ATS News August 2011

ATS News AU GU S T / S E P T E M B E R 2 0 1 1

Rakaia lily bulbs prized worldwide Proactive water monitoring Commodity returns face solid platform for future

www.ats.co.nz

From the CEO Spring is rapidly approaching, and with it comes a new farming season.

Instore Days traditionally kicks off the spring season for ATS and this year the feedback and results were very positive, with a general feel of confidence across all sectors of our farming community. These days are designed as a way for Members to take advantage of some great deals and catch up with friends.

In this issue of the ATS News we feature some highlights from this year’s event including details on the winning supplier stands. This event would not be possible without the support of ATS Card and Retail suppliers who recognise the opportunity that a partnership with ATS brings.

July is normally a quiet time for harvesting crops; however it’s the middle of the harvest season for flower bulb production and in this ATS News we highlight the Royal Van Zanten bulb growing operation based at Rakaia.

Many commentators are predicting a positive outlook for farmers with commodity prices across all sectors looking strong for the season ahead.

ATS News asked Richard Rennie to dig a little deeper to highlight what is driving these predictions and question if it’s sustainable.

We also highlight Bryan Beetson’s approach to managing water resources, and the financial and environmental benefits he gets from proactively managing his water supply for his dairy farm.

Upcoming Events 24 August

Contributors

FAR Arable Y’s, Ashburton

Anita Body, Ian Hodge, Pip Hume, Ele Ludemann, Richard Rennie, Delyse Dixon and Dr Rob Derrick

For more info contact FAR office 03 325 6353

4 September Join Jock Ross and Living Legends at the Harris Scientific Reserve, Ashburton

Photography Nikki Craig, Essence Magazine and Noel Lowe

For more info visit www. livinglegends.co.nz

Advertising Enquiries

13 September, 12.00am

Please contact the Marketing Department on:

FAR Women in Arable, Ashburton For more info contact FAR office 03 325 6353

Tel: 03 307 5100 Email: marketing@ats.co.nz www.ats.co.nz

21 September

Editorial Enquiries

FAR Arable Y’s, Ashburton For more info contact FAR office 03 325 6353

With spring just around the corner we hope the weather treats you kindly and you get the opportunity to take some time to read the latest news from ATS.

Our team welcome your contributions, enquiries and letters.

Please post or email to: Dave Jackson Marketing Manager dave.jackson@ats.co.nz

Front Page Photo Damian Hughes, Royal Van Zanten

Neal Shaw, Chief Executive

ASHBURTON

METHVEN

RAKAIA

HEAD OFFICE

97 Burnett St Tel: 03 307 5100 Fax: 03 307 6721 ashburton@ats.co.nz

91 Main St Tel: 03 303 2020 Fax: 03 302 8184 methven@ats.co.nz

68 Elizabeth Ave Tel: 03 303 5440 Fax: 03 303 5430 rakaia@ats.co.nz

PO Box 131 Ashburton Tel: 03 307 5100 Fax: 03 307 6721 ats@ats.co.nz

DISCLAIMER: All information contained within ATS News is to the best of the author’s knowledge true and accurate. Opinions expressed are those of the author and not of Ashburton Trading Society. Items herein are general comments only and do not constitute or convey advice. This newsletter is issued as a helpful guide to members.

www.ats.co.nz

pg2 Rakaia lily bulbs prized worldwide Lily bulbs grown in the Rakaia area have earned an enviable reputation for their vigour and robust nature, making them highly desirable and sought after by customers the world over

pg5 Commodity returns face solid platform for future

After the euphoria that greeted the surge in commodity prices back in early 2008, farmers could be forgiven for being more reticent about joining the party this time around

pg16 Proactive water monitoring

All indications are that the amount of scrutiny the agricultural industry is subjected to will only increase in the future

Contents 9

Mastitis in Dairy Cows

1 1

Farming people

1 3

Spring planting options

1 5

Opinion—Ele Ludemann

9 1 23 2 9

Kids Page

31

Accelerating your spring crop

Riverside Vets

Hazlett Rural Limited

ATS Seed

Thoughts from across the river

ATS Instore Days 2011 Moving forward

Stocker Dairy Services

Ballance Agri-Nutrients

3 3

More than contracting

3 5

Feeding for fertility

37

An 11% return from Dairying?

2 4 4 5

ACL

Seales Winslow

Property Brokers—Hasting McLeod Ltd

News at ATS Classifieds

Rakaia lily bulbs prized worldwide

Lily bulbs grown in the Rakaia area have earned an enviable reputation for their vigour and robust nature, making them highly desirable and sought after by customers the world over. By Anita Body

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Mid Canterbury has long been hailed the country’s foremost arable production base, and in recent years it has seen wide and varied diversification into numerous crops, including bulbs.

While flower bulb production is still very much a small player nationwide, one Dutch company saw the potential the region had and its production has grown steadily since arriving here 12 years ago.

Royal Van Zanten has about 150 years’ experience in the floriculture industry, and is the Dutch parent company of Van Zanten Flowerbulbs Ltd which has operated its New Zealand lily bulb operation since 1999. Royal Van Zanten is a group of companies producing and trading in vegetatively propagated plant material for commercial flower growers. It has operations in such places as the Netherlands, France, Australia and New Zealand.

The international company came to New Zealand to set up a Southern Hemisphere lily bulb operation to complement and fill the gap left by the Northern Hemisphere season and settled on Rakaia as a location.

Rakaia has surpassed expectations. Not only has it contributed to the “off-season” bulb supply originally sought, but it has also produced a consistently high quality bulb thanks to the excellent growing conditions the region offers.

Lily bulbs need plenty of sunshine, a cold winter to get them in to a dormant state, regular water during the summer months, and a deep soil structure with no stones which is well-draining. The local free-draining Barhill silt loam and Chertsey silt loam soils combined with reliable irrigation, and the Mid Canterbury climatic conditions suit the lily bulb well.

Production has steadily climbed over the last 12 years.

Initially only eight hectares were grown in 1999. By 2005 that had increased to 50 hectares, and this year to around 100 hectares.

Lily bulbs are exported to such destinations as Japan, China, Vietnam, Taiwan, USA, Canada, Europe and Australia but are also sold to flower producers in New Zealand.

Locally based general manager Damian Hughes has been with the company for two seasons and during that time he has experienced one of the wettest winters and mildest autumns in many years.

Like any crop, bulbs are susceptible to the wrath of Mother Nature, but because of their slow-growing habits, the losses incurred can be much greater. When breeding a new variety, it can take 10 years from concept to actually taking it to the market.

can be sold for flower production. The total process therefore can take three to four years.

The crop is grown by Van Zanten Flowerbulbs Ltd and two local contract growers who provide invaluable support and expertise. Without their support the operation would not have been able to develop to the level it is today.

Bulb crops are grown locally to help streamline the operation and keep transport costs down. Three fieldwashing sites are used to remove larger plant and soil waste from the bulbs before being transported to the processing shed.

Harvesting or digging of the bulbs once they are dormant, typically occurs over a 10 week period beginning mid-May and ending late July. Beyond the end of July the risk of the weather warming up and breaking the bulbs dormancy increases.

Once the bulbs arrive at the processing shed, they are further washed and sorted. Rainwater is collected for much of the washing operations and it is reused and recycled on site reducing the need for any large scale ground water abstraction.

Bulbs are graded by weight for each size as each size produces a different number of flowers. In broad terms a larger bulb will produce more flowers. Different customers have different requirements, and Royal Van Zanten operates an open door process to ensure it is meeting its customers’ needs.

The biggest demand for bulbs comes from Asia, and customers often visit the Rakaia operation during the year to see the crop growing and being processed.

During the processing season, staff numbers at Rakaia swell from the core team of a dozen, to around 160 staff working two shifts (day and night) in the processing shed. A local contractor supplies all the seasonal staff and is invaluable in achieving an efficient processing season.

Damian says speed and quality are essential when working to such a tight timeframe and production targets are a good way to achieve that balance.

A combination of machinery, technical equipment, computers, and staff sort, size and count the bulbs.

Most of the machinery and equipment used is specialised and because of limited availability in New Zealand, has to be imported. Local businesses are employed for any maintenance and repair work.

Bulbs must be soil free before they are exported

Throughout processing the bulbs have to be kept cool and ventilated as they are still alive and breathing. Cool stores with ventilation systems and specialised storage boxes are used to achieve this.

