Rural News 16 February 2016 by Rural News Group

RURALNEWS TO ALL FARMERS, FOR ALL FARMERS

FEBRUARY 16, 2016: ISSUE 601

www.ruralnews.co.nz

What’s stealing your production?

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PASTURE

PESTS! They are a significant threat to maintaining pasture quality and cost farmers millions of dollars in lost production annually.

They’re small and seemingly insignificant, but in the right breeding conditions pasture pests can reach plague-like proportions inflicting serious damage to newly sown pasture. Ironically it’s in hot, dry summers, when existing pastures are under so much pressure, that pests like the Argentine stem weevil flourish. Plant damage occurs in different ways relating to the growth stages of the insect. For example, the Argentine stem weevil larvae tunnel into the stem of the plant, depriving the plant of nutrition. On hatching, the adult insect then feeds on the exterior of the plant, further enhancing the damaging affect. By and large, these feeding habits directly compete with your stock for feed.

Argentine stem weevil • Argentine stem weevil (ASW) infests improved pastures throughout New Zealand. • Two ASW generations per year, the first: spring to early summer and the second: summer to early autumn. A partial third generation can occur. • The small ASW adults are highly mobile, and one female can lay up to 300 eggs. • Adult ASW damage is confined to “windowing” caused by feeding near the leaf tips of grass and cereals. • ASW larvae are the most damaging life stage, as they may be present from midSeptember to May putting both spring and autumn sowings at risk of attack. • Tiny ASW larva, 1 mm long, hatch from eggs laid in leaf sheath tissue. Larvae mine tillers for food causing them to wilt and die. They will move from one stem to another in search of food.

Grass grub

Black beetle

• Grass grub is a native insect and occurs throughout New Zealand. Improved pastures support the highest populations.

• Black beetle can be found throughout the northern part of the North Island.

• Usually there is one generation per year. Adults emerge over 2-3 weeks in late spring when egg laying occurs. Most of the year is spent in the larval stage in the soil with pupation occurring from late winter to early spring. Adults emerge and fly at dusk, over two-three weeks in late Spring. • Grass grub larvae are C-shaped, white, soft bodied with a hard gold – tan head and up to 20 mm long when fully grown. • Grass grub larvae are the most damaging life stage and feed on the roots of a range of plants. Cereals and all pasture species may be attacked. • Damage often appears as patches of stunted, yellow to dead pasture. Root hold is poor and plants are easily pulled from the soil, in cases of severe infestation pasture can be rolled up like a mat. Damage is usually most apparent in autumn/early winter when grass grub feeding is at a maximum.

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• Climate has a major impact on beetle numbers. Successive hot and dry summers can lead to an explosion in numbers. • Black beetle has one generation per year. Virtually all life stages may be found in the soil at any time of the year. • Adult black beetle are a glossy black and about 15 mm long. Larvae are similar in form to grass grub but are larger (25 mm long when fully grown), with a light brown and a grey to creamy white body. • Newly sown pasture is very susceptible to attack by adult and larval stages and damage is very similar to that done by grass grub.

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NEWS There’s a secret only a few locals know. Until now. PAGE 17

ANIMAL HEALTH One-shot vaccine keeps 2-tooths on the rise. PAGE 29

RURALNEWS

NEWS Fonterra looks to more business in Iran following the lifting of UN sanctions.

PAGE 10

TO ALL FARMERS, FOR ALL FARMERS

FEBRUARY 16, 2016: ISSUE 601

www.ruralnews.co.nz

Better understanding needed PETER BURKE peterb@ruralnews.co.nz

AN AGRICULTURAL academic wants all policy and rule makers in local and central government to properly understand farm systems and how they are run. Professor Peter Kemp, who heads the Institute of Agriculture & Environment at Massey University, says many don’t understand. He finds this intriguing given that a lot of farmers have made the effort to understand policy, for example Federated Farmers, which understands policy and feeds that out to its farmer members. “But it’s inconsistent the other way. While some regional council policymakers understand farming well, others don’t understand farming in the true systems approach,” Kemp told Rural News. “They are focused on nutrient management or compliance, without fully engaging with how a farm system has to be run and managed. “I am not making excuses for farmers; I just think that to get to and fro you need the policymakers in tune with what can and can’t be done on a farm – as much as you need it the other way around.” Kemp says, in some cases, people in government offices are philosophically driven, which is a fine thing but sometimes they let themselves down because they don’t fully understand whole farming systems. He’s not saying ‘let farmers off’, but believes there needs to be practical policy solutions.

“A classic case was the cattle in the lake in Canterbury recently, which got a lot of press,” Kemp adds. “It brought home to me that the farmer involved did have the lake

fenced and knew it wasn’t a good idea to let the cattle in the lake. But on the day he chose to look after the cattle more than look after the lake. Personally, I think [the farmers] got it wrong. But

the challenge is [for policymakers] to understand what it’s like to be in that position.” Kemp believes the need is to get information out there rather than

always use a big stick to embarrass someone who has made a mistake. He says it’s important that the rural community makes an effort to educate policymakers, many of whom want the world to become more sustainable, which everyone agrees with to a certain degree. But these people need to accept the reality of some situations, such as greenhouse gas emissions, which can’t be solved because there isn’t a technological answer. “A lot of that knowledge comes with time. It’s not something you learn quickly, it’s a picture that builds up over time understanding ecosystems and farm systems. It’s probably an ongoing education thing and it’s fair to say we are not overly good at that in NZ,” he says. @rural_news facebook.com/ruralnews

IRRIGATORS' DRY ARGUMENT CANTERBURY IRRIGATORS say they are shocked by an Environment Canterbury (ECan) decision that will prevent the Barrhill Chertsey Irrigation Ltd (BCI) from being granted a replacement scheme discharge permit, when its current permit expires in 2018 for any land not irrigated before February 15 2015. Chairman of the BCI scheme, Rab McDowell (pictured) says farmers in the scheme are shocked at the outcome. “We’re being cut out of expanding into an area where [farmers] have put in considerable infrastructure.” – More page 4.

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RURAL NEWS // FEBRUARY 16, 2016

NEWS 3 ISSUE 601

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NEWS..................................... 1-17 MARKETS ......................... 15-19 AGRIBUSINESS.............. 20-21 HOUND, EDNA....................... 22 CONTACTS .............................. 22 OPINION.............................22-24 MANAGEMENT.............. 25-28 ANIMAL HEALTH .......... 29-30 MACHINERY AND PRODUCTS ...................... 31-34 RURAL TRADER ................... 35

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 ABC audited circulation 81,004 as at 30.06.2015

Alliance suppliers’ to be docked JUST WHEN sheep farmers thought them to receive the full benefit of the their meat returns could not get any cooperative’s profitability and ensure worse some Alliance Group suppliers some suppliers are not being subsidised are about to find out they can. by others,” Alliance chairman Murray This week the company has started Taggart and chief executive David withholding some stock payments to its Surveyor say. farmer shareholders to boost its balance “We believe these changes are in sheet and force suppliers to meet their the best long-term interests of your share requirements. cooperative.” New Zealand’s Alliance says it is second-biggest meat aware farmers had cooperative says it will faced a “challenging” withhold 50c per head season and its board for lamb, sheep and debated the changes calves, $2 per head for “at length,” mindful deer and $6 per head they would have for cattle. financial implications It says the payments for shareholders who will go towards don’t have enough additional shares in the shares. cooperative but will “In the end we Alliance chief executive only apply to farmers David Surveyor. were of the view that who have fewer shares delaying these changes than required. will prolong the inequity of the current The company’s move aims to firm system where those shareholders up its cooperative status, just as rival who meet the standard shareholding Silver Fern Farms waters down its effectively subsidise those who do not.” cooperative class with its Chinese The meat co-op says it also wants to investor. Shanghai Maling is set to take retain more profits to allocate towards a 50% stake in the meat company later share payments. In future, it wants this year; SFF will use the new capital to be able to withhold half of a profit to repay debt, upgrade plants and invest distribution as payment towards shares for growth. – up from one third currently. Alliance says its move will ensure Alliance will also end the scaling shareholder investment in the shareholding system which rewards cooperative matches livestock supply larger farmers. Shareholder suppliers and will bolster its balance sheet. are expected to hold 11 shares per In a letter to its farmer suppliers stock unit up to 5000 stock units and outlining the proposed change, Alliance then reducing to 4.5 shares per stock says some shareholders don’t hold unit, but limited to 25,000 stock units enough shares to reflect the amount of in aggregate. stock they supply. One lamb, sheep, or calf is equal to “[We need] to ensure the cooperative one stock unit; one deer is equivalent has the right level of investment from to four stock units; and a cattle beast our farmer shareholders, enabling is equivalent to 12 stock units. Under

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And the winner is... MEGAN HEALE has topped the people’s and judges’ choice to win first prize in our ‘Show Us Your Rural Summer’ photographic competition. Fighting off stiff competition in a high quality field of entries, Megan’s photograph ‘Taking a Stroll’ (seen here) wins first prize overall. Second place went to Louise Lahmert and third place to Kevin Shakespeare. Congratulations to all three winners. They will each receive a high-quality Weber Q Range BBQ, the biggest and flashest model obviously going to our first place getter, Megan Heale. Thanks to Mitre 10 for supporting this competition and supplying the barbecues and thanks to all the readers who took time to share their summer photographs with us. Separating a winner from such a strong field was not easy!

the revised calculation, there will be no reduction from 11 shares per stock unit after a particular level of supplied stock units. This reflects that all stock processed requires the same use of processing facilities and therefore should require the same number of shares, Alliance says. “The strength of the cooperative depends on farmer ownership and all farmers contributing and benefitting

equitably,” the company tells shareholders in its letter. “We are all in this together and these changes will ensure all members of your cooperative invest equitably and that the business is appropriately capitalised to operate sustainably.” The cooperative is also lifting its shareholding cap to 1.35 million shares, equivalent to about 2% of its shares, from a current level of 145,000 shares. @rural_news

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RURAL NEWS // FEBRUARY 16, 2016

4 NEWS

Council decision shocks irrigators RICHARD COSGROVE

CANTERBURY IRRIGATORS are shocked at Environment Canterbury’s (ECan) decision to stop them expanding as the regional council attempts to bring nutrient leaching under control in one of its water ‘red zones’. In announcing its decision on the Hinds water plan, Ecan independent commissioners Peter Skelton and David Caygill have accepted Plan Change 2 to the Land and Water Regional Plan for the area of the Hinds/Hekeao Plains. This area lies north of the Rangitata River, almost to Ashburton and back west towards the Southern Alps. This is highly productive land but the area is over-allocated for water use. “The availability of plentiful clean water has been a critical ingredient in the catchment’s economic success,” says Skelton. “Water resources are now showing signs of stress, nitrogen levels are increasing and water availability is decreasing,” he says. “Waterways regularly dry out in summer and aquifer levels have dropped, affecting domestic water supplies and irrigation.” Once Plan Change 2 takes effect it

will prohibit further land use intensification until nitrate levels are at or below an annual shallow groundwater concentration of 6.9 milligrams/litre. Currently in the Hinds/Hekeao plains the annual average is 9mg/L. Also announced was a decision to prevent Barrhill Chertsey Irrigation Ltd (BCI) from being granted a replacement scheme discharge permit when its current permit expires in 2018 for any land in the Hinds/Hekeao area not irrigated before February 15 2015. This will affect the future growth of BCI in the Hinds/Hekeao area, but properties are still able to develop under the Rangitata Diversion Race Management Ltd (RDR) discharge permit until it expires in 2019. The chairman of the BCI scheme, Rab McDowell, says BCI is seeking clarification from ECan over the decision. “There seems to be quite a different impact on them compared to those on the RDR,” he told Rural News. “We are shocked with the outcome,” says general manager of the BCI John Wright. “We’re being cut out of expanding into an area where the [farmers] have put in considerable infrastruc-

ture.” Wright is meeting with ECan to see what it means overall and whether BCI are comfortable with the decision – before ruling out appealing the decision. Applying for new water is prohibited once the plan change becomes operative, and all farming is required to be using good management practice by 2017. Existing farming activities can increase leaching up to a maximum of 15kgN/ha/year without requiring consent. In the lower catchment (the larger proportion of the affected area) consent can be sought to increase leaching by a small amount, but this cannot exceed 20kgN/ha/year. Properties which exceed 20kgN/ ha/year in the lower catchment will be progressively required to reduce their discharge by 15% by 2025, 25% by 2030 and 36% by 2035. But they will not be required to reduce nitrogen losses below 20kg/ha/year. The plan change also allows for existing abstractors of surface water and hydraulically connected groundwater to switch to deep groundwater,

BCI scheme chair Rob McDowell.

but no overall increase in water take is allowed and water surrendered must be left in the river to enable aquifer recharge. Farmers (or any interested parties) had 15 days to lodge an appeal to the High Court on points of law only. Once appeals have been resolved the plan change will become operative. ECan also announced it was call-

ing for submissions on Plan Change 5 which affects land use in the Waitaki River catchment with submissions closing on March 11. If this plan comes into effect in its current form, resource consent and audited farm environment plans will be required for farms to irrigate more than 50ha, or if they have more than 20ha for winter grazing of cattle.

COMPUTER SAYS NO! ECAN IS the first regional council bringing into play the notion of farming to industry-agreed good management practices, and is using an online portal to achieve this. The portal, available via ECan’s website, will take Overseer farm data and calculate a nitrogen baseline for individual farms, using data from 2009-2013. Independent commissioner Peter Skelton says the idea behind using the portal is to give farmers a consistent model from which they can apply good management practices to their farms. The model can be updated as time passes without requiring changes to the plan, which are lengthy and time consuming. “ECan won’t act arbitrarily. There has been agreement between ECan and submitters on limits to changes to the portal and there are protocols in place so that farmers won’t see a rapid change occurring overnight,” says commissioner Caygill. Farmers have been able to trial the portal from February 13; the Hinds/Hekeao area is the first sub-regional plan in the country to use it.

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RURAL NEWS // FEBRUARY 16, 2016

BLNZ ELECTIONS 5

â&#x20AC;&#x2DC;Noâ&#x20AC;&#x2122; to meat lobbyâ&#x20AC;&#x2122;s remits TWO MEN contesting the vacant central South Island Beef + Lamb NZ board seat do not support remits by MIE to the BLNZ annual meeting, despite them both once having been leaders of MIAG â&#x20AC;&#x201C; a group that advocated changes in the meat industry similar to those now promoted by MIE. As a former MIAG chair, John Gregan says while he respects what MIE has been doing he does not support the lobby groupâ&#x20AC;&#x2122;s remits for funding and board seats. â&#x20AC;&#x153;I fully support the

work MIE has done, but this needs to be funded by MIE,â&#x20AC;? he says. â&#x20AC;&#x153;Beef + Lamb are accountable to all levy payers for how it spends their money; to meet all professional costs incurred by MIE when Beef + Lamb isnâ&#x20AC;&#x2122;t involved in the process wouldnâ&#x20AC;&#x2122;t get my support.â&#x20AC;? Gregan says he could not support MIEâ&#x20AC;&#x2122;s other remit that calls for the two positions of processor representation on BLNZ be abolished and replaced initially by directors from MIE. â&#x20AC;&#x153;I could not

support this remit. If the two processor representatives were to be replaced this should be by two more farmerelected directors or two independent directors appointed by the board (which in turn would need to be approved by levy payers).â&#x20AC;?

â&#x20AC;&#x153;If farmers want an industry watchdog (like the Fonterra shareholders council) MIE may fit this role.â&#x20AC;? Meanwhile, fellow BLNZ central South Island candidate Bill Wright reckons MIE was

never going to achieve its vision of a single co-op. â&#x20AC;&#x153;As a whole, farmers didnâ&#x20AC;&#x2122;t want change. Silver

MIE REMITS Remit 1: that BLNZ endorses and funds all professional costs incurred by MIE to continue developing and implementing the savings and positive opportunities as identified by MIE in the farmer funded â&#x20AC;&#x2DC;Pathways

To Long Term Sustainability Reportâ&#x20AC;&#x2122;. Remit 2: that the two positions of processor representation on BLNZ be abolished and replaced initially by directors from MIE.

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TWO INTO ONE AN ELECTION is currently being held for the Central South Island director vacancy for the Beef+Lamb NZ board The two candidates are John Gregan of Hunter and Bill Wright of Cave for one farmer director position. Voting papers were posted farmers in the Central South Island ward in early February and need to be returned by election day â&#x20AC;&#x201C; Friday 18 March. Electionz.com is conducting the election on behalf of Beef + Lamb New Zealand and all enquiries should be directed to the returning officer, Warwick Lampp on 0800 666 030. To be eligible to vote farmers must be on the Beef + Lamb New Zealand electoral roll and they need to have owned livestock on 30 June 2015 â&#x20AC;&#x201C; at least 250 sheep, or 50 beef cattle, or 100 dairy cattle. â&#x20AC;˘ More from the candidates page 6 and 7

Fern Farms and Alliance have two very different philosophies and their boards and shareholders didnâ&#x20AC;&#x2122;t support a merger,â&#x20AC;? he told Rural News. Unsurprisingly, Wright does not support MIEâ&#x20AC;&#x2122;s call to remove processor representation from BLNZâ&#x20AC;&#x2122;s board and be replaced by MIE members. â&#x20AC;&#x153;It is fundamental to the communication with the processing/meat industry that they have a voice around the board table. It would be a short sighted moveâ&#x20AC;?. In regards to a remit asking for funding of

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MIE, Wright says farmers will send the board a message, one way or another, through the remit process and then the board will act in the best interests of farmers. â&#x20AC;&#x153;If farmers want an industry watchdog (like the Fonterra shareholders council) MIE may fit this role. However, this role may be better funded through a subscription to MIE,â&#x20AC;? he says. â&#x20AC;&#x153;I do not support the processor representation being removed from the board of BLNZ, to be replaced by an MIE member.â&#x20AC;?

