YEAR IN REVIEW
ANIMAL HEALTH
AGRIBUSINESS
The good, the bad and the ugly. Rural News gives their review of 2019. PAGE 6-7
Close ties between farmers strengthens animal traceability.
Farmlands Cooperative quits the real estate business. PAGE 16
PAGE 23
TO ALL FARMERS, FOR ALL FARMERS DECEMBER 17, 2019: ISSUE 691
www.ruralnews.co.nz
A woke joke? DAVID ANDERSON
AGRICULTURE MINISTER Damien O’Connor’s much-vaunted Primary Sector Council (PSC) has released its big plan for the sector. However, the actual details of how and when it will ever be implemented are yet to be fleshed out. A key part of the PSC’s remit, when O’Connor established it back in April 2018, was to “develop a sector-wide vision”. Last week, the PSC launched its self-described “bold, new vision for New Zealand’s agriculture, food and fibres sector” – titled: ‘Fit for a better world’. Its big idea is: “for New Zealand’s agriculture, food and fibres sector to be a world-leader in modern regenerative production systems”. PSC chair Lain Jager says it is about
providing the world’s most discerning consumers with outstanding, ethically produced food, natural fibres, drinks, co-products and bio-products. “As global environmental pressures continue to mount, this is about us standing for a sustainable future in a way that both speaks to and honours both our global consumers and our children.” Meanwhile, a key part of PSC’s vision is the Māori concept of Taiao, “putting the health of the climate, land,
water and living systems first. It provides a uniquely New Zealand way to shape the future”. However, just how this “bold new vision” will be achieved is still unclear as the PSC is still developing its final report and recommendations, which are not expected until March 2020. Following this, a new governmentindustry body – Food and Fibres Aotearoa New Zealand – will be set up to “bring the vision to life”. O’Connor praised the PSC’s work
She’s a bit wet Floodwaters at Rangitata after major flooding hit both sides of the South Island in early December. On the East Coast, the Rangitata River burst its banks, closing State Highway 1 and the inland route bridges for several days. The worst affected farms were on South Canterbury’s Rangitata Island, an area of lush farmland bounded by the main North Branch of the Rangitata River and the normally dry South Branch, between State Highway 1 and the coast. A number of farms in the region were badly affected with flooded houses, dairy sheds and paddocks. Nearly a week into the emergency, both branches were still flowing, and Rangitata Island remained extensively flooded, with the water only slowly receding. See full story page 3.
and said he established it “to provide fresh thinking and develop a vision to help the sector navigate the environmental and sustainability challenges it faces”. “By using ‘Fit for a Better World’ as our guide, I’m confident we’ll achieve premiums in the marketplace for our food and produce.” Earlier investigations by Rural News, revealed that estimated annual costs for the 14 member PSC were expected to exceed $500,000.
IT’S ALL A1 AT A2 A2 MILK Company interim chief executive Geoffrey Babidge says it will be business as usual for the premium brand milk processor. “I have already had the benefit of reviewing the company’s strategy and position and can say I don’t envisage any material change to the plan that the board and senior management have in place,” he told an investor briefing last week. Babidge, who retired from the role 16 months ago, agreed to return on an interim basis after the shock resignation of Jayne Hrdlicka. In a market announcement, Hrdlicka said she had not anticipated the amount of travel involved when she took up the role 18 months ago. A2 chairman David Hearn says Hrdlicka’s departure wasn’t performance related. Babidge says a2 Milk’s commitment to building a China and US business with multi-channel distribution capability will not change. Hearn says the plan’s implementation will be the intensive focus of the next three to five years. Following the announcement of Hrdlicka’s departure, a2 Milk share price dropped, but has since recovered. The company says a global search for a new chief executive will start immediately. @rural_news facebook.com/ruralnews
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RURAL NEWS // DECEMBER 17, 2019
NEWS 3 ISSUE 691
www.ruralnews.co.nz
Farmers count flood costs NIGEL MALTHUS
NEWS ��������������������������������1-11, 14 MARKETS ��������������������������� 12-13 AGRIBUSINESS ���������������������� 16 HOUND, EDNA ����������������������� 18 CONTACTS ������������������������������ 18 OPINION �����������������������������18-19 MANAGEMENT ��������������������� 20 ANIMAL HEALTH ������������ 21-23 MACHINERY AND PRODUCTS ���������������������� 24-26 RURAL TRADER ��������������26-27
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: Ovato 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 79,553 as at 31.03.2019
FARMERS ARE counting the cost after a violent storm which cut transport links on both sides of the South Island and looks likely to disrupt West Coast milk collection for weeks. Major slips, which some estimates say will not be cleared before the end of January, cut State Highway 6 near Hari Hari on the West Coast. Westland Milk Products chief executive Toni Brendish said that because of the limited times of access to reopened roads and the distances tankers need to travel, scheduling for full pickup from farms affected by road closures was “still a work in progress”. “We are working closely with Civil Defence to resume full pickup as quickly and as safely as possible,” she told Rural News. “We’re communicating with farmers on an individual basis to let them know when we can get to their properties.’ On the East Coast, the Rangitata River burst its banks, closing State Highway 1 and the inland route bridges for several days. The worst affected farms are on South Canterbury’s Rangitata Island, an area of lush farmland bounded by the main North Branch of the Rangitata River and the normally dry South Branch, between State Highway 1 and the coast. Nearly a week into the emergency, both branches were still flowing and Rangitata Island remained extensively flooded, with the water only slowly receding. Michelle Pye, director of South Canterbury Pye Group, said the group has four dairy farms on Rangitata Island Road, which runs from the highway towards the coast between the two branches. One of the farms had knee-deep water through a house and through three other staff accommodation units. “We’ve pretty much got a river running through some of the farms and extensive damage to pastures and tracks and fencing,” Pye told Rural News.
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An aerial photo of flooding at a Rangitata Island farm. SUPPLIED
She said irrigation and stock water systems had also suffered and one tanker track was demolished. One neighbour’s irrigator was turned upside down. Other Pye group properties affected included a potato crop and a big grazing block carrying their young stock, which was cut off by floodwater. With the farms cut off by road, the Pyes got their farm staff out by helicopter on the Saturday (December 7) after the river first breached. They lifted them back in on Sunday to feed and milk the cows. “None of our sheds have been affected so we’ve been able to milk all the way through, but some neighbours haven’t been able to milk. They’ve taken their stock off the farm,” Pye said. Mark Adams, South Canterbury Rural Support Trust chairman, said the Rangitata flooding was limited to a specific geographic area. “The current breach is running down between the two bridges and there’s a lot of water running though
there. Until they can stop that it will be hard to quantify the damage.” He said since irrigation came to the district, water tables were higher in the irrigation season, which meant there was nowhere for the water to go. Adams, who farms in the foothills near Fairlie, said it was a “phenomenal” storm in the Rangitata headwaters. “There’s a lot of older folk saying they’ve never seen a thunderstorm like this. It went all night,” he told Rural News. Adams said rural professionals were now calling on farmers to see what their needs were, which was the appropriate response at this stage, rather than overwhelming them with offers of help when they’re still trying to quantify the need. Agriculture Minister Damien O’Connor declared a medium-scale adverse event for the South Canterbury district, making up to $50,000 available to the Trust to support farming communities. Adams said he would like to use the
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funds to help each farm call on expert advisers to put together a recovery plan. “They need professional advice.” The Trust would also probably have a community event at some stage “to put on a beer and barbecue” for the affected families. DairyNZ South Island hub lead Tony Finch reminded farmers to ask for help if they need it. He says the ferociousness of the rain took many farmers by surprise and some farms are still working with intermittent power and closed roads affecting milk collection. About 22 farms are affected in the Rangitata and another 40 farms on the West Coast. “As the flood waters begin to disappear, the full extent of the damage and the clean-up will be seen,” said Finch. “Some farmers will be thinking about milk that cannot be collected. Every situation is different, and we recommend farmers contact their supply company and local council for advice on the best way to manage uncollected milk.”
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RURAL NEWS // DECEMBER 17, 2019
4 NEWS FARM EXPO RETURNS
Happy days: Fonterra shareholders council chairman James Barron.
