Rural News 7 October 2014

RURALNEWS TO ALL FARMERS, FOR ALL FARMERS

OCTOBER 7, 2014: ISSUE 570

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Investment in technology is paying off handsomely for Cheltenham Downs. PAGE 44

RURALNEWS

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PAGE 27

TO ALL FARMERS, FOR ALL FARMERS

OCTOBER 7, 2014: ISSUE 570

www.ruralnews.co.nz

Challenging times!

SU D ES H K I SSU N sudeshk@ruralnews.co.nz

FONTERRA CHAIRMAN John Wilson says cashflows onfarm during the first six months of 2015 will be challenging.

Mindful of that the co-op is urging farmers to take extreme care.

Wilson says the $5.30/kgMS payout is based on “best information” available to the co-op.

“Two months into our financial

year we are trying to look over the long term. If we go back, two years ago we were $5.84/kgMS in milk price, last year it was $8.40 and this year we are forecasting $5.30.

“Much of this is about balance date and the period we are measuring; it also reflects the volatility out there.”

He assured farmers Fonterra is doing all it can to maximise the payout. “But… the global commodity prices are where they are.” – • More on page 5

P ET ER BUR K E

Highs and lows of six year’s GDT.

GDT Date

100 million hits a day peterb@ruralnews.co.nz

Average Price US$/t

USS:NZ$*

NZ$/t

2-7-2008

4395

0.76

5783

1-7-2009

1829

0.65

2814

1-3-2011

4826

0.75

6435

15-5-2012

2618

0.78

3356

4-2-2014

5042

0.81

6225

2-10-2014

2599

0.78

3332

*Reserve Bank mid-rate on day of GDT event

KALE COMBATS THE WET Ian Brown, manager of Landcorp’s Cheltenham Downs farm near Feilding, plants about 40ha of kale each year to finish 650 steers. The kale, planted on river terraces not prone to pugging, yields good crops.

This strategy forestalls damage to the farm’s high quality clay soils during winter. Cheltenham Downs finishes about 40,000 lambs a year. More on this and the whole operation on pages 45-47.

SILVER FERN Farms (SFF) is just days away from launching its top consumer-branded retail cuts of lamb in China on the world’s biggest on-line shopping platform – Tmall.

Tmall and its partner Taobao account for at least 80% of e-commerce in China, the two sites getting 100 million hits a day.

SFF chief executive Keith Cooper says this is the company’s first foray into the on-line market and while he is hesitant about talking up the deal, the Chinese having listed the product gives him confidence.

Lamb will be the first product listed, then venison and beef. The packs will include stir fry, seen by SFF as the most popular because it suits Asian cooking. The packs will contain recipes showing how easy the product is to cook.

The packs will exactly replicate those seen in New Zealand supermarkets – English writing on the front and instructions on the back in Chinese.

“Tmall wouldn’t have listed the product if they didn’t have a high level of confidence that it would succeed because they are experts in this field,” Cooper says.

“My thinking is it’s going to succeed because they have already listed the product so it’s going to be a self-fulfilling prophecy.”

• Maori branding opportunity – page 3

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RURAL NEWS // OCTOBER 7, 2014

NEWS 3 ISSUE 570 Maori branding opportunity

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PETER BU RKE peterb@ruralnews.co.nz

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HEAD OFFICE Top Floor, 29 Northcroft Street, Takapuna, Auckland 0622

MAORI’S STORY of their land and its animals could be the essence of branded ‘Maori’ meat products, says Silver Fern Farms chief executive Keith Cooper.

He told Rural News at the annual conference of the Federation of Maori Authorities (FoMA) that Maori have a great story to tell, so good it could support a branded product.

“Their ancestral history and their care for the land are part of the story that could be told to our customers.

When you think about the things we buy in everyday life… we want to know where they come from, who’s done it, why and how.

“We have New Zealand lamb, beef or venison on supermarket shelves and restaurant menus [carrying potential for] more value if we told a story about that product.”

Cooper says such a venture could be part of a whole ‘brand New Zealand’ story related to consumers. Consumers are well-known to ‘buy’ a story and will

pay a premium for it if they like it.

An agreement – known as Te Ara Tipu – between Silver Fern Farms and FoMA is intended to develop the capacity and capability of people and communities, develop farm systems (through FarmIQ), and leverage collective scale and influence.

Cooper says collaboration is “pretty new” to the meat industry and its producers. But it fits well with the strategy of an integrated value chain.

“This is where farmers grow for customers and we as marketers understand what the customers want so we can give the information back to farmers. Hence Farm IQ can make their boat go faster and grow their contribution to making the pie bigger….

“Maori are starting to work together under the FoMA umbrella, looking for different opportunities, different value propositions and critical mass. Arguably with that we can afford to invest differently and look at how we deliver different value propositions for Maori as whole.”

Maori farms tend to be very large –

100,000 stock units and more, Cooper says. But in common with most farmers they are fiercely independent: such is the challenge for the meat industry.

Silver Fern deals with 12,000 of these entities.

“If we had groups that acted together, made commitments to do things differently onfarm to give us confidence in supply profile and quality, then we would start to move up the value chain by being able to invest on the back of that combined collaborative thing.

“Another ‘C’ word is co-ordination.

We can collaborate on strategy, but coordination to manage animals to market in the right shape, form and timeframe is part of that integration.”

The company knows there is a prize in the form of higher returns, but it can’t pay in advance for that prize.

“We are saying [to farmers], ‘if you do it differently there will be more value created’. [The farmers are saying], ‘show us the money now and we’ll think about it’. The line in the sand… more like a chasm… we can’t quite bridge at the moment.”

HISTORY ON DISPLAY: Mid-Canterbury Dairy farmer Allan Lock has given the thumbs up to Fonterra’s first Farm Source hub.

The fourth generation farmer says Farm Source is a brilliant concept. “There are some great deals on offer for us,” he told Rural News. Lock milks 600 cows on Pudding Hill Road; son Mark has been a sharemilker and partner since 2002. Allan and Mark were at last week’s launch of Farm Source in Methven. To mark the opening of the first hub, the Locks donated a cream can used by Mark’s grandfather and great grandfather on the farm. Mark’s grandmother Shirly donated the cream can to be displayed at Farm Source Methven store; the can was used to deliver cream from the farm to the milk factory. • More page 9

Phone: 09-307 0399 Fax: 09-307 0122 POSTAL ADDRESS PO Box 331100, Takapuna, Auckland 0740 Published by: Rural News Group Printed by: PMP Print CONTACTS Editorial: editor@ruralnews.co.nz Advertising material: davef@ruralnews.co.nz Rural News online: www.ruralnews.co.nz Subscriptions: subsrndn@ruralnews.co.nz ABC audited circulation 81,232 as at 31.12.2013

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RURAL NEWS // OCTOBER 7, 2014

4 NEWS

Survey backs reforms – MIE PE T E R BU R K E peterb@ruralnews.co.nz

THE MEAT Industry Excellence Group (MIE) claims an independent survey it commissioned confirms widespread support for industry reform centred on a co-operative model and that farmers are prepared to pay for it.

MIE chair John McCarthy says the research also identifies over-capacity as the most urgent chal-

lenge facing the industry and costing farmers dearly – about $400 to $450 million.

He says the survey of 800 farmers shows savings can be made from supply chain efficiencies, and that farmers are more open than has been thought to committing supply to underpin industry restructuring.

“The survey shows that 48% of farmers would sign a contract for a set time of

one-five years and that a further 20% are are open to the idea.”

The survey highlights a lack of certainty and trust by farmers about how contracts, discounts and premiums are currently operated, McCarthy says.

“It also shows 86% of farmers would or may support a restructuring of the red meat industry, suggesting considerable consensus.”

McCarthy says some

PA M T I PA pamelat@ruralnews.co.nz

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Zespri rejects claim

MIE chair John McCarthy.

farmers believe strongly that a Fonterra-type cooperative would or could work for the red meat sector. And 90% would like to see more of the supply chain captured

by New Zealand farmers rather than lose control to foreign corporate

ownership.

Farmers’ attitudes discovered by the survey will give confidence to industry leaders, and the government, that consensus exists among farmers on issues central to meat industry reform, McCarthy says.

“The Minister for Primary Industries will be interested in the broad consensus on these issues, considering his earlier challenge to MIE over demonstrable stakeholder consensus.” @rural_news facebook.com/ruralnews

Swede production impact still unknown IT’S STILL too early to say what the long-term production impact of the swede toxicity issue that hit Southland dairy cows this winter will be, says Dairy NZ. Besides the obvious losses from cows that died, the toll in reduced production from clinically affected cows that have since recovered and sub-clinicals is yet to be assessed, Dairy NZ regional leader Richard Kyte told Rural News.

“Herd testing has only just started. Some of the clinicals haven’t

come into milk, and some aren’t milking very well but I’ve not heard if there’s been any impact with subclinicals.”

With pre-mating heat monitoring only just starting, it’s also too early to say if there’s likely to be a legacy of reduced reproductive performance in affected herds.

The levy body last week put out an advisory on sowing decisions for next winter’s feeds.

• For full story and more on the issue, see p55

ZESPRI “COMPLETELY rejects” the approach taken by the group behind the ‘The Kiwifruit Claim’ legal action.

Chairman Peter McBride says the last thing the rapidly recovering industry needs is a drawn-out, divisive legal battle.

McBride says the ‘The Kiwifruit Claim’ class action against Biosecurity NZ lacks transparency and fails to show the uncertainties around the claim.

“The Statement of Claim is not even available yet for review,” McBride says.

“The architects of ‘The Kiwifruit Claim’ are seeking to sign up growers to a class action before they have had the opportunity to properly consider the legal merits of the claim and before the Statement of Claim has been filed.”

He says Zespri completely rejects the group’s approach and believes the profit which would be made by the litigation funder if the claim is successful reflects the high risk of the claim failing.

McBride says Psa caused immense damage to businesses and people, including himself. But the industry is well into recovery. Orchard gate returns are strong, land prices are higher than prePsa levels.

“The last thing this industry needs right now is for the focus to be taken from growing our industry and placed on a divisive, drawn out and hugely expensive legal battle, especially given the poor process followed by ‘The Kiwifruit Claim’ and the uncertain legal basis of the case.”

• $885 million damages claim – p 11

RURAL NEWS // OCTOBER 7, 2014

NEWS 5

Price recovery some way off – bank A N D R EW SWA LLOW andrews@ruralnews.co.nz

EVEN BEFORE last week’s GDT drop Rabobank was warning a dairy price recovery could be a while away yet.

Speaking on the release of the bank’s latest Dairy Quarterly report, director dairy research New Zealand and Asia, Hayley Moynihan, said: “…market rebalancing will be a slow process and price recovery looks some way off”.

“The next year promises to be challenging for New Zealand’s dairy producers, however the longer-term outlook remains positive, with prices expected to return to more profitable levels for farmers into the 201516 season.

“Rabobank firmly believes the current downturn in prices is cyclical, as agricultural commodity prices often are, rather than a more fundamental structural change, and farmers will work hard to ‘wait out’ the lower price cycle by trimming less productive farm expenditure or deferring long term cap-ex decisions,” she added.

Rabobank’s report cites exceptional milk production growth in export

regions outstripping weak domestic consumption, and China’s reduced forward buying as the drivers of price falls.

But milk production growth in the ‘big seven’ export blocks – the EU, US, NZ, Australia, Argentina, Brazil and Uruguay – will slow considerably in the next six months. Combined, their production was up 5.1% in the first half of this year, but it’s forecast to increase only 2.7% in the second half and just 1.6% in the first half of 2015.

Meanwhile dairy consumption will slowly improve as incomes increase, employment grows and dairy retail prices fall.

“The combination of these production and consumption factors will see growth in exportable surpluses slow from about 4.5b L in the first half of 2015 to 2.2b L in the second half – a 6% yearon-year rise – with a similar rise factored in for early 2015,” says Moynihan.

While it’s not expected, prices could recover more quickly if Russia removed its ban on dairy imports or Chinese import buying resumed earlier and more strongly than expected, she adds.

However, “further downside risks” lie in the EU’s removal of production quota in April 2015.

“For local (ie NZ) milk prices the NZD/USD exchange rate is a critical component. While a stronger US dollar would assist New Zealand dollar milk prices, it may also place further downward pressure on US dollardenominated commodity prices.”

US producers have been insulated from recent price falls as domestic prices remain buoyant and, with feed prices plumbing new depths (see panel), dairy

farming remains highly profitable for them.

“Even if their prices were halfway between where these [world] prices are and what they’re currently getting it would still be profitable,” Moynihan told Rural News.

However, for US and EU processors exports will not be profitable at current market levels, so they’re likely to be building inventory which, when prices start to recover, will be unloaded onto international markets, slowing the recovery.

The fact the whole milk powder price in the near position (November) rose

in the latest GDT event is a sign some buyers are operating hand-to-mouth, but with the DecemberApril positions all down there seems little appetite among buyers to build inventory, adds Moynihan.

“We need to see them start rebuilding inventories for it to turn around.”

Rabobank’s Hayley Moynihan says “market rebalancing will be a slow process.”

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RURAL NEWS // OCTOBER 7, 2014

6 NEWS

Fonterra’s game of two halves SU DES H K I SSU N sudeshk@ruralnews.co.nz

IT WAS a game of two halves for Fonterra in the last financial year.

The co-op enjoyed record whole milk powder prices between August 2013 and February this year, boosting earnings but impacting value added returns; WMP prices have since tumbled making it cheaper to make cheese and other products.

Fonterra last month announced its annual result for the year ending August 2014; it paid farmers a record $8.40/kgMS for farmgate milk and 10c/ share dividend.

Earnings for the year jumped 19% to a record $22.3b on the back of high commodity prices. However, it proved a downside for the value added businesses: normalised earnings were slashed 50% to $503m and net profit dropped a whopping 76% to $179m.

Fonterra chief executive Theo Spier-

ings says despite a difficult start to the year with the false WPC80 botulism scare, the co-op focused on “business as usual”. “We stayed on our strategy to drive volume and value.”

Total sales volumes in value added divisions remain unchanged at 4m tonnes. Spierings says inventories of 80,000t and a 40,000t hit in Sri Lanka impacted sales.

Despite flat-lining sales there was growth in two key regions: sales in Asia grew 12% in volume and Latin America 3%. “Excluding Sri Lanka, Asia’s growth rate is higher; it is 18% volume growth and we are proud of that.”

However, margins were constrained as Fonterra focussed on growing sales.

Spierings says volume growth in emerging markets is crucial, “but it comes only when you are priced the right way. The milk price was high so input costs were high last year but we priced what the market could bear, to a level where we could still see volume

Global supply increases

Fonterra chief executive Theo Spierings and CFO Lukas Paravacini go over the figures at last month’s presentation of the 2013-14 annual result.

growth in our emerging markets – but they came at the expense of margins.”

Fonterra’s board and farmers backed the strategy.

Spierings praised Fonterra’s recovery from the WPC80 scare. The strong year started off with challenges which we managed very well, he says.

WMP prices for the first half of the financial year hovered about US$5000/ tonne while cheese prices were US$4200/T. In the second half WMP prices tumbled to US$2500; cheese

prices came down too but stayed about US$3200.

“WMP was strong in the first half; this drove the revenue line and put a lot of money in.”

Spierings says it’s hard to say what will happen in the coming months.

“It’s a volatile environment and the big question is what will happen next.”

Fonterra expects powder prices to remain lower than cheese and other value added returns. @rural_news

ALL MILK producing regions pumped extra milk into the global market last year.

New Zealand’s milk production was up 8% and Fonterra Australia also recorded a rare milk increase of 2% last year.

But the biggest stories were the US and Europe.

Theo Spierings says the US normally grows its milk volumes 1% annually; last year it grew 4%. With a milk pool of 100b L, that flooded 3b L more milk into the global market.

Europe also had a 4% lift in production, pumping 5b L more milk into the world.

While exporting regions grew milk, China bought less dairy product to clear large inventories and Russia banned dairy products from EU, the US and Australia.

The Russian ban affected 250,000t of cheese from the EU, representing 2.5b L of milk, Spierings says. “It has to find a home and we know where it will end up.”

He says though there is a strong supply of milk, “one world event could change the dynamics again”.

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RURAL NEWS // OCTOBER 7, 2014

NEWS 7

Why Tatua creamed it!

PA M T I PA pamelat@ruralnews.co.nz

MORRINSVILLE’S TATUA is not only celebrating a record payout and record production, but next year hopes to become the world’s number-one producer of hydrolysed dairy product.

Tatua announced last week a 2013-14 payout of $9/ kgMS to its 109 suppliers – believed a record for NZ – and a pre-tax retention of $1.30/ kgMS to invest in new plant and equipment to support its strategy.

Group operating revenue was $266 million and earnings before tax $136.4 million in 2013-14. In production it also beat the 2011-12 year by a few thousand kgMS to reach 13.22m kgMS. It was also the best quality milk collected in the company’s history.

Chief executive Paul McGilvary told Rural News “the year was one of two

halves. The first half had pretty high prices flowing in from the year before when there had been drought. We started the year with prices fairly elevated.

The concern we had – I made these comments at the start of the year – I was a bit worried that commodity prices may go even higher which is always hard for us because of the way we price.

“We have a lot more product priced on longer term contract because we’re a more specialised type of business. I was nervous about that but it didn’t transpire that way.

“Prices stayed elevated and we were competitive in product mix which is largely protein and fat as opposed to milk powder, so we were largely competitive.

“Of course in the second half of the year the prices started to fall away, the margins in our value-added business started to increase significantly and our own

Tatua chief executive Paul McGilvary.

pricing didn’t fall away as quickly as milk powder. We had a sort-of [positive] double whammy there. “[We benefitted from having] a high proportion of our business in added-value products. We have close to 40% of our business in specialised added value.”

Tatua exports 95% of its products and has five business units selling specialty nutritionals such as lactoferrin

and hydrolysates, food service, consumer, cream-based, flavours and bio-nutrients.

“All five of those units gain relatively significantly when the milk price starts to fall and our pricing remained more stable.”

Tatua is investing in its biggest capital project to date – a $65.5m specialised powders dryer, which is on-time and on-budget for commissioning in April 2015. McGilvary explains the dryer does not dry milk, it dries reconstituted product such as caseinates and whey protein concentrates.

The products are hydrolysed, a process of using enzymes, heat and pressure to replicate what the stomach does. This process of predigesting the protein makes it easier to absorb through the stomach wall of babies, older people and athletes and it helps control allergies.

“The key thing about our new dryer is we expect with

the capacity we will have for hydrolysis we will move from about number four in the world to number one in hydrolytic manufacture.

We have the capacity to be number one in the world.”

They expect the new dryer to be commissioned in April and fully producing by the start of next dairy season.

Tatua is forecasting a $6.50/ kgMS payout for the 2014-15 season. “That was budgeted some time ago. They haven’t reviewed that and the prices have been falling. We will look at that again in November – the first reforecast will be then.

“But right now we’re holding steady at the level of $6.50; there’s some weakness in the market in prices being offset by a falling New Zealand dollar. So we’re saying ‘steady as she goes’ right now and we will update in November.” @rural_news

Ten lucky movers TATUA GAINED 10 suppliers this year, says chief executive Paul McGilvary.

“We collect down certain roads so it was a bit like a spider’s web from the factory out. This year we connected up the ends of the roads so we made a genuine circle around the plant – about a maximum of 12km from the plant. That circle enabled some Tatua suppliers to go out and buy other farms.

“We picked another 10 suppliers so we will go from 109 last year to 119 in 2014-15 which is about another one million kilograms of milksolids.”

McGilvary says Tatua has stopped DIRA milk from Fonterra and buys contract milk from Open Country Dairy.” He says it’s cheaper and because of legislation changes after 2015-16 the co-op was no longer entitled to DIRA milk so needed to find alternative supply.

“It was good for Open Country and ourselves to bring that arrangement in a little earlier.”

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RURAL NEWS // OCTOBER 7, 2014

8 NEWS Harvey backs wool levy AGRIBUSINESS IDENTITY Colin Harvey is urging farmers to support the imposition of a new wool levy.

Harvey, the founder of animal healthcare company Ancare, owner of a high country sheep station and chair of the Wool Unity Group, says a grower-funded group is vital to the future of the wool sector.

“We desperately need a national wool voice that has a strong farmer interest.

This will only come about by having a small, effective unit funded by farmers pulling the industry together. It thus needs every wool farmer’s vote.”

Harvey says wool as a natural fibre is being challenged. “Even the process of shearing is being pictured as inhumane.

In New Zealand and Australia our local wool carpets are under enormous pressure from synthetic carpet with grossly inflated performance claims.

“We need to define what New Zealand wool is, where and how it originates, control its pathway to market and support its use. This is not some wildly expensive exercise but a simple approach of linking what happens on farm and creating a value path to market.”

Harvey says New Zealand needs to be linking with other wool countries, such as

Colin Harvey: “We need a national wool voice that has strong farmer interest.”

Australia, in establishing strong messages about welfare and provenance, “with a common interest in humane practices of shearing and animal husbandry practices such as docking.”

He says this type of activity requires planning and coordination by a national farmer-led industry group.

“If we want wool to return to significant levels of our farm income we need to invest in the provenance of our industry and in maintaining and developing new markets. A wool levy will equip the industry to lead this.”

The referendum of wool growers on implementing a levy has run for the past month with voting closing on October 10.

• Wool poll closes soon – p 17. @rural_news facebook.com/ruralnews

Co-op’s Australian consumer business remains a worry FONTERRA’S Australia and New Zealand consumer business is still struggling to make money, its annual report shows.

In the 2013-14 financial year sales volumes dipped 6% to 832,000 tonnes; total sales reached $38m – 78% of the previous year’s earnings.

Fonterra chief executive Theo Spierings says the New Zealand and Australian businesses had much higher input costs, and competitive pressure limited its passing these on.

“These businesses are now on a firmer footing to lift their performance in the current financial year,”

he says.

Fonterra continues to face intense competition in Australia, where it’s the second largest dairy processor. Competition from private brands has intensified with increased industry capacity in spreads.

Lower volumes in the yoghurt and dairy dessert category also pulled down earnings. The yoghurt category remains challenging and is a key part of its turnaround plan.

Fonterra says the advanced plant it acquired by buying the Tamar Valley Dairy business enables it to innovate and raise production efficiency. “Plans are progressed to broaden

the distribution of the Tamar Valley Dairy brand within the high growth ‘premium’ segment of the category.”

Fonterra is also looking at long-term partnerships with retailers; in April 2014 it was selected as the preferred supplier to process Woolworths-brand milk in Victoria for 10 years.

The co-op will install an A$30 million milk processing plant at its Cobden site in South West Victoria.

Fonterra is also investing heavily in New Zealand. Big milk flows and a longer peak season are stretching its capacity to make powders and are forcing it to make lower-

returning products.

“We fast-tracked investments to expand our New Zealand capacity and undertook immediate projects to maximise output from existing plant.”

Capacity upgrades include a $235m expansion at Pahiatua, a $555m highefficiency drier at Lichfield and three more plants at Edendale.

Foodservice and consumer businesses will be bolstered by a $126m UHT plant at Waitoa, a $72m increase in mozzarella capacity at Clandeboye, and a $32 million expansion at Eltham. • Game of two halves – p 6.

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RURAL NEWS // OCTOBER 7, 2014

NEWS 9

Lively reaction to livery update SU DES H K I SSU N sudeshk@ruralnews.co.nz

CASH-STRAPPED FONTERRA farmers will not be forking out extra money for the rebranding of the co-op’s rural services.

Co-op chairman John Wilson says it’s acutely aware of strained cashflows on farm caused by this season’s low milk payout.

A small group of suppliers last week took to social media to vent their frustration at the costly refurbishment at a time when most farmers are reeling from lower milk prices.

But Wilson told Rural News the change of livery at its former RD1 stores will be part of “the normal refurbishment that goes on”.

The co-op last week launched its first Farm Source hub in Methven. Its subsidiary RD1 is now called Farm Source and its 67 stores will be turned into hubs over the next two years.

Wilson says Fonterra is building four new Farm Source stores; the Methven hub is the first.

“Each of the three new stores

New Fonterra tanker livery has caused an angry reaction from farmers – many tweeting their disapproval (see panel below).

will be a Farm Source hub with new livery; the other stores will be upgraded as part of normal refurbishment.

“All stores have started offer-

ANGRY BIRDS Unhappy tweets followed the Farm Source launch: ● “Hey farmers you need to tighten your belts, so we can roll out a total rebrand!!???” Ben Jaunay sharemilker, South Canterbury. ● “Wasting more money on crap.” Chris Ford, Mid-Canterbury. ● “Heavens knows what the total cost will be. Utter waste of money.” Micha Johnson, Taranaki ● “@Fonterra leave rd1 alone. Process our milk and sell it. You are not a social service or a bank for those who don’t want to buy shares.” Stu Hopkins, Fonterra shareholder, Lower North Island.

ing Farm Source loyalty cards and discounts but most farmers will still be walking into orange stores for some time.”

Fonterra tankers will also be rebranded in regional colours as part of a normal fleet upgrade.

About 50 Fonterra farmers attended a shareholder meeting with chief executive Theo Spierings and Wilson at Farm Source Methven before the launch.

Wilson says Farm Source will allow the co-op to re-engage with its farmer shareholders.

“When Fonterra was formed we centralised; it was important to centralise at that stage. Now three years into our strategy

refresh the board has been able to rethink how we can re-engage with our farmers.”