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RURAL NEWS // FEBRUARY 16, 2016

6 BLNZ ELECTIONS

Poacher - turned gamekeeper A former chairman of the Meat Industry Action Group – a body that once advocated reforms in the meat sector – has since gone into dairy farming but is now standing for a seat on the Beef + Lamb NZ board. FORMER SHEEP farmer John Gregan, who farms near Waimate, has converted from farming 7000 ewes to milking 950 cows over the last eight years. Gregan says he and wife Cara were disillusioned with sheep returns which prompted their switch to dairying and they now run two nonirrigated dairy units at the foot of the Hunter Hills in South Canterbury. Gregan believes the dairy and sheep and beef industries should be working closer together and this is part of the reason why he has thrown

his hat into the ring. “Beef + Lamb have been incredibly helpful to me throughout my farming career,” he told Rural News. “I am now in a position where my industry and governance experience means I can give back by contributing at the board table.” Gregan says the most important issue currently facing red meat producers is twofold: a lack of profitability and the difficulty posed by the volatility in red meat prices. He would like to see BLNZ continuing its “fantastic onfarm support”

of beef and sheep farmers, and also forge a closer working relationship with DairyNZ. “We need to be able to take full advantage of the mutual benefits the industries offer each other,” Gregan says. He is a strong supporter of BLNZ investing money in schemes like the RMPP (Red Meat Profit Partnership) and the Government-backed Primary Growth Partnership. “Both schemes use farmer levy money to leverage other funding through Government and business partnership

funding; so that is a smart way to get bang for your buck,” Gregan explains. “The schemes are for best practice and learning from those who are succeeding. They are good initiatives.” He concedes it is hard to ensure that value from such investments is returned to farmers. “You can’t over a short time,” he says. “But the better farmers will always make sure they’re well informed and will lead from the front by adopting what works, and this is soon picked up by the wider farming base.” A key reason Gregan is

John Gregan believes the sheep, beef and dairy industries should be working closer together.

standing for BLNZ’s board is to see more collaboration and cooperation between the red meat and dairy industries. As a convert from sheep to dairy, Gregan does not share some others’ concerns about seeing more dairy conversions as sheep producers chase better returns. “The two industries are becoming more and more connected through grazing, growing feed and leasing,” he explains. “I suspect as that continues [the dairy and red meat sectors] will tend to rise and fall on the same tide.”

He adds that a long term lack of profitability in any industry will cause farmers to look at their alternatives. Gregan believes BLNZ’s role in safeguarding better returns for meat producers will be by ensuring that farmers are maximising their onfarm efficiencies. “I see any structural changes within the red meat industry itself needing to be led by groups like MIE and company shareholders. Many of the issues involved in a lack of profitability stem from the industry struc-

ture, an area Beef + Lamb isn’t able to get involved in directly.” Currently the red meat levy goes in three areas – onfarm, in market and at the policy table. Gregan believes the bulk of money should be spent on farm. “The difficulties of inmarket spending is that the benefits may not flow back to the farmers who are paying the levy, so any in-market spending would need to be proven to increase the profitability of beef and lamb farmers,” he says. “The same would apply to policy spending.”

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RURAL NEWS // FEBRUARY 16, 2016

BLNZ ELECTIONS 7

The Wright man for the job? BILL WRIGHT wants to see Beef + Lamb NZ become a strong advocate on behalf of red meat producers. Currently chair of BLNZ’s central South Island farmer council and a member of the council’s national executive, Wright will contest the vacant central South Island board seat. He and wife Shirley farm 380ha at Cannington, near Timaru, running sheep and bull beef with some dairy heifer grazing, and growing 70ha of lucerne for lamb finishing and maize for summer cattle grazing, and barley. Wright believes BLNZ should be focussed on innovation and capturing opportunities, to provide tools and services for farmers in a changing regulatory and legislation environment. He also wants to see the organisation continue advocating on behalf of farmers. “Market access is fundamental to the success of the NZ farmer and it is important that BLNZ (through the Meat Board) continues this key role,” Wright told Rural News. He concedes that long term sustainability is a key issue currently facing red meat producers, but believes other

Bill Wright wants to see B+L NZ continue to advocate on behalf of farmers.

areas are just as important. “Compliance – through the legislative and regulatory process –has placed a new burden on farmers. Ultimately, we want to reach the point where compliance, once achieved, becomes part of the business so that, one day, farm health and safety and nutrient management are normal practice, just like ASD forms and GST,” Wright adds. He also believes that branding of our products in the marketplace is still needed, so NZ producers can move into

the value chain and out of commodity products. “Branding will continue to evolve and make a difference to industry profitability. It will continue to benefit all farmers.” Wright understands the concerns about long term viability of the red meat sector. However, he believes in the industry’s future, despite the loss of many beef and lamb producers to the dairy industry in recent years. “There will always be change, but I

see a slowdown in [dairy] conversions, as environmental challenges and land class impose limits. “Farmers have always adapted to economic challenges and there will be change, if a sector is underperforming economically. This is one of the challenges ahead of sheep and beef farmers. We have a great product in lamb and beef and if we can market this product to the affluent we have an exciting future. “There will always be innovators who lead change; it’s exciting to be part of a sector that adapts and innovates.” Wright believes sheep farming in NZ will have a great future if profitability is returned to lamb through market value. “NZ farmers are the most efficient grass farmers in the world and produce the most ‘environmentally clean’ red meat product. There will always be change as opportunities or key food producers become more or less popular.” He also believes that BLNZ has role to play in ensuring better returns for meat producers. Wright reckons it should focus in four key areas: on-farm uptake of research and innovation;

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cross-sector investment to the mutual benefit of NZ’s pastoral farming in areas such as genetics, forages and on-farm tools; market access; and investing in people and encouraging the next generation into agriculture. Wright supports BLNZ putting money into schemes like the RMPP and PGP, but would like to see more measurable outcomes from such investments. Wright says BLNZ has a relatively small budget compared to some industry bodies. “There will always be debate over the budget spend and priority areas and farmers. It is important BLNZ’s budget process is board led and communicated across the sector with performance measures to justify spending in any budget areas so farmers benefit from all activities.” He also wants to see the organisation work with other sectors when approaching industry policy affected by legislation. “We need to work with Federated Farmers, DairyNZ, the arable sector and others to express a view. No one can work in isolation, especially on policy and compliance.”

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RURAL NEWS // FEBRUARY 16, 2016

8 NEWS

Fonterra review lacks clout – critic sudeshk@ruralnews.co.nz

FORMER FONTERRA director Greg Gent says the co-op’s discussion booklet on governance isn’t thought-provoking. It only sets out the current state of governance and representation in Fonterra, he says. “It’s a very conservative booklet,” Gent told Rural News. However, Gent is happy that the co-op is addressing farmer concerns on the need for a

smaller board. “It’s great that they are doing something about it; we will wait and see how things pan out.” Gent and another former director Colin Armer stunned Fonterra’s board and Shareholders Council in November by garnering 54% support among farmer shareholders for a smaller board. While the motion for a nine-member board fell short of the 75% required to force a constitutional change, it spurred the co-op board into coming

“It aligns well with the culture of a fitter and leaner board and we are confident it will attract the right skilled directors.” out with a discussion booklet last month. Titled ‘Let’s have the Conversation’, it outlines the board and Fonterra Shareholders Council views on governance. Gent says farmers want no more than a ninemember board. “It aligns well with

the culture of a fitter and leaner board and we are confident it will attract the right skilled directors.” Last week, the board and council held farmer meetings around the country to discuss the discussion booklet; next month the co-op will

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develop its proposal based on farmer feedback. In April, a draft proposal will be submitted to farmers; a second discussion booklet will be distributed followed by another round of farmer meetings. Farmers will vote on the final proposal in May. In the booklet, the governance and representation review committee notes that it has spent more than a year benchmarking the co-op’s governance and represen-

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tation against what was considered world-class at the time and made a series of recommendations to the board. “Their good work provides a strong platform from which to have a quality conversation about how best to evolve our structure, fine-tune our systems and adapt our skill set to meet the future demands of our cooperative,” it says. The committee is asking farmers to decide the right model to take Fonterra into the future. “How do we provide for the roles and responsibilities of our directors, the skills we want to have at the board table, the balance between farmer and independent directors and the processes for bringing them onto the board?” The committee notes that Fonterra has had the same governance and rep-

resentation structures since it was established nearly 15 years ago. “A lot has changed since then. Our revenue, assets and shareholders’ equity have all increased considerably. Our international presence has increased with milk pools in Europe and China. Trading Among Farmers provides farmers with financial flexibility and improved information on our co-operative’s strategy and performance. “Fonterra’s business strategy has also evolved, and was refreshed in 2013 with updated priorities. Its overall aim is to continue our cooperative’s growth in revenue, value achieved and returns to farmer shareholders. It is good business practice for governance and representation structures to be reviewed following a change in strategy.”

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RURAL NEWS // FEBRUARY 16, 2016

NEWS 9

Pressure on science has not worked PETER BURKE peterb@ruralnews.co.nz

A LEADING soil scientist says the exact science to meet the demand by the public and government to improve water quality hasn’t been in place. Massey University’s professor Mike Hedley says consequently the policymakers have made decisions without really knowing what the exact changes to farm management need to be to achieve this outcome. He says much of the science used has been in nutrient budgeting, which works well at paddock and farm scale but is poorly connected to water quality. Hedley is director of the Fertiliser and Lime Research Centre, Massey University, which last week held its annual workshop at the Manawatu campus. At least 250 scientists, farmers and rural professionals attended the three-day event. This year’s theme was nutrient and water management for sustainable farming. Hedley says it was designed to link with the Government’s latest science challenge ‘Our Land and Water’, which

will see $230 million spent by CRIs and universities over the next ten years to produce definitive science on how to best manage land and water in New Zealand. He hopes the collective science expertise will yield real answers for farmers struggling to try to change their farming systems and reduce the impact of diffuse discharge into water. Hedley says a suggestion that land should be viewed in terms of its suitability rather than its capability will signal a change in land use. In the past, science has mostly driven productivity, irrespective of the potential adverse effects that could have on the environment. “We need a bit of rethinking of the mitigation strategies of different land units and soil types,” he explains. “Some, but not all of it, can be done on individual properties, but it is going to be a tough one to crack and we have to discuss that with farming communities. “A scenario could involve neighbouring farmers collaborating and developing a share farming agreement; for example, where at a certain time of year they don’t

have intensive stock on certain soils on one of the farms when there is a high risk of leaching nitrogen or phosphorous into the water.” Hedley believes hard

questions will have to be asked about the way we farm in NZ. He says in the present environment of low returns for some agricultural products, farmers are looking more

closely at their operations. He suggests this may be a good time for them to look long-term and identify sustainable options for their farms.

FORAGE THINKING.

NOT EXACT A SENIOR adviser in land management from the Hawkes Bay Regional Council, Ian Millner, says the science on allocating nitrogen is not exact. He says the intent of the policy has exceeded the capability of the science and this is incredibly risky. Millner believes the problem relates to attenuation, which in the case of monitoring nitrogen leaching is around 50%. Another issue is the targets set in the national policy statement. He claims these are too short and there is a risk in some of the present plans that these targets won’t be reached. “You run the risk of an allocation programme becoming an objective in itself and it isn’t,” Millner explains. “Ecosystem health is, and the allocation programme is there to help us achieve that. If the allocation framework becomes an unnecessary distraction to farmers then what are we achieving here? We are probably making the job harder for ourselves.” Millner says marrying the science, policy and the practical is a difficult cocktail to mix. He believes we then risk kidding ourselves that we can be too exact, taking into account the variability and diversity in the landscape and the farm systems. “We can’t be exact, we just need to be more comfortable with uncertainty,” he says.

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10 NEWS

Fonterra keen to butter-up Iran FONTERRA IS looking of restrictions, will only continued growth in the at more business in Iran improve the outlook for market. following the recent us in Iran.â&#x20AC;? â&#x20AC;&#x153;Our customers in lifting of UN sanctions. With a population Iran are growing and The Ministry weâ&#x20AC;&#x2122;re seeing them of Foreign Affairs make significant confirmed it has investments in â&#x20AC;&#x153;We have skilled started the process infrastructure and people in the region of updating its capacity to meet regulations and demand,â&#x20AC;? says who understand the removing the UN Wickham. opportunities and sanctions, which it â&#x20AC;&#x153;We have potential of doing expects to complete skilled people in next month. the region who business in Iran, and Fonterra understand the who welcome more managing director opportunities and global ingredients, potential of doing normalised trade Kelvin Wickham says business in Iran, relations.â&#x20AC;? Iran is a valuable and who welcome trading partner and a more normalised key butter market for trade relations.â&#x20AC;? Fonterra. of nearly 80 million and THE UN Security â&#x20AC;&#x2DC;The removal of the long-standing customer Council recently UN sanctions, and our relationships in Iran, endorsed a deal to Governmentâ&#x20AC;&#x2122;s unwinding Fonterra expected end years of economic

Fonterraâ&#x20AC;&#x2122;s Kelvin Wickham.

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inspectors must also confirm that Iran is complying with the deal. While the Iranian and US presidents have been promoting the accord, hardliners in Tehran and Washington have spoken

out strongly against it. However, many European companies have already shown interest in re-establishing business in Iran, with Germany sending its economy minister Sigmar

Gabriel on the first top level government visit to Tehran in 13 years together with a delegation of leading business figures. @rural_news facebook.com/ruralnews

HORTICULTURAL ROLE MODEL THE CURATOR of the main gardens at Wellingtonâ&#x20AC;&#x2122;s Botanic Garden has been chosen to help inspire other New Zealanders to follow a horticultural career. The Primary ITO has appointed Karl Noldan as its new ambassador for 2016 â&#x20AC;&#x201C; to showcase the career pathways available within the burgeoning horticultural industry. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s really coming back in vogue,â&#x20AC;? Noldan says. â&#x20AC;&#x153;It has become quite a trend, especially for people later in their careers, to step away from high-stress jobs and want to work with plants instead.â&#x20AC;? Noldan himself has made several career U-turns. After many years of tertiary study, a year off doing labouring jobs

then led to â&#x20AC;&#x153;an epiphanyâ&#x20AC;? that he wanted to work in the fresh air. â&#x20AC;&#x153;My favourite subjects at school were graphic design and horticulture, but my family and teachers didnâ&#x20AC;&#x2122;t see a future for me in this area,â&#x20AC;? he explains. â&#x20AC;&#x153;I never knew the horticultural industry could take me where it has and I am keen to ensure that horticulture is regarded as a desirable industry. It is a career path that is extremely diverse and rewarding, filled with passionate people.â&#x20AC;? He placed third in the 2015 Young Horticulturalist of the Year Award and won the Primary ITO Career Development Award, earning a $3000 scholarship to assist with further study or attend a conference.

RURAL NEWS // FEBRUARY 16, 2016

NEWS 11 PLOUGHING AND FARMING IN HIS BLOOD PAUL HENSON is the fourth generation to farm on the Rongotea property and has been ploughing for 20 years “following in the footsteps of my dad”. He started with a conventional Kverneland plough and changed to a reversible plough five years ago. With a conventional plough he has achieved one win and two seconds at NZ finals and with a reversible he has had two wins at finals level.

Chairman of the NZ Ploughing organising committee, Paul Henson.

All set to go! TONY HOPKINSON

MANAWATU IS gearing up to showcase the country’s premier ploughmen and ploughwomen in April. The Manawatu Ploughing Match Association committee organising the 61st New Zealand Ploughing Championships reports its hard work and planning is coming to fruition. The NZ Ploughing Champs will be held at Penny Road Rongotea, near Palmerston North from April 16-17 on the property of Paul and Debbie Henson and will be open for the public to attend. “We have been planning for two years, organising trade displays, parking, a tractor pull competition, a display of vintage tractors and military vehicles and craft stalls,” the organising committee chairman Paul Henson told Rural News. There are four divisions: conventional, sponsored by Case IH; reversible, sponsored by Farmlands Fuel; vintage, sponsored by Mainland Minerals; and horse ploughing, sponsored by Rural News Group. All entrants will plough a section of stubble on the first day and the same size section of grass on the second day. Henson reports the barley crop now being grown will be harvested in early March to give an even cover of stubble, while the grass area is being grazed – again to give even cover. The soil is Milson silt loam with 175-200 mm black type soil over clay. Ten hectares on an adjacent farm will be available for a practice area for competitors to use for two days before the competition starts.

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Henson has represented NZ at six world finals, competing in Denmark, Switzerland, the Czech Republic and Lithuania. His best result was third at the world championships at Methven in 2010. He is also a fan of plastic mouldboards on his plough. “They give less resistance to various soils; they wear well and can be altered fractionally when competing.” As well as chairing the organising

committee, Paul and his wife Debbie this year converted their farm from sheep and beef to milking goats. “We started in August with 750 with the long term aim to milk 1200.” The goats are all housed and fed by “cut and carry”. The milk is held at 2.5oC and collected three times a week for trucking by insulated tanker to Hamilton for processing. There are five milking goat farms in Manawatu.

RURAL NEWS // FEBRUARY 16, 2016

12 NEWS

PGP aims for stronger wool returns tive John Brakenridge says they want, in 10 years, to see 40% of the strong wool bales sold at substantial premiums over long-term historic prices. This is one goal of the new Primary Growth Partnership (PGP) NZ Merino signed last week with the Ministry for Pri-

PAM TIPA pamelat@ruralnews.co.nz

A SIGNIFICANT lift in strong wool prices is the main aim of a newly announced industry and Government-backed research project. New Zealand Merino Company chief execu-

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mary Industries (MPI). “This is ambitious, but we believe it’s achievable,” Brakenridge says. The expected benefits from the new ‘Wool Unleashed’ (‘W3’) programme will create a strong foundation and path for the future growth of the wool sector, he says.

