

7.75

8.80

Local trade leads export cattle prices higher

Indicators in NZ$

Local trade operators continue to be very short of cattle and prices are lifting as they fight to get their fill. Prices ranged between $4.50 to $4.80/kg freight paid with most cattle trading at $4.60-$4.70/kg in the North Island and $4.45-$4.55/kg in the South Island. Export operators are lifting their game on good lines of cattle to compete. Bull prices are slipping further behind steer with the US market still relatively sluggish. Company margins on bull are 25-30% below normal for this time of year which continues to limit the upside.

New domestic labelling requirements for beef

450

New labelling requirements for imported red meat came into play at the beginning of the month and means all foreign meat sold on NZ supermarket shelves will have country of origin labelling. The majority of red meat sold domestically is produced in NZ; however limited supply sometimes requires the deficit to be made-up from imported product; largely Australian. New Zealand product has been labelled from 2007 with the Quality mark, while imported product has remained unmarked. More Australian beef has been competing with NZ beef on supermarket shelves this year which has limited demand and pricing. It is hoped that the new country of origin labelling requirements will see a boost in demand for NZ product from both supermarkets and consumers.

Wool Indicator Trends

600

CXI

550

FXI

500

Lamb prices have continued to firm steadily in recent weeks. In the North Island lamb prices ranged between $5.40 and $5.70/kg (gross incl. wool/pelt, presentation etc) last week. Some local trade operators were paying closer to the top of the range at $5.60-70/kg. Prices in the South Island have started to close the gap on the North with a range of $5.35-5.60/kg last week. Numbers of ewes coming forward for kill is dropping fast in both islands and pricing is relatively static with most between $3.10-$3.20/kg.

300 Aug

Oct

Dec

Feb

Apr

Deer prices have started to lift strongly in the build up to the spring chilled trade. Prices lifted last week to average $7.15-20/kg in the South Island. North Island prices are also set to break through the $7/kg mark. Price remain 60c and 85c/kg behind last year in the North Island and South Island respectively. Strong price lifts are expected for the weeks ahead before prices plateau in spring. There are good numbers of deer coming forward for slaughter at present with plants filling up.

Bill Hodgson Dunedin

5253

5245

3445

5759

5750

3445

+10

6218

6208

3491

-54

5475

5529

4368

SMP But.

Oct

WMP Ched.

Dec

Feb

Apr

Jun

Whole Milk Powder Price (NZ$)

7,000 Last Year This Year

Last Year

6,000

This Year

5,000

400

4,000 300 May

Jun

Jul

Aug

Sep

Oct

Coarse Xbred Indicator Lamb Indicator Mid Micron Indicator

3,000 May

08-Aug

Last Year

01-Aug

3.65

3.63

2.82

-1

3.96

3.98

3.81

3.91

-4

6.15

6.19

7.11

Indicators in US$/T

Jul

Aug

Sep

Oct

Last 2 Wks

Prev. 2 Wks

Last Year

n/c

4150

2800

n/c

4550

2800

n/c

4913

2838

-50

4325

4375

3550

Change

Butter Skim Milk Powder Whole Milk Powder Cheddar

Wool Indicator in US$

500

Jun

Overseas Price Indicators

Change

Fine Xbred Indicator

Dairy Prices in US$/Tonne

450

5,500

400

4,500

300

Deer prices surge for spring chilled trade

+9 +9

Dairy Prices Trends

3,000 Aug

Jun

Coarse Xbred Indicator

500

Store lamb prices have spiked significantly over the last 4 weeks. Great winter growing conditions for most and more confidence in the lamb market have been contributing factors in the price jump. Prices for 30-34kg male lambs at North Island yards have been over $3/kg. There were 18,000 lambs on offer at the Marton hogget fair in the lower North Island and prices for 30-37kg lamb were $3.20$3.30/kg. The same week another 7,000 lambs were on offer at Feilding and the market was at least as strong. There has also been a lift in South Island prices but they remain under the $3/kg mark. The market in the south is much quieter with limited numbers trading.

DEER

Whole Milk Powder Cheddar

Last Year

4,000

350

A combination of drought and continued dairy expansion in the South Island has led to higher than expected national mutton kill. At 22% above last year, the repercussions from this will be a smaller breeding ewe flock at the beginning of lambing by around 500,000 ewes. Combined with fewer ewe hoggets being mated, the impact on 2013-14 lamb production could result in a lower lamb crop than the industryâ€™s recent low of 18.9 million in 2010-11.

Butter

Prev. 2 Wks

5,000

400

No stopping store lamb prices

Implications of high mutton slaughter

Last 2 Wks

Change

Skim Milk Powder

6,000

Indicators in US$/kg

Lamb prices still steadily firming

Indicators in NZ$/T

7,000

Overseas Price Indicators

LAMB

Andrew Wood Palmerston North

DAIRY PRICE WATCH Last Year

SMP .But

WMP .Ched

3,500 CXI

250 Aug

Oct

Dec

FXI

Feb

Apr

2,500 Aug

Jun

Coarse Xbred Indictor in US$ Last Year This Year

350

Dec

Feb

Apr

Jun

Whole Milk Powder Price in US$/T

5,500

400

Oct

5,000

Last Year

4,500

This Year

4,000 300

3,500 3,000

250 May

Jun

Jul

Aug

Sep

Oct

2,500 May

CURRENCY WATCH vs. NZ Dollar

Last Week 2 Wks Ago 4 Wks Ago Last Year

US dollar

0.799

0.790

0.785

0.809

Euro

0.597

0.598

0.599

0.658

UK pound

0.514

0.523

0.517

0.518

Aus dollar

0.879

0.887

0.856

0.769

Japan yen

77.29

78.53

77.66

63.62

0.68

Euro

Aug

Sep

0.75

Last Year This Year

0.70 May

Jun

Jul

Aug

Sep

Jul

Aug

Peter Young Hawkeâ€™s Bay

Sep

Last Year

0.50

This Year

0.48

Oct

0.46 May

Oct

UK Pound Last Year This Year

0.52

Jun

Oct

US Dollar

0.54

0.60

Jeremy MacAvoy Ashburton

Jul

0.80

0.56

0.64

0.56 May

0.85

Jun

Jul

Aug

Sep

Oct

Rural News // August 20, 2013

20 agribusiness

francis wolfgram Finance Matters

NZ Dairy Market GDT Auction 1 Mth 3 Mths 6/08/2013 Change Change

Product

Change in 2013

NZD/Tonne

Whole Milk Powder(WMP)

6,378

6.0%

-0.3%

53.6%

Skim Milk Powder(SMP)

5,654

0.4%

0.7%

33.7%

Butter Milk Powder(BMP)

5,895

5.2%

7.2%

31.3%

CHEESE

5,506

-2.4%

-12.5%

23.4%

Trade Weighted Index (GDT- TWI)

6,156

2.9%

-1.9%

38.7%

The GDT market on August 6 held up surprisingly well – considering the massive damage done by the Fonterra botulism scare. Ironically, the biggest impact to the dairy product group wasn’t the milk powders but the cheese contract, which was down 4.4%. Whole milk powder held up very well only down 1.6%. Skim milk powder was hit a little harder down 3.3%. This is a soft landing for such a major issue and the auction had little if no impact on longer term prices with all product groups still sharply up for 2013. Prices we’re expected to come off recent drought highs for the remainder of 2013 and at this point, the botulism scare doesn’t seem to have had a major impact on Fonterra’s pricing power. However, it is vitally important for Fonterra to contain the crisis and address the current and ongoing trade bans for New Zealand dairy products before the our dairy production season ramps up. The co-op’s ability to do this will determine the fate of dairy prices over the course of 2013.

US agricultural commodity prices have been relatively flat over the past fortnight. Corn prices, although down, have stabilised after the U.S. Department of Agriculture (USDA) said unusually heavy rains will mean a smaller harvest than the record forePrice This Price Last Change cast last month. U.S. farmers (the world’s largest corn Issue Issue growers) will collect 13.763 billion bushels, less than the 13.95 billion forecast in July and below the 14.036 $2.797 $2.775 0.818% billion forecast by analysts. The recent USDA production report showed U.S. wheat supplies for 2013/14 $3.472 $3.364 3.198% had small increases for Soft Red Winter wheat and Durum and are mostly offset by decreases for White, $1.873 $1.870 0.212% Hard Red Spring and Hard Red Winter wheat. This report also stated that red meat production fore$10.470 $10.470 0.000% cast for 2013 has been raised; as greater fed cattle and cow slaughter combine with heavier average carcass $4.555 $4.748 -4.055% weights pushing output higher. Moderate feed prices and recent placement of heavy animals are expected $6.495 $6.523 -0.422% to support higher average carcass weights in the second half of the year.

US Agricultural Commodity Prices Commodity

Units

Live Cattle

USD/Kg

Feeder Cattle

USD/Kg

Lean Hogs

USD/Kg

Greasy Wool

USD/Kg

Corn

USD/ Bushel

Code

Company

Prices as 12/08/2013

Prices as at 30/07/2013

Change

Change in 2013

ALF

Allied Farmers

$0.017

$0.016

6.25%

-43.33%

ATM

A2 Corporation

$0.700

$0.660

6.06%

29.63%

DGL

Delegat’s Group

$4.050

0.00%

37.76%

HNZ

Heartland Bank

$0.86

0.00%

26.47%

FSF

Fonterra Shareholders Fund

$7.100

$7.400

-4.05%

0.24%

FFW

Foley Family Wines

$1.350

0.00%

12.50%

LIC

Livestock Improvement Corp.

$5.60

$6.05

-7.44%

3.70%

PGW

PGG Wrightson

$0.330

0.00%

-28.26%

SAN

Sanford Limited

$4.400

$4.690

-6.18%

3.53%

SEK

Seeka Kiwifruit Industries

$1.950

$1.900

2.63%

116.67%

TEN

Tenon Limited

$1.400

$1.260

11.11%

68.67%

WEL

Wool Equities

$1.650

0.00%

TUR

Turners & Growers

$0.120

0.00%

9.09%

RNAI

Index Total

29.527

30.336

-2.67%

13.25%

Our basket of agri shares have slipped back over the past fortnight with LIC, Sanford and Fonterra the biggest losers. Gains came from Tenon, A2 and Allied Farmers. LIC went ex-dividend on the August 7, Sanford reported catches in greenshell mussel production are lower than planned and will impact the year-end profit. Unsurprisingly, the Fonterra unit prices have been very volatile since the botulism scare and are now testing new yearly lows. This volatility is expected to continue as Fonterra works through the damage caused by the scare.

