MACHINERY
MANAGEMENT
Installation of irrigation system a case of déjà vu for contractor. PAGE 49
New health and safety rules not so scary. PAGE 38
RURALNEWS
NEWS Japanese trade adds to season’s strength for Zespri.
PAGE 20
TO ALL FARMERS, FOR ALL FARMERS
SEPTEMBER 1, 2015: ISSUE 591
www.ruralnews.co.nz
Engage don’t enrage – Feds PETER BURKE peterb@ruralnews.co.nz
ENGAGE DON’T enrage: that’s the message to WorkSafe NZ from Federated Farmers. National president William Rolleston said this as the new Health and Safety Reform Bill was debated in Parliament last week. Despite much political bickering about the bill, Rolleston says Feds did not get sucked into political tit-for-tat. “That is not what Federated Farmers wants to get out of our involvement in this legislation. [We want no] unnecessary bureaucracy and to have good outcomes for health and safety on farms,” he told Rural News. “I don’t think get-
OFF THEY COME South Canterbury farmer and Fed Farmers national meat and fibre vice-chair Miles Anderson is pictured tailing lambs on his farm, near Timaru, last week. Anderson is mid-way through his lambing and took the opportunity of a break between lambing mobs to tail his early lambs. He says the weather during the lambing has been good so far this year, but much-needed rain would be a nice fill-up for dry pastures as he heads into spring.
ting that message and we ting sucked into the goingsare seeing better interacon of the last few days is tions.” productive.” Feds wants feedRolleston says it was back from farmers – it pleasing to see the definihas asked for it all year tion of a workplace in the – about what they see as legislation and the recunreasonable demands ognition that farms are by WorkSafe NZ. workplaces and place of “So we can feed that recreation. That distincWilliam Rolleston back to them. Contion is much clearer in the amendments. On the interaction and versely, I’d expect WorkSafe to feed tactics of WorkSafe NZ with farmers, back to us any issues they have with Rolleston says this depends on individ- particular farmers who are behaving badly.” ual inspectors and individual farmers. Rolleston says the new legislation is “We have to work on that relationship and if WorkSafe wants to engage for education and engagement, not just farmers they have to do it in a way that straight enforcement. • More on H&S reforms p6-7 doesn’t enrage them. WorkSafe is get-
DAIRY DEVELOPMENT UNDER REVIEW LANDCORP CHIEF executive Steven Carden says its further development of dairy farms in the central North Island is under review. He says since he became chief executive he’s been aware of the risks dairying poses to Landcorp’s balance sheet. Landcorp had initially planned to develop 35 dairy farms in the region in partnership with private company Wairakei Pastoral, but has so far done
only 13. Contrary to popular belief, Carden says they are not committed solely to developing dairy farms. “What we are committed to is developing land for pastoral purposes and it doesn’t have to be dairy,” he told Rural News. “We are looking broadly at other options such as sheep, beef cropping options and dairy support. We are having an expansive look at what we
can do and Wairakei Pastoral is amenable to alternative ideas.” Carden says Landcorp is committed overall to a long term outlook in its operating environment rather than short term riskier gains. He says the company runs a conservative balance sheet with a low debt-equity ratio. • Profit drops - p5 @rural_news facebook.com/ruralnews
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RURAL NEWS // SEPTEMBER 1, 2015
NEWS 3
ISSUE 591
www.ruralnews.co.nz
Former Fed Farmers’ head to stand for Ravensdown PETER BURKE peterb@ruralnews.co.nz
NEWS ����������������������������������� 1-22 WORLD ������������������������������������� 23 MARKETS ������������������������ 24-25 AGRIBUSINESS �������������� 26-30 HOUND, EDNA ����������������������� 32 CONTACTS ������������������������������ 32 OPINION ���������������������������� 32-36 MANAGEMENT �������������� 38-42 ANIMAL HEALTH ����������44-48 MACHINERY AND PRODUCTS ���������������������� 49-54 RURAL TRADER ������������ 54-55
FORMER FEDERATED Farmers president Bruce Wills is making a bid for a seat on the Ravensdown board. It’s his first major step into the public arena since he stepped down from his role with the Feds over a year ago. Wills told Rural News he has deliberately stayed out of the public eye for the past year to give the new Feds board time to settle in without the distraction of a former president making headlines. But he says the time is now right to make a move. “The opportunity has now come about and the Ravensdown seat is the one I have watched for some time,” Wills says. “The incumbent, Patrick Willock, has been on the board 15 years and I thought he may have stood down. He’s been there a long time and if he were successful this year that would make it
Bruce Wills
19 years on the board, which in my view is really stretching it. “I’ve been a long and loyal share-
Good result in Mongol Derby
HEAD OFFICE Top Floor, 29 Northcroft Street, Takapuna, Auckland 0622 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 Left: Maxim van Lierde Taranaki, Centre Michele Tanaka US, Right Ben Wilks Katikati.
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from the US – came in early on the eight day. “We had been riding together since checkpoint 20, of 27 checkpoints, and decided to cross the line together,” Wilks told Rural News. Wilks rode 28 different horses during the race. Some tried to bolt on him; one that did went 15km before he got it under control. On his Facebook page, after finishing, Wilks said he felt invincible and had no tummy troubles or saddle rubs. – Tony Hopkinson
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TIM WILKS from Katikati, whose story appeared in Rural News in April, finished a creditable third-equal at his first attempt riding in the Mongol Derby endurance race. The race is about 1000km over a maximum 10 days. The first two riders were only 30 seconds apart at the end of the seventh day. The winner was Byerone Epstein from South Africa and second Elise Poirinal from France. Ben Wilks and Maxim van Lierde from Taranaki – with Michele Tanaka
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holder of Ravensdown, but have watched with some concern over a number of years its performance com-
pared with Balance; at the moment Ballance is moving ahead.” Wills says Ballance has gained 2000 more shareholders in the last two years – mainly at Ravensdown’s expense. He believes the rebates paid by Ballance are much better than Ravensdown’s. He says he would have gained $18,000 in rebates for the fertiliser he has applied on his farm from Ballance – as opposed to no rebate that year from Ravensdown. “[Ravensdown] has performance issues. With my commercial environmental, science and water interests I feel I have a lot to offer.” Wills serves in governance roles on the QEII Trust, the Willow Research Trust and Todd Foundation and – ironically – the Ballance Farm Environment Awards Trust. Other Ravensdown seats in contest will be Northland, Southland and East Coast. The results will be announced at the co-op’s annual meeting in midSeptember.
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RURAL NEWS // SEPTEMBER 1, 2015
4 NEWS
Fonterra to reduce auction volumes FONTERRA IS being “commercially rational” by reducing the volumes sold on the Global Dairy Trade (GDT) auction, says Fonterra managing
Kelvin Wickham
from WMP. “We will be moving director global About 30% of it to other products, ingredients, Kelvin Fonterra’s product will be other applications and Wickham. sold on GDT under that we expect less milk “We have better because of the $3.85/kgMS forecast, but Wickham options to sell milk as says it could other products rather than basic “A lot of the other sellers possibly go down further, whole milk powder on GDT are seasonal or to about 25%. (WMP). [The Wickham options include] come and go according told Rural News cheese, protein, to what they may have the reduction food service available.” was announced and consumer because with applications,” such a significant volume payout.” Wickham says. Fonterra wanted to ensure Basic WMP is a “We have less transparency to all the generic specification; milk coming buyers and markets. But higher applications such in the next at the previous events the as differentiated milk 12 months cooperative also withheld powders give better given the a significant volume, again returns. Cheese, protein lower price. just responding to market and even skim milk Therefore signals. powder and butter are given the “Every two weeks we lower prices also getting higher returns look at what volumes at present, he says. being we forecast to sell, Fonterra said earlier discovered because it is a 12 month on GDT we this month it forecasts rolling forecast and we reducing quantities it are better always make some minor will offer on GDT by 10% to move adjustments here and for the next 12 months, the milk there.” elsewhere. including a shift away
To celebrate the 153rd Canterbury A&P Show on Wednesday 11 to Friday 13 November 2015, Rural News and STIHL are giving away a STIHL MS 251 Chainsaw and safety pack valued at $1660. Answer the question below and you’ll be in the draw to win! What anniversary will the Canterbury A&P Show celebrate in 2015? Enter at www.ruralnews.co.nz/stihl-competition
Wickham says they are still “very comfortable and committed” to using GDT to discover the price and we are “very confident” it provides a good price discovery on the day. He does not know whether other suppliers are reducing volumes, but he says Fonterra has always supported the platform and always
provided product. “A lot of the other sellers on GDT are seasonal or come and go according to what they may have available,” he says. US company Land O’Lakes pulled out of GDT this month, and had not been offering any product for some months. @rural_news facebook.com/ruralnews
SUPPLY AND DEMAND THE ISSUE THE GLOBAL supply and demand imbalance is the biggest issue, says Kelvin Wickham. “The milk is still coming in other parts of the world like Europe and the US and demand is still either sluggish in key importing regions or there is an inability to get into the likes of Russia,” he says. “So we will adjust our sales portfolio. We will look for markets where we have better demand opportunities in different product as well.” Supply will start to slow in Europe because the farmers are seeing lower prices as shown by the protests in the UK, France and Ireland. “But still their bundled return in mainland Europe is much higher than the local prices because it has obviously got local consumer sales,” he says “It is unlikely milk will come down there until the end of their season – when the cows go back into their barns. Let’s see that start to decline hopefully in September or October. “In the US the milk production is still up. They are down in California because of the dry, drought conditions but up in the rest of the country. But fortunately a lot of the US product is being consumed domestically because of the better economic conditions. But there is some surplus product available. It will take time to collect. “On the demand side there is global growth but most of our customer supply chains are relatively full. “It will take some time to consume those inventories then things will improve from a New Zealand perspective in terms of demand and less competition. That will take a number of months yet unfortunately.”
RURAL NEWS // SEPTEMBER 1, 2015
NEWS 5
Dairy knocks Landcorp’s profit PETER BURKE peterb@ruralnews.co.nz
LANDCORP’S PROFIThas taken a massive hit in the past year mainly because of the downturn in the dairy industry. For the year ended June, the state-owned farmer’s profit was just $4.9 million vs $30m the previous year. But chief executive Steven Carden says in the circumstances the result is a solid one given that the company is suffering the same fate as other farmers. A tough growing season and low lamb prices also contributed to the 11.7% drop in income from farm products. But Carden says the result could have been worse had Landcorp not
secured a significant volume of milk in Fonterra’s guaranteed milk price. Milk revenue was down from $129m last year to $88.1m, but livestock revenue was up from $98.7m to $111.3m this year, partly off-setting the drop in dairy income. Carden says while the drop is not unexpected, there are some positives. “We had a very good year in our livestock business with wool income up 11% and production is up across our lamb, sheep and beef operations, while beef prices have been very strong,” he told Rural News. “Strategically the organisation has moved forward during the year and we’ve done a lot of work connecting with
new customers. We have signed a couple of important contracts with the Danish footwear company Glerups which uses our wool to make high quality slippers, and the iconic brand Swanndri, which is also using our wool.” Carden says Landcorp has started supplying high quality deer hides to NZ Light Leathers which makes quality handbags, and it is progressing a contract with the UK supermarket giant Tesco for quality branded lamb cuts. The company has begun a sheep milking venture at Broadlands, near Taupo -- 3500 sheep on land formerly used for cows and commercial forestry. A sheep milking expert from the UK is running the venture.
THE VALUE ADD MOVE LANDCORP CHIEF Steven Carden says NZ has a limited capacity to just keep producing more product; only added value will increase the revenue from primary exports. NZ has to convince people to pay more for our products, but to do that we nust create an appealing value proposition and differentiate our products from others in a competitive global market. And Landcorp is leading the way, Carden says. “We have been working with our partners in the market to understand what consumer segments we really want to target and what we offer that they are prepared to pay a premium for,” Carden told Rural News. “We are looking for partners who are innovative. Ultimately if we can’t create new products and develop new relationships with premium customers we’re not going to find a way to significantly improve the returns on farms.” Carden says the company is also exploring selling grass-fed and GMO-free beef to parts of Asia, and other new
products developed using base products from Landcorp farms. This targets consumers who are health conscious and who want safe food of guaranteed quality from farm gate to plate. Also targeted are people prepared to pay a lot of money for high quality status products, such as handbags made from deer leather. Wool income for the year was $10.7m – up more than a $1m on last year. Carden says many farmers have tended to shear their sheep almost as an animal welfare thing, but he believes new and exciting uses are being found for wool – slippers, tennis balls and air filters. But to get into high value markets changes are needed onfarm to ensure raw product of the highest quality. For example, deer need to be handled carefully in the yards to avoid damaging the animal’s hide. At present, all the products for the high value consumer goods are coming off Landcorp farms, but Carden says in time they will be on the lookout for other farmer suppliers prepared to comply with the company’s high standards.
Landcorp chief executive Steven Carden with a slipper manufactured by the Danish footware company Glerups made from wool from the SOE’s farms.
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RURAL NEWS // SEPTEMBER 1, 2015
6 NEWS
Worms – not farmers – off the hook are; they are living them every day along with their workers. “But there needs to be clear and open communication about the management of those hazards and any new ones that emerge. And zero tolerance of poor industry practice.” Woodhouse says while he’s disappointed the bill has caused some sideshows, health and safety is being talked about and he expects a positive spin-off.
PETER BURKE peterb@ruralnews.co.nz
THE MINISTER for Workplace Relations and Safety, Michael Woodhouse, says he’s concerned about the ridicule dogging the passage of the Health and Safety Reform Bill. MPs in Parliament laughed about some aspects of the bill, for example, mini golf and worm farming deemed high risk activities while normal farming was classified as low risk. Woodhouse says this has led to a misconception by some farmers that they are ‘off the hook’ on health and safety -- a complete fallacy. While businesses with fewer than 20 staff, such as some farms, will not have to appoint a health and safety representative, that does not free them from the requirements of the act. “In fact the bill creates a framework which sets a much higher expectation of everybody participating at work – workers, managers, owners, directors; they all have greater obligations to themselves and others to be safe,” Woodhouse told Rural News. “In some organisations the appoint-
ment of a health and representative may be the easier rather than the harder path. The way the modern workforce is changing, in particular smaller business, there can’t be a one-size-fits-all approach to a health and safety framework. “But there has to be an approach and not having a health and safety rep does not let farmers off the hook.” Woodhouse says too many farmers
take a fatalistic approach to risk, saying accidents ‘just happen’. He believes the biggest challenge facing the farming community is a commitment to reduce or eliminate tolerance of injury. “I support the comments by Federated Farmers’ Katie Milne, who said often where a farmer or manager is working side by side with workers, they don’t need a health and safety rep to tell them what the hazards and risk
Michael Woodhouse: disappointed the Safety Reform Bill has caused some sideshows.
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RURAL NEWS // SEPTEMBER 1, 2015
NEWS 7
Beef + Lamb to beef up H&S efforts GARETH GILLATT
HEALTH AND safety and the environment will play a bigger part in Beef + Lamb NZ’s proposed mandate, according to chairman James Parsons. Sheep, beef and dairy farmers all over NZ must now decide whether to renew BLNZ’s mandate to collect levies for a further six years. The previous levy vote was in 2009, when farmers supported raising levies from $3.60 to $4.60 per head of beef and 40c to 60c per head of sheep slaughtered. No levy increases are proposed in this round of voting. Parsons says BLNZ will need to focus on two relatively new subjects. “We have reallocated about $1.2 million of our $28m budget to assisting farmers with the environment in the last 24 months and we envisage needing to increase this.” With health and safety reform legislation in its final readings in
Parliament, Parsons says BLNZ and Federated Farmers have worked hard to help MPs better understand the consequences of overly prescriptive elements of the proposed legislation. As a result the bill is more practical, allowing farmers to work towards improving safety in the workplace. “Farmers want to reduce the number of fatalities and improve the safety onfarm; we just need to consider the practicalities of modern day farming. “When the average beef and sheep farm has just 1.5 – 2 full time labour unit equivalents, [legislating for a farm to have] a health and safety officer is simply nonsense. “We are totally on board with improving our safety outcomes as a sector. However, with limited staff and resources we need to put our efforts where they will deliver the greatest return. Bogging farmers down with red tape and prescriptive rules is not the answer.” Parsons says BLNZ doesn’t intend
to go over commercial providers’ ground by producing guides and templates for farmers to use to set up health and safety systems, but will help farmers make more informed decisions on necessary farm safety moves. “We are trialing a programme in Hawkes Bay to help farmers [understand] the requirements of the act and regulations. Some health and safety providers seem to be trading on fear to get farmers to sign up; we want to make sure our farmers can make informed decisions.” On environmental matters BLNZ is likely to shift into a support role, says Parsons. It has no plans to increase meat levies soon; the proposed levies will stay below the maximum of 75c per sheep and $5.50 per cattle beast. “If farmers saw an area they wanted more investment in down the track we have the flexibility, as a last resort, to lift levies, but it would require strong farmer support.”