MPI has signed the seven-year $22.1 million contract with The New Zealand Merino Company. The industry and the Government will each contribute $11.05m under the PGP. Primary Industries Minister Nathan Guy says this wool could be adding an extra $335 million to NZ’s economy by 2025. Brakenridge says W3 will apply the New Zealand Merino Company’s experience in fine and mid-micron wool in establishing contracts with premium brand partners and developing new uses and markets for strong wool. “We’ve already had considerable success in these areas through the New Zealand Sheep Industry Transformation Project (NZSTX), our first PGP programme, which is focused on fine and midmicron wool and is due to wrap up in 2017. “NZSTX used product differentiation to generate better grower returns for fine wool fibre, meat and other products, and production science projects in genetics, animal health and forage production. “We’ll be looking to build on our success in NZSTX by turning our attention to the strong wool industry and driving increases in profitability across the value chain.” Brakenridge says the programme will be deliv-

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NZ Merino company chief executive John Brakenridge.

ered through four work streams. “The first, Social Licence to Operate, is to review and improve onfarm production practices to respond to high-end consumer preferences, such as traceability, low chemical use and quality standards. “The next work stream, Crossing the Chasm – Commodity to Branded Experience is to develop and implement a system that connects producers with markets. This will enable producers to respond to market preferences. “Another work stream, Blue Ocean – Market Driven New Uses and Users for Strong Wool, is to identify and develop new wool products for niche markets through a collaborative effort with growers, research provid-

ers and market partners. “The long-term sustainability of the strong wool sector may require a transition to non-traditional uses of wool, and market drivers identified by this work stream will guide our direction and new product development. “The final work stream is called Primary Sector Extension. This will involve collaborating across the primary sector to deliver cross-sector shared knowledge and practices.” Justine Gilliland, MPI director investment programmes, says the programme aims to secure a premium for strong wool, increase onshore processing and lift the returns of the strong wool sector overall. Guy says the programme will build on the considerable success to

date from the New Zealand Sheep Industry Transformation Project. “PGP programmes must be aspirational and transformational in nature. They must look beyond business as usual which The New Zealand Merino Company has demonstrated with its leadership in the Merino industry and helping to establish the Te Hono Movement – a collaboration of primary sector leaders. “Wool has lost its competitive edge as a fibre globally. We have the opportunity to make NZ strong wool and strong wool products relevant to select end users globally. “The W3 PGP programme will be a key contributor to this and will set the stage for a sustainable wool industry well into the future.”

RURAL NEWS // FEBRUARY 16, 2016

NEWS 13

Low payout erodes LIC’s profit THE LOW milk payout has dented farmer co-op LIC’s half-year results. For the six months ending November 30 2015, LIC’s total revenue was $145 million, 9% down on the same period last year. Net profit after tax (NPAT) was $15.9 million, down 46%. LIC had earlier signalled the New Zealand Stock Exchange about reduced earnings as a result of the lower forecast milk payout and reduced spending onfarm. It is now expected that the year-end result will be closer to a breakeven position, chairman Murray King says. “The season’s lower forecast milk price has created challenging financial situations for many dairy farmers, and as a co-op we are closely linked to that. “This result is a reflection of that, and as we continue our essential capital expenditure programme; it is very much in line with what we anticipated in October although we now expect the yearend result to be closer to a break-even position. “We continue to actively manage and minimise costs, without impacting our service to farmers. It’s times like this

when service becomes even more important, so we are hugely focussed on that. We have made significant reductions in our operating costs over the last six months and these will be sustained through the rest of the year.” LIC has continued to invest in its information systems, to enable improved service delivery as well as faster development of new innovations, to help farmers make real-time decisions and to add value onfarm. This is reflected in the lower NPAT, from increased depreciation costs. King says the artificial breeding (AB) season remained relatively strong, with the co-op supplying genetics to breed at least 75% of the national herd. “As expected we have seen farmers revise their budgets, but most were still willing to invest in solutions that will deliver a return for their businesses, and the herd improvement services we offer are a key to that. “We focussed on providing top quality and good value genetics, software and farm automation offerings.” LIC’s business, particularly AB, is highly seasonal. Half year results

EVERYBODY’S JOB DAIRYNZ CHIEF executive Tim Mackle says dairy farming’s reputation with the public matters. Mackle says the industry’s standing with New Zealanders and its markets impacts the ability to operate profitably and successfully. “We have to invest in our reputation as we would in any other asset that underpins our competitiveness,” he says. Mackle points to the media and public scrutiny of the bobby calf welfare video footage last year. “The continuing focus on our environmental and employment performance also shows that the spotlight is always on us.” DairyNZ invests in the industry’s reputation on farmers’ behalf but it doesn’t do it alone, he says. “Our strength lies in being able to amplify the voice of farmers and the industry, by bringing them together.” Mackle was proud of how dairy farmers stood up to be counted and heard, particularly on social media, over the bobby calf welfare issue. “Farmers showed how much they cared and NZ heard us and supported our industry and farmers. It was a huge effort. I pay tribute to everyone involved, but particularly Andrew Hoggard, the dairy chair for Federated Farmers, who did a great job with the media to balance and inform that debate.” – Sudesh Kissun

incorporate most of the AB revenues but not a similar proportion of total costs, and so are not indicative of the second half nor the full-year result. No dividend is declared at half year.

LIC continues to operate a strong balance sheet with total assets including cash, software, land and buildings and bull teams of $371 million. Cashflows from operations were a negative

$17 million reflecting extended terms given to farmers to assist their cashflows. This contrasts with cashflows from operations of $6.6 million in the first half of last year.

LIC chair Murray King.

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RURAL NEWS // FEBRUARY 16, 2016

14 NEWS

Backyard pigs pose biggest threat to industry – NZ Pork PAM TIPA pamelat@ruralnews.co.nz

BACKYARD PIGS on farms or properties whose operators don’t know the food regulations pose the biggest threat of food and mouth disease (FMD) entering the country, says NZPork chairman Ian Carter. Imported fresh pork poses one of the biggest risks, and imports have increased hugely since the Ministry for Primary Industry (MPI) won its case in the Supreme Court on importing raw pork from countries with had porcine reproductive and respiratory syndrome (PRRS). Previous to that mainly only cooked pig meat entered the country. Pork cannot come from a country with FMD. “But we all know that Europe trades across its borders extensively because they have a pretty open policy,” Carter told Rural News. “By the time it is identified that a country has FMD the meat might have

already come to New Zealand. As soon as you put it into the market place in fresh form there’s no mitigation whereas previously pork coming into the country needed to be processed into bacon or ham or pH treated which killed any viruses.” Food regulations say you can’t feed waste meat to pigs without processing or cooking but that is not policeable, says Carter. “Even the ministry recognises it is unmanageable because there are many backyard pigs in NZ,” he says. Somebody feeding infected imported waste raw NZ Pork chairman pork from a local restaurant Ian Carter. to backyard pigs poses one of the biggest risks of FMD entering NZ. 100 commercial farms in the country,” “If we didn’t have any issue with Carter says. “But [the problem is] is the backyard pigs then it is easy to manage 5000-odd other farms that have pigs on

CROOK PIG TUCKER IMPLICATED IN UK DISASTER THE FMD outbreak in the UK in 2001 involved by-products of meat sent to piggeries, says NZPork chairman Ian Carter. “Given that NZ has a lot of backyard pigs and a lot of waste food is fed to backyard pigs, meat coming into the country [carrying diseases we don’t now have] obviously increases the risk of infected product being fed to a pig. “The benefits to NZ Inc [of free trade] need to be offset by strong tightening of the biosecurity systems to preclude that risk. We all know

FMD would [greatly harm] the economy of NZ if it came in.” Consumers should also be aware that if product that comes in doesn’t have to meet NZ’s animal welfare standards, it won’t, he says. The EU doesn’t have the same level of animal welfare standards as NZ. “From an industry perspective we respect the need for free trade and we respect the options the consumer should be given to choose what they want to purchase,” says Carter. “But we don’t [insist on incoming]

country of origin labelling so the consumer can’t identify where the product has come from. “Most consumers in NZ think we produce all the meat we need; they don’t realise that 57% of pig meat being consumed in NZ is now imported.” All the industry can do is get their label out there – get it in the public’s eye that if they see ‘Pig Care Accredited, 100% New Zealand Pork’ they know it meets our high NZ welfare standards and it’s fresh, Carter says.

them that we don’t know about. “Our frustration as an industry is they have opened up the borders to allow this product in on the belief that those farms have read and adhere to those food regulations. “But I think there is a significant level of risk there. It is like providing us all with cars that can do 200km/h and telling us to do no more than 100km/h; if there were no police on the road how many of us would do it? “They have created a law but largely the people doing it don’t recognise the law. How many people know they are not meant to feed food scraps that haven’t been processed to pigs? “If those practices didn’t exist the risk would be significantly lower. But we all know they do exist so we have to put in mitigation measures so that we can control it, where it is manageable. “While that exists we feel the need

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to have a very tight biosecurity programme in place and what comes into this country needs to be tighter.” He says the border is the obvious place because we don’t have regulations on where a food generator can get rid of their waste. The restaurants don’t have to provide a certificate to say where meat waste goes, for instance to a certified processor. Carter says there are too many gaps in the system. A fresh piece of meat can come in carrying viruses and how meat is handled rides on food regulations that people largely don’t know exist. “So we’re asking, where is the benefit to NZ – compared to the risk – by letting this product in? Imported pig meat has been coming into NZ for years but what we’re saying fresh product changes the risk profile.” Carter says there has been a huge increase in fresh imported pig meat since two years ago when NZPork lost its fight over the process used by MPI for import health standards. A lot of pork is coming from Spain which has PRRS. “Twenty two countries are exporting pig meat to NZ now so the more meat that comes in the greater the risk [of our exposure] to FMD. “All the money we have save from having free trade agreements could be given away in one incursion of FMD and our trade borders would be shut because they wouldn’t allow us to export our primary products.” @rural_news facebook.com/ruralnews

RURAL NEWS // FEBRUARY 16, 2016

NEWS 15

Still waiting for the good news PETER BURKE peterb@ruralnews.co.nz

EXPECT THE volatility in the international dairy market to be around for some time. That’s the prediction from Primary Industries Minister Nathan Guy who says for the last six to eight months the GDT has been bouncing around a lot and it looks like that will continue for some time. Guy says the reason for the market volatility is not new and the extra 3% more milk coming out of Europe is adding to a world that has more milk than consumers want to buy. “But I am always hopeful it is going to stabilise and improve. The medium-long term outlook for dairying is good

and we know that the historical price over 15 years is $5.25. My view is that they will get through this season and I am always hopeful the outlook for next season will be more optimistic.” Guy says there is now a great deal of focus on what’s happening with the Chinese economy, which is going through structural turmoil. But he says it’s important to remember that NZ is not the only country affected. “I think about 124 countries call China their number-one market so it’s competitive and every industry has to continue to add value to their products.” Guy says he believes it will take another couple of years for the US to rebuild its beef herd and this is

good news for NZ farmers. “Most farmers who have sheep have some beef and that has cushioned the effect of lower lamb prices. Wool has started the year very pos-

itively so there are good signals from returns right now. “Overall, the primary sector is looking good in certain sectors and volatile in others,” Guy adds.

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RURAL NEWS // FEBRUARY 16, 2016

16 NEWS

Backpacker tax looms in Australia AUSTRALIAN FARMERS are worried that a proposed ‘backpacker tax’ will cause labour shortages on farms. The new tax comes into effect on July 1; all

working holiday makers will be taxed 32.5% on income up to A$80,000. This is a huge change from the current system where people on working holidays

in Australia can be treated as local residents for tax purposes. If casual workers are there for more than six months they pay no tax on income up

to about A$20,000, then they pay a tax rate of 19% for income up to A$37,000 and receive benefits through the low-income tax offset.

Backpackers working on Australian farms will have to pay more tax.

Each year backpackers contribute A$3.5 billion to the Australian economy and 40,000 find jobs on Australian farms. The National Farmers Federation is leading an online campaign, pleading with the Federal Government not to proceed with the new tax. Chair of the NFF workforce productivity committee, Charlie Armstrong, says backpackers are critical to ensuring an adequate workforce for primary producers, particularly at busy times of the year. “The agriculture industry relies on backpackers to fill severe labour shortages which are often seasonal and temporary, for example, when crops are being harvested or milk production is at its peak,” says Armstrong. “Taxing backpackers at a rate of 32.5% will make work in Australian agriculture a highly unprofitable proposition. “Furthermore, it will lead to reduced agricultural productivity and will strip regional communities and businesses of much needed tourism spending. “Already we are seeing signs that the proposed tax rate of 32.5% is scaring

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working holidaymakers away from Australia. In nations like Canada and New Zealand they are just as likely to be able to find farm work that incurs much less tax.” Armstrong warns that any further decline will further throttle the current trend of 12% fewer backpacker arrivals to Australia each year. Announcing the backpacker tax in his budget last year, former Treasurer Joe Hockey said the 32.5% tax rate will raise A$540 million. The rate of 19% proposed by the NFF would generate only A$315.7 million. But Armstrong says any perceived losses incurred in containing the rate at 19% would be dwarfed by the serious economic impacts of reduced backpacker tourism and associated agricultural losses a 32.5% rate would bring. “What is the point of increasing revenue through the implementation of this tax only to strip back the contribution of agriculture, tourism and regional spending to the economy?” he asked. @rural_news facebook.com/ruralnews

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earnings up to A$18,200, pay 19% tax on income above that up to A$37,000. On income between AU$37,001 and AU$80,000, they incur a 32.5% tax charge. From July 1, all foreign casual workers will pay 32.5% tax on income up to A$80,000 The NFF agrees backpackers, who make an average $15,000 during their stay in Australia, should pay tax. However, it considers an effective tax PWS1612

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RURAL NEWS // FEBRUARY 16, 2016

NEWS 17

‘Vanity project’ transforms North Canterbury station Hidden behind a non-descript moss covered farm letterbox is New Zealand’s most exciting motorsport project since John Britten conceived the ground breaking V1000 motorcycle in the 1980s. Richard Cosgrove reports… IF YOU didn’t know what to look for you would miss it – thinking it’s just a farm. However, as you drive the Inland Kaikoura Road from the tiny North Canterbury town of Waiau, there’s a secret only a few locals have known about till recently. Australian IT billionaire David Dicker has been quietly beavering away from his air traffic control room-like office constructing an impressive facility on what was once Wandale Downs. Rural News was lucky to get an extensive guided tour of the 587ha station that has been converted to a stateof-the-art factory and private supercar testing track. Dicker bought the farm ten years ago with the goal of using it to produce his F Zero track car. He founded his computing company in 1978 and has the distribution rights for several top computer hardware and software manufacturers such as Samsung, HP, Lenovo, Citrix and many more: it supplies exclusively to 3000 resellers. It’s likely if you are using a PC or cloud computing in Australia or New Zealand that Dicker Data has had a part to play somewhere in the chain. He says his foray into motorsport grew out of his frustration with yacht racing: “It’s much better than yachting; there’s so much sorting things out before you can go yachting, whereas in motorsport you can get in your car and go.” Dicker has long pursued the goal of building his own car and in the quiet hills around Waiau he is achieving it. Choosing NZ over the heavily restrictive environment in his home country Australia, Dicker has been spending about four-five months a year in Waiau

Without any fuss Australian IT billionaire David Dicker has built his own supercar testing track and factory in North Canterbury.

supervising the project. The track is the most obvious sign of his endeavours; currently two of the three stages are completed and it is almost three kilometres long. It has cost him nearly $2 million to get this done, but in typical Dicker fashion he has achieved it in a sensible cost-effective way. After receiving quotes of $1 million to complete the stage one and several million more for stage two, Dicker did some research, bought the equipment and hired some locals with experience. He had them build the track; the difference in cost: stage one cost him $100,000 and stage two $755,000. Having the staff with the skills has allowed Dicker to redeploy them on other tasks while waiting for consent approval on stage three. They are put-

ting in the roads to the guesthouse and home he is building on the other side of the river from the track. Stage three of the track will include a one kilometre straight and a 6 G corner that will enable them to fully test the F Zero car to its limits. The track is a challenge for any driver, rising and falling over river flats, with hairpin bends, blind corners and steep inclines. But it is smooth: the benefit of having your own staff build is that it is probably the smoothest piece of roadway in NZ. Dicker aims to do at least 20 laps a day around the track in some of his top-end sportscars to hone his skills for when the F Zero is ready for testing. He even has a GP2 car to use as a benchmark for the F Zero car. Whilst the track is impressive, and

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there’s many a petrolhead dreaming of owning their own track, it is in three big buildings onsite where the real magic of Wandale Downs is happening. Inside these buildings is a full workshop the likes of which NZ has never seen before. There is a Kuka industrial robot, six foot tall 3D printers, water jet cutters, CNC milling lathes, a five metre long carbon fibre autoclave with its own nitrogen supply outside as tall as the building, a chrome plating plant and a suite of computer servers enabling the engineers to tweak design issues. Whilst happy to let Rural News see the design drawings of his F Zero car and discuss its specifications, no photos were allowed of the plans; Dicker is still finalising aspects of its design.

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Describing it as a Formula One car with fenders, the F Zero track car will be a rocket-ship, powered by a 5L Judd engine. Weighing no more than 600kg, developing 800hp (brake) and with only 5mm of ground clearance under skirts that generate huge down force, this car will be capable of at least 300km/h. Being a track car and not a race car means Dicker can use technology not available to competition cars. “The Formula One guys are so heavily limited these days,” he says. But track cars aren’t regulated by anyone so there is more freedom in the design. The car is expected to be priced at about $NZ1.2 million, and Dicker aims to produce 30-40 cars a year; he needs to sell 10 cars a year for the project to be financially viable. With the target market guys like himself, Dicker will do most of the testing. Purchasers will not just get a car, they will get a full package: matching carbon fibre trailer, all spares and tools to run the car, and a full luxury experience when they come to see the car being made – when his onsite luxury guesthouse is completed. Dicker describes the venture as a ‘vanity project’. “I’ve wanted to build my own car since I was 20,” he says. “But it’s really expensive. You need to make your money first. But now I can do it.” And that’s the real difference about this project; since it’s not reliant on investors it has already achieved so much under the radar. Dicker has booked the Abu Dhabi Formula One track for just after the race in November this year for testing. So he has a strict timeline, but with the carbon fibre monocoque arriving from his fabricators in China in December he is well underway to meeting that goal.