Dairy’s Christmas cheer SUDESH KISSUN sudeshk@ruralnews.co.nz
AFTER A challenging year, dairy farmers will go into the festive season buoyed by high farm gate milk prices. Major milk processors Fonterra and Open Country Dairy are signalling a forecast payout of well over $7/kgMS for the season. Last week, Fonterra lifted its forecast milk price by 25c to a range of $7 to $7.60/kgMS. OCD has announced a range of $7.30 to $7.60/kgMS for December and January. And for February to May next year the independent processor will pay suppliers $7 to $7.30/ kgMS. Whole milk powder (WMP) prices, a key driver of the milk price, have hit
their highest level since December 2016, reflecting a global dairy market that is tipped slightly in favour of demand. Fonterra shareholders council chairman James Barron says the lift in the forecast price will give farmers some confidence going into Christmas. “The farm gate milk price is at a sweet spot,” he told Rural News. OCD chief executive Steve Koekemoer told its suppliers that stronger pricing being received in market and the foreign exchange now starting to flow through have resulted in the further upside. “All settlement periods have stepped up, with the biggest moves being the November and January periods. “You will notice that all our forward periods are now in the $7 range as we
gain more confidence in the supply/ demand for the balance of the season.” For Fonterra farmers, a positive first quarter result will also help boost confidence. Barron says farmers are happy to see the co-op deliver under its new strategy of a triple bottom line: healthy people, healthy environment and healthy business. However, he points out that challenges loom on the horizon: weaker Chinese economy, unrest in Hong Kong and Chile and the pressure on profit margins of value added products due to high milk prices. Federated Farmers vice president Andrew Hoggard says it’s still early days, and the proof of Fonterra’s turnaround will be if they get a dividend
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again at the end of this financial year. Hoggard says farmer shareholders will be happy to see the co-op move in the right direction. “I mean, they weren’t happy when our co-op was moving in the wrong direction,” he told Rural News. Fonterra announced a positive first quarter result, achieving a gross margin of $740 million, up from $646m last year. Operating expenditure is down by $104m, and debt is reduced by $595m compared to same period last year. Chief executive Miles Hurrell says the cooperative has made good progress moving to its new strategy and has had a strong first quarter. @rural_news facebook.com/ruralnews
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THE EAST Coast Farming Expo will return in February 2020 for a fifth round of innovation, interaction and excellence. The two-day event, hosted by Wairoa Community Development Trust, will be held at the Wairoa A&P showgrounds on Wednesday 26 and Thursday 27 February 2020. “If you’re an East Coast/ Hawke’s Bay farmer looking for the solutions to keep your business moving forward, or an agricultural innovator wanting to spread your message, this event is perfect,” said event manager Sue Wilson. “There are huge opportunities for technology uptake, especially in sheep and beef farming, and we’re excited about the expo’s potential and being able to host it in our community.” Some of the trade exhibits at the event will include solar energy, weather data mapping, new yarding systems, soil and vegetation mapping, feeding systems, GIS mapping, irrigation, genetics and communication systems. Wilson says the expo is an ideal opportunity to launch new products and release new research and technology, straight to a target audience. “Farmers and landowners can explore new ideas and have their questions answered in an exclusive and specialised environment.” Event director Dave Martin says the event provides the opportunity for national businesses and East Coast farmers to mix. “It’s where innovation and technology knowhow can be shared with those who will benefit from it the most.” see: www.eastcoastexpo.co.nz
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NEWS 5
Prices strong, farmers low – report DAVID ANDERSON
DESPITE GENERALLY strong commodity prices, farmer confidence remains at near record lows, according to the latest Agri Focus report from ANZ Bank. “Confidence at the farm level remains subdued despite returns being near record levels,” the bank’s December 2019 report says. “Farmers remain concerned as to how future environmental legislation will impact the profitability of their business.” It adds that dairy land values are also under pressure for the same reason. “These factors are more than offsetting the confidence that would normally be associated with a strong milk price.” The bank says sheep are likely to be favoured over cattle where changes to farming practices are required in order to meet tightening water quality rules. “Water quality regulations aimed at keeping cattle out of waterways and reducing sediment runoff will generally have a greater impact on cattle farming than sheep farming,” it says. “However, the tighter
regulation will have an even greater impact on the dairy sector. Any reduction in dairy intensity is likely to result in lower demand for grazing for young stock and wintering of cows.” ANZ believes beef cattle numbers may need to increase to partially offset the reduction in dairy grazers. Meanwhile, it reiterates that looming regulations on water quality and carbon emissions are negatively impacting on farmer sentiment. “Over the longer term, environmental regulations focussing on greenhouse gas emissions are likely to have the greatest impact on production systems. But in the near term, water quality is where the immediate focus sits for much of the industry. “While there are many scientific solutions being worked on at present to mitigate impacts, there is still a huge amount of uncertainty as to whether any of these potential solutions will succeed.” ANZ also says the rising costs of production are also a concern. “Farm operating costs have lifted nearly twice as much as the general rate of inflation. Costs which
says strong competition between buyers from China and the United States has pushed beef manufacturing prices up significantly. “Bulls are now worth more than prime steers.” The ANZ report also point out that dairy prices have also lifted. “Strength in milk
Confidence in the meat sector is strong due to good returns for beef, lamb and mutton.
AFTER PLUNGING in the previous quarter to its lowest level since early 2016, farmer confidence has lifted in the final Rabobank rural confidence survey of the year. However, the bank says farmer sentiment still remains at net negative levels. Rabobank’s November survey found improved confidence among farmers from all sector groups. This saw the overall confidence reading rise to -12% in the latest quarter – from -33% in the previous survey. The survey found the number of farmers expecting the rural economy to improve in the next 12 months increased to 21% (from 8% last quarter), while the number expecting the rural economy to worsen fell to 33% (from 41%).
have lifted the most in percentage terms are fertiliser, fuel, insurance premiums and shearing costs.” It also reports that “significant increases”
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confidence in the meat sector is strong due to returns for beef, lamb and mutton all being ‘extremely high’. “Meat prices have sky-rocketed due to the global shortage of meat primarily caused by the reduction in pork production in China. While prices have eased marginally both in-market and locally, the price of meat is expected to remain elevated in the coming months. “Mutton prices have hit record levels internationally and locally. Lamb schedules have just eased back below the record price of $9/kg CW attained in November.” On the beef front it
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were also recorded in the cost of feed and the price of livestock. “Interest rates are the only cost category to have fallen,” the bank says. Meanwhile, it reports that
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powders combined with a subdued NZ dollar has allowed our milk price forecasts for the current season to lift to $7.45/kg MS,” it says. “Our 202021 forecast is up 10c to $7.60/kg MS.” The banks says forestry’s outlook remains uncertain due to global markets.
RURAL NEWS // DECEMBER 17, 2019
6 NEWS
The good, the bad, and the As we approach another year’s end we again highlight our annual review of 2019 in the primary sector as seen by Rural News’ editorial team. THE GOOD Good messaging award: Dairy Women’s Network’s new chief executive Jules Benton for her clear, confident and articulate communication of the network’s aims and aspirations, but in a real and down-toearth manner. Celebrating success: A lot of excellent events and conferences this year with a focus on celebrating the success of old and young people. The Massey Ag students’ dinner is a great example of this where some very smart future leaders come to the fore. The same for the Ahuwhenua Awards where Maori agri
Eugene and Pania King
success is also celebrated in style. Feds, HortNZ and the dairy industry and others all did their bit to show NZ that the ag sector is well placed for the future. Heroes of agriculture: - Ben Allomes – dairy farmer Tararua for his
innovative and positive employment policies - James Stewart – dairy farmer Manawatu for his passion and innovation and commitment to connecting with urban communities and showing the great side of dairy farming. - Geoff Lewis – aspar-
agus grower Horowhenua for his commitment to staff and technology that sets him apart from many others - Pania and Eugene King – winners of the Ahuwhenua Trophy this year. Amazing work ethic which has been duly rewarded - Whangara farms and its manager Richard Scholefield – a Maoriowned East Coast farm which is now recognised internationally for its general excellence and sustainability. Good and bad: Beef + LambNZ and DairyNZ for still fighting the good fight for their levy payers on the crazy freshwater proposals promoted by the current Government. Meanwhile, both organisations’ cosy collaboration with the Government over the Zero
Carbon Bill had many in the sector questioning if the farmer-funded bodies had become too Quisling-like in their efforts to bend over to the Beehive’s political aspirations. Doing its job: Federated Farmers takes plenty of stick, especially from coalition politicians and some industry bodies which appear to spend most of their time currying favour with the current Government. However, the Feds have stayed firmly in their lane, criticising policies they believe will negatively impact on the farming sector and not wavering in their criticism – or praise – of the Government when it is warranted. While this may not earn the Feds brownie points with those in power, it is
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THE BAD
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exactly the job the farmer organisation should be doing. Keeping on keeping on: The hort sector’s fortunes continue to rise and rise. Notably there’s the country’s booming kiwifruit industry, helped along by pipfruit, avocados, summerfruit and even the humble spud. But will NZers ever get the fact that taking productive horticultural land for housing is pushing up the price of produce and seriously risks the coun-
Back to the stone age: Forcing rural women to give birth on the side of the road, the Southern District Health Board should hang its collective head in shame after its botched restructuring of maternity services. One midwife preferred that her patient give birth in the ambulance than at the Lumsden ‘mother and child’ centre which had no equipment. What are they smoking?: It is good to see some individual initiatives – along with a Government plan – to try to get more people to work in the agri sector. However, a major issue is the country’s serious drug problem. Growers and
RURAL NEWS // DECEMBER 17, 2019
NEWS 7
ugly – 2019 in review farmers can’t employ many people because they keep failing drug tests. So, what is the Government’s answer? To have a referendum on legalising marijuana! Unbelievable! The bowing to the inevitable award: Westland Milk Products shareholders voting overwhelmingly to sell their co-op to the Chinese dairy giant Yili. As one shareholder said: “It’s like shooting your old dog that you know needs shooting. It doesn’t mean you enjoy it.” How did they manage it: Despite good prices for almost all NZ’s primary exports, uncertainty and despondency abound in the rural sector. All this is while farmers grapple with the Government’s attempts
to dump a mishmash of new rules, policies and regulations on them. Despite all the talk about how much they value the primary sector, in truth getting re-elected is far more important to Jacinda, Winston and co than a vibrant agri economy. Early onset hubris: Agriculture Minister Damien O’Connor was once seen as the lone champion of the farming sector in a very liberalurban Labour party. Sadly, O’Connor seems to be suffering an early case of ministerial out-oftouchness and arrogance – after only two years in the job. Usually, it take governments and ministers two to three terms to become so arrogantly dismissive of the electorate. Maybe it is time he
Damien O’Connor
headed for retirement.