The company leases all the land needed to grow bulbs. Currently it is working with around half a dozen local farmers, and coincidently all are ATS members.

All of the land owners involved make a valuable contribution to the business and their support is appreciated.

At the end of the process the bulbs are packed in peat in plastic crates with cardboard lids and then kept as cool as possible and then frozen. Freezing slows the bulbs’ respiration rate right down, conserving as much energy in the bulb as possible. They stay frozen until they reach their final destination.

Virus free bulbs are supplied by Royal Van Zanten’s Dutch base, and are broken up in to their individual scales and either planted for two years, or prepared in heated rooms and then planted for one year to produce planting material.

The bulbs are stored off-site in Timaru cool stores before being shipped to their export destination in chilled containers.

The planting material or young bulb is then planted for another one to two years to produce a bulb that

Damian Hughes

Van Zanten’s commitment to Rakaia, its local farmers, contractors and other service providers is solid. There’s no doubt the region is an ideal base for bulb operation and demand for the product supports this view.

Locally grown blubs are harvested

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The lily bulb process

Harvesting or digging of bulbs

A field wash is completed on the bulbs

The bulbs have been graded into size and are ready for packing

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The bulbs are packed in peat in plastic crates

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Unwanted material is removed from the bulbs

Once packed, the bulbs are refrigerated until exported

Commodity returns face solid platform for future After the euphoria that greeted the surge in commodity prices back in early 2008, farmers could be forgiven for being more reticent about joining the party this time around. By Richard Rennie The rising tide of debt that accompanied prospects of continuing high returns left some stranded with the high costs and debt, no longer underpinned by the promise of capital gain or on-going strong returns.

Today’s $45 billion rural sector debt hangover is one that will be nursed for a few years yet.

Meanwhile many in the agri sector are wanting to know if the promise of strong commodity prices will continue, allowing more confident borrowing for those wanting to expand, and more certainty on debt repayment for those who have expanded in recent years.

The dairy sector anticipates record value of sales at NZ$13 billion this season, with a quiet confidence that in general dairy commodity prices can be sustained.

This optimism comes despite an easing in Fonterra’s Global Dairy Trade figures, dropping 7% in the July 5 auction, on top of a further 2% fall earlier.

NZX Agrifax dairy analyst Susan Kilsby says while prices may soften slightly in coming months, she does not expect them to fall too far.

“Several factors are underpinning prices. These include high costs of production in northern hemisphere grain fed markets, with corn and hay prices are also very high at present.

“Also growing global demand for food is a key fundamental which underpins prices. Global milk production has been strong during the second quarter but prices haven’t fallen away very much indicating demand is absorbing the increased supply.”

She notes unlike several years ago when subsidies were in full swing through the EU, there are no large global stock piles of products anywhere.

Fonterra chairman Henry van der Heyden has told suppliers to expect a Milk Price for this season of around $6.75/kgMS, and a distributable profit of 40–50¢ a share—although this comes with the caution of a recent softening in dairy commodity prices and a higher exchange rate.

On the demand side of the dairy equation, several factors are coming to bear to support the belief a higher price platform for dairy products globally is emerging, and indeed also for the other protein products New Zealand farmers produce.

The first driver is something New Zealanders take for grantedfood safety. After the San Lu milk powder scandal in 2008, Chinese consumer confidence fell to a low. Even as late as this year a survey by China Central Television found 70% preferred imported milk powder. Even here in New Zealand supermarkets have had to ration baby milk powder after large purchases saw stock outs, with consumers sending it back to China.

A demand, and ability to pay, for safer food is being driven

by China and India’s rapidly growing middle classes.

While Chinese incomes remain low by Western standards, averaging US$7000pa, there is a burgeoning middle class of over 180 million emerging from China alone that earn US$8000–$9000pa.

Even the rural sector with its low average of US$1000pa has managed to grow incomes 15% in the past year as the government aims to iron out inequities between rural and urban standards of living.

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Typically as incomes grow diets move from traditional starchcarbohydrate based products to energy dense protein foods.

China and India are following this trend. Surveys from the China Global Advisory Service indicates the “sweet spot” for increased intake of protein comes when incomes hit the US$2000– 5000pa. Protein consumption almost doubles over this band.

Animal protein consumption alone now averages 80kg per capita per year in China, against New Zealand’s 120kg. With half its rural work force still to make the average urban salary, potential exists for another 700 million to experience a major leap in incomes, and animal sourced protein intake.

Population growth, and the need to feed masses to maintain social order, will also be driving demand and prices.

While China eclipses much of New Zealand’s trade news, India will supersede China for population by 2050, thanks to its higher birth rate of 2.2 children per couple. China’s “one child” policy or 1.8 children per couple rate will see its population stall by 2050 at 1.46 billion, to India’s 1.5 billion.

Well before then however Fonterra predicts Chinese per capita demand for dairy will double in the next 10 years alone, closely paralleled by India.

Meantime global supply for dairy remains tight.

China is ramping up its ability to supply milk within the border, but it is stuck with only a third of the global average of water per capita, and dairy is a water hungry production system.

New Zealand’s next closest export competitor is Australia, but here too climatic conditions have seen stock numbers plateau, and even fall in some states.

Tight supply forms a similar story for sheep and beef prospects, with beef prices now sitting 20% above a five year average, despite a record high dollar.

Beef and Lamb New Zealand market development manager Craig Finch says the agency feels strongly optimistic about prospects for both meats, for at least the next three seasons.

He appreciates while beef farmers may well get nervous about a dollar approaching US87c, there is still an on-going demand 6

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for Kiwi beef that has to be met in the US. Leaner grass fed beef is ground with grain fed for burger patties and meat products, and New Zealand is in the box seat to continue meeting that supply.

“South America is not proving the threat we thought it would—Argentina has an export ban in place and Brazilian farmers are switching to soy bean production. Australia is pushing more beef into Russia, meaning some months have passed with no beef from there going in to the US, leaving a gap for New Zealand to fill.”

He expects New Zealand will once again struggle to fill its 213,000t pa quota to the US this season.

Meantime New Zealand’s reliance on the US market has also eased, with the US accounting for 43% sales by volume, compared to 55% only 10 years ago. Higher value markets like Russia and the Middle East are rapidly emerging, while New Zealand has barely tapped into the potential of the rapid growth of takeaway chains in China yet.

“And for US feed lot operators it is proving expensive to rear beef with wheat prices higher, and they are competing against a huge infrastructure for bio fuels that was commissioned under President Bush.”

It is a similar supply story for lamb. Rabobank predicts the demand for lamb to continue to grow 2% pa on average for the next 10 years in developing markets, more than offsetting a 1.2% decline in traditional European markets.

However New Zealand’s ability to meet that growth will remain challenged. Beef and Lamb NZ data highlights the massive decline in the past decade alone—finishing and breeding farms have dropped 45%, and total sheep farm area has dropped from 10.1m ha in 1990 to 8.4m ha in 2009.

“The story is global too—other sheep meat countries have also had major drops in flock numbers, the EU 10%, the UK 13% in only five years,” says Finch. New Zealand’s supply may tighten further as farmers rebuild capital stock in the coming year, again making it difficult to fulfil the 228,000t sheep meat quota with the EU, and keeping prices firm.

Grain outlook positive in a volatile market.

Expectations are for grain growers to share in the higher global commodity returns over the coming year, although price volatility is the greatest of all the main food commodities at present.

contract prices for 2012 wheat are at $400-$410/t, and $370$380/t for barley.

Federated Farmers mid-Canterbury chair David Clark says growers are “cautiously optimistic” about the coming season, with free grain prices starting around $450/tonne.

“Going back to last July we had the Russian drought limiting crops, a poor harvest in the US, huge floods in Australia and then a drought in the EU. There is little likelihood of decline in prices, and New Zealand growers also benefit from the continuing growth in demand for grain for dairy feed.”

“However remember that prices while up, are for a poor harvest, with yields back by 20 to 25%.” He notes some growers had also earlier contracted at prices significantly lower than the spot market.

While international wheat futures dropped 12% in late June, supplies are still tight globally, in part thanks to unfavourable climatic conditions. Demand for grains remains strong both as a food ingredient, and as a primary feed source for feed lot cattle either for finishing beef or feeding dairy cows.