Apart from offering discounts at its stores, Farm Source is also offering loyalty rewards. And each hub will offer meeting rooms for farmers.

Every farming region is different and resources will be tailored to local farmer needs, Wilson says. “The resources farmers need in each region should not be dictated from Auckland but by the farmers owners and the community.”

While exclusive discounts at Farm Source could draw more suppliers to the co-op, it is about much more than just milk supply.

“This is about the collective

power of the co-op.”

Farm Source has been on the board’s agenda for many years, Wilson says.

“We have talked to our farmers a lot about what we can do to further support them and their businesses. We challenged ourselves to come up with ways we could get in behind them as only a cooperative of our strength can do.

“Co-ops have always been for unity and collective strength….

[We aim] to work for our farmers so we all benefit. With Farm Source we are taking our relationship with our farmers to a whole new level through connected services and support systems.” @rural_news facebook.com/ruralnews

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Setting the benchmark FONTERRA CHIEF executive Theo Spierings says Farm Source is not a scheme or a collection of benefits but is to connect farmers with the full strength of the co-op.

“Ultimately, we see Farm Source as setting the benchmark when it comes to supporting farmers and providing exclusive benefits beyond the milk price.

“Farm Source is an enabler for Fonterra’s volume and value strategy because it is all about milk. By supporting farmers to succeed and grow, the cooperative will also grow its milk pool in New Zealand which is core to the business.

“Farm Source is about working together to grow and succeed together and to reach our ambition of global relevance.

We want to access a 30b L global milk pool by 2025. Farm Source starts here in New Zealand. We will also look to adopt it in other markets where we are growing our milk pools, tailoring it for those local markets.”

RURAL NEWS // OCTOBER 7, 2014

10 NEWS

Waiting for water and new growth FARMER SHAREHOLDERS of Rangitata South Irrigation were hoping the weekend’s weather would flood the Canterbury river, allowing water to pour into the new scheme’s ponds

and races.

The scheme is consented to take water when the Rangitata exceeds 110 cumecs, but it hasn’t topped that flow since August 12. Last

Thursday(October 2) it was at 46 cumecs.

A reciprocal arrangement with the main irrigation scheme running north of the river, the Rangitata Diversion Race, did allow

some water to be taken by RSW early in September when the RDR was shut down but since then the races have been dry.

“We’ve had water coming down and it has

gone right to the end of the scheme so basically all we need now is more water to fill the ponds,” company chair and farmer Ian Morton said as Rural News went to press.

To make sure your brassica crop gets established what would you do?

With below average rain in the area since June some of the farmers who have invested heavily in infrastructure to irrigate are getting anxious.

“There are shareholders enquiring when they’ll be able to start irrigating,” admitted Morton.

The seven pond scheme will service 14,00016,000ha between the Rangitata and Orari rivers with on-farm storage augmenting the main reservoirs at Arundel.

The scheme is still owned by Rangitata South Water (RSW), a subsidiary of the firm that built it, Rooney Earthmoving, but the farmer company has an option to buy once it’s commissioned.

Contrary to a front page report in the local paper, the $115m scheme has not been “at capacity” yet.

Morton says he understands five of the main ponds are operational and the other two require only a few more days work.

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WAIROA MAYOR Craig Little is set to mark his first year in the top job.

The Ohuka sheep and beef farmer says the past 12 months have been a juggle. Little has continued to run the 460ha hill country farming operation that he owns with his wife Jan. “I am so lucky to have Jan as she is capable on the farm; we are in an age when you can’t always justify paying for outside help.

“But it helps having my father as well as great neighbours on hand. I never anticipated how big the mayoral role would be, even though I was a councillor during the term before; just because you are the mayor of a small town, it doesn’t mean the role is less busy.”

Little never intended to stand for the mayoralty, despite a deep passion for the community he was raised in. But he was motivated by a desire to see a change in direction, at a time when the district explored one of its biggest decisions yet.

And when he swaps back from a suit and tie to his shorts and Redbands, the challenge of farming is just as great.

“Sheep and beef farming is unpredictable and you could say times are tough at the moment,” he adds.

“This is good country to be farming, but I am concerned about the future of sheep and beef.

Little hopes recent predictions by Beef + Lamb New Zealand for the 2014-15 season come to fruition as it is currently “extremely difficult for farms to get ahead that are servicing mortgages and debt”.

Despite the struggles, Little says his district continues to provide the right environment for sheep and beef farming, with good-quality country and affordable land.

Little says he will continue to work hard for until the time is right to step back.

“I am enjoying the role of mayor and working with so many different people in our community; it is the challenge I knew it would be. But Ohuka is our livelihood and I’ve always said that if the farm starts going backwards, I haven’t got the balance right.” – See full profile page 26

RURAL NEWS // OCTOBER 7, 2014

NEWS 11

Kiwifruit growers file an $885m claim PA M T I PA pamelat@ruralnews.co.nz

THE $885M kiwifruit class action against Biosecurity NZ is an important court case for all primary industries, claims The Kiwifruit Claim foundation committee chairman, John Cameron.

“It is in the interests of all primary industries,” Cameron told Rural News.

“I’ve had calls from farmers outside horticulture who are supportive and keen to see the result of the court case.

There’re a lot of people feeling there have been injustices.

“The best thing that will come out of this is biosecurity will be held far more accountable. New Zealand will be a lot stronger in the primary industries because of it.”

Foundation claimants representing at least 10% of the kiwifruit industry are lodging a class action in the High Court at Wellington holding Biosecurity NZ (which came under the former MAF and now MPI) accountable for claimed negligence in allowing the 2010 Psa outbreak. All affected growers and post harvest operators are invited to join and the group aims to sign up 80-90% of New Zealand’s 3000 growers. An initial 10%

was needed to satisfy the requirements of funders.

Cameron says growers have been joining daily since the action went public last week. The first of a series of public meetings will be held at Te Puke Sports and Recreation Club at 4pm on Wednesday. Further meetings will be held around the country depending on the response.

“My personal view is if the evidence comes out strong, the best thing the government could do is take the blame, sort out a claim and move on before the next election – I am hoping within three years,” Cameron says.

“The last thing they will want is to have the rural community, which is their major support player, up in arms about not being fair. I would suggest there will be a bit of arrogance to start, but once the evidence is in court and the debate starts, common sense, which is rare these days, will develop.

“I want to reaffirm this is not just about the kiwifruit industry but all primary industries and biosecurity industries in New Zealand,” says Cameron, who is primarily a dairy farmer but owns orchards.

The foundation growers are repre-

PSA devastated kiwifruit crops, with many growers having to start over again.

sented by a committee consisting of Te Puke grower Bob Burt, Cameron (chairman), Aongatete managing director Allan Dawson and Te Puke accountant Murray Gibson. The claim’s legal team includes Alan Galbraith QC, Matthew Dunning QC and Parker & Associates.

The class action is being supported by litigation funders LPF Group Ltd. The deadline for joining the claim is 5pm on October 24.

“There are concerns about where Zespri and Kiwifruit Growers association (NZKGI) sit in it,” Cameron says. “Where we sit is purely around the case law of duty of care by government. That is the primary reason and no other issues are on the table at all with anyone. It has to come from the ground

level.”

Cameron says he personally has never been to a Zespri, KGI or post harvest meeting. “I’ve come in on the basis that it is purely around the case law – there’s a good case to be had and I’m trying to recommend everyone becomes a part of it.

“There is no political agenda for me.

I am probably a bit naïve on some of the internals and that is probably a good thing in relation to the claim.”

Gold growers and Bay of Plenty growers were the hardest-hit initially, but Psa is now in most kiwifruit growing areas. “It will continue to be a headache and this was all avoidable.”

He says new evidence will be brought before the court and prove in more

detail the process by which Psa entered New Zealand. The legal team is strong including the litigation fund chaired by a former Supreme Court judge, Bill Wilson. “They are adamant there is a legitimate case and they can prove the process by which the materials got in.

The evidence is so strong that these guys at the top of their game have stuck their noses out to be backing it.”

Cameron says post harvest operators and other industry players should support the action or stay neutral because if the case is won, their positions will be under scrutiny.

A large independent accountancy firm will devise a formula for how funds will be shared if the case is won and this will be verified through the courts.

Costs of joining the class action range from $500-1500 depending on orchard size. Visit www.thekiwifruitclaim.org Cameron has a share in a Psa-hit large horticultural block but says he represents people who have been through a lot more heartache.

“I will never want to go through some of the issues they have gone through because of Psa. And it wasn’t their fault.” @rural_news

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RURAL NEWS // OCTOBER 7, 2014

12 NEWS Grower lobby in dark pamelat@ruralnews.co.nz

NEW ZEALAND Kiwifruit Growers Inc (KGI) was in the dark about ‘The Kiwifruit Claim’ action until it was made public last Monday.

KGI chief executive Mike Chapman told Rural News they are looking into it and seeking legal opinion but it was too early to make comment. They will make a statement after

considering it fully.

Foundation committee chairman for The Kiwifruit Claim John Cameron told Rural News it was better not to have involved KGI and Zespri beforehand because the legal action had come from ground level.

He had not heard from either KGI or Zespri last week, but he expected to. The action was purely around case law on duty of care by government and there were no issues with

anyone else.

KGI said in a statement it was reviewing the details of the compensation claim to seek clarity on key issues before making an assessment or a formal statement.

Key issues included: • The legal basis for the claim.

• The chances of success of the claim.

• How much it will cost growers to enter the claim and their liability if the action is unsuccessful.

MPI to wait and see THE MINISTRY for Primary Industries says once the claim has been filed it will consider its response, but it is “confident we have acted appropriately”.

“We are not aware of the Crown being held legally liable for this type of biosecurity breach before,” MPI says in a written statement.

It also says: Various studies have shown it is inconclusive as to exactly how Psa entered

New Zealand.

The kiwifruit industry has bounced back strongly since Psa, thanks to the hard work of growers and with the help of $25m from the Government. Most growers are focused on the future and getting on with the job.

As a part of a partnership approach to biosecurity Kiwifruit Vine Health (KVH) was the first industry body to sign up to the GIA.

Fonterra re-launches RD1 FONTERRA LAUNCHED its first Farm Source hub in Methven last week.

Its subsidiary RD1 is now called Farm Source and its 67 stores will be turned into hubs over the next two years.

Fonterra chair John Wilson says the co-op is building four new Farm Source stores; the Methven hub is the first.

“Each of the three new stores will be a Farm Source hub with new livery; the other stores will be upgraded as part of normal refur-

bishment,” he says.

“All stores have started offering Farm Source loyalty cards and discounts, but most farmers will still be walking into orange stores for some time.”

Fonterra tankers will also be rebranded in regional colours as part of a normal fleet upgrade.

About 50 Fonterra farmers attended a shareholder meeting with chief executive Theo Spierings and Wilson at Farm Source Methven before the launch.

Wilson says Farm Source will allow the co-op to re-engage with its farmer shareholders.

“When Fonterra was formed we centralised; it was important to centralise at that stage. Now three years into our strategy refresh the board has been able to rethink how we can re-engage with our farmers.”

Apart from offering discounts at its stores, Farm Source is also offering loyalty rewards. And each hub will offer meeting rooms for farmers.

– Re-branding controversy – p 9

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RURAL NEWS // OCTOBER 7, 2014

NEWS 13

Marginal milk unlikely to turn a profit SU DES H K I SSU N sudeshk@ruralnews.co.nz

DAIRY FARMERS should think twice before going for ‘marginal milk’ this season, says DairyNZ. Marginal milk (produced outside the core milking season) will be costly as it requires more feed inputs.

Fonterra last month revised the 2014-15 milk payout to $5.30/kgMS plus a 25-35c dividend range; the payout is facing further downward pressure from last week’s GDT results, which saw prices tumble 7.3%.

DairyNZ general manager R&D David McCall says farmers should dryoff cows rather than prolonging milking; milk production picks up from August, peaks in mid-October then tapers off in January.

“Farmers must take a hard look at marginal milk; more inputs are needed to produce it,” McCall told Rural News.

“For some farmers marginal milk will end up as a marginal cost rather than a marginal benefit.”

ASB economist Chris TennentBrown doesn’t expect a rush to buy extra feed to prolong milking as happened last season; those thinking

about converting to dairying will also be thinking twice.

He says most farmers will be having a good look at their budgets. “There will be very little wriggle room in the budget.”

DairyNZ says average working expenses on a dairy farm are $4.50/ kgMS plus interest costs. McCall says with the $5.30/kgMS milk price, 25% of farmers may have difficulty meeting their farm working expenses and interest payments.

DairyNZ’s chief concern is with the difficulty farmers will have in maintaining profit if the milk prices remain low for the 2015-16 season.

McCall says last season’s high milk prices will result in a substantial deferred payment to farmers during the 2014-15 season, which will bolster low milk prices this season.

“We expect farmers to make a determined effort to control farm working expenses this season – on average reducing their budgeted expenses by about 40c/kgMS to $4/kgMS. That will affect regional economies and communities the most. We estimate just over $1 billion less income to farmers, based on comparisons with the 2013-14 season

DairyNZ’s David McCall says farmers should try and dry off cows rather than prolong milking.

production.”

Tennent-Brown says most farmers’ bank accounts “will be quite flush” with last season’s record payout. The final ‘washdown’ payment from Fonterra is

also likely to end up in the accounts.

“It will be more a case of using last season’s payout to smooth out through this season,” he said.

ASB last month revised its forecast

payout to $5.30/kgMS and warns it could drop further.

Tennent-Brown says last week’s 7.3% drop in the GDT average price index will put more downward pressure. “We were hoping to see prices stabilise or even bounce back. Right now, they have to come back a long way to even achieve a $5.30 payout.” At current GDT prices the payout would be below $5, ASB says.

Federated Farmers Dairy chairman Andrew Hoggard says farmers will be preparing for an austere 2014-15 season.

“There’s no way to dress this up as anything but a kick in the guts,” says Hoggard. “This auction result brings the chickens roosting in eastern Ukraine home to us onfarm. Dislocated European milk has put a sinking lid on global dairy prices.

“Unlike most of our competitors who are subsidised, there’s not one Kiwi farmer looking for a handout. We may not like what prices are doing but we know this is market forces at work and while it often runs in our favour, this season it isn’t.

“We don’t have subsidies, we have bankers, and unlike subsidies you have to pay them back with interest.”

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RURAL NEWS // OCTOBER 7, 2014

14 NEWS

Farming must front-foot public opinion – Landcorp P E T E R BU R K E peterb@ruralnews.co.nz

LANDCORP CHIEF executive Steven Carden says farming is failing to present a positive image of itself and is being left behind in public opinion.

He told the annual conference of the Federation of Maori Authorities that the public is focused on the “perceived negative impacts of farming”. He says the public has lost understanding of what farming is truly about and doesn’t hear its day-to-day success stories.

“Farming has now been captured in the public mind by the ‘dirty dairying’ issue and we have to move the discussion on from that. We cannot deny… nutrient leaching, but the farming sector should tell the public what’s being done and what else needs to be done to fix that rather than tarring the entire industry.”

The sector itself must bear some blame, he said, showing a picture on the ‘Go dairy’ careers website in which a young person is seen in a dirty dairy

shed – an image unattractive to a young person considering a career in dairying.

“It is backward looking and quite extraordinary. We need to do a better job selling farming and communicating what is happening across the board, particularly the scientific work going on in environmental management.”

Environmental issues are major for the public and for farming, Carden says. So Landcorp is working with regional councils on monitoring and mitigation in the areas where it farms.

“We can’t see the business and the environment as a tradeoff. We have to look at ways to incorporate technologies to drive environmental rejuvenation and get a better commercial outcome. That’s fundamentally about lowering the costs associated with farming.”

New Zealand must “look beyond food”, meaning that though food production is important to the economy, there is a limit to how much can be produced here; premiums can be extracted from global markets.

Steven Carden: “Farming is failing to present a positive image of itself.”

“We need to look at other opportunities to leverage our farming footprint into new industries – related food industries or high value-add food products like probiotics and nutraceuticals.

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‘Average’ year LANDCORP IS looking at a “pretty average year” with the drop in the Fonterra payout.

Chief executive Steven Carden says while they can live with the $5.30 payout, “it’s going to put a lot of stress” on the business and demands they “look hard at the entire cost structure for the year”.

“But we are… trying to operate more than just a cyclical year-to-year strategy based on payout prices.

So we have a strategy to implement and we will not be phased by ups and downs. What’s frustrating me is how volatile the pricing is and we want to work with the likes of Fonterra to stabilise milk price mechanisms.”

Carden says 25% of the milk produced on Landcorp farms is sold to Fonterra at a fixed price and this gives the company some protection. The company wants some form of guaranteed price that allows a reasonable return, allowing it to invest proactively without being worried about big swings distracting people from their efforts.

Landcorp’s other farming activities such as sheep, beef and deer buffer the low dairy payout.

RURAL NEWS // OCTOBER 7, 2014

16 NEWS

Fonterra model unlikely for Australia SU D ES H K I SSU N sudeshk@ruralnews.co.nz

DOES THE Australian dairy industry need a ‘national champion’ like Fonterra to pull it out of the doldrums?

Some industry leaders there feel the time has passed for a super dairy co-op; some also caution against getting carried away by the single deskseller concept.

Last month Dairy Aus-

tralia hosted an investment conference in Melbourne in a bid to lure capital inflow onto farms that would eventually lift milk production; many references were made to New Zealand’s success in dairy and Australia’s decline over the last 10 years.

In the late 1990s Australia produced the same amount of milk as New Zealand, now the world’s biggest dairy exporter.

While New Zealand’s dairy industry raced away, Australia’s flagged; its milk production has fallen about 20%.

Burra Foods chief executive Grant Crothers told the conference that the time for a national dairy champion had well and truly passed. The opportunity had been there 20 years ago when farmer co-op Bonlac Foods was formed; the company lost money and was taken over

MG chairman Philip Tracy with Ling Qin at the Dairy Australia Investment Forum.

by Fonterra.

Other dairy processors were also snapped up by foreign buyers – National Foods in 2004

by San Miguel and then in 2007 Kirin Holdings and Warrnambool Cheese and Butter by Saputo this year.

Crothers believes Australian dairy is not structured for a single desk-seller concept. “I think the danger is getting too carried away with the New Zealand model; after farmgate the model is quite different. We’ve got a much bigger domestic market.”

But the Australian dairy industry needs to get its act together.

Crothers says it will take investment in new technology and innovation to find its niche on the world market. “We make up 7% of the world’s trade and we’re the fourth-largest trader; if we don’t get

going Argentina will overtake us and we will drop to fifth.”

Greg McNamara, chairman of Norco Foods, one of the few remaining dairy co-ops in Australia, believes the Australian takeover laws create an unequal footing for local processors. The recent battle for WCB saw two local bidders miss out.

He points out a foreign player could end up creating a national champion. “While this may not be a bad thing for our economy, the national champion may not be Australian-owned so there are challenges for anyone trying to create a national champion.”

Australian Dairy Farmers director Chris Griffin suggested a joint venture between Australian dairy processors instead of a creating a national

SIX KEY PLAYERS ›› Six major processors account for 85% of farmgate milk in Australia. ›› Farmer co-op Murray Goulburn is the largest processor. ›› Four of the processors are foreignowned: Fonterra Australia, Lion, Parmalat and Warrnambool Cheese and Butter. ›› Bega Cheese is a listed processor, jointly owned by farmers, Fonterra (9%) and other investors. ›› The remaining 15% of Australian farmgate production is collected and processed by smaller regional processors.

champion. “A JV could be tailored to give the best returns; processors would invest jointly rather than each one going out on its own with the risk of big capital expenditure.”

Murray Goulburn this year argued for a national champion or supercooperative during its bid for WCB. MG chairman Philip Tracy says a national champion should be to drive efficiency and extract value from the

marketplace. But he also cautioned against comparing the Australia and New Zealand dairy industries.

New Zealand’s dairy industry is a vital part of the economy and is a “huge focus” of the Government. “It is on the front page of the newspapers every day; when something happens involving Fonterra everyone in the economy is engaged. It’s their number one industry.”

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RURAL NEWS // OCTOBER 7, 2014

NEWS 17

Grass guaranteed for SI field days A PIVOT irrigator donated to South Island Agricultural Field Days by Think Water Leeston should guarantee good grass for forage machinery demonstrations come March, say organisers.

The biennial event, historically held at Lincoln, is moving to a new 40ha site at Kirwee and

while title doesn’t transfer until November 1, work has already begun getting it ready.

“We have removed 1.5ha of vineyard, replaced a gorse hedge along the roadway with deer fencing, and all but finalised the site plan,” says SIAFD organising committee chairman Alastair Robinson.

Wool poll closes soon TIME IS running out to vote in the Wool Levy Referendum 2014 and NZ Wool Brokers Association is encouraging every eligible wool grower to vote.

The referendum closes this Friday (Oct 10) and organisers hope for a flurry of voting this week.

About 30% of growers had voted by last Thursday.

“This is an opportunity to have a say on the future of wool in New Zealand and should not be missed,” says Richard Kells, New Zealand Wool Brokers Association chairman. “We are not suggesting how to vote, but that wool growers do vote.”

Kells says the levy will help ensure New Zealand wool is represented internationally. “Currently New Zealand has little or no voice overseas on different lobby groups where oil-based fibres compete against wool.”

Wool needs to be promoted to the right decisionmakers and its market position must be protected and enhanced, he says. “It will also give the industry a united voice with our Government and will ensure research funding is directed to best use.”

Kells says levy money would help ensure New Zealand’s wool industry can speak for itself.

Farmers should be influenced by the commercial outcomes and a charter that would guide the direction of levy spending. The money would be spent to support and enhance communication, education and innovation in the wool industry. The new industry body would be strictly governed and use of funds would be robustly measured.

Use of the levy money would be transparent and farmers would clearly see how their money was being spent, Kells says.

Sandra Faulkner, Wool Levy Group chair, says primary producers don’t often get a direct say in the influences that affect their businesses; this is one of those opportunities.

She says woolgrowers are losing ground without industry support and need to understand that opportunities are available, but only if they choose to collectively invest in the projects that would take the industry to where it needs to be. Information and transparency are vital.

“A common theme I have heard from retailers is a fundamental lack of understanding among their consumers about what wool is and where it comes from. Some consumers think wool production is like the fur trade….

“There are commercial and grower entities out in the market right now putting these education programmes together; with strategic, carefully costed initiatives these programmes could be expanded.”

Farmers can vote online (www.votewool.co.nz), by fax or post. Phone 0508 666 002 tollfree or email elections@electionz.com for further information.

Think Water Leeston hopes the 20-year commitment to supply, install and maintain an irrigator on the site should prove a win-win.

“It will showcase the latest technology and we’ll be able to upgrade it as time goes on,” says Think Water Leeston’s Sam Broomhall.

SIAFD organising committee chair Alastair Robinson (left) thanks Think Water Leeston’s Sam Broomhall for donating a centre pivot to irrigate the new site.

The initial installation will be a half-circle centre pivot covering 8ha which

Broomhall believes will attract strong interest due to Central Plains Water

Scheme coming into the area.

Robinson says the pivot will be installed by December 19 with water coming from site neighbours Don and Tony Redman.

“Unfortunately, given the tight timeframe, this time we will only be able to have irrigated grass for the machinery demon-

strations. In future we will have different crops such as fodder beet and maize available for harvest demonstrations.”

ITM Darfield has provided a shed for SIAFD’s gear on-site, another example of the strong support SIAFD’s had from the industry during the move, says Robinson.

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RURAL NEWS // OCTOBER 7, 2014

18 NEWS

Formula makers give tick to new export rules SU DES H K I SSU N sudeshk@ruralnews.co.nz

INFANT FORMULA exporters and manufacturers are backing new regu-

lations proposed by the government.

A spokesman for MPI says 20 submissions were received; most stakeholders broadly support the

proposals on minimum export labelling, export requirements and a manufacturing standard.

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portive of the proposals in principle, with comments focusing on the detail and implementation of the draft standards,” MPI says.

MPI will update the regulations and discuss the proposed final versions with industry working groups that have helped develop the standards. A transition period will be provided to enable businesses to understand and adopt any new requirements.

The MPI spokesman says it is seeking feedback from industry on appropriate transition times.

“During this transition period, MPI will work with industry to implement new requirements and processes.”

Auckland infant formula manufacturer and exporter GMP Dairy welcomes the proposed changes. GMP is one of a handful of New Zealand manufacturers approved to export infant formula to China; the company was the only one to clear the initial Chinese audit. GMP deputy general manager Ravinesh Kumaran says the proposed changes will improve our standards further.

“GMP has voluntarily adopted pharmaceutical standards and we have been audited and received HACCP and GMP (Good

Manufacturing Practices) certification in addition to RMP (Risk Management Program). Our factory and in particular the building, machinery, layout, people, documentation, validation and traceability systems have been continuously developed over the last few years and are based on pharmaceutical standards.

“While we don’t want MPI to make pharmaceutical standards compulsory, lifting the standards is good for the industry.”

Kumaran points out that most of MPI’s proposals are already implemented at GMP. “They are a part of our standard operating procedures.”

MPI agrees the proposals are intended to fine tune our existing system to take account of the rapid growth in infant formula manufacturing and exporting. They consolidate requirements already in place and set out new provisions to strengthen requirements for infant formula exporters.

The proposed infant formula manufacturing standard aims to reduce variation in the application of risk management measures by manufacturers.

“MPI considers most manufacturers would already substantially comply with the proposed standard,” the spokesman says.