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RURAL NEWS // FEBRUARY 16, 2016

18 MARKETS & TRENDS MARKET SNAPSHOT Me at

BEEF MARKET TRENDS

No rth Is lan d

S o u th Is lan d

C h an g e c /kg

L as t We e k

C h an g e c /kg

L as t We e k

L amb - PM 16.0kg

-1 5

4 .8 3

-1 5

4 .6 8

S te e r - P2 300kg

n/c

5 .2 5

n/c

5 .0 0

B u ll - M2 300kg

n/c

5 .2 5

n/c

4 .5 5

Ve n is o n - AP 60kg

n/c

7 .2 0

n/c

7 .2 0

c /kgCWT

LAMB MARKET TRENDS

BEEF PRICES

LAMB PRICES

c/kgCWT

Change

Last Week

2 Wks A go

Last Week

2 Wks A go

Last Year

n/c

5.25

5.10

- 15

4.81

4.96

5.06

n/c

5.25

5.20

P M - 16.0kg

- 15

4.83

4.98

5.08

P 2 Co w - 230kg

n/c

4.10

P X - 19.0kg

- 15

4.85

5.00

5.10

M Co w - 200kg

n/c

4.00

4.10

P H - 22.0kg

- 15

4.86

5.01

5.11

Lo cal Trade - 230kg

5.30

5.25

4.90

M X1 - 21kg

n/c

2.40

3.10

YM - 13.5kg

P 2 Steer - 300kg

M utto n

n/c

5.00

4.80

- 15

4.68

4.83

4.86

M 2 B ull - 300kg

n/c

4.55

4.80

P M - 16.0kg

- 15

4.68

4.83

4.88

P 2 Co w - 230kg

n/c

3.60

3.70

P X - 19.0kg

- 15

4.68

4.83

4.90

M Co w - 200kg

n/c

3.50

3.70

P H - 22.0kg

- 15

4.68

4.83

4.91

Lo cal Trade - 230kg

n/c

5.20

4.85

n/c

2.08

2.65

P 2 Steer - 300kg

$7.0

Change

c/kgCWT NI Lamb YM - 13.5kg

M 2 B ull - 300kg

No rth Island 16.0kg M Lamb Price

Last Year

SI Lamb

M utto n

M X1- 21kg

Slaughter

Slaughter $6.0

N o rth Island Weekly Cattle Kill

60k

N o rth Island Weekly Lamb Kill

400k

$5.0

300k 5yr Ave

$4.0 Nov

Dec

Last Year

Jan

Feb

This Year

Mar

Apr

So uth Island 16.0kg M Lamb Price

40k

200k 5yr Ave

20k

5yr Ave Last Year This Year

k Nov

$6.5

Dec

Jan

Feb

Mar

Apr

100k

Last Year This Year

k Nov

Dec

Jan

Feb

Mar

Apr

S o uth Island Weekly Lamb Kill $5.5

S o uth Island Weekly Cattle Kill

30k

400k 300k

$4.5 5yr Ave

$3.5

Nov

Dec

Last Year

Jan

This Year

Feb

Mar

Apr

200k

20k

100k

10k

5yr Ave

k Nov

Last Year

No rth Island 300kg Bull Price

k Nov

$6.3 $5.8

Dec

Jan

Feb

Mar

Apr

$4.8

Change

5yr Ave

$4.3

Nov

Dec

Jan

Feb

Mar

Last Week

2 Wks A go

Last Year

5yr A ve

Last Year

95CL US$ /lb

2.00

1.94

2.53

2.18

This Year

NZ$ /kg

n/c

6.59

7.65

6.03

Apr

D e m and Indicator - US 95CL Beef

$3.20

S o uth Island 300kg Steer Price $6.0

$4.5

5yr Ave Last Year

$4.0 Feb

Mar

Apr

No rth Island 60kg S tag Price

$8.5

5yr Ave Last Year

$8.0

This Year

Dec

Jan

Feb

Mar

Apr

Procurement Indicator Change

2Wks A go

3 Wks A go

Last Year

% Returned NI

+1%

79.7%

78.9%

69.25%

75.1%

% Returned SI

69.0%

64.0%

70.6%

Last Year

UK Leg £/lb

n/c

1.60

1.95

1.96

NZ$ /kg

- 10

8.10

8.20

8.73

8.60

5yr A ve

P r o curement Indicator - North I.

D e m and Indicator - UK Leg Price

Last Year

This Year

Nov

Dec

Jan

Feb

Mar

Apr

Procurement Indicator Change

2Wks A go

3 Wks A go

Last Year

5yr A ve

% Returned NI

+2 %

63.0%

61.0%

60.7%

67.9%

% Returned SI

+1%

59.9%

59.1%

57.8%

59.2%

P r o curement Indicator - North I. 80%

Last Year This Year

60% Last Year

80%

$6.5

5yr A ve

£2.50

70%

90%

$7.0

This Year

50% Nov

Dec

Jan

Feb

Mar

Apr

70% Nov

Dec

Jan

Feb

Mar

So uth Island 60kg Stag Price

Apr

60% Nov

Dec

Jan

Feb

Mar

Apr

5yr Ave

$8.5

Last Year This Year

$8.0

90%

Last Year

This Year

70%

$7.0

P r o curement Indicator - South I. 75%

65%

P r o curement Indicator - South I.

80%

$7.5

Last Year

55%

45% Nov

This Year

Dec

Jan

Feb

Mar

Apr

60%

$6.5 $6.0

2 Wks A go

Last Year

$1.70 Nov

This Year

$7.5

$6.0

Last Week

This Year

Jan

Apr

Change

£1.00

$2.20

$5.0

Dec

Mar

£1.50

$2.70

Nov

Feb

£2.00

$5.5

$3.5

Jan

Export Market Demand

$5.3

$3.8

Dec

This Year

Nov

Dec

Jan

Feb

Mar

Apr

50% Nov

Venison Prices Dec

Jan

Feb

Mar

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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Apr

Change

Last Week

2 Wks A go

Last Year

5yr A ve

NI Stag - 60kg

n/c

7.20

6.35

6.73

SI Stag - 60kg

n/c

7.20

6.25

6.80

RURAL NEWS // FEBRUARY 16, 2016

MARKETS & TRENDS 19 BEEF: The cattle slaughter in NZ over the past fortnight has remained fairly low. A lack of numbers in the South Island, and plenty of grass across the country have meant farmers have been content with holding onto their stock for the time being. The improving US market has seen North Island schedules improve, with South Island slaughter prices holding steady. Store markets are still relatively slow in both islands, which have helped to keep prices up. A lack of store cattle numbers throughout the South Island are keeping trading limited, due to many killing earlier than usual in the season, and buyers from the North Island purchasing more South Island cattle during 2015. North Island trading has been a little busier, with the good prices enticing more store stock to the market.

INTERNATIONAL BEEF: Further positive signs have emerged from the US beef market after it went through a rough patch in the later months of 2015. Demand from the US has been gradually improving over the past fortnight, with importers looking to buy more beef on the basis of a tightening NZ kill, and an already weak Australian beef slaughter. Prices have risen for a fourth consecutive week, indicating that some of the nervousness from the market may be slowly dissipating. Imported 90CL cow has

PRICE WATCH been most recently trading at US$1.86/lb, while imported 95CL bull hit the US$2.00/lb barrier for the first time since early November 2015. China, NZ s second largest beef market, is still relatively soft when compared with 12 months ago. This is partially due an influx of cheap beef from South America, which has been coming in thick and fast since China lifted sanctions against Brazil.

SHEEP: Production for the chilled Easter trade has all but concluded, bringing with it falling schedules. With the kill already slowing across the country, there had been some hope that processors would compete against each other to secure numbers for the coming weeks. This would have provided some buffer against the removal of the chilled production premiums. However some processors have indicated they will look to cut capacity as an alternative, as the margins on lamb earlier in the season were too tight to justify further price competition now. Mutton schedules should hold steady, as plants look to use mutton to fill the gaps from the lower lamb kill.

INTERNATIONAL

SHEEP:

The state of international lamb and mutton markets did not improve through January as had been hoped. Forequarters are the main problem cut

WOOL PRICE WATCH

Overseas Wool Price Indicators

Change

04-Feb

28-Jan

Last Year

Coarse Xbred

-10

5.67

5.77

4.78

Coarse Xbred

Fine Xbred

-27

5.94

6.21

5.26

Fine Xbred

Lamb

-24

7.24

7.48

6.25

Lamb

Indicators in NZ$

Mid Micron

CXI

28-Jan

Last Year

3.77

3.72

3.71

-5

3.95

4.00

4.12

n/c

4.82

4.89

Wool Indicator in US$

550

FXI

04-Feb

Change

Mid Micron

Wool Indicator Trends

850

Indicators in US$/kg

750

450

650 350

550 450

Feb

Apr

Jun

Aug

Oct

Dec

250

Feb

Apr

Jun

Aug

FXI

Oct

Dec

Feb

Coarse Xbred Indictor in US$

Coarse Xbred Indicator

700

CXI

Feb

500 450

600

400

500

350 Last Year This Year

400 300 Nov

Dec

Jan

Feb

Mar

Last Year This Year

300 250

Apr

for exporters, as the two main export destinations for this cut, China and the Middle East, remain two of the weaker overseas markets. Buyers in China are taking a much more cautious approach to this season, as many got hurt due to over-buying in 2015, and the subsequent fall in prices since. Importers from the Middle East have not been buying after

Oct

Nov

Dec

Jan

Feb

Mar

Apr

similar price falls were seen in that market. Rather than cutting their losses and refilling their stocks with cheaper product, they are instead staying out of the market in the hope that prices improve in the mean time. The UK frozen leg market has held low so far this year.

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RURAL NEWS // FEBRUARY 16, 2016

20 AGRIBUSINESS

NZ sheep milking prowess on display the background – highend goods such as icecreams, yoghurts and the like. The big challenge for them is to connect that to the health benefits and NZ story and the environment in which these sheep are kept and the way lambs are reared.” While the larger operators have expanded, so have some smaller ones including Kingsmead Artesian Cheese, run by Miles and Janet King, near Masterton. They have made cheese – from cow and sheep milk – on their 12ha farm since 1988.

PETER BURKE peterb@ruralnews.co.nz

A CONFERENCE on sheep milking to be held at Massey University next month is already attracting participants from around the world to hear about what New Zealand is doing in this field. Associate professor Craig Pritchard, from Massey’s School of Management, organised a similar two-day conference last year and says its success is drawing registrations from far and wide. “We have Australians coming, and we’ve a keynote speaker Haim Leibovich from Israel, which has the most intensive sheep dairying farming operation on the planet,” Pritchard told Rural News. “We’re also getting attention from Europe and North America… and that is exciting. “What I’d like to see over the next few years is the industry in NZ starting to build relationships with some key European and North

Massey University’s Craig Pritchard believes NZ’s sheep milking potential is great.

American sheep dairy players so we’re regarded as an important part of the world sheep dairy industry.” Pritchard says last year’s conference was highly successful in putting sheep dairy operators in NZ in touch with some great overseas contacts, contributing to the growth of two sheep dairy operations in the central North Island. He cites the hiring of John Ryrie, a notable sheep dairy expert, by Spring Sheep Dairy, a Landcorp

joint venture with SLC, to establish their new sheep milking operation near Taupo. Pritchard also notes that the Waituhi Kuratau Trust, near Turangi, which has milked sheep since about 2004, now has a partnership with a Shanghai company and has formed Maui Milk, producing and exporting powdered sheep milk. Prior to this venture the trust had been selling its cheese and yoghurt on the local market. But last year’s conference sparked

the involvement of the Chinese investor. “2015 was an enormous year for sheep dairying in NZ. Spring Sheep Dairy got going and has the best sheep dairy manager on the planet working for them,” Pritchard says. “The big challenge for them now is to connect with innovation and develop relationships with key customers offshore. “While SSD is keeping that to itself at the moment, I understand they have big plans in

They are regarded at as the kaumatua of the sheep dairy industry in NZ. Pritchard says they have strong brands which they sell at their shop, on-line and in shops NZ-wide. “Miles in the last six months has employed an experienced Italian soft cheese maker and over the next year he will have four new suppliers of sheep milk. I can see them potentially looking at export in the next couple of years given the quantities coming on for them and that is great news for the small

producers.” He says this shows how you can cluster together with an expert cheese maker and produce excellent cheese. He concedes it is early days for the sheep milking industry in NZ and there are big challenges. Many operators are trying new ideas with a big focus on developing high-value export markets. At the conference in March scientists from AgResearch will report on a five year study of the composition of sheep milk.

Internationally renowned sheep dairy expert John Ryie is now helping establish Landcorp’s sheep milking venture near Taupo.

Anaru Patel,

Block Manager. Decision maker. Local inspiration.

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RURAL NEWS // FEBRUARY 16, 2016

AGRIBUSINESS 21

Rivals cozy-up PAM TIPA pamelat@ruralnews.co.nz

FORMER RIVALS Zespri and T&G have signed a memorandum of understanding (MOU) to work together – with a one million tray kiwifruit initiative into four Southeast Asian countries the first step. The two companies a few years ago were locked in a long running legal feud, dropped in 2013 after T&G was taken over by German company BayWa the year before. Zespri chairman Peter McBride and T&G global chair professor Klaus Josef Lutz signed the MOU this month at the fruit industry trade show Fruit Logistica in Berlin. The first step in the new collaboration can be seen in regulatory approval of a new initiative: the two companies will work together to sell about 1 million trays of Zespri

Kiwifruit in Thailand, Cambodia, Myanmar and Laos in the 2016 season. “This marketing partnership will accelerate the growth in kiwifruit sales across a region with huge potential,” says McBride. “T&G will develop sales programmes for Zespri Green, Zespri SunGold and T&G products in these four Southeast Asian countries, leveraging the strength of the Zespri brand and marketing strategy with T&G’s existing business expertise, distribution channels and strong product offering.” Lutz says T&G will open an office in Bangkok to represent and support the two companies’ sales programmes. The new team will work together to grow sales of Zespri and T&G branded products like Jazz and Envy apples in the region; a regional manager is

appointed and key account managers appointments will follow. This collaboration is the first of its kind approved by regulator Kiwifruit NZ (KNZ) and the experience will inform future efforts. Under the Kiwifruit Regulations, Zespri is the primary exporter of NZ-grown kiwifruit beyond Australia. However, other exporters can apply to KNZ with proposals to export NZgrown kiwifruit in collaboration with Zespri. McBride says the recent Kiwifruit Industry Strategy Project (KISP) consultation with growers heralded a change in direction for Zespri and collaborative marketing. “This has opened the way for Zespri to partner with companies which can offer strong coverage in new or developing regions for Zespri and increase returns to our growers.”

Zespri chairman Peter McBride (left) and T&G global chair professor Klaus Josef sign the MOU at Berlin Fruit Logistica.

Fast broadband integral to success PENNY HARTHILL

IF FARMERS want to improve their business and improve the marketing of their products, the internet is integral to these goals, says Wireless Nation’s technical director, Tom Linn. “In practical terms, for rural businesses such as farms, this means better connection to services like livestock improvement records and markets overseas, recording and analysis of onfarm data, and saving time by buying online.” All this helps rural businesses make better, more informed decisions, he says. “For families, more reliable and consistent broadband speeds will provide faster upload speeds for photographs and images, faster download speeds for music and movies, and better, clearer video conversations with friends and family.” Take PurePods, a tourism business offering ‘guest houses’ made out of glass in rural Canterbury. Being remote, internet connectivity was a problem. Although PurePods wanted to keep true to the ‘living off the grid’ mentality, it needed an internet connection to

relay information back to its office at Middleton, Christchurch. With a dodgy cellphone signal then the only form of communication, PurePods needed more security and reliability. The firm’s founder Paul Sapsford contacted Wireless Nation and found its satellite broadband was a good fit. “Our PurePods run on solar power and considering we are not situated near them it’s important that we have a method of relaying information from the PurePods back to our operations centre. This information includes reordering stock, remotely turning off heating or lights if the rooms are unoccupied, and of course in emergencies,” says Sapsford. If you’re close to an RBI tower, chances are you’ll be able to self-install a connection from Wireless Nation. They’re currently running a deal where you can get 80GB for the price of 50GB. As part of the government’s Rural Broadband Initiative (RBI), Chorus is installing about 1200 fibre-fed broadband cabinets in rural regions. @rural_news facebook.com/ruralnews

Knowledge grows everything In your career, you have to move forward to stay ahead of the mob. Just ask Anaru Patel of Taumarunui. He started as a casual worker before progressing from shepherd general to head shepherd then to block manager thanks to Primary ITO training. He has set his sights on becoming General Manager, which is why he’s still studying and up-skilling with us. We are the champions of primary industry training, oﬀering smart, accessible programmes to help grow quiet achievers like Anaru, and future champions like you. Check out www.primaryito.ac.nz for our range of nationally recognised short courses, certificate and diploma programmes and online learning. Prepare for an inspirational future.

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RURAL NEWS // FEBRUARY 16, 2016

22 OPINION EDITORIAL

EDNA

Lacklustre conversation FONTERRA’S NEW discussion booklet on revamping its governance is titled ‘Let’s have the Conversation’. But the lacklustre 20-page document will struggle to stimulate farmers, already in favour of a radical change in the board size. After being stunned in November by 54% shareholder support for a leaner board, the coop’s board and Shareholders Council agreed to speed up the process. Farmer shareholders were told that several years of preparatory work had been done by a joint board/council review committee locally and overseas. Sadly, for farmers the discussion document doesn’t reflect this, it outlines what most farmers already know. Last week, the board and council held farmer meetings around the country to discuss the discussion booklet; next month the co-op will develop its proposal based on farmer feedback. In April, a draft proposal will be submitted to farmers; a second discussion booklet will be distributed, followed by another round of farmer meetings. Farmers will vote on the final proposal in May. A proposal floated by former directors Colin Armer and Greg Gent called for a nine-member board, appointed by farmers; this gained 54% support at the last annual meeting but fell short of the 75% support required to force a constitutional change. The dilemma facing Fonterra’s board is that most farmers are already in favour of a smaller board; they voted for the Armer/Gent proposal despite, defying a recommendation from the board and council. It’s clear that farmers have made up their mind; a fitter and leaner board is the way to go. One issue up in the air on board representation is the future of independent directors; currently Fonterra has nine elected and four independent directors. The independents wield lots of influence and can end up holding the balance of power; when Armer lost the chairmanship to incumbent John Wilson by one vote in 2012, the independents are believed to have backed Wilson. The Armer/Gent proposal seeks only farmerelected directors on the board. In its discussion booklet, Fonterra argues for having qualified independent directors. Farmers will be mulling over their options in the coming months; they have already defied the board and Shareholders Council once on the issue; they won’t hesitate to do that again.

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

“Phew, that was close – if they’d stayed any longer you’d have had to dig another long drop!”

THE HOUND

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

Judas or realist?

Tough job

Boo-hoo

Say what?

THE HOUND notes that the two farmers standing for election in the vacant South Island director seat for Beef + Lamb NZ were both former leading lights in MIAG – the lobby group formed in the early 2000s demanding a restructure of the meat industry. John Gregan was the former chair of MIAG, and Bill Wright was a key member of the lobby as well. However, since MIAG went the way of the CD player, Gregan quit sheep and beef farming and went dairying and is now even on Fonterra’s shareholder council. Meanwhile, Wright has stayed in sheep and beef farming and been a member of BLNZ’s central South Island council. Your old mate will be interested to see if Gregan’s conversion to dairying is viewed as a ‘Judas’ act by red meat producers; or if sheep and beef farmers no longer view dairy farming as the enemy.