Most recently the heat wave hitting the United States in later July at the critical pollination stage for crops in the Mid-west is feeding expectations corn prices will be pushed higher with poorer yields.

“And if corn gets pushed up, wheat will usually follow. The flip side is however that we have seen some peeling back of commodity prices in general in recent months,” says David Clark.

Analysts remain optimistic prices will remain firm however.

Grain marketer One World Grain reports unexpectedly large sales of corn to China, buying 540,000t for an August shipment from the US, more than the anticipated whole year’s purchase.

A rise in corn prices generally sees wheat march in step as an alternative ration input.

Sarah Watson, New Zealand grain manager for One World Grain says local demand from the dairy sector for feed grain supply from now through to late summer is also helping provide growers with outlet certainty, and cash flow security. Forward

NZX Agrifax analyst Andrew Ward-Smith noted the ongoing climatic constraints on global grain production are continuing.

The US winter wheat harvest is also now well near completion with crop ratings slipping 1% to 35% of crop rated as “GoodExcellent”.

They continue to track well below last season’s rating of 64% classified as “Good-Excellent.”

David Clark agrees local cropping farmers can also take heart from the recent majority purchase of Winslow Feeds and Nutrition in Ashburton by the fertiliser co-operative Ballance.

Ballance also bought a stake in Seales Feed in the North Island.

“I think Ballance have a good deal to offer regarding grain feeding to dairy cows, and we are encouraging the use of local grains, that relationship with dairying is a fantastic symbiotic one.”

Ballance CEO Larry Bilodeau believes the move will instil greater confidence to local grain growers about prospects of supply opportunities.

At this year’s Mystery Creek fieldays he said Ballance’s focus was to be on processed blended product rather than bulk commodity feed like palm kernel. He also emphasised the company’s vision of “local farmers using local products.”

Winslow Group’s Managing Director and new Board director of Seales Winslow, Craig Carr says he believes farmers see it as an excellent move with two New Zealand companies doing business with New Zealand farmers.

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Rough teat end lesion

Mastitis in Dairy Cows Mastitis in dairy cows gets significant attention because of the financial implications of having high levels of the disease in herds. By Ian Hodge, Riverside Vets The size of herds in the Canterbury area adds even more significance to the potential for lost income. Calculating the true cost of mastitis in herds must include the actual cost of treating clinical mastitis cases, the losses associated with culling, reduced production of replacement animals (heifers), per cow production levels and lost milk production. The cost of mastitis can easily add up to $60–70,000 per year.

Why is mastitis so common and why do we struggle to achieve good sustainable control?

Mastitis is common because we concentrate groups of cows together for reasonably long periods (in spring), we expose the teats to high levels of environmental bacteria , and we milk cows in large groups twice daily increasing the risk of cross infection between cows at milking time.

Control of mastitis to very low levels is difficult primarily because cows that should be culled (with chronic mastitis infections) are not culled, and they continue to increase the overall level of mastitis infection (the prevalence) in herds. Also cure rates of clinical mastitis during lactation and with dry cow therapy are variable, and the milking machines we are using are often (60% of the time) responsible for creating new mastitis infections.

Unfortunately milking management (personnel) is also a major reason (40% of the time) why mastitis is not well controlled.

The following diagram shows that mastitis is a truly multifactorial disease and why good control can be so difficult.

As I mentioned earlier, achieving (investing in) good control of mastitis is profitable and carries a high return on investment.

The basis of a good control programme is to study the interaction of the milking machines and the cows at milking time and from this identify key risk factors present that will increase the risk of mastitis.

Scientific research done in New Zealand has identified certain areas which carry increased risk for mastitis. One of these is teat end damage. Damaged teats are more prone to become infected and consequently lead to new intra mammary infections. To reduce the risk posed by teat end damage, herds should ideally have less than 5% of the cows affected. Our milking management assessments have shown the average level of teat end damage to be between 25–30%.

The milking machine can increase the risks for mastitis. Commonly vacuum levels are too high and fluctuating excessively, pulsation ratios too wide and liners inappropriate for the herd and the vacuum level.

Research in New Zealand has also shown that teat disinfection after milking plays a very important role in controlling cross infection between cows at milking time. Our research showed that out of 200 milking time assessments only 12% of farms were correctly teat spraying.

This season should be the start of a sound mastitis control programme on all dairy farms. The economic outlook is good, and the benefit from achieving good mastitis control will be very significant.

FARMER

MILKING MACHINES

ENVIRONMENT

MASTITIS

Riverside Vets are ATS Suppliers allowing members to charge services to their ATS Card.

Contact:

COW

BACTERIA

Riverside Veterinary Services Ltd Tel: 03 308 2321

Mastitis is the end result of complex interactions between the cow, bacteria, environment, milking machines and the farmer.

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Hazlett Rural Limited in full swing at Coalgate Saleyards

Farming people Mid-Canterbury Livestock Agents:

The rural services business is all about people. By Pip Hume With its team of “rural blokes”, Hazlett Rural Limited is committed to creating strong business relationships with its clients and providing a traditional level of service which has been somewhat lacking in the rural sector in recent times.

In line with its philosophy of investing in the right people to grow both Hazlett Rural Limited and the businesses of its clients, the company has chosen not to invest in bricks and mortar—with the exception of its share in the Coalgate sales complex.

ATS members are set to receive the benefits of this commitment, with the recently announced supplier partnership between HRL and ATS. To ensure that ATS members receive the best of service, HRL company founder David Hazlett will shift his dayto-day attention to the Mid Canterbury region, and will be assisted by new recruit and former local, Marty Amos.”

The saleyard complex is central to the company’s operations, and it was the strategic location on State Highway 73 that first brought it to the attention Hazlett Rural Limited.

Hazlett Rural Limited is a member of the New Zealand Stock and Station Agents Association and provides diversified rural services to farming businesses throughout Canterbury and the top of the South Island. Since David Hazlett began the business in December 2008, it’s been all about building a strong team of highly experienced personnel.

That focus on its people is at the heart of the company.

Our vision is to develop enduring client relationships and build an outstanding team of people so that HRL becomes the preferred service provider for farmers,” says General Manager Ed Marfell. “We want them to value the honest insight along with the knowledge and excellent service we can provide.”

“The most important thing we do is ensure that our clients’ receive great service and enjoy the experience of dealing with HRL. We put an emphasis on understanding their business as by doing this we are better able to ensure that they achieve the right outcomes. The timing with which things are done can be just as important as what is done.”

David Hazlett—027 235 5300

“With the growth of the dairy industry in Canterbury, traditional sheep and beef farming is to some extent being pushed into the foothills,” comments Ed. “The cartage costs to and from Coalgate are on a par with other saleyards but because we are rurally located access is much easier for the stock transporters.”

Currently the Coalgate complex handles large volumes of sheep, but Ed sees huge potential for cattle sales, particularly with the change in land use which is occurring in the region.

The saleyards were in a run down state at the time of purchase. There has been significant capital development of the site since, with upgrading of the drafting facilities and all of the sheep and cattle yarding areas together with the addition of cattle scales. Ed comments that they are probably only half way through that process, and a major building project is set to commence in the spring of 2011 which will see the existing Portacom buildings upgraded with the addition of an office block complex.

The future of HRL is inextricably linked to the fortunes of its farming clients and by progressively building the business around quality people and enduring farmer relationships, the management believe they will build a business which will maintain the quality of its service through the ups and downs that are inevitable in the rural economy.

Marty Amos—027 462 0122

Contact:

Hazlett Rural Limited 585 Wairakei Rd Bishopdale Christchurch Tel: 03 358 7989 Email: emarfell@hazlettrural.co.nz Web: www.hazlettrural.co.nz

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Spring planting options Many farmers will have already decided on their planting program for this spring; others may not yet be committed to a plan. By Tim Dale, ATS Seed The costs associated with the establishment of pasture and crops are significant—with so many pasture and forage options available, what factors need to be taken into consideration?

Options for new pasture include sowing perennial pasture after brassicas such as kale and fodder beet after they have been fed off, or sowing a short rotation pasture such as Italian ryegrass for spring and summer production. A further alternative is over-drilling of pastures damaged by winter grazing to regain production from your paddocks.

“Choosing the correct endophyte is one of the most critical decisions you will make.”

Decisions around seed type and variety need to take into account the production requirements of the farm and livestock. Choosing the correct endophyte is one of the most critical decisions you will make.