The changes will also boost traceability which, for regulatory assurance and recall purposes, is already provided through the dairy supply chain in New Zealand.

However, there are a few markets, such as Hong Kong, that do not require official government assurances for infant formula exports and the proposed changes will ensure that MPI has comprehensive information about these exports.

MPI says the proposals include a requirement for export declarations on infant formula destined for those markets. “This will enable MPI to hold information about all infant formula products exported from New Zealand and the businesses that are involved in the export of those products.

“The information can be used for compliance monitoring and to speed up response times in the event of product withdrawals and recalls that affect export products to those markets. This also supports New Zealand’s official assurance framework by enabling MPI to, among other things, respond to overseas regulator requests for information about New Zealand products that may enter their market through another market.”

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RURAL NEWS // OCTOBER 7, 2014

NEWS 19

Investors could fund Fonterra’s growth FONTERRA SAYS its proposed equity partners fund will be another tool offering farmers the means of growing milk supply.

The co-op’s Farm Source programme, launched last week, lists five ways of helping farmers to boost production; the equity partners fund is one of them.

The co-op has begun talking to investors and is encouraged by the response says chairman John Wilson. Investors’ funds would provide long-term equity for new and developing farmers in New Zealand and Australia.

But Wilson told Rural News a lot of water will have to flow under the bridge before the fund is set up – a prospectus for capital raising, and independent

consultation by investors, farmers and the financial market authority.

More details will be announced at the annual meeting in November about the size of the fund and dividend provisions.

Fonterra says the fund would invest at farm level to support farmers to grow production and manage volatility, while meeting environmental and other requirements.

“However, the fund would only proceed if it meets these objectives and enables our farmers to retain control of their futures.”

Wilson says the fund is one offering “in a wider conversation on more flexibility for our farmers”.

Fonterra’s farmers are required to hold one share for every kg of milk solids supplied each season; the rise in Fonterra share value is making it hard for new

and developing farmers to ‘share up’. The co-op allows farmers to spread their share buying over three to 10 years. And it is proposing to issue farmers shares in lieu of a cash dividend.

A guaranteed milk price is another option the co-op offers to farmers, giving them

John Wilson says Fonterra is encouraged by investor responses thus far.

certainty about a portion of their income.

Wilson says the measures address farmers’ concerns about their ability to share up for new milk.

“We’re able to use our scale and collective strength to help, even if it’s to a small group of farmers.”

Wilson emphasises that the proposed equity fund would operate at arm’s length from the co-op.

“Fonterra will be an intermediary; we will help set up a fund where investors will put their money to take equity participation with our farmers. It will

be at arm’s length and Fonterra will set it up with its own governance structure.”

Wilson acknowledges there are similar equity funds in operation. But having a fund alongside Fonterra will give farmers certainty, he says. @rural_news facebook.com/ruralnews

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RURAL NEWS // OCTOBER 7, 2014

20 NEWS

Kumara needs to sing its praises P E T E R BU R K E peterb@ruralnews.co.nz

MAORI ECONOMIC development isn’t just a Maori thing, it’s a New Zealand thing.

That’s the view of Traci Houpapa, chair of the Federation of Maori Authorities (FoMA), acting chair of Landcorp and a director of several other businesses.

FoMA is a national advocacy group representing 150 Maori groups in 11 regions, with a combined asset base of $8 billion in agriculture, forestry, fisheries, energy, property and overseas

investments.

Houpapa says there is a perception FoMA is a just a Maori thing, but in fact Maori contribute much to the national and regional economies. For example, Paraninihi ki Waitotara (PKW) is the largest supplier of milk to Fonterra in Taranaki; and Atihau Whanganui, farming at least 100,000 plus stock units, looms large in the economy of the Wanganui region.

Maori need to tell their story, Houpapa says.

“These are huge businesses and we as Maori need to profile our success and become more engaged with main-

Landcorp keen STEVEN CARDEN wants his company to work more with Maori for their mutual benefit.

He told the Federation of Maori Authorities annual conference that he’d like to explore opportunities to apply Landcorp-developed techniques that could help Maori improve their farm productivity.

“We can also look to work with large scale Maori farmers in contract opportunities offshore such as integrated supply chains, and in seeing how farming needs to work from an environmental and social perspective.”

Carden says Landcorp and Maori have in common the benefit of “scale”, allowing innovation.

stream New Zealand,” she told Rural News. “What FoMA is saying is that if you are Maori in business then you’re contributing to the national GDP. The question is how do we mainstream and promote Maori agribusiness?”

Houpapa believes Maori need to be more open about what they do and engage more with media to get their message across. She says FoMA has been going 28 years yet only now are people starting to recognise its existence.

At the recent FoMA conference one delegate made the observation that the “kumara should not say how sweet it is” – meaning that Maori should remain quiet about their success.

However, Houpapa is not so sure about this.

“Maori… need to be innovative… in business, thinking and culture. There are times when it’s appropriate for the kumara to be quiet and others when it should talk about how wonderful it is.

“There is a time for the kumara to promote, profile and market itself. In some ways, Maori need to get out of their shell and… be more engaged and involved in regional communities.

“PKW is a classic example. It has

FoMA chair Traci Houpapa.

industry relationships with Fonterra and others that focus on business excellence and contribute to the greater good of the community.”

Houpapa says nationwide the Maori asset base is almost $12 billion – two thirds represented in FoMA. She sees her organisation in an excellent position to lead Maori agribusiness and economic development.

Houpapa concedes there is huge challenge in getting young people to make agriculture their career choice.

“People have always thought of agribusiness as farming, but farms are just the centre point or hub of the whole agribusiness sector. We need to think wider than just farming because there are endless career opportunities out there,” she says.

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RURAL NEWS // OCTOBER 7, 2014

NEWS 21

A lesson in how not to communicate There’s a Gaucho treated seed, and then there’s the rest!

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THE SAGA of Fonterra’s WPC80 botulism scare last year holds lessons in communication and management for the whole food sector, say marketing and communications academics.

Dr Chris Galloway and Dr Doug Ashwell, Massey University, are studying the timeline of events and consumer perceptions of that timeline. While their paper is a work in progress, they recently presented preliminary findings at a Society for Risk Analysis conference in Palmerston North.

“It’s understandable that in a complex company like Fonterra it can take time to establish if a risk exists or not, but one thing clear last year was that consumers and other stakeholders sometimes have a different view as to the acceptability of that timeline,” Galloway told Rural News after the conference.

“There’s a feeling among consumers that they have the right to know if there could be a safety risk as soon as the producer knows there could be a risk.

“Organisations that might have to handle such food safety issues in future should think about the consumer perception of the time it takes to test for a potential problem and have a strategy in place to manage that [timeline] risk, with a suitable narrative for the timeline.”

From a business perspective, a failure to effectively manage communication of such an issue is a risk to the company’s reputation and future business, so a communications strategy should be developed at the governance level, says Galloway.

However, he acknowledges that systems must be in place all the way down to the shop floor to ensure effective and timely internal com-

Massey University’s Chris Galloway.

“Best practice in other crisis communication studies is that a company should be prompt in revealing an issue to any affected stakeholders. ‘Tell it early, tell it yourself’ is the mantra.”

Galloway notes Fonterra had a crisis management plan, but an independent report to the Fonterra board stated the plan was not sufficient for the scale of the crisis the company faced.

However, he stresses the risk analysis conference presentation titled ‘A formula for confusion: New Zealand’s 2013 botulism botch-up’, and the paper they are working on, are not “having a go” at Fonterra.

“We are seeking to pull out the lessons for future approaches to such issues not only in Fonterra, but in other food producers.”

For a country like New Zealand, with so much of the economy dependent on food exports, the lessons are of national importance, he adds.

munication should a food safety issue arise. Without that, the communication strategy at senior management and board level cannot be deployed.

Galloway notes there was also confusion and delayed communication with other parties, such as ministry and government officials, during the WPC80 scare.

“In any crisis management situation there is a crisis of information. Decisions have to be made in the absence of complete data. How that is communicated to the public is important.”

Some consumers and media organisations expect instant answers to every question but “not everything consumers expect is reasonable,” says Galloway.

The nature of science means some tests take time. A company having to do such tests must be able to explain to the public why the answers are not yet available and what steps have been taken in the meantime.

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RURAL NEWS // OCTOBER 7, 2014

22 NEWS

Be quick off the Blocks in the race to 40kg.

Where’s the milk? Oz dairy processors ask

plan now.

SUDESH KISSUN sudeshk@ruralnews.co.nz

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AUSTRALIAN DAIRY farmers are ready to embrace investors as they face calls from processors to lift milk supply.

While the Australian processors have spent A$1 billion in technology and plant upgrades over the last two years, there has been little investment on-farm. (Dairy Australia last month held a oneday forum in Melbourne to discuss investment opportunities in Australian farms.)

Dairy Australia chief executive Ian Halliday wants investors in the “pre-farmgate area” rather than processing.

“Processors have been spending money on new technologies and plant upgrades,” Halliday told Rural News. “Processors are saying to us, ‘we

can go and seek capital for the processing sector but the challenge is how we follow up that investment… with milk.”

He says capital inflow into farms is vital to lift the national milk production; in 2000 Australia produced 11b L of milk; last year it produced 9.3 billion L. Halliday says farmers no longer see bank debt as the only means of raising capital; they are turning to other sources. “Sharefarming, leasing and equity

AUSTRALIAN DAIRY has hopefully “turned the corner” and is poised to lift production, says Ian Halliday.

Milk growth is forecast at 2% but Dairy Australia hopes to lift growth up to 5%, but this will come only from profitable dairy farmers.

“We are forecasting 2% growth but we are looking at ways of accelerating growth,” he told Rural News.

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Zealand counterparts for the investor’s dollar. With strong world demand for dairy, there is room for everybody.

“It is how we all can take part in the growth of dairy on a global basis; all dairy regions are looking at Asia, and Australia and New Zealand are no different.”

Halliday says Australian dairy has some competitive strength over other producers, e.g. “a perfect mix” between domestic market supply and exports.

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growth on an annualised basis, if we compare against New Zealand where there has been an average 4-5% growth last decade.

“About 50% of this growth in New Zealand has come through conversions in the South Island; we are not going to see that overnight but we would like to lift growth to between 3-5%.”

Halliday believes good conditions will lift growth this season. “We had the drought, GFC, floods in some regions and the high Australian dollar associated with the resources boom that caused our production to slump. Hopefully we have turned the corner.”

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our milk staying for consumption here at home, we benefit from some insulation from global volatility, unlike, say, New Zealand where 95% of their produce heads off to the international marketplace.

“So despite global volatility now, the long term opportunity of investment in our dairy farms remains compelling.”

Halliday says diversification of sales channels also reduces risk. “In an overseas market where you’re selling products in one channel and you have a quality issue or supply issue, then overnight the channel can close down.”

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sharing models are also now increasing in prevalence. They realise the equity stake an investor takes in an existing farm business may allow for a smooth succession plan – to pay the parents out their share of the business and partner the next generation.

“An optimal outcome would see corporate investors thinking more like a top quartile dairy farmer in terms of production systems, growing technical skills, equity levels, asset price cycles and the like.”

Like New Zealand, the Australian dairy sector is attracting worldwide interest, not ably from China.

Halliday says it doesn’t see Australian farmers competing with their New

RURAL NEWS // OCTOBER 7, 2014

NEWS 23

Young auctioneers to find voice at show YOUNG AUCTIONEERS are being urged to enter the third Heartland Bank Young Auctioneers Competition on November 14 at the Canterbury A&P Show.

The stakes are high: a prize trip to the Sydney Royal Easter Show is up for grabs.

Last year’s winner Chris Hay, from NZ Farm-

ers Livestock, had been auctioneering only two years but impressed the judges with his knowledge and patter.

The competition showcases and develops young auctioneers and raises the overall standard of auctioneering.

During the judging, which includes a test of auction rules and a mock

Ag a winner RETIRING BALLANCE chief executive Larry Bilodeau has questioned calls for New Zealand’s economy to be less reliant on agriculture.

“Those who say we should minimise our reliance on agriculture don’t realise there is no viable alternative. We should certainly be diversifying our economy, especially in innovative areas like technology, but growth does not have to be an either/or question,” he told the co-operative’s annual meeting in Queenstown recently.

“We should be focused on good growth in agricultural exports and, at the same time, performance from other more diverse sectors.”

Bilodeau said the food and forestry sectors generated 70% of New Zealand’s merchandise export earnings and about 12% of GDP. The Ministry for Primary Industries’ latest estimates were that export values of agriculture, fisheries and forestry will reach $40.7 billion by June 2018 – a rise of 8% since June this year.

“It seems to me food is still a good sector to rely on for economic growth.”

Bilodeau said it was obvious major opportunities existed for agricultural products as demand grew in markets around the world.

“Our challenge is to meet that demand with more high quality safe food produced sustainably. Ballance will always be part of that effort. We are working hard for our farmers to stay one step ahead of the evolving needs of agriculture.”

Lobby group opposes council’s GMO ban NZBIO SAYS it has filed a submission in response to the Far North District’s plan to regulate the use of genetically modified microorganisms.

NZBIO is the industry association for New Zealand’s bioscience community. The lobby describes its role as “helping to advance New Zealand’s economic growth by assisting companies developing high value businesses from bioscience”. It says while its members have a variety of interests, NZBIO has no direct financial interests in commercialised genetically modified organisms (GMOs).

Its submission to the Far North Council NZBIO states: “We are disappointed to see that more and more local bodies are trying to exercise restrictive powers under the HSNO Act and we are taking proactive steps to oppose these actions on behalf of our members.

“We are currently actively engaged with Auckland Regional Council in response to the proposed restrictive provisions in the region’s unitary plan, and have taken similar steps in other regions. We continue to monitor the situation in this area and will continue to bring you the latest developments.”

auction, each entrant will be required to sell three lots of heifers/bulls. They will be judged on voice, diction, manner and values. And entrants will be interviewed for their communication skills and knowledge of terms and conditions for livestock auctioneering.

Entrants will compete for the New Zealand Stock

& Station Agents’ Association (NZSSAA) Young Auctioneers Trophy, $2000 in travel from Heartland Bank to enable the winner to attend the Young Auctioneers Competition in Australia and a $500 Swanndri clothing voucher.

Entries are open to employees of members or affiliate members of

the NZSSAA; competitors must be aged under 30 at November 1. Entries close Thursday October 30.

The Canterbury A&P Show will be held November 12-14 at Canterbury Agricultural Park, Christchurch. www.theshow.co.nz 2013 Young Auctioneer winner – Chris Hay.

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RURAL NEWS // OCTOBER 7, 2014

24 NEWS

PKW weathers payout storm P E T E R BU R K E peterb@ruralnews.co.nz

FONTERRA’S LARGEST supplier of milk in Taranaki, Paraninihi ki Waitotara (PKW), says it anticipated a drop in the farmgate milk price and planned for it.

PKW is a large Maori incorporation producing about 3m kg of milksolids annually.

Chief executive Dion Tuuta told Rural News the $5.30 payout is prompting it to reorganise some expenditure originally budgeted for this year.

PKW is in much the same position as any other dairy farmer, he says, but its other businesses cushioned it somewhat against the drop.

“We have diversified, so with our livestock company we may offset what’s happening with the milk price drop. At

a group level, because we have other income streams such as lobster and commercial property rentals, that will help cushion the blow somewhat. But it is going to be a tough year for the dairy farming business.”

Tuuta says coincidently before the milk price dropped, PKW was easing back on development.

“Last year we spent about $26 million on land and development including two cow sheds, a Herd Home and that sort of thing. The next two or three years will see a substantial easing of that.

If things remain tough for the next 18 months that could put other people under pressure and could raise opportunities we might want to look at.”

Tuuta says PKW is strong financially and does not have high debt gearing.

But it is interested in “free cashflows” and prefers not to be complacent with “really low gearing”.

“You have to [get] the best return you can out of your assets. The other thing is the Crafar issue, a salutatory lesson to all farmers: gearing up for the sake of gearing up. As Maori can’t sell the land to pay down debt we have to be sensible and take a long term approach.”

Tuuta says the $5.30 payout will be hard for many farmers and PKW wouldn’t want to see it drop much further. But he says such situations provide an opportunity to go back and re-examine systems for best return.

Higher prices in recent years may have allowed some slack to creep in; now hard times will force them back to basics.

“This may see people return to a pasture-based

PKW chief executive Dion Tuuta.

system [and not]… buy in supplementary feed. The concern for every farmer, including PKW, is that when milk prices rise, so do farm input costs.

“Now the question is, are those input prices going to drop back as well?

History suggests probably not. So service providers must remember farming is a long-term game and

if farmers suffer a price reduction it’s probably unsustainable for services and input prices to remain high.”

Tuuta says farm service providers need to share some of the short term financial pain if they want to be in business long term. @rural_news

Teachers’ ag day out gains momentum SECONDARY TEACHERS from Wellington region are queueing for a mid-November one-day outing to look at farming career opportunities.

To date at least 40 careers advisors, science and technology teachers had registered to view examples of science and technology in horticulture, and dairying, sheep and beef farming in Manawatu. They will also visit a research facility in Palmerston North.

Rural News reporter Peter Burke is the instigator, seeking to get teachers in the city better informed about careers in agribusiness.

Says Burke, “For too long agriculture has not been a preferred career choice because young people have heard agriculture is a place for the less bright. That is completely wrong.

“Agriculture offers exciting, well paid, long term career opportunities. This trip is designed to support other initiatives to get a paradigm shift in thinking about agriculture.”

This is the second such trip and the teachers’ responses suggest the word has got around, Burke says.

Other sponsors are Massey and Lincoln universities, AgResearch, Beef + Lamb NZ and Get Ahead.

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RURAL NEWS // OCTOBER 7, 2014

NEWS 25

Dairy woman makes her move to parliament PA M T I PA pamelat@ruralnews.co.nz

BARBARA KURIGER says while it was always on the cards she would make it as MP for the safe seat of Taranaki-King Country, now being part of the government is “pretty exciting”.

She is “absolutely happy” with the result for National because it means the government can move forward.

“It’s a well earned result for National. I know everyone in the party from the Prime Minister to the Young Nats to the volunteers in all the regions worked really hard and it’s a great result.”

Walking into the House for the first time know-

ing she was part of it was “actually quite fun”. “Yesterday we sat in the House and did some training. It is such an honour and I am so looking forward to it.”

Her first priority is to get her electorate office organised and flowing so she can serve the electorate well.

“I want to accessible, and out and about. In a big electorate 4.5 hours long and 2.5 hours wide I am working through the logistics of how I can best to do that.”

Kuriger says she has resigned from 10 trusts and boards representing rural and regional NZ. “While my role has changed my purpose is still the same: I am there for rural and regional New

Zealand.”

Winning the Dairy Women of the Year in 2012, with the opportunity to do the Global Women leadership programme

sponsored by Fonterra, added to her skills and gave her the confidence and courage to take on the big role she now has.

Nominations are now

open for the Dairy Women of the Year award. “I would encourage people to take the next step for them, whatever that might be.”

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Ups, downs we’ve seen before THE PAYOUT drop will have implications for the country in dollar terms but it is a dairy company issue, says Kuriger.

“It is one of those things we have seen before; we are living in a volatile market.

“It’s disappointing for farmers at the moment but there’s no doubt with two billion more people to feed in the world in the next 30-40 years, we’re in the business of protein so [the payout] will come up. But it will have ups and downs.”

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RURAL NEWS // OCTOBER 7, 2014

26 NEWS

No ‘Little’ challenge for rural mayor SA RA H C H A RT E R IS

THROWING HIS hat into the realm of local politics has proven the ultimate challenge for Wairoa mayor Craig Little.

The Ohuka sheep and beef farmer is set to mark his first year in the top job and says the past 12 months have been a juggle.

Little has continued to run the 460ha hill country farming operation that he owns with his wife Jan – started by his grandfather George in the early 1920s and developed and intensified by his father Allan in the 1970-80s. Doing all the work themselves is an economydriven approach, but one that has been tested by the commitments of Little’s new role.

“I am so lucky to have Jan as she is capable on the farm; we are in an age when you can’t always justify paying for outside help.

“But it helps having my father as well as great neighbours on hand. I never anticipated how big the mayoral role would be, even though I was a council-

lor during the term before; just because you are the mayor of a small town, it doesn’t mean the role is less busy.”

Little never intended to stand for the mayoralty, despite a deep passion for the community he was raised in.

But he was motivated by a desire to see a change in direction, at a time when the district explored one of its biggest decisions yet.

“Wairoa is debating the pros and cons of amalgamating with Hawke’s Bay so I knew it was a critical time when I decided to stand for mayor,” Little explains. “But I had just served a term on council and I was passionate about Wairoa’s future and it not becoming a dying community. It is a difficult and uncertain time, adding extra challenges to the role.”

And when he swaps back from a suit and tie to his shorts and Redbands, the challenge of farming is just as great.

“Sheep and beef farming is unpredictable and you could say times are tough at the moment,” he adds. “This is good country to be farming, but I am

concerned about the future of sheep and beef.

“There is a huge divide between us and other farming such as dairying and you hear people talking farming up but I don’t know what they are talking about. Beef is reasonably strong but it needs to be stronger and wool can still be pathetic – it barely covers the cost of shearing.”

Little hopes recent predictions by Beef + Lamb New Zealand for the 201415 season come to fruition as it is currently “extremely difficult for farms to get ahead that are servicing mortgages and debt”.

B+LNZ believes favourable climate conditions so far, coupled with expected higher product prices and a more export-friendly exchange rate, will translate to improved returns for the country’s sheep and beef farmers for the 2014-15 season.

He is also concerned that little mention was made of farming during the election campaign.

“There was no talk of the differ-

Jan and Craig Little.

ent types of farming and what would be done to assist farmers,” Little adds.

“This concerns me as farming is the backbone of the country, contributing so much to the economy. It angers me that this was not part of any party’s policies.”

Despite the struggles, Little says his district continues to provide the right environment for sheep and beef farming, with good-quality country and affordable land. He knows of new people buying land and setting up oper-

ations in the district, many arriving in a good position having sold farms in higher priced regions.

It is these new people in his community, and the ones that have called it home for generations, that Little says he will continue to work hard for until the time is right to step back.

But at the back of his mind will always be the success of his family legacy – the place where he grew up and where he and Jan have raised their four children.

RURAL NEWS // OCTOBER 7, 2014

NEWS 27

New MP wants to add value to primary sector PA M T I PA pamelat@ruralnews.co.nz

REGIONAL DEVELOPMENT isn’t about building a gumboot factory but adding value and volume in our primary industries, says new National MP for Kaikoura Stuart Smith.

“It is about making things easier for exporters,” Smith told Rural News. “And having infrastructure in place to allow businesses to make decisions… that will bring more value to the regions.

Regional New Zealand creates the wealth New Zealand relies on.

“It’s not about building a gumboot factory or those sorts of things; it’s about getting infrastructure right.”

A grape grower and former chairman of the New Zealand Winegrowers Association, he says the wine industry is a prime example of added value, but there’s potential right across the primary sector.

Examples in his own electorate of the right infrastructure to help business and primary production include the Hurunui water project which is consented and when underway will create 3000 jobs and add $470m to GDP, allowing in particular for dairy expansion.

He is also keen to see a coastal feeder service out of Picton. Many goods exported out of his Kaik-

oura electorate are transported over the hill to Nelson on a road expensive to maintain. He has worked on this issue since well before standing for Parliament. “We can save upwards of $1000 a container by shipping out of Picton rather than sending it over the hill to Nelson.

“That sort of thing captures more value within a region; regional economic development is about those sorts of things.”

He wants easier launching of projects such as the Hurunui water project or the Flaxbourne irrigation scheme in the northern part of this electorate. Regional development issues such as these would be echoed around the country.

“Business will take care of business if it’s sent the right signals and has the right infrastructure in place to allow other projects to get underway.”

But his first priority as a new MP will be to see how things operate in Parliament and electorate offices. He is undergoing induction. “As one of my supporters described it, I’m in MP kindy at the moment.”

The National victory is a “pretty resounding message from the electorate”.

“There have been a lot of distractions but on the day the electorate clearly voted for National and its policies of continuing the economic gains we’ve

worked so hard on in the last six years, enabling National to create more jobs, get people off welfare, etc.” The National Government will be able to “lock in” some of the

gains.

Smith replaced three term MP Colin King as National’s candidate for Kaikoura earlier this year and was elected with an 11,510 majority. A fourth

generation South Islander, he lives at Blenheim on the Smith-Small family-owned vineyard Fairhill Downs.

He is married to Julie and is father to three teenage children.

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RURAL NEWS // OCTOBER 7, 2014

28 NEWS

US dairy farmers agree to lift water quality US DAIRY farmers have signed an agreement to lift water quality on farms.

A pact between the National Association of Clean Water Agencies (NACWA) and the National Milk Producers Federation (NMPF) deals with watershed-level water quality improvements.

This strengthens ties between urban and rural sectors to improve local water quality and the environment; clean water agencies and nearby dairy farms will work together on projects.

The parties could cooperate in building anaerobic digesters that use manure to generate

W E’ VE

electricity and reduce methane emissions, and in using nutrient separation technologies and land management practices such as planting grass buffers near streams and using no-till planting in fields.

Both parties say increased collaboration among the clean water and

dairy sectors offers many opportunities to improve the environment.

NMPF president and chief executive Jim Mulhern says it is more cost effective to clean-up water upstream than downstream. “This is why we’re collaborating… [to encourage] best practices in order to maintain a

quality water supply.”