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Rural News // august 20, 2013

agribusiness 21

Ruataniwha dam plans stirs debate vi vienne haldane

THE PROPOSED Ruataniwha Water Storage Scheme (RWSS) is now one of the most hotly debated topics in Hawkes Bay. If the project goes ahead, the dam, west of Waipawa in Central Hawke’s Bay, will irrigate 20,000-30,000 ha, with huge potential for farming and associated industries. Opinion seems divided between those wanting to forge ahead and those wanting to go slow. This includes a Ngati Kahungunu iwi group saying they have had insufficient time to look at various issues, mainly water quality. Following a meeting in late July, Ngati Kahungunu Inc said it opposed the Ruataniwha Dam project because of “inadequate consultation, selective information release and the failure of the Hawkes Bay Regional Council (HBRC) to recognize the tino rangatiratanga that hapu exercised over river and water bodies”. It has asked the HBRC for a six-month extension to the process to allow for proper consultation with hapu, iwi and the wider community. That request was denied. HBRC chief executive Andrew Newman counters the claim that iwi had been left out of the loop. “Engagement on the RWSS with iwi has been extensive and commenced at the outset of the feasibility assessment process. In particular, HBRC and Hawke’s Bay Regional Investment Company (HBRIC) personnel have worked with the Tamatea Taiwhenua and its associated marae in the Tukituki catchment.” “Over three-and-a half years there had been about 100 specific engagements with various iwi representative groups,” he said, Regarding claims of “selective information distribution”, Newman says that apart from “some very limited, commercially sensitive information”, all relevant information, including consent applica-

fast facts • Dam type: Concrete-faced rock fill dam • Dam height: 83m • Reservoir length: 7km • Storage volume: 90 million m3 • Surface Area: 372ha • Irrigation footprint: 20,000-30,000ha • Area of influence: • Productivity increased for approx. 42,000ha • Potential electricity generation: 6.5 megawatts • Regional economic benefit: 4% GDP increase • 3.5% increase in employment • Improved resilience to drought Estimated cost: $232 million.

water and its huge use of irrigation, I doubt dairying will expand over the plains, in fact, I suspect it will be reduced,” he said. CHB Forest & Bird spokesperson, Dan Elderkamp said the lobby was not against the dam, provided water quality is not compromised. The group was also worried about the monitoring of water quality after the dam is built. “There’s little in the way of proposed regulatory or enforcement measures to deal with any contraventions,” said Elderkamp. Contractors bid-

HBRC chief executive Andrew Newman and water initiatives group manager, Graeme Hansen on a hill overlooking the proposed Ruataniwha Dam site.

ding for the dam project are the French company Bouygues Construction, and the Spanish global infrastructure company Obrascon Huarte Lain (OHL) in a proposed joint

venture with Hawkins Construction. Final costings are due in September, after which an accurate price for water will be available. In March, Hawkes

Bay Regional Investment Company (HBRIC) called for non-binding expressions of interest to gauge farmer commitment to the scheme. So far they have received 48 EOI’s.

Source: HBRC web site.

tion and final documents have been available on the HBRC website. Submissions on the Tuki Tuki Catchment Proposal are now before the Environmental Protection Authority (EPA) board of inquiry. A summary of the 380 submissions received was available on August 16. Further submissions opened on 19 August before being finalised on August 30. The hearing will start mid November and the final decision report will be due in April 2014. Hawkes Bay Regional councillor Tim Gilbertson who has a 500ha mixed sheep, beef and cropping farm near Waipawa said, “If the Ruataniwha Dam goes ahead, I am convinced that in 25 years time we will say, we should have done it 50 years ago. “The fundamentals of this project, both economic and environmental, are spot on. There is nothing that stands out as being a huge impediment.” He adds that some have expressed doubt about farmer uptake, but if farmers don’t sign up for water, the investors won’t invest. “Everyone is saying the ratepayers will lose money; that also looks after itself, because farmers and investors won’t invest in a white elephant.” Regarding the environmental issues, Gilbertson claims that “it’s all going

to be intensive dairy farming” sorted by regulation, science, technology and education. “It’s as if every farmer is waiting to put 4000 cows per square inch and screw up the environment. That’s not true.” He adds that the dam could also provide opportunities to capture the benefits of irrigated land. “A young couple could buy a few acres at Takapau or Ashley Clinton and start growing flowers or vegetables and do really well.” Another Hawkes Bay regional councillor, Liz Remmerswaal, was doubtful about the benefits of the dam and thought the submission process was too short. “It is our role as councillors to listen and there have always been concerns about the speed of this project. I think there has been very little resource information available to the general public.” Farmer and regional councillor Ewan McGregor said that although he thought the HBRC had “worked hard to inform all stakeholders,” more information was required and that would not be available until sometime next year. “There are plusses and minuses to the RWSS. Higher minimum flows and regular flushing will improve the Tukituki River, but more intensive land use will be a negative. “Given the cost of the

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Rural News // August 20, 2013

22 agribusiness

Hort sector aims for $10 billion by 2020 PAM TIPA pamelat@ruralnews.co.nz

COLLABORATION AND consolidation will be the key to horticulture growing from a $3.5 billion industry today to its targeted aim of $10 billion per annum by 2020. David Smith, president of pan-industry organisation United Fresh, told Rural News his organisation will play its part to help coordinate the industry as it moves forward. Started in 1991, United Fresh has 83 members from growers to service providers such as transport operators and crate suppliers to wholesalers and retailers. Growing to $10 billion a year is big target, Smith admits. “But New Zealand is in a unique position: it produces high class fruit and product. Its focus has been on Europe and to a lesser degree America but now it is is very much towards the new developing markets in Asia – places like Indonesia, Philippines, etc. And of course the big growth markets of China and India.” Of the $3.5 billion now, $1 billion comes from kiwifruit, the apple industry is $450m and other bigger players include avocado, and the big vegetables items such as onions and squash to Japan. About $850m is in

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the wholesale value for domestic fruit and vegetables. Kiwifruit are on track to grow from a $1 billion to $3 billion industry especially with the new Gold variety, and the apple industry has big potential, says Smith. It has much invested in intellectual property rights, with new varieties Jazz and Envy apples. Avocadoes are also growing. Those will be key players in hitting the $10 billion mark by 2020. China and India also hold big potential. India currently imposes a 50% duty on a box of apples, but if a free trade agreement is negotiated, exports should grow significantly. As president of United Fresh for five years, Smith’s role is bringing all those groups together. The most important function in helping growth is “to get coordination of all the players, get them into a room together and get their competitor hats outside that room so they cooperate and talk about industry good”. They look at what the industry can do to promote fruit and produce, boost domestic consumption and grow export markets. United Fresh is seeing a consolidation of the New Zealand industry as growing crops becomes more complicated, so farmers become larger in scale.

David Smith

“They are required nowadays to meet high standards of health and safety, traceability in their products – everything United Fresh is involved in right down to the little label that goes on the fruit that identifies it from a block in Hawkes Bay into a supermarket in Europe or the UK. So we have a function right through that process. So more consolidations, farms becoming bigger, more efficiency, more traceability and more health and safety standards, all put us in a good position for the future.” Zespri is obviously a collaborative effort, and while people may see about 50-60 apple exporters in the marketplace, only about six are exporting 80-85% of the crop. With avocadoes there are three-four companies exporting 80% of the crop. There will be more consolidation of packhouses,

more growers coming into cooperatives and more central packhouses and central coolstores. These trends are occurring on both sides of the Tasman. The industry has been looking at seasonal supply patterns, and there’s much emphasis on reducing supply chain costs. “Today we would say there’s no excuse for the average household not to have fresh fruit and produce in their home and in an economic way. There’s so many different ways they can purchase from our members and that’s everything from the large scale supermarket to the smaller retailers right through to the street market to the farmers’ market and we have members who are online sellers.” “There’s a whole raft of different services now available to the consumer in an economic way every day.”

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GETTING YOUNG people to eat more fruit and produce is a major aim of United Fresh’s separate charitable trust, says Smith, who is a trustee. It owns the 5+ a day logo and promotional material and trustees are representatives of the industry. “The charitable trust runs promotional programmes throughout New Zealand but specifically targeted at schools,” he says. “It services about 470-odd schools via the fruit-in-

schools programme. And the Ministry of Health has developed a fruit-in-schools programme designed for low decide schools. “So where children are underprivileged and could be arriving at school hungry they receive a piece of fruit and those deliveries are done every week seven times a week. About 100,000 pieces of fruit go to school children every week in their school programmes.” United Fresh runs those schemes on behalf of the Ministry

of Health. Members and service providers deliver those products to the school. “When it’s in season for an apple or a plum, they will be putting products in school so children get education material to tell them about these products. They also get to experiment with products first hand in their school environment so they get to taste a price of fruit they may not normally. Other imported products go into those programmes as well – bananas or pineapples, etc.”

Rural News // august 20, 2013

agribusiness 23

Sustainability: are we doing enough or just paying it lip service? the farmer to meet sustainable farming goals set out by consumers and regulators also play a key role, he says. He points to potato chips maker Bluebird, which sets a high standard for suppliers. However, only some family farms and corporate farmers, who have the money, can meet those standards. “For most farmers the returns are not enough to effectively deal with sustainability,” he says. Unlike EU farmers, who get subsidies to farm in a sustainable way, New Zealand farmers have to fork out money to set aside land for wildlife and grow trees. “In New Zealand, we don’t have those subsidies, so how do we compete in the sustainability race in the long term?” As part of its sustainable agriculture programme, BASF has launched AgBalance, a scheme that evaluates the holistic sustainability performance of agricultural products or processes in respect of the economy, environment and society. To date, BASF has conducted 15 studies from Brazil to China, measuring and identifying more sustainable processes and techniques in agricultural production. BASF’s guiding principle is ‘You can only manage what you have measured’. “For the prosperity of agriculture in New Zealand, it is fundamental to manage and show progress in its sustainable development” says Hazelwood. One of the major outcomes of the Perspectives for Agriculture Symposium was that sustainability assessment needs common principles in both the agricultural and the food supply sectors, so that the assessment tools the producers and their partners use speak the same language globally. Hazelwood says there will be challenges. “There is still is a big challenge in front of us, in the journey of sustainability of the food supply

chain. Every link in that chain has to understand their role and comply with it. While this is a journey that every country in the