Assessing the suitability of the forage options available will depend on timing. It’s important to weigh up seasonal feed requirements and how the forage fits the required feed needs and paddock rotations, as well as the end use in terms of feeding time, quality and quantity.

Feed and forage options include rape (or a rape and grass mix) or turnips for spring/summer feeding.

These will typically be sown between August and October, as are forage cereals such as oats and triticale for grazing or silage production. Winter feed crops such as kale and fodder beet are sown between October and December, while maize for autumn silage production and lucerne are sown during October/ November.

Spring arable options include traditional cereal grains such as wheat and barley, sown between August and October. Pulse crops, for example

seed and process peas, are also sown between August and October. Brassica seed crops—Chinese cabbage, kale, and radish are sown between September and November. Other seed options include linseed and borage etc, which are sown in September/October.

“The input costs for seed production can be more significant than for other options, so crop gross margin is an important consideration along with payment dates for cash flow.”

The requirements around seed production may be more stringent than for pasture or forage production. There may be specific parameters around paddock history (previous seed crops and use of herbicides), and seed certification when you may require specific paddock isolation from other crops. The input costs for seed production can be more significant than for other options, so crop gross margin is an important consideration along with payment dates for cash flow.

Some important considerations for all forage and crop options are: • Grow varieties that suit your farming system • Feed production levels and quality • End user requirements and expectations • Soil type and fertility requirements Contact:

• Insect protection, weed and disease control at sowing and through the growing period.

The ATS Seed Team

• Crop rotations (past and future)

Tel: 0800 BUY ATS (289 287)

• Seed crop quality requirements

Web: www.ats.co.nz

• Input costs • Cash flow Contact your ATS Rep or ATS Seed now to discuss all your pasture and crop requirements.

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Thoughts from across the rivers The grieving family gathered round waiting to hear what a will reveals works well in fiction. By Ele Ludemann But secret succession plans are a recipe for disaster in real life where communication is the key to success.

It can’t start too soon and should aim for fairness which might not be equality.

“Simply splitting the farm and other assets, or their value, by the number of offspring gives everyone an equal amount but it might not be fair and could cripple the business.”

Farms which aren’t just a business. They are, and could continue to be, home to the owners and their family which adds emotion to succession planning and it’s more complicated if any offspring work on the farm. They could be contributing more than their fair share to income and capital value and often taking little out in wages.

There’s a further complication if more than one potential heir wants to farm unless the property is big enough for them all. Then, if any buy in to the farm at family rates, what happens to other siblings?

Simply splitting the farm and other assets, or their value, by the number of offspring gives everyone an equal amount but it might not be fair and could cripple the business.

“Farms which aren’t just a business. They are, and could continue to be, home to the owners and their family which adds emotion to succession planning and it’s more complicated if any offspring work on the farm.”

Then what happens if the property is subsequently sold? A clause in the succession agreement could ensure all siblings get a share of the capital gain, but is that fair and would, or could, they also share in a loss?

Another consideration is retirement income for the parents. Some succession plans still favour sons before daughters and mothers which is of particular concern for women. It’s neither equal nor fair if a widowed mother is left with little or no independent income when the farm goes to the next generation.

The Matrimonial Property Act should offer some protection but if the farm is in a trust it might not.

“There is no one way to get it right, but the stakes are high and getting it wrong can split families apart.“ Owners have the right to do what they will with their farm, including staying on it or selling up and spending the proceeds. However, most parents are happy for someone in family to carry on farming, while ensuring other members get a fair share.

There is no one way to get it right, but the stakes are high and getting it wrong can split families apart.

The best strategy is to start succession planning early, involve all the family, consult advisors, be open about figures and plans and take everyone’s wishes into account.

Ele Ludemann

Formal family meetings, held at least once a year are a good way to do this. Agendas should include opening the farm’s books and discussion on plans for the short, medium and longer term, including what happens when the parents are dead.

Some use an independent chair; others rotate the chair round different family members. Either way, it is important that everyone contributes their ideas and goals, feels comfortable doing so and that no one dominates discussion.

As one of our friends said, if their children aren’t still friends after he and his wife have died, it will be the parents’ fault. Good relationships will be more likely if succession planning produces an outcome which is fair, though not necessarily equal.

opinion by:

Ele Ludemann Web: homepaddock.wordpress.com

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Proactive water monitoring All indications are that the amount of scrutiny the agricultural industry is subjected to will only increase in the future. By Pip Hume

Mid Canterbury dairy farmer Bryan Beeston strongly believes that farmers need to be proactive in providing the evidence that they are making the best and most efficient use of the available resources— and particularly for Canterbury, the water resource.

Bryan is very clear about how he sees the future for dairy farming.

got the science now at an affordable cost to do the best we can with the water we have, both for the dairy farm and for the environment.”

This interest in sustainability is not just about water use either—the electricity costs involved in pumping water are considerable. Bryan spends around $20,000 per annum on each of his two irrigated dairy farms.

“In Canterbury, the right to extract water for irrigation effectively equates to a license to farm,” he says. “And it’s clear that if water allocation rights for farming are to be protected, farmers are going to have to prove beyond reasonable doubt that water is being used effectively and back this with reliable, independently verified evidence.”

“I need to be sure I’m not wasting resources,” he says.

With this in mind, Bryan has invested heavily in telemetric technology.

“The Resource Management Act is a good case in point,” says Bryan. “It was good legislation initially when it was introduced, but the rules seem to change every couple of years.”

His system is based on the use of Aquaflex soil probes powered by solar panels, which measure both soil moisture and soil temperature. The soil moisture is measured at three different sites, at depths of 75mm to 200mm. The data from these sensors is transmitted via radio telemetry to the main dairy shed computer, where anyone authorized can view the information graphed in the Aquaflex PC software. The objective is to keep soil moisture levels within set parameters, and the software gives a good graphic indication of whether soil moisture levels are trending up and down.

Bryan says that the system is pretty foolproof, which is important with different people on farm making decisions about whether the irrigators need to be working or not. Having the system in place takes any requirement for interpretation out of the equation so that people know when to water and when not to water. All Bryan needs to do is log in on his computer to see what is happening.

He doesn’t consider that he farms or uses water any differently now than he did in the past, when he used his own judgement based on testing soil crumble. His ability to judge soil moisture was accurate and he had a workable system, but no data was stored so it was impossible to build up a history and quantify what was happening.

Under the new technology, water metering data is logged in Aquacom, and access to this information allows Aquaflex to provide comprehensive, independent, verifiable reporting on water use.

“Realistically, this is what I need to do to prove that I am operating within the terms of my water consents.”

Bryan is adamant that being proactive and implementing processes from the farm is the only way to avoid a situation where bureaucracy forces the sector into compliance on its terms.

“The way I see it, we need to set the standards we can live with in our own businesses, otherwise someone else may impose standards on us and we may be forced into solutions that are not palatable.

Most farmers are independent individuals and like to farm in their own way, but on this issue everyone needs to conform. Modern dairy farmers need to prove that they are an asset to New Zealand and that dairy farming is environmentally sustainable. We’ve

Bryan considers the only negative in implementing telemetric technology is that down the track it may provide the means for revenue gathering as a way to fund bureaucracy. The other possible challenge comes from the way in which central and local government can change the rules.

Bryan Beeston

Bryan was brought up on a dairy farm in Derbyshire, England. He came to New Zealand on a working holiday when he was in his early 20s, and quickly identified the opportunities here which were not available in his homeland at that time.

Initially based in the North Island, he shifted with his wife Annette to Canterbury in 1995 as a sharemilker for Tasman Agriculture.

The couple’s first farm was a dryland property at Peel Forest, and that was the starting point for their progression through the industry. They now own two irrigated dairy farms and are equity partners in a further four—which are a mix of irrigated and dryland.

“When we bought the Peel Forest farm we were hopeful of being able to irrigate during the summer dry there, which is about three months of the year, but after spending about $400k looking for water we only found 8l/sec.”

Soil probe that measures both soil moisture and soil temperature

The Beeston’s have now formed an equity partnership in that property with their former sharemilker, who has been on the farm for the past seven years.

They currently farm two irrigated dairy farms of 300ha each (280ha effective). They’re milking 1,000 cows on each through 54 bale rotary sheds. Bryan favours a relatively intensive, high input farming system to get the returns required to justify his investment.

They also lease a 376ha run-off which is part dryland and part border dyke irrigation.