THE UGLY Shouldn’t he be called Dick: Two words – Shane Jones! It is bad enough this blow-hard, megalomaniac has been given control of the $3 billion slush fund known as the PGF. But his big mouth and ego are destroying any chance of NZ First ever getting any rural votes. Calling farmers whiners, rednecks and political enemies is a strange way to garner rural votes.
Yada, yada, yada: To all the so-called animal rights activists, vegans, eco-terrorists, end-ofworld doomsayers, local and international NGOs and other serial nutters who continually publicly demonise the agri sector. While these groups and their supporters are happy to benefit from a buoyant economy – funded by our primary sector exports – they seem to derive great pleasure in kicking the industry and farmers in the guts at every opportunity with silly slogan politics such as ‘too many cows’ and calling ‘industrial’ agriculture the main polluter. We can’t decide if they are traitors or idiots, and if some are being paid by the taxpayer to protest for living. The terrible timing award: To MPI for log-
ging a big increase in the number of farms suspected of carrying Mycoplasma bovis late in 2018, but not gearing up to tackle them until Easter this year, resulting in the infamous ‘surge’ in lockdowns and movement controls which couldn’t have come at a worse time for farmers heading into the winter grazing season. Time to give up: Strong wool has been in the doldrums forever and there is no sign of this changing. Moves by the sector and the Government to set up working groups and talkfests on improving wool’s fortunes will make no difference.
THREE-IN-ONE Fonterra has the special distinction of making it into all three categories
this year. The good: With a new Kiwi chief executive, Miles Hurrell, at the helm, and a change in chairmanship signalled before the end of 2020, Fonterra finally had some good news for the market. Its first quarter results, released this month, show expenses are down, gross margin up and an improved cashflow. The bad: If 2018 was a bad year for Fonterra, then 2019 got even worse. The co-op followed up its first ever loss of $196 million in FY2018 with another bombshell – a net loss of $605 million on the back of $826m write-downs of assets in FY2019. The ugly: The bad news drew an ugly response from farmers: at its annual meeting
Miles Hurrell
last month, some openly called for the chairman John Monaghan to accept responsibility and step down. Farmers questioned how and why the board and a management team drawing millions in salaries allowed the co-op to hit the rocks. Gone are the aspirations to become a global dairy giant: Fonterra is now positioning itself as a NZ dairy co-op with no intention of owning milk pools around the globe.
RURAL NEWS // DECEMBER 17, 2019
8 NEWS
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Zespri chief executive Dan Mathieson with the new Red Kiwifruit variety at this year’s National Fieldays.
the next couple of years so that we can reach commercial volumes,” Mathieson said. “Adding a red kiwifruit variety to our range of premium kiwifruit provides Zespri with an opportunity to further compete for market share in areas where kiwifruit is under-represented, and ultimately grow our industry’s share of the
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global fruit bowl.” Zespri Red is the latest kiwifruit variety from Zespri’s new varieties breeding programme, run with Plant & Food Research. “This fruit has a deliciously sweet berry-tinged flavour and vibrant red flesh and we’re thrilled to see such strong demand from our initial limited sales release,” Mathieson said. “That we can make this variety available is a credit to the growers who have been involved in our trials, our new varieties breeding programme run in partnership with Plant & Food Research, and the commitment to innovation within Zespri and the wider kiwifruit industry.” A slightly smaller and softer-handling kiwifruit than Green and SunGold, Zespri Red’s distinctive red flesh stems from Anthocyanin – a unique and naturally occurring pigment in the fruit that is linked to cardiovascular and cognitive health. Zespri says New Zealand consumers and other selected markets can expect to see limited releases of Zespri Red in designated supermarkets and fruit retailers again
“We know there’s a strong demand for a red kiwifruit and we’d love to get this fruit to our consumers sooner, but the fact that kiwifruit depends on nature’s cycles means it’ll take at least two years for the vines here in New Zealand to produce enough fruit to meet initial demand,” Mathieson said. As part of the commercialisation decision, Zespri’s board has approved the release of at least 150ha of Red licence in 2020, based on its current assessment of budwood availability. Growers and investors will need to consider the risks of this variety when participating in the commercialisation of Zespri Red. “Further details on the licensing process and performance characteristics for Zespri Red will be made available to Zespri growers in March 2020 when a new varieties information guide and other licensing documentation will be published by Zespri.” Mathieson says Zespri Red will assist the kiwifruit company to reach $4.5 billion in global sales by 2025.
RURAL NEWS // DECEMBER 17, 2019
NEWS 9
Farmers feeling bank pressure NEWS NO SURPRISE
PETER BURKE peterb@ruralnews.co.nz
FARMERS ARE feeling the pressure from banks. Federated Farmers vice president Andrew Hoggard says rumours about the actions of some banks are swirling around the rural community and farmers are concerned about what this may mean for them short and long term. He says he’s heard about contract milkers and lower order sharemilkers being refused overdrafts and of a succession plan being vetoed by a bank at the last minute. Rural professionals have told Rural News of banks giving the ag sector a wide berth on lending. One bank is said to have ceased all lending to the ag sector and others have pulled back massively or are much tougher about granting loans. Investigation by Rural News suggests that Rabobank is the only bank not cutting back on lending to the ag sector. Hoggard says he’s trying to grapple with the issue and decide what action farmers should take.
ANZ’s head of agri Mark Hiddleston.
“The present situation creates a whole series of challenges, especially when you look at all the expectations coming in the form of policies on climate change and fresh water. If farmers are to respond to these issues they may need to invest in infrastructure and if no one is interested in loaning them the money to do that they are
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locked in a bit of a hard place.” Hoggard says the challenges facing farmers are prompting many to look at quitting the industry. But if the banks are not lending to people who might want to buy their farms that creates further issues for some would-be sellers. “So the question for those wanting
THIS NEWS is not surprising. Rural News reported Feds president Katie Milne saying at National Fieldays this year that the mood was sombre. Andrew Hoggard recalls that when he visited various Fieldays bank sites it was apparent that a couple of the banks didn’t have much interest in being there. Others had downsized their sites and were not touting hard for new business. ANZ’s head of agri, Mark Hiddleston, said at that time that the Reserve Bank’s increased capital proposal would either restrict the availability of capital or raise the cost of capital. Today his view is backed David Tripe, professor of banking at Massey University. Tripe says the new rules mean that
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generally the banks are going to be pressured to hold a higher percentage of capital reserves. To do this they will have to either increase their returns on lending substantially or cut back on the amount of lending. “The lending they will cut back on is the lending that is less profitable, which for most of them is agriculture. “What has tended to happen in the past is that people have been very enthusiastic about farming without regard to the concerns of doing it. The new Reserve Bank rules will give the banks a new focus on the returns from any new lending.” Tripe says less money will inevitably be available for the agri sector. Lending to the farming sector is no longer as easy as it was. The effect of this may be lower land prices.
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RURAL NEWS // DECEMBER 17, 2019
10 NEWS
Lower producing methane sheep garners worldwide attention PAM TIPA pamelat@ruralnews.co.nz
NEWS OF a world-first tool that gives New Zealand sheep farmers the ability to breed animals that emit less methane has been positively received locally and internationally. Since the methane breeding value was launched in early December, good numbers of breeders have been looking for more information and enquiring about having their flocks measured, says Pastoral Greenhouse Gas Research Consortium (PGGRC) general manager Mark Aspin. “We have had international interest from Australia, UK and Spain on the story,” he told Rural News. Beef + Lamb New Zealand (B+LNZ) Genetics launched the “methane research breeding value”. It follows a 10-year multi-million dollar collaboration between the Pastoral Greenhouse Gas Research Consortium (PGGRC), New Zealand Agricultural Greenhouse Gas Research
Pastoral Greenhouse Gas Research Consortium (PGGRC) general manager Mark Aspin.