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Mere lip service to sustainability is not in itself sustainable, says chemical company BASF. The company’s New Zealand marketing manager, Fenton Hazelwood, says agriculture must balance productivity with the environment and consumer demand. But sustainability has become “a politically correct throwaway word” and stakeholders have differing views on what it is and how it can be achieved, he says. Earlier this year, BASF organised the Perspectives for Agriculture - Sustainability Symposium in Berlin, which Hazelwood attended. It brought together environmental lobby groups, leading experts from the food industry, farmer organisations, academia, regulators and agribusinesses. In taking this initiative, BASF laid the foundation to bring forward solutions for sustainability assessment, an essential part of the agricultural business. Hazelwood questions “the true meaning” of sustainability: is it just having a clean and green image? Is it just a marketing tool for agribusinesses? In New Zealand, the dairy sector is facing questions over its sustainable farming methods. The industry recently released the ‘Sustainable Dairying: Water Accord’. With Fonterra aiming to have all waterways and streams fenced off on its supplier farms by December this year. Hazelwood acknowledges that the dairy industry is making great gains on sustainability. But he questions whether fencing off productive strips near waterways is just an attempt to satisfy public opinion and send a positive message to the market. “While this is a positive step, is it truly the way forward for farming ensuring our land is available for the next generation? Or are we doing just enough to tick the boxes?” The financial cost to

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Rural News // August 20, 2013

24 opinion editorial

edna

Mismanaging the crisis A CRISIS tests leadership. And if a crisis makes or breaks a leader, Fonterra chief executive Theo Spierings has come out a winner. Unfortunately, Spierings’ performance has been the only bright spot on Fonterra’s dial during the past two weeks. The Dutchman put up a courageous fight in China after the WPC80 crisis broke on August 3, but the damage had been done. The co-op’s handling of the media and information sharing was a disaster. Keeping the chairman John Wilson away from the media for six days is mind-boggling. For six days the co-op’s owners and their chief representative, Wilson, had nothing to say as confused New Zealand mothers grappled with feeding their babies safe infant formula. It’s hard to imagine how $360,000 worth of potentially contaminated whey protein concentrate can snowball into a global crisis, shutting our dairy products out of key markets and inflicting a deep wound on the country’s 100% pure branding. Four inquiries are underway. Let’s hope, we’ll have answers on the five Ws- who, what, why, when and where? More importantly, the inquiries should not only steady the Fonterra ship but help re-open dairy shipping routes to precious markets by assuring consumers our products are safe. For Fonterra, a better crisis management plan and team would be a good start. Spierings’ resignation, as demanded by some media commentators, isn’t the answer. The co-op needs the safe pair of hands Spierings has shown. A successful Fonterra translates into a successful NZ Inc. The Fonterra share unit price has bounced back and the last GDT event recorded only a nominal drop in prices. For the time being the markets aren’t troubled by Fonterra’s botulism scare. However, patience is wearing thin among Chinese authorities. If the Chinese apply the ‘three strikes and you’re out’ rule, then Fonterra is in trouble: Sanlu, DCD and now the WPC80 botulism scare. But Fonterra’s saving grace is that no one has fallen sick – so far. The product recall by affected infant formula and feed companies is almost complete. The bottom line is Fonterra can ill afford another food scare. Spierings has centred his strategy refresh on China and Asian markets. The co-op’s much-heralded launch of its own infant formula brand in China later this year is also up in the air. The co-op is at crossroads. It needs to win back credibility. It is clear Fonterra has not learnt the hard lessons from Sanlu and DCD scandals. This may be its last chance to get it right.

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

the hound Nice metaphor A MATE of the Hound reckons Fonterra’s new non see-through milk bottles were the perfect metaphor for its lessthan-stellar PR performance over the recent whey product botulism issue. Fonterra – rightly – copped plenty of flak about how badly it tried to communicate the issue. Meantime, your old mate’s mate suggests the recently introduced bottles – which keep everything inside in the dark – perfectly sums up the bumbling, stumbling PR effort the co-op has made during this crisis!

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

What Guy?

Utu

Paying twice

No mention

YOUR OLD mate, and others, noticed it was Minister Fix-it (notice how Nova-Pay is no longer making bad headlines), the ubiquitous Steven Joyce, whom PM John Key sent in to to sort out the mess at Fonterra. It was apparent from early-on that Fonterra’s handling of the issue was a disaster and someone had to get things back on track. Clearly, that someone was not the Primary Industries Minister Nathan Guy, whose performance during the recent meat certification issue was viewed as less than convincing.

THE HOUND reckons Labour’s Damien O’Connor has been on a bit of an utu mission over the Fonterra whey contamination scare. He’s wasted no time in trying to exact revenge on Fonterra as well. According to media reports, O’Connor’s Labour colleagues believe Fonterra has treated him arrogantly in the past. However, your old mate reckons O’Connor’s mates should take a look at some of the disparaging comments the West Coast MP has made about Fonterra, its directors and board during the TAF debate – before they complain about the dairy co-op’s treatment of him.

AS A follow-up to last issue’s comments about MIE funding, the Hound is reliably informed the meat reform group has received $36,000 from supporters’ donations along with $20,000 from Beef+Lamb NZ. According to MIE chair Richard Young, “B+L has not funded our endeavours to date but rather supported MIE in the running of our nationwide meetings.” According to your mate this means sheep and beef farmers are paying twice – either through direct donations or levies to Beef+Lamb NZ

HOW IMPORTANT is agriculture and farming to John Key and his government? Not very, judging by his address to the recent National Party annual conference. A mate of the Hound’s searched the PM’s speech for the words “agriculture” “farming” “farm” and “dairy” and drew a blank. Apparently, Key didn’t mention those words once; not even dairy. Could it be that in the wake of the Fonterra whey protein contamination scare the PM’s trying to distance himself from the debacle? The Hound reckons all it shows is just how unimportant the rural vote is when it comes to winning seats in Wellington.

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

Rural News // august 20, 2013

opinion 25

AgResearch changes will have big impact on NZ’s economy DISCUSSION ON the potential impacts of the restructuring at AgResearch were wiped by Fonterra’s news this month – yet for the rural economy (which is, of course, New Zealand’s economy), the restructuring could have just as dire and long term consequences. What has been announced to AgResearch staff effectively pulls capability into Palmerston North and Lincoln, with a focus on food ( joining Fonterra and Massey University’s Riddet Institute) and dairy (supporting Dr Andy West’s vision for Lincoln University), respectively.

Grassland cutting edge research being explored in the regions by MAF district scientists and then explained to farmers by the MAF farm advisors – the system that gave New

requirements. Since the 1980s regional field stations have been closing down, and potential to test cultivars, breeds and systems in the area of use has been decreasing. The latest announcement is the last straw for CRI research in anything but the bottom half of the North Island and the middle of the South Island. Rejuvenation must come through the levy

Farm management consultants also have a role as they are the professionals who can integrate the research into the bottom line of the individual farm business. The new plan means 280 roles relocating. AgResearch has stated “although this has an impact for the local Hamilton and Dunedin economies, the net overall gain for New Zealand will be far greater, by delivering more quality science as a result of co-location and increased collaboration”. But the loss of experience and knowledge could be huge. When Wallaceville, in Upper Hutt, and Hurley Pasture Research Centre, in the UK, closed, 90% of people did not relocate. Some retired early, others found jobs in the area or became selfemployed. They chose not to move because of partners in work, children in schools or parents in need… and community involvement, lifestyle block investment – all the factors that affect real people. A person not moving means, sadly, that their research will not continue as their funding will be moved to the new centres. This is the long term blow for New Zealand agriculture. The regions are already minimally served with research that meets climate, soils and systems

bodies. These are farmerfunded and farmers can therefore make a statement about what they need. Translation of research done by the CRIs into the regions would be an appropriate use of funds but might require a reconsideration of current levy rates. New levyfunded research could involve employing some of the AgResearch ‘roles’ that aren’t intending to move. And it would keep those people in research – the area in which they have experience and knowledge. DairyNZ already has systems trials being undertaken near Hamilton; and Poukawa in Hawke’s Bay runs research for Beef+Lamb NZ. These could be the models for other regions. Technology transfer expertise might be provided on-site with open days, seminars and conferences, like the focus farm concept, and the way the Lincoln Dairy Model Farm was established. Farm management consultants also have a role as they are the professionals who can integrate the research into the bottom line of the individual farm business. What might be developing is akin to the DSIR

Zealand leadership in agriculture production. The 21 years since that system was replaced have been fraught with reorganisations, all of which have done considerable damage to engage-

ment and recruitment into science, yet never has the world needed great agricultural science more. It also needs great farmers and, of course, food process engineers. The Fon-

terra case makes the point. The role relocation announced by AgResearch is actually about people. Will what is being proposed serve the needs of agricultural productivity

in the future? Rural people should have their say, and the levy bodies are a starting point. • Jacqueline Rowarth is Professor of Agribusiness, The University of Waikato.

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Rural News // August 20, 2013

26 opinion

Farewell to meat maestro Owen Poole ALLIANCE SUPPLIER meetings were always entertaining when orchestrated by Owen Poole. He leaves Alliance next month having spent nearly 20 years as chief operating officer, chief executive

and, finally, chairman. It must be at least 20 years ago that I first became aware of Poole, who had just taken over the position of chief operating officer. This was at a supplier meeting at Milton

where he rescued the then Alliance chairman John Falconer from the verbal ravages of a new boy on the block – Gerry Eckhoff. Alliance, like most meat processors in the early 1990s, was struggling

financially. Falconer had resigned his position but had been re-elected. Eckhoff, like so many other suppliers, was incensed and demanded Falconer do the decent thing and ‘fall on his sword.’