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GOVT ANGERS ANDY LABOUR LEADER Andrew Little says the Government should have sorted out the problems in the new Health and Safety bill during the select committee process and not dropped the changes on Parliament as it did. He told Rural News the Government started out with good intentions but in its bid to please “some people” (read farmers) got itself tied in knots and the bill descended to the level of the ridiculous. “Somehow it became derailed in the last couple of months and that has Andrew Little led to distortions, which undermined public confidence in the legislation. It is important to restore public confidence,” Little claims. “My suggestions on how to do that have not met with a great deal of favour; the Government has carried on pushing the legislation through Parliament.” Little says the Government claims it will consult the public after the legislation is passed, but that will be too late. He says if people don’t have confidence when the legislation is passed by Parliament -- especially given that it’s come
together in a ‘Mickey Mouse’ way -- then it’s going to be hard to get people to seriously engage with the detail later. “The legislation is by-and-large enabling legislation, meaning once it’s passed a whole set of specific regulations will sit beneath the law. This is quite common, but it’s a well documented fact that regulations can take a long time to finalise, given that stakeholders have to be consulted.” Little believes the law should contain statutory guidance for WorkSafe NZ – especially on enforcement – to ensure “they don’t treat small business the same way as they treat a large corporate. [They must] accept that what might work in a smaller business may not work in a big business.” He says he’s had mixed messages from farmers about the bill: some are willing to embrace a safety culture, others say leave us alone we know what we’re doing -- even more reason why the bill passed by Parliament should be right and that people understand its purpose. – Peter Burke
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RURAL NEWS // SEPTEMBER 1, 2015
8 NEWS
Howie Gardner
New man at helm of wool company PAM TIPA pamelat@ruralnews.co.nz
CP WOOL is enjoying strong growth, with an increase in market share, says its new chairman, South Otago farmer Howie Gardner. Formerly Elders Primary Wool and taking on its new name just this week, CP Wool has a great team of people and is enjoying a momentum which in turn creates excitement, says Gardner. “You have to have confidence in the wool industry. When you look at recent trends in wool production levels and where the prices are right now the industry is in a more positive mood.” Reflecting on the industry, Gardner says you should not get carried away, but it has just spiked again for the second time in four year. “The last two years have been particularly stable, with much improved returns,” he says. The Just Shorn retail (wool carpet and rugs) brand has rolled out across North America and more recently in Australia. It will be rolled out in New Zealand this month through the Harrisons Carpet One nationwide. “This will be particularly exciting for the team and many of our growers and co-op members have been looking forward to this for some time.” Elders Primary Wool took a majority share in Christchurch spinning mill NZ Yarns and bought it out of voluntary receivership in December. The mill spins yarn mostly for carpet and wool manufacture, largely in Australia and some in the US. “We are working to diversify the product and get more product into some niche manufacturers in the US,” says Gardner. “We are a majority shareholder in NZ Yarn so that is another example of the vertical integration approach across the wool supply chain, given we are talking
A MAN OF THE LAND HOWIE GARDNER has been a director on “some entity or another” for more than 20 years. The third generation South Otago farmer is a Farmlands director but will step down shortly. He is a member of the Primary Wool Cooperative which is a 50% owner of CP Wool, and he was instrumental in the development of its Just Shorn brand and a board member of Elders Primary Wool until taking up the
with both retail and the manufacturing sector. “We have a significant governance role in NZ Yarn. We are trying to ramp up production and re-establish its credibility in the industry.” It is the only yarn mill of any significance left in NZ and the downstream manufacturers are recognising that, he says. It also makes yarn for the Just Shorn brand, under an exclusive agreement with CP Wool for significant volumes. It’s a direct line to the manufacturing sector, so it is a very strong business model. Most of the manufacturers they work with for NZ Yarn are in Australia. They are working hard to expand their horizons and rebuild relationships with the US. “There is big potential there.” Gardner says former chairman and Elders NZ managing director Stu Chapman has done a good job of establishing relationships in the US and Australia and strong links with China. “Any business is a relationship business and we’ve built that to a level where we’ve got credibility; we’re using that base level to turbocharge this operation.”
chairmanship. He replaces Stu Chapman, who also stepped down as Elders NZ managing director last month. The Garners have a 1550ha sheep and beef farm near Balclutha of which 1150ha is effective. There is a fair amount of bush and production forestry. They run 12,000 stock units; just over 90% is Perrendale sheep, and they run a Perrendale stud flock.
CP Wool has just secured the services of a wool exporter to China, providing the opportunity for contracts to growers. “A lot of growers are looking for more certainty about their budgeting, and contracts are much more of a focus than they used to be. Having our own export arm is providing a significant opportunity there.” Primary Wool Cooperative is a 50% owner of CP Wool; it has 1200 members and the client list is about three times that number. “We’ve got a reasonably strong reach into the wool growing fraternity and that’s been building nicely over the last few years,” Gardner says. The NZ wool industry is still over-serviced, he says. “We’ve got an opportunity with our momentum, our team and our strategic plans to consolidate the industry further, by acquisition or merger, so there are opportunities for consolidation. But it’s easier said than done. “I have been a Farmlands director for 20 years and in the wool industry for the same time so I have been through my share of mergers and acquisitions; so it’s easy to say, not so easy to deliver. But it does need to happen.”
RURAL NEWS // SEPTEMBER 1, 2015
NEWS 9
A prick of a problem? PAM TIPA pamelat@ruralnews.co.nz
WOOL GROWERS must get contamination and particularly thistles out of their wool because it’s jeopardising the industry. That’s the message from Howie Gardner, the incoming chairman of CP Wool, the new name for Elders Primary Wool which kicked in this week. “You could almost say wool is engineering its own demise by the very poor preparation by many of our wool growers,” Gardner told Rural News. “We cannot get that message out there quickly enough nor give it enough emphasis.” The need for preparation and attention to contamination has firmly been rammed home since Elders – now Carrfields – took over the Christchurch spinning company New Zealand Yarns last December. “Thistle head is an absolute disaster in the manufacturing process,” says the third generation South Otago sheep farmer. “There are opportunities in the wool industry but the messages have not been clear enough from the market about the value of well-prepared, contamination-free wool. There needs to be minimal vegetable matter par-
ticularly thistle heads.” Because the messages have not been there, people have assumed their standard was ok. “But that has probably engineered our downfall in many respects,” says Gardner. “If people in the manufacturing process are not getting the product they want, the easiest path is to go elsewhere. “The standards have always been there, but we are now not delivering what the manufacturers need for the efficient operation of their plants. “When you look at what wool is returning currently -- and CP Wool is serious about growing not only our business but the level of returns to the New Zealand wool grower -- people have to play their part, it’s as simple as that. “If they are not producing the product the manufacturers want, the manufacturers will vote with their feet; they have done, they are doing and will do. So we have to lift our game.” Growers are limited in what they can do in pasture. “You can manage it to a certain extent, but we are dealing with live animals, patches of scrub, thistles. The preparation has to either take place preshearing or in the woolshed. It has to be of a very high standard.
“The problem has been – and I can’t reinforce it strongly enough – those market signals haven’t been there -- people have assumed it is ok to have vegetable matter in the
wool, but it’s not ok. “It is a hard message to get out, but the quality and preparation of NZ wool needs to go up.” @rural_news facebook.com/ruralnews
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WOOL TRACEABILITY NOT AN ISSUE A LESSON learnt quickly in the US was they didn’t care about traceability in wool, says CP Wool chairman Howie Gardner. “They care about it in food but they don’t care about wool. We care about fraudulent activity and substitution of product but the consumers doesn’t care much. That is the experience we have had in the US and Australia, he told Rural News. “People say they do but they actually don’t. It is one of those oddball things about consumer behaviour. I think it is largely a marketing tool. “We would love to be able to apply some disciplines to the worldwide industry. We have used isotype testing in the past to establish origin of product and there are new developments in that space that is ongoing. “But as far as the consumer is concerned, our experience is they don’t care.” – Pam Tipa
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RURAL NEWS // SEPTEMBER 1, 2015
10 NEWS
Fertiliser falling from the skies PETER BURKE peterb@ruralnews.co.nz
FERTILISER APPLICATION is slightly ahead of last season says a Taranaki helicopter company chief. Alan Beck, of Beck
Helicopters, Eltham, says farmers – sheep and beef and dairy – so far are not cutting their fertiliser spread this season. Their emphasis is on growing grass. “Many of the farm-
ers we work for are wellestablished and known to us for 20-plus years,” he told Rural News. “Their biggest concern is the need to grow grass. Many say there won’t be a new race, shed or car this year,
but they have to grow grass and fertiliser is the cheapest way.” For Beck’s company it is business as usual. Farmers are mainly applying DAP and high analysis fertiliser; while the fertiliser
Fertiliser application is still continuing, says Alan Beck.
companies are predicting a downturn, Beck hasn’t seen it. Beck’s firm has clients in Taranaki, Waikato and Bay of Plenty. He takes a positive view of the dairy industry, saying the final payout will not be as bad as some people suggest. Despite inclement weather farmers have been at him to get the fertiliser on. Sheep and beef farmers are putting fertiliser on the hills and the word from colleagues in
Gisborne, Hawkes Bay and Whanganui is that they are equally busy. “It surprises me a little, but I suspect a lot was learned from the last downturn when farmers stopped putting on fert and it took them four or five years to recover,” Beck says. “We’re going to see the same scenario on the hills and on dairy farms where there won’t be any capital expenditure, but fertiliser will be a priority.”
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RURAL NEWS // SEPTEMBER 1, 2015
12 NEWS
Cold spring forecast PETER BURKE
peterb@ruralnews.co.nz
Island. We had a very high incidence of frosts in the North Island and in much of the South Island.” Griffiths says rainfall-wise it’s been mixed with parts of Canterbury only recently getting its first good rain in a long time. It’s been sopping wet in Otago Southland, and Manawatu has also had a rough time with heavy rain. Northern regions have been relatively dry though sometimes patchy. Overall it’s been dry in the east and wet in western regions.
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EL NINO seems to be setting farmers up for a cold spring, according to MetService. Meteorologist Georgina Griffiths says September will likely bring more storms with winds from west southwest and lower pressures over the country. MetService predicted a cold August and that has materialised. Griffiths told Rural News the
temperatures over the past few months have been a shock and it’s been a long time since New Zealand has had a winter like this temperature-wise. “It’s probably been about five years since we have had temperatures like this in the North Island. In the South Island June was patchy and the temperatures swung; it was bitterly cold with snow in late April and May and into the start of June. “July was cold again for the South
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DAIRYNZ TEAM leader for productivity Rob Brazendale says smart pasture management can give the average dairy farmer $40,000 of extra feed. He says it’s realistic for farmers to harvest an extra tonne of dry matter per hectare between now and Christmas and that
could be worth $300 $400/ha -- a $40,000 saving. Brazendale runs DairyNZ’s Feed Review Visit campaign whereby dairy farmers register for a visit by a DairyNZ representative to their farm for an on-thespot review of their feed situation. So far, at least 700 farmers nationwide have signed up for the
review of how they will manage their feed from calving to balance date. The 90-minute visits give farmers a second opinion on their feed situation to help them reduce costs in this very low payout year. “So far we have visited 400 farms and appointments have been set up with the rest. So far the number of farmers’ way off-track [feedwise] is 5 - 10%, the majority
need small tweaks and around 30% are getting it spot on.” Brazendale says the take home message to farmers is to grow the extra dry matter. “It is definitely the cheapest form of feed and one we’d recommend. But this depends on the soil temperature being higher than seven degrees and the soils not being waterlogged,” he says.
RURAL NEWS // SEPTEMBER 1, 2015
NEWS 13
Positive trends for dairy – banker PETER BURKE peterb@ruralnews.co.nz
THE DOWNTURN in the dairy industry is likely to bring positive changes in the way farms are managed, says ANZ’s managing director for commercial and agri, Graham Turley. He told Rural News that farmers will focus more on good business and farm management and be better at budgeting and understanding their costs. They will drive to generate better profits and overall
this will create a more sustainable financial platform for the industry. Turley says in the past many farmers ran their businesses on low cashflows and profitability, with no real focus on what their true costs were. Good payouts and high land values had shielded them from potential problems, but the current downturn has exposed the fallacy of that business model. Turley says now is the time for belt tightening.
“There will be good outcomes and we’ll see innovations such as a reduction in farm working expenses. Farmers are very resilient and in situations like this they hunker down. “When there was an $8.35 payout it was easy and they became slack, which is natural behaviour in a number of industries. If this downturn contin-
If it goes on for another couple of seasons clearly there will be pain, if it bounces back there will be a lot less. “As in all industries, some people just aren’t too good at business; equally in the dairy industry there are some farmers who aren’t good farming and business people and this downturn may push them over the edge. But
ues for some time there will be hardship, but at the same time there will also be some good new farm management and business practices emerge.” Turley says if the downturn continues, he expects land values to fall. The number of farmers needing to exit the industry will to some degree depend on how long the low payout continues.
this would have happened to those farmers sometime in the future anyway, regardless of what is happening now.” He says the casualties of the downturn are those with high cost systems who haven’t adjusted to the present situation as well as those who have just entered the industry. Turley says it’s going to be tough for sharemilkers.
“We are putting a lot of support around them, but it has to involve the banker, the sharemilker and the farmer. “The farmers are the other half of the sharemilkers and we all need to get together and help them through this very tight situation. It is always hard for the guy that has just come in or expanded.”
ANZ’s Graham Turley.
NOT ALL DOOM AND GLOOM GRAHAM TURLEY says people have to be careful not to start spreading doom and gloom about the dairy industry. He says ANZ has a view that the changing demographics in NZ’s main markets means there will be more demand for protein at some stage. Turley believes that at some point demand will outstrip supply and the rest of the world doesn’t have the natural resources to produce the foods NZ has. “So it’s a matter of when and we have to be careful about the gloom and doom merchants,” Turley adds. “It’s going to be tough and we have to work through this period, but there is no reason why the good times won’t come back. “We just have to manage volatility a bit more carefully. The industry is still a strong industry and it will come through this downturn and be much more sustainable – very much like the kiwifruit industry and wine industry,” he says.
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RURAL NEWS // SEPTEMBER 1, 2015
14 NEWS
Lamb steady, beef booming BEEF AND lamb exports paint two different pictures, according to the ASB’s Farmshed Economics report for August. ASB rural economist Nathan Penny says the rise in lamb prices in August is normal for this quiet time of the season. And because the New Zealand dollar went largely
sideways during the month, the lift is similar in NZD and foreign currency terms. “But putting aside seasonal factors and the earlier NZ dollar fall, nothing much is doing in lamb markets. The same recent drivers of the price weakness are still in play,” Penny adds.
“Lamb supply, in particular, continues strong, pushing down prices. Strong domestic production in the key UK and Chinese markets has increased lamb (and sheep meat) supply. Supply has been similarly high here in NZ and in Australia. “All up, we expect
Nathan Penny
underlying lamb prices (in foreign currency terms) to remain weak over the next few months, particularly relative to a year ago.” However, Penny says with further NZ dollar falls and the normal seasonal lift in prices may lead to a modest lift in farmgate prices.
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Meanwhile, the ASB says records continue to tumble for beef prices. “Over the July-August, the beef index has lifted a further 7%, setting fresh record highs. However, a potential price ceiling is emerging. It is likely that NZ will fill its US quota earlier this year, compared to last. This means average export prices may fall or plateau as meat companies are forced to divert beef to other lower-paying markets over coming months. But whether this will
translate into lower farmgate prices is less clear. “Some meat companies may still have their share of quota in hand. As a result, robust local competition for beef is likely to keep prices strong. Either way, beef prices are likely to stay high over the coming months, though the current stratospheric prices may give way to merely sky-high ones. With that in mind, the outlook for the beef sector remains very positive.” @rural_news facebook.com/ruralnews
WOOLS OF NZ PROTECTS BRAND WOOLS OF New Zealand (WNZ) is using world-leading traceability technology from Oritain, Dunedin, to strengthen the credibility and integrity of its products and combat unethical behaviour. “As an international sales and marketing company, being able to prove the country of origin for wool products is critical to protecting our brands and maintaining integrity throughout the supply chain with our brand partners,” says Mark Shadbolt, chairman of WNZ said. “WNZ required a robust scientific solution to verify the country of origin of our wool throughout all stages of the supply chain. At present we rely on traditional paper trails.” The Oritain system uses science to trace a product back to its geographical origin by collecting and analysing a large number of samples to determine the unique fingerprint of the product, in WNZ’s case wool. The fingerprint is stored in a database which can be assessed against finished product samples to check their authenticity. “Oritain’s technology is ideally suited for companies looking to protect their brand value and integrity,” says Oritain chief executive Grant Cochrane. “Companies using our services are also better placed to add value for their suppliers and brand partners in the market.” He says the origin fingerprint couldn’t be manipulated without detection, so it provides WNZ and other Oritain customers with a robust means of verifying whether a product with their brand on it is genuine. Shadbolt says NZ strong wool is recognised as the best wool in the world for interior textiles. “As wool moved through the international supply chain, there was scope to dilute quality and integrity by blending wool of other origins, notwithstanding that wools of various origins are often blended to meet particular end use specifications. We need to know when this is happening as it can undermine quality and affect our suppliers’ and customers’ integrity.” Shadbolt says the fact that WNZ would be the first in the world able to test products and prove wool origin using Oritain’s technology would give extra confidence to buyers sourcing their wool through WNZ. “WNZ is a market-driven company and our international customers want assurance they are getting what they’re paying for. “This further differentiates our product, while ensuring the supply of genuine NZ wool blends, resulting in greater consistency and customer loyalty,” he says. This technology strengthens the provenance marketing strategy WNZ is pursuing through its brands, particularly Laneve, which is underpinned by traceability and integrity of supply, Shadbolt says. – Pam Tipa
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RURAL NEWS // SEPTEMBER 1, 2015
NEWS 17
No pay, but sharemilkers battle on regardless SUDESH KISSUN sudeshk@ruralnews.co.nz
WHO WOULD work for three months without pay? And who would keep getting up at 5am every day to milk cows despite knowing there will be no milk cheque arriving this month? These are the questions Taranaki lower order sharemilker Geoff Batchelor posed to Rural News on his farm last week. Batchelor has received only one milk cheque since May and it didn’t even cover the monthly wages of his full-time worker Steven Chisnell. Yet Batchelor says he gets up every day to milk cows because that’s his passion. He says the low milk price is a blip and will bounce back. Batchelor and his wife Deanne milk 570 cows for farmer Paul and Tracy O’rorke at Opunake, 45km south of New Plymouth; he employs Chisnell full-time and Chisnell’s wife as a part-
Sharemilker Geoff Batchelor continues to get up and milk each day at 5:00am despite no milk cheque coming this month.
time relief milker. Batchelor says in common with other dairy farmers and sharemilkers they have found the last few months tough. “Where else would you have a worker turning up for work at 5am in the rain despite not receiving a decent
milk cheque since May? “The cheque we received in August wasn’t enough to pay my staff’s wages, let alone our wages; I’ve been dipping into my overdraft to pay my staff, my wife and myself and cover farm expenses.” Like other sharemilkers Batchelor is
paid by Fonterra as per the sharemilking contract with the farm owner. Fonterra farmers are paid an advance rate for milk within two months of collection and also get capacity adjustment payments; with the milk price dropping below the advance rate, many suppliers are going
without milk income for months. Batchelor, who made some investments in property, recently sold a house and this has also helped his financial position. Despite the hardship, he says he loves dairy farming. “I know there are other sharemilkers worse off than me; we are getting support from the farm owner and are willing to ride out the storm.” Federated Farmers Sharemilkers section chairperson Neil Filer says many sharemilkers and farmers have gone without milk cheques in the past few months. Lower order sharemilkers and farmers with large herds are facing issues, especially paying staff. Filer says some farmers are passing on the 50c interest-free loan from Fonterra to sharemilkers to help ease their financial plight. “I’m getting calls daily from sharemilkers who are facing financial issues,” he says.