Centre (NZAGRC) and AgResearch, supported by the Ministry of Business, Innovation and Employment and Ministry for Primary Industries. Ram breeders wanting to pursue the methane breeding value will need to measure a portion of their flock using portable accumulation cham-
bers. These chambers are on board an AgResearch-operated trailer which travels to individual farms. Sheep spend 50 minutes in the chambers, where their gas emissions are measured. This happens twice, at a 14-day interval. The resulting information
is then used alongside other genetic information to calculate the methane breeding value. Aspin says they launched the tool now because they have a sound scientific basis to introduce the trait to breeders. He describes it as a major breakthrough because it’s a method of directly reducing methane produced by sheep grazing. “The impacts are small -- only 1-2 % reduction a generation, but genetics is cumulative so it will build on itself in time.” Overall though it won’t make a huge difference to climate change as “that relies on the radical reduction in the use of fossil fuels by humans,” Aspin said. He says the new breeding value takes advantage of the fact that individual sheep vary in their levels of methane emission and these differences are passed on to the next generation. “This is a global first for any spe-
cies of livestock. Launching the methane breeding value gives New Zealand’s sheep sector a practical tool to help lower our agricultural greenhouse gases. This is significant. Up until now, the only option available to farmers wanting to lower their greenhouse gas emissions has been to constantly improve their overall farming efficiency. “This takes us a step further – towards actually lowering sheep methane emissions, in keeping with the sector’s commitment to work towards reducing its greenhouse emissions.” Aspin says it is important to note that the biggest influence on methane emissions is the amount of feed an animal eats. Interested farmers will have access to rams within two years – the time it will take to breed and grow rams on a commercial scale. Aspin says it takes two years from selection of sires to seeing progeny on the ground, which is a normal generation interval.
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RURAL NEWS // DECEMBER 17, 2019
NEWS 11
Green light for irrigation scheme NORTH CANTERBURY’S Amuri Irrigation Company (AIC) is pressing ahead with plans for a new irrigation scheme for the Hawarden/Waikari area, following a positive response from potential users. The company issued a product disclosure statement (PDS) last month for shares to fund a revised Hurunui Irrigation Scheme. The PDS closed on November 28 and AIC says it received sufficient interest to advance to the next stage of design and development. The proposal is for a 2000ha to 3000ha piped irrigation scheme to supply farms near the North Canterbury towns of Hawarden and Waikari. It is a smaller alternative to a scheme proposed by AIC earlier in the year, which did not proceed due to insufficient support. The company says the revised scheme was developed through engagement with local farmers and builds on work of the community over many years. Water will be taken from an intake on the south bank of the Hurunui River and rely on consents held by
the now-defunct Hurunui Water Project, which was taken over by AIC earlier in the year. The area has suffered significantly from the impact of drought over recent years and it is hoped the irrigation scheme will bring opportunity and certainty to those farming in the area. “We are excited to have passed the first hurdle and are another step closer to delivering a viable scheme to the South bank of the Hurunui River,” AIV chair David Croft said. “While there is still much work to do before we can proceed with the option, it is heartening to continue our forward motion on the project.” The company will ensure all its farmers hold farm environment plans (FEPs) and new irrigators will need to use efficient irrigation systems and have FEPs in place prior to being delivered any water. The FEPs specify the on-farm actions to meet good management practice. AIC is a community irrigation scheme now irrigating 28,000ha in the Amuri Basin taking water from the Hurunui and Waiau rivers.
A drone shot of land near Waikari, North Canterbury, which is targeted by the latest irrigation plan for the district. SUPPLIED/AIC
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RURAL NEWS // DECEMBER 17, 2019
global agribusiness research analysts sharing market outlooks
12 MARKETS & TRENDS
Rabobank supports clients from farm to fork in
40
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100 000
12630
farmers to connect Content supplied by Rabobank – Grow with the bank farmers for farmers with by worldwide , founded
Strong demand to test supply in 2020 BEEF WILL see a continuation of strong import demand from China in 2020. A more restrained rate of growth in North America will be augmented by an increase in production growth in South America. However, the demand strength from China and other parts of Asia will support global prices through 2020.
New Zealand New Zealand bull
prices jumped 13% over the last quarter on the back of strong global pricing for manufacturing beef, seasonally tight supplies, and a weaker New Zealand dollar. Prime cattle prices largely held steady (+2%) over the same period. As of the start of November, the North Island bull price averaged NZ$ 6.20/ kg cwt (+24% YOY), with North Island steer pricing averaging NZ$ 6.10/kg cwt (+9%).
Rabobank expects farmgate prices to generally hold at elevated levels over the coming quarter. Although, prices will start to come under some downward pressure as cattle supplies start to gain pace in December. China’s continued demand for manufacturing beef is providing New Zealand exporters with strong returns, in addition to firm US demand. In addition, the weaker NZ dollar means current returns are significantly higher than they were at this stage of the season a year ago. New Zealand exported 74,328 metric tons of beef from July to September. While this represented a 4% decline in volume on the same period last year, export receipts for those three months were up 7%, reflecting the higher average returns received
highest levels in 10 years. Strong global demand and limited cattle supplies are likely to hold the market steady for the remainder of the year.
Brazil
by New Zealand exporters.
Australia Dry conditions across much of Australia’s cattle-producing areas continue to persist, forcing cattle turnoff and preventing any rebuilding. Many cattle sales now include a high proportion of quality breeding stock, which will have a lasting impact on future beef production capacity.
A combination of more limited cattle supplies and strong global demand has helped support Australian cattle prices through Q4 (see graph). The Eastern Young Cattle Indicator lifted from AU$ 4.88/kg cwt in late September to AU$ 5.21/kg cwt on November 7. Reflecting the shortage of finished cattle, the spread between heavy finished steers and weaner steers remains at some of the
After the Chinese government approved 17 more beef processing plants for export in early September, Brazilian beef exports broke volume and value records in October. Total beef exports in October (185,000 metric
tons) increased 28% on the previous month. China was the largest market, with exports increasing 61% compared to September volumes (see graph). The strong international market and low domestic production have seen average retail prices rise for seven consecutive months. The average price of domestic fresh beef traded in October was US$ 4.47/kg, up 15% YOY. Stimulated by strong demand, export
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RURAL NEWS // DECEMBER 17, 2019
MARKETS & TRENDS 13
COUNTRIES
Content supplied by Rabobank – Grow with the bank founded by farmers for farmers prices to China (average price of US$ 5.67/kg) have risen 24% YOY.
China Chinese retail beef prices increased further in October, adding to the gains already seen through 2019. Prices reached CNY 80/ kg in mid-October (see graph), up 2.5% MOM or 21% YOY. Although the price increases are much smaller than those for pork (up 17% MOM and 111% YOY), the jumps were still impressive, as beef started at more than twice the price of pork. We believe there is
still room for further increases, but this will be contingent on how high pork prices go. China Statistics Bureau released data showing beef production in the first nine months of 2019 increased 3.2%, to 4.58m metric tons, and cattle inventory increased 2.6% YOY in September, to 936m head. This is higher than our previous forecast, but beef cattle production benefited from a policy adjustment in 2015.
Europe Rabobank expects 2019 EU beef production
to be down from last year by about 1%. Production declined by 5% YOY in August, which resulted in total EU production being down 1.4% YTD. Increases in Ireland, Spain, and the UK were not enough to offset reductions in other major beef producer countries, such as the Netherlands, France, Italy, and Poland. Rabobank expects production will remain under pressure into Q1 2020. The declining trend of beef consumption, pressure on producer margins, and stricter regulations on nitrogen emissions expected to
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soon come into effect in the Netherlands put considerable pressure on production growth. Beef exports and imports have been consistent with levels seen in 2018. We expect export volumes to increase into Q1 2020, due to increasing demand from existing partners, like China, and the development of new markets, such as South Korea (see graph).
severe, and was followed by a wet spring. Trade policy remained uncertain, and the fire at the Tyson plant in Holcomb, KS caused major disruption to slaughter capacity. Despite of all this, price movements for the year followed a predictable seasonal pattern. Cattle slaughter for the year to date (October) is up 1.4%, but beef production has been unchanged for the year. The increase in slaughter was offset by a decline in carcass weights, which were largely a result of difficult weather. All indications are that
the US will close 2019 with large numbers of cattle on feed. However, there is an unusually large proportion of heifers on feed that is expected to limit carcass weights in 2020. Beef production is expected to hold at high levels in 2020 and likely 2021 before there are any measurable declines in the numbers of cattle outside feed yards, cattle on feed, and fed beef production. As a larger share of beef from Australia and New Zealand go to China, it is forcing a reduction in the quantity
of manufacturing beef coming to the US. As a result, prices of Australian and New Zealand 90% lean trimmings delivered to the US currently hold a US$ 54/cwt premium to domestic lean trimmings. This is forcing US quick service burger restaurants to look for domestic alternatives for supplies, supporting US cattle and beef prices. This situation is not expected to be quickly resolved and will be an interesting market development to watch during the coming year. @rural_news facebook.com/ruralnews
US The market has seen substantial disruptions in 2019. Winter started early in the fall of 2018, then proceeded to be very
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RURAL NEWS // DECEMBER 17, 2019
14 NEWS
Does the answer lie in the seaweed? PAM TIPA pamelat@ruralnews.co.nz
AGRISEA IS lining up a meeting with Fisheries Minister Stuart Nash after 10 years research on wild seaweed, says Clare Bradley, the company’s business and development manager. The seaweed products pioneer company, which makes animal nutrition and fertiliser products for farming, was named the supreme winner in the NZI Rural Women NZ Business Awards. Bradley says the seaweed research is part of the 23-year-old company’s innovation and R&D and the country’s seaweed industry. Hundreds of families in remote coastal communities harvest the raw material for the company, Bradley explained to Rural News. “We want to grow a New Zealand seaweed industry rather than use cheap imported powders that are actually a byproduct,” she said. “It is collected after storms. Each seaweed harvester knows exactly which wind and what conditions bring it on to which beach. They are highly trained in how to collect prepare and dry it for us. “In the early 2000s, the Government signalled
FROM SMALL BEGINNINGS JILL BRADLEY and partner Keith Atwood started Agrisea in the early 1990s under their sister company Ocean Organics. The business went from strength to strength. A completely different phase began when they started in the early 2000s creating products for people who live off the land such as farmers, orchardists or commercial growers. Clare Bradley’s husband Tane had grown up in the business and 13 years ago they decided to get out of Auckland and join fulltime. In announcing the award, Rural Women national president Fiona Gower said AgriSea’s business model and products are epitomised in Clare’s passion, expertise and commitment to her family’s business. “The Paeroa company’s impressive investment in research, development and innovation is a showcase of a successful, inter-generational, rural agri-business,” said Gower.
