southdowns
lawns with stripes
The fastest lambs off the back blocks? feature 43-46
British mower remains big favourite. page 49
Rural NEWS
lamb supply outlook Feedback from the north-east.
page 13
to all farmers, for all farmers
october 18, 2011: Issue 502
www.ruralnews.co.nz
Sector can be saved SUD ES H K I SSUN
THE PSA-PLAGUED kiwifruit industry is in for a couple of rough years, says Agriculture Minister David Carter, but he’s confident the industry will be saved. Speaking to Rural News last week after a visit to Te Puke-based Kiwi Vine Health, the organisation leading the Psa battle, he said the situation is “very serious”. But he’s impressed by the research
response to combat its spread and select cultivars that will cope with the disease. “I’m confident the industry will survive but am not sure how long it will take to find solutions,” he says. Carter’s visit came as more parts of the region were declared high risk zones and had strict biosecurity measures imposed. The zones are Te Puke (317 infected orchards), Tauranga (6), and Waihi, Katikati and Whakatane (one each). Carter says 14% of New Zealand’s
kiwifruit area is in orchards with Psa. “These are trying times for kiwifruit growers. The situation is serious…. Twelve months ago we did not how Psa would manifest itself in New Zealand: now we are seeing the real effects of the disease.” Horticulture New Zealand president and affected kiwifruit grower Andrew Fenton agrees the situation is serious. While the 2011 crop is holding up and cashflows are strong, growers are brac-
From left Minister of Agriculture David Carter, the Plant and Food kiwifruit manager at Te Puke Dr Stuart Kay, and the local MP and Minister of Health Tony Ryall at Te Puke last week. Photo: Te Puke Times
ing for at least a 20% lower crop in 2012. He’s lost about a dozen vines to Psa already and does not have high hopes for next season. “The question is how quickly [it] moves through my orchard.” Carter predicts the production drop here and elsewhere in the world will cause a price spike, providing “some relief to growers and other stakeholders.” However, Fenton says the effect on next year’s crop could be worse than the forecast 20%. “It is still moving through and whether we end up having a full crop, half crop or no crop at all remains to be seen. I don’t know whether there will be only a 20% drop in yield. Its early days... it could be more but definitely won’t be less.” Fenton says the disease isn’t just bad news for growers; it’s dire for affected regions’ economies too, particularly Bay of Plenty. New Zealand’s 2700 growers produce 110m trays or 400,000t of kiwifruit every year off 13,350ha of orchard, split 80% green, 20% gold. About 80% is in Bay of Plenty. Exports fetch at least $1.2 billion. Fenton says the industry has just not been a star performer, driving up to 15% of economic activity in the Bay of Plenty region. A downturn in the industry will have major impact on areas like Katikati and Te Puke. The industry is getting support from the Government and the banks but he’s unsure how long it can survive. “Right now the kiwifruit industry has a precarious future, in one or two years it might have fully recovered or be totally wiped out.”
Culture shift the big ask p e t e r bu r k e
CHANGING THE culture is the biggest challenge facing the meat industry, says KPMG’s Ian Proudfoot. He told Rural News that is the only way the Red Meat Sector Strategy (RMSS) can be implemented. However, changing the culture of the meat industry will be much harder than it would be in some other primary sectors, he says. “The key will be to achieve a culture change and then create a process that can sustain and drive that culture change into the future. At the moment I’m not clear on what mechanisms are being proposed to achieve that.” Proudfoot says the culture to date has been one of ‘independence’, but one of the key themes to come out of the KPMG Agribusiness Agenda in June was on the need for collaboration. “There is growing realisation that we are a relatively small producer on a global scale. If we are going to be successful on international markets, there is a need for increased collaboration. One of the key points in a culture-change process is how you bring people together to get them to work collaboratively.” In some areas people are exploring how to work collaboratively and this is positive. “However there needs to be to page 3
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