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RURAL NEWS // SEPTEMBER 1, 2015
18 NEWS Have milk prices bottomed out? OCD is hopeful.
LESS MILK COMING OPEN COUNTRY Dairy has reduced its milk production forecast for the season by 5%. Chief executive Steve Koekemoer expects a similar drop among other dairy companies. “Although this is early in the season, we owe it to the market to indicate our likely drop in supply,” he says. The expectation is that UK milk supply will also drop after the grazing period due to feed costs and increased culling rates. China, NZ’s largest market, continues to be weak, because of low consumer demand and the use of
internal milk. Some larger processors in China are seemingly being pushed to use local milk to prevent dumping even though it is 300% more expensive than imported product. Any surplus milk is also being spray dried to use later to protect local supply. The much higher local milk costs impact their processing costs which are then passed on to consumers and impact overall consumer demand, he says. “This will work through the system and demand will outstrip supply in the long term once inventories are reduced.”
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Open country boss picks a price recovery
ruralnewsgroup.co.nz/rss SUDESH KISSUN
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24th July 2015:
Line of 72 lambs processed 20% were infected with sheep measles, 8 were condemned!
sudeshk@ruralnews.co.nz
NEW ZEALAND’S second largest dairy company is reporting increased activity from the market following the August 19 GlobalDairyTrade (GDT) auction. Open Country Dairy chief executive Steve Koekemoer has told farmer suppliers this indicates dairy prices have hit bottom and recovery is imminent. In the company’s August newsletter to suppliers, Koekemoer admits it is difficult to take any positives out of the current situation facing farmers. “It may be a bit premature, but post the last GDT event we have started to see some increased activity from the market,” he says. “This indicates that we might have arrived at the bottom of the cycle and see recovery over the next few weeks. “It’s a tough call and will be a long road but hopefully some light at the end of the tunnel starting to show. The next two GDT auctions will be key; all eyes will be on it to confirm
an upward trend.” He says milk powder prices remain below acceptable levels and are impacting forecast payouts by processors. After 10 consecutive falls in the GDT price index, the Aug 19 GDT auction saw a 14.8% rise; NZ’s major export, whole milk powder, was up 19.1%. Koekemoer says the WMP price bounce-back offsets some of the massive falls in the past trading events. He believes the big driver for this has been the reduction of product available and NZ announcing a drop in milk supply for the 2016-17 season. “With supply currently still reported to be high around the globe, customers have not had any signals to increase demand until this point. Clearly, this is not only a NZ issue as other exporting countries cannot compete at current prices. They are also finding themselves in a difficult position and having to reduce their milk price accordingly.” Koekemoer expects to see more EU product going into intervention,
removing product from the market. “The current supply/demand matrix is a real concern for dairy as a whole and one that can only be corrected by bringing this back into balance.” Like other dairy companies, OCD was also forced to reduce its payout to farmers. It has revised its advance rate for September-October to $2.55/ kgMS. It has also adjusted its full-year forecast to $3.50 - $3.80/kgMS. To help farmers the company settled its previous season final payment early -- on August 3, “to help in… very difficult times. In addition to this we have also split settlement period 1 of the 2015-16 season, again to return this money to our supply base earlier”. “We will settle June-September milk in November, and October milk will be paid in full in December. The other settlement periods remain as normal. We will continue to assist in this regard where possible as we proceed through the season.” @rural_news facebook.com/ruralnews
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RURAL NEWS // SEPTEMBER 1, 2015
NEWS 19
Unlocking velvet’s secret properties NEW ZEALAND and South Korean scientists say they will soon be able to identify the compounds that give deer antler velvet its immunity-boosting properties. If they succeed in this they will be able to promote velvet extracts as having a precise measure of the active ingredients they contain. Deer Industry New Zealand (DINZ) says this will be important in getting such products registered for sale as healthy functional foods. “Velvet’s reputation as a health tonic goes back 1000 years and it is still widely used in Korea and China in mixtures with ginseng and herbs in tonics and traditional medicines,” says DINZ chief executive Dan Coup. “But these days, government regulators and consumers everywhere want the claims made for medicines and tonics to be supported by scientific evidence. It appears we are on the threshold of doing this with at least one of the healthpromoting properties attributed to velvet.” AgResearch scientist Dr Stephen Haines says bioactive compounds in
velvet have been of great interest to NZ scientists since research began in the 1990s. “We had shown that velvet extracts boosted immune function in celllines and in animals, but we didn’t know what was doing it. Velvet is a complex mixture of thousands of components, making it difficult to isolate and identify the ones that are biologically active,” he says. But recent improvements in mass spectrometry and highspeed data processing have enabled researchers to sort through the thousands of peptides, proteins and related compounds in velvet, to find the ones with bioactive properties. The research by AgResearch, on behalf of VARNZ, is a joint venture between DINZ and AgResearch, with support from the Korean Ginseng Corporation (KGC). KGC is the world’s largest ginseng company, with annual sales of $US800 million, based on 200 ginseng products. In recent years, the company has developed 19 products that also contain deer velvet and in so doing has become the largest buyer
of the NZ product. The most active extract consistently stimulated high levels of activity in the natural killer cells that fight
infection in an animal before the immune system starts producing antibodies. It also had good anti-inflammatory properties.
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RURAL NEWS // SEPTEMBER 1, 2015
20 NEWS
Japanese trade adds to season’s strength for Zespri PAM TIPA pamelat@ruralnews.co.nz
ZESPRI IS doing more business with Japan this season than ever before, says Dave Courtney, general manager, grower and external relations. That’s just one interesting aspect of this season, which is shaping up to be a good one, Courtney told Rural News. “The Japan market is relatively empty of fruit because a lot of fruit is going into China because the Japanese yen is very weak at the moment. A lot of people are shifting their product into China to take advantage of the exchange rates there. “There is also quite a shortage of other fruit going into Japan as well so we have managed to push volumes into that market. “That is our biggest paying market so it helps grower returns because the returns are split across the markets we get our fruit into – the more fruit we get into Japan the higher the return will be.” China’s economic slowdown has not had much effect so far. “We have done more in China this year than last year.” Overall they are having a good
season, particularly with Gold because it is a new variety; there’s been a big leap this year in volume and another big leap is forecast next year. “So getting it up and away and sold in such good order was very good for us.” Zespri can now start putting numbers to its forecasts of per-tray returns (see sidebar) -- rather than giving only a price range -- as it is now well into the season. However it will change as the season progresses. Final figures don’t come until the end of the financial year but by January or February they will have a good view of what they will be. The forecast for Green is down to $4.87 per tray from $6.01 last year because of the volume, the highest ever yields. “Last year they did just under 70m trays total from the industry. There was also large frost in Chile so their volumes were down 50%. The market was empty of kiwifruit last year and we had a very low Gold volume as well. This year they have 81 million trays out of New Zealand, quite a substantial increase, but also Chile has had a 60% increase in its volume from last year.
Zespri’s Dave Courtney.
“They have a lot more Gold going into the market this year as well.” But on a per hectare basis Green is virtually the same as last year, to $53,841 - $53,884/ha because of a 2000 tray yield increase. “We don’t have any more hectares [planted] but there’s a significant
increase in yield,” Courtney says. “With Gold the forecast ($7.76 per tray) is actually higher than we forecast in May. Gold is performing better than we expected which is fantastic news because the volumes will increase even more next year. “With the Gold this year the plan
was to build market acceptance and demand, leaving customers and consumers wanting more and that’s what we’ve done. It’s a good product that has been received enthusiastically by our markets around the world.” Around 31m trays of Gold will be produced this year vs 18m last year.
IN THE PINK FROM GREEN AND GOLD ZESPRI IS forecasting its revenue from fruit and service payments will be up $155.8 million on last year. In its August forecast it expects those payments, excluding the loyalty premium, to reach $1.07b for the 2015-16 season. The current forecast is an increase of $155.8m vs the $915.8m achieved in 2014-15
season. The forecast will be updated this month, then again later in the year. The August 2015 forecast for Green of $4.87 per tray sits at the lower end of the range previously published (July range $4.80 $5.20) and compares to $6.01 in the 2014-15 season. But orchard productivity has substantially increased, so the August 2015 forecast per hectare return is
$53,841, which is close to the same record return achieved in 2014-15. August is the first forecast when Zespri puts out tray figures to the industry rather than a range. The August forecast for Gold orchard gate return is $7.76 per tray, which is at the mid-point of the July range of $7.60 - $7.90 vs $9.80 last year. The per hectare
return is forecast at $67,378 vs $73,890 last year. Green Organic is forecast at $6.75 per tray (July range $6.70 - $7.00) vs $7.37 last year. The per hectare return is forecast at $49,565 vs $43,996 last year. Green14 is at $6.69 per tray (July range $6.50 - $7.10) vs $7.08 last year. The forecast per hectare return is $41,040 vs $29,682 last year.
Zespri is forecasting increased revenue for both green and gold growers.
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RURAL NEWS // SEPTEMBER 1, 2015
22 NEWS
Agri sector ‘waking up’ to governance PAM TIPA pamelat@ruralnews.co.nz
NEW ZEALAND has some of the most innovative approaches to agribusiness in the world, but it has a ‘’glaring gap’’ in innovation in governance, says the Institute of Directors. The agri sector is starting to “wake up” to the value of good governance, says chief executive Simon Arcus. The institute recently launched a
‘Rural Governance Essentials’ course, with the trial in Invercargill booked out. Dairy farmers made up 43% of the attendees. Courses are now planned for Christchurch on October 27, Palmerston North on November 10 – the first time the institute has done a course in Palmerston North - and Hamilton on November 24. Arcus told Rural News the rural sector has long insisted on the need for
a course tailored to the rural environment. The institute had seen the climate changing for the health of the sector and thought it was time to get in and do something. “Governance is one of those mystifying words, and our aim is to demystify it,” he says. “The courses are open to everyone… running their own rural businesses or interested in becoming directors in that area. The principles of governance
apply across all types of business but sometimes the learning and interaction can be enhanced by being from the same sector.” People in the room share stories and experiences. “It is not one-way traffic when it comes to the facilitating; we like to have people as involved in the conversation as they can be. Anyone from the sector has challenges and successes they like to share and contribute.”
The institute started the courses in regions with strong demand, but will look at other regions; the principles of good governance apply to all agricultural sectors. Topics include succession planning, farm safety, risk management and whether or not you should have an independent director. All those things will have rural nuances or rural relevance, Arcus says. “Tough times are good times to look at governance, though it seems counter-intuitive when, for instance, dairy farmers now have a lot of other things on their minds. When you talk about governance you talk about long term strategic planning…. So if we are going to look beyond the horizon the best time to start is now.” The courses are perpetuating their own demand. “We are picking up strong demand for farm safety, farm governance training and financial training, which is coming out of the basic
Simon Arcus: “Governance is one of those mystifying words”.
financial stuff we look at on the day. That is busting myths about how farmers take health and safety. People on the courses are really interested in making that a feature of their business.” He says 100% of the people who did the course in Invercargill say they would recommend it. “It was great to see it was hitting the mark,” he says. “We have learned through the courses that farmers are also good managers. They are dealing at times with sophis-
ticated businesses these days. There are multiinvestor syndicates, intergenerational family relationships, shareholders, share milking – all unique to the industry; that’s why the course is working as well as it is.” They will look at where the need is for future courses. “Coming through strongly are succession planning, financial management and health and safety, where we could think about doing more.”
MORE PEOPLE FOR RURAL SUPPORT TRUSTS PAM TIPA pamelat@ruralnews.co.nz
THE 100 extra people to be trained to help farming families get support to deal with stress-related issues will mainly work through the Rural Support Trusts. They will be trained in existing courses to recognise and respond to stress and mental illness, and in phone counselling, the Ministry for Primary Industries told Rural News. The extra people, announced by Health Minister Jonathan Coleman and Primary Industries Minister Nathan Guy, will be funded from a one-off $500,000 extra cash grant for mental health initiatives announced at the National Fieldays. The cost to recruit and train more support people will be met under this scheme, MPI says. Rural Support Trusts are run mostly by volunteers whose travel and operating costs are reimbursed. For this initiative a mix of paid and voluntary support people will be used. The trusts, with input from DairyNZ,
Federated Famers, Beef + Lamb NZ and other rural networks, will find, select and train suitable people. The aim is to adequately support communities via the trusts’ already well known and effective networks. Minister Guy says vets and farm advisors will also be trained to recognise and refer people. “This expanded workforce support network has just started operating in Waikato and more trained rural supporters will be working in communities by the end of September,” Guy says. “Farmers are resourceful and are used to coping with all kinds of challenges. While this season may be tough for some, we know that many parts of the primary sector are seeing increased export returns. The mediumlong term outlook for the primary sector is bright with the rise of Asia and growing global demand for high quality food products.” Work on the joint one-off $500,000 funding boost package continues and more details will be announced soon.
RURAL NEWS // SEPTEMBER 1, 2015
WORLD 23 US FARMERS WANT CHINA ACCESS ALAN HARMAN
US BEEF and pork producers are bemoaning their lack of access to the huge Chinese market. China is one of few markets that never reopened to US beef after a case of bovine spongiform encephalopathy (BSE) -- commonly known as mad cow disease -- in 2003. Then, and for years, the loss of the China market wasn’t a concern – the Asian giant was not a large importer of beef. But that changed in 2012 when beef import demand in China surged due to strong economic growth and a sharp decline in domestic production. China now imports more beef every month than it did in an entire year in 2011. In first-half 2015 imports were US$910 million (NZ$1.38b) – up 28% from a year ago. And the US industry remains sidelined while Australia, Uruguay, New Zealand, Argentina and Canada are all gaining a strong foothold in China. Key competitors have also got ahead via free trade agreements that cut import duties on their beef and pork products. US beef exports were US$7.13b (NZ$10.8b) and pork exports US$6.67b (NZ$10.1b) last year, both records. Still, US Meat Export Federation president and chief executive Philip Seng says being shut out of the Chinese market affects the prices US beef cuts fetch elsewhere in Asia, as China has begun to strongarm the global beef trade.
“For the US beef industry, the lost opportunity due to our lack of access to China is now about US$100 (NZ$151.62) per head,” he says. Seng says China’s stance on BSE is not science-backed. “Considering we export to 100 countries, all [convinced] US beef is safe, it would be easy to view China’s import conditions as overly strict,” Seng says. “But [many more beef exporting] countries are meeting China’s requirements, aware of the market’s potential global impact on beef demand.” In mid-2014, he says, China began testing beef imports from Australia for hormone residues, citing a hormone ban in place for a decade, but only sporadically enforced. Australia responded quickly with certification to meet China’s demands. Australian exports to China dipped nearly 50%, but temporarily, as its producers adjusted and shipments to China shot back up. When Canada confirmed its most recent BSE case in February, its food inspection agency voluntarily suspended export certificates to China and began talks to restore access. Trade resumed in early April. Similarly, in Argentina, where trade was suspended due to a finding of vesicular stomatitis in dairy cattle, government and industry reps rushed to China to meet officials, reaching agreement to resume trade. Says Seng, “Our competitors have learned that the best way to do business with China… is to meet its expectations.”