wanted to put seaweed into a quota management system. This sent chills down our spine because the design of the quota is in line with the fishing quota. “But for something that is the rainforest of the sea we needed a lot more research to ensure we have a sustainable industry. “We have done a 10-year project on the effects of wild harvest of seaweed from the ocean. We have measured 164 species to gather data to advise the ministry on how to set up a good seaweed industry.” Bradley says the research is complete and
they are due to meet with the minister “so he can make an informed decision”. She claims AgriSea is also able, potentially, to culture seaweed alongside operations, such mussel farms, so those farmers can have multiple crops. “That project is in the early stages of development.” Bradley says they are creating tools for farmers because “we feel that it is very unfair that farmers get rapped over the knuckles constantly”. But she says there is a lack of well researched tools that can help them farm into the future.
NZI Rural Women NZ Business Award winner Clare Bradley and her husband Tane of fertiliser and animal health company AgriSea.
Bradley says AgriSea has a range of tools for dairy farmers. “That includes the animal range of products that help with animal health and prevention of diseases right through to products for the land that assist farmers to transition to a more environmentally friendly way of
farming.” They also service customers across the primary sector from a small landholder running alpacas, through to kiwifruit, viticulture, olive and avocado growers, sheep and beef and equines. “We have a big range that can fit into any farm-
ing or growing system.” They are continually involved in product development and that comes from being close to their customers, Bradley says. “We don’t sell to third parties, we are right on farm gathering information about what farmers and growers need
and trying to solve those problems. We are lucky to be up close with our customers which enables us to develop products useful in their business.” AgriSea has also just received a judge’s commendation in the restoring nature section of the Sustainable Business Awards.
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RURAL NEWS // DECEMBER 17, 2019
16 AGRIBUSINESS
Farmlands quits real estate Farmland chief executive Peter Reidie claims the new partnership with Property Brokers is a great result for shareholders.
NIGEL MALTHUS
FARMLANDS COOPERATIVE has sold its nationwide real estate business to the Property Brokers chain. The sale, for an undisclosed sum, means Farmlands’ real estate offices and staff are now under the Property Brokers umbrella and branding.
However, Farmlands says it will maintain a relationship with Property Brokers under a longterm deal that preserves member benefits for its shareholders. The two parties are calling it a “long-term strategic partnership” with about 20% of the rural property market and aspirations to lead the
sector. Farmlands’ director of agri products and services, Andrew Horsbrugh, said the co-op brought its great knowledge of rural people and the land to the deal while Property Brokers brought its specialist real estate knowledge. He believed their combined skills would “achieve something
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pretty special”. Horsburgh said the Farmlands brand will remain linked to Property Brokers’ rural advertising. “We want the market to understand that this is the Farmlands real estate offer provided by Property Brokers and there’ll be joint branding in rural real estate.” The rural co-op will receive a contribution on future land sales, while shareholders using Property Brokers services will still receive special offers including discount on commission and the cooperative’s customer loyalty scheme. Farmlands had about 110 real estate staff across 40-odd offices, some standalone and some situated in its retail stores. There were redundancies “but very few,” Horsburgh claimed. The deal took effect in mid-November except for the West Coast, where the two companies’ combined market share requires Commerce Commission approval, now applied for. The two companies said in a statement that the deal provides a broader footprint, increased scale, more resources and improved service for customers, including Farmlands’ 70,000 shareholders and Property Brokers’
provincial client base. Property Brokers now owns and manages the day-to-day real estate business, while Farmlands will continue to support real estate through its network, events, customer loyalty programme and shareholder discounts. “Farmlands Co-operative has a strong network, highly regarded brand and expert knowledge of the rural sector. “Property Brokers is a business that solely focuses on real estate: we know and understand provincial property and real estate agents,” said Conrad Wilkshire, Property Brokers general manager, rural. “We are a growing business, and our real estate track record is backed up with strong training, systems and marketing support.” Farmlands chief executive Peter Reidie says the partnership is a great result for shareholders. “More customers up and down the country will now have access to specialist rural, lifestyle and residential real estate services and property management.” The new partnership will take Property Brokers to over 700 staff across 64 locations from Kaitaia to Invercargill.
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A FAR North iwi, Te Runanga o NgāiTakoto, has started planting a 20ha avocado orchard, Rakau Ora, in Kaitaia. The project results from four years of planning in partnership with the Ministry for Primary Industries (MPI) and key businesses in the horticulture sector. “The orchard is a means to achieve our aspiration of using our treaty settlement assets to build a strong economic base for our people,” said Rangitane Marsden, chief executive of NgāiTakoto. “It will enable greater productive use of the iwi’s land and create new employment opportunities. It’s a tribute to our kaumatua and kuia who paved the way to settlement.” MPI’s Māori agribusiness director Andrew McConnell says his team have partnered with NgāiTakoto as the iwi has progressed along the stages of the whenua development. “We are delighted the iwi is entering this highvalue food sector. It’s an excellent example of promoting whānau development through whenua, as part of our strategy to grow our partnership with iwi and Māori landowners.” Iwi member Claire Tamati is the newly appointed trainee orchard manager.
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RURAL NEWS // DECEMBER 17, 2019
18 OPINION EDITORIAL
No value added THE UNEXPECTED departure of A2 Milk’s chief executive last week was an unpleasant, but timely reminder of the destruction of value often seen between the farmgate and the end market. Jayne Hrdlicka, apparently unaware that working for a global dairy business would involve international travel, resigned suddenly citing “excessive travel commitments”. She was in the job a mere 18 months, long enough to receive a huge share allocation as part of her salary package. She sold a big chunk of those shares, in two lots, making $4.3m and $2.1m respectively. The news of her resignation rocked the markets, wiping more than a billion dollars off A2’s market value. There’s no suggestion of illegality here. But there’s a huge question for A2’s board about whether its own decisionmaking on the big calls like appointing the CEO is adding value for shareholders. In this case the answer appears to be ‘no’. The same questions were of course levelled at Fonterra’s board this year and they also came up a long way short. You can’t argue that a $605 million loss on the back of billions of litres of farmers’ hard work isn’t a huge fail. Theo Spierings, the chief executive who presided over the company in the years leading up to this result, was paid $43m during his sevenyear reign. That’s the real shame here. All that blood, sweat and tears expended by farmers to produce a high-quality raw product for the world and the businesses charged with taking that product to market, despite massive salaries and head office costs, failing to turn a profit. It’s a wake-up call for all primary producers. Whatever vehicle they use to get their valuable produce to market, don’t take it for granted that the processing and marketing parts of the chain are being smart or efficient or adding any value whatsoever. Make sure. Read the company reports, attend the meetings. Ask questions. Don’t fall for the spin. To use the colloquialism, ‘keep the bastards honest’. There’s too much at stake in 2020 – and beyond – to allow such largesse and waste to go unchallenged.
RURALNEWS TO ALL FARMERS, FOR ALL FARMERS
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
“It’s the same every Christmas – suddenly I get this mad urge to hoe, hoe, hoe!”
Want to share your opinion or gossip with the Hound? Send your emails to: hound@ruralnews.co.nz
THE HOUND C’mon, mate
Really?
Good value
Ironic
YOUR OLD mate hears it can be a tough gig for MPs getting back into the real world after retiring (or being voted out of) from Parliament. The Hound understands that former Agriculture Minister and Speaker of the House David Carter is due to stand down at next year’s election. In the past year or so, Carter has been casting about in the rural sector for roles and has even put his name up for directorships of rural co-ops RuralCo and Farmlands. However, shareholders in both co-ops have not voted the MP on to their boards of directors. Perhaps Agriculture Minister Damien O’Connor could help his former political rival and high school alumni and give Carter a role on one of the numerous working groups that he and his Government are so keen on setting up.
SPEAKING OF useless, pointless and waste-of-space working groups... the Hound wonders what really was the point of Damien O’Connor’s $500,000-a-year brain fart – the Primary Sector Council (PSC)? Despite having soaked up more than $2 million in taxpayer funds since it was started in April 2018, it seems all the PSC has done is hold a handful of meetings, send some of its members on an expensive (taxpayer funded, of course) jaunt to Stanford University, commission some research and, last week, launch its ‘vision and strategy document’. Despite all the PR hype and great fanfare about it, this ‘vision’ tells us SFA we didn’t already know and now the PSC wants feedback on it. What a complete waste of time and money.