A MATE of the Hound recently came across a Fonterra advert for an employee communications advisor – fair dinkum! The Hound’s mate reckons it would be one of the toughest roles round, given that 1000 or so co-op employees are in for the chop as part of Fonterra’s current restructure. The job ad euphemistically says, “Fonterra is going through a period of significant change and you will be responsible for implementing employee communications strategies across the co-op…”. In other words, the job is to tell the lucky 1000 or so people nominated by the dairy giant’s big cheeses – in the nicest possible way – that they are in for the big DCM (don’t come Monday). Good luck with that!

YOUR CANINE crusader hears that the unionists at Lincoln University are a bit upset, claiming they were duped into being frank with a report writer who, it turns out, is to be their boss. According to reports, during early January at least 20 staff were asked to be interviewed oneon-one by a “visiting academic” preparing a report for the university’s council. It turns out that the man was Professor Robin Pollard, who has been appointed vicechancellor, starting in mid-March. The Tertiary Education Union (TEU) says it is considering legal options. The Hound would love to be a fly on the wall at the first staff meeting when the new vice-chancellor meets with his new ‘free and frank’ staff members.

THE HOUND was intrigued by the motivation of the protesters who turned up in Auckland earlier this month to decry the signing of the TPP. However, as your old mate suspected, not many actually knew what the TPP is and how it will affect them. Here are a couple of answers given by protesters when asked why they were protesting: “The cuzzies say the TPP will take the fishing and the benefits away”; “It means the construction of a world government”, “F@#k the TPP; I want to go fishing” and “Cos John Keys (sic) is a homo!” Wow, with cogent arguments like these you can understand their concerns – not!

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RURAL NEWS // FEBRUARY 16, 2016

OPINION 23

TPP a huge shift for agriculture ON FEBRUARY 4, at the TPP signing, the earth moved. Imperceptibly to most, frustratingly for some, but the tectonic plates holding together world trade shifted, as 12 economies embarked together on a new economic enterprise. This may be cold comfort to New Zealand farmers coping with drought and falling prices, but over time TPP will advance their interests, with some seeing the benefits earlier than others. It often seems nothing ever changes for trade in agriculture. Even as tariffs are reduced, new nontariff barriers seem to put in place. But change does occur: think of the impact of the GATT Uruguay Round, which put a cap on subsidies and paved the way for increasing commodity prices. The impact may not be felt immediately but signals are sent, markets take note and investment and production adjust. This is essentially what will happen with TPP. The signing in Auckland may have been largely symbolic â&#x20AC;&#x201C; the deal was concluded last October and a draft text released the following month â&#x20AC;&#x201C; but already other countries have indicated they too would like to join â&#x20AC;&#x201C; South Korea, Thailand, Philippines, Taiwan and Colombia, even Indonesia. This is not going to happen overnight either as TPP itself could take up to two years to get ratified. But for now the writing is on the wall and a new framework of rules for trade and investment has been established. Meantime, thereâ&#x20AC;&#x2122;s plenty of more tangible benefit for NZ farmers â&#x20AC;&#x201C; even for dairy which, with justification, feels left out of the deal. All NZâ&#x20AC;&#x2122;s major agricultural export sectors including dairy are covered by TPP, which will result in full implementation of tariff savings of $202 million per annum out of total tariff savings for all sectors of $259 million. Thatâ&#x20AC;&#x2122;s not new business; just tariffs saved which make NZ products more competitive in foreign markets.

Beef farmers may feel the greatest benefit. The beef tariff in the critical Japanese market will drop from 38.5% to 9% over 15 years ensuring that NZ is not disadvantaged against Australia which earlier negotiated an FTA with Japan. The tariff saving amounts to $18 million

Stephen Jacobi

immediately and $48 million once the lower tariff level is reached. In the US the small in-quota tariff will be eliminated on entry into force resulting in savings of $10.8 million. Tariffs on sheepmeat in all TPP economies will be free after eight years and for wool after 10 years. The deer industry gets little immediate benefit as tariffs are already free, but it will get an opportunity to address issues when others like Korea join. Across all sectors TPP provides mechanisms to address non-tariff barriers and promote regulatory coherence which will result in less cost and more secure trade. Tariff reductions are also achieved for horticultural products including kiwifruit, apples and other fruit and vegetables; the savings are worth around $26 million. Wine and forest products also achieve important gains. Has dairy been left out of the TPP party? To a large extent yes; the liberalisation achieved is less than other sectors and some important barriers will remain even after full implementation. That greatly disappoints all those involved in the negotiating process. It also reflects badly on successive announcements by TPP ministers that this would be a high quality, ambitious and comprehensive deal. In the end, under pressure from their own highly protected industries, the US and Japan were unwilling to open their markets.

This has resulted in a lopsided agreement most certainly not in the interests of competitive US dairy exporters. But there is another side to this story: the dairy industry gains useful concessions giving limited extra access to markets like the US, Japan, Canada

and Mexico. Peru unfortunately remains closed. The value of tariff reductions for dairy are valued at $102 million, still more than any other sector. Importantly too, a process of agricultural reform is underway in Japan, which could see significant change.

Even if the glass of milk in TPP is less than half full, the wider implications of the agreement apply. In 30 years, when the last of the miniscule dairy tariff reductions takes effect, the world will look very different. It is hard to believe TPP will not have evolved fur-

ther and the international trading system with it. NZ needs to use all opportunities open to it, through implementation and future expansion, to address unfinished TPP business. Meantime, back home the parliamentary process for ratification is underway. Farmersâ&#x20AC;&#x2122;

voices need to be heard in the debate to ensure prompt ratification so agriculture can benefit from the global shifts in trade policy that TPP encourages. Ă&#x20AC; 4UFQIFO +BDPCJ JT FYFDVUJWF EJSFDUPS PG UIF /FX ;FBMBOE *OUFSOBUJPOBM #VTJOFTT 'PSVN

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Protect your seed, protect your future. Talk to your local seed supplier about Superstrike Clover or visit seedtreatment.co.nz

PWS 1618

STEPHEN JACOBI

RURAL NEWS // FEBRUARY 16, 2016

24 OPINION

Is Fonterraâ&#x20AC;&#x2122;s strategy outdated? MORE DEVELOPMENTS in dairy processing operations, this time in Northland, are yet another nail in what must not be allowed to become Fonterraâ&#x20AC;&#x2122;s coffin.

The dairy farmers in the region will, potentially, have a choice of which company to supply. The dilemma for them is whether they continue to support their

co-operative or move to a new company promising good returns. The promise is based on the demand in China for UHT milk and ice cream: China is now

believed to be the biggest ice cream market globally. Chinese spending on ice-cream increased over 50% between 2009 and 2014. Furthermore, consumption is still

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under a quarter of that consumed by Americans, giving plenty of room for further increases. The new company should be onto a winner. As for UHT milk, KPMGâ&#x20AC;&#x2122;s global head of agribusiness, Ian Proudfoot, has been pointing out for some time that dehydrating milk and sending powder to countries where quantity and quality of water is limited, defies logic. The fact that Fonterra has been stuck in the powder mode is because it has a strategy that is driven by expansion, domestically and internationally. It is also operating within the Dairy Industry Restructuring Act (DIRA). The DIRA is stifling innovation and hence limiting strategy. Established initially to allow some competition to ensure that domestic suppliers and consumers are not subjected to monopoly prices, DIRA allows new processors to set up with milk supply from Fonterra for up to three years. It also mandates Fonterra to collect milk wherever it

is produced â&#x20AC;&#x201C; whether it is economically sensible or not. Under â&#x20AC;&#x2DC;normalâ&#x20AC;&#x2122; business operations, inducements are offered to attract suppliers and customers: higher prices to suppliers and cheaper prices to customers than the â&#x20AC;&#x2DC;competitionâ&#x20AC;&#x2122; is offering. The balance between the two, whilst also providing returns to the owners, can be difficult to achieve, but private companies have flexibility in the way they operate. Co-operatives are bound, at least in theory, by group decisions. In addition, Fonterra is bound by the DIRA. A review of the DIRA is underway and Fonterra has addressed the issues of supplying competitors and national coverage in its submission. Both factors are putting the company at risk. So is the current strategy, re-articulated in the governance review discussion document as â&#x20AC;&#x2DC;accessing 30 billion litres by 2025, from 5-6 milk poolsâ&#x20AC;&#x2122;. The current volume is 22 billion litres, from New Zealand, Australia, Chile and China. Expansion overseas has involved shareholder money and increased debt; returns are not clear, and unease is rising. Australian suppliers are paid more for their milk than NZ suppliers in order to â&#x20AC;&#x2DC;meet the marketâ&#x20AC;&#x2122; (attract suppliers) but the same is not true in Chile. Soprole

(Fonterraâ&#x20AC;&#x2122;s wholly-owned subsidiary in Chile) and Nestle have been accused of collusion and pricefixing, keeping the milk price low. In China, where Fonterra owns hubs and animals, no profits have been reported. Research from Warwick Business School suggests that companies make more money concentrating on businesses domestically rather than expanding offshore. Global expansion has distracted Fonterra from marketing the addedvalue that the NZ farmer creates with the mostly grass-based production system, leading to higher omega-3 concentration than achieved in grainfed animals. This is how organic milk in the USA is marketed to consumers, even though the organic cows have access to pasture for â&#x20AC;&#x2DC;at least 120 days a yearâ&#x20AC;&#x2122;; NZ cows have access for at least 360 days. The DIRA review is urgent for Fonterraâ&#x20AC;&#x2122;s operation, but so is a rethink of its strategy. Added-value occurs in NZ: high quality milk, sweetened with manuka honey, flavoured with high anti-oxidant blue berries and perhaps some kiwifruit nectar, and the ice cream already in demand in China; itâ&#x20AC;&#x2122;s practically a health product â&#x20AC;&#x201C; made in NZ. Ă&#x20AC; +BDRVFMJOF 3PXBSUI JT QSPGFTTPS PG BHSJCVTJOFTT 5IF 6OJWFSTJUZ PG 8BJLBUP BOE B 'POUFSSB TIBSFIPMEFS

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RURAL NEWS // FEBRUARY 16, 2016

MANAGEMENT 25

Focus on feed quality – export PAM TIPA pamelat@ruralnews.co.nz

NEW ZEALAND farmers in general know how to grow feed and use it, but need more focus on quality, says San Jolly, an Australian expert in dryland nutrition. Jolly has been in NZ working on several projects for the Red Meat Profit Partnership. She spoke about feed quality during a Beef + Lamb NZ conference call this month. Based in South Auckland, Jolly is principal consultant with Productive Nutrition Ltd, working mostly one-on-one with farmers in Victoria, Tasmania and South Australia. She came here to talk about drought, but hasn’t talked about it, she says, because farmers have had good rain. She held a workshop with farmer and other professionals at a Hawkes Bay farm which has extensive planting of a plantain chicory mix on dryland and irrigated land. Since coming to New Zealand she has focussed on quality. “NZ farmers in general know how to grow feed and use it, but there is not much conversation about quality,” Jolly says. “It is quality that drives production. The amount of dry matter you produce underpins your bottom line; it’s a key profit driver, but it’s the quality which influences animal productivity.” At this time of year perennials which have had rain or have irrigation are looking great. “But you can’t tell what the nutritive value is by looking at a plant.” The green stuff is still better than the dry stuff on the hills. But perennials at this time of year are trying to go repro-

ductive. Even if you are rotational grazing and generating new shoots with every rotation, the nutritive value of those plants is still much lower in December-January. She said at the Hawkes Bay farm they looked at the neutral detergent fibre (NDF) – the slowly digestible fibre portion of the plant. Using an equation to enable the farmers to send off a feed test, they then get an NDF result and quickly calculate how much of that feed the lambs could eat. “It doesn’t matter whether you’re talking lambs or steers or any ruminant, you can predict intake based on the NDF concentration of the pasture,” she says. “That blew their minds. It doesn’t matter what tonnage of dry matter (DM) in the paddock you have, it is not the amount of DM that influences how much they can eat, it’s the quality.” She said they showed that a 40kg lamb growing at 250g/day should be eating about 1.5-1.6kgDM/ day. Due to the NDF or the fibre concentration of that pasture they could only eat about 1.1kg. “If you want your lambs to grow at 400g/day then maybe you can look at some different species choices to drive that before starting to think about supplementary feeding.” Jolly was asked about the value of feeding roughage to ruminants feeding on quality lush green pasture when it is pouring out the other end. She said it depends what is driving the scours. “If you have eliminated worms – if you visualise a kg of feed and a lot of that lush pasture or crop is only 10-15% DM, the rest is water. Some of that will get absorbed through the rumen wall and be

Farmers need to focus more on quality, rather than quantity, of feed grown for grazing.

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RURAL NEWS // FEBRUARY 16, 2016

NO FLIES ON CYREX

26 MANAGEMENT

or maggots... or lice

Healthy fodder beet will look like this, aphids transport the BWY virus that causes leaves to go yellow.

How to beat yellowing fodder beet PENNY CLARK-HALL

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EVER WONDERED why your fodder beet has gone yellow? Ravensdown agronomist Chris Lowe went looking for the cause and found it in aphids that transport the beet western yellow virus (BWYV). â&#x20AC;&#x153;I lost count of the number of enquires recently about these symptoms; most people put it down to nutrient deficiencies,â&#x20AC;? Lowe says.

A common response, he says, is to apply lots of nitrogen and potassium fertiliser. â&#x20AC;&#x153;The fact is that the beet below is not suffering from a nutrient deficiency at all. We tissue test many beet paddocks for nutrients through our research laboratory and most come back fine.â&#x20AC;? Lowe says after the firm saw signs of infection last year it brought in AgResearch to help monitor the situation. Using plant diagnos-

tics Lowe has had the cause of many yellowing paddocks confirmed as BWYV. This is transmitted by aphids, the biggest culprit being the green peach aphid (Myzus persicae). These are often found on the underside of the leaves, where they lay eggs in the winter. In spring they hatch and produce stem mothers that give birth to female aphids. These then fly to the summer hosts, like fodder beet, where they suck the

plant sap and transmit the virus. â&#x20AC;&#x153;The virus persists in the aphids for at least 50 days, while the aphid only needs to feed from the plant for a minimum of five minutes to transmit the disease to the plant.â&#x20AC;? BWYV is extremely hard to control because of its wide host range and persistent aphid transmission, the minimum inoculation feeding period being 10 minutes. @rural_news facebook.com/ruralnews

WHAT ARE THE BEST DEFENCES Insecticide seed treatments e.g. imidacloprid or thiamethoxam + tefluthrin Later drilling to avoid aphid flights Avoiding host plant cover crops e.g. beet, radish, peas, potatoes and wild/weed crucifers like mustard, between drillings Adequate rotations (best defence). Chris Lowe says foliar insecticides can help, but they have to be timed right. â&#x20AC;&#x153;This year I was finding aphids underneath leaves about the

middle of November. A good indication of whether your beet crop has aphids is the presence of ladybirds as they are a natural predator and where possible I would advise using an insecticide that does not kill your friends.â&#x20AC;? Globally there is huge resistance to insecticides with the green peach aphid. While it is not confirmed in New Zealand yet, Lowe says we should take precautions to reduce the potential of resistance. â&#x20AC;&#x153;Your best form of defence is correct crop rotations and sowing insecticide treated seed. Fodder

beet seed is generally coated to allow precision sowing, which only has a fungicide treatment. Ensure the seed you are sowing has Combi Coat, which contains both a fungicide and insecticide to reduce your risks of virus infection.â&#x20AC;? Lowe recommends doing everything practicable to reduce the risk. â&#x20AC;&#x153;Start with the correct paddock choice, with no-host species prior to fodder beet, and use insecticide treated seed to put the odds in your favour.â&#x20AC;? â&#x20AC;˘ Penny Clark-Hall is a communications advisor at Ravensdown.

RURAL NEWS // FEBRUARY 16, 2016

MANAGEMENT 27

Farm ownership options Rural News catches up with the Rabobank farm ownership options national manager Brent Irving, who was instrumental in developing the bankâ&#x20AC;&#x2122;s Farm Ownership Options facilitation service, launched in 2008.