California drought tightens grip on farming DROUGHT ON the US West Coast is tightening its grip on California agriculture, squeezing 30% more workers and cropland out of production than in 2014, according to the latest drought impact report by the UC Davis Center for Watershed Sciences. In 2015, the state’s farm economy will lose US $1.84 billion and 10,100 seasonal jobs because of the drought, the report estimates. And it forecasts how the industry will fare if the drought persists through 2017. The researchers say the industry overall remains robust. The agricultural economy is still growing in this fourth year of severe drought, watered by vast but declining reserves of groundwater, which will offset 70% of the surface water shortage this year, California is the world’s richest food-producing region. Strong global demand and prices for its fruit, nuts and vegetables has helped sustain the farm economy along with intrastate water transfers and shifts in growing locations. “We’re getting by remarkably well this year – much better than many had predicted – but it’s not a free lunch,” said lead author Richard Howitt, a UC Davis professor emeritus of agricultural and resource economics. He says the heavy reliance on groundwater comes at ever-increasing energy costs as farmers pump deeper and drill more wells. Some of the heavy pumping is in basins already in severe overdraft – where groundwater use greatly exceeds replenishment of aquifers – inviting further land subsidence, water quality problems and
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Direct costs of the Californian drought to agriculture will be US$1.84b for 2015.
diminishing reserves. Several small rural communities have high unemployment and dried-up domestic wells because of the drought, particularly in the Tulare Basin. “If a drought of this intensity persists beyond 2015, California’s agricultural production and employment will continue to erode,” said co-author Josue Medellin-Azuara, a water economist with the UC Davis Center for Watershed Sciences. The UC Davis team used computer models and the latest estimates of surface water availability from state and federal water projects and local water districts. They forecast several drought-related impacts in the state’s major agricultural regions for the current growing season, including: ■■ Direct costs of drought to agriculture will be US$1.84b for 2015. ■■ Total impact on all economic sectors will be US$2.74b ($2.2b in 2014). ■■ Farmers and ranchers gross US$46b annually, a small fraction of
California’s US$1.9t-a-year economy. 10,100 seasonal jobs will go, vs the researchers’ 2014 drought estimate of 7500 jobs. The spill-over effects of the farm losses on other sectors will cause 21,000 lost jobs. ■■ The effects of continued drought through 2017 (assuming continued 2014 water supplies) will likely be 6% worse than in 2015. ■■ Gradual decline in groundwater pumping capacity and water elevations will add to the incremental costs of a prolonged drought. Meanwhile, the scientists noted that new state groundwater laws requiring local agencies to attain sustainable yields could eventually reverse the depletion of underground reserves. “The transition will cause some increased fallowing of cropland or longer crop rotations but will help preserve California’s ability to support more profitable permanent and vegetable crops during drought,” said report co-author Jay Lund. ■■
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RURAL NEWS // SEPTEMBER 1, 2015
24 MARKETS & TRENDS MARKET SNAPSHOT
BEEF MARKET TRENDS
BEEF PRICES
c/kgCWT BEEF PRICES
NI NI
Change
P2 Steer - 300kg
M2 Bull - 300kg c/kgCWT
-20 -10
P2 Steer - 300kg M Cow - 200kg
+5 -20 -10 +5
Local P2Trade Cow - 230kg
n/c -10
Slaughter Local Trade - 230kg
Slaughter
5.75 5.00 5.30 6.00
4.30 5.80 4.20 5.30
4.30 5.30
5.90 4.30
3.30 5.45
3.65 6.02
Mutton
- 16.0kg MX1PM - 21kg
+5 n/c
5.43 3.30
5.38 3.30
5.88 3.65
PH - 22.0kg PM 16.0kg
+5
4.70 4.08
SI Lamb
3.25 4.70
SI Lamb
4.90 3.25
Mutton
3.20
5.90
4.90
Change
Last Week
n/c Change -11
2.66 Last Week 8.86
Export Market Demand NZ$/kg
95CL US$/lb NZ$/kg
n/c
2.66
2 Wks Ago 2 2.66 Wks 8.97 Ago
2.12 5yr Ave 5.89
2.89
2.12
7.58
Change
2Wks Ago
+1% Change +1%
67.7% 2Wks Ago 59.8%
Procurement Indicator % Returned NI % Returned SI
% Returned NI % Returned SI
+1%
67.7%
3 Wks Ago
366.9% Wks 59.1% Ago 66.9%
5.89
Last Year
5yr Ave
65.95% Last Year 54.7%
74.1% 5yr Ave 66.9%
65.95%
74.1%
+1% 59.8% 59.1% 54.7%
66.9%
2.88
3.05
5.43
5.38
5.91
Last
n/c Change -7
NZ$/kg
UK Leg £/lb NZ$/kg
& venison prices are reported as gross (before normal levies & charges are deducted). Lamb & mutton prices are reported nett (after levies & charges are deducted). Beef
1.58 Last 8.62 Week
n/c
1.58
2 Wks Ago 2 1.58 Wks 8.69 Ago 1.58
Last Year 5yr Ave 2.10 1.92 Last Year 5yr Ave 8.28 8.43 2.10
-7 8.62 8.69 8.28
1.92
8.43
Procurement Indicator Change
Procurement Indicator % Returned NI % Returned SI
+1% Change +1% +1%
% Returned NI
2Wks Ago
3 Wks Ago
64.4%
63.3%
64.4% 2Wks 62.6% Ago
363.3% Wks 61.6% Ago
Last Year 5yr Ave 73.9% 72.9% Last Year 5yr Ave 72.5% 67.4% 73.9%
+1%
% Returned SI
62.6%
61.6%
72.5%
72.9%
67.4%
Venison Prices Change
2.88
UK Leg £/lb
n/c
Procurement Indicator
3.05 5.90
Export Market DemandWeek
2.89 Last Year 7.58
2.88 5.38
2.88 5.43
Export Market Demand
5.91 5.88
n/c +5
5.90 5.86
5.38
5yr Ave
8.97
5.43
Last Year
2.66
8.86
5.38
-11
5.86 6.03
Slaughter
6.03 6.00
5.38 5.46
5.43
+5
21kg
Change
Export Market Demand 95CL US$/lb
MX1 PX - 21kg - 19.0kg
5.46 5.43
5.43 5.51
+5
- 19.0kg YM -PX 13.5kg
+5
YM -PH 13.5kg - 22.0kg
PH - 22.0kg
PH - 22.0kg PM 16.0kg
Slaughter Mutton MX1 -
5.51 5.48
5.98 Last 6.00 Year
3.30 5.50
4.30
6.02 5.98
+5
+5
2 5.41 Wks 5.43 Ago
n/c +5
5.90
5.45 5.41
5.46 Last 5.48 Week
MX1 PX - 21kg - 19.0kg
4.20
5.50 5.46
+5
Mutton
+5
Change
5.13 4.13
PM - 16.0kg
Last Year
- 19.0kg YM - PX 13.5kg
3.20 4.20
5.90 4.40
YM - 13.5kg
c/kgCWT
2 Wks Ago
NI Lamb
4.20 5.13
4.40 5.75
NI Lamb
Last Week
4.13 5.08 4.08 5.03
6.00 5.00
Change
LAMB PRICES c/kgCWT
5.00 6.00
5.30 6.00
n/c
5.08 Last 5.03 Year
5.00 6.10
5.80 4.80
-10
Last Year
2 6.10 Wks 6.00 Ago
6.00 4.80
-10 n/c
M Cow 200kg M2 Bull - 300kg
LAMB MARKET TRENDS
LAMB PRICES 2 Wks Ago
4.80 5.90
n/c
M Cow - 200kg
4.80 6.10
n/c -20
Cow - 230kg P2 P2 Steer - 300kg
-20 n/c
M Cow 200kg M2 Bull - 300kg
Bull - 230kg 300kg LocalM2 Trade
SI
6.10 Last 5.90 Week
-10
Local P2Trade Cow - 230kg
n/c
Change
Cow - 230kg P2 P2 Steer - 300kg
SI
Last Week
Venison Prices NI Stag - 60kg SI Stag - 60kg
NI Stag - 60kg SI Stag - 60kg
+20 Change +20 +20
+20
Last Week 7.70 Last 7.60 Week 7.70
7.60
2 Wks Ago 2 7.50 Wks 7.40 Ago 7.50
7.40
Last Year 5yr Ave 6.50 7.35 Last Year 5yr Ave 6.70 7.62 6.50
6.70
7.35
7.62
Beef & venison prices are reported as gross (before normal levies & charges are deducted). Lamb & mutton prices are reported nett (after levies & charges are deducted).
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rent Boyce explains, after purchasing a new set of Cooper A/T3’s from Tasman Tyre Treads; “My farm consultancy business typically means driving on-road over Takaka Hill (272 corners) 2-3days/week, Whangamoa or Hope Saddles for the rest of the week, and when I get to the farms, spending around 1-2hrs/day of 4WDing.
Brent Boyce Farm Consultant
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RURAL NEWS // SEPTEMBER 1, 2015
MARKETS & TRENDS 25 NEWS
PRICE WATCH
BEEF:.
Farmgate prices for manufacturing beef are under pressure and operating prices declined last week. The combination of quota issues, too many cows hitting the works - from both islands and a weaker US market are driving the price fall. There has been no let up in the number of cows coming forward, and many expect it to continue for a while yet. Subsequently cow scheudules are expected to be cut significantly in the hope of reducing the flow; while bull prices are expected to ease back at a slower pace. In the South Island, the shortage of prime cattle for export and local trade continues to underpin prices. However buyer resistance is said to have kicked in for local trade, and will prevent the price from rising too much further.
INTERNATIONAL
BEEF:
US imported beef prices took a step back last week, after several weeks of limited trading. This is unusual for this time of year, when the market would typically be lifting week on week. While US fed cattle supplies remain tight, and imported supplies later in the year are expected to be tight as Australia and NZ both run out of quota, current inventories are high enough for this not to be concerning
end-users too much. End-users are hesitant to be buying too far forward, as the price expectation for January and Feburary meat is weak, given the additional supplies as the quota year renews. On top of this, lower priced pork and poultry also continue to make their presence felt at retail, keeping the domestic 90CL price below last years highs, and the slow down in the Chinese economy and collpase of oil prices are keeping the trading environment subdued. Imported prices are unlikely to see much upwards momemtum in this environment. Imported 90CL prices were at US$2.32/lb last week, falling 10c/lb over the week. Imported 95CL prices are steady at US$2.66/lb, however on limited bidding.
SHEEP: In the North Island lamb slaughter numbers have dropped significantly, and a gap in supply is expected towards the end of the season. In contrast, slaughter numbers in the South Island are on the rise as finished lambs begin hitting the works. Spot market prices continue to increase weekly in both islands, but remain below contract prices.
VENISON: Venison schedules are increasing on a weekly basis as the
Overseas Wool Price Indicators
WOOL PRICE WATCH Change
20-Aug
13-Aug
Last Year
Coarse Xbred
-5
5.76
5.81
5.38
Fine Xbred
-2
6.82
6.84
5.72
Lamb
-
-
-
-
Mid Micron
-
10.53
-
7.51
Indicators in NZ$
Indicators in US$/kg Coarse Xbred Fine Xbred Lamb
20-Aug
Last Year
13-Aug
-4
3.80
3.84
4.53
-2
4.50
4.52
4.81
Mid Micron
Change
-
-
-
-
-
6.95
-
6.33
production period for the European chilled trade begins. Chilled production will continue through until around the end of Oct. With chilled orders being finalised in the market, reports suggest that the market is performing to expectations and is largely on par with last year. A lower NZD will act to boost returns higher than last year.
Slaughter is slow across both islands, largely driven by a nationwide trend of declining deer numbers. There are also many farmers who holding on to deer waiting until schedules reach $8.00/kg before sending them to slaughter. As a result, procurement pressure may see schedules lift quicker than usual this season.
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RURAL NEWS // SEPTEMBER 1, 2015
26 AGRIBUSINESS
Passion ignited in hort’s next generation PAM TIPA pamelat@ruralnews.co.nz
SPONSORING STUDENTS to attend the national conference is one way Horticulture NZ has set out to engage the next generation.
The spin-offs created for both the industry and the students have been a great success. Ten “fantastic” young people – all students involved in horticulture related courses – came to this year’s conference
in Rotorua, says HortNZ senior business manager Sue Pickering. “They started to develop big picture thinking and they are just firing. Their enthusiasm amazes me.” HortNZ administers
several tertiary scholarship packages and attending the conference has been part of that for the last three to four years, led by HortNZ in partnership with the Horticentre Trust and Massey University, although students
Ohakune grower Bruce Rollison’s success in growing and providing Brussel sprouts to North Island supermarkets is an example of why the horticulture sector is attractive to young people.
from a number of tertiary institutions attend. “We provide funding for the students for their studies but an add-on is we get them to the conference. The idea is to connect them with industry. “It has been a really good idea, firstly for their degrees, and to promote getting young fresh people into the industry. “It is part of a bigger picture of not only supporting young people through their studies -that’s the supply end -but also retaining them and their interest in the industry. It makes sure they have the opportunity to find their fit because the hort industry is so diverse and one strength
Order Corson maize seed this season.
now embedded in bachelor of agricultural science, bachelor of agricultural commerce – they are quite spread out.” Massey, Lincoln, Auckland and Waikato students at the conference realised they had a community outside their university so they are talking about interconnection between them. “So that’s one of the ideas…. It’s quite small but quite exciting. I am always amazed at how these small ideas grow.” Pickering says it is a privilege to be involved with the student interaction and “it is one of those little gems that is starting to get some traction”. • More on page 27
ZESPRI CALLS FOR GRADS
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is there are a lot of pathways. One difficulty is figuring out where they want to go.” The initiative started quite small, but is developing. Some of the presentations and sessions this year got the students seeing what an exciting industry it was to be part of, but also thinking about ideas to plan for the future workforce. “One idea was they could connect between universities to build an alumni. What intrigues me is Massey had a built a hort society and a catalyst for that is they came to the hort conference a few years ago and recognised the benefit of a community. Horticulture is
KIWIFRIUT MARKETER Zespri is again looking for graduates to join the business, following the launch of its graduate scheme last year. Zespri global sourcing partner Bernadette Ryan-Hopkins says the scheme will run again this year to attract young finance and supply chain talent into the industry. “Three positions are available to recent graduates, offering 12 months working in Zespri’s business and the wider kiwifruit industry. “The kiwifruit industry is looking at serious growth – with export earnings set to double by 2020 – and Zespri wants the brightest and best employees on board to grow the business. “The first graduate programme has been a phenomenal success and we’re
excited to be doing it again.” This year Zespri is looking for graduates to meet specific requirements of its business. Applications are welcome from graduates with supply chain and finance disciplines. Ryan-Hopkins says skill in languages is particularly relevant, but the right attitude is the most important. Zespri sells kiwifruit in 54 countries; it offers opportunities in marketing, finance, logistics, supply chain, horticulture, science and legal. The successful applicants will have a senior executive mentor during their time at Zespri. Applications are open until September 13. Applicants must be New Zealand residents and have graduated within the past 12 months. www.zespri.com
LATEST STORIES EVERY DAY Get up-to-date news at www.ruralnewsgroup.co.nz
RURAL NEWS // SEPTEMBER 1, 2015
AGRIBUSINESS 27
Privileged to get a look at sector from growers and grower support sectors, to packers and quality control, to distribution and marketing. He left the conference with numerous connections, valuable for career development and as a strong support network. The third benefit was meeting nine like-minded tertiary students, all sharing the same “passion for innovation, sustainability and the success of NZ’s primary industries”. They had a variety of backgrounds and would all enter the workforce about the same time. “The fourth benefit is understanding the immense potential of the horticulture industry and its platform… for future success.” He says he has no doubt “it will be a dominant industry in NZ in the future”. “I am extremely grateful to HorticultureNZ for the opportunity to attend the national conference and the immense support they have provided me with over the past two years which has been above and beyond any expectation. “Despite its smaller size, it is obvious the
LET ME GIVE YOU MY CARD BACHELOR OF Agriscience in Horticulture at Massey University, Yvette Jones, says attending the conference was a great opportunity in her last semester of study. While she learned at university a little about most aspects of horticulture, at the conference “you get bombarded with jobs, occupations and businesses that are so involved in the industry that you haven’t even heard of them,” Jones says. “I was overwhelmed by the willingness of industry individuals who took the time to talk to me, give me advice about applying for jobs and took an interest in what I do as a student. “I was humbled by the number of contacts and business cards I received that may make the job hunt a little easier at the end of the year. The HortNZ conference reiterated why I decided to study horticulture and had such an all-round positive outlook about where the industry is heading in the future, and how I could fit in as a graduate. I would highly recommend students to apply for the HortNZ scholarships.” Jones says the GlobalGAP day was her favourite as she is interested in food safety and quality. “I believe this is often an overlooked aspect of the industry so it was great to see a whole day focused on it.”
organisation is a nexus for the industry and demonstrates a strong ability for providing leadership and direction throughout horticulture.” – Pam Tipa @rural_news facebook.com/ruralnews
Scholarship students at HortNZ conference.
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THE NEW Zealand horticulture Industry has created an integrated, robust and thriving foundation from which it is ready to “explode into future success”, says Waikato University student Jack Keeys. “That was the image projected by HorticultureNZ in 2015, and will be a defining factor in my career development,” says Keeys, a business management and science student at the University of Waikato who won a HortNZ national scholarship for 2014 and 2015. Of four major opportunities he took from the conference, the first was gaining exposure to the individual sectors within the horticulture industry. “It was a privilege to see the complex web of inter-connected sectors and organisations individually, while also being able to understand the strong vertical integration maintained throughout the whole industry, all connected by the target of achieving a $10 billion export value by 2020,” he says. The second was engaging with professionals
A Real Kiwi Story It was the 1950’s and Kiwi’s Bert and Dawn Hansen were building their house. Bert couldn’t find a reliable toilet valve, being an entrepreneur he invented one. This then lead Bert into developing a range of high performance Brass Foot and Check Valves. The design was patented and fast became the bench mark for industry standards and today the original design Bert created is used in a multitude of valves in hundreds of markets all around the world. With the initial success of the Brass Foot and Check Valves, Bert and Dawn worked many long hours to keep up with supply. Their garage was the hub of their business with all the machining, assembling and packaging carried out there. In those early days Dawn remembers having to pack up the car and take all the fittings down to the railway station for distribution. In the 1960’s the range was expanded further with Bert designing and manufacturing a range of Brass Quick Couplings. However by the early 70’s Bert and Dawn realised that plastic was the way of the future and redeveloped the existing range of Brass Quick Couplings and Brass Foot and Check Valves in plastic. By the end of the 70’s Bert and Dawn saw an opportunity to add to their range and designed and manufactured a range of Nylon easy to use “Cold Fit Pipe Fittings”. Back then this completely changed the way An Original Kiwi Farmers joined Hansen Alkathene pipe, “We Advertisment 1979 had a few teething problems with the original cold fit range, Bert’s mainly around the single Barb Original being difficult to get past the Toilet Valve hard pipe when it was cold and a 1952 130kg farmer trying to tighten up a 25mm fitting with a 24” stillson on a -5 degree Southland winters day. Those were some fun learning times but we got those problems sorted, we should have labelled the fittings “Kiwi Proof”.