A MATE of this old mutt reports being somewhat surprised to see Southland farmer and chair of Beef + Lamb NZ Andrew Morrison gracing the streets of the plush North Shore suburb of Takapuna in Auckland, last month. According to the Hound’s spy, Morrison was observed walking around the streets of Takapuna – not riding in expensive taxis or fancy Ubers – and seen eating at a cheap burger joint, obviously testing the end-product and basically acting in a financially prudent manner on behalf for his B+LNZ levy payers. The Hound is pleased to see that Morrison was acting in a frugal way and that sheep and beef farmers can be satisfied they are getting good value for money from their hard-working, producer organisation chair.
YOUR OLD mate notes that a recent bid to buy more than 4500ha of South Island farmland by a Canadian outfit was rejected by the Overseas Investment Office. The OIO ruled Mercury Agriculture LP could not buy the land in South Canterbury and Otago. Rangitata Dairies Limited Partnership and Rangitata GP Limited – companies tied to former Fonterra chair John Wilson – wanted to sell the farmland to the Canadians, but the sale was denied by Land Information Minister Eugenie Sage and Associate Finance Minister David Clark. According to the OIO decision, the ministers were not satisfied the investment would result in ‘substantial and identifiable benefit to New Zealand’. The Hound suggests it is rather ironic that these same ministers have been happy to sign off numerous sales of swathes of good farmland to overseasowned forestry outfits to plant horrible, mono-culture pine forests.
PRODUCTION: Dave Ferguson ........................Ph 09 913 9633 davef@ruralnews.co.nz Becky Williams ........................Ph 09 913 9634 beckyw@ruralnews.co.nz REPORTERS: Sudesh Kissun ....................... Ph 09 913 9627 Pamela Tipa ............................ Ph 021 842 220 Peter Burke .............................Ph 06 362 6319 Nigel Malthus ...................... Ph 021 164 4258 MACHINERY EDITOR: Mark Daniel ............................. Ph 021 906 723 or 07 824 1190 SUB-EDITOR: Neil Keating ............................Ph 09 913 9628
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ABC audited circulation 79,553 as at 31/03/2019
DIGITAL STRATEGIST: Jessica Wilson ........................ Ph 09 913 9621
Rural News is published by Rural News Group Ltd. All editorial copy and photographs are subject to copyright and may not be reproduced without prior written permission of the publisher. Opinions or comments expressed within this publication are not necessarily those of staff, management or directors of Rural News Group Ltd.
RURAL NEWS // DECEMBER 17, 2019
OPINION 19
Here’s why rural NZ is revolting conversion to forestry. Maybe that is what O’Connor meant by the OIO not approving blanket conversion, as they have side stepped that process. Then it was the turn of Hon Shane Jones, who had nothing to say so opted instead to sing a waiata then promptly left the stage and was surrounded by media. In all, I believe the march was a very big success, with three independent counts of the numbers estimating the crowd at 1200.
ANDY SCOTT
ON THURSDAY November 14, 50 Shades of Green NZ marched on Parliament. We met at the Civic Centre where we were greeted by Robin Potangaroa, the chair of Ngati Kahungunu and Aowahanga Trust. Robin spoke well, was concerned at what is happening in the rural sector and welcomed us with a karakia – which was also well received. We also heard from farmer Mike Butterick and Eve McCallum (18), a graduate of Otago University. Eve spoke well and was mindful of the impacts on NZ of some of the adverse policies being put in place. At about midday the marchers made their way to Parliament via Lambton Quay. We met many Wellingtonians, shook hands and had many claps along the way. In all this was a peaceful march designed to tell our message to NZ and this went well, even the NZ Police congratulating us on the rally. At Parliament, Kerry Worsnop, of Wairoa, handed the 17,500 petition to Todd Muller and spoke to the crowd. Sully Alsop then followed with a compelling speech, pointing out that for every minute of one
Rural people concerned about the Government’s forestry policies descended on Wellington in late November.
day the agriculture sector provides $100,000 to the NZ economy. This equals the average income of two people, be they teachers, nurses or other public sector employees (but maybe only one third of a politician’s income). Todd Muller replied with the usual message of support, but he was really preaching to the sceptics on this one. Then it was the turn of Damien O’Connor, who claimed that there is no blanket planting of farmland because it is prohibited by the OIO. The Minister of Agriculture’s came only two weeks after the news that Pan Pac (a Japanese Company) had been approved – without having to go through the OIO -- to buy up to 20,000ha of farmland for
CUTS – POWE R AFFO
U CAN YO
RD TH
The message to Parliament was that they need to listen to the provinces, to the people and the science before adopting these drastic, one-way, economically suicidal policies. I believe Wellington listened and many NZers listened, but I am not convinced the politicians are listening. Where to from here with 50 Shades of Green? Well, our mandate is to inform the public of these ludicrous policy decisions and we intend to hold the politicians to account. We will be bringing
to the front the consequences of the policies and the cost to NZ as a whole. We will continue to remind people that the ETS scheme in its current form will cost each New Zealander $170 per week for the next 30 years. And we will bring news, eg NZ exports logs to China, most of which are made into concrete boxing then afterwards are burnt. How can that help address global warming? • Andy Scott is the chair of 50 Shades of Green
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RURAL NEWS // DECEMBER 17, 2019
20 MANAGEMENT
Drought didn’t dampen these efforts Even drought couldn’t derail the gains achieved by a Northland group of beef farm businesses in its first year as part of a Red Meat Profit Partnership (RMPP) Action Group. COLLECTIVELY, THE farmers have exceeded minimum and average weight targets they set for their weaner bulls, and animal death rates have dropped significantly. They also provided a supportive environment as four of the nine farms faced the challenge of having M. bovis identified on their farms. The RMPP Action Network model supports small groups of seven to nine farm businesses to work together to explore ideas and share expert resources to help them make positive changes on-farm. Kick-start funding of $4000 per farm business is pooled
to fund facilitation and expertise. The main connector for this group was Alison Whiteford, northern North Island extension manager for Beef + Lamb New Zealand (B+LNZ). She also asked Bob Cathcart, an environment and land management consultant with AgFirst, Whangarei, to become the facilitator. “Many of the group members had already met through B+LNZ field days,” said Cathcart, who has worked in land and resource management for 50 years. “None were farming in exactly the same way. However, they also had similarities: they
all wanted to improve their systems and to learn from one another and from others. They saw the RMPP Action Network as an opportunity to do that. “I wondered at first why the group numbers were limited to nine farm businesses, but having worked with them for 15 months now, I think that is a good size and it helps you to keep it simple.” The group started in May 2018, setting ground rules and its objectives. “They all knew they had problems. Between them, they bring on 11,000 weaner calves each year. Because we have a lot of wet hill country, they tend to
Facilitator Bob Cathcart says all the group’s members wanted to improve their systems and to learn from one another and they saw the RMPP Action Network as a way to do that.
bring them in during November/December and then quit them the same time the following year, moving them along to drier country to finish off, rather than carrying heavy animals over winter, on heavy soils. “However, they were getting a lot of calf deaths
– 3-6%. They wanted to know what they could be doing better to reduce deaths, for reasons of productivity, profit and pride which all farmers will understand. “They also wanted to increase growth rates. So they set objectives of reducing deaths and
also set an ideal target weight of 180kg, with a minimum of 150kg, which they wanted to achieve by 31 May.” Cathcart asked all the farmers to send him details about stock deaths and what they had attributed it to. Some were put down
to parasites but a high number were due to ‘misadventure’ such as falling into holes or getting tangled in fencing. In the early sessions, the group also looked at what was the ideal type of weaner to bring in and how they could address issues with sourcing sufficient calf numbers. “Our group members have agreements but struggle to get enough animals and end up buying locally,” Cathcart said. “They discussed where there might be pitfalls and how to avoid them. It was also interesting to find out from members that the weaners sourced locally, while smaller than the big outside Friesians, tended to grow faster and have lower death rates. We were soon getting valuable insights.”
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RURAL NEWS // DECEMBER 17, 2019
22 ANIMAL HEALTH
Trial aimed at reducing lamb drenching Probiotics company BioBrew Ltd will trial one of its flagship products during lamb weaning to see whether it reduces the need for anthelmintics. BIOBREW HAS received $24,000 through the Ministry for Primary Indus-
tries’ (MPI) Sustainable Food and Fibre Futures programme to investi-
gate the effectiveness of using CalfBrew in treating lambs with digestive
The trial is being held during lamb weaning to see whether it reduces the need for anthelmintics.
disorders. The product will be incorporated with low doses of anthelmintic for stimulating natural immunity to gastrointestinal parasites. Results will be measured through
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industry standards such as weight, mortality, faecal egg counts and immunological markers. Andre Prassinos, managing director of BioBrew Ltd, hopes the study will prove as successful as a previous trial of calves in the Clutha District in 2013. This demonstrated a positive effect on animal growth rates in calves treated with a BioBrew probiotic supplement. It also resulted in a 14-to-1 return on investment in milk production and lower mortality in the herd. “There’s a significant body of research that demonstrates the effectiveness of probiotics, but they must be fresh and active,” said Prassinos. “We have spent 10 years in the lab developing fresh, living probiotics tailored to the digestive needs of various animal groups. Whereas the traditional freeze-dried microbial cultures pass through at least a part of the gut before they can begin to produce a probiotic effect, our live, active microbes come in liquid
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form that keeps the bacteria alive, ensuring 100% effectiveness.” The microbes in BioBrew products are selected to survive the rigours of the digestive system, including stomach acids and bile salts. BioBrew has developed a novel method of manufacturing its probiotics in bulk. “We hope the positive outcomes of our trial with lambs will inspire farmers to reduce their dependence on anthelmintics and other synthetic inputs, to which animals are starting to develop a resistance,” Prassinos said. Steve Penno, director investment programmes at MPI, says safeguarding animal health and welfare is a top priority for MPI. “Probiotics has the potential to be a safe and effective option for farmers in the care of their animals. We are pleased to be able to support this project, which will provide more information for farmers who are considering probiotics for animal health.”