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Owen Poole

Tempers became tense with neither party prepared to give way; then Poole stepped in. He handled it well, explaining that everyone had played by the rules. Looking back I don’t think Gerry was among the believers. Since then, one of the highlights of the year has been the Alliance suppliers’ meetings where Poole had a chance to show how his droll, laconic humour could defuse the most tricky occasions. He had been fleetingly compared with long time, former Silver Fern Farms chief executive Stuart Barnett. Poole especially admired Barnett’s handling of the media, which seemed to be – tell them nothing. Owen Poole (66) spent a lifetime in the meat processing industry. At meetings he was quick on his feet because he knew the answers. Suppliers looked forward to question time as this was where Poole showed off his debating skills. He was at his best when he had an antagonist in the audience. I remember when such a person was in the front row, sporting a long beard that made him resemble a Taliban escapee. The guy kept on asking basically the same question. In the end, Poole got off the podium and eyeballed the prophet. The talking ended. I forget the question and the answer, but do remember it was great theatre. Poole was always up with the times when it came to dressing for the occasion – not easy when the audience was farmers. He appeared to favour a double-breasted charcoal jacket, which for a while it became his trademark. Then there was the meeting when he turned up wearing a long jacket which gave his a Mark Twain riverboat-gambler

look, or was that Johnny Cash? I have to concede there has been a mellowing in the last year or two, still snappy, but just lacking that snazzy look. The show was recognised as well worth the effort of turning up. Even the standing room was taken. However it took its toll on the lead performer. Poole always needed a quick cigarette, presumably to steady his nerves, when meetings were over. The farmer meetings always had back-up with a handful of Alliance directors or senior staff on call. Chairman for much of the Poole years was John Turner who, like Poole, was a passionate co-operative man. Both had experienced working within the corporate system. They said the co-operative was like one big family, where the producer was the first to be looked after. By comparison the corporation looked after its shareholder first. It was goosebump stuff and we all put our hands up showing support for co-operatives. And of course, it came to pass that Alliance shareholders voted to remain part of the co-operative family. An increasingly essential member of the family that Poole took under his wing was Grant Cuff –who took over the chief executive role from him. In earlier times, Cuff was in the shadow of his master. Then as the apprenticeship ended he shared the more exciting bits. I’m personally going to miss those supplier meetings with Owen Poole in control. It was there I first heard the expression ‘raison d’etre’, which I later found out means ‘reason for being.’ And somehow I like to apply it to Owen’s career in the meat industry.

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

Rural News // august 20, 2013

opinion 27 Council amalgamations not good for rural New zealand

ag twits Rural News’ irreverent and hypothetical look at what’s happening in the farming world Top Bleats view all garyromanofonterra: Hey @theofonterra just want to let you know that everything is all great in the manufacturing side of the business. If anything worrying pops up I’ll let you know – in about 12-18 months. #actionman theofonterra@garyromano: You know that idea of mine about cutting $60m of costs out of the business; that didn’t included laying off the cleaners at Hautapu did it? #couldbeaproblem jwilsonfonterra: Gee I love this job: just announced a 50% increase in payout., farmers love me, the Government loves me, the media loves me, even Lachie Mackenzie loves me. What could go wrong? #temptingfate garyromanofonterra: Ummm @theofonterra, @jwilsonfonterra and @prfonterra Houston – I mean – Auckland, we may have a problem! #brownstuffhittingfan fonterrapr: No worries team here’s what we do: @theofonterra you bugger off to China for the week, @garyromano you stay here and front the media – you’ll be great and @ jwilsonfonterra you stay right out of it and say nothing! #prgeniuses ianbrownshc: Can I just say to @jwilsonfonterra, @theofonterra and @prfonterra what a great job you’re all doing in managing this issue and how much farmers appreciate and understand that I too want to be a Fonterra director one day. #goodlapdog jkeypm: Hey @sjoyceministerofeverything you know how you thought I’d given you a rough one when the Novapay issue hit the headlines a few months back, well... #youaintseennothingyet damienoconnormp: Bloody hell! I knew TAF was a bad idea, but not even did I think it stood for killing innocent babies. #dreamcometrue thatguynathan: Hey @jkeypm anything you want me to do? I am ready, willing and able to help out here. Hello? John? Are you there? Prime Minister? #nooneisansweringthephone johnpennosynlait: I got to say; it’s at times like this I am really, really, really pleased that I work for Synlait and not Fonterra! #thankgod jwilsonfonterra@thatguynathan: Hey Nath, do you get the feeling that when they led us into this room for our ‘special’ one-onone meeting; they deliberately locked the door so we could not get out? #outofharmsway

I ENDORSE Warren Judd’s argument (Rural News August 6) against amalgamation of local bodies, which is to the detriment of rural dwellers. Auckland has become New Zealand in the eyes of central Government and other areas are trying to get bigger so as to attract more dollars to their city centres. Greater Wellington chairman Fran Wilde wants to swallow up the Wairarapa into her holding, as well as Upper Hutt, Lower Hutt and Porirua. Another group wants Napier and Hastings to take over Central Hawkes Bay and Tararua District Councils creating a long, thin council with little

community of interest. Manawatu, Horowhenua and Tararua District Councils have had talks with Palmerston North City Council. In every case, these amalgamation talks have been promoted by the biggest of the groups, and they are the ones who will have the most say as to where the money is spent if and when amalgamation takes place, as they will have the largest voter of numbers and councillors. Central government is encouraging these talks: fewer councils equal fewer mayors to deal with. However, farmers and rural areas will be the losers: poorer roading (it’s happening now) and even

foreseeable future – roads of national significance had to come first. So Ridge Road Central, Mangamutu, Pahiatua, remains much as it was when we rode ponies three miles to Mangamutu School 70 years ago; the same, but different, because now there are 10 houses on gravel and faster cars commuting the five miles to Pahiatua. Ponies and bicycles are unsafe here. Cycle ways are a city privilege. Our high rates help pay for them. But I must not complain. Our road hasn’t quite become userpays, as has happened in Tiraumea where the farmer has been asked to

maintain his stretch of the road: the council has opted out. And the council told us we can still get our road tarsealed if we pay half the cost. Aren’t we lucky? Protesting to Parliament does little good. One member (John Hayes) services the Wairarapa electorate that stretches from Lake Ferry in the south to just south of Hastings City. It is a huge electorate, with miles and miles of roading. Perhaps we should petition our Minister of Primary Industries, Nathan Guy, but he’s got his hands full…. and is only Number 16 in the cabinet line-up…. Phil Cotter Pahiatua (abridged, editor)

want GE. Beverely Gott Kamo, Whangarei Editor’s note: Ms Gott may not like or approve of GE, but that does not entitle her to censure this newspaper – or any other media outlet

– from running genuine news articles on the subject. Conversely, if she was pro-GE – neither would it be acceptable for her to condemn us for running news articles critical of the technology.

I don’t like it so don’t run it! AS AN ex-pat Englishwoman, still in touch with farming and horticultural colleagues in Britain, I am not impressed with dubious pro-GE propaganda in Rural News July 2 –‘UK farmers back GM push’. UK Environment Minister Owen Paterson’s pro-GE speech has been widely attacked in the UK and his rhetoric is unlikely to convert the sceptical British public or persuade a majority of EU governments finally to allow more modified crops to be grown in Europe Genetic engineering, strongly rejected by discerning consumers, has so far done little to increase yields, while more conventional techniques have achieved stunning increases, at times

quadrupling production. Indeed, just a month ago a comparative study from New Zealand’s University of Canterbury/Centre for Integrated Research in Biosafety found that “the combination of non-GM seed and management practices used by western Europe is increasing corn yields faster than the use of the GM-led package chosen by the US”. Here in Northland every single council from south Auckland to Cape Reinga is rejecting outdoor use of GMOs, due to the risks to our biosecurity, unique biodiversity, existing non-GM primary producers and economy. Good on our councils for acting on their duty of care and working to create an additional tier

of protection against dodgy GE experiments or releases rubberstamped in Wellington by bureaucrats who don’t give a stuff about our farmers’ access to premiums and key markets – who don’t

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less political clout than we have now, rural mail, telecommunications, etc. At the time Brian Elwood gained his knighthood, by forcing often unwilling councils to form larger entities, my road was due to be tarsealed. After Tararua District Council came into being, and Pahiatua shifted its office to Dannevirke, that sealing was postponed. Seventeen years later, my road is still unsealed. We came close in 2009, but then the ‘Minister of Everything’, Steven Joyce, said there should be no tarseal extensions in rural areas for three years, then in 2012 no tarseal extensions for the

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28 management

The more frequently you use a product, the greater the risk of resistance, Syngenta’s Jason Sabeeney (inset) warned.

Growers get herbicide resistance rev-up PGG Wrightson Grain held a winter agronomy conference earlier this month with over 100 delegates attending the afternoon and evening’s proceedings at Methven, Canterbury. Andrew Swallow reports. land isn’t nearly as severe, there are already at least 14 weeds which have become resistant to herbicides from one or more of six modes of action. Globally 217 weed species are known to have developed resistance. “It’s a major threat to the production and sustainability of grain productions systems.” While farm-level biosecurity is important to avoid importing a problem, most cases • Know the mode of action (MOA) groups. of resistance are the • Rotate MOAs within and across years. result of herbicide • Reduce weed pressure with cultural controls. practice on the farm • Use robust rates of herbicide. where it’s found, • Check chemical control survivors for resistance. Sabeeney stressed. • Kill survivors before seed is set. “This is not some• Keep detailed, accurate records. thing the neighbour gives you.” Diversity of cropping and consolutions development manager trols is the key to reducing the selecJason Sabeeney told delegates. “The good news is that manage- tion pressure on weed populations ment practices and strategies do have to develop resistance, and, should a big bearing on how fast it happens.” any weeds survive a herbicide appliSabeeney highlighted the dire situ- cation, preventing them from setting ation many Australian grain growers seed. “That’s the mistake the Austraface with the annual ryegrass Lolium lian farmers made.” A tell-tale sign that a weed is resisrigidum which is now resistant to six or seven different mode of action tant to a herbicide is if it survives when near neighbours, of the same (MOA) herbicides. “The only ones it’s not resistant to species, are dead. Leave that resisnow are the modes of action that were tant weed to set seed, and you have a patch of weeds resistant to that parnever active on annual ryegrasses!” It’s forced growers into extreme ticular herbicide mode of action for mechanical measures to control the years to come. “No matter how long weed, such as a A$150,000 machine you leave the herbicide out, as soon that’s towed behind the header to as you go back to using that group catch the chaff and grind it so every of chemistry, [resistance] will come back very quickly.” weed seed is destroyed. Machinery, especially headers, While the situation in New ZeaMORE AND more weed populations resistant to one or more herbicides will be found in New Zealand, growers and agronomists gathered for PGG Wrightson Grain’s winter conference were warned. “If you use or recommend the use of herbicides you will get herbicide resistance: it’s inevitable,” Syngenta

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and livestock accelerate the spread of a patch across a paddock, farm or even district. Despite billions of dollars spent by the likes of Syngenta looking for herbicides with new modes of action, none have been found since the 1980s so a new product to get growers with resistant weed populations ‘out of jail’ isn’t likely, Sabeeney warned. Typically it’s the best farmers in a district who find resistant weed populations first, because they are the ones to have used herbicides most heavily, hence exerted the highest selection pressure, he added. “Just because you’ve got herbicide resistance doesn’t mean you’re a bad farmer: it’s how you deal with it that determines whether you’re a good farmer or not.” Knowing which mode of action or ‘group’ herbicides belong to is essential to rotate the types of herbicide used, not just in one crop, but across all crops grown. That rotation strategy should dovetail with cultural controls such as high seed rates to suppress weeds, burning and/or ploughing. Asked about genetically engineered crops, Sabeeney said they could be very useful, if used sensibly, but they hadn’t been in the United States. “The US now has 25 million ha with glyphosate resistant weeds. That’s the size of the Australian [cereal] crop area. I’m not saying they aren’t good: they were too easy…. Now they’ve got workers hand-pulling weeds to make their systems sustainable.”