Hansen Instore Display Unit 2009
In the mid 1980’s some more enthusiasm and ideas were injected into the business when Carl Hansen (Bert and Dawn’s Son) arrived from completing his engineering trades. Within a short period of time, Carl’s experience in engineering and his desire to use the “right” technologies in manufacturing and materials added even more strength to the Hansen company. Hansen Easy Fit Poly Fitting 2009
Bert and the team didn’t sit still for long and in the late 1980’s it was decided Hansen would design and manufacture a range of True Fit Threaded Fittings. With the Hansen range of products growing rapidly, it was time to move out of the garage and into its own manufacturing plant to start injection moulding their products. This move was a huge investment and there were many sleepless nights in the Hansen households. The move proved to be the right decision and it wasn’t long before Hansen products were being demanded from all over the world. The 1990’s saw the products develop a stronger following in New Zealand and Australia, with many of the original products having upgrades to high performance materials and the core ranges growing every year. “At one point it felt like we were adding fitting configurations every month” recalls Carl Hansen. In 1999 it was time for Hansen Products to move into even bigger premises. A building in Union East Street, Whangarei was found and the building underwent huge changes to house the manufacturing plant. The turn of the millennium saw Hansen Products continue on the path of constant improvement; a sister company in Canada was established, Irripod was purchased, the Easy Fit range was updated and after much encouragement from the market our Full Flow Ball Valve was released. 2012 saw Hansen Products in-house Research and Design team develop several new products for release, the Level Alert Heavy Duty Tank Level Indicator, the Leveller Tank/Reservoir Valve, Superflo Piston Valve and the Maxflo Diaphragm Valve. At Hansen we believe the Superflo and Maxflo valves have become the next industry standard of High Performance Float Valves. 2013 Hansen released the Easy Fit Compression Fittings range designed specifically for joining Medium Density polyethylene pipe. In 2014 Hansen released the compact Fastflo Trough Valve & the ingenious Han-Tool used to determine which Easy Fit Poly or Compression fitting will fit your pipe. 2015 and Hansen Products is far from slowing down with the release of a number of new products. All of these products have been designed for high performance whilst still staying true to Bert’s original philosophy of “Keep it Simple”. After 60 years in business, Hansen Products is extremely proud to be a New Zealand owned and operated business. We are continuing to design, manufacture and distribute Pipe Fittings and Valves of the highest quality around the world. Hansen has built a reputation for providing high performance, easy to use, simple products that deliver our customers “Best Installed Value”. The winning formula that has been applied to the product range since the 1950’s has ensured a loyal customer following through the generations. With a range of over 1000 different products, loyal customers and a dedicated team, Hansen is poised for the new challenges ahead.
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Don’t just ask for a pipe fitting, ask for a Hansen fitting! find your local stockist at www.hansenproducts.co.nz/stockists.htm
RURAL NEWS // SEPTEMBER 1, 2015
30 AGRIBUSINESS
‘Painful reality’ as dairy re-sets PETER BURKE peterb@ruralnews.co.nz
THE RURAL sector will need a major financial re-set as a result of the current low dairy prices, says the director of business, innovation and strategy at Massey University, Professor Hamish Gow. He told Rural News that the present cost structure of the New Zealand dairy industry is totally out of whack with the rest of the world and the reset will be painful but a reality check. By the time this happens the dairy industry will look very different. “There are lot of people who haven’t been looking closely enough at their costs because Fonterra has been the ‘sugar daddy’ that has kept on delivering excessive returns. Everyone has been really really happy and carried on, but now they are all looking hard at what they can do to change their business model. “It’s not going to mean we stop doing dairy, but at present land is overvalued and the services and inputs coming into that industry are overpriced and now it’s time for the industry to reset itself at an appropriate level.” Gow says with Fonterra cutting jobs
Professor Hamish Gow, Massey University.
and farmers putting away their chequebooks and looking closely at prices they pay suppliers of goods and services, the cost structure of the industry will drop. Gow was in Michigan, US, in 2010 when the global financial crisis (GFC)
hit that state’s automobile industry very hard. He says there are similarities between what happened in Michigan and what is happening now to the NZ dairy industry. The US auto industry was built on high returns and wages
in boom times. “Auto workers there had huge pension plans and in many ways it’s not different in some ways from sharemilkers and lower order sharemilkers and investors in the NZ dairy industry. We’ve had
massive price inflation on all the inputs coming into the industry for five-ten years. “Here [we can have] a 26-year-old who can make $200,000 a year as a lower order sharemilker doing a manual job. These expectations are totally out of whack with what that [worker] should be [paid] on a global basis. All those expectations have to come back and be reset.” Gow says New Zealand is lucky to have come through two GFC’s relatively unscathed, but this has now changed and everyone is going to have to reset their expectations and develop business models more appropriate to their likely income. US and European dairy competitors have seen the high prices New Zealand has been getting for its dairy exports and have responded accordingly. The high cull of poor producing cows will offer some relief, says Gow. But while the prices look great for beef now, this as a short term opportunity and others will cash in on it. Fonterra may need to change to compete more efficiently. Zespri has weathered the storm of PSa and is now getting greater returns for its producers than three years ago.
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RURAL NEWS // SEPTEMBER 1, 2015
32 OPINION EDITORIAL
EDNA
On the hook IT’S A fallacy that the farming community need not worry about health and safety because of changes to the Health and Safety Reform Bill. While opposition politicians and unions – often one and the same thing – keep saying the Government is letting farmers off the hook, practising farmers know different. As Crowe Horwath agri-health and safety expert Melissa Vining says, it is time to dispel the myth that farmers have been given a green light to ignore health and safety. The notion of high and low risk sectors has gained all the media attention, with farming sectors such as sheep, beef and dairy being classified as low risk. All this now means is that most farms will not need to appoint a health and safety representative. This is a sensible and practical move – unless you are a unionist or a Labour MP. As Beef + Lamb New Zealand chairman James Parsons says, the vast majority of NZ sheep and beef farms average fewer than two full time employees per farm. “Not classifying farms as high risk doesn’t exempt farm businesses from any liability under the Health and Safety Reform Bill,” Parsons explains. “But the amendment recognises some basic practicalities of implementing the legislation on farms.” Meanwhile, Vining cautions people not to let the silliness of worm farming and cat breeding being deemed high risk distract from the real issues of health and safety addressed by the bill. As someone who works daily with farmers, Vining, and many others, has been disappointed by the attitude portrayed in the coverage of the issue. A key element of the bill is to develop an effective working relationship between all parties – persons conducting a business or undertaking (PCBUs), officers and workers – and lower the rate of workplace accidents. This is regardless of whether or not there is an appointed worker’s health and safety representative. Along with existing requirements several key changes proposed will affect farmers. The workplace has been redefined as the area where you are working or where work usually happens, rather than the whole farm. All PCBUs will be required to engage with their workers on matters of health and safety that affect them. All PCBUs are required to consult with other PCBUs doing work on their farm to identify potential hazards / risks and how they will be addressed. That certainly doesn’t look or feel like farmers have been let off the hook in regards to health and safety.
RURAL NEWS HEAD OFFICE POSTAL ADDRESS: PO Box 331100, Takapuna, Auckland 0740 PUBLISHER: Brian Hight .............................................. Ph 09 307 0399
“Now, as responsible farmers we have to make sure our workers know all about the new health and safety regs, so listen up fellas.”
THE HOUND
Want to share your opinion or gossip with the Hound? Send your emails to: hound@ruralnews.co.nz
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THE HOUND reckons the old adage ‘would you buy a used car off this man?’ should be applied when dealing with spin doctors and the companies they are promoting. Your old mate’s ears pricked up after seeing a number of press releases issued – on behalf of Landcorp and NZ Merino – by one John Mitchell from Blackland PR. However, this John Mitchell is not the former “we are on a journey” All Black Coach; this character’s career path is even more ‘interesting’. Prior to joining a Wellington dark arts firm, Mitchell was the chief spin doctor for discharged bankrupt property developer, self-proclaimed business guru and former Wellington Phoenix owner Terry Serepisios. He was also the paid mouthpiece for the Internet Party – the baby of dodgy internet balloon Kim Dotcom.
YOUR OLD mate has heard about framing a question to get the answer you want, but reckons environmental campaigners down south have taken this a step further. They have been claiming that South Canterbury’s Lake Opuha is the subject of chemical contamination and have been pestering Environment Canterbury (ECan) to do tests for DDT. However, the regional authority says campaigner Allan Campbell told an ECan official the banned pesticide DDT had been added to one of several samples the group had tested for chemicals. Apparently the group added the toxic chemical “to check the effectiveness of the laboratory’s testing”. Campbell said the group suspected the lake bed was contaminated and “their test results support our findings.
THIS OLD mutt almost choked on his dog biscuits at Winston Peters’ latest ridiculous claim to being a dairy farmer – when he had a crack at ‘National party stooge’ Mike Hosking, recently. The Hound would like to know exactly when the double-breasted, suit wearing visitor from St Mary’s Bay in Auckland last stepped onto a farm and did anything other than bluster? Given he has been an MP since 1978, and before that claims to have been a lawyer and a teacher. So, going by his admission, the former Minister of Baubles and anti-free trade activist has pretty much had 50 years of NOT being a dairy farmer and NOT working on a dairy farm. Pull the other one Winston; real farmers can see through your bull excreta!
THE HOUND reckons the Jafas from Auckland simply don’t help themselves with their rural cousins. Apparently, the latest fad emerging in the swankier Auckland suburbs is having a pet lamb and prancing it around in nappies. Yes, only in Herne Bay can you see nappy-clad lambs prancing around on leashes. However, your old mate reckons it’s not just the sight of lambs being walked around Herne Bay on leashes that is now a ‘thing’ – it’s what they are wearing. To prevent them from “making messes throughout the house”, mummy and daddy are putting little Johnny and Jane’s trendy new pets in baby nappies. The Hound suggests both Herne Bay Johnny and Jane’s parents really do act and sound like a pair of merchant bankers!
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Rural News is published by Rural News Group Ltd. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of staff, management or directors of Rural News Group Ltd.
RURAL NEWS // SEPTEMBER 1, 2015
OPINION 33
What’s in store during the next levy cycle? JAMES PARSONS
IN THE last two weeks I’ve had the good fortune to catch up with hundreds of farmers nationwide as they’ve turned out to see what Beef + Lamb New Zealand is planning in the next six year levy cycle. While each region has its own issues and climatic challenges, common themes have consistently been raised in discussions. Overwhelmingly farmers have said they want an organisation to represent their interests, but importantly one that provides them with clear demonstrable value. One area of common interest is the market access work. Farmers seem united in the need for BLNZ to be working on their behalf alongside the Government, to ensure the best trade arrangements are landed for farmers and ultimately that all tariffs are eliminated. Last year this work saved $161 million that would otherwise have gone on tariffs if free trade agreements like those with China and Taiwan had not been in place. There is a lot of interest in the potential for our sector through Trans Pacific Partnership and we fully support the Government’s insistence that we must strike a high quality deal. Some farmers have voiced disquiet at the possibility the deal could weaken NZ’s sovereignty, but there was widespread acknowledgment that NZ producers must remain
competitive and be a part of the deal if it is to progress Another common theme has also been in the headlines – health and safety. Farmers are genuinely perplexed about the application of the Health and Safety Reform Bill currently before Parliament and are looking to their farmer organisations for support and to argue for sensible and workable regulations. Federated Farmers has been doing great work in this area, and very deliberately BLNZ has teamed up with them to add weight to the farmer voice. There is no argument about the need to reduce accidents on farms. However the people best placed to work out how, are farmers who understand the work environment and are responsible for owning and implementing the practice and culture change. While it was pleasing to see dairy, sheep and beef farms not being required to appoint a health and safety representative in the amendment released last week, there is still work for us to do on the use of quads and finding workable regulations. With Federated Farmers we have consistently pointed out to officials that a quad passenger is safer with an experienced rider who knows the farm and its hazards than riding a quad of their own – especially
if they lack riding experience. Sheep and beef farmers have been pleased at BLNZ having a stronger voice on their behalf on environmental compliance issues. In this the organisation has beefed up its resources to meet needs in the last 18 months. Along
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views expressed range from full support for farmer-funded promotion activity through to no role for farmer investment and a view to leave it to the meat companies. Given the failure to land a jointly funded marketing entity with the meat companies in June 2015, we have started
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RURAL NEWS // SEPTEMBER 1, 2015
34 OPINION
Farm debt bill is well-timed DEBORAH HART
FARM DEBT mediation is back in the national spotlight, and not a moment too soon. When NZ First introduced its Agricultural Debt Mediation Bill in June, the party probably didn’t appreciate the full extent of the financial rollercoaster ride the dairy sector would find itself on in 2015. But with world auction prices forcing the dairy payout lower in recent weeks, it’s hard to argue against the timing of the related discussion. Politically, the bill will only be debated if it is drawn from the members’ bill ballot. But the evidence suggests that the subject deserves a wider airing. This is not just in respect of the bank-related issues, which the proposed legislation seeks to address, but the wider role of mediation in the rural sector. If the work of the Arbitrators’ and Mediators’ Institute of New Zealand is anything to go by, the
growing degree of rural anguish—whether to do with financial stress, sharemilking matters, trust issues, family, employment disputes or contractual stoushes — suggests the need of skilled mediation has never been greater. Too often these disputes are highly, bitterly and unproductively personal. They’re also very costly for those involved and ultimately to their wider communities. Right now, of course, farm debt is the major concern. Most banks say they are already mediating issues around it --negotiating with farmers and trying to assist them. But what banks say is only part of the story. The banks are not compelled to go down the mediation path. And this lack of a required third-party mediator—rather than what too often is simply a mere advocate—can create serious problems. Why are mediators important? It’s because the better the calibre of mediator one has—which is to say, somebody professionally
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trained, qualified and credentialed for the job— the higher the probability of not only a resolution but a resolution people can live with. The better the chance of an attractive resolution, the higher the amount of goodwill that will probably be gained in the process. Not to mention money saved by avoiding the costs of litigation, with all its associated risks, damage to morale and the business. And this is especially true during times like these when the financial cushion is wearing thin, according to John Larmer, a rural professional who specialises in advisory, valuation and land issues, and dispute resolution. “Farm debt mediation is really about finding a suitably qualified mediator helping the bank as lender and farmer as borrower to fully explore all options available including debt restructuring,” Larmer, an experienced mediator, conciliator and arbitrator, said recently. “In this regard the input of a third party is an
essential part of arriving at the best outcome for each party. “Make no mistake this is a very acute downturn for dairying where up to 40% of production is associated with share or contract milking agreements that, in many cases, should now be revisited as to supplement and stocking levels to minimise pending losses to both parties to the contract. Larmer also makes the point that it’s rather surprising that many local banks should be largely Australian-owned and run out of Australian states that have statutory farm debt mediation schemes in place. Yet these processes have had no official traction in New Zealand— despite the obvious benefit to those farmers facing a financial crisis. The banks and other rural lenders would also benefit, too, from getting an independent mediator involved in what can be a highly emotional situation. For at the end of the day—or in the middle of a long economic night—this isn’t just about money but our country’s future. • Deborah Hart is executive director of the Arbitrators’ and Mediators Institute of
New Zealand, which will be hosting a rural seminar in Wellington on November 9. The institute also keeps a rural list of mediators.
There’s a growing degree of anguish in the rural sector, says Deborah Hart.
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RURAL NEWS // SEPTEMBER 1, 2015
OPINION 35 CHANGE NEEDED FOR NZ FARMING’S FUTURE HAVING BEEN involved in agriculture as a farmer, orchardist and stock agent for 60 years, I am sad to see the current state of this once great industry. It seems strange that with food and water – after oxygen – the essential means to sustain human life, yet the producers of food are struggling to make ends meet. This is not only a New Zealand problem, it is worldwide. An old spraying contractor once said to me, “There are only really two jobs in NZ: farming and farming the farmer”. He may have been right. Given rising costs, constraints by global and local markets,
increasing bureaucratic demands, movement of foreign currency, the takeover of farms by offshore interests and the consequent decline in the family farm (still the most productive and efficient), it seems ‘farming the farmer’ is making it harder for NZ farming to be profitable. So the current call for a doubling of production by 2025 is one hell of an ask! All is not lost though. As we look to the future, the most valuable natural resource will not be gold, silver, oil or iron ore; it will be clean water and soils. We are one of few countries with those resources in
abundance; there is our advantage. Most of our agricultural produce is controlled by the rise and fall of the commodity market, aptly illustrated by the current dairy situation. We produce exactly what the rest of the world does. There is no point of difference; we have become price takers. Why don’t we become
price controllers? We have the soils, the water and the farmers. All we need do is differentiate our products. The world is calling for naturally sustainable, renewably produced food. NZ has good farmers, orchardists and viticulturists producing quality products by natural, sustainable and renewable means,
receiving a premium for it and showing good returns. These people hold the knowledge and science needed now. Mother Nature has always provided the blueprint; perhaps it is time to go back and have a closer look. Colin Smyth Napier (Abridged. Ed.)