Bryan comments that at the time they came to Canterbury, the farming scene was totally different.

Anyone could simply drill a hole and draw water, land was cheap, and sharemilking was the way to progress in the dairy industry.

These days, there’s a lot of legal process to go through to get irrigation water, land is very expensive, and with a favourable dairy payout owners are opting to put managers on rather than investing in the future of the industry through encouraging sharemilkers.

Bryan is able to view the information gathered from his living room

The water meter captures the required information for irrigation decisions

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August/September 2011

s d i K S AT ge.

Welcome to the ATS Kids pa and Foaming, share these fun scientific

The theme of this month’s kids page is Fizzing ects need parental help for younger children. experiments with your friends and family—all proj

Sherbet

Hokey Pokey

You will need:

You will need:

Makes three packets

5 Tbsp White Sugar

1/2 cup Icing Sugar 1 Tbsp of powdered drink crystals (e.g. Refresh / Raro) 1/2 tsp citric acid 1/2 tsp tartaric acid 1/2 tsp baking soda Dipping ideas—lollipops / straws / liquorice / raspberry liquorice

How to make them:

2 Tbsp Golden Syrup

1 tsp baking soda

How to make it: 1. Put sugar and golden syrup into a saucepan. Heat gently, stirring constantly until sugar dissolves.

2. Increase the heat and bring to the boil. Boil for two minutes. Stir occasionally, if necessary, to prevent burning. Remove from heat.

3. Add baking soda. Stir quickly until mixture froths up rapidly! Pour into a buttered tin immediately.

4. Leave until cold and hard then break into pieces.

1. Put all ingredients, except the lollipops, into a bowl and mix thoroughly. Spoon into little cellophane/paper bags, insert a lollipop in each bag and seal securely.

To eat, lick the lollipop and dip it into the sherbet.

2. Experiment with different dipping ideas or drink flavours. Try your sherbet mix in water to make a fizzy drink.

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p m a L a v a L y s a e Make an

t for kids. science experimen n fu ns and is th ith w p te chemical reactio lava lam ea sy cr ea to an e e ttl ak bo m a to d Learn how Alka-Seltzer an oil, food coloring, e bl ta ge ve as ch old items su mp.

Use simple househ st like a real lava la ju nd ou ar e ov m ur that funky balls of colo

What You Do:

might want e quarter full (you on nd ou ar is it til e un to the plastic bottl spill anything).

1. Pour water in bottle so you don’t e th g lin fil n he w el to use a funn Water od is nearly full. go a is e water bottl oil until the bottle e e— bl ttl ta bo ge tic ve as in pl ur drops of A clear 2. Po d around a dozen lemonade bottle ad 2L en a e th us d, n te ra ca u pa se size but yo oil and water have u like).

3. Wait until the ose any colour yo ho (c e Vegetable oil ttl bo e th to g in food colour the water.

Food colouring oil and mixes with z) e fiz th at h th ug s ro et th bl ta lls r fa he food colouring Alka-Seltzer (or ot em into the 4. Watch as the ptional) (o s ad Be and drop one of th all es Sm ec pi er all Glitter or sm 4 or al lava lamp! eltzer tablet into 3 crazy, just like a re 5. Cut an Alka-S tle lit a ng tti ge t ld star ! bottle, things shou d enjoy the show e of Alka-Seltzer an ec pi r he ot an d bbling stops, ad 6. When the bu y sparklies that all beads, or any tin sm s, in qu STEP 1. se , er itt ding a sprinkle of gl Optional: Try ad catch your eye.

What you’ll need:

STEP 6.

STEP 3 & 4 STEP 5.

Bubble Bomb What you’ll need:

Water Measuring cup Zipper-lock plastic sandwich bags Paper towel Tablespoon Baking soda Vinegar

What You Do: 1. Tear a paper towel into a square that measures about 12 cm by 12 cm. Put 1 1/2 tablespoons of baking soda in the centre of the square, then fold the square, with the baking soda inside. This is your “time-release packet.”

2. Pour into your plastic bag: 1/2 cup of vinegar and 1/4 cup of warm water 3. Now here’s the tricky part. You need to drop the time-release packet into the vinegar and zip the bag closed before the fizzing gets out of control. You can zip the bag halfway closed, then stuff the packet in and zip the bag closed the rest of the way in a hurry.

4. Shake the bag a little, put it in the bath or on the ground, and stand back! The bag will puff up dramatically and pop with a bang.

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Important: Figure out where you want to explode your Bubble Bomb.

Sometimes the bags make a mess when they pop, so you may want to experiment outside.

It’s very important to use a bag without holes.

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ATS Instore Days 2011 With over 1500 members visiting over two days, this year’s Instore Days certainly lived up to its reputation as Canterbury’s Greatest Rural Supplies Sale.

Chief Executive Neal Shaw commented that the atmosphere was more positive this year, as members were receiving better returns.

“ATS Instore Days continues to play a key role in delivering on ATS’ vision of reducing farm input costs for members, and this is even more important in years when returns are high”.

Once again our card and retail suppliers’ excelled, with great deals for members and informative and professional display stands. With over 200 supplier staff on site over the two days, there was a wealth of knowledge available for members to tap into.

Each year supplier stands are judged, with criteria developed around stand layout, friendly and knowledgeable staff and special offers for ATS Members.

The best Card Supplier stand was won by Laser Electrical & Plumbing, who showcased the businesses range of lights, pumps and outdoor barbeques. The runner up was past winner Electraserve Limited who installed a replica shed to demonstrate their range of irrigation pump starters.

The best Retail Supplier stand was won by Stallion Plastics who clearly demonstrated their calf feeding equipment. The runner up was Skellerup Industries, with an innovative display of both their dairy and footwear divisions.

Bruce Smith presents Erin Redfern and her children with a 50” Panasonic Plasma TV and cabinet for purchasing Castrol products

Congratulations go to the following members for winning prizes over the two days: Orion Crop Protection

Golf Clubs

Marty & Janine Marshall

Nufarm

Aeroccino Coffee Machines

Warwick Green Colin & Jocelyn Lill

Syngenta Crop Protection

42” Panasonic Plasma TV & Cabinet

Jim Sim

Castrol

Suzuki TF125 Motorbike - 1st 50” Panasonic Plasma Tv – 2nd 50” Panasonic Plasma TV –3rd 42” Panasonic Plasma Tv – 4th 42” Panasonic Plasma Tv – 5th 42” Panasonic Plasma Tv – 6th TomTom Navigation Units x 4

Hamish & Louise Baxter Erin Redfern Jason & Melissa Crawford Robin & Angela Taylor Robert & Emma Hampton Richard Watson Ian & Sandra Marr Peter & Virginia Waller David & Kay Winchester Gary & Jan Middleton

Milligan’s

42” Panasonic Plasma TV

Bob & Marg Verrall

Vogal Spreaders

Rally Car Ride with Hayden Paddon

John Young

Seales Winslow

Calf Nutritional Prize Pack

Matthew & Trudy Holmes

Deane Apparel

Soft Shell Jackets x 5

John Sandrey Grant & Mary Pearce Mark & Julie Cressey Robert & Virginia Keith Ian & Sandra Marr

Betacraft Clothing

Black & Decker Drill

Rowan & Linda McMath

NZ Merchants

Queen Eden Blanket

Graham Lowe

Swanndri

Limited Edition All Blacks Bushshirt

Alan McLauchlan

Kiwi Sock Co.