■ BREAKING NEWS ■ MACHINERY REVIEWS ■ MARKETS & TRENDS ■ MANAGEMENT STORIES ■ COMPETITIONS ■ AND MUCH MORE...
All the latest stories and more at www.ruralnews.co.nz
RURAL NEWS // DECEMBER 17, 2019
ANIMAL HEALTH 23
Closer ties between farmers strengthen traceability will pay the beef levy at the works,” Powdrell said. “If you haven’t updated the animal production type from dairy to beef, you’ll be charged the dairy levy instead of the beef levy.” A staunch supporter of animal traceability, Powdrell has been an active NAIT user since the system was introduced seven years ago. He recalls making ‘multiple calls’ over that period to the OSPRI Contact Centre but has no gripe. “As a farmer these days, we seem to be con-
stantly under the hammer to be compliant with a whole range of things, some of which are unfair. But for me, NAIT is different as there’s clearly a need and a benefit so it is justified.” Powdrell says those farmers who aren’t convinced even after the M. bovis outbreak, should consider the implications for their business and livelihood of not making animal traceability and disease management a priority.
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Dairy farmer Darryl Jensen and sheep and beef farmer Rick Powdrell have their biosecurity arrangements under control via the NAIT system.
tionships. “In the past, when I bought animals from saleyards or private sellers, I’d never really be sure how many times they’d been moved, or sure about their health,” Powdrell said. “Trading with Darryl and using the same local grazier, I no longer have those concerns. It provides more reassurance
on on-farm biosecurity and disease management.” He also believes it can only strengthen NAIT’s ability to trace animals more accurately and swiftly, when another disease outbreak occurs. Dairy and beef farmers who intend to rear calves for beef production should be mindful to update the animal pro-
duction type in the NAIT online system. From birth, all cattle are assigned a production type and this determines what farmers pay for their TB slaughter levy. It is therefore important farmers regularly check their NAIT accounts to ensure all animals are registered accurately in the online system before moving off-farm.
To ensure they’re paying the correct slaughter levy, farmers can change the animal production type. But they must do the update in the NAIT online system 62 days before the animals go for slaughter. “If you’re a beef farmer, don’t assume that because you are registered as a drystock farm in the NAIT system you
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There’s no good time to have toxoplasmosis and campylobacteriosis. But there’s a really good time to vaccinate.
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When you think abortion storms, you probably think toxoplasmosis. Toxoplasma is everywhere and any ewe that contracts it may abort. But campylobacter also causes abortion, is nearly as prevalent and equally as deadly. Campylobacter can cost you 20-30% of your lambs. There are two diseases that cause abortion storms and preventing them takes two vaccines. So talk to your vet about how the Toxovax® + Campyvax4® combination gives you the best protection against abortion storms.
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BETTER COMMUNICATION between dairy and beef farmers can strengthen animal traceability and disease management, claims Bay of Plenty farmer Rick Powdrell. Powdrell runs a 382ha drystock operation managing cattle and sheep and sees mutual biosecurity benefits from closer cooperation, having undertaken a business arrangement with nearby dairy farmer Darryl Jensen. “Both of us are better off. My set-up with Darryl, where animals move between our farms, reduces the risk of disease spread with farmto-farm movements localised and fewer,” he said. “We always know the animal’s history and spend less time recording movements in NAIT, which reduces the chance of errors creeping into the system.” Jensen’s decision to hold on to his bobby calves and rear them for beef production reflects an increasing trend among dairy farmers. This development is creating more opportunities for dairy and beef farmers to engage and build rela-
RURAL NEWS // DECEMBER 17, 2019
24 MACHINERY & PRODUCTS
High rise cargo in the wings? MARK DANIEL markd@ruralnews.co.nz
WHILE TELESCOPIC handlers are increasingly popular on New Zealand farms, the arrival of German tractor maker Fendt in the sector takes things to a higher level – literally in the case of the operator. Fendt had desired to be a ‘long-liner’, and the cargo designation had already been ‘pinned’ to the company’s frontload-
ers. Now a T-designation marks the arrival of its first telehandler. Built in a co-operation with the German builder Sennebogen Machinefabrik – known for its port cranes and HD telescopic handlers – Fendt’s Cargo T955 has a maximum load capacity of 5.5 tonnes with a lift height of up to 8.5m. Its standout feature is a unique lifting cabin that also has vibration damping.
It has the key advantages of a conventional telehandler – reach, overall lift height, low body height and high manoeuvrability. And its cabin can rise in tandem with the telescopic arm to a maximum height of 4.25m, giving an exceptional view of the job at hand. It has no dashboard to obstruct the lower part of the front screen, so there’s floor to ceiling visibility -- particularly useful when placing
loads at high levels or filling high-sided trailers or truck bodies. Fendt says that even raising the cabin by 20 to 30 cms from its normal ‘parked’ position gives visibility only normally achieved by heavy duty, wheeled loading shovels. It weighs a hefty 11.8 tonnes, is powered by a 4-cylinder 165hp engine, has a 200L/min hydrau-
Fendt’s Cargo T955 has a maximum load capacity of 5.5 tonnes with a lift height of up to 8.5m.
lic system, 40km/h road speed and 2.4 tonnes lift capacity at maximum
reach. Rural News has yet to learn on whether the
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LIGHTER, LOWER-COST SAFETY DEVICE FOR QUADS AG-TECH INDUSTRIES has added a lighter, lower cost item to its QuadGuard range of crush protection devices (CPD). The company is already known for its ATV LifeGuard – a flexible CPD that folds around to create a ‘survival space’ for a rider during a rollover. The new model weighs only 7.2kg, about half that of the LifeGuard product. It comprises a plas-
tic arch that flexes during a rollover to absorb the impact and protect the rider. It can also create a survival pocket under the machine. Ag-Tech says the structure’s greater rigidity may create more survival space in some situations than its more expensive CPD. Unlike the LifeGuard, which may be re-used after a rollover, the QuadGuard must be replaced if it has been deformed. In use, the
LifeGuard will require more maintenance to ensure the integral cables are kept at the correct tension, whereas the QuadGuard has no moving parts. The QuadGuard has five years life expectancy which will be monitored annually and confirmed in 2024. Whereas the LifeGuard can be used indefinitely subject to regular maintenance and eventual refurbishment.
www.malonefm.co.nz
MOWERS
MOWERS, TEDDERS
COME STANDARD WITH QUICK
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UNIQUE
HOOKED
TINE
BLADES
AND MORE...
NORTH ISLAND www.gaz.co.nz Call Jarred L’Amie | 027 203 5022 CAMBRIDGE | OTOROHANGA | ROTORUA
RELIABILITY & LONG SERVICE LIFE NATIONWIDE
DELIVERY
AG Traction | Taranaki (New Plymouth) Trent Hall 027 231 1797 | 06 759 8432 Country Machinery (Palmerston North) Dean Booth 027 550 7986 | 0508 762 574
RURAL NEWS // DECEMBER 17, 2019
MACHINERY & PRODUCTS 25
Top-notch water on tap around the farm and its houses MARK DANIEL markd@ruralnews.co.nz
YOU CAN take a cow to water, but can you make it drink? Unlike horses, the answer is yes, if the experiences of the van Ras family in Waikato are anything to go by. Waiorongomai Valley Farms lies near State Highway 27, just north of the Tatua Dairy Company. The property of 76ha (66ha effective), carries 215 milkers and 52 followers. It’s mostly grass with 8ha of forage maize. A few years ago, the family was dealing with poorly children, so tested the water, discovering problems with E-coli and high nitrate, copper and
manganese levels. They first addressed the E-coli issue with a UV filter system, while continuing to use a sand-based primary filtration system. Looking for even better water quality, they trialled an Acqua system offered by Davey water treatment. Self-contained in a cabinet, the unit only needs a level base, water inlet and outlet connections and an electrical connection. The process starts by testing the original supply from the bore to design a system that deals with the problem areas. Claudia Knarston, dairy sales territory manager for the Acqua, says this aspect is important to farmers.
Davey water treatment’s Acqua system has been a good investment for Waikato dairy farmers the van Ras family.