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@michaelwoodhousemp: Why are dairy, sheep and beef farming not covered by the new H&S laws, but worm farmers and lavender growers are? It’s obvious: how many living worm wranglers or lavender growers do you know? #factsandfiction
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RURAL NEWS // SEPTEMBER 1, 2015
36 OPINION
WRITERS WANTED Agriculture journalists with strong technical knowledge of farming wanted to contribute on a freelance basis for Rural News Group publications and websites. ● Looking for people in the North and South Islands. Need to be professional and reliable. Need to be handy with a camera and have a strong writing ability. ● No dreamers please. Written applications to davida@ruralnews.co.nz
A flicker of light at end of tunnel? LIKE MANY in the agri sector I was more than happy to see dairy prices rise sharply in the August 19 GlobalDairyTrade (GDT) auction. As my Fed Farmers dairy chair colleague Andrew Hoggard says, this latest auction suggests there might be some light at the end of the tunnel but what the industry needs is for this to continue and hold. However, the cyclical nature of commodities means neither farmers nor contractors should expect plain sailing in future auctions, but we can all hope this is the start of a more positive trend Many analysts believe the price rose because Fonterra cut its GDT offering by 33.5% for the
auction and they warn that global markets were still oversupplied.
around have now been triggered and a substantial improvement in prices is still expected by mid-2016. So let’s hope all these predictions of an upturn in dairy prove to be correct. In the meantime farmers and contractors have to deal with the reality of the low forecast price. This is going to
talk to the appropriate agencies before things get out of hand. If there are any rural contractors struggling to pay bills and/or staff they should get in contact with Work and Income NZ and the IRD for assistance and advice. Both IRD and WINZ are there to provide help in these situations and they have the people and
Many contractors will be feeling under pressure and the stress is starting to tell on them and their businesses. Our advice is simple: ask for help and talk to the appropriate agencies before things get out of hand.
According to dairy analyst Susan Kilsby, Fonterra’s milk price forecast for the 2016 year of $4.25 is now looking achievable, but she says dairy commodity prices need to continue to track upwards to reach the current forecast price. Rural lending specialist Rabobank believes that while the sector is experiencing a severe cyclical downturn, a “substantial” improvement in prices is still expected by mid2016. In a report to its clients last month Rabobank said while the dairy sector is currently experiencing a severe cyclical downturn, it believes the mechanisms that will turn the market
mean tight budgets and little discretionary spending. But the fact remains dairy farmers are still going to be putting milk in the vat and having it carted off the farm by tanker, which means they are still going to need pastures and crops prepared and sown, hay and silage made, and maize harvested. We at least now know where we are with the much anticipated Fonterra forecast payment. A price of $3.85/kgMS ($4.25 when dividend is included) is a shocker. Few farmers – and by extension rural contractors – will make anything on that payout. That said, what can realistically be done about helping contractors through the tough times ahead for at least the next few months? First, keep up communication. Talk to your bank manager. Talk to advisers. Talk with suppliers and customers. Put a bit more effort into communication with the family, staff and fellow contractors – they will be feeling the pressure as well. Many contractors will be feeling under pressure and the stress is starting to tell on them and their businesses. Our advice is simple: ask for help and
expertise to offer advice and assistance. Rural Contractors NZ is also here to help members and to act as a support network for contractors who are feeling under pressure. However, we are not experts in financial matters or whether people are coming under mental duress. What we are telling people is they should be talking with their accountants and financial advisors about their business and with their families and/or medical professionals if they are feeling under pressure themselves. The short term is the focus at the moment – even if it means looking for extra work outside normal rural contracting jobs to help manage to get you and your staff through to next season. So my key takehome message would be to keep up the communication. Talking with the appropriate professionals – as well as family and friends – is an important step in getting the right advice and help when and where it is needed. • Wellsford-based agricultural contractor Steve Levet is the president of the Rural Contractors New Zealand (RCNZ). @rural_news facebook.com/ruralnews
RURAL NEWS // SEPTEMBER 1, 2015
38 MANAGEMENT
New H&S rules not so scary... While the debate on the new Health and Safety legislation raged in Parliament last week, inspectors from WorkSafe NZ were out talking to farmers. One of these was Rural News reporter Peter Burke who owns a small ‘life sentence’ block in Horowhenua. A COMMERCIAL farmer may rightly describe me as a ‘pet’ farmer with my 2.8ha where I run three Dexter cattle, eight Wiltshire breeding ewes, a few chooks and a cat named Sam. I have had a small farm for nearly 30 years and despite its size I still have an array of equipment including a quad, a Fergie 35 and sundry other gear. I regard myself as very safety conscious, but I decided to put myself to the test – scrutiny by a WorkSafe inspector. Nick Barclay, from Central Hawkes Bay, spent two hours on my farm, much longer than the normal visit because I wanted to interview him and understand a typical call on a farmer. His visits can range from 20-60 minutes plus, depending on how busy the farmer is. We chatted over coffee and cake (no I didn’t bake it) in the lounge and he pulled out his Safer Farms Toolkit, taking me through its impressive pages. Here’s what normally happens, he said. “A lot of the time they ask me questions, which is great and means we are
WorkSafe NZ’s Nick Barclay with the Safer Farms Toolkit.
achieving a dialogue. We talk about the vehicle they have on the farm and if they have employees I take a special interest in this and explain their obligations to staff.” Barclay says farmers commonly raise the subject of visitors to their farm. Often they are surprised to learn they are not liable for anyone on the farm whom they don’t know about, such as shooters and fishers. And they don’t have to brief visitors on ‘everyday farming activities’. “The only thing they must warn them about is natural hazards such as landslides, rivers, swamps and wasp nests. Most are relieved to hear this and in fact would brief people about such hazards in the normal course of a conversation. And we talk about quads, tractors and other farm machinery – all of which can be dangerous.” Good maintenance of vehicles and machinery is important and Barclay says this occupies some time. But he believes with all the machinery on a farm, a major issue is managing people – especially children -- to make sure
they are safe at all times. Sometimes he arrives on a farm and meets people who are bit ‘reactionary’, but this quickly disappears when they realise he is not out to ‘ping’ them for minor mistakes. He hears lots of interesting stories and often the words ‘common sense’. But though he agrees with this, common sense can easily go by the board when a person is tired or in a
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rush to get a job done. Suddenly there is an accident. “Most people just want to do a good job and farmers are no different. They want to be proud of their job… say, saving a ewe and a set of twins at the bottom of a gully because they won’t get through the night. “This is an instinctive act that could sadly cause an accident. I heard about a farmer up on a ridge on a quad on a
windy day when suddenly a huge gust sent him 100m down a bank. Looking back, ‘common sense’ says he shouldn’t have been out there, but it had never happened before and he just got hit by a freak gust.” Barclay hears some horror stories, but he says farmers now realise the importance of safety and are dealing with issues. Many have learned from their mistakes.
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RURAL NEWS // SEPTEMBER 1, 2015
MANAGEMENT 39
Myth busting all part of an inspector’s job! NICK BARCLAY says while much media focus is on quads, they are not the only problem. Kicking by animals causes many farmer claims against ACC. Safe dealing with stock and having good yards is important, Barclay says. “So is telling staff about the inherent dangers of dealing with stock”. “There is an emphasis on quads, but [the key is] choosing the right vehicle for the job,” Barclay told Rural News. “For example, is towing the spray equipment suitably done by a quad? How about improving the conditions of tracks? Another issue is PTO’s on tractors.” Barclay says safety polices can be explained verbally to staff, but writing them up so they are easily accessible to staff is best. A “ring binder of policies” will often just gather dust on a shelf. “Far better to have a whiteboard in the shed where managers and staff can all contribute information; then it becomes a living document.” This ‘living register’ concept can warn about damaged pipes or damaged equipment. It may also display a photograph of a problem. A big part of Barclay’s job is talking to farmers to break down myths about health and safety, especially
NOT SO BAD! THE SAFER Farms Toolkit is a well-produced publication that helps farmers self-assess their operations. It sets out their legal obligations and offers simple advice on how to comply with the law. There is nothing threatening in the toolkit and it offers useful templates, including a hazards register and a simple one page assessment on how best to decide what is the most appropriate farm vehicle to use for a given task. It also offers templates for tractor maintenance, a visitor’s induction form and one for a contractor, plus an accident or nearmiss report. There is also a sample staff meeting report. Yes, there is a page on how to safely operate a tractor and quad and these should come as no surprise. It also has a section on how to deal with children onfarm. Personally, I found this an excellent and helpful publication. As for how I came through the test: I was praised for the condition of my quad and for having a helmet. (Rural News requires me to wear a helmet whenever I ride a quad or a side-by-side.) I got top marks for my cattleyards which Barclay says are in good condition. But he says I need a cover on the PTO of my aging Fergie, which I will fix. He commented on the other safety equipment on the farm and said I have a good understanding of safety.
Rural News’ Peter Burke (right) and WorkSafe NZ’s Nick Barclay inspect the stockyards on Burke’s lifestyle block, which – like the rest of the property – passed muster.
about WorkSafe. It aims to work with farmers to achieve sustainable changes in safety. Barclay enjoys working with farmers, putting them at ease about his role and blowing away the myth about prosecution. The worst thing for farmers is getting a no-helmet warning notice and
in the event of an accident a WorkSafe investigation team may be called in. But few incidents end up in court. “The only paperwork they need is an accident register; best practice is to write down as much as possible. I advocate using a diary, perhaps just one sentence, but all this builds up a picture
of what is happening on the farm.” Barclay, who has spent all his working life in the primary sector, says all the farmers he meets want to stay safe. They may look crusty and hard, but underneath they don’t want accidents on their properties and are keen to do better.
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RURAL NEWS // SEPTEMBER 1, 2015
40 MANAGEMENT
Better autumn pasture mgmt could net $150k more GARETH GILLATT
KEEPING TIGHT control of pasture growth in spring and autumn could help drystock profitability, according to Northland pastoral farming specialists. Northland pastoral specialists told 80 farmers at a Far North beef and lamb field day at Te Mataa Station, late July, that drystock animals were harvesting 30-50% less pasture than their dairy counterparts. Good use of grazing and fertilizer could compensate. One thing drystock farmers could do was increase average cover length, says a specialist with AgFirst, consultant Gareth Baynham. He claims that lifting average pasture cover from 1300 kgDM/ha to just 1700kgDM/ha could double pasture growth. Bayhnam says pasture regrowth was initially dependent on stored carbohydrates with only the emergence of the first leaf promoting pasture growth from sunlight. Once a ryegrass tiller had grown its second or
Far North dairy farmer David Gray says farmers need to match their rotation length to leaf emergence.
third leaf it was harvesting more sunlight and grew faster. Pasture grazed down to 1500kgDM/ ha, then closed up, were more likely to ‘take off’, Baynham says. While pasture was grazed harder, or if stock grazed regrowth shoots, paddocks took longer to be ready for the next grazing. To maintain this cover, Far North dairy farmer David Gray says farmers need to match their rotation length
to leaf emergence; for most farmers this means having a long rotation in the winter when pasture growth is slow. By stretching a winter rotation from 30 days to 60 days pasture is getting a longer time in the 2-3 leaf stage and stock are more likely to go onto paddocks filled with high quality grass with covers around the 2600-2900kgDM/ha mark. “You’re not so much farming grass as you’re farming sunlight.”
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By doing this, says Baynham, farmers will be able to get good consistent liveweight gain in stock, resulting in larger animals, meeting liveweight targets earlier. Northland sheep and beef farmers stand to gain 65-100kg more production or $75,000--$150,000 more income per year for a 300ha farm by focusing on pasture growth and pasture quality, he says. However, Gray says it is possible to have too much of a good thing with pasture; farmers shouldn’t let growth get away from them. Once grass has grown past the three leaf stage it starts to lose its feed quality, Gray says. As the fourth leaf emerges, the first leaf starts to die and decay, reducing net pasture growth and feed quality for stock.
This can be an issue for farmers, especially during peak growth periods in spring and early autumn and Gray recommends keeping control of pasture to make sure pastures retain overall quality. Dairy farmers are often limited to mechanical methods of controlling excess pasture, including cropping or the harvesting of silage. Baynham says drystock farmers often have a few more tricks up their sleeves. Some options farmers might consider include adding a new stock class, setting land aside for hay or silage, changing the grazing rotation, for example by using leader and follower mobs. “We have a few more tools in the toolbox than dairy farmers.” @rural_news
MULCHING AND MOWING DOES WORK MEANWHILE BAYNHAM says managing ryegrass can become more complex when dealing with pervasive grasses like kikuyu. Common in pastures in Northland, Auckland and northern Waikato, kikuyu is a drought tolerant grass variety which can take over if left unchecked during the autumn, reducing the proportion of valuable ryegrass available during the winter. While being fairly hardy, especially in summer, kikuyu often doesn’t match the feed quality of ryegrass, especially in late autumn when kikuyu dies off and stolon builds up in pasture. Baynham says this can reduce liveweight gain in autumn, and if not actively controlled can slow the establishment of winter active pasture species like ryegrass. There are autumn kikuyu management options, he says, which improve winter pasture growth and set up feed quality for the spring through either hard grazing or mulching or mowing. Mowing or mulching paddocks in late autumn breaks up kikuyu stem and stolon, allowing ryegrass to emerge earlier and reducing the amount of low energy fibre in pasture. Mulching is the process of cutting autumn pastures with a slasher or mulching mower, usually to a length of 1cm-2cm. As mulchers break up material finer than mowers, they take longer to travel over ground than mowers requiring more fuel and tractor hours. Mowers don’t break up material as well, resulting in material needing a longer time to break down. A study on Far North sheep and beef farmers Grant and Peggy Morrison’s 390ha farm north east of Kaitaia revealed that mulching and mowing did improve the edibility of pasture. Mulched and mown pastures both produced pasture with extra 2 megaJoules of metabolisable energy/kgDM than uncontrolled pasture and 7% extra protein. Stock grazing the mown or mulched pasture would be expected to have double the liveweight gain of animals grazing the unmown pasture. While initial studies on the Morrison’s farm revealed little difference between the mown and mulched plots, research completed by the Kikuyu Action Group found that mulched pastures will take off earlier than mown ones. However, with costs of an extra $30-$40 in fuel and tractor time Baynham says costs and benefits must be weighed.
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42 MANAGEMENT
Huge variety in South Island farmer competition ENTRIES REPRESENTING every aspect of New Zealand farming have been received for the 2015 Lincoln University Foundation South Island Farmer of the Year award. Several strong entries from ‘traditional’ sheep and beef farms are this year joined by a Marlborough mussel farm, a Canterbury saffron grower, a South Canterbury organic dairy, a Central Otago gourmet fruit producer and an organic red meat farm in Southland. And for the first time a West Coast farm has entered. There are 12 South Island entries. Lincoln University Foundation chairman Ben Todhunter says he is delighted to see strong entries for the third year in a row. “Early in the life of this competition it was a challenge to get entries. But as the prestige of the competition has grown and word has spread about its value to entrants and the agriculture industry generally, numbers have built up. “We deliberately aim for quality of entrants rather than quantity, so our criteria for farming excellence set a high bar. We will maintain this level of high standard entries to further enhance the reputation of the competition.” Regional judges will shortly visit each farm; finalists will be announced mid-October and the finals will be at Lincoln University on November 18. All entrants get a free expert
New Zealand’s largest free-farmed pig enterprise, Patoa Farms (run by the Sterne family) were winners of the 2014 SI Farmers of the Year title.
evaluation of their farm business as a part of the judging. A field day at the property of the overall winner will be held early 2016. The winner receives a $20,000 study/travel grant. Finalists can also win one of four $5000 special category prizes: the Silver Fern Farms red meat producer ‘Plate to Pasture’ award for best consumer
awareness; the Farmlands award for best resource management; the AGSTAFF award for human resource management; and the Lincoln University award for innovation and technology. “The Lincoln University Foundation was formed to encourage excellence in farm business practice,” Todhunter says.
“This annual competition is a great vehicle for that. It rewards farming leadership and innovation, and uses the finals night and winner’s field day, plus on-line presentations, to make that knowledge available to the wider farming community.” @rural_news
WHO’S IN ASHLEY AND Shonelle Townsend, Balclutha, Otago: located near the East Otago coast on land 30-200m above sea level; a sheep farm with some beef cattle. Clearwater Mussels (John Young et al), Marlborough Sounds: greenshell mussel producer with 90 farms 2.5-80ha, processing for food and pharmaceutical markets. Clearwater’s Organic Dairy Company (Bryan and Jackie Clearwater), Peel Forest, South Canterbury: a self-contained organic dairy processing milk to yoghurt and distributing nationwide. Coleridge Downs Ltd (Tony and Pam Plunkett), Rakaia Gorge, Canterbury: high quality red meat (beef, sheep, deer) on four properties -- hard hill country to intensively farmed flats. Kilbrannan Farm (Paul and Tracey Ruddenklau), Te Anau, Southland: organic Biogro sheep and beef farm on flat-rolling country near the Takitimu Ranges. Limestone Hills (Dan and Bridget Studholme), Waimate District, South Canterbury: a two-property enterprise on hill, rolling and flat country with sheep, beef cattle and dairy heifers. Lindis Crossing Station (Adam and Annabel Spiers), Wanaka, Central Otago: four properties, including one near Ashburton, finishing lamb, venison, prime beef and bull beef. New Zealand Gourmet (Matthew Tyrrell), Roxburgh, Central Otago: gourmet summer fruit producer exporting cherries and blueberries to Asia, Middle East and Australia. Raft Creek Farm (Stephen Wright), Hokitika, Westland: a Landcorp farm, Raft Creek mostly breeds deer, supplying breeding stags to other West Coast deer properties; surplus deer is finished on the property for venison. Beef cattle and lambs are also finished. Richard and Annabelle Subtil, Omarama, North Otago: primarily a sheep and beef farm plus small-scale hydro and tourism operations and science reserves; DOC and QE2 covenants are held. Saffron Valley (Cheryl Rault and Ray Hughes), Greta Valley, North Canterbury: certified organic saffron producer and exporter. Shortlands Station (David Crutchley) Ranfurly, Central Otago: two properties (21,838ha) producing mainly sheep meat and some beef and forestry.