Family Clothing Pack valued at $380

Dalvyn Burrowes

ATS Seed

42” Panasonic Plasma TV

Richard Wilson

Nestle Purina Petcare

Powerbuilt Tool Set

Emmet & Jan O’Sullivan

Stallion Plastics

$300 Gift Basket

Leo Donkers

Living Light Candles

Floating Candle Set

Colin & Annette Maw

Bell-Booth

$1000 of Bell-Booth products

Chris Prattley

Lynn River

$500 Bolle Wardrobe

Mark & Devon Slee

Ian Simister receives his $200 gift voucher from Bob O’Reilly for requesting an on-farm visit with ATS Seed

Kay Winchester receives her TomTom Navigation Unit from Bruce Smith for purchasing Castrol products

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News at ATS

Instore Days 2011

Top: Peter Weilly, Elaine & Gavin Mowat Above: Jo Goodhew & Neal Shaw

Right: Cody & Zander Etherridge, & Taylor Lamont

Above: Nola & Stuart Lovett with Christine Taylor

Left: Dorreen Todd & Alan Lilley with Carrot & Pickle

Above: Christine Taylor & Rodger Snowden

Right: Graeme Fulton, Lester Chambers & Steph Beeston

Left: Carl van Rees fits Charlie Rapsey with new boots

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ATS NE WS

News at ATS

Left: Chris Procter, Willy Leferink & John Low

Right: Rae Glass & Alan Lilley

Above: Ben Nordquist is entertained by clowns Carrot & Pickle

Left: Kath McKendry, Elizabeth Harper & John Harper enjoy the complimentary lunch

Left: Reuben & Anna McKeown enjoying the children’s entertainment

Right: Members catch up over lunch

Above: Allan & Kaidyn Broomhall

Left: Sally Lemon & Jenny Black make the most of the great specials in the front shop

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Left: Old building on Leeston St; Right: New building under construction on West St

Moving forward With a big move planned for later in the year, this is an exciting time for Stocker Dairy Services Ltd. By Pip Hume The commencement of construction work on a new showroom and workshop complex at their West Street site (just next to Goldpine) signals a new chapter for the long-established Ashburton business.

Shane and Cheryl Stocker set up Stocker Dairy Services 17 years ago. Previously, Shane had been involved in the dairy industry for 15 years, with a background in the electrical trade and the installation of milking equipment. Cheryl was a checkout supervisor in Temuka, travelling daily for 9 years, and the couple felt the time was right to go into business on their own account.

“The new showroom and shop will offer more convenient and accessible shopping for customers, as well as a much more attractive working environment. “ The business offers a wide range of services for the dairy farmer, including the installion of Milfos milking equipment, engineering, dairy shed plumbing, milking machine testing and dairy shed maintence programs. They service all brands of milking equipment and carry a full range of consumable products. They have been Milfos’s top New Zealand Dealer for the past two years Stocker Dairy Services currently operates from their home in a large workshop in Leeston Street, but with a team of 15 staff, the business has simply outgrown those premises. The new showroom and shop will offer more convenient and accessible shopping for customers, as well as a much more attractive working environment. Shane and Cheryl are hopeful that the grand opening will take place in November / December—watch the progress on the site as you drive north!

Canterbury has certainly contributed to the success of Stocker Dairy Services, and with the number of conversions on hand at the moment Mid Canterbury is the place to be for dairying. However equally important have been the professionalism and the standard of service offered by Stocker Dairy Services.

Cheryl says that Shane is “extremely fussy” and they are particular about who they employ, from the dairy technicians and engineers through to the smiling faces of the admin and shop staff. Most of the staff are Ashburton locals, but a couple have relocated down from the North Island.

Shane & Cheryl Stocker

Cheryl says that while the staff works as a team, they are all specialists in their own trades. There are three in the plumbing division, seven dairy technicians installing and maintaining milking equipment, one in maintenance and testing, and four support staff.

Their dedication and commitment to service was especially evident after the September 4th earthquake devastated the area last year. ““We can’t speak highly enough of our staff, they’re just amazing,” says Cheryl. “We had four sheds where the cows couldn’t be milked because the milking platforms had jumped off their rollers. All of our staff showed up that morning to see what they could do to help—even those whose own properties had suffered significant damage. With the assistance of Rakaia Sawmill, who opened up and cut big wooden blocks and with the use of jacks and chains, we were able to get the platforms back onto their pedestals, and were able to get the dairy sheds going again over the weekend.”

So in the next couple of months look out for the big move of Stocker Dairy Services to 490 West Street, Ashburton.

Kiri Phillips, Tania Anderson & Dayna Hurst

Contact:

Stocker Dairy Services 30 Leeston St Ashburton Tel: 03 307 6388 Fax: 03 308 1587 Email: stockerdairyservice@xtra.co.nz Web: www.milfos.com

The expansion of the dairy industry in Mid ATS NE WS

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Accelerating your spring crop Spring-sown crops play an important part in driving farm productivity and profitability. Article supplied by Delyse Dixon, Ballance Agri-Nutrients So whether you are sowing brassicas, wheat or barley, peas, potatoes or onions, it’s essential that you get your fertiliser strategy right, so that you get the best yield possible. One part of that strategy that makes a huge impact on the outcome of your crop performance is nitrogen (N).

N is an essential nutrient for all crops, particularly for maximising leaf growth. Once you’ve prepared the soil and your crop is established, it will need N to keep growing to achieve projected yield tonnage.

N is a key driver of crop yield, but applying too much can be money down the drain. Having a deep N soil test carried out by your ATS or Ballance rep will show available N reserves in the soil.

Deep N soil tests are invaluable when growing crops.

In fact, they are so important that they have been built into both the AmaizeN crop calculator and the cereal grain and silage calculator (for wheat, barley, oats and triticale). Both of these calculators are decision support tools that allow the user to ‘grow’ a virtual crop, by inputting appropriate data such as sowing date, cultivar, location, soil type and soil test results.

By incorporating deep N soil test data, the models are able to give a much more accurate estimation of N reserves available to the crop, so driving better N fertiliser recommendations.

Ideally, you will want to have your deep N soil test taken as close as possible to your target N application time. You need to allow time for the lab to process the samples and get the results back—a week should do it—but then you want to be able to get in and apply the N. Once the available N reserves in the soil have been determined, your ATS or Ballance rep can prepare an N strategy to get the most out the crop’s growth cycle. For most crops, split applications of N are recommended.

If you are planting into a paddock that is coming out of pasture, then you won’t need to apply as much N, especially if you have applied N fertiliser following your grazing rotations. When cultivating out of long-

term pasture, there is a large pool of organic N in the soil that will mineralise and become available to the crop following cultivation. For a crop going into land coming out of pasture, the soil can supply 150-200 kg N/ha, compared to half that rate following a depletive crop.

The N fertiliser strategy that you will need to use will depend on the initial N status of your soil. In most cases, soil will have sufficient N to establish the crop; more will be supplied if you have used DAP as a starter fertiliser. If DAP is used, a small amount of N (2030 kg N/ha) will still be available later in the life of the crop. Brassica crops will require an application of 50100 kg N/ha at four to six weeks; if the yield potential is high, another 50-100 kg N/ha should be applied later. The optimum rate can be determined by use of the brassica calculator. Spring-sown barley will require 50 kg N/ha if following pasture, and up to 200 kg N/ha if following another cereal. The N should be applied in one or two applications (depending on the required rate) at sowing and prior to stem elongation.

Splitting N applications means you can adjust the amount of N you use depending on the growing conditions. If the yield potential increases because of good early growth, you can apply more N to help deliver that potential growth. n-rich urea is an ideal N product for crops, and contains 46% N in every granule.

If you’re broadcasting N over the top of the crop, n-rich urea should be used when conditions at application are unlikely to result in significant ammonia volatilisation losses; i.e. when the soil is moist and with greater than 5 mm rainfall expected following application.

If you’ve invested in on-farm irrigation infrastructure, an alternative and convenient way to get N on is with n-rich liquid. It’s a liquid N fertiliser that can be fed through a centre-pivot. It’s a strategic way to apply N, and gives you flexibility and control in getting N onto your crops, when it’s most needed.

contact ats to discuss your fertiliser needs and/or to arrange for advice from your LOCAL ballance TECHNICAL SALES REPRESENTATIVE:

Anna Bedford 027 499 7617 Russell Hamilton 027 677 4499 Michael Robertson 027 464 2972 Tel: 0800 222 090 Web: www.ballance.co.nz

For more information on the best N solutions for your spring crop, contact your ATS or Ballance rep.

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ACL workshop on South St

More than contracting Ashburton Contracting Limited (ACL) is well established as a leading company in the field of local civil contracting. By Pip Hume ACL offers a wide and diverse mix of services— Construction & Drainage, Transport & Excavation, Vehicle Servicing and Maintenance, Plumbing & Utilities Management, Ready Mix Concrete Supply, Aggregate and Landscaping Supplies, Underpasses & Lane Maintenance, Road Sealing, Asphalt Supply and Laying, and Driveways and Tennis Courts.

subcontractors on the Barrhill-Chertsey Irrigation Scheme, they completed the excavation and pipe laying component. Gary attributes the successful delivery of this work to ACL’s ability to communicate with everyone involved with the project, from the head contractor to the landowners, and to provide the resources required—manpower, machines, materials and knowledge.