“Unlike off the shelf solutions, we tailor the system to suit individual problems, monitor via ongoing testing and tweak to deal with any
changes.” At the van Ras property, the cabinet houses the treatment system. The water is chlorinated from the bore,
passes through a contact vessel, followed by a multi-media filter and a large vessel that contains replaceable media to remove iron and manganese. Richard van Ras says this gives them “town water quality without the smell of chlorine.” Also, nitrates are removed from the water by an ion-exchange system that filters it through a bed of nitrate specific resin. This causes nitrate ions to be replaced by harmless chloride ions in the treated water. Once the resin capacity is exhausted, the system is regenerated using a concentrated brine solution that reverses the process by
reinstating chloride ions in the media while flushing the nitrates to waste. In practical terms, Johan van Ras sees major benefits from the treated water supply. “Out in the paddocks there are no longer any queues for fresh water. The cows just wander up, drink, then go back to pasture. “We have also seen a significant drop in cell counts since the system was introduced and believe the fresh water is delivering better efficacy for things like teat sprays and dairy detergents. “In addition, our yields are up, with the only change being a ready supply of clean water, while the water in the homes is much nicer and
we are not seeing any clouding of glasses from the dishwasher.” A key part of the installation is Halo Premium monitoring of water levels, usage, chlorine and salts levels, with a text message sent to the users’ mobile phones if there are any problems. Johan van Ras says the system, although costly, gives them peace of mind, ensuring they have clean water on the farm and in the houses. “We typically treat about 30 cubic metres of water each day on average, with the only consumables being salt and chorine. That costs about $2000 per annum, a small price to pay for topnotch water.”
FARM MACHINERY STRENGTH / QUALITY / PERFORMANCE
Bale Feeders
TR ROTOWIPER
Trailing model towed by a 4 wheel bike
FANTASTIC NEW FEATURES!
• Single height adjustment • Roller drive disengagement • Fold-up drawbar • Tank leveller adjustment
• New strong design frame • New stub axle hub arrangement • All covers now stainless steel
Forage Wagons
Manure Spreaders
Rotovacuum: 350lt bin, Stihl BG86 blower motor. Great suction to clean your paddock or garden.
Tip Trailers
Rotocart: RC270, RC300 & RC500. 3 sizes, super strong rotationally moulded in our factory.
48 Bremners Road PO Box 333 Ashburton www.rotowiper.com P: 03-308 4497 M: 027-311 9471 E: rotowipersales1@gmail.com
www.mcintosh.net.nz FREEPHONE: 0800 622 276
RURAL NEWS // DECEMBER 17, 2019
26 MACHINERY & PRODUCTS / RURAL TRADER
QUADBAR
595
$
+GST delivered
Proven beyo nd do ubt! “I have no doubt that if I did not have a Quadbar fitted, my accident would have been fatal!” – Rozel Farms “The Quadbar saved our employee from significant injuries.” – Colin van der Geest
Recommended by Worksafe. ACC subsidy available
For a Quadbar, call me, Stuart Davidson, owner of Quadbar NZ, on 021-182 8115. Email sales@quadbar.co.nz or for more info go to www.quadbar.co.nz
Lemkin launches selfpropelled sprayer MARK DANIEL markd@ruralnews.co.nz
600 500 400 300 200 100 0
QUADBAR 5 YEAR SURVEY
NUMBER OF QUADBARS 479
ROLLOVERS 61
NUMBER OF DEATHS 0
FOLLOWING ITS 2017 partnership with a chassis manufacturer, Lemken has unveiled its first selfpropelled sprayer that will go on sale in mid2020. The new Nova range offers tank volumes of 4800 or 7200L and working widths from 24 to 39m. The cabin has sound insulation to reduce noise and stress, while the optional Category 4 three-stage air filter system creates a permanent positive pressure in the cab to prevent fumes from entering. Automatic climate control, Bluetooth radio and plenty of stor-
Heiniger New Zealand | (03) 349 8282 | heiniger.co.nz
The new Nova range offers tank volumes of 4800 or 7200L and working widths from 24 to 39m.
age make long days pass easily. An air-suspended seat houses all key controls in the armrest, incorporating a joystick with numerous freely assignable function keys for personal configuration. Application technology is controlled via the Lemken MegaSpray on the CCI 800 or CCI 1200 terminal. Functions
Free Range & Barn Eggs SUPPLIERS OF:
Wipe Out
• Nest boxes - manual or automated • Feed & Drinking • Plastic egg trays
Walco Will Help You to Wipe Out Your Weeds
Apply Chemical in the Breeze, Only Apply Chemical to weeds Easy to Use, Easy to set up, Easy to Flush System after use Two rows of Wicks for double contact with weed Bruise bar to scrape plant for better Chemical application Well Built, Strong & Durable Frame Sizes: 2.4m, 4.8m or 6.2m wide 2 Year Warranty - We’ll Look After You Buy Walco = Buy Quality
QUALITY PRODUCTS MADE IN EUROPE OR BY PPP
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A trusted name in Poultry Industry for over 50 years ❖
include width section and application rate controls, GPS track guidance and job management. The chassis of the Nova has telescopic axles for adjustable track widths from 1.8 to 2.3m, with hydraulic actuation as an option. Hydraulic track width adjustment is available as an option. Able to take tyres from 300 to 650mm widths, the all-wheel drive system ensures the rear axle always tracks precisely behind the front unit. A ground clearance of 1.20m provides good protection for crops. Meanwhile, the optional hydraulic lift system raises the chassis to a maximum of 1.60m. Independent, hydro-
pneumatic wheel suspension is said to deliver a particularly smooth ride while also keeping the boom in balance on uneven terrain. The aluminium boom has the maufacturer’s AdaptiveBalancingControl (ABC) with automatic, proactive guidance, which keeps the boom in an optimum position and maintains the correct distance to the target surface. Up to five sensors ensure that the individual boom arms adapt directly to uneven terrain or changes in the crop The height-adjustable induction hopper holds 55L and is prepared for a closed transfer system (CTS).
Rubber Safety Matting
Ring Walco NOW for Your Nearest Stockist of these Robust Wipers Ph 0800 853 002
info@walco.co.nz
Helping Farmers Boost Production
www.walco.co.nz
ONE STOP WATER SHOP 300mm x 6 metre .......................... $410 400mm x 6 metre .......................... $515 500mm x 6 metre .......................... $690 600mm x 6 metre .......................... $925 800mm x 6 metre ........................ $1399 1000mm x 6 metre ...................... $2175 1200mm x 6 metre ...................... $3475 ALL PRICES INCLUDE G.S.T.
• ATV Carrier Mats • Exit/Entry Areas • Calf Trailers • Horse Floats & Trucks • Weigh Platforms • Bale Mats • Comfort Mats for Wet & Dry Areas • Utility Deck Matting
Phone: 0800 80 8570 www.burgessmatting.co.nz
CULVERT PIPES
New Zealand’s CHEAPEST Culvert Pipes! FREE joiners supplied on request. • Lightweight, easy to install • Made from polyethylene
McKee Plastics Mahinui Street, Feilding Ph 06 323 4181 Fax 06 323 4183
sales@mckeeplastics.co.nz | www.mckeeplastics.co.nz
Phone
0800 625 826 for your nearest stockist
Joiners supplied FREE with culvert pipes
RURAL NEWS // DECEMBER 17, 2019
RURAL TRADER 27
YOUR ADVERT HERE
• Made in NZ • Saves lives • Flexible Weighs 14.6kg
WILTSHIRE & SHIRE®
FLY OR LICE PROBLEMS?
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07 573 8512 | dipping@electrodip.co.nz – www.electrodip.com
➤
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+ GST & Freight
RECOMMENDED BY WORKSAFE 0800 782 3763 | info@atvlifeguard.co.nz
www.atvlifeguard.co.nz
For details contact: JULIE BEECH Ph 09-307 0399 •
DOLOMITE
www.ruralnews.co.nz
NZ’s finest BioGro certified Mg fertiliser For a delivered price call... 0800 436 566
Heiniger New Zealand | (03) 349 8282 | heiniger.co.nz
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BUFFALO BOOT & RAINWEAR sale! SLIP ON
LACE UP
$115
$120
valued at $280
valued at $320
STEEL TOE (without Scuff Guard)
PLAIN TOE (without Scuff Guard)
PLAIN TOE (without Scuff Guard)
all boots will be delivered Jan 9am-5pm
0800 16 00 24
ONLINE
$66
STEEL TOE X (with Scuff Guard)
STEEL TOE X (with Scuff Guard)
PHONE
FLEXISKIN MAX
JACKET
all boots will be delivered Jan
earthwalk.co.nz
CHEQUES
earthwalk, r d 2, palmerston north please add $12 freight per order
valued at $230
DEFINATELY ENDS 31 DEC - WHILE STOCKS LAST! BIB OVERALLS
$55
valued at $160
100% Waterproof
Flexible Acid Resistant Durable Seams
Fleece Collar Hood Visor
Early Bird Sale!
save $44 - $58 per person.
FLEXISKIN MAX
rainwear arrives April some sizes sell out fast
sizes: BOOTS 7 - 13 (NZ)
LEGGINGS
$44
valued at $140
RAINWEAR XS - 4XL
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