The organisations plan to work together to educate policymakers and regulators on the environmental and economic effects of their collaboration.

“We can work together to pilot innovative technologies to advance our shared water quality

and environmental goals,” says Ken Kopocis, deputy assistant administrator for water at the US Environmental Protection Agency.

“EPA looks forward to working with NACWA, NMPF and their partners to further these efforts.”

NACWA and NMPF will also work together to leverage federal interest from Congress, via the Farm Bill and similar programmes, to facilitate watershedlevel partnerships and further develop anaerobic digestion capabilities nationwide.

“I applaud NACWA and NMPF for working together to address some of our most critical water quality and conservation challenges.”

Senator Debbie Stabenow (D-MI), chair of the senate agriculture

ADDED

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committee said the issues are “critical to the longterm sustainability of our nation’s resources, and were front and center when we developed the conservation title of the 2014 Farm Bill”.

“In strengthening farm bill conservation programmes, we emphasised the importance of forming unique partnerships and maximising resources to tackle common challenges. Agreements like this reflect that spirit of collaboration and will lay the groundwork for success in ensuring the long-term health and sustainability of our nation’s waters.”

Senator Sherrod Brown (D-OH), a member of the senate agriculture committee, remarked that “we can and must prevent runoff”.

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Andrew Allan, of Ewan Allan Honda, says the criticism of farmers over quad crashes is excessive relative to the high proportion of farmers who own and operate such machines.

The real problem is that operators do not ride them in accordance with safety recommendations, especially on steep terrain. He knows about the high number of recent accidents, but says after reading reports of fatal crashes he sees no reason to alter his view.

When people in large numbers drive vehicles offroad, accidents are bound to happen, Allan says.

He refers to a campaign years ago by Dr Peter Snow (now deceased) to reduce the number of quad accidents. After much research Snow reached the same conclusion, Allan says.

Snow is said to have found that most accidents were caused by inexperienced or reckless operation. And many crashes involved youngsters lacking the strength and skills to ride quads.

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RURAL NEWS // OCTOBER 7, 2014

NEWS 29

Tough guys don’t live too long for three years. This region has the highest number of Maori men in the country and PROSTATE CANCER is a big issue in also includes a large rural population, rural communities and not just because which allowed the researchers to look it is a leading cause of cancer death for at “the influence of geography on cancer care”.

New Zealand men.

“Rural men deal with the realities of The Midlands Study found that rural men are less likely to be tested for fewer GPs per practice and those GPs prostate cancer than urban men. They having a lot more people to look after, so are also less likely to be referred to a when a rural man goes to see his doctor specialist on getting a higher PSA level he’s generally got something urgent to sort out. Those urgent issues usually take in a blood test. priority over tests relating One in 10 Kiwi men to disease prevention. will develop prostate “Rural GP practices cancer: some 3000 Kiwi also tend to have more husbands, sons, fathers, men over the age of 40 on brothers and mates are their books than urban GP diagnosed with prostate practices. When a blood cancer every year. 600 test returns a higher-thanKiwi men die every year of usual PSA level, the study the effects of the disease found that men were less spreading into other likely to be referred to a parts of their bodies – specialist. This may be more than are killed in because of the time and road crashes. Many of distance needed to travel those deaths could have Professor Ross Lawrenson to see a specialist in a been prevented by early major centre or maybe detection and healthy because rural men are more inclined to lifestyles.

If you are a Maori male diagnosed agree to a “let’s wait and see” approach with prostate cancer, you are 72% more using follow-up PSA tests.”

As Blue September draws to a close, likely to die of the disease than are nonMaori, according to the Midlands Study the Prostate Cancer Foundation’s chief commissioned by the Ministry of Health executive Graeme Woodside says it’s and the Health Research Council. This more important than ever for rural men is largely because Maori tend to present over the age of 40 to be proactive about late when the disease has so advanced their health and get tested.

“PSA levels vary from man to man so that there are few treatment options, says Prof Ross Lawrenson, the principal it’s important to get a blood test to know investigator of the Midlands Study. Maori your number to benchmark it, and to be proactive if it starts to rise.” men are also more likely to live rurally.

The foundation recommends men The Midlands Study focussed on people living in the ‘midland cancer have an annual PSA test from the age of region’, i.e. Waikato, Lakes and Bay of 40, and an annual PSA and digital rectal Plenty district health boards in 2010 examination from the age of 50. following a group of men who had been • Professor Ross Lawrenson is assistant dean tested for prostate cancer. The study ran at the Waikato Clinical School of Medicine.

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RURAL NEWS // OCTOBER 7, 2014

30 WORLD

NZ lamb stars in UK stores, upsets local farmers availability and quality together.

“The British weather, our range of land types and diversity of farms allow our supply of high quality lambs to run throughout the year. But the peak of production is during the autumn and early winter months and the trough runs from late winter to late spring.

“This is why New Zealand lamb has for many years complemented our market. They lamb at the opposite time of the year to us and their peak should, in theory, complement our trough.

“But as with strawberries and other foods, new techniques are used to extend seasons. So we are

seeing New Zealand lamb appear on our shelves throughout the year and sadly, for profit reasons alone, some of our main retailers are choosing to sell products they can

make a bigger margin on.

“Once one big retailer does this the others follow like sheep. It is disappointing to see this lack of interest in quality and such a short-sighted approach to

supply chains.”

Stocker also claims retailers give inaccurate information to consumers – telling them they cannot source British lamb at this time of year.

Think local NSA CHIEF executive Phil Stocker says global population growth and climate change will affect buyers and sellers in every nation, including the UK. NSA urges supermarkets to think more about their supply chains and support their domestic market for quality lamb or risk losing supply to growing overseas markets.

Stocker, just home from China, says consumption of lamb is growing there.

“From importing virtually no lamb five years ago, they have quickly become

the world’s largest importer of lamb.

“Their population continues to grow and the scale of movement from a rural (production) to urban (consumption) society is something never before seen in human history.

“If we want to ensure UK consumers retain confidence in our retail structure, then our retailers should do more to establish dedicated and committed supply from our farmers. This really could be a matter of ‘use it or lose it’.”

NZ lamb still gets top billing by UK retailers.

“With the quantity of UK lamb available, the quality at this time of year and new lamb cuts that suit modern recipes, there is little excuse for not seeking out British lamb.”

National Farmers Union is encouraging its members to tweet pictures of retailers failing to give lamb pride of place on their shelves in the peak season.

“Many retailers will openly discuss the issue on

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UK SHEEPFARMERS are unhappy with imported New Zealand lamb getting a higher billing in supermarkets.

They are accusing retailers of promoting New Zealand lamb for a bigger sales margin and misleading consumers.

The National Sheep Association has accused retailers of turning a blind eye to quality UK lamb available at this time of the year.

Most sheep in the UK lamb over a four-month period in the spring and many come to the market between July and December.

NSA chief executive Phil Stocker says the seasonal harvest brings

RURAL NEWS // OCTOBER 7, 2014

WORLD 31

Aussie farm lobbies team up on biosecurity

Onfarm biosecurity the aim of new Australian programme.

A LA N H A R M A N

THREE BIG Australian livestock organisations have pooled A$5 million for a scheme to reduce the risk of an animal disease epidemic sweeping the continent.

The Sheepmeat Council of Australia, WoolProducers Australia and the Cattle Council of Australia spent three years planning the creation of the Livestock Biosecurity Network (LBN), dedicated to biosecurity and animal health.

LBN regional officers across the country will try to provide livestock producers with the tools and useful information to manage disease, pest and weeds on their farms.

LBN will devise ways to talk to the public about animal health, welfare and biosecurity issues.

Regional officer for Victoria, veterinarian Patrick Kluver, says the way to protect sheep flocks from unwanted diseases, pests and weeds is by preparing an effective biosecurity plan. Such a plan should be inexpensive to prepare and implement, and would have immediate payoffs in preventing disease incursions and limiting their spread.

“Sheep diseases reduce productivity, income, access to markets and impact animal health and welfare,” he says. “A nationwide outbreak of foot and mouth disease, for example, could strip A$50 billion from Australia’s livestock industry over 10 years.”

The biggest cost is losing markets.

“Good farm biosecurity goes a long way towards protecting our markets,” Kluver says. “And biosecurity is important for protecting

farm assets. A biosecurity plan costs little but the return is immediate, ongoing and cumulative.”

Through the LBN, livestock producers will be made aware of the importance of animal health, welfare and biosecurity and be alerted to the latest science and legislation relating to their on-farm practices.

At farm level biosecurity involves day-to-day practices to buffer livestock from infectious diseases and encompasses the veterinary, husbandry and management actions for ensuring healthy and well-cared for animals.

“By far, the greatest risk of disease is bringing sheep onto the farm, either by buying sheep or stray sheep entering from a neighbouring property through poor fencing.

“Also, vehicles coming on to your place – shooters, livestock agents or sales people – inadvertently can bring disease with them on their vehicles. That can be easily controlled by having signage saying you’re restricting people and how they move on and off the farm.”

Kluver says an effective biosecurity plan doesn’t have to be complicated if approached in three simple stages: prefarmgate, farmgate and post-farmgate.

The LBN says good biosecurity is essential for all landholders, no matter the size of the property.

“It’s important that small landholders, who may not come from a farming background, understand their responsibilities in biosecurity, livestock identification and ownership,” Western Australia regional officer Megan Harrod says.

R O F G N I T H G P FI HT IS DONE. O T S R E V E THEY’LL NBEET UNTIL THE FIG FODDER

WWW.UNBEETABLES.CO.NZ

BECOME UNBEETABLE AND WIN A TRIP TO THE SYDNEY FILM FESTIVAL

TRACTA52659-B

PHOTO: CARL DAVIES

RURAL NEWS // OCTOBER 7, 2014

BEEF MARKET TRENDS

MARKET SNAPSHOT 







 

 



 

 







































BEEF PRICES NI

LAMB PRICES Change

c/kgCWT

+5

P2 Steer - 300kg



Last Week

2 Wks Ago

Last Year

5.45

5.40

4.60







 











6.38

6.28

5.68

6.36

6.26

5.66

PX - 19.0kg

+10

6.40

6.30

5.70

3.40

PH - 22.0kg

+10

6.41

6.31

5.71

MX1 - 21kg

n/c

3.65

3.65

3.20

YM - 13.5kg

n/c

6.11

6.11

5.56

PM - 16.0kg

n/c

6.11

6.11

5.58

3.15

PX - 19.0kg

n/c

6.11

6.11

5.60

3.35

2.95

PH - 22.0kg

n/c

6.11

6.11

5.61

5.00

4.45

n/c

3.03

3.03

3.20

P2 Cow - 230kg

+5

4.35

4.30

M Cow - 200kg

+5

4.35

4.30

Local Trade - 230kg

+5

5.45

5.40

4.60

Mutton

P2 Steer - 300kg

+5

5.05

5.00

4.35

SI Lamb

M2 Bull - 300kg

+5

4.75

4.70

4.15

P2 Cow - 230kg

n/c

3.40

3.40

M Cow - 200kg

n/c

3.35

Local Trade - 230kg

n/c

5.00

Mutton

MX1 - 21kg

Slaughter 















  

    



 



Last Year

3.50

4.30





2 Wks Ago

+10

5.40





+10

YM - 13.5kg

Last Week

PM - 16.0kg

5.45





NI Lamb

+5

Slaughter



Change

c/kgCWT

M2 Bull - 300kg

SI



LAMB MARKET TRENDS





















 







 

 







 

























Change













Export Market Demand



Change

  













 





2 Wks Ago

Last Year

5yr Ave

n/c

3.17

3.17

2.00

1.80

NZ$/kg

+23

8.82

8.59

5.32

5.11

 















Procurement Indicator Change

  



2.16

2.15

1.82

1.84

NZ$/kg

+15

8.65

8.50

8.18

8.53

      

 















2Wks Ago

3 Wks Ago





-1%

74.0%

74.7%

70.9%

73.3%

% Returned SI

-1%

70.9%

72.1%

69.7%

74.3%



2Wks Ago

3 Wks Ago

Last Year

5yr Ave

% Returned NI

-0%

61.2%

61.7%

81.73%

79.3%

% Returned SI

+2%

53.3%

51.2%

78.0%

74.3%





Last Year 5yr Ave

% Returned NI

   





Last Year 5yr Ave

+1

Change





2 Wks Ago



UK Leg £/lb

Procurement Indicator

 

Last Week













Last Week

95CL US$/lb

       





Export Market Demand



  







 













 



 













 











 















 







 





































Venison Prices









Change



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

Last Week

2 Wks Ago

Last Year 5yr Ave

NI Stag - 60kg

+30

7.55

7.25

7.15

7.98

SI Stag - 60kg

+20

7.85

7.65

7.50

8.35



Test-a-bull, move-a-bull, trace-a-bull Protect your business – make sure your service bulls are TB tested and their movements are recorded in NAIT.

www.nait.co.nz | info@nait.co.nz | 0800 624 843

RURAL NEWS // OCTOBER 7, 2014

NEWS

PRICE WATCH



BEEF

WOOL PRICE WATCH Change

24-Sep

18-Sep

Last Year

Coarse Xbred Indic.

+7

5.44

5.37

5.11

Fine Xbred Indicator

+9

5.78

5.69

5.32

Lamb Indicator

-

-

-

-

Mid Micron Indic.

-

7.48

-

7.55

Supply of killable cattle very tight

Indicators in NZ$

Supply of killable cattle in the NI has come close to drying up in recent weeks, with some suggesting supply, particularly of prime beef, has never been so tight. Competition between processors is strong as orders, both export and domestic, struggle to be filled.

Slaughter prices have resultingly firmed week on week to unprecedented highs. In the SI a similar shortage of supply of prime beef has local trade and export continuing a procurement battle, and prices for both are around the $5/kg level. SI bull prices are reaching unheard of levels as firm fixed price contracts place pressure on spot prices to match. SI slaughter prices are between 30-60cpk below NI prices.

US imported beef prices ease back Imported beef prices in the US may may have reached their peak last week and in the 90CL category even started to retreat.

Domestic fresh 90CL began to ease back two weeks ago from its $3.00/lb peak as reports from the market indicated a drop-off in demand from end-users. The drop in domestic prices combined with particularly high volumes of Australian imported 90CL on offer has relieved some pressure on end-users resulting in imported 90CL prices falling 6c/lb off the recent high of $3.00/lb to $2.94/lb.

Domestic 90 CL eased again last week to sit at $2.95/lb. Supplies of bull meat or 95CL remain short resulting in prices holding steady on the previous week at $3.17/lb. A drop off in price through October was expected as cull cow slaughter traditionally lifts, albiet it is still expected to be signficantly lower than last years levels. October also signals the end of the summer grilling period, therefore slower demand for hamburgers While prices may decline further as a new balance is found between supply and demand, there is little doubt the new level is going to be well above historical prices.



        





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

Prev. 2 Wks

Last Year

+158

3800

3642

4859

+152

3595

3443

5493

+138

3626

3489

6066

+210

5045

4835

5372







Last 2 Wks

Change

   

 







 





















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Last Year

Overseas Price Indicators Indicators in US$/kg

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18-Sep

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Fine Xbred Indicator Lamb Indicator Mid Micron Indicator

NI lamb prices steadily lifting

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LAMB With slaughter numbers falling off, the bobby kill wound down and Christmas chilled trade kicking off, it is unsurprising to see NI lamb schedules begin to lift. Contract pricing has been above the spot market for the last few weeks, so this is adding further upwards pressure. Old seasons numbers are close to over and processors are expecting the first of the new seasons lambs to enter the plants from mid October. Reports suggest however, that new seasons numbers might be a bit later than usual due the colder August weather in early lambing country. In the SI the bobby kill is just tapering off, and many plants are closing for maintenance before the new seasons lambs come on stream. This, combined with a seasonal increase in slaughter numbers for Sept, has kept a lid on lamb prices as processor demand for numbers is low. Mid to late October should see some upwards movement in SI schedules.

DAIRY PRICE WATCH

4.17

Indicators in US$/T Butter

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Skim Milk Powder Whole Milk Powder Cheddar

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Last 2 Wks

Change

3013

2975

4025

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     

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End of season price spike for old seasons lambs Old seasons store lambs have seen a price spike as there is a last minute flurry of demand. Most continue to make well over $3/kg in the yards in both islands, with the longer term lambs now at discount.

Ewes with lambs at foot are trading solidly this year, and are outperforming last years prices by up to $20/hd.

DAIRY Long term dairy price contracts decline While short term dairy prices have seen some lift in recent weeks, prices continue to decline for longer-term contracts for milk powders.

The volatility of global dairy prices has buyers more cautious in making purchases at present and demand from major buying countries remains light. With milk production increasing each week, the focus for processing plants is to get the product mix right to balance buyers needs. Returns currently favour SMP production over WMP; but as more SMP is made to offset the impact of Russian sanctions on cheese exports, these returns are in danger of falling further.

CURRENCY WATCH vs. NZ Dollar

Last Week 2 Wks Ago 4 Wks Ago Last Year

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0.793

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0.828

Euro

0.622

0.629

0.635

0.615

UK pound

0.486

0.493

0.504

0.516

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Aus dollar

0.903

0.908

0.895

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Japan yen

86.35

88.77

86.80

81.84

Euro

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RURAL NEWS // OCTOBER 7, 2014

34 AGRIBUSINESS

Fert fails to fly at Ravensdown AGM A N D R EW SWA LLOW andrews@ruralnews.co.nz

CALLS TO revise share redemption, research and annual meeting policy at fertiliser cooperative Ravensdown were “emphatically” voted down at its annual meeting in Marton last week.

The meeting also saw two new directors join the board, which has been reduced to ten seats, completing a two-year restructure.

Board vice-chairman Chris Dennison, a cropping and dairy farmer from North Otago, was a victim of that process

New directors elected KATE ALEXANDER owns and operates a 240ha, 700-cow dairy farm at Dargaville. Following her election she acknowledged her fellow candidates, thanked those who voted for her, and said efficient use of fertiliser “is a huge issue for New Zealand. I believe the expert advice Ravensdown gives to its customers is vital in this area.”

Jason Dale says Ravensdown is “moving in the right direction” with a strategy that’s working but still has some distance to go. “It is an ideal time for me to join.”

Besides his Ravensdown role, he chairs LIC’s audit committee and is an independent director of Taranaki Investments Management. He’s had senior finance roles at Sealord, Auckland International Airport and Fonterra, and has worked with KPMG.

which he had championed, losing out to Southland agribanker and dairy farm owner Peter Moynihan in the director election for the new southern ward.

“We’d been trying to make the board smaller and one of us had to go,” Dennison told Rural News after the meeting. Prior to the meeting Dennison was director for Ravensdown’s Otago ward, and Moynihan for Southland.

The new southern ward, Ravensdown’s ‘area 1’, covers Southland, Fiordland, and coastal Otago. Central Otago is now part of ‘area 2’ east of the main divide to the Rangitata River.

Takaka dairy farmer Tony Reilly was re-elected for the enlarged area 4 (West Coast, Tasman, and Kaikoura District) and dairy farmer Kate Alexander, from Dargaville, beat a strong field of can-

Jason Dale

didates for the new area 8, north of a line roughly from Tauranga to Raglan.

Jason Dale joins as an independent director after the resignation of Liz Coutts.

“We’re delighted to have the calibre of people like Pete and Tony, and now Kate and Jason as part of the Ravensdown team as the company enters an exciting new phase of develop-

ment based on its core strengths,” said Ravensdown chairman John Henderson after the annual meeting.

The board now has eight farmerelected directors, four from each island, and two independents. That’s down from ten farmer-elected New Zealand directors, two Australian directors and two independents. Senior management also used to sit in on board meetings.

“It was like going to a convention, not a board meeting, and a lot of people never got to have their say or gave up on what they had to say. I felt the board had lost its effectiveness,” Henderson told Rural News.

With the board struc-

ture sorted, a constitutional review is underway. Henderson says he’s “canvassing views” from Ravensdown’s areas and collating a “schedule of topics” to tackle.

A consultant is being sought to help with the review and from there a timetable and programme of work will be drawn up.

“When I set about the exercise I thought it would take about 12 months to have something to put forward for shareholders to consider but the more we get into it, the more complex it becomes. But I want to come up with a real restructure rather than a tinker, which is what we’ve had in the past.”

Henderson says the annual meeting was posi-

Kate Alexander

tive and professional, and the four motions tabled by South Canterbury shareholder Jeremy Talbot were “emphatically” defeated, both on a show of hands and proxy votes.

Talbot told Rural News he was congratulated by many shareholders on the night for raising the motions he did, but few voted for them because they’d been told not to by the board.

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30/09/14 3:39 pm

RURAL NEWS // OCTOBER 7, 2014

AGRIBUSINESS 35

Korean Top Maori farmer sought FTA most urgent – MIA PA M T I PA

THE QUEST to find the top Maori sheep and beef farm for 2015 is now on with the official launch of the Ahuwhenua Trophy competition.

Chairman of the Ahuwhenua Trophy management committee Kingi Smiler is urging individuals, trusts and incorporations to enter.

Of course there will be only one winner, but there are

huge benefits for all contestants.

“Previous entrants and finalists have told us the experience of entering was hugely beneficial.

“The judges – rural professionals – give feedback and ideas which can guide the strategic direction of a farm, in itself invaluable. Professional benchmarking can spark initiatives for a positive

outcome.”

The three finalist farms will be announced in March at a function at Parliament.

Then each farm will hold a field day and the winner will be decided and announced at a dinner at Whanganui in late May. Entry forms are available on the Ahuwhenua Trophy website www.ahuwhenuatrophy.maori.nz

pamelat@ruralnews.co.nz

KOREA IS the most pressing of New Zealand’s current free trade negotiations, says the Meat Industry Association.

Exporters will soon be at a major commercial disadvantage in this important market if New Zealand does not secure its agreement shortly, MIA says in its annual report.

Australia and Canada have both finalised their agreements and the Korea-US FTA which started in 2012 gives the US an 8% tariff advantage; this increases by over 2.5% for every year in which New Zealand does not have a deal.

“While New Zealand is somewhat insulated from this because our grass-fed product reaches a different market segment than US grain-fed product …. we compete directly with Australian beef in the market,” the annual report says.

“Losing the ability to compete on a level playing field with Australia could increase New Zealand’s strategic reliance on China, and remove what has recently been a top-five export market.

“It is imperative that the deal be concluded as soon as possible.”

The report says the industry also “anxiously awaits” progress on tariff elimination through the Trans-Pacific Partnership as Australia and Japan have signed a deal reducing Japanese tariffs on Australian beef.

In other negotiations New Zealand continues to be in talks with India but MIA understands there has been little progress this year. A deal with Russia was making progress until curtailed by “significant geopolitical problems”.

MIA understands a finalised agreement with the Gulf Cooperation Council may be concluded shortly.

An “exciting” development during the year was the commitment of the European Union to consider an FTA with New Zealand. Existing tariff-free quotas for lamb trade into the EU are ample but New Zealand pays about $77 million in tariffs on red meat products into the EU, mainly frozen and chilled beef.

A number of new plants were approved to export to China during the year but there are some outstanding issues to be worked through. “MIA hopes that with the additional government resources now in place in China and the positive developments in the relationship between the two countries, those outstanding issues can be addressed swiftly.”

Broadband options grow ISP PROVIDER Wireless Nation has appointed a new South Island general manager, Jason Sharp, who joins from Farmside. He will work in the firm’s Christchurch office.

“There’s a big gap out there,” Sharp says. “The urban environment [has] fibre and unlimited data usage. But in rural New Zealand there’s limited fibre, if any, and no unlimited data.”

The company has 14 installers in the South Island.

Clients who aren’t in the Rural Broadband Initiative (RBI) coverage area are being offered satellite broadband through the Optus satellite network, enhanced

by Gilat Satellite Networks’ technology.

Wireless Nation is working with PGG Wrightson to facilitate broadband for farmers and rural businesses via PGW’s rural supplier rewards scheme.

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RURAL NEWS // OCTOBER 7, 2014

36 AGRIBUSINESS

Surfing Asia’s wave of change A ONCE in a generation change is happening in Asia and New Zealand needs foreign investment to take advantage, says Prime Minister John Key. Debate about foreign investment had been quietly running through the recent election campaign, Key said at an Auckland

event last month celebrating the merger of infant nutrition company Danone Nutricia with New Zealand company’s Gardians and Sutton Group.

Key said there is a certain amount of capital in New Zealand, but saying ‘yes’ to foreign investment provides jobs and makes

New Zealand wealthier.

“If Danone wasn’t investing in New Zealand that slack would not be picked up by somebody else. There is only so much Fonterra can invest, there is only so much other companies can invest. We have a clear choice: do we want to encourage invest-

ment from foreign players with global distribution and add value to our country, have them paying taxes and creating jobs, or do we want to have a lower level of economic growth?

I think we want to have the former.”

If companies are going to add value, employ

people and be good corporate citizens, they should be welcomed.

“We have a once-in-ageneration change happening in Asia: it is going to happen over the next 10-15 years and either New Zealand goes out there and grasps that with both hands and says ‘yes our

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PM John Key says foreign investment in NZ by the likes of Danone is good for our economy.

country is going to become wealthier and do better’ and re-rate ourselves as a wealthier nation or we’re going to say ‘no….’, and in the end someone else is going to fill that void.”

One thing is for sure: consumers in China, Korea, Malaysia or anywhere else are going to buy infant formula. “They’re going to [want to] buy it from New Zealand; the question is whether we want to supply it to them or not. Even though the public is sometimes uneasy about foreign investment, in their heart of hearts they understand the good it is doing.”