Rural News // august 20, 2013

management 29

Cultivar advances and agronomy PGW GRAIN reckons a new wheat, KWM31, could replace milling stalwart Morph. Agronomist Bronwyn Charteris told the Methven conference KWM31 has no vernalisation requirement, hence has a wide drilling window, and produces consistently high yields with a good disease resistance profile, thousand grain weight and specific weight. “We think this variety has the potential to replace Sage and Morph,” she said, running delegates through PGW’s stable of wheat and barley varieties. KWM31’s irrigated and unirrigated yields rate at 108% and 111% of control means, compared to Morph’s 106 and 105% respectively. A limited amount of seed will be available in 2014. Meanwhile in the spring barleys, Charteris says Garner looks a good replacement for feed cultivar County. Her cereal breeding colleague Steve Shorter

outlined to delegates just how much work goes into bringing a new cereal cultivar to market. “You can get from first cross to a variety in as little as seven years but that’s exceptional: typically it’s more like 10 years.” Huge numbers of first crosses are made from which breeders attempt to identify progeny with potential advantages.

opposed to agronomy, of 0.6% in barley compared to 0.4% in wheat. “We’ve now got lines [of wheat] specifically adapted to New Zealand… this is where we think the next big advance in wheats will come from,” said Shorter. Tom Sherratt, a cereal agronomist, noted how UK wheat yields have plateaued. “The challenge to you [growers] and to us agronomists is we don’t want to hit a similar yield plateau here.” Tailoring seed rates to variety and drilling date, nitrogen to soil availability, and pesticides to seasonal pressures and cultivar resistance is the key to keep pushing the agronomic contribution to yield, alongside the plant breeding contribution, forward, he says. Precision agriculture specialist Jemma Mackenzie, of Agri Optics, outlined how agronomy can now be tuned not just to the cultivar and Spot spraying’s just one of many precision paddock, but to the variagronomy approaches. ations in the crop and/or

“Most of the combinations turn out worse than you started with. It’s only that one in one thousand that offers something better.” In barley, what grows well in Europe generally does well here but European wheats don’t adapt as readily to New Zealand’s subtly different growing conditions. It’s a factor in average annual yield gains attributable to breeding, as

underlying soil across a paddock. “Variable rate application is really what precision agriculture is about,” she stressed. For example, variable rate liming to level pH following grid soil sampling could save $90/ha compared to a traditional one paddock, one rate approach. Besides product savings, “it’s about evening up that pH variability so you’re not going to suffer yield loss as well.” Variable rate irrigation avoids overand under-watering, with similar cost savings and yield gains. With sprays and fertilisers, on-themove sensing of crop colour can be used to tune inputs. The final piece in the jigsaw is managing the mass of data today’s technology can collect on crop and soil status. “Data management is really about tying it all together.” Mackenzie recommended growers start with the “low hanging fruit” when moving into precision agriculture. “Whether it be fertiliser costs or water costs, it’s certainly not hard to integrate these things into your New Zealand farming system. And smart farming systems is the way New Zealand needs to head – is heading – whether we like it not.”

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30 management

Albrecht’s theory is pseudo-science d oug E dmea d es

I write in support of Prof Rowarth (Rural News August 6 2013) – the Albrecht theory is pseudoscience, meaning false

science, meaning not supported by evidence. It results in incorrect fertiliser advice. For example on New Zealand soils the Albrecht approach almost always results in recom-

mendations for calcium. Yet calcium deficiency is unknown in New Zealand, a consequence of our use of lime (40% calcium) and super (20% calcium). Also it must be noted

that Albrecht’s ratio theory only ever considered three nutrients: the cations, calcium, potassium and magnesium (Sodium is not an essential plant nutrient). Your

correspondent Steve Mackenzie refers to the “correct ratios for cations, anions and trace elements”. Albrecht’s system does not and never did extend to anions and trace

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elements. Mr MacKenzie suggests that the using the Albrecht’s ratio theory eliminates the need for “pesticides, herbicides, antibiotic, and in human health, medicines and surgery”. He suggests further that problems like PSA in Kiwifruit and clover root weevil can be solved using BSCR” Albrecht’s theory. If it were only true! Mr Robin Boom wants a dollar each way. He suggests that calcium and magnesium ratios are important for legumes. Not so according to my own research. He suggests field trials are required. There is a large body of scientific research showing that the Albrecht theory does not work – why now throw good research dollars at a falsi-

fied theory? It is a bit like suggesting we need more research to prove the earth is not flat. Professor Rowarth is quite right to remind the public of this flawed theory. As Robert Park, an American scientist, put it: ‘Those who are fortunate enough to have chosen science as a career have an obligation to inform the public about voodoo science’. • Dr Doug Edmeades is managing director of agKnowledge and says readers keen to find out more should go to agKnowledge’s Fertiliser Review publications No 4 & No 26, at www. agknowledge/publications/ Fertiliser or contact him: e-mail doug.edmeades@ agknowledge.co.nz or 07 834 0316

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ACT NOW to avoid pasture quality going to pot later, says Dairy NZ, which has been fielding reports of Red Bandlength grass in Waikato, Taranaki, and even Canterbury. Options include bringing dry cows home sooner, a faster grazing rotation, cutting supplement and nitrogen, or closing paddocks for silage. Milking cows will struggle to get through pasture over 3200kgDM/ha so allocate such paddocks to remaining dry cows, or leave them out of the rotation altogether, says regional teams manager, Craig McBeth. “It is better to keep 90% of the farm in good order than see the whole farm become affected.” Rotations faster than 40 days are still risky as temperatures remain low enough to limit new leaf emergence. However, grass quality changes slowly at this time of year so silaging can wait for suitable weather, he adds. “Silage inoculants should be considered.” Pasture monitoring and plotting a feed wedge will help flag a looming surplus early so plans can be made to deal with it. See www.dairynz.co.nz/surplus for more.

CPT results out CENTRAL PROGENY Test (CPT) results for rams entered into the evaluation scheme last year are now available at www.beeflambnz.com/cpt Beef + Lamb New Zealand genetics manager Mark Young says they’re noteworthy for the growth in use of SIL-ACE, Sheep Improvement’s Advanced Central Evaluation system. “Nearly half the active SIL flocks are now using SILACE – up 9% on last year – as ram breeders recognise the power and objectivity of the evaluation. With this level of usage, we estimate that 60-65% of rams used on New Zealand farms come from SIL-ACE flocks.”

Rural News // august 20, 2013

management 31

Two ways to tackling triplets A N D REW SWA LLOW andrews@ruralnews.co.nz

TRIPLETS: AVOID them or make the most of them? Attendees at a recent Beef+Lamb NZ winter workshop in South Canterbury heard from two leading farmers deploying different strategies in managing high lambing percentages. Matt and Lynley Wyeth, Wairarapa, explained how they’re housing tripletbearing ewes to boost lamb survival and raising every orphan lamb they can. Meanwhile local B+LNZ demonstration farmers Warren and Andrea Leslie’s aim is to have every ewe producing twins, but no more. “To me anything is possible and we should never say ‘never’,” commented consultant and facilitator of the Leslies’ demonstration farm project, Nicky Hyslop, at the workshop. To that end they now only use rams that were twins out of ewes that were also twins, and have split their 3000 headwaters ewes into an ‘A flock’ of

repeatedly twinning ewes, and a ‘B flock’ of single and triplet bearers that go to terminal sires. “It’s actually about chasing the dollars in numbers of lambs weaned per ewe mated. If we’re fortunate enough to hit that ‘BHAG’ (big hairy audacious goal) of 200% that would be $144 per ewe, compared to a 10-year average of $111/ewe… over 3200 ewes that’s $105,000,” noted Hyslop. With the demonstration farm project only 18 months old it’s a case of ‘watch this space’ for results, but in the Wairarapa the Wyeth’s already have runs on the board, and dollars in the bank, from their initiative to capitalise on triplets. “Our target is to raise triplet survival from 180% (as % of scanning) to 270% out of a possible 300%,” Matt told the workshop. Last spring they put 400 ewes through customised pens in the covered yards of their woolshed, bringing them in as three batches: early, mid and late lambers, as identified by scanning.

Enthusiasts: Matt and Lynlee Wyeth at Wanaka A&P earlier this year.

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The Wyeths’ lambing shed manager Ellie Meadows: “the person that makes or breaks it.”

Prior to housing ewes were in “lockdown” for a week in the paddock to condition them to their indoor feed of nuts and lucerne hay. “It also makes the shed a lot cleaner.” Hurdles divide the woolshed pens so 20-30 ewes share an area until they start lambing. Once a ewe drops its lambs, it’s moved to an individual pen for about six hours to ensure all lambs get a feed of colostrum, then they’re moved to a “mixing pen” with five or six other mums for a few hours to reinforce the maternal bond, then they’re out to the paddocks. “We’ll probably increase that time in the mixing pen this year.” Another tweak will be using a trailer to take the mums and lambs out to the most sheltered paddocks around the farm, rather than just those closest to the shed. “This year we plan to do 1200 ewes in two sheds.” Last spring triplet-bearing housed two-tooths had a lambing percentage at docking of 262%, or 287% when 56 orphan lambs were added in. Including

quads and quintuplets total lamb mortality was 9.4%. Meanwhile triplet-bearing mixed age ewes docked 268% or 283% with 17 orphans and 13% mortality. A control mob of outdoor tripletbearing ewes docked 220%. “But that was really good. Our five year average [from triplets] is 180%.... and there are only so many really sheltered paddocks.” Wyeth notes the best outdoor triplet mob was in a sheltered gully that he “turned a blind eye to.” “We do a lot by binoculars instead of going in and

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moving things around.” All up, he calculates last year’s indoor lambing cost $16,000, including meal, labour and setting up the shed. Valuing the extra lambs at $60/head at weaning, and grass saved at $1848, total extra income was $24,765, a margin of $8719. It was more labour intensive than expected, with someone in the shed almost constantly from 6am to 9pm, for 60 days. But considering for sheep farmers lambing is equivalent to harvest time in other sectors, those hours are simply to be expected if you want to achieve high levels of productivity, he adds.