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RURAL NEWS // SEPTEMBER 1, 2015
44 ANIMAL HEALTH
Focus on feeding – vet PETER BURKE peterb@ruralnews.co.nz
SHEEP AND beef farmers need to focus on feeding their best stock well, according to Martin Walshe, practice manager of Hunterville Vets. He told Rural News that if farmers can feed and keep ewes and cows in good condition the battle is essentially won and all else is peripheral. Some people will have problems with bearings and he’s seen a bit of milk fever, due to changing the nature of the feed, whether from new to old grass paddocks or from plantain back to grass, but he says most farmers are aware of that issue now. “Some issues that need to be addressed relate to multiple lambing ewes. Especially among the younger ewes, internal parasites may require attention so farmers need to get some idea of the
worm challenge in the ewes and get the requirements for pre-lamb treatments.” Farmers should make sure there aren’t any underlying things like liver fluke that can be a winter problem and may follow through to the spring. They should also be monitoring trace elements to ensure these are under control. “The trace elements and the liver fluke apply to the cows too. The one difference for cows in hill country is that magnesium can be an issue, possibly grass staggers and possibly milk fever in cows – especially if they are calving early in hill country.” In the lower North Island, the impact of a cold winter is starting to show, though Walshe says stock are in reasonable order. This year a string of frosts and a lot of rain have left pastures sodden. “So we are going to get pretty average pasture
If farmers can keep ewes in good condition the battle is essentially won.
growth for the next few weeks, putting a bit of pressure on the lambing properties that are highly stocked; so putting nitrogen on is probably going to be a valid option. But farmers can’t put this on until the soil temperatures come up. “If farmers in the hill country are short of feed now and are stocked at, say, 10 SU’s/ha, the feed shortage is not going to go away until well into October-November. The feed budgets are indicating that things are marginal
so putting nitrogen on where you have a high performing ewe flock would seem to make sense.” Walshe says with good prices being fetched for cattle, beef farmers should consider selling some stock if they are pinched for feed, rather than penalising other stock by underfeeding them. This may be a bit more difficult for sheep farmers, with the in-lamb ewes not making a fortune. “But getting rid of some might be an option and farm-
ers shouldn’t be worried about getting rid of some ewes, even if the price is not the best. It still might be the best option for some.” Another option may be to try to get off-farm grazing for dry hoggets during September-October, to allow a little more space for lambing. Farmers should have good understanding of the feed requirements of their stock, how much feed they have available and how this compares with previous years.
PIGGERY UNDER COURT ORDER, BIG FINE A COURT order has been made against a Waikato pig farmer, limiting his involvement in the industry. Last month, Kenneth McIntyre and his employer, Kaimai Pork Ltd, were convicted and fined $128,750 – a record for environmental offending in Waikato. And the Environment Court has now issued an enforcement order prohibiting McIntyre from managing animal effluent, managing animal
numbers and making financial decisions. The order follows McIntyre’s fourth prosecution for piggery-related offences against the Resource Management Act. They were brought against him and Kaimai Pork by the Waikato Regional Council and related to the operation of a recently established commercial piggery near Te Aroha. McIntyre was one of the company directors and responsible for management of the site, including effluent
disposal. The piggery began operating with excessive stock numbers and without appropriate infrastructure, resulting in unlawful discharges of effluent to the environment. Despite a council direction to stop, the unlawful discharges continued. McIntyre’s history of environmental offending dates back to 2006. Council records indicate he has had ten formal warnings, three infringement notices, five abatement notices and
has had three prosecutions. “We had little choice but to put Mr McIntyre back in front of the court over the most recent offending,” said council investigations manager Patrick Lynch. “Over the years the council has used every tool available to encourage positive behavior change, but this has not worked. This fine, and the court order, is a clear message to Mr McIntyre to change his ways.”
PLANT EXPERT BOOSTS TEAM PLANT SCIENCE specialist Dr Lydia Cranston has joined Massey University’s International Sheep Research Centre. Cranston’s PhD research investigated the grazing management of a herb and clover mix for sheep production systems and found it could withstand drier conditions than other pasture. She worked as a postdoctoral fellow in the university’s dairy group before joining the sheep research centre where, as well as lecturing in several farm management, veterinary, animal and agricultural science papers, she will conduct practical research that adds value on sheep farms. She says this research is close to her heart, having grown up on a sheep and beef farm near Whanganui. “I’m passionate about the New Zealand sheep industry,” Cranston says. “The research centre is the premier centre for studying sheep production, welfare, health and biology.” The centre is led by Professor Steve Morris and Professor Paul Kenyon and includes Dr Rene Corner-Thomas, Dr Rebecca Hickson, Dr Anne Ridler, Dr Sarah Pain, Dr Nicola Schreurs, Dr Kate Griffiths and Dr Rao Dukkipati. Hickson says each scientist brings a particular specialty to the table. “We come from different backgrounds but all with a focus on maximising health, performance and efficiency of sheep.” The team’s current research includes improving sheep nutrition, growth rates and meat quality, and studying sheep behaviour, welfare, breeding and genetics.
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RURAL NEWS // SEPTEMBER 1, 2015
ANIMAL HEALTH 45
Dogs do vary – so adapt your training MY DEAR old Jean was one of the best mustering dogs I ever saw. She was black and tan with a longish silky coat, handy (only barking when necessary) unbelievably clever, easy to work and a growl from me was the only chastisement she ever received. Jean had no formal training and learnt on the job; she instinctively knew where to be and what to do. She wasn’t a trial dog (she lacked noise), but she won a maiden early in her career and most of the time we would have a tidy run and pop the sheep out the top, but we didn’t turn heads with style and noise. Ten months ago I bought a very cute fluffy Huntaway pup from a friend. Joy’s bloodlines went back to my Huntaway’s and she’d obviously inherited Jean’s coat; and that is where the similarities end. A couple of weeks ago the ground had temporarily dried, Joy was 10 months old and it was time for an introduction to sheep. (I always do this in a medium sized yard to have complete control of both sheep and dog.) I kept Joy on a lead and moved the sheep around making a few ‘sis sis’ sounds. It wasn’t long before she was pouring out the noise. I dropped the rope and encour-
aged her to work because I wanted to see what her instincts were – bark, bite, split, gather, etc. She didn’t rush in splitting or biting, she didn’t stand back and give them space but she did enthusiastically bark, nonstop, with a lovely loud varied tone. However she worked excessively close and if I stepped in and started waving my stick to keep her back, she’d bark at me, excitedly. Everything I tried was counterproductive. I’ll mention here … don’t ever let a dog like Joy (totally untrained, very enthusiastic, with huge nonstop noise) loose in a big paddock with stock; likely outcome, total chaos; it wouldn’t be the dog that wanted shooting. Usually I do most of my training off sheep; I find dogs learn easier and quicker without the distraction, and then when they have a reasonable understanding of several commands, bring sheep back into the lessons; I can then insist the dog
obeys because it understands. I like to teach Huntaway’s, unrestrained, to handle sheep, balancing them to me like a Heading dog but with noise, before I put a harness on and teach the dog to hunt sheep. However I had decided I didn’t want to spend
hours training Joy (too much deafening noise); I just wanted to get her balancing sheep and keeping off; that would give someone something to work with and they could put their own commands on her. But my usual methods weren’t achieving the desired result. Reluctantly, I’d already
tried Joy on the harness but she just got more excited; maybe having distance from the sheep in the holding paddock would work. Some dogs will drop their noise when the sheep aren’t close, or they will bounce up and down straining on the ropes because they don’t
like being kept back from the sheep, but Joy did the opposite. The noise was at full throttle yet she was calmer and listening. After a couple of lessons she stood facing the sheep quietly, barked when asked, walked when asked, not pulling, going out to the right and left on command or with slight
rope pressure -- naturally not perfectly, but she was a calmer dog, therefore open to learning; she just needed space from the sheep. • Anna Holland is teaching people dog training. For more information www. annaholland.co.nz or Ph 06) 212 4848 or annaholland@xtra.co.nz
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46 ANIMAL HEALTH
Number of tricks to a good calving GETTING COWS in-calf quickly is key to achieving a good calving pattern, says DairyNZ. Heat detection, pre-mating heats and bull management are
key ingredients for a successful mating. Getting these right will benefit the farm’s submission rate and sixweek in-calf rate, it says. The easiest way to
spot cycling cows is to do pre-mating heat detection. Use tail paint to pick out cycling cows. Use one colour tail paint to start, then a second colour
Tail painting is an inexpensive and effective way to detect cows on heat.
as cows cycle and lose their tail paint. Within two weeks about half the cycling cows will have been identified. At three weeks, cows with the original OPSJ0489
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colour are the noncyclers. Calculate the herd’s pre-mating cycling rate using the InCalf book for the percentage of cows showing signs of heat before mating begins. If cycling is less than 75% by 10 days before the planned start of mating, heat detection has not been fully effective and/ or there are too many non-cyclers. At that stage it is time to seek advice and consider which options are available to improve heat detection during AB (artificial breeding) and treat non-cycling cows. The best heat detection starts with careful planning, good observation and the effective use of detection aids. Being able to interpret cow behaviour and other signs is critical, along with good record keeping and training for those doing heat detection. Start by reviewing the farm’s heat detection skills. Does everyone know what to look for when detecting cows on heat? Then, decide which combination of aids the farm will use (tail paint, heat mount detectors, activity meters and heat synchronisation). Tail paint Tail paint is an inexpensive and effective way to detect cows on heat. Apply tail paint to all
cows just before the start of mating. Touch it up at least weekly and check for cows with rubbed or broken tail paint during milking. Re-checking tail paint for rub marks immediately before each cow’s insemination will avoid inseminating cows not on heat. To help identify cows not yet inseminated or those only showing weak signs of heat, reapply a different coloured tail paint to recently inseminated cows once other cows no longer try to mount them. Heat mount detectors Heat mount detectors can be particularly effective on farms with less skilled staff checking cows on heat - and when used with paddock checks for heat. Applied to the cow’s backbone, the detectors will become brightly coloured and easily recognised. Again, heat mount detectors should be applied just before mating starts, then monitored for activation and removed at insemination. Until the end of the AB period, the detector should be replaced after insemination, when the cow is no longer being mounted. Regularly replace any heat mount detectors if damaged or coming loose.
Chris, Beef farmer, West Coast
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❱❱ Good bull management ensures they are well adjusted to their environment before mating. ❱❱ Move bulls to the farm two to three months before they are required for work. ❱❱ Buy bulls from the same mob and split them into two teams to rotate them (half resting, half working) to reduce fighting.
RURAL NEWS // SEPTEMBER 1, 2015
ANIMAL HEALTH 47
Looking deeper into Lepto vaccine GRACE PETTIT
LEPTOSPIROSIS VACCINATION research has had a boost with $480,000 granted to Massey University researchers seeking to establish whether vaccinating dairy cattle is effective in preventing dairy workers from getting the disease. Statistically this is the most prevalent zoonotic disease in New Zealand. Leptospirosis is a mobile bacterium that can be transmitted from live animals to humans, hence the term zoonotic. The transfer of leptospira is generally through human contact with the urine of farm animals carrying the disease, either directly or through the environment, for example water on paddocks. Previous research has shown that rats, possums and other pests
can carry the bacteria, but it is not known which role they play in causing humans to become infected. They may be reservoirs maintaining the bacteria independently or just pick them up by chance when in contact with farm animals. Massey University lecturer Professor Cord Heuer says it is a challenge creating a vaccine that fully combats the disease in view of the numerous strains of the bacteria, known as serovars. “Current vaccines only cover two or three serovars of 6-8, by which notified human cases are found to be infected in NZ.” In 2011, in a pilot study of 45 dairy herds 30% of the herds showed a positive result. Of that 30%, 13% of the cows were positive. But limited testing made it difficult to establish important fac-
tors about these positive results, eg which serovars were present in the cattle that tested positive. Based on the results of this pilot trial, the stakeholders and researchers have developed three main goals: identifying serovars prevalent but not covered by the vaccine; establishing how many cows are shedding the lepto bacteria; and describing relationships between shedding and the way vaccines are used by farmers. Beginning in June the project has targeted 200 dairy herds nationwide, with 20 cows per herd being randomly selected for sampling. Sampling will begin in December. Massey will work with local veterinary clinics to ensure best practice in animal ethics and to access local databases.
The charge arose after several complaints to the Ministry of Primary Industries about the state of some of his stock, visible from the road on his farm near Balclutha. Animal welfare inspectors visited in August 2014, finding 300 sheep in an enclosure near his home. Many were in poor condition: 70-75 had died from malnourishment or being crushed trying to get feed from a bale feeder. About 20 dead animals were
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SHEEP FARMER FINED A FARMER who caused the death of dozens of sheep on his South Otago property brought farming into disrepute said the judge presiding at the hearing of the case. Judge Kevin Phillips told Angus Maclean Penrice this when the farmer, aged 63, appeared before him in the Dunedin District Court on a charge of ill-treating a mob of sheep. Penrice was fined $18,200 and ordered to pay a vet bill of $2118 and court costs of $130.
Leptospirosis researcher Prof Cord Heuer.
found around the bale feeder, while three sheep – including two dead – were found propped up against a nearby fence. The third had to be killed. “It’s alarming that anybody could let stock get in that condition,” the judge added. Judge Phillips said agriculture was important for the New Zealand economy and the industry’s international reputation was paramount. “You have brought farming into disrepute.”
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RURAL NEWS // SEPTEMBER 1, 2015
48 ANIMAL HEALTH
Genetics role aims to grow local talent BEEF + Lamb New Zealand (BLNZ) Genetics has appointed Dr Phillip Wilcox as its inaugural senior lecturer in quantitative genetics at the University of Otago.
Wilcox comes from an East Coast sheep and beef farming family, in it for three generations. He has a background in molecular and quantitative genetics and comes from the
forestry Crown Research Institute Scion, where he was a senior scientist. In the BLNZ-funded role will set up a two-year master of applied sciences in quantitative genetics
at the university. Quantitative genetics is central to most BLNZ Genetics research and underpins its sheep genetics system SIL. “For 20 years, to get
people with these skills in NZ, we’ve tended to recruit people with PhDs or advanced master’s from overseas. The master’s programme is to begin filling such roles
KISS GOODBYE TO SCABBY MOUTH
Dr Phillip Wilcox (right) is the inaugural Beef + Lamb New Zealand Genetics senior lecturer in quantitative genetics at the University of Otago. He is pictured with BLNZ Genetics general manager Graham Alder (left).
with home-grown talent, [to ensure] NZ has a ready supply of appropriate capability – talent relevant to our primary sector’s productivity. And continued genetic improvement is a key part of sustaining our nation’s GDP.” Wilcox says students are likely to come from biological, statistical or computer science backgrounds. BLNZ Genetics chairman Dr Chris Kelly says quantitative genetics is a critical discipline in animal and plant breeding and key to BLNZ Genetics getting genetic gain for commercial sheep and beef farmers. “It is, however, a specialist discipline and there are very few practitioners trained to an advanced level in NZ.
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“BLNZ Genetics is investing in the senior lecturer position and master’s programme so the red meat sector can begin building people capability to ensure animal breeding continues to advance sheep and beef production. “The master’s programme will link with other genetics programmes in NZ and make extensive use of primary industry scientists. This will help facilitate a pathway for master’s students to transition into work positions.” The new position sits within the University of Otago’s Department of Mathematics and Statistics. Wilcox will work with other scientists who also contribute to BLNZ Genetics research.
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RURAL NEWS // SEPTEMBER 1, 2015
MACHINERY & PRODUCTS 49
She’s a pretty big job! MARK DANIEL
Trenches dug for laying irrigation pipeline.
The JD 4066M tractor is doing all the work.
markd@ruralnews.co.nz
WHEN SMYTHE Contractors, Hautapu, recently won the contract to install the irrigation system for the new second drier being constructed at Fonterra Lichfield, it was a case of déjà vu. In 1995, when the first drier was commissioned in a record nine months, Smythe installed the irrigation system for that plant – but that pales into insignificance when you look at the current project. Lichfield now produces 63,000 tonnes of cheese a year – easily recognisable names such as Gouda, Edam, Cheddar and Parmesan. The new plant will have the capacity to handle 4.4 million litres of raw milk a day and convert it into 700 tonnes of whole milk powder at a rate of 30 tonnes an hour, employing 50 full time workers. With this production comes waste water output of 10mL/day, which must be dealt with effectively and efficiently – all the while maintaining good environmental practice. The solution is the Lichfield Farm, Waratah Block, west of the factory. It The Trench-it chain trencher in action.
block and necessitating the installation of 5400 risers. All branch lines and field mains will be controlled by electrically actuated valves controlled at the factory, which will also monitor the amounts of liquid applied per hectare. The irrigation job is underway, helped by a new John Deere 4066M tractor fitted with a Trench-it chain trencher. The machine deals well with the underground rocks and tree stumps littering the area. Power comes from a 4-cyl 66hp Yanmar diesel with the latest Tier 4 specs, driving through a three-stage is now being transformed into a 360ha area of 36 paddocks, as old forestry stands are cleaned up and the land recontoured. The $6.5m contract to build the 160km irrigation system will take 10-12 months to complete. It will move factory waste water – treated to remove solids and nitrates – out onto the farm via three 250mm diameter mains, subdivided into 200mm branch lines, 100mm field mains and 50m risers. The ever reducing diameters ensure constant pressure of 7bar, though testing is carried out at 12.5bar. Final spacing in the paddock is around 20m, with 150 sprinklers per
hydrostatic transmission with cruise control, which enables it to maintain slow forward speeds required by the trencher. Close-coupled to the tractor is the 2-inch pitch chain, rated to 50,000kg capacity. This cuts a clean 300mm trench down to around 1m, then after pipe laying the front fourway blade does the backfilling. The final tidy-up is done with a home-made compactor on the front of a tractor – a large diameter steel wheel which can be filled with water to increase weight. This is driven down the trench line after the backfilling.