There is a large consumer base already in Asia and we know the single most important issue for parents anywhere in the world is the quality and safety of food for infants, Key says.

“We certainly know from all the consumer evidence we see, particularly in Asia and in China that as soon as those consumers get a little bit wealthier they will make all sorts of other sacrifices to buy a New Zealand sourced baby formula because nothing is more important to them than the safety and health of their child.”

That market will grow “exponentially”. New Zealand has a dominant position in infant baby formula – about 80% of the imports into China.

“Those consumers are never going to go away from wanting to have that quality and in fact with the changes China has been making, what you’re going to see is consolidation of the industry and a lot of it dominated by bigger players. Danone will be an important part of that.”

Key said another debate during the election campaign has been about whether New Zealand is a commodity country and whether we are diversified enough.

“New Zealand is always going to succeed where it has a competitive advantage and there is no question that agriculture and dairy are areas where we have competitive advantage.

“We have good rainfall and arable land and we are good at what we do.

What is not true is that we remain a commodity based player. We are rapidly moving up the value curve. So the value added to New Zealand by adding the value of infant baby formula is significantly greater than if we just sell bulk milk powders to China.”

The more products we sell, such as Danone Nutricia’s, and the less milk powder we sell, the wealthier New Zealand can get and the less susceptible it is to volatility in commodity prices and exchange rates. – Pam Tipa

Fridge full of yoghurt

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32518_RURAL_T

PRIME MINISTER John Key says he’s happy his art student daughter Stephie is a Danone consumer.

“Every so often, because my daughter is at university in France, I make her open the fridge on Skype and show me that she has something half decent to eat, as opposed to the bottles of wine you would expect of university students,” he joked.

“There is always Danone yoghurt, so trust me she is a consumer. I take that as proof there is something healthy about what she is doing.”

RURAL NEWS // OCTOBER 7, 2014

AGRIBUSINESS 37

Beef and sheep meats value up, volumes slightly down for the year PA M T I PA pamelat@ruralnews.co.nz

SMALL INCREASES in volume, but big jumps in value was a key feature of the beef and sheepmeat markets in the year to June 2014, says the Meat Industry Association.

Value of sheepmeat exports jumped from $2.66 b to $2.97 b, says MIA in its annual report. This was due to factors including price recovery in Europe and steady growth in the value of exports to China. In the latter market the average value increased from $4.50/kg the year before to $5.04/ kg.

The European Union remains the most valuable market, with exports worth $1.29 b – $7 b more than last year despite a slight decline in volume.

EU is still a particularly important market for high value chilled products which make up the 44% of exports by value. The average shipped value of exports to the EU is $9.82/kg compared to $5.22 for North Asia. The

largest market within the EU was the United Kingdom at $551 m.

The strong growth of China meant North Asia was the largest market by volume taking 44% of exports, up in value from $674 m to $927 m. China took more than twice the volume of the next biggest market, the UK. Sheepmeat exports to North America declined by 13% but the value remained unchanged at $298 m. As with most other regions except North Aisa, the volume of sheepmeats to the Middle East also declined, down by 20%, but the value was slightly up. Exports also declined to South East Asia by 22%. New Zealand and Australia together account for about 75% of global sheepmeat exports.

Beef exports grew in value by $56 m to $2.2 b with North America remaining the large beef market with 52% of total exports by volume and 47% by value.

The volume of beef exports to North Asia declined slightly overall: China grew 12%, but there were

The value of sheep meats exports jumped from $2.66 b to $2.97 b in 2013-14.

declines in the next two largest markets – Japan down 19% and Korea down 13%.

The value of exports to China increased 23% to $207 m and there was a modest increase in exports to South East Asia, up 7%.The EU continues to be a relatively small but

valuable market for beef, worth $125 million, but the average value was $11.11/kg.

Beef exports to the Middle East increased markedly, up $23 million to $96 million.

MIA noted that India is rapidly becoming a major global beef

exporter. While it did not currently have access to any of New Zealand’s major beef markets in North America and North Asia because of foot and mouth disease, it is working to eradicate the disease and gain access to markets such as China.

MIA also says that co-products make a valuable contribution to industry revenue, worth $1.4 b in 2013.

While there was a $100 m decline in the overall value, hides and skins increased by $15 m to $555 m. China and Italy were the two major markets.

Bovine offal exports to Japan and Korea were down, but this was offset by increases to Russia and Indonesia.

The largest decline in co-products was for processed casings and semiprocessed runners from sheep intestines, worth $66 m less than the previous year. China’s ban on runners from New Zealand saw the value drop from $178 m to $28 m. This was partly offset by an increase to Egypt, Australia and the United States. @rural_news

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RURAL NEWS // OCTOBER 7, 2014

38 OPINION EDITORIAL

EDNA

Getting rid of shabby LANDCORP CHIEF executive Steven Carden is right on the money (page 14) in pointing out that the farming sector has effectively lost the confidence of the public. The ‘man in the street’ is now more inclined to believe ‘dirty dairying’ slander than the more balanced messages from NZ’s farmer lobby groups.

He is also right in saying the ag sector is ineffective in telling its good news, making it unevenly matched against the few shoddy farmers who give ‘catch and kill’ – aka Fish & Game – the ammunition to create the ‘dirty dairying’ messaging.

What Fish & Game, the Greens and other environmental groups – obsessed with their negative perceptions of farming – have done is insidious. They have painted a picture showing farming as a dirty, harmful activity and by implication not a good career choice. Thus it gets even harder to encourage young people to make a career in farming and the wider agribusiness sector.

Plenty is going on nationwide to promote agriculture to youngsters as a career of first choice, including a second annual outing for Wellington secondary school teachers to show them first-hand the science and technology that make our primary sector so competitive and successful.

Taking key influential people from the city to the country is one way to induce a paradigm shift in thinking about farming. That is why Rural News Group has joined other prominent sponsors from the agribusiness sector to make this possible. Every week our publications showcase leading-edge science and actively play a role in technology transfer.

Sadly, city folk see little of this in the mainstream media.

Carden is right: farming needs to smarten up its image fast. At the same time, the perpetual knockers of farming need to reflect on the consequences of their short-sighted self-interest campaigns seemingly designed to drive up membership.

The future of agriculture is too important to NZ to be manipulated by lopsided lobby groups for their own petty political interests. Is it asking too much that farmers clean up their act and that environmentalists stop whingeing every time they see a cow?

Kiwi common sense must prevail where farming is shabby, then generosity might be expected from the knockers.

RURAL NEWS HEAD OFFICE POSTAL ADDRESS: PO Box 331100, Takapuna, Auckland 0740 PUBLISHER: Brian Hight .............................................. Ph 09 307 0399 GENERAL MANAGER: Adam Fricker ........................................... Ph 09 913 9632 CONSULTING EDITOR: David Anderson .......................................Ph 09 307 0399 davida@ruralnews.co.nz

THE HOUND

Want to share your opinion or gossip with the Hound?

Send your emails to: hound@ruralnews.co.nz

No surprises

Thank Go!

Sweet smell

YOUR OLD mate is not surprised at Swiss officials’ warnings about health implications for children forced by idealogue parents into ‘veganism’, Swiss officials warn: “Vegan food is not recommended for young children. It can cause serious harm.” Chiefly the Swiss are concerned about the vitamin B12 deficiency in vegan diets; they warn that denying very young children animal-derived food can cause health problems.

Veganism, an extreme version of vegetarianism, forbids not only meat but all animal-derived products including cheese and milk.

THE HOUND reckons if anyone wanted proof that New Zealand ‘dodged a bullet’ by not making Winston Peters ‘kingmaker’ – by keeping him safely on Parliament’s opposition benches – they would have seen it in one of his first utterances post-election. Winston, our Parliament’s great conspiracy theorist (and they said Colin Craig was crazy!) said Fonterra’s latest payout forecast downgrade to $5.30 for the current season – made the week after the election – was proof that “the Government and Fonterra joined forces to keep the facts hidden from voters”. Nice theory!

YOUR CANINE crusader has a nose for a good story and reckons the one about Southland sheepfarmer Henry Bennett, who has a penchant for women’s perfumes, is a good one. But it’s not what you might think.

Bennett uses perfume as a mothering-on tool to bond ewes to adopted lambs. He told The Southland Times he’s had the most success with a perfume called Midnight Passion. Apparently Bennett prefers to use several different perfumes in the mothering-on pens so the ewes won’t confuse the smell of their lamb with others.

TECHNICAL EDITOR: Andrew Swallow ................... Ph 03 688 2080 PRODUCTION: Dave Ferguson ........................Ph 09 913 9633 Becky Williams ........................Ph 09 913 9634 REPORTERS: Sudesh Kissun ....................... Ph 09 913 9627 Pamela Tipa ............................ Ph 09 913 9630 Peter Burke .............................Ph 06 362 6319 Tony Hopkinson ......................Ph 07 579 1010 SUB-EDITOR: Neil Keating ............................Ph 09 913 9628 WEBSITE PRODUCER: James Anderson .................... Ph 09 913 9621

Sound familiar?

THE HOUND hears that the hot-button issue of foreign land ownership is not confined to this country. Apparently our trans-Tasman neighbours are also vexed about foreigners owning farms on the great arid continent. However, as in NZ, it seems the issue may be more in people’s minds than real. A survey by the Australian Bureau of Statistics suggests that foreign ownership of farmland is relatively rare in Australia. Of the 400 million ha of farmland there, no more than 12% has any degree of foreign ownership.

Same-old THIS OLD mutt was interested in the reaction of various lobby groups to the re-election of John Key and National. Fed Farmers, congratulated the Government on its win and called on it to implement changes these groups had advocated for during the election campaign – RMA reform being at the top of the list. Pretty reasonable one would have thought.

However, not according to the kaftan wearers at the ecological lobby EDS, which claimed the Feds’ were making “intemperate and provocative comments on environmental issues”. While the election may be over, obviously the politicking is not.

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

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

ABC audited circulation 81,232 as at 31.12.2013 Rural News is published by Rural News Group Ltd. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of staff, management or directors of Rural News Group Ltd.

RURAL NEWS // OCTOBER 7, 2014

OPINION 39

What the election means for rural NZ WI L LI A M RO L LESTON

THE NATIONAL-LED Government to be formed has a powerful mandate to push on with vital reforms to the RMA that have been stalled since midlast year. There is no ambiguity about this and we were glad to see the Prime Minister make reference to it.

Agriculture and environment were political footballs this election and it‘s clear the electorate did not

buy the line that farmers are shirking their environmental responsibilities.

Incumbent governments always benefit from a strong economy and the primary industries delivered that in spades.

Political parties must reassess policies that clearly do not chime with the electorate at large. While one party campaigned ‘Love New Zealand,’ its approach was more like ‘Hate what New Zealand excels at.’

With major water reforms

underway, via the National Policy Statement on Freshwater, we have three years for these reforms to bear fruit. We also have time to vastly improve the information the public have so that they become informed by fact and not fear.

More pointedly, the electorate have again rejected water taxes and a capital gains tax. The electorate have also sent a clear message that New Zealand’s best response to global climate change is to

lead the world on carbon efficiency, instead of just blindly slashing our production.

The 2014 general election is a vote for practical outcomes which will benefit our economy and environment.

It is a vote for New Zealand to become a primary superpower too. Not only by doubling our primary exports by 2025 through increased efficiency and added value, but by building resilience through springboarding new technologies based

ag twits

on our biological strengths.

This is why we need to invest in and enable science and innovation.

My message to the opposition is this. Federated Farmers is equally committed to working with you to develop rural policies which would broaden your support base as we need opposition parties that have buy-in from farmers.

• William Rolleston is national president of Federated Farmers.

NE W

Rural News’ irreverent and hypothetical look at what’s happening in the farming world

!

Top Bleats view all winstonfirstandlast: It’s patently obvious there was collusion between the NZ voters and the National Party during this year’s election.

How else could you explain them not giving a xenophobic, senile, grumpy, sad, old git like me the kingmaker role? #anotherconspiracy #royalinquiry #bugger rnormangreens: It is clear that our smart, green polices were too smart and too green for the not-so-smart and not-so-green NZ voters. We love NZ but NZ doesn’t love us. Why? # hatefarming #hatemining #hatemoney #loveopposition #bugger

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honeslackofmana: WTF? How could the voters of Te Tai Tokerau have discarded me?

It is not like I sold out my political soul to a convicted, obese, German, millionaire out to save his own rather large butt from deportation... Oh, wait a minute… #30piecesofsilver #bugger crazycolincraig: Crikey those looney pollsters were right after all. We managed only 4%!

Holy mackerel, just imagine if I’d pumped another couple of million dollars into the party coffers. We may have hit 4.5%. How crazy is that? #presssecretaryvacancy #nomps #bugger kimdotcom: Hey how come all zee Kiwis did not back me? I am not toxic, I’m a nice guy. Really I am. I call you dumb-ass sheep farmers and you can call me sir. #moneycannotbuymelove #byebyehone #byebyelaila #schadenfreude davidjesuscunliffe: It’s not my fault. Blame Nicky Hager. Blame Kim Dotcom. Blame Julian Assange. Blame Edward Snowden. Blame Whaleoil. Blame Judith Collins. Blame the weather. Blame the voters. Actually 24.7% is an outstanding result – far better than 24.6%! #notmyfault #thepartylovesme #butnotthecaucus #bugger johnkeypm: Thanks Nicky Hager. Thanks Kimdotcom. Thanks Julian Assange. Thanks Edward Snowden. Thanks Glen Greenwald.

Thanks Winston Peters. Thanks David Cunliffe. #majority #suckonthatfatboy #trynottogloat thatguynathan: Hey @johnkeypm you look great. Have you lost weight? You look handsome and so young. Another three years, eh.

Can I keep my job – please? #lovejk #jkrules #jkisking #bestpmever damienoconnormp: Bloody gays. Bloody unionists. Bloody schoolteachers. Bloody Greens.

Bloody David Cunliffe. Bloody opposition – again! #3moreyears #bugger drbillfeds: As an apolitical body Fed Farmers is strictly non-political. However, we are delighted that Labour, the Greens and NZ First are back in opposition – where they belong! #yipeee #woohoo #greatresult jwilsonfonterra: Hey @johnkeypm is it ok if we drop the forecast payout now the election is over? You think @winstonfirstandlast will notice. #realmomentoftruth #downshegoes

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40 OPINION

Better to acknowledge that we are all in this together SA NDRA FAU L K N E R

WOOL, THE core ingredient of the world’s most desirable textiles.

Luxurious, sustainable, safe -- an investment product to wrap around new-born babies and big buildings, to be walked on, slept amongst, sat on and worn in any weather. Intrinsically wool has all the benefits nature could bestow on a fibre.

I’m a huge fan of wool in all its guises, and proud to have been involved in producing it all my life in a range from ultrafine to strong crossbred. So I’m honoured to be chairing the group responsible for bringing the wool levy referendum to you, the wool grower.

You will have received your voting packs by now (if not contact electionz. com on 0508 666 002 immediately so they can get one to you). As primary producers, we don’t often get a direct say in the influences on our businesses; this is one such opportunity.

Working with the industry leaders who in 2010 evaluated the abolition of the wool levy has been a revelation. My input has been as a woolgrower and as a NZ Nuffield Scholar in 2012.

Woolgrowers are losing ground without industry support. We need to understand there are opportunities available to us, but only if we choose collectively to invest in the right projects. Information and transparency is vital.

Retailers tell of a fundamental lack of understanding among consumers about what wool is and where it comes from: some consumers think wool production is like the fur trade. Commercial and grower entities out in the market now are devising education programmes; with strategic, carefully costed initiatives these programmes could be expanded.

They need to explain the basics of wool.

For too long we have assumed everyone knows what we do and what wool is. The unpalatable truth is they don’t and this needs to change.

The Campaign for Wool is a winner: where else do you see free endorsement from royalty and ‘A-list’ celebrities, plus free advertising in the world’s leading magazines? Perhaps we should be paying for it – we might appreciate it more!

Make no mistake, the Campaign for Wool is not generic marketing, it is simply about keeping the door open.

Synthetic, oil-based fibres have captured our market but, while wool may be a niche product it is one with incredibly robust qualities. Wool also has the luxury edge and consumers will always recognise quality – but they must be aware of the option.

Along with wool’s natural attributes its environmental story must be transmitted along the length of the value chain to policymakers and consumers.

That’s where our value return will come from – contrasting what wool is and what it is not.

As a woolgrower I can only vote as I see fit, and here is how I see it.

tell our part of the story Everyone acknowland help our marketing edges the mistakes teams create the vital link of the past: frivolous between farmer and purspending and questionchaser. We can capture able business decisions and share the information are the theme. We can that will allow us to make stare at our boots and informed decisions about bemoan the waste of selling our clip. money, the loss of experAnd most importantly tise and the disrespect to we can give ourselves those paying the money. Wool Levy Group chair Sandra Faulkner. options by gaining grower We can continue to view wool as a by-product requiring shearing consensus. We need one united voice as a necessary evil for animal health rea- supported by the entire industry – an sons. We can rid of it off our farms and internationally recognised representative body not aligned commercially to make it someone else’s problem.

But there is an alternative: we can any particular entity.

If you have no objections to the lift our heads and start looking to the future. We can begin celebrating the returns we farmers are getting and if success of the woolgrowers who still you believe consumers know what wool take pride in their clip, who understand is, then so be it. However, if you believe its value to their farm profitability. We we are better off together then you will can look to support the young people vote to support the levy. who want to bring their drive and enthu- • Sandra Faulkner is chair of the Wool Levy siasm to all levels of our industry. We can Group.

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RURAL NEWS // OCTOBER 7, 2014

OPINION 41

Squeeze will come on as payout falls RURAL CONTRACTING is a tough business and in today’s highly competitive environment it is not easy to make a profit.

We always seem to be under pressure to cut costs and provide lower quotes and greater efficiencies. Most contractors are already running tight operations and there is not a lot – or in most cases any – fat to cut.

With Fonterra’s forecast milk price for the coming season just reduced from $7 to $5.30/ kgMS, dairy farmers will be careful when making decisions this year; cost cutting will be top of mind. Economists estimate the reduced payout will cut dairy farmer income by $1.1 billion this dairy season from earlier season forecasts.

DairyNZ says the latest drop in Fonterra’s forecast farmgate milk price is a signal for farmers to reassess the costs of their farm system. “Look at where the fat can be trimmed and where efficiency gains can be made,” it advises.

Meanwhile sheep and beef farmers already had been under the pump and arable producers feeling the squeeze; further pressure is going to come on contractors to at least hold or reduce costs.

In such a tough

business environment, rural contractors do not have the luxury or the ability to absorb continued cost increases and just pass them on in our pricing to clients. So just as farmers are not able to wear any price increases, neither can contractors afford to go on losing money.

So what can we do?

Like our farmer clients, rural contractors have to look at reducing our costs. For most rural contracting businesses one key area of cost is machinery and parts. Ask anyone about the cost of parts and they will tell you it’s eye-watering!

This has prompted many contractors – and farmers – to look at sourcing parts from nonaligned dealers and/or the internet. Just like consumers in the other parts of the economy,

Just like consumers in the other parts of the economy, many rural contractors are finding the attraction and availability of cheaper goods via the internet a genuine way for them to cut costs. many rural contractors are finding the attraction and availability of cheaper goods via the internet a genuine way for them to cut costs.

Of course there are risks in not sourcing parts from machinery dealers. These include no guarantee such goods will be ‘genuine’, and/or a lack of service back-up when using non-dealersourced parts.

In the past, dealers were happy to provide free technical advice to customers as part of the deal. However, as the equipment has become more complex, farmers and contractors have

needed detailed technical advice from dealers. Yet, despite such risks, many rural contractors are still choosing to source their parts this way – purely because of the huge price savings they can make by doing this.

I don’t point out this issue as a direct criticism of machinery dealers, but purely as an example of the cost problems facing rural contractors and what some are doing to reduce costs.

This situation is not ideal and if there is a way for rural contractors and machinery dealers to resolve the issue RCNZ is keen to be party to

it. Recently, the New Zealand Tractor and Machinery Association (TAMA) employed its first general manager in an effort to improve the industry for farmers and machinery operators.

Life is changing for dealers. Twenty years ago they just fixed breakdowns, sold new and used machinery and dispensed parts.

But as the technology gets more complex and customers need more detailed advice and help, dealer businesses have had to look at new ways of structuring – and charging for – the often complex technical advice

they routinely give out to customers.

RCNZ hopes that one of the first areas TAMA, and its new general manager Ron Gall, start looking into is the high costs of replacement parts and what can be done to reduce this. He has already pointed out the depreciation of aged parts in warehouses.

“Every farmer and contractor in New Zealand should gain more out of this. We could be bringing in equipment more successfully and more cost effectively.”

This is a positive start. Anything that will help lessen our costs and improve the bottom line has got to be a good thing.

• Wellsford agricultural contractor Steve Levet is the president of the Rural Contractors New Zealand (RCNZ).

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RURAL NEWS // OCTOBER 7, 2014

42 OPINION

More muddying of the waters A N D R EW H O G GA R D

WITH TALK now turning to reform of the Resource Management Act, like clockwork an opinion article appeared in the Dominion Post: “Dairying muddies NZ’s thinking”.

The by two Norwegians, researcher Geir Sogn-Grundvag and

oilman, Oddvar Vermedal.

Here we go, I thought, until I read the photo caption. It featured Fish & Game contributor Graeme Marshall fishing the “crystal clear” Opihi River. I know Federated Farmers South Canterbury rates Marshall quite highly. So was it just a file photo?

If so, whoever chose it

unwittingly destroyed the arguments of Messrs Sogn-Grundvag and Vermedal.

If a picture is worth a thousand words its caption is worth twice that.

The “crystal clear” Opihi River flows year-round only because of water released from the Opuha water storage dam.

I know only a little about fly fishing, chiefly that one basic need of trout is water – water that’s only consistently flowed down the Opihi since the late 1990s.

The old Opihi River occasionally dried up in the Canterbury heat, but thanks to the Opuha dam the river now has perma-

nent water flow. Everyone, anglers included, must agree that water is a good thing for fish.

So who built the Opuha Dam and why? It was mostly dairy farmers, to drought-proof large swathes of South Canterbury farmland.

Knowing this, we can summarise this story as

Riparian planting by dairy farmers is helping clean up waterways around the country.

showing an angler only being able to do what he loves doing due to farsighted dairy farmers who built the dam. Yet somehow they’re the bad guys for providing that water.

Talk about mixed messages.

The Opuha also supplies town water, generates electricity and provides recreation.

What’s not to like?

that appeared last year in New Zealand Troutfisher.

There also seem to be political points being scored by two people who manage to write as one.

The references to rivers drying up due to farming would ‘hold water’ if Environment Canterbury had made that assertion. Rivers are subject to minimum flows and irrigation stops to protect

Our sheep colleagues are enjoying an excellent run too and how much better if they could eliminate the biggest business risk they face – summer dry and drought.

One economic study done on Opuha confirms it has irrigated plenty of jobs too. It showed that for every dollar generated onfarm from water storage $8.30 in economic benefits flowed into the wider economy.

No wonder our drystock colleagues are so keen on Ruataniwha in Hawke’s Bay, which would also increase the summer flow of the Tukituki River?

Right now, the Agrifax beef price index has hit record highs, smashing a level last reached when Apple’s iPhone first officially appeared in New Zealand. The US Department of Agriculture believes it could be 2017 before American beef production starts to grow again.

Irrigation is not just for dairy farming. Our sheep colleagues are enjoying an excellent run too and how much better if they could eliminate the biggest business risk they face – summer dry and drought.

At this point I re-read Messrs Grundvag and Vermedal’s article. Grundvag, it seems, is a regular writer on trout fishing here: he wrote an impressive piece

ecological values when that minimum is reached.

The Opihi has the potential to dry up naturally in summer unless there’s a water storage dam feeding it.

Is the scientific evidence unequivocal about dairying? The excellent lawa. org.nz states that our freshwater quality has been largely stable for the past decade. One of our guys in Waikato, Stuart King, also hit back at pollution claims by drinking water straight from the Waihou River in front of media.

Even the OECD has reportedly found that of all major rivers flowing through farmland in member countries, the Clutha was best in the world, the Waitaki second and the Waikato fourth. Given stock exclusion, we know that E.coli levels are low except in urban waterways, where of course, there aren’t many cows or sheep.

But the clincher for me is that the authors didn’t say they were never coming back.

• Andrew Hoggard is Federated Farmers Dairy chairperson.

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RURAL NEWS // OCTOBER 7, 2014

44 MANAGEMENT Monitoring and planning raises performance Investment in technology, especially electronic identification (EID) of livestock, is paying off handsomely for Landcorp’s Manawatu finishing farm Cheltenham Downs.

Peter Burke reports CHELTENHAM DOWNS is a 1427ha Landcorp farm just north of Feilding. It is an amalgamation of four blocks: some previously grazed, others mixed cropped including potatoes and peas prior to Landcorp’s purchase in June 2011.

The effective area now is 1200ha stretched over 10km. Lamb finishing is the core enterprise with a target of 35,000 going through in season and 5000 over winter. Landcorp-born lambs are contracted to UK supermarket Tesco, processed through Silver Fern Farms. Most weeks 600-1800 are sent in. Technology and monitoring make it happen.

Two thirds of the lambs are from other Land-

corp farms in Northland, Gisborne and the Central Plateau. Occasionally numbers are topped up at local sales if feed is plentiful.