Like many Ashburton businesses, ACL is benefiting from the Mid Canterbury rural boom. There’s high demand currently for on-farm earthworks and maintenance, such as construction and maintenance of dairy lanes, underpasses and farm tracks, effluent and irrigation ponds, tree clearing, and site works for conversions.

With its expertise in drainage, ACL is also substantially employed in Christchurch earthquake recovery assistance at the moment. The company has had about 20 staff involved with drainage remediation work following the earthquakes. ACL was also able to provide men and equipment for the silt cleanups and still has specialist plant working in Christchurch.

The workshop is particularly important to the efficient operation of the company. It’s a modern, fully equipped facility with a full length lube bay and brake testing equipment as well as a paint shop and spray painter. Besides keeping ACL’s large, modern fleet of vehicles and heavy machinery serviced, maintained and repaired, the seven fully qualified mechanics look after the vehicle servicing needs of other local businesses and the general public.

ACL mechanics also carry out on site and on farm servicing & repairs.

“We’re very flexible, but we like to stick with doing what we are best at and recommend people we can work alongside.“

But this dynamic business has much more to offer.

General Manager Gary Casey says that the company’s expertise is available right through a project.

“We like to be involved right from the outset—not only to provide a comprehensive quote, but also so we can work through the customers’ specific needs with them and provide the best possible solution.

We’re very flexible, but we like to stick with doing what we are best at and recommend people we can work alongside. Our focus is on getting the job done for the customer.”

Gary says that this ability to work in with others on projects is one of ACL’s key strengths. As

ACL is a stand-alone company administered by an independent Board of Directors, and is wholly owned by the Ashburton District Council. It’s a 35% stakeholder and the major contractor in the Lake Hood Expansion—a subdivision of 350 residential and rural lifestyle sections which doubles the size of the Lake Hood community. A key benefit of this involvement for ACL and also for Mid Canterbury is the acquisition of an aggregate resource which is estimated to be sufficient to meet the needs of the region for the next 20 years.

With a workforce of around 100 and an annual turnover of around $23m, ACL is one of the larger companies in Mid Canterbury, and takes its corporate responsibilities seriously, being a major sponsor of the Arts Centre and a supporter of local sports, arts and community activities and events.

ACL’s shingle digger at work

Contact:

Ashburton Contracting Ltd 48 South St Ashburton Tel: 03 308 4093 Web: www.ashcon.co.nz

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HOOPERS

OUTDOOR POWER CENTRE 34

ATS NE WS

5 Range St | Riverside Industrial Estate | Ashburton Telephone 03 307 7055 | Mobile 021 487 598

Amazingly, calving time is synchronised with the flush of grass that typically arrives in the spring time

Feeding for fertility It would be nice if feeding for fertility was something you did about two weeks before AB began—an elixir of love that could be delivered prior to mating. By Dr Rob Derrick, Seales Winslow In reality, feeding back in the previous lactation, and especially over calving, is likely to have an effect on the fertility of dairy cows in the months ahead. The most important factor appears to be the degree of weight loss post calving, with cows that calved in better condition seemingly able to cope with weight loss better than cows that calved in poorer condition. It is perhaps not surprising that cows have evolved a system which fires up fertility when feed stocks are improving and shuts down fertility when they are struggling to meet the demands of the calf they already have.

Next to making sure cows calve down in good condition, feeding them around calving is so important because it takes 80–100 days for the egg to mature in the follicle before ovulation. Throughout the egg maturation process the quality and viability of the egg can be affected by the environment around it.

In particular, excessive weight loss immediately post calving appears to suppress the production of hormones which are fundamental to the stimulation of the follicle and development of the egg. Who would have thought that something as small as an egg could be sensitive to the amount of glucose in the cow’s blood? This is not because the development of the egg requires enormous amounts of energy but because its development is very sensitive to the level of hormones which themselves are very responsive to the amount of glucose circulating in the cow’s blood system.

In addition, the breakdown of body fat when cows are losing weight is associated with toxic waste products called ketones which can have a detrimental effect on the development of the egg. Reducing weight loss is normally easier and more cheaply achieved by increasing dry matter intake rather than by increasing the nutrient density of the total diet. Keeping cows healthy and maintaining rumen function is crucial to stimulating dry matter intake.

“It is perhaps not surprising that cows have evolved a system which fires up fertility when feed stocks are improving and shuts down fertility when they are struggling to meet the demands of the calf they already have.”

Does it matter what form the supplementary energy is, provided it reduces weight loss? Is 10 MJ ME provided by palm kernel meal the same as 10 MJ ME provided by grain with respect to fertility?

There seems to be a positive correlation between high milk protein percentage and fertility.

“Conversely fatty feeds like palm kernel risk giving the cow the false impression that she is breaking down body fat which has a negative effect on fertility.”

Starchy feeds like cereal grains which stimulate milk protein production are more likely to stimulate hormones that have a positive effect on the quality and viability of the egg.

Conversely fatty feeds like palm kernel risk giving the cow the false impression that she is breaking down body fat which has a negative effect on fertility. As we all know, during a good spring the dry matter content and sugar levels in the grass rise, dry matter intakes improve and milk protein rises relative to milk fat—the cows unknowingly respond to the good times by getting pregnant more easily.

Conversely during a cold, overcast period, dry matter intakes and sugar levels in the grass fall and cows either continue to break down body fat or at least reduce weight gain and conception rates drop.

Researchers have at times become concerned about the level of protein in the diet over mating, thinking that high blood urea levels may affect the ability of the fertilised egg to implant. The jury is still out on this but protein does drive milk production and excess protein accentuates negative energy balance so it’s probably unwise to feed too much protein over mating.

The range of Winslow Feeds and nutritonal products are available through ATS.

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An 11% return from Dairying?

We have a dairy farm for sale on the West Coast and we thought the owners figures were worth a closer look. By Ian Walsh, Property Brokers—Hasting McLeod This is because an implied return on equity of just over 11% is not commonly achieved by a farming asset.

The property is a 183ha dairy farm (plus an additional 67ha of mostly bush) near Hokitika supplying Westland Dairy Company. It produces on average (last 5 years), 135,000kg milks solids annually. The farm has been in the hands of the three owners for the last six years and one of the owners operates the farm while the others are absentee owners. The property is on the market at $3,495,000 for Land, Buildings and Shares.

The owners’ budget figures for 2011/2012 are based on historic costs and indicate farm working expenses (including full wages of management) at $4.30 per kg milk solids. On top of this we have added interest repayments on an assumed mortgage of $2,212,000 (using a 50% debt equity ratio, or 50% of total estimated capital cost for the farming operation being debt funded). The interest cost at a 7% interest rate, would be $154,840.

At the asking price of $3,495,000 for the land, buildings and shares, plus say $750,000 livestock, $180,000 plant there would be a total capital requirement of $4,425,000. If half of this was debt funded i.e. a $2,212,000 mortgage then $2,212,000 equity would be required from a purchaser.

Calculating Return on Equity Total Income is budgeted on 135,000kg milk solids at $7.10 plus livestock sales Total Income

Total Expenses

$762,340

Total profit

$248,160

Return ($248,160/$2,212,000)

11.2%

Important Note: These calculations are of a general nature only and do not relate to a purchaser’s specific circumstances. Professional advice should be sought before acting. The figures used in these calculations are taken from owners’ information which is based on their recent trading results plus dairy company forecasts. Interest rates, dairy company milk solids payments, costs and production levels can all vary which will affect the actual return achieved by a purchaser. No responsibility is accepted by the writer or Property Brokers (Hastings McLeod Ltd) for the financial or physical performance of the farm.

Properties for Sale: ALBURY—SOUTH CANTERBURY Dairy Grazing / Arable / Fattening $1,700,000 plus GST 141.3 ha MARONAN ROAD, ASHBURTON Farm Start / Additional Land $1,250,000 plus GST 77 ha RUAPUNA—ASHBURTON Fattening / Deer / Grazing $3,100,000 plus GST 139 ha

Contact:

Property Brokers—Hastings McLeod 324 East Street, Ashburton Tel: 03 308 8209

$958,500 $52,000 $1,010,500

Expenses Farm working expenses

$607,500

plus interest

$154,840

Fax: 03 308 8206 Web: www.propertybrokers.co.nz

ATS NE WS

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Beaurepaires Ashburton Ltd

DEALS!