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32 management

‘Sit’ and ‘walk’ key commands Training days coming up

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THE MOST important command for any working dog is stop. A dog chasing an animal has a natural instinct to run it into the ground then go for the jugular. When we need them to herd stock for us that is the last thing we want. We have to train dogs to stop. It isn’t hard but it

requires time, time that is well spent. I teach the stop command with two different exercises. Your dog needs to walk on a lead, at your heels; not in front, nor lagging behind, and not pulling. Use a stick, over a metre long, to guide your dog into position. If he goes to

walk in front, wave it just in front of his nose to keep him back; you may need to give a light tap on his nose. Say ‘behind’ as you correct him; this is teaching him that ‘behind’ is beside you. Once he is walking well at heel you can start teaching his stop command. The command should be short

Don’t let him look at you, or he won’t keep his eye on stock when working either.

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– sit, stand, or whistle teet, teew. I like my dogs to stand upright on their feet when they stop, but some dogs naturally prefer to sit or lie down. Teach what you prefer; the main thing is that they stop and are stationary. ‘Walk’ is a useful command to get your dog moving from a stop. Teach it in with ‘sit’. Walk your dog on a short lead, close to you. As you start to walk forward say ‘walk’. Don’t keep saying it as you are walking; only say it when you begin to move. Walk about ten paces and when you stop say ‘sit’. Wait several seconds, so stopping registers in your dog’s brain; say ‘walk’ as you both begin to walk again. Repeat all several times, and regularly over a number of days. You will know your dog grasps the words with the actions, and is learning, by giving a simple test. Walk slowly and say ‘sit’, if he stops before you, he understands; say ‘walk’ and if he starts moving before you, he understands. If not, he needs more lessons. Second lesson: attach a long, thin lead of over 5m to the collar. Give the

‘sit’ command and rub the dog’s back lightly with the stick. Don’t keep saying ‘sit’; only say it if he moves. Only rub him when he is standing still – it is the reward for doing as you asked. Move away a foot or two; if he tries to follow ‘sit’. Jerk the lead sharply or use your hand as a barrier to stop him. As soon as he stops, reward him by rubbing his back. Continue to rub him, and move around; stand behind him, either side, and in front of him. Your dog should stand relaxed no matter where you are and not turn to look at you. When he is working stock he should be facing them not you, so teach it now. If he turns to look at you gently use your stick to straighten his head. Each time he turns, stop rubbing and straighten his head; when he stands square, rub with your stick. Be consistent with everything you do, he won’t learn if you give mixed messages. Have your voice quiet, with an air of authority. Be patient, firm but kind and your dog will gradually learn what you are teaching him. Remember he hasn’t a clue what you are trying to do or why - English is a foreign language to dogs. • Anna Holland is teaching people dog training. For more information www. annaholland.co.nz or Ph 07) 217 0101 or annaholland@xtra.co.nz

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THE BRITISH Veterinary Association has slammed cattle showmen’s attempts to enhance udder appearance by teat tampering following suspected cases at the Great Yorkshire Show. “We must all pull together to stamp out the appalling behaviour of a few exhibitors who are tempted to compromise the welfare of their animals in the show ring,” says BVA president Peter Jones. “Tampering to enhance cows’ udders is totally unacceptable on animal welfare grounds.” The BVA has sent all show secretaries a copy of the Association of Show and Agricultural Organisations (ASAO) Animal Welfare Plan in light of the Yorkshire cases. “We are very proud to have facilitated and supported the welfare plan and feel that this practical approach will have a positive effect on show animal welfare,” says Jones.

Rural News // august 20, 2013

animal health 33 WHAT CAN HAPPEN

ON YOUR FARM

Post-mortem: Julie Everett-Hincks demonstrates.

A N D REW SWA L LOW andrews@ruralnews.co.nz

rates start to mount. “A 3.5kg lamb has a 10% lower chance of survival than a 4.5kg one.” Weighing a few lambs should be the first step in identifying causes of losses, even if a full post mortem isn’t carried out, she suggests. A look at the feet will tell whether

LOSING TOO many lambs at birth? If so, a likely cause is the body condition score (BCS) of your ewes is less than ideal. And it’s not just because low-condition ewes drop smaller lambs and have less milk: they’re often dopier too, reducing mothering ability, Agresearch’s Julie EverettHincks, a specialist in lamb mortality and survival, told a recent Beef + Lamb New Zealand ‘Farming for Profit’ workshop at Pleasant Point, South Canterbury. “Ewes that are losing condition are losing body fat. In extreme cases that’s seen as pregnancy toxaemia (sleepy sickness) but at a subclinical level they are dopier,” she explained. And while many will blame lamb losses on bad weather at the time they drop, it is weather in the weeks and days leading up to birth which has Weigh-in: size matters when it the greatest affect on survival. comes to diagnosing deaths. “If the ewes are in negative energy balance a lot of lambs will the lamb ever walked or not. The next be found dead. That’s why I question step for an on-farm post-mortem is to pre-lamb shearing,” commented slice the lamb open from the bottom lip, down its neck and through the Everett-Hincks. Her research has shown the opti- bottom of its rib cage to reveal the mum weight for lambs at birth is 5kg. internal organs. If the thyroid glands’ weight “That’s 2kg more than it was 30 years divided by the lambs’ weight is equal ago.” Lighter, or heavier, and mortality or greater than 0.4, that’s a sign iodine

is deficient. “If they are, they can’t cope with being cold.” A look at the lungs will tell if it breathed: spongy pink means it did, firmer dark crimson means it didn’t. If in doubt drop them in some water and see if they float. If they don’t, the lamb never breathed. Evidence of tissue degradation points to a still birth, while bruising (oedema), including jellylike fluid under the chin, indicates a difficult, probably prolonged, birth. Similarly a ruptured liver. Contrary to intuition, it is the smaller, lighter triplet or twin lambs that most often show oedema. “The problem is two try to come out at the same time. At optimum birthweights only one lamb can get down the birth canal.” No fat reserves round the kidneys show the lamb died of starvation. If it died of something else, the amount of fat is an indication of ewe nutrition. “In some cases you can’t even see the [lambs’] kidneys, there’s so much fat.” Another indication of whether it fed or not are white lines – lacteals – running away from the guts. “That’s actually milk going into the bloodstream.” Lesions on the liver and/or around the naval are a sign of infection as cause of death.

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Lambing losses and body condition link

Rural News // August 20, 2013

34 animal health

TB check bulls before moving HERDOWNERS SHOULD ensure the service bulls leased this season are tested for bovine tuberculosis (TB) before allowing them near their stock, says TBfree New Zealand. It’s warning comes as it continues to investigate the causes of new cases of the disease discovered on six dairy farms in Taranaki, and two in South Canterbury, since the New Year. “Protecting the pastoral production sector from TB requires constant vigilance, especially when

bringing new animals, such as service bulls, onto a property,” says TBfree’s national disease manager, Kevin Crews. Crews says the majority of cattle and deer herd infections can be traced back to infected possums in TB risk areas, but stock movement-related infections still occur. Tests of wildlife around the two clusters of affected farms in Taranaki came back free of TB suggesting a movement related infections there,

Clarification TBfree New Zealand says the reason it refuses to release numbers of animals involved in on-farm cases of the disease, such as those outlined in Rural News August 6, p33, is on the grounds of privacy.

and while wildlife test results from the Rangitata area in South Canterbury haven’t yet been reported, Rural News understands stock movement is suspected as the infection route there too. “Don’t be complacent and don’t think that

TB is not out there. Make sure you do your checks and you will know you have done everything you can to prevent TB from infecting your herd,” says Crews. Commercial bull lessors should ideally organise a TB test for all bulls before marketing and leasing them to herdowners, so as many animals as possible can be tested in one go. There is no fee to TB test service bulls and it gives the receiving herdowner some peace of mind that the leased animal is

Service bulls should be tested before movement, says TBfree in the wake of recent cases.

clear of the disease, says TBfree. If there is any doubt around a bull’s TB status, herdowners should contact TBfree on 0800 482 4636 to find out if a recent test has been completed, book a test and learn

about the animal’s disease history. It will advise if the bull has resided in a Movement Control Area, where all animals are legally required to be TB tested at least 60 days prior to being moved.

TBfree’s also reminding herdowners of their NAIT obligations during calving. Registering calves at farm of birth enables lifetime traceability of the animals, and legally they must be tagged within six months of birth.

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NORTHLAND REGIONAL Council and TBfree last week issued a joint warning that introducing wild pigs and deer into the region is illegal. “It is an offence under council’s Regional Pest Management Rules to release wild pigs and deer,” says NRC biosecurity senior programme manager Don McKenzie. “The majority of hunters are responsible and follow the rules but a minority

A TB infected pig.

are wrecking their own sport as a result of their illegal actions. Where we know of illegal pig liberations, or if we receive complaints from land-

owners, we will follow up with the aim of reducing wild animal populations in the area and prosecuting offenders.” TBfree New Zealand

national disease manager Kevin Crews says the beef, dairy and deer sectors are still vulnerable to bovine TB and illegal release of pigs into the wild is an unacceptable risk. Farmers using open offal pits to dispose of stock should do their bit by preventing wild animal access to pits with fencing and keeping wild pig populations low in neighbouring areas, the organisations add.

Rural News // august 20, 2013

animal health 35

Triplet ewes can be grass only A N D REW SWA LLOW andrews@ruralnews.co.nz

CHECKING EWE body condition coming out of winter is a good way to check on winter feeding practice, Agresearch lamb survival specialist Julie Everett-Hincks told a recent Beef + Lamb New Zealand workshop. “It lets us know if we’ve got our feeding right. If ewes are in poor condition it means they’re just not getting enough feed.” But contrary to some views, she says even triplet-bearing ewes can get enough feed from pasture alone, as evidenced by a trial at Landcorp’s Mararoa Station, in the Te Anua Basin, Southland. With about 3500 triplet-bearing ewes in a flock of 17,000, farm managers Tim and Trish Smith compared performance of 500 triplet ewes set stocked at 8.5 ewes/ha, the same as twin-bearing ewes, and a mob of triplet ewes stocked at 6.5 ewes/ha. Between mating and weaning, the mob stocked at 6.5/ha had dropped 0.1 condition score, from 3.0 to 2.9 on average, while the mob managed as twinbearing ewes dropped to 2.6. There was little difference in feed allocation from mating to scanning but it was gradually increased from scanning to lambing. Over that period the ewes stocked at 6.5/ha ate just 7kg more drymatter but come weaning they produced 3.5kg/ ewe more lamb “That’s the best return on feed you’re ever going to get!” Everett-Hincks stresses the role maintaining ewe body condition played in that result, and indeed

does in many successes or failures at lambing elsewhere. “You need to maintain body condition score all the way through the year: that’s the most cost effective approach with our high producing ewes.” Smith, who was at the South Canterbury workshop, commented that their trial showed tripletbearing ewes can get all they need by eating 3kg of high quality pasture drymatter. “Some people say they can’t eat enough but to my mind that’s a copout,” he commented. “We find they can.” The key to that is keeping plenty of pasture in front of the ewes: “at least 1500kgDM/ha,” he says. The key is to build feed allocation steadily during pregnancy to avoid ewes “blowing out”. Smith advocated four-day shifts. “That way they eat all day and don’t gorge themselves…. “What we also found, which is really exciting as well, is that grass grows more grass, so with ewes going into these higher covers we actually grew 30% more grass.” To avoid pasture quality being lost, if any covers went over 1900kgDM/ha beef cattle were brought in to bring them back down. Financially, the bottom line of the trial was set stocking ewes at BCS 3.5 on 1500kgDM/ha pastures increased returns per hectare 12%. “What you think is a fat ewe and what I think is a fat ewe is probably quite different. A ewe should be at body condition score 3.0 to 3.5.” Any that go over that are easily brought back to target. “The wee chubby

girls go on the hill for the summer to get them back to 3.0-3.5.” First cut: jelly-like deposits under the jaw indicate a difficult birth.