The farm has 2000 breeding ewes and rears 3000 replacement Romney two-tooth ewes for other Landcorp properties and open market sale. With docking all but done in mid September lambing percentage this year came out at 160%, up on last year’s 147%, which was the farm’s first lambing.

They also grow out dairy heifers for Landcorp, running 950. This year 800 will come in as 100kg calves to be taken through to 18 months.

About 650 two-year-old

Angus steers are finished too, bought in as yearlings in late summer/autumn and finished the following spring/summer.

The farm’s modern infrastructure helps make it highly productive and profitable but when manager Ian Brown took it on just over three years ago it was pretty much bare land.

“We had to do 120km of fencing and have done a bit more since then. We also put in 10km of 25mwide lanes to make it easier to move large mobs of young stock.”

The original fencing was into 12ha paddocks which are being reduced to 6ha as they’re regressed; most still feed into a laneway.

The new infrastruc-

ture was part of a plan to make Cheltenham Downs a highly efficient, easy to manage finishing operation. The lanes make stock movements fast and easy, and standard-sized paddocks simplify feed budgeting and rotations.

Halving the paddock size has hiked feed utilisation even higher.

High quality persistent grasses have been sown, tetraploid ryegrass base being one of Brown’s favourites. Monitoring to date shows it’s the best grass for pasture growth and liveweight gains, and stands up well to drought.

But it’s plantain that’s produced exceptional results with finishing lambs.

“I call it rocket fuel because the liveweight

Cheltenham Downs manager Ian Brown checking plantain growth.

gain on it is phenomenal,” says Brown. “We get longer out of the plantain compared to chicory too as it lasts for five-six years, and we can get winter utilisation out of it, finishing

lambs right through on it.

“This year I also had dairy calves on it and they were doing 1.2kg/day liveweight gain through the winter.”

Lack of winter use was

why chicory was shunned.

“We can’t afford to have anything out of action.”

Once the farm was fenced, every paddock was soil tested. Olsen Ps were TO PAGE 45

RURAL NEWS // OCTOBER 7, 2014

MANAGEMENT 45

Technology investment paying dividends for Landcorp’s Manawatu finishing farm FROM PAGE 44

low, as was pH, at about 12 and 5.2 respectively.

They’ve since been raised to 28 and 6.

The game changer in making a return on all the investment is technology

and monitoring. Around the farm you see weather stations, grass cages in different pasture species and areas, and weighing and recording systems in the yards. Some 15,00020,000 lambs get EID

tags and every two weeks grass cages are checked for growth and recorded.

Brown uses the data to feed budget, plan grazing and schedule stock sales/purchases at least six weeks ahead.

Weather stations help predict pasture and other feed growth.

Optimum stocking rate on plantain’s been found to be 35 lambs/ha. At that, intensive monitoring with EIDs found they average 300g/day liveweight gain during spring and summer.

“Last year through the drought we got 1200kg liveweight/ha off plantain compared to roughly 600kg off grass. We will be monitoring the grass more intensively this season.”

With stock regularly coming and going, feed budgeting is a big part of running the farm, says Brown. But with regular and accurate weights of lambs and pasture growth figures the stock come and go seamlessly.

“In the main season we are weighing stock every week on a Monday and Tuesday morning so we know exactly what

our pasture is growing at and we know exactly how many grams a day our lambs are growing at, at any stage of the season.

That allows me to organise my feed budget with my flows in and flows out.

“For instance, if I know in January I am going to sell 4000 lambs to the works and I know what growth rates they are doing and at what rate the pasture is still growing, I can go out and replace those 4000 lambs before they have left. It’s a case of being a step ahead of the game.”

Most of the lambs need to be 17-19kg carcases hence the need for regular weighing. Brown says hitting the weight target is possible thanks to the monitoring they do, but the yield part of the con-

tract is harder to nail.

“It’s a lot to do with feeding and genetics. Landcorp’s ‘Lamb Supreme’ lambs which we have a lot of here seem to finish faster than most other breeds.”

EID and the weight monitoring, plus the pasture records, mean he can identify how each Landcorp farm’s stock perform on Cheltenham. If things

get tight he can accept or reject stock based on their past performance on the property.

Brown says the farm’s weather data is a key tool in his decisionmaking.

“It helps us a lot, knowing what our soil moistures and ground temperatures are. For instance, when we are looking to put nitrogen on, TO PAGE 47

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RURAL NEWS // OCTOBER 7, 2014

46 MANAGEMENT

Mating management refresher worth it Christmas comes but once a year, and so does mating on most dairy farms, so there’s plenty of time to forget best practice one year to the next.

Andrew Swallow reports.

CAN YOU make a paper dart in 30 seconds? Would it hit your target if you did?

With practice, maybe, but given the paper and told to go for it, few can, and so it is with mating management on a dairy farm; trouble is, missing that target costs $200 per cow, per heat missed.

Dairy NZ consulting officer Erin Sinclair used the analogy at one of a series of mating workshops the levy body has been running around the country.

“The end result was a few [of the darts] worked but there was a big range in performance,” she pointed out.

Had the dart makers been selected for their skills, briefed on what was required, and given some time to practice, and, if necessary, tuition, a lot more darts would have hit the mark, she explained.

And so it is with mating management on a dairy farm. Pre-mating is the ideal time to make sure the team know why accurate heat detection is important,

and how to do it because “there’s nothing riding on it.”

“Getting someone to explain what they’re doing and why is a good way to check [skills]…. Doing it during mating is a wee bit late because we know every missed heat costs at least $200 in lost production.”

Sinclair added farm staff should be made aware that better mating management will mean a tighter, easier to manage calving for them the following spring, and hopefully a break between calving and start of mating.

Fellow presenter Amy Horrell, of LIC, suggested occasionally stopping the platform in rotary sheds and asking staff “would you, or wouldn’t you, put her up for mating?”

Some farms put photos on the shed wall to establish standards on how much tail paint they expect to see rubbed off if a cow’s on heat, she added.

Besides getting the team’s eyes in ahead of the real thing, recording

pre-mating heats will help identify non-cyclers so interventions can be considered and, come mating, the date of a pre-mating heat provides a crosscheck on cows where there’s doubt about whether or not they’re on heat.

Even for experienced staff, because the AB season is only for a few weeks a year it’s worth running a refresher to ensure everyone’s up to speed, said Horrell, and having a back-up plan in case the main person responsible for heat detection is unavailable.

Using at least two forms of heat detection is advisable: tailpaint or other form of heat detector plus observation in the paddock for example, “especially for that second round of AB when everyone’s getting tired.”

Heat detectors and/or tail paint need to be applied correctly – with Kamars the arrow must point to the animal’s head and be in the right place – and in the right place allowing for the size of the cow. Tail paint needs to be worked

LIC’s Amy Horrell reminds delegates of what to look for.

into the hair and regularly touched up.

“Wait a day if it’s raining.” Trim hair to 1-2cm and warm glue so heat detectors stick well.

Observation in the paddock should be mid-way between milkings not immediately after (all eating) or immediately before when cows will be queuing to get to the shed.

Cows on heat will be in sexually active groups (SAG) riding each other, often around the water trough, though sometimes younger, less dominant cows are harder to spot as they are only on the fringe of such activity.

Even if a cow isn’t spotted in a SAG in the paddock, there are other tell-

tale signs such as mud marks down the flanks, restlessness, poor milk letdown and mucus around the vulva. A system is needed to ensure team members communicate such observations effectively to whomever is in the shed and the cows get checked and drafted accordingly.

If in doubt about a cow, draft anyway then observe how she behaves with the other cows on heat. If she stands off from the group, put her back with the herd and don’t serve. If she’s on heat, she’ll be mixing it with the rest of them, suggested Horrell’s colleague Andrea Dixon.

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RURAL NEWS // OCTOBER 7, 2014

MANAGEMENT 47

More to do to hit targets P ET E R BU R K E

IAN BROWN comes from a South Wairarapa dairy farm and has worked his way up through a variety of roles in the private sector and Landcorp.

Cheltenham Downs presents exciting and demanding challenges, and while a lot has been achieved in a short time, there is still more potential in the property to unlock, such as draining land at the back of the farm.

“The challenge is in liveweight gain and production here. We did 740kg liveweight/ha for whole farm last year, during the worst drought we have had since we have been here. We did 803kg/ha the year before and the target is to do

1000kg/ha this year.

We should do that if we don’t get another drought.”

So where does he think production will be in five years?

“In five years? I don’t think we will double it even though we will have done drainage and regrassing on the farm, but my target is to get to 1400kg/ha.”

For all that Cheltenham is large, the technology used – EID, weather and pasture monitoring – can all be applied to smaller farming units without too much difficulty or excessive investment, he believes.

“The technology has taken the guesswork out of farming and quality data is making a difference to our bottom line.”

AT A GLANCE ❱❱ 1427ha (1200 effective) near Feilding. ❱❱ Intensive finishing and rearing property. ❱❱ Subdivided into 6ha paddocks, mostly pasture and plantain. ❱❱ About 40,000 lambs, 3000 replacement ewes, 2000 mixed-age ewes, 1000 dairy grazers, and 650 cattle/year. ❱❱ Weather, soil, pasture and stock growth closely monitored for feed budgeting and allocation. ❱❱ EID key tool for lamb performance checks.

Technology pays off FROM PAGE 45

or any strategic use of fertiliser, we know what our soil temperatures are doing: on the rise or decline. It also helps me with my feed budgeting.”

The Oroua River and several streams run through the property. All have been fenced and riparian planted. Kale is grown on 240ha of river terrace for the 650 steers.

Heavy clay soils on the main part of the farm are too prone to pugging in winter, unlike the stonier ground, he points out.

The mix of stock on the property benefits parasite management with rotations of stock classes swapped around to reduce pressure on drenches.

Another potential issue is facial eczema but Brown says Landcorp genetics provide a good level of resistance.

Monday morning routines weighing lambs

RURAL NEWS // OCTOBER 7, 2014

48 MANAGEMENT

Closing date sets ryegrass seed season The Foundation for Arable Research held a round of spring ryegrass seed discussion group meetings last week. Andrew Swallow reports from a paddock near Waimate.

DON’T BE afraid to leave the sheep on or put the mower in well into October with late-heading ryegrass cultivars, seed growers were told at a recent round of FARorganised grower meetings.

Trials show that although closing such crops earlier results in more seed heads, far greater seed losses are experienced in denser crops with the result the thinner, later closed crops out-yield them, explained AgResearch ryegrass specialist Dr Phil Rolston.

“There was twice the seed loss as there was from those closed two weeks later.”

Denser crops are also likely to inflate input costs, notably fungicides

and plant growth regulators (PGRs).

“It’s better to top the crop than to try to manage the bulk with your PGRs. You can remove 5-10% of the growing points by topping before you start to reduce yield: it’s all about evening things up,” he stressed.

The rule of thumb for closing date is to look at the flowering date of the particular cultivar relative to industry standard Nui, and use that as a minimum guide for the number of days after the date you would close Nui to close the late heading cultivar.

“I don’t think there are any examples of where I would go for fewer days than the delay in heading date,” commented Rolston.

PGG Wrightson’s Murray Kelly noted there’s more flexibility with some of the very late European varieties, which may head as much as 35 days after Nui. FAR’s Richard Chynoweth cautioned that where cultivar genetics aren’t known, reproductive regrowth if embryo seedheads are removed by late topping or grazing is less certain.

He also noted it’s a balancing act with topping and sometimes two cuts may be needed to avoid too heavy residues suppressing growth.

Where topped crops are to be baled, keep baler tracks to a minimum and cartage traffic to tramlines, as yield can be 25% down in the wheelings,

cutting paddock yield about 8.5%.

“It’s exactly the same as we saw with the heavy roll trial result two years ago. If you don’t have to, don’t [bale].”

Once crops are closed, the late heading cultivars bulk at an “incredible” rate, pointed out Rolston.

“They can be putting on 250kgDM/ha/day.

That’s why it’s so hard to put the brakes on with PGRs…. The later you close the less PGR you need to keep the crop standing.”

Chynoweth added: “I’ve yet to see a variety that doesn’t grow at 190kgDM/ha/day or more with these late flowering cultivars. They’re growing at a phenomenal rate and they do take some

stopping.”

The arrival of generic formulations of Moddus ingredient trinexapacethyl means discussions on PGRs are now about when and how much ‘TE’ to apply, rather than the branded product.

Annual ryegrasses generally need 0.8-1.6L/ha, perennials 1.6L/ha or more if closed too early and the crop is bulky.

“We have had a response to Cycocel plus Moddus but if bulk isn’t an issue the response to Cycocel isn’t there.”

With a lot of ryegrass straw going to dairy farms withholding periods need to be watched, growth stage 32 (GS32) being the latest approved timing.

One option to apply the higher rate and stay within

AgResearch’s Phil Rolston.

label recommendations is to go twice with 0.8L/ha 10 days apart while the crop is at GS32.

Kelly brought the discussion back to closing date.

“If you get the closing date right the other things become much less important. You get a bigger bang

for your buck with TE if you get the closing date right.”

Nitrogen rate is another key variable: too much and more PGR will be necessary and possibly yield reduced; too little and yield will be forfeited.

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RURAL NEWS // OCTOBER 7, 2014

MANAGEMENT 49

No frost may mean major rust problems “UNLESS WE get a good frost we could be in for quite a good stem rust season,” FAR’s Richard Chynoweth warned ryegrass seed growers at the South Canterbury discussion group meeting.

The disease normally turns up in October at the earliest but this season was seen in mid September at FAR’s Canterbury sites at Greendale and Chertsey, and not just in the susceptible turf-type cultivars but the forage variety Samson too. “That’s generally seen as being resistant.”

The early infection means the disease will be getting into leaf sheaths and unless combated by frost or fungicide, will “leave spores all the way up the stem as the leaf sheath extends,” warned Chynoweth. “That early season fungicide could be reasonably important.”

The tricky bit is if cultivars have

FAR’s Richard Chynoweth

an endophyte incorporated, as the most effective fungicides on the disease, the triazoles, can kill the endophyte.

That said, the effect of Proline (prothiaconazole) on endophyte isn’t known and FAR is trying to get information on that from US

trial work.

The SDHI fungicide Seguris Flexi (isopyrazam) with Amistar (azoxystrobin) could be an endophyte-safe alternative to a triazole, he suggested.

That would also leave using a low rate triazole – the effect on endophyte is cumulative over the season and as a rule no more than 150g/ha should be applied – late season to prevent blind seed as an option.

However, again withholding periods for crops likely to be grazed after harvest, or straw taken for animal feed, pose a problem.

“The shortest withholding period is Seguris Flexi at 14 days, so there are options even in a rusty environment…. most of the others are at least 28 days pre-cut, which is quite a way out, especially in turftype scenarios where you are trying to keep rust out.”

Ryegrass seed season FROM PAGE 48

in seed yield with less nitrogen is gradual so it’s better to err on the side of caution, than overcook things, suggested Rolston.

“We know that response curve is pretty flat at the top. You can be 20% under the optimum [N rate] and only lose about 1% of yield so it’s better to be a little conservative than put more on.”

Total nitrogen supply should be about 175kg/ha, allowing for soil mineral nitrogen. Timing is not

critical provided there’s not a serious shortage but too early can cause earlier lodging so final topdressing shouldn’t go on until the PGR is on.

Other nutrients, notably potash, need watching, not so much for the ryegrass crop but for the overall fertility of the farm.

“If you’re selling barley, wheat and ryegrass straw that’s quite a lot of potash disappearing off the farm,” said Chynoweth, noting typically 150kg/ha of potassium’s removed

in ryegrass straw.

Suggestions that micronutrients molybdenum and boron might influence pollination have proven unfounded.

“When we’ve looked, it’s always turned out to be due to frost.”

Phosphate requirement’s low, at about 10kg/ha, as is sulphur, though many growers are using ammonium sulphate as their first nitrogen top-dressing to make sure sulphur’s covered, he added. @rural_news facebook.com/ruralnews

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Resistance update coming FOUR MORE species of weed have been undergoing tests for herbicide resistance and an update is expected this month, Chynoweth told the ryegrass growers.

“And there are couple of other worrying species showing some tolerance to different herbicides,” he noted.

If growers suspect a weed of having developed resistance to a

herbicide he urged them to contact FAR or at least the product manufacturer.

“The worrying scenario is when something you think should be killed survives two applications of products from the same family of herbicides.”

Repeated use of herbicides with the same mode of action is the key risk behaviour.

“In the Round-Up ready soy

crops in the States it took just eight applications of glyphosate for ryegrass to become resistant,” he pointed out.

While herbicide group listings in New Zealand need updating, the fops and dims group, as in products such as Puma and Gallant, and the ALS-inhibitors such as Glean, Escort or Granstar, are particularly vulnerable to resistance developing, he added.

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50 MANAGEMENT

Don’t delay grazing lucerne A N D R EW SWA LLOW andrews@ruralnews.co.nz

AS SOON as your lucerne is 15cm high your stock should be into it, says Lincoln University’s guru on the crop, Derrick Moot.

And if you’re a dryland farmer and you haven’t got any lucerne yet, then you

should consider putting some in, he says.

The reason is the combination of the crop’s water use efficiency and nitrogen fixing ability.

Deep roots mean lucerne can access water reserves other forage can’t reach, and rhizobia-packed root nodules fix all the nitrogen

the plant needs from the air, so there’s no need to apply urea or other forms of fertiliser nitrogen.

“Wherever you see urine patches in grass that’s showing you the rest of a paddock is nitrogen deficient,” explains Moot.

Consequently growth is compromised but water

because it reaches deeper into the soil.

Provided grazing or cutting is timely, the forage is also high quality and stands of the crop will last years, if not decades, with good weed control.

Lack of winter growth needs to be allowed for in the south, and warmer

is still being sucked out of the soil by the grass at much the same rate, so less drymatter is grown for the water available.

In contrast, lucerne grows more drymatter per unit of water in spring because it is not nitrogen limited, and it has more water available to it

Spring Specials Don’t graze lucerne below where the stem bends, says Lincoln University’s Derrick Moot.

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but wetter winters in the North Island can make weeds more of a challenge, but the crop is still likely to boost profits wherever lack of rain limits summer pasture production.

“There’s more now than ten years ago but there’s still not enough.

Spring and early summer is the most important time for the dryland farm and lucerne is the most efficient plant you’ve got for producing feed during that period,” he stresses.

The reason Moot says stock should be “into it” once stands reach 15cm is rotational grazing. Stock perform best if kept on the crop, rather than switched on and off it, and if they start the rotation at 15cm, by the time they reach the end of the “round” stands will be getting towards 35cm.

At that height don’t force them to chew it to the deck, he stresses.

“Squeeze the stem to feel where it’s gone hard: you don’t want them eating into that.”

Typically that will be the bottom 8-10cm of the plant if it’s reached 35cm when grazed. Another way to judge where the stem turns hard is to see how far down it bends freely.

“Don’t go below where the

stem gets stiff.”

As a rule of thumb every 10cm of height equates to a tonne of drymatter in a spring stand of the crop. In autumn it’s more like 600kg, as the plant is pumping more energy underground, building up its reserves for the following spring.

Allowing those reserves to be replenished at some point in the season is essential if stands are to persist, and following season production maintained. New stands need to put at least six tonnes of growth underground before they reach their above-ground production potential.

“So if you get 15t of growth in the first year, 6t of it will be below ground and 9t will be above.”

For those cutting and carrying, or ensiling lucerne, take the first cut before flowering, at 45-55cm, so the crop doesn’t lodge. High protein content means an innoculant and/or addition of a starch or sugar source, such as Italian ryegrass, or even kiwifruit pulp or potatoes, is needed to aid fermentation of baleage or silage.

“If you’ve got irrigation, don’t irrigate it until TO PAGE 51

RURAL NEWS // OCTOBER 7, 2014

MANAGEMENT 51

Sowing this spring?

IF YOU’RE planning to sow lucerne this spring, paddocks should have been sprayed out a month or two ago to allow moisture to accumulate in the soil, says Moot.

“It’s a risk where people are following things like Italian ryegrass. They think they can take just one more cut or graze, but if you do that, how much water’s left in the profile for the lucerne?”

Soil test to check pH is at least 6 and make sure herbicide history doesn’t include any residuals likely to cause problems. “Talk to your chemical rep’,” stresses Moot.

Assuming lucerne’s never been sown in the paddock before, seed will need inoculating with rhizobia and drill 7-10kg/ha into a fine, firm seedbed with moisture at depth.

“The 10kg/ha seed rate would be for coated seed including the innoculant.”

Ideally leave the first grazing, or cut, until after the stand has flowered, but if weedy a light graze at 15-20cm can help take out the intruders.

“Once growth stops in the autumn, that’s when you give it a hard graze and then apply your main weed control for the year, while the crop’s dormant.”

Don’t delay grazing FROM PAGE 50

at least 10 days after cutting because if you do, all you’re doing is wetting the soil and allowing a flush of weeds to germinate while the crop has no leaf to shade them out, so you’re better to wait.”

Potash removal needs to be watched with repeated cuts, particularly if manure or effluent isn’t returned to the paddock.

“You need to herb-

age test to check if there’s enough potash and it’s best to do that in spring when the crop’s growing at its fastest. A cut a year doesn’t usually cause a problem but where you’re taking two or three you’re starting to mine the potassium.”

Potassic super should be used to replace potash in such situations but straight superphosphate is all that’s typically

needed where crops are mainly grazed.

Bloat, particularly in cattle, and occasionally scald for lambs, are animal health issues to be aware of with lucerne, particularly in a moist spring. “I wouldn’t expect many problems in the South Island this year because it’s been dry and growth has hardened off early,” notes Moot.

Anecdotally weaner

calves are most at risk so if they need to go on lucerne a common practice is to mix them with ewes and lambs, allowing the ewes and lambs a first pick at the crop. “Often people move them a day after the ewes and lambs.”

A bloat capsule for yearling or older cattle is advised, given their higher value.

Aphids are the main pest but rarely cause

problems in grazing rotations as they’re eaten out of the crop. If numbers build in cut-andcarry crops be prepared to apply an aphidicide post cutting to protect regrowth.

“But they’re still not the issue they were in the 1980s because there’s less lucerne around, we have more resistant cultivars and there’s more grazing than there was then.”

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RURAL NEWS // OCTOBER 7, 2014

52 MANAGEMENT

Monitoring performance DAIRYNZ’S FERTILITY Focus Report (FFR) is “a great place to start to get that high level view” on herd reproductive performance, said LIC’s Horrell.

The first figure to check is the six week in-calf rate, rather than empty rate, with the industry target 78% in-calf at six weeks.

Currently a quarter of herds achieve that.

Three week submission rate is another important figure, the target being 90%, however false or “invented” heats can inflate the figure, as can use of synchronisation tools such as CIDRs. Conception rate, also shown on the FFR, should be 60% or above. A low figure here could indicate invented heats or another problem.

LIC’s return interval analysis report provides further insight. Ideally,

TEN HEAT INDICATORS ● Standing to be mounted. ● Tail paint gone. ● Tail paint rubbed. ● Heat detector triggered. ● Mounting other cows. ● Restless and/or bellowing. ● Poor milk letdown. ● Mucus around vulva. ● Mud (and sometimes saliva) on flanks. ● Heat detector lost. those cows that do return to heat having been served once should all turn up in the 18-24 day bracket, indicating the original heat was correctly identified and a normal length oestrus cycle has followed.

“It’s good to run this report now for last year,

Team event: farmers and farm staff brush up on mating management principles at a workshop in Temuka.

before mating starts this year,” suggested Horrell.

The chart should have

an obvious peak in the 18-24 day range, with few either side. What you

don’t want to see is the “Manhattan skyline” of returns all over the place.

Grassland Conference LUCERNE AND lupin research papers will be presented by Derrick Moot at next month’s New Zealand Grassland Association conference, this year in Alexandra.

The Lincoln University professor is also co-author of several other papers to be presented on the two forages.

“A lot of that work is coming to a close so it’s the logical time and place to present it,” Moot told Rural News.

The conference theme this year is ‘Central Otago: a land of difference – farming in the extremes’, reflecting the extremes of climate that the region experiences.

But it’s not all dryland farming: two conference field days will feature dairy support and intensive stock finishing under irrigation, and improved hill country with lucerne and other annual legumes. Papers on research outside the region will include dairying and high sugar grasses, says association vice president David Stevens.

“There’s a wide range of papers.”

Papers go through independent scientific peer review and while presenters may verbally expand on written paper content during the conference, fellow scientists and/or industry experts are quick to challenge comments that may be hard to justify.

“It’s a science conference, not a sales conference,” stresses Lissaman.

The conference is November 5-7. See www.grassland.org.nz for more.

RURAL NEWS // OCTOBER 7, 2014

MANAGEMENT 53

Payout’s down: what do I do?

P E T E R F LOY D

AT 3AM on the morning after Fonterra’s announcement of its reduced payout I woke with voices in my head.

There was a heated discussion between me and an imaginary dairy farmer upset that his income was going to plummet and he didn’t know how he would cope.

“How come this has happened? Why didn’t Fonterra tell me before now? The exchange rate is too high, interest rates are too high. Why doesn’t the government do something?” he grizzled.

“I’d better get the bank manager to increase the overdraft again.”

I’ve heard this a dozen times before. No surprises there. Blame Fonterra.

Blame the exchange rate.

Blame the government (a bit late for that). Blame anyone but yourself.

“What do you mean?

What have I done wrong?”

It’s what you haven’t done that’s the problem.