Now franchised and under new Management

265 65x17 B/Stone

265 60x18 AT22 D/Lop

11Rx22.5 Sumotomo (drive tread)

$210 including GST (10 only)

$185 including GST (4 only)

$425+GST (8 only)

750x16 Crossbar N/Tyre

825X16 Crossbar N/Tyre

$150+GST (10 only)

$165+GST (10 only)

393–405 West Street Ashburton 38

ATS NE WS

Phone

03 307 6050

ATS NE WS

39

PRODUCTS AVAILABLE THROUGH ALL ATS STORES

PRODUCTS AVAILABLE THROUGH ALL ATS STORES

News at ATS Ashburton Community Conservation Trust ATS and Nufarm are proud to sponsor long standing ATS Member Arthur Harris and the Ashburton Community Conservation Trust in their development of a kanuka plantation.

Arthur Harris has been working with the Ashburton Community Conservation Trust and Living Legends to develop an area of dry-land kanuka at the Harris Scientific Reserve near Ashburton. The 11ha reserve was previously farmed by Mr Harris and the kanuka on the reserve are from the original trees and grown on land that has never been cultivated. The project plans to protect one of the last stands of kanuka in Canterbury.

Living Legends is connecting the Mid-Canterbury community with rugby legend Jock Ross at a community tree planting event at the Harris Scientific Reserve. If you’re ready to ‘muck in’ and have some fun, come down to the Harris Scientific Reserve on Sunday 4 September 2011. Visit www.livinglegends.co.nz to register.

If you have special varieties of plants that are unique to the Mid-Canterbury area and the Ashburton Community Conservation Trust can propagate from, please contact Peter Smith on 03 308 4440.

Arthur Harris and Kay Eade (Living Legends) at Harris Scientific Reserve

Instore Days Membership Services Hamper

TRU-TEST Promotion

Thank you to those who provided feedback over Instore Days. Congratulations to Sharon Duthie who was the lucky winner of the Instore Days Membership Services Hamper.

ATS and TRU-TEST have teamed up to give you the opportunity to stake your claim on more than $8000 of prizes!

From the 1st April to 31st July, there are 16 winners in total each receiving a Sony MP3 player and then an opportunity to dip into the prize barrel in August.

Congratulations to the May and June lucky winners.

May Winners Peter & Virginia Waller Marvin & Jane Pangborn David & Lee Luff Donald & Margaret Ingold June Winners Steven & Teresa Booker Richard & Judy May Peter & Nicky Webster Greg Shearer

Christine Taylor presents the membership prize hamper to Sharon Duthie

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ATS NE WS

Ballance Island Day Winner ATS and Ballance Agri-Nutrients’ joint promotion brought the Islands to Ashburton in March. ATS Ashburton held drinks and nibbles to celebrate autumn with their members allowing them to place their fertiliser orders. John and Kelly Nicolls, Mid Canterbury Dairy Farmers, were the lucky winners of the promotion, and have won themselves a family holiday to an Island of their choice worth $7000! Congratulations!

Jono Pavey (ATS) and Harvey Smith (Ballance Agri-Nutrients) present John and Kelly Nicholls with their prize

New Dairy Key Account Managers

Federated Farmers

ATS has appointed two new dairy key account managers, to increase the level of on farm service provided to members.

Congratulations to ATS members Ian Mackenzie, Willy Leferink and Jeanette Maxwell who have recently been elected to the Federated Farmers national board.

Brad Elliott has worked at the ATS Rakaia Retail store for the past year. He has a strong farming background and experience farm retail background after working for another supply business for about eight years.

Dave Steel has worked on dairy farms for about 20 years in Canterbury and BOP, and has been a dairy livestock rep in the Mid Canterbury Area.

Brad and Dave join Alan Harrison who started with ATS in May 2010.

Ian Mackenzie has been appointed Federated Farmer Grain & Feed chairperson. He is not only a Director of ATS, Ian also runs a fully irrigated vegetable/grass seed and finishing operation at Eiffelton, near Ashburton.

Willy Leferink has been appointed Federated Farmers Dairy chairperson.

Willy has progressed through the dairy industry from worker to sharemilker and now to having an interest in six farms in midCanterbury, as well as a dairy cow nutrition company.

Dave Steel, Alan Harrison and Brad Elliott

Jeanette Maxwell has been appointed Federated Farmers Meat & Fibre chairperson and is the first woman elected to the Federation’s national board. A sheep and beef farmer near Mt Hutt, she is a past participant in the Kellogg Rural Leadership Programme, Federated Farmers leadership courses and the FAME (Food, Agribusiness, Marketing and Experience) course.

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News at ATS

ATS out and about Right: Jenny & Jane at the ATS Carpark Clearing Sale

Above: Janette, Leigh, Connie & Jocelyn at the ATS Carpark Clearing Sale

Right: Becky Millar at the Dairy Womens Network discussion group

Left: Ian & Trish Vessey at the ATS Carpark Clearing Sale Above: ATS & Seedforce fodder beet field day

Right: Dave Walsh from Seedforce at the ATS & Seedforce fodder beet field day

Above: The ATS Carpark Clearing Sale

Right: Ladies sharing their calving tips at the Dairy Womens Network discussion group

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ATS NE WS

Right: Diane Taylor & Sally Childs at the ATS Carpark Clearing Sale

Above: Neroli Davies, Liz Wilson, Christine Taylor, Carol Wilson & Becky Millar at the Dairy Womens Network discussion group

Right: ATS & Seedforce fodder beet field day

CLASSIFIEDS FOR SALE ‘Off Road’ Trailer 1800 x 1200 Galvanised, brand new $1299 o.n.o Tel Maree MacLean 308 5119

Kidz Korner Are your children into horses? Dinosaurs? Pirates? Animals? Tractors? Cooking? Crafts?

Reading? Games?

We have fantastic gift ideas and gift wrap free for ATS members who also get a 10% discount! Did you know we do name tapes?

Gates

We are on East St, next to Dick Smith. Phone 307 0456

12 and 14 ft Tel 03 302 6116 after 6.30pm

Wanaka Section, Scurr Heights 782m2, private sale Great outlook & views A superb section in a quiet cul de sac and is located within walking distance to schools and park Tel 03 437 1476

Frizzell Ltd Electronic farm scales from $780.00; Well depth meters from $285.00, weather stations from $149.00, Irrigation monitoring equipment from $195.00, Farm weigh bridges from $3800.00 (all prices plus G.S.T.).

If it’s Farm electronics contact Frizzell Agricultural Electronics for the best price. We also have a wide range of crates and platforms for scales, plus irrigation monitoring and farm security systems.

For free information on our wide range of products contact Alastair Frizzell on 03 318133, or your local contact Viv McLachlan on 03 3027 065 or 0275066434 www.frizzell.co.nz or sales@frizzell.co.nz 200 Litre Barrels With large screw tops that seal Great for storing animal feed, feeding out calves and many other uses $45 for one or $200 for five Tel Mervyn 03 349 7747

Wheat Straw 4 x 3. Well covered, good condition $50 bale Mayfield area Tel Stuart 027 692 0455

RETAIL

Nestle Purina We’re showing our true colours, show us yours and be in to win!

Purchase either 1 x 40kg OR 2 x 20kg Tux Bags in one transaction and be into win a Nissan Qashqai for her PLUS a Nissan Navara for him!

There are also 10 bonus prizes of Panasonic 42’ Plasma TVs. Hot price for August = $20.00 off Tux 40kg bags!

And check out their limited edition supporters bags at your nearest ATS Retail Store.

Heiniger Handpiece Good condition, barely used $390 Tel Jill 03 308 5395

Skellerup HOT Sock Deals!

Earthtec Gumboot Socks 3pack, Sizes 6–10, 11–13 Only $35.00 members price

HURRY IN—offer only valid during August.

WANTED Walk in Chiller Approx. 2.4m x 2.4m With or without meat rail Single phase power Tel 027 229 9761

NRM Buy 10 bags of NRM Horse Feed, and receive one free!

Ask for your NRM loyalty card today. Offer ends 30th November 2011, terms and conditions apply.

See your loyalty card in store for details at any of our three ATS Retail Stores.

Advertising Enquiries Please contact the Marketing Department on: Tel: 03 307 5100 Email: info@ats.co.nz