No fat: a clean kidney like this indicates starvation.

SURPRISINGLY, IT’S THE HEALTHY LOOKING CALF WHICH COULD BE STUNTING YOUR PROFITS.

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Never walked: untouched soles on left indicate the lamb never stood up.

The simple solution for a serious disease – Bovilis BVD

Rural News // August 20, 2013

36 machinery & products

2 in 1 combi wagon WHAT MAKES a loader wagon a silage transport wagon? Lely says it has answered this question with the Tigo XR series, setting a new standard for combi wagons. The Tigo XR series is a new in-house development, usable as a loader wagon and a silage transport wagon. Reliability, capacity and a “nimble footprint” distinguish the machine, the

company says. The new wagon’s superstructure has an integrated, hydraulically adjustable, multi-function bulkhead. Making optimum use of the space above the extra wide pickup provides an extra 6m3 of loading capacity. It also improves the load on the drawbar to ensure stability with large loads.. Inner frame width of 2.36m enables the wagon

to hold more in a shorter vehicle. This makes the Tigo XR the most compact combi wagon on the market, about 1.0m shorter than comparable combi wagons with the same load capacity, Lely says. Crop pickup is claimed “outstanding”, with seven extra-wide tine bars. The new camless pickup is 200cm wide and fitted with seven rows of tines mounted only

54mm apart. This ensures clean and efficient crop pick-up. The optional pick-up tracer roller delivers a cleaner job and keeps the pick-up out of harm’s way when the going is tough. Rotational speeds of the rotor and pick-up are coordinated for maximum crop flow and an enormous pick-up capacity. A combination of high performance pick-up plus an

800mm-diameter chopping rotor and 1.75m wide feed channel combine to

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ensure enormous throughput. The seven rows of casehardened rotor fingers are mounted in a flow smoothing spiral design. The fingers are 25mm wide and give effective and fuel efficient crop transport. Up to 45 knives allow a clean cut with a minimum cutting length of 37mm. “The result is high quality, pre-

compacted ruminant forage and a wagon perfectly loaded to maximum capacity.” Chassis options include bogie and tandem or tridem chassis with hydropneumatic suspension with or without weighing system and rear or forced steering. Tel. 07 850 4050 www.lely.com

UFO 2070W The UFO 2070W. What else can be said that hasn’t already been said. This iconic 2.1m cut Swingback mower is renowned for it’s robustness, dependability and it’s honest ability to get the job done. At this price, get in quick. UsUally $8,450 + GsT

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Other UFO models are also available throughout this promotion. Promotion ends 30th September 2013. Reese Agri I Ph: 06 357 9323 I Email: jon@reese.co.nz I Ph Jon: 021 433 129 I www.reeseagri.co.nz

Implement mounting now a one-step job GA R ET H G I L L AT T

MOUNTING a folding rotary hoe onto a tractor can be a one-step task with the new Gangl docking system, says supplier Fieldmaster’s marketing manager Rachel Stock. The German quick-hitch system is the first in the country to allow instant PTO and hydraulic connection without the operator having to leave the tractor. The Gangl uses a hydraulic coupling point attached to the top of the male coupling, allowing the implement’s hydraulic coupling to slip on when the operator raises the male connection into the female one. It’s a first for New Zealand farmers, says Stock, and it offers big advantages to contractors and farmers who need to use two or three different implements on their tractor every day. “This varies from farm to farm; some change two-three times a day some change six to eight. “Connection is immediate every time you hitch and unhitch; there’s no getting out of the tractor.” A range of connectors is offered, from the maker’s Hydro connection, which only requires the farmer to engage the PTO manually, to the Master Plus, which allows the operator to engage couplings, hydraulics and the PTO with the flick of a switch. Fieldmaster has put together several male and female packages which Stock says should provide enough for most operators. “It all comes down to whether you require hydraulics or PTO or both, and how many implements you want to go to.” Tel. 0800 500 275 www.fieldmaster.co.nz

Rural News // august 20, 2013

machinery & products 37

Heliwrapper can now fly solo GA RE T H G I LLAT T

A SELF-POWERED, trailed bale wrapper recently re-released by Reese Agri does not need tractor power to operate and uses much less wrap than previously, says sales manager John Norfolk. Remote control completed the improvements to the machine. The company’s patented Heliwrapper tube wrapper moves down a line of bales using 50% less wrap than conven-

tional individual wrappers while wrapping round and square bales, the company says. The company also makes a 3-point-linkage machine proven able to wrap 90 bales an hour and Norfolk says the recently released trailed unit will achieve similar wrapping rates, powered by an 18hp diesel engine. The Heliwrapper can work independently of the tractor with a wireless cabmounted remote control allowing the operator to

work the tractor and the wrapper at the same time. An automatic electric start and remote controlled steering reduces work for the operator, and computer controlled automatically adjusting brakes ensure consistent tension is kept on the wrap. The operator may choose the number of wraps. And extra wraps can be applied to the joins. The machine is built on the same heavy duty frame and wheels as the original model.

More steps towards dairy automation GA RE T H G I L LAT T

DAIRY FARMERS looking to future-proof their milking systems will be able to do it in instalments using new products from GEA Farm Technologies, says area sales manager Mike Prendergast. The global dairy specialist at National Fieldays launched its new Milfos iCORE automatic cup remover, which complements its iCR automated cup remover system. The new system is said to be as affordable and easy to install and use as the iCR cup removal system, and it offers upgrades to grow a milking system as required, says Prendergast. “Basically it is the first step toward having a fully automated milk-

ing point management system. It’s the first building block in a modular system that you can add any number of tools to.” Added functions include integrated onplatform teat spray control, optional flow controlled variable pulsation with stimulation and a new ‘heads down’ display upgrade for the company’s iPUD, a multifunction device positioned between the cows legs which acts as a leg separator, cluster alignment tool and a post milking teat spraying device. Prendergast says the recently added HDD has integrated spotlights which make it easy for operators to check teat condition or identify abnormalities in the milk.

Norfolk says they needed to work hard, and got help, to develop a good automated system. “It was our first foray into this area of the market but Massey University was great in providing assistance.” The self-propelled Heliwrapper is intended as an affordable alternative to “limited affordable” market offerings says Norfolk. “Prices have gone up a lot recently and there’s a bit of resistance from farmers and contractors to that.” He says the locally produced tube wrapper will cost at least 25% less than similar prod-

Robert Furlong from Reese Agri with the company’s Heliwrapper tube wrapper.

ucts on the market with the same number of, if not more, standard features than other models on the

market. Reese hopes to sell the product worldwide alongside its 3PL mounted,

hydraulically powered Heliwrapper. Tel. 06 357 9323 www.reesegroup.co.nz

The HDD also displays alerts to the operator depending on the status of the milking point. Alerts are given for kick offs and also to alert the operators of an upcoming event at the milking point. In the future it will display red or green light to indicate whether or not a cow is ready to be milked or not. Because growing numbers of dairy workers are not nativeEnglish speakers, the display has been kept easily understood. www.milfos.com

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Rural News // August 20, 2013

38 machinery & products

Bale and wrap saves time and money

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operates effectively on and it has handled the TARANAKI CONTRACconditions we have to deal steep slopes, the supplier TOR Lloyd Gernhoefer’s says. with. Some of my country new Kuhn VBP 2160 variFast and reliable bale is pretty hard work, and able chamber BalePack transfer combined with we’ve got a lot of swamp is saving him time and a high-speed, twin-satelland around here. I had labour with its simple lite wrapping unit enable a demonstration model bale-and-wrap operaoutput up to 55 bales per tion, the machine supplier here the summer before I hour. bought it and we put it on reports. Gernhoefer opted for Gernhoefer bought the some rough country and it Kuhn’s IntelliWrap 3D VBP 2160 last year, making handled it well. wrapping system, which “I liked the ease of 11,000 bales of silage and distributes 3000 bales of the total film hay last season. “The monitor is easy to quantity uniHe has run work… a big advantage at formly and effiLloyd Gernciently across hoefer Contract- the start.” the entire suring from home face of the bale. “The 3D working on the comat Eltham for 18 years. system is really good, and puter with the BalePack. His services include hay and silage bales, pit silage, That was the big thing: the you hardly get any rips monitor is easy to work… a in the wrap when you’re hedge cutting, effluent ponds, fertiliser spreading, big advantage at the start.” loading and unloading trucks,” says Gernhoefer. He bought the Baletrailer work, direct drilling The design embodPack and did most of his and cultivation. ies fewer moving parts, Gernhoefer hadn’t had silage with it last season. unmatched crop flow, and a Kuhn baler before buying “It’s really good. I haven’t outstanding performance been driving it myself but the BalePack but he has and dependability, says the my guy who operates it owned Kuhn power harsupplier. finds it good.” rows and a plough. Gernhoefer says the The BalePack combines He looked at the BaleVBP 2160 allows him to two technologies in one Pack after realising he machine. This baler/wrap- have one less guy out on wanted something a bit per combination combines the job, making his baling different to replace his the OptiCut integral rotor operation more efficient. standard baler. “I was The variable chamlooking for something dif- and unites it with an innober also allows him to go ferent from everyone else. vative wrapper system. The machine can make from silage in the mornI wanted to see what else ing straight into hay in the top-quality bales in all was available. afternoon. crop conditions and it “It makes a nice bale

Phone 09 376 1035 www.percymotors.co.nz

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Rural News // august 20, 2013

machinery & products 39

Output up 20% with latest baler baling 200,000 bales, and it has excelled in a variety of crops and conditions,” Fanning says. “The baler’s sleek new look and curved design also improves its functionality, allowing it to shed debris more easily.” The LB4 has also been redesigned for better wear and longer life, including an all-new, heavy duty frame on the pickup and reel. About 600mm narrower than previous models, the new design provides better visibility around the baler and makes transport easier. LB4 large square balers also come equipped with steering sensors that interface with the standard fitted AFS Pro 700 display to more efficiently help producers build a “perfect” hay bale. A GPS logger is included for recording bale moisture, and together with a bale weighing system offers complete bale documenting. With GPS data logging and computer mapping software, all data relating to the baling process can be viewed at any time and can be exported onto a USB drive.