You haven’t taken responsibility for your situation by doing some strategic business management.

“Oh bugger that. I just want to be a dairy farmer and milk cows. That’s what I know and what I do best.”

And you probably do it well, but that’s not all there is to the business of farming. You need to make sure it’s sustainable.

“I am making it sustainable. I’ve put in a new effluent pond and I’ve fenced all the creeks.”

That’s only part of the answer. The bottom line of sustainable farming is profitability – not production or productivity.

“But the farm is profitable. In the 2012-13 season we made a packet and last season is probably the same though the accountant won’t give me the figures for a few months yet.

The bank manager has done a cashflow for this season, but it’s touch-andgo whether we’ll break even.”

That’s not strategic business management.

Nobody in town runs

their business on historical figures and cashflows, and you shouldn’t either.

You’ve got to have a good handle on how much profit you are making right now, every day.

“What use is that?”

It means you can use up-to-date figures to determine herd size, calving date, supplementary feed choices, culling, drying off and so on instead of relying on the bank’s rules of thumb. It helps take the guesswork out of decision making.

“It sounds difficult.

Where on earth do I start?”

It’s not really so difficult, but you do need to work at it. You need to be willing to collect information for analysis and have the diligence to stick with the programme. You start by looking at where you want to be in, say, five years, what you are good at, what you like doing and what you want for your family.

“That sounds a bit boring.”

Perthaps, but it’s critical. And you need to spend one morning each week using clever software to record and analyse your business, and learn about making decisions on the basis of the information it gives you. The upside is that the hard choices about your future will not actually be hard and you will get a lot of satisfaction from turning your business around.

“Sounds good, but does it actually work?”

A bunch of innovative farmers think so. I’ve worked with them, watching as they use daily profit to optimise their farming businesses, sometimes reducing stock numbers or cutting back on supplementary feed or taking other unconventional actions, and yet at the end of the day they increase profit.

“I’ll think about it.”

Think about it by all means, then do something.

Just carrying on regardless of payouts, interest rates, weather, etc, without strategic plan-

Peter Floyd

in my head disappeared and eventually I got back to sleep. But I woke later realising that too many farmers just ‘think about it’ and don’t take action.

About 20 years ago it became obvious to me that cashflow budgeting didn’t work. Yet in 2014 the banks are still focused on how much money is

going in and out of the farm account and still try to solve financial problems by increasing production, putting on more stock, more super, more urea, more maize and more PKE. The result is more animal sickness, more stress and less profit.

Without the use of

daily profit analysis to help make the best decisions, farming will continue to be a high-stakes guessing game. Anyone who thinks otherwise is dreaming.

• Peter Floyd is the managing director of eCOGENT www. profitfocusedfarming. com. Tel. 0800 433 376 or 0275968796

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ning is nowhere near good enough if you are running a multimillion dollar business. You need to answer the hard question – do you want to be a successful business person or just a glorified herd manager?

“I said I’ll think about it!”

That was the end of the conversation. The voices

RURAL NEWS // OCTOBER 7, 2014

54 MANAGEMENT

Gaining 20% more value from fert spend GA R E T H G I L LAT T

FARMERS COULD extract 20% more value from their fertiliser spend by using their fertiliser contractors’ TracMap TracLink system more effectively, says

the company’s managing director Colin Brown.

He pins the increase to variable spreading rate maps. Made possible by cloud-stored farm mapping software such as TrackMap’s TracLink

system, variable spreading rate maps match fertiliser application to topography and stock behavior, rather than ‘blanketing’ a farm or paddock.

Brown argues that because stock stay on hillsides only

long enough to graze, they tend to carry the nutrients used to grow that pasture down to ‘camps’ on flats.

As a result, nutrient and mineral levels on hillsides tend to drop so low that high-producing rye

and clover cultivars are unable to grow and the sward reverts to browntop, kikuyu or other low feed-value, low nutrientrequirement grass varieties.

You see a similar result Cloud-stored farm mapping software such as TracMap’s TracLink system can match fertiliser application to topography.

®

on dairy farms: greater pasture growth at the gate and trough parts of a paddock where cows tend to congregate, Brown says.

Fertiliser applied at blanket rates set for an entire farm don’t go far enough in addressing the shortfall. While an average application rate of 230kg/ ha phosphate/season is often more than enough for most farms, it doesn’t go far enough to meet the nutrient needs on hillsides.

Brown recommends reducing the amount of fertiliser applied on flats and in stock camps, and spreading it instead on the hills. His TracLink system facilitates this, allowing a farmer to quickly and easily send detailed maps specifying different fertiliser application rates

within paddocks to his fertiliser rep.

Developed using information from Google Earth, the online platform allows a farmer to set out a digital map of his farm, providing the fertiliser spreader with unprecedented data. This is done by first accessing the cloud-hosted system through a computer browser and plotting boundaries, fences and various farm zones on the Google Maps powered interface.

With 77% of the country’s fertiliser spreaders using a TracMap GPS system, it remains only for farmers to digitally map their farms and spread fertiliser strategically.

Tel 0800 87 22 62 www.tracmap.co.nz

Knock out even more weeds NINE MORE weeds are now on the kill-list (label) for Zelam’s herbicide Headstart.

This product has an in-built adjuvant (Oleo), making it safe for early use over young and mature pasture, clover, lucerne and chicory. No other surfactant need be added to the spray solution. The liquid formulation is easier to measure and mix than granular products.

Because exactly the correct ratio of active:adjuvant is ‘built in’, a better and consistent kill is achieved, hence the addition of nine more weeds to the label.

Headstart is best applied when weeds are small and growing. If applying alone, it can be sprayed when clover is at the two true leaf stage. The product can also be tank mixed with other broadleaf herbicides for specifically targeted weeds.

Headstart kills a broad spectrum of weeds including some ‘troublesome’ species not killed by conventional herbicides, Zelam says. This is largely because it can be sprayed early when these weeds are young.

The labeled list of weeds killed includes amaranthus (redroot), fathen, buttercups (annual and giant), chickweed, spurrey, cleavers, black nightshade, shepherds purse, wild radish, hedge mustard, creeping yellow cress, wireweed, willow weed, sorrel, mallows, yellow gromwell, mayweeds, oxeye daisy, field pansy, henbit.

RURAL NEWS // OCTOBER 7, 2014

ANIMAL HEALTH 55

Answers to swede issue some way off on production and reproduction is the unknown. andrews@ruralnews.co.nz Mark Bryan of Vet South, who has been leading much of the local DEFINITIVE ANSWERS on what response to the problem, says the killed hundreds of cows on swedes in “working hypothesis” that unusuSouthland during the winter and early ally high intakes of glucosinolates spring are still some way off, leaving in leafier-than-normal crops caused growers and dairy farmers facing the problem is still the best theory. tough sowing decisions.

The fact that far from all cows on the Last week DairyNZ circulated a crops were affected is explained by third advisory note from the Souththe likelihood some cows land Swede Working Group* prefer roots to leaves, and warning it would not have Blood tests are revealing liver vice versa, he suggests. “clear conclusions in time However, blood tests for your 2015 crop planting damage and whether that will on cows showing no decisions”. impact on production and symptoms have found eleThe theory is elevated reproduction is the unknown. vated levels of the liver glucosinolates in the crops, enzyme GGT indicating notably those of the HT variety, caused the widespread problems from veterinary practices that inde- some damage. What that will mean ranging from ill-thrift and agitation to pendently investigated the problem. for production or reproduction isn’t A second survey of farmers with known but in the North Island where photosensitivity and death.

Initial estimates of 200 fatalities affected cows is being prepared with facial eczema causes similar increases due to the condition are now sus- input from vets and seed companies. in GGT there are often long-term pected to be conservative and the McBeth says it will drill down into the effects, he notes.

While none of the clinical cases long-term impact of liver damage detail of the paddock and crop history, in clinical and sub-clinical survivors and management of the stock, looking attributed to the swede problem would have been classed as acidosis, for common factors as to the cause. remains to be seen.

The initial survey didn’t ask Bryan acknowledges it could also be a DairyNZ general manager extension, Craig McBeth, says a prelimi- whether crops were the HT-type or factor as breakdown of the glucosinolates into the liver damaging toxins is nary survey found problems “in pretty not but the second one will.

McBeth says he thinks the widely favoured by a lower pH rumen. much all the dairy areas of Southland A lesson emerging from the probwith no obvious geographical drivers reported estimate of 200 deaths due for the clinical photosensitivity or to the problem is “probably conser- lem is that stock transfers between vative” but was unable to give more all crops, even of the same species, other symptoms seen”.

Samples of swedes from paddocks detail on the numbers of fatalities or should be considered a transition where problems were reported, and clinical cases. “The iceberg beneath and treated with the normal caution. where they weren’t, are awaiting anal- all this is what the sub-clinical impact “Because of the differences in geogysis, and while some blood samples will be in the cows that appear to be raphy, topography and climate, you taken from affected and non-affected okay but sub-clinically may have suf- can’t assume swedes are going to be cows on swede crops have been ana- fered some impact.” the same in one area to another, or Blood tests are revealing liver even paddock to paddock.” lysed, he wouldn’t reveal results last week. “We’re not prepared to release damage and whether that will impact • More on page 60 A NDR EW SWA L LOW

details on those as they are only initial results,” he told Rural News.

However, he did say they would be available “by the end of the month when we can put confident interpretation and messaging to them”.

Specialist vet Gwynn Verkerk has been contracted by DairyNZ to work on the case and the levy body is coordinating information and support for farmers affected, and collating results

Cows started keeling over on swedes two months ago.

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RURAL NEWS // OCTOBER 7, 2014

56 ANIMAL HEALTH

Early Johne’s diagnosis developed

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e weed

“As the macrophages can be found in the lymphatic fluid first, we believe an infection can be diagnosed here much A RAPID test of cows’ lymphatic fluid earlier and faster than with today’s promises to make possible an early usual methods.” diagnosis of Johne’s disease (bovine Tests on 86 cows from differparatuberculosis). ent farms exhibiting diarrhoea and Developed in Europe, it is the first weight loss found lymph analtime lymphatic fluid has been ysis yielded significantly more used to detect the disease.

“After one year, about positive results than the analyJohne’s causes treatmentsis using faeces, blood or milk. resistant diarrhoea, wasting, 70% of all animals tested Khol says that indicates “higher reduced milk production, fertil- positive via lymph-PCR sensitivity” of the lymph method. ity problems and increases sus“After one year, about 70% ceptibility to other conditions had been culled from their of all animals tested positive via such as udder inflammation. herds.” lymph-PCR had been culled from There is no treatment, just culltheir herds. ing, and meat of affected animals “These had developed various disVeterinary Medicine at the University is not suitable for consumption.

The disease usually manifests two- of Florida, has developed an alterna- eases or a reduced performance that made it necessary to remove the anithree years after initial infection, but tive method for early diagnosis.

Khol takes fluid from the lymph mals from the farm. In comparison, can take 10 years to show. However, during this time infected animals still vessels at the udder of the animals. cows with a negative lymph result shed the causative bacteria putting Just a few millilitres are enough to showed a 27% culling rate after one detect the bacterium using a poly- year only.” herd health at risk.

Khol says the results show the Researchers from the University of merase chain reaction (PCR) test.

“Taking lymphatic fluid from new test is a promising one but still Veterinary Medicine in Vienna have found a way to identify the disease cattle is not easy, but it can be done needs improving to increase reliabilbefore it shows itself. The bacterium effortlessly with some practice,” he ity of results. “The fact that there is no treatment for this disease makes enters the animal’s body through the says.

The lymph vessels lie next to veins comprehensive early diagnosis espeintestine and is passed to the animal’s macrophages. These immune cells under the skin of the udder and can cially important.”

• NZ use doubtful page 57 then migrate through the lymphatic only be punctured during lactation.

AL AN H ARMAN

fluid into the lymph nodes, the blood and other organs.

Current tests look at faeces, milk or blood of animals suspected of being infected but researcher Lorenz Khol of the university’s clinic for ruminants, working with the College of

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A test for detecting Johne’s in cows has been developed in Europe.

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RURAL NEWS // OCTOBER 7, 2014

ANIMAL HEALTH 57

Weaning piglets later ok PIGLETS CAN be weaned later with no negative effects on sow birthing frequency, Australian research shows.

The University of Adelaide findings are important because they could lead to improvements in piglet health and welfare without loss of production.

“Piglets weaned early often

NZ use doubtful

don’t thrive, with reduced growth and diarrhoea common,” says Alice Weaver, a PhD candidate with the university’s school of animal and veterinary sciences.

However, sows don’t usually start cycling in lactation, hence pressure to wean early in commercial pig production to maximise litters/sow/year.

Weaver found that if sows have daily contact with a mature male pig from seven days after farrowing, oestrus starts regardless of whether the sow is suckling a litter or not. “We’ve shown that piglet weaning age should be able to be increased with sows still producing the average 2.4 litters per year.

This is important to the pig indus-

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NON CYCLERS

andrews@ruralnews.co.nz

HOW MUCH use a lymph test would be in New Zealand is doubtful, says a vet coordinating work on controlling the disease in cattle here.

“I don’t see a lot of value in it so far,” Hinrich Voges of the Johne’s Disease Research Consortium (JDRC) told Rural News. “It’s not a practical intervention tool really… though it may be more use for research.”

Taking lymph samples is fiddly even in cows accustomed to veterinary practitioners working around their udders, which no commercial New Zealand cows are, he explained. “In the EU a lot of vets take blood samples from the milk vein, so this isn’t all that different, but New Zealand cows are not used to that.”

Not many New Zealand vets have experience taking such samples either so there would be a learning process required too.

However, Johne’s is an issue New Zealand farmers should be aware of and for a few herd owners it is a serious problem, Voges stresses.

“It is definitely an issue and in some herds it is a big issue. But for most it is minor, though it is a widespread disease.”

In the worst cases annual culls due to Johne’s amount to 1-3% of the herd, with the South Island, notably the West Coast, the worst area affected.

Current controls focus on culling infected animals and taking steps to limit or eliminate exposure of calves to the bacteria.

Herd test milk samples can be checked for Johne’s antibodies to identify the worst infected cows. “It’s very simple, cheap and effective.”

Typically the summer or autumn herd test samples are the ones to get checked so infected cows can be removed before calving. Voges says about 200,000 herd test samples were checked for Johne’s last year.

“It’s a pretty recent test, and only herds with significant Johne’s problems are using it so far – maybe 5-10% of the national herd.”

The JDRC is developing a “Johne’s toolbox” for the dairy and beef industries which will likely be launched early next year. “It will give farmers and vets different options to deal with the disease without saying you have to do this, or you have to do that…. It will detail best practice, and alternative controls, and some ‘don’ts’.”

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RURAL NEWS // OCTOBER 7, 2014

ANIMAL HEALTH 59

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Australia works on worm management A LA N H A R M A N

NEW STRATEGIES for targeted treatment to control scour worms (Trichostrongylus spp.) in sheep are being developed in Australia to avoid drench resistance.

Murdoch University post-graduate student Meghan Cornelius says the approach reduces the direct cost of drenching and has the potential to prolong the effectiveness of chemical products before resistance develops.

The project includes field experiments with close monitoring of body condition, body weight and worm egg count to compare the production responses between treated and untreated sheep.

Sheep with body condition scores (BCS) of about three or above, one

being extremely lean and five carrying excessive fat, are able to tolerate moderate worm burdens and are less likely to require drenching than animals in poor condition.

Cornelius says depending on the degree of severity of worm burdens, producers may be able to leave those sheep with the higher condition scores in the flock without treatment, which will minimise input costs and save valuable time for farmers.

“They can then focus on targeting the lower condition score sheep (< BCS 3) which we believe are less resilient and far more likely to be adversely affected as a result of scour worm burdens,” she says.

With drench resistance becoming more prevalent and the higher cost of new combination drenches, employing resistance management

strategies is critical to the long-term cost of managing parasites.

While the strategy of targeted treatment is relatively new, Cornelius says it is very important to understand that every property is different and that the same worm management strategies are not suitable for every environment.

The decision to use targeted treatment strategies needs to be made flock-by-flock, she says.

“Further research is determining how many sheep with higher condition scores we can leave in a mob before there is a negative impact on whole flock productivity.”

The scour worms thrive in temperatures ranging 16-30° C with moisture present, larvae developing in faecal material, then moving onto pasture ready for sheep to ingest.

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RURAL NEWS // OCTOBER 7, 2014

60 ANIMAL HEALTH

  Vet’s funding concern   WHAT TO SOW?     VET SOUTH’S Mark Bryan is concerned that for all the work DairyNZ is doing, a proper epidemiological study of the problem isn’t being done and no-one has stepped up to fund one.

“There’s a risk all the information gets left in separate silos.”

The epidemic has highlighted the lack of certain knowledge of causes of death during wintering of dairy cows with the usual occasional deaths rarely autopsied.

“Often they’re put down to acidosis but we don’t know for sure and that assumption is fairly dangerous.”

What’s happened is a wake-up call for winter feeding practice in general, he adds.

❱❱ Grazier and dairy farmer discussion pre-sowing. ❱❱ Co-ordinate crops to minimise feed changes. ❱❱ Plan transitions before planting. ❱❱ Choose crops with stock class, when needed, and skill levels in mind. ❱❱ Check seed availability. ❱❱ Seek advice of local professionals. ❱❱ Adapted from Dairy NZ’s Swede Advisory Update #3: ‘Preparing for winter 2015’.

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EU adopts antimicrobial rules to improve animal health ELE-01539-RN

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EUROPE HAS adopted proposals on veterinary medicinal products and medicated feed aimed at tackling antimicrobial resistance as well as improving the health and well-being of animals.

The aim is to make more medicines available to treat and prevent diseases in animals and widens the legislation to include feed for pets, but the environmental group Alliance to Save Our Antibiotics says the EU Commission is ignoring scientists’ warnings to phase out routine preventative use in farmed animals.

“The European Commission and the British government have both stated they don’t sup-

port the routine preventative use of antibiotics on farms, but both still back legislation which makes it legal,” alliance campaign manager Alison Craig says.

“Antibiotic growth promoters are nominally banned in the EU. But the truth is that many of the same antibiotics can still be given to the same animals when no disease has been diagnosed.”

Craig says governments and European parliamentarians who are serious about avoiding the ‘apocalyptic scenario’ whereby people die from routine infections because of antibiotic resistance, must ensure a ban on routine use of antibiotics in farming is added to the Commission’s proposals.

The Commission says antimicrobial resistance

RULE CHANGE AIMS ❱❱ Simplify regulatory environment and reduce administrative burden; ❱❱ Stimulate development of new veterinary medicines, including those for minor uses/species; ❱❱ Facilitate circulation of veterinary medicines through better authorisation procedures and clear rules for modern retail routes such as the internet.

will be tackled through measures such as a ban on medicated feed being used preventively or as growth promoters. EU wide residue limits are set for veterinary medicines in ordinary feed at a limit to avoid the development of resistance.

Exaggerated provisions in some areas will be eliminated so that medicated feed can be produced economically. In parallel, lax rules which lead to negative impacts on animal and public health will be tightened.

The aim is to tailor legislation on veterinary medicines to the needs of the veterinary sector while continuing to ensure a high level of public and animal health and a safe environment.

“The proposed regulation builds upon existing EU rules for veterinary medicines which ensure that only medicines that have been granted a marketing authorisation can be placed on the market,” it says.

“However, rules are simplified to ensure the development of suitable medicines for animals in the EU. This reduction in red tape will concern both the marketing authorisation procedure and the monitoring of side

effects.”

To combat resistance and to help keep antibiotics effective in humans and animals, the proposal introduces the possibility of restricting the authorisation and use in animals of certain antimicrobials that are reserved to treat human infections.

The rule changes will also ensure that medicated feed can only be manufactured from specifically authorised veterinary medicines and by approved manufacturers.

The Commission statement says it is acting because there is an insufficient number and range of medicines to prevent and treat diseases in animals in the EU. This is especially the case for animals considered as ‘minor species’ such as bees, fish and turkeys.

EU rules on veterinary medicines have been in place since 1965 and the Commission says stakeholders and member states claim that a disproportionate regulatory burden is hampering innovation.

It acknowledges current rules place an excessive administrative burden on the veterinary pharmaceutical industry, which in turn puts EU farmers at an economic disadvantage.

RURAL NEWS // OCTOBER 7, 2014

MACHINERY & PRODUCTS 61

No-stop baler way of the future?

A NEW-CONCEPT baler that does not need to stop or slow down in any type of crop is being tested

by Lely. A commercial product is some years away.

The Lely Welger CB Concept ties a bale while simultaneously starting the next one – “a true continuous baling concept, a true yellow revolution,” the company says.

Continuous motion

makes the operation more efficient and comfortable. More high quality bales can be made as no time is lost waiting for tying and releasing.

Maintaining speed is better for driver comfort, cuts fuel consumption and minimises wear and tear as frequent braking is no longer required.

When the desired bale size is achieved, a mechanism moves the bale within the belt to the

Round baling the way to go ROUND BALING is the development focus, “making farmers and contractors happy” with high capacity, high comfort and high quality, the company says.

Round balers in silage are less sensitive to crop conditions. Extensive field research is said to have shown that in wet conditions round bales reach the correct pH values sooner than square bales.

Round bales also show more consistent density than to square bales and they need less wrapping because of their more ‘efficient’ shape.

The surface contact area is much smaller on round bales than square, allowing less oxygen intrusion.

extended back of the baler, making room for a new bale to start immediately in the front. After the first bale is tied by the net wrap system, the tailgate opens, dropping the bale on the go and the baler resumes its compact position ready again to finish the bale now being made in the front.

During this continuous process, a belt buffering and tensioning system maintains consistent

Lely Welger CB Concept ties a bale while starting the next one.

tension on the belt, resulting in high density bales.

Lely says its continuous innovation makes life easier for farmers by bringing “great advantages in quality, comfort and capacity”.

The Lely Welger CB Concept is the company’s ninth ‘yellow revolution’ in nine years.

For a picture visit www. continuousbaling.com Tel. 07 850 4050

co mp E t i t i o n

Win a STiHL MS 251 CHainSaW & SafeTy paCkage We have a STIHL MS 251 CBEQ Chainsaw plus a safety package, total value of $1337, to give away in celebration of the Canterbury A&P Show, to be held Wednesday 12 to Friday 14 November 2014. Simply answer the question below, and we’ll put you in the draw!

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RURAL NEWS // OCTOBER 7, 2014

62 MACHINERY & PRODUCTS

Foreman 500 rings the changes A DA M F R I C K E R

WHEN RURAL News reviewed the 2011 Honda TRX500, we commented that it was a subtle evolution of the old model, the list of changes being relatively modest.

Fast forward to 2014 and Honda has made a lot more changes to the new TRX500 over the previous model than it did in 2011.

To name a few, the new manual-shift TRX500FM2 Foreman has a new chassis featuring longer-travel suspension; revised map-

ping for the EFI program that gives the liquidcooled 475cc single-cylinder OHV four-stroke engine improved power delivery, throttle response and fuel efficiency; and a selectable locking front differential.

We handed the big 500 to a tame dairy farmer to put it through its paces on the farm. The diff lock came into its own here, pulling the Honda through muck in the bottom of a recently emptied effluent pond. Admittedly, that’s not an everyday farm sce-

nario, but it was as severe a test of traction as you’ll get.

Our farmer also commented on the improved power delivery from the re-mapped engine, saying it pulled clean and strong from lower revs than the old model. And he preferred the manual gearbox over an automatic.

The list of changes to the new 500 is extensive.

It includes new bodywork that improves mud protection, keeping most of the muck away from the rider.

Combined carrier capacity increases to 120kg – 40kg in front, 80kg for the rear, and the heavyduty trailer hitch has a 384kg towing capacity.

The electric power steering has revised settings for lighter steering effort, improved damping and more linear steering traits.

While the drivetrain carries over from the previous model, albeit with reconfigured engine mapping, the Foreman has an all-new double-cradle steel frame that is lighter and 20% stiffer.

New front and rear suspension (independent double-wishbone up front and solid rear axle with single shock swingarm) has an increase in travel to 185mm at both ends plus new shocks for improved ride. All shocks now have adjustable spring preload, and the swingarm now has an enclosed axle and new rubber pivot bushings that contribute to the better ride.

Rider comfort has also been addressed by narrowing the tank so the feet aren’t so spread, making the ‘rider triangle’ a bit less cowboy. A 20mm increase in seat foam

thickness and softer seat foam also help.

The Honda TraxLok 2WD/4WD system now offers three drive modes: 2WD; 4WD with TraxLok torque-sensing front differential; and now a new 4WD mode with locking front differential. This TraxLok system also has a speed override mode that can be engaged when the front differential is locked, allowing faster wheel speed under severe conditions such as deep mud.

There are other less obvious changes too, such as increased AC generator output of 481W and a new meter display with added functions like a ‘maintenance minder’ system that notifies when it is time for service. And the rear brake has been moved inside the right rear wheel, improving ground clearance.

Well considered details

that contribute to a genuine move forward for the 500, not just an evolution.

The TRX500FM2 as tested retails for $14,257 (ex. GST).

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RURAL NEWS // OCTOBER 7, 2014

MACHINERY & PRODUCTS 63 WORKHORSE

New chief aims to gain ground for tractor sector THE NEW Zealand Tractor and Machinery Association (TAMA) has employed its first general manager in an effort to improve the industry for farmers and machinery operators.

TAMA president Ian Massicks says the appointment of Ron Gall as general manager came into effect on September 1. The group has not had a paid general manager before, instead relying on its president for leadership.