Final tidy-up is done with a home-made compactor wheel on the front of the tractor.
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RURAL NEWS // SEPTEMBER 1, 2015
50 MACHINERY & PRODUCTS
Carrier takes load off markd@ruralnews.co.nz
CB NORWOOD Distributors, importers of Vaderstad cultivators, has launched the maker’s Carrier L and XL cultivators. This multi-purpose implement is equally at home in stubble – following the header – or in working down ploughed ground during spring. Layout is over three distinct areas, acting progressively on the job at hand, with a toolbar at the front, followed by the main discs and a packer system at the rear. The front toolbar is configured to take different setups such as the straw harrow, which spreads residue to make tillage easier and ensure a uniform seedbed for following crops. The crosscut knife slices everything from green cover to maize stalks while operating at 90o to the discs to ensure all residue is cut in two directions. Lastly, the crossboard option crushes clods or slices and levels ploughed furrows. The next phase is the disc section set out in an X-form to cancel out lat-
eral forces and ensure a ‘straight’ pull behind the tractor, useful for GPSguided operations and working on sidling land. Discs are mounted on individual arms, with high clearance for exceptional trash flow through the machine and use the Multi-Set system to allow operating angles 11-19o, set in four increments. Made from high grade V55 Swedish steel, the discs have a conical design which helps protect the bearing assemblies but, more importantly, helps produce a fine soil and maintains the disc angle irrespective of the working depth or any wear. Available in a 51cm diameter (L) or 61cm diameter (XL), the discs have a notched edge called TrueCut, which promotes less wear but also maintains constant aggression at work. For customers seeking flexibility, the system uses common disc support arms that allow a change from the smaller diameter discs to the larger and back if required. Options for the rear-section packer systems are: an open design called CageRunner – easy to pull and selfcleaning; SoilRunner, that has a ‘U’
shaped profile that resists clogging and lowers scraper wear; or SteelRunner, which has a deep profile that presses down stones and crushes clods, suting medium or heavy soils. The latter is also available as a double row version that can be tilted in wet conditions to allow better percolation of water into the soil. At the rear of the machine a new suspension system on the transport
wheels extends their life and, as well as transport, these can be used for manoeuvring in the paddock – particularly in shallow operations – although the operator might choose to make a turn carrying the machines on the packer rollers. Maximum working depth is controlled on the machine, and on-the-go adjustments can be made
hydraulically from the tractor seat. The Carrier is available in four sizes from 4.25-8.25m working width (425/525/625/825). Interesting to note is how it folds down to a transport width of only 3m and a transport height of 4m – unusual for a disc-based machine that can operate at over 8m in work. www.vaderstad.co.nz
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RURAL NEWS // SEPTEMBER 1, 2015
MACHINERY & PRODUCTS 51
Artic loader good in a jam MARK DANIEL markd@ruralnews.co.nz
CHRISTCHURCHBASED FOREST Quip NZ is to market Tobrocco Machines’ Giant wheel loaders in New Zealand and Australia. The machines have been built in a modern factory in the Netherlands since 1998, a team of 200 employees turning out around 2000 annually. The range offers engine sizes of 20-75hp and lift capacities from 800-6000kg to suit users from landscapers and horticulturists to farmers. Machines up to 60hp largely use Tier3A Kubota engines, the range topping N761T a Deutz Tier3B unit. Drive is taken from the engine to a two-stage hydrostatic supplied by Rexroth which will ensure easy servicing and worldwide parts back-up. 4WD and 16 tonne-rated heavy duty axles are fitted to the largest machines. These axles offer electrically engaged, 100% differential lock to front
and rear, so should ensure drive is maintained in all conditions. A key point of difference with these units is the articulated design that allows accurate placement of the load in tight places, not always the case with rigid machines, and central lateral oscillation keeps the wheels in contact with the ground in difficult terrain. The boom assembly has parallel lift, a Z-linkage at the implement coupling point which helps increase crowd capacity and tearout forces, and a gear driven main system hydraulic pump rated at 80L/min. An optional load sensing pump at 150L/ min is available for high demand applications. The operator is catered for with wide access entry to the platform or cabin, and all structures comply with ROPS and FOPS standards in the event of a rollover or falling objects. The control system is ergonomically laid out with a single lever joystick for the main boom, and an
electrically actuated forward/reverse directional shuttle lever. As with any machine of this type, the versatility extends beyond just lifting, and Forest Quip intends to offer a full
range of attachments. There are seven NZ dealers, and a dealer development programme underway to increase this number to 15-20 outlets over the next 12 months. www.forestquip.co.nz
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WHAT’S THAT QUEER SMELL BECAUSE B E CCOOL A USE COWS BECAUSE UNCOVERED U N C O V E R E D FEED-PADS FEED-PMILK ADS PRODUCE MORE NEGATIVELY N E G AT I V E LY OVERLOAD O V E R L OA D Keep your herd cool over summer EFFLUENT E F F L U E N T VOLUME Vdairy O L Uhousing. ME through permanent Cover C Co Cove ove ver y yo your ou urr ffeed-pad eed ee d--p pa ad tto o That’s we separate and se s ep pa ara rawhere te rrainwater te aiin a nw wat atcome er a er nd n din. effluent volume. rreduce re red ed du uc uc ce ee fffflu uent ent vo en v olu lum me e.
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WHILE THE modern farm tractor runs almost exclusively on a diet of diesel, over the years we have seen derivatives running on bio-diesel and one unit out of Germany that ran on pure rapeseed oil (Canola). The first blue New Holland tractor showing the ‘gas’ engine was based on a T6.140 model with a modified chassis to cradle a 3L, 4-cyl F1C engine, more commonly found in Fiat vans and trucks. The unit also had a new drop box to reduce engine speed from 3500 to 2200rpm and nine methane storage tanks giving 300L capacity or around 52kg of compressed gas. The rear end of the tractor was standard T6, and outputs were similar to diesel at 136hp and 350Nm torque. First results were a tractor with much lower running costs and smooth, quiet operation; the negatives were a mere half-day running time and the wariness of operators about sitting next to nine gas cylinders pressurised to 200 bar. Fast forward to today and the concept of a more ‘regular’ tractor: the second evolution takes a New Holland T6.175 unit fitted with a 6L FPT engine. This ‘structural’ model has no need for a modified chassis of the modified drop box to reduce engine speed. Output is around 179hp and torque 740Nm, comparable if not better than the diesel powered norm. The tractor’s range is still a negative: about half a day. Development will centre on larger gas storage tanks, perhaps around the front ballast or even carried on implements, and volume matched to suit the job in hand. – Mark Daniel
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RURAL NEWS // SEPTEMBER 1, 2015
52 MACHINERY & PRODUCTS
300k machines and still all Claas MARK DANIEL markd@ruralnews.co.nz
PATENT NUMBER 372140 won’t be important to many, but to one of the world’s largest manufacturers of harvest equipment it was a stepping stone to the future. The patent for a knotter to bind straw was granted to Claas in 1921 and to this day it remains part of the company logo. That knotter was used on stationary balers in the early years and became part of the company’s first pickup baler in 1934. So it’s no surprise to hear the company recently celebrated production of its 300,000th machine, a Rollant 454 Uniwrap round baler.
In 1958, Rheinhold, son of founder August Claas, set up a factory at Metz, SE France, that would become the main production facility for Claas forage equipment and particularly balers. About 400 employees now make 5000 balers a year there, carrying the well-known names Rollant, Variant and Quadrant. The plant makes 21 different models, sold in 100 countries and estimated to harvest 25 different crop types – wheat, barley and oat straws, cotton in South Africa, peanut haulm for cattle feed in America, flax in Eastern Europe and miscanthus and reed canary grass in France. The 300,000th machine will be used for promotion purposes.
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NH aims for sustainability CARLO LAMBRO, president of New Holland Agriculture, spoke in late June at the general assembly of The World Farmers Organisation, at Expo Milan 2015. This addresses issues of sustainable farming, the role of mechanisation in feeding the planet’s population and the implications of a forecast rise to 9 billion people by 2050. Lambro spoke of New Holland’s dual approach in seeking to maximise efficiency and
productivity in mature markets, while exploiting opportunities to expand mechanised farming with new machines to meet local needs in developing countries. For example, Africa has 60% of its people in agriculture, but this generates only 16% of GDP. Lambro said the NH Clean Energy Leader strategy, adopted in 2006 includes the Energy Independent Farm Concept that removes reli-
ance on fossil fuels, in favour of ‘grow your own’. In this model solar, wind and biomass generate energy to power farms and their machinery. “I am proud to share the projects of New Holland, which are designed to give farmers the recognition they deserve,” Lambro said. “[We provide them] with the best available technologies to do their work in a safe and sustainable manner.” – Mark Daniel
President NH Agriclture Carlo Lambro & WFO President Evelyn Ngukela.
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RURAL NEWS // SEPTEMBER 1, 2015
MACHINERY & PRODUCTS 53
Robust, accurate drilling VADERSTAD HAS a long association with drills, the first production Rapid models drilling peas in Suffolk, UK, for supply to Birdseye in 1992. Over the years the Rapid gained a reputation for a simple design that made it robust and dependable, accurate in placement and depth control, low in power requirement and able to deal with trash during direct drilling. The layout has rubber mounted discs to the front of the machine that chop and loosen the stubble, which can also be preceded by cross boards for levelling. The drilling element has a packer wheel that controls the drilling depth of a pair of coulters via a mechanical linkage, and the rubber mounting results in a fluid movement at high speed; pressure can be up to 150kg per unit for good penetration in hard conditions. Spacing is set at 125mm and uses a single disc for a narrow seed furrow; the serrated edge delivers fine soil for
seed covering and rapid emergence. Fertiliser placement is set at 250mm, so is between every second seed row, with a target depth of 20-30mm below the seed After drilling, consolidation is done by a wheel that covers two seed and one fertiliser row, and a 190mm setback between banks to allow soil and trash to pass through without the soil build-up associated with single row press systems, and resulting in a lower draught requirement. Following up the rear is a harrow set up between the rows to prevent seed disturbance, while leaving a friable surface to resist ‘capping’ from any rain. Upgrades for the 2015 season include a new streamlined hopper mounted slightly higher above the drilling element, allowing much better access, and ‘grease-less’ disc hubs assembled during production – fewer grease nipples needing daily attention. A re-design of following harrow geometry achieves better lift height
STATS ❱❱ Situated in Vaderstad, Sweden ❱❱ Founded by the Stark family in 1962 ❱❱ Privately owned ❱❱ 177 employees ❱❱ Turnover (2014) NZ$294 million
in turns; it also allows a choice of mechanical or hydraulic adjustment -- the latter on-the-go, which might be a requirement for the ‘lands’ or the headland. Notably, the addition of a hydraulic seed metering drive allows full optimisation of the new control technologies such as Control Station, ISOBUS and E-Control. The former is used to adjust seed rate, lay tramlines, set bout markers and control half-machine shut-off; ISOBUS removes the need for individual control boxes for many machines. The E-Control system uses the latest wireless technology via an iPad Air tablet to adjust seed rates, seed spacing, fertiliser rates and on/off
function. After drilling is completed field data can be uploaded to the farm office or the cloud, and the tablet can be
used for accessing operators’ manuals or parts listings www.vaderstad.co.nz
PERKINS’ NEW SITE PERKINS OF Peterborough is a name synonymous with diesel engines and dates back some 80 years. Worldwide there are at least 500,000 engines in daily service, and current production supplies engines for use in 300 tractor models from 5hp to 2800hp -- in agriculture, industrial, marine and power generation applications. To help support current and previously supplied product, Perkins has launched a new website – www.perkins.com – with four sections covering products, parts and service, distribution network and the company. The site contains over 300 pages of information.
CONTROLLED. SUSTAINABLE. COST EFFECTIVE. A Mono™ HSE dairy effluent pump can offer considerable cost savings by eliminating the need for a series of pumps when pumping over a long distance or high head. In some situations it can also mean not having to go to the expense of upgrading the existing power supply, with the potential to save you thousands.
HSE Animal Effluent pumps – the very heart of your effluent irrigation system. For more information visit your local Mono dealer or call Mono Phone 0800 659 012
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RURAL NEWS // SEPTEMBER 1, 2015
54 MACHINERY & PRODUCTS / RURAL TRADER
Still turning many heads
SEE WHERE YOU’VE BEEN
MARK DANIEL markd@ruralnews.co.nz
A CLEVER light from Tyri should find favour with spray rig operators. The BlueBeam 1010 throws a long distance beam over a concentrated area, so is ideal for boom mounting and will effectively cover an area up to 20m. The BlueBeam LED light ensures operators can see if the spray pattern is uniform and allows spraying in fading light. The bright blue light is said to be more effective than white LED’s or halogen lights as it gives a clearer view of each nozzle and helps the operator identify any blocked or badly performing areas. An IP68K rating ensures that electrics are protected from moisture generated by the spray nozzles. www.panpacific.net.nz
SINGLE DOG BOX $525
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THE SAYING goes “the only good thing to come out of Birmingham (UK) is the M6 motorway”, but just a few miles down the road in the heart of the Industrial Revolution, is Solihull, the home of the Land Rover. The company has now notched up 2 million Defenders, and though well short of the production numbers of, say, the Toyota Hi-lux or Ford F Series, it marks the loyal following this quintessentially British brand enjoys worldwide. In the mid-1940’s Maurice Wilks, chief designer for the Rover Group, got inspired by an ex-WW2 Jeep on his farm in Anglesey, North Wales, during a summer break. While walking on Red Wharf Bay he drew in the sand an idea for a vehicle – a ladder chassis, two driven axles and a PTO drive, an 80-inch wheelbase and straight panels easily produced. So in 1947, the Series 1 Land Rover
went into production at Lode Lane, Solihull, the public seeing it for the first time at the Amsterdam Motor Show in April 1948; window price was 450 pounds. It became an overnight success as a no-nonsense vehicle that appealed to farmers, and to landowners who wanted offroad capability -- easy to drive, service and repair. Farmers in particular used the PTO in static mode for driving sawbenches, etc and in mobile work for driving mowers and many other implements. Configuration ranged from a simple ‘rag-top’ to a fully appointed 12-seat station wagon, powered by fours to thumping V8’s in petrol or diesel.
The ladder chassis provided a platform for customising into ambulances, fire trucks, snow ploughs and even cherry pickers. The military bought them in huge numbers; a bespoke build included armour, gun turrets and specialised winches. A batch of 100 ‘Pink Panthers’
TOP DOG BOX Accommodates up to 4 dogs 6 individual air vents Removable centre board 2 lockable galvanised gates In-house drainage Tie down lugs on each side Fits all wellside & flatdeck utes (2 models) ❱❱ Raised floor for insulation ❱❱ ❱❱ ❱❱ ❱❱ ❱❱ ❱❱ ❱❱
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-- painted pink – went to the SAS for desert reconnaissance. These options also included forward control and a ‘lightweight air transportable’ version for dropping into campaigns by helicopter. Company ownership moved in 1994 from the disbanded British Leyland Group to BMW. Ford bought it in 2000 and sold it in 2008 to the current owner, TATA of India. While the vehicles are still primarily built in Solihull, they are also assembled in Spain, Iran, Brazil and Turkey, and are part of a joint venture for building in China with Chery. For nearly 70 years these vehicles were sold in series I, 2 and 3 and latterly Defender models. The first million milestone was hit in 1976.
Happy Birthday To mark a birthday, retirement or any milestone, give that special someone, something special - a personal cartoon portrait by Edna cartoonist Malcolm Evans - $200 plus GST Send no money - just email a few up-to-date photos of subject, with a note of details you’d like included, to; malcolm@evanscartoons.com
Phone 0800 625 826 www.mckeeplastics.co.nz Orpost postyour yourinquiries inquiriesto;to:M. M.Evans, 17 Vista Auckland 1071, Or Evans, 39J Cape Crescent, Horn Road,Glendowie, Hillsborough, Auckland 1041 . and your return address. anddon’t don’tforget forgettotoinclude include your return address.
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The heavy duty sole construction makes this a robust boot designed for climbing over rugged ground. This boot has a soft toe and is made from a thick Mad Dog Nubuck Leather, stitched and screwed construction with a rubber, replaceable sole, that is glued and screwed. Soft padding for ankle support and D-Rings for your laces are an added advantage. Great fitting boots full of comfort, ideal for those long hunting and tramping trips.
FARMER BOOTS Lastrite’s Farmer boots are made
for comfort. Constructed from Reverse kip leather they are an ideal farmers, fencers and builders boot. Very sturdy and made to last this boot is robust with a heavy duty construction. It has a leather insole and midsole that is stitched and screwed construction with a rubber, replaceable sole, that is glued and screwed. Update your old boots now and you will never look back.
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@rural_news facebook.com/ruralnews
RURAL NEWS // SEPTEMBER 1, 2015
RURAL TRADER 55
HAY, GRAIN & MEAL TROUGHS 3m Culvert on Skids $530.00 inc 80L on Skids $455.00 inc
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3m Culvert on Legs $360.00 inc
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160L on Skids $660.00 inc
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MOBILE FEED TROUGHS 4.5M (3 Wheel) Jumbo Culvert PK Feeder $3695.00 inc
6M Culvert (mobile) $1450.00 inc
4M - 800L Budget Drawbar $2150.00 inc
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