Dairy plant man to Duncan Ag DUNCAN AG has appointed Robert Barker as South Island area manager. General manager Craig McIsaac says the company welcomes Barker’s wide experience in the dairy and engineering industries. His experience includes business development management in India, Asia and Eastern Europe, and he was deputy chair of the India/New Zealand Business Council. “Robert knows the importance of sound engineering and customer service,” McIsaac says. “He is conscious of the role dealerships play, having set up dealer networks in the South Island on behalf of Waikato Milking Systems Ltd.” “I recognise Duncan farm machinery as being superior New Zealand made products and welcome the opportunity to sell this,” says Barker. “Having set up processing lines in India and trained staff in South America, I can assist Duncan Ag to provide dealerships and clients with the farm machinery services so essential to modern farming techniques.”

The LB4 is available in a steerable tandem axle, in standard configuration or rotor or packer cut. “The new design elements create a product

that is more efficient and reliable, and easier to use and maintain,” says Fanning. Tel. 0800 CASE IH www.caseih.co.nz

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BALING CAPACITY is as much as 20% higher in Case IH’s new LB4 series large square baler than in previous models, the company reports. Redesigned for style and function, the new model can give a big boost to farm productivity, says Tim Fanning, operations manager. “We are excited to bring a new level of baling technology and performance to New Zealand producers. “We know the importance of maximising short baling windows. And the LB4 series gearbox runs at an astonishing 48 strokes per minute to put crop through the machine faster and more efficiently. Highspeed baling means producers can get more done in a day without compromising the quality of the bale.” The LB4 has a new, high inertia flywheel 19% larger than the previous model, lifting performance. And its new, high-capacity pickup has a roller windguard, feed-assist roller and higher revs to maximise crop flow into the baler. “The baler has been put to the test,

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40 machinery & products

Canty show entries open SHOWING ENTRIES are now open for the 2013 Canterbury A&P Show. About 3000 animals and 1000 competitors will contest 1700 classes – horse and pony, beef and dairy cattle, sheep, alpaca, llama, wool, goat, dog trials, poultry, shearing and wool handling, wood chopping and vintage machinery. Prize money exceeds $100,000. Canterbury will continue its exhibitor subsidies offered to North Island and Southland exhibitors who travel far to attend the show in Christchurch. “We consistently attract about

7000 livestock and equestrian entries each year,” says Canterbury A&P Association President Mark Fleming. “Coming off our 150th anniversary celebrations in 2012 we are keen to maintain the momentum in regard to increasing showing entries. Our aim is always to exceed the previous year’s entries and with the development of new classes and competitions offered this year, we are on track to achieving this.” A new addition to the equestrian section is Stock and Station, first run at local A&P shows to reflect the history of the large hill-country runs. Many stations and farms still

rely on the horse as a work animal. The classes demonstrate pace, agility and obedience and have great spectator appeal. Riders and their mounts are expected to turn out in tidy attire, appropriate to working on a station. “A coveted Supreme Champion win at the Canterbury A&P Show is much sought-after within showing circles. Each year we invite the best national and international judges to ensure we retain the high standards associated with Canterbury” adds Fleming. To celebrate the 150th anniversary of the arrival of Angus cattle

in New Zealand, the Angus section will be judged by James Playfair-Hannay. Resident in Scotland, James has judged in UK, Ireland, Brazil and South Africa. “We are also putting renewed focus into our Youth Classes at this year’s Canterbury A&P Show with the further development of initiatives introduced last year, including The Lady Isaac Scholarship.” The show will run Wednesday 13 to Friday 15 November at Canterbury Agricultural Park in Christchurch. Tel. 03 343 3033 www.theshow.co.nz

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GPS CONTROLS on a new 3PL M2W Bogballe spreader are so good that a programmed unit is practically idiot-proof, says David Donnelly, managing director of importer Origin Agroup. Smart headland control is a notable feature, Donnelly says. Other features are stainless steel components, long-life wear-resistant manganese steel vanes, powder coated paint finish and a quad overlap for accurate spreading. Made to handle corners, and short and triangular paddocks, the spreader’s GPS functionality means that once a spreading area’s boundaries are set, the tractor operator may comfortably go over the same area twice without over-applying fertiliser. “Taking this to the extreme, you could drive into a paddock and drive over it almost completely at random and you would have still been able to spread fertilizer evenly. “If you drive into a corner then it will alter the spread so it is only being spread on the actual area.” This is achieved by the breaking up of areas into wedges. Once a wedge is covered, automatic switchoff prevents spreading if the driver revisits an area. Control is said to be so good that one farmer in Denmark has been comfortable spreading in early morning or late at night during poor light. The spreader’s GPS software allows for start/stop points, which means farmers can spread next to environmentally sensitive areas like rivers, creeks, shelter belts or wetlands without environmental risk. “Start and stop points are automatically defined by the system without any other inputs than the working width.” With a 2.9m hopper width the M2W Plus is easily transportable between jobs without the use of flags. The spreader unit’s six vanes enable fertiliser to be spread up to 36m, and out to 42m at times, depending on what was being spread. The hopper’s design means prevents clumping and promotes smooth fertiliser flow. Hopper capacities are 1800-3000L. Tel. 07 823 7582 www.originagroup.co.nz

Rural News // august 20, 2013

machinery & products 41

Korean hero makes an impact A DA M F R I C K E R

IF THE performance of Hyundai at Fieldays is any measure, little wonder this Korean manufacturer is overtaking the old automobile establishment. The company was breaking sales records at Fieldays by being organised, proactive and having good products. One of the heroes on their site was the new Santa Fe, which Rural News has spent a couple of weeks with. It’s an impressive vehicle, but an expensive one. Most of the motoring press has posed the obvious question: “Will people pay up to $80,000 for a Hyundai?” We were driving a less expensive version, the Elite, which still costs $67,990 for the petrol and $73,990 for the diesel, but you can get into a 4-cylinder petrol Santa Fe from $57,990.

It is without doubt a great looking car. Quirky design is a thing of the past for Hyundai and the new Santa Fe is probably their best effort yet in appearance. The build quality is also obvious. This car feels like quality, from the ‘thunk’ of the door closing to the solid feel on the road. Hyundai’s reputation in this regard is creeping up on Toyota’s. First, the 2.4 4-cylinder petrol engine: a smooth, quiet unit under normal driving conditions with a useful amount of torque, but gets a bit harsh when you wring it out. Most drivers in this category won’t do that and will find the 141kW power and 242Nm torque of this engine perfectly adequate. Claimed fuel use is 9.0L/100km. For more grunt and towing ability, the 2.2L diesel with torque of

436Nm is the obvious choice. This impressive unit carries over from the old Santa Fe and has earned its reputation for being quiet and powerful while drinking moderately (7.3L/100km claimed). Hyundai NZ expects the majority of Santa Fe customers will select the diesel. Matched to a 6-speed automatic it makes short work of most kiwi roads. There is still a 199kW

3.3L petrol V6 in the range, available only in 2WD, but Rural News has not sampled it. Equipment levels in the Elite are exceptional and go some way to justifying the high ticket price. Heated seats (all of them), Bluetooth, dual zone climate control, electric front seats, push button start, premium audio, leather, to list a few. The pricey Limited tops things off by ticking everything on the

options list. Keyless entry and start made daily driving a breeze – just leave the proximity key in your pocket, open the door, get in and go. Not an off-road vehicle really, but we did anyway, failing to get it stuck on the beach or sandy tracks. A great evolution of a Kiwi favourite, the new looks will probably add to the Santa Fe’s appeal, despite the price. www. hyundai.co.nz

Robot tractor increases efficiency AN AUSTRALIAN inventor says tractor driving is an unproductive use of a farmer’s time and has created a 3m-wide robotic tractor and seeding machine that will allow cropping on 20% more land. University of New South Wales associate professor Jay Katupitiya has developed a lighter, cheaper machine that can follow and plant seeds with unprecedented accuracy along a pre-defined path without a driver. Katupitiya says existing large tractors are expensive and compact the soil as they move, creating crop lines that makes about 20% of land in large paddocks unusable. This means cropping must happen in the same direction every year, which degrades soil health. “This new system can lay seeds with 1-2cm lateral accuracy on rough ground, an unprecedented level of precision for an autonomous machine,” Katupitiya says. Achieving this precision with existing technology was challenging because the forces generated by a plough digging into soil often cause seeding implements to veer off course. Advanced control systems and sensors, and an optimised design, allow Katupitiya’s invention to automatically correct against these deviations. The university is working with the Grains Research and Development Corp on commercial production of the robotic tractor.

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Rural News // August 20, 2013

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Rural News // august 20, 2013

rural trader 43

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Check out our seasonal electricity pricing.

With cheaper summer prices from 1 September to 30 April, our fixed seasonal rates could save you money on your electricity bill. Switch to Meridian’s seasonal rates before 30 November 2013 and you’ll go in the draw to win a $3000 House of Travel gift card.

Illustrative profile of seasonal consumption and price*

Consumption (kWh)

Price (Cents)

Jan

Feb

Mar

Apr

Consumption (kWh)

May

Jun

Jul

Aug

Sept

Oct

Nov

Dec

Price (cents)

*The graph above is provided as an illustration of consumption and Meridian seasonal rates only. Your actual consumption and the rates charged to you will vary. The graph has been based on a single agribusiness customer’s installation control point in the Waitaki region. **Terms and conditions apply.

If you’re not already a Meridian customer, you’ll also receive a $100 credit on your first electricity bill for the first connection you switch and $50 for each additional connection.**

Call our Ag-ITO trained agribusiness team on 0800 496 444 to find out more. meridian.co.nz/Seasonal