“We haven’t had anyone employed to run the association before,” Massicks says. “TAMA wants to engage in a whole lot of new projects and we want to lobby certain things with the government.”

Gall has worked in the horticulture sector for 20 years, though he is not a tractor expert. His skills are in bringing people together and getting things going. He sees many issues that need to be addressed, including the depreciation of aged parts in warehouses.

“Companies may not claim depreciation on those goods. It’s a question of talking to some of the financial officers in those companies and arranging a discussion paper on it.”

Gall intends to work at growing the membership of TAMA “to get agricultural machinery companies to start talking about issues useful for them”.

“For example, how we encourage more young people into the industry. This is an issue that all industries face but we’re not addressing it,” he says. “We need training and leadership for young people because right now there’s no career path.

A lot of these issues are common to other industries but TAMA has never been in a position to work on them before.”

Massicks is confident TAMA members will also benefit from the association’s structural changes.

“We’ll be able to start putting more time and effort into the association. We all run our own individual businesses but as a group there are things we can influence that will make life better for everyone in the industry.

“There will also be benefits to our customers. Every farmer and contractor in New Zealand should gain more out of this. We could be bringing in equipment more successfully and more cost effectively.

That will help the end user because we’ll be providing a better service.”

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RURAL NEWS // OCTOBER 7, 2014

64 MACHINERY & PRODUCTS

Spreader fit for hills and flat GA R E T H G I L LAT T

A KEENAN Orbital muck spreader is capable of handling a wide range of materials and is great for growing grass on the hills says one Bay of Plenty farmer.

Neville and Daniel Marsh grow maize and run a con-

tracting operation from leased land and a 42ha property respectively just out of Te Puke.

Maize is grown on 150ha of leased land between Te Puke, Rotorua and Whakatane.

The crop was initially grown on the original farm to support the family’s

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The farm was sold and the contracting became the prime focus for the family with maize being grown to supplement their other contracting income.

However, demand was such that the maize growing operation expanded rapidly, with the family

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leasing more land around district to grow the crop.

Locally sourced chicken manure/lime mix keeps yields around 24t/ha though Daniel says getting an implement to spread the nutrients onto the field proved to be difficult.

Initially they revamped a 5t silage wagon using beat-

ers developed in their workshop. But the trailer was not ideal and would often sit idle for much of the year due to its limited functionality. But it did work at a faster rate while offering better control over spreading rates.

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The Orbital muck spreader is capable of handling a wide range of material.

ment he says they were impressed with Keenan’s 12t orbital spreader and decided to buy one to add to their fleet.

Fitting in halfway between a muck spreader and an effluent tanker, the orbital spreader holds material in a 10m3 semi-cylindrical open tank sealed off by a sealed pushing door controlled by twin hydraulic rams under the rear of the machine and a large folding arm at the front of the machine.

From there a spinning flywheel flings material 20-30m from the side of the unit, keeping it well clear of the operator but also getting a good spread.

Marsh says the unit can take and spread a wide range of materials, from old rotten silage and post peelings to slurry and effluent.

“We use it to clear effluent from ponds, pads and bunkers, we can do calf shed wood shavings and post peelings. I’m sure it could handle everything besides concrete or posts.”

With a working speed of 170rpm the large flywheel is strong enough to disperse most materials over long distances; extra processing help is at hand via a smaller subset wheel at the centre of the flywheel.

The side discharge allows the unit to handle variations in terrain as well as it handles different materials, says Marsh.

As the material is spread from the front of the trailer, weight remains on the drawbar rather than the axle, reducing the risk of soil compaction. It also allows for use during wet seasons, allowing them to get material onto parts of the farm only accessible

by plane.

In fact, Marsh says his operation has seen as much as 20% more grass growth on sidlings. “Most of our customers are happy the effluent is being put to good use especially as they are able to use it on bits of land that normally would not be able to fertilise without a plane or a helicopter.”

While the 1.8m solid steel flywheel is normally enough to throw brokenup material up to 20-30m from the spreader, it is helped further with silage and post peelings by a counter-rotating spinner with three, hardened fins at the centre of the flywheel, which cut up the material for easier dispersal.

Marsh says the lack of maintenance required is also a bonus, with the unit being set up in such a way that any moving parts are well lubricated.

The unit is driven by a heavy-duty wide angle PTO shaft, protected by an overrun clutch and shear bolts. This then drives a chain which is run through an oil bath.

To reduce repair and maintenance costs, mechanisms and bearings are outside the load tank and Marsh says in the six years the family has used it the only repairs – outside of regular maintenance – have been “changing the front chain and one front bearing”.

Loading the unit is easy he says and takes five minutes with a front loader.

The unit is towed by any of the operation’s 150-300hp tractor fleet. Minimum on hills is 200hp to ensure the necessary braking power. www.jkengineering.co.nz

RURAL NEWS // OCTOBER 7, 2014

MACHINERY & PRODUCTS 65

Key elements in establishing a highproducing lucerne stand PROFITABLE LUCERNE production is based on a rapidly growing, dense stand which is the result of careful selection of well-drained paddocks, ideal soil nutrient levels, a proven variety and the use of good crop establishment practices.

Paddock selection Lucerne requires well-drained soils for maximum production. Waterlogged soils create ideal conditions for fungal root diseases which may kill seedlings, reduce yields and kill established plants. Poor soil drainage reduces oxygen movement to the roots, reducing stand performance.

Weed control Good weed control is critical for good stand establishment and subsequent yield and persistence. If possible, perennial weeds should be completely controlled prior to planting as they can re-establish quickly and are difficult and expensive to remove from seedling crops. In cases where perennial weed pressure is severe, consider cropping for 12 months prior to lucerne establishment.

Soil testing High soil fertility promotes early growth and increases stand tolerance to insect and disease pressure. A 150mm soil sample should be collected in the autumn preceding spring planting.

Test for standard nutrients as well as sulphatesulphur and micronutrients, particularly copper, molybdenum and boron. Once you have the soil test results contact your local Pioneer representative, merchant or fertiliser company representative for a fertiliser recommendation.

If possible, a proportion of the base fertiliser and lime should be applied several months in advance to allow micronutrients to become plant-available and to raise the pH close to the desired level.

Liming The optimum soil pH for lucerne is above 6.3.

If soil pH is below this, lucerne production may be reduced. It takes six months from the time of application until the maximum pH drop of lime is achieved.

Variety selection There are a number of important factors to consider when choosing a lucerne variety. These

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There are a few things needed to produce a good lucerne crop.

include high yield potential, disease resistance and forage quality. Healthy plants that persist for longer deliver higher profitability, however a number of factors other than variety influence persistence. These include weed and pest levels and management, soil fertility and climatic conditions.

Planting Sow when soil temperature is above 8°C in the spring or 14°C in the autumn. Soil moisture level is important as lucerne germinates only after the seed has absorbed about 125% of its weight as water.

Lucerne is a small seed with a limited supply of stored energy to support the developing seedling therefore correct planting depth is very important. Plant lucerne no deeper than 25mm: the optimum depth is 6-12mm on clay and loam soils and 12-25mm on sands.

Sowing rate The recommended sowing rate for lucerne ranges from 12–18kg/ha. Planting rate will vary depending on the condition of the seedbed, method of planting and planting date. The aim is to establish 60-90 plants/m2 in low rainfall areas and 110-130 plants/m2 in high rainfall or irri-

MOLEPLOUGH

gated areas. Lucerne is a self-thinning crop and it is more desirable to over- rather than underpopulate. High initial densities do not detrimentally affect long-term yields or persistence.

Seed inoculation Once inoculated, lucerne can convert atmospheric N to plant-available nitrogen. All seed should be inoculated with group A rhizobium bacteria prior to planting. There are two options: seed can either be freshly inoculated or growers can plant coated seed.

Pioneer brand products’ Nitragin Plus seed treatment contains: • Superior strains of Rhizobium resulting in high levels of nitrogen fixation • Apron XL fungicide which is effective against seedling fungal diseases • Lime for localised pH correction around the seed.

It is a light (9%) seed coating delivering more pure seed for every kilogram of coated seed planted.

Telephone 0800 Pioneer (0800 74 66 33) to get a free copy of the Pioneer brand lucerne manual.

Copy supplied by Genetic Technologies.

Drainage and soil aeration pay big dividends.

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TAARUP DISC MOWERS 2600 & 2800 SERIES MOWERS Suitable for a quality cut under a range of conditions these mowers feature spring tension breakaway and adjustable working positions.

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Contact your local Kverneland dealer for more information www.powerfarming.co.nz

RURAL NEWS // OCTOBER 7, 2014

66 MACHINERY & PRODUCTS

Mower conditioner still running to speed EUROPEAN-MADE SIP 800 triple mower-conditioners, after two seasons, are still running up to speed for Waikato business Reymer Ag Contractors, reports the distributor Webbline.

“We mow about

2000ha per season,” says Reymer spokesman Chris Reymer. “They follow the ground contour well, even in the most challenging conditions, resulting in an excellent cutting job without too much scalping or untidy cutting.”

Reymer says the mowers are user friendly and simple to operate with no electronics. All the control is via a monitor on the firm’s Fendt 818 which is averaging 28L/h diesel consumption.

“One feature I appre-

ciate about the mowers is the shear pin disc protection system; when a foreign object hits a mower module, there are four brass pins that shear off protecting the driveline and the rest of the module from damage.”

Seeding made easy!

Compact and easy to drive: Southland dairy farmer D’Jeffery Scouten dropping another paddock for baleage.

This takes about 20 minutes to fix and costs about $20. They have only had to replace one set of pins this season, contrasting with mowers in the past that would have cost about $600 for a new module and two hours downtime.

Meanwhile, Southland dairy farmer D’Jeffery Schouten runs a set of straight double mowers.

He says the SIP 380 Silvercut rear mower gives extra

width, coupled with the standard 3m front mount.

“We find them easy to drive. I was running them on a Deutz K110, which is only 110hp and have now also bought a new Deutz TTV430 (132hp) which handles the set-up no problem.”

Todd Portmann, near Ashburton, has similar comments. He and his wife Sarah sharemilk 2200 cows on 590ha for Alistair and Bernadette Morrison.

He bought a SIP Silvercut 380 last season and says it is well built compared with other mowers.

“We are now doing a lot of pre-mowing in front of the cows and I wanted a mower with a decent cutting width. The Silvercut 380 floats well and is easy to drive. I am running it on my John Deere 6330 (105hp) and it handles it no problem.”

Tel. 0800 932 254 www.webbline.co.nz

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A SILAGE stack roller designed specifically for this task can increase compaction as much as 40% more than by tractor rolling, says distributor Webbline.

Bruce McLennan, of Lichfield, South Waikato, uses this machine, a Webbline Silapress, to pack and roll his maize and grass silage into bunkers to exclude most of the air that can cause crop fermentation and breakdown.

The 3600kg machine is rear-linkage mounted, with nine rings 900mm diameter and 3m working width.

“Traditionally tractors used to compact and roll the stack have tyres built to spread the load. These flex and press only the width of the tyres,” said Webbline spokesman Cameron Smith. “Whereas

the Silapress spreads the weight to give consistent compaction over the whole stack.”

Dual-wheel, 300hp tractors are unnecessary for such work, Smith says.

Using a Silapress this compaction job can be done with a 170hp tractor. And if the tractor has a front loader it can be used to spread as well as to compact.

“The Silapress imposes a higher point load than tractor tyres, and when rolling bunkers the Silapress keeps the wheels away from the concrete walls.”

As an example, rolling a 12m wide bunker would take 20 trips with a tractor but only four with a Silapress.

Also available is a 3m, 11-ring model weighing 4100kg.

Tel. 0800 932 254 www.webbline.co.nz

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You can’t beat a MAXAM for all your Mowing and topping!

From contract mowing with the new FM2800 front mower to daily topping chores, MAXAM mowers have the field covered.

The clean cut and full spread capabilities ensure quick regrowth, and they are so robust and easy to use. Call us for more info

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Mowers and Toppers

RURAL NEWS // OCTOBER 7, 2014

MACHINERY & PRODUCTS 67

Finding hotspots can prevent fires FOR MOST dairy farmers, maintenance on the milking shed won’t be top of mind just yet.

But once calving is through, the stock’s dried off and the time comes to check the shed, farmers should think about widening their existing maintenance plan to include thermal imaging which can look through their walls and behind their switchboards to check for potential fire risks.

Some farmers may not know this technology is commercially available.

But there are thermal imaging companies which will visit your premises, run the equipment across your electrical systems and advise on whether any further action is needed.

Thermal imaging is a service FMG has been offering a number of its

be used to detect these frailties, as the hotter the object’s temperature, the more thermal energy it omits. A thermal imagery expert can point out where the hotspots are within the switchboard, and then let you know whether any action is needed.

“Once we looked further into thermal imaging, we knew we had to get on to it and let clients know it was available. Dairy farmers have a lot invested in their milking sheds, and here’s a simple, cost effective way of helping protect that investment, reduce the likelihood of interruption to their business and help keep staff and livestock safe from fire.

“This initiative has become so popular amongst our dairy clients that we have now also

one in Moeraki and the other in Arthurs Pass.

“We hadn’t heard of thermal imaging until FMG mentioned it to

our switchboards took just a couple of hours at each lodge and found eight faults of overheated circuits and connections.

We got an electrician in to do minor maintenance work and everything was sorted.”

Tel. 0800 366 466

Once you’ve played and worked with the best, there’s no settling for less. That’s why Tony Woodcock kits up on a Suzuki. And just like New Zealand’s most capped prop, the DR200 Trojan has measured up to the test for years.

With a tough 200cc engine, greater suspension travel, higher ground clearance, and a lower seat height than any of its competitors, it’s rugged, reliable and easy around the paddock.

The 13-litre fuel tank means it won’t be stopping half way through the game. When you add top level details like alloy hand guards, rubber insulated steel footpegs, dual side stands and a large 12V headlight it’s clear no other farm bike can compete.

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started offering it to commercial clients.”

FMG works with Thermoman. Since the partnership began in 2012, the two organisations have done 840 site visits for 617 of FMG’s rural and commercial clients.

From those visits, 64 sites were seen to need immediate attention.

In several cases clients had their dairy sheds or commercial properties checked that day by an electrician.

A further 347 sites were classified as needing their electrical systems checked in the near future.

Anne Saunders and Dr Gerry McSweeny of Wilderness Lodge are two business owners, who have recently had thermal image technology through their properties.

They run two lodges,

added to the fire prevention measures we already have in place,” Saunders says.

“The assessment of

NO.1 PERFORMER ON EVERY PADDOCK

A thermal imagery expert can point out where the hotspots are within the switchboard, and then let you know whether any action is needed. rural and commercial clients – with a particular focus on checking switchboards. The company said it decided to add the offering to its risk-advice service after analysing its claims data, which showed an increasing number of milking shed fire claims.

“Many people have a perception that milking sheds are almost impenetrable by fire with their concrete walls and foundations, understandably so.

But in reality this isn’t the case,” says Conrad Wilkshire, FMG’s general manager advice and insurance.

Most dairy shed fires FMG dealt with were caused by faulty electrical switchboards, fuses, wiring or vermin infestations in the electrical components.

Thermal imaging can

us. Given that help from the fire service is 30-60 minutes away we jumped at the opportunity to have thermal imaging

Identifying hotspots – particularly in switchboards – may prevent potential fires.

WWW.SUZUKI.CO.NZ

RURAL NEWS // OCTOBER 7, 2014

68 MACHINERY & PRODUCTS

Telehandler great for grip and grab MASSEY FERGUSON says its new MF 9407S telescopic handler specifically suits farming.

Visibility, patented cab design, manoeuvrability

MF 9407S telehandler.

and performance are all a farmer could want in such a machine, says Agco.

The company says it talked to many farmers in Europe while drafting

the spec’s – starting with a ‘clean sheet’ design, and presenting new technology and features from the axles upwards.

“The design of the

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Inside the dashboard is located in the right corner, leaving an unobstructed view of the boom carriage and attachment. The simple dashboard layout is easy to read and is mounted just in front of the new joystick, which provides proportional control.

A shuttle reverse lever is mounted on the left, within a finger’s reach of the steering wheel. A separate button is used to place the boom into the float position.

Access to the Perkins engine and cooling package is easy. Mounted on the right of the machine, the engine is fitted lengthways parallel to the boom, which makes everything easy to reach.

The hydrostatic and hydraulic pumps, fitted to the front of the engine, are also easily accessible.

The MF 9407S has a 130hp, 1104D-ETA engine, which provides extra power often required for straw merchants and other contractors, particularly for road work and towing trailers.

A cooling pack, which folds up for cleaning, is mounted at the front of the engine compartment, above the hydraulic pumps and the fan can be reversed for cleaning. The radiators and oil coolers have ample capacity. @rural_news facebook.com/ruralnews

Boom benefits

NATIONWIDE DISTRIBUTION NETWORK KAITAIA KAITAIA TRACTORS (09) 408 0670 WHANGAREI BRYANT TRACTORS (09) 438 1319 DARGAVILLE KAIPARA AGRI CENTRE (09) 439 6544 SILVERDALE AGROWQUIP (09) 427 9137 PUKEKOHE AGROWQUIP (09) 237 0043 PAEROA PIAKO TRACTORS (07) 862 9064 MORRINSVILLE PIAKO TRACTORS (07) 889 7055 HAMILTON AGROWQUIP (07) 847 0425 CAMBRIDGE AGROWQUIP (07) 827 5184 ROTORUA PIAKO TRACTORS (07) 345 8560 NEW PLYMOUTH TRANSAG CENTRE 2014 LTD (06) 758 2274 STRATFORD FIELD TORQUE TARANAKI (06) 765 8643 HAWERA TRANSAG CENTRE 2014 LTD (06) 278 5119 GISBORNE D.P WILLIAMS (06) 863 2612 WAIPUKURAU STEVENSON AND TAYLOR (06) 858 6041 DANNEVIRKE LANCASTER TRACTORS (06) 374 7731 PALMERSTON NORTH TRANSAG CENTRE 2014 LTD (06) 354 7164 MASTERTON WAIRARAPA MACHINERY SERVICES (06) 377 3009 NELSON GORDON HANDY MACHINERY (06) 543 8041 BLENHEIM GORDON HANDY MACHINERY (03) 579 1111 KAIKOURA GORDON HANDY MACHINERY (03) 319 7119 GREYMOUTH GORDON HANDY MACHINERY (03) 768 5116 AMBERLEY COCHRANES OF CANTERBURY (03) 314 9055 LEESTON COCHRANES OF CANTERBURY (03) 324 3791 ASHBURTON COCHRANES OF CANTERBURY (03) 307 8027 TIMARU GORDON HANDY MACHINERY (03) 687 4005 OAMARU GORDON HANDY MACHINERY (03) 437 1111 MOSGIEL JJ LIMITED (03) 489 8199 GORE JJ LIMITED (03) 203 9970 INVERCARGILL JJ LIMITED (03) 211 0013

MF 9407S offers the best visibility on the market through the curved rear screen. It is also compact, agile and manoeuvrable,” says Massey Ferguson’s general marketing manager Fergal Meehan.

“The short, wide chassis provides exceptional stability, while the laterally, sidemounted engine offers great access for service.”

New boom design and mounting pivot along with powerful new hydraulics mean the MF 9407S offers lift capacities and heights suit many applications, while the new boom and mounting further improve loading efficiency.

An innovative and patented curved side and rear window fitted into the new cab, coupled with the low (1.75m) boom mounting position, offers an unrestricted view to the rear right-hand side.

This design means there is no cab pillar to obstruct the view, offering the best vision in the industry.

The cab is 900mm wide, plenty of shoulder room for the largest operators. A curved front windscreen – which extends from the front right over the roof – also increases space and leg room. This makes it one of the largest handler workplaces on the market and, at 75db(A), it’s also quiet, Agco says. Air conditioning and pneumatic seat

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THE MF 9400 series benefits from a new boom, with low 1.75m pivot point, engineered to high specifications for heavy farm work. As a tool carrier, it can be customised to fit existing attachments, to help reduce costs.

The new 190L/min closed centre, loadsensing (CCLS) hydraulic pump provides best-inclass flowrates for a fast and powerful response to improve loading cycle times. Operation of all boom functions is by a new proportional joystick, which is also equipped with buttons for operating ancillary circuits.

A new boom float function for scraping floors and loading off uneven surfaces is engaged at the touch of a button. There is also the option of boom suspension to protect the machine and operator from jarring, particularly in transport www.masseyferguson.com.au

RURAL NEWS // OCTOBER 7, 2014

MACHINERY & PRODUCTS 69

Correct licences a must for coming season RURAL CONTRACTORS New Zealand (RCNZ) is urging its members to ensure they have all the correct transport licences for the coming season.

RCNZ president Steve Levet says with the new season fast approaching it is timely for rural contractors and their staff to check to see they have the correct licence and a ‘wheels endorsements’ if required.

“It is incumbent on rural contractors to ensure both they and their staff have all the correct

licences when moving their tractors and machinery around the country,” he says.

“There are no excuses for not having the correct licences and/or wheels endorsement. If contractors are not sure they should find out; all the necessary information is under the members section of our website – www. ruralcontractors.org.nz .”

Levet says the different types of licences rural contractors may require include: • Tractor up to 18t or

in combination (towing a trailer) up to 25t • Under 40km/h, Class 1 (restricted or full) licence or overseas tractor licence • Over 40km/h, Class 1 plus wheels endorsement • Self-propelled agricultural vehicle (eg combine harvester) • Under 40km/h, Class 1 plus wheels endorsement • Over 40km/h, Class 2 plus wheels endorsement.

Rural Contractors NZ is offering training workshops run by long-time

member Noel Blackwell, the next lot due in October. Contractors interested in attending – or having their staff attend – one of these training courses can contact RCNZ. Meanwhile, Levet is reminding rural contractors to be courteous to other road users.

“Remember you are often pulling big gear and going slower than normal traffic, so keep an eye out for traffic and pull over where safe to allow cars to pass when on the road.”

RCNZ president Steve Levet says staff licences also need checking.

SI field day to pump A LEESTON, Canterbury irrigator firm will supply, install and maintain an irrigator on the new South Island Agricultural Field Days (SIAFD) 40ha site near Kirwee.

The 2015 SIAFD will run from March 25-27 with plenty of grass for harvest equipment demonstrations, says the irrigator supplier Think Water Leeston. It will install the half-circle centrepivot irrigator by December 19 and maintain it for 20 years.

SIAFD chairman Alastair Robinson says work on the site will get into full swing on November 1 when the property title transfers to the organisation.

“We have agreed to give the current leaseholder access to the property so he can take advantage of the spring flush,” Robinson says.

“Meanwhile the committee

has… removed 1.5ha of vineyard, replaced a gorse hedge along the roadway with deer fencing, and has all but finalised the site plan.

Once we assume full ownership the pace of work will speed up several notches.”

Robinson says the committee is delighted with the irrigator Think Water Leeston has donated.

It will irrigate about 8ha and will showcase its technology, says project engineer Sam Broomhall.

Think Water Leeston, family owned, has been in pumping and irrigation equipment in Canterbury for 25 years. The field days deal “fits right in with what we do with irrigation and pumping,” Broomhall says. “It will showcase the latest technology and we’ll be able to upgrade it as time goes on.”

He says the many centre-pivot irrigators in Canterbury are the

‘gold standard’ of irrigation. “It’s the most efficient and cost-effective way to irrigate your land. We think we have a few design advantages over other brands in construction and stability. Our machines are solidly built and can handle the wind issues in Canterbury.”

He expects strong interest in irrigation at the field days, especially with the coming Central Plains Water Scheme.

SIAFD’s Courtenay Road neighbours Don and Tony Redman will supply water for the irrigator, Robinson says.

“Unfortunately, given the tight timeframe, this time we will have only irrigated grass for the machinery demonstrations.

In future we will have different crops such as fodder beet and maize available for harvest demonstrations.”

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RURAL NEWS // OCTOBER 7, 2014

70 MACHINERY & PRODUCTS / RURAL TRADER

Large Waikato finishing block up for sale A LARGE finishing and dairy support farm at Whatawhata, Waikato, is for sale.

Annandale is 515ha in five titles. It has 90ha of flat to gently rolling land, 330ha of rolling countryside and medium contoured hills, some steeper hills and 25-30ha of bush and wetlands. Soils are a blend of clay loam mix, volcanic ash and silt loam.

The farm stocks 570 cattle and 2086 sheep.

Layout is about 123 main paddocks and 10 holding paddocks with electric and seven-wire fencing, and post and batten fencing on the boundaries.

A five-year stocking record is available, so is a five-year history of fertiliser input for the same period.

Last financial year 132.8 tonnes of Superten/Sulphur Gain, DAP S Super, Pasturezeal G2 and urea fertiliser was

spread. Over the same 2013-14 year the farm produced 141 bales of hay from its own grass and bought in 100 bales.

A wide laneway runs down the centre with side races either side. Farm water is pumped over the property from a stream to five holding tanks then gravity-fed to troughs in each paddock.

Bayleys Waikato spokesman Mike Fraser-Jones reports there are two homes on the property: a three-bedroom Lockwood type with double garaging, and a smaller three-bedroom home with a stable. Water for both is bore-fed.

Says Fraser-Jones, “Buildings include a three-stand woolshed, near new sheepyards with a curved three-way drafting race, a four-bay implement shed, hay barn, and cattleyards and pens leading into a loading facility.”

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RURAL NEWS // OCTOBER 7, 2014

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