What types of farm ownership structures have resulted from this initiative? Our involvement with this initiative has taught us that no two deals are the same and that itâ&#x20AC;&#x2122;s important to consider all ownership alternatives to create a positive outcome for all the involved parties. Over the years weâ&#x20AC;&#x2122;ve helped get parties into a range of ownership structures including equity partnerships, lease to buys and share -farming arrangements. What advice would you give to young farmers looking at ways to advance their agricultural career and obtain a farm ownership stake? Itâ&#x20AC;&#x2122;s essential that you pick up as many skills in your current farming roles as possible. While onfarm skills are essential, itâ&#x20AC;&#x2122;s also important that you learn as much as you can about managing the farm-

ity of deals we have been involved in over the years have been related to the dairy sector, in recent times weâ&#x20AC;&#x2122;ve seen

ing operation as a whole, and develop skills in areas such as staff management, financial management and farm governance. You also need to be disciplined in building up your equity and be patient in waiting for the right opportunity to invest in. High-quality equity managers with broad skill sets will always be in demand. To make sure youâ&#x20AC;&#x2122;re on the radar when a good opportunity does arise, you need to build a good reputation within the rural community and look to create a wide network of positive people including rural professionals. What are the key considerations to keep in mind when investigating a farm ownership opportunity with another party? Itâ&#x20AC;&#x2122;s important when youâ&#x20AC;&#x2122;re looking to go into partnership that you ensure thereâ&#x20AC;&#x2122;s a strong alignment of goals and values. If you do decide to proceed with a deal, itâ&#x20AC;&#x2122;s also important that you get good quality professional advice throughout the process and that a robust and well understood shareholders agreement is put together with clearly defined exit clauses. From our experience, the deals that are most successful are those where the individuals involved in the partnership havenâ&#x20AC;&#x2122;t financially overstretched themselves getting into the deal and where thereâ&#x20AC;&#x2122;s a good mix of governance, financial management and communication skills. What are the recent trends you are seeing in this area? While the major-

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Why has the bank set up its Farm Ownership Options facilitation service and how does the service work? The challenges for the young farmers of today who are looking to obtain a farm ownership stake are no different from when the initiative was launched, and as a result weâ&#x20AC;&#x2122;ve continued to focus on this initiative and further develop ways to assist this young farmer group. Our database of equity managers and investors has grown to well over 700 contacts and we now have regional specialists in place across our six regions. We also now regularly run networking events for equity managers and investors which provide those present with an opportunity to develop connections with other attendees. These events often include presentations from farmers currently involved in equity farming arrangements and give those in attendance a chance to learn from othersâ&#x20AC;&#x2122; experiences.

tors. Weâ&#x20AC;&#x2122;ve also seen an increase in the number of older farmers who are now open to the idea of introducing a younger equity manager into their business. This trend has highlighted the synergies between our Farm Ownership Options service and our Succession Plan-

RURAL NEWS // FEBRUARY 16, 2016

28 MANAGEMENT

Managing freshwater quality MinisterEllisonRuddWatts legal experts Rachel Devine and Kathy Wilson summarise two main policy documents on freshwater management being considered by the Government. Report 1: land use and nutrient pollution This report updates a 2013 report on the same topic and focuses on the impacts of land use on water quality. It fol-

lows an earlier investigation into the relationship between land use and two nutrient pollutants â&#x20AC;&#x201C; nitrogen and phosphorus. It presents new information about the recent

changes in farm productivity and mitigation methods and discusses the resulting trends in nutrient concentration and water quality. The report recognises

the range of mitigation techniques increasingly used on dairy farms to reduce nutrient losses, especially on the management of shed effluent and bridging and fencing waterways. In other areas, such as keeping stock out of wetlands, progress has been much slower. The report notes that experiments on research farms have shown that it is possible to reduce nitrogen losses by as much as 50%, but the most effective techniques are generally expensive. It cites an example of the Future Farmlet in Waikato where nitrogen losses were reduced by 40-50% by using less nitrogen fertiliser, a lower stocking rate, with cows that excrete less nitrogen in their urine and are taken off pasture for defined periods. However, these techniques are still in development and are a long way from being suitable for widespread adoption.

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Report 2: examining the 2014 national policy statement This second report examines the current NPS. This sets a national direction for freshwater management which includes managing land use and development activities that affect freshwater. It is considered a first step to improving freshwater management at a national level. The report identifies aspects of the NPS that are absent or unclear and makes six recommendations about how it could be improved. As currently drafted, a key water quality objective refers to maintaining and improving the â&#x20AC;&#x2DC;overallâ&#x20AC;&#x2122; quality of fresh water within a region. The report considers that this lends support to an â&#x20AC;&#x2DC;unders and oversâ&#x20AC;&#x2122; approach. It recommends that the word â&#x20AC;&#x2DC;overallâ&#x20AC;&#x2122; be deleted and â&#x20AC;&#x2DC;maintaining and improvingâ&#x20AC;&#x2122; should be defined as at least staying within the same band in the national objectives framework. The report consid-

ers that criteria should be provided for dividing regions into freshwater management units (FMU). These units are the basis for measuring water quality, setting limits and choosing objectives, and the lack of any criteria means that these FMU could be set in a way that leads to inappropriate management and monitoring. The policy on exceptions to national bottom lines needs clarification. Amendments to the NPS are suggested so an exception can only be made for existing infrastructure if it is the reason for water quality being below the bottom line. Regional councils should be required to prioritise the protection of vulnerable water bodies and catchments. Councils have until the end of 2025 to implement the NPS. However, certain water bodies need focussed efforts and priority action taken. The NPS should be amended to include the management of estuaries under the national objectives framework. Estuaries are vulnerable water bodies, and according to the report, water catchments cannot be managed in an integrated way while estuaries are excluded. The Minister for the Environment has said that the ministry already has work underway on four of the six recommendations, and the other two will be considered over the coming months. Ă&#x20AC; 3BDIFM %FWJOF JT B QBSUOFS BU JOUFS&MMJTPO3VEE8BUUT TQFDJBMJTJOH JO BMM BTQFDUT PG FOWJSPONFOUBM BOE SFTPVSDF NBOBHFNFOU MBX ,BUIZ 8JMTPO B TFOJPS BTTPDJBUF BU .JOUFS&MMJTPO3VEE8BUUT BEWJTJOH PO BMM BTQFDUT PG FOWJSPONFOUBM QMBOOJOH BOE SFMBUFE MFHBM JTTVFT @rural_news facebook.com/ruralnews

RURAL NEWS // FEBRUARY 16, 2016

ANIMAL HEALTH 29

One-shot vaccine keeps 2-tooths on the rise JAMES AND Denise Anderson take pride in being able to finish all their sheep and cattle at Awatere Station, Southland, in a district otherwise known for producing store animals with only limited finishing. And though it’s a low input/low output system, they won’t hesitate to intervene when a manageable threat to productivity emerges, such as toxoplasmosis, reports MSD Animal Health. Toxoplasmosis in 2010 caused 300 of their 2500 two-tooth Perendales to abort. The outbreak was almost certainly caused by Toxoplasma gondii left by wild cats on the farm and tests at the time confirmed most sheep had been exposed to the parasite. James Anderson says the two-tooths had been grazing in an area with a “dead hole” that was a hideout for the wild felines and these were the likely culprits. He didn’t need much convincing by his veterinarian that managing the ongoing risk from toxoplasmosis losses by vaccination was a no-brainer and he’s been vaccinating his twotooths every year since then. (Maiden ewes require only one vaccination with Toxovax for lifetime immunity.) It’s just one of many challenges he has to juggle. The Andersons’ 3000ha property in Southland’s Waikaia district, north of Gore, is a mix of rolling to hill country of which 1200 ha is cultivated. A further 800ha is bush and uncultivated land, and the balance is oversown and topdressed hill country. The Andersons run 18,000 stock units – 10,000 Perendale ewes and 500 Hereford cows – in an integrated

James and Denise Anderson: Managing ongoing risk from toxoplasmosis in their Perendale flock was a “no brainer”.

system that uses the cattle to clean up surplus grass. The sheep are wintered using an all-grass system with some Pasja grown for the lambs and kale and swedes for the calves. The conditions can be challenging. “We only get autumn and winter here,” Anderson jokes. That said, it is generally summer safe, with late spring being the pinch period. In addition to production-limiting animal diseases such as toxoplasmo-

sis and campylobacter, weed control is another major constraint on farm outputs. “We spend $100,000 a year on weed control and we could easily have to double that,” he says. The major culprits are Darwin’s barberry, gorse and broom, which thrive especially on land formerly mined for gold. A big effort is needed to keep the invading weeds at bay. Anderson accepts that applying new

technology such as regular weighing and recording has a part to play in productivity. However, he likes to see the wrinkles being ironed out of any innovations before he uses them. He’s also prepared to spend to control preventable animal diseases: scabby mouth, clostridial diseases and internal parasites are all covered in his animal health programme. Anderson says the smaller-framed Perendales are ideal for their type of

country and their conception rate of around 160% is good. The key, of course, is minimising losses between scanning and tailing. “Normally survival to sale is 125– 135%, but the gap can be bigger,” he says. “Last year, for example, they scanned an excellent 165%, but tailed at 127%, so the higher conception rate didn’t flow through.” @dairy_news facebook.com/dairynews

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RURAL NEWS // FEBRUARY 16, 2016

30 ANIMAL HEALTH

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DOG TRAINING is often a bone of contention. Is it better to train a dog on the job, or train it before ever taking it to work? Admittedly, I trained my first few dogs on the job; all they knew prior, was coming when called and a stop – no more. And they all turned into honest, reliable mainstays working on steep hill country. That is, until I was at a dog trial and had a discussion with an elderly gentleman regarding his dog training methods and mine. I was adamant my ‘natural’ method was better than his use of rope, pole and stock whip. I had no idea who I was talking to – the late, great Gary Brennan. Cutting a long story short, I spent a couple of hours with Gary and he showed me four of his ‘breaking in’ steps. The next day I started training a young Heading dog doing everything I had been shown. Bill quickly became a top mustering dog, far quicker than if he had

been trained on the job. I was blown away by Bill’s achievements and have trained dogs using these principles ever since, however I have changed, tweaked and added many things, all designed to make the lessons easier and kinder on the dog. Regardless of the method you use to train dogs, the more they know and the more they understand, before going to work, the easier and less confusing it is for the dog and the more successful he will be with the instructions you give. But I have been wondering in the last few years whether we are doing our working dogs an injustice with stringent training. Yes, it certainly makes the job with stock more efficient when the dog is beautifully trained, but unless we learn to keep

commands to a minimum, we can stifle an intelligent dog’s brain, creating a living robot, never knowing if the dog actually has any prowess. In the ‘old’ days virtually everyone trained their dogs on the job, and the dog’s ability soon became apparent. If it continually ran in the middle of the mob, used its teeth too often, cut stock off and appeared to be brainless, the dog’s life was cut short. Dogs with good conformation, staying power and the ability to be in the right place at the right time, doing the right thing with little or no training and very few commands were the dogs we bred from. Size, colour, coat type, noise and style were not priorities – intelligence and nature were. Now we seem as obsessed with our dog’s trialling bloodlines as we are with the latest gadget from high-end brands. I confess, I used to be sucked in by the ‘names’ but thankfully I snapped out of it a few years back;

but I am now questioning the ‘training obsession’ many have. Yes, the results can be impressive to bystanders; dogs can be placed anywhere and controlled to the point of perfection but I have seen too often, these highly trained obedient dogs, standing gazing into thin air and allowing mobs to get away. It isn’t the dog’s fault; from an early age he has been taught to obey commands – or else, so when his handler is preoccupied and fails to command him into action the mob is no longer under the dog’s control. Consider for a moment, if today’s dog wasn’t so highly trained would he have made the grade years ago? Would he be a thinking instinctive mustering dog with uncanny ability? Are we breeding the brains out of our mustering dogs with our training obsessions? • Anna Holland is teaching people dog training. For more information www. annaholland.co.nz or Ph. 06) 212 4848 or annaholland@xtra.co.nz.

RURAL NEWS // FEBRUARY 16, 2016

MACHINERY & PRODUCTS 31 Is there a future in mechanisation?

Good pedigree FARMGARD HAS recently added Rolland muck-spreaders to its extensive range of such gear. Rolland, based in northwest France in a 50,000m2 factory, is this year marking 70 years since it started – its first product a wooden manure spreader. At the recent Grasslandz demo they were joined by export manager Alex Clothier, from the UK, to introduce the Rollforce range. Clothier says the Rollforce range offers a large range of heavy-duty machines aimed at contractors and large scale farmers. The machines are identified by the numbers on the side of the body, with the first two digits referring to body length and the latter to the capacity in cubic metres. Attention to detail sees the metalwork shot-blasted then phosphated and electroplated; then a high-quality, two-pack top coat is applied. The material is ovenbaked twice, ensuring a long service life. At the front of the machine a wide A-frame drawbar layout aids strength and stability when combined with the standard vertical spring. Optional hydraulic damping is also offered, said to promote a smoother ride. Oversize wheels and tyres help with stability and more importantly reduce rolling resistance and make the spreaders easier to pull off-road.

Up front the self-contained hydraulics require only a PTO drive and electrical connection to the tractor – no risk of cross-contamination of hydraulic fluids. A DPA system automatically adjusts the bed speed – irrespective of the tractor’s forward speed – to maintain constant application rates. The front panel of the spreader body allows the operator a view of the load and its progress, and 16mm marine-grade floor chains work with channel-profiled slats to take the load rearwards. A hydraulically operated guillotine door controls the rate at which the material arrives at the beaters, which as standard equipment has a twinhorizontal format that deals with a range of manures and better suits dealing with occasional foreign objects. Vertical beaters can also be fitted as an option; these are suited to lighter density materials like chicken manure, and can deliver up to 50 tonnes/ha as opposed to the horizontal set-up’s 25t/ha rating. The unit’s twin spinning discs have overload protection. The package is completed by front lights, drawbar skid and heavy duty mudguards for the wheel equipment. An optional weigh system will allow the operator to meet requirements for proof of application and spreading rates.

WITH COMMODITY pricing worldwide having a knock-on effect, it’s no surprise that most of the world’s farm machinery manufacturers saw sales and revenues dip in 2015. However, the prudent companies will make adjustments to production and staff in the short term, and sit it out until the market sorts itself out. Perhaps it’s a good time to look back on what benefits mechanisation has brought the world in the last century or so – not least in agriculture – and where we need to be heading in the next 30 years. In 1870 one horse could plough one acre a day. By the turn of the century, four horses could plough around seven acres in the same time, and by 1930 a tractor and plough could turn a green acre brown in about 30 minutes.

Once a grain crop was grown a similar pattern emerged, with premechanisation harvesting taking around 300 hours to harvest 100 bushels (around 2.75 tonnes) of wheat. In 1840 Cyrus Hall McCormick gave us the reaper/binder that brought the task back to about 50 hours. Today, modern headers will harvest 100 bushels in around three minutes. Look at the statistics from another angle – the ability of farmers to feed a nation: at the start of the 20th century one farmer could feed around 2.5 people and by 1960 mechanisation had pushed that to 25, whereas today’s mechanised farmer has the capacity to feed 145 individuals. So the future appears bright when you take into account the need for farmers in the next 30 years or so. Statistics show that by 2050 the

earth will carry nine billion people and food production will need to increase by 100% over today’s output. To put this in another context, food production between the year 2000 and 2050 will need to be greater than the total food production in the last 10,000 years. The need for ongoing and intelligent mechanisation is also confirmed by the reduction in land area and labour as communities move to urban environments. The United Nations recently commented that countries that have addressed hunger and malnutrition – by encouraging farmers to increase production – have been twice as successful as those that have encouraged growth by nonagricultural means. So, with regional field days just around the corner, get along and see what the latest mechanisation has to offer your business. But remember to buy benefits, not features, and ensure you are working smarter not harder.

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LOOKING BACK on 2015 it will be remembered as a tough year for commodity prices. It was an even tougher year for the tractor and machinery manufacturers, who have seen sales and profits take a corresponding hammering. But agriculture is never a short term business and there’s always a new kid on the block who wants a piece of the action. One such new kid is Lovol Arbos Group, with stated plans to develop a global machinery brand. Its parent seems well placed to give a helping hand: it’s the Foton Lovol Heavy Industry Co (FLHI), one of Chinas’ most powerful ag sector outfits. It has a 35-40% share of the ‘native’ tractor market, annually making 100,000 units and 50,000 combine harvesters. The greater proportion of total production is under 100hp, but there is a developing trend for more power and higher levels of technology. Summing this up, Lovol Arbos’ marketing manager, Allesandro Zambelli, says “the Chinese agricultural tractor market is in a similar place to that of Europe 12-15 years ago”. To meet the demand, FLHI is not only investing large sums to promote change in the home market, but also to develop higher power and higher specs in tractors on sale globally. The roots of this policy sprouted in 2011 a European headquarters with an R&D division

back in Bologna – the heartland of Italy’s agricultural engineering sector. In 2014 the group bought the rights to the Arbos brand name, with a following in the Italian market with its Bubba tractor range but little known elsewhere. The brand also stood out in combine harvesters and the purchase landed the company 70,000 drawings and designs. Then in 2015 it bought the precision planting and seed drill specialist MaterMacc and gave an indication of its ambitions. The new Lovol Arbos company is a case of the Orient meeting Europe, resulting in a European designed tractor being built in

China; a 30-strong development team has developed three tractor ranges in the last three years. This will take the Foton Lovol Co into the high power sector. The first range to break cover will be the four model 5000 series, which offers tractors of 100-130hp with FL axles and transmissions, and Kohler Tier 4 engines. Marketing manager Zambelli says the strategy is to provide value for money with purchase prices 10-15% lower than western built competitors. The intention is not to compete with high tech brands such as Fendt or JD but to go up against the likes of Kubota or Zetor. While the 5000 series will be the first to the field, sometime in

early 2017 will follow the 6000 and 7000 series – 140-200hp and 220260hp, respectively. These higher power tractors are likely to use European Carraro axles, mated to Foton Lovol four-stage power-shift transmissions and powered by Tier 4engines sourced from Deutz AG. There is also a plan to offer a CVT style transmission via acquired technology and competence that will allow in-house production. Zambelli says that although the 5000 series is nearly ready for launch, the strategy is one step at a time to achieve the stated aims of being a global long line supplier. Which prompts the question, who will they absorb to create a grassland line?

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MACHINERY & PRODUCTS 33

Natural gas power isn’t all hot air MARK DANIEL markd@ruralnews.co.nz

TRACTOR MANUFACTURER SDF has shown its desire to ‘go green’ with the introduction of a ‘concept’ natural gas tractor, based on the current 5 series / Virtus ranges. The tractor is a collaboration between Deutz AG and the Rostock University, using a converted standard diesel engine, and achieving big reductions in pollutants but with no loss in performance. The prototype 5120C, which can also run on renewable natural gas, was first tested in September 2015, both parties claiming success and many insights into the development of gas engines.

They used a diesel powered Deutz TCD 3.6L engine, replacing its injection system with spark ignition, and adding seven tanks for CNG storage of 236L, most notably in the cab’s rear C pillars. Researchers commented there was room to mount one further tank to take capacity to 316L (60kg) of CNG, which equated to around 77L of diesel. Although this gives a shorter range than the diesel burner, CO2 emissions were down by up to 14%, NOx was reduced by over 90%, and particulates were reduced dramatically. Interestingly, the tractors already meet the yet-tobe-introduced Tier V emission levels, without the need for any Ad-Blue

or diesel particulate (DPF) treatments. www.powerfarming. co.nz

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RURAL NEWS // FEBRUARY 16, 2016

34 MACHINERY & PRODUCTS

Big, strong and not so simple MARK DANIEL markd@ruralnews.co.nz

THERE CAN’T be many SUVs out there with a 60-year reputation and the ‘presence’ of the iconic Land Cruiser 200 – known worldwide as a tough, no nonsense vehicle guaranteed to get you to where you’re going without drama. The Land Cruiser 200 for the 2016 season has seen an evolution that places it fairly and squarely amongst the high end European machines, but with a key difference. Whilst it offers all the creature comforts you would expect, such as high grade leather, DVD players for the rear passengers and a host of safety features, under the skin it’s still the tough, unbreakable car it’s always been and resists the urge to

bow to fashion. Approaching the vehicle you are quickly aware it has ‘presence’, measuring nearly 5m long and 2m high and tipping the scales at around 2750kg kerb weight. Jump up into the seat, after having helped the better half up into hers, and it’s like sitting in a small room with a cockpit that feels wide, seats wide and comfortable, and the centre is wide enough for two occupants to use it – at the same time. At the rear the second and third rows have plenty of room, with this being confirmed in the latter with full size seats. On the road the ride is smooth and refined, aided by a long wheelbase, wide track and I suspect the mass of the vehicle. It feels like it’s planted in the ground, and shows

little body roll for such a large vehicle, no doubt as a result of the KDSS system that adjusts the tension in the front and

rear anti-roll bars subject to terrain. Power delivery is as smooth as Brian Ferry of seventies band Roxy

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noting that if the vehicle did run away that the operator’s manual would easily double up as a wheel chock in an emergency. Open highway driving showed the transmission to be flexible, with 100km/h coming up at around 1480rpm, and even with a 1700kg boat on the rear the engine only crept up to 1600rpm for the same speed. Indeed the towing ability can’t be overlooked: whether you take a boat to the coast or some beef

beasts to market, I can’t think of a vehicle that will do it better. Beyond the engine and transmission sits a raft of safety features that bring the vehicle bang up to date, with the likes of adaptive cruise control, imminent impact warning, blind spot mirrors, rear and side cameras and parking sensors to name a few. A neat feature for the nocturnal insomniacs are the auto dipping headlights which work well. As always from Toyota the information systems are second to none with clear graphics and logical layouts, and include information on subjects you didn’t know you required. As part of the vehicle package on the VX Limited, the wide centre armrest hides a chiller box beneath, a pair of DVD players are installed on the rear of the front seat headrests, a glass tilt and slide sunroof brings light into the cabin, and a polite nod to the Euro SUV sees the obligatory push button electric door lift. In summary, if you need an SUV that won’t let you down, save your shoe leather and petrol – just buy one.

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Poncho provides all-encompassing pasture protection With a high-risk season on the way, Poncho will provide the ultimate protection from Argentine stem weevil (ASW) adults and larvae, Grass grub larvae, and Black beetle. Poncho is a seed treatment insecticide applied to the seed pre-sowing, to protect your pasture against insect attack during the first weeks of establishment; helping to maximise grass production, and ultimately provide quality feed for your stock. Released immediately after sowing, Poncho forms a protective halo around the seed (See Diagram 1). With systemic protection, Poncho is taken up from the halo by the roots as the seed germinates, and is transported throughout the stem and foliage to deliver root to tip protection against key insect pests – Argentine stem weevil (ASW), Grass grub, and, in the North Island, Black beetle. All ryegrasses, both autumn and spring sown, come under attack from these pests. Even new ryegrass cultivars containing novel endophytes, e.g. AR37, still need protection against

ASW attack during the first six weeks of establishment until the concentration of endophyte is high enough to confer protection. Which is why seed protection is so vital if you’re embarking on pasture renewal, particularly this season. With the mild winter and hot, very dry summer set to come, conditions are perfect

for high pest infestations and subsequently increased pasture damage. This season there is likely to be an earlier and more successful hatching of Black beetle. Grass grub is also likely to proliferate with the ideal conditions, hitting farms during autumn and winter.

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5 REASONS TO CHOOSE PONCHO FOR PROTECTION: 1. It’s a seed treatment: Poncho is applied to the seed not the soil, meaning low application rates, less sprays, and less area being treated. 2. Broad spectrum pest control: From the time of sowing through the first weeks of plant growth, Poncho provides systemic protection for above and below ground pests – The active ingredient of Poncho is released from the seed soon after planting and forms a protective halo around the seed.

4. It simplifies management by reducing the need to apply an insecticide at, or soon after, sowing. 5. It’s simple: Your Bayer SeedGrowth application specialist will take care of the seed treatment process. No special equipment is required to drill the treated seed and there will be no empty chemical containers to dispose of.

As seedlings germinate and grow, Poncho is taken up from the halo by the roots protecting the plant from within. Controlling foliar pests Poncho is then uniformly transported to stem and foliage. Poncho is released from the seed immediately after sowing, quickly surrounding it with a protective halo.

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Treatment threshold – two Grass grub larvae per spade square. Well before sowing take a garden spade and dig 10 spade squares to the depth of a blade on a diagonal across paddocks you intend sowing. Sort through soil, count and record the number of Grass grub you recover. If you find an average of two or more grubs per sample, you should protect your seed with Poncho.

For ASW, no treatment thresholds have been developed yet, but you should protect your ryegrass seed with Poncho, especially when using no-till or low-till establishment methods. BLACK BEETLE For Black beetle no treatment thresholds have been developed. Black beetle infests the upper North Island, as far south as the Taranaki Coast in the west, across to the Mahia

Peninsula in the east; it is in these areas that newly sown pasture should be protected. Remain vigilant outside of this area as the pest is spreading south. The spectrum of Poncho is such that you should consider using it to protect your investment in seed whenever and wherever you are attempting to establish pasture.

Argentine stem weevil Larvae kill seedlings by burrowing into them at or soon after emergence and the adults feed on emerging seedlings. Of the two, the larval stage is the more damaging. Grass grub Each of the three larval stages of Grass grub damages pasture by feeding on the roots. The third instar which feed from late February until spring are the most damaging to autumn sown pasture as their development coincides with the sowing time.

Black beetle Adult Black beetles are present in pasture in the upper North Island from February to December. The adult beetles feed on the base of ryegrass plants leading to plant loss, open pastures and greater weed competition. The amount of damage depends on the number of insects: at low densities they’re a direct competitor with stock for food. At high densities, plants are completely destroyed.

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Poncho creates a halo of protection around the seed. Experts are predicting a long dry summer. These conditions are the “perfect storm” for pasture pests such as Argentine stem weevil, Black beetle and Grass grub. Pests with a voracious appetite for newly sown pasture. With existing pastures likely to be ravaged by drought this summer, protecting your newly sown pastures will be even more important. Protect your production now with Poncho treated seed.

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RURALNEWS TO ALL FARMERS, FOR ALL FARMERS

FEBRUARY 16, 2016: ISSUE 601

Northland Field Days

www.ruralnews.co.nz

DARGAVILLE MARCH 3RD, 4TH, 5TH

Lively showing of tractors, utes and breeding genetics THERE WILL be plenty to see, do and experience at this year’s Northland Field Days on March 3-5, at Dargaville. With grounds almost booked to capacity and exhibitors coming from as far afield as Australia, the organisers predict something for everybody at Northland’s biggest

annual outdoor event. About 90% of the sites were booked by last December, says event coordinator Meagan Edmonds. And there are lots of interesting products on offer. North Auckland automotive dealership Winger motors will attend for the first time.

General sales manager Jason MacDonald sees it is a great way to present buyers with never-beforeseen 2016 Chrysler Jeeps and Dodge SUVs and commercial vehicles. The event’s reach made the decision to attend a no-brainer, he says. “We have just taken over

New Zealand’s northernmost franchise for Jeep and the field days will connect us with a wide range of customers.” Another company looking to re-enter the Northland market is Worldwide Sires. General manager Hank Lina says the company has rebranded and is on target to offer farmers a source of genetic material free from the potential of inbreeding. “We are able to draw on the widest range of genetic material in the world so there is no chance for any inbreeding

with the herd,” Lina explains “We’re looking forward to getting into Northland.” Farmers looking for larger equipment will have plenty to choose from: new Massey Ferguson and Kubota tractors will be on show. AGCO New Zealand manager Peter Scott

plans to show the 90-100hp Massey Ferguson 5700 range of tractors. He expects the non-cab range to be popular due to its specifications and value for money. “This combination will appeal to customers looking for a tractor

loader package with good hydraulic performance, ample power and ease of use,” he says. Free parking is available close to the showground and regular public transport runs to and from. www.northlandfielddays. co.nz .

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RURAL NEWS // FEBRUARY 16, 2016

2 NORTHLAND FIELD DAYS SHEEP, DOGS & LOGS

Field days’ ticket prices head south up North! NORTHLAND Field Day organisers reckon the event is even more affordable: they’ve dropped adult ticket prices and now offer a new family pass. Held in Dargaville, the three day event is a certain crowd pleaser for all Northland people and many more from the regions south. Visitors aged over 16 will pay $12 to enter, instead of $15; groups with two adults and up to three children

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will pay no more than $30. “This makes access to the event more affordable than most other attractions and events in the country at a time when entry prices are going up rather than down,” says Northland field days president Lew Duggan. Duggan says Northlanders have been firm supporters of the event for 32 years and the committee wanted to reward the many loyal attendees.

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“I know people who have been to every show since it began in 1984,” says Duggan. “They have been baked by sun, soaked by rain and buffeted by cyclone-force winds; we need to say ‘thank you’.” Exhibitor numbers are almost at capacity, so many visitors will need to attend more than one day. Around 90% of the sites were booked as early as December, says

event organiser Meagan Edmonds. Exhibitors have been pouring in much faster than previous years and offering a wider range of products and services. “If you had to choose between this and previous events, this would be the year to attend,” says Edmonds. “There will be so much to see and do.”

SHEEPDOG TRIALS and the ever-popular logging sports competitions will be highlights, the Northland Field Days organisers say. Exhibitors and the events committee have worked overtime searching for more new events than ever, says the event president Lew Duggan. And the logging sports promise to be especially exciting this year, says event organiser Carl Bowman. The area allocated has grown to accommodate a wider range of activities and a bigger competitor list. Competition will be heating up in the log loading event – 10 operators, double the number attending last year. In this event competitors take turns to unload and reload a trailer-load of logs with an excavator purpose-built for forestry work. Last year was thrilling, Bowman says, and he expects this year to achieve “another level”, with more operators, bigger logs and a larger loading area. The main logger sports event will have more athletes trying their hand at chainsaw racing, wood chopping and more. “On Saturday the crowds definitely turn up, especially when the races are on.” The sheepdog trial organisers expect around 60 dogs to take part in a line-up of New Zealand’s brightest and best dog trialists. Past New Zealand champions Murray Child, Kenny Whittaker, Scott McCray, Ian McKinnon, Alan Nisbett and Neville Child will start, as will last year’s NZ handy dog champion Duncan Gilligan. NZ Sheep Dog Trial Association president Chris Robertson is pleased to see more women taking part in the sport. “I expect Anna Blair and Erin Ball, both exciting competitors, to take part in the competition.” Field days president Lew Duggan says special efforts are aimed at catering to families. There will be lots of events and attractions for kids of all ages. They include Clydesdale rides, digital trap shooting, sheep races, a petting zoo and more. “The events committee has outdone themselves this year,” Duggan says.

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RURAL NEWS // FEBRUARY 16, 2016

NORTHLAND FIELD DAYS 3

Action and giveaways will all be there JAM-PACKED WITH action, fizzing with giveaways: that’s the promise of the Northland Field Days organisers. “Exhibitors are pulling out all the stops to have plenty of things to win and do,” says president Lew Duggan. Anybody attending the event, on March 3-5, has a good chance of walking away with something special. Northland Toyota is building a new, improved 4WD track – next to its site – to show off its new Toyota Hiluxs in ‘real-world’ conditions. Sales consultant Nigel Gilmour says people trying out a new model Toyota Hilux, FJ Land Cruiser or Toyota Fortuna on the 4WD course should expect a bumpier ride than last year.

There will be plenty to do and see for visitor’s attending this year’s Northland Field Days.

“Drivers will experience challenging approach and departure angles right from the seat.” Toyota’s new range of Hiluxs ranges from 2WD work trucks to high-spec 4WD Hiluxs.

“We’ve been working on the new range for five years, so it will be exciting to let people see them live. We are most excited by our new 2WD Hiluxs, which have the same ground clearance as our 4WD models.”

Field day attendees will also get one chance each day to win their weight in meat via a competition organised by NZME and farm electronics manufacturer Tru-Test. Scales will be set up at the Tru-Test

site to weigh visitors for the contest. Tru-Test and the field days committee will auction off items on site, giving farmers an opportunity for great deals on fencing and other animal handling gear.

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BELTS OR ROLLERS? ALREADY WELL known and respected for its range of Belt Balers, New Holland importer CB Norwood Distributors has recently announced the launch of the new fixed chamber Roll Bale range comprising three options: the RB 125 Baler, the RB125 Combi or the RB 135 Ultra (combi); the numerals indicate bale diameter, Combi signifies the bale wrapping system, and Ultra shows that the machine is heavy duty and orientated to arduous conditions. Core of the machines is a bale forming chamber comprising 18 heavy duty and wear resistant rollers of 200mm diameter with aggressive profiles to keep bales rotating in all stages of bale formation, or difficult crop or climatic conditions. The designers claim that the higher number of rollers than on competitor machines results in a greater surface area in the bale chamber, helping to spread the loadings created by high density bales, and thereby prolonging the operating life of the machine. Up front a 2.1m working width pickup on the RB 125, or 2.2m wide version on the RB 135, both use five tine bars to achieve a clean pickup behind even the widest swaths. Crop is fed from the pickup to a 470mm feeder rotor made from Hardox 500 steel, with 10mm thick feeder fingers. These in turn push the crop through a chopper bank comprising 20 retractable knives. If overloaded, a hydraulic cut-out disconnects drive to the pickup and feeder

rotor allowing bale formation to carry on. On the RB 135 version, in cab rotor reversing allows easy clearance of blockages. Once formed, bales can be covered by conventional net wrap or the operator can chose to use an optional film wrap system to cover the circumference of the bale. This excludes air, improves the fermentation process and helps maintain bale shape; it also has potential to reduce overall wrapping costs, as fewer layers of film wrap are needed to cover the bale, or lower quality wrap options can be specified. Control of the whole system is via an in-cab monitor with a large easily read display giving information on bale density, pto speed, net or film indication and the number of layers per bale, plus the ability to record bale counts; an internal memory for up to 50 jobs should help simplify invoicing in busy periods. With a low centre of gravity, gradients and slopes should not pose any problems, and a choice of tyres will allow tailoring the machine to operating conditions. The RB 125 is available with super-wide 50022.5 flotation tyres, and the 125 and 135 combi units can take 500-50R17 items, all of which stay within a 3m transport width. Servicing is looked after with a lightweight, one piece forward cover which lifts to give easy access to the centralised auto greasing system, and the drive chains have auto lubrication. – Mark Daniel www.newholland.co.nz

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4 NORTHLAND FIELD DAYS

More choice in the 100130hp range POWER FARMING recently introduced new models and upgrades to the Deutz Fahr tractor ranges for the 2016 season. In the all-important 100-130hp sector, the introduction of the new 5G series will complement the existing 5120 and 5130 models, and offerS buyers more choice in an attractively priced package The 5105.5 and 5115.4 (100 and 109hp respectively) are the first DF models to utilise the new Farmotion engine which is

built in-house and specifically designed for agricultural installations. The units meet Tier4i emission regulations using high pressure common rail with fuel injection, as well as EGR (exhaust gas recirculation) and DOC (diesel oxidisation catalyst), said to be a simpler and more effective solution than DPF (diesel particulate filter) and Ad-Blue; it requires no maintenance through its operating life. A heavier engine block is also said

Deutz Fahr introduces new upgrades and ranges to its line-up.

to reduce vibrations by up to 25% and noise levels by 4%. Coupled to the new motor is a choice of 40 x 40 transmission in the 5105 or 60 x 60 in the 5115, both with wet clutch / power-shuttle and either two- or three-speed onthe-go powershift. As part of the overall package the tractors are well equipped, using the D2 four post cab, the Stop and Go system – which cuts drive by using only the brake pedal, a true four-wheel braking system with axle manageturns of the steering wheel tion changes to the variment for the diff lock, and from lock to lock. ous models. electronic hitch control. At the upper end of the All models now have Both models have stable, the well-known mechanical cab susopen-centre hydraulics Agrotron series now pension, and the M600 with 55L/min flow, and comes as Evolution, with Summit EVO now has either two or front axle suspenthree remotes sion and 50km/h as standard. transmission. The introduction of The 5115 also Completing the the new 5G series will offers increased package is a new complement the existing loader option, the lift capacity at 4855kg 5120 and 5130 models. Agrilift 4020: it has – its sibling mechanical selfwhich achieves levelling, a third 3600kg – and also has the cosmetic upgrades bringremote function and SDD steering system that ing the look of the tracshock absorber, lifting engages a second, switchtors into line with the 1720kg to 4m. able steering pump to higher spec 6 and 7 series; www.powerfarming. reduce the number of there are some specificaco.nz

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6 NORTHLAND FIELD DAYS

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four-wheel drive, two trim levels and a choice of manual or automatic transmission; there should be something to suit all users. The 1600cc 4-cyl engine pumps out 86kW and around 156Nm torque, driving through either a 5-speed manual or 6-speed automatic transmission. The 4WD models have the Allgrip system with three modes: Auto (defaults to 2WD and diverts power to the rear axle if slip is detected), Snow (4WD and ideal for slippery or loose surfaces) and Lock (limited slip diff for extreme conditions). Suspension is coil springs at each corner, with McPherson struts up front and a torsion beam setup at the rear. All vehicles are shod with weight saving aluminium alloy, spoked wheels and, depending on the level of specification, Hill Hold and Hillside

Descent functions are also included in the package. In the cabin, high tech seems the order of the day, all models having electric windows front and rear, 7 inch touch screen display, navigation and reversing camera. Electrically adjusted door mirrors, on-board computer, and steering wheel controlled functions complete the look. The LTD version also benefits from an electrically operated panoramic glass sunroof, keyless entry and high grade suede effect upholstery. Interestingly, the growth of compact SUV’s is increasing faster than any other segment in the NZ motor industry, and obviously shows the desire of the public to get off the beaten track, so it looks like Suzuki are onto a winner. www.suzuki.co.nz @dairy_news facebook.com/dairynews

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RURAL NEWS // FEBRUARY 16, 2016

NORTHLAND FIELD DAYS 7

Wets them all, over all MARK DANIEL markd@ruralnews.co.nz

PPP INDUSTRIES will use the Northland Field Days to showcase its new Super Sensor Jetter. Mostly tainless steel manufacture has reduced the unit’s weight by nearly half to 56kg. And extensive testing has ensured the unit suits crossbreds and finerwool halfbreds. Aimed at dealing with flystrike or lice, the unit gets the active liquid

treatment to skin level, from the poll, over the shoulders and along the back line, then over the rump, down around the crutch and around the pizzle area. The unit is light yet strong and easily moved into position. It has a jetting system that is triggered as animals move down the race and are detected by an electronic sensor.Two upper spray lines mounted in the same direction as the

animal’s movement carry ten spray nozzles, and a lower unit mounted across the direction of movement carries a further three; this is angled 30o forward for maximum underbody penetration. The spray valve,

activated after detecting the animal, achieves instant jetting, sending a continuous stream that ensures maximum wetting. It is recommended that animals move through the race in no more than one per second for best

results. The unit comes complete with all necessary pipework with cam-lock fittings, intake filter and a Honda 5.5hp petrol engine and Davey Fighter pump. www.pppindustries. co.nz

DISCS CUT GREAT RESULTS SINCE LAUNCHING the Gascon range of cultivation machinery at the 2015 National Fieldays, importer/distributor Origin Agroup reports a number of sales and positive feedback from users. The manufacturer’s expertise goes back 145 years. The flagship machine of the offset disc range, the EOS, is hydraulic folding and available in working widths 3.05-5.88m, and a transport width of only 2.5m. The heavy duty construction is based on extensive use of high grade steel, with the main frame built in three sections; it uses steel up to 200 x 100 x 10mm to spread loads evenly across the whole machine. This leads to heavy tare weights, for example over 4500kg on the 4m unit, which leads to easy penetration in primary situations without the need for additional ballast. A choice of discs in 26 or 28in diameter offers disc weights of 132 and 148kg respectively, with units being supported by greaseable taper roller bearings carried by a 40 x 40mm disc gang axle; water and dust seals with housing protectors ensure for a trouble free service life. Gang adjustment is done hydraulically, as is the adjustment for the self-levelling stabiliser system. The unit runs on oversize 500-50 R17 tyres with hydraulic depth adjustment www.originagroup.co.nz

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RURAL NEWS // FEBRUARY 16, 2016

8 NORTHLAND FIELD DAYS

Innovative solutions on show MARK DANIEL markd@ruralnews.co.nz

GALLAGHER GROUP has always been at the forefront of innovations and effective solutions for livestock farmers. At the Northland Fieldays the company will exhibit in the Farmlands Village, showcasing its latest ideas for dairy herd mating and electric fencing solutions. The Flashmate electronic heat detector is aimed at farmers wishing to improve their herd’s six week calving rates and AI detection. The standalone, lightweight disposable device is placed on the animals’ rump where it constantly monitors cow

heat behaviour during the mating season. Using technology similar to a touch screen on a smartphone, and working with a smart microchip that identifies specific patterns of riding activity – including frequency, number and time – the unit flashes red for 26 hours, indicating the animal is ready for AI. “Following a limited release in 2015, feedback has been positive, and while farmers can’t control the weather or the milk price, upping their six-week in-calf rate from 65% to 75% can result in a payback of $60 per cow per year,” explains Gallagher national sales manager Peter

Nation. Out in the paddock, a number of solutions to everyday fencing problems should prove popular, including the S20 portable solar energiser, which builds on the technology first seen in the smaller S10 unit and can pack a punch for 1.2ha or 2km. The device will suit those who don’t want to use a battery powered unit, but who need up to three weeks without sunshine once its integral battery is charged up. Complementing the energiser, Gallagher has come up with a new dual-purpose insulated handle that uses a ringshaped design to stop the perennial problem

NEW LINK-UP ADDS POWER WITH AGRICULTURAL innovations dating back to the 1930s, Gallagher has a name for delivering easier onfarm solutions. The company has now teamed up with Rezare Systems, Hamilton, a specialist in agricultural software products. The resulting joint-venture company, called Apps on Farm Ltd, will market cloudbased animal recording software based on Rezare’s current pureFarming platform.

of portable fences ‘bouncing’ off the permanent wire when

they are being deployed. A high visibility sighter will also be on display – a plastic globe that clips onto

temporary or permanent lines to indicate their presence and alleviate accidents www.gallagher.co.nz

The launch will include web-based and mobile tools that will interface with various recording devices – including Gallagher’s own weigh systems and EID products –

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RURAL NEWS // FEBRUARY 16, 2016

NORTHLAND FIELD DAYS 9

Italian job makes farm life easier MARK DANIEL markd@ruralnews.co.nz

THE SAYING goes you didn’t realise you needed a telehandler until you bought one, but there’s no doubt this type of machine has revolutionised material handling on farms – with far greater capacity and manoeuvrability than traditional tractor/loader set-ups. Italian specialist Merlo is credited with developing the first machine of this type as far back as 1981, when it combined the features of a fork truck with those of a telescopic boom crane to create the SM 30. Merlo, always particularly innovative in this field, has recently introduced the new Series 11 Turbofarmer with a raft of new features that will no doubt keep it ahead of its competitors. A new modular design for the main frame area still sees the centre section protected by the Merlo ‘ring of steel” but allows the factory to build machines with a choice of 7 or 10m boom assemblies for differing market segments. The same ethos applies to the engine bay, where the power unit sits in a cradle that can be ‘dropped’ into the mainframe easily, dependent on required specification. First models to be introduced to the NZ market are the TF38.7100 and the TF 38.7-120, which lift 3.8 tonnes to a maximum height of 7m, powered by a 100hp Kubota, or 120hp Deutz Tier 3B power-plants. Engines are mounted low on the offside of the units, cooled by a new package that draws in air from the side and discharges hot air out through the top surface of the hood. A reversible fan system ensures that direction of flow is changed periodically to keep everything clean and running at the optimum temperature. Also receiving attention is the familiar hydrostatic transmission with an Eco Power Drive

(EPD) that allows the operator a choice of transmission strategies dependant on the task at hand. The ‘heavy load’ choice gives full power for the most arduous tasks, while the ECO mode limits the maximum engine speed to 1800rpm and should prove useful for road work and around the yard. Switching to the ‘speed control’ function allows the driver to control speed with the drive pedal, and the engine will increase or decrease its speed to maintain the desired setting. The resultant savings see an average reduction in engine revs of about 25% and worthwhile fuel savings of about 18%. Telehandlers rely on a decent hydraulic system to make the job easy, and the TF 11 takes care of this with a 105L/min gear pump system on the 100hp unit and a high output 170L/min featuring closed centre/load sensing and proportional joystick control Also included as part of the NZ package is the unique Merlo CDC system that ensures that any loads being lifted are within the safe limits of the machine, and advises the operator in pictorial and audible format. The system also offers the ability to weigh at any point during vertical or horizontal movement of the boom with +/3% accuracy. This has proved useful for livestock operators weighing feed, or arable operators moving crops in and out of store. The all-new cabin sees the same width, but greater length, and features curved glass for improved forward and upwards visibility, an air suspension seat and a high output air conditioning system. Controls are laid out logically in front and to the driver’s right, and feature a colour screen for engine and transmission readouts and a large ‘A’ pillar screen for load, safety and rear view camera functions. The cab is remarkably quiet with

only a small amount of hydrostatic noise. A wide range of options can be factory fitted such as cabin or boom suspension, boom sideshift, and a newly

released choice of rear PTO and hitch, for models over 120hp, without the need to go to multi-farmer spec. www.powerfarming. co.nz

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RURAL NEWS // FEBRUARY 16, 2016

10 NORTHLAND FIELD DAYS Whangarei

State Highway 14

Dargaville

Vintage Machinery & Doug the Digger

Emergency/ Evacuation Gate

Tractor Pull HQ

Logger Sports

Prime Site 14x18m Site 14x18m

Tractor Pull

Lawn Mower Race Track Star t/Finish

Star t/Finish

72 72

116 118 120 122 124 126

128 a

77 NZM79 E

Fo od Court 2

Rural P avi li on

130 132 134 136 138 140 142 144 146

BEYOND ORGANICS WEIGH 117 119 121 123 125 127 129 131 133 135 137 139 141 143 145 166

168 170 172 174 176 178 180 182 184 186 188 190 192 194

R O A D

171 173 175 177 179 181 183 185 187 218 220 222 224 226 228 230

230c 187c

CRAIGS INVESTMENT PARTNERS PLACE

Public Carpark

Heavy Vehicles & Buses

256

FIBER FRESH WAY

296 298 300 302 304 306 308

297 299 301 303 305 307

Lifes tyle Pavilion 2 Lifes tyle Pavilion 3

THURSDAY TO SATURDAY

Parking

Clay Shooting Experience the thrill and excitement of shooting clay birds without any risk. Show off your sharp-shooting skills.

Disabled Parking

Pedestrian Entrance

REDLINE ROAD

Vehicle Exit

Tick et Booths

99 101 103 105 107 109 111

148 150 152 154 156 158 160 162 164 BERTOLINI BOULEVARD 147 149 151 153 155 196 198 200 202 204

159 161 163

Rural P avi li on 1

Toilets First Aid Food

Attractions

Fo od Court 1

208 210 212

Hel icopter Rides Services 1m Danger No Entry Loading Ramp

Road 15m wide

NZ FARM SOURCE ROAD

Road 10m w ide

237 239 241 243 245 247 249 251 253

HONDA HIGHWAY 275 277 279 281 283 285 287

Bush

RUMBLE ELECTRICAL & SOLAR LANE

NORTHLAND TOYOTA 4WD TRACK 339 Food 311 Hall 313 Beer 347 349 351 353 355 Garden

364 342 344

372 374 380 Big376 Fun 378 Events

DAVE PHILLIPS MEMORIAL DRIVE

Ballance Agri-Nutrients Sheep Dog Trials

Big Fun Events Your kid’s won’t get bored. Just head for the Big Fun activity zone. This is filled with activities including water walkers and an inflatable playground. Clydesdale Rides Make your way around the field days in style aboard a wagon pulled by three Clydesdale horses. These free rides run for the duration of the event. They start from just opposite the field days HQ on the corner of RD1 Road and Farmlands Rd.

Win Your Weight in Meat Head to the Tru-Test site to get yourself weighed and into a draw to win your weight in meat.

310 312 314 316 318 320 322 324

W 309 311 313 315 317 Laser Clay 323 S hooting 319 321 325 H E Y 340 342 344 346 348 350 352‘n’354 356 Sheep Show

Sheep Dog Trials Watch the top sheepdog trialists in Northland face each other to claim the best in the region. Competitions have run since 2008, and the field days attracts Northland’s top dogs and shepherds. Trials Thursday-Friday, finals Saturday, hyman sheepdog competition Saturday lunchtime.

Tractor Pull Watch the best of the best tractor drivers in Northland battle it out in three days of intense competition. Events include the business house event and the three legge race.

276 278 280 282 284 286 288 F O N T E R R A

SEED FORCE LANE

Lifes tyle Pavilion 1

Market Site

Exhibitor Vehicle Entry

238 240 242 244 246 248 250 252 254

ARB NORTHERN LANE

Public Carpark

98 100 102 104 106 108 110 112

232 234 HQ

229 231 233 235

MARKET AREA

195 197 199 201 203 205 207 209 211

259 261 263 265 267 269 271 273

Exhibitors Carpark

Quad Skills

189 191 193

258 260 262 264 266 268 270 272 274

294

DARGAVILLE FORD TERRITORY

NZ FARM SOURCE ROAD 217 219 221 223 225

1 57

HYNDS ROAD

114

75a

POWER FARMING NORTHLAND PLACE 61

F A R M L A N D S

157A

NORWOOD ROAD

206 a

CERVUS EQUIPMENT LANE

WHAT’S ON AND WHEN

SATURDAY

H Helicopter Rides

Demonstration Area

Quad Skill Competitions Take turns getting a quad and trailer around an obstacle course in the fastest time. Open to anybody aged over 16. Logger Sports Competition Logging workers have for 20 years faced off at the Northland Field Days. Four-man teams from as far south as Tokoroa travel north to compete in one of four events. The contest begins on Saturday at 9am and goes all day.

RURAL NEWS // FEBRUARY 16, 2016

NORTHLAND FIELD DAYS 11

Pottinger puts silage in place MARK DANIEL markd@ruralnews.co.nz

WHILE FARMERS and contractors will argue whether the best silage is made by self-propelled harvesters or loader wagons, there is no doubt that the latter has become popular over the last decade. As fuel costs have risen, studies have shown that modern, loader wagon-based harvesting machines can use 50% less diesel than comparative systems. Pottinger has recently announced a raft of upgrades to its loader wagon range. The new EuroProfi 4510, 5010 and 5510 models and the Torro 6010 and 65610 versions can be used as loader wagons but have the ability to quickly convert to transport operations.

With power requirements of 130-220hp for EuroProfi and 160-300hp for Torro, there should be something in the range to suit individual usersâ&#x20AC;&#x2122; requirements. Up front, heavy duty drawbars combine with wide angled pto shafts that see overload clutches uprated to 1800Nm on the EuroProfi and 2300 Nm on the Torro series â&#x20AC;&#x201C; claimed to deliver 10% more power to the cutting rotor with a resultant 20% hike in capacity, all with lower maintenance. At the front of the wagon a six-bar suspended pick-up follows twin cam tracks for optimal tine control and smooth clean transfer of grass to the chopper unit. This is enhanced by a new tracking roller mounted under the rear centre of the pickup unit,

working irrespective of the front jockey wheels; this gives exceptional ground following, especially in a wet season when ruts created by tractor tyres can cause soil contamination From the pickup grass is fed to the gear driven, 800mm diameter chopper rotor, where eight rows of helically arranged tines push the crop over the chopping knives in a progressive manner said to reduce power requirement. The Powercut knife system is also new, with 35 knives on the Europrofi series which results in a 39mm theoretical chop length, while the Torro series has 45 knives and the ability to chop down to 34mm. Loader wagons rely on sharp knives to achieve good chop quality and low power consump-

tion, so the EasyMove system allows the knife bank to be lowered and swung out to the side of the machine at the touch of a button, and a central knife lock control allows the knives to be removed quickly. An optional TwinBlade system features knives uniquely shaped to offer cutting edges on two sides of a triangular design and allow a quick change to sharp items as the crop dictates. Once chopped, crop is transferred to a lowered scraper area that takes the material back into the body, and for the first time allows the fitment of 710-45R22.5 tyres to keep the body level; an upgrade to the floor chains to 10mm deals with the capacity upgrade, as does the addition of a twospeed floor motor for the NZ market.

Indicative of the combined capability of the wagons, the front bulkhead can be hydraulically shifted from loading to transport duties, and a viewing port allows the driver to see the load at all times. When in automatic loading mode, twin

sensors and adjustable compression springs ensure the wagon remains matched to the available power. Side panels are full length and lightweight and combine with a wide opening rear door to enable rapid discharge; optional rear beater

packages and cross conveyor systems will suit those wishing to feed into troughs or zero graze. A choice of control system includes Direct Control for L versions, Power Control for D versions, or the optional CCI ISOBUS terminal for both versions.

FARM MACHINERY STRENGTH / QUALITY / PERFORMANCE NORTHLAND FIELD DAYS SEE US AT SITE

61 Bale Feeders

HIGH LIGHTING EURO HEAVY METAL MARK DANIEL markd@ruralnews.co.nz

CLAAS HARVEST Centre will use the Northland Field Days to showcase the latest offerings from its European suppliers. The JCB Fastrac 4220 boasts 217hp, a CVT transmission and self-levelling suspension and the ability to lift 8000kg to the rear, 3500kg up front and around 4000kg on the load deck behind the cabin; this makes it extremely versatile, especially when it is capable of speeds up to 60km/h. Indeed its ability to multi-task allows it to stay in the paddock longer, move between jobs more quickly, and all in relative comfort and safety. Also new from the JCB camp is the Farm Master 418 Agri wheeled loader, designed to complement high output crop harvesting systems, which can often mean field outputs of at least 200 tonnes per hour arriving at the clamp. The FM 418 takes this in its stride and

also frees up time for all-important rolling and consolidation From the Claas camp, tractors will be centre-stage with examples from the Axion 900 and 800 series, plus the Arion 600 and 500s, all showing the latest technology. For harvesting and haulage the Cargos 8000 range of loader / transport wagons have a role to play with three sizes options up to 41m3, and the clever ability to switch from harvesting to haulage duties in 15 minutes. At the other end of the market, the German harvest specialist will show a selection of the new Disco mowers which has 28 mew models with 2.6-10.7m cutting width. All have the new Max-Cut cutter-bar which uses a unique wave shaped support beam to allow the cutting modules to be pushed further forward. This has the effect of enlarging the cutting area, which in turn results in a cleaner cut, better quality and higher daily outputs. www.harvestcentre.co.nz

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RURAL NEWS // FEBRUARY 16, 2016

12 NORTHLAND FIELD DAYS

Mahindra making it happen MARK DANIEL markd@ruralnews.co.nz

IF YOUR impression of Indian based manufacturing is one of backstreet workshops, dirt floors and very big hammers, you may be in for a re-think. India is a powerhouse of low cost production, and major manufacturers are increasingly setting up shop there to take advantage of this. The Mahindra company can be traced

back to a foundation in 1945, when it introduced the Willys Jeep to the masses and its grown massively since then. Today Mahindra has a vision to be a major world player, seeking growth through innovation and with an eye to the environment and its people. And looking at the current annual turnover of 16.9 billion USD, spread across 18 divisions as diverse as agriculture and aerospace, and

employing 180,000 people, no one could call this company small. In agriculture alone Mahindra is the world’s largest producer of tractors by volume – 300,000 units annually roll off the production lines in a range 22-100hp. In automotive it produces cars, trucks, utes and electric scooters. In 2015 they bought the American UTV manufacturer Intimidator, and now produce the Mahindra

Mahindra’s new Mpact XTV will be on show at Waimumu.

Mpact XTV. The business also sees emerging technologies as important to its future; it tests these technologies by participating in motorsport – five teams ride Mahindra motorcycles in Moto3 GP racing, and the company

races in Formula E, the Formula 1 equivalent for electric race cars. Mahindra owns 70% of the Korean car company SsangYong, and last year it bought Peugeot-Citreon’s motorcycle business and the Italian design firm

Pininfarina, the designer of stunning Ferrari, Rolls Royce and Maserati models. At Northland Fieldays the company will showcase its rugged no-nonsense ute – the new XUV 500 SUV with a host of technological and

safety features that will put it up against better known Japanese and European brands – and the new Mpact XTV, of interest to Northlanders wanting tough gear able to handle a good days work. www.mahindra.